march 26, 2016 - Maine State Credit Union

80
years
80th annual meeting
augusta civic center
march 26,
2016
agenda
augusta memorial bridge
• ROLL CALL
• READING AND APPROVAL OF PREVIOUS MINUTES
• REPORT OF OFFICERS
• UNFINISHED BUSINESS
• NEW BUSINESS OTHER THAN ELECTIONS • ELECTION RESULTS
• ADJOURNMENT
On behalf of the Board of Directors, it’s my pleasure to welcome you to our 80
th
annual meeting. Much has changed since the first one in 1936, but as far as Maine State Credit Union
is concerned, the most important things haven’t – a commitment to serving our member owners with
competitively priced loans, safety for deposits and the best service we can give.
Our Credit Union is governed by a member selected Board of Directors – we’re members and volunteer
our time to serve as trustees on your behalf. While the Board of Directors sets the policy and direction for the
Credit Union, we rely on a professional staff for information, guidance and to implement policy. This is the
management team, support staff, and the all important people in member services, lending and collections.
Thank you, volunteers and staff for your hard work – you are an exceptional group of people!
We’ve accomplished much in the past year:
These key numbers are up significantly from last year’s impressive performance and I congratulate the
entire staff for making this happen.
chairman’s
report
Return on assets has increased to .76%
Loan growth is up 14.3%
Our net worth very impressive 13.5%
Once again, Maine State Credit Union has been named one of the
“Best Places to Work In Maine” for the fourth time in the past five years
– an amazing accomplishment!
This year marks a
significant event in the history of
the credit union – the retirement
of our long time Chief Executive
Officer, Normand Dubreuil, at
the end of March. Maine State
Credit Union is the success that
it is in large part to his vision and
direction.
Norm – your knowledge of
the credit union is unrivaled and
2015 MSCU Board of Directors Seated left to right: Joseph Suga, Treasurer, Betty Norton,
you’re a true gentleman. I speak
Vice Chairperson, Leonard Cabana, Chairperson. Standing left to right: Thomas Cusick,
for all of us who serve on the board Director, Mary Zmigrodski, Director, Amy Bouchard, Director , E. James Soucie, Director.
of directors when I say that it has
been a privilege to serve with you and to be a part of your life.
We’ve accomplished a lot in 2015 and I look forward to a great 2016!
Respectfully submitted,
Leonard Cabana
Chairperson, Board of Directors
1
Greetings and welcome to the 80th annual meeting of
president’s
report
Maine State Credit Union. In 1935 Maine State House Employee Credit
Union was founded under the stairwell at the state office
building with 168 members. While over the years we
changed our name to Maine State Credit Union and
expanded our membership, our mission is still the same
-- “to be the first choice financial institution for members,
by building financial relationships that last a lifetime.” I am
proud to report 80 years later, our membership has grown to over 25,000 and we are the largest credit
union in the state of Maine with $365 million in assets.
When I became president of the Maine State Credit Union in 1994, one of my objectives was to
deliver quality service to our members by using modern technology. This year, we launched mobile
deposit and mobile bill pay, each gives you the ability to make a deposit or pay a bill at anytime and
anywhere from their smart phone or tablet. The way members’ manage money continues to evolve as technology
become more sophisticated and we remain committed to remaining at the forefront. In 2016, we will invest in new
systems that allow members to join and open an account online any time of day and make it easier to apply for a
mortgage. We will be rolling out both Apple Pay and EMV chip debit cards to make your everyday transactions more
secure and convenient.
In 2015, we set many records. We saw an increase in membership by 2.0%; we saw a 14.3% in loan growth and
continue to lead the way in indirect lending for auto loans. This is a testament to Maine State Credit Union’s ongoing
investment in its employees and as a result, we were awarded the Best Places to Work for the fourth time in the past five
years.
In 2016, we will continue to focus on increasing our membership and defining ourselves, while remaining true
to our core values. A lot of this work will be done internally, but we cannot remain a thriving and vital financial
institution without your continued support. Please help us to tell the story of Maine State Credit Union, by sharing
your experiences with your friends and family -- your word of mouth is the best advertising that we have.
As many of you are aware, I am retiring
after 31 great years. In 1994, when I became
president and chief executive officer of Maine
State Credit Union, my goals were to ensure that
Maine State Credit Union continued to exist
without losing its identity, to provide quality
financial services products to all members and
continue to be the credit union of choice. I am
happy to report that I am leaving the Maine State Credit Union in great hands under the leadership of Tucker Cole.
Tucker has spent that last 19 years as the president and chief executive officer of Evergreen Credit Union located in
Portland. He is active in the Maine Credit Union League and shares my passion for providing all members with a great
member experience, exceptional products and services, and the latest technology.
I extend my sincere thanks and appreciation to you, our members, our board and committees for all your support.
I have enjoyed talking with you, hearing your stories and helping you with your financial needs over the past 30 years.
Without your dedication and commitment to Maine State Credit Union, we would not be where we are today. I also
want to extend my gratitude to all the employees for making this one of the best places to work. It is your ongoing
determination to strive for success, maintaining high standards, looking after the smallest detail and going the extra
mile for all our members, which make us the great Credit Union we are.
 In 2015, we set many records. We saw an
increase in membership by 2.0%; we saw a
14.3% in loan growth and continue to lead the
way in indirect lending for auto loans.
