CONTENTS Annual... · Janet Calka, Member Services Representative Austin Rodgers, Management Trainee Diane Dena, Member Services Representative Somerset Community Office David Saylor,

CONTENTS

2018 USSCO Annual Report 01

VisionUSSCO Federal Credit Union, a growing community

based financial institution, strives to be our members’ primary financial partner.

MissionBuild lasting relationships through high quality, competitive financial solutions and friendly member service every time.

Core ValuesIntegrity n Service n Family

Accountable n Adaptable

LETTER FROM THE PRESIDENT AND CEO: 02

USSCO SENIOR LEADERSHIP: 04

FINANCIAL CONDITION/INCOME: 06

CHARTS/GRAPHS: 08

USSCO TEAM: 09

USSCO GIVES BACK: 11

02 2018 USSCO Annual Report

REPORT FROM THE BOARD PRESIDENT AND CEO

Dear Fellow Member, We are very pleased to provide you with this year’s recap highlighting a major milestone event in the history of USSCO Johnstown Federal Credit Union.

We successfully completed the first merger in the history of the credit union!

This merger joined JSTC Employees FCU with USSCO FCU. It took diligent effort over the last 16 months to ensure that the JSTC members and employees made a smooth transition into our USSCO family.

It wasn’t always easy—but with good planning, dedicated Boards of Directors and staffs, and a committed group of members to see it through—we made it. Our merger theme, “Stronger Together,” says it all, serving as the successful backdrop of our efforts.

Together we are now the largest credit union in the area.

USSCO has several retirements to announce; we want to thank both for their outstanding efforts and service and wish them the very best as they enter into a new chapter of their lives. They will be missed.

n Renee Worrell, a longtime employee and CEO of JSTC Employees FCU. Renee provided great leadership and guidance as we brought the two organizations together in 2018 and has helped tirelessly through the conversion and beyond.

n Sue Goch, Accounting Manager, retired in April. Sue brought major value and expertise during her 25 years with us. Her project management skills, outstanding communication ability--both verbal and written, exacting attention to detail, and total commitment to giving our members the highest level of product service and satisfaction were substantial.

n Successful completion of our first merger.n Almost flawless integration of JSTC’s system and products into into our Symitar platform. n Earned Best Credit Union in Tribune Democrat’s “Simply the Best” 2018 voting.

KEY ACCOMPLISHMENTS

FAREWELLS


These financial highlights emphasize and reinforce our Stronger Together theme. Today USSCO is a stronger, more secure organization, better able to compete now and in the future.Year End Financial Highlights - [Unaudited] Dollars in Thousands

dfgsdgssgsdfgsdfgsdfg 12/31/2017 12/31/2018 % GrowthMembers 12,476 13,987 +12.1%Loans $61,177 $69,380 +12.4%Deposits/Shares $91,053 $106,107 +16.5%Capital $10,271 $14,395 +40.1%Net Income $240 $1,730 +721%

n The percentage of growth in financial highlights shows we are moving in the right direction: a growing, relevant community financial institution that truly cares about our members.

n We continue to focus on strengthening our infrastructure through 2019 with the addition of new key employees and enhancing internal operations.

More about our ongoing improvements and operational changes to come.

We would like to say a special thank you to our dedicated Board of Directors, our management team, and employees for another very successful year.

Thank you to our members for your continued support, business, and choosing USSCO FCU as your primary financial institution. We are very optimistic for 2019 and have started the year strong!

Sincerely,

Kenneth A. Mesko Todd L. Cover

FINANCIAL HIGHLIGHTS

IN THE FUTURE

CONCLUSION

President, Board of Directors Chief Executive Officer

Bonnie BouchMember

Gerald SmithSecretary/Treasurer

Brian KeiperVice President

Ken MeskoPresident

Mark SotoskyMember

Peggy MillerMember

Richard BoxlerMember

04 2015 USSCO Annual Report 04 2018 USSCO Annual Report

USSCO SENIOR LEADERSHIP

Board of Directors

Scott MorrisMember

Rick WilsonMember

Jeff BrlanskyCLO

C. Joseph DonaCOO

Todd CoverCEO


USSCO SENIOR LEADERSHIP

Nominating CommitteeBeverly Rager, Chair

Robert M. BantlyJoseph Cassanese

Supervisory CommitteePeggy Miller, Chair

Robert Hancock, MemberKevin Ziance, Member

SENIOR EXECUTIVE TEAM


STATEMENTS OF FINANCIAL CONDITION

Unaudited 2018 Financials / Audited 2018 Financial Statements available on website

