2018 Annual Report


As we do every year, we entered 2018 with purpose, passion, and plans to create prosperity for our members and communities. Holding our members’ wellbeing as our highest priority, VSECU offered new products and services that make everyday lives easier and more affordable, keep money local and solve local problems, and help us to be a safety net for the unknown future.





Whether you’re awake or sleeping, your money is always hard at work when it lives at VSECU. As a cooperative, we’re focused on keeping dollars local—where your hard-earned money will have the greatest impact and make a difference in the lives of fellow members, our environment, and the world we’re building for future generations. We empower our member-owners to truly own their financial experience, whether we're providing answers to their questions or helping them open a deposit account that partners their money with a commitment to improving energy efficiencies and combating climate change. When VSECU profits, our members profit and Vermont profits; these profits create real results through community donations and investments designed to drive change. We’re proud to be part of a collective of people committed to both sustaining and improving our way of life for individuals and communities. At the end of the day, our financial cooperative’s success is Vermont’s success. This success begins with each and every one of us pooling our resources together and the simple act of banking. Rest assured, whether it's day or night, your money is put to work at VSECU for you and the greater good. 


For many years, VSECU has led the way as a values-based financial choice. These values are in our DNA. We’ve always held the belief that banking cooperatively helps everyone create good for our world. As the first U.S. credit union to join the Global Alliance for Banking on Values, we support, promote, and measure ourselves against the principles of values-based banking. Long term growth and stability, appropriate risk, assets in service of our members, and a focus on people, planet, and prosperity are guideposts to how we do business as we strive to meet the needs of our members.


This three-year average is a measure of how much money we make on each dollar that comes into our credit union. It tells us how well we’re doing generating revenue that we can then invest in the membership.


This ratio measures the balance between how much money we have in accumulated reserves (equity) and the total assets of the credit union. This helps us understand how resilient we are to outside disruptions, or how able we are to use finance to invest in improved and expanded services for our membership. Our target is a 9% ratio.


Asset quality ratio indicates the percentage of our loans that are up to 90 days in default. A low number shows our attention and commitment to working with members closely. We help members use debt responsibly and stay out of default by refinancing or consolidating their loans, so they can stay on top of their debt.


Our purpose, as a credit union, is to serve the financial needs of members. This ratio measures how much of our loans are funded by member deposits. Funding our members' needs with deposits keeps money within our local economy.


This ratio tells us how much of our total assets are invested in members’ direct purchases, such as their house or their car. When we invest in the real economy, our investments are more transparent and reflect stronger relationships with our members and our local community.

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Loans to our members bring in interest and fee income. This ratio shows how much of our loan income (revenue) is a result of our members’ direct purchases (homes, cars, etc.). It is a measure of how member-focused our lending and revenue stream are.


This measurement indicates what percentage of our assets have a direct impact on people, planet, or prosperity. Currently this is at 60%. These are loans that fund energy improvements, build strong downtowns, put roofs over families, help people save money on their heating fuel, support vulnerable Vermonters, and more.

OUR CULTURE: Our Team, Our State, Our World

VSECU values our employees, our neighbors, our state, and the world in which we all live. As members of Vermont Businesses for Social Responsibility and the Global Alliance for Banking on Values, we’re building partnerships and creating coalitions to cultivate a more prosperous future for all. It takes a strong team to achieve these goals, and we’re honored to be recognized for the third year in a row as one of the Best Places to Work by Vermont Business Magazine.




VSECU invested $300,000 in a statewide effort to create 60 units of affordable housing for Vermonters. That’s just one of the ways we serve the people who live and work in our state.

Solar House

Our members deposited $46.7 million into nearly 800 VGreen Money Market accounts, putting their money to work for themselves and for green energy projects right here in Vermont.


Whether financing home or business projects or covering everyday purchases, our

9,150 loans ensured VSECU members had the funds they needed.




People are the foundation of strong communities, but only through individual enrichment and access to essential needs. We pave pathways to enrichment by providing access to affordable financial products and services, helping members save money in non-traditional ways (like reducing the cost of home heating), and giving members direct control over how VSECU distributes charitable dollars around Vermont.




