CALL TO ORDER
Chair Schaut called the monthly meeting of the Board of Directors of
Health Care Credit Union to order at 5:08 p.m.
ROLL CALL
Directors Present: John Schaut Diane Ludwig
Bob Mast William VanPortfleet
Sue Mammina Doug LaVerdiere
Wilden VanderPloeg Phil Borgerding
Kristen Lucksted
Staff Present: Barb Fischer Bill Schirmer
Sandy Jelinski Sue Peterson
Doug DeGroot
SECRETARY’S REPORT
MOVED, SECONDED AND CARRIED TO APPROVE THE MINUTES OF THE BOARD OF
DIRECTORS MEETING HELD ON MARCH 10, 1999 AS DISTRIBUTED.
COMMUNICATIONS
Mr. DeGroot distributed a letter of congratulations from Steelcase Credit Union
In addition, Mr. DeGroot distributed for review the Credit Union Conference Schedule
and the notification of the MCUL Annual Meeting
The Financial Performance Report was distributed for review. Mr.
DeGroot stated that the credit union ranked in the 88% percentile after funding the loan
loss account. He pointed out that at the end of 1998 the credit union's total assets were
$45 million, which represents a 26.3% change.
UPON MOTION by Borgerding, supported by VanderPloeg, it was
unanimously RESOLVED, That the Financial Performance Report, be approved as
presented.
TECHNOLOGY & DELIVERY
Y2K - Distributed Y2K update from Tal Novak for review.
Mr. DeGroot informed the Board that three credit union personal will be
going to Chicago to work on the final proxy testing of 2 accounts. This information has
already been tested in six other locations without any problem.
Mr. DeGroot also stated that the NCUA completed a study of WESCO's
compliance for Y2K and they were comfortable with their findings.
In conclusion Mr. DeGroot advised the Board that we will be
communicating to the membership via our Communiqu� that we feel confident the credit
union is ready for Y2K and the year-end.
FINANCIAL REPORT – MARCH 1999 (Bill Schirmer)
New/Closed Membership Report:
Beginning Membership 13,267
New Savings Accounts 211 - Totaling $228,266
Closed Accounts 62
Total Membership 13,416
Financial Statements:
Assets: $45,359,745
Loans: $42,158,842
Savings: $39,758,965
Operating Income $ 381,014
Gross Margin $ 268,653
Net Income: $ 47,135
Growth
Asset: 17.7%
Loan: 24.3%
Equity: 14.4%
Loan/Shares Ratio: 106.0%
Return on Assets (ROA): 1.43%
Capital/Assets 11.6%
Loan totals increased $8.2 million during March with the majority of
loans being Real Estate Loans
17 month CD promotion totaled $350,000
Interest from loan equal to December 1998
Reviewed Quarterly Business Plan
Loan to Share Ratio - 20% of goal
Membership - 24% of goal
Delinquency figures on target
Loan Report: (Sandy Jelinski)
$2.6 million total loans in March
Home Equity loans totaled $44,500
Auto loans totaled $1,180,155
Real Estate loans totaled $798,278
Loan Delinquency/Charge-Off:
Delinquency: .83%
Six (6) new bankruptcies $ 41,907.25
Year-to-date bankruptcies total: $ 63,451.72
One (1) new repos: $ 11,757.74
Actual charge-off for March: $ 31,507.37
Recommended for charge-off: Fifteen (15) accounts for $30,303.31
Distributed Quarterly Analysis for Provision for Loan Loss Account:
Anticipated Future Losses: $ 63,797
Minimum Balance Required: $286,901
Actual Balance in Account: $396,440
Net Difference: $109,539
$5,000 increase made to account in the 1999 Budget
UPON MOTION by Lucksted, supported by Ludwig, it was unanimously RESOLVED,
That the Financial Statements, New Member Report, Loan Report, Delinquency/Charge-Off
Quarterly Loan Loss Report, and fifteen (15) accounts totaling $30,303.31 be approved for
charge-off.
MARKETING
Distributed monthly graph for checking & membership on M.O.R.E. accounts
Distributed monthly report on M.O.R.E. accounts
Distributed New Accounts by Age Report
UNFINISHED BUSINESS
Blodgett Merger: Mr. DeGroot informed the Board and management staff that he
had a special meeting with Blodgett Credit Union's Board of Directors. At this meeting the
Board voted to withdraw their motion to merge with Grand Rapids Teachers Credit Union in
order to a merger with Health Care Credit Union.
Furthermore, Blodett's Board of Directors requested to have Health Care Credit Union
expand their Board of Director's seats by two. This would allow Blodgett to continue to
have Board representation. These two positions would then have to be re-elected when their
existing terms expire. In addition, Blodgett would like to appoint an ex-official to sit
on the Board without voting privileges for 180 days .
UPON MOTION by Ludwig, supported by Mammina, it was unanimously RESOLVED,
That the merger with Blodgett Credit Union proceed.
A recommendation was made to have Mr. DeGroot authorized to sign any merger
documentation that requires a signature for the Credit Union.
UPON MOTION by VanderPloeg, supported by Ludwig, it was unanimously
RESOLVED, That the Doug DeGroot be authorized to sign on behalf of the Credit
Union.
NEW BUSINESS
Credit Union for Kids: Mr. DeGroot reported on the Children's
Miracle Network campaign. He stated that the credit union staff was busy working on
internal projects to raise money for this cause and the total donations to date were
around $5,000. Mr. DeGroot then made a recommendation to the Board to have them match this
contribution with $.25 on the dollar, not to exceed $1,250.
UPON MOTION by VanderPloeg, supported by Mammina, it was
unanimously RESOLVED, That the credit union make a contribution to the Children's
Miracle Network as presented above.
CU Foundation: Mr. DeGroot made a recommendation to the Board to
have the $1,390 that is spent annually on donation requests transferred directly to the
CUFG Foundation. All funds can then be processed directly through the Foundation.
UPON MOTION by LaVerdiere, supported by Lucksted, it was
unanimously RESOLVED, That $1,390 be transferred to the CUFG Foundation.
ADMINISTRATIVE UPDATE
Audit by Doeren Mayhew
Audit by Doeren Mayhew distributed. Received an unqualified opinion stating the credit
union’s operation and cash flows for the year conformed to generally accepted
accounting principles.
Recommendation was made to accept audit as presented.
UPON MOTION by Lucksted, supported by Borgerding, it was unanimously RESOLVED,
That the audit prepared by Doeren Mayhew be approved as presented.
CHAIR REPORT
There being no further business, the meeting was adjourned at 6:24p.m.
Next meeting will be on Wednesday, May 26, 1999, at the Elks.
Respectfully submitted,
________________________________
Wilden VanderPloeg, Secretary
________________________________
John Schaut, Chair
