TRIANGLE CREDIT UNION
2020 ANNUAL REPORT
Triangle Gives Back Through ‘Tis the Giving Season Campaign
Salvation Army of Greater Nashua’s Tree Tag Program
Triangle Gives Back Through ‘Tis the Giving Season Campaign
COMMUNITY As a credit union we impact our community. By improving ourselves we can improve the lives of those we serve. I’m proud to be part of something that has a positive impact for my neighbors. EMMANUEL
Data Services
PRESIDENT’S MESSAGE Typically, the President’s Message focuses on financial deliverables of the organization and offers a brief summary of accomplishments achieved over the prior year. This past year presented many unique challenges; as a result, I would like to share my perspective on how the credit union’s culture impacted our success in 2020. In 2019, Triangle introduced an extremely focused, and specific, set of core values that quickly influenced the culture of the credit union. This set of values proved pivotal in not only sustaining us during the pandemic challenges that we faced in 2020, but guided us through to achieve remarkable results for the year. These three core values are at the heart of our culture: community, diversity, and service. They are so critical that we revised our logo to incorporate them into our brand. We believe that our core values never change, regardless of any circumstances or challenges we face. While “community” itself invokes images of the cities and towns we serve, the credit union is a community comprised of individuals with directives to achieve common goals. Our staff knows that no matter what role an employee plays within the organization, that role impacts our strategic goals. Within this community, we invested in professional development; and despite the pandemic, our member-facing staff received training while others attended courses remotely. Communication within our community is essential. There is a concerted effort among our leadership team to disseminate information to our teams for transparency of information. As an organization, we respond to one another with respect and kindness, which influences how we transact with our members. Diversity is celebrated within the credit union. We are a multi-ethnic workforce that speaks 23 different languages. As southern New Hampshire grows more diverse, it is paramount that we embrace all populations and continue to develop as a diverse organization. This year, we were called to task to review our policies and procedures to ensure they serve our diverse membership. We recognize that a changing environment is innately reflected in diversity and we are committed to changing for the better. The COVID-19 pandemic certainly challenged many of our service channels this year. Our call volume rose significantly as did our drive-up transactions. We quickly adapted to the new norm with additional staff in the Contact Center and new Live Chat which offers text messaging within our mobile app. We educated members on the many ways that banking is available to them remotely. As I told the Triangle team, many times, these core values are not just words—these values are guiding principles that have made us who we are and will impact who we will become. On behalf of myself and the Senior Management Team, I want to thank our employees—each of you demonstrated flexibility and genuine concern for each other and our members, and you all were superstars this past year. Thank you to the Board of Directors and Supervisory Committee for their guidance, direction, and for keeping us accountable to our goals. Thank you to our members for your continued support of the credit union—it is truly our honor and privilege to serve you. Sincerely, A. Scott MacKnight CEO/President
CHAIR’S MESSAGE I am delighted to report that, despite the COVID-19 pandemic, Triangle Credit Union had an excellent year. There were numerous financial accomplishments, including exceptional results in several strategic areas. Due to record low interest rates in the home buying market, our mortgage department saw record breaking refinances. Our Commercial Lending team processed over 330 Paycheck Protection Program (PPP) loans and received recognition from the Small Business Administration (SBA) and Callahan and Associates as a leading PPP lender in New Hampshire for small businesses. While 2020 presented various challenges, the credit union handled each one with much resilience and adapted to changes that were necessary to ensure the health and safety of our staff and members, while continuing to meet the needs of our community. Our focus turned from familiar ways to forging new roads to serve our members. We pivoted to provide full-services to our members in branch parking lots when lobbies were temporarily closed, over the phone and email, through drive-ups and by appointments. With great urgency, our digital platforms became the epicenter of our transactional activities, which included the introduction of Interactive Teller Machines (ITMs), expanding electronic signature capabilities, and new Live Chat features for Online and Mobile banking within our TCU GO® initiative. Triangle received several accolades in 2020, which included local, regional, and national awards and recognition. Awards for Best Credit Union were received from The Greater Merrimack-Valley Chamber of Commerce, Telegraph’s Best of Greater Nashua, Union Leader Readers’ Choice Award, and Forbes. These recognitions serve as a strong indicator of the credit union’s impact within the communities we serve and of the outstanding service the Triangle team delivers every day. Thank you to the Board of Directors, Supervisory Committee, and the entire Triangle team for their hard work and dedication; and a special thank you to all our members for their role in making 2020 a banner year. Margo Compagna Board Chair
