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2019ANNUAL FederallyinsuredbyNCUA
A MESSAGEFROM THE BOARDCHAIR ANDPRESIDENT/CEOIn April 2019 we celebrated 85 yearsof serving our members and thecommunity. The fnancial servicesindustry has changed considerably sincewe frst opened our doors. Advancesin technology have enhanced access tobanking services, which makes bankingwith us even more convenient andaccessible from anywhere, at any time.With that in mind, we made investments in technology last year to ensure that we are delivering an exceptionalbanking experience for our members. Increasing the speed of our ATMs was a high priority. In September2019, we began replacing the majority of our ATMs, and those that weren’t replaced were upgraded with newsoftware to increase the transaction speed. We eliminated the delay between inserting your card and enteringyour PIN, and the transactions are now much faster. Cards are now inserted horizontally at most EECU ATMs,which offers added protection against card skimming devices. The touch screens provide a more intuitiveexperience and at many locations you can mix cash and checks in a single deposit. You spoke, we listened, andour ATMs now deliver the speed and convenience that you deserve.We continued our investment in technology by launching a new look for our website last year. It has afresh, contemporary design with a concise menu so that visitors can navigate quickly to information aboutmembership, loans, savings, and more. The Online Banking login is prominently displayed on the home page aswell as content that is most frequently accessed. Pages were streamlined and consolidated for quicker accessto the information you need. And since many people use a mobile device to visit websites, the design providesa more user-friendly experience.Our investment in fnancial education continues to grow. We’ve been teaching the basics of budgeting, saving,building good credit, retirement planning, and more for many years. Now, we’ve made it even easier for you tolearn about managing your money, whether you’re just starting out or you have some experience. Our websiteMoney 101 page features expertly crafted fnancial education resources to help you manage your money wisely.We invite you to browse through our free modules and more at your convenience and learn about budgeting,getting out of debt, saving for college, building good credit, planning for retirement, and so much more!Last November, we expanded the number of counties we serve to 12, with the addition of Kern and Stanislauscounties to our feld of membership. Anyone in these counties who meets our feld of membership eligibilityrequirements can join EECU and take advantage of the many benefts of membership. This expansion of ourfootprint in Central California gives us the opportunity to serve even more people and supports our strategic planfor growth.We reached 3.2 billion in assets as of December 31, 2019, and our membership grew to more than 305,000.When you bank with us, you are investing in yourself and in your community. You have access to affordablefnancial products, services and resources to help you achieve your fnancial goals at any stage of life. Andyour membership helps us support important causes and events in our community, such as our sponsorship ofExcellence in Education events in fve counties and donations to support Boys & Girls Clubs, Wings Advocacy,Break the Barriers, Civil War Revisited, and Lions Club.We are excited to serve our growing membership and continue to make a positive impact in your lives and in thecommunity. Thank you for being part of the EECU family – we look forward to serving you in the future.Mike Snell, Chair, Board of DirectorsElizabeth J. Dooley, President/CEO
