2017 ANNUAL MEETING EAST BRANCH 3400 S Sycamore Ave Lobby: 9AM-5PM M-F Drive Up: 7:30AM-5:30PM M-F Sat. Lobby & Drive Up: 9AM-12PM NORTH BRANCH 901 N West Ave Lobby: 9AM-5PM M-F Drive Up: 7:30AM-5:30PM M-F SOUTHWEST BRANCH 5010 S Solberg Ave Lobby: 9AM-5PM M-F Drive Up: 7:30AM-5:30PM M-F Sat. Lobby & Drive Up: 9AM-12PM MEMBER SERVICE CENTER 8AM-8PM M-F, 9AM-12PM Sat Voice: 605.367.7070 Text/Video: 605.799.6640 Email: [email protected]Live chat online during normal business hours. www.siouxempirefcu.org PEOPLE HELPING PEOPLE. Adam Kleinsasser, Member Service Officer Alayna Johnson, Vice President Ambyr Raymond, Member Service Representative Barb Amen, Member Service Representative Becky Hernandez, Member Service Representative Beth Meyer, Branch Manager Bill Trudeau, IT Systems Manager Brenna Randolph, Member Service Representative Brittany Petersen, Branch Manager Brittney Gunn, MSC Agent Cathy Dannen, Member Service Officer III Debra Dixon, Mortgage Loan Officer Ellen Mayo, Member Service Representative II Emily Fossum, Member Service Representative Jacob Hawk, Member Service Officer Jamie Westendorf, Accounting Specialist Jeanette Emerick, MSC Supervisor Jeff Jorgensen, President Jodi Tiede, Member Service Representative Karen Seibert, Branch Manager Kathy Sebesta, MSC Agent Kiley Noram, MSC Agent Leyla Osman, Member Service Representative Liz Albers, Member Service Representative II Michael Van Driesen, IT Systems Specialist Patrick Gross, Accounting Supervisor Patty Kase, Human Resources Manager Patty Kleinsasser, Member Service Representative II Rollie Steck, Accounting Specialist Ryan Yorke, Member Service Representative III Sandra Sieg, Project and Risk Management Director Scott Christie, Member Service Officer II Sidney Frey, Marketing Specialist Tangee Kokenge, Loan Recovery Specialist Teena Frederick, Receptionist Tiffany Dossett, Branch Services Manager OUR MISSION is to empower our membership to make financial decisions and achieve their dreams. The seventy-eighth Annual Membership Meeting of the Sioux Empire Federal Credit Union was held on June 9, 2016 at the Ramkota Hotel & Convention Center in Sioux Falls, SD. After the plated dinner and social time, Breck Miller, the Community Relations Coordinator with the LSS Center for Financial Resources, gave a presentation on Consumer Fraud Awareness. CALL TO ORDER: Chairperson Giegling called the meeting to order at 7:15 PM. MOMENT OF SILENCE: Chairperson Giegling asked for a moment of silence to honor all the members and Credit Union leaders that have passed away. MINUTES: The minutes of the seventy-seventh Annual Membership Meeting were approved as printed on a motion by Crystal Bach, seconded by Jackie Obeslo. Motion carried with no dissenting votes. REPORTS: Chairperson Giegling introduced the printed reports and encouraged everyone to review them. He then reviewed his report and highlighted his comments. President Jorgensen recognized the work the Credit Union employ- ees do and stated Member Service Center (MSC) Supervi- sor Beth Meyer was working so her employees could attend the Annual Membership Meeting. He introduced the MSC employees present so members could put a face to a voice when they called the MSC. President Jorgensen stated he anticipates the MSC to continue to grow in the services it provides to our members. He also stated the annual report was available on Facebook and acknowledged Market- ing Specialist Sidney Frey and her efforts to stream the meeting. Supervisory Committee Chairman Buriak stated the Committee had retained Eide Bailly to perform the necessary audit and the committee is pleased with how the Credit Union is run and how sound it is. NOMINATING COMMITTEE & ELECTION RESULTS: Committee Chairperson Markstrom gave the Nominat- ing Committee’s Report on behalf of the committee. He reported that two board members had resigned mid- term, one is choosing not to run for another term and one is rerunning. The Board had appointed Connie Bryne- Olson to Bill Daugherty’s