2014 Annual Report

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Moving Forward Together

Annual Report 2014


Board of Directors

Senior Management

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

Paula Stopera – President/CEO David Jurczynski – EVP/Chief Financial Officer Diana VanAmerongen – Chief Operations Officer Edward Glenning – Chief Technology Officer Chris McKenna – Chief Mortgage Officer Sharon Phillips – VP of Marketing & Public Relations Johanna Robbins – VP of Finance Robert Roemer – VP of Innovation & Project Management John Shartrand – Chief Investment Officer CCFS Ginny VanAmburgh – VP of Mortgage Operations Cliff Carignan – VP of Consumer Lending

Supervisory Committee John Ericson – Chairman James Thomas – Vice Chairman Paul Dettenrieder – Secretary Christine Hayes – Member George Lenhardt – Associate Member Judy Sogoian – Associate Member Kyle Rueckert – Associate Member

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


2 Welcome 5

Report of the Board Chairman

6

Report of the President/CEO

9

Report of the Executive Vice President/Chief Financial Officer

10

Consolidated Statement of Financial Condition

11

Consolidated Statement of Income

12

Report of the Chief Mortgage Officer

13

Report of the Chief Investment Officer

14

Annual Meeting Agenda

15

Candidates up for Re-election

16 61st Annual Meeting Minutes 18

Art Goedeke Scholarship Winner and Making a Difference Award Finalists

20

TOP Award Winners


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Welcome Come into our branch and make yourself at home. We’ll take care of all your financial needs – it’s what we do best. More than great rates, warm coffee and outstanding service, you’ll find people who will truly listen and act as an advocate to make sure you have the products and services that make your life easier. We want to know how your day is going and, how we can make it better. “We were impressed by the way you treated people. From the moment we walked in the door, it was awesome,” Norman, Clifton Park.

Thanks for Calling It may be one of our busiest hubs, but you’ll never know it when you are on the phone – you are our top priority. With advanced technology at our fingertips and a wealth of knowledge, our staff members are dedicated to helping you efficiently and completely. We hope to resolve your questions and get you back to your life as quickly as we can – still, we’ll stay connected until you are satisfied.

On the Go We’ll be there when you need us, wherever you are. Secure access to your account is a click away with online and mobile banking. Need answers even faster? We can text it to you! Find out how we make banking easier when you are on the go. We stay on the cutting edge of technology, because that is where you are. Join our social networking community for important updates and a little bit of fun, too. “It’s nice to keep something from home,” said Justin, a U.S. Marine stationed in California, when asked why he continues to bank with CAP COM.

Play The kids love it here! Whether just watching the fish for a moment or proudly handing over their report cards, our young members know this Credit Union is theirs, too. And, we love watching them grow. We can help you teach them the importance of saving, celebrate their academic success and navigate your journey with your college-bound child. Or, just let them play for a minute more. “When I heard about all the great programs CAP COM had for kids, I was blown away,” Stephanie, Clifton Park.


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Come into our branch and make yourself at home. We’ll take care of all your financial needs – it’s what we do best.


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When you find someone you trust to help with the important decisions – when they make life a little easier for you – you share that experience.


Report of the Board Chairman | 5

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s we look back on the accomplishments of the past year, we can easily use numbers to measure what success looked like. The numbers speak for themselves and we saw steady growth in 2014. But when I look at the numbers, I see members. For instance 9,777 is the number of new members who joined our Credit Union family in 2014; people who wanted a different way of banking and found what they were looking for at CAP COM. I believe that kind of growth is a testament to the service our members receive in the branch, on the phone, or when they visit our website. When you find someone that you trust to help with the important decisions – when they make life a little easier for you – you share that experience with your friends and family. CAP COM was honored by Capital Region Living readers who voted us “Best in Service” and “Best Credit Union” in 2014. That service culture is something that has not wavered over the past 62 years. With every interaction we strive to benefit every member, every time, every day. As our world becomes more mobile, so do our members. We are rolling out the technology you need to keep pace, such as an iPad app. Also, enhancements to Remote Deposit will make it even easier for you to deposit checks using your smartphone. In 2014, we saw an increase of more than 7,000 people who bank online using our secure Connect-24 platform. Almost one-third of our members use our mobile banking app. To enhance that member experience, both CAP COM and CAP COM Financial Services launched redesigned websites in 2014 with responsive technology – the sites automatically resize to your device, optimizing your viewing experience. They are easy to navigate and provide educational resources to help you as you consider some of the most important financial decisions in your life.

