TRANSFORMATIONS
TRANSFORMATIONS 2021 Annual Report from Elements Financial
An example of our transformed space: The Cube Employee Lounge at Elements HQ
Dear Valued Members: During transformative times, Elements Financial continues to grow, make an impact on our community, and set an example of innovation within our industry. We are proud of this consistency. At the same time, we are continually seeking new ways to serve our members based on your changing needs.
TALENT MANAGEMENT & MEMBER EXPERIENCE
Ending 2021 with nearly 200 employees, we can identify many accomplishments on the inside of our business that fed our award-winning culture and led to career satisfaction and success in serving our members, as you will discover in the results throughout this report. Last year, we achieved: > 34 new hires and 21 internal promotions > Increased awareness, internal education, and sound hiring practices focused on Diversity, Equity, and Inclusion > An expanded Wellness Program with a focus on mental health; especially during the pandemic, it was imperative to help employees take care of themselves so they could care for our members facing their own challenges. > Elements ranked among the Best Places to Work in Indiana for the 11th time in our history and received numerous workplace wellness awards. Building on an outstanding employee experience, we can deliver on our member experience strategy that seeks consistency, personalization, and quality.
Wh itn
THE TRANSFORMATION PROJECT ey
e A nd
Harrell r s o n-
As Elements employees returned to the office in Summer 2021, after working in mostly remote positions during the pandemic, they came back to an all-new hybrid workspace including modern furnishings and artistic displays of culture and brand; areas with touchless amenities; enhanced health and safety features; and upgraded security and technology. The Elements Branch at the Lilly Technology Center also enjoyed a remodel in August.
CEO TRANSITION
In the latter half of 2021, the shift in our top leadership post began with the recruitment of a new CEO. We reflect proudly on our past and thank Lisa Schlehuber who has retired after spending 17 years at Elements. This annual report reflects her impact during her final full year of service to our credit union. Today, we also look eagerly ahead to a bright future and further transformations for your benefit! Many thanks for your trust in Elements, Mark Saltsgaver Chair of the Board
Whitney Anderson-Harrell President/CEO
BETTER RATES. FEWER FEES.
At the core of the Elements Experience is value through our industry's best products and services. We are known for higher deposit rates, lower loan rates, and fewer fees than our competitors. That value allows us to attract new members and partner organizations as we also expand on existing relationships.
We rank in the top 4% of credit unions nationally1 with more than $2 billion in assets and 100,000+ members. We grew memberships by 4,591, representing an annual increase of 3.96%.
OVERALL MANAGED GROWTH The credit union exceeded annual targets for Return on Average Assets at .96%, representing $19.5 million in Net Income while our Net Worth Ratio finished at 9.79%. These results reflect our efforts toward building long-term capital. While overall deposit growth remained flat for the year, growth in loans totaled $81.1 million with $909 million in loans funded to members. Net Loan Charge Offs came in especially low at .06% or $758,000.
LOAN & DEPOSIT GROWTH Mortgage is the largest driver of income for the credit union, and Elements is now the leader in purchase financing in the Indianapolis market as ranked by Mortgage Data Web.2 We have also been rated as a “Premier Partner” with Caliber Funding/NewRez, a loan partner for our secondary market loans. The mortgage program grew by $84.4 million or 13.3%. Auto Loans are another popular product, and we funded $168.5 million of them. Checking balances grew by $39.1 million, up 11.4%. Our High Interest Checking Account was continually recognized among the nation’s best checking products according to DepositAccounts.com.
BUSINESS BANKING GROWTH Commercial Loan balances increased 32.0% to $55 million while commercial deposit balances increased 43.0% to $32 million. Elements began offering Small Business Administration (SBA) financing for our members with the addition of a dedicated SBA Lender. 1) Based on Asset Size as of 12/31/21 2) Based on total dollar conventional mