Stronger Than Ever –
Thanks to You!
2013
annual report
We believe in you… even when other banks don’t.
“No” is a lonely word. But every day it seems more and more that banks are saying “no” to good,
hardworking people. That’s because when it comes to loans, most banks focus on one thing: your
credit score. At TEG Federal Credit Union we want to hear your story and look for all the reasons to
say “Yes!” And if we aren’t able to help you right away, we’ll work with you on a plan so that we
can help you in the very near future.
At TEG, we get it. We understand that with each and every dollar you earn, spend, save, and borrow you’re building toward a future for you and
those that matter most in your life. We want members for life and our goal is to find a solution for each and every person that comes to us looking
for help or knowledge. Talk to Us.
Member Services
TEG Federal Credit Union is a local, member-owned, not-for-profit, full-service community financial institution open to all those who live,
work, worship or attend school in Dutchess, Orange and Ulster county. Since 1969, TEG has been a steady source of financial services for
over 24,000 members including a wide range of Consumer and Business Loans, as well as Free Checking and many other Consumer and
Business deposit account options.
Consumer Deposits
Retirement & Advisory Services
• Free Checking
• We Can Help Members:
• Regular Share (Savings Account)
– Build A Base Of Insurance Protection
• Share Certificates & Individual Retirement Accounts (IRAs)
– Accumulate Retirement Assets
• Money Market Account
– Manage Investments
• Holiday & Vacation Club Accounts
– Plan Retirement Income & Estate
Consumer Loans
Business Services
Apply In-Person, Online, Or Over The Phone!
• Business Lending
• New/Used Vehicle Loans
– Term Loans
• Boat/Motorcycle/RV/Camper Loans
– Revolving & Non-Revolving Lines Of Credit
• First Mortgage Loans & Mobile Home Financing
– Commercial Real Estate Loans
• Home Equity Loans & Lines Of Credit
– Credit Cards
• Personal & Debt Consolidation Loans
• Business Deposits
• Share/Certificate Secured Loans
– Free Business Checking
• MasterCard Platinum Credit Cards
– Business Interest Checking
– Business Savings
– Business Money Market
®
Convenience Services
• Reach A Live Person 24 Hours A Day, 7 Days A Week Through Our
Call Center
• Free Online Banking At www.tegfcu.com That Includes:
– Apps for iPhone, iPad and Android with Mobile Check Deposit, Bill
Pay, eStatements, Mobile Web & Text Banking, External Funds Transfer, Secure Chat, and MoneyDesktop Personal Finance Manager
• Call24 Audio Response Telephone Banking System
• MasterCard® Debit Card
• Payroll Deduction/Direct Deposit/ACH
• Overdraft Privilege
• 24-Hour ATM Machines Available At All TEG Locations
• Convenience Services
– Online Banking
– MasterCard® Business Debit Card
– Merchant Services
President’s Message
TEG Federal Credit Union is stronger than ever – thanks to you
– our loyal members. 2013 brought about a lot of great changes
and additions at TEG that helped us welcome over 1,400 net new
members and lead us to become a credit union with assets just over
$200M!
refinance an existing one, please come talk to us. We offer free
pre-approvals, no application fees, local, in-house underwriting and
processing, and competitive rates and closing costs. Our service is
second to none and our experienced staff will guide you through each
and every step of the process.
By continuing to focus on becoming a trusted advisor to our memberowners, TEG maintained its focus of helping those with less-thanperfect credit. We were able to grow our loan portfolio more than 16%
in 2013 while the average credit union nationwide saw about 6%
loan growth.
The addition of our Online Banking Apps for iPhone, iPad and Android
devices in 2013 was also extremely well received. Our members love
the ability to deposit checks using their smartphone or tablet through
the mobile deposit feature in the apps. We also added MoneyDesktop,
a phenomenal account aggregation and budgeting tool. If you haven’t
used either of these products we invite you to check them out today.