Best regards,
2
Normand R. Dubreuil, CCUE, CCE
President and Chief Executive Officer
mount katahdin
Welcome to the 80th annual meeting. My name is Tucker
Cole and I am delighted to have the honor to be with you this evening
and the privilege to lead Maine State Credit Union. I have watched over
the years how it has grown and flourished under the leadership of my
great friend and colleague, Normand Dubreuil. Maine State Credit Union
is the largest credit union in the state of Maine and continues to be the
largest fund raiser for the Maine Credit Union League’s Ending Hunger
Campaign. It has a loyal membership, as well as, a workforce of engaged
employees. Norm leaves some large shoes to fill and I am excited for the
challenge.
I have spent
that last 38 years in the financial services industry
serving members as a teller, head teller, new accounts
representative, branch manager, regional manager
and most recently 19 years as the president and chief
executive officer of a credit union in Cumberland
County. I am active in the Maine Credit Union League.
I served on the Board of Directors, chaired the league’s Political Involvement Committee and served as chair of
the Technology Services Committee. Most recently, I was
the president of the Alex Ferguson Chapter.
Over the past 20 years, Norm has built an organization
that is financially strong and one that did not lose sight
of its mission – to be the first choice financial institution
for members by building financial relationships that last a
lifetime. His legacy is one of greatness and I am humbled
to have been asked to follow in his footsteps. Norm leaves
us with a credit union of loyal members, engaged employees
and one that is poised for growth. Over the next year, I will
work with the Board of Directors, executive team, employees,
moosehead lake
and members to expand upon all the great work that has
been done and to continue the legacy that Norm leaves behind.
Thank you for your ongoing commitment to Maine State Credit Union and allowing us to help you with
your financial needs and goals. I look forward to serving you for many years.
president’s
report
 Norm’s legacy is one of greatness and
I am humbled to have been asked to
follow in his footsteps.
Best regards,
Tucker Cole
President and Chief Executive Officer
waterfall in western maine
3
audit
commitee
report
The purpose of the Audit committee is to oversee the
financial state of Maine State Credit Union, appoint the internal and external
auditors, ensure the credit union’s compliance with legal and regulatory
requirements and keep the Board of Directors and management informed of
its findings.
In conjunction with the Risk
Manager and the Senior Management
team, the Audit Committee has
the responsibility of ensuring that
management and staff follows all
established practices and policies. Our committee meets at a minimum
bimonthly. The Audit Committee is made up of a mix of both Board
members and other interested volunteers appointed by the Board of
Directors.
The year of 2015 was very active for your Audit Committee. Many
Audits and compliance reviews have been conducted during this time
period, with more scheduled. The Maine State Crédit Union’s audit cycle is
Betty Norton, Chairperson, Mary Zmigrodski,
Committee Member
from April 1st through March 31st.
The following audits were performed:
Asset Liability Management (ALM)
Automated Clearing House (ACH)
East Side Branch
Waterville Branch
Collections
Credit Card Services
Debit Card Services
Residential Real Estate Lending
Information Security Program
Information Systems
Investments
In addition to these audits, the following compliance reviews
were performed:
Bank Secrecy Act (BSA)
Fair Credit Reporting
Fair Lending
Insider Loans (Reg O)
Residential Real Estate Lending
Secure and Fair Enforcement for Mortgage Licensing Act
Truth in Savings (Reg DD)
Electronic Funds Transfers (Reg E)
Website
A Compliance Risk Assessment was performed in 2015 to help plan for the next two years of Auditing cycles.
There are also four more audits and/or compliance reviews scheduled from the end of 2015 through the first
quarter of 2016.
The Audit Committee also oversees the annual audit, which was performed by the external firm of
MacDonald Page & Co., LLC. This company was again selected as the best qualified to be Maine State Credit
Union’s external auditor in 2015. Copies of the audit reports are available upon request. The 2015 annual audit is
in process. The firm rendered an unqualified opinion of 2014, finding all areas reviewed to be in compliance with
general accounting principles.
The Bureau of Financial Institutions conducted Safety and Soundness,
Compliance, BSA and IT reviews in 2015.
statehouse in augusta
In closing, I’d like to emphasize that safeguarding the assets of Maine State
Credit Union is our collective responsibility. Please contact the committee with
any recommendations, questions, or concerns. We welcome your feedback at any
time.
On behalf of the Audit Committee, I thank you for allowing us to serve you.
Betty Norton, Chair
Audit Committee
4
It is my pleasure and privilege to report that 2015 was an
outstanding year for loan growth at Maine State Credit Union. Thanks to our
dedicated staff and loyal members, new and long-time, total loans increased by
14.3% in the past year. Total loan dollars outstanding rose from $173.4 million at
year-end 2014 to $198.3 million as of December 31, 2015. This is unprecedented
growth for our credit union and speaks to efforts across the organization to
improve our products, service delivery, and build stronger relationships with those who honor us with their
membership. Each of you contributes to the success of the credit union through your deposits, borrowing,
employment or volunteer efforts. Thank you for your continued dedication and support.
As with recent years, loan growth was balanced across several areas. Improved relationships with dealers
and a stronger economy drove a significant increase in auto lending. Our indirect (loans available at dealerships)
lending channel produced the greatest growth in 2015. We provided nearly 1500 auto loans at various dealerships
this year, as well as loans for recreational vehicles, boats, and motorcycles. An additional 660 members visited
our lending offices to finance their vehicles. We also had an excellent
year in real estate lending. We produced over $20 million in residential
first mortgage loans as rates remained low and the market was active.
