Chairman’s Letter to the Membership
Fellow Members,
Thank you for your membership and continued trust in Northeast Credit Union. I’m grateful for the leadership of our dedicated team and our group of volunteers. As a mission-driven organization, we strive daily to help families, businesses, and our community achieve financial security and wellness through a commitment to service and innovation. We are proud to stand alongside you on your financial journey. As we evolve to meet new demands, our commitment to serving you with excellence is still unwavering. We aim to provide you with products and services to meet your financial needs while continuing to positively impact the communities we serve, where our members live, work, and play.
In 2023, Northeast Credit Union had an extraordinary year. With the re-launched Northeast Credit Union Foundation, the support of our members, the good work of our team, our group of volunteers, and our business and community partners, we positively impacted the communities we serve. Through food drives and donations, over 1,500 pounds of food was distributed to those in need. More than $237,000 was donated to nonprofits aligned with our mission that constantly work to help with affordable housing, food insecurity, and educational needs.
Looking ahead, the Board of Directors is filled with enthusiasm as we chart the course for the future; we strive to do well by doing good. Our organization is steadfast in its mission to enrich and nourish our members, our employees, and our communities. I extend a warm invitation to each of you to help us continue to make positive changes by helping others.
Within this annual report, you will discover the milestones achieved in 2023 and our vision for the future ahead. On behalf of the Board of Directors and our dedicated volunteers, I express sincere gratitude for your continued membership and unwavering trust in Northeast Credit Union.
President's Report
As we reflect on 2023, we want to extend our sincerest gratitude to you for choosing Northeast Credit Union. We recognize that you have choices regarding your banking needs, and we’re grateful that you continue to select us as your financial partner.
We believe that our value, what differentiates Northeast Credit Union from other financial institutions, is more than competitive rates and lower fees. We think it’s more than providing access and convenience, and it's more than providing exceptional service. We do all these things but what differentiates us is our impact on our members' lives and communities. And you are a part of this. When you bank with Northeast Credit Union, you positively impact your community.
Your trust has been the cornerstone of our success over the past 87 years, and we are proud of the milestones we’ve achieved together. This year has been no exception. I’m proud to report that 2023 was the most successful financial year at Northeast Credit Union. Thanks to the support of our incredible members, Board of Directors, team of employees and business partners, we continued to grow while making positive impacts on the communities we serve.
Throughout this year, our remarkable team of passionate and talented individuals have worked tirelessly to enhance your banking experience as we continue to grow.
2023 Highlights:
- We recorded total assets of $1.948B up $54M from 2022.
- Revenue grew in 2023 by 27% from the prior year, totaling more than $105 million.
- Year-over-year our loan portfolio grew 6.9% to $1.624B, while deposits decreased marginally to $1.612B.
- We originated $527M in loans this year. The two most prominent needs of our members were transportation and housing. Every time we make a loan, we know that we’re investing in an individual or a small business, and thereby, we’re also investing in our local communities.
- Net income growth was up 8.9% compared to 2022.
- Membership grew by 3.5%, ending the year with 163,613 members.
- We improved our new member onboarding experience, reducing the average time it takes for a new member to join the credit union online from an average of 24 hours to less than 15 minutes.
Prioritizing our People.
We believe what truly sets us apart is our people, from the members we serve to the team we support. Our ongoing dedication to fostering the professional growth of our team is fundamental to Northeast Credit Union's current success. In 2023, we celebrated as 49 team members earned well-deserved promotions, reflecting our belief that career development is not a destination but a continuous journey. We prioritize this journey, empowering our team members to evolve within their roles and responsibilities, thereby fortifying their capacity to deliver exceptional service across all member touchpoints. Today, an impressive 98% of our employees have personalized development plans, championed by both their leaders and the Credit Union itself.
We are on a Mission to Enrich and Nourish the Lives of Others.
- Inspired by our mission, our team members have dedicated over 1,400 volunteer hours in our communities across New Hampshire and Maine.
- Together with our members, we donated over 1,500 pounds of food to local food banks.
- Altogether, we contributed more than $237,000 to organizations committed to creating access to affordable housing, eliminating food insecurity, and supporting education.
- We awarded 26 student-members with $40,000 in scholarships to aid and enrich their educational dreams.
- 72 financial educational plans were provided for students and teachers as part of our Financial Wellness and Education series.
Allocating Collaboration with Mission-Aligned Partners.
In May 2023, the Northeast Credit Union Foundation hosted its inaugural event, “Nourish Portsmouth,” bringing together 250 guests and 25 local nonprofits to celebrate community connection. The event honored Cross Roads House with the inaugural Nourish Award, reflecting the Foundation’s mission to enrich lives.
