Dear Owners,
We can sum up 2019 in one word: growth. There were
tremendous increases in loan volume, earnings, branch
locations, and members. In fact, for the first time ever,
MIDFLORIDA is among the top 50 credit unions in the
nation, with the 49th largest amount in total assets.
We also grew geographically with the addition of
branches in St. Lucie West and Carrollwood, giving
members in the booming Treasure Coast and Tampa
markets even more ways to bank with MIDFLORIDA.
While these are major achievements in their own right,
the two bank mergers and acquisitions we completed
in November were undoubtedly the year’s greatest
accomplishments. Acquiring Community Bank and
Trust of Florida has allowed us to expand our branch
network into Ocala, The Villages, and Gainesville,
while merging with First American Bank has seen the
addition of branches in Cape Coral and Naples. These
mergers have expanded our footprint across the state,
with branches now spanning north and south from
Gainesville to Naples, and east and west from Port St.
Lucie to Clearwater. Banking with MIDFLORIDA has
simply never been more convenient.
In conjunction with these accomplishments, other
business areas also saw incredible growth. By the end
of 2019, our Dealer Direct network had expanded to
include more than 450 total car dealerships, giving
members the ability to finance their vehicles at the
dealerships of their choice. We also expanded our
mortgage product offerings to help members achieve
the American Dream, whether they are purchasing their
first home or their forever home. We expanded our
commercial products, allowing members to transform
their ideas into full-fledged businesses or expand their
existing companies into larger, even more successful
enterprises.
No matter how much MIDFLORIDA grows and expands
its footprint throughout the state, our primary focus
and number-one goal remains the same—providing
excellent service to our members. Thank you for your
loyalty and for trusting MIDFLORIDA with all of your
financial needs.
Sincerely,
Steve Moseley
PRESIDENT’S LETTER
After a year of tremendous growth in 2019 that saw our service area
expand to include more than half of Florida’s counties, we are laser
focused on filling holes in our branch network to better serve members
in growing markets. Construction has already begun on a new
location in Stuart, adding another convenient option for members in
the Treasure Coast. Ground will soon break on an additional location
in Tampa near the University of South Florida campus, and we are
exploring opportunities for growth in Ft. Myers, Kissimmee, Ocoee,
and Bradenton. As well as increasing our presence in these markets,
we will continue making improvements to legacy branches with major
renovation or relocation projects planned for the Haines City, Lake
Wales, and Lake Placid branches.
No matter where or how we are growing, we are doing so with one thing
in mind—the members. Our goal has always been—and will remain—
providing fast, friendly, and convenient service.
D. Kevin Jones
CEO’S REPORT
I would like to thank all of our loyal members who continue to
trust MIDFLORIDA as their primary financial institution. 2019 proved
to be another great year for the credit union as we expanded our
geographic area to include Cape Coral and Naples to the south and
Ocala, The Villages, and Gainesville to the north, giving members
even greater access to our services. Most importantly, we maintained
our focus on providing the excellent quality of service that you
have come to expect. We anticipate another great year in 2020 and
are looking forward to helping members achieve their personal
financial success.
Darrell Jensen
CHAIRMAN’S REPORT
While expanding our service area and branch network in 2019,
MIDFLORIDA not only maintained solid financial success, but even saw
significant increases. Total loans increased over $662 million, ending
the year with a $3.2 billion loan portfolio. The solid growth is attributed
to the expansion of our commercial loan portfolio, which had record
volume growth, giving us the 10th largest portfolio in the nation and
making us the number-one commercial lender in Florida. We also saw
more than a 23% increase in mortgage loan volume, giving us the third
largest portfolio for first and second mortgages in Florida. We ended the
year with over $4.4 billion in total assets, record net income of over $62
million, a 1.62% return on assets, and net worth of 9.5% of total assets.
