1. finance
2. personal finance
3. lending
4. student loans

2014 Meeting Minutes
38th Annual Meeting
Leatherstocking Region Federal Credit Union’s 37th Annual Meeting was held on Saturday, April 26, 2014 at Templeton Hall in
Cooperstown, New York. All members enjoyed a delicious breakfast prior to the business meeting. Charles Ellsworth, MD Chairman of the LSR FCU Board of Directors, called the meeting to order at 11:00 A.M. Dr. Ellsworth welcomed and thanked everyone
for coming. A motion was made and seconded to accept the April 13, 2013, 36th Annual Meeting minutes. The motion carried and
the minutes were approved.
Dr. Ellsworth stated that it was a pleasure to report that the Credit Union remains solvent and financially strong during these
economically strained times. The Board of Directors and senior management have worked closely to ensure that we remain
well-capitalized. Our Net Worth ratio as of December 31, 2013 was 9.73%. Dr. Ellsworth also reported LSR FCU ended 2013 with net
income of $310,172.
Mary T. Clarke, Treasurer and Chief Executive Officer/President, reported on the Credit Union’s financial performance for 2013. Total
shares increased by approximately $1.3 million. Total loans increased approximately $.5 million. Total assets increased $1.7 million.
Return on Average Assets (ROA) for 2013 was .76.
In addition, Mary T. Clarke discussed National Credit Union Share Insurance Fund (NCUSIF) assessments which decreased from
2012 to 2013 by $13,242, to $33,118. Mary T. also reported that it is unlikely the Credit Union will be required to pay any stabilization assessment to NCUA in 2014. The provision for loan loss was funded $15,625, and our net charge off for loans in 2013 was
$56,642. As of December 31, 2013 the delinquency ratio was 2.38%.
From a safety and soundness perspective your money is safe with your Credit Union. Dr. Ellsworth thanked all of our members, the
Credit Union Staff, and the Board of Directors and the Supervisory Committee for making 2013 a successful year. We look forward
to another great year in 2014.
We heard from James Richardson, regarding an update on a product launch for mobile banking, which now includes Remote
Deposit Capture. James also explained a new checking account called Protection Plus with credit monitoring features and insurance if your ID is stolen.
Dr. Ellsworth introduced Jean Schifano, Supervisory Committee Chairperson, for the Committee's report. Jean introduced the
Supervisory Committee Members, Dann West, Secretary, Catherine Tuttle, and Marietta Taylor. Jean thanked the Board Members,
Mary T., and the Credit Union Staff for doing a great job protecting our interests.
Sam Hoskins, Secretary, Board of Directors, reported the elections results for the Nominations Committee. Incumbents seeking
re-election, Edward Landers, Rose Craine, Richard Trimble, MD and Roger MacMillan, MD, were unanimously elected to the Board
of Directors for a two-year term.
Dr. Ellsworth introduced Tom Iuorno, Director of Originations and Strategic Partnerships, Homeowners Advantage partner with
LCU to offer additional Mortgage options to its members. Tom has helped many first time home buyers and Credit Union members to re-finance their current mortgages. Tom also introduced himself and discussed the many different types of Mortgage
products offered through Homeowners Advantage.
After the drawing of several door prizes, Dr. Ellsworth adjourned the meeting at 11:55 A.M.
Respectfully submitted,
Sam Hoskins, Secretary
Board and Staff
Chairman’s Report
Dear Members:
As Chairman, on behalf of the Leatherstocking Credit Union Board of Directors, I am
pleased to thank you all for your continued investment in the success of the Credit Union.
We appreciate the support of our new members and of our long-time members for their
continued patronage. We remain committed to Bassett employees, Otsego County
employee groups and to all the residents of Otsego County who join the Credit Union.
Your Credit Union's over all financial performance in 2014 was excellent, considering the
initiation of several new service products and the slow increase in economic growth,
both global and domestic. Some notable highlights from 2014 include a program to
increase membership by expansion of our publicity campaign, using radio and other
media networks. We continued to financially support various charity organizations by
donating over $9,000 in the communities which we serve. A new initiative was undertaken to expand the Credit Union’s commitment to local students. This includes financial
education programs, provided by a member of our staff, to area schools, as well as
student friendly loans for education.