2020 BOARD OF DIRECTORS Standing (left to right): Robert Demers, 1st VP A. Scott MacKnight, CEO/President Mark Richardson, 2nd VP Margo Compagna, Chairman David Degulis, Director Rebecca MacLennan, Secretary David Fredette, Treasurer Not Pictured: Robert Duhaime, Director
TREASURER’S REPORT The financial statements included in this report give details on the strength and soundness of Triangle Credit Union. The report reflects another strong year mainly attributed to a healthy lending performance in mortgages and commercial services. Our mortgage department processed a significant number of new mortgages, resulting in $131M, an increase of 101% over the previous year. Triangle’s Commercial Services Department experienced record numbers in lending. With the government PPP loans, the credit union originated $40M business loans, an increase of 103% over the prior year. This unprecedented activity, in response to the pandemic crisis, significantly increased loan volume. In addition, Triangle’s Commercial Services department received two distinguished awards in recognition of their efforts to Triangle’s small business members. Overall, the credit union originated more than $266M in new loans, which is a 25% increase over prior year. However, total net loans decreased $45M in 2020, largely due to the sale of first mortgages to the secondary market and the reduction in auto loans, resulting in a 7.5% decrease from prior year totals. This reduction in loan balance decreased our Loan-to-Share Ratio to 79.23%. The asset quality of the credit union continues to be above average compared to industry trends. Triangle’s delinquency ratio as of year-end was under .61%. Triangle continues to abide by strong underwriting standards, coupled with a financially responsible membership committed to paying loans on time and in full. Asset quality also includes credit union investments. The investments of the credit union are made up of Government Agency securities, corporate bonds, and CD’s. Consequently, because of the high ratings, these investments have minimal risk. Our reserves, which are previous years’ earnings, now exceed $59M; these reserves, along with the government deposit insurance (NCUA), make Triangle Credit Union a sound and stable financial institution. Respectfully submitted, David Fredette Treasurer
TRIANGLE’S AWARDS & RECOGNITIONS
WINNER
Readers’ Choice
2020
SUPERVISORY COMMITTEE REPORT On behalf of our volunteer Supervisory Committee, I’d like to thank you for making Triangle Credit Union your trusted financial institution. We take your trust seriously and always keep TCU’s financial strength and security as our primary goal so that you know your funds are protected. We ensure this trust with constant review and confirmation of the accuracy and integrity of TCU’s financial statements, policies and procedures. These reviews are conducted by Shatswell, MacLeod & Company, P.C. Their comprehensive internal audits of our policies, procedures, and reports are tracked and reviewed by our committee with the appropriate credit union managers. An independent examination of our financial statements by Baker Newman Noyes certified that we were in full compliance with, “generally accepted accounting principles” and that our financial statements were correct. As Chair of the Supervisory Committee, I am pleased to report that TCU remains safe, secure, and in excellent financial condition. What has been accomplished this past year, could not have been achieved without your trust in us and the dedication of our hardworking employees, officers, the Board of Directors and members of the Supervisory Committee. Respectfully submitted, Ed Lecius, Chair; Derek Danielson; Richard Lavoie; Jack Monahan; Ron Rioux
2020 SUPERVISORY COMMITTEE Standing (left to right): Richard Lavoie, Committee Member; Ed Lecius, Chairman Seated (left to right): Ron Rioux, Committee Member; Jack Monahan, Committee Member; Derek Danielson, Committee Member
DIVERSITY Our organization has a diverse staff. Together we speak 23 languages. We learn from each other every day and we’re providing a service that sets us apart. BARBARA
Human Resources
THANK YOU TO OUR HEROES The COVID-19 pandemic presented a turbulent time for us all, but our staff rose to each challenge. In early March, we closed our branch lobbies and many of our member-facing staff were placed into A & B teams. Some staff were placed on paid furlough, while others remained at work as we figured out our next steps. Within a short period of time, there were new schedules, new cleaning protocols, lots of masks and protective shields for safe workplaces. We became masters of Zoom technology and meeting remotely and kept our members aware of every change. In 2020, we delivered over 50 unique communications, which resulted in over 1 million emails to our members! We introduced Live Chat to enhance member communication within mobile banking, adapted our education resources to webinars and online workshops, and serviced record-breaking lending applications in Mortgages and Commercial Services. Yes, 2020 hit us hard, but we fought back—and confirmed, truly we are stronger together.
