Annual Report

2021

President & Chief Executive Officer Message

It is my pleasure to write to you as we end SeaComm’s 58th year of operation. We exceeded our own expectations based upon our Board-approved budget forecasts. Member satisfaction, staff engagement and overall profitability remained high. Our financial position continues to remain solid. Year-end assets climbed in excess of $759 million, an annual growth of 13% from year-end December 31, 2020. At the same time, our net operating expenses YTD were at 1.53%, well below our goal of 3%. We finished the year with a net income of $7.3 million, garnering us more than $101 million in total equity to date. Capital remains a key component to our financial health as it is necessary to maintain adequate financial reserves for loan losses as our assets continue to grow. It ensures that we are able to withstand any uncertainty. A new risk-based capital requirement, which we have implemented, is required of us as a large complex credit union starting this year.

Member services continues to be a key focus for us. We recognize the importance of ensuring our members feel valued in every interaction they have with us. Our overall Quality Loop survey score for the year was 6.81 out of 7.

We completed construction in Essex, VT for our second retail branch in Vermont, now giving us two locations to serve our members in the Green Mountain State.

Last year, the Board of Directors also approved to move forward with a merger with United Neighbors Federal Credit Union of Watertown, NY. Their Board of Directors, as part of the due diligence process, and National Credit Union Administration (NCUA) regulation, conducted a vote of their membership, which in turn gave approval to move it forward. The NCUA approved the merger and it was certified on May 14, 2021 with a letter from the Eastern Regional Director. The operational transition of all deposit accounts, loans and debit cards was completed on June 1. As part of the growth plan for the new field of membership, the Board of Directors approved plans to move forward with the construction of our ninth retail branch in Watertown, NY. The new location will be on NYS Route 3 across from the Towne Center, which has a Target and Petco, with a completion in late fall.

We were also certified as a Great Place to Work. We were very happy to report that after we received the results, 89% of our employees who participated in the survey say SeaComm is a great place to work. Some of what we learned is that 97% felt good about the way we contribute to the community, 95% agree that management is competent at running the business and 95% say when you join the company, you are made to feel welcome. We are extremely proud to be included within this privileged group across the country.

We are extremely grateful to our 51,850 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.

Respectfully submitted,
Scott A. Wilson
President & Chief Executive Officer

twitter.com/SeaCommCEO
facebook.com/SeaCommCEO
instagram.com/SeaCommCEO
seacomm.org/podcasts.html

---

Board of Directors Chairman Message

As I write this message, I am reminded of our humble beginnings and your Board of Director’s responsibility to ensure that we maintain that course that was set nearly six decades ago. It is also our charge to create a vision for the future. It is management’s responsibility to bring it to fruition. Our success is accomplished with hard work and dedication of a committed team led by our CEO, management and staff.

It is my pleasure to report that 2021 was extremely successful. Your Board of Directors oversaw the opening of its second retail branch Vermont and the completion of a merger with United Neighbors Federal Credit Union in Watertown, NY. This merger has also resulted in our purchase of property in the Town of Watertown for the construction of a new branch on Route 3. We are confident in these new locations, which we will be serving; while at the same time ensuring that our service commitment to our current members will remain at the highest level.

We were also able to give $175,000 of charitable donations from a board designated fund to assist healthcare facilities in the markets in which we do business, including the foundations of Alice Hyde Medical Center, CVPH Medical Center, Claxton Hepburn Medical Center, Canton-Potsdam Hospital, Massena Hospital, Samaritan Medical Center and the University of Vermont Medical Center. It was our hope that those funds would assist in continuing to deliver vital healthcare services to the communities we serve.

Keith Edwards, a dedicated volunteer of the Credit Union, retired after serving 27 years. Although he will be missed from his elected responsibilities, he has been given the honorary position of Director Emeritus, and will be able to give valuable counsel at the Board table. We are also grateful to our Supervisory Committee whose principle responsibility is to oversee a qualified independent audit. The results of that audit are 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 forward in 2022.

Respectfully submitted,
Myron F. Burns
Chairman, Board of Directors

---

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, with the assistance of Firley, Moran, Freer & Eassa, CPA, 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 12/31/2021 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.

Respectfully submitted,
Thomas Sullivan
Chairman, Supervisory Committee

---

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.

---

Community Support:

$25,000 pledge to Jefferson Community College

Paid for 500 orders at Bokie's Drive-In, in Malone

Provided $4,500 in prepaid gift cards to 45 unsuspecting holiday shoppers

---

2021 Achievements

2 years selected as a Great Place to Work™

$759 million in total assets

2 New Branches in Watertown, NY and Essex, VT

Silver MAC Award for Community Engagement

First Place Dora Maxwell Award for Social Responsibility

51,850 total members

Since 1963

58+ years of people helping people

---

2021 Community Impact

4,300 random acts of kindness

148 children impacted through financial education

Supported 197 community groups

128 volunteer hours

314 members assisted through financial counseling and education

$342,000 in donations and sponsorships

$15,000 in academic scholarships

---

Trusted, Reliable, Member-Focused

---