Sierra Central Credit Union 2016 Annual Report€¦ · Sierra Central Credit Union 2016 Annual...

Sierra Central Credit Union2016 Annual Report

BUILDING ON OUR SUCCESS

An Equal Opportunity Lender. Federally Insured by the NCUA.

Membership and/or participation fees may apply. All accounts and loans subject to opening and approval criteria. Rates, terms and fees vary and may change at any time without notice. We reserve the right to correct printing errors.

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LIVE LIFE AT THE SPEED OF YOU WITH A SIERRA CENTRAL CHECKING ACCOUNT!

Includes Online Banking, Mobile Banking with Mobile Deposit, Bill Payer and eStatements!

CONTENTS

Sierra Central Credit Union 2016 Annual Report

Chairman of the Board Annual Message

Secretary/Treasurer Year-End Message

Supervisory Committee Annual Message

President / Chief Operating Officer Annual Report

Chief Financial Officer Annual Report

Statement of Financial Condition

Statement of Income

2016 Charts and Graphs

Chief Executive Officer 2016 Annual Message

New Branch Construction

2016 Scholarship Winners

Years of Service Awards

Steve Henderson - 30 Years of Service

Volunteers/Senior Management

2

3

4

5

7

8

9

10

11

13

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15

16

17



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LIVE LIFE AT THE SPEED OF YOU WITH A SIERRA CENTRAL CHECKING ACCOUNT!

Includes Online Banking, Mobile Banking with Mobile Deposit, Bill Payer and eStatements!

Sierra Central Credit Union 2016 Annual Report | BUILDING ON OUR SUCCESS

The theme for our annual meeting is “Building on Our Success”, but we

must understand our past so we can plan for the future.

As this 2016 Annual Report provides you with a tremendous

amount of financial data, strategic insights and information presented

by members of our Senior Leadership TEAM, Supervisory Audit Committee and

Secretary Treasurer, my comments will be brief.

While our political leaders in Washington and Sacramento seem to be in complete disarray; Sierra Central’s leaders are successfully directing us into the future, and I am proud to note that our TEAM of experienced and results-driven leaders have been together for seventeen years and counting.

As you know, we have been serving Northern California Communities for over sixty one years. However I want to provide some context using the year 2000 as a bench mark since that is the year our senior leadership team was installed.

Every year since the year 2000, our senior management team puts together a Strategic Plan. That plan is then reviewed and approved by your representatives (The Board of Directors), who are tasked to do so. The credit union’s officials and Senior Leadership TEAM spends significant time developing these critical next steps for each fiscal year.

In the year 2000, Sierra Central started with assets of $242 million. With the oversight of your representatives (the Board of Directors), senior leadership’s insight and experience, and the hard work of our nearly two hundred employees, and with your loyalty and patronage; we have grown to $867 million in assets, which is well on our way to our goal of $1 billion in assets.

It is also worth noting that during the past seventeen year period, the credit union has granted over $2.6 billion in loans to its over sixty one thousand members. We are extremely proud that we were able to help our members meet their financial and personal goals by providing them auto loans, home loans, home improvement loans, debt consolidation loans, boat loans, lines of credit and VISA lines of credit.

Since 2008, we have weathered the deepest recession since the great depression and Sierra Central Credit Union came out of it stronger than when we went into it.

While 2015 was also a very successful year where the credit union ended up with total assets over $792 million, at the end of that year, we went into strategic planning meetings for 2016 forecasting meaningful asset growth once again. As it turned out, for 2016, we were able to exceed our projections with growth of $74.6 million in assets.

In addition to strong asset growth, in 2016 we built two new branches in Grass Valley and Placerville, and we opened a new branch in Anderson. And once again Sierra Central received the highest possible ratings by both Federal and State auditors for safety, soundness and financial performance.

Our stated goal has been to reach one billion dollars in total assets, which would make us the largest credit union headquartered in the Northern Sacramento Valley in California.

In addition to our financial growth and facilities growth; we have grown internally in order to position ourselves for the future. We now have a commercial lending department, enhanced real estate lending department, and we worked to assist our branch and department employees to expand their use of enhanced technology to serve our members, and all while providing the highest levels possible of data security.

Also, I want to congratulate Sierra Central’s longtime Chief Information Officer Steve Henderson for his outstanding leadership and contributions to the success of the credit union, during his thirty years with the organization. Steve truly represents SCCU’s culture of success, character, hard work and innovation.

Everything Sierra Central Credit Union does is driven by what is best for our member-customer-owners. As your representatives, the SCCU Board of Directors, Supervisory Audit Committee, Senior Management TEAM and Employee TEAM takes great pride in providing you the best in financial products and services, technology, safety and soundness.

Building success is not only our past, but building on our success for your benefit is Sierra Central’s future!