We remain committed to our lending program that looks at our
members as individuals, each with a different story to tell. We evaluate
potential loans on a case-by-case basis and look at the whole picture,
not just your credit score. If you think you won’t be approved for a
loan, please have a conversation with us first. If we’re not able to help
you right now, we’ll tell you, but we’ll also give you a plan that you can
follow so we’ll be able to help you in the near future.
There are more great things on the horizon for 2014. One of our major
projects is the relocation of our Fishkill branch to a more prominent
location near the intersection of Route 9 South and Smithtown Road.
This move will allow us to increase our visibility as well as provide a
drive-up teller and ATM, something our Fishkill members have long
asked for.
In April of 2013 we made a move back to Orange County and
opened the doors of our Newburgh branch on North Plank Road.
In its inaugural year the branch has been extremely successful
and currently serves over 700 members. It continues to grow each
month and we look forward to continuing to build our business in
Orange County.
I want to personally say thank you to each and every member for your
continued support. The credit union is only successful because you,
the members, continue to trust us with your financial services. The
best compliment we can receive is a referral – so tell your friends,
family and colleagues about TEG and help us continue to grow in
2014.
Our in-house mortgage department also continues to grow at an
exciting pace. In 2013 we increased our mortgage originations by
26.9% over 2012. If you are looking to purchase a new home or
Sincerely,
Executive Management
Ronald A. Flaherty, President & CEO
Senior Management Team
Darryl Mauck, VP Lending, Collections & Risk Mitigation
Jackie Fellin, VP Commercial & Residential Lending
Jean Riordan, VP Retirement & Advisory Services
Keith Kurman, VP Branch Sales, Service & Operations
Stephanie Molinelli, Director of Marketing
Peter Olson, Director of Information Technology
Ronald A. Flaherty
President/CEO
Tom Gay
Chief Financial Officer
TEG Branch Managers
Cory Shapiro................. Beekman & Wappingers Falls
Daniel Oniffrey.............. College Center
Michael Muldoon.......... Commerce Street – Main Office
Patty Lipinski................ Fishkill
Glenda Watson.............. Hyde Park
Ashley Chan.................. Newburgh
Shanese Maxey............ Member Access Center
1
Supervisory Committee Report
The Supervisory Committee is appointed by the Board of Directors
to represent the credit union’s membership. Our mission is to ensure
that your credit union’s operations conform to the Federal Credit
Union Act and the rules and regulations of the National Credit Union
Administration (NCUA). The Committee’s responsibilities include
retaining services for an annual report on the financial condition of the
credit union, coordinating the verification of member accounts, and
monitoring the review of internal controls, compliance with laws and
regulations, and code of conduct activities.
conducted its affairs in a most satisfactory manner. Records were
maintained in accordance with prescribed standards and accounting
practices and were found to be current, accurate, complete and in
balance at all times during the year.
As part of fulfilling its duties, the committee engaged the independent
accounting firm Wojeski & Co. to conduct an audit of activities. This
audit was completed in March 2014 for the year ending December
31, 2013. We are pleased to report that no anomalies were found and
the credit union adhered to all rules and regulations during 2013 and
We look forward to continued cooperative efforts in the future and
thank our members for choosing to conduct their financial business
with TEG. Sincerely,
The Supervisory Committee feels that the internal control policies
and procedures in place will help keep your credit union safe and
sound. We, the Supervisory Committee, are pleased to report that
TEG Federal Credit Union is financially sound and is in compliance
with all applicable rules and regulations.
Edward Hotaling, Supervisory Committee Chairman
Financial Report Charts
Members
18,185
17,917
22,701*
24,180
$ THOUSANDS
18,696
*Please note that in 2012 we
began adding joint membership
counts to our membership totals
which accounts for the large
increase in membership.
