Carolina Trust Federal Credit Union
Annual Membership Meeting
April 26, 2018
The Annual Membership Meeting of Carolina Trust Federal Credit Union was held this date at the 21st Avenue Office.
Chairman Thrash called the meeting to order at 3:10 pm and welcomed members to the 59th annual meeting. All Board members, except for Robert Burney, were present. Jim Risser, Supervisory Committee Chairman, Alan Rosensteel, David Gilbert, and Karen Minogue were also present.
Vice Chairman Marlowe gave the invocation. Chairman Thrash led the Pledge of Allegiance to the Flag. He introduced the Board members and the Supervisory Committee, a very important committee that ensures we are doing business properly and following policies and regulations.
Chairman Thrash said that we will follow the agenda as printed in the Annual Meeting Report booklet and asked members to hold their questions until after the Supervisory Committee, Board Chairman and President’s reports have been concluded.
Member Howard Jones was recognized as a long-time member who attends our membership meetings annually.
Chairman Thrash noted that 2018 is our 60th anniversary year. We opened in a small office in the administration building on Myrtle Beach Air Force Base with one employee serving military and civilian personnel working at the Base. We have come a long way in 60 years. Today we have 7 branches, 40,000 members and before the year is outwe should reach $250,000 in assets. Our plans for this anniversary year has a “home grown” theme. We were there in 1958 for our Myrtle Beach Air Force Base members, and we will be there for you, your children, neighbors and employees to guide borrowers through their first car and home ownership, credit card purchases and management, while helping savers plan for family expansion, college, weddings, and retirement. We are your hometown Credit Union, and we are honored to serve you.
He introduced Tim Carlisle, President/CEO, who has been with us for 9 years and President/CEO since June. He then introduced Tim Vogel-CFO, Christina Naylor-SVP Operations, Jessica Wilson-VP HR/Marketing, Bobby Doty-VP Lending, Joe Foster-VP Information Technology, Angelia Johnson-VP Strategic Initiatives, Melinda Pearce- VP Compliance and Risk Management, and Selma Reburn-Executive Assistant. He said the 80 staff members that meet and serve our members are important to our success in fulfilling our mission.
Member, Howard Jones, made a motion to approve the minutes of the April 27, 2017 annual membership meeting. The motion was seconded and carried.
Supervisory Committee Report: Jim Risser, Supervisory Committee Chairman, introduced members of the Committee, Alan Rosensteel, David Gilbert, and Karen Minogue. He expressed his appreciation for their help throughout the year. He reported that it is the opinion of the Supervisory Committee that Carolina Trust FCU is a financially sound, well managed organization dedicated to serving its members and meeting their financial needs. The Committee members make regular visits to all branches throughout the year as well as attend monthly Loan Review Committee and Board meetings. The Committee also reviews all audits to make sure the Board of Directors and Management respond to any recommendations made by the audit firms. He thanked Tim Vogel, CFO, for his assistance, and gave kudos to staff for assisting in preparation for audits. Mr. Risser referred to our branding efforts, pointing out the new signs, and the significance to credit union recognition. He thanked the Board for their support and said he enjoys working with them.
Chairman’s Report: Chairman Thrash said he always likes these meetings with our members. He reported that 2017 was a transitional year. Any time you go through change, you expect challenges. The transition at the top has, however, been seamless. A man of ideas, Tim Carlisle, has been able to rally the staff around him. We have close to 40,000 members and are growing at the rate of over 300 members a month. Our field of membership covers about a 2500 square mile area. Over $30 million in loans were added this past year. We do a lot of peer analysis; we doubled what our peers did in 2017. We are off to a good start in 2018 as well.
We opened our 7th branch in Little River in 2014. We have been approved this year to expand into Brunswick County, NC. People in that area are now eligible to participate in our credit union = services and can be served by our Little River branch. There have been numerous changes in our 60 years. We remained a viable credit union after closing of the Myrtle Beach Air Force Base. The Carolina Trust mission statement is the best he has seen, “Preserving our Past, Improving Our Present, Building Our Future: Owners Serving Owners”. We will continue to embrace our mission in providing a sound, service-oriented financial institution for our members.
