2011 CAP COM Federal Credit Union Annual Report

Annual Report

2011Our service says it all!SM

CAP COM Federal Credit Union is federally insured by the National Credit Union Administration.

At CAP COM we benefit every member, every time, every day.

Phone numbers and websiteCCFCU 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 locationsAlbany (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)

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

Supervisory CommitteeJohn Ericson – ChairmanJames Thomas – Vice ChairmanRick Travis – Secretary Paul Dettenrieder – MemberMartin Finn – Member

Board Managers of CCFCU Funding, LLC Patrick Kelly – ChairmanMark Marchand – Vice Chairman David Jurczynski – TreasurerDiana VanAmerongen – SecretaryPaula Stopera – MemberRobert Davis – Member Jeffrey Pallone – Member Richard Amadon – Member Chip Lawrence – Member

Senior ManagementPaula Stopera – President/CEODavid Jurczynski – Executive Vice President/Chief Financial OfficerDiana VanAmerongen – Chief Operations Officer Rebecca Crocco – Vice President of Member Service OperationsChris McKenna – Chief Mortgage OfficerJohanna Robbins – Vice President of FinanceRobert Roemer – Vice President of Information Systems, Facilities and Administration John Shartrand – Chief Investment Officer, CAP COM Financial Services, LLC

Table of Contents

2 Report of the Board Chairman

3 Report of the President/CEO

5 Report of the Executive Vice President/Chief Financial Officer

6 Consolidated Statement of Financial Condition

7 Consolidated Statement of Income

8 Report of the Chief Mortgage Officer

9 Report of the Chief Investment Officer

10 2012 Annual Meeting Agenda

11 Candidates up for Re-election

12 58th Annual Meeting Minutes

15 2012 Art Goedeke Scholarship Winner and 2012 Making a Difference Award Finalists

16 CAP COM Member Stories

Annual Report CAP COM Federal Credit Union | 1

Report of the Board Chairman

2 | Annual Report CAP COM Federal Credit Union

As I look back on 2011, I see a year of accomplishments in a variety of areas across the Credit Union – from our plans for a new headquarters to our Web and Mobile Banking services to our unmatched member education workshops to our response to a School Banking opportunity. These improvements provide you – and every member – with even better service. And they help CAP COM meet its mission: To be a sought after financial institution whose unbridled commitment to its members and community is unmatched by anyone. CAP COM enjoyed positive media attention, strong balance sheet success and growth in 2011. This growth has led us to the edge of an important milestone: Planning a new headquarters facility. CAP COM moved to its Main Office on Computer Drive East in 1988, when the Credit Union had $110 million in assets and 25,000 members. Today, at over $900 million in assets, almost 90,000 members and four subsidiaries, our Main Office is nearly bursting at the seams. I can assure you that a new headquarters project will be planned with future growth and the needs of our membership as the primary objectives. Another smart and sustainable project is the enhancement of CAP COM’s online services. The Connect-24 Web Banking service and Mobile Banking Apps for the iPhone and Android phones were developed to meet high-tech demands. In 2011, we saw significant increases in downloads of our iPhone and Android Apps, indicating that the smartphone and tablet boom is here to stay. These convenient tools allow a growing group of members to access their Credit Union accounts to make transfers, pay bills and find fee-free ATMs. And today we are focusing on new person-to-person and point-of-sale payment options for smartphones and tablets. Another unique and popular service can be found in our member workshops. Hundreds of members joined us in 2011 to review topics ranging from home buying to college planning. What’s more, we recently staged our first college budgeting workshop exclusively for high school seniors, yet another example of our unique and unmatched service. In reflecting on CAP COM’s new School Banking Program, I am reminded of the old proverb: “Time is

