2020 Annual Report TCT Federal Credit Union

Year of Resilience 2020 ANNUAL REPORT Messages of positivity via the drive-thru helped to keep the connection between staff and members strong.

TCT FEDERAL CREDIT UNION | tctfcu.org

CARING FOR OUR COMMUNITIES TCT donated food and personal care items to food pantries in our four branch communities and we sent a team to help distribute boxes of food to help relieve food insecurity.

Much needed bottles of hand sanitizer were provided to our Sheriff ’s Departments and snacks were given to medical workers to show our appreciation.

Our staff wore blue to raise awareness for colorectal cancer and TCT made a donation to the Glens Falls Hospital’s C.R. Wood Cancer Center and Randy’s Patient Assistance Fund.

TCT hosted a Shred Event and e-Recycling Event helping members securely shred documents and recycle electronics. We also sponsored our first Blood Drive with 46 staff and members attending - saving a potential 135 lives!

SMILING WITH THE EYES When our branches had to close their lobbies, we heard from members that were happy to see us still here, even through the drive-thru window. One member thanked us for the nice message on her envelope and said it was the positivity that she had been looking for to help her get through the day.

TCT has a long tradition of decking out the branches for Halloween and 2020 was no exception.

Milton did a take on Margaritaville (Why can’t Happy Hour be 9-5?), Clifton Park dressed as gnomes, Cambridge were stick people, and Queensbury transformed their branch into ‘The Office’.

Good & New IN 2020

MEMBER SOLUTIONS CENTER We implemented our Member Solutions Center in February to reduce time on-hold when calling a branch. Your phone calls were answered 38,000 times within two minutes by one of our Member Solutions Advisors working out of our four branches.

ATM DEPOSITS Our ATMs were upgraded to now accept deposits.

MOBILE APP Online Bill Pay was upgraded and is now part of our Mobile Banking app.

ONLINE FORMS Several electronic forms were added to our website, allowing you to change your address, make a debit card fraud claim, and more, at your convenience.

TEXT ALERTS Text Alerts capability was added making it easier for you to approve or deny suspicious debit card transactions from your phone.

LOAN SERVICING Our Loan Servicing Team helped members who were impacted by the pandemic by waiving late fees on loans and deferring payments.

ONLINE ACCOUNT OPENING Now you can open a TCT account for yourself or a child on our website.

VIRTUAL MEETINGS Can’t make it to a branch? You can still speak face-to-face with a TCT Member Service Representative virtually. Request a meeting right on our website.

MOVE MONEY We added functionality making it easy to transfer money from another bank or credit union to TCT.

FINANCIAL WELLNESS CENTER We added an online Financial Wellness Center with over 64 articles, 10 interactive coach sessions, 19 calculators and 3 courses for ages 8+ to help our members make informed financial decisions anytime.

Left to right: Diane Jilek (Supervisory Committee Chair), Thomas Havens, Carl Flint, Audrey Brownell

Supervisory Committee Report We are volunteers appointed by the Board of Directors and we oversee the independent audit process of our credit union. Our purpose is to ensure that our staff and systems follow appropriate guidelines that are designed to serve your needs and protect our credit union’s assets.

To accomplish our purpose, we personally perform audits on processes, we review multiple audits of our credit union’s operations by Wojeski & Company CPAs, PC, and our internal quality control. We meet five to six times a year to review our findings and the findings reported to us by Wojeski and quality control with our Chief Executive Officer, Curt Cecala and members of his management team. We also meet with Wojeski & Company separate from management and we meet separately with our federal regulator, the National Credit Union Administration. Our audits go well beyond the minimum requirements set forth by the National Credit Union Administration (NCUA).

We are pleased to report that our findings from this process indicate that the staff is performing their jobs reasonably in accordance with the policies set forth by our Board and procedures administered by management. We are satisfied with management’s responses to audit findings noted throughout the year.

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Last year we also performed a verification audit of our member accounts, effective March 31, 2020. There were no discrepancies reported by members. If you find a transaction that does not match your records, please write us at; Supervisory Committee, PO Box 110, Schuylerville NY, 12871.

We will gladly respond within 10 business days of receiving your letter.

We welcome your questions and comments. We appreciate those members who took the time to write us about their accounts and experiences.