President’s Report: Mr. Carlisle also referred to 2017 as a year of significant change. We transitioned from CEO, Jerry Miller, who retired after 20 years with Carolina Trust FCU. Mr. Carlisle said even though he has 25 years of credit union experience, changing to position of CEO is a new experience. He remarked we have highly motivated employees. One of the first changes to improve the visibility of Carolina Trust includes promoting our brand by having employees dress in our brand-wear. The purpose of employees wearing brand-wear is they can be immediately identified by members who come in to our offices. When wearing brand-wear out in the community, people notice, and this provides an opportunity for us to market our credit union. We have also upgraded our signage to be more highly visible, created a dedicated Member Service Center to better serve members contacting us by phone and online, added a first-time homebuyer’s mortgage product, launched centralized lending for better efficiency, initiated electronic documents and electronic signatures, and installed new ATMs. Member deposits grew by over $7 million and loans increased by $27 million, more than double the industry average while the loan delinquency ratio continues to remain low at 0.26%. Net worth to assets ratio rose to 9.67%. Changes still to come include a first-time auto buying program, an updated website, ability for members to use their mobile devices to complete loan applications. We will also be working on additional member service options such as video chat and updating our credit card rewards program. We donated $30,000 to charities during 2017 and participated with WFXB FOXTV in the “I’m A Buddy, Not A Bully” campaign. We look forward to continuing our work in the community and to serving our members. He thanked staff, the Board, and especially members whose excitement and dedication contribute to the success of our credit union.
Chairman Thrash commented that he is proud that our employees provide financial training in the elementary through high schools as well as for CCU students. We have three interns from CCU and we are working very hard to expand credit union membership at CCU.
Member, Karen Bennett, asked if we are going to build a branch in Market Common. Chairman Thrash replied that we have an ATM there and still own the land. We have branches in Surfside and on Holmestown Road. He said we continually look at expansion options. We will need new headquarters soon and we will review all factors when determining what space will be needed. We are working with a consultant to determine the timing and location of building a new branch. Mr. Carlisle also conveyed that we have limited resources and we are doing a market study because we want to be very strategic about the decisions we make. Chairman Thrash said there is one other credit union, Santee Cooper, in Market Common and we are also watching what the banks are doing.
Old Business: There was no old business.
New Business Other Than Elections: There was no new business.
Nominating Committee Chairman, Lynne Boykin, explained the election process. The Nominating Committee presented candidates for four seats to be filled: Charles M. Thrash, B. Michael Marlowe, J. Dalvin Avant, Jr., and David F. Honeycutt. No nominations by petition were received. The nominations were closed. Chairman Thrash asked for a motion to elect the nominees by a vote of acclamation.
A motion was made by Howard Jones, seconded by James D. Bennett, to approve the nominees by acclamation. The motion carried.
Chairman Thrash said he has been seated around the Board table with great leaders, General Jones E. Bolt, Col. Robert P. Pasqualicchio (Pancho), Col. Ervin C. Ethell, and Lt/Col. James B. Kendrick. He presented Lt/Col. Kendrick with a Board Resolution in recognition of his service on our Board since 1985 when we were $37 million in assets, for service to our country, and to proclaim Lt/Col. Kendrick the title of Board Director Emeritus. He said we will give all credit due to Lt/Col. Kendrick for serving, spending a lot of time and energy, and honoring us with his knowledge. Lt/Col. Kendrick is a very humble man who served his country in WWII and is one of very few people who served all through WWII. He expressed that we will miss him. Lt/Col. Kendrick will turn 99 next month. Lt/Col. Kendrick said he has had a lot of happy memories serving this credit union and he will miss coming by every day.
The meeting adjourned at 3:35 pm.