vacancy and Paul Buriak to Bob Himrich’s vacancy. Incumbent Sanner chose to not rerun, and the Committee submitted Robin Dykstra to her vacancy. Incumbent Bechtold has chosen to rerun. As no other candidates petitioned for placement on the ballot, and no nominations from the floor are accepted, all four (4) candidates are thereby elected by unanimous ballot. A motion was made to accept all submitted reports, includ- ing the Nominating Committee & the election results, by Bill Daugherty, seconded by Crystal Bach. Motion carried with no dissenting votes. UNFINISHED BUSINESS: None NEW BUSINESS: Chairperson Giegling asked for any input, feedback, or new business from those in attendance. Two members inquired about the status of the VA Branch’s recent closure and the possibility of another physical loca- tion nearby or an enhanced ATM on the campus. Giegling stated the Board of Directors, and the Building Committee, are researching any prudent options. Membership demo- graphics and branch utilization statistics are being reviewed to make an educated decision about future locations. Jorgensen requested that if any member as insight into locations of interest to please pass them along. AWARDS: Chairperson Giegling requested the following Board of Directors to come forward and be recognized for their years of service: Lanette Sanner – 3 years Bill Daugherty – 25 years Bob Himrich – 33 years After receiving their award, each retired Volunteer was given an opportunity to address the membership if they desired. President Jorgensen requested the following staff members to come forward and be recognized for their years of service: 3 years – Adam Kleinsasser, Ellen Mayo, Joan Rensch, Patri- cia Kleinsasser 10 years – Beth Meyer (Beth was not present as mentioned above, but her award will be hand-delivered) ADJOURNMENT: With no further business, Chairperson Giegling adjourned the business meeting at 7:45 PM. DOOR PRIZES: Ryan Karst of Dakota Financial Services, Inc. and Dave Bednar of CU Mortgage Direct, LLC, along with several staff members, held drawings for several door prizes! Signed, Ken Giegling, Chairperson Linda Hoeck, Secretary Jeff Jorgensen, Recording Secretary MEETING MINUTES
PEOPLE HELPING PEOPLE.Adam Kleinsasser, Member Service OfficerAlayna Johnson, Vice President Ambyr Raymond, Member Service RepresentativeBarb Amen, Member Service RepresentativeBecky Hernandez, Member Service RepresentativeBeth Meyer, Branch ManagerBill Trudeau, IT Systems ManagerBrenna Randolph, Member Service RepresentativeBrittany Petersen, Branch ManagerBrittney Gunn, MSC AgentCathy Dannen, Member Service Officer IIIDebra Dixon, Mortgage Loan OfficerEllen Mayo, Member Service Representative IIEmily Fossum, Member Service RepresentativeJacob Hawk, Member Service OfficerJamie Westendorf, Accounting Specialist Jeanette Emerick, MSC SupervisorJeff Jorgensen, PresidentJodi Tiede, Member Service RepresentativeKaren Seibert, Branch ManagerKathy Sebesta, MSC AgentKiley Noram, MSC AgentLeyla Osman, Member Service RepresentativeLiz Albers, Member Service Representative IIMichael Van Driesen, IT Systems SpecialistPatrick Gross, Accounting SupervisorPatty Kase, Human Resources ManagerPatty Kleinsasser, Member Service Representative IIRollie Steck, Accounting SpecialistRyan Yorke, Member Service Representative IIISandra Sieg, Project and Risk Management DirectorScott Christie, Member Service Officer IISidney Frey, Marketing SpecialistTangee Kokenge, Loan Recovery SpecialistTeena Frederick, ReceptionistTiffany Dossett, Branch Services Manager
OUR MISSION is to empower our membership to make financial decisions and achieve their dreams.
The seventy-eighth Annual Membership Meeting of the Sioux Empire Federal Credit Union was held on June 9, 2016 at the Ramkota Hotel & Convention Center in Sioux Falls, SD. After the plated dinner and social time, Breck Miller, the Community Relations Coordinator with the LSS Center for Financial Resources, gave a presentation on Consumer Fraud Awareness.
