Built for
YOU
ANNUAL REPORT
:
2023
Table of
Contents
– 4 & 5 –
Board of Directors
Annual Meeting
– 6 –
Report from the Chairperson
of the Board
– 7 –
Report from the President
& CEO
– 8 –
Audit Committee Report
– 9 –
Balance Sheet
– 10 –
Income Statement
– 11 –
Historical Growth of
Shares & Reserves
– 12 –
Report from the Treasurer
– 13 –
A 10-Year History
– 14 –
Financial Highlights
– 15 –
Credit Committee Report
– 16 & 17 –
Created with Members in Mind
– 18 –
Investment Services
– 19 –
Branch Locations &
Office Hours
Mission
Statement
To provide members with quality,
comprehensive, cost effective
financial services
2 3
Wednesday,
April 24, 2024
7:00 p.m.
Business Meeting
Agenda
Brief Reports
Introductions
and Recognitions
Elections
Old Business
New Business
Door Prizes
Light Refreshments
Schoolcraft College
VisTaTech Center
18600 Haggerty Road
Livonia, MI 48152
Deborah Elliston
Director
Gregory J. Baracy
Director
Michelle F. Randall
Director
Alonzo Glaze
Chairperson
Robert Sandercock
President and
Chief Executive Officer
William Wooster
Treasurer
Steve Rodriguez
Vice Chairperson
Amy McQuiston
Director
Robin Long
Secretary
Scott Szukaitis
Director
Board of Directors
82nd Annual
Meeting
4 5
As 2023 began, the Federal Reserve
was in the midst of a rate-raising frenzy,
the likes of which hadn’t been seen
since the 1980s. While the government
did its best to bring down inflation,
the impact of the rapid rate increases
was felt across the financial services
industry. Like most banks and credit
unions across the country, Michigan
Educational Credit Union had to pull
back on lending in a strategic move to
improve our liquidity position.
Instead of advertising our popular auto
loans, we switched gears to promote
deposit products. Consequently,
members were able to earn yields as
high as 5% APY, boosting MECU’s Share
Certificate balances by $25 million over
2022. Although overall loan activity
declined, our home equity department
was hustling to keep up with increased
demand. By year end, our home equity
portfolio had grown by nearly 35%.
Despite the economic environment,
MECU had a solid year, with a net
income of $3.5 million.
“Built for You” is a theme that resonates with
Michigan Educational Credit Union. It not
only describes the way this organization
began more than 80 years ago, but also
how we continue to do business today.
MECU was originally created to serve the
unique financial needs of educational
employees and even now, our
commitment to schools remains true.
In 2023, we supported the educational
community by participating in events
and helping to fund vital programs,
including the Northville Parent Camp,
the P-CCS Mental Health & Wellness Fair,
many Schoolcraft College programs, and
welcome back events at several school
districts. We also sponsored programs to
recognize and assist local teachers, such as
93.5 WHMI’s Making the Grade program, the
Super Sub initiative in Northville, Wayne-
Westland’s G.E.M. Awards, and 105.1 The
Bounce’s Teacher Wish List program.
At MECU, we firmly believe in giving back to
our community. Last year, we were proud
to support a variety of worthy causes. In
May, our branches collected items for local
Report from the
Chairperson
of the Board
Alonzo Glaze
Robert Sandercock
animal shelters in honor of National Pet Month.
In June, MECU was the Presenting Sponsor of
Dream Night at the Detroit Zoo, where children and
families living with chronic illnesses or disabilities
were able to enjoy a no-cost, stress-free night to
remember. Over the holidays, we collected toys
for the patients at C.S. Mott Children’s Hospital
and staff members helped work the phone bank
at 99.5 WYCD’s St. Jude Radiothon. You may have
seen the MECU team at local events throughout
the year, including the Woodward Dream Cruise,
the Taste of Plymouth, the SJ5K race, the Livonia
Home Show, and Pumpkin Palooza and the Good
Morning USA Parade in downtown Plymouth.
Most importantly, MECU exists to help its members
thrive. To do so, we must maintain our strength
and stability. In December, BauerFinancial, the
nation’s premier credit union and bank rating firm,
awarded MECU its highest 5-Star rating for the
128th consecutive quarter. MECU has also been
designated as a “Best of Bauer Credit Union” for
earning and maintaining Bauer’s 5-Star rating for
25 years or more.
MECU was built for you, loyal members, and it is
still standing strong.
