LETTER FROM THE PRESIDENT AND THE CHAIRMAN OF THE BOARD
At Northeast Credit Union, we’re here to make a difference. Through our people-first, individualized financial guidance and diverse product offerings, we strive every day to make banking easier, and empower you, our members, to accomplish the financial goals you’ve set out to achieve.
Thanks to our staff’s tireless dedication to service and your continued trust, we are thrilled to report that Northeast Credit Union enjoyed a remarkably successful year in 2021. Despite the difficulties of navigating both a volatile economy and the effects of yet another year of the COVID-19 pandemic, we delivered steady growth across several lines of our business and made great progress in improving the way we work and serve your needs.
Closing out 2021 with more than 142,000 members, 19 branch locations and $1.9 billion in assets, the financial state of Northeast Credit Union is, without a doubt, as strong as it’s ever been in our decades-long history. We are entering 2022 with great momentum, and our team – all 344 of us and counting – are ready to leverage our combined strength to continue adding value in our communities and making a difference in your financial lives.
But first, let’s talk about how we got here – and what’s to come.
Thriving during difficult circumstances.
While the situation has changed since March of 2020, the COVID-19 pandemic remained a challenge in 2021; our team members continued to respond to these difficult circumstances with patience, empathy and – above all else – resilience.
On behalf of our leadership team and the entire Board of Directors, we want to thank our workforce, particularly our in-branch staff, for their flexibility as we worked to create safe and healthy banking environments for our members across the region. Thanks to their efforts, we were able to keep our branch locations open, and navigate another difficult year with little to no interruptions to our daily operations.
We also need to recognize you, our members, partners and neighbors across the region. We understand the immeasurable toll the last two-plus years have taken on your day-to-day lives, and we truly appreciate your patience and grace as we’ve asked you to bear with us as we’ve tried our best to maintain normalcy in an abnormal time.
"Opened my new accounts and had a great experience. Nice, knowledgeable people at this local credit union. I look forward to building relationships with this area and these folks. Highly recommend." - Cyndy B.
A year marked by growth, innovation, and milestones.
For the fourth consecutive year, we were honored as one of “America’s Best Credit Unions” by Forbes, ranking in first place in the state of New Hampshire and in the top 3.75% of the nearly 200 credit unions appearing on last year’s list. This kind of consistent recognition does not happen by accident.
Looking back on the past year, we feel very fortunate to find so many accomplishments worth celebrating. Our mortgage lending department, funded more than 660 new mortgage loans worth a total of nearly $150 million. This marks our third straight year exceeding $100 million in production in residential lending activity and serves as a testament to our commitment to being a trusted partner in the communities we serve when it comes to helping families and individuals realize their dreams of homeownership.
We also launched a new-and-improved website, the design of which aims to provide members and those considering joining us, with a faster, simpler, and more user-friendly way to find what they need, when they need it. This was one of many ways we enhanced our digital tools in 2021, and we can promise that effort will continue this year and beyond.
The list goes on. We invested in tools to make our back-office operations more efficient, so that we can focus even more of our time and efforts on improving member experience. We successfully executed a comprehensive migration of our primary data center to a new, state-of-the-art facility, which will substantially improve the stability and security of our computing infrastructure, while better protecting your personal data and information. And we continued to be there for our members when they needed us most, processing more than 250 new loans in the amount of nearly $5 million through the federal Paycheck Protection Program.
All of these efforts were made with you, our members, in mind. The opportunity to find new, better, more efficient ways to serve your financial needs is what drives all of us into the office every day. We are proud of what we were able to accomplish last year, and we are looking forward to what’s to come.
“I have done my banking here for 30 plus years now and my experience has been nothing short of excellent. Northeast Credit Union has always treated us very well and we have never had any issues. We have had multiple car and personal loans. I look forward to many more years of trusting Northeast Credit Union with our finances.” - Philip T.
Showing our hearts in the communities we serve.
Over the last eight-plus decades, Northeast Credit Union has been fortunate to enjoy a great deal of success here in New Hampshire and Maine. We may have changed our name and added a few branches along the way, but – at our heart – we’re still the community-focused, member-owned organization founded at the Portsmouth Naval Shipyard in the mid-1930s. No matter how much time passes, we will always maintain our commitment to giving back. It’s part of who we are, and who we will always be.