'2009
'2010
'2011
'2012
'2013
$186,266,112
$200,781,736
Total Assets
$159,622,269
$165,732,578
'2009
'2010
'2011
'2012
'2013
$142,044,842
$148,681,905
$160,206,552
$168,018,701
$182,160,194
'2009
'2010
'2011
'2012
'2013
$100,291,229
$100,441,574
$97,488,677
$112,704,338
$131,026,901
'2009
'2010
'2011
'2012
'2013
$177,897,929
200000000
150000000
100000000
50000000
$ MILLIONS
250000000
Shares & Certificates
150000000
100000000
$ MILLIONS
200000000
50000000
150000000
120000000
90000000
60000000
$ MILLIONS
Loans
30000000
2
Financial Statements |
Statements Of Financial Condition – December 31, 2013 And 2012
2013 Actual
2012 Actual
Total Loans
Less: Allowance for Loan Losses
Cash and Cash Equivalents
Total Investments (Book Value)
Land and Buildings
Other Fixed Assets
NCUA Share Insurance Fund
Other Assets
$131,026,901
($1,072,350)
$2,928,095
$51,811,785
$4,078,752
$1,174,319
$1,802,967
$9,031,267
$112,704,338
($944,258)
$2,210,298
$57,304,420
$4,292,525
$878,195
$1,694,570
$8,126,024
Total Assets
$200,781,736
$186,266,112
ASSETS
LIABILITIES
Accounts Payable and Other Liabilities
$2,248,161
$2,311,182
SHARE AND EQUITY
Total Shares and Deposits
Regular Reserves
Unrealized Gain (Loss) on Investments
Undivided Earnings
Total Liabilities and Equity
$182,160,194
$2,075,649
($785,882)
$15,083,614
$200,781,736
$168,018,701
$2,075,649
$80,356
$13,780,224
$186,266,112
Statements Of Operations For The Years Ending – December 31, 2013 And 2012
EARNINGS
Interest on Loans to Members
Income from Investments
Fee Income
Other Income
Total Earnings
$7,168,261
$867,677
$3,056,512
$1,429,140
$12,521,590
$6,335,034
$864,744
$2,823,863
$1,032,697
$11,056,338
EXPENSES & OTHER
Operating Expenses
Gain/Loss on Sale of Assets
Gain/Loss on Investments
Other Non-Operating Income/Expense
$10,640,315
$0
($152)
($122)
$9,580,719
$0
$0
$6,846
Total Expense & Other
$10,640,041
$9,587,565
$1,881,549
$844,648
$1,468,773
$922,518
Income Before Cost of Funds
Dividends Paid to Members
NET INCOME
Distribution of Net Earnings
$1,036,901
$546,255
Regular Reserve Accounts
Undivided Earnings
$0
$1,036,901
$0
$546,255
Total Earnings
$1,036,901
$546,255
NOTE:
Total Lines of Credit Available
Total Gain (Loss) on Investments Available for Sale
$23,344,385
($785,882)
$21,159,710
$80,356
3
Minutes Of The 44th Annual Meeting
The 44th Annual Meeting was held on Thursday, March
21, 2013 at the Main Office of TEG FCU, 1 Commerce
Street, Poughkeepsie, New York, 12603.
I. Call to Order
The 44th Annual Meeting was called to order by Chairman
Walter V. Behrman Jr. at 5:50 p.m. Mr. Behrman asked all
to stand for the Pledge of Allegiance. The Board Secretary,
Mr. La Rose, confirmed the presence of a quorum.
II. Minutes
A copy of the 43rd Annual Meeting minutes appears in
the 2012 Annual Report. Joyce Betros moved, seconded
by Marie Dow to approve and accept the minutes of the
43rd Annual Meeting. Since there were no additions or
corrections, the motion passed unanimously.
III. Chairman’s Remarks
Mr. Behrman introduced himself as the Chairman of the
Board of Directors as well as other Board Officers: Paul
Goldstein, Vice Chairman; Frank J. La Rose, Secretary;
and Barbara Hogan, Treasurer. Other Board Members are:
Joseph Corrigan, Jesse Doughty, and Eugene Gumienny
who was unable to attend the meeting.