Still, we know that many members rely on the brick and mortar branch to do their banking. The addition of a new branch on Route 9 in Malta will give us a greater presence in the northern part of the Capital Region and we look forward to having more face-toface interactions with our members there. As a credit union, CAP COM has always made education a priority. We are dedicated to making sure our members have the information they need to make confident financial decisions. Even though our workshop for first-time homebuyers reached maximum capacity twice last spring, we revamped it to appeal to even more types of homebuyers and to stay current, fresh and laser-focused. Our College Bound Program continues to earn the praise of college students and their families who found the information they were looking for at our series of workshops to help them navigate the journey. In order to ensure we are the best possible advocates for our members, staff completed nearly 9,500 hours of training during 2014. CAP COM leadership has always felt that a superior member experience begins with making sure staff members have all the tools they need. We’ve made it our goal to create a united force of successful professionals and volunteers who passionately support the concepts and principles of this Credit Union. We believe that our brand of unique member service is the result of this dedication, and we couldn’t be more proud of the fact that we’ve been recognized for 11 years in a row by the Albany Business Review as a Best Place to Work in the Capital Region. I want to thank our members, the staff and my fellow volunteers for their support during 2014. As we move forward together, I look forward to where the future will bring us.

Edward A. Gilligan, Board Chairman


6 | Report of the President/CEO

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t this time one year ago, we were waiting for the nod to start moving into our new home at 4 Winners Circle. By the end of June, we had moved approximately 213 staff members, from seven different divisions of our business, into their new workspaces and had relocated our Main Office Branch to the CAP COM Financial Center. I hope you have had a chance to visit the beautiful building. It certainly feels like home to all of us. With room to stretch our legs and creative spaces that allow staff to collaborate in new and more efficient ways, this building has brought all of our talent together so we can create even better experiences for our members. As we look to the future, we prepare to keep moving forward, together. For you, the members, that means a new branch location on Route 9 in Malta, coming in early 2016. Pushing our branch footprint further north with our new Malta location will allow us to better serve those members who live and work in northern communities. We’ll introduce “Shared Branching” in late spring, allowing our members to take advantage of a nationwide network of branches that will be open for you to conduct your CAP COM business, wherever life may bring you. We’ll also team up with SWBC Insurance Partners to expand the insurance products we offer and find you the best rates we can. We’ll continue to make technological advances in the coming year to help keep you moving while you are on the go. Did you know that you can check your account balance and transfer funds in an instant using Text

Banking? We’ve rolled out a new iPad app and we’re integrating Remote Deposit into our mobile app so it’s easier for you to make deposits when you are not near a branch. During 2014, our mortgage subsidiary Homeowners Advantage helped 981 members complete a first mortgage for a total of more than $164 million in mortgage lending. Our members can attest that great rates are just the beginning at CAP COM. Your mortgage division will be with you every step of the way. Our car buying experts helped 1,806 people purchase the right car at the right payment. And, our consumer lending experts completed 10,733 loan applications for a total of $118,493,501 in consumer loans such as low-rate Auto and Home Equity Loans. The heartbeat of our community Fueled by the compassion of our members, staff and volunteers, the CAP COM Cares Foundation reached an important milestone in 2014, with more than $2 million in donations to area organizations. In 2014, we donated $240,000 to local charities, community projects and organizations. I can’t tell you how proud I am of the impact our Foundation has been able to make since it was created in 2003. Thank you for your generosity! It’s your support of our BIG Benefit Raffles and the annual golf tournament that allows us to make a difference in our community. We partner with nearly 100 organizations that support health and wellness programs, educational initiatives and families in need. Together, we raised more than $26,000 for the American Cancer Society at the local Making Strides Against Breast Cancer Walk in October. Our largest team ever walked to support cancer research and programs that help those families fighting cancer find the strength and courage they need on their journey. As we continued to build a relationship with the American Heart Association, we gave $8,000 to support