CALL TO ORDER: Chairperson Giegling called the meeting to order at 7:15 PM.
MOMENT OF SILENCE: Chairperson Giegling asked for a moment of silence to honor all the members and Credit Union leaders that have passed away.
MINUTES: The minutes of the seventy-seventh Annual Membership Meeting were approved as printed on a motion by Crystal Bach, seconded by Jackie Obeslo. Motion carried with no dissenting votes.
REPORTS: Chairperson Giegling introduced the printed reports and encouraged everyone to review them. He then reviewed his report and highlighted his comments. President Jorgensen recognized the work the Credit Union employ-ees do and stated Member Service Center (MSC) Supervi-sor Beth Meyer was working so her employees could attend the Annual Membership Meeting. He introduced the MSC employees present so members could put a face to a voice when they called the MSC. President Jorgensen stated he anticipates the MSC to continue to grow in the services it provides to our members. He also stated the annual report was available on Facebook and acknowledged Market-ing Specialist Sidney Frey and her efforts to stream the meeting. Supervisory Committee Chairman Buriak stated the Committee had retained Eide Bailly to perform the necessary audit and the committee is pleased with how the Credit Union is run and how sound it is.
NOMINATING COMMITTEE & ELECTION RESULTS: Committee Chairperson Markstrom gave the Nominat-ing Committee’s Report on behalf of the committee. He reported that two board members had resigned mid-term, one is choosing not to run for another term and one is rerunning. The Board had appointed Connie Bryne-Olson to Bill Daugherty’s vacancy and Paul Buriak to Bob Himrich’s vacancy. Incumbent Sanner chose to not rerun, and the Committee submitted Robin Dykstra to her vacancy. Incumbent Bechtold has chosen to rerun. As no other candidates petitioned for placement on the ballot, and no nominations from the floor are accepted, all four (4) candidates are thereby elected by unanimous ballot. A motion was made to accept all submitted reports, includ-ing the Nominating Committee & the election results, by Bill Daugherty, seconded by Crystal Bach. Motion carried with no dissenting votes.
UNFINISHED BUSINESS: None
NEW BUSINESS: Chairperson Giegling asked for any input, feedback, or new business from those in attendance. Two members inquired about the status of the VA Branch’s recent closure and the possibility of another physical loca-tion nearby or an enhanced ATM on the campus. Giegling stated the Board of Directors, and the Building Committee, are researching any prudent options. Membership demo-graphics and branch utilization statistics are being reviewed to make an educated decision about future locations. Jorgensen requested that if any member as insight into locations of interest to please pass them along.
AWARDS: Chairperson Giegling requested the following Board of Directors to come forward and be recognized for their years of service: Lanette Sanner – 3 years Bill Daugherty – 25 years Bob Himrich – 33 years After receiving their award, each retired Volunteer was given an opportunity to address the membership if they desired. President Jorgensen requested the following staff members to come forward and be recognized for their years of service: 3 years – Adam Kleinsasser, Ellen Mayo, Joan Rensch, Patri-cia Kleinsasser 10 years – Beth Meyer (Beth was not present as mentioned above, but her award will be hand-delivered)
ADJOURNMENT: With no further business, Chairperson Giegling adjourned the business meeting at 7:45 PM.
DOOR PRIZES: Ryan Karst of Dakota Financial Services, Inc. and Dave Bednar of CU Mortgage Direct, LLC, along with several staff members, held drawings for several door prizes!
Signed, Ken Giegling, Chairperson Linda Hoeck, Secretary Jeff Jorgensen, Recording Secretary
MEETING MINUTES
OUR VISION is to be the financial resource of choice in our community.