CHAIRMAN OF THE BOARD 2016 ANNUAL MESSAGE 2

Chairman’s 2016 Annual Performance Message | Chairman Ron Bartoli


Secretary/Treasurer 2016 Year-End Message | Diane Myers, Board Secretary/Treasurer



A HOME LOAN LENDER WITH A VARIETY OF

PROGRAMS TO FIT YOUR NEED!

• Fixed and Adjustable Rate Loans• Purchase or Refinance• First Time Home Buyer• Home Equity Loans and Lines of Credit

In the 27-years of serving on the Board of Directors for Sierra

Central Credit Union and as your Secretary/Treasurer, I am reporting that the year of 2016 will go down as one of the

busiest and most productive years that I can recall. At the

conclusion of this past year, Sierra Central had reached assets totaling

$867 million. The management and staff members grew your credit union getting us closer to our goal of $1 Billion dollars in assets! Reviewing 2016 at Sierra Central, we see a year of growth in assets and shares, and celebrate a year of growth of our branch offices. The team at Sierra Central built new office locations and relocated the Placerville and Grass Valley branches and also opened a new location in

Anderson, California. I congratulate and acknowledge the Sierra Central staff for their hard work in 2016, as well as expressing much appreciation to them for striving to keep all aspects of the credit union in good working order while continuing the great tradition of making our members’ lives fi nancially better. My thanks to my fellow directors who take the time to review our monthly reports, budgets, examinations, audit reports, and who study to become knowledgeable of these financial reports. As Secretary/Treasurer for the Board of Directors, I want to express to the members of Sierra Central my confi dence that Sierra Central Credit Union will continue to offer the most competitive products and services to its member-owners while maintaining the safety and soundness of the credit union. It’s a good time to be a Sierra Central Credit Union member.


The Supervisory Committee’s role is to maintain oversight of the safety and soundness of the credit union. We have continued the practice of meetings throughout the past calendar year with the credit union auditing team to review branch audits and systems for internal controls.

We also engage an external auditing firm to perform an independent audit of Sierra Central. State and Federal regulators also examine the credit union on a regular basis. The Supervisory Committee reviews the results and follows up with the Executive Management Team on any action items identified in the reports. The Committee keeps the Board of Directors and credit union management apprised of all the ongoing examinations and any related recommendations we may have.

In 2016, the Supervisory Committee retained RSM McGladrey LLP, an independent certified public accounting firm to perform the annual audit.

RSM McGladrey LLP performed an opinion audit that evaluates accounting controls, financial statements and verification of member accounts. Sierra Central Credit Union received an unqualified opinion on the financial statements. This essentially means that, after the audit, the firm felt that the credit union

meets all generally accepted accounting practices (GAAP), and that the financial statements are an accurate representation of our financial condition. The Supervisory Committee can say with complete confidence that Sierra Central Credit Union continues to maintain a high level of financial safety and soundness.

Your Supervisory Committee shall continue to perform its oversight responsibilities in the best interest of all the credit union members. We will remain vigilant representatives of members’ interests, ensuring continued safety and soundness for your money as the credit union strives to provide you and your family with excellent member service.

Your Supervisory Committee is composed of volunteers who are members of Sierra Central and elected by you, our members, to serve three year terms. Your Supervisory Committee members each bring financial, technological and management backgrounds and we are:

Dale Hall - Committee Chairman

Mike Hudson - Committee Vice-Chairman

Devin Barber - Committee Secretary

SUPERVISORY COMMITTEE 2016 MESSAGE 4

2016 Supervisory Committee Message | Dale Hall

DALE HALL

DEVIN BARBER

MIKE HUDSON

Toys-For-Tots Drive in Anderson CA

PRESIDENT AND COO 2016 MESSAGE 5


I am pleased with all that we accomplished in 2016. We

completed four construction projects (2 replacement branches, one new branch, and a new drive-up ATM structure). We expanded our call center hours and added

mobile text and chat access, and we completed numerous technology

upgrades including Intelligent ATM Deposit Review, Card Valet, Mobile Deposit, Apple

Pay, ClickSwitch and EMV Certification. We accomplished all this while generating over $251 million in loans during the year. Whew! Why are we trying to do so much? The answer is simple. We are doing our best to make Sierra Central Credit Union a financial service company that our members truly value. We are keenly aware of the choices our members have. We work tirelessly to earn the right to serve our members every day.

The only true measure of success is growth in the business that members give us. We are very pleased that our members responded to our offerings by giving us more of their business. Our member shares portfolio grew by $67 million in 2016. This represents an annual growth rate of 9.67 percent, the highest growth rate we have experienced in a while. Not coincidentally, the change in Federal Reserve monetary policy allowed us to improve our dividend rates. We expect this trend to continue into 2017. It is about time that the savers benefit from the stronger economy.