2018 2017ASSETS

Loans to Members, Net Allowance for Loan Losses $68,931,771 $60,820,498

Cash and Cash Equivalents $4,583,594 $3,534,515

Restricted Cash $500,000 $500,000

Investment Securities

Available-for-Sale Securities $41,653,841 $32,135,666

Credit Union Service Organizations [CUSOs] $1 $1

Accrued Interest Receivable $286,061 $331,325

Property, Buildings and Equipment,

Net of Accumulated Depreciation $1,977,768 $2,157,397

NCUSIF Deposit $1,101,598 $898,029

Assets Held In Foreclosure $1,260 $1,260

Other Assets $2,120,278 $1,486,580

Total Assets $121,138,172 $101,865,271

LIABILITIESMembers’ Share and Savings Accounts $106,107,085 $91,064,064

Accounts Payable and Other Liabilities $635,693 $529,339

Total Liabilities $106,742,778 $91,593,403

MEMBERS’ EQUITYAppropriated Statutory Regular Reserve $1,477,420 $1,477,420

Undivided Earnings $10,667,176 $8,936,176

Equity Acquired in Merger $2,518,597 0

Accumulated Other Comprehensive Loss $[267,799] $[141,728]

Total Members’ Equity $14,395,394 $10,271,868Total Liabilities and Members’ Equity $121,138,172 $101,865,271


STATEMENTS OF INCOME


NON-INTEREST EXPENSESSalaries and Wages $1,354,884 $1,238,054

Employee Benefits $334,390 $279,194

Insurance Premiums $47,008 $46,997

Professional and Outside Services $1,229,844 $1,043,112

Office Operation Expense $499,105 $472,199

Office Occupancy Expense $297,184 $284,038

Association Dues and Operating Fees $52,066 $44,560

Education and Promotion $81,924 $84,984

Other Operating Expenses $467,738 $268,936

Total Non-Interest Expenses $4,364,143 $3,762,074Net Income $1,731,000 $240,365

NON-INTEREST INCOMEMember Account Servicing Fees $1,140,425 $1,150,149

Gain on Sale of Investments Available-for-Sale $2,877 $[12,390]

Merger Bargain Purchase Income $1,386,679 0

Other $362,364 $176,447

Total Non-Interest Income $2,892,345 $1,314,206

2018 2017INTEREST INCOME

Interest and Fees on Loans $2,940,278 $2,508,467

Interest on Investments $730,817 $571,705

Total Interest Income $3,671,095 $3,080,172

DIVIDEND AND INTEREST EXPENSEMembers’ Share and Savings Accounts $202,252 $194,559

Borrowed Funds $1,654 $880

Total Dividend and Interest Income $203,906 $195,439Net Interest Income $3,467,189 $2,884,733

CREDIT FOR LOAN LOSSESCredit for Loan Losses $264,391 $196,500

Net Interest Income after Credit for Loan Losses $3,202,798 $2,688,233



THREE-YEAR TRENDS

CHARTS/GRAPHS


THE USSCO TEAM

Jeff HillConsumer/

Indirect Lending Manager

Shannon KnoppEbensburg

Community Manager

Jessica LundRichland

Community Manager

Mindy RokController

Lynne FaintBusiness

DevelopmentManager

Lynne FaintActing

Moxham Manager

Kathleen CondoMarketingManager

David SaylorSomerset

Community Manager

Sue GochAccountingManager

Shawn HildebrandIT Manager

Supervisors


THE USSCO TEAM

Senior ExecutivesTodd Cover, CEO C. Joseph Dona, COO Jeff Brlansky, CLO Renee Worrell, EVP

AccountingMindy Rok, Controller Sue Goch, Accounting Manager Mike Cotchen, Staff Accountant Amy Kohan, Accounting/IRA Specialist Sue Rouser, Accounting/IRA Specialist

Business DevelopmentLynne Faint, Business Development Manager

Consumer LendingJeff Brlansky, Chief Lending Officer Jeff Hill, Consumer/Indirect Lending Manager Karen Williams, Loan Officer Sue Empfield, Loan Officer Ethel Sciullo, Loan Specialist

IT DepartmentShawn Hildebrand, IT Manager

Marketing DepartmentKathleen Condo, Marketing Manager

Member Business Lending / CollectionsJeff Brlansky, Chief Lending Officer Juscinda Matlin, MBL Specialist Mary Woznak, Collection Specialist

Richland Community OfficeJessica Lund, Community Manager II Nancy Trabold, Member Services Specialist Crystal McKeel, Member Services Representative Marianne Roesch, Member Services Representative Leanna Hagerich, Member Services Representative Deb Morgart, Member Services Representative

Moxham Community OfficeLynne Faint, Acting Community Manager Christina Bowser, Member Services Specialist Rose Miller, Member Services Representative II Janet Calka, Member Services Representative Austin Rodgers, Management Trainee Diane Dena, Member Services Representative

Somerset Community OfficeDavid Saylor, Community Manager II Sandra Pyle, Member Services Specialist Crystal Koval, Member Services Representative Carrie Kobus, Member Services Representative Peggy Simpson, Member Services Representative

Ebensburg Community OfficeShannon Knopp, Community Manager II Amanda Ferguson, Member Services Representative


USSCO GIVES BACK

Giving back to our communities through charitable donations, scholarships, helping deserving people in need, and sponsoring events that unite our neighborhoods and people is how we foster and live our corporate slogan, Strong Community Roots, Not Just Branches. It’s more than words for us.