BALANCE SHEET - 5 YEAR HISTORY 2016
2017
2018
OTHER LOANS
$208,018,820.78
$233,578,105.90
FIRST MORTGAGES
$199,697,676.83
$186,217,876.31
BUSINESS/COMMERCIAL LOANS
$71,780,053.26
SECOND MORTGAGES
$2,004,465.73
ASSETS:
2019
2020
$264,214,787.94
$274,173,894.69
$247,872,996.34
$182,889,177.63
$184,258,582.66
$164,006,621.01
$73,204,637.74
$82,710,530.75
$88,261,397.94
$98,325,158.11
$1,557,816.59
$1,973,804.99
$2,557,470.29
$1,809,061.25
HOME EQUITY
$58,255,328.29
$56,188,865.14
$57,038,230.72
$52,882,255.95
$44,885,727.36
TOTAL LOANS
$539,756,344.89
$550,747,301.68
$588,826,532.03
$602,133,601.53
$556,899,564.07
LESS RES. FOR LOAN LOSSES
($1,806,130.50)
($1,931,371.74)
($2,051,118.51)
($2,306,217.07)
($2,803,145.38)
$537,950,214.39
$548,815,929.94
$586,775,413.52
$599,827,384.46
$554,096,418.69
$60,535.14
$209,374.91
$174,227.04
$83,420.21
$120,202.85
TELLER/VAULT CASH
$4,786,620.04
$5,740,055.52
$3,752,870.74
$4,298,605.86
$4,146,348.95
CHECKS IN PROC OF COLL.
$2,429,334.19
$3,215,669.53
$3,336,863.77
$1,971,771.75
$1,628,835.32
$32,722,455.18
$35,592,688.28
$31,376,192.60
$43,006,595.04
$48,683,286.77
NET LOANS CASH: DUE FROM BANKS
INVESTMENTS: AGENCY & US SEC. CORPORATE & FHLB
$6,154,032.61
$7,096,886.11
$3,002,078.29
$22,726,772.32
$162,256,255.71
SAVINGS. CERTIFICATES
$9,509,692.75
$9,854,379.37
$7,865,212.49
$6,978,212.49
$18,157,010.63
CORPORATE BONDS & EQUITIES
$11,206,942.08
$31,928,020.26
$23,101,894.62
$15,616,613.95
$5,557,850.68
TOTAL INVESTMENTS
$59,593,122.62
$84,471,974.02
$65,345,378.00
$88,328,193.80
$234,654,403.79
PREPAID EXPENSES
$2,842,334.78
$2,300,972.69
$1,508,090.34
$1,876,408.48
$2,501,943.33
ACCRUED INCOME
$1,241,815.12
$1,571,730.84
$1,531,992.51
$1,678,936.97
$1,361,877.28
FIXED ASSETS
$9,619,853.48
$9,230,743.06
$9,929,732.64
$11,477,097.51
$11,439,974.15
NCUA INS. FUND
$4,701,694.73
$5,029,114.94
$5,243,305.76
$5,409,404.31
$6,061,098.93
OTHER ASSETS
$7,552,511.69
$4,860,644.71
$4,869,691.71
$5,718,731.25
$9,866,496.08
PROPERTY IN PROCESS OF LIQ. TOTAL ASSETS
$61,872.62
$89,145.31
$43,820.00
$664,436.15
$885,271.38
$630,839,908.80
$665,535,355.47
$682,511,386.03
$721,334,390.75
$826,762,870.75
$3,037,700.80
$817,063.56
$1,120,033.14
$1,444,093.25
$1,123,069.62
LIABILITIES: ACCOUNTS PAYABLE TAXES PAYABLE
$6,354.13
$8,881.19
$11,676.57
$9,704.59
$9,934.66
BILLS PAYABLE
$197,564.71
$322,267.13
$362,756.45
$954,277.05