We continued to have strong loan demand in 2016. We generated over $251 million in new loans to our members during the year. Our portfolios grew 10.07 percent or $55.4 million. We grew our unsecured loan portfolio by $12.6 million, we grew our secured (autos & RVs) portfolio by $23.2 million, we grew our real estate portfolio by $3.8 million, we grew our credit card portfolio by $4.4 million and we had growth in other loans of $11.4 million during the year.

Asset quality continues to be a strength for us. We ended the year with a delinquent loan ratio of 0.49 percent. This compares favorably to the national average of 0.73 percent for similar sized credit unions. Our 2016 net

charge-off ratio of 0.53 percent is down from our 2015 number of 0.56 percent. Our ratio is slightly higher than the national average of 0.47 percent and is indicative of our focus on consumer lending products which come with slightly higher risk profiles. Both of our asset quality ratios demonstrate a strong and consistent approach to lending. We also have sufficient reserves to handle adverse economic conditions. Our allowance for loan and lease losses at year-end totaled $5.7 million and that figure represents a reserve to delinquent loan ratio of 187.9 percent at year-end. In addition, we continue to maintain a strong equity position. Our net worth ratio at year-end was 11.32 percent and is well above the 7 percent standard for well capitalized institutions.

In 2016, we put in a great deal of work to enhance our delivery systems. We invested in new (replacement) branches for our Placerville and Grass Valley markets. We also opened a new branch in Anderson to compliment our Redding and Red Bluff locations. All three branches have been well received by the members in these markets and interest from prospective members is good. In addition, we added two drive-up ATMs at our corporate headquarters to add to member convenience in the Yuba/Sutter communities.

We also made significant investments in our electronic delivery channels. It is our goal to compete with the major banks in the area of electronic convenience. Internet, mobile delivery and plastic card channels have become the standard for many members and are significant differentiators with our young adult members. In 2016, we added software to allow our ATM machines to risk manage ATM deposits to allow more if not all deposit availability for established members. In addition, we added a terrific mobile application called Card Valet. This program allows members to control the use of their Sierra Central plastic cards. Members can turn off and on their cards and receive notifications anytime their cards are used in a transaction. They can also set spending notifications and limits set by amount, merchant type or location. This program puts the power and control over their cards in the members’ hand.

One of the biggest convenience products to be offered recently is mobile deposit. This is a program that allows members to deposit checks directly to their account using

President and COO 2016 Message | Ron Sweeney

(cont.)


their smartphone. A member just needs to enter the amount of the check, take pictures of the front and back of the check, and submit the deposit for payment. Most deposits are credited to the members’ account within a couple of hours. Mobile deposits made after 3pm on weekdays or on weekends should be credited within a couple of hours on the next business day. Many members have commented to me (about how convenient this program is.) It is quickly becoming the standard for check deposit convenience.

Early in 2016, we began offering Apple Pay to our members who value mobile banking convenience. Members can load their Sierra Central credit and debit cards in Apple Pay and use them wherever Apple Pay is accepted. If you haven’t tried it, I recommend it. It is very easy and is more secure than giving your card to a merchant to complete a transaction because it passes a unique token to the merchant rather than your credit card information. This significantly reduces the risk that your card information is compromised. Once tokenization is more widely accepted, it should significantly reduce the amount of plastic card fraud.

In 2016 we expanded our call center hours and also added text and chat access methods. Now members can reach us until 7PM Monday through Friday by telephone, text message or chat session. We hope to expand this service to 24/7 in the future to eliminate the time barriers to member service.

It is no secret that we want to serve all of our members’ financial needs. On occasion, we find members who have their checking accounts at other financial institutions. We often hear that members want to move their account to Sierra Central but they are reluctant to do so because of the hassle of making the transition. We hear you and offer members a new program called ClickSwitch. This program helps members make the checking account transition through an electronic database of institution forms needed to make the transition. In most cases, members only need to input their account information once and select the payroll forms and vendor forms from ClickSwitch to make the move and the program fills in the information and sends the forms via email or regular mail. The program

also has a tracking system to help the member (and us) ensure that the transition is smooth. Given this, we hope more members consider bring their checking accounts and other business to Sierra Central.

Sierra Central, along with other financial institutions, is making the transition to EMV (chip) plastic cards. We are certifying our systems and have begun issuing new EMV plastic cards to our members. By the fourth quarter of 2017, all cards will have been replaced with the new EMV cards. The chip technology will allow us to build in tighter security for card transactions. It is likely that in the near future all card transactions will require a PIN or other biometric authentication method. Again, these new technologies are designed to make plastic card transactions more secure and less likely to be compromised.