- Ascertainment of a Quorum
- Approval of Minutes from Last Meeting
- Report of the Supervisory Committee
- Board Chairman and President’s Report
- Old Business
- New Business Other Than Elections
Hurricane Florence Recovery
September 14, 2018 and the following weeks made an indelible impact on Carolina communities. At first, many residents breathed a sigh of relief when the Category 4 Hurricane was downgraded before making landfall over North Carolina as a Category 1 storm with 90 mph winds. But then, the rains kept coming and didn’t relent while the rivers continued to rise and overflow their banks. Countless residents were displaced from flooded homes, businesses were underwater, numerous roads were impassible, schools and daycares were closed for extended periods, and communities were left to pick up the pieces and wait for the waters to recede.
Despite post disaster obstacles, Carolina Trust sprang into action as quickly as possible getting five of our seven branches operational. Some branches initially ran on skeleton crews as evacuated employees tried to return to their homes, secure childcare, and several employees faced multi-hour commutes due to road closures. It was a challenging time for staff, members and business owners. Still, the Carolinas are strong, and we persevered through disaster recovery the best way possible: people helping people.
Carolina Trust offered a Disaster Relief Loan to assist our members who were trying to recover and waiting on FEMA funds. As needed, we deferred loan payments for people who were displaced and unable to work. We also waived ATM and Courtesy Coverage fees during the coastal evacuation period. Additionally, we donated money and distributed food, toiletry items and cleaning supplies to local schools. In some instances, we pooled resources with other businesses to support flood victims in need of temporary shelter.
Our Commitment to You
Preserving Our Past, Improving Our Present, Building Our Future: Owners Serving Owners
Continue to improve upon our service quality and expand our market share by aggressively nurturing existing member relationships while pursuing new members.
Conduct business according to the highest ethical standards
Active listening, follow-up, and relationship building
Foster a culture of innovation and encourage creativity
Maintain an environment that focuses on continuous improvement
Inspire and empower one another to achieve our vision
Cultivate an energizing environment that instills a sense of pride and winning spirit
Share our success by supporting charitable causes and employee volunteer activities
Board Chairman and President’s Report
We are pleased to report that Carolina Trust Federal Credit Union has enjoyed another strong year of healthy growth and continues to focus on delivering relevant financial services to members. This success culminates the Credit Union’s 60th Anniversary celebration. We offered special loan terms and coordinated several outreach initiatives to commemorate six decades of dedicated member service and community involvement.
Carolina Trust achieved impressive membership, loan and asset growth last year. We ended December 2018 at 10.06% net worth, up from 9.67% the previous year. Our annual membership growth rate was 6.10% compared to industry average of 5%. Loan growth was driven by mortgage loans followed by business, vehicle and sales finance loans. Assets grew over $7.8 million to end December 2018 at $239,794,331 million in assets. We are poised to move forward with our goals for the coming years, which include continuing to improve our remote service experience and digital banking solutions that impact mobile banking, payment options and online loan and account applications. We’ve made headway, but we have more on our technological agenda to accomplish – including a website redesign that is currently underway.
This past year, we streamlined the lending application process by offering a user-friendly mobile loan application, the security and convenience of eSignatures, and expedited loan approvals and funding through a centralized team of lenders. In First Quarter of 2019, we introduced a First Time Auto Buyer loan for borrowers who need to establish credit but may not have a credit history. It’s just another way your Credit Union is helping borrowers gain access to credit and reliable transportation. Recently, we also introduced an updated version of our mobile banking app, which includes the option to access the app via fingerprint authentication. During 2019, Carolina Trust will analyze our credit card portfolio to determine how we can expand the credit card rewards program to make this payment option more enticing for consumers. We also plan to review our credit card pricing in a rising rate environment. Carolina Trust has not altered our credit card rates in ten years.
Looking ahead to 2020 and beyond, Carolina Trust is considering ways to deliver financial services more conveniently via methods such as online video chat, Intelligent Teller Machines (ITMs), and digital payments. In the near future, we hope to expand our branch footprint to include a location between Conway and Myrtle Beach. In the near future, we hope to expand our branch footprint to include a location between Conway and Myrtle Beach.