Report of the President/CEO | 7

awareness of heart health. We also encouraged 10 of our School Banking partner schools to participate in the Jump Rope For Heart Program, with donations to their Physical Education departments and prizes for top fundraisers. You helped us award more than $65,000 in scholarships to give our young leaders a chance to reach for their dreams. A $100,000 commitment over the next five years will help the St. Peter’s Health Partners Campaign reinforce healthcare in Rensselaer County with the rehabilitation of area hospitals. This donation will also help keep people from having to choose between buying groceries and life-saving prescriptions. Together, we made sure kids had backpacks filled with school supplies on their first day of school last fall. More than 250 children had new warm winter coats at the start of this frigid winter. A complete, healthy holiday meal was delivered to more than 300 families for Thanksgiving – that’s double the number of meals we delivered in 2013. Of those families, 80 were identified with the help of School Banking partner schools. It takes 45 volunteers to make the Thanksgiving deliveries happen on time. I am constantly uplifted by the spirit with which CAP COM staff and volunteers come together to make our Foundation successful. In 2014, more than 1,000 volunteer hours were donated. Some of these secret angels purchased and wrapped over 200 gifts for area seniors in time for Christmas and, at the last minute, adopted several families to help make the holidays just a little more magical. CAP COM is more than just a financial institution. We foster partnerships that are the heartbeat of a better community. We are here for you and your family and, together, we’ll keep moving forward toward a better future for us all.

Paula A. Stopera, President/CEO

We’ll keep moving forward toward a better future for us all.


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We believe in managing risk so the future is bright and built on a solid foundation.


Report of the Executive Vice President/Chief Financial Officer | 9

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continued commitment to managed growth and prudent banking practices has carried our Credit Union through these uncertain economic times. As a result of this commitment, our members have gained confidence in our financial performance and an ongoing expectation that their Credit Union will be strong and financially stable. I am proud to say that in 2014, we were once again able to achieve outstanding results with strong growth in total assets and net worth. Asset growth in 2014 pushed CAP COM even further past the milestone of $1 billion in assets that we achieved in 2013. Total assets ended 2014 at $1.143 billion – an increase of $85 million, or 8.1% for the year. At year end, our net worth ratio was 11.2%, up from 10.8% at the end of 2013. The fiscal strength of the Credit Union is evidenced by a strong net worth and has been acknowledged as “well capitalized” by CAP COM’s federal regulators, the National Credit Union Administration (NCUA). This is the NCUA’s highest designation for capitalization. That kind of steady, upward advancement in net worth positions us well for the years ahead. We can attribute our success to the careful and fiscally conservative practices assumed by our leadership team. Financial institutions that took excessive risks over the past few years have suffered with poor fiscal strength and weak performance. We believe in managing risk so the future is bright and is built on a solid foundation. CAP COM’s continuing growth is also the result of a wider presence achieved in New York’s Capital Region and a growing relationship with our membership via all channels, including web and mobile. This past year we saw an increase in membership to more than 116,000 members – that’s a 45% increase from nearly 80,000 members just five years ago. Loans increased $79 million in 2014 over a year ago with real estate, auto and member business loans increasing at the greatest pace. It also proved to be a record year for auto loans to our members with nearly $100 million in production. This kind of success is what allows us to continue searching for and adding the products and services that benefit you, the member.

