2012 Annual Report - Tinker Federal Credit Union

President’s ReportMichael D. KloiberPresident/CEO2“Enjoying Security,” what a great feeling to have in amost uncertain world, economy, and time in our nation’salways there and ready, helping youmanage all of your money so you can3history. If you have listened to the nightly news, or readstay as financially secure as possible.about our national economy in the newspaper or online,At the end of 2012, TFCU membersyou know that it is a very scary story being told. Hugehad borrowed almost $1.6 billion todeficits and an ever increasing national debt that dwarfsfulfill their dreams, and they entrustedSafe &Stronganything like it in our nation’s history.So, what about this “Enjoying Security” I mentionedabove? Where can you find this security? You do not haveto look very far because it is right here at Tinker FederalCredit Union!Yes, even now, you can find that “safe haven” you aresearching for in “your credit union.” Today, you and nearlyus with $2.6 billion in savings. Included in this total was$215 million in Individual Retirement Account shares andcertificates, helping them to plan for a secure retirement.Your security is enhanced and insured by the NationalCredit Union Share Insurance Fund, providing the peaceof mind knowing that your dollars are safe and sound.Now, that’s something we can all get behind!270,000 members are finding the security you want forSo, chase adventure in your daily life if you like, butall your hard earned dollars and life savings. You are alsoleave the risk management of your financial security toTFCU provides a solidfoundation so memberscan feel free to enjoy theirlives—every kick, punchand step of the way.finding the necessary credit you need when all you hearin the media is that financial institutions are no longermaking the loans that are so crucial to economic recovery.Helen Keller once said that security is an illusion—that life is a dangerous adventure or it is nothing at all.In general, we all recognize the risks inherent in life andour daily living. In fact, many of us choose the risk ofTFCU. We will be here to help you pay for memories thatlast a lifetime. We will also be here to help you build asolid, secure financial foundation on which to build thatadventurous life.adventure in our recreation and entertainment when wecan. There is a certain thrill in this kind of risk taking thatwe enjoy, but generally, we try to limit the risk factorswhen it comes to our financial affairs.We like the idea of security when it comes to our personalfinances. Whether you are saving for some important lifeevent, or borrowing for the dream home or automobile,you have to look no further than TFCU. We have alwaysbeen there for you when your thoughts turned to financialsecurity, providing a wide range of products and servicesthat make saving for a rainy day, or borrowing for thatElijah Bailey becomesa TFCU member with aMoola Moola savings account.He goes to college andopens his first checkingaccount at TFCU.Elijah starts savingmoney to support hismartial arts students whocan’t afford equipment.special item, a little bit easier. Your “calm in the storm” isTinker Field civilian employees foundedthe institution now known as TFCU.TFCU President Michael D. Kloiber is honoredby the Defense Credit Union Council.199920052008 1946August 2012

Year in ReviewReal Members and Real ExperiencesTinker Federal Credit Union keeps our members’ finances secure, so they can focus on what makes them happy. In the last halfof 2012, we began telling real members’ stories about how TFCU has helped them achieve their goals and realize their dreams.Real members with real TFCU experiences help to illustrate the member-owned structure of your credit union. Throughoutthese pages, check out some of the experiences your fellow members enjoy, knowing TFCU takes care of their finances.45What WasNew 2−0−1−2Our Members, Our CommunityWe were in the community and interacting with ourmembers nearly every day in 2012 and enjoyed astellar year of community involvement. Highlightsincluded serving snow cones to approximately 1,550TFCU Runs in the BloodTinker Federal Credit Union pride and loyalty runs deep insome families. For Preston Mechling, part-time memberservice officer at Midwest City East, it’s in his blood.Grandson of former Board of Directors volunteer DaleIn late 2012, Home Branch was enhanced. Frequent usersnoticed a new link in Home Branch’s top navigation called“Money Tools.” This new menu item expanded TFCU’sbudgeting functions and offered links such as SpendingOverview, Spending Categories, Savings Goals andBudget. TFCU also implemented changes to its ATMs, incompliance with the Americans with Disabilities Act. Theseupdates included more Braille features and voice-guidanceactivation. In May of 2012, Specialized Investment Serviceschanged its name to TFCU Financial Advisors. The namechange helped to promote the services TFCU Financialkids as part of the kick-off event for the Pioneer LibrarySystems Summer Reading program. More than 90 TFCUemployees walked in the Martin Luther King, Jr. DayParade amid over 62,000 onlookers. For the first time,TFCU sponsored Project Mom, an event that benefitedover 800 metro OKC mothers. Twice in 2012, Save-A-Tron visited the Science Museum Oklahoma, whereapproximately 6,000 kids interacted with him and createdtheir own piggy bank. TFCU also was a sponsor ofDowntown in December, which offered festive activitiesin downtown Oklahoma City through the holidays.Williams, Mechling celebrated his fourth anniversary atTFCU in June of 2012. His late grandfather served as aTFCU volunteer for over 25 years, first on the SupervisoryCommittee, then on the Board. “TFCU has been a partof me since before I could remember,” said Mechling.“Some of my first memories are of my grandfather takingme to a branch to put change in my savings account.”Mechling wants to continue the legacy his grandfatherstarted and plans to further his career at TFCU.Advisors can provide our members.John Wheelerbecomes aTFCU member.He opens a CommandFund account to savefor retirement.John’s wife buys him a SchwinnCruiser, adding classic style to thehobby he began in the 1960s.More than 90 TFCU employees walked inthe Martin Luther King, Jr. Day parade.Part−time Member Service Officer PrestonMechling celebrates four years at TFCU.1955 1962 2000January 2012June 2012

