Charting a Clear Path Forward
Thank you for the warm welcome to Minnesota! It has meant a lot to feel the genuine welcome from so many members, RBCU staff, and people in the communities RBCU serves. I knew that as soon as I accepted the job as “Your Neighborly Credit Union’s” president, the hard work would begin. There is so much to do; so many people to meet. Over the past couple of months, I have spent time getting out in Richfield, Bloomington, and Edina visiting with members, business representatives, and local organizations which has been rewarding.
I understand that I am taking the reins of a financial institution with a 60-year tradition of excellent member service and strong community support. I am proud to be RBCU’s president and look forward to many years of growth. But before I can help to lead the credit union forward, I need to look back a year and take stock of our current situation.
In 2016, RBCU experienced growth in membership, loans, and deposits. Membership grew 7.79% and the loan portfolio grew 6.86%. Our shares grew by 6.35% and our core deposits (checking and savings products) grew by 6.95%. Additionally, we remain a strong credit union in the state of Minnesota (and in the country) with a capital ratio of 8.45%. We experienced a decline in net income from 2015 because of an increase in loan losses. These losses were due to a relationship with a local car dealer that went bad. We do not anticipate loan losses in 2017 from this situation and have the credit union back on track.
The RBCU management team and I have worked hard to formulate long-term strategic goals as well as practical short-term goals for 2017. Taking a long view approach, a principal area of focus has been the creation (or re-creation as the case may be) of a strong, stable, and efficient infrastructure. Every aspect of RBCU’s business depends on having the very best infrastructure possible and managements’ decisions concerning this will be a strategic focus this year and many years to come.
In the present, our key goals are to offer the best rates we can, offer even more of the products and services our members want, and to keep our loan rates as low as possible: the things credit unions were created to do as a cooperative. The RBCU staff and board will consistently strive to keep our member/owner’s financial needs the top priority.
I thank all of the employees and Board of Directors for their continued hard work and commitment to RBCU’s success. I especially want to thank YOU, the member/ owners, for your continued support and trust in RBCU. We look forward to a wonderful 2017 and I hope to see all of you out and about in the community.