Respectfully Submitted, Diane Jilek, (Supervisory Committee Chair) Thomas Havens Carl Flint Audrey Brownell

Peter Trombley, Chairman of the Board

Chairman’s Report I am pleased to report that TCT Federal Credit Union had a very strong year in 2020 despite all of the adversities we faced during this pandemic. The credit union continued its trend of positive growth in all key areas: assets, deposits, lending and membership.

The past year challenged all of us, but together, we are persevering. As you can see in this report, which outlines our financial standing at the close of 2020, we are Safe, Sound & Secure. We stand ready to help our members live their best financial lives.

Moving forward, we will continue to make member-focused, prudent decisions to improve your experience. Our investment in technology remains a priority.

Not surprisingly, our digital tools saw record use this past year and we look forward to providing you even more new resources allowing you to conveniently bank anytime, anywhere.

I am proud to serve as Chairman for the Board of Directors at TCT Federal Credit Union. I want to thank the members for their continued loyalty and support. I also want to express my appreciation to the volunteer Board of Directors and the volunteer Supervisory Committee for their support and dedication. Along with the committed staff and the work of the volunteers, we will remain a leader in the credit union movement. Your Board of Directors, Supervisory Committee and management look forward to another successful year.

Respectfully submitted, Peter Trombley, Chairman

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Left to right: Peter Trombley (Chairman), Carl Flint (Vice Chairman), Nannette Hartz (Treasurer), Linda Harrington (Secretary), Mary Laedlein (Director), Lorraine Arney (Associate Director)

Board of Directors ELECTION OF THREE OFFICERS The Nominating Committee; Art Center, Mike Gutchell, and Duane Lineback, have nominated the following individuals to fill three current seats on TCT’s Board of Directors.

Peter Trombley brings years of experience in strategic planning and financial analysis, as well as knowledge of the compliance operations and information security. He has prior consulting experience with profit-improvement and cost modeling projects for financial organizations. As a management consultant for financial institutions, he focuses on information security and compliance.

Peter is the owner and Managing Director of Bankcard Compliance Group, a company providing network encryption compliance audits for Financial Institutions.

Peter looks forward to contributing his time, effort and knowledge in helping TCT continue its strong growth and development while maintaining and extending its excellent reputation for customer service. He is a firm believer in the credit union model of ownership for the collective benefit of the institution’s members.

Furthermore, he believes that members must be willing to actively support and, if appropriate, contribute directly to the ongoing success of the credit union.

Peter is currently Chairman of the Board of Directors.

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Carl Flint is a retired elementary teacher from Cambridge Central School where he taught for almost 25 years. During his teaching career at Cambridge, he was recognized by TCT as its “Teacher of the Week,” as well as being recognized by the National Honor Society as their ‘’Teacher of the Year.” Prior to

that he and his family were dairy farmers for twelve years operating a 60 cow dairy farm in central New York. He was also an agricultural teacher for seven years in Delhi, New York. His financial background is in agricultural business, both as an educator and farmer. He is the chief financial officer for his church managing its annual budget and endowments working with the finance committee of the church.

Carl believes strongly in the positive attributes that credit unions provide for their communities and is appreciative of the opportunity to be a part of that mission. Carl is also a member of TCT’s Supervisory Committee and is currently Vice-Chairman of the Board of Directors.

Mary Laedlein worked as an assistant to the vice president at American Science and Engineering in Cambridge, Massachusetts for four years. Careful editing and organization were honed, and she learned to look forward. Mary moved to Cambridge, New York in 1980 and taught at Cambridge Central School for 30 years. During that time, she continued to look forward to being a part of the community she lives in.

Mary was twice recognized as “Teacher of the Week”

by TCT. Mary also received an award for coordinating Operation Santa Claus in Cambridge, which she continues to manage. As a retired teacher, Mary serves as a trustee of the Cambridge Public Library and is proud to be a part of TCT. The credit union embodies values of personal service and community commitment that Mary believes in. Mary has served on TCT’s Supervisory Committee prior to her appointment to the Board of Directors in 2020.

