Annual Report 2023

1963-2023

President and Chief Executive Officer Message

It is my pleasure to write to you as we near the close of SeaComm’s 60th year of operation. We exceeded our own expectations based upon our Board-approved budget forecasts. Member satisfaction, staff engagement and overall profitability remained high. Our financial position continues to remain solid. Year-end assets climbed in excess of $799 million, an annual growth of 3% from year-end December 31, 2022. At the same time, our net operating expenses YTD were at 1.96%, well below our goal of 3%. We finished the year with a net income of $7.6 million, garnering us more than $112 million in undivided earnings. Capital remains a key component to our financial health, as it is necessary to maintain adequate financial reserves for loan losses as our assets continue to grow. It ensures that we are able to withstand any uncertainty. Our risk-based capital requirement of at least 10% by the National Credit Union Administration, due to being a large complex credit union, ended at 24.95%, well above regulatory requirement. Bauer-Financial, an independent rating company provided us with their Superior Five-Stars.

We experienced a significant rate increase of 525 basis points in eleven meetings held by the Federal Reserve since July 2022. During that time, the Board of Directors approved a number of certificate of deposit specials to offer members a yield to coincide with the changing rate environment. In 2023, the credit union paid an additional $2.7 million over the previous year in dividends to members. Our Loyalty rewards program enhanced much of those dollars.

Member services continues to be a key focus for us. We recognize the importance of ensuring our members feel valued in every interaction they have with us. Our overall Quality Loop survey score for the year was 6.83 out of 7.

In addition, during the year we received certification as a Great Place to Work. We were very happy to report that after we received the results, 90% of our employees who participated in the survey say SeaComm is a great place to work. Some of what we learned is that 96% felt good about the way we contribute to the community; 94% agree that management is competent at running the business; and 96% say when you join the company, you are made to feel welcome. We are extremely proud to be included within this privileged group across the country.

We continue to make a difference in the communities in which we do business through our Pay-It-Forward Program. At the annual New York Association of Credit Union annual meeting last June, SeaComm received the Dora Maxwell award for Social Responsibility in recognition of that program.

We are extremely grateful to our 54,551 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 well into the future.

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

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Board of Directors Chairman Message

As I write this letter, I am reminded of our humble beginnings and your Board of Director’s responsibility to ensure that we maintain that course that was set six decades ago. It is our charge to create a vision for the future. It is management’s responsibility to bring it to realization. Our success is accomplished with hard work and dedication of a committed team led by our CEO, management and staff.

It is my pleasure to report that 2023 was extremely successful. We completed our first full year in operation of our new branch in Watertown. We received another year of positive audit results related to all material respects of the financial position of the Credit Union as of December 31, 2023 based upon the audit, which is overseen by our Supervisory Committee. We also were able to give $428,000 to charitable organizations across all of our markets. It is always our intention that these funds assist in improving the quality of life of the communities in which we serve. We are very proud as your credit union that we are able to make a positive impact by giving back.

As we near the end of our 60th anniversary on June 6, 2024, 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.

We are grateful to our Supervisory Committee whose principle responsibility is to oversee a qualified independent audit. The results of that audit is in this report.

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 2024.

Sincerely,
Myron F. Burns
Chairman of the Board

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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 12/31/2023 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.

As your Supervisory Committee Chair, I extend thanks to my colleagues of the Supervisory Committee, the Board of Directors, Management and staff for their continued cooperation, assistance, and support.

Respectfully submitted,
Patrick Facteau
Committee Chair

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2023 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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Community Support

• $100,000 pledge to St. Lawrence Health Foundation
• Paid for 527 visitors at Zoo New York in Watertown
• Donated a combined $9,000 to local support programs in our charter areas.

We're focused on making our communities a better place to live, and we believe there's no better way to do that than by giving back.

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ASSETS

• 2021 - $758.84M
• 2022 - $775.13M
• 2023 - $799.35M

UNDIVIDED EARNINGS

• 2021 - $98.14M
• 2022 - $105.31M
• 2023 - $111.69M

LOANS

• 2021 - $345.60M
• 2022 - $391.46M
• 2023 - $438.18M

SHARES

• 2021 - $653.01M
• 2022 - $662.86M
• 2023 - $661.17M

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2023 Achievements

• 3 years selected as a Great Place to Work™
• $799 million in total assets
• Since 1963 | 60 years of people helping people
• Silver MAC Award for Community Engagement
• First Place Dora Maxwell Award for Social Responsibility
• Diamond Award | Ongoing Event for Pay-It-Forward Program
• 54,200 total members

2023 Community Impact

• 4,846 people impacted by random acts of kindness
• 648 children impacted through financial education
• Supported 290 community groups
• 1,400 volunteer hours
• 794 adults assisted through financial counseling and education
• $428,000 in donations and sponsorships
• $5,000 in academic scholarships

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Trusted, Reliable, Member-Focused

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