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‘13 ANNUAL REPORT


CAP COM Leadership Board of Directors – CAP COM Federal Credit Union Edward Gilligan – Chairman Patrick Kelly – First Vice Chair Harold Horning – Second Vice Chair Daniel Johnson – Secretary Paula Stopera – Treasurer Mark Marchand – Director James Thomas – Director Patricia Walbroehl – Director William Fitzpatrick – Director

Supervisory Committee John Ericson – Chairman James Thomas – Vice Chairman Paul Dettenrieder – Secretary Christine Hayes – Member

Board Managers of CAP COM Group Patrick Kelly – Chairman Mark Marchand – Vice Chairman David Jurczynski – Treasurer Diana VanAmerongen – Secretary Paula Stopera – Member Robert Davis – Member Marty Finn – Member Richard Amadon – Member Chip Lawrence – Member

Senior Management Paula Stopera – President/CEO David Jurczynski – Executive Vice President/Chief Financial Officer Diana VanAmerongen – Chief Operations Officer Edward Glenning – Chief Technology Officer Chris McKenna – Chief Mortgage Officer Sharon Phillips – Vice President of Marketing & Public Relations Johanna Robbins – Vice President of Finance Robert Roemer – Vice President of Project Management & Innovation John Shartrand – Chief Investment Officer CAP COM Financial Services Ginny VanAmburgh – Vice President of Lending


Table of Contents

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CAP COM Financial Center

4

Report of the Board Chairman

5-6

Report of the President/CEO

7

Report of the Executive Vice President/Chief Financial Officer

8

Consolidated Statement of Financial Condition

9

Consolidated Statement of Income

10

Report of the Chief Mortgage Officer

11

Report of the Chief Investment Officer

12

2013 Annual Meeting Agenda

13

Candidates up for re-election

14-15 60th Annual Meeting Minutes 16

2014 Art Goedeke Scholarship Winner and 2014 Making a Difference Award Finalists

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CAP COM Federal Credit Union 4 Winners Circle

On the horizon Our new state-of-the-art Financial Center symbolizes six decades of growth and a future filled with promise. We are moving ahead to an exciting new era while remaining rooted in an unwavering commitment to member service.

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One-stop Financial Center To benefit every member, every time, every day – that is our commitment to you. And, our new Financial Center will introduce a state-of-the-art Main Branch to help you with all of your financial needs – no matter what stage of life you are in. We can’t wait to show you all of the new ways we can make banking even better for you.

On campus at HQ Bringing together all of the Credit Union’s divisions, the Financial Center will be headquarters for more than 200 CAP COM employees from Homeowners Advantage Mortgage Division, Old Heritage Realty Services, CAP COM Financial Services, the CAP COM Cares Foundation, Car Buyers Service, College Bound and School Banking. Working together under one roof will allow us to be more effective ambassadors for our members.

It’s your new home, too What makes us special? You do! And this new branch is designed with you in mind. Along with the amenities you are already used to, you’ll enjoy a free, gourmet coffee station, Internet cafe and a children’s aquarium room. With a pedestrianfriendly design, a pathway to the Crossings Park and an easy drive to Colonie Center Mall, the new Financial Center will also be a great starting point for any Wolf Road shopping trip.

Mortgage products are offered by our Mortgage Team, Homeowners Advantage, which is a subsidiary of CAP COM FCU. Mortgages in New York State only. HOA is a Licensed Mortgage Banker NYS Dept. of Financial Services. HOA NMLS Identifier: 290363. Principal Address: 453 New Karner Road, Albany NY 12205. CAP COM FCU NMLS Identifier: 401261.

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Report of the Board Chairman

Our Credit Union started as the Capital District Telephone Employees Federal Credit Union 61 years ago on State Street in Albany. The Credit Union enjoyed steady growth over the first 25 years in Albany before moving to the Wolf Road area in 1978. Today, we are preparing for a move just down the street from our well-known Computer Drive East location to a great spot on Winners Circle. It has been a long, interesting and prosperous journey guided by strategic planning, focus and attention to every detail. We have evolved from former Treasurer Lou Love’s desk in a State Street office to a new 110,000-square-foot Financial Center standing three stories high. We are now a significant anchor of the Wolf Road business community. We are recognized by our industry peers as leaders and sustained by a team of employees that has a sharp focus on one mission: To be a sought after financial institution whose unbridled commitment to our members and community will be unmatched by anyone. As I look back on 2013, I see a year in which our outstanding staff and leadership team has remained dedicated to members and again lived up to our mission. I am proud to report that CAP COM was recognized for the 10th year in a row as one of the Best Places to Work in the Capital Region by the Albany Business Review. Our team continues to bring our special brand of member service to life. This unique brand of service is the primary reason we have grown from the original founding members to become the second largest Capital Region credit union with over 100,000 members. Our Credit Union is not only a one-stop shop for traditional financial products but also offers a host of unique options such as free educational workshops; a College Bound Program for families to assist in college selection and financing options; and an array of Mobile and Web Banking tools.