Year in Review6Watch Us GrowTFCU opened three new branches in 2012, bringingour total full-service branches to 27 and our in-schoolbranches to three. Membership expansion in the Tulsaarea helped us open our Tulsa Downtown branchin January. The second TFCU branch in Tulsa, thedowntown branch, now provides lobby service, six drivethrulanes and ATM service to members in the downtownarea. John Marshall, TFCU’s third in-school branch,opened in August and joined the ranks of Crooked Oakand Metro Tech as a hybrid financial/learning centerlocated on a metro Oklahoma City school campus. Then,in September, TFCU opened its 27 th full-service branchin Oklahoma City’s Capitol Hill district. This branch isconveniently located just south of downtown OklahomaCity, on Western Avenue.Giving Back to Our Members;It’s What We DoDuring 2012, TFCU continued our tradition of giving backto our members. We hosted seven Shred Days at variousTFCU branch locations and sold 12,696 low-cost ticketsto Frontier City/White Water Bay, Silver Dollar City and SixFlags Over Texas, the sales of which, not only benefitedmembers, but also provided more than $12,000 to CreditUnions for Kids. Heritage Club Checking members enjoyedthe annual Health Fair in October and tours that includedtwo trips to the San Antonio Riverwalk area and a mysterytour to the Dallas area, where participants toured CowboysStadium and enjoyed a murder mystery dinner theater.The annual Gift of Membership promotion generatedmore membership referrals than ever before, with overa thousand $10 membership referral redemptions.There were 1,386 Give Back winners who won a total of$81,264.84, and 60 SaveAbles Kids Club members hadtheir deposits matched for a total of $3,387.74, as part ofAwards andAccoladesSeveral honors were awarded to TFCU during 2012.Recognized for his “passionate advocacy on behalf ofthe credit union movement and his steadfast supportof the defense community,” TFCU President/CEOMichael D. Kloiber was inducted into the Defense CreditUnion Council’s Hall of Honor in August. TFCU wonfour first place CUNA regional awards for communityservice, member service and adult and youth financialeducation. Additionally, TFCU won Children’s MiracleNetwork’s Fundraising Event of the Year award for the11th Annual TFCU Miracle Car Show and the Readers’Choice Award for Best Credit Union in the Enid, Edmondand Oklahoma City areas.7Give Back for Kids. And, in September, TFCU hosted ourMember Appreciation Day at Frontier City, buying out thepark with 8,000 members in attendance.The Tulsa Downtown branch kicks offoperations with six drive−thru lanes.Approximately 8,000 TFCU members attendTFCU’s Member Appreciation Day at Frontier City.At age 16, Craig Yadon opens hisfirst checking account at TFCU.The son of a woodworker, Craig finds hispassion for building furniture and small clocks.January 2012 September 2012 19802002