$917,282.24
$64,679,267.87
$59,514,987.43
$68,709,011.42
$70,935,035.68
$64,554,493.90
$1,860,969.74
$1,861,231.78
$1,531,915.36
$1,781,191.90
$3,179,203.94
$49,489,504.27
$52,750,967.73
$55,220,152.61
$59,644,750.38
$86,356,302.19
IRA'S
$35,288,269.83
$36,080,522.66
$36,558,456.92
$40,291,035.86
$39,117,860.62
CERTIFICATES
$169,108,946.22
$182,780,861.46
$186,332,653.09
$210,883,642.88
$177,412,673.64
REGULAR SHARES
$181,383,730.67
$189,937,732.77
$188,328,181.92
$191,117,139.81
$263,634,310.45
MONEY MARKET
$53,383,039.54
$63,745,853.17
$62,713,496.21
$57,412,289.38
$79,441,538.24
BORROWED FUNDS OTHER LIABILITIES DEPOSITS: SHARE DRAFTS
BUSINESS ACCOUNTS
$27,672,521.61
$30,594,211.30
$32,900,143.07
$34,690,452.92
$56,929,843.79
TOTAL SHARES
$516,326,012.14
$555,890,149.09
$562,053,083.82
$594,039,311.23
$702,892,528.93
REGULAR RESERVE
$8,198,842.64
$8,198,842.64
$8,198,842.64
$8,198,842.64
$8,198,842.64
UNDIVIDED PROFIT
$38,732,688.08
$41,380,470.69
$45,068,346.39
$48,640,775.59
$51,178,533.98
CAPITAL:
UNREALIZED GNS/LSS ON INVEST. UNREALIZED PENSION OBLIGATIONS TOTAL CAPITAL TOTAL LIABILITIES & CAPITAL
$37,589.69
$411,883.96
($428,634.76)
$221,934.82
$331,688.84
($2,237,081.00)
($2,870,422.00)
($4,115,645.00)
($4,890,776.00)
($5,622,708.00)
$44,732,039.41
$47,120,775.29
$48,722,909.27
$52,170,777.05
$54,086,357.46
$630,839,908.80
$665,535,355.47
$682,511,386.03
$721,334,390.75
$826,762,870.75
PROFIT & LOSS STATEMENT - 5 YEAR HISTORY 2016
2017
2018
2019
2020
$19,034,806.27
$19,821,450.83
$21,335,167.22
$24,351,644.78
$23,394,281.72
INCOME FROM INVESTMENTS
$805,512.23
$1,033,907.70
$1,522,326.18
$1,736,288.54
$1,294,278.36
SHARE DRAFT FEES
$1,264,463.76
$1,323,152.32
$1,421,509.00
$1,472,203.50
$1,089,463.46
DEBIT CARD/ATM FEES
$2,118,176.14
$2,212,367.83
$2,417,814.74
$2,474,766.23
$2,728,269.87
ACCOUNT MAINTENANCE FEES
$531,192.69
$521,982.37
$517,149.73
$511,423.58
$509,727.97
OTHER FEE INCOME
$1,063,028.15
$1,061,957.27
$1,161,676.06
$1,376,417.63
$2,061,534.95
TOTAL OPERATING INCOME
$24,817,179.24
$25,974,818.32
$28,375,642.93
$31,922,744.26
$31,077,556.33
COMPENSATION
$8,746,672.92
$8,484,503.57
$8,444,747.51
$9,222,282.83
$10,655,606.60
EMPLOYEE BENEFITS
$2,196,790.30
$2,351,645.44
$2,714,599.25
$3,065,707.38
$3,103,110.73
TRAVEL AND CONFERENCES
$153,477.99
$193,315.68
$219,019.27
$176,446.34
$62,515.48
ASSOCIATION DUES
$45,882.03
$48,276.97