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In 2013, we enjoyed a year of well-attended and useful workshops. Hundreds of members joined us to learn about topics ranging from basic finance and budgeting to home buying and retirement planning. We are member advocates who help people unravel the sometimes complex details of financial planning at every stage of their lives. There is no better time to start building financial literacy than in elementary school. All of us can be proud that CAP COM’s School Banking Program is active in more than 70 local schools. It teaches financial literacy and helps CAP COM attract new households and young families. Often, when a family first considers switching to CAP COM, one of the first areas they check is Mobile Banking. These smartphone tools are essential for all financial institutions and your team has the Credit Union positioned on the leading edge of technology. In fact, we were ahead in many areas such as our Remote Deposit App, which now accepts hundreds of checks each week for deposit using a smartphone. The iPhone and Android Mobile Banking Apps combined with our free Checking Account make our web services second to none in our service area. As Board Chairman, I can assure you that CAP COM’s strategic goals will continue to fall in line with the fundamental role of a financial institution: To be safe and sound, to offer convenience, and to maintain a high level of service and value. I want to thank you, the member, the Credit Union staff and my fellow volunteers for their support throughout 2013. I look forward to continued success in 2014.

Edward A. Gilligan, Board Chairman


Report of the President/CEO

It’s an exciting time to be a part of CAP COM Federal Credit Union. The grand opening of our new Financial Center is just a few months away. Our loyal membership continues to grow well over 100,000 members. And amid these milestones, our commitment to member service remains as strong as ever. It’s a perfect time to reflect on another year of growth and achievements in 2013, while taking note of new successes and our ongoing hard work. Facts, figures and rankings CAP COM earned a host of impressive awards in 2013, but none was more important than Raddon Financial Group ranking us among the top 10 performing U.S. credit unions with $500 million or more in assets. It was the second straight year we earned this distinction. Raddon has been providing research-based solutions exclusively to the financial industry since 1983 and issues the prestigious Crystal Performance Awards each September based on growth, income, efficiency and margin. Year after year, CAP COM enjoys impressive national rankings and sky-high levels of member satisfaction because we deliver an outstanding member experience in areas from our in-branch banking to step-by-step guidance for first-time homebuyers. That unique member experience is created by the strong work ethic and positive energy our employees bring to CAP COM each day. Here are a few important lending figures that reflect our continued commitment to members: More than 1,875 members finalized a Mortgage with our Mortgage Division in 2013. Overall, CAP COM helped secure a total of $308.5 million in Mortgages in 2013. We are making home ownership dreams a reality for families across the Greater Capital Region. Helping members along with the home-buying process is just one piece of CAP COM’s awardwinning lending services. In 2013, we completed

more than 20,900 consumer loan application requests totaling more than $369.8 million in consumer loans including low-rate Auto and Home Equity Loans. The Credit Union also revamped its Commercial Lending Department last year and we are now helping more local businesses achieve success while expanding our commercial loan portfolio. As lending options grow to meet more and more of our members’ needs, CAP COM has enjoyed healthy membership growth. CAP COM welcomed about 11,400 new members in 2013 and we expect to welcome even more in 2014. As always, new membership growth is a cornerstone of our bright future. Web and Mobile Banking New members are discovering our unique brand of customer service along with all our outstanding Web and Mobile Banking tools. Aside from a complete suite of Mobile Banking apps for most smartphones, we are continually improving our Remote Deposit App to allow members to make deposits by taking a photo of a check. We are helping more and more members each day use their phones to complete everyday banking tasks. In 2103, we debuted a new Kindle Mobile Banking App on the Amazon App Store. The App can be used with all models of the popular Kindle tablet. What’s more, recent enhancements to our Connect-24 Web Banking System offer improved security, better navigation and an easier-to-use log-in process. We’ve got everything you need! One local member recently told us on Twitter: “Have to give @CAP_ COM_FCU a shout out! Love banking with them, great people!” Outstanding service Though CAP COM brings banking to the palm of your hand, we still remain committed to traditional service, such as our unmatched branch experience. We will never lose sight of our roles as member Continued on Page 6

