shape A dynamic future
connect with new opportunities
depend on the TRADITION of security
expand your possibilities
realize the protection OF your finances
energize your savings
know the VALUE
of peace of mind
Community Credit Union
87 Hale Street, Lowell, MA 01851 110 Newbury Street, Danvers, MA 01923 969 Concord Street, Framingham, MA 01701 Cross Point Towers – 900 Chelmsford Street, Lowell, MA 01852
Community Credit Union
Annual Report and Record for 2008
A TRADITION OF VALUE
Our Mission
To be the premier financial institution in the markets we operate and create a unique high tech, high touch culture in which we build lifetime relationships with our members. Our members believe NMTW Community Credit Union is essential in achieving their financial goals; members will benefit from our involvement and investment in their future; so will our staff.
Our Vision
To become the premiere provider of financial services to our members. We will take our members toward new levels of financial relationships by providing: • Advisors who focus on helping members enhance their financial lives through consultation, relationship management, member knowledge, useful service/product, delivery channels, and marketing messages. • Integration of product and service solutions that members want and need into a single, effective approach for building relationships with our members. • Staff fully credible in the area of financial education and planning to fit members’ needs, supported by a highly capable credit union management team. • Differentiate our services from other competitive offerings and deliver profitability by exceptional service, valued added products, personalized relationships, and value at a fair cost.
Community Credit Union
SHAPING
the future
I
n the past year we have seen some of the world’s biggest financial institutions caught in a tangle of bad loans, scarier investments, Wall Street and the Auto Industry demise. The U.S.
has been overwhelmed by the distressing financial news and millions of Americans are struggling to pull free from their own economic woes. While we too, are disappointed in today’s financial environment and unsettling forecast, there has never been a better time to be a credit union member. You are part of a tradition that was founded on, and remains rooted in, the concept of providing value through sound and informed financial service
“...create a unique high tech, high touch culture in which we build lifetime relationships with our members.”
and support. We are proud to tell you that your Credit Union’s prudent, financially conservative approach has served your Credit Union and our membership well. At no time were your accounts and investments with NMTW Community Credit Union in danger. We are a large, mature, well-capitalized credit union with a track record of sound money management. Our expertise and common sense mean that we are one of the few financial institutions with an enviable AAA top rating on our investment portfolio. Your deposits are federally insured-secured up to $250,000 by the National Credit Union Share Insurance Fund (NCUSIF). We also provide members with additional deposit insurance through the Massachusetts Share Insurance Corporation (MSIC). Your Credit Union has remained financially strong and true to its mission: “To be the premier financial institution in the markets we operate and create a unique high tech, high touch culture in which we build lifetime relationships with our members. Our members believe NMTW Community Credit Union is essential to achieving their financial goals; members will benefit from our involvement and investment in their future; so will our staff.”
CONNECTING
with new opportunities
O
ur members have responded with a resounding acknowledgement about their positive Credit Union experience. Nearly 9 out of every 10 members replied that they would refer the Credit Union to their friends and family. This kind of
endorsement is indicative of the personal attention and value we provide members every day. The year 2008 was challenging, however, your Credit Union was still able to remain financially strong and increase our infrastructure by: 1. Opening a new branch at Cross Point Towers
“...9 out of every 10 members replied that they would refer the Credit Union [NMTW] to their friends and family.”
2. Designing and re-designing new checking accounts to better fit our cross-section of members 3. Enhancing our home financing area with 3-1, 5-1 mortgages and unveiling iHome, our internet-based mortgage application solution 4. Rewarding members with our Friends and Family Program, where anytime a member referred a “new” member, they both received monetary rewards We also added an array of products and services for small businesses which include business checking, business debit and credit cards, remote deposit capture, SEPs, and business insurance. This selection of business products was crucial in order to augment our commercial loan products. All aspects of our Credit Union point to growing “Value” for our members. Building an organization based on “Value” for our members. “Value” to the member is having partners, products and services such as Auto Advisors, Members Financial Services and Insurance Center of New England where professional, financial advice is given without grabbing an additional fee, and still providing the best “Value”.
DEPEND
on the tradition of security
I
n 2009, more value added services are now on the drawing board, such as education consultants, guaranteed parent student loans, home advisors, Bank At Work, Virtual
Branch, and a Super Size Savings Account which will provide higher yields and monetary rewards if a member saves, and more. We at NMTW Community Credit Union believe in the “value added” concept and your Credit Union was recently recognized and rated by Callahan & Associates of Washington D.C., a well known and respected bank and credit union financial advisory, as one of the top 50 Credit Unions in the country for returning value to its members. (The ROM score). Only three were selected from the
“We will continue to safeguard your investments, implement new ways to help you manage your fiancial life, be active corporate citizens in your community and provide Value.”
New England states. This recognition only intensifies our resolve to do even better. 2009 will be a challenging year across America. In our 86 years, NMTW Community Credit Union has weathered financial storms like the one we face now. We will continue to safeguard your investments, implement new ways to help you manage your financial life, be active corporate citizens in your community and provide “Value.” Together, we will be safe and successful as this economy recovers its strength and stability. Thank you for being a member of NMTW and for your trust.