There are many more system and software enhancements that we are making, and will continue to make, in the background, to provide our members with top notch security and a high level of convenience. This comes with a significant cost. All that we ask is that members consider bringing more, if not all, of their financial business to Sierra Central. Our purpose is to help members with their financial needs and we are able to do a better job for our members by servicing the whole household relationship.

Sierra Central Credit Union continues to succeed because of our terrific group of talented employees. I have the pleasure of working with these outstanding people who have an extraordinary commitment to a high level of service. I am very proud to be a part of this team. I’d like to take this opportunity to thank them for all that they do to make Sierra Central a success.

Finally, I want to thank you, our members, for choosing Sierra Central for your financial service needs. You are the reason that Sierra Central Credit Union exists and our sole mission is to service your financial needs. Our cooperative structure allows us to focus on the value that we provide to our members. We are very appreciative of the business that you give us. It is our goal to be our members’ first choice for all of their financial needs. We are honored to serve you and promise to do our best to earn your business every day.

President and COO 2016 Message | Ron Sweeney (cont.)

PRESIDENT AND COO 2016 MESSAGE 6


I’d like to thank our member-owners for choosing Sierra Central Credit Union

for your banking needs. As a result of your patronage, 2016 was another successful year for your credit union. Your credit union earned net income of $7.4 million

during 2016 and generated a return on average assets of 0.89 percent for

the year.

An independent audit of our financial statements was performed by RSM US LLP, certified public accountants and the credit union received an unqualified opinion. An unqualified opinion means there are no material misstatements in our financial reports and attests to the accuracy of our financial results.

During the year, your credit union invested in several enhancements to branch locations as well as new service features such as Mobile Wallet, Mobile Check Deposits and Card Valet. We are excited to share these results with you and look forward to the future.

Growth

Member loans, which represent the largest concentration of credit union assets, grew $55 million during the year. This equates to an annual growth rate of 10.07 percent. Our secured loans (backed by vehicles and similar collateral) and real estate loan portfolios compose the largest portions of the loan portfolio at 59 percent and 24 percent, respectively. A higher concentration of collateralized loans typically results in lower loss rates and allows the credit union to offer more competitive rates and products. In addition to Auto, RV and Mortgage loan offerings, your credit union has a variety of loan products such as personal loans and credit cards to meet all of your borrowing needs. During 2016, the overall quality of the loan portfolio remained strong and we ended the year with total loans of $615 million.

Member shares grew $67 million in 2016, which equates to an annual growth rate of 9.67 percent. Growth occurred primarily in regular savings and certificate of deposit balances, which increased $29 million and $20.5 million, respectively, during the year. Money market balances

grew $9.7 million and checking account balances grew $7.2 million during the year. We ended 2016 with $760.5 million in total shares.

The credit union ended 2016 with total assets of $867 million. The credit union’s assets grew by $74.6 million during the year, which represents an annual increase of 9.39 percent. The credit union’s equity reserves increased by $7.4 million and ended the year at $98.7 million. Your credit union has a strong net worth position of 11.32 percent and is considered well capitalized by its regulator and deposit insurance agencies. Earnings

Total interest income for 2016 was $29 million. Net loan interest income totaled $30 million for the year and was $2.1 million more than our total for 2015 due to improved loan demand. Our investment portfolio earned interest income of $1.3 million in 2016.

Member dividends and interest expense totaled $3.2 million in 2016 and was increased over the previous year due to growing share deposit balances. The credit union has adequate liquidity and did not have any borrowing costs during the year.

The credit union’s net interest income totaled $23 million in 2016 and was improved over the 2015 result, due to strong loan growth. Provision for loan loss expense was $2.8 million. Non-interest income (fees and other miscellaneous operating income) totaled $8.3 million for the year.

Total operating expenses were $24 million in 2016 and $1.3 million more than 2015 as a result of investments in our branch facilities and new service features. During 2016, we completed the construction of our new Grass Valley and Placerville locations. We also opened a new location in Anderson to improve service to the surrounding communities. We are pleased with the new locations and hope that you have enjoyed conducting your business with us at the improved sites.

We are pleased with the financial results for 2016. Your investment in the credit union is a factor of its success. We appreciate the opportunity to continue facilitating the financial services needs of our member-owners.

Chief Financial Officer 2016 Message | Stephanie Dickinson

CHIEF FINANCIAL OFFICER 2016 MESSAGE 7

Note: The financial statements are un-audited. The 2016 audit report and disclosure notes are available upon request.