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advocates who help people achieve financial goals at any stage of life. Not only does CAP COM deliver the best in-person branch service, we also have free gourmet coffee, fun and welcoming kids play areas and coin machines. That is a part of the reason CAP COM was voted “Best in Overall Customer Service” and “Best Credit Union” in the May 2013 issue of Capital Region Living Magazine. That customer service can be found in subsidiary organizations such as our Car Buying Program, Homeowners Advantage Mortgage Division, and CAP COM Financial Services, LLC. Our Car Buying Experts help members make smart choices. Members and nonmembers alike in the Capital Region and beyond are continually impressed by our Car Buying advice. From finding the right car and negotiating the best deal, to completing a low-rate Auto Loan, CAP COM is a one-stop shop. And, we know that families face important choices beyond choosing a new car. That is why the Financial Advisors at CAP COM Financial Services are here to provide unbiased retirement, insurance, and estate planning advice for our members. The CAP COM Financial team continues to rank among the top credit union investment service firms in the nation. Community partners We bring our unique spirit of customer service to community outreach programs and educational initiatives. In October 2013, we opened our first-ever high school branch at Shenendehowa High School in Clifton Park. The new in-school branch takes deposits and gives cash withdrawals for students and teachers. Students operate this one-of-a-kind CAP COM branch with help from our staff. It is a chance for us to give high school students a firsthand experience and teach them the basics of banking. Our School Banking Program continues to teach thousands of children at more than 70 local schools to save by making deposits at school. What’s more, our College Bound Program is helping hundreds of families plan their college journey with one-on-one consultations and informative workshops. We bring a commitment to service into the everexpanding volunteer work of the CAP COM Cares Foundation. I am very proud to report that in the 11 years since our Foundation was formed, we have donated more than $2 million in monetary and in-kind contributions to local organizations. Today, our Foundation partners with more than 100 community-minded organizations to support efforts ranging from meeting basic needs to supporting

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literacy and higher education. We are a powerful force for improving lives and as our Foundation expands, I know we can benefit even more people. Member support of the BIG Benefit Raffle, Foundation Golf Tournament and Calendar of Dreams helps us raise more than $275,000 each year for the Foundation. I’d like to thank all our supporters once again for their assistance. Our dedicated Foundation volunteers continually raise the bar, as demonstrated at Albany’s Making Strides Against Breast Cancer event in October. As part of our 18th year of sponsoring and supporting Strides, we rallied 500 Strides team members and raised nearly $27,500 to support breast cancer research. The Foundation has, for many years, rewarded the hard work of local students with scholarships. In 2013, the Credit Union increased the number of $2,500 Weidner “Ed” Davis Scholarships from 15 to 20. That adds up to $12,500 in newly created scholarship awards and $65,000 in total scholarships funded by the Credit Union. We also joined with the Capital District YMCA in August to make a $25,000 donation to the Albany City School District’s After School Program. CAP COM is a community partner and we strongly believe in the importance of early childhood education in and out of the classroom. The School District was facing a budget shortfall and we helped them avoid cutting 300 spots in the program. Bright future As you can see, CAP COM is not just a different Credit Union, we are a Credit Union that makes a difference! We remain an active community partner and dedicated advocate for all our members. On behalf of all of the volunteers and staff at CAP COM Federal Credit Union, I’d like to thank our members for the privilege to serve you and your family. Today, we are looking forward to a prosperous 2014 filled with health, happiness and substantial progress toward a bright future in our new home.