Board of Directors’ ReportRodney C. WalkerChair, Board of DirectorsBoard of Directors and Associate Board Members10Risk and reward; the phrase itself is fraught with nerverattlingstress, which seems to be the general mood ofmany today when it comes to financial management. Justexactly what kind of risk are we talking about? And, whatkind of reward do you have in mind?In the game of golf, it’s one thing to stand over a 210-We love to see you when you visit one of our branches,but we also know you often prefer to conduct your financialbusiness when and where it’s most convenient for you. Wehave listened to your demands, and we have expandedour Internet and mobile services. But, we aren’t about torest on our laurels. We will continue to add technologyListed as shown below, left to rightSteve WalkerAssociate Board MemberGary WallBoard MemberSheila JonesVice ChairRodney C. WalkerChairEldon W. OverstreetBoard MemberFelix Lopez IIIAssociate Board Member11yard second shot over water into a par five and weigh thepros and cons of going for it rather than laying up to thein the coming months and years to provide you with thelatest tools to manage your finances.Tiffany BroilesBoard MemberDelinda FitzgeraldAssociate Board Memberwater’s edge. It is quite another to contemplate whether totake one’s hard-earned savings out of a low-earning butWe take our responsibility to the communities we servevery seriously. We believe we have obligations beyondAl RichSecretaryBill A. WatkinsTreasurerfederally insured credit union account and invest it in thesimply providing quality financial services. We are part ofstock market.our community. We live and work here, just like you. ToAt Tinker Federal Credit Union, we can’t help you withenforce our community commitment, we supported manyyour golf game, but we can help you plan the best wayorganizations, schools, projects and events in 2012. As you’llto start, grow and manage your hard-earned money, orsee throughout this annual report, Tinker Federal Creditto finance those big-ticket items you’ll need along life’sUnion has remained committed to helping our memberswinding road. We understand the tough times, such as themanage their financial lives and to contributing to the qualitylast few years. The situation makes it more important thatof life throughout the many communities we serve.we partner with our members to deliver quality productsYour credit union is made possible because of the creditand service to reduce the stress, especially during theunion spirit of cooperation. Volunteers, management andtoughest times.staff work together to provide you with the best credit unionThe good news is that Oklahoma has fared better thanpossible. Whether times are good, bad or somewhere inmany other parts of the country during the Great Recession,between, you can always count on the security of TFCUand borrowers have been enjoying the lowest rates in moreto be there with you, helping you make the right decisionsthan a generation. It is a great time for smart borrowing;for you and your family.plus, there are some signs of an improved economy.Understandably, savers have been frustrated with thoseRespectfully,low rates, but you have continued to trust TFCU with yourhard-earned dollars, as you’ll see in the financial sectionof this report. And, for those comfortable with investingoutside of the insured security of the credit union, we areconstantly working to improve the products and servicesoffered through TFCU Financial Advisors.TFCU hits $2.7 billion in assets.265,000 members now rely onTFCU for financial services.TFCU empowers 18,568 peoplewith financial informationthrough 546 workshops.Members take advantage of TFCU’sseven Shred Days, disposing of16 tons of confidential documents.February 2012 September 201220122012

12Shares2,8002,6002,4002,2002,0001,8001,6001,400Millions$2,631$2,356$2,133$1,887$1,5972008 2009 2010 2011 2012Treasurer’s ReportBill A. WatkinsTreasurer, Board of DirectorsTFCU has kept your money safe and secure for over65 years. And, we continued to do so in 2012, as manystruggled through a sluggish recovery from the GreatRecession. Our members recognized this safety andgreat member service by rewarding the credit union withthe current economy, we ended theyear with net income at $21.7 million.Many members wonder why a notfor-profitcredit union would need netincome. Net income is the only way we13Millions$2,943record share and membership growth.We stayed focused on our members, as always, withcan increase our equity, which is like arainy day fund. We encourage our members to save money3,0002,8002,6002,400$2,125$2,393$2,648competitive loan and share rates, convenience, low feesand a wide range of financial products. Our Click Checking,money market accounts and a full range of regular and IRAshare certificates remained popular services.for those unexpected emergencies, and we follow that wiseadvice. TFCU sets aside funds (net income) into our rainyday account (equity) every year. This practice keeps usstrong and ready to help each member. While we take careAssets2,2002,000$1,807TFCU continued to be a lending mecca for ourmembers, who benefited from super low rates throughoutof your finances, you are free to pursue your own dreams.Even with several years of this extra low-rate environment,1,8001,600the year. In fact, many members refinanced their homesfor a second and third time. Other members brought loansTFCU still maintained a Return on Assets (ROA) of .78percent. That was a home run in this economy. The net2008 2009 2010 2011 2012from other institutions to take advantage of our greatrates. Whether they needed a vehicle, home equity line ofworth ratio is another measurement of strength, and thecredit union ended the year with an excellent 9.64 percent.1,6001,500Millions$1,361$1,430$1,498$1,566credit, credit card or just wanted to buy something fun likea pool or motorcycle, TFCU maintained competitive ratesto serve our members’ needs. We also continued to offerstorm shelter loans with special, low rates to help keepIt has been our pleasure to help you achieve your goalsand realize your dreams.Respectfully,Loans1,4001,3001,2001,1001,000$1,135our members as safe and secure as their credit union.While this very low-rate environment is great forour borrowers, TFCU made less money on loans andinvestments, which impacted our bottom line. But, despite9002008 2009 2010 2011 2012Thousands269270260250234251Membership240230220210197216Save−A−Tron poses with his new friend,Charity, at the Capitol Hill Grand Opening.TFCU honors Catoosa High School teacherDiann Dodd for teaching financial literacy.2001902008 2009 2010 2011 2012October 2012 December 2012

