Capital Credit Union 2020 Annual Report

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ANNUAL REPORT

A LETTER FROM OUR PRESIDENT AND CEO I am honored to bring you the 2020 Capital Credit Union Annual Report and want to start by saying thank you. Thank you for your membership and support of the credit union during a year of unprecedented challenges.

Generally, I prefer to learn from the past and move forward.

I would be remiss, though, if I did not recognize the challenges we and others faced during the COVID-19 pandemic. We were dealt a hand we'd never experienced before, but I’m proud to say the team at Capital Credit Union stepped up and delivered each and every day for one another and our membership.

In a challenging environment, we served our members by providing them a full range of financial services, delivering financial education to both youth and adults and offering financial counseling to those in need of such assistance.

We also remained heavily involved in our member communities by sponsoring events, donating to worthy causes, volunteering and providing scholarships to students.

Moving on to 2021, I am optimistic about the future of the credit union. There are many good things happening and I'm proud to be part of such a talented team. Thank you for trusting us to serve you. We’re grateful to all our members and are here for you now and in the future.

Sincerely,

Vance Reinbold President/CEO

Vance Reinbold has been with Capital Credit Union for 14 years and has been president and CEO since Nov. 2018.

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Board of Directors As a credit union, our board members are volunteers, not paid stockholders. This unique philosophy is what sets us apart from other financial institutions.

From top left: Faye Miller, Chairman Michael Gunsch, Vice Chairman Stephen Vaughan, Secretary Shawn Deisz, Treasurer Jay Buringrud Lance Gaebe Ken Geiger Kevin Schoenborn Marnie Walth

Our Mission

To be the trusted financial resource that puts members first.

Our Vision

To be the best choice for financial services in our markets.

Our Values Vision Integrity Caring Knowledge

2020 ANNUAL REPORT

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2020 ANNUAL REPORT

CAPITAL CREDIT UNION & SUBSIDIARY Consolidated Balance Sheet as of December 31, 2020 Assets Loans, net of allowance for loan losses and deferred fees Loans held-for-sale Cash and cash equivalents Investments Other assets Total Assets

$

397,889,164 9,388,894 42,656,763 146,162,543 29,977,476

$

626,074,840

$

547,111,233 5,480,258

Liabilities & Members’ Equity Liabilities Deposits Payables and accrued liabilities Total Liabilities

552,591,491

Members’ Equity

73,483,349

Total Liabilities & Members’ Equity

$

626,074,840

Consolidated Statement of Operations for the year ended December 31, 2020 Interest Income Dividends and Interest Expense

$

Net Interest Income

20,951,516 (2,994,633 ) 17,956,883

Provision for Loan Losses

(3,651,970 )

Net Interest Income After Provision for Loan Losses

14,304,913

Non-Interest Income

12,056,404

Net Interest and Non-Interest Income

26,361,317 (20,517,773 )

Non-Interest Expense Net Income

$

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5,843,544

2020 ANNUAL REPORT

Summary of 2020 Annual Meeting Minutes The 84th Annual Meeting of Capital Credit Union was held virtually via Zoom in Bismarck, North Dakota on April 17, 2020. Chairman Faye Miller called the meeting to order at 11:30 a.m. Secretary Stephen Vaughan declared a quorum with 96 members present.

A report was given by President Vance Reinbold.

Chairman Miller recognized Shawn Deisz, Marlina Walth and Ken Geiger for their years of service and dedication to the board.

Stephen Vaughan reported on the election process. A single slate of candidates was announced with the Annual Meeting notice. Shawn Deisz, Marlina Walth and Ken Geiger were re-elected to serve three-year terms on the board of directors.

Chairman Miller gave a brief history of the Howard J. Snortland Scholarship and brief introductions of the eight scholarship recipients.

Chairman Miller adjourned the 84th Annual Meeting at 11:54 a.m.

2020 ANNUAL REPORT

CONSUMER Real help from real people.

The friendly members of Capital Credit Union’s Financial Services Team assist members with loan applications, deposit account information, online tools and all the other products and services that Capital Credit Union offers.

$80,248,819

Gross Consumer Loans

1,611

New Checking Accounts

2,230

New and Used Vehicle Loans

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MORTGAGE Loans that help buy houses. And help shape lives.