Paula A. Stopera, President/CEO


Report of the Executive Vice President/Chief Financial Officer

Since the Great Recession, our national economy has seen four years of uninterrupted growth and falling unemployment. Unfortunately, the growth represents the weakest rebound since World War II and the unemployment rate is still higher than it should be for a sustained and robust recovery. Over the years, the membership of CAP COM Federal Credit Union has been accustomed to being affiliated with a financial institution whose commitment to managed growth and prudent banking practices has resulted in financial strength and stability regardless of the economic conditions. CAP COM’s performance over the past year has it ranked among the leaders in the credit union industry. The Credit Union achieved an impressive milestone in 2013 with total assets surpassing $1 billion. At the end of 2013, total assets were $1.06 billion, increasing $77 million, or 7.9%, from year-end 2012. Gross loans realized the greatest growth of all asset classifications increasing nearly $100 million for the year. Real estate, auto and education loans, along with loans to member businesses, showed the greatest increase in balances over the year. In addition to the total assets managed on the Credit Union’s balance sheet, CAP COM and its subsidiaries are now servicing nearly $714 million in real estate loans for others and managing retirement and investment funds of over $342 million for our members. Growth in total assets, in and of itself, does not equate to fiscal strength or stability. In combination with our growth in total assets in 2013, CAP COM experienced an increase in the members’ equity of approximately $12.3 million or 12.2%. CAP COM’s resulting net worth ratio was 10.76% at year-end 2013, up from 10.30% at year-end 2012. I am proud to report that these levels of members’ equity have been defined by the National Credit Union Administration as being “well capitalized,” which is the highest designation for credit unions.

CAP COM’s growth over the past several years has resulted in a need to expand into a new Financial Center, which will house all administrative and operational functions. Our sound fiscal growth and prudent management practices have provided a strong foundation on which to leverage this significant financial commitment into the future. The new headquarters building is expected to be completed later this year. Our commitment to conservative and prudent fiscal management strategies has, over the years, led to a sound and stable financial performance. We continue to embrace these standards to ensure that we identify and manage risk and that our members have every opportunity to experience what we believe to be a better banking experience. Thank you for your loyalty and continued confidence in our ability to make our Credit Union the best it can be.

David J. Jurczynski, Executive Vice President/Chief Financial Officer

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CAP COM FEDERAL CREDIT UNION AND SUBSIDIARIES Consolidated Statement of Financial Condition December 31, 2013 2013

(Unaudited)

ASSETS Cash and due from financial institutions Overnight deposits Total cash and cash equivalents Certificates of deposits with other financial institutions Securities available for sale Securities held to maturity Loans held for sale, at market value Loans to members, net of allowance for loan losses Accrued interest receivable Premises and equipment, net NCUSIF deposit Mortgage servicing rights, net Goodwill and other intangible assets, net Other assets TOTAL ASSETS LIABILITIES AND MEMBERS’ EQUITY Liabilities Deposits Borrowed funds Accrued expenses and other liabilities Total liabilities Total members’ equity TOTAL LIABILITIES AND MEMBERS’ EQUITY

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$

12,984,440 495,505 13,479,945 1,745,184 91,590,801 98,000 3,992,491 881,043,435 3,537,877 30,930,962 8,951,872 4,288,814 1,817,625 15,321,776

$

1,056,798,782

$

905,984,178 17,966,485 19,054,048 943,004,711 113,794,071

$

1,056,798,782


CAP COM FEDERAL CREDIT UNION AND SUBSIDIARIES Consolidated Statement of Income For the Year Ended December 31, 2013 2013

(Unaudited)

INTEREST INCOME Loans to members Securities and investments Overnight deposits and other

$ 40,135,878 1,276,712 190,157 41,602,747

Total interest income

INTEREST EXPENSE Deposits Borrowed funds Total interest expense

4,534,860 54,880 4,589,740 37,013,007

Net interest income before provision for loan losses

3,150,000

PROVISION FOR LOAN LOSSES

33,863,007

Net interest income after provision for loan losses NON-INTEREST INCOME Commissions and member service fees Card interchange fees Mortgage banking income Investment and brokerage services Insurance premiums Net loss on securities available for sale Other

5,970,610 5,554,380 6,933,026 1,960,449 2,027,930 (144,246) 845,737 23,147,886

Total non interest income

NON-INTEREST EXPENSE Compensation and employee benefits Office operations Loan servicing Card servicing Office occupancy and equipment Marketing and promotions Data processing Professional fees and services NCUSIF corporate stabilization Other non interest expense

24,425,969 3,167,360 2,172,206 3,397,948 2,936,886 2,030,519 2,073,127 1,523,988 716,150 1,821,797

44,265,950

Total non interest expense

12,744,943 (123,727)

CONSOLIDATED NET INCOME Net income attributable to non-controlling interest TOTAL NET INCOME

$

12,621,216

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Report of the Chief Mortgage Officer