Kenneth M. Del Rossi President/CEO
George R. Gagan Chairman of the Board
2008 Value Innovations/Expansions
HOME
iHome
TM
YOUR HOME LOAN FROM START TO FINISH
An online mortgage service center that provides rates, online applications, progress reports, and approvals 24/7. Checking Accounts Checking accounts that meet your needs and lifestyle, with options for people who prefer to bank online, earn rewards, or receive interest. Business Services Business Services that offer creative and sound real estate and business financing solutions to help you achieve your goals. Member Value Center Provides personal telephone assistance by “live” trained employees, who answered a record 102,965 member calls in 2008. Community Involvement NMTW Community Credit Union is proud to support our local communities’ organizations that work selflessly to preserve and continue valuable traditions. • The Lowell Plan • Lowell Community Charter School • Saints Memorial Hospital • Kids at Heart program (Credit Unions united in supporting Children’s Hospital Boston) • Lowell General Hospital Walk for Cancer Care and March of Dimes Walk for Babies • Toys for Tots Foundation • Elder Services of Merrimack Valley • H.O.M.E. (Homeowner Options for Massachusetts Elders) • Credit Union Community Hope Initiative (through the Massachusetts Credit Union League) • Boys and Girls Club of Greater Lowell
CALL 1-800-942-9575 TO CONNECT TO VALUE-ADDED SERVICES
MemberValueCenter
E X PA N D I N G
your possiblities
Cross Point Towers Branch Opens September 2008 A unique branch offering full financial services opens at Cross Point Towers, 900 Chelmsford St., Lowell MA.
Strategic Value - Partnerships In addition to full-service banking, we also offer members convenient services through our value-added strategic partners, so that all your financial needs can be met at once. Members Financial Services Provides comprehensive financial planning solutions designed specifically for NMTW CCU members. The Members Financial Services program provides access to a wealth of information and options for every stage of your life—including mutual funds, stocks, variable annuities, 529 college savings plans, life insurance programs, 401(k) investments, fixed annuities, estate planning and financial analysis.
*Representatives are registered, securities are sold, and investment advisory services offered through CUNA Brokerage Services, Inc. (CBSI), member FINRA/SIPC, a registered broker/dealer and investment advisor, 2000 Heritage Way,Waverly, Iowa 50677, tollfree (866) 512-6109. Nondeposit investment and insurance products are not federally insured, involve investment risk, may lose value and are not obligations of or guaranteed by the financial institution. CBSI is under contract with the financial institution, through the financial services program, to make securities available to members. FR040824-DC99
Auto Advisors A free service available to credit union members that eliminates the frustration and confusion of buying a vehicle. Auto Advisors virtually eliminate the
TM
HASSLE FREE CAR BUYING
AUTO ADVISOR
high pressure sales tactics, waiting, and driving around from lot to lot. Auto Advisors educates you on the car buying process and will ensure that you get the vehicle you want at a price you can afford. Insurance Center of New England Offers members great rates and discounts on automobile and homeowners insurance policies. A full-service agency, ICNE provides interest-free payment plans, full-service 24/7 claims contacts, and safe driver discount programs. In addition to standard Commercial Lines, they also offer Group Benefit Solutions for group health, life, dental, disability and other employee benefits.
REALIZE
financial protection
Condensed Statement of Financial Condition
Assets Loans Allowance for Loan Losses Net Loans Investments Mark to Market on AFS Sec. Net Investments Fixed Asset NCUA Insurance Premium Interest Receivable on Investment Other Assests Total Assets
12-31-08 $256,319,850 -1.813,349 254,506,501 163,496,869 1,471,248 164,968,117 6,053,246 3,095,115 1,280,806 3,036,901 $432,940,686
12-31-07 $239,816,050 -1,282,916 238,533,134 166,392,005 78,921 166,470,926 6,133,323 3,067,095 1,841,640 2,951,361 $418,997,479
Liabilities Shares and Deposits Borrowings Other Liabilities Total Liabilities 330,242,758 35,500,000 1,584,789 $367,327,547 333,467,650 20,275,000 1,751,484 $355,494,134
Capital Undivided Earnings Guarantee Fund Unrealized Gain (loss) on AFS Total Capitol 49,794,482 14,347,409 1,471,248 $65,613,139 49,077,015 14,347,409 78,921 $63,503,345
Total Liabilities and Capital
$432,940,686
$418,997,479
ENERGIZE
your savings
Statement of Income
Income Interest on Consumer Loans Interest on Real Estate Loans Interest on Credit Card Loans Interest on Security Investments Total Income Interest Other Income Gains/(Losses) on Sale of Assets Total Income
12-31-08 $3,241,608 10,188,110 2,910,742 6,786,738 $23,057,198 2,585,197 169,423 $25,811,818
12-31-07 $3,488,315 10,150,687 2,822,203 6,711,224 $23,172,429 2,444,016 77,921 $25,694,366
Expenses Dividend Expense Provision for Loan Losses Operating Expenses Interest on Borrowings Total Expenses 9,346,038 1,852,632 13,208,766 686,915 $25,094,351 10,365,637 761,120 12,601,423 177,908 $23,906,088
Net Income
$717,467
$1,788,278
knowing
PEACE OF MIND
Board Members Steven J. Babbitt – Director Lynn, MA Volunteer since 2000 John J. Crowley – Director Beverly, MA Volunteer since 1983 George R. Gagan – Chairman
“...there has never been a better time to be a credit union member. You are part of a tradition that was founded on, and remains rooted in, the concept of providing value through sound and informed financial service and support.”
Lowell, MA Volunteer since 1967 Daniel P Golden – Director . Merrimac, MA Volunteer since 2000 Frank H. Lospennato – Director Chelmsford, MA Volunteer since 1994 Francis J. McKenney – First Vice Chairman Lowell, MA Volunteer since 1980 David R. Morris – Director Derry, NH Volunteer since 1992 Karen A. Morris – Clerk Reading, MA Volunteer since 1998 Richard W. Piecewicz – 2nd Vice Chairman Tewksbury, MA Volunteer since 2000 Linda L. Purtell – Director Dracut, MA Volunteer since 1998 Maxwell G. Rodgers – Director Tewksbury, MA Volunteer since 2001 Alan J. Sexton – Director Lowell, MA Volunteer since 1993 Steven P Sousa – Treasurer . Lowell, MA Volunteer since 1990