Annual Meeting President’s Report

I’m very excited to report that 2014 was another record year for the credit union in many areas.

2014 by the Numbers

To recap, we experienced growth in net income, membership, loans, and deposits. We saw record growth in net income at $2.8 million even with the economic challenges and slow job growth in CT! We welcomed 2000 net new members as of year-end, ending 2014 with 34,963 or a 6.1% growth. Our loan portfolio grew by over 10.90% to $276,113,848 and deposits grew by 3.83% to $319,020,288. Our core deposit growth (checking and savings products) continues to show impressive growth at 11% as we introduced our First Choice Checking Account that pays 4.99% APY on balances up to $10,000. We remain one of the strongest credit unions in the state of Connecticut, if not in the country, with our capital ratio standing at 13.66%. This number signifies our financial strength and is well above the minimum required 7%.

Banking without a Branch

We experienced excellent growth in our e-Services in 2014. Many of our members have now opted to use our electronic delivery channels. Our e‐banking users grew 16.8% to 11,536. Additionally, more people enrolled in e-Statements, and our e-Deposits and Mobile app gained wider usage. The number of e‐deposit users grew by 38.0% to 2,339, which signifies increased usage in making deposits via your mobile device. e‐Statement usage more than doubled, growing a phenomenal 60.5% to 13,701. Mobile banking users also grew by 49.0% to 6,180 users.

2014 in Review

In 2014 we continued to look for ways to improve and make it easier for you to bank with us. We upgraded our technology in order to make it easy for you to access your accounts and invested in a major overhaul to our IT infrastructure further enhancing our reliability and security. We also launched virtual branches in East Windsor and New Britain where you can work with a loan representative via live video chat, and added a loan sales center to make it easier for you to borrow from us. The best part is, you never need to leave your house! You can do everything online, including signing the paperwork. We also introduced new ways for you to save money on your insurance. When you visit our Web site, you can access our insurance agency Nutmeg State Insurance Benefits, that allows you to comparison shop major insurance providers for all of your insurance needs including homeowners, auto, pet, renter’s, boat, motorcycle, accident and more!

A Look at 2015

We’re looking forward to exciting changes in 2015! Our biggest change was our conversion to a State-chartered credit union and a name change to Nutmeg State Financial Credit Union. The charter change has allowed us to expand into New Haven County which will open the door to an additional 900,000 people in the state of Connecticut. This also gives us the opportunity to expand our branch and ATM networks in New Haven County.

In 2015 we will continue to build on providing the best possible member experience. I say it over and over again, but member service is and will always be our top priority. In fact, I am so passionate about this that you now have the ability to e-mail me directly if an issue isn’t resolved to your satisfaction. My e-mail address is posted on our Web site, click here to e-mail me anytime. Technology will also continue to be a main focus. We want to provide you with quick and easy access to your account information in a safe and secure manner. We’re excited about our newly designed Mobile app and the launch of Apple Pay this spring.

I would like to thank the employees and our Board of Directors for their hard work and dedication. More importantly, I would like to thank you for your continued support and trust in us.

Sincerely

John Holt
President and CEO