2015 Annual Report - the Hartford Healthcare Federal Credit Union

2015
4 Wethersfield Avenue
Hartford, CT 06114
860-547-0027
www.hhcu.org
Branch Locations:
Hartford Hospital
85 Jefferson Street
Hartford, CT 06111
860-545-3176
Hartford HospitalNewington Campus
181 Patricia M Genova
Newington, CT 06111
860-677-5202
ATM Locations:

HHFCU Main Office

Citgo, Farmington

Hartford Hospital Cafeteria


Hartford Hospital—Newington
Campus
Institute of Living, Donnelly Building,
Hartford

Clinical Lab Partners, Newington

Hebrew Healthcare, West Hartford

Riverside Health & Rehabilitation
Center, East Hartford

African City Supermarket,
Hartford

Batterson Park, Farmington

CT Children’s Medical Center, 
Hartford, Ambulatory Entrance

CT Children’s Medical Center,

East Hartford


CT Children’s Medical Center,
Sandoval Grocery, Hartford
The Shack, Manchester
Super Convenience Store, Manchester

Windham Hospital, Willimantic

William W Backus Hospital, Norwich
Annual
Report
Staff
President’s Report
When our founders created the Credit Union 61 years ago it
was with the guiding principles and values of cooperation.
Cooperatives have been around in Europe since the 1800’s.
This Credit Union is a not-for-profit cooperative that is
owned by its member-owners, was formed by members
pooling their resources and making loans to others in the
cooperative so they could have a brighter future. Borrowers
paid back the loans with interest-helping the cooperative
grow stronger. They also operated on the principle of one
member/one vote, holding democratic elections for the
board of directors to serve as their voice in the Credit Union.
There are other cooperatives that you may be familiar
with- REI, Sunkist Growers Inc., Ocean Spray, Land
O’Lakes, Cabot Cheese and Ace Hardware- just to name a
few. These are well known cooperative/companies, just like
Credit Unions are. We all have the same 7 guiding
cooperative principles:
Voluntary and Open Ownership- We are open to all people
in the healthcare field in Hartford, New Haven and
Middlesex County without race, religion, social or political
discrimination. As a member, you may utilize the Credit
Union’s services and may leave at any time. To date we have
over 11,000 members.
Carol Bayreuther, President/CEO Democratic Member Control-One member/One vote. It is
at this annual meeting that ALL members can vote during
the election process for the new board of directors who represent the full membership. These
individuals are all volunteers and not paid like their counterparts in the banks.
Member’s Economic Participation- Member owners contribute to the capital of the co-op. Dividends are
paid for share accounts and certificates. Some of the profits are returned in the form of new serviceslike the P2P program and the Remote Deposit Capture that was installed this year, allowing more
convenience to accounts.
Autonomy and Independence- HHFCU is autonomous and a self- help organization controlled by you- our
members. We do partner with outside organizations but only for the purpose of providing products/
services for your benefit. One of the most recent partnerships was with NEWTEK who can assist
business owners with business loans, web site development, insurance, payroll and other services
that all new and existing business need.
Education, Training and Information-education is provided to our members, staff and board in order to
contribute to their financial literacy. There are many educational resources on our web site, our board
attends various seminars and this year HHFCU will have completed a National course- FICEP that
will recognize ALL of the staff as Certified Financial Counselors. We are one of only two Credit
Unions that have included their entire staff in Connecticut. This coupled with our Low Income
Designation allows us to reach out for grants to offer even more education to our members.
Cooperation Among Cooperatives- We have been working with other Connecticut Credit Unions to provide
Financial Literacy Training to high school students. In the past five years, we have worked with over
20,000 students. This past year, we won several marketing awards from CULCT for our efforts to
better serve our members. We also belong to CO-OP which offers Shared Branching that allows you
to do transactions at other Credit Unions on your account at HHFCU. So if you are on vacation and
