Chairman’s Letter to the Membership
Fellow Members,
We have seen a lot of change in our World and our industry in the past few years, and this is also true for Northeast Credit Union. We are changing and adapting to this new World, and it’s all for the better. We are always looking to better serve and return to you the best value in banking. We seek to be innovative and deliver you value not just through great rates and low fees alone, but also by creating an impact on our communities – it’s about giving back.
We just re-launched our Northeast Credit Union Foundation, which is funded by Northeast Credit Union members, team members, vendor partners, and community members. In this past year, we supported over 48 organizations and donated over 2,000 pounds of goods and personal care items to support community members facing food insecurity and lack of shelter. Our team members volunteered over 558 hours to those in need and we provided 83 schools with lesson plans to advance financial education.
As the Board looks forward to the future, we are proud to see where this organization is heading, with a purpose-driven quest to help our communities thrive; rooted in the credit union principles of People Helping People. Our mission to enrich and nourish the lives of others is what we are all about – you, our members, and the communities in which we live, work and play. I invite you to learn more about our new mission, better yet to join us in doing good. In this annual report, you will learn more about the organization’s successes in 2022, and where we are heading into 2023 and beyond.
On behalf of our Board of Directors and volunteers, we thank you for your continued membership and trust in us.
President's Report
For many of our members, employees, and communities, the continuing macroeconomic challenges, increasing market pressures, rising rates, and growing inflation created a real impact in 2022.
With the support of our members, teams, Board of Directors, and community partners, Northeast Credit Union had a strong and successful 2022, allowing us to grow through our mission of enriching and nourishing the lives of others.
Remaining strong in adverse conditions.
- We recorded total assets of $1.89 billion.
- Our loan portfolio grew 12.4% to $1.52 billion, while deposits decreased to $1.65 billion.
- We experienced a 4.8% growth in membership, ending the year with 149,162 members.
- We helped 131 members achieve their dream of home ownership, and another 800 members take advantage of their home’s equity.
Northeast Credit Union funded more than $580 million in new loans in 2022, a number we believe serves as a testament to our commitment to our communities and our members.
In addition, we made significant investments in improving the experiences of our members across delivery channels. The focal point of these enhancements was the launch of a new digital banking platform that aimed to make the member experience more user-friendly, convenient, and intuitive.
Delivering on our mission.
We also saw the Credit Union continue its longstanding commitment to supporting the communities that we serve. During 2022, we donated 2,043 pounds of food and goods, provided 83 financial education lesson plans to our local schools, and gave $40,000 in scholarships to help 24 of our student members continue their education.
In addition, Northeast donated more than $200,000 to 48 charitable organizations and various community initiatives. Examples of some of the organizations we supported last year include The Chase Home, Gather, The Mayhew Program, and the Monarch School of New England, to name a few.
Beyond monetary investments, our team members volunteered more than 558 hours in their local communities last year. Northeast employees proudly helped build homes, serve in food pantries, clean local parks, etc., while working with organizations across New Hampshire and Maine.
Putting our people first.
We continue to significantly invest in the professional development of our team because, without each of them, Northeast Credit Union would not be thriving like it is today.
Last year, we saw 60 team members earn promotions to expand their roles within the Credit Union. These promotions, however, are only part of the story; and we see career development as a process rather than an end goal. Our commitment to this process helps team members grow in their respective roles and responsibilities, while it enhances their ability to deliver exemplary service to our members across all delivery channels. 99% of all employees at Northeast now have individual development plans that their leader and the Credit Union support.
Looking to the future.
We’re excited for 2023 as we continue to enhance and streamline our products, services, and educational offerings. Specifically, you’ll see new financial wellness education resources and improved experience for new members – making it easier to join the Credit Union, open new accounts, and apply for a loan.
Although much has changed since our founding at the Portsmouth Naval Shipyard in 1936, our core values of giving back and serving you remain the same, simply strengthened by our belief that doing well means doing good.
2022 SUPERVISORY COMMITTEE REPORT
The Supervisory Committee is appointed by the Board of Directors to independently evaluate the safety and soundness of Northeast Credit Union’s operations by engaging an external auditor and directing internal audit activities.
The Committee is also responsible for ensuring that management adheres to policies established by the Board of Directors and maintains a strong internal control system in alignment with the approved risk appetite of the Board and senior management, NCUA and state banking regulations, Northeast’s bylaws, and generally accepted accounting principles.
During 2022, consolidated financial statement audits for the periods ending June 30, 2021 and June 30, 2022, were performed by the external audit firm of Wolf and Company. Unmodified opinions were rendered for both audits, indicating that the financial statements present fairly, in all material respects, the financial position of the Credit Union as of June 30, 2021 and June 30, 2022, and the results of its operations and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America.
A regulatory examination commenced on March 7, 2022, by the State of New Hampshire Banking Department with NCUA participating. This annual examination provides further assurance that the Board of Directors and management oversight of the credit union’s corporate affairs is effective.
The Supervisory Committee also engaged the internal audit services of Doeren Mayhew, CPAs to perform various operational, compliance, and information technology audits throughout the 2022 calendar year. Lastly, Northeast established an Internal Audit Department in June 2022 with the objective of further strengthening the internal control and risk environment throughout the Credit Union.
It is the Supervisory Committee’s opinion that the Credit Union is well-managed and continues to maintain its status as a sound financial institution. Northeast Credit Union enters 2023 in an excellent position to continue to enrich and nourish the needs of its members, employees, and communities.
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 2022. 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 23,733 loans.
At the Credit Union’s 2022 Annual Meeting, the Board of Directors appointed the following as members of the Credit Committee: Kelly McGrath - Chairperson, Sue Ladd - Secretary, Neil Gordon, 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.
During the calendar year 2022, 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;
- Economic outlook regarding Northeast Credit Union’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 2022, the Credit Committee reviewed 32 mortgage applications. They approved 26 mortgage applications and denied 6 for an approval ratio of 81.25%. We assisted 308 members with a mortgage closing and 800 members with a Home Equity closing.
Overall, Northeast Credit Union funded $580,247,030; helped 131 members with the dream of homeownership and assisted 400 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 financial needs.