$52,187.74
$53,318.73
$54,531.09
OFFICE OCCUPANCY EXPENSES
$1,203,462.75
$1,313,539.61
$1,432,928.99
$1,489,620.92
$1,703,158.76
OFFICE OPERATIONS EXPENSES
$3,985,805.27
$4,081,351.50
$4,259,179.73
$4,688,656.67
$5,021,107.94
ADVERTISING & PROMOTION EXPENSES
$293,525.68
$279,399.28
$262,204.47
$264,131.17
$208,200.84
LOAN SERVICING EXPENSES
$286,733.32
$345,612.44
$328,486.76
$410,920.56
$439,343.77
PROFESSIONAL AND OUTSIDE SERVICES
$328,899.47
$326,015.13
$430,940.46
$709,001.80
$361,563.21
PROVISION FOR LOAN LOSSES
$737,100.00
$720,000.00
$762,000.00
$839,000.00
$1,117,000.00
FED. SUPERVISION & EXAMS
$162,782.28
$220,411.30
$157,609.85
$162,202.96
$180,463.34
$257.54
$7,209.34
($3,167.07)
($841.28)
$3,657.18
ANNUAL MEETING EXPENSES
$4,914.98
$4,646.05
$9,057.61
$6,217.07
($4,720.13)
MISC OPERATING EXPENSES
$142,651.65
$223,407.98
$95,774.68
$284,343.39
$53,127.74
FASB 91 ORIGINATION COST
($452,292.20)
($480,953.01)
($506,168.23)
($498,339.82)
($571,219.15)
TOTAL OPERATING EXPENSES
$17,836,663.98
$18,118,381.28
$18,659,401.02
$20,872,668.72
$22,387,447.40
INCOME (LOSS) FROM OPERATIONS
$6,980,515.26
$7,856,437.04
$9,716,241.91
$11,050,075.54
$8,690,108.93
GAINS (LOSSES) ON INVESTMENTS
$231,635.60
$176,996.79
$0.00
$711,568.60
($600,020.15)
GAINS (LOSSES) ON DISP. OF ASSETS
($58,812.61)
($15,883.71)
($585.01)
$25,907.98
($21,073.64)
GAINS (LOSSES) ON SALE OF MORTGAGES
$194,947.06
$209,905.48
$58,616.68
$247,364.24
$2,279,936.23
$0.00
$0.00
$351,404.60
$0.00
$0.00
$367,770.05
$371,018.56
$409,436.27
$984,840.82
$1,658,842.44
INCOME (LOSSES) BEFORE DIVIDENDS
$7,348,285.31
$8,227,455.60
$10,125,678.18
$12,034,916.36
$10,348,951.37
INTEREST ON BORROWED FUNDS
$1,642,738.72
$1,546,404.58
$1,362,120.66
$1,689,201.38
$6,294,698.66
DIVIDENDS
$3,493,620.44
$4,033,268.41
$5,075,681.82
$6,773,285.79
$1,516,494.32
$2,211,926.15
$2,647,782.61
$3,687,875.70
$3,572,429.19
$2,537,758.39
INCOME INTEREST ON LOANS
OPERATING EXPENSES
CASH OVER AND SHORTS
NON-OPER. GAINS (LOSSES)
NCUA IMPAIRMENT/ASSESSMENT FEE EXPENSES ON O.R.E.O. TOTAL NON-OPERATING GAINS (LOSSES)
NET INCOME (LOSS)
KEY OPERATING STATISTICS - 5 YEAR HISTORY 2016
2017
2018
2019
2020
National Avg. as of 6/2020
LOAN DELINQUENCY RATIO
0.5%
0.3%
0.2%
0.3%
0.2%
0.6%
YIELD ON AVERAGE LOANS
3.7%
3.6%
3.7%
4.1%
4.0%
4.8%
YIELD ON AVERAGE INVESTMENTS
1.5%
1.4%
2.0%
2.3%
0.8%
1.5%
RETURN ON INCOME/AVERAGE ASSETS
