2011 Annual Report to Members

President’s Letter to ECCU Members

April 30, 2012

How would you summarize your ministry’s past year from a financial perspective? For me, the word pursuit comes to mind. When 2011 began, the ministries and individuals who bank with Evangelical Christian Credit Union (ECCU) were cautiously optimistic. This optimism prompted all of us to pursue greater financial health in 2011. And while we’ve made encouraging progress, it hasn’t been without challenges.

The financial reality as we begin a new year is that ministries are still struggling. We’re doing what we can to support them, but sometimes it’s not enough. This means ECCU is weathering the most challenging season in our 47-year history. While we experienced a loss in 2011, primarily due to the economy’s impact on some of our member ministries, our capital—which is an important measure of financial performance—remains strong even as these ministries struggle to restore their financial health. At year-end, our gross capital was $107.6 million (9.4 percent), and our 7.53 percent net worth was well above the National Credit Union Administration’s 7.0 percent “well capitalized” threshold.

Meanwhile, unpledged liquid assets (cash and safe, marketable securities) stood at $180.2 million, even after we used excess liquidity to reduce our overall debt by $42.5 million. We also restructured our debt which will result in significant expense savings in 2012 and beyond. Finally, we ended the year with $21.0 million in our allowance for potential future loan losses to protect member capital.

It is in the context of this financial picture—strong capital, high liquidity, substantial reserves—and after distributing $9.2 million in dividends to our members, that we recorded a $20.6 million net loss for 2011.

But the story does not end there. What’s more important is that as ministries turn the corner, their renewed financial strength increases our ability to fuel life-changing ministry around the world. And I’m sure I speak for every ECCU staff member when I say it is our great privilege to support the kingdom work in which our members engage every day.

As 2012 gets underway, we’re exploring more new ways to help our members pursue their God-given calling. You can read about these initiatives in the 2012 and Beyond section of this annual report. Once again the consolidated financial statements are presented in a format that helps you put the numbers in their proper context. If you want a printed version, there’s a PDF available as well.

Thank you for your commitment to Christ-centered ministry. We are grateful for the opportunity to partner with you in this eternally significant pursuit.


Mark G. Holbrook

2011 Consolidated Financial Statements