commitment - NorthCountry Federal Credit Union

COM MI TM E N T
2012 Annual Report
br a n ch l ocati o n s
■ South Main Street
Alburgh
■ Airport Road
Berlin
■ North Avenue
Burlington
■ Center Street
Lyndonville
■ East Main Street
Newport
■ Water Street
Orleans
■ Lower Mountain View Drive ■ Swift Street
Colchester
South Burlington
■ Carleton Boulevard
East Montpelier
email: [email protected]
Call toll free: (800) 660-3258 www.northcountry.org
Federally insured to at
least $250,000
“Desire is the key to motivation, but it’s
determination and commitment to an
unrelenting pursuit of your goal—
a commitment to excellence—that will
enable you to attain the success you seek.”
—Mario Andretti
Wherever you go, we’re there.
Our staff has volunteered and participated at the
Chittenden County Humane Society’s Walk for the
Animals for several years. Thank you to our friends
at CCHS for helping our community’s pets find new
homes.
Alburgh’s only financial institution permanently
closed on a Friday, and NorthCountry’s mobile branch
rolled into town on Monday, opening accounts and
serving members until the permanent branch was
ready for occupancy.
Alburgh’s permanent branch opened in April and
showed steady growth through the end of 2012.
NorthCountry is a proud sponsor of Girls on the Run,
a running program dedicated to creating self-esteem
in girls. Our staff volunteered at the annual 5k at the
Essex Fairgrounds.
The East Montpelier branch hosted its first “Shed
and Shred” to benefit the Central Vermont Humane
Society. People were invited to bring their documents
for shredding, with donations going to CVHS.
Adoptable animals were on-site to greet guests.
The Newport branch opened in late October,
providing people in the area with a full slate of credit
union products and services.
Thousands of runners and volunteers participated in the 2012 Girls on the Run 5k.
NorthCountry was proud to be a return sponsor.
Report of the CEO and Board Chair
NorthCountry experienced an historic transition in 2012, when CEO
John Benoit retired after 30 years of distinguished service and EVP Bob
Morgan was promoted to the position. When selecting the new CEO,
the Board of Directors weighed the experience, leadership style, and
vision of candidates identified during a nationwide search. In the end,
the Board selected Morgan as the candidate best qualified to retain
NorthCountry’s internal culture and keep it on a path of controlled
growth and service to members.
During the transition, the out-going and in-coming CEOs worked
together to add two locations to NorthCountry’s branch network. While
other financial institutions were shuttering their doors and cutting costs
by reducing service, NorthCountry successfully bucked the trend.
The first new site, in Alburgh, was an unexpected opportunity that
occurred when the town’s only bank announced it was closing, leaving
the community without a financial institution. After being turned down
by two other financial institutions, Alburgh’s Find a Bank Committee inquired as to
whether NorthCountry would consider opening an office in Alburgh, and finally
received the affirmative answer they had been seeking. The departing bank closed for
the last time on a Friday, and on the following Monday, NorthCountry’s full-service
mobile banking unit (a retrofit recreational vehicle) was on site to open accounts and
help people with the transition. The permanent branch was renovated and opened
a few weeks later. We are proud to be the financial institution that recognized
Alburgh’s right to have a place to conduct their financial business.
The second branch, in Newport, was NorthCountry’s next step in expanding
service in the Northeast Kingdom. Our two other Northeast Kingdom branches—
in Lyndonville and Orleans—had shown solid growth year after year, making the
Newport branch a natural extension. Prior to our entry into the market, the Newport
community was home to a few banks and small credit unions, but it lacked a fullservice credit union with NorthCountry’s capabilities. The site opened in its new
building in late October, and had acquired 400 members, over $3 million in funds,
and $1.2 million in loans by the end of 2012.
To support our growth, we promoted and hired several employees in 2012,
bringing our total number of staff to over 100 for the first time. During a time when
many people are insecure about their employment, we are proud to be an employer
who successfully added well-compensated positions in the communities where we do
business. While our numbers have increased, we have maintained efficiency—serving
more members per employee than our average peer—without sacrificing service.
The 2012 election for NorthCountry’s Board of Directors resulted in a balance
of existing and new talent. These dedicated volunteers represent the interests
of all members by molding the strategic plan, ensuring efficient operation, and
verifying business is performed in a manner compliant with government regulations.
Regulatory compliance—an area of increasing complexity—is overseen with
support from the expanded Supervisory Committee and key on-staff compliance
professionals. We are pleased that through our efforts, our internal and external
audits and controls yielded solid results.
