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11--Reese Jensen | Board TreasurerMESSAGE FROM THEBOARD TREASURER2024 saw a steadying in interest rates and a settling in economic inflation. Members continued to utilize the credit union as a source of funding to procure loans for their homes, consumer products, and businesses to advance their goals in life. Our total assets decreased 9.35% in 2024 to $303.9 million, a decrease of $31.3 million while our net worth finished at 6.67%.STATEMENT OF CONDITIONLoan demand remained strong throughout the year. Mortgage rates and low inventory continued to slow lending in that category. Automobile lending and business lending continued to be strong in 2024. Overall, loan balances declined 9.15%, or $21.5 million through actions taken to limit overall asset growth. Delinquency and charge-off rates increased during the year to levels more normal with pre-pandemic levels. The allowance for loan losses closed at $599,603.Shifts in deposit mix seen in 2023 continued during 2024, with funds being deployed in certificate accounts and other investments. Liquidity movements in the industry settled compared to 2023 leading to overall growth in deposits of 1.38%, or $3.6 million. Certificates grew 24.93%, or $15.4 million. Drafts and money market shares decreased 10.59% and 25.23%, or $9.8 million, and $3.4 million, respectively. Regular shares increased 2.15%, or $2.03 million.STATEMENT OF INCOME2024 realized a net loss of $1.14 million. Interest income increased $1.9 million (13.44%) from the prior year. Interest paid to members and on borrowings increased $1.1 million (24.71%). The increase is attributable to rate increases from 2023 and through part of 2024 on deposit products. Interest on borrowings decreased $478,800 (20.12%). Provision for loan losses increased $411,223 as delinquencies and charge-offs continued to be more normal with pre-pandemic levels. Non-interest income increased $340,500 (6.70%). Non-interest expenses grew $3,700 (0.02%) due to efforts to constrain and control costs.The challenges of 2023 and their impacts were still felt in 2024, but improvements were seen in cost containment and revenue generation. Loan portfolio repricing has continued to aid that effort. Liquidity challenges from 2023 settled and the credit union was able to bring the balance sheet more in line with current member demand for services. Liquidity concerns in the industry have stabilized, as seen by our deposit growth. Our greatest achievement comes in our ability to serve our members%u2019 needs as they arise. In 2024 we were able to continue to achieve that success, helping our members buy homes, autos, recreational vehicles, and fund their businesses. All of these enhance the lives of those in our communities and allow our members to achieve their goals. We are proud to have a positive impact on our communities and members%u2019 lives and look forward to continued success.