The Foundation also organized the Nourish Network Road Race Series in Maine, impacting local communities and partnering with Grahamtastic Connection, Safe Passage, and Apex Youth Connection. These collaborations resulted in nonprofits receiving a 2023 Nourish Award and charitable contributions from the road race series.
Thank you for enabling us to put our money where our heart is – into New Hampshire’s and Maine’s communities where we work, live, and play.
Into the Future.
Looking ahead, our members will experience a new and robust offering of banking products and services enabling them to impact their communities directly through their day-to-day banking with new deposit offerings, improved money movement capabilities, and more. 2024 and beyond will continue to bring in new opportunities as we persistently seek avenues to make our credit union stronger and more viable for you and prospective members.
Our 87 years of rich history have provided us with a solid foundation. It’s an exciting time at Northeast Credit Union, and the future is filled with promise.
We’re proud to be a part of something bigger than ourselves, united by a common goal - bringing people together. It’s what community is all about, and as we engage with our mission to impact the lives of others, we invite you to Join the Movement!
Your loyalty and support inspire us, and we’re grateful to be on this meaningful mission with you! Thank you for everything.
Supervisory Committee Report
The Supervisory Committee is appointed by the Board of Directors to independently evaluate the safety and soundness of Northeast Credit Union’s operations by engaging an external auditor and directing internal audit activities.
The committee is also responsible for ensuring that management adheres to policies established by the Board of Directors and maintains a strong internal control system in alignment with the approved risk appetite of the Board and senior management, NCUA, state banking regulations, Northeast’s bylaws, and generally accepted accounting principles.
During 2023, a consolidated financial statement audit for the period ending June 30, 2023, was performed by the external audit firm of Wolf and Company. An unmodified opinion was rendered for the audit, indicating that the financial statements present fairly, in all material respects, the financial position of the Credit Union as of June 30, 2023, and the results of its operations and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Additionally, the Supervisory Committee more recently engaged Wolf and Company to a consolidated financial statement audit for the period ending December 31, 2023. This audit intends to convert the credit union from a fiscal year-end (June 30) to a calendar year-end (December 31) for financial reporting purposes.
A regulatory examination commenced on May 8, 2023, by the National Credit Union Administration (NCUA) with participation by the State of New Hampshire Banking Department. This annual examination provides further assurance that the Board of Directors and management oversight of the credit union’s corporate affairs is effective.
The Supervisory Committee also engaged for the internal audit services of Doeren Mayhew, CPAs to perform various operational, compliance, and information technology audits throughout the 2023 calendar year. Lastly, Northeast continues to employ an Internal Audit Department to further strengthen the internal control and risk environment throughout the Credit Union.
It is the Supervisory Committee’s opinion the Credit Union is well-managed and continues to maintain its status as a sound financial institution. Northeast Credit Union enters 2024 in an excellent position to continue its mission to enrich and nourish the needs of its members, employees, and communities.
Credit Committee Report
The Credit Committee is pleased to report that members of Northeast experienced the benefits of borrowing from their Credit Union during 2023. We have been delighted to serve the membership of the Credit Union. The Credit Committee had a successful year reviewing lending activity and helping our members with their financial needs. The credit committee in conjunction with the loan officers approved 22,237 loans.
At the Credit Union’s 2023 Annual Meeting, the Board of Directors appointed the following as members of the Credit Committee: Kelly McGrath - Chairwoman, Sue Ladd - Secretary, Neil Gordon, Chris Saucier, and Doug Sites. As always, the Credit Committee is honored to have been appointed by the Board and extends thanks for allowing us to serve.
During the calendar year 2023, the Committee met to review:
- The number of loan applications received
- The number of loans granted
- The number of applications denied
- The number of deferment requests received
- The number of deferments granted
- The number of deferments denied
- Economic outlook regarding Northeast Credit Union’s loan portfolio and its performance
- And any other loan activity requiring its review as the final lending authority at the Credit Union
The Committee found our lending activity to be consistent with the Credit Union’s lending-related policies. The Credit Committee maintained confidentiality and adhered to the Lending Policy set forth by Northeast Credit Union.
During 2023, the Credit Committee reviewed 26 mortgage applications. They approved 25 mortgage applications and denied 1 for an approval ratio of 96.15%. We assisted 176 members with a mortgage closing and 993 members with a Home Equity closing.
Overall, Northeast Credit Union funded $526,893,895; helping 108 members with the dream of homeownership and assisting 191 members with deferments.
In conclusion, the Credit Committee would like to commend the Board of Directors, management and staff for their dedication and professionalism throughout this fiscal year. Last, but not least, the Credit Committee would like to thank you, our members, for your continued support as we look forward to better serving you. Please be sure to check with us first for all your future financial needs.