CEO Updates
Updates From President & Chief Executive Officer Scott A. Wilson
President & CEO Recap of 2024Transcript
Report of the President & Chief Executive Officer
As we move well into the third quarter, SeaComm continues to be on target to meet our expected forecast set forth in the FY24 board-approved operating budget. Member satisfaction, staff engagement and overall profitability continues to remain above expectation.
Our Financial Position Today Continues to Remain Solid
Net income as of June 30, 2024 was $3,348,040. Our net assets at the end of the quarter were $798,495,854. At the same time, net operating expenses YTD were 2.06%, well below the 3% targeted goal set by the credit union’s budget. However, dividend expense is up more than $1.3 million compared to budget, giving a good return to our members. Today, we have $115-million in unrealized earnings. Capital remains a key component to our financial health, as it is necessary to grow adequate reserves so we are able to withstand any uncertainty as our assets continue to increase and thereby be viable well into the future. As a large financially complex credit union, we are required to maintain a risk-based capital ratio at minimum of 10%. Today, we stand at 26.16%, well above what is required by the National Credit Union Administration.
As we end our second year of a higher rate cycle with prime currently at 8.50%, we have continued to ensure we look critically at our rate offerings. The Federal Reserve hiked interest rates eleven times between March 2022 and July 2023 for a total of 525 basis points. During this time, one of the areas we have not made any increased loan rate adjustment is in our credit card and unsecured rates. Both remain at where they were prior to start of the increase rates in 2022. We recognize that an increase in these two products would have an adverse effect on our membership, so we chose to leave them at their current rates. During the same period, we offered a number of certificate of deposit specials, which included the ability to stack on the best rate using enhanced loyalty rewards and since September 2022, more than $140 million were deposited in those products, garnering our members a better of rate on their deposits.
Bauer Financial, an independent financial rating company, awarded us their Superior Five-Stars. They analyze the performance of U.S. Banks and Credit Unions. The star ratings classify each credit union based upon a complex formula which factors in relevant data including, but not limited to: capital, historical trends, loan delinquencies, differences in the book and market values of the investment portfolio, profitability, repossessed assets, reserves, charge-offs, regulatory compliance and asset quality. It has deemed SeaComm as safe, financially sound, and that we are operating well above regulatory capital requirements.
Annual Meeting
In my report at this year’s annual meeting held in May, we were able to announce 2023 was another solid year for SeaComm. Highlights for the previous year, which included earnings exceeding budget, membership growth at nearly 3 percent, continued increase market share penetration with our newest location in Watertown, NY, as well as a solid year for our SeaComm Personal Advisor Services with over $81- million of assets under management. We also saw an increase in our mobile check deposits year over year of 10% and dividend expense overall was up $2-million over the previous year. Member satisfaction remained consistently high with an overall quality loop score of 6.81 out of 7. 
The overall message we relayed was that SeaComm is committed to ensuring our members get the very best in member service, core products and a diverse delivery channel model at any point it is needed.
Two Directors were re-elected to 3-year terms, as well as the Board re-appointed the current members of the Supervisory Committee to an additional one-year term. A podcast recapping the 2023 meeting is available on our website.
Earlier this year, our employees were able to participate in our annual employee engagement survey process through Great Place to Work. This is the 12th consecutive year. We were very happy to report that after we received the results, 90% of our employees say that overall 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; 93% stated that management is honest and ethical in its business practices; running the business; 96% say when you join the company, you are made to feel welcome; it was also said, management has a clear of where the organization is going and how to get there; and 92% say they are proud to tell others they work for SeaComm. We are extremely proud to be included within this privileged group across the country. We held a special recognition day on June 28th for all staff, whereby we provided doughnuts in the morning, jeans could be worn, a special Great Place to Work t-shirt was provided to wear and had lunch delivered. In August, we also held our annual trip to the Great Escape for staff and their families.
Charter Day 2024
As we finished our 60th anniversary on June 6th, we held a special recognition for our last remaining charter member Earl Jackson. We surprised him with cake, a basket of SeaComm swag and, as part of this celebration, each tool box located in each of our retail branches have a plaque naming the original ten who signed to begin what we have today.
Earl M. Jackson • James G. Capell • Paul R. Catlin • James R. Ellis Harold H. Guile • Carl L. MacDonald •Darrell Mills • Max M. Ryan Frank Sequin • John Zakarauskas
On behalf of the Board of Directors, management and staff, we are grateful to our, more than 54,800 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 and Chief Executive Officer
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