nature’s way of making sure everything does not happen at once.” Our Business Development, Marketing and Information Technology teams must have thought that time was standing still last summer. It was as if everything was happening at once: mergers, new branches, audits and compliance issues. And at that moment, a local bank announced that it would cease its School Banking Program at the start of the school year. The CAP COM team recognized the opportunity to have a positive influence on families and thousands of school-age kids. Putting the right CAP COM resources together using contacts from past community and Foundation efforts, proposals were made to more than 100 schools to not only save the School Banking Program but also update the technology. School Banking went online in September and now has over 4,000 accounts and $400,000 in deposits. This program provides first-hand exposure for CAP COM in nearly 70 new markets and ensures that we are attracting new households and young members to sustain a healthy balance between younger and older members. CAP COM’s sterling reputation as a financial partner begins with the leadership and staff at the Credit Union. In 2011, this team once again brought home a Best Places to Work award for the eighth year in a row. Not only is CAP COM a great place to work but the credit union industry was recently recognized in the American Customer Satisfaction Index as having the most satisfied customers ever recorded by the 47 industries surveyed. As Board Chairman, I can assure you that CAP COM’s strategic goals will continue to support 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 the members, the Credit Union staff and my fellow volunteers for their support during 2011. I look forward to even more success in 2012.

Edward A. Gilligan, Board Chairman

Report of the President/CEO


I hear positive feedback from CAP COM members almost everywhere I go. And many people ask me how we inspire our staff and volunteers to be so happy and helpful. I tell them that, at CAP COM, we honestly enjoy serving members and supporting our community. As I consider all the positive feedback from 2011, I realize that it tells a larger story. It is evidence that our Credit Union remains true to its top goal: To benefit every member, every time, every day. And as we approach our 60th anniversary in 2013, I am confident that we will continue to evolve while maintaining our core principles. Part of that confidence stems from our outstanding performance and growth in 2011. It was a year in which the Credit Union and its subsidiaries helped more members by providing everything from great Mortgages to smart financial planning to leading-edge, high-tech tools. I believe that CAP COM’s commitment to helpful full-service banking is driving our growth above and beyond to almost 90,000 members and ever closer to $1 billion in total assets. You can see CAP COM’s commitment in the story of local homeowner Liz Duma, which appears on Page 16 of this Annual Report. Last year, Liz got a great Mortgage with help from what she calls “knowledgeable, helpful and friendly Mortgage Experts” at CAP COM. Liz was one of 982 members who finalized a Mortgage with our Mortgage Division in 2011, the first full year of business for our subsidiary, CCFCU Funding, LLC. Overall, CAP COM helped secure a total of $160.8 million in Mortgages that helped make home ownership dreams a reality for many of our member families. Supporting members who are buying a home is just one piece of CAP COM’s great lending services. In 2011, we took in more than 15,700 consumer loan application requests totaling more than $208 million in loans ranging from low-rate Auto and Home Equity Loans to our new Home Improvement Loan for new homeowners. As our lending options expand to meet more and more of our members’ needs, CAP COM has enjoyed substantial membership growth. CAP COM welcomed thousands of new members in 2011, including a group from the Baxter Federal Credit Union (BCU) who joined

us as we opened our new Glens Falls Branch. The branch opening in July was a milestone moment for our presence in the North Country community. We proudly welcomed all BCU members and we are today showing them our unique and well-regarded brand of customer service. Another big part of our overall growth is due to our great everyday banking tools and Youth Programs. That includes everything from our little- or no-fee Checking Accounts with convenient Web and Mobile Banking tools to our unique School Banking Program. Within Connect-24 Web Banking, CAP COM recently unveiled new home page tools including a Purchase Rewards Program. The Program features online and in-store discounts tailored to you. And, adding Purchase Rewards to a Debit Card is easy. All you have to do is click on offers to activate them. Also in 2011, CAP COM continued to see more and more members use our iPhone and Android Apps for Mobile Banking as a growing number of people began banking with a smartphone. Our strategic planning helped us prepare for this shift and offer Mobile Banking Apps in early 2010. And today, we are pursuing additional high-tech tools such as Remote Check Capture, which will allow Mobile Banking users to make deposits by taking a photo of a check. As CAP COM breaks new ground for Mobile Banking users, we remain committed to our traditional member services including financial literacy. That is made evident by our financial education efforts at local elementary schools. In the summer of 2011, we launched our School Banking Program at nearly 70 Capital Region schools. With help from our staff and dedicated volunteers, we are today teaching hundreds of kids to save by making deposits at school. School Banking is a natural fit with our outstanding College Bound Program. In 2011, College Bound helped hundreds of families plan their college journey through one-on-one meetings and informative workshops. With these unique programs, I believe CAP COM is the leading force in helping Capital Region families make smart choices from grade school through college. Smart choices are something our Car Buying Experts highlight for our members each day. In 2011, our Experts again astounded many car buyers. From finding