Over the course of 2021, through our 2nd annual Love Your Community Awards Program, we donated $120,000 to support 60 nonprofit organizations operating in New Hampshire and Maine. From addressing complex, widespread issues like food insecurity and homelessness, to simply helping lost dogs find their way home, these organizations are working tirelessly to improve the lives of people and families from across the region. We applaud their efforts, and we are thrilled to support the advancement of their respective missions.
On the academic front, we were also proud to distribute $40,000 in scholarships to help 24 of our student-members continue their educations. Our annual Scholarship Program is an investment in the future of our credit union, and we look forward to helping these student-members launch their own businesses, buy their own homes, and accomplish any number of other milestones as they progress along their financial lives.
We also continued our efforts to celebrate and spread kindness throughout the region with Love Your Community Project initiatives like Educators Who Wow, Nice Catch, Random Acts of Kindness Week, and more.
In 2022, we will continue to leverage our success and financial strength to find ways to truly enrich and nourish the communities we serve. We want you to know that when you bank with Northeast Credit Union, you are banking with a purpose, and we will demonstrate that commitment through our actions.
Looking ahead to the future.
The banking industry is in a seemingly constant state of evolution. Between the rapid advancement of the technological tools we use every day, to the rise in digital-only financial institutions, to the changing consumer needs, our industry has never been as competitive as it is today. To move forward, we must continue to adapt to the times, and invest in our proven assets.
We will continue to build on our “People First” philosophy. Our team of dedicated financial professionals is what sets us apart from our competitors – and it’s growing with each passing year. In 2021, we’re thrilled to tell you we promoted 47 individuals to expanded roles within the credit union. Of these 47 promotions, seven were elevated to leadership positions. This impressive trend of promoting from within is a testament to the culture of trust, inclusion, and cooperation we’ve instilled at Northeast Credit Union. Moving forward, we will continue to put our people in positions to succeed and thrive beyond their current roles.
"Getting a loan was quick and easy. I have been coming here for years and the staff is always very friendly. Thanks!" - Timothy Z.
We will continue to enhance our products. We will continue to ensure our products and services are reflective of the world we live in. As technological tools advance so will our business model. In 2022, we are planning to introduce a new, comprehensive online and mobile banking platform. This “digital transformation” will provide a frictionless, personalized and fully secure digital banking experience, allowing you to access your accounts – not to mention your financial advisors – whether you’re at home, out of town, or on the go. We know you lead busy, unpredictable lives. Our goal is to make your banking experience as seamless as possible.
Finally, we will continue to listen. To best serve you, we need to know you. We need to understand your financial situation, your goals, and your preferences for how you want to conduct your business. In 2022 and beyond, we are committed to continuing to gather your feedback, and – more importantly – use it to drive our decision-making to improve upon the delivery of our banking services. Remember, as member-owners of Northeast Credit Union, we answer to you.
"Opened my new checking account at Northeast Credit Union. I’m so excited to be banking where the staff are AMAZING!!" - Julie T.
A few closing announcements.
Thank you, and happy retirement, to Tim J. Collia. As many of our members are aware, this is our first annual report since our former President and CEO, Tim Collia, made the decision to begin enjoying his well-earned retirement. Under Tim’s 19 years of leadership, Northeast staked its claim as one of the strongest, most well-respected community credit unions in New England. On behalf of our Board of Directors, our members, and our entire team at Northeast Credit Union, we thank Tim for his years of service and wish him and his family nothing but the best.
Introducing the Philip W. Sullivan Memorial Scholarship. The Northeast Credit Union community continues to celebrate the life of Phil Sullivan, who served as our Board Chair for nearly 30 years before his passing in March of 2020. Phil’s institutional knowledge and dedication to our members helped Northeast Credit Union become the business and the community leader it is today. We’re proud to announce the creation of the Philip W. Sullivan Memorial Scholarship, a new academic grant that will be awarded each year to a deserving student member.
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Once again, on behalf of our leadership team, our Board of Directors, and our staff, we thank you for your continued trust in Northeast Credit Union.
Let’s get to work.
2021 SUPERVISORY COMMITTEE REPORT
The Supervisory Committee’s responsibilities may be summed up as “providing critical and active oversight over the governance functions of the Credit Union. This includes ensuring management and the Board are fulfilling their responsibilities as good stewards of the member’s money.”
