Report - Mid Hudson Valley Federal Credit Union

Credit Union Center
1099 Morton Boulevard
PO Box 1429
Kingston, NY 12402
845.336.4444 • 800.451.8373
www.MHVFCU.com
Federally Insured by NCUA
E
TE
A
V
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RS
LLE A
A I L A BL
ANNUAL
REPORT
2011
The Heart of our B R A N D
MHV
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BRAND AND MISSION STATEMENT
To anyone who lives, works, worships or attends school in Ulster, Dutchess or Orange
County, MHV is your trusted community credit union.
Our mission is to make your life easier by providing personalized and convenient
financial solutions, and a member experience driven by innovative technology,
reliable service, and easy access you can rely on.
Pictured Right: Thomas Fox, William A. Ryan, Joseph T. Aiello, Paul A. Pavlovich, Angelo A. Fasano 1st Vice Chairman, Gary E.
Anderson Chairman, Joseph Marino Treasurer, John Kelly Secretary
(Not Pictured) Gordon Craw 2nd Vice Chairman
MHV’s Brand Standards
Brand Standards are at the heart of MHV brand delivery. The six brand standards, in order of importance, empower staff
in decision making to consistently deliver the MHV brand. The brand standards are designed as a decision tree to guide
employees in day to day decision making.
The Brand Standards are listed in their order of priority:
SAFETY AND SOUNDNESS is MHV’s top priority, above all other standards. We are committed to providing a physically
safe environment for our staff and our members. We are also dedicated to maintaining the financial well being of the
credit union including capital and making sound financial investments.
COMPLIANCE governs all credit union activity as we work within a regulatory framework. All of MHV’s policies and
procedures satisfy a multitude of regulatory mandates.
CONFIDENTIALITY of members and employees private information is a high priority at MHV especially when the
consequences can lead to identity theft and fraud. We work diligently at maintaining your privacy which includes
demographic information, social security number, as well as account and credit behavior.
MEMBER EXPERIENCE is one of the main reasons why you continue to conduct your banking with us. We understand
it’s the little things like knowing our members by name and offering you a cup of coffee that make the biggest difference.
At MHV, our staff makes it a priority to treat you as you would like to be treated by your financial institution; with
courtesy and respect.
CONVENIENCE is how we fulfill our commitment to making your life easier with multiple locations, e-commerce, and
technology such as MHV’s exclusive 24/7 Personal Teller Technology which enables members to speak to a teller on their
time, anytime.
EFFICIENCY is how we make money and save money. Credit unions are unique in that we are in business for the
member. The more net profit we generate, the more we can give back in the form of better rates, increased services and
added convenience to you.
Chairman’s and President’s REPORT
Dear Valued Members,
We are proud to report that Mid-Hudson Valley
Federal Credit Union (MHV) remained very
strong in 2011 and fulfilled our mission, vision
and strategic objectives. MHV has operated
with a balanced scorecard for several years and
has remained on task to provide you with the
absolute best in member service and delivery.
Economic/Financial
In 2011 we continued to see our nation and our
community dealing with weak economic recovery
including modest GDP growth; not strong enough
to significantly reduce our unemployment rate.
Locally the story somewhat mirrored the national
scene, however there appeared to be a glimmer
of hope in the Hudson Valley. Industry sectors
such as distribution, green technology, food/
beverage, biotech, tourism, cinema production,
and data centers were the focus of the economic
development efforts in the region.
While interest rates began to track upward
modestly in the first half of the year, they
began to trend down again during the fourth
quarter. This was driven, to some degree, by
the Federal Reserve Board position in keeping
rates low through 2014.
Real Estate values began to stabilize
in our community, however there is
no forecast for an upward swing in
value for the near future. Consumer
confidence increased during the
last five months of 2011 to 75;
however when compared to prerecession levels at 87, we still have
a way to go.
Regulatory/Industry
In 2010 we reported that over 200
banks closed as well as many credit
b
unions. In 2011 there is a much more
u
positive story to tell about our industry
p
aand in particular the credit union
Gary E. Anderson
Chairman of the Board
segment. Deposits, loans (modestly), assets
and net worth (capital) all increased and are
forecasted to continue improving in 2012. MHV’s
asset quality (loan delinquency and loan charge
offs) also improved in 2011.