Our core values support our commitment to our members, the community, and
the future. We refer back to them when making decisions and prioritizing projects.
With so many directions from which to choose, we believe that using member service
as our North Star will ensure we remain faithful to our mission and vision.
Your credit union is governed by local volunteers and owned cooperatively
by its accountholders. Your Board of Directors and management team welcome
and encourage feedback from members, and thank you for contributing to
NorthCountry’s continued success.
Charles J. Roumas
Board Chair
Robert Morgan
CEO
A
b
Commitment to Members
F
or over 100 years, credit unions have provided people in the United States
with a safe option for saving and borrowing money at reasonable rates. Credit
unions consistently rank above traditional banks for their quality of service,
because they answer to their accountholders and volunteer boards of directors,
instead of—as their traditional bank counterparts—to outside stockholders and
paid boards.
In 2012—for the second time in three years—NorthCountry was rated #1
nationwide for “Return of Membership” by Callahan & Associates, a national
analytics firm. Being at the top of the list means that of over 300 similarly sized
credit unions that participated in the project, NorthCountry’s members received
the best value for their patronage. We are proud of this accomplishment, and will
continue to let our decision-making be guided by the interests of our members
because ultimately, we work for you.
Our primary commitment will always be to our members. Every day, everyone at
our credit union—from the tellers to the CEO—is on a mission to identify and
explore opportunities to improve products, take service to the next level, and
increase the value our members gain by choosing NorthCountry as their primary
financial institution. As a not-for-profit financial cooperative, it is our mission to
provide our members with the best service and value possible.
As we look to the future, we envision a dynamic and visionary credit union,
committed to providing members with the ultimate financial experience,
whether through a new app, a redesigned product, or the next big technological
breakthrough. We also see ourselves continuing to extend help to members
outside our walls, by working with respected local non-profit organizations on
projects designed to bring about financial stability, such as home buyer workshops,
individual development accounts, and loans specially tailored for members facing
adversity. We believe working for the financial betterment of our members is our
surest path to continued success.
c
D
Commitment to Community
O
ur commitment to the community is so significant we formally incorporated
it into our strategic plan for 2013. NorthCountry belongs to its members,
and our commitment naturally extends to the communities in which they live.
Our decisions and actions regarding support for the community are guided by
the potential impact of our support—whether financially or with volunteers—and
the likelihood of a long-lasting improvement resulting from our help. Our largest
contributions are reserved for non-profit organizations that address education,
homelessness, hunger, and other hurdles people face while trying to gain financial
stability.
In 2012, we engaged in our biggest community partnership to date, with the Greater
Burlington YMCA. We made the decision to support the Y’s youth programs with
a significant financial contribution to help ensure its programs remain accessible to
families who need them, regardless of their ability to pay. As the State of Vermont’s
largest childcare provider, the Y feeds, educates, and nurtures children through
programs in five different counties within NorthCountry’s field of membership. The
Y’s youth programs make fun summer camp experiences within reach for families
experiencing financial hardship, and can help pay daycare costs for families who
need it but can’t afford it. The positive experiences children gain while participating
in the Greater Burlington Y’s programs can produce lifelong benefits. We are pleased
to support the Y’s efforts.
a NorthCountry’s team competed in Newport’s bed
races at the annual week-long Aquafest festival.
b A group of NorthCountry employees volunteered
to help at the Greater Burlington YMCA’s annual
cleaning.
c The Greater Burlington YMCA is Vermont’s largest
child care provider, and offers children lessons and
summer camp experiences, regardless of their families’
ability to pay. NorthCountry is the organization’s
Community Partner. Here, NorthCountry staff pose
with Mary Burns, President/CEO of the Greater
Burlington YMCA.
d Our swashbuckling crew at Aquafest in Newport!
No worries—our pirates are sworn to protect your
treasure.
A Message from the
Supervisory Committee
T
A
b
Commitment to the Future
T
o be our members’ life-long financial institution of choice, we must remain
relevant by continually identifying and addressing our members’ needs. We
do this by providing our members with multiple channels by which to tell us what
we’re doing well, and where we have room for improvement. The feedback we
receive from our members is reviewed for recurring themes, and when strategically
significant, incorporated into our strategic plan.
