Seasons Federal Credit Union

Seasons Federal Credit Union 2011 Annual Report Changing Members Lives For The Better

TABLE OF CONTENTS A Letter from the President and Board Chairperson Treasurer s Report Supervisory Committee Report Lending Officer s Report for 2011 77th Annual Meeting Listing of the Board of Directors 2012 Scholarship Winners 2011 Annual Meeting Minutes

A Letter From the President and Board Chairperson We are pleased to report that the cooperative spirit that has fueled our credit union s success for 76-years is alive and well. The challenges created by the economy have brought into focus the strength and benefits Seasons Federal Credit Union brings to you as member-owners. The cooperative philosophy of people-helping-people, pooling deposits to make loans and provide other services at reasonable cost, has stood the test of time. Our unique model continues to be extremely successful as evidenced by all that we have achieved together in 2011. More importantly, we are poised for even greater successes in 2012 and beyond. Growth in Loans, Shares and Mortgages Expanding on our lending platform was a primary focus for Seasons in 2011. Over the past couple of years, Seasons has changed its approach to lending by taking a holistic view when granting loans. This provides an opportunity for members who might be turned down elsewhere to get much-needed funds. We understand that our members are so much more than just their credit score and deserve to be treated as such. This philosophy brought with it 7.43% in loan growth in 2011, while the overall credit union industry experienced negative loan growth. To be successful lenders, we need deposits to lend. Our members continue to utilize our deposit products and we saw a 4.82% growth in 2011. The Kasasa checking account line continues to be popular and we were pleased to raise the Kasasa Cash dividend rate to 2.12% APY this April. Kasasa is a true cooperative product where actively participating members are rewarded with a higher rate of return. The turbulent economic times have left first mortgage rates at an all time low making it an excellent opportunity for both Seasons and our members. We originated over $26 million in first mortgages for our members and continue to ride the wave in 2012. We realize this rate environment will not last forever so we encourage our members to consider utilizing the Seasons mortgage program to refinance their first mortgage. Now is the time and we will do everything in our power to save you money on your monthly mortgage payment. Committed to our Community Seasons takes pride in our 76-year commitment to the communities we serve and 2011 was no different. Our two high school branches continue to thrive and our focus on financial literacy remains strong demonstrated by our launch of MoneyIsland, a one-of-a-kind online financial educational tool geared for children under age 13. We granted $7,000 in scholarships to graduating high school students. Seasons remains a proud supporter of the Connecticut Credit Union s Financial Reality Fairs and the Middlesex Chamber of Commerce Mentor Program. The Middlesex United Way recently awarded Seasons a participation award for having more than 50% of the employees donating to our local United Way chapter. Making it Easier to Do Business with Us Seasons understands that our members time is very valuable to them and in order to compete in a saturated financial services market, we have to make it as easy as possible for you to do business with us. We have some current solutions to make it easier to access your Seasons accounts and are working on some exciting technology to aid the process.

A Letter From the President and Board Chairperson Shared Branching We understand that sometimes our members need to walk into a branch to conduct their business and there isn t always a Seasons branch in close proximity. We wanted to open up our branch network to offer more convenience to our members. Seasons became a member of a Shared Branching network that allows you to do business with Seasons in over 4,500 credit union branches across the country. Members are welcome to walk into any CU Service Center and transact business on their Seasons account. In addition, there are thousands of ATMs across the country where Seasons members can do surcharge free withdrawals. Learn more about the locations on our website. Mobile Capture To make doing business with us as easy as possible, Seasons is leveraging technology. In the coming months we will launch Mobile Capture which will allow members to use their smart phone to deposit a check into their Seasons accounts or to pay a Seasons loan. A simple sign up and downloading of a free app is required, and then all you do is snap a photo of the check you are depositing, fill out some information and the deposit is sent our way. No need to drive to a branch or use the mail. Technology will be a game changer in how our members interact with Seasons and we are doing our best to stay on the cutting edge. Expanding Membership Over a decade ago Seasons Federal Credit Union expanded its field of membership to include nine towns outside of Middlesex County. These towns, all located in New Haven County, have provided Seasons an opportunity for growth and we have a branch presence in Meriden. In 2012, we will seek to spread the benefit of membership at Seasons to even more individuals by applying for a field of membership expansion. The process is long and requires approval by our governmental regulator the National Credit Union Administration (NCUA) but we are excited about the application project and expanding membership. We welcome the opportunity to introduce Seasons to potential members and look forward to changing even more members lives for the better. The Year of the Cooperative Webster s Dictionary defines the word Cooperative as a willingness and ability to work with others. The entire credit union movement was built upon that very premise - members actively making deposits, taking loans and using the credit union s products and services as much as possible. Today is no different. In order for all credit unions to survive, even Seasons Federal Credit Union, our members must embrace the cooperative model by maximizing their relationship with us to the fullest. The United Nations has named 2012 as the International Year of the Cooperative in an effort to raise public awareness of the invaluable contributions of cooperative enterprises. The year will highlight the strengths of the cooperative business model as an alternative means of doing business. This is an exciting time to be a credit union member! We encourage you to share the credit union with your family, friends, neighbors and co-workers. Spread the word about Seasons and help sustain your credit union well into the future. On behalf of the Board and Staff of Seasons, we extend our sincere appreciation to all member-owners. YOU are Seasons Federal Credit Union and because of your participation, your commitment and your willingness to recommend us to others, your credit union has become one of the leading financial cooperatives in our area and in Connecticut. As a member-owner, you can be proud of what you have helped build for yourself, your fellow members and your community. Thank you. Sincerely, Christine Gerritt Board Chairperson Keith Wiemert President and CEO