Mr. Behrman stated that the Supervisory Committee
is very important to the workings of the credit union.
Members of the committee are: Edward Hotaling,
Chairman; Ann Boehm; William McCabe; Joseph
Lombardi; and Victoria Nameth.
Mr. Behrman then continued, “It doesn’t take an expert
to know that our world is changing. Change is vital to our
existence, but we treasure constancy and familiarity. Here
at TEG we strive for both. For constancy and familiarity
we remain a reliable place to use as your primary
financial institution. All of our employees are dedicated
to member service. We have our Call Center employees,
our Branch Managers and the Member Service Reps,
our new Mortgage Department employees, our back
office staff, our Lending and Collections Department,
our CFO, Comptroller, IT Department, Human Resource
Department and Marketing Staff and our Retirement &
Advisory Services Department. I should mention Keith
Kurman, our Vice President of Branch Operations, Sales
and Service. He is the individual who monitors all of our
Branch Operations to make sure we are offering the best
and most member friendly services possible. He is also
the person who will most likely be the one to take care of
any problem a member might have if it can’t be resolved
by the Branch Manager. Everyone under the direction of
the Board of Directors and their most important employee
our CEO, are all dedicated to offering the best financial
service possible. TEG is a constant in your life. We are
dependable and reliable and ready to serve you.”
Mr. Behrman continued, “Constancy is important but
change we must. We have changed and will continue to
change. We have transformed ourselves from a small
4
Credit Union started in the Wappingers School District, to
a one office operation on Route 9, to an organization with
the main office you see here, five branches, a new branch
in Newburgh which is about to open, and a new one to
replace our current Fishkill location. The latter two will be
discussed by Mr. Flaherty in his report. We have moved
from doing business in a shoebox in 1969, to having the
most up-to-date technological advances available to our
members. We constantly update our security to keep your
business private and safe and we try to offer you, our
members, the most comprehensive financial services and
technology available today. We began our own Credit Card
program to give our members the best rates possible.
We continue to be member centered. That is our mission.
That is our goal.”
Other Credit Union programs Mr. Behrman spoke about
were Loans and Capital. He continued, “Loans are an
important part of the TEG strategy. This year we began
our in-house Mortgage Department under the direction
of Jackie Fellin. She has done an outstanding job setting
up the department and getting it running smoothly. Our
goal is to help our members and this department is also
a source of income for us, which allows us to grow and
continue to help our members. Our three Mortgage Loan
Officers, who have years of professional experience, Art
Anderson, John Reidy and Jessica Schoen are there to
help our members. We have the knowledge and expertise
to make getting a mortgage an easy and pleasurable
experience. All of our Loan Officers in all of our branches
are there to help our members. From those with “A” credit
to those with more colorful credit. We try to do what we
can for members while ensuring that we make the right
decisions which also protect the Credit Union.
We are a well-capitalized Credit Union. Our net worth to
assets ratio is close to 9%, well above the 7% required by
NCUA. We are a very well-run organization.
Our Marketing Department, led by Stephanie Molinelli,
has recently completed a total Web site redesign to make
the site more modern, user friendly and easy to access
desired information. They also created a mobile version of
the Web site that is compatible with mobile devices.”