2016 STATEMENT OF FINANCIAL CONDITION 8

Cash & Cash Equivalents 168,379,291

InvestmentsTrading Securities -Available-for-Sale Securities -Held-to-Maturity Securities 40,500,819Non-SFAS 115 Investments 1,805,800

Total Investments 42,306,619

LoansUnsecured 49,143,189Secured 361,116,899Real Estate 149,524,330Visa 35,999,641Other 19,495,512Total Loans 615,279,571Allow. Ln Losses (5,699,888)Net Loans 609,579,682

Fixed Assets 34,212,583Intangible AssetsOther Assets 12,539,077

Total Assets 867,017,251

LiabilitiesPayables & Misc. 7,800,049Notes Payable -

Member SharesRegular Shares 223,353,610Checking 102,814,217Money Market 186,602,353Certificates 186,932,343IRA Certificates 33,083,865IRA 16,795,102Escrow 745,389Commercial 10,212,001

Total Member Shares 760,538,879

EquityRegular Reserve 8,379,257Accumulated Unrealized Gains & Losseson Available-for-Sale Securities -Undivided Earnings 90,299,067Total Equity 98,678,324

Total Liabilities, Shares & Equity 867,017,251

Statement of Financial Condition | As of December 31, 2016


2016 STATEMENT OF INCOME 9

Statement of Income | As of December 31, 2016

Loan Interest Income 30,259,283Deferred Loan Origination Costs (2,610,401)Investment Interest Income 1,328,571

Total Interest Income 28,977,452

Dividends Paid to Members 3,201,600Interest on Borrowed Funds -Interest on Capital Lease 4,892

Total Interest and Dividend Expense 3,206,492

Net Interest Income (before loan losses) 25,770,960Less Provision for Loan Loss Expense 2,787,952

Net Interest Income (after loan losses) 22,983,008

Fee Income 7,424,499Other Income 917,885

Total Non-Interest Income 8,342,383

Compensation & Benefits 11,058,235Training, Travel, Conference & Dues 316,998Office Occupancy & Operations 9,896,089Education and Promotion 859,194Loan Servicing 1,196,371Professional Services 557,868Supervision & Examination 79,479Miscellaneous Expense 8,751

Total Non-Interest Expense 23,972,983

Non-Operating Gains & Losses 71,658

Net Income 7,424,066

Note: The financial statements are un-audited. The 2016 audit report and disclosure notes are available upon request.


2016 CHARTS AND GRAPHS 10

2016 Charts and Graphs


2016 represented the enterprise’s sixty-first year in business with eighteen

Northern California branches open for business from Redding to South Lake Tahoe. Also in 2016, the credit union celebrated its one year anniversary in its new fifty-

two thousand square foot state of the art headquarters building.

The company employs nearly two hundred Northern California employees who

work diligently to provide the best banking products and services for you, our Member-Customer-Owners.

As a highly respected corporate citizen in Northern California and within the nation’s credit union industry, we are getting very close to achieving our one billion dollars in assets goal. The credit union’s Board of Directors and Executive Management TEAM has targeted this level of assets to continue BUILDING ON OUR SUCCESS, so the credit union will have the scale necessary to always be able to offer the best in financial products and services, safety and soundness.

2016 saw the credit union further leverage its past success by building two state of the art branches (Grass Valley & Placerville), and we entered another community by opening a new branch in Anderson. We are excited that Building on our Success means expanding options for Sierra Central’s sixty two thousand members, as we continue to enhance facilities, products and technology to continually make it easier for them to achieve their financial goals.

As Board Chairman Bartoli cites in his message to the members, seventeen years ago Sierra Central’s assets stood at only two hundred and forty two million dollars. By the end of 2016 assets stood at a robust eight hundred and sixty seven million dollars, which demonstrates the credit union’s success at building relationships with members.

2016 saw Business Lending and Real Estate Lending successfully expanded, and in late 2017 with the introduction of Investment Services the credit union is poised to provide even greater value to its members and the communities served in Northern California.

Sustainability and commercial success are two core values that define Sierra Central Credit Union. From its humble beginnings in 1955, when fifteen airmen deposited one-hundred dollars each to establish the institution, to where Sierra Central Credit Union stands today quickly closing in on one billion dollars in assets.

In 2016 Sierra Central was a major force in driving significant economic activity funding $251.2 MILLION dollars in loans, bringing its total loans funded since 2000 to over $2.6 BILLION dollars, all funded locally. Sierra Central Credit Union is consistently ranked as one of the top consumer lenders in Northern California. In 2016, the credit union established record balances of Home Loans, Auto Loans, Lines of Credit, Business Loans, and VISA lines of credit.

Again, as you can see, the direct economic impacts from Sierra Central’s activities in Northern California were significant with $251.2 million in loans funded, and the money staying local to provide a significant multiplier effect, which creates and sustains jobs and economic activity throughout our geographic footprint.

In 2016, once again the credit union received the highest ratings possible for safety and soundness from the NCUA (federal) and DBO (state) regulators. In addition, once again Sierra Central received an independent FIVE STAR (highest possible) rating for financial performance and safety from BAUER, and was ranked in the top 200 credit unions nationwide (out of 6,300) by depositaccounts.com for safety and soundness, and financial performance (one of only 66 credit unions to repeat back to back years in top 200).