MINUTES OF THE ANNUAL MEETING OF THE MEMBERSHIPEDUCATIONAL EMPLOYEES CREDIT UNIONJune 14, 2019CALL TO ORDERElizabeth J. Dooley, President/CEO, welcomed everyoneto EECU’s Annual Meeting and thanked members forattending. She expressed appreciation to the administratorsat Alta Sierra and Clovis Unifed School District who allowedEECU to use their facility again for the ninth year in a row.President/CEO Dooley said she appreciated the support ofall the members and thanked them for coming to EECU’sAnnual Meeting.PRESIDENT/CEO’S COMMENTSPresident/CEO Dooley introduced herself and Eddie theOwl, the mascot for EECU’s “4Kids Youth Program”. Sheasked the kids to join Eddie at the play area during thebusiness meeting.CHAIRMAN’S COMMENTSChair Snell again welcomed members and their guests tothe meeting. He reiterated that EECU performed well in2018 and highlighted the following:ANNUAL REPORTPresident/CEO Dooley offered copies of EECU’s AnnualReport and EECU’s full audited statements of fnancialcondition as of year-end 2018. She noted that copies of thefull audited statement of fnancial condition as of year-endwere available if members were interested.President/CEO Dooley recognized Sean T. O’Rourke andthanked him for serving as the parliamentarian for themeeting. He is an attorney with Petrie, Leeth, Larrivee &O’Rourke, LLP.President/CEO Dooley said that there would be a drawingfor exciting prizes at the end of the business meeting.She reported that 2018 was a successful year for EECUdue to the hard work of its employees, management, andvolunteer offcials. The Annual Report indicated that: In 2018, we reached 3 billion in assets. As of December31st we are the 15th largest credit union in California, byasset size. In April of this year, we celebrated our 85th year inbusiness. We continue to focus on building relationshipswith our members and providing value with ouraffordable fnancial services. We introduced some new services last year thatdemonstrate our commitment to convenience: Appointments for several types of branch servicessuch as loans, notary service, and new accounts, canbe scheduled on our website, online banking site, ourmobile app, or the computer kiosk in a branch. Members who call our Member Service Center mayrequest a call back through our automated system ifthey don’t have time to wait on hold. Debit cards for new accounts and replacement cardsfor lost or damaged debit or credit cards may now beissued in our branches. Our mobile notary service will meet you at aconvenient time and place to sign and notarize loandocuments. (The service is currently available forHome Equity Line of Credit Loans with plans to expandto other types of loans.) The Educator Credential Loan was offered last year tohelp people who are enrolled in a credential program.Higher education costs continue to soar, and thisloan helps qualifed educators pay for their advancedcredentials.President/CEO Dooley introduced Mike Snell, Chairman ofthe Board. More than 14,800 new members joined EECU last year,and we now serve more than 293,000 members. Ourgrowth in membership, loans, assets, net worth, andother areas is possible because of the support of ourmembers. The devastating wildfres and foods last year, along withthe partial government shutdown, created stress andhardship for many of our members. To help our members,we offered an Emergency Loan to those who wereaffected by the partial government shutdown, allowingthem to skip a loan payment, take out a loan at zeropercent interest, and withdraw money from a certifcatewithout penalty. We also created special fnancialassistance packages for members affected by foods,hurricanes and the recent devastating California wildfres. EECU served our community by offering free fnancialliteracy and education programs in the classroom and inthe community. Last year, there were more than 24,000attendees at our fnancial education presentations. EECU sponsored many community programs and events,such as academic decathlons, sober grad nights, collegeand career days, reading programs, spelling bees,Excellence in Education events, student art shows, andband reviews. EECU employees volunteered their time in thecommunity and held fundraisers to beneft numerouscharitable organizations. EECU was honored to be voted best credit union in TheFresno Bee’s People’s Choice Awards for the 13th yearin a row, and in the Fresno Business Journal’s Best ofCentral Valley Business awards.THANK YOU PRESIDENT/CEOChair Snell recognized and thanked President/CEO Dooleyfor her leadership. He said that she and the staff deserve abig round of applause for their dedication and commitmentto EECU and its members.CALL MEETING TO ORDERChair Snell offcially called the 2019 EECU Annual Meetingto order at 7:47 p.m. He thanked members for attendingand for their loyalty and support. He stated the purposeof the meeting was to celebrate the great success of thecredit union, show appreciation to our members, havesome fun, and:
Fulfll the requirement for an annual meeting of themembership; Present EECU’s Annual Report, including its fnancialstatements; Report our election results; Approve the minutes of last year’s Annual Meeting; and, Announce the recipients of the Grant Programs.Chair Snell recognized members of the SupervisoryCommittee and the Board of Directors who were inattendance.Supervisory CommitteeLisa Cutts, ChairPhil Neufeld, SecretaryMike BergWilliam ClarkAssociate VolunteersAngela Arismendi-PardiJan DuttarerBoard of DirectorsMike Snell, ChairJohn Tinker, Vice ChairRick Browning, TreasurerWalter FranzellPaul HokokianAli NekumaneshDavid RobertsBarbara ThomasEmeritiCarol MunshowerDerek SchartonHe recognized and thanked Michelle Hernandez, GrantCommittee Chair, for her 17th year of administering theprogram. “. . . she has always done a great job.”Chair Snell also recognized and thanked members of theGrant Selection Committee; 36 people served on thecommittee this year. He asked Grant Selection CommitteeMembers present to stand and be recognized.Chair Snell said that a poster with the names of all EECUgrant recipients was on display next to the stage, and agroup photo of the grant recipients would be taken at theclose of the meeting for display in EECU’s branches. Hecongratulated the recipients of the grants, and certifcateswere presented to all recipients in attendance.Chair Snell recognized and congratulated the recipients ofEECU’s Employee Grant Program. Employees’ spousesand dependents are eligible for up to ten 2,000 grants.Certifcates were presented to those present.ELECTION REPORTChair Snell introduced Dick Ashjian, Senior Vice President(SVP) of Risk Management and an Inspector of Election,and asked him to give the Election Report.QUORUMChair Snell said that according to EECU’s Bylaws, aquorum of at least 25 members must be present toconduct the Annual Meeting. He was advised that 2,578members and guests were present—”. . . we have aquorum.”SVP Ashjian said that each year EECU seeks volunteersfrom the membership to run for the Board of Directorsand the Supervisory Committee through newsletterarticles, statement inserts, and the inLighten boards in itsbranches. This year the information was published fromNovember 2018 through January 2019.APPROVAL OF MINUTESChair Snell referred to the minutes of the last AnnualMeeting printed in the Annual Report and asked for amotion from members to approve said minutes, notingthat the makers of the motion must be EECU members.Three members were nominated for the Board ofDirectors, and three members were nominated for theSupervisory Committee, as a result of the nominationprocess. No petitions were received this year, so theBoard of Directors declared that those nominated wereelected without the need for an election.ACTIONTim Thomas moved to approve the minutes of the AnnualMeeting of the EECU membership held on June 15, 2018.The motion was seconded by Barbara Hull, voted on, andpassed.ANNUAL REPORTChair Snell reviewed the Annual Report, which containeda combined message from the Chairman of the Boardand the President/CEO, a message from the SupervisoryCommittee, and EECU’s unaudited balance sheet andincome statement as of March 31, 2019.STUDENT GRANTS PRESENTATIONChair Snell reported that EECU has awarded studentgrants totaling over 1.3 million to 825 student memberssince the program’s inception in 2003. The cost ofeducation continues to rise, and many students take outloans to cover the cost of books, housing, and tuition. TheEECU Board established the program to help studentsachieve their career goals by providing grant money tohelp pay some of the students’ education expenses.EECU received 372 eligible grant applications for one offfty 2,000 grants this year.Those elected to the Board of Directors for three-year termswere Cleo Bauer-Papagni, Mike Snell, and Barbara Thomas.Those elected to the Supervisory Committee for threeyear terms were Lisa Cutts and Philip Neufeld. Mike Bergwas elected for a one-year term.The Chair of the EECU Nomination and ElectionCommittee and the Inspectors of Election certifed theresults of this election conducted in conformity with theprovisions of applicable law and our Bylaws.ADJOURNMENTChair Snell concluded the business meeting at 8:07 p.m.President/CEO Dooley conducted the drawing for doorprizes, noting that employees and their immediate familymembers were not eligible to receive prizes. She invited allof those present to visit with family and friends and enjoy theactivities until 9:00 p.m.Mike Snell, ChairLisa Pontecorvo, Executive Secretary