Mr. Behrman then continued by mentioning the
involvement of the Credit Union and its employees in
our community. “TEG and its staff members are out in
our communities. We attend events and sponsor some
in Dutchess County as well as surrounding counties
in our field of membership. Some, but not all of our
activities include: Dutchess County Regional Chamber
of Commerce (DCRCOC) Corporate Supporter, Hudson
Valley Young Professional Events, DCRCOC Marketplace
Expo, Fishkill Business Association’s First Financial Expo,
Hudson Valley Family Fest at Dutchess Stadium, Shalom
on Grand at the Jewish Community Center, LaGrange and
Beekman Community Day, Arlington Street Fair, Cornwall
Street Festival, Halloween with the Renegades. We also
participated in the Healthy Aging Expo and Senator
Saland’s Golden Gathering, the Dutchess County Office of
the Aging “Senior Prom,” the Dutchess Outreach Annual
Brunch Fundraiser, the Marist College New Student
Orientation Week and the Marist Wellness Fair. We worked
with Dutchess County Realtors and builders so they can
refer members and potential members to our excellent
services.
We have a Student of the Month program, our own college
scholarship program, and we sponsor various teams and
events all around our area. We collected $1,000 from our
members for Superstorm Sandy relief as well as made
a $20,000 donation to the Red Cross on behalf of TEG.
We collected coats for the Dutchess Outreach Coat Drive,
collected toys for Toys for Tots, adopted two families for
Christmas through the DCRCOC Adopt a Family program
as well as volunteered at Stuff the Bus.
The Retirement and Advisory Services Department
conducted seminars to answer questions about
Medicare Coverage, Savvy Social Security Planning and
How to Position Yourself in an Ever Changing Financial
Landscape.
Our whole organization is dedicated to helping our
members. If you need a car, want to purchase a house,
need help with your finances, want to plan for retirement
or just want to save for the future, this is the place to
come. We are here to serve you.
Mr. Behrman thanked the members for attending the
meeting. After a short pause he continued by introducing
Mr. Ron Flaherty, President and CEO.
“I want to take a few moments to update you about a few
things. Ron came to TEG in 2000 as the Chief Financial
Officer. He had many years of business experience which
served him well in the position of CFO. Based on his work
ethic, his business acumen, and his knowledge of the
culture of the Credit Union, the Board of Directors chose
him as our new President and CEO to replace the retiring
Joseph Prokop, who had been CEO since 1979. Those
were big shoes to fill. Joe had taken the Credit Union from
a small, one office organization to one with a brand new
state- of-the-art main office where we are now, and five
branches. Our organization had grown and was on a solid
financial footing. That was a solid basis to build on.
I must say that the Board of Directors made an
extraordinary choice for CEO when we chose Ron. He
has more than met the expectations of the Board. 2012
was the first full year that he was CEO. He has come to
the job with dedication to the members and staff of the
Credit Union. He has pressed forward with new programs,
strengthened old ones, is pushing forward with ideas to
expand our presence in the area, which he will explain
in a minute, and he has done this with a professionalism
Board Of Directors
Walter V. Behrman, Jr.
Chairman
Paul Goldstein
Vice Chairman
Barbara Hogan
Treasurer
Frank LaRose
Secretary
Gene Gumienny
Joseph Corrigan
Jesse Doughty
Supervisory Committee Members
Joseph Lombardi
Ann Boehm
Victoria Nameth
Bill McCabe
and air of respect for our members, our staff and the
Board. Ron was the right choice to lead this Credit Union
forward in the years ahead.”
IV. President/CEO Report
Mr. Flaherty started his report by thanking the Board
of Directors and Supervisory Committee for all they
do and the support they provide everyone at TEG. He
mentioned that those individuals volunteer their time for
the benefit of the entire Credit Union. He also thanked the
outstanding staff that work so hard to earn our members’
trust and business every day and in every way possible.
He continued by mentioning that our economy continues
to regain traction from one of the worst recessions in
history, and that the Credit Union continues to do very
well and remains a well-capitalized and well-managed
financial institution. Mr. Flaherty stated that the main
focus is helping members by taking the time to listen and
offer solutions to help save money and get people on the
right financial track. Bad things sometimes happen to
good people and the Credit Union is here to help people
when they need us.