Under the Dodd Frank Act, the Consumer Financial
Protection Bureau (CFPB) is now responsible
for 14 consumer protection statutes and their
regulations, including: the Truth in Lending
Act (Regulation Z), the Real Estate Settlement
Procedures Act, the Truth in Savings Act and
the Electronic Fund Transfer Act (Regulation E).
These regulations are very complex, expensive
to implement, and come with unintended
consequences for the consumer. The Durbin
Amendment, for example, dramatically reduced
the interchange fees financial institutions earn on
debit card transactions; fees that help defray the
costs of the payment systems. This caused many
larger banks to implement other fees to cover this
loss in revenue. In turn the nation’s consumers
turned against large banks and a grassroots
movement was formed culminating in what has
been labeled as “Bank Transfer Day.” On Saturday,
November 5, 2011, consumers were asked to close
their relationships with large banks in lieu of credit
unions and community financial institutions. The
banks relented at the last moment regarding
additional fees but the credit union industry,
including MHV, significantly benefited from the
increased media coverage.
In spite of economic and regulatory challenges,
your credit union maintained an extremely sound
financial position with solid earnings, good
growth, and excellent capital. MHV also received
favorable audits and regulatory examinations,
as you will see reported in our Treasurers and
Supervisory Committee reports.
Member Service
Due to historically low interest rates, MHV
originated nearly $114 million in real estate
lending in 2011. In 2010 we originated just over
$90 million and in 2009 $114 million. Many of you
continued to take advantage of these low rates to
reduce monthly payments and/or to reduce your
loan term. New home purchases produced only
modest demand for mortgages in 2011.
Consumer lending continued to show weak
demand. Lower consumer confidence caused
many buyers to reduce their credit; curbing their
appetite for large purchases, including vehicles.
MHV continued to offer extremely competitive
rates as demonstrated throughout the year and
with several successful car loan sale promotions.
MHV credit card offerings were among the best
in the market and our private student lending
program showed great success.
The Mid-Hudson Valley Insurance Agency and the
MHV Investment & Retirement Center continued
to offer excellent options to our members under
the MHV umbrella of services.
Branches
We opened our Port Ewen Branch in May and
moved to our new branch facility in Middletown
in June. Both offices are environmentally friendly
and should qualify for LEED Certification. We also
broke ground on our new office in Newburgh,
located on Route 300. It will offer many new
services currently not available at our existing
office, including Drive-up 24/7 Personal Teller
service and safe deposit boxes. Look for our new
Newburgh office to open in the spring of 2012.
Technology
As promised in last year’s annual report, MHV has
delivered the very first Drive-up 24/7 Personal
Teller (PT) in the world with deployments at our
Port Ewen and Middletown offices. The Drive-up
24/7 PT offers all the same benefits as our lobby
PT but with the added benefit of convenience
and security while in your own vehicle. In the
later part of 2012 we anticipate these units will
also have the option of providing traditional ATM
service as well as teller assisted transactions.
This past year, we made a substantial investment
in our core technology. In 2010 we reported that
MHV had elected to change our core processor
with you, our member, in mind. The core system
chosen, OSI/DNA would provide a long list of
member facing benefits including these:
New Home Banking
and Bill Pay
Online New Account
Opening
FinanceWorks
Money Management
New EARS
Bank-by-Phone
Mobile Banking
New Streamlined &
Secured ID Process
SMS, Text , Apple & Android Apps
While our staff and partners worked diligently
in 2011 to deliver these new service benefits to
you this past fall, we determined that we could
not deliver all that we promised at that time. As
a result we rescheduled the conversion for March
of 2012.
Community
MHV and its staff continue to support our
community in many ways. We have been a lead
sponsor of the American Cancer Society Relay
for Life and the Juvenile Diabetes Research
Foundation. Other organizations we support
include the American Heart Association, United
Way, scholarships in our local community
colleges, and much more.