Our unsecured loan products, All Purpose Loan, Signature Loan, and
Visa credit cards, also increased. They offer flexible options for members
who have unexpected expenses, such as a new roof, or are ready for a
vacation.
We introduced a new product, Second Chance Auto loans, for
members who have experienced major credit challenges. The program
is off to a slow start, but has potential to make a significant difference for
those members who may not qualify for traditional financing and need
a hand to rebuild their credit. As always, our lending philosophy is that
people are much more than just a credit score, and our responsibility is to
treat each applicant with care and respect.
We introduced a student loan
product in 2015 and will have a
consolidation option available during
2016. Many members have indicated
an interest in this product. As those
of us with college age students can
attest, knowledge can be expensive.
Thank you for being a member of Maine State Credit Union and for considering
us for your borrowing needs. We are proud of our outstanding employees and their
efforts to build strong member and community relationships. We’re here to listen, offer
options, educate, and help with financing if we can.
We truly appreciate your business.
senior
vp/clo
report
 Total loan dollars outstanding rose from $173.4
million at year-end 2014 to $198.3 million as of
December 31, 2015.
Deborah Sparrow
Senior Vice President, Chief Lending Officer
lake fishing in western maine
5
Good evening and
welcome to the 80th Maine State
senior
vp/coo
report
Credit Union Annual Meeting. As
I approach my 21st year of service
with the Credit Union, I’ve seen many
improvements to products, services
and delivery systems. Technology
advancements have certainly changed the
way we do our banking, and tonight I’m excited to share with you some of
the initiatives we implemented last year, and some of the initiatives we’re
currently working on.
Mobile banking is extremely popular and continues to evolve. Over
6200 members are registered to use MSCU Mobile, and an average of about 100 members a month sign up to use
it for the first time. In 2015, we added the convenience of mobile deposit and mobile bill pay. Mobile deposit has
revolutionized the way we deposit checks by allowing you to take a picture of a check using your phone and submit
it for deposit whenever you want and wherever you are. If you use our online bill pay service, MYCUBillPay, you
can pay your bills with your mobile device as well as your personal computer. In 2016, we’ll continue to look for
ways to enhance mobile banking, including online loan and deposit applications and Apple Pay.
2015 was another big year for merchant data breaches. Data breaches occurring at retailers and online
merchants represent a significant cost to the credit union and tremendous inconvenience to members. In 2015,
we implemented EMV chip credit cards to help combat these breaches. EMV chip enabled transactions are more
secure than traditional magnetic stripe transactions. The microprocessor in the card adds dynamic data to each
transaction and changes with each use. This year, we’ll be implementing EMV chip debit cards with the same
secure characteristics.
We’re always looking for ways to make your banking more convenient. Later this year, we’ll be implementing
an electronic signature program called DocuSign. DocuSign will allow you to sign membership applications, loan
applications and other documents securely and electronically from the comfort of your home or office, eliminating
the hassle of printers, scanners or fax machines.
Prospective members expect to have the
ability to open accounts completely online.
Today members with online banking can open
additional share accounts once they’ve logged
on to Online Advantage, and Loanliner.com is
available for members to apply for consumer
and Visa credit card loans online. However,
anyone trying to open a new membership must come to a branch or download an application off our website, fill it
out and mail it in. This year we’ll start the implementation of an online account opening solution that will qualify a
prospective member for membership, verify identity, and allow the entire account opening process to occur online.
In closing, I’d like to thank our incredible employees who work hard every day to ensure that you receive
world class service. Most of all, I thank you, our members, for your loyalty and trust. We sincerely appreciate your
business and thank you for another successful year.
 I’d like to thank our incredible employees
who work hard every day to ensure that you
receive world class service.
golden road in millinocket
Mark Young
Senior Vice President, Chief Operating Officer
6
The credit union had
another strong year in 2015
despite the various highs and lows that occurred
in the national economy. During the year the
economy saw an improvement in the labor market
topsham
nationally and in Maine and consumer spending
strengthened. Interest rates remained lower
than expected by economists and this helped car and home sales. The lower rates were
welcomed by borrowers, but were disappointing to savers. Oil prices were volatile for much
of the year until the fall when we experienced a significant drop in the price for oil and
gasoline. The lower gas prices were a pleasant surprise to consumers, but it also caused
unease in the stock market as investors wondered if this meant the world economy was slowing and would adversely impact
the U.S. Compounding this fear was a concern that the economy in China was weakening and that this too would slow
growth in the U.S. economy. And in December, the Federal Reserve increased rates by a small amount. These influences
sent uneasiness through the stock markets and we saw volatility throughout the year. Eventually the Standard and Poor’s
500 stock market index settled in at a value that was similar to its value at the beginning of the year. Despite this backdrop,
we finished the year with $2.7 million in Net Income which resulted from our loan growth of 14.3% and membership growth
of 2.0%.
We finished 2015 with $365.3 million in total assets and we remain the largest credit union in Maine. Loan growth was
extremely strong as our balances grew by $24.8 million. The increase occurred across most loan types including mortgages
and auto loans. In order to meet this demand, we used the repayments from investments to fund loan growth. Since we
earn higher rates on loans than on investments, this approach improved interest earrings on the income statement. The
Allowance for Loan Loss increased during the year as a result from having higher loan balances, but it was a small change.