The persistent, steady growth we’ve enjoyed over the past several years facilitated a need to expand into our new CAP COM Financial Center. The building brings together all divisions of our Credit Union and our performance will be further enhanced by the synergies we expect to achieve working under the same roof. We are positioned to continue growing for decades to come. We will maintain a focus on conservative and prudent fiscal management strategies. Our number one priority is preserving our fiscal strength, so we can continue to make sure you have the resources and education you need to make important financial decisions for you and your family. Thank you for the trust you place in CAP COM and for your continued loyalty to the Credit Union’s vision.

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

Total Assets $1,200,00,000 $1,100,00,000 $1,000,00,000 $ 900,00,000 $ 800,00,000

2010 2011 2012 2013 2014

Net Worth Ratio 12.00% 11.00% 10.00% 9.00% 8.00%

2010 2011 2012 2013 2014


10 | Consolidated Statement of Financial Condition

CAP COM FEDERAL CREDIT UNION AND SUBSIDIARIES Consolidated Statement of Financial Condition December 31, 2014 2014

(Unaudited)

ASSETS Cash and cash equivalents Securities available for sale Securities held to maturity Loans held for sale, at market value Loans to members, net of allowance for loan losses Premises and equipment, net NCUSIF deposit Goodwill and other intangible assets, net Other real estate owned 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

$

15,972,438 72,806,853 1,500,843 4,808,365 954,914,093 48,142,122 9,192,584 5,575,284 998,816 27,860,717

$

1,141,772,115

$

975,992,812 20,089,938 17,056,607 1,013,139,357 128,632,758

$

1,141,772,115


Consolidated Statement of Income | 11

CAP COM FEDERAL CREDIT UNION AND SUBSIDIARIES Consolidated Statement of Income For the Year Ended December 31, 2014 2014

(Unaudited)

INTEREST INCOME Loans to members Securities and investments Overnight deposits and other Total interest income

$

42,856,192 1,471,449 22,987 44,350,628

INTEREST EXPENSE Deposits Borrowed funds Total interest expense

3,912,035 150,793 4,062,828

Net interest income before provision for loan losses

40,287,800

PROVISION FOR LOAN LOSSES Net interest income after provision for loan losses

2,650,000 37,637,800

NONINTEREST INCOME Commissions and member service fees Card interchange fees Mortgage banking income Investment and brokerage services Insurance premiums Net gain on securities available for sale Net gain on disposal of other assets Other Total noninterest income

6,641,944 6,246,199 1,009,899 2,246,189 1,897,820 38,658 830,231 3,259,289 22,170,229

NONINTEREST EXPENSE Compensation and employee benefits Office operations Loan servicing Card servicing Office occupancy and equipment Marketing and promotions Data processing Professional fees and services Other noninterest expense Total noninterest expense

25,706,860 3,507,553 1,508,929 3,278,609 3,851,251 1,596,878 2,225,200 1,695,308 2,169,112 45,539,700

14,268,329 (57,943)

CONSOLIDATED NET INCOME Net income attributable to non-controlling interest

TOTAL NET INCOME ATTRIBUTABLE TO CREDIT UNION

$

14,210,386


12 | Report of the Chief Mortgage Officer

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he mortgage industry nationwide saw a decrease in the number of home sales last year, coupled with the decline of the refinance boom. Locally, home sales were down as much as 2% in the Capital Region area. Homeowners Advantage’s (HOA) year-end numbers were in line with the local trends with 981 closed mortgage loans in 2014 for a total of just over $164 million. The most notable change in 2014 was that HOA recognized a need to compensate for the decline in refinances and strived to grow our purchase business. This will continue to be our focus going forward. It is crucial that we continue to reach outside our membership to both consumers and Realtors, and become known as a mortgage leader in the local market. While most industry predictions indicate these kinds of trends will continue, as we look ahead, we expect a 25% increase in production. And the reason is simple – it’s more than just great rates. Purchasing a home is one of the biggest financial commitments a person will make in a lifetime and we are committed to making sure we provide the kind of support and knowledge you need to purchase with confidence. You can trust the dedicated and knowledgeable experts at HOA to help you with this important financial decision. A full staff, including 10 licensed Mortgage Loan Originators, is there for you every step of the way with an understanding that comes only from years of experience in the industry. Our First-Time Homebuyers Workshop reached maximum capacity twice in the spring of last year. It has become so popular, that we’ve changed the format so that we can help even more kinds of homebuyers. In an article that ran in our Fall Lines of Communication, our member Nicole told us that our workshop allowed her to make her dream home a reality. “Without it, I would not have known all the possibilities available for financing, and I truly believe I wouldn’t be living in my dream home,” she said. We have the best products in the market and they get better each year as we create products to meet the

