Capital Credit Union 2022 Annual Report

2022

ANNUAL REPORT

Grow With Us

A MESSAGE FROM OUR PRESIDENT AND CEO I am proud to bring you the 2022 Capital Credit Union Annual Report and want to begin by thanking you for your membership and support of Capital Credit Union.

Guided by our values of vision, integrity, caring and knowledge, in 2022, our team worked together to deliver the products, services and education needed to assist our members in achieving their goals and empowering their success. We were also proud to contribute to the communities where our members work and live and did so by volunteering, sponsoring events, donating to worthy causes, and providing student scholarships in each of our six communities.

Despite the challenges presented by inflation and a rapidly rising interest rate environment, our team stepped up and delivered a successful year in business, agriculture and consumer lending, first mortgage loans, and new member growth. Our back-office teams did an outstanding job supporting each other and our members, adding new technology, improving processes and streamlining work.

In 2023, we will build on our strong foundation, history, and reputation, and continue the relentless pursuit of exceptional member service. I have no doubt our team will continue to work together to accomplish our financial and strategic goals. Thank you for your membership; we look forward to serving you in 2023.

Sincerely,

Vance Reinbold President/CEO

Vance Reinbold has been with Capital Credit Union for 16 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 Shawn Deisz, Secretary Kevin Schoenborn, Treasurer Jay Buringrud Lance Gaebe Ken Geiger 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

2022 ANNUAL REPORT

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2022 ANNUAL REPORT

CAPITAL CREDIT UNION & SUBSIDIARY Consolidated Balance Sheet as of December 31, 2022 Assets Loans, net of allowance for loan losses and deferred fees

$

545,231,617

Loans held-for-sale

1,678,376

Cash and cash equivalents

25,177,216

Investments

107,071,178

Other assets

44,992,883

Total Assets

$

724,151,270

$

613,914,717

Liabilities & Members’ Equity Liabilities Deposits Payables and accrued liabilities

29,271,082

Total Liabilities

643,185,799

Members’ Equity

80,965,471

Total Liabilities & Members’ Equity

$

724,151,270

$

25,219,460

Consolidated Statement of Operations for the year ended December 31, 2022 Interest Income Dividends and Interest Expense

(1,597,345 )

Net Interest Income

23,622,115

Provision for Loan Losses

(2,160,507 )

Net Interest Income After Provision for Loan Losses

21,461,608

Non-Interest Income

7,655,018

Net Interest and Non-Interest Income

29,116,626

Non-Interest Expense

(22,121,561 )

Net Income

$

5

6,995,065

2022 ANNUAL REPORT

Summary of 2022 Annual Meeting Minutes The 86th Annual Meeting of Capital Credit Union was held virtually via Zoom in Bismarck, North Dakota on March 16, 2022.

Chairman Faye Miller called the meeting to order at 11:30 a.m. Acting Secretary Ken Geiger declared a quorum with 102 members present.

Chairman Miller declared the minutes from the 85th Annual Meeting held on March 17, 2021, approved as displayed.

A report was given by President Vance Reinbold.

Chairman Miller recognized Jay Buringrud, Lance Gaebe and Stephen Vaughan for their years of service and dedication to the board.

Nominating Committee Representative Ken Geiger reported on the election process. A single slate of candidates was announced with the Annual Meeting notice. Jay Buringrud and Lance Gaebe 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 86th Annual Meeting at 11:50 a.m.

2022 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.

$86,300,401

Gross Consumer Loans

1,722

New Checking Accounts

1,816

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 guide members to the loan that helps them comfortably achieve their homeownership dreams.

343

Families reached their homeownership dreams

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2022 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.

$175,017,781 Total Gross Loans

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2022 ANNUAL REPORT

INVESTMENTS Planning for your future is easier than you think.

Investment climates and individual financial needs change, so we encourage our members to periodically revisit their financial goals with an investment professional. That’s why we’re glad to have John Weis on our team. John is registered through broker dealer and Registered Investment Adviser CUSO Financial Services, LP (CFS).

175

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.

2022 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.

63

Employee Volunteers

722

Hours Spent Volunteering

83

Events Across Six Communities

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2022 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.

97

Organizations Supported Through Donations

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2022 ANNUAL REPORT

BRANCH UPDATES Bismarck Main Office Remodel At our Main Office in Bismarck, we began a remodel which includes a reconfiguration of the main floor and updated flooring and paint for the remainder of the building

Fargo Veterans Blvd 2nd Floor Remodel In Fargo, we completed the remodel of the 2nd floor space, which currently houses our Mortgage Department

Hazen Branch Expansion In Hazen, we added 864-square-feet which includes four new offices and updated the interior, including new flooring and paint

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2022 ANNUAL REPORT

2022 HIGHLIGHTS In 2022, we remained dedicated to putting our members first. We were a trusted partner, dedicated leader, supportive resource, passionate mentor and a difference maker.

Helped more than 30,000 members grow

Launched an Edge Teen Checking Account, which features perks that cater to members ages 13-17

Our staff includes eight 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 awarded to two students

Our financial education programs reached more than 570 children and adults

Expanded our Cash Management services for business members, including Merchant Capture and ACH electronic funds transfer

Introduced a brand-new Thrive Savings Account which features a savings rate more than 7 times the national average1

Purchased and began operation of Al & Curt Hektner Insurance, an independent insurance agency in Fargo

Named Best Credit Union in the Bismarck Tribune’s Annual Best of the Best Named a Favorite Financial/Investment Agency 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

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The national average interest rate for savings accounts is 0.23%, according to Bankrate’s March 1, 2023 weekly survey of institutions.

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