With respect to the liability side of the balance sheet, we saw Deposits increase
by $10.7 million to $317.8 million. Many members decided to place more of their
funds in short-term deposit accounts such as regular shares and money market
accounts. The Credit Union’s capital finished the year at $43.5 million and we
continue to be one of the strongest credit unions in Maine. We finished the year
with a net worth to total asset ratio of 13.5%, which was well above the ratio of 7%
that regulators consider well capitalized.
The strong lending and membership growth allowed us to generate
$2.7 million in Net Income. This was a very strong result, one of the best for
credit unions in Maine, and it provided resources to improve loan and deposit
products, member services and technology initiatives. Total Income improved
to $15.4 million compared to the prior year total of $14.9 million. Interest earned
on loans and investments were the largest revenue generators. In 2015, we
had $9.8 million in interest on loans, which was $837,000 more than the result
for the prior year. Investment earnings came in lower than the prior year since we used investment repayments to fund
loans. Total Operating Expenses were $10.8
million. The largest expenses were salaries and
benefits like many service organizations. These
expenses came in at $5.1 million and represented
47% of total operating expenses. The remainder
of operating expenses included loan servicing,
member service, technology, and the Provision
for Loan Losses. The Provision was slightly higher than the amount for the prior year, but it was expected given our loan
growth. The interest we paid on deposits, or Dividend expense, totaled $1.9 million. We are hopeful that the Federal Reserve
will continue to increase rates in 2016 so it will allow us to pay more to our members on their deposits.
As for the future, 2016 started off with a stock market correction with investors concerned with overseas economies and
the oil industry. We are hopeful that this is just a short-term market correction and that our economy will continue to grow.
senior
vp/cfo
report
 We finished 2015 with $365.3 million in
total assets and we remain the largest credit
union in Maine.
Duncan MacKellar
Senior Vice President, Chief Financial Officer
7
annual
meeting
minutes
• The 79th Annual
Meeting of the
Members of the
Maine State Credit
Union was held at
the Augusta Civic
Center, Augusta,
Maine, on March 21,
2015. The meeting,
which was preceded
by a dinner
attended by 402 members and guests, was called to order at
7:00 P.M. by Chairperson Cabana.
• Chairperson Cabana called upon Director Cusick for the
roll call of officers. It was ascertained, as a result of the roll
call, that a quorum was present and that we could proceed
with the official annual meeting. All Board members were
present with the exception of Rose Breton who was excused.
• A motion was made and seconded to dispense with the
reading of the Minutes of the 78th Annual Meeting. A vote
was taken and the motion carried.
• Chairperson Cabana welcomed everyone and gave a
summary of the Chairperson’s report. He stated the Board
of Directors volunteer their time to serve as trustees on the
members behalf. He recognized management and staff
for their hard work. He stated we are a member owned
cooperative and it is the board and staffs mission to provide
the members with a range of services, competitively priced
loans, safety for deposits, credit and debit cards, up to
date and first class member service. He stated we have
accomplished a lot over the past including: ROA of .74%, loan
growth 11%, net worth at an impressive 13.16%, implemented
Cash Back Checking, Visa Gift Cards and developed Ask
Auto, an app which lets you apply for an auto loan via your
smart phone. Chairperson Cabana stated he was proud of our
Cultural Initiative which has improved how our staff works
as a team. He also mentioned we were named one of the
“Best Places to Work in Maine” for the 3rd time in the past 4
years. In closing, Chairperson Cabana stated he was proud
of the accomplishments in 2014 and looks forward to an
outstanding 2015.
• Chairperson Cabana called upon Duncan MacKellar, SVP/
CFO to give the Financial Report. SVP/CFO MacKellar
welcomed everyone to the meeting. He stated the needs
of our members vary from savers wanting higher rates,
borrowers wanting lower rates and young members who want
the technology; and some want it all. All of these areas are
carefully taken into consideration as they are preparing the
budget each year.
• SVP/CFO MacKellar indicated we finished the year with
$354 million in total assets and this included $173 million in
loans. He indicated our loan team did an outstanding job
in 2014 and our volume increased by 11%. He also stated
investments ended the year at $160 million and noted that
was $9 million less than the previous year, as we used that
money to fund loans. He also stated we finished with a net
worth capital ratio of 13.16%, which is very strong.
8
• With respect to the Income Statement, SVP/CFO
MacKellar indicated we had $15 million in total income; an
increase of $1 million over the prior year. He stated strong
loan volume offset the decline in interest rates during the
year; expenses totaled $10 million, with salaries and benefits
constituting a large portion of expenses. He added that
dividend expense declined from the prior year and further
stated that the Federal Reserve’s policy to keep interest rates
low on loans so the economy improves, impacts the rates
we can pay on deposits but, nevertheless, our rates remain
competitive.
• SVP/CFO MacKellar stated in 2014 our regulators did not
require credit unions to contribute to the National Credit
Union reserve, therefore we saved more than $200,000
compared to the prior year. We finished the year with $2.6
million in net income; a very good increase from the prior
year. SVP/CFO MacKellar stated he believes the economy
should improve in 2015 due to job growth, lower oil costs and
other factors. He indicated this should help us to continue to
offer attractive rates and enhance services to the members.
SVP/CFO MacKellar stated he looks forward to another
strong year for the credit union and he thanked the members
for their continued support. He finished by introducing SVP/
CLO Deb Sparrow to present the Chief Lending Officer’s
report.