Alonzo Glaze, Board Chairperson
Report from the
President
& CEO
After years of thorough research and
preparation, we tackled a major project in
2023 when we converted our entire credit
card portfolio over to Mastercard. Featuring
the latest contactless and chip technology,
our new World Rewards Mastercard and
Platinum Mastercard offer members a
long list of added perks, with no annual
fee. New cardholders are able to take
advantage of a special 3.99% APR balance
transfer offer within the first 90 days. More
recently, we’ve started a similar campaign
to extend a limited-time 3.99% APR balance
transfer offer to current cardholders.
In the months ahead, we’ll focus our efforts
on another big project: upgrading our Home
Banking service to a new system. The new
Home Banking platform will feature a modern
interface, less downtime, timely updates
and bug fixes, and a variety of customization
capabilities. We look forward to offering this
enhanced service to our members.
Although there are some things we can’t
control, like rate hikes, MECU is always
prepared to do what it takes to best serve
our membership. Thank you for putting your
trust in MECU.
Robert Sandercock, President & Chief
Executive Officer
76
The primary responsibility of the Audit
Committee is to ensure that the Credit
Union is being managed soundly and that
members’ assets are being adequately
safeguarded. The Audit Committee
makes sure the Board of Directors and
Credit Union management meet required
financial reporting objectives and
establish sufficient policies, practices and
procedures to protect members’ assets.
Balance Sheet
Michigan Educational Credit Union and Subsidiary
Consolidated Statements of Financial Condition
Years Ended December 31, 2022 and 2023
December 2022 December 2023
ASSETS
Cash and Cash Equivalents $ 32,466,044 $ 45,691,995
Investment Securities – Available-for-Sale 449,211,500 412,038,407
Other Investments 921,102 990,309
Loans – Net of Allowance for Loan Losses 521,809,011 514,007,912
Premises and Equipment – Net 7,676,888 7,575,970
Accrued Interest Receivable 2,925,696 2,796,190
FHLB Stock 1,591,500 1,591,500
Corporate Capital 1,600,000 1,600,000
NCUSIF Deposit 9,5 17,826 9,055,732
Other Assets 10,070,185 11,105,705
TOTAL ASSETS $ 1,037,789,752 $ 1,006,453,720
LIABILITIES & EQUITY
Members’ Shares and Savings Accounts $ 965,805,158 $ 915,162,075
Accrued and Other Liabilities 6,640,285 7,700,409
Regular Reserve - -
Other Reserve - -
Undivided Earnings 116,250,901 119,085,750
Accumulated Other Comprehensive (Loss) (50,906,592 (35,494,514
TOTAL LIABILITIES & MEMBERS’ EQUITY
$ 1,037,789,752 $ 1,006,453,720
The committee engaged the Certified Public
Accounting firm of Plante Moran, to audit the
Credit Union’s financial statements for the
year ended December 31, 2023. Plante Moran
completed their 2023 audit of the Credit
Union’s financial statements and issued an
unmodified opinion on March 5, 2024.
The condensed financial information
appearing in this report has been derived
from those audited financial statements.
Based upon the annual financial statement
audit, other regulatory and compliance
audits, as well as our regular monitoring
processes, the committee believes your
Credit Union continues to be run in a safe
and sound manner.
Steve Rodriguez, Audit Committee
Chairperson
Audit
Commiee
REPORT
Steve Rodriguez
8 9
t
Michigan Educational Credit Union and Subsidiary
Consolidated Statements of Operations
Years Ended December 31, 2022 and 2023
December 2022 December 2023
INTEREST INCOME
Loans $ 18,149,999 $ 22,294,655
Investment Securities 8,081,340 7,875,067
TOTAL INTEREST INCOME $ 26,231,339 $ 30,169,722
INTEREST EXPENSE
Members’ Shares and Deposits $ 2,206,322 $ 4,395,581
TOTAL INTEREST EXPENSE 2,206,322 4,395,581
NET INTEREST INCOME 24,025,017 25,774,141
Provisions for Credit Losses 457,100 1,503,838
Net Interest Income After Provision for Credit Losses $ 23,567,917 $ 24,270,303
NON-INTEREST INCOME
Interchange Fees and Service Charges $ 2,740,615 $ 3,099,722
Other 1,143,112 1,321,652
TOTAL NON-INTEREST INCOME $ 3,883,727 $ 4,421,374
NON-INTEREST EXPENSE
Salaries and Employee Benefits $ 10,867,149 $ 11,694,791
Occupancy and Equipment 2,151,667 2,513,140
Operations 6,424,362 6,128,589
Loan Servicing 2,993,995 3,530,772
Professional Services 349,567 373,348
Other 878,474 970,188
TOTAL NON-INTEREST EXPENSE 23,665,214 25,210,828
NET INCOME $ 3,786,430 $ 3,480,849
Total Reserves and Undivided Earnings
M=Million
2019 2020 2021 2022 2023
Total Members' Shares and Deposits
M=Million
2019 2020 2021 2022 2023
Income Statement
Historical Growth of
Shares & Reserves
10
Since the pandemic, financial institutions
have been at the mercy of an evolving
U.S. economy. Just when things seem to
be returning to normal, a new challenge
comes along. In the first half of 2023, interest
rates spiked at an unprecedented speed
and affected the liquidity position of most
financial institutions nationwide, including
Michigan Educational Credit Union.