the right car, to negotiating the best deal to completing a low-rate Auto Loan, CAP COM takes the stress out of buying a car. And we know that important choices for families reach beyond car buying and college selection. That’s 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. From the Advisors at CAP COM Financial Services to our always friendly and knowledgeable staff, your Credit Union remains committed to helping members make smart choices. You can see that in our eighth consecutive Best Places to Work Award from The Business Review. It shows that we are genuinely happy to come to work. What’s more, I can say from first-hand experience that our good work extends beyond our office walls. You can see that in the enclosed brochure for the CAP COM Cares Foundation. I am very proud to say that, since 2003, our staff and volunteers have brightened the lives of those in need. We are helping one child, one member and one community at a time. 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 2012 filled with good health and substantial progress toward a bright future for all our members. As always, the staff and volunteers at CAP COM promise to be with you every step of the way!

Paula A. Stopera, President/CEO


Report of the Executive Vice President/ Chief Financial Officer


CAP COM Federal Credit Union remained true to its conservative fiscal principles in 2011, resulting in both strong net worth levels and positive growth in assets and earnings during a time of economic uncertainty. In 2011, total assets grew by 4.6% or $40.1 million and reached $906.1 million by year’s end. Amid that growth, the primary offering to our membership continued to be real estate loans, which were supported by our active Mortgage Division. CAP COM’s growth was framed by regional and national economic challenges. Unemployment and the slow rate of new job growth created challenges for individuals and businesses alike. Businesses tried to improve profits by managing staffing levels just as job seekers flooded the market. What’s more, economic growth has been thwarted by a lackluster housing market combined with the uncertainty of the European debt crisis. As a result, the Federal Reserve Board recently announced a conservative long-term rate forecast. That forecast underscored the likelihood that short-term rates will remain at or near the current levels until the end of 2014. Historically low rates have helped drive growth for several lending products and improve the Credit Union’s asset quality. In fact, total loans outstanding to members at the end of 2011 exceeded $770.3 million. And, 63.7% of the portfolio was for real estate loans. In addition, asset quality has improved over the past several years, showing that our sound lending practices and strong underwriting and collection standards helped us grow amid economic uncertainty. Although asset growth and quality have shown positive trends, a true measure of fiscal health and strength is our net worth ratio. CAP COM’s net worth, or members’ equity, finished 2011 at $80.9 million. The resulting net worth ratio at the end of 2011 was 9.06%, increasing from 8.10% in 2010. This level of members’ equity has been defined by the National Credit Union Administration as being “well capitalized,” which is the highest designation for credit unions. As the financial services industry has seen many failures due in part to unmeasured and unconstrained risk, CAP COM has been relatively stable.

Our financial management practices have been and will continue to be focused on controlling risk and preserving net worth in order to ensure sustainable fiscal strength. It is with a great deal of pride and satisfaction that this financial report is presented to our membership. Our conservative financial management combined with the dedication and work of our many professionals and Board volunteers has provided the fiscal results that our members have come to expect and deserve. We look into 2012 and beyond knowing that our financial position is strong and our opportunities are many. I’d like to thank all our members for their ongoing loyalty and continued confidence.