Treasurer s Report 2011 has been a challenging yet successful year for our credit union. Total Assets increased by $6,623,401 or 5.96% to $117,662,560. We continued to meet the financial needs of our members by providing loans for homes, autos, and other purposes. Though industry loan growth was stagnant in 2011 throughout the state, with a growth rate of only.66%, our loan portfolio grew by $6,347,855 or 7.43% to $91,754,627. Total share balances during 2011 increased by $5,027,052 or 4.8% to $109,393,584. Despite a historically low rate environment, ever-increasing government regulation, and a struggling economy, our credit union ended 2011 with net income of $812,818. Year-to-date net income exceeded our budget by over 300% and was $367,175 higher than 2010. Seasons Federal Credit Union s regulatory capital ratio, an indicator of financial strength, was 8.33% as of December 31, 2011. The regulatory capital ratio is well above the 6.00% ratio established for adequately capitalized credit unions set by the National Credit Union Administration (NCUA). Please take a moment to review this year s audited financial statements by the certified public accounting firm of Whittlesey & Hadley, PC. The audited financial statements are as of August 31, 2011 and 2010. The financial information provided above is based upon a December year-end and is consistent with the financial information posted at the branches on a monthly basis. For 2012, we at Seasons will continue to provide even more value to our membership and are committed to our mission of Changing Members Lives for the Better. We thank you for your continued support of the credit union. Respectfully submitted, Kyle Dahn Controller/Treasurer Supervisory Committee Report Supervisory Committee Members Stanley Stachura, Jr. Chairperson William Day, Jr. Vice Chairperson Edith Dubey Secretary Larry Marino Mike Nicastre The Board of Directors appoints a Supervisory Committee, which oversees the annual financial audit. To assist the Supervisory Committee, the CEO and Supervisory Committee Chairperson selected the firm Whittlesey & Hadley P.C. from Hartford to conduct the annual audit. We are pleased to report that for the tenth year, we have received a favorable opinion from Whittlesey & Hadley. The Supervisory Committee is very satisfied with the working relationship between the firm and the Committee, the Board of Directors and the Management Team of Seasons Federal Credit Union. Stanley Stachura Supervisory Committee Chairperson

Lending Report for 2011 During 2011, Seasons Federal Credit Union approved and closed 2,772 loans and lines of credit totaling $48,230,104 including advances on existing lines of credit but excluding first mortgages sold into the secondary market. Last year s loan production totals, detailed by month, are below. 2011 Lending Highlights: The credit union continued to develop the High Yield Lending Strategy implemented in the fourth quarter of 2010. Our lending strategy is designed to provide our members more access to credit in order to meet their financial needs. As a result of our refined relationship based approach to lending, gross loans increased 7.43%, which brought the loan portfolio to $91,754,627, while loan yield increased from 5.851% to 6.097%. The credit union lending staff focused on refinancing loans our members had with other financial institutions, which generated over $9,000,000 in loan volume, to drive overall loan growth of $6,347,855 in 2011. Month # of Loans Loan Volume January 107 $2,300,586 February 159 $3,162,004 March 245 $5,916,927 April 235 $4,604,214 May 217 $4,441,806 June 303 $4,437,714 July 268 $3,443,141 August 207 $4,417,066 September 192 $3,980,366 October 185 $3,579,786 November 363 $3,881,596 December 291 $4,064,898 Totals: 2,772 $48,230,104 As a result of the aforementioned lending strategies, the credit union grew Personal Loans for $2,890,556 and Used Auto Loans increased $3,946,968 totaling $6,837,524. The Ecoline--a personal line of credit with a fixed rate continued to be a popular product with our membership evidenced by an increase of $393,723 last year. The credit union also continued to offer seasonal loans, to meet the emerging needs of borrowers, with the Holiday Loan and Summer Fun Loan. In addition, the success of the first mortgage platform continued with 27.6 million dollars in first mortgage originations and subsequent sales to secondary market. Finally, the credit union was recognized as a top mortgage lender in Connecticut for the third consecutive year. Submitted by: Howard Brady Chief Lending Officer

77th Annual Meeting : : June 4, 2012 Middletown Elks Club, Middletown, CT Business Meeting Agenda 1. Call to Order 2. Appointment of Acting Clerk 3. Approval of Last Year s Minutes 4. Introduction of Board of Directors a. Introduction of Supervisory Committee 5. Supervisory Committee Report 6. Report of the Nominating Committee a. Introduction of Nominees 7. Chairperson Report 8. New Business a. 2012 Scholarship Winners b. International Year of Cooperatives 9. Motion to Adjourn 10. Drawing for Prizes

