Annual Report

2019

President & Chief Executive Officer Message

When we began the first quarter of 2020 it started out respectable with all indications that it would be another solid year like we had in 2019. Then we confronted an unthinkable pandemic, Covid-19. Our economy is now on pause. In order to meet the ever-changing financial landscape as we are facing with this unprecedented economy, it is essential for us to be in a good position financially. The on-going planning to prepare us for what we are now encountering is evident with our strong balance sheet and the results we had in 2019.

Overseen through our strategic planning process by our Board of Directors, it is important for everyone to know that SeaComm has been preparing for this event since 2008, when the global economic crisis hit the financial services industry and put our country into a great recession. SeaComm has grown over the past decade, including our capital reserves at just over $90 million or 15.16%. The National Credit Union Administration (NCUA), our Federal regulator necessitates at least 7% of a credit union’s assets to be reserved in order to be considered well-capitalized, we are more than double that requirement.

Our 2019 results are indicative of on-going balance sheet management and the financial flexibility we have been moving toward with each year of success.

Member satisfaction, staff engagement and overall profitability remained high during the year. Membership grew by 3.56% placing us in a top tier in NYS for 12-month member growth in our peer group. Our financial position today continues to remain solid. Year-end assets climbed in excess of $568 million. At the same time, our net operating expenses YTD were at 2.12%, well below our goal of 3%. We finished the year with a net income of $6.2 million, garnering us more than $90 million in total equity. Capital remains a key component to our financial health ensuring that we are able to withstand any uncertainty like what we are currently confronting.

One of our strengths has been focusing on our exceptional member satisfaction. We do not make excuses for having a high expectation of taking care of our members. In 2019, we had a 6.78 percent overall satisfaction index out of 6.80 percent.

We successfully opened our first retail branch in South Burlington, VT. This new location will enable us to further diversify our markets and provide us opportunity to grow strategically.

We also were named once again as one of the Best Companies to Work for in New York for a 10th year in a row. As one of the top mid-sized companies, our employees were asked to participate in an 82-question survey, along with requested criteria we had to provide. We are extremely proud to be included within this privileged group.

Be assured we will continue to remain vigilant during the coming year to be able to meet the challenges our members will be facing. We are extremely grateful to our more than 48,727 members who have put their trust in us, and we will continue to work diligently to remain strong in order to be able to serve our membership well into the future.

Scott A. Wilson

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Financials

Click here to view the Income Statement, as printed in the Annual Report.

Click here to view the Statement of Condition, as printed in the Annual Report.

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Board of Directors Chairman Message

As I write this message, we are in the midst of a health crisis that has had significant impact on our economy. Your credit union is prepared for it because your Board of Directors, CEO and Senior Management team has planned accordingly and have done financially well in previous years like 2019. This ensures we can serve you well into the future. Therefore, as I highlight some of what transpired during that year, it is important for you to know we will continue to make certain you get the exceptional service you have come to expect from us.

It is my pleasure to report that 2019 was another solid year for SeaComm. We oversaw the completion of a retail branch in South Burlington, VT. We are confident in the new markets in which we will be serving; while at the same time guaranteeing it makes absolute sense for the credit union and our membership, and that it continues to help us build upon our already strong foundation. We added some additional products and services as well to make it easier for you to do business with us. These enhancements focus on increasing your overall satisfaction.

We are also grateful to our Supervisory Committee whose principle responsibility is to oversee a qualified independent audit. The results of that audit is shared within this report.

On behalf of the entire Board of Directors, thank you for allowing us to represent your interests and your trust in us as we move thoughtfully forward in 2020.

Myron F. Burns

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Supervisory Committee Chairman Message

The Supervisory Committee monitors the Credit Union’s operations and procedures on behalf of the membership. Our responsibilities include overseeing the direction and focus of the internal audit function, initiating an annual external audit of the Credit Union’s financial records and control structure, commissioning member account verification and ensuring an ongoing review of closed accounts. The Supervisory Committee also serves as an ombudsman for members, responding confidentially to concerns, questions or complaints that have not otherwise been satisfactorily resolved.

Each year, we have an annual audit performed by an independent CPA firm to ensure SeaComm’s financial statement accurately and fairly present the financial condition of the Credit Union and that Management practices and procedures safeguard members’ assets. The past year, we contracted with Nearman, Maynard, Vallez, CPAs, P.A. to conduct the annual financial audit.

The financial statements as of 12/31/2019 fairly present, in all material respects the Credit Union’s financial position, results of operations and cash flows. Based on the results of the annual audit by Nearman, Maynard, Vallez, CPAs, P.A., it is the opinion of the Supervisory Committee that SeaComm continues to be financially strong and operationally effective with sound policies and procedures.

I extend thanks to the members of the Supervisory Committee, the Board of Directors, and the Management and staff of SeaComm for their cooperation, assistance, and support.

Thomas Hannan

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