Supervisory Committee’s ReportJames P. PearlChair, Supervisory Committee16Tinker Federal Credit Union takes the security of yourfinances very seriously. The Supervisory Committee helpskeep your credit union secure by maintaining a systemof checks and balances, so you don’t have to worry. Wewant you to be able to do and accomplish the things mostimportant to you, while we maintain a strong financialIn addition to the auditing and compliance functions,and ensuring overall soundness of your credit union, theSupervisory Committee is responsible for representing yourinterests in maintaining the highest standards of memberservice. If you believe you are not being properly servedby your credit union, formally contact us at the addressFreedomin Security17institution for the safekeeping of your funds.located at the end of your member account statement.We have the responsibility of monitoring all TFCUWith over 75 years of TFCU volunteer service, theactivities and ensuring all practices are conducted inaccordance with accepted accounting procedures andmanagement practices. Appointed by Tinker FederalSupervisory Committee diligently works to maintain theintegrity of TFCU for our members. We thank everyone atTFCU for their support and cooperation in 2012 and lookTFCU's leaders work hardto ensure members' moneyCredit Union’s Board of Directors, the committee worksclosely throughout the year with the Board of Directors,TFCU management, Internal Audit and Compliancedepartments and the external audit firm of BKD, LLP. Weforward to another strong year in 2013.Respectfully,is safe and the creditunion remains strong somembers can achieve theirreport the results of our activities to the Board of Directorsfor their review and, if necessary, corrective action.goals. In 1998, Kimm andJim had a "ridiculouslyeasy" time shopping for avehicle with a pre-approvedListed as shown at left, from left to rightcar loan from TFCU.Tim LowellCommittee MemberScott Alan White IIICommittee MemberJames P. PearlCommittee ChairKimm’s gig in a popular bandpays for her college booksand some sorority expenses.She marries Jim Friedemann,a National Guard member,and starts banking at TFCU.TFCU saves the day witha secured loan for Kimmand her husband whenthe unexpected occurs.Kimm opens a checking accountfor her oldest daughter to teachher how to handle money.She dips into their savingsaccount to buy equipment for theband she and her "crazy friendsfrom college" have started.1984 19962000 20102012

Senior Management Corporate Officers18Listed as shown below, left to rightComplianceChristie A. Porter,Senior Vice President/ComplianceCorporateMichael D. Kloiber,President/Chief Executive OfficerHuman ResourcesSusan Rogers,Senior Vice President/Human ResourcesTFCU Financial AdvisorsBrenda Peddycoart,Senior Vice President/Supervisory PrincipalRisk ManagementPatrick J. Yager,Executive Vice President/Chief Risk OfficerInformation ServicesGrant Woldum,Executive Vice President/Chief Information OfficerAccountingKathy Kelso,VP Finance/ControllerAccountingLarry Selby,VP/Investment OfficerAccountingStefan Von Dollen,AVP/Manager, FinanceInformation ServicesSteve Mooney,VP/Manager, IS OperationsInformation ServicesEric Quach, AVP/Manager,Network & SecurityInformation ServicesEric Trinh, AVP/Manager,Software Development & DBNorman West/EastLorie Stueven,AVP/Branch ManagerNortheast OKC/Metro TechJoseph Arthur,AVP/Branch ManagerNorthwest OKC/BethanyCindy Akin,AVP/Branch Manager19MarketingMatthew Stratton,Senior Vice President/MarketingLegalLinda K. Ellis,General CounselOklahoma City’s Capitol Hill districtbecomes home to TFCU’s 27th full−service branch.September 2012AccountingBillie Houston,Executive Vice President/Chief Financial OfficerLendingDonna Olsen,Senior Vice President/LendingOperations AdministrationDavid Willis,Executive Vice President/Chief Operations OfficerBranch OperationsLisa Leeper,Senior Vice President/Branch OperationsTFCU’s senior management focuses on givingmembers the security to enjoy full and happy lives.2012AdaDelisa Floyd,AVP/Branch ManagerAdjustmentsBob Chadick,VP/Manager, AdjustmentsBranch OperationsJay Foote,VP/Director, Branch OperationsCapitol HillLaura Rodriguez,AVP/Branch ManagerCard CenterAlan Schaefer,VP/Manager, Card CenterCentral LendingLoretta Ross,VP/Manager, Central LendingEdmond/John MarshallSteven Gonner,AVP/Branch ManagerEdmond EastCynthia Ormsby,AVP/Branch ManagerEnid/VanceAnita Murrow,AVP/Branch ManagerInformation ServicesTerri Avants, AVP/Manager,Business SystemsInformation ServicesRoger Ison, AVP/Manager,Operations SupportInformation ServicesTeresa Lee,AVP/Manager, InfrastructureLendingConnie Wall,VP/Director, LendingLoan OperationsCherlynn Waymire,AVP/Manager, Loan OperationsMarketingCynthia Campbell,VP/Manager,Financial EmpowermentMarketingNancy Entz,VP/Director, MarketingMarketingCarolyn Kelly, AVP/Manager,Marketing CommunicationsMarketingDenyel ReneVillia,AVP/Manager,Community EngagementMember Service CenterRussell High,VP/Manager, Call CenterMidwest CityCarol Judd,VP/Branch ManagerMidwest City EastDana Stacy,AVP/Branch ManagerMoore/Crooked OakJan Davis,AVP/Branch ManagerMortgage LendingKrista Basinger, VP/Manager,Mortgage LendingTFCU DepartmentProfessional DevelopmentChris Henkel, VP/Manager,Professional DevelopmentRecords ManagementBrian Coleman, AVP/Manager,Records ManagementShawnee/SeminoleMargaret Scallorn,AVP/Branch ManagerSouthwest OKC/Southwest RemoteTeri Chadick,AVP/Branch ManagerSpecial ServicesJustin Hightower,AVP/Manager, Special ServicesSpecial ServicesJason Kapka,AVP/Manager, ConstructionStillwaterTerra Loree,AVP/Branch ManagerTinker Air Force BaseKarl Wasserleben,VP/Branch ManagerTulsaSean Barton,AVP/Branch ManagerTulsa DowntownBrandy Harris,AVP/Branch ManagerYukonKasey Wasserleben,AVP/Branch ManagerTFCU Branch Location