In addition to redesigning the website for ease of use, Carolina Trust hopes to remodel our Surfside Beach location with aesthetic updates to paint, carpeting and more. Our other branches have previously undergone a cosmetic refresh, and we look forward to updating the Surfside branch as well. Unfortunately, the structural repairs and remediation required at our Conway branch were unplanned. And although we typically perform facility maintenance after hours to avoid service disruptions, due to the scope of work involved we decided to allow crews access during weekday hours in hopes of returning Conway to normal operations as soon as possible. Your management team worked diligently to secure a temporary re-location at 1610-N Church Street (the 16th Ave side of the “Conway mall”) to serve residents and business owners West of the Waterway who rely on us for financial services. We anticipate remaining at the temporary Conway location for a few months until the branch work is completed. Although these circumstances are not ideal, the unexpected can propel us to find solutions and opportunities during adversity. Our staff and members are resilient through the unexpected, and we are navigating through this challenge together.
And speaking of together, our employees work closely as a team to provide the best service possible. We’re not a perfect team, but we’re a team who believes in perfecting what we do each day for our members and each other. In 2018, Carolina Trust was honored with a Best Places to Work in South Carolina designation from the South Carolina Chamber of Commerce. Part of what makes Carolina Trust a great place to work is we give back to the communities we serve by participating in school, non-profit and community events. Last year, we donated hundreds of hours and thousands of dollars to worthy causes, children and adults experiencing difficult circumstances, fun local festivals, and hardworking students and educators. It is our belief that together, we can accomplish great things for our community. Please take a moment to review the included Community Initiatives Report and spotlight on Hurricane Florence Recovery to learn what we’ve been up to in the community and how your Credit Union has been recognized locally, regionally and nationally for our efforts.
Possibly, you’ve seen our new television commercials and/or brand video on social media. Carolina Trust wanted to showcase our rich history and longevity in the communities we serve. We solicited member and employee participation in the brand video because owners serving owners is who we are. It was imperative to hearken back to our roots as the Myrtle Beach Air Force Base Federal Credit Union since that is where our first trusted relationships began in 1958. We also hoped to demonstrate that people from all walks of life find a better way of banking at Carolina Trust. The small business entrepreneurs, hardworking service industry professionals and busy parents who care about their children’s schools and communities – all make up this unique, not-for profit financial cooperative. We wanted viewers to walk away understanding that our Credit Union has weathered storms and celebrated successes, and we’re here to help our members do the same in their personal and business finances.
Our relevance and continued success over the next 60 years will rely on Carolina Trust understanding our members and what’s important to them. We believe our members are people who value a trusted relationship with their Credit Union because they cultivate and nurture trusted relationships with their families, neighbors, coworkers and clients. Their handshake and word mean something to someone; therefore, their service expectations for Carolina Trust are high. They expect us to follow up, follow through and lead the way in competitive rates and terms, innovative services and convenient options. Trusted advice, accountability and a good deal resonate with our members who share their time and resources with the community and want to do business with a local credit union that does the same. Our younger members are looking for guidance without an angle and a chance to prove themselves without fear that their financial inexperience will be exploited. And that’s why we’re here: preserving our past, improving our present, building our future.
Carolina Trust believes that before trust will be reciprocated, it must be earned with time, consistency and authenticity. We can’t grow complacent, but we must continue to operate in ways that build trust and confidence among our expanding membership. Through all the technological, regulatory and economic changes, we will research applicable solutions, advocate for fair regulatory legislation, and adapt to an ever-changing environment. So, you can rest assured we are walking this journey with you.
Here’s to the next 60 years!
Charles M. Thrash
B. Timothy Carlisle
2018 ANNUAL REPORT
APRIL 25, 2019 • ANNUAL MEETING
Supervisory Committee Report
Your Supervisory Committee consists of four Carolina Trust members who serve as volunteers and are appointed by the Board of Directors. The Supervisory Committee is responsible for ensuring that the Board of Directors and Credit Union Management meet financial reporting objectives and establish practices and procedures sufficient to safeguard members’ assets and assure you are provided the quality service you deserve.