changing needs of our community. Take advantage of a portfolio of loans that includes mortgages with minimal required down payments and no Private Mortgage Insurance (PMI). Low or no down-payment mortgages are also available and, if our members need a long-term rate lock with float down options, we can help. Our move to the CAP COM Financial Center at 4 Winners Circle makes CAP COM a true one-stop shop. A child’s first Savings Account, your Checking Account and Bill Pay, someone to help you with your long-term saving needs, your teenager’s first car loan, home equity loans and our mortgage products can truly meet the financial needs of your entire family. There is no reason to go elsewhere and our members enjoy taking care of business all in one building. Of course, we have great rates – really competitive rates – and, in early 2015, we already have mortgages closing at a pace we have not seen since 2012. Our staff has hit the ground running to keep stride with what looks to be a busy year. Thank you for continuing to put your trust in our expertise when it comes to financing your home.

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: 4 Winners Circle, Albany NY 12205. CAP COM FCU NMLS Identifier: 401261


Report of the Chief Investment Officer | 13

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f Mark Twain were writing about the 2014 market – the title of his work would have been “The Reports of My Death Have Been Greatly Exaggerated.” In 2014 a majority of research pointed to an overdue stock market correction and government bond price correction. But the reality was totally different – the stock market continued its bull run with double digit gains and government bonds rallied again. We helped our clients finish 2014 appropriately and, more importantly, prepared them for 2015. We believed the volatility anticipated in 2014 would appear in 2015 and, so far, that’s what has happened. Our needs-based approach is built upon the credit union philosophy of “People Helping People.” With more than 2,000 clients and $361 million in assets under management, we can help you work toward financial goals that make sense for your life. CAP COM Investment Services In 2014, all CAP COM advisors were once again acknowledged among the top advisors in the nation by our broker dealer LPL Financial. Our success is predicated upon a team of Advisors and Client Service Associates who begin building relationships from the first call. We believe in making sure our clients have guidance and knowledge that empowers them to make strong decisions for their future. For more than 20 years we have been thinking outside the office – bringing retirement and financial planning workshops to people where they work as an employee benefit. In 2014, we increased the workshops we offer and we’ll continue that trend with workshops that better target the individual needs of people based on their life stage. Our Retirement Bound workshops in the spring and fall helped hundreds of members discover the five most important steps to pave the way to a happier retirement. A workshop dedicated to helping women Securities offered through LPL Financial, Member FINRA/SIPC. Insurance products offered through LPL Financial or its licensed affiliates. 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.

investors will speak to the specific needs women have in retirement. And, our informative Emerald Circle luncheons are always well attended. We’ve also designed a wellness series for companies called Your Money @ Work that covers general financial topics – because helping people resolve their financial stress benefits everyone. CAP COM Financial Services CCFS remains at the forefront of advancing technology and our website received a complete makeover. You’ll find useful information throughout the site at www.capcomfinancial.com. The new CCFS offices at the CAP COM Financial Center provide efficient collaboration and meeting spaces with plenty of room for future growth. And a growing team of Licensed Branch Representatives are available in all branch locations to help you. This summer, we’ll unveil CAP COM Insurance Services, offering a multi-carrier solution to potentially save you money on your auto and homeowners insurance. With access to 25 nationally known insurance agencies, we’ll work to get the right policy at the best price. Whether you’ve come to us for help preparing your taxes, growing your wealth, planning for retirement or protecting your investments for the future, we will continue to move forward, together. Thank you for trusting us to help you navigate the challenging markets and ever-changing economy.