In response to these rate hikes, MECU made
a strategic plan to cut back on new lending
and instead focused on deposit acquisition
and retention. It was a new direction for the
Credit Union and a challenging task. After all,
most Americans are spending these days,
not saving. The excess personal savings that
people built up during the pandemic are
quickly vanishing due to high inflation.
By increasing deposit rates and offering
share certificate promotions, MECU
managed to maintain $915 million in total
member shares and deposits in 2023,
dipping by a limited 5.2% from 2022. At the
same time, our share certificate balances
grew by nearly 22% as members took
A -Year History
2014
2015
2016
2017
2018
2019
2020
ASSETS LOANS
$1 BILLION
$876 MILLION
$826 MILLION
$799 MILLION
$763 MILLION
$727 MILLION
$494 MILLION
$544 MILLION
$543 MILLION
$475 MILLION
$438 MILLION
$402 MILLION
$317 MILLION
2021
$1.1 BILLION $449 MILLION
2022
$1 BILLION $522 MILLION
2023
$1 BILLION $514 MILLION
William Wooster
Report from the
Treasurer
advantage of special offers on one-year
certificates. For the second year in a row,
our assets dropped by approximately 3%,
but still remained above the $1 billion mark.
We also ended the year with a healthy
bottom line of $3.5 million in net income.
With our new strategy in place, loan
activity dropped off slightly in 2023.
By year end, our total loans dropped
by 1% from $522 million in 2022 to $514
million. A good portion of our auto loan
business originates through our indirect
loan program, which continues to attract
hundreds of new members to MECU each
year. Although mortgage lending remained
flat, our home equity portfolio grew
by an amazing 35%. In a higher interest
rate environment, members obviously
appreciate this affordable loan option to
help them finance major expenses.
Economic experts predict some interest
rate relief before the end of 2024, which
is encouraging news for borrowers. In the
meantime, MECU members can count on
their Credit Union to help them make ends
meet during tight financial times.
William Wooster, Treasurer
$701 MILLION
1312
Henry Willson
64
%
Loan Income
2023 Sources of Income
Financial Highlights
13
%
Other Income
23
%
Investment Income
2022: 50,274 • 2021: 50,171 • 2020: 52,393 • 2019: 53,734
2023 Total Members:
49,994
2022: 31,536 • 2021: 29,297 • 2020: 31,634 • 2019: 37,423
2023 Loans Outstanding:
30,181
Loan Portfolio Composition
as of December 2023
In 2023, 29,341 loan transactions were
completed at Michigan Educational Credit
Union, for a total of $107,829,776.
MECU members can easily apply for the loan
they need at any time and on any device
with our convenient online loan application.
This popular channel brought in 2,265 loan
applications in 2023, for a total of $50,225,243
in loans.
As interest rates climbed rapidly last year,
our auto loan business dropped off.
However, our indirect lending program
still managed to attract nearly 1,400 new
members, bringing valuable business to the
Credit Union. On the heels of a slow 2022,
mortgage activity stayed sluggish due to
higher lending rates. At the same time, our
affordable home equity loans and lines of
credit were in high demand as members
searched for lower-rate alternatives to other
loan options in the market.
While there is optimistic speculation that
rates will start to drop later this year, MECU
will always be here to help our members
whenever they have a financing need,
regardless of economic trends.
It is a privilege to serve our membership, and
we’d like to thank all of our loyal members for
their continued support and business. We’d
also like to recognize our staff, management
and board of directors for their dedication
and hard work over the past year.