4.1%
4.0%
4.2%
4.6%
4.2%
4.5%
COST OF FUNDS/AVERAGE ASSETS
0.9%
0.9%
1.0%
1.2%
1.0%
0.8%
GROSS SPREAD
3.3%
3.2%
3.3%
3.3%
3.0%
3.7%
OPER. EXPENSES/AVERAGE ASSETS
3.0%
2.8%
2.8%
3.0%
2.9%
3.0%
NET INCOME/AVERAGE ASSETS
0.4%
0.4%
0.6%
0.5%
0.3%
0.6%
CAPITAL/ASSETS (NET)
7.4%
7.4%
7.4%
7.6%
6.9%
10.3%
DEPOSIT GROWTH (%)
12.1%
7.7%
1.1%
5.7%
18.3%
8.6%
LOANS
76.7%
76.3%
75.2%
76.3%
75.3%
65.6%
INVESTMENTS
3.3%
4.0%
5.4%
5.4%
4.2%
8.2%
20.0%
19.7%
19.5%
18.3%
20.6%
26.2%
CD'S / TOTAL DEPOSITS
32.8%
32.9%
33.2%
35.5%
25.2%
19.3%
IRA'S / TOTAL DEPOSITS
6.8%
6.5%
6.5%
6.8%
5.6%
5.5%
CHECKING / TOTAL DEPOSITS
9.6%
9.5%
9.8%
10.0%
12.3%
17.5%
SAVINGS / TOTAL DEPOSITS
35.1%
34.2%
33.5%
32.2%
37.5%
35.4%
MONEY MARKET / TOTAL DEPOSITS
10.3%
11.5%
11.2%
9.7%
11.3%
20.4%
BUSINESS DEPOSITS / TOTAL DEPOSITS
5.4%
5.4%
5.9%
5.8%
8.1%
1.9%
SOURCES OF INCOME % OF TOTAL
ALL OTHER DEPOSIT MIX
SENIOR MANAGEMENT
A. Scott MacKnight CEO/President
Mark Warner
EVP/Chief Financial Officer
Standing (left to right): Lisa VanBiene, VP Member Services; Pamela Ford, SVP Lending; Rebecca Thomas, SVP Marketing Seated (left to right): John Ziemba, SVP Commercial Services; Karin Taylor, SVP Human Resources; Doug Taylor, VP of Community Outreach/Sales
MANAGEMENT
Jason Sargeant
Sharon Kikutis
Jose Rivera Hernandez
David Helie
Kathy Card
Lena Dionne
Ryan Ruggiero
Seana Hill
Jennifer Ware
Nathalie Mena
Lisa Ward
Jamie Balsamo
Marcel Sanchez
Lyn Anderson
Angelica Resto
VP Controller Temple St., Nashua, NH
H.R. Manager Temple St., Nashua, NH
Branch Manager Route 101A, Amherst, NH
Branch Manager DW Highway, Merrimack, NH
AVP Operations Temple St., Nashua, NH
Sr. Lending Manager Franklin St., Nashua, NH
Branch Manager Windham Rd., Derry, NH
Branch Manager Elm St. / Elliot Hospital Manchester, NH
VP of Data Services Franklin St., Nashua, NH
Contact Center Manager Temple St., Nashua, NH
Branch Manager Candia Rd., Manchester, NH
Branch Manager St. Joseph Hospital & DW Highway, Nashua, NH
Facilities Manager Temple St., Nashua, NH
Branch Manager Franklin St., Nashua, NH
Branch Manager Temple St., Nashua, NH
SERVICE Triangle Credit Union is true to it’s core values: Community, Diversity, and Service. These values guide and shape our culture because together, we are stronger and better. SUNIL
Commercial Lending
trianglecu.org (603) 889-2470 Amherst - Derry - Manchester - Merrimack - Nashua
NMLS# 528721