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

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 Premises and equipment, net NCUSIF deposit Other assets TOTAL ASSETS LIABILITIES AND MEMBERS’ EQUITY Liabilities Deposits Borrowed funds Accrued expenses and other liabilities Total liabilities Members’ equity TOTAL LIABILITIES AND MEMBERS’ EQUITY

2011 (Unaudited)

$ 41,464,750 34,810

41,499,560

1,691,338 43,457,446

343,365

5,332,648 770,274,679

17,378,475 8,002,637

18,147,076

$ 906,127,224

$ 810,112,085

2,000,000 13,113,441

825,225,526

80,901,698

$ 906,127,224

CAPITAL COMMUNICATIONS FEDERAL CREDIT UNION AND SUBSIDIARIES Consolidated Statement of Financial Condition

December 31, 2011


CAPITAL COMMUNICATIONS FEDERAL CREDIT UNION AND SUBSIDIARIES Consolidated Statement of Income

For the Year Ended December 31, 2011

INTEREST INCOME Loans to members Securities Overnight deposits and other

Total interest income

INTEREST EXPENSE Deposits Borrowed funds Total interest expense

Net interest income before provision for loan losses

PROVISION FOR LOAN LOSSES

Net interest income after provision for loan losses

NON-INTEREST INCOME Commissions and member service fees Card interchange fee Subsidiary income and fees Gain on sale of loans Net gain on securities available for sale Net loss on other real estate Other

Total non-interest income

NON-INTEREST EXPENSE Compensation and employee benefits Office operations Loan servicing Office occupancy and equipment Marketing, member education and promotions Data processing Professional fees and services NCUSIF premium Other non-interest expense

Total non-interest expense

CONSOLIDATED NET INCOME Net income attributable to non-controlling interest

TOTAL NET INCOME

$ 43,025,886 1,252,891 100,077

44,378,854

7,369,339

76,977 7,446,316

36,932,538

6,025,000

30,907,538

7,772,569 4,683,331 1,799,271 2,380,049

692,435 (420,610)

20,459

16,927,504

18,008,707

2,552,951 4,240,573 2,888,581 1,527,010 1,325,336

907,805 2,000,659

2,328,133

35,779,755

12,055,287 (22,130)

$ 12,033,157

2011(Unaudited)


Report of the Chief Mortgage Officer

CAP COM’s Mortgage Division had a great year in 2011. Our achievements were built on hard work, great Mortgage rates and outstanding service. As homeowner Janeah Rosecrans told us in our May 2011 newsletter: “We trust CAP COM. It’s lending made easy.” I believe that sentiment is as true today as it was then. And, I believe our trustworthiness and great service helped the Mortgage Division close 982 loans for $160.8 million in First Mortgages in 2011. Our success was due in part to historically low Mortgage rates and a slight uptick in real estate activity in the Capital Region. Those factors inspired many new homeowners to finalize a Mortgage and many existing homeowners to refinance. It was – and is – a great time to refinance or buy. While these market forces are important, I truly believe that our staff of friendly Licensed Mortgage Experts made the biggest difference. I am very proud to report that the 22 staff members at the Mortgage Division worked very hard throughout the year to make the Mortgage process easy and hassle-free. In fact, during the last quarter of 2011 the Mortgage Division closed 490 loans totaling $79.3 million, accounting for 50 percent of our annual volume. And in November alone, the Mortgage Division closed 178 loans totaling $28.9 million, our largest ever monthly volume of loans. It was a busy but exciting time for all of us. To celebrate some of our hard work, we honored Secondary Market Analyst Mike Rourke with a TOP employee award in 2011. Mike assisted the Mortgage Division with everything from setting daily mortgage rates to making critical loan document deliveries. And Mike is just one member of our committed team. Four of our Licensed Mortgage Experts each originated more than $20 million in new loans in 2011, a milestone achievement in the Mortgage industry. Members see our commitment across the organization and, I believe, they truly appreciate it. You can also see that commitment in the fact that the Mortgage Division services nearly all of our Mortgages locally. That servicing includes accepting payments, answering questions, paying taxes and paying insurance fees. And, it includes convenient tools like online Mortgage payments.

The staff at the Mortgage Division is today hard at work building another great year. On behalf of the entire Mortgage Division and CCFCU Funding, LLC, I’d like to thank the staff, Board members and volunteers from across the Credit Union for the support we have received.