SCCU Officials and Employees once again were difference makers on local community boards and in working with key organizations driving economic activity.

Sierra Central’s Annual College Scholarship program provided $23,000 in annual scholarships to help fund local students’ educational expenses. We are very proud to make this commitment each and every year including in 2016.

In addition, Sierra Central Credit Union has supported significant causes locally with thousands of dollars of sponsorships. No other bank or credit union sponsors more community events and worthwhile projects from

Chief Executive Officer 2016 Annual Message | John Cassidy

BUILDING ON OUR SUCCESS!

CHIEF EXECUTIVE OFFICER 2016 ANNUAL MESSAGE 11

(cont.)


Redding to South Lake Tahoe in our geographic footprint to improve the quality of life for all who live and work here.

Looking ahead to keep Building on our Success in serving you, everyone at Sierra Central Credit Union sees an incredibly bright future for Northern California and our members. Our past success over the last sixty one years should tell you that we are here to stay in Northern California, and for many more years to come. Our structure affords us the opportunity to keep Building on our Success and to continually reinvest in the organization to give you better options, facilities and technology. We have become one of Northern California’s premier financial institutions as a result of your patronage and loyalty. The Sierra Central brand has grown significantly and it will continue to expand in the years ahead.

Our branch teams and call center team takes great pride in providing you and your family members with great experiences and service as you navigate your daily lives to meet your financial needs and goals. As you will see in the 2016 Annual Report, the financial performance of the credit union was its third best of all time. The thoughtful leadership and stewardship of your Board of Directors is a tremendous benefit for everyone associated with Sierra Central. I want to thank Board Chair Ron Bartoli for his leadership and support. In addition, our Supervisory Audit

Committee was very pro-active in ensuring the safety and soundness of the credit union was at its highest levels possible. I want to thank Supervisory Committee Chair Dale Hall for his continued support and leadership.

I also wanted to thank your credit union’s leadership team for their undying passion, critical thinking, sense of urgency, effective communication and willingness to lead in order to allow us to keep Building on our Success to make the future even brighter for our members. No other Northern California financial institution has the combined experience of this group, including our CIO Steve Henderson, who I want to thank for his over thirty years of service to Sierra Central’s members. In addition, during 2016, the credit union’s digital presence was expanded to unprecedented levels and you will be able to do even more online with SCCU in the years ahead. I want to thank Marketing VP Barbara Menefee for getting the credit union’s digital reach at record levels during the year.

Finally, I want to thank you, our sixty two thousand members, for your continued use of Sierra Central for your loan, deposit and electronic banking needs. You keep opening more new accounts, while taking advantage of the great service provided by SCCU employees, which allows us to keep Building on your Success!

Chief Executive Officer 2016 Annual Message | John Cassidy (cont.)

CHIEF EXECUTIVE OFFICER 2016 ANNUAL MESSAGE12

CCUL Children’s Miracle Network Donation

New Branch Construction

PLACERVILLE


NEW BRANCH CONSTRUCTION 13

ANDERSON

GRASS VALLEY


2016 SIERRA CENTRAL SCHOLARSHIP WINNERS14

2016 Sierra Central Scholarship Winners

Alexandria Barney – 2015 & 2016 Scholarship recipient - Currently attends California State University, Chico, majoring in Biology.

Brooke Barney – 2014, 2015 & 2016 Scholarship recipient - Currently attends University of Arizona, majoring in Nursing.

Sabrina Cantu – Graduating Senior from West Valley High School. Plans on attending Feather River Jr. College majoring in Ag Business & Equine Science

Amy Davis – Graduating Senior from Union Mine High School . Plans on attending Folsom Lake Community College majoring in Music education

Jaclyn DeWitt – 2013, 2014, 2015 & 2016 Scholarship recipient - Currently attending UC Davis majoring in Psychology with emphasis in Mathematics

Samantha Dunn – Graduating senior from Red Bluff High School. Plans on attending UC Davis majoring in Medicine

Emily Gallagher – 2014, 2015 & 2016 Scholarship recipient – Currently attending UC Irvine majoring in Nursing Science. Parents are accepting on her behalf

Emily Handy – Graduating Senior from Shasta Charter Academy. Plans on attending Brigham Young University majoring in Communications Disorders.

Sara Jorde – Graduating Senior from Shasta High School. Plans on attending University of California Los Angeles majoring in Biology.

Maxwell Klaiber – Graduating Senior from Anderson Union High School. Plans on attending Azusa Pacific University majoring in Business Communications.

Hannah Knowles – 2013 & 2016 Scholarship recipient – Currently attends Simpson University majoring in Organizational Communication

Sophia Leiker – 2014, 2015 & 2016 Scholarship recipient – Currently attending UC Berkeley majoring in Environmental Science w/Physics concentration.