forget to do a transaction, you still can. They also offer over 35,000 surcharge free ATM’s throughout
the Country.
Concern for Community-Cooperatives work towards the sustainable development of our communities. The
Hartford Healthcare Credit Union has recognized outstanding healthcare employees through our
sponsorship with the Healthcare Heroes event for over 9 years. This year we ran the Special Olympics
Torch, we donated a ride on car to CCMC for their surgery Center, we supported and hired people
with disabilities through FAVARH and CW Resources, and many other events including Go Red For
Women and scholarships for the Nurses Association and The Black Nurses Association.
Carol Bayreuther, President/CEO
Alan Schumann, VP of Member Experience
Eric Berthel, VP of Strategic Outreach
Andrew Sylvester, Chief Financial Officer
Christine Apruzese, Director of Member Experience
Barabarajean Marshall
Jane Alicea
Penny Manganello
Dianne Blass
Jennifer Mehling-Rivera
Alex Bleicher
Phyllis Buccheri
Dolores Henderson
Destiny Jackson
Allison Landry
Suzanne LeBlanc
Shannon Pastizzo
Nilda Nieves
Iris Sanjurjo
Dan Skinner
Rosalyn Stevens
Thank you for your participation in this cooperative. It is a pleasure to be a part of this great cause with you.
Carol “B”
Carol Bayreuther, President/CEO
Board, Committee Members & Staff of HHFCU
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2015 Hartford Healthcare Federal Credit Union Annual Report
Page 11
2015 Hartford Healthcare Federal Credit Union Annual Report
Board of Directors
Chairman’s Report
It is with pleasure that I present the 2015 Chairman’s
report, which covers my first full year of serving as
Chairman, and more than 35 years as a Board Member.
This year was one of continued growth and change for
the Credit Union and our future could not be brighter.
We continued with some changes and enhancements to
the management and support staff and are pleased to
welcome our new talent to the organization. The Board
of Directors also saw some changes this past year with
us saying goodbye to old friends and welcoming new
ones. I say with complete confidence that the Credit
Union Board and Staff are made up today of some of the
finest people anywhere.
Raymond Kowalski, Chairperson
Michael Smith, Vice Chairperson
Bobbi McNeil, Treasurer
Sally Moore, Secretary
Zoe Ann Durkin
Scott Organek
Angel Rentas
Timothy Squires
The Credit Union had a busy year implementing
Raymond Kowalski, Chairman
additional technology upgrades, expanding its social
media presence, continuing the ongoing education of our staff and, for the first time ever,
opening its first business member account!
HHFCU Sponsoring Hartford Business
Journal’s Healthcare Heroes
Supervisory Committee
Timothy Squires, Chairperson
Mark Cesaro
Johanna Karbonic
Darlene Sawczysyn
Carol Wardell
All staff worked throughout the year towards completion of the CUNA Certified Credit
Union Financial Counselor program, which will allow the staff to provide an even greater
amount of financial assistance and advice to our members. Additional education
opportunities included staff attending the CULCT Annual Meeting, the CUNA
Governmental Affairs Conference and the CULCT Leadership Meeting. Members of the
Board attended the Health Care Credit Union Conference, where they had the opportunity
to network and share ideas with other healthcare specific Credit Unions from across the
nation.
The Credit Union continues its long standing practice of giving back to the community. We
sponsored and carried the Special Olympics Torch as it passed through Hartford, in
recognition of one of our own employees, who is a Special Olympian. We established an
annual “ride-on car” donation program to assist the Surgical Department at Connecticut
Children’s Medical Center. For 9 years running, the Credit Union has been a sponsor of the
Healthcare Heroes event in Connecticut and we have played a key role in the financial
literacy of kids throughout the state by participating in the Financial Reality Fairs. To date
we have worked with more than 20,000 kids.
With all of the other commitments, we were able to end the year 2015 with a positive income of $202,411.17. However, the strength of the Credit Union lies in our membership,
