Annual Report

2020

President & Chief Executive Officer Message

As we reflect back on 2020, it started out respectable with all indications that it would be a good year. Then we faced an unthinkable pandemic. Our economy was put on pause due to the lockdowns to stop the spread of COVID-19.

Throughout the year, we were well equipped to meet the financial needs of our membership. We worked daily with any member, who had been affected by layoffs, furloughs or impacted in anyway by this economic turmoil. In fact, at the peak we had nearly $18 million worth of loans that were in some sort of assistance. We offered our members a number of options, including, but not limited to, offering lines of credit, extensions, forbearance or skip payments, bridge loans or even waiving a penalty for early withdrawal on a certificate of deposit. This includes our business members. Through the US Treasury Stimulus, our small business members had been able to apply for Payroll Protection Program loans guaranteed by SBA.

Although we had to make adjustments to our normal operating environment, all of our staff were working during the shutdown and we functioned smoothly. This is the testament to our employees, who have been coming to work each day to ensure we continue to do what we do best, take care of our members and their families. We couldn’t be more proud of the work they do on behalf of our members.

We met our forecast set forth in the FY20 operating budget. Member satisfaction, staff engagement and overall profitability ended on a high note meeting all of our key metrics.

Our 2020 results are indicative of on-going balance sheet management and the financial flexibility we have been moving towards with each year since the “Great Recession” in 2008.

Member satisfaction, staff engagement and overall profitability remained high during the year. Membership grew by 3.35% placing us in a top tier in NYS for 12-month member growth in our peer group. We had an overall satisfaction index of 6.77 out of seven. Our financial position today continues to remain solid. Year-end assets climbed in excess of $660 million. At the same time, our net operating expenses YTD were at 1.90%, well below our goal of 3%. We finished the year with a net income of $6.1 million, garnering us nearly $100 million in total equity. Capital remains a key component to our financial health ensuring that we are able to withstand any uncertainty like what we are currently confronting.

We began construction in Essex for our second retail branch in Vermont. We were also approved by the National Credit Union Administration to serve Jefferson and Lewis Counties in NY. The Board of Directors adopted the amendment to our Charter on December 16, 2020. This enabled us to move forward with our merger with United Neighbors FCU in Watertown, which was finalized April 12 of this year.

Named for a 10th consecutive year, as one of the Best Companies to Work for in New York is not only a privilege, it is a testament of our ongoing commitment to employee satisfaction.

We are extremely grateful to our more than 50,000 members who have put their trust in us, and we will continue to work diligently to remain strong in order to be able to serve our membership well into the future.

Respectfully submitted,
Scott A. Wilson
President & Chief Executive Officer

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Financials

Click here to view the Income Statement, as printed in the Annual Report.

Click here to view the Statement of Condition, as printed in the Annual Report.

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Board of Directors Chairman Message

We were challenged in 2020 with a world-wide pandemic, which has made everlasting changes on us as a country and as a Credit Union. We now social distance, bump elbows and wear masks. Although that has changed for us, what hasn’t is our commitment to taking care of our members. We ensured that each day during some of the most difficult times, in whatever way possible, we met those needs. We didn’t miss a beat. I am very pleased with the efforts of our staff and what they did and continue to do for our membership.

As we near our 58th anniversary on June 6, our responsibility as a Board of Directors continues to ensure that the Credit Union is financially sound and will be around for many decades to come. No task is greater. It is also our charge to create a vision for the future. It is management’s responsibility to make it happen. The success which takes place at SeaComm is accomplished with hard work and dedication of a committed team led by our CEO, management and staff.

We are also grateful to our Supervisory Committee whose principle responsibility is to oversee a qualified independent audit. The results of that audit are shared within this report. It is my pleasure to report that 2020, even with all of the challenges we encountered was another outstanding year for SeaComm. Your Board of Directors oversaw the completion of a retail branch in South Burlington, VT, the construction of our second location in Essex, VT, as well as the approval of a charter expansion by NCUA to now include Jefferson and Lewis Counties in New York. This led the way to a merger with United Neighbors FCU this year. We are confident in the new markets, which we will be serving; while at the same time guaranteeing it makes absolute sense for the Credit Union, and that our service to our current members will remain at the highest level that you have come to expect from us.

On behalf of the entire Board of Directors, thank you for allowing us to represent your interests and your trust in us as we move forward in 2021.

Sincerely,
Myron F. Burns
Board of Directors Chairman

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Supervisory Committee Chairman Message

The Supervisory Committee monitors the Credit Union’s operations and procedures on behalf of the membership. Our responsibilities include overseeing the direction and focus of the internal audit function, with the assistance of Firley, Moran, Freer & Eassa, CPA, initiating an annual external audit of the Credit Union’s financial records and control structure, commissioning member account verification and ensuring an ongoing review of closed accounts. The Supervisory Committee also serves as an ombudsman for members, responding confidentially to concerns, questions or complaints that have not otherwise been satisfactorily resolved.

Each year we have an annual audit performed by an independent CPA firm to ensure SeaComm’s financial statement accurately and fairly present the financial condition of the Credit Union and that Management practices and procedures safeguard members’ assets. The past year, we contracted with Nearman, Maynard, Vallez, CPAs, P.A. to conduct the annual financial audit.

The financial statements as of 12/31/2020 fairly present, in all material respects the Credit Union’s financial position, results of operations and cash flows. Based on the results of the annual audit by Nearman, Maynard, Vallez, CPAs, P.A., it is the opinion of the Supervisory Committee that SeaComm continues to be financially strong and operationally effective with sound policies and procedures.

I extend thanks to the members of the Supervisory Committee, the Board of Directors, and the Management and staff of SeaComm for their cooperation, assistance, and support.

Sincerely,
Thomas Hannan
Supervisory Committee Chairman

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