The Committee is assisted in carrying out its responsibilities by CPA auditing firm, currently Doeren Mayhew, CPAs, to perform the annual audit and verification of member accounts. The audit is conducted annually as of March 31st. The Supervisory Committee also contracts other CPA and consulting firms to perform internal audits on an ongoing basis throughout the year. Additionally, our federal regulators, the National Credit Union Administration (NCUA), perform periodic safety and soundness exams.
It is the opinion of your Supervisory Committee that the Carolina Trust Federal Credit Union is a financially sound, well managed organization dedicated to serving its members and meeting your financial needs.
Your Supervisory Committee includes the following volunteers: Chairman, James Risser, Alan Rosensteel, David Gilbert, Jr., Karen Minogue, and Richard Patelunas and we thank you for allowing us to serve you and Carolina Trust Federal Credit Union.
The Supervisory Committee members make regular visits to all branches throughout the year as well as attend monthly Loan Review Committee and Board of Directors’ meetings. We also review all audits throughout the year to make sure the Board of Directors and Management respond to any recommendations made by the auditing firms.
The Supervisory Committee is committed to ensuring the line of communication remains open to our member/owners, so you continue to receive the highest quality service. The Committee will review and respond to any letter sent to the Committee at the following address: PO Box 8941, Myrtle Beach, SC 29578-8941
Chairman, Supervisory Committee
Community Initiatives Report
Carolina Trust actively supports the communities we serve as well as local area schools. In 2018, your Credit Union attended numerous area events, such as the Conway Riverfest, Imagination Library Children’s Festival, Little River Shrimp Fest and Blue Crab Festival, Myrtle Beach Chamber and Brunswick Business Expos, and HCS New Teacher Academy. We participated in “Walks” for the March of Dimes, American Cancer Society and Family Justice Center while also sponsoring Freedom Readers, Grand Strand Miracle League, and local chapters of the American Red Cross and American Heart Association.
We also reach out to educators and students via career days, HCS Teacher of the Year recognitions, Key Scholarship awards, River Oaks Elementary In-School branching, and CCU student orientations. Carolina Trust enjoys incorporating fun into our promotions and community initiatives. Last year, we had a Show the Love promotion where members could share what they appreciate about their Credit Union.
Each month, a participating member was randomly selected to receive $100. Additionally, our President/ CEO, Tim Carlisle, and WFXB FOX TV surprised a few lucky grocery shoppers by paying for their check-out purchases at the Myrtle Beach Piggly Wiggly. It was so much fun seeing the looks on people’s faces as we shared random acts of kindness at various business locations throughout the year.
Carolina Trust even hosted two house warming parties: one for the first Brunswick County borrower who closed their First Time Homebuyer loan with us and the other borrower who was our 60th home loan closing, in recognition of our recent anniversary. It was great to see these families settle in their new homes and all the friends and neighbors who dropped by with warm welcomes to the neighborhood.
Carolina Trust was honored to coordinate this memorable occasion from invitations to decorations and catering. We will continue to randomly treat a few lucky home loan borrowers to a house warming party, compliments of their Credit Union.
Part of our community outreach also includes reaching out to those in need following a disaster. During the aftermath of Hurricane Florence, Carolina Trust made monetary donations and distributed food and supplies to local schools, we partnered with local organizations to support temporary shelter for flood victims, and we also worked with our members who were experiencing extraordinary circumstances related to weather events. In fact, Carolina Trust received the inaugural Excellence in Business Community Involvement Award from the Better Business Bureau. Nominations were made by the BBB in recognition of businesses that go above and beyond for their community.