Source: Callahan & Associates

Other NY Credit Unions

Growth & Resilience CEO’S FINANCIAL REPORT

2020 will be a year we will forever remember and at the same time, want to forget. Masks, social distancing, quarantine, singing the Happy Birthday as you wash your hands, shutdowns, high unemployment, social unrest and an election that will be discussed for many years to follow. If you did not become sick you knew someone that did, and of course our hearts go out to the families that lost loved ones. We will never forget how our lives suddenly changed in the middle of March and continued far longer than we ever believed possible. 2020 is when Zoom went from how fast we drive to how to how we have meetings, educate our children and celebrate holidays with family members that could not join us. All because of restrictions to try and contain the spread of the virus. There were also wonderful stories of good will and people coming together to help one another. They say that real change occurs when one is faced with adversity.

The Pandemic of 2020 presented us with adversity unlike anything our generations have ever faced, and under scary and difficult circumstances, we adapted our way of living, and how we work to make the best of the uncertainty that surrounded us.

Which brings me to our credit union. I cannot put in words how impressed and grateful I am of what our staff accomplished during that very chaotic time in mid-March and throughout the year. We closed our lobbies suddenly on Friday March 20, sent

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many staff home to work. We adjusted processes to make it easier for you to do much of your business online. We also lowered fees and had our loan servicing department develop solutions for members who were concerned about making their payments. As word kept coming down from the CDC and the state, our leadership team work tirelessly to put new processes in place to protect our staff and our members while ensuring that you maintained uninterrupted access to your funds. All this was done on the fly without the benefit of a roadmap to guide us down the right path.

Our decisions were not based on money but how can we best serve and help you under the difficulties we were facing.

The month of May was our peak month with members requesting to have their loan payments delayed because people were unsure of their jobs. 221 loans totaling $5.5 million, an amount almost 8 times what our past due loans were in December 2019! I am happy to report that all those member loans are now current.

We reopened lobbies in June and then had to close two branches again in November when the virus surged and impacted many of our staff in our Clifton Park office.

We faced challenges we never could have imagined, our staff’s response this past year was tremendous. So was yours.

We are very appreciative of how patient you were when we closed our lobbies and asked you to use our drive thru, your phones

Curt Cecala, President and CEO

and computers to do transactions that prior to COVID-19 you regularly completed by visiting one of our branches. For those members in Clifton Park and Milton you were very understanding when we went through it all over again in November into December.

We have always believed if we take care of you, you will take care of TCT. We remained committed to this belief in the decisions we made in 2020, and the results proved once again that placing “people ahead of profits” produces a strong credit union. The enclosed financial reports and charts show TCT’s growth and financial strength over the years.

Our job is to make loans to one another at an affordable price. It is great to see our loans grow knowing that we are helping you achieve a purpose. Whether you are buying a new home or refinancing your existing home. That proud life achievement of your first car or replacing your old one and experiencing that new car smell when you first drive it. Paying for you or your child to attend college or taking advantage of our lower rates to consolidate bills and save money in payments. TCT is there when you need money.

Saving money is another reason to use your credit union. With today’s historic low savings rates, it is hard to see your money grow in your savings. We structure our deposit products, so you have the access to your money when you need it, earn a

competitive rate and not charge you for trusting us with your hard-earned money.

We continue to pay more than most for your savings, and when it comes to fees, we continue to be one of the lowest if not the lowest in the area (refer to charts). Keeping more money in your pocket, helps your money go farther.

Even though your credit union is not-forprofit, we must earn more that we spend.

Last year our surplus was $1.32 million, and this money goes directly into reserves or capital which protects your deposits. Our strong earnings over the years helps maintain our well-capitalized position as TCT grows and allows us to package our services at a low cost to you.

In addition to our wonderful staff, we have a great a group of volunteers that lead TCT. Your Board of Directors, and Supervisory Committee have always placed you as priority and are a tremendous support to me and my staff. Successful organizations have great leadership from the top and we have that with in our Board, and Supervisory Committee.

While 2020 is a year all of us are happy is over. I am proud to report that together we produced another successful year financially.

We continue to look for ways to build on our financial strength to make TCT better for you. Thank you for choosing TCT and we look forward to serving you in 2021.