Olivia Leiker – Graduating senior from Chico High School. Plans on attending UC Berkeley majoring in Biological Sciences.

Anna Lewis – Graduating senior from Central Valley High School. Plans on attending United States Maritime Academy majoring in Logistics and Intermodal Transportation

Grace Magni –2014, 2015 & 2016 Scholarship Recipient – Currently attending Cal Poly – San Luis Obispo majoring in Environmental Management and Protection

James McDaniel – 2014, 2015 & 2016 Scholarship Recipient – Currently attends University of Southern California majoring in Broadcast and Digital Journalism

Cameron Mosbacher – Currently attends Cal Poly, majoring in Biomedical Engineering - Parents are accepting on his behalf

Marleigh Ostrom – 2012 & 2016 Scholarship recipient – Currently attending Cal Poly majoring in Agriculture Education.

Chelya Reyna – Graduating Senior from Nevada Union High School. Plans on attending Sierra College and majoring in Communication Studies.

Ishaan Reyna – 2014, 2015 & 2016 Scholarship recipient - Currently attends Cal State University Northridge majoring in Communication Studies

Daniel Spring – 2015 & 2016 Scholarship Recipient - Currently attends Butte Community College, plans on attending California State University Chico or Baylor University, Texas majoring in Criminal Justice

Erica Stevenson – 2015 & 2016 Scholarship Recipient - Currently attending Butte Community College, majoring in Ag-Business

Lois Winn – Graduating Senior from Wheatland High School. Plans on attending Spelman College majoring in Psychology.

2016 Years of Service Employees


2016 YEARS OF SERVICE EMPLOYEES 15

Employees at 16 plus yearsJohn Cassidy – Chief Executive Officer - 16 yearsStephanie Dickinson – Senior Vice-President / Chief Financial Officer - 16 yearsBarbara Menefee – Vice-President Marketing - 16 yearsTerri Garcia – Vice-President Audit & Compliance - 16 yearsCathy Quinones – Branch Vice-President Chico - 16 yearsGrace Marran – Utility Department - 16 yearsCaren Svedja – Branch Vice-President Red Bluff - 16 yearsBonnie Seigler – Utility Department - 16 yearsKeri Budds – Electronic Services Department - 16 yearsSu Martinez – Accounting Department - 17 yearsJanice Martin – Vice-President Lending - 17 yearsRon Sweeney – President/Chief Operating Officer - 17 yearsRuth Johnson – Underwriter Lending Department - 18 years Alex Roldan – Leben – Network Manager ISIT Department - 18 yearsGeorgia Roberts – Operation Specialist - 19 yearsHeather Paxton – Business Development Manager Indirect Lending - 19 yearsCorinne Davis – Vice-President-Human Resources/ Training - 19 yearsMeghan Roberts – Internal Auditor - 19 yearsColleen Gibson – Utility Department - 19 yearsRobin Margelowsky – Branch Operations Manager Red Bluff Branch - 20 yearsJanice Williamson – Lending Department - 20 yearsDesiree Manes – Senior Vice-President Retail Banking - 22 years Rhonda Eliason – Facilities Department - 29 yearsSteve Henderson – Senior Vice-President/Chief Information Officer - 30 years

Employees at 15 years Pam Sweeney – Vice-President Public RelationsStephanie Terrell – BK/Legal Specialist

Employees 14 yearsEvie Perry – Call Center Supervisor Bob White – Construction/Facilities ManagerSara Hodge – Accounting ManagerDavid Bumpus – Business Development Manager Indirect LendingSusie Barajas – Call Center RepresentativeAshley Kern – Branch Vice-President Yuba City Yvette Carino – Data Analyst

Employees 13 years Robert Gluyas – Branch Vice-President Redding West

Employees 12 years Rocio Bagley – Call Center Elfi Blurton – Branch Vice-President ReddingMichelle Frarck – Accounting SpecialistDaniel Roe – Branch Vice-President Marysville

Employees 11 yearsJulie Buzzard – Yuba City BranchRoxanne Gilbert – Real Estate Rebecca Smith – Redding BranchJessica Bagley – Call CenterChera Atwal – Call CenterMark Tyler – ISITKim Gagner – Electronic ServicesScott Mikesell – ISIT

Employees at 10 years Miranda Sandy – HR/Training Specialist HR/TrainingToni Belser – BVP OrovilleShari Kue – Loan Processor LendingKaren Levi – Asset Recovery Specialist Asset RecoveryJaime Luna – Loan Processor** LendingKong Thao – Underwriter Lending


Congratulations on reaching a service milestone with Sierra Central Credit Union. Thanks a lot to you and your hard work, we are leaders within our industry!

