march 26, 2016 - Maine State Credit Union
Transcription
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