The Committee’s primary duties and responsibilities include: engaging auditors to perform an annual audit of the Credit Union; providing an annual report on the audit to the Board of Directors and the Credit Union members; conducting verification of members’ accounts at least bi-annually; ensuring the Board of Directors and management are safeguarding the Credit Union’s assets; ensuring management complies with the Credit Union’s policies and plans; reviewing internal controls; reviewing examination and audit findings and follow-up to ensure management takes the necessary corrective action when appropriate; meeting with the federal and state examiners; and when needed, responding to member complaints received through NCUA’s Office of Consumer Protection.
The Supervisory Committee is pleased to report it has been actively involved in these activities. The Committee meets regularly with management and representatives from auditing firms to ensure these fiduciary duties have been fulfilled. The Committee actively oversees the remediation efforts for any State and/or Federal examination findings. In addition, the Committee provides independent advice, assistance, and recommendations to the Board in the oversight of the Credit Union’s operations and audit functions and supports the Board of Directors in the fulfillment of its fiduciary responsibilities.
During 2021, the Supervisory Committee engaged the following firms to provide auditing services for Northeast Credit Union:
- Wolf & Co – Consolidated Financial Statements Audit
- Wipfli | MacPage, LLC – Internal Audit Services
- Doeren Mayhew – Internal, IT Security and Compliance Audit Services
In conclusion, it is the Supervisory Committee’s opinion the Credit Union is well managed and continues to maintain its status as a sound financial institution. Northeast Credit Union enters 2022 in an excellent position to serve the financial needs of its members.
Meet our 2021 Checking Sweepstakes winner, Maddie.
We were delighted to give the surprise of a lifetime to Northeast member Maddie. With the help of her co-workers, Maddie took part in a 'pretend' interview that was really our surprise to her that she was the Grand Prize Winner of $10,000!
Meet our 2021 Loans Sweepstakes winner, Ship.
We were thrilled to surprise Ship, a longtime Northeast member who recently won our "Come for the Loan, Leave with a Vacation" Sweepstakes.
CREDIT COMMITTEE'S REPORT
The Credit Committee is pleased to report that members of Northeast saw the benefits of borrowing from their credit union during another challenging year with the COVID-19 Pandemic. We have been delighted to serve the membership during 2021. The Credit Committee had a successful year reviewing lending activity and helping our members with their financial needs. The credit committee in conjunction with the loan officers approved 17,461 loans.
At the Credit Union’s 2021 Annual Meeting, the Board of Directors appointed the following as members of the Credit Committee: Kelly McGrath - Chairperson, Sue Ladd - Secretary, Tim Collia, Chris Saucier, and Doug Sites. As always, the Credit Committee is honored to have been appointed by the Board and extends thanks for allowing us to serve. At the November 29, 2021 Board Meeting, the Board replaced Tim Collia, who retired from the Credit Union, with Susan Hannigan, CFO.
During the calendar year 2021, the Committee met to review:
- The number of loan applications received;
- The number of loans granted;
- The number of applications denied;
- The number of deferment requests received;
- The number of deferments granted;
- The number of deferments denied;
- COVID-19 outlook regarding NECU’s Loan Portfolio and its performance;
- And any other loan activity requiring its review as the final lending authority at the Credit Union.
The Committee found our lending activity to be consistent with the Credit Union’s loan policies. The Credit Committee maintained confidentiality and adhered to the Loan Policy set forth by Northeast Credit Union.
During 2021, the Credit Committee reviewed 186 mortgage applications. They approved 169 mortgage applications and denied 14 for an approval ratio of 92.47%.
During 2021, the Credit Committee reviewed 561 deferments, approving 541 and denying 20 for an approval ratio of 96.43%. Loan deferments were much higher than a normal year due to the COVID-19 Pandemic and its economic impact on members. The Credit Committee followed both the CARES Act and Interagency regulation when granting loan deferment approvals. This number is down significantly from 2020 that had 1,864 requests.
Overall, Northeast Credit Union funded $633,610,206; helped 131 members with the dream of homeownership and assisted 541 members with deferments.
In conclusion, the Credit Committee would like to commend the Board of Directors, management and staff for their dedication and professionalism throughout this fiscal year. Last, but not least, the Credit Committee would like to thank you, our members, for your continued support as we look forward to better serving you. Please be sure to check with us first for all your future financials needs.