We are a steward of our environment. We are committed to helping our members protect our planet, reduce carbon emissions, live a green and sustainable life, and combat climate change. We partner with some of the state’s largest utilities, as we’re all committed to making it easier for everyone to show their love for Mother Earth. In our operational practices, our business products, and our consumer loan and investment products, we harness green energy options, offer them to Vermonters, and unleash people’s passion to make positive change for themselves and for our planet.



Building a more prosperous future for all Vermonters means using every tool in our toolkit to open doors for people to access capital that can improve their lives. For some, the tool they need is a mortgage on a more energy efficient home. For others, it’s a loan for a more reliable vehicle that will keep them safe on Vermont’s roads or a savings account that helps them plan for a future purchase. For many, it’s getting help with their investments and retirement planning, so their money works best for them and the things they need and care about. Regardless of how members work with the credit union, VSECU makes sure every dollar is hard at work doing good for our neighbors.


We financed more than $102.6 million through 7,982 loans to help members fund everything from adventure to home to play.

VSECU helped people finance 465 homes and provided access to equity on 528 homes in 2018, financing a total of $102,732,772 in mortgages.


Businesses took out 145 loans, totaling $21,298,149, which helped finance small business, nonprofits, and emerging industries like CBD and hemp.


Our Member Relations teams are passionate about people. We believe in making human connections and helping our members achieve their goals—whether in one of our nine branches, over the phone, or online. A key message we heard from our member-owners in 2018 was: “More convenience, please!” When you speak, we listen. We expanded credit union access to nearly 5,000 credit union locations in the U.S.!  No, we didn’t build 5,000 new branches but joined the CO-OP Shared Branching Network so that you can conduct your VSECU transactions in other credit unions across the nation. We moved our Burlington branch to the heart of downtown, so it’s literally a walk in the park to do your banking with VSECU. By introducing Touch ID, we made logging in to Mobile Banking easier and more secure. We’re working every day to make the VSECU experience the best it can possibly be for everyone. 



We know that our members thrive when their communities are strong. Each year, VSECU makes donations to improve the quality of life here in Vermont. We support organizations that help our neighbors stay warm, get needed nutrition, have a safe place to sleep, enjoy a clean environment, and understand how to work with money. In 2018 we made over 53 donations to organizations including Spectrum Youth and Family Services, Hunger Free Vermont, Vermont Women’s Fund, Dinners With Love, and the North Branch Nature Center.

P2P Logo2-1

An energetic and inspiring team came together on August 11, 2018, for the Point to Point, powered by VSECU. Joined by a common passion for fitness, philanthropy, and feeding our neighbors, 438 riders and runners raised more than $117,000 for the Vermont Foodbank.



As we do every year, we entered 2018 with purpose, passion, and plans to create prosperity for our members and communities. Holding our members’ wellbeing as our highest priority, VSECU offered new products and services that make everyday lives easier and more affordable, keep money local and solve local problems, and help us to be a safety net for the unknown future.


Our future as a state, and as a credit union, depends on our members’ prosperity. Every decision we make and every change we implement is viewed through the lens of: “How will this help our members and the Vermont communities where they live?”

Much of our focus during the year was on making your experience more convenient. We implemented enhancements to mobile banking to make it easier for you to get information and conduct business when it’s convenient for you. We also made improvements to our branch system. We joined the CO-OP Shared Branch Network, providing you access to more than 30 additional branches locally and nearly 5,000 nationwide. We relocated our Burlington branch from Pearl Street to St. Paul Street, in the heart of downtown, to create greater access for more of our members and provide a greater array of services.

We also took steps to make it easier for you to make change, simply by banking with VSECU. We strengthened our VGreen Money Market account, helping you to maximize your savings while also funding green projects and keeping your money working right here in Vermont. We assumed the leadership role for the Point to Point, the Vermont Foodbank’s largest annual fundraiser. We could have simply given a monetary donation, but by spearheading this biking and running event, we’re helping thousands of people find an opportunity to combine their passions for helping their fellow Vermonters and outdoor physical activity.