John M. Shartrand, Chief Investment Officer CAP COM Financial Services, LLC Not NCUA Insured May Lose Value No Credit Union Guarantee Not insured by any Federal Government Agency Not a Credit Union deposit


14 | Annual Meeting Agenda

62nd 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 Daniel Johnson Receipt of the Nominating Committee Report Edward Gilligan 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 2014 TOP Employees Paula Stopera Unfinished business Edward Gilligan Motion to adjourn Edward Gilligan


Candidates up for re-election | 15

A Credit Union member since 1965, Harold Horning was the Credit Union CEO from 1984 to 1995. He’s been a Credit Union volunteer for more than 40 years and has been on the Board of Directors since 1974, serving as Chairman from 1997 until 2000. He has served on the CAP COM Financial Services Board of Managers and many other volunteer committees. Harold retired from NYNEX in 1984 after 31 years of employment and is an active member of the Telephone Pioneers of America, the NYNEX Alumni Council and is involved in various golf and bowling leagues.

Patrick Kelly has been a member of CAP COM since 1975 and a Credit Union volunteer for over 20 years. A member of CAP COM’s Board of Directors since 1992, Patrick is currently the board’s First Vice Chairman and is Chairman of the Board of Managers for the CAP COM Group. Patrick has chaired and served on several other volunteer committees. He is currently a manager at Verizon and enjoys spending his free time with family and friends.

The Nominating Committee has nominated two candidates for three-year terms.


16 | 61st Annual 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 the Capital Communications Federal Credit Union’s 61st Annual Meeting. He declared a quorum was present with 232 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 Capital Communications Federal Credit Union and Roberts Rules of Order. A motion was made by Lauren Reamon, seconded by Danielle Carusone, “To accept the agenda as printed in the Annual Report.” Carried. Acceptance of Minutes Minutes of the 60th Annual Business Meeting held on March 20, 2013 were added to the Annual Report, which was distributed to all members prior to the business meeting. A motion was made by Sharon Phillips, seconded by Diana VanAmerongen, “To accept the minutes of the March 20, 2013 Annual Business Meeting.” Carried. Board of Directors Report Mr. Gilligan welcomed everyone to our 61st Annual Meeting. The Credit Union enjoyed steady growth over the first 25 years in Albany before moving to the Wolf Road area in 1978. The Credit Union is now preparing for a move just down the street to Winners Circle. It has been a year in which staff and leadership team has remained dedicated to our membership. 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. The Credit Union team continues to bring its special

brand of member service to life and it is the primary reason it has grown to become the second largest Capital Region credit union. Products were highlighted such as free educational workshops, College Bound Program and Mobile and Web Banking tools. Mr. Gilligan assured our members 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. A motion was made by John Parente, seconded by Carie Sala, “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 we remain strong in our brand of service delivery by celebrating our 10th year as Best Places to Work winners as well as having been the Number 1 credit union in the country for member satisfaction since 2003. A brochure distributed about the Foundation was highlighted. It was noted the success of the program is evident by a benchmark of more than $2 million dollars given back to our community through the hard work and focus of our Foundation and its purpose since its inception. 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. Highlights also included the success of the consumer loan portfolio and commercial division, as well as efforts in serving more than 110,000 members through our online and branch channels, as well as school banking and a student run branch located at Shenendehowa High School. Ms. Stopera also announced open houses will be held for members to visit and tour CAP COM’s new headquarters.