Summary
We maintain our commitment
ent to be
your primary financial institution
tution and
will continue to offer new services,
ervices, new
branches, and improve existing
xisting
technologies while we continue
ue to
strive to deliver exemplary member
mber
service to meet your financial
ial
needs. MHV has implemented
d
ongoing member surveys to
assure that we achieve these
objectives.
As always, we would like
to thank our employees
and volunteers who have
e
contributed to our strength,
th,
stability, and exceptional
performance during the
past year.
William L. Spearman,, CCE
President & CEO
Safety & Soundness
Pictured Right: Angelo A. Fasano, Christopher Corallo CCE, Joseph Marino Chairman,
William L. Spearman CCE, Paul A. Pavlovich, Wayne Winkler CCE, Joseph T. Aiello
Asset Liability Committee
Treasurer’s Report
While the economic climate in 2011 continued to
offer its challenges, Mid-Hudson Valley Federal Credit
Union (MHV) continued to maintain a safe and sound
financial position. As a cooperative, it is for the benefit
of our membership that we allocate resources to add
branch facilities and improve upon our delivery of
services.
The unemployment rate has recently declined to 8.3%,
a level that is still considered high, but improving.
This level of unemployment has also impacted our
membership at the local level. The credit union has and
continues to actively work with members to maintain
their homes and automobiles. We are proud of our
willingness and ability to help our members during
troubling times while protecting the assets of the
credit union. We have seen the results of these efforts
as our pr
provision for possible loan losses declined by
$1.7 m
million, or 46.1%, from 2010.
While
Whil strengthening, the economy is still
subject
subj to the effects of the financial crisis in
Europe
Euro as well as uncertainty in the Middle
East.
East Due to the current fragile nature of the
economy,
the Federal Reserve has noted
econ
that market rates may remain low until
the latter part of 2014.
In 2011
MHV increased total assets by
2
$32.5
$32. million or 4.6%. MHV grew in a
financially
sound manner, maintaining
nan
our capital ratio of 9.36%. Many
members
once again took advantage
mem
of the
th historically low loan rates by
refinancing
their mortgages resulting
na
in minimal
loan growth in spite of
m
signifi
sign cant loan volume. In 2011
MHV
MH originated $113.6 million in
residential
mortgages, $50.4 million in
res
Joseph Marino
Treasurer
consumer loans, and $24 million in member business
loans. Member deposits increased by $27.1 million or
4.3%. As the rates on loans have declined more than
the rates on deposits, MHV’s net interest margin has
declined. That challenge will persist in the current rate
environment.
Coupled with the economic challenges of declining
interest margins and a fragile economy, MHV
continues to comply with many new regulations that
were enacted as a result of the unsound financial
practices of many of the larger financial institutions
that contributed to the financial crisis in 2007. Credit
unions have been part of the solution and not part
of the problem. We continue to work with credit
union advocates voicing our concern with certain
requirements of the legislation that may not be in the
best interest of our membership.
MHV opened a new office in Port Ewen,
en, NY in
in May
May
and completed the re-building of its Middletown,
NY office in June of 2011. These offices
es have been
well received by membership. The building of
a new office in Newburgh, NY has begun
egun and is
planned to open in April of 2012. All three
ree of these
facilities offer 24/7 Personal Teller (PT)
T) service, a
service that no other financial institution
itution in
the Hudson Valley provides.
In 2012, MHV will be upgrading
ding its
technology systems including a new and
improved home banking experience
perience
as well as the introduction off mobile
banking. MHV will continue to look
for ways to improve the products
ucts and
services offered to our membership,
mbership,
providing reliable and easy access,
ss, while
maintaining the financial safety
ety and
soundness of the credit union.
Christopher Corallo
allo CCE
Chief Financial
al Officer
Retirement Announcement | Frank Jankowski
Frank Jankowski, MHV Board Member and Secretary, officially retired as of
November 30, 2011 after 25 years of volunteer service. Frank was appointed
to the Credit Committee in 1986, and then to the Supervisory Committee
in 1993. Frank was elected to the Board of Directors in 1997 and became
Secretary of the Board in 2006. It is with sincere appreciation that the Board of
Directors recognizes Frank for his service with MHV and is pleased to appoint
him Director Emeritus.