The success enjoyed by CAP COM’s Mortgage Division in 2013 was based on a simple formula. We offered competitive Mortgage rates and delivered unmatched commitment to member service. You can see that in the words of Tamara Marziani, a CAP COM member who worked with Licensed Mortgage Expert Eric Cruz. Tamara was part of a newsletter story in 2013 and told us: “CAP COM’s Mortgage Experts were fast and knowledgeable. We love our house!” Those words are a reflection of our trustworthiness and outstanding service. At the end of the day, it is those qualities that helped CAP COM’s Homeowners Advantage Mortgage Division close 1,875 loans for $308.5 million in 2013. Today, we look forward to continued success in 2014 and our big move from offices on New Karner Road to the new Financial Center near Wolf Road. The move comes as members continue to enjoy low Mortgage rates and a healthy real estate market in the Capital Region. Many new homeowners worked with us to finalize a Mortgage while many others elected to refinance at a lower rate. It is a great time to buy or refinance. The steady Mortgage activity meant our dedicated team of Licensed Mortgage Experts had a lot of late nights at work. The 34 staff members at the Mortgage Division worked very hard to make the Mortgage process easy and hassle-free. All of us at CAP COM take great pride in their hard work and outstanding service. In fact, during the first three months of 2013, our Mortgage Division closed almost $106 million, accounting for more than 34 percent of our annual volume. And in January alone, the Mortgage Division closed 249 loans totaling $42.8 million. Part of that Mortgage activity came from our popular 30-year fixed rate New Construction Loan. The loan features a 270-day rate lock so that members don’t have to worry about rate changes during construction. It is one of the most competitive construction financing options on the market. 10

In 2013, we also unveiled new 30-year Adjustable Rate Mortgages with a convenient QuickCash option. Members can enjoy lower monthly payments up front and the option of getting QuickCash as they need it over the first 10 years to pay for high-rate debt! To celebrate some of our hard work, CAP COM honored Licensed Mortgage Expert Rob Synder with a TOP Employee Award in 2013. It was the second year in a row that Rob was honored with the award! As a Senior Mortgage Specialist, Rob is known for extensive Mortgage knowledge and ability to make lasting connections with customers. Rob is just one member of our committed team. In fact, four of our Licensed Mortgage Experts each originated more than $43 million in new loans in 2013, which is truly a milestone achievement in the Mortgage industry. Behind all these numbers is the fact that our Mortgage Division services nearly all of our Mortgages locally. Loan servicing includes accepting payments, answering questions, paying taxes and paying insurance fees. It also features convenient tools like online Mortgage payments. The staff at the Mortgage Division is today hard at work building another outstanding year. On behalf of the entire staff at CAP COM’s Mortgage Division, I would like to thank the staff, Board members and volunteers from across the Credit Union for all the support and recognition we have received.

Chris McKenna, Chief Mortgage Officer

Mortgage products are offered by our Mortgage Team, Homeowners Advantage, which is a subsidiary of CAP COM FCU. Mortgages in New York State only. Home loan interest may be tax deductible. Consult your tax professional about deductibility in your situation. HOA is a Licensed Mortgage Banker - NYS Dept. of Financial Services. HOA NMLS Identifier: 290363. Principal Address: 453 New Karner Road, Albany NY 12205. CAP COM FCU NMLS Identifier: 401261


Report of the Chief Investment Officer

CAP COM Federal Credit Union is poised for success as it prepares to move to a new Financial Center. CAP COM Financial Services, LLC stands with the Credit Union as an industry leader. We help members plan for a bright financial future, get the right insurance, retire comfortably and establish a legacy. CAP COM Financial Services debuted in 1989, later expanding to the Latham Branch, and will soon be part of the new Financial Center on Winners Circle. We have always helped members discover exciting and impactful ways to address their financial needs. We have done this while remaining a professional advisory firm with a credit union attitude. CAP COM Investment Services In 2013, our strategies helped produce income for our clients during a year of slow but steady economic growth. Amid growth, we stayed true to a disciplined approach that monitors risk for our clients. We use a combination of asset allocation, product diversification and alternative investments to build plans for a variety of needs. We help clients consider all types of markets and economic environments. Asset allocation and diversification do not ensure a profit or guarantee against loss. In 2013, we experienced a bull market for stocks and a bear market for quality bonds. We focused on helping clients manage risk with return by focusing on their individual needs. We moved from focusing on managing credit risk to interest-rate risk. Both can adversely impact financial plans, though managing interest-rate risk is a better than handling the credit issues we experienced in 2008 and 2009. Our focus on individual needs, professional advice, and a credit union attitude helped bring in more than $45 million new dollars under management. Our techniques and relationship with the largest broker dealer in the nation, LPL Financial, helped our clients work towards their goals of protecting their families, establishing a healthy retirement income, and creating a legacy that lasts.