Henry Willson, Credit Committee Chairperson
Lisa Kania
Kelly Borowski
Credit
Commiee
Report
41
%
Mortgages
28
%
Used Auto
4
%
Other
3
%
Personal
2
%
Credit
Cards
12
%
Home
Equity
10
%
New Auto
14 15
Share Savings Accounts
Draft/Checking Accounts
Share Certificates
Individual Retirement Accounts
First Mortgages
Home Equity Loans
Home Improvement Loans
Credit Cards
New & Used Auto Loans
Boat & Recreational Vehicle Loans
Personal Loans
Direct Deposit & Payroll Deduction
Automated Teller Machine Service
ATM & Debit Cards
Speedy Line Audio Teller
Home Banking
Online Bill Payment
E-Statements
Mobile Banking
Products &
Services
Created with
members in mind
from the Very Beginning
Michigan Educational Credit Union started with just 28 teachers
pooling their assets together in 1942. From the very beginning, our
goal as a financial cooperative was to offer the best savings and
loan rates possible to our members, dedicating ourselves to the
philosophy of “People Helping People.” Over 80 years later,
we’ve since expanded our field of membership, built several
branches, merged with other local credit unions and reached
$1 billion in assets.
Now, we continue to offer great savings and loan rates with some of
the latest technology available. We serve nearly 50,000 members
and their families who live, work or worship in Wayne, Washtenaw,
Oakland, Macomb, Livingston and Jackson counties, and our policy
of “once a member, always a member” means we will continue to
serve you even if you change jobs or move away. We meet the high
standards of the federal government to qualify for savings insurance
up to $250,000 per member, covered by the National Credit Union
Share Insurance Fund.
From the ground up, Michigan Educational Credit Union remains
built for
YOU.
16 17
Michigan Educational Credit Union
members have access to the financial
planning and investment services available
through MECU Financial’s relationship with
LPL Financial. MECU Financial’s consultants,
conveniently located right at your Credit
Union, are a valuable source for guidance
in your important financial decisions. These
experienced and knowledgeable financial
consultants can help you determine
investment objectives, select appropriate
services and products and make investment
decisions. Individual appointments are
available at no cost to you.
Call to set up your free,
no-obligation appointment today!
(734) 416-5025
Portfolio Analysis
Retirement Planning
Education Fund Planning
Financial Seminars
Insurance Services
Retirement Accounts – IRAs, TSAs, 403(b)
Equities
Annuities – Fixed & Variable
Mutual Funds
Life Insurance
Disability Insurance
Long-Term Care Insurance
How Can We Help You?
We offer assistance with:
Plymouth Main Office
9200 Haggerty Road
Plymouth, MI 48170
(734) 455-9200
Livonia Office
14921 Middlebelt Road
Livonia, MI 48154
(734) 261-1050
Ann Arbor Office
4141 Jackson Boulevard
Ann Arbor, MI 48103
(734) 761-7505
Investment
Services
Brighton Office
123 Brighton Lake Road, Suite 102
Brighton, MI 48116
(810) 494-6000
Royal Oak Office
1903 Rochester Road
Royal Oak, MI 48073
(248) 399-7473
Macomb Office
47230 Hayes Road
Macomb, MI 48044
(586) 566-5599
general@michedcu.org
www.michedcu.org
(888) 261-3355
9:30-5:30 M-F
Securities and advisory services offered through LPL Financial (LPL), a registered investment advisor and
broker-dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. Michigan
Educational Credit Union (MECU) and MECU Financial are not registered as a broker-dealer or investment advisor. Registered
representatives of LPL offer products and services using MECU Financial, and may also be employees of MECU. These products
and services are being offered through LPL or its affiliates, which are separate entities from, and not affiliates of, MECU or MECU
Financial. Securities and insurance offered through LPL or its affiliates are:
Michigan Educational Credit Union (“Financial Institution”) provides referrals to financial professionals of LPL
Financial LLC (“LPL”) pursuant to an agreement that allows LPL to pay the Financial Institution for these
referrals. This creates an incentive for the Financial Institution to make these referrals, resulting in a conflict
of interest. The Financial Institution is not a current client of LPL for brokerage or advisory services. Please
visit www.lpl.com/disclosures/is-lpl-relationship-disclosure.html for more detailed information.
William Knudsen
Wealth Advisor
Paul Schmidt
Wealth Advisor
Not Insured by NCUA or Any Other Government Agency | Not Credit Union Guaranteed |
Not Credit Union Deposits or Obligations | May Lose Value
Branch Locations
& Office Hours
1918
www.michedcu.org