Curt Cecala, CEO

INCOME AND EXPENSES 2019

2018

$8,226,282

$7,923,196

$7,019,745

$901,184

$883,750

$862,889

$1,476,171

$1,396,499

$1,285,304

$10,603,637 $10,203,444

$9,167,938

$7,280,616

$6,735,809

$6,220,685

$497,050

$550,750

$403,100

$1,179,794

$1,353,757

$764,556

Borrowed Funds

$303,198

$464,519

$407,116

Total Expenses

$9,260,658

$9,104,835

$7,795,457

$1,342,979

$1,098,609

$1,372,481

($18,831)

$49,195

$125,234

$1,324,148

$1,147,804

$1,497,715

WE MADE Interest on Loans Investment Income Fees and Misc. Income Total Income

2020

WE SPENT Operating Expenses Loan Loss Expense Dividends

WE SAVED Net Income from Operations Other Income TO UNDIVIDED EARNINGS

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FINANCIAL CONDITION WE OWN

2020

2019

2018

$177,556,357

$163,315,497

$151,900,443

Secondary Market & Business Loans

$13,555,394

$15,535,704

$15,024,914

Allowance for Loan Losses

($1,227,549)

($1,055,334)

($795,810)

$1,479,285

$1,116,720

$889,336

$63,986,882

$44,809,924

$33,965,022

$650,223

$588,316

$529,819

Land and Building (Net)

$4,270,249

$4,395,917

$4,514,751

Prepaid Expenses

$1,220,569

$927,214

$746,792

$420,399

$332,082

$285,723

$2,131,050

$1,914,362

$1,783,859

Other Assets

$3,995,006

$3,974,863

$3,933,438

Total Assets

$268,037,865

$235,855,264

$212,778,287

$14,985,841

$24,744,889

$23,322,754

$2,029,771

$2,331,557

$2,676,673

Regular Shares

$74,547,888

$54,962,454

$50,461,819

Money Market Shares

$56,657,914

$48,227,289

$54,661,538

Share Draft Checking

$38,991,869

$25,755,578

$23,058,922

IRA Shares

$10,316,233

$9,614,678

$8,621,167

$49,306,352

$51,230,389

$32,992,083

$229,820,256

$189,790,388

$169,795,530

$1,776,546

$1,776,546

$1,776,546

$18,256,313

$16,932,164

$15,804,360

$1,169,138

$279,720

($597,576)

$21,201,997

$18,988,430

$16,983,330

TOTAL LIABILITIES AND EQUITY $268,037,865

$235,855,264

$212,778,287

Loans to Members

Cash in Banks and Change Fund Investments Accrued Income

Furniture and Equipment NCUA Share Insurance Fund

WE OWE Borrowed Deposits Other Liabilities OUR SHARES

Share Certificates Total Member Share Accounts OUR EQUITY Regular Reserves Undivided Earnings Investments For Sale Value Total Equity

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Creativity & Care 2020 TEACHER OF THE WEEK RECIPIENTS Students, faculty, and staff adapted in bold and creative ways in order to keep the school community safe and in-person learning available.

Stacey Parker, 3rd-Grade Teacher at Salem Elementary School is such a genuine, down-to-earth, compassionate, loving teacher. With students that are having trouble with the back and forth remote learning and in-person school, she provides them with comfort and communicates with the parents consistently. Mrs. Parker has a way of boosting students’ confidence and provides them with security so they can excel. The parents and teachers in Salem appreciate what Mrs. Parker does for their school and community.

Danielle Kinsey (center), 4th-Grade Teacher at the Gordon Creek Elementary School in Ballston Spa made sure to drive to the home of a student who had to quarantine to deliver supplies and directions so that they could participate in an activity that the class was doing. And when parents found out that learning was going fully remote, Mrs. Kinsey packed each and every student’s supplies along with holiday gifts for them and handdelivered them to the front doors of every student in her class. Her dedication to keeping her students engaged during this crazy time is incredible. Thanks to Mrs. Danielle Kinsey at the Gordon Creek Elementary School in Ballston Spa.

Miss Kristen O’Connor (top), 1stGrade Teacher at the Kensington Road Elementary School in Glens Falls is an energetic teacher who adores who the students in her classroom. With classes split in half this year, Miss O’Connor works twice as hard to cover academics with both her morning and afternoon class.

She is great with technology and helps the students, and many of their parents become more comfortable with virtual learning.