Branches20Ada1620 Lonnie Abbott Blvd.Bethany6750 N.W. 39thCrooked OakCrooked Oak campusOpen to Crooked Oakstudents, faculty and staffEdmond1401 N. KellyEdmond, East3141 S. BryantEnid801 S. OakwoodJohn Marshall(Opened August 2012)John Marshall Mid-HighSchool campusOpen to John Marshallstudents, faculty and staffMidwest City6501 Tinker DiagonalMidwest City, East1401 S. Post RoadMoore400 S.W. 6thNorman, East1131 12th Ave., N.E.Oklahoma City,Capitol Hill(Opened September 2012)2315 S. Western Ave.Oklahoma City,Metro Tech1800 Springlake Drive,Suite 200Oklahoma City, Northeast1177 N.E. 23rdOklahoma City, Northwest4626 N.W. 39thOklahoma City, Southwest9601 S. PennsylvaniaOklahoma City,Southwest Drive-Thru1200 S.W. 89thSeminole2221 N. Milt Phillips Blvd.Shawnee3923 N. HarrisonStillwater5101 W. 6thTinker AFB, Area ABldg. 420Tinker AFB,Area C-1 NorthBldg. 3001 Post Y-92Tinker AFB, TAC(Open January 2013)Bldg. 9001 Post A-45Tulsa8920 E. 61st Street, SouthTulsa Downtown(Opened January 2012)702 S. Main AvenueVance Air Force Base234 Fields StreetYukon11209 W. RenoTFCU ExpressElectronicService CentersChoctaw Express14453 N.E. 23rdEnid Express215 W. Owen K. GarriottOklahoma CityExpress, Southwest1200 S.W. 89thOklahoma CityExpress, West4140 W. I-40P.O. Box 45750Tinker Air Force Base, OK 73145-0750405-732-0324 Oklahoma City918-592-0324 Tulsa580-310-0324 Ada405-707-7440 Stillwater580-233-3330 Enid800-456-4828 Toll-Freewww.tinkerfcu.orgFederally Insured by NCUAEqual Opportunity Employer M / F / D / V21Norman, West301 36th Ave., N.W.Tinker AFB,Area C-2 SouthBldg. 3001 Post Y-32Newly opened branchGabriela Lopez becomes a loyalTFCU member when she ispre−approved for her first car loan.Gabriela has her first child, Xavier.2008 2012

Elijah Bailey takes outhis first loan to completehis college degree.He appears in a TFCUcommercial, stakinga claim on TV fame.Elijah solidifies his celebritystatus by modelingin a TFCU photo shoot.January 2012July 2012September 2012© 2013 Tinker Federal Credit Union