3 YEARSKaren Seibert
Branch Manager
3 YEARSRyan Yorke
Member Service Representative III
3 YEARSTeena Frederick
Receptionist
5 YEARSBrittany Petersen
Branch Manager
5 YEARSPatrick Gross
Accounting Supervisor
15 YEARSTiffany Dossett
Branch Services Manager
M E M B E R S H I P : 9 , 7 1 9 t o t a l m e m b e r s
As the Chairperson of this volunteer Board of Directors I get the privilege of trying to reduce to writing a year’s worth of activities and observations. I attempt to convey what I perceive as successes achieved and challenges overcome to our membership now almost 10,000 strong. I try to do this without stealing the thunder of the President’s report, duplicating the information provided to you in the Treasurer’s Report or over stepping my role and delivering redundancy by providing feedback found in the Supervisory Committee Report. Needless to say, it can become a challenge, but I have to admit, it is a privilege I honestly look forward to. Would I say that if we were not fiscally sound and not successful at what we do? Probably not, and if I did, I would probably be placing a “spin” on it, painting a prettier picture than might exist in reality. The fact of the matter is, your Credit Union is in good hands.
We have a full complement of active and engaged Volunteer Board Members, and a professional talented staff that is fully committed to perform their fiscal accountabilities to the best of their ability. The Board has worked diligently with our President in the past year on some restructuring of Senior Leadership and development of a succession plan we can all be comfortable with. In this past year I read a book titled Business Secrets of the Trap-pist Monks by August Turak. In Chapter 5, he addressed a successful Credit Union based in Winston-Salem, North Carolina-Truliant Federal Credit Union-- whose mission is “enhance the quality of life of our members and become their preferred financial institution.” It went on to report that in a poll conducted, the member owners of the Credit Union were asked “if they felt the CU had their best interest at heart.” The result reflected that 95 percent of the members strongly agreed or agreed with that statement. During that same period accord-ing to the author, Forrester Research indicated Bank of America’s customers were asked if “my financial provider does what is best for me, not just its own bottom line.” Only 26 percent agreed. Wells Fargo managed only 31 percent.
My point is, as the Chairperson, I know we will never grow to the size in members or assets of many “for profit” financial institu-tions nor would we want to. I can report to you with all sincerity that the our sole purpose of all our volunteers and great staff, is to serve you, the owners. We continue to look at new services to make access to your financial resources more easily accessible. We continue to improve our technology to ensure the safety of your funds and protect your privacy. We continue to strive to pay you market or above rates on your investments and to keep our loan interest rates as competitive as possible.
Again this year, thank you for being a member owner of the Sioux Empire Federal Credit Union and on behalf of all of the Board of Directors, thank you for allowing us to serve as your Directors. In closing, I hope you will agree with me that when you interact with our member services officers, our managers, and our senior leaders, the SEFCU Team does have your best interest at heart.
CHAIRMAN’S REPORT SUPERVISORY COMMITTEE REPORT STAFF LONGEVITY AWARDSWe are pleased to present to you the 2016 Sioux Empire Federal Credit Union financial statements prepared by Eide Bailly, LLP. The auditors have issued an unqualified Indepen-dent Auditor’s Report on the statements of financial condition and related statements of income, members’ equity and cash flows for the Credit Union as of and for the years then ended December 31, 2015 and 2016.
The Supervisory Committee has reviewed the report, financial statements and notes and is satisfied with its completeness. The Independent Auditor’s Report gives us continued confi-dence that the Credit Union’s operations are sound and that our business is conducted in a proper manner.
The Supervisory Committee employed an external consultant to review the Credit Unions compliance with the requirements of the Bank Secrecy Act (BSA) for the period of December 2015 through December 2016. We are satisfied that management is complying with all aspects of the BSA.
