CEO Updates

Report of the President & Chief Executive Officer

As we move well into the third quarter, SeaComm continues to be on target to meet our expected forecast set forth in the FY23 board-approved operating budget. Member satisfaction, staff engagement and overall profitability continues to remain above expectation.

Our Financial Position Today Continues to Remain Solid

Net income as of July 31, 2023 was $4,620,255. Our net assets at the end of July were $800,827,770. At the same time, net operating expenses YTD were 1.93%, well below the 3% targeted goal set by the credit union’s budget. However, dividend expense is up more than $887,000 compared to budget. Today, we have $109 million in unrealized earnings. Capital remains a key component to our financial health, as it is necessary to grow adequate reserves so we are able to withstand any uncertainty as our assets continue to increase and thereby be viable well into the future. As a large financially complex credit union, we are required to maintain a risk-based capital ratio at minimum of 10%. Today, we stand at 24.67%, well above what is required.

Bauer Financial LogoBauer Financial, another independent rating company, awarded us their Superior Five-Stars. They analyze the performance of U.S. Banks and Credit Unions. The star ratings classify each credit union based upon a complex formula which factors in relevant data including, but not limited to: capital, historical trends, loan delinquencies, differences in the book and market values of the investment portfolio, profitability, repossessed assets, reserves, charge-offs, regulatory compliance and asset quality. It has deemed SeaComm as safe, financially sound, and that we are operating well above regulatory capital requirements.

Weiss, an independent rating agency rated us with a B rating as of Q1FY23. This means we offer good financial security and we have the resources to deal with a variety of adverse economic conditions. We comfortably exceed the minimum levels for all of our rating criteria, and are likely to remain healthy for the near future.

Annual Meeting

Annual Meeting PhotoAnnual Meeting PhotoIn my report at this year’s annual meeting held in May, we were able to announce 2022 was another solid year for SeaComm. Highlights for the previous year, which included: earnings exceeding budget, membership growth at 3 percent, continued increase market share penetration with our newest location in Watertown, NY, as well as a solid year for our SeaComm Personal Advisor Services with over $72 million of assets under management. We also saw an increase in our mobile technology usage with a growth of 24%. Member satisfaction remained consistently high with an overall quality loop score of 6.81 out of 7. The overall message we relayed was that SeaComm is committed to ensuring our members get the very best in member service, core products and a diverse delivery channel model at any point it is needed. Three Directors were elected to 3-year terms. And, the Board re-appointed the current members of the Supervisory Committee to an additional one-year term. A podcast recapping the 2022 meeting is available on our website.

St. Lawrence FCU Merger

The vote of the St. Lawrence FCU membership was held on August 28, 2023 with an approval of us moving forward with our merger. We have submitted our final regulatory filing with the National Credit Union Administration. The effective date of the merger is October 1, 2023.

We are extremely pleased with the final outcome of the membership vote. SeaComm looks to move forward with the membership and staff of St. Lawrence in making a stronger, united credit union together. We believe this merger will enable us as a credit union to offer the very best of both organizations for our combined membership and the employees, who will continue to serve our mission of “People helping People.” Additional details will be forthcoming as we integrate both credit unions together.

Great Place to Work LogoEarlier this year, our employees were able to participate in our annual employee engagement survey process through Great Place to Work. This is the 11th consecutive year. We were very happy to report that after we received the results, 90% of our employees say that overall SeaComm is a great place to work. Some of what we learned is that 96% felt good about the way we contribute to the community; 95% stated that management is honest and ethical in its business practices; 96% agree that management is competent at running the business; 95% say when you join the company, you are made to feel welcome and 93% say they are proud to tell others they work for SeaComm. We are extremely proud to be included within this privileged group across the country. We held a special recognition day on June 13th for all staff, whereby they could enter to win prizes, wear jeans, receive a gift bag and have lunch on the credit union.

Iconic ToolboxAs we continue celebrating our 60th anniversary, we will be focusing our attention on ensuring that every interaction with our membership exceeds expectation. This focus continues to meet the ever-changing business landscape and provide each member with a strong value proposition in being a member of our credit union. This is done through a consistent and responsible growth strategy.

On behalf of the Board of Directors, management and staff, we are grateful to our nearly 53,780 members who have put their trust in us and we will continue to work diligently to remain strong in order to be able to serve well into the future.

Respectfully submitted,

Scott Wilson Signature

Scott A. Wilson
President and Chief Executive Officer