At your career milestone of 30 years, we honor you for the part you play in maintaining our performance standards and keeping with our commitment to excellence in providing products and services to our Credit Union Members. We know that achievement and success aren’t by accident and only come after hours of hard work, commitment, and diligence. We applaud your performance and honor your achievements!

Steve was hired July 2, 1986 for the position of Hardware Manager. In March of 1988 he was promoted to Assistant System Manager. In April 1998 he was promoted to PC/Network Administrator, in July 2000 he was promoted to Vice-President Management Information Systems. In July 2003 he was then promoted to Senior Vice-President of ISIT and in July 2009 he was promoted to and currently holds the position of Chief Information Officer/Senior Vice-President ISIT and Facilities.

Steve Henderson | 30 Years of Service in 2016

STEVE HENDERSON | 30 YEARS OF SERVICE 16

Steve throughout the years…..

E X E C U T I V E M A N A G E M E N T T E A M

JOHN CASSIDYCHIEF EXECUTIVE

OFFICER

RON SWEENEYPRESIDENT

CHIEF OPERATING OFFICER

STEPHANIE DICKINSONSENIOR VICE PRESIDENT

CHIEF FINANCIAL OFFICER

DAVID KELSAYSENIOR VICE PRESIDENT CHIEF LENDING OFFICER

STEVE HENDERSONSENIOR VICE PRESIDENT

CHIEF INFORMATION OFFICER

DESIREE MANESSENIOR VICE PRESIDENT

RETAIL BANKING

B O A R D O F D I R E C T O R S

RON BARTOLICHAIRMAN OF THE

BOARD

BALDEV JOHALVICE-CHAIRMANOF THE BOARD

DIANE MYERSSECRETARY/TREASURER

OF THE BOARD

TIB BELZABOARD MEMBER

JIM KENNEDYBOARD MEMBER

DAVID MACKOWIAKBOARD MEMBER

DAN MIERZWABOARD MEMBER

S U P E R V I S O R Y C O M M I T T E E

DEVIN BARBERSUPERVISORY COMMITTEE

SECRETARY

DALE HALLSUPERVISORY COMMITTEE

CHAIRMAN

MIKE HUDSONSUPERVISORY COMMITTEE

VICE-CHAIRMAN


Volunteers | Senior Management

VOLUNTEERS | SENIOR MANAGEMENT 17

1-800-222-SCCU | sierracentral.com

Auburn2558 Bell Road

Auburn, CA 95603M-Th: 9am - 5:30pm

Friday: 9am-6pm

Grass Valley1000 Plaza Drive

Grass Valley, CA 95945M-Th: 9am - 5:30pm

Friday: 9am-6pm

Placerville225 Placerville DrivePlacerville, CA 95667M-Th: 9am - 5:30pm

Friday: 9am-6pm

Roseville306 N. Sunrise Avenue

Roseville, CA 95661M-Th: 9am - 5:30pm

Friday: 9am-6pm

Anderson5026 Rhonda Road

Anderson CA 96007M-Th: 9am - 5:30pm

Friday: 9am-6pm

Marysville422 4th Street

Marysville, CA 95901M-Th: 9am - 5:30pm

Friday: 9am-6pm

Red Bluff501 Adobe Road

Red Bluff, CA 96080M-Th: 9am - 5:30pm

Friday: 9am-6pm

Willows1030 W. Wood StreetWillows, CA 95988

M-Th: 9am - 5:30pmFriday: 9am-6pm

Susanville2920 Riverside Drive, Ste 101

Susanville, CA 96130M-Th: 9am - 5:30pm

Friday: 9am-6pm

Beale AFB17602 25th Street

Beale AFB, CA 95903M-Th: 9am - 5:00pm

Friday: 9am-6pm

Oroville1036 Oro Dam Blvd.Oroville, CA 95965


Redding2867 Bechelli LaneRedding, CA 96002M-Th: 9am - 5:30pm

Friday: 9am-6pm

Yuba City1351 Harter ParkwayYuba City, CA 95993M-Th: 9am - 5:30pm

Friday: 9am-6pm

South Lake Tahoe3668 Lake Tahoe Blvd., Suite JSouth Lake Tahoe, CA 96150


Chico352 E. 1st StreetChico, CA 95928


Paradise5175 Skyway

Paradise, CA 95969M-Th: 9am - 5:30pm

Friday: 9am-6pm

Redding Downtown1255 Yuba Street

Redding, CA 96001M-Th: 9am - 5:30pm

Friday: 9am-6pm

Yuba City (South)520 Bogue Road

Yuba City, CA 95991M-Th: 9am - 5:30pm

Friday: 9am-6pm

Sierra Central Credit Union 2016 Annual Report€¦ · Sierra Central Credit Union 2016 Annual...

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