Additionally, Carolina Trust won several awards through the Carolinas Credit Union Foundation, including First Place for the Dora Maxwell Social Responsibility Community Service Award. During the 2017-18 school year, representatives from Carolina Trust and WFXB FOXTV visited local schools to encourage Fifth Grade students to sign the I’m A Buddy, Not A Bully pledge, agreeing to be kind, treat others respectfully and prevent or report bullying. Students received stickers and magnetic frames for taking the pledge, and two schools won a Dell laptop and Kona Ice parties for their fifth-grade students. Carolina Trust’s effort to provide youth financial education won Second Place for the Desjardins Financial Education Award, and we won Second Place for the Louise Herring Philosophy in Action Member Service Award for our First Time Homebuyer Program. And – for the first time ever – we were awarded a Credit Union National Association (CUNA) Diamond Award for Brand Awareness related to the brand video we produced last year.
Carolina Trust is grateful to be recognized for living the credit union mission, which is people helping people. We are also fortunate to serve caring communities and compassionate members through an involved and kindhearted staff. Carolina Trust understands that banking is not just about the bottom line; it’s about the lives we can impact by showing up each day and giving our best.
Financials: Statement of Condition
|Cash and Cash Equivalents||$10,818,646||$10,390,169|
|Interest bearing deposits||31,525,057||46,186,622|
|available for sale investments||19,806,689||23,934,230|
|Federal Home Loan Bank (FHLB) Stock||208,900||201,700|
|Less allowance for loan losses||1,831,070||1,578,926|
|Accrued interest receivable||553,196||515,995|
|Premises and equipment, net||6,831,851||6,958,529|
|Members' Share and Savings Accounts||$212,810,953||$205,955,473|
|Accounts Payable and Other Liabilities||3,384,364||3,937,947|
|Accumulated other comprehensive income||(533,177)||(357,121)|
|Total members' equity||23,599,014||22,071,404|
|TOTAL LIABILITIES & MEMBERS' EQUITY||$239,794,331||$231,964,824|
Financials: Statement of Income
|For the Years Ended December 31|
|Total interest income||7,898,179||6,871,732|
|Members' share and savings accounts||210,183||187,349|
|Total interest expense||210,203||187,430
|Net interest income||7,687,976||6,684,302|
|Provision for Loan Losses||1,232,500||825,000|
|Net interest income after provision for loan losses||6,455,476||5,859,302|
|Courtesy pay fees||1,651,061||1,619,887|
|Other fee income||1,293,509||1,018,883|
|Non-sufficient funds fees||327,018||326,769|
|ATM transaction income||269,540||265,916|
|Insurance commission income||244,412||224,165|
|Loan late fees||114,318||92,064|
|Other non-operating income||130||67,436|
|Total non-interest income||5,350,317||4,865,812|
|Compensation and employee benefits||4,960,074||4,334,745|
|Other operating expenses||1,792,383||1,695,407|
|VISA debit & credit card expense||1,024,287||965,762|
|Loan servicing expense||441,998||411,367|
|Professional and outside services||367,819||362,326|
|Advertising and promotional||391,680||322,550|
|Maintenance of data processing equipment||207,622||231,159|
|ATM operating expense||153,518||146,716|
|Total non-interest expenses||10,102,184||9,176,924|
Board of Directors
CHARLES M. THRASH
B. MICHAEL MARLOWE
DR. ROBERT B. BURNEY
J. DALVIN AVANT, JR.
LYNNE B. BOYKIN
DAVID F. HONEYCUTT
ALAN C. ROSENSTEEL
Board Member Emeritus
JAMES B. KENDRICK
DAVID GILBERT, JR.
ALAN C. ROSENSTEEL
B. TIMOTHY CARLISLE
SENIOR VICE PRESIDENT/ CHIEF OPERATIONS OFFICER
SENIOR VICE PRESIDENT/CHIEF FINANCIAL OFFICER
TIMOTHY S. VOGEL, CPA
SENIOR VICE PRESIDENT/CHIEF DEVELOPMENT OFFICER
VICE PRESIDENT OF LENDING
VICE PRESIDENT OF COMPLIANCE AND RISK MANAGEMENT
VICE PRESIDENT OF INFORMATION TECHNOLOGY
JOSEPH FOSTER JR.
VICE PRESIDENT OF STRATEGIC INITIATIVES
This credit union is federally insured by the National Credit Union Administration.