Chris McKenna Chief Mortgage Officer


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

Report of the Chief Investment Officer

When we say CAP COM Federal Credit Union is yours, it goes beyond membership and share accounts. In fact, CAP COM Financial Services, LLC was created to address your needs. Members wanted a place to turn to plan for a bright financial future, retire comfortably, and plan their legacy. So, in 1989, we created a professional advisory firm with a credit union attitude. When we started helping members, a 10-year U.S. Treasury Bond was yielding 9%, people may not have heard of Microsoft and most probably thought Apple was something you ate. Well, today, the 10-year Treasury Bond is yielding 1.89%, and Microsoft and Apple are two of the largest and best-known companies in the world. What’s more, we are now crawling out of the deepest recession most of us have ever experienced. Yet through it all, your financial advisory firm has grown, prospered, and found creative and effective ways to meet your financial needs. And, we continue to do so today.

CAP COM Investment Services In 2011, we adjusted our planning and practices with the goal of producing income for our clients in a low interest rate environment. We used a combination of asset allocation, product diversification, and alternative investments to build plans that fit individual needs. We adjusted, updated and applied sophisticated techniques to help you in these challenging times. We understand the need to protect your family, establish a healthy retirement income, and create a legacy for your family that lasts. While CAP COM Investment Services continues to grow and evolve to address your financial needs, we will never lose focus on what’s most important: Benefitting every member, every time, every day.

CAP COM Financial Services, LLC To deliver on our promise to help you, we use a full array of products and services. We combine those tools with our industry expertise to find the right solution for you. For example, we rolled out our homeowner and auto insurance program through Travelers in 2010. In 2011, we completed our first full year of the program and we already have 500-plus policies in place with over $400,000 in premiums.

At CAP COM, we are always looking for new products and services that can help you and your family. One good example is the growth of a new product called MoneyGuard Reserve by Lincoln Financial Group life insurance. Although the product is not for everyone, it does provide a smart alternative to self-insuring for long-term care. Such planning is becoming more important than ever as millions of Baby Boomers reach their late 60s. Another important factor in our success is our educational workshops program. We have been delivering workshops for years to our business partners and their employees. And, we believe that the educational workshops are a tremendously valuable tool to help both businesses and members plan for their financial future. At CAP COM Financial, we will always strive to use our expertise to provide you with uncomplicated answers to your sometimes complicated and very personal financial needs. That is exactly what you should expect from a firm designed to help you.

John M. Shartrand Chief Investment Officer, CAP COM Financial Services, LLC

Securities offered through LPL Financial, Member FINRA/SIPC. Insurance products offered through CAP COM Financial Services. 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


2012 Annual Meeting Agenda

59th 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 Mark Marchand

Receipt of the Nominating Committee Report Edward Gilligan

New business Edward Gilligan

Presentation of the Making A Difference Award Danielle Sprague and Paula Stopera

Presentation of the Art Goedeke Scholarship Paula Stopera

Recognition of 2011 TOP Employees Paula Stopera

Unfinished business Edward Gilligan

Motion to adjourn Edward Gilligan


Candidates 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 recommended the following three candidates for three-year terms.

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 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 Section Manager in Network Operations at Verizon and enjoys spending his free time with family and friends.

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 41 years and has been on the Board of Directors since 1974. He was Chairman from 1997 until 2000. He has served on the CAP COM Financial Services Board of Managers, as well as 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 various golf and bowling leagues.

Patricia Walbroehl has been a member since 1967 and on the Credit Union Board since 1978. She has served on the Executive Committee and also as Board Secretary. She has served as a member of the CAP COM Financial Services Board of Managers, the New York Credit Union Association’s “Capital District Council,” the Credit Union Foundation Steering Committee and numerous other committees. A graduate of the Junior College of Albany and Russell Sage College, Patricia is retired from both Bell Atlantic and New York State. Currently, she oversees 67 homes as Board President within The Homestead Association. An avid golfer, she also loves to travel.