Mid-Hudson Valley FCU
Consolidated Statements of Financial Condition
For the years ended December 31, 2011 and 2010
(Dollar amounts in thousands)
Assets
Cash and cash equivalents
2011
$
Time deposits in other financial institutions
2010
45,945 $
32,349
-
500
Securities available for sale
Loans held for sale
180,002
4,523
168,116
6,692
Loans, net of allowance of $4,189 and $4,621
457,760
455,299
Accrued interest receivable
Federal Home Loan Bank stock, at cost
Loan servicing rights
2,377
650
1,585
2,426
638
1,801
Company owned life insurance
5,136
-
558
1,750
24,236
6,255
2,306
21,422
5,953
1,915
Real estate owned, net
Premises and equipment, net
NCUSIF deposit
Other assets
TOTAL Assets
$
731,333 $
698,861
$
78,696 $
574,872
10,258
663,826
65,371
561,105
7,706
634,182
Liabilities and Members' Equity
Liabilities
Members’ share accounts
Non-interest bearing
Interest bearing
Borrowed funds
Accrued expenses and other liabilities
TOTAL Liabilities
Members’ Equity
Statutory reserve, restricted
Undivided earnings
Accumulated other comprehensive income (loss)
TOTAL Members’ Equity
TOTAL Liabilities and Members’ Equity
$
12,446
56,107
12,446
52,940
(1,046)
(707)
67,507
64,679
731,333 $
698,861
Mid-Hudson Valley FCU
Consolidated Statements of Operations
For the years ended December 31, 2011 and 2010
(Dollar amounts in thousands)
Interest Income
Loans, including fees
Securities
2011
$
2010
26,618 $
4,313
28,544
4,110
32
30,963
36
32,690
5,482
5,482
25,481
6,771
2
6,773
25,917
2,014
3,739
23,467
22,178
5,665
5,883
Net gains on sale of loans
829
1,058
Net gains (losses) on sale of securities
201
117
(1,334)
666
6,812
6,273
12,082
11,438
Occupancy and equipment
5,924
5,257
Outside services
4,576
1,723
4,409
Other
TOTAL Interest Income
Interest Expense
Members' share accounts
Borrowed funds
TOTAL Interest Expense
Net interest income
Provision for loan losses
Net interest income after provision for loan losses
Non-Interest Income
Service fees and charges
Other
TOTAL Non-Interest Income
Non-Interest Expense
Compensation and employee benefits
NCUSIF assessments
Other
TOTAL Non-Interest Expense
Net Income
$
2,807
1,671
2,808
27,112
25,583
3,167 $
2,868
Mid-Hudson Valley FCU
Consolidated Statements of Cash Flows
For the years ended December 31, 2011 and 2010
(Dollar amounts in thousands)
Cash Flows From Operating Activities
Net Income
2011
$
2010
3,167 $
2,868
Provision for loan losses
2,014
3,739
Depreciation and amortization of premises
and equipment
1,757
1,583
319
241
(201)
1,334
148
-
(136)
-
594
(25)
(829)
(1,058)
Origination of loans held for sale
(34,220)
(46,966)
Proceeds from loans held for sale
37,218
46,580
Deferred loan origination fees
223
123
Accrued interest receivable and other assets
(70)
2,808
Accrued interest payable and other liabilities
579
1,139
10,563
12,366
500
-
6,106
17,963
101,577
93,645
(118,053)
(141,612)
Loan originations and payments, net
(5,205)
(7,762)
Purchase of company owned life insurance
(5,000)
-
889
546
(4,571)
(6,327)
(302)
(245)
(24,059)
(43,792)
27,092
32,751
-
(2,000)
27,092
30,751
Net change in cash and cash equivalents
13,596
(675)
Beginning cash and cash equivalents
32,349
33,024
Adjustments to reconcile net income to net
cash provided by operating activities:
Net amortization (accretion) of securities
Net realized (gain) loss on sale of securities
Impairment of mortgage servicing rights
Increase in cash surrender value of company owned
life insurance
Net (gain) loss on sale of real estate owned
Net gain on sale of loans
Net change in:
Net cash from operating activities
Cash Flows From Investing Activities
Net decrease in time deposits
Available-for-sale securities:
Sales
Maturities, prepayments and calls
Purchases
Proceeds from sale of real estate owned
Additions to premises and equipment
Increase in NCUSIF deposit
Net cash from investing activities
Cash Flows From Financing Activities
Net change in members’ shares
Repayments on borrowed funds
Net cash from financing activities
Cash and cash equivalents at end of year