SOME OF OUR CHARITABLE GIVING AND DONATIONS IN 2018 INCLUDE

USSCO Donated $6,600 to the Cambria County Public Library in 2018, Bringing Our 2-Year Total to $14,140!

We’re thrilled that our monthly donations through our partnership with Friends of the Cambria County Library initiative was such a significant number again in 2018. This helps the library continue to afford to do such good work for the community—our friends and neighbors.

USSCO can sign up new members through this program at any of our four community office locations and our indirect lending “Ask for USSCO Financing at the Dealer!” option, wherever they may live.

We’re proud that we can help the library acquire new books, provide computer and internet access, and provide other essential programs and services that

support and enrich the community. All membership fees are paid by USSCO and donated to the library.

We’re also proud to be a major sponsor of the library’s very popular main fundraising effort—Night Music at the Library—every year. If you’ve never gone, mark your calendar for April 24, 2020.

You won’t be disappointed.

We use our Richland and Somerset LEDs to promote many events and charities. Some examples include

USSCO Gives Back to Our Communities


USSCO GIVES BACK

USSCO Community Scholarships

We award four $1,500 scholarships—one from each community office—to deserving members graduating high school. Our community office managers present their scholarships at the student’s school awards ceremony.

One of the ways we fund these scholarships is through our candy bar sales at each community office. They’re delicious and make great stocking stuffers. So buy lots and help students and their parents afford college and technical school.

2018’s scholarships were awarded to:

n Rianna Learn, Richland High School - Richland n Mikayla Eckenrod, Bishop McCort High School - Moxham n Madison L. Walker, Conemaugh Township High School - Somerset n Tatum Blake, Cambria Heights High School - Ebensburg

Somerset Relay for Life: We sponsored Somerset assistant manager Sandra Pyle’s Faith Lutheran Church team again in 2018 and took donations and sold luminarias for the closing event. Members and employees donated $363 for the race. Faith Lutheran Church raised a whopping $25,000 towards the event goal of $86,000. Sandy personally raised $3,200 of that.

AAABA Tournament: USSCO continues to be a major tournament sponsor, a popular Johnstown tradition still going strong in its 74th year.

PA Breast Cancer Coalition: USSCO members and employees raised another $440 during October’s Breast Cancer Month to support the coalition’s mission to help families in Somerset and Cambria Counties deal with breast cancer and breast cancer recurrence. They are also a source of comfort with their Friends Like Me care packages.

That brings our total to $3,535 since 2014, money that is earmarked for and stays in our own communities to help local people.

Items in Friends Like Me care packages may vary. Many items are handmade by cancer survivors and their loved ones.

USSCO’s community offices continued the tradition of donating an additional $250 from each office to deserving local organizations during the Christmas season. In addition to our annual Toys for Tots efforts, employees choose four deserving local groups to receive the donations this year:

Cuddles for Kids, Richland

Cuddles for Kids was started by a young local boy, Conner Hagins, in 2006 when he was 9 years old to ensure kids in hospitals had a stuffed animal to help them heal. It has grown beyond the original plan and is still going strong in 2019, as Conner prepares to graduate from La Roche College in Pittsburgh.

Martha & Mary House: Shelter Support Success, Moxham

The Martha & Mary House is the only licensed homeless shelter in the region. It opened in 2015 and is operated by Catholic Charities of the Diocese of Altoona-Johnstown. Since July 1, the Martha & Mary House has received 160 referrals and is on track to process 400 applications by June 30, 2020.

Christmas Coats: Somerset Daily American and Salvation Army, Somerset

Somerset’s community office chose Christmas Coats run by Somerset Daily American and Salvation Army. 100% of all donations raised is used to buy warm winter coats and clothing for children and senior citizens in the Somerset area.

Children & Youth Services, Ebensburg

In addition to all their other programs and services, they ensure deserving local children enjoy Christmas, providing toys and gifts.

Children & Youth Services

Conner Hagins and his special friend Darran on one of the many visits to UPMC Children’s Hospital of Pittsburgh.

USSCO GIVES BACK


Documents

CONTENTS Annual... · Janet Calka, Member Services Representative Austin Rodgers, Management Trainee Diane Dena, Member Services Representative Somerset Community Office David Saylor,