our Board of Directors and staff. On behalf of the Board, I congratulate the staff for a job
well done. Thank you for being a part of this great Credit Union.
Respectfully Submitted,
Rosalyn Stevens with HHFCU
Member Save to Win Winner
Page 10
Raymond Kowalski,
Chairman
2015 Hartford Healthcare Federal Credit Union Annual Report
Page 3
2015 Hartford Healthcare Federal Credit Union Annual Report
Minutes of the 2014 Annual Meeting
Treasurer’s Report
DATE: April 28, 2015
The Hartford Healthcare Federal Credit Union ended 2015 with a net income of
$202,411.17. This allowed the Credit Union to increase our net worth to 9.40%
compared to 9.16% for 2014.
We adhered to strong underwriting standards on our member loans and maintained
our delinquency ratio at 1.04%. The Credit Union saw an asset increase of 3.04% and a
loan growth of 4.63%. We did not have to fund the NCUA assessment as we had to do
the past five years.
Board Members present: Sally Moore, Raymond Kowalski, Zoe Ann Durkin, Bobbi McNeil,
Scott Organek, Angel Rentas and Michael Smith.
Also present: Carol Bayreuther, President/CEO
Absent: Mark Keise and Timothy Squires.
NCUA is our examining agent. They presented
a favorable report for 2015 with no identified
control issues. We anticipate an operating
gain in 2016 of $304,117. This steady increase
in income as well as enhanced services will
allow the Credit Union to better serve our
members.
Guests: Jill Nowacki, CEO Credit Union League of CT
Minutes:
Copies of the Annual Meeting for 2014 were distributed. A motion was made by Zoe Ann
Durkin and seconded by Scott Organek, to accept the minutes as presented. The motion
passed.
Reports of the Chairperson, Treasurer, Credit Committee, Supervisory Committee and President/CEO were accepted as presented.
Respectfully Submitted,
Zoe Ann Durkin motioned to accept the reports as presented. Michael Smith seconded. The
motion passed.
Bobbi McNeil,
Treasurer
HHFCU’s 5 Star Rating
by Bauer Financial
2015 HHFCU Assets
Old Business:
None.
New Business:
None.
Nominations for Board of Directors:
HHFCU Assets YTD
Bobbi McNeil, Chairperson of the Nominating Committee was asked to present the committee’s recommendations for the four, two year Board of Directors positions.
Assets
2015 Goals
Michael Smith, Sally Moore, Zoe Ann Durkin & Timothy Squires were presented as nominations from the Nominating Committee.
$37,000,000
36.541
$35,500,000
Nominations were asked from the floor. There being none, the final slate of officers was presented by the Nominating Committee.
Raymond Kowalski cast the one vote to accept the slate of officers.
34.683
$34,000,000
34.144
Presentations:
34.963
34.700
34.465
34.387
34.043
34.184
34.037
34.110
33.749
$32,500,000
The annual meeting of the Hartford Healthcare Credit Union was called to order at the Legislative Office Building, Hartford, CT at 6:00pm by Chairperson Raymond Kowalski. A quorum
was determined with 83 attendees. Mr. Kowalski introduced the Board of Directors, President/CEO, Committee Members, staff and special guests.
32.886
Jill Nowacki from the Credit Union League of CT spoke of the state of Credit Union’s and
HHFCU’s position.
Chairperson Raymond Kowalski and President/CEO Carol Bayreuther presented the 25 year
member awards.
HHFCU created “We Are” video was shown to all attendees.
$31,000,000
There being no further business to come before the Board, Chairperson Raymond Kowalski
adjourned the meeting at 6:40 p.m.
Respectfully Submitted,
Page 4
2015 Hartford Healthcare Federal Credit Union Annual Report
Page 9
2015 Hartford Healthcare Federal Credit Union Annual Report
Supervisory Committee Report
During the year, the Committee reviewed the National Credit Union
Administration (NCUA) Exam and employed the firm of Weinstein and
Anasatsio, Inc. to performed its internal audit for period ending September 30,
2015. Weinstein and Anastasio will also be performing additional agreed upon
procedures as a result of the NCUA exam report.
The Committee met five times during the year, reviewing the following: time
and attendance process; overdraft and negative accounts; credit/loan
concentration risk, travel expenses; bank reconciliations; employee,
committee and Board Loans; general ledger validation process; Board of
Directors attendance; financials; sick and vacation time accruals; as well as
year-end reports.