We attribute our success to being member-owned, having a volunteer Board of Directors
and Supervisory Committee, as well as staff members who give generously of their
personal time to support worthwhile initiatives. We have a continued commitment to
the universal credit union philosophy, “people helping people.” We strive to offer
competitive rates and competitive fees for the products and services that make your
everyday banking easier. We continue to provide people of all ages and backgrounds
with the financial services and education they need to be productive in their communities. I am proud of our employees for taking to heart this credit union philosophy.
Thanks go to each of you for being a Credit Union member. Without you there would be
no Leatherstocking Credit Union to make our communities a better place in which to live,
work and raise families. Just as our staff, volunteer Board and Supervisory Committee
take pride in the Credit Union’s accomplishments, so should you as member-owners.
We are looking forward to another great year for your financial institution—one that
constantly reinvests in your success! On behalf of the staff and governing volunteers,
thank you for your support and have a prosperous 2015!
*Management Team
BOARD OF DIRECTORS:
Charles Ellsworth, M.D., Chairperson
Edward Landers, Vice Chairperson
Samuel Hoskins, P.A., Secretary
Mary T. Clarke, Treasurer
SUPERVISORY COMMITTEE:
Jean Schifano, Chairperson
Dann West, Secretary
Marietta Taylor
Catherine Tuttle
DIRECTORS AT LARGE:
Richard Trimble, M.D.
Daniel Gregory, M.D.
Roger MacMillan, M.D.
Rose Craine
Nathan Smith
CHARTER MEMBERS:
Dr. Clinton Hawn, Marcel Ermeti, Leslie
Bartlett, Alice Sill, Robert Butler, Gary
Goodwin, Gerald Biamonte, Mary
Martin (clerk), Rapture Butler, Gloria
Irving,
Carole Nunamaker-Tinklepaugh
DIRECTOR EMERITUS:
Delores Burnett
Saturday, April 11th, 2015
YOUR CREDIT UNION STAFF
Mary T. Clarke, President*
Linda Oldick, Accounting Manager*
Anoel Kelly, Financial Service Manager*
James Richardson, Accounting & Compliance Officer*
Robert White, Lending and IT Officer
Cindy Dresser, Financial Service Rep
Carla Eckler, Marketing Specialist
Josh McMahon, Marketing Specialist
Martha Heneghan, Education & Human Resource Specialist
AmyBeth Decker, Accounting Assistant
Chris Spencer, Lead Member Service Rep
Sue Gage, Member Service Rep
Lisa Guardi, Member Service Rep
Tonya Daley, Member Service Rep
Sincerely,
Charles Ellsworth, MD, Chairman
AGENDA
Call to Order
Reading and Approval
of the Minutes
of the last Annual Meeting
April 26, 2014
Chairman Report
Presented by
Edward Landers,
Vice Chairperson
President/CEO Report
Presented by Mary T. Clarke
Debit Card and Credit Card
Technology on the Horizon
Presented by
James Richardson, Accounting and
Compliance Officer
Supervisory Committee Report
Presented by Jean Schifano
Supervisory Committee Chairperson
Nomination Committee
Election Results
Guest Speaker
Edward Lis, Owner/Principal of
Credit Union Advisory Group
Door Prize Drawings
Adjournment
Supervisory Committee Report
Your Credit Union’s Supervisory Committee is responsible for the safeguarding of our members’ assets. Over the past years, the
committee hired auditors to perform on-going internal audits of the Credit Union. In addition, an outside audit and examination
by the National Credit Union Administration was conducted. Both found no major areas of concern, our books were in balance
and our procedures and operations were in compliance with regulations. We appreciate the opportunity to be of service to the
membership and commend Mary T. and the Credit Union staff, and the Board of Directors for a job well done.