61st Annual Meeting Minutes | 17

A motion was made by John Parente, seconded by John Ericson, “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 who serve on that committee and introduced them to the membership. As a committee that is appointed by the Board of Directors, 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, as well as the partnership with the Internal Audit Department and introduced the staff of that area. The annual audit was performed by CPA firm Crowe & Horwath, LLP for the year ended December 31, 2013. The audit was 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 Rich Amadon seconded by Robert Davis, “To accept the Report of the Supervisory Committee.” Carried. Report of the Nominating Committee Mr. James Thomas 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 Web site. The deadline to submit petitions and necessary forms was February 7, 2014. No nominations came forward from the membership, so the nominating committee presented 1) Ed Gilligan 2) William Fitzpatrick 3) Mark Marchand

Presentation of the Making A Difference Award Winners Cassandra Gazeley – Educational Initiatives Specialist – presented the awards for our 2014 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, as well as embody the credit union philosophy of “People Helping People.”

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

Unfinished Business/Door Prize Drawing Ms. Stopera announced The Credit Union’s Top Employees of the year: • Top Sales – Priscilla Luste and Rob Snyder • Top Service – Rebecca Simpson • Top CUSO – Donna Curtain • Top Support – Chris Foundas and Robin Maynard • Employee of the Year – Chris Caradori

Elections A motion was made by David Jurczynski, seconded by Robert Kaido, “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 our Art Goedeke Scholarship. Capital Communications Cares Foundation, through the generosity of the Goedeke Family, is honored to present the annual Art Goedeke Memorial Scholarship. A long time member of Capital Communications Federal Credit Union, Art worked for Verizon and contributed significantly to the developing world of information systems. Art was a Capital Communications board member for many years, donating countless hours of his time and expertise to help form the Credit Union into the strong financial cooperative it is today. This year’s scholarship was awarded to Jacob Clouse, a senior at RavenaCoeymans-Selkirk High School.

• First Place awarded to Arianna Yhann • Second Place awarded to Zilpa Oduor • Third Place awarded to Morgan Olsen

Adjournment A motion was made by John Ericson, seconded Anne Crandall, “That this meeting be adjourned.” Carried. Chairman Gilligan adjourned the meeting at 6:25 PM. Respectfully submitted, Approved,

Daniel Johnson Secretary/Board of Directors

Edward Gilligan Chairman/Board of Directors


18 | Art Goedeke and Making A Difference Award

Art Goedeke Scholarship

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.

Making a Difference Award

For the past 15 years, CAP COM Federal Credit Union’s Making a Difference Awards have been presented 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:

$2,000 $1,000 $ 500

Please take a moment to meet and congratulate all of this year’s outstanding young leaders.


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20 | TOP Award Winners


TOP Award Winners | 21

Every member, every time, every day We are honored to be the kind of organization that puts people first. These employees were recognized for epitomizing the credit union philosophy of “People Helping People” during 2014. Please join us in congratulating them. Theresa Silverman, Employee of the Year Theresa (center) was honored by fellow staff members as the employee who most exemplifies the CAP COM spirit. A CAP COM employee for nearly 32 years, she is known for making the impossible happen – with a smile. Her expansive product knowledge, attention to detail and dedication to outstanding service help her ensure members have the best possible experience. Candace Stazio, TOP Sales Ready to help with all your loan needs, Candace (far left) knows CAP COM products inside and out and has a true passion for helping members. Your loan is more than just paperwork; she understands how important it is to you and will review your individual situation to make sure you are getting the product that is right for you. Brian Hooks, TOP Service Brian (left center) comes to our Headquarters Branch every day with a “no problem” attitude. He strives to provide service that makes an impact on each member he sees – and succeeds. By carefully listening to the needs of our members, Brian makes sure they get the most out of their relationship with CAP COM. Michael Wiseman, TOP Support At the helm of the Project Management department, Mike (right center) is recognized as a “silent giant,” for diligently keeping projects on target. While you may not see him in a branch or speak with him on the phone, he plays a crucial role in helping develop the products and services that make your life a little easier. Sara Fox, TOP CUSO A member of CAP COM’s subsidiary Homeowners Advantage, Sara (far right) is well-versed in almost all aspects of mortgage lending. Known for being thorough and accurate, she takes pride in making sure your mortgage keeps moving efficiently through the process so you have everything you need to close on time.


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