Based on these reviews and the Hartford Healthcare Federal Credit Union
records, the financial statements are in conformity with generally accepted
accounting practices and regulatory principals applied on a consistent basis
and fairly represent the position of the Credit Union.
Thank you to the members of the Supervisory Committee: Joanna Karbonic,
Devora Ginsberg, Carol Wardell, and Mark Cesaro for their service of the past
year.
Credit Committee Report
As of December 31, 2015, we had 1974
loans totaling $24,044,572.33.
During the year, the Credit
Committee approved $10,520,653.53
in new loans. The mix of approved
loans was 27.33% in signature loans,
21.21% in auto loans, 26.71% in home
equity loans and 24.75% in VISA’s.
The Credit Committee adhered to the
strict underwriting standards set by
the board and maintained a
delinquency rate of 1.04% at year end.
Alan Schumann,
VP of Member Experience
Respectfully submitted,
Alan Schumann,
VP of Member Experience
HHFCU’s Shares & Loans for 2015
Respectfully Submitted,
Timothy Squires, Supervisory Committee Chairman
HHFCU Shares, Loans YTD
Shares
'15 Shares Goal
Loans
'15 Loan Goal
$34,000,000
32.801
31.637
30.849
$31,000,000
29.673
30.916
31.128
31.399
31.394
26.443
25.491
25.077
25.115
25.015
30.726
31.134
30.406
30.743
$28,000,000
25.722
30.673
26.740
26.766
26.682
26.697
27.019
28.128
25.503
$25,000,000
$22,000,000
HHFCU Staff Training
Page 8
2015 Hartford Healthcare Federal Credit Union Annual Report
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2015 Hartford Healthcare Federal Credit Union Annual Report
Financials
Financials
HARTFORD HEALTHCARE FEDERAL CREDIT UNION
HARTFORD HEALTHCARE FEDERAL CREDIT UNION
December 31, 2015
Statement of Financial Condition
ASSETS
Loans
24,190,559.64
LIABILITIES
Loans- Visa
2,828,248.39
Accounts Payable:
27,018,808.03
Accounts Payable
Total
Less: Allow for Loan Loss
Net
Cash
Accts Receivable
(138,720.00)
26,855,333.21
Visa in Process
Operating Income:
Interest on Loans
Interest on VISA
39,335.71
3,936.50
Notes Payable
446,727.18
Insurance Payable
4,679.75
Dividends Payable
Investments:
Fed W/H Tax Payable
-
401K Payable
Income from Investment
Fees & Charges
Misc Operating Income
1,308.21
-
Taxes Payable:
Corporate
Overnight
December 31, 2015
LIABILITIES & EQUITY
Total Operating Income
Operating Expenses:
Compensation
Employee Benefits
570.00
2,043.01
Settlement
(477,102.19)
Other Payable
Alloya Permanent Capital
1,593,933.40
Accrued Expenses
57,301.76
CUSC Transactions
(14,488.59)
Travel & Conference
Association Dues
Office Occupancy
Office Operations
Computer
Business Development Expense
Debit Card Funding Account
Certificates & Securities
Security Disc/Prem
18,549.00
(24.99)
Education & Promotion
Loan Servicing
4,864,000.00
Total Liabilities
90,006.60
Accrued Income:
Outside Services
Provision Loan Loss
Member Insurance (NCUSIF)
Supervision/Exam
Accr Inc on Certs, Other
17,963.93
EQUITY
Accr Inc on Loans
65,098.98
Shares
19,096,771.04
Prepaid Expenses
54,695.30
Drafts
3,828,058.30
Annual Meeting
Clubs
2,517,879.10
Misc Operating Expenses
Certificates
4,187,256.47
1,504,144.84
Fixed Assets:
Software
1,673.19
Hardware
21,304.99
IRA's
Furniture & Equipment
42,304.26
Total Shares
Leasehold Improvements
Regular Reserves
Other Assets:
Undivided Earnings
Building
Building Improvement
Land
NCUSIF
TOTAL ASSETS
Page 6
48,877.33
256,926.38
50,000.00
Net Income QTD
31,134,109.75
495,412.25
2,770,177.80
-
Interest on Borrowed Money
Total Operating Expense
Income(Loss) from Operations
64,325.64
705,176.81
208,671.58
2,774,131.36
1,148,394.94
317,148.32
56,903.44
15,420.00
115,827.64
243,450.62
70,663.00
727.27
46,333.61
108,483.01
238,330.39
96,233.30
19.174.00
1,107.85
295.40
3,232.22
2,944.25
2,484,669.26
289,462.10
Non-Operating Gain(Loss)
Gain(Loss) Prior Year
Gain(Loss) on Investments
Gain(Loss) on Disp osalof Assets
Tot Non-Operating Gain(Loss)
Inc(Loss) before Dividends
Total Reserves
3,240,833.14
Dividends
Total Equity
34,374,942.89
Net Income (Loss)
289,462.10
(87,050.93)
202,411.17
TCCUSF / NCUSIF
300,009.77
34,464,949.49
Cash Over/Short
1,501,875.46
294,081.87
TOTAL LIABILITY &
EQUITY
34,464,949.49
2015 Hartford Healthcare Federal Credit Union Annual Report
Net Income (Loss) (excl Stabilization Exp)
Page 7
202,411.17
2015 Hartford Healthcare Federal Credit Union Annual Report