Respectfully submitted,
Jean Schifano, Supervisory Committee Chairperson; Dann West, Secretary; Marietta Taylor, and Catherine Tuttle
24 Glen Ave., Cooperstown, NY 13326 • 607-547-5700 • www.MYLCU.org • info@MYLCU.org
Treasurer’s Report
Charter No. 22625
STATEMENT OF FINANCIAL CONDITION
For Period Ended December 31, 2014
Loans:
The Credit Union continues to experience a very competitive lending environment.
• Our overall loan portfolio had very modest growth ending the 2014 at $20.28 million compared to 2013 year-end of $20.25 million.
• Vehicle loans grew from $5.77 million in 2013 to $6.24 million in 2014, while actual number of vehicle loans declined from 624 loans
in 2013 down to 603 loans in 2014.
• Real Estate loans declined from a high of $10.18 million in 2013 to $9.59 million in 2014. It’s important to recognize that our market
continues to feel the impact of the 2007 – 2008 real estate bubble. Values have not recovered in much of our market place, so owner
equity continues to be troublesome.
• In 2014 we also experienced additional downward pressure on our average loan yields with a decline in average yield of 5.77% in
2013 to 5.37% in 2014. This means we had to offer more aggressive rates to maintain our loan portfolio which resulted in a 0.40%
decline in overall yield.
• This coupled with an increase in Net Charge offs from 0.30% in 2013 to 0.73% in 2014, impacted our margin by an additional 0.43
basis points on loan yield performance.
• In speaking with other colleagues in the Northern US, they have also experienced similar trends and attribute much of the change
to a prolonged economic recovery, underemployment, resulting wage stagnation, impact of colder and longer than average winters
on members disposable or discretionary income. The long and short is that something was bound to give and that is what we are
seeing.
Line of Credit:
• The Credit Union ended 2014 without using their line of credit at the Corporate Credit Union.
Member Shares:
• The Credit Union's total assets grew in 2014 from $40.57 million in 2013 to $42.24 million in 2014.
• Total Deposits rose from $36.55 million in 2013 to $38.2 million in 2014.
• Members' average savings balance grew from $7,927.48 in 2013 to $8,362.74 in 2014.
• The number of checking accounts to total members improved in 2014 with 58.12% of our members using us as their primary
financial institution.
Income:
• Income for 2014 is down from the prior year as a result of the higher charge offs and lower yields on loans.
• The good news is we ended the year with a positive ROA of .07% and Net worth in millions grew to $4.01 million dollars, leaving us a
very strong Credit Union.
Expenses:
• Cost of funds were well maintained with a slight decline from .28% in 2013 to .22% in 2014.
• Loan servicing was up as a result of higher delinquency and charge offs as a % of total expense from 6.1% in 2013 to 7.14% in 2014.
• This also had an impact on Professional and outside services 10.45% in 2013, 12.28% in 2014.
Summary:
Management continues to monitor areas of savings and efficiency while striving to provide new and improved services to the membership.