Our Mortgage Department offers a wide range of mortgages designed to fit all lifestyles and budgets. Mortgage loan officers take the time to learn about each personal situation and then guide members to the loan that helps them comfortably achieve their homeownership dreams.

954

Families reached their homeownership dreams

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2020 ANNUAL REPORT

BUSINESS With the right financing, your future looks bright.

Capital Credit Union’s Business Department helps keep companies on the road to success in a highly competitive business world, offering loans to expand facilities, buy new machinery, purchase real estate, add inventory and more.

$115,922,317 Total Gross Loans

The Coronavirus Aid, Relief, and Economic Security Act helped small businesses keep workers employed amid the COVID-19 pandemic and economic downturn.

Known as the Paycheck Protection Program, the initiative provided 100% federally guaranteed loans to small businesses. Capital Credit Union helped businesses large and small with loans ranging from $829.00 up to $1.6 million.

217

Total Number of PPP Loans

$9,058,894

Total Amount of PPP Loans Tim and Sharon Ell with Brad Shetler, Bismarck Mandan Market President of Capital Credit Union.

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2020 ANNUAL REPORT

INVESTMENTS Planning for your future is easier than you think.

Investment climates and individual financial needs can change. So we encourage our members to revisit their financial goals periodically with a licensed investment professional. We are excited to have John Weis on our team, an investment representative registered through broker dealer and Registered Investment Adviser CUSO Financial Services, LP (CFS).

107

Members John helped plan for their future or prepare for retirement

Non-deposit investment products and services are offered through CUSO Financial Services, LP ("CUSO Financial") ("CFS") a registered broker-dealer (Member FINRA/SIPC) and SEC Registered Investment Advisor. Products offered through CUSO Financial: are not NCUA/ NCUSIF or otherwise federally insured, are not guarantees or obligations of the credit union, and may involve investment risk including possible loss of principal. Investment Representatives are registered through CUSO Financial. The Credit Union has contracted with CUSO Financial for investment services. Atria Wealth Solutions, Inc. ("Atria") is not a registered broker-dealer and/or Registered Investment Advisor. CUSO Financial is a subsidiary of Atria.

2020 ANNUAL REPORT

STEP FORWARD Yes, we lend money. But we also lend a helping hand.

Capital Credit Union strives to be involved in and significantly contribute to our member communities of Bismarck, Mandan, Fargo, New Salem, Hazen and Beulah, ND. Our Step Forward Program helps facilitate employee involvement by rewarding employees for their efforts and participation at designated community events.

The program allows employees at each branch the opportunity to take part in events that are beneficial to them and impact their area’s own members.

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Employee Volunteers

475

Hours Spent Volunteering

36

Events Across Six Communities

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2020 ANNUAL REPORT

DONATIONS We are proud to support charitable organizations in the communities where our members work and live. We strive to have our donations support organizations that closely represent our membership and brand promise to focus on financial literacy and education.

93

Organizations Supported Through Donations

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2020 ANNUAL REPORT

SECOND FARGO LOCATION “With this new branch, we are pleased to now have a presence on Veterans Blvd. This will strengthen our commitment to the area communities and reintroduce the Capital Credit Union brand and our products and services to residents and business owners.”

– Kevin Kragnes, Market President – East Region

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2020 ANNUAL REPORT

2020 HIGHLIGHTS In 2020, we remained dedicated to putting our members first. In an unexpected year we were a trusted partner, dedicated leader, supportive resource, passionate mentor and a difference maker.

Helped more than 30,000 members grow

Hosted 10 financial education seminars

Our staff includes five Certified Credit Union Financial Counselors who provide members assistance with debt management, credit score enhancement and budgeting

$1,000 Howard J. Snortland Scholarships awarded to eight students, and $1,000 Capital Credit Union AVID Scholar Awards given to two students

Our financial education programs reached more than 500 children and adults

Started instantly issuing debit and credit cards at eight branches

Implemented an online scheduling platform on our website which allows members to schedule appointments 24 hours a day, seven days a week

Expanded our Contact Center hours to 24 hours a day, seven days a week

Named ND’s Best Credit Union by

for the 2nd year in a row

Named Best Credit Union in the Bismarck Tribune’s Annual Best of the Best Named a Top 10 Employer for Young Professionals in Bismarck-Mandan by the Bismarck-Mandan Young Professionals Network 14

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