Miss O’Connor is the first to donate her time, talents, money, food, and even her athleticism for any cause that is going on at school or in the community. The faculty and students at Kensington Road Elementary School are fortunate to have such a talented and caring teacher in their school.

Mr. Tim Kelleher (bottom), 12thGrade Economics & Government and 8th-Grade History Teacher at Greenwich Central Schools uses current events to tie in history to help his students better understand the lessons. Mr. Kelleher is a master at using questioning techniques to get his students to think and is a positive influence on them. He has also coached the Greenwich Soccer and Lacrosse teams and is retiring at the end of this school year. Thanks to Mr. Tim Kelleher at the Greenwich Central Schools for all of his efforts with his students and athletes!

View more Teachers of the Week and nominate a special school employee by visiting tctfcu.org/totw.

Bright Futures 2020 TCT SCHOLARSHIP RECIPIENTS

TCT awarded nine members with scholarships based on their outstanding academic and extracurricular achievements, as well as their leadership roles and demonstration of the ‘People helping people’ credit union philosophy.

Top row left to right: Brooke and Brynne Wright (Greenwich High School), Quinn Collins (Greenwich High School), Jordan Brown (Cambridge High School), Eden Bailey (Cambridge High School) Bottom row left to right: Madelyn Brophy (Greenwich High School), Calvin Schneider (Cambridge High School), Vanessa Evans (Cambridge High School), Kinsley Holl (Queensbury High School)

Sydney Potter Rock Star Nurse

“

THANK YOU TCT, FOR HELPING ME REACH MY GOAL OF BECOMING A NURSE. I AM FOREVER GRATEFUL.

”

SINCE 2016: Sydney Potter (TCT Scholarship Recipient) graduated from Shenendehowa and went on to attend St. John Fisher College in Rochester, NY. She received the Fisher’s Community Service Scholarship, where she was given the opportunity to complete 200 hours of community service in the Rochester area each academic year and throughout the summers. Most of her volunteer experience took place at EquiCenter, a therapeutic horseback riding center for children and adults with mental and physical disabilities. It was easily one of her most memorable parts of college.

She studied abroad in Costa Rica for one semester, where she was able to compare healthcare in Central America to healthcare in the United States and greatly improve her Spanish-speaking skills.

In May 2020 she graduated with a Bachelors of Science degree in Nursing, as well as a minor in Spanish for Health Professions.

And in July 2020, she passed her Nursing licensure exam and began working on a MedicalSurgical floor at Saratoga Hospital.

In April, she moved to Buffalo to support her boyfriend who is in dental school. She now works as an Infusion Nurse, where she administers biologic medications intravenously to people who suffer from rheumatic diseases such as Rheumatoid Arthritis, Psoriatic Arthritis, and Lupus.

“I love that as an Infusion Nurse, I am able to administer medications that drastically improve patients’ lives, helping them to live with less pain. Thank you TCT for helping me to reach my goal of becoming a nurse. I am forever grateful.”

- Sydney Potter Pg X.

GIVING BACK Through the generosity of our members and staff, we were able to support the following organizations in ways big and small.

Adirondack Vets House

Northeastern NY

NYCUA for Puerto Rico

West Glens Falls EMS

ASA

Things of My Own

NYS Sheriff Assoc.

Saratoga Hospital

BACC

Warren Co. Sheriffs Donation

Women’s Hockey Team Tourney

SUNY Adirondack Foundation

Glens Falls Hospital

Adopt A Family

WSWHE BOCES

Cambridge Valley Rescue

Lake George PTSO

Cornell Golf Tourney

Cambridge Fire Dept.

Malta Ave. Elementary

Bay Ridge EMS

Cambridge Booster Club

Code Blue Saratoga

Fort Edward Booster Club

Operation Santa Claus

Saratoga Co. Animal Shelter

Lake George Yearbook

Ballston Spa Expand Horizon Sponsor

Washington Co. Historical Society

Toys For Tots

Washington County Chamber of Commerce Community Loan Fund Cambridge Community Scholarship Fund CAPTAIN Youth and Family Services Mechanicville Area Community Service Operation Adopt A Solider Project Cameron’s Story Food Pantries of the Capital District Regional Food Bank of Federally Insured by NCUA