Sincerely,
Mary T. Clarke, CEO & Treasurer
PRODUCTS AND SERVICES:
Simple and Protection Plus Checking with
ID Protect
Savings and Investment Programs
Primary Share account (savings)
Special Savings accounts
Christmas and Vacation Clubs
Youth/College Savings and Checking
Account Program
Youth Member Monthly Deposit Incentive Program
Money Market and Preferred Savings Accounts
Share Certificate (CDs)
Individual Retirement Accounts (IRAs)
Individual Retirement Account Certificates
Smart Start Certificates
Lending Programs
Vehicle Loans, Boat, Camper, Motorcycle,
Recreational Vehicle, and Snowmobile Loans
Personal Loans
Visa Credit Cards
Share Draft Line of Credit
Computer/Student Loans
Share and Certificate Secured Loans
First Mortgage Loans
Home Equity and Home Equity Line of Credit Loans
Online Home Banking
E-Statements
E-Blasts and E-Alerts
Mobile Banking & Remote Deposit Capture
Bill Pay
Online Loan application
Phone Access Teller System (PAT)
Platinum Debit MasterCard
Direct Deposit
Payroll Deduction
Automatic Transfer
OTHER SERVICES:
Loan Skip a Pay
Courtesy Pay
Money Orders
Wire Transfers
Notary Services – by appointment
Scholarship Program
Signature Guarantee
Balance Financial Fitness Program
Referral Mortgage: Home Owners Advantage
and Visions FCU participation with LCU
SPECIAL DISCOUNT PROGRAMS:
CUNA Mutual TruStage Insurance Products
Seasonal Discount Tickets for Great Escape
and Water Safari
Year Ending From 12/31/13 To Year Ending 12/31/14
ASSETS
Loans to Members (net)
Cash & Investments
Land & Building (net)
Furniture & Equipment (net)
Leasehold Improvements (net)
Prepaid Expense
Accrued Income on Loans
Accrued Income on Investments
National Credit Union Share Insurance Fund
Other Assets
Total Assets
LIABILITIES & RESERVES
Accounts Payable
Notes Payable
Other Liabilities
Share Accounts
Reserves
Unrealized Gain/(Loss) on Investments/Pension Assets
Total Liabilities & Reserves
STATEMENT OF INCOME
Interest on Loans
Interest on Investments
Other Income
Total Income
DISTRIBUTION OF INCOME
Compensation & Employee Benefits
Travel and Conference
Association Dues
Office Occupancy
Office Expense
Advertising
Loan Servicing
Professional Services & Education
Provision for Loan Loss
Member Insurance
Federal Operating Fees
NCUA Assessment/Share Insurance
Misc. Operating Expenses
Total Expense
(Gains) or Losses on Investments/Assets
Dividends Paid
Increase to Reserves & Undivided Earnings
Total Income Disbursed
TOTAL MEMBERSHIP
MEMBER AVERAGES
CU Savings Balance
CU Loan Balance
GROWTH STATISTICS ($ MILLIONS)
Shares
Loans (gross)
Reserves
LOAN ACTIVITY (OUTSTANDING)
Consumer/Other Loans
Real Estate Loans
TOTAL
2013
$20,109,664.16
$19,364,819.71
$548,380.80
$67,453.37
2014
$20,091,668.38
$21,014,799.39
$541,396.12
$93,151.14
$72,346.63
$31,289.15
$36,297.08
$348,671.71
$(22,775.25)
$40,556,147.36
$73,353.46
$28,986.83
$42,852.74
$362,359.92
$(16,985.25)
$42,231,582.73
$7,688.88
$2,759.23
$66,357.31
$36,537,273.58
$618,665.65
$3,326,161.94
$40,556,147.36
$36,148.74
$38,188,394.40
$618,665.65
$3,385,614.71
$42,231,582.73
$1,155,240.74
$158,840.81
$443,328.62
$1,757,410.17
$1,087,399.98
$196,994.57
$476,783.46
$1,761,178.01
$631,694.54
$31,960.65
$13,154.15
$80,564.28
$246,757.40
$38,530.11
$81,451.64
$139,528.13
$15,624.61
$724,912.82
$42,357.37
$13,243.92
$75,272.72
$243,847.83
$40,061.68
$104,051.97
$178,913.40
$194,395.23
$8,629.05
$33,118.00
$30,213.28
$1,351,225.84
$3,440.26
$99,452.91
$1,454,119.01
$310,171.68
2013
4611
2013
$7,924.00
$4,389.00
2013
$36,537,274.00
$20,237,714.00
$3,944,828.00
2013 # 2013 $
19
$128,221.00
7
$362,692.00
26
$490,913.00
2014 #
20
8
28
$7,813.65
$$26,570.10
$1,651,440.69
$1,017.30
$82,103.49
$1,734,561.48
$28,651.13
2014
4568
2014
$8,360.00
$4,436.00
2014
$38,188,394.00
$20,019,668.00
$4,004,280.00
2014 $
$78,760.00
$313,366.00
$392,126.00