Balance SheetConsolidated Income StatementAs of March 31, 2020April 1, 2019 – March 31, 2020AssetsRevenueMember LoansAllowance for Loan LossesDeferred Loan FeesNet Loans to MembersAccrued Interest ReceivableCash/Cash EquivalentsInvestmentsUnrealized Invest. Holding Gain (Loss)Property and EquipmentNCUSIFOther AssetsTotal Assets 1,597,626,613(11,896,803)5,912,349 1,591,642,159 65426,703,46871,632,345 3,381,080,739Liabilities and EquityLiabilitiesRegular SharesI R A SharesSpecial Share CertifcatesI R A CertifcatesShare DraftsTotal Member LiabilityTotal LiabilitiesRetained EarningsUnrealized Invest. Holding Gain (Loss)Unrecognized Postretirement Gain (Loss)Total Liabilities and Equity 9,182630,744,8422,874,777,364 2,915,391,459 440,313,55936,411,059(11,035,338)Income from LoansIncome from InvestmentsFees and ChargesMiscellaneous Operating IncomeTotal Revenue 67,020,44634,220,20013,883,38430,842,208 145,966,238Interest ExpenseDividend ExpenseInterest ExpenseTotal Interest Expense14,672,9100 14,672,910 8,3985,936,0596,286,843840,1461,464,142Total Operating Expense 95,906,889Net Income 35,386,439Operating ExpenseEmployee Compensation and BeneftsEducation and DevelopmentOffce Occupancy ExpenseOffce Operations ExpenseEducational/PromotionalLoan Servicing ExpenseProfessional and Outside ServicesProvision for Loan LossesMiscellaneous ExpenseSundry Expense 3,381,080,739A MESSAGE FROM THE SUPERVISORY COMMITTEEThe Supervisory Committee members are elected by EECU members. The Committee’s primary responsibilityis to work with management to engage an independent CPA frm to perform annual audits of the credit union’sfnancial statements and verifcation of member accounts. Further, the Committee oversees and reviews theactivities of the internal audit department, and works with state and federal regulators to ensure that the creditunion’s policies, procedures and internal controls are adequately designed to protect members’ assets.The Supervisory Committee reports that EECU continues to be a fnancially sound credit union and remainscommitted to ethical business practices, honesty, and fnancial integrity at every level.The Committee retained the services of Moss Adams LLP, a national CPA frm, to perform the annual fnancialstatement audit and verifcation of members’ accounts. I am pleased to report that, in their opinion, the balancesheets and related statements of income fairly present, in all material respects, the fnancial position for EECUand conform with generally accepted accounting principles. Combined with periodic regulatory examinationsand planned internal audits, members should feel confdent that the credit union’s fnancial performance andoperations are regularly evaluated for safety and soundness.We wish to express our appreciation to the Board of Directors, management and staff for their continuedcooperation and diligence.Be well.Phil NeufeldChair, Supervisory Committee
Mailing AddressP.O. Box 5242Fresno, CA 93755Toll-Free Nationwide1-800-538-3328Personal Telephone Access1-800-649-4PTA (4782)WebsitemyEECU.orgBranch HoursMonday – Thursday9 a.m. – 5 p.m.Friday10 a.m. – 6 p.m.Member Service Center HoursMonday – Friday7 a.m. – 7 p.m.Saturday9 a.m. – 1 p.m.Branch LocationsClovisFresnoHanfordMaderaMercedBoard of DirectorsMike Snell, ChairJohn Tinker, Vice ChairRick Browning, TreasurerReedleySangerSelmaTulareVisaliaCleo Bauer- Papagni, SecretaryWalter A. FranzellPaul HokokianAli NekumaneshDavid A. RobertsBarbara ThomasEECU Size Ranking (by assets)As of December 31, 2019Central San Joaquin ValleyCaliforniaUnited States11480Supervisory CommitteePhil Neufeld, ChairLisa Cutts, SecretaryTom BorchardtWilliam ClarkDerek Scharton
loans to cover the cost of books, housing, and tuition. The EECU Board established the program to help students achieve their career goals by providing grant money to help pay some of the students’ education expenses. EECU received 372 eligible gr