58th Annual Meeting Minutes

Board Members Present: Mr. Edward Gilligan Mr. Harold Horning Mr. Daniel Johnson Mr. Patrick Kelly Ms. Paula Stopera Mr. James 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 58th Annual Meeting. He declared a quorum was present with 183 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 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 Mr. Robert Roemer, seconded by Mr. John Shartrand; “To accept the agenda as printed in the Annual Report.” Carried.

Acceptance of Minutes Minutes of the 57th Annual Business Meeting held on March 24, 2010 were added to the Annual Report which was distributed to all members prior to the Business Meeting. A motion was made by Mr. Richard Amadon, seconded by Mr. Jeff Pallone, “To accept the minutes of the March 24, 2010 Annual Business Meeting.” Carried

Board of Directors Report Mr. Gilligan opened his presentation noting the challenges of 2010 with political and economic change. CAP COM continues to implement a strong Strategic Plan that includes progressive branches, educational opportunities for members through workshops and high tech options such as Mobile Banking that complement

our strong service commitment. Mr. Gilligan recognized Paula Stopera for her tireless work at the Credit Union for the membership and in the community. He congratulated Ms. Stopera as the recipient of the Arthur R. Kapner Spirit of the Chamber award presented by the Albany-Colonie Chamber. Mr. Gilligan closed his report with a thank you to the members, the staff and the volunteers for their support during 2010. A motion was made by Ms. Johanna Robbins, seconded by Mr. Chris McKenna, “To accept the Report of the Board of Directors.” Carried.

Report of the President/CEO and Report of the Foundation Ms. Paula Stopera warmly welcomed the members to our Annual Meeting. Ms. Stopera reviewed the commitment that the Credit Union has to the membership to be a valued resource to individuals and families. Our Foundation, programs such as College Bound and our Great Grades and Reading Programs speak to the commitment the Credit Union has to its children and young adults. Consumer lending totals in addition to the Mortgage and Loan Division/Title Company totals were reviewed, stressing the ease of the process for our members. Being fee adverse, the Credit Union continues to look for ways to increase income to offset expenses and make bottom-line rewards to members better than ever. Ms. Stopera’s presentation highlighted the CAP COM Financial Services Investment Division and CAP COM’s 10th Branch, which was opened in the fall of 2010. In addition, the announcement of a merger with Baxter Credit Union in Glens Falls, to open in May 2011, was shared. Ms. Stopera shared numbers on CAP COM’s growth and key facts illustrating how far the Credit Union has come. Ms. Stopera recognized the Board of Directors, Board of Managers, the Supervisory Committee, the Senior Management Team and staff for their commitment to deliver our very best each day. Ms. Stopera ended the presentation by thanking the members for their commitment and part in making CAP COM successful. A motion was made by Mr. Rick Travis, seconded by Mr. John Parente, “To accept the Report of the President/CEO and the Report of the Foundation.” Carried.


Report of the Supervisory Committee Mr. Paul Dettenrieder 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. Dettenrieder reviewed 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 December 31, 2010. 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 that 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 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. Dettenrieder 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 Sharon Phillips, “To accept the Report of the Supervisory Committee.” Carried.

Report of the Nominating Committee Mr. Dan Johnson 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 newsletter, in the Credit Union lobbies, and on the website. The deadline to submit petitions and necessary forms was Feb. 12, 2011. No nominations came forward from the

membership, so the nominating committee presented the following three people as candidates for election to the Board of Directors for three-year terms: • Edward Gilligan • William Fitzpatrick • Mark Marchand A motion was made by Mr. David Jurczynski, seconded by Ms. Carie Sala “To accept the Report of the Nominating Committee.” Carried.

Elections A motion was made by Mr. John Parente, seconded by Ms. Diana VanAmerongen, “To cast one ballot for the entire slate of candidates presented by the Nominating Committee.” Carried.

New Business Mr. Gilligan Introduced our CAP COM Funding Group Board Of Managers: Patrick Kelly, Richard Amadon, Jeff Pallone, Chip Lawrence, Bob Davis and Mark Marchand.