We were able to accomplish these achievements while also keeping your cooperative financially strong. We look forward to approaching the future with the same passion for our mission to improve the quality of life for our members.

Thank you for being a member-owner of VSECU

Norm McElvany,
Chair, Board of Directors


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Rob Miller,





We ended 2018 in a strong position. Our assets grew $25.8M to reach $778.2M. Net income was $5.4M, the strongest performance in our history. We achieved our 3-year objective to grow our capital as a percent of assets (Net Worth Ratio) to 9 percent, leaving us a solid foundation to continue making investments in member service, convenience, and innovation.


The financial environment in 2018 was dominated by the continuation of rising rates. Over the year, we saw the Federal Reserve take a patient approach, yet still raise interest rates four times from 1.5 percent to 2.5 percent. At VSECU, we monitored our deposit and loan rates closely and worked to maintain a competitive position, rising with the market conditions while always striving to deliver value to you, our members. During the year, we increased member deposits by $28.4M, grew member loans by $36.4M, and paid over $3.2M in interest to you.


In addition to rate changes and new deposit products, both of which resulted in higher yields, we managed our assets to maintain capital to fund member loans in the most economical way possible. We decreased our investment portfolio by $11M to fund loan growth at terms favorable to our members as well as decrease borrowings from outside of the credit union by $2M.


Lastly, none of our growth, value, and member interest payments could have happened without your membership and continued trust in our growing cooperative credit union. Together, we are building and maintaining a strong source of financial security and peace of mind for you and the generations to come.


  • Spencer Newman,
ASSETS 12/31/2018 12/31/2017    FOR THE YEAR ENDED  12/31/2018  12/31/2017
Member loans, net allowance  $668,148,906  $631,715,536    Member loan interest   $27,550,449   $24,839,725 
Investments  $72,339,316  $83,482,357    Investment interest   $1,953,902    $1,169,580 
Fixed assets $16,132,722 $16,935,101    Total interest income
  $29,504,351    $26,009,305 
NCUA SIF  $6,357,821  $6,041,980        
Other assets $15,235,757 $14,258,648    Dividend exp on deposits   $3,248,232    $2,704,141 
         Interest expense on borrowing   $938,474    $386,322 
$778,214,522 $752,433,622    Total interest expense
  $4,186,706    $3,090,463 
 LIABILITIES AND EQUITY  12/31/2018  12/31/2017    Net interest income
  $25,317,645    $22,918,842 
 Liabilities  $7,795,415 $9,989,984   Provision for loan loss exp  $2,424,288
Borrowed funds $50,000,000 $52,000,000    Net int income, after PLL*
 $22,893,357  $20,956,687
Member shares/savings $651,343,880 $622,943,773        
Non-member shares $-   $3,130,000   Non-interest income $10,824,458  $9,747,051
Regular reserves  $11,953,743 $11,953,743   Non-interest expense  $28,322,148  $27,369,594
Undivided earnings $58,281,107 $52,914,789   Non-operating (loss)/gain  $(29,347)  $(181,540)
Accum other comp (loss)/gain $(1,159,623) $(498,667)        
TOTAL LIABILITIES & EQUITY  $778,214,522  $752,433,622   NET INCOME
$5,366,320 $3,152,604

*PLL = Provision for Loan Loss


According to the provisions of the Title 8, Vermont Statutes Annotated, Chapter 221, Section 31306; the Supervisory Committee oversaw an extensive audit of the books and affairs of VSECU for the twelve months ending September 30, 2018; performed by Doeren Mayhew, CPAs and Advisors; an independent auditing firm from Miami, Florida.

The committee reviewed the audited financial statements and supporting footnotes to the financial statements and has presented the results of the audit to the board. The committee is satisfied that the work received from the audit firm is accurate and complete.

A copy of the opinion and financial statement audit report presented by Doeren Mayhew is available upon request.