Mr. Flaherty mentioned that for the first full year that
he was President and CEO the Credit Union was able
to create new opportunities which set in place the
foundation for the future growth and success of the Credit
Union. We established an in-house Mortgage Department
and originated over $34M in loan volume. We developed
our own Credit Cards and restarted our Indirect Lending
Program.
We grew our loan portfolio over 12%, our deposits grew
close to 5% and we earned over $500,000 in net income.
Mr. Flaherty then explained about our new branch in
Newburgh. It is located just over the Newburgh/Beacon
Ed Hotaling, Chairman
Bridge right on Rt. 32 at the exit/entrance to Route 84.
The Credit Union agreed to lease a new office on Route
9 in Fishkill, which will replace our existing Route 9
location, but which will be more visible and have easy
access to Route 9 North and South.
Later in the year we will be transitioning our online
banking to a new vendor and Mr. Flaherty promised that
the Credit Union will work diligently to make sure that this
transition is as seamless as possible. The Credit Union
is also implementing a new loan system to allow us to
speed up the loan process and do a more thorough job
underwriting.
In conclusion, he stated that he was very proud of our
staff and what they have accomplished in 2012 and looks
forward to moving forward in 2013 as well.
He thanked the members again for their support and
asked if anyone had any questions.
V. Treasurer’s Report
Ms. Barbara Hogan gave the following report.
Annual Financial Condition-2012:
members. He stated that the Supervisory Committee
was pleased to report that TEG Federal Credit Union is
financially sound and is in compliance with all applicable
rules and regulations. Lastly, he said that our outside,
independent CPA firm, Wojeski & Co., had conducted the
annual audit and found that TEG had adhered to all rules
and regulations during 2012. The audit found that all
records were maintained in accordance with prescribed
standards and accounting practices.
VII. Old Business
None
VIII. New Business
Elections: Mr. Behrman announced that he and Mr.
Goldstein were the only ones nominated for positions on
the Board so he turned the meeting over to the Treasurer,
Ms. Hogan. Since there are no other nominees for the
two open positions on the Board, Ms. Hogan requested
that the Secretary cast one vote for each individual. Ms.
Hogan congratulated both individuals. She then turned the
meeting over to Mr. Behrman.
Total Assets. . . . . . . . . . . . . . . . . $186,266,112
IX. Questions and Answers
Total Liabilities and Equity. . . . . . $186,266,112
None
Total Earnings . . . . . . . . . . . . . . . . $11,056,338
Net Income . . . . . . . . . . . . . . . . . . . . . $546,255
Total Members. . . . . . . . . . . . . . . . . . . . . 22,701
VI. Supervisory Committee
Mr. Edward Hotaling, our Supervisory Committee
Chairman, thanked the Supervisory Committee members
for their time and support of TEG. He then thanked the
Board of Directors, Mr. Flaherty and his management
staff for their efforts to provide the best services to our
X. Adjournment
Mr. Behrman thanked Stephanie Molinelli and Elaine
Lacy for organizing the Annual Meeting and since there
was no further business to come before the assembly he
adjourned the meeting at 6:22 P.M.
Respectfully submitted,
Frank J. LaRose
5
Federal Credit Union
“Proud To Serve Our Community”
Conveniently Located to Serve You
Poughkeepsie – Main Office
1 Commerce Street, Poughkeepsie, NY 12603
Beekman
Town Plaza, 2540 Route 55, Poughquag, NY 12570
Fishkill
196 Old Route 9, Fishkill, NY 12524
Hyde Park
4282 Albany Post Road, Hyde Park, NY 12538
Newburgh
16 North Plank Road, Newburgh, NY 12550
Poughkeepsie – College Center
11 Marist Drive, Poughkeepsie, NY 12601
Wappingers Falls
Nesheiwat Square, 900 Route 376, Wappingers Falls, NY 12590
Available 24 Hours a Day, 7 Days a Week!
Local (845) 452-7323
Toll-Free: (888) 834-8255
www.tegfcu.com
Federally insured
by NCUA