Zelda V. Abram
CFO’S REPORT
2019 BY THE NUMBERS
Se r vice Ar ea
To tal Asset s
Membe rs S e r v e d
378,723
286,0012017
Net I ncome
Branch Network
2019 $4.4 B
2018 $3.3 B
2017 $3.1 B
$62.4 MM
2019
$40.4 MM
2018
$35.4 MM
2017
2017
2018
2019
311,8242018
2019
2017
44
2018
46
2019
65
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
CONSOLIDATED STATEMENTS OF INCOME
December 31,
ASSETS 2019 2018
Cash and cash equivalents $ 194,312,072 208,992,686
Investments:
Equity securities 4,888,279 –
Available-for-sale 520,886,284 270,697,837
Held-to-maturity 112,415 136,700
Other 68,087,998 47,918,338
Federal Home Loan Bank (FHLB) stock 5,535,200 8,434,400
Loans held-for-sale 43,443,331 2,878,742
Loans receivable, net of allowance
for loan losses 3,172,522,789 2,507,718,067
Accrued interest receivable 11,718,658 7,891,008
Premises and equipment, net 171,700,515 122,914,669
National Credit Union Share Insurance
Fund deposit 36,653,257 26,319,546
Assets acquired in liquidation 2,649,914 2,707,935
Goodwill 93,358,487 8,064,747
Other assets 96,140,799 71,447,821
Total Assets $ 4,422,009,998 $ 3,286,122,496
LIABILITIES AND MEMBERS’ EQUITY
Liabilities
Share and savings accounts 3,917,442,551 2,788,477,037
Borrowed funds 50,274,328 133,702,886
Accrued expenses and other liabilities 57,378,040 35,679,641
Total Liabilities $4,025,094,919 2,957,859,564
Commitments and contingent liabilities
Members’ Equity
Regular reserve 10,923,475 10,923,475
Undivided earnings 393,368,992 330,987,739
Accumulated other comprehensive
(17,054,802) (23,325,696)
loss
Equity acquired in acquisitions 9,670,664 9,670,664
Non-Controlling interests 6,750 6,750
Total Members’ Equity 396,915,079 328,262,932
Total Liabilities and
Members’ Equity $ 4,422,009,998 3,286,122,496
December 31,
INTEREST INCOME 2019 2018
Interest on loans receivable $
121,116,878
101,234,464
Interest on investments 15,219,730 11,465,211
Interest income
136,336,608
112,699,675
INTEREST EXPENSE
Dividends on share and
savings accounts 24,292,059 15,322,252
Interest on borrowed funds 3,668,020 3,707,922
Interest expense 27,960,079 19,030,174
NET INTEREST INCOME 108,376,529 93,669,501
PROVISION FOR LOAN LOSSES 8,500,000 17,546,353
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES
99,876,529 76,123,148
NON-INTEREST INCOME
Service charges 39,646,966 36,014,193
Card income 27,794,567 24,513,043
Other non-interest income 9,801,576 9,893,081
Gains on sale of mortgage loans, net 4,064,407 3,183,835
Income from sale of Visa stock 3,277,000 –
Equity securities prots, net 587,401 –
Gain on liquidation of CU24 CUSO 388,605 –
Gain on disposition of premises and
equipment, net 357,717 –
Other components of net periodic
pension cost 223,070 1,327,459
Gain on disposition of assets acquired
in liquidation, net 12,461 46,967
Non-interest income 86,153,770 74,978,578
186,030,299
151,101,726
NON-INTEREST EXPENSE
Compensation and employee benets 71,453,465 65,190,500
Operations 17,180,409 14,755,474
Occupancy 9,807,379 8,457,939
Professional and outside services 9,317,018 7,438,308
Education and promotion 8,546,338 7,709,732
Loan servicing 6,970,915 6,955,673
Other gains and losses, net 231,827 –
Loss on sale of investments, net – 57,288
Loss on disposition of premises and
equipment, net – 65,338
Non-Interest expense 123,507,351 110,630,252
Consolidated Net Income 62,522,948 40,471,474
Less: Net income attributed to
non-controlling interests (187,366) (95,861)
NET INCOME $ 62,335,582 $ 40,375,613
2019 BOARD OF DIRECTORS
Darrell Jensen, Chairman
Harry Williams, Vice-Chairman
Shirley Pellarchy, Treasurer
Kenneth Heubusch, Secretary
Chester Brojek, Director
Nick Sudzina, Director
John Upperco, Director
Christopher Geiger, Director
Dan Pierce, Director
Donald Williams, Director
Gary Ruhle, Director
Darrell Jensen, Chairman
Connie Milito
Terrence McGriff
Kathryn Ashmore
Derrik Hall
SUPERVISORY COMMITTEE
SENIOR MANAGEMENT TEAM
Kevin Jones, Chief Executive Officer
Steve Moseley, President
Dennis Pershing, Executive Vice President,
Consumer Lending
David S. Hand, Executive Vice President,
Commercial Lending
Zelda V. Abram, Chief Financial Officer
Christopher David, Chief Operations Officer
Nancy Irvin, Chief Human Resources Officer
Jill Davis, Chief Marketing Officer
Richard Haggins, Chief of Risk Management
Michael Cheeseman, Chief Analytics Officer
Sterling Grubbs, Chief of Mortgage Services
Donna Brown, Chief of Audit & Compliance
Vanessa Hernandez, Chief of Retail Delivery
St. Lucie West branch