Listing of the Board of Directors Board Member Christine Gerritt, Chairperson William Howard, Vice Chairman Christopher Carbo, Secretary Scott Coleman, Director Nick Cook, Director Erik Holt, Director R. Richard Larke, Director Edward Murphy, Director Next Election Year 2012 2012 2014 2013 2014 2012 2014 2013 2012 Scholarship Winners Seasons Federal Credit Union offered 8 scholarships for graduating seniors going on to a two or four year institution of higher learning. The winners are: Emily Hunter from Cromwell High School - Deborah L. Lombardo Memorial Scholarship which is offered in conjunction with Brown & Brown Insurance Rebecca Weir from Coginchaug Regional High School - The Seasons Federal Credit Union Scholarship Megan Korcak from Valley Regional High School - The William McKenna Scholarship Kyle Rodriguez from Middletown High School - The Barbara Calhoun Memorial Scholarship Gregory Thomas from Middletown High School - The Director s Scholarship Zoe Kaplan from Middletown High School - The Dragon s Vault Scholarship Quian Callendar from Middletown High School - The Dragon s Vault Scholarship Alexander Tragakes from Westbrook High School - The Knight s Vault Scholarship

2011 Annual Meeting Minutes Annual Meeting of Seasons Federal Credit Union Held at the Elks Club, Middletown, CT on June 7, 2011 at 6:00 PM Present: Board Members: Christine Gerritt (Board Chair), Wendy Manemeit, R. Richard Larke, Edward Murphy and William Howard Supervisory Committee: Edith Dubey (Secretary), J. Michael Nicastre and Larry Marino Management Staff: Howard Brady, Sharon Maloney, Alan Schumann, Robyn Swanson, Bill Weingartner and Keith Wiemert. Opening: Christine Gerritt, Board Chairperson, opened the Annual Meeting at 6:00 PM. Janet Porriello was appointed Recording Secretary. Christine introduced the board members and the 2010 Annual Meeting minutes were approved. Christine Gerritt welcomed everyone to the 76th Annual Meeting of the credit union. The 76th Annual Meeting of the Seasons Federal Credit Union was held on Tuesday, June 7, 2011 at The Elks Club in Middletown, CT. Quorum present with 94 members. Supervisory Report: Christine Gerritt told the members that the Supervisory Committee Report was provided in the written format, in the Annual Report, which is available at every table. Report of the Nominating Committee: Hal Kaplan cast one ballot for the slate for three Board Members (Christopher Carbo, R. Richard Larke and Wendy Manemeit). There were no petitions from the membership to be added to the nomination list. Christopher Carbo, R. Richard Larke and Wendy Manemeit were re-elected. Chairperson s Report: Christine Gerritt told the membership that there was a written report included in the Annual Report. New Business: 2011 Scholarship Winners Scholarship Winners: Seasons Federal Credit Union offered scholarships for graduating seniors who will be attending a 2-4 year institution of higher learning in the fall of 2011. Christine Gerritt presented checks to the following scholarship winners: Allie Calhoun from Middletown High School received the Barbara Calhoun Memorial Scholarship for $1,000. Nana Gyimah from Middletown High School received the first $1,000 Dragon s Vault Scholarship. Jordan Brown from Middletown High School received the second $1,000 Dragon s Vault Scholarship. Chrissy Martel from Westbrook High School received the $1,000 Knight s Vault Scholarship. Chris Alaimo from Westbrook High School received the William McKenna Scholarship for $1,000 Tim Rhone from Xavier High School received the $1,000 Directors Scholarship Tom Ryan from Coginchaug High School received the Deborah L. Lombardo Memorial Scholarship for $1,000 which is offered in conjunction with McCutcheon Burr & Sons Insurance Motion to adjourn business meeting/carried. Time: 6:50 PM. Christine Gerritt thanked everyone for attending. Raffle prizes were given out after the meeting.

Branch Information Office Locations Middletown (Main Branch) 524 South Main Street Middletown, CT 06457 Cromwell 28 Shunpike Road Cromwell, CT 06416 Lobby Hours: Monday: 9:30am - 4:30pm Tuesday: 9:30am - 4:30pm Wednesday: 10:00am - 4:30pm Thursday: 9:00am - 6:00pm Friday: 9:00am - 5:00pm Saturday: 9:30am - 12:30pm Middletown Drive Up 635D South Main Street Middletown, CT 06457 Meriden 1371 East Main Street Meriden, CT 06450 Drive-Up Hours: Monday: 8:00am - 4:30pm Tuesday: 8:00am - 4:30pm Wednesday: 10:00am - 4:30pm Thursday: 8:00am - 6:00pm Friday: 8:00am - 5:00pm Saturday: 9:30am - 12:30pm Dragon s Vault Branch Middletown High School Knight s Vault Branch Westbrook High School Check online for public hours! Contact Information www.seasonsfcu.org Phone: 860-346-6614 Toll-Free (Outside CT): 800-622-6700 24 Hour Loan By Phone: 877-875-6404