2015 Annual Report

The 2015 Annual Report is ready. You may read it in full below or download your own PDF copies at the links located here.

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Joint message from the board chairman and president

2015 marked another year of progress for your credit union. Loans, deposits, assets, earnings and membership all grew, while capital remained strong (9.02%).

Last year $62.4 million in loans was disbursed to members who live and work in the St. Louis metro area. This amount represented a new high in our 67-year history. It was $12 million more than we had loaned the previous year, reflecting 9.80 percent growth. Autos led all categories, with business, credit cards, first and second mortgages, home equity lines of credit and personal/signature also in the mix. Offering credit at reasonable and fair rates of interest is one of our primary purposes.

Another primary purpose is to promote thrift. Member deposits at Arsenal grew from $181.2 million in 2014 to $189.7 million in 2015, a 4.65 percent increase. Total assets climbed 3.63 percent, from $204.8 million to $212.2 million.

Educating members and others in the prudent use of money and credit is also a major part of our mission. The financial education section on our website averaged 8,000+ hits per month last year. We also participated in National Credit Union Youth (Savings) Month in April, held a first-time homebuyers seminar in October and gave 33 “money talks” to students in local schools throughout the year. Helping people is especially important to us.

Like any company that wants to stay in business, we need to maintain a positive bottom line, and in 2015 we saw a mild increase in earnings from the previous year. Unlike for-profit banks, we always share our net earnings with members in the form of lower interest rates on loans, lower and fewer fees, higher earnings on deposits, and investments in technology with new services.

Last year, 2,838 people joined the credit union, slightly more than the previous year, as word spread about the quality of our service and the many benefits that come with free membership. In periodic satisfaction surveys conducted via email last year, members frequently raved about the service they received from our front-line staff, with 85.20 percent rating their service experience as “excellent.” Almost 400,000 teller transactions were completed at our branches last year, plus 26,961 office visits with member service representatives.

While some people prefer conducting business in person, others favor high tech over high touch, and we are committed to meeting growing technology demands. The popularity of our electronic services continued to climb last year, as shown by the following enrollment numbers: online banking – 3,837 new (15,398 users overall); bill pay – 1,289 new (4,208 overall); mobile banking – 950 new (6,581 overall); and Personal FinanceWorks – 1,412 new (5,344 overall). The number of eStatement users grew by 3,748, to 12,121.

Upgrading to a new core data processing system was a huge undertaking for our staff last year. As a result of a lot of thought, hard work, training and testing poured into this project, the conversion went very smoothly. It went so well, we were able to reopen for business ahead of schedule.

We are so appreciative of everyone who works, volunteers and conducts business with the credit union; all contribute to our success. Amazing things can be accomplished when you have a well-run organization with dedicated employees and loyal members, especially when all are working together and helping each other at the local level.

We take great pride in the St. Louis and Metro East regions being our home, and we are here to stay. By using your credit union’s various financial products and services, you are supporting your local community and local business, as well as making an investment in your financial health.



Report from the supervisory committee

The supervisory committee’s role is to maintain oversight of the safety and soundness of the credit union.

Operating independently of all entities at the credit union, we ensure the board of directors functions in a manner beneficial to the members. We also review practices and procedures followed by staff to verify that management carries out the policies set by the board. In addition, we monitor compliance with applicable laws and government regulations.

Besides reviewing monthly and quarterly financial reports and conducting ongoing operation audits ourselves, we annually engage an independent certified public accounting firm to perform an opinion audit that evaluates accounting controls, financial statements and verification of members’ accounts. For the fiscal year ending Sept. 30, 2015, Stephen Lang & Associates, L.L.C. conducted the 2015 audit of Arsenal Credit Union. Arsenal Credit Union received an unqualified opinion on the financial statements. This essentially means that, after the audit, the firm felt that the credit union followed all accounting rules appropriately and that the financial reports are an accurate representation of our financial condition.

State and federal regulators also examine the credit union on a regular basis; the supervisory committee reviews the results and follows up with senior management on any action items identified in the report.

The supervisory committee can say with complete confidence that Arsenal Credit Union continues to maintain a high level of financial safety and soundness. We will remain vigilant representatives of our 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.




Consolidated financial statements

BALANCE SHEET As of 12/31/2015 As of 12/31/2014
Loans  $       128,192,920  $       116,746,442
Cash & Investments             66,713,027             71,656,159
Land, Building & Equip              9,072,919              8,591,752
Other Assets              8,263,474              7,812,489
Total Assets  $       212,242,339  $       204,806,842
Deposits  $       189,675,404  $       181,247,874
Other Liabilities              2,647,221              4,343,207
Retained Earnings             19,919,714             19,215,761
Total Liability & Equity  $       212,242,339  $       204,806,842


YTD 12/31/2015

YTD 12/31/2014

Loans  $           5,259,058  $           5,058,319
Investments              1,329,133              1,561,324
Other Income              4,755,964              4,139,023
Total Income  $         11,344,156  $         10,758,666
Div./Int Paid to Members  $            502,151  $            587,356
Office Occup., & Operations              3,211,355              2,900,456
Employee Expense              4,308,572              4,117,713
Outside Services              1,024,308                 989,092
Loan Loss Provision                 499,075                 708,016
Other Expense                 749,018                 652,282
Total Operating Expense  $         10,294,480  $           9,954,915
INCOME FROM OPERATIONS  $           1,049,676 $              803,751
Gain (Loss) on Sales of




Gain (Loss) on Disposition of







Income Tax



INCOME TO RESERVES  $             $1,049,676  $             775,352


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