CAP COM Financial Services, LLC We proudly offer an expanding array of products and services. Our salaried LPL Financial Advisors use these tools to provide unbiased retirement, insurance, estate planning and tax advice. In 2013, we helped our members get Life Insurance through their Credit Union with our Licensed Branch Representatives. We gave our members the ability to interact with an insurance representative in the branch, as well as over the phone or through a mailed application. As always, we will work with our members to grow their wealth, produce retirement income and get insurance to protect their family and legacy. We also had a record number of members use our tax preparation service to prepare their income tax returns in 2013. Another cornerstone to our success is our Educational Workshops Program, which has been a benefit to our business partners for many years. We use our expertise to provide you with simple strategies for sometimes complicated and unique financial needs. That is exactly what you should expect from a financial advisory firm committed to your needs. We look forward to seeing you soon!

John M. Shartrand, Chief Investment Officer CAP COM Financial Services, LLC Securities offered through LPL Financial, Member FINRA/SIPC. Insurance products offered through LPL Financial or its licensed affliates. Financial planning offered through CAP COM Financial Services, LLC, a Registered Investment Advisor. CAP COM Financial Services and CAP COM Federal Credit Union are not registered broker dealers and are not affiliated with LPL Financial. Not NCUA Insured May Lose Value No Credit Union Guarantee Not insured by any Federal Government Agency Not a Credit Union deposit

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2013 Annual Meeting Agenda

61st Annual Business Meeting called to order and quorum established Edward Gilligan Motion to accept agenda Edward Gilligan Report of the Board of Directors Edward Gilligan Report of the President/CEO and Report of the Foundation Paula Stopera Report of the Supervisory Committee John Ericson Report of the Nominating Committee James Thomas Receipt of the Nominating Committee Report Patrick Kelly New business Edward Gilligan Presentation of the Making A Difference Award Cassandra Gazeley and Paula Stopera Presentation of the Art Goedeke Scholarship Paula Stopera Recognition of 2013 TOP Employees Paula Stopera Unfinished business Edward Gilligan Motion to adjourn Edward Gilligan

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Up For Re-election CandidatesCandidates up for re-election

Elections for three open seats on the Credit Union Board of Directors will be held at the meeting. The Nominating Committee has nominated three candidates for three-year terms.

Edward Gilligan has been a Credit Union member since 1957 and has served on the Board of Directors since 1993. He retired from the New York Telephone Company in 1997 after more than 41 years. He has been Chairman of the Board since 2000 and has also served on the Supervisory Committee and the CAP COM Financial Services Board. Other committees include: Volunteer Recognition/Training, Volunteer Recruiting, Volunteer Activities and Nominating. Gilligan has also been an active volunteer with the Albany Police Athletic League and the Telephone Pioneers.

Mark Marchand is the Vice Chairman of the CAP COM Group Board of Managers and has served on the Credit Union’s Supervisory Board Committee. He currently also serves as a member of the Board of Directors. He was the Director of News and Editorial Services at RPI from 2010 until 2013. In 2007, he retired as a senior manager in Corporate Communications at Verizon Communications after 24 years. Marchand was a national spokesperson and performed functions ranging from community relations to media relations. He is an associate member of the Board of Managing Directors at Albany’s Parsons Child and Family Center. He is a graduate of the University of Massachusetts at Amherst, with a bachelor of science degree and a minor in journalism..

William Fitzpatrick grew up and attended high school and college in Troy, N.Y. While attending Hudson Valley Community College, he met his wife, Joan, and they have been married for 42 years. The couple has two daughters, two grandsons and welcomed a granddaughter in December. During four years in the U.S. Air Force, Bill achieved the rank of staff sergeant and served as a crew chief for DC-9 medical transport planes and F-100 fighter planes. Bill retired from General Electric after 34 years of service and has served on the Board of Directors since 2005. 13