Presentation of the Art Goedeke Memorial Scholarship Ms. Stopera introduced our Art Goedeke Memorial Scholarship Award. The CAP COM Cares Foundation, through the generosity of the Art Goedeke family, is honored to present the annual Art Goedeke Memorial Scholarship. 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 the Credit Union for many years, donating countless hours of his time and expertise to help form CAP COM into the strong financial cooperative we proudly belong to. The annual scholarship will be awarded to Thomas Hulihan, a freshman at Northeastern University in Boston and a recent graduate of LaSalle Institute, who is pursuing a degree in Computer Engineering.

Presentation of the Making A Difference Award Winners Youth Coordinator Carie Sala presented the 2011 Making a Difference Awards to 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


volunteer hours and dedication to their community. – First Place awarded to Lauren Motto – Second Place awarded to Sarah Mead – Third Place awarded to Kate Ryan

Unfinished Business/Door Prize Drawing Ms. Stopera announced the Credit Union’s Top Employees of the year: Top Sales – Chris Caradori Top Service – Kim Ingoglia Top CUSO – Ricki Proctor Top Support and Employee of the Year – Theresa Trietiak

Door prize winners were: Nancy Delaney, Barbara Maples, Ju-Ming Chang, Lynne Strevell, Dorothy Kania, Beverly Pommer, Justin Morin, Lucy Bremm and Derrleen Mulligan.

Adjournment A motion was made by Mr. John Ericson, seconded by Mr. John Shartrand, “That this meeting be adjourned.” Carried.

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

Respectfully submitted, Approved,

Daniel Johnson Secretary/Board of Directors

Edward Gilligan Chairman/Board of Directors


Scholarships and Awards

2012 Making a Difference AwardFor the past 12 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: $1,000 Second Place: $ 500 Third Place: $ 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 Mary Bonneau Senior at Colonie Central High School

Jared Goldsmith Senior at Bethlehem High School

Haley Korn Senior at Niskayuna High School

2012 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 2012 winner of the Art Goedeke Scholarship is Robert Bornhorst, of East Nassau. Robert is a graduate of Averill Park High School and attends Rensselaer Polytechnic Institute, where he is majoring in bioinformatics and molecular biology. In his scholarship application essay about the role social media could play in his future profession, Robert predicts that research scientists will use social media platforms to “facilitate communication within an intellectual community much faster than published journals alone ever could.”


Smart home buying“At CAP COM, you’ll find knowledgeable, helpful and friendly Mortgage Experts.” - CAP COM Member Liz Duma

Liz Duma was eager to buy a home and needed Mortgage Experts she could trust. Her Credit Union was there to help. CAP COM’s Mortgage Division helped her secure a low-rate loan for a new home.

Supporting students“CAP COM gives back. Their programs support schools and families. As a parent, I believe that’s important.” - CAP COM Member Eva Sweet, shown here with her daughter, Ashley.

Ashley Sweet is a student at Albany’s College of Saint Rose and a former Davis Scholarship winner. Ashley and her mom, Eva, recently joined us as panelists during a College Bound workshop. CAP COM’s annual scholarships and College Bound workshops help hundreds of families navigate the college journey each year.

Car buying support“CAP COM’s Car Buying Experts saved me thousands on my new car by negotiating with the dealer for me.” - CAP COM Member Christina Reyes

Christina Reyes can tell you that CAP COM’s Car Buying Experts will take the stress out of buying a car. Members can get pre-approved for an Auto Loan and choose from great features like free biweekly payments. Our experts can find the right vehicle and negotiate the best price and trade-in value.

Liz Duma

Christina Reyes

Ashley and Eva Sweet


CAP COM Member Stories

Car Buyers Helpline is an independently incorporated subsidiary of CAP COM FCU.

Annual Report

2011Our service says it all!SM

CAP COM Federal Credit Union is federally insured by the National Credit Union Administration.

At CAP COM we benefit every member, every time, every day.

2011 CAP COM Federal Credit Union Annual Report

Documents

Transcript of 2011 CAP COM Federal Credit Union Annual Report