• SVP/CLO Sparrow started by stating that 2014 was a record
setting year in lending for Maine State Credit Union. She
thanked the loyal members and staff for their contribution
in the 11.1% increase in loans; which brought total loans to
$173.49 million at the end of December. She mentioned
that lending growth came from several areas, and indicated
mortgages had the greatest growth and consumer loan
activity was steady. SVP/CLO Sparrow stated we expanded
unsecured loans in 2014 to meet demand, and signature loans
can now be accessed through On-Line Advantage and our
All Purpose loans are now available in amounts up to $10,000
for qualified borrowers. SVP/CLO Sparrow indicated it is a
highly competitive lending market and touched on the rate
match program we implemented this year. She concluded
by stating management is proud of our professional lending
staff and of each employee who contributes to our lending
success by treating our members with care. SVP/CLO
Sparrow thanked our members and encouraged them to
consider allowing us the opportunity to help them with a loan
as this would directly contribute to the success of Maine State
Credit Union. SVP/CLO Sparrow introduced SVP/COO
Mark Young to present the operations report.
• SVP/COO Young stated one
of the most rewarding aspects
for working for a credit union is
serving our members. He stated
we listen to member feedback
to ensure we know what is
important to you. SVP/COO
Young went on to review some
of the credit union’s products
including Mobile Banking and
MSCU Mobile. He also stated we
are planning on implementing
Mobile Deposit in 2015, which
augusta statehouse
would allow you to take a picture of your check with your
phone and deposit it whenever you want, no matter where
you are. He also mentioned paying bills will also be
available through MYCUBillPay. SVP/COO Young stated
we still want to ensure great service to those who prefer
to do business in person or over the phone. He indicated
we upgraded our Touch Tone Teller product and have
implemented an electronic photo ID system which will
make in house business much easier. SVP/COO Young
discussed the various merchant data breaches we had in
2014 and the inconvenience to members and costs to the
credit union. He indicated we are working on changing
to EMV chip cards in the near future, and these types of
cards enable transactions to be more secure. SVP/COO
Young discussed the Shared Branching Network and
the fact that members can access their accounts at over
5000 participating credit unions across the nation. He
also mentioned the SURF ATM network which allows our
members to use over 230 participating ATMs in Maine,
surcharge free. In closing, SVP/COO Young thanked the
incredible staff who works tirelessly to provide members
with world class service. He also thanked the members for
their patronage and loyalty.
• SVP/COO Young introduced President & CEO Normand
Dubreuil. President Dubreuil welcomed everyone to the
79th Annual Meeting. President Dubreuil stated he was
extremely pleased to report that we are financially sound
with sufficient capital, good earnings and acceptable asset
quality. He stated, as you can see from the financials, our
trends are positive. President Dubreuil gave a brief history
of financial information dating back to when he started
with the credit union in 1985. He stated that bigger is not
always better, and in the financial sector it is important
to have controlled growth while not losing your identity.
He indicated we have been successful at adapting to new
trends and realities because of the members amazing
loyalty. He stated we strive to provide excellent service
to each of the members no matter what the needs are.
President Dubreuil indicated 2015 will be a year we
concentrate on increasing our membership and continue
the journey to redefine ourselves while staying true to
our core. He stated word of mouth is the best advertising
we have and encouraged the members to talk with
people they know about the benefits of MSCU. President
Dubreuil reiterated what Chairperson Cabana mentioned
about receiving the “Best Places to Work” in 2014. In
closing, President Dubreuil offered
his sincere thanks and appreciation
to the members and to the Board and
committees for their support and
loyalty. He also extended his sincere
thanks to staff and management for
striving toward success, maintaining
the highest standards, and looking after
the smallest detail to go the extra mile.
• President Dubreuil introduced
Audit Committee Chairperson Betty
Norton who proceeded to give the
Audit Committee Report. She stated
in 2014, the credit union’s Audit
Committee continued its role in reviewing the financial
state of MSCU. She explained that the responsibility of
the Audit Committee is to ensure that management and
staff follow all established practices and policies and
comply with governmental regulations. Chairperson
Norton indicated the committee meets a minimum of
bi-monthly. She indicated during the last audit cycle
our Director of Internal Audit performed the following
audits: ACH, Commercial Loan, SAFE Act, Corporate
Visa/Volunteer Expenses, Accounts Payable and Member
Services. She stated in addition to audits performed
by the internal auditor, the following reviews and/or
audits were performed or completed by external firms:
Consumer Lending, Information Security, Real Estate
Lending, Asset Liability Management, Bank Secrecy Act,
Information Technology, and Member Services. She
stated that the Audit Committee also oversees an annual
audit performed by an outside firm, MacDonald Page &
Co., LLC. She stated that they rendered an unqualified
opinion for 2013, finding all areas reviewed to be in
compliance with generally accepted accounting principles
and the 2014 annual audit is in process. She also reported
that the Bureau of Financial Institutions conducted a
safety and soundness examination of the credit union in
2014. In closing, Audit Committee Chairperson Norton
emphasized that safeguarding the assets of Maine State
Credit Union is our collective responsibility. She indicated
the committee could be contacted at any time with
questions or concerns. Audit Committee Chairperson
Norton also thanked members for allowing the Audit
Committee to serve them.
• Chairperson Cabana asked for a motion to accept the
reports of officers as they had been given. A motion was
made and seconded. A vote was taken and the motion
carried.
• Chairperson Cabana asked if there was any Unfinished
Business to come before the meeting. Director Cusick
stated that there was no Unfinished Business from the 78th
Annual Meeting to come before the meeting.