Robin DykstraSupervisory Committee Chairman
STATEMENT OF FINANCIAL CONDITION
(Consolidated & Audited)
TOTAL LIABILITIES & EQUITIES: $99,684,8452015: $97,110,087
TOTAL ASSETS:$99,684,845 2015 $97,110,087
TOTAL EQUITY:$9,835,6962015 $9,180,430
TOTAL LIABILITIES: $89,849,1492015 $87,129,697
B O A R D O F D I R E C T O R SKEN GIEGLING, CHAIRMAN
MIKE MARKSTROM, VICE CHAIRMANLINDA HOECK, SECRETARY/TREASURER
JO ANNE BECHTOLD CONNIE BYRNE-OLSON
PAUL BURIAK IIROBIN DYKSTRA
Sioux Empire Federal Credit Union recognizes our social responsibility is perhaps the largest aspect of being a successful cooperative. Throughout the past year we expanded our culture of caring by serving with and for the following organizations to support our community in a multitude of ways: Adopt-a-Highway The Banquet
Big Brothers Big Sisters Family Visitation Center, Sioux Falls Feeding South Dakota
Junior Achievement
Kiwanis Club of Sioux Falls
Lutheran Social Services
Outdoor Adventure Foundation Sharing Christmas, Center for Hope
Shred Day for Membership Sioux Falls Area Humane Society
United Way VFW, Department of South Dakota
PRESIDENT’S REPORTAnother Credit Union President/CEO recently reminded me that we do not “run” Credit Unions, but that we “build” Credit Unions. So following that theme, what is your Board of Directors and the Management Team “building?”
For the past several years, Board members and I have “Hiked the Hill” in February with thousands of other Credit Union volunteers and professionals to discuss the Credit Union difference with our Congressional delegation. We continually remind them about the ongoing regulatory burdens placed upon the way we interact and serve our members. A renewed spirit of no new regulation has been observed, along with a smattering of rolling back the plethora of hurdles placed in our path since the financial crisis of 2008. This is momentum we want to foster!
Closer to home, we are always in the “building” mode! Together we have built an impressive line-up of CUSOs (Credit Union Service Organizations) to offer enhanced products and services:
•CU Mortgage Direct, LLC – local mortgage originations and servicing with Credit Union partners all over the State •Bases Covered Auditing – our newest CUSO, providing audit
and risk management services to Credit Unions •DFS Insurance, Inc. – independent agents providing home,
auto, health, life and commercial insurance •CU*Answers, Inc – our data processing partner •Xtend, Inc. – an aggregation partner, working closely with
CU*Answers.
In 2016, these five CUSOs contributed approximately $450,000 of net income to our consolidated financials! This Cooperative Business Model works!
Technologically speaking, we are “building” here, too! The concept of an omni-channel experience keeps getting closer; what you can do in the lobby, you can do from your mobile device. This year we added a big piece of the puzzle with $napChek! Using your phone’s camera and our mobile app, you can deposit your check with a couple quick and clear steps. Recently, we starting offering a new member account opening program that makes this process fast and simple, including the ability to fund your account and obtain your ItsMe247 login credentials immediately! Shortly on the heels, you will see e-signatures for almost all our documents, including remote loan signings! Over 45% of our members interact with us via some “online” channel every month, and it continues to grow every year!
Last year I told you about the Member Service Center (MSC) we were building. It has been open for awhile now and the results are fantastic. Even with all the ways you can experience your Credit Union via remote technology, they are fielding an average of over 4,500 calls per month! The “calls”, are not only your basic voice calls, but we are receiving online chats, text messages, and video calls too.
So what do you think, is the Board of Directors and your Manage-ment Team on the right trajectory? Next year we celebrate our 80th anniversary. We have been blessed with great members that foster our growth trajectory – we are excited to not rest in the past but rather dream about our collective futures. By adhering closely to the 7 Cooperative Principles, we will maintain a focused path and celebrate our collective successes.
Thank you for your trust you put in your Board of Directors and your Management Team! It is a Team that is excited about the past 80 years, but ready to fire forward and keep that trajectory going!
Jeff JorgensenPresident
S U P E R V I S O R Y C O M M I T T E EROBIN DYKSTRA, CHAIRMAN
TOFAN ASHRAFBOB HARRISON
TELLY ROLLINGER SYLVIA SMITH
CONCERN FOR COMMUNITY2016 2015
Total Interest Income 2,918,540$ 2,688,462$ Total Interest Expense (153,100)$ (177,039)$
Net Interest Income 2,765,440$ 2,511,423$
Provision for Loan Losses (134,000)$ (106,400)$
Total Non-Interest Income 4,655,398$ 4,481,335$ Total Non-Interest Expense (6,577,287)$ (6,532,882)$
Net Non-Interest Expense (1,921,889)$ (2,051,547)$
Dividends on Non-controlling interest (104,285)$ 0$