60th Minutes 60thAnnual AnnualMeeting Meeting Minutes Board Members Present Mr. Ed Gilligan Mr. Harold Horning Mr. Dan Johnson Mr. Patrick Kelly Ms. Paula Stopera Mr. Jim Thomas Ms. Patricia Walbroehl Mr. William Fitzpatrick Mr. Mark Marchand Call to Order Chairman Gilligan welcomed the attendees to CAP COM Federal Credit Union’s 60th Annual Meeting. He declared a quorum was present with 250 members in attendance and called the meeting to order at 5:30 p.m. Mr. Gilligan led the attendees in the Pledge of Allegiance followed by a moment of silence in honor of those who have and are currently serving in the military. Mr. Gilligan introduced the Board of Directors and the Board of Managers and the Supervisory Committee members. Mr. Gilligan informed the attendees that the meeting would be conducted in accordance with the Bylaws of CAP COM Federal Credit Union and Robert’s Rules of Order. A motion was made by David Jurczynski, seconded by Johanna Robbins, “To accept the agenda as printed in the Annual Report.” Carried. Acceptance of Minutes Minutes of the 59th Annual Business Meeting held on March 14, 2012 were added to the Annual Report which was distributed to all members prior to the business meeting. A motion was made by John Ericson, seconded by Carie Sala, “To accept the minutes of the March 14, 2012 Annual Business Meeting.” Carried. Board of Directors Report Mr. Gilligan welcomed everyone to the 60th anniversary celebration and Annual Meeting and delivered a speech in which he discussed the following topics: The Credit Union has grown well beyond our original offices on State Street in Albany by staying focused on our vision and mission. This mission requires staff and leadership to continually evolve. Mr. Gilligan said CAP COM’s headquarters will be located a mile beyond our current branch and will meet the needs of our growing membership and support staff. He noted that the quality of leadership and staff continues to be stellar and our sterling reputation comes from the hard work and spirit of service delivered every day to every member. Exciting programs such as school banking, and Mobile Banking programs were reviewed. Remote Deposit application was added to a list of 14

mobile banking options for our members. Mr. Gilligan said our strategic goals continue to support the fundamental role of a financial institution; to be safe and sound and to offer convenience and to maintain a high level of service and value. A motion was made by Bruce Coffin, seconded by Danielle Carusone, “To accept the Report of the Board of Directors.” Carried. Report of the President/CEO and Report of the Foundation Ms. Stopera thanked the membership for attending and introduced the Senior Team. It was announced that the Credit Union would soon pass 93,000 members and the $1 billion in asset mark. A video was shown to illustrate our friendly, caring and cooperative spirit. The Annual Report reviews the year’s financial position, which is as strong as ever, Stopera said. The CAP COM Cares Foundation brochure highlights a year of giving and the 10th year of charitable and volunteer efforts for that portion of our business. Discussion followed on the ways in which we raise money and the local organizations and programs we partner with to make a difference in our community. Discussion was held on our Mortgage Division and the expansion and success it has realized. Also reviewed were the awards achieved during the year including: Raddon Financial Crystal Performance Award based on growth, income, efficiency and margin; CAP COM was voted best in overall customer service in the May 2012 issue of Capital Region Living Magazine and received the Van Rensselaer Corporate Award, issued by the Rensselaer Chamber of Commerce in recognition of our support of quality of life, civic groups and community organizations. A motion was made by John Parente, seconded by Sharon Phillips, “To accept the Report of the President/ CEO and the Report of the Foundation.” Carried. Report of the Supervisory Committee Mr. John Ericson delivered the report of the Supervisory Committee. He acknowledged the efforts of those that serve on that committee and introduced them to the membership. The committee is appointed by the Board of Directors and is committed to making sure that the members’ funds and interests are protected and that the Credit Union’s financial condition is fairly and accurately represented. Mr. Ericson introduced the Supervisory Committee Members – including new members Christine Hayes and James Yando, as well as the partnership with the Internal Audit Department and introduced the staff of that area. The annual audit was performed by UHY Advisors LLP for the year ended Dec. 31, 2012. The audit was


Candidates up for re-election conducted in accordance with generally accepted auditing standards, which required that it be planned and performed in order to obtain reasonable assurance the financial statements are free from material misstatement. This audit also assesses the operations of the Credit Union and determines that no material weaknesses exist. A copy of the consolidated financial statements may be obtained from the Credit Union upon written request. In addition to these audits, the National Credit Union Administration (NCUA) performs a periodic regulatory examination. Mr. Ericson extended his thanks to the Supervisory Committee and the Internal Audit Department and to the membership for their business. A motion was made by Robert Roemer, seconded by Willow Dannible, “To accept the Report of the Supervisory Committee.” Carried. Report of the Nominating Committee Mr. Bill Fitzpatrick reported that in 2003, the Credit Union bylaws were amended to convert to a nomination by petition election process. The nomination by petition process requires that any member not already nominated by the Nominating Committee must submit a petition to the Credit Union’s Board of Directors in order to be included on the slate of candidates who are running for open Board seats. The membership was notified of this requirement in January of this year by way of a notice in the January/ February Lines of Communication, in the Credit Union lobbies, and on the website. The deadline to submit petitions and necessary forms was February 9, 2013. No nominations came forward from the membership, so the Nominating Committee presented:

Art was a longtime member of the Credit Union. Art worked for Verizon and contributed significantly to the developing world of information systems. Art was a Board member for many years, donating countless hours of his time and expertise to help form the Credit Union into the strong financial cooperative we proudly belong to. The scholarship was awarded to Matthew Bytner, who is attending Hartwick College. Presentation of the Making A Difference Award Winners Youth Coordinator Danielle Sprague presented the awards for our 2013 Making a Difference Award winners. This award was established to honor our young adult members who are making a difference in our community. The individuals who won (listed below) were chosen for their countless hours and dedication to their community. – First Place awarded to Pascale Stain – Second Place awarded to Joseph Garry – Third Place awarded to Stephanie Kebart Unfinished Business/Door Prize Drawing Ms. Stopera announced the Credit Union’s Top Employees of the year: – Top Sales – Rob Snyder – Top Service – Brendan McCoy – Top CUSO – Noreen Connor – Top Support – Danielle Sprague – Employee of the Year - Maria Smirensky Adjournment A motion was made by John Ericson, seconded Rich Amadon, “That this meeting be adjourned.” Carried.

1) Paula Stopera 2) Dan Johnson 3) Jim Thomas

Chairman Gilligan adjourned the meeting at 6:30 p.m.

as candidates for election to the Board of Directors for three-year terms.

Approved,

Elections A motion was made by John Ericson, seconded by John Shartrand, “To cast one ballot for the entire slate of candidates presented by the Nominating Committee.” Carried. New Business There was no new business. Presentation of the Art Goedeke Memorial Scholarship Paula Stopera introduced the Art Goedeke Award. The CAP COM Cares Foundation, through the generosity of the Art Goedeke family, is honored to present the annual Art Goedeke Memorial Scholarship.

Respectfully submitted,

Daniel Johnson Secretary/Board of Directors Edward Gilligan Chairman/Board of Directors

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Scholarships and Awards 2014 Art Goedeke Scholarship Winner The late Art Goedeke was a longtime Credit Union member with a passion for computer science and information technology. In 2006, his family set up an annual memorial scholarship of $2,000 to help a student with similar career aspirations. This award is given to a CAP COM member who is a graduating high school senior or student under the age of 25 currently attending college and pursuing an undergraduate degree in computer science or information technology. The 2014 winner of the Art Goedeke Scholarship is Jacob Clouse, of Ravena-Coeymans-Selkirk Senior High School. Jacob plans to study computer science in the fall.

2014 Making a Difference Award For the past 14 years, CAP COM Federal Credit Union’s Making a Difference Awards have been given to members in middle or high school who show outstanding commitment to community service and volunteering. These awards celebrate our teen members who embody the credit union philosophy of “people helping people.” Awards First Place: Second Place: Third Place:

$1,000 $ 500 $ 300

Award money will be deposited into an 18-month CertifiKID in the winner’s name. In addition, winners will also receive $100 to donate to the charity of their choice. Making a Difference Finalists Morgan Olsen Guilderland High School Arianna Yhann Bethlehem Lab School Zilpa Oduor Albany High School

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Phone numbers and website CCFCU Phone (518) 458-2195 CCFCU Toll Free (800) 468-5500 CCFCU Fax (518) 458-2261 Touch-24 (518) 458-8986 Touch-24 Toll Free (800) 634-2340 Website & Mobile Banking www.capcomfcu.org

Branch locations Albany (Main Office and mailing address) 18 Computer Drive East Albany, NY 12205-1168 Brunswick 799 Hoosick Road (Route 7) Clifton Park 1744 Route 9 Cohoes 219 Ontario Street Colonie 341 New Karner Road (Route 155) Glenmont 384 Bender Lane Glens Falls 8 Glens Falls Tech Park (Off Dix Avenue) Latham 4 Century Hill Drive Niskayuna 582 Balltown Road North Greenbush 233 North Greenbush Road (Route 4)


Federally insured by NCUA


2013 CAP COM Annual Report