$
45,945 $
32,349
Supplemental Cash Flow Information and Noncash Disclosures:
Interest paid
Transfers from loans to real estate owned
$
5,483 $
6,789
507
2,151
Mid-Hudson Valley FCU
Consolidated Statements of Changes in Members’ Equity
For the years ended December 31, 2011 and 2010
(Dollar amounts in thousands)
Regular
Reserve
Balance, January 1, 2010
Comprehensive income
Net income
Other comprehensive income:
$
Accumulated
Other
Undivided Comprehensive
Earnings Income (Loss)
12,446 $
50,072 $
(2,890) $
Total
59,628
-
2,868
2,868
available-for-sale, net of reclassification
-
-
1,566
1,566
Change in funded status of pension plan
Total comprehensive income (loss)
Balance, December 31, 2010
Comprehensive income
Net income
Other comprehensive income:
Change in unrealized gain (loss) on securities
available-for-sale, net of reclassification
Change in funded status of pension plan
-
-
617
12,446
52,940
(707)
617
5,051
64,679
-
3,167
-
3,167
-
-
1,634
(1,973)
1,634
(1,973)
$ (1,046) $
2,828
67,507
Change in unrealized gain (loss) on securities
Total comprehensive income (loss)
Balance, December 31, 2011
$ 12,446
$ 56,107
Retirement Announcement | Gordon Craw
Gordon Craw, MHV Board Member and Vice Chairman will officially retire as
of April 12, 2012 after 37 years of volunteer service. Gordon was appointed
as Secretary to the Supervisory Committee in 1975. In 1977 he progressed
to Chair of the Supervisory Committee and was elected to the Board of
Directors in 1988. Gordon was elected Treasurer in 1993 and remained in
that position through 1996. In 2009 he was elected Vice Chairman of the
Board and will serve in that position until his retirement. He also served on
the CUSO Board and the Planning Committee. It is with sincere appreciation
that the Board of Directors recognizes Gordon for his service.
Compliance &
Confidentiality
Supervisory Committee
Pictured Left: Stephen M. Swanson Chairman, Elizabeth Carr, John Kelly
(Not Pictured): Cynthia Herb
Supervisory Report
The Supervisory Committee is an essential part
of the credit union and is comprised of four
volunteers appointed by the Board of Directors. The
committee provides an independent assessment
of the operations performed by the credit union’s
management and staff. It is responsible for ensuring
that the credit union’s policies and practices protect
the assets of the membership, remain compliant
with all applicable regulations, and maintain
accurate financial reporting. The committee also
provides members with assistance for any concerns
they might have.
areas were examined twice during the year. The
outcomes of these audits were utilized to help the
credit union comply with regulatory requirements
as well as operational policies and procedures.
The committee meets regularly with both
management and an independent accounting firm
an internal audit program. These regular
to conduct
cond
meetings ensure that controls are in place to
protect member assets.
Based upon the examination by the NCUA, the
results of our internal audit program, and the
independent audit of our financial statements, it
is the opinion of the members of the Supervisory
Committee that the Mid-Hudson Valley Federal
Credit Union remains a strong and well managed
financial institution that is safe and sound.
Committee internal audit
In 2011 Supervisory Com
programs examined over forty different areas of
the credit union. It also improved its operating
operational
function by consolidating
con
activities into larger operating functions,
thereby streamlining
the internal
streamlinin
auditing process. TThirteen different
operational areas were audited and five
Stephen M. Swan
Swanson
Chairman
The Supervisory Committee also worked closely
with a team of examiners from the National Credit
Union Administration (NCUA) who conducted an
examination of the credit union’s operations. In
2011 the committee engaged the accounting firm
of Crowe Horwath LLP to perform the audit of the
credit union’s financial statements.