Although people embrace the remote capabilities of our website and mobile app,
we realize that people place great value on the opportunity to visit a branch in
person when desired. To address that demand, we continue to seek opportunities
to open new offices. In 2013, we expect to open a new branch on North Avenue
in Burlington—the ninth branch in our network. We expect branch expansion to
continue while we strive to provide northern Vermont with more convenient access
to NorthCountry’s services.
We have also received feedback regarding a dividend-bearing share draft account.
After researching options, we believe we have identified a share draft account that
will provide our members with the features they want, plus—in NorthCountry
fashion—a few extra ones that are innovative and unexpected. If all goes according
to plan, the new account will debut in late 2013.
Our members are our greatest source of inspiration when we envision the
possibilities the future holds for NorthCountry. We will continue to rely on you to
help choose our direction and define our success.
a NorthCountry sponsored a tournament at the
Burlington Country Club to benefit the Greater
Burlington YMCA’s youth programs.
b Nearly 40 staff volunteers participated in 2012’s
Making Strides Against Breast Cancer at Dorset Park
in South Burlington. NorthCountry is the organization’s Hope Sponsor.
he charter of NorthCountry Federal Credit Union Supervisory Committee is
to safeguard the assets of the credit union and to protect the interests of our
members. The committee met those obligations by collaborating with the Board of
Directors, Senior Management, the internal auditor, external auditors, and the National
Credit Union Administration (NCUA) to ensure fulfillment of our fiduciary and control
responsibilities and to advocate for our members.
The Supervisory Committee continued to safeguard member assets during the
prior year by providing for:
■T
he annual audit and opinion of the
credit union’s financial condition in
conjunction with the accounting firm,
A.M. Peisch & Company LLP, Certified
Public Accountants.
■T
he audit and verification of members’
accounts as required by NCUA
regulation.
■ Internal audits and monthly reviews of
credit union compliance with established
policies, federal regulations, and sound
financial practices.
■S
pecial audits requiring external
technical assistance, such as in the area
of information technology.
■R
epresentation at the Board of Directors
meetings, conveying any concerns or
recommendations of the committee.
■T
he thorough and impartial research,
analysis and resolution of member
complaints in coordination with the
NCUA.
NorthCountry’s operations were consistently healthy and well managed throughout
2012. The Board of Directors and the management team have established and
maintained effective plans, policies, and internal controls to achieve the credit union’s
financial, as well as safety and security, objectives. In spite of the slow and ongoing
recovery in the overall economy, the credit union’s performance continued at a
level indicative of a healthy, vibrant, well managed organization. Further, the credit
union adapted well to comply with a multitude of new federal regulations as that
environment continued to evolve. To that end, the Board of Directors has increased
the Supervisory Committee membership from three to five members.
The Supervisory Committee, working closely with the management team, the
internal auditor and the external audit firm throughout the past year, confirmed
operational performance met the standards and practices that conform to federal
guidelines for a sound financial institution. Further, the NCUA continued to express
confidence in the leadership and financial performance of NorthCountry by giving
the credit union an excellent rating in the last examination.
Francis Taginski
Supervisory Committee Chair
the Shed & Shred in East Montpelier
A
b
Volunteer Officials
Board of Directors
Charles Roumas, Chair
Bill Cimonetti, Vice Chair
Frank Thompson, Secretary
Bruce Towne, Treasurer
Kathy Sweeten
Steve Kirby
Financials
Assets
Loans Outstanding
Shares, Checking, MMSAs, IRAs
Share Certificates
Gross Income
Members
Reserves
Dividends
a A kitten from the Central Vermont Humane
Society makes at new friend at the East Montpelier
branch’s Shed & Shred event.
Nominating Committee
Steve Kirby
Charles Roumas
Bruce Towne
Supervisory Committee
Francis Taginski, Chair
David Cannamela, Secretary
Steve Kirby
Phil Provencher
Teresa Kajenski
20122011
413,846,195 350,083,645
315,547,780 270,659,108
225,432,537 179,070,939
143,306,965 130,006,595
18,316,852 16,794,879
28,930 25,941
33,322,812 31,489,309
4,610,011 4,111,454
b NorthCountry was represented at Thunder Road
by Cody Blake, driving the #99 car. Here, the car is
parked on Main Street in Barre during the annual
car show.
NorthCountry Federal Credit Union serves all of northern Vermont’s counties:
­Addison, Caledonia, Chittenden, Essex, ­Franklin, Grand Isle, Lamoille, Orange,
Orleans and Washington. If you know of a non-profit ­community project that
­benefits this area, consider ­submitting a grant ­request. For more infor­mation,
­contact the credit union.