Chairperson Cabana asked if there was any New Business
to come before the meeting. There was no New Business.
• Chairperson Cabana called upon Director Joe Suga,
Chair of the Nominating Committee, to report the election
results. Director Suga indicated that there were three
open seats available on the Board of Directors, each for a
three year term. He noted that the candidates that were
nominated were Betty Norton, E. James Soucie and Mary
Zmigrodski. Director Suga stated that there were no
other members that requested an application for the open
seats; therefore, he instructed the Secretary of the Board
of Directors to cast one ballot for each nominee. Director
Suga stated that was the conclusion of his report.
• There being no further business to come before the
meeting, it was voted to adjourn at 7:35 P.M.
Respectfully Submitted,
Leonard Cabana, Chairperson
Rose Breton, Secretary
9
statement
of condition
assets
2015
2014
Loans to Members (net)
$ 196,658,736
$ 172,082,769
Monetary Exchange & Equivalents
2,439,515
2,374,345
Investments at Fair Market Value 147,803,867
160,387,449
Land & Building (net)
6,393,376
6,422,130
Other Fixed Assets
712,960
646,871
Other Assets
8,253,172
9,388,083
NCUSIF3,017,264 2,956,637
TOTAL ASSETS
$ 365,278,890
$ 354,258,284
liabilities
Shares (savings)
$ 115,583,695
$ 108,461,662
Share Drafts (checking) - Non-Interest Bearing
28,789,437
24,890,405
Advantage Checking - Interest Bearing
19,062,280
19,587,727
Cash•Back Checking 995,713
683,911
IRAs10,946,594 9,481,290
IRA Certificates
22,160,543
24,212,342
Share Certificates
62,988,722
68,987,855
Money Market
52,300,310
46,658,289
Clubs/HSAs4,938,511 4,129,937
TOTAL DEPOSITS
$ 317,765,805
$ 307,093,418
Other Liabilities
4,020,911
3,637,571
TOTAL LIABILITIES
$ 321,786,716
$ 310,730,989
Capital
Regular Reserves
$ 17,000,000
$
17,000,000
Unrealized Gain (loss) on Inv/EE Plans
(5,887,759)
(3,109,986)
Undivided Earnings
32,379,933
29,637,281
TOTAL CAPITAL
$
43,492,174
$
43,527,295
TOTAL LIABILITIES & CAPITAL
$ 365,278,890
$ 354,258,284
statistics
yearmembers
10
2015 25,548
2014 25,050
2013 25,146
2012 25,114
2011
25,067
201025,057
200925,172
200824,929
200725,087
200625,372
loans
investments
$198,343,105 $147,803,867
$173,498,440 $160,387,449
$156,159,914 $169,428,125
$142,642,548 $184,427,428
135,545,080
178,666,785
127,685,366 170,278,055
142,476,202 129,955,207
149,671,209 88,914,780
148,317,994 74,307,869
138,620,662 75,504,570
deposits
net worth
assets
$317,765,805 $49,379,933$365,278,890
$307,093,418 $46,637,281$354,258,284
$302,167,700 $44,060,795$346,023,699
$298,630,995 $42,436,992$343,738,235
286,656,197
40,897,837
329,073,661
269,969,818 39,768,231310,320,054
245,711,258 38,130,113284,964,310
212,010,064 37,111,682 249,873,185
197,411,327 36,028,710 234,339,737
190,354,551 35,186,665 226,791,149
statement of
income & expense
income Interest on Loans
$
Income from Investments
Other Income
TOTAL INCOME
$
2015
9,807,285
$
2,826,247
2,808,947
15,442,479
$
2014
8,970,760
3,158,821
2,799,290
14,928,871
expenses
Salaries & Benefits
$
5,051,323
$
4,690,477
Travel & Conferences
167,867
173,252
Office Occupancy
740,623
700,765
Office Operations
1,760,556
1,632,673
Educational & Promotional
245,766
268,179
Loan Servicing
676,104
610,659
Professional & Outside Services
936,505
880,400
Member Insurances
16,154
86,655
Operating Fees
71,277
67,276
Annual Meeting
26,022
22,044
Dues & Subscriptions
62,685
60,835
Provision for Loan Losses
982,383
925,142
Miscellaneous Operating Expenses
7,743
9,195
Contributions 33,44344,584
TOTAL EXPENSES
$
10,778,451
$ 10,172,136
Income (Loss) From Operations
$
4,664,028
$
4,756,735
Less: Gain (Loss) Sale of Inv.
14,988
0
Less: Gain (Loss) Disposal of Assets
7,500
0
Income (Loss) Before Dividends
$
4,686,516
$
4,756,735
Dividends Paid
$
1,943,862
$
2,180,251
Net Earnings
$
2,742,654
$
2,576,484
Joseph Suga
Treasurer
11
financial
graphs
in millions
$400
jordan pond
$350
$300
$250
Deposit Distribution as of 12-30-2015
Clubs 1.3%
$200
Drafts/HSAs 15.6%
$150
Shares 36.4%
$100
Individual
Retirement
Accounts 10.4%
2015 Totals
Assets: $365,278,890
Shares: 317,765,805
$ 50
Loans: 198,343,105
Investments: 147,803,867
2006
2007
2008
2009
2010
2011
2012
2013
2002
2014 Advantage
2015
Savings
(MMA) 16.5%
2004
Deposit Distribution as of 12-30-2015
Clubs 1.3%
Certificates 19.8%
Drafts/HSAs 15.6%
Shares 36.4%
Loan Distribution as of 12-30-2015
Individual
Retirement
Accounts 10.4%
Advantage
Savings
(MMA) 16.5%
Real Estate 48.6%
Certificates 19.8%
Consumer 39.4%
Loan Distribution as of 12-30-2015
12
Home Equity 3.0%
Visa 5.4%
Commercial Loans 3.6%
contribution
sponsorships
In 2015, we contributed to the following
non-profit organizations.
Alzheimer’s Association
Maine Medical Center
American Community Project American
Maine Women’s Fund
America’s Credit Union Museum
Maine General Health
Augusta Food Bank
Make A Wish Maine
Augusta Lodge No. 964
Mary Beaupre Sustainable Garden Fun
Betsy Ann Ross House Of Hope
Messalonskee High School
Cara
Mid-Maine Technical Center
Children’s Discovery Museum
Muscular Dystrophy Association
Cony Project Graduation
Muskie Community Center
Crisis & Counseling Centers
Pine Tree Society
Donation Childrens Discovery Museum
Sexual Assaul Crisis & Support Cent
Donation Macdonald Benefit
Somerset Bowhunters
Food For Thought Backpack
Program
South End Teen Center
Free Me From Lung Cancer
Taconnett Falls Chaper
Friends Of The Belgrade
Public Library
Friends Of The Kennebec
River Rail
Gardiner Area High School
cadillac mountain
Gardiner Library Association
Good Shepherd Food Bank
Good Will-Hinckley
Hall Dale Youth Basketball
Hospice Volunteers Of Waterville Ar
Kennebec Behavioral Health
Kennebec Land Trust
Kennebec Valley YMCA
Spirit Of America Foundation
The American Legion
The American Lung Association
The Barbara Bush Children’s Hospital
THE SALVATION ARMY
The Viles Arboretum
Tom Connors
Travis Mills Foundation
Waterville Senior High School Boys
Watervillie Housing Authority
Winslow Athletics
Winslow Community FCU
Winslow Project Graduation 2015
13
ending hunger
campaign
For the past six years we have have been the largest fund raiser for the Maine Credit Union Campaign for
Ending Hunger, which is now in its 26th year. Throughout the year, we hold many of our own events including
our Annual 5k Walk/Run to End Hunger which takes place in the spring, as well as the Heart and Humor
Harvest Auction that takes place in fall.
amount raised
80,000
71,936
70,000
60,000
50,000
40,000
44,256
44,264
2013
2014
39,011
30,000
20,000
10,000
0
2012
2015
Maine State Credit Union thanks everyone who
participated and helped raised funds in 2015.
corporate sponsorships
We are also excited to announce that for the first time we had several corporate sponsors for our 10th Annual
walk/5k event.
Ruby Sponsors ($1,000)
Maine Credit Union League
Cayer Security
Gray Brothers Ground Care
Lohmann
Emerald Sponsors ($500)
14
Tricorp Federal Credit Union
wild maine blueberries
bar harrbor
The names of twenty-two high school seniors, who each received a
scholarship of $1,000 from Maine State Credit Union toward their postsecondary education, were announced in May of 2015. The high school
students submitted scholarship applications, including an essay outlining
what education means to their financial
future and a letter of recommendation,
to be considered in the early spring.
Applications were carefully reviewed by the Maine State Credit Union
Scholarship Committee and the following were selected:
2015 scholarship
winners
Abigail Farrin
University of New England
Chemistry
Kiley Drummond
University of New Hampshire
Pre Veterinary Medicine
Bailey McCaffery
University of Maine
Nursing
Paige McGlauflin
Emerson College
Journalism
Eli Trask
University of Maine Augusta
Jazz and Contemporary Music
Wesley Lapointe
Quest University
Photojournalism
Emily Higgins
University of Vermont
Physical Therapy
Bryson Camp
University of North Carolina
Environmental Health
Grace Brochu
Eastern Maine Community College
Liberal Studies
Dakota Carter
Springfield College
Health Science/Physician Assistant Program
Halee LaPlante
Thomas College
Communications and Public Relations
Emmett DeMaynadier
Colorado College
Biology or Environmental Studies
Hannah Madore
Bryant University
Finance
Austin Johnson
Maine Maritime Academy or University of Maine
Engineering
Jacob Young
Rochester Institute of Technology
Software Engineering
Nicolas Labun
Eastern Maine Community College
Building Construction
Jordan Pelletier
Undecided
Civil Engineering
Sydney Partridge
St. Joseph’s College
Nursing
Kaitlyn Sutter
University of Vermont
Nursing
Liam Stokes
University of Maine
Business or Pre-Med
Kevin Frankhauser
University of Maine
Forestry
Tyler Tardiff
University of Maine
Psychology
15
products &
services
deposit
service
Share Accounts (Savings)
Advantage Savings (MMA)
Certificates (Shares and IRAs)
Monty Moose Youth Savings Program
CU Succeed Teen Program
Individual Retirement Accounts (IRAs)
• Traditional
• Roth
• Coverdell Education Savings Account
Share Draft Accounts (Checking)
CashBack Checking
Advantage Checking
Free4Me Checking - 18-25 year olds
Health Savings Accounts (HSAs)
Club Accounts
• Christmas
• All Purpose
loan services
Collateral Loans
• New and Used Auto
• Recreational Vehicle (Boat, ATV, Camper,
Trailer, Jet Ski, Snowmobile, etc.
• Motorcycles
Share Secured Loans
First and Second Mortgages
Home Equity Loans & Lines of Credit
Signature Loans (Personal Loans)
All Purpose Loans
Overdraft Protection Loans
Indirect Lending
Pre-Approved Loan Drafts
convenience services
Visa® Check Cards (Debit Cards)
Visa® Credit Cards (Gold and Classic)
Touchtone Teller (Audio Response)
Wire Transfers
Online Advantage (Online Money Manager)
MSCU Mobile
• Mobile Deposit
• Mobile Bill Pay
Shared Branching
CUe-Statementsm (Online Statement)
Online Loan Applications
MyCU BillPay (Online Bill Paying Service)
eAlerts
insurances
Loan Protection Insurance
Credit Disability Insurance
AD&D Insurance
(Accidental Death & Dismemberment)
Credit Card Life & Disability
other services
Payroll Deduction
Direct Deposit
Money Orders
Traveler’s Checks
Visa® Gift Cards
TDD (Telecommunications Device for the Deaf)
Medalion Signature Guarantee Services
Night Depository
Drive-Up Services
Notary Public
24-Hour Statewide, No-Fee ATM Access (SURF)
Tellers Checks
Extra Awards (Credit Card Loyalty Program)
Loan Payment Origination
member financial
education
Debt in Focus
FoolProof
16
lupine
volunteers
& staff
board of directors
Leonard Cabana Betty Norton Joseph Suga Thomas Cusick E. James Soucie Mary Zmigrodski Amy Bouchard
Chairperson
Vice Chairperson
Treasurer
Director
Director
Director
Director
audit committee
Betty Norton Roland Maheux
Mary Zmigrodski Chairperson
Committee Member
Committee Member
administration
Tucker Cole
President/CEO
Mary Dolan Sales & Service Development Coordinator
Stacey Dow Executive Assistant
Angela Harvey Director of Human Resources
Jennifer Roper
Director of Marketing
Adam Kavanagh
Risk Manager
accounting department
Duncan MacKellar Rita Briggs Mary Cray Michelle Haskell Matt Sivret
Senior Vice President/CFO
AVP of Finance
Accounting Clerk II
Accounting Clerk II/Payroll Clerk
ACH/EFT Clerk
card services
Rebecca Miner Lisa Douin Erika Bryant Card Services Representative II
Card Services Representative
Card Services Clerk
collection department
Anthony Geroux Kassie Gagnon
Collection Manager
Collection Clerk
operations/information systems
Mark Young
Senior Vice President/COO
Sherry Nadeau Operations Manager/ISO
Hugh Rowley
Information Systems Administrator
Keith Stevens
Asst. Information Systems Administrator
Nathan Raynes Information Systems Support Technician
Federico Genovese Operations Specialist/BSA
Noel Brown Facilities and Security Manager/Security Officer
Matthew Lincoln Facilities Technician
Juliana Spier
Operations Assistant
loan department
Deborah Sparrow Lucie Dumond Heather Ryan Todd LaPlante Teresa Gagne Brie-Anne Mellor Cara Madore Senior Vice President/CLO
AVP of Lending
Senior Loan Officer/Mtg Supervisor
Mortgage Loan Officer
Senior Loan Officer/Indirect
Loan Officer
Loan Officer
Amanda Crommett
Shane Abbott Deborah Bachelder Jessica Nelson Noah Stevens Loan Officer
Indirect Loan Officer
Loan Servicing Representative II
Mortgage Loan Processor/Servicer
Loan Servicing Representative I
member services department
Cynthia Barnes AVP of Member Services
Lavetta Denson Member Experience Manager
Kim Pare Member Service Representative
Susan Kaplan Member Service Representative
Emma Quirion Member Service Representative
Claribel Henry Member Service Representative
Shelley Rowe MSR/Certified IRA Professional/Br Loan Officer
Jennie Charleston Receptionist
Meredith McGrath Member Service Representative
Maggie Philbrick Member Service Representative
teller department
Jill Michaud Martha Monroe Hans Niederer Jason Petrie Madison Purdy
Cynthia Ferguson
Kim Brown
Larissa Viens Dan Emery
Paige Plummer
Lucas Henderson Christina Marquis
Shermaine McDonald
Teller Supervisor
Assistant Teller Supervisor
Certified Teller II
Teller II
Certified Teller
Certified Teller
Certified Teller
Teller
Teller
Teller
Teller
Certified Teller
Teller
east side branch
Louise Poulin Faye Tibbetts Megan Hughes
Rebecca Pullen
Tanya Quigg
Catherine Ladd Branch Manager
Assistant Branch Manager
Certified Teller II
Certified Teller
Certified Teller
Teller
greater waterville branch
Jeanne Moreau Hollee Rossignol Michele Bates Nikki Theobald Ann Conner
Amy Poulin
Sharon Mantsch
Miranda DeRocher Victor Clark AVP/Branch Manager
Assistant Branch Manager
Member Services Representative
MSR/Loan Servicing
Certified Head Teller
Certified Teller II
Certified Teller
Teller
Teller
moosehead lake
main office
200 capitol street | augusta
207-623-1851 | 800-540-8707
hospital street branch
162 hospital street | augusta
207-621-6060
www.mainestatecu.org
Federally Insured by NCUA
greater waterville branch
81 grove street | waterville
207-873-5159