I would like to thank the Board of Directors,
management, and staff for their support of our
mission, and also my fellow committee members
for their continued dedication and service to our
members.
“INCOMPARABLE”
John Zacharia, owner
of the Alexis Diner in
Newburgh, New York,
offered this bold, one
word endorsement of
his relationship with
MHV… “Incomparable.”
“They know my
business and give me
what I need, when I
need it, better than any
financial institution I
have ever dealt with.”
Member Experience
& Convenience
Pictured Right: Courtney Conklin Loan Servicing, Kyle Peterson MIS, Ellen Iversen PT Operations,
Jose Dross Collections, Loretta Humes Mortgage Lending, Theresa Higgins Member Service
Lisa Perry,
Personal Teller
Member Service
At MHV, Our Employees Have Heart!
We worked hard and increased training in 2011 to serve you better!
Trained for a new Data Processing System
Our staff was hard at work preparing for MHV’s
Technology Upgrade taking place March 2012.
When MHV’s Technology Upgrade is complete
members will enjoy new and improved services
like Home Banking, Bill Payer, Faster New Account
Opening Process, and a Mobile App for Smartphones.
Improved Member Service
To be the best, you have to learn from the best.
The Disney Institute shared their best practices
with MHV staff during workshops conducted
in February. Our staff learned how Disney
executes their quality service and how we can
incorporate their best practices into the
MHV member experience.
MHV Increased Employee Spirit Initiative
The Culture Committee was formed to develop
fresh and fun ways to motivate and recognize
employees who go above and beyond. The group
consists of employees throughout the organization.
The committee members “Prowl” different branches
to surprise them with snacks and refreshments
as a way to thank fellow employees for
providing outstanding member service.
Awarded Employees for Going Above & Beyond
In addition to the quarterly Chairman’s Award, a
new peer-to-peer recognition award was launched
in August called the “WOW Award.” Nominations are
sent to the Culture Committee who select the best
example of service excellence each month.
Expanded Branches Increased Convenience For You in 2011!
Port Ewen & Middletown Branch Grand Openings
MHV opened two new, environmentally friendly
branches during the spring of 2011. Both
branches are LEED Certified and are heated
and cooled using Geothermal technology. Both
branches feature 24/7 Personal Teller service
virtually eliminating traditional branch hours.
Newburgh Branch Groundbreaking
We’re moving our old Newburgh Branch to a more
prominent location on Rt. 300 in front of the Home
Depot Plaza. The new branch will be constructed
similar to our Port Ewen and Middletown locations.
World’s First Drive-up 24/7 Personal Teller
Now you don’t have to leave the comfort of
your vehicle to bank face-to-face with one of
our tellers. The latest in banking innovation,
the Drive-up 24/7 Personal Teller was installed
at our newest locations in Port Ewen and
Middletown. Another will be built with
our new Newburgh location.
MHV will receive the 2012 Dora Maxwell Award on behalf of the Credit Union Association
of New York (CUANY) for the credit union’s efforts in helping our local community
rebuild after Hurricane Irene.
Staff reached out to the local
American Red Cross chapter
to establish our 11 branches
as official donation centers.
Donations were collected from
September 2 through September
30, 2011. Through MHV members
and staff, a total of $2017.42 was
raised. The credit union staff also
worked directly with members facing financial hardship as a result of Hurricane Irene
by providing extended flexible repayment terms on loans.
Efficiency
Systems &
Processes
Sr. Management Team
Automation
Human
Resources
Pictured Left: David Perry VP/Branch Operations, Christopher Corallo, CCE Chief Financial Officer,
Stephen Carle VP/Mortgage Lending, Jill Hall VP/Accounting and Deposit Services, David Kellogg Chief Technology Officer,
Judy Hamilton VP/Human Resources, Richard DiLorenzo VP/Consumer Lending, William Spearman, CCE President and CEO,
Robert Michaud Chief Marketing Officer, Patti Osterhoudt, CCE Chief Operations Officer, Wayne Winkler, CCE Executive Vice
President, John Dwyer VP/Business Services, Jessica Fox VP/Risk Management
“They treat me like
FAMILY”
Patty Heins , owner of
Perfezione Painting,
Inc., came to MHV for
her first Small Business
Administration loan. “I
owe the success of my
business to MHV. They
had confidence in me
and with their help my
company has been able
to grow. It’s like they are
part of my family.”
“They know my
BUSINESS”
Firehouse Productions
in Red Hook, New York,
is an award-winning,
world-class sound
production company
for concerts, awards
shows, television, and
corporate events. Its
portfolio includes the
Rock and Roll Hall
of Fame, the Tony
Awards, Neil Diamond,
Radio Head, Sesame
Street, Pepsi, and
Target. Owner Brian
Olsen appreciates his
relationship with MHV,
saying “Whenever we
need financing, they are
there. They know us.”
As we close another successful year at the Mid-Hudson Valley Federal Credit
Union I want to announce to our members that Bill Spearman will retire on
August 1, 2012. Bill’s dedication and leadership will be greatly missed by
all, but his legacy will carry on at the credit union.
Bill has served the credit union for 40 years, beginning his career at
Mid-Hudson Valley in 1972 and rose through the ranks to the position of
President and Chief Executive Officer, where he has served for the past 15
years. Under Bill’s stewardship, MHV has grown from $203 million in assets
with three offices in 1995, to over $730 million in assets and 11 locations
today.
Bill’s many contributions to the credit union and the community will be
shared with you throughout 2012. On behalf of the Board of Directors,
management team, and employees of the credit union, I congratulate Bill
and wish him all the best!
Gary E. Anderson
Chairman of the Board
MHV’s First In The World Drive-Up Personal Teller had the
entire industry stand up and take notice. See us making
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Our Heritage: The Middle Years, 1980-2002
It was a time of transition for the credit union. The
1980’s brought the first opportunity for expansion
beyond the IBM Kingston site with the opening
of the first full service branch on Ulster Avenue.
The branch included all the services you would
expect from a financial institution including a
drive-up and safe deposit boxes. Opening a new
branch also provided the opportunity to extend
hours and acted as a gateway to expand the
membership to families of IBM employees and
eventually even further.
A few years later, IBM Headquarters announced
that they would be closing the Kingston plant
in 1995. 7,500 people were going to lose their
jobs or be transferred to another location. The
future of the credit union was in jeopardy. As Bill
Spearman, MHV President and CEO recalls, “We
saw, over time, people bringing in the keys to
their car, the keys to their home and apologizing
for not being in any financial position to make
payments.”
To maintain strong capital and assets, MHV
sought out to expand the membership as a
multi-occupational credit union. An aggressive
business development and business services
effort was launched to recruit Select Employee
Groups (SEGs). SEGs were other businesses that
could sign up to be a partner of MHV and their
employees could join as members. At the height
of the SEG membership drive, there were 400
SEGs spanning a great distance from New York
City through Albany, NY.
While the SEG effort was a success, it didn’t align
with the long term vision for the credit union. As
the IBM Kingston Plant closed, serving SEGs alone
would not be a sustainable strategy. Around that
time Paul Pavlovich, former Board Chairman,
proposed a solution to transition to a community
charter. This would give the credit union the
opportunity to expand beyond IBM and serve
anyone in the local community that wanted
to join. To develop the community charter the
Board Members and Senior Management had to
set a clear path for the credit union, developing a
mission, vision and branch plan.
On going through a time of transition and
uncertainty Pavlovich reflects, “It was unfortunate
that the plant closed but that was the beginning
of a new world as we know it today. We managed
through it and I think we are better as an
organization for that experience and will be in
the future.”
In July 2002, the National Credit Union
Administration approved the community charter
and MHV was granted the ability to serve the
tri-county area of Ulster, Orange and Dutchess
Counties. Having originated at IBM, the credit
union has a unique ability to leverage new
technology, while understanding the importance
of the human element in service delivery. With the
installation of the first ATM in the 1980s to the 24/7
Personal Teller today, the organization’s foremost
goal is to always provide the highest quality and
convenient service to the membership.
On the future of MHV, Spearman comments, “We
demonstrated early on that we are capable of
providing quality service and value, but we are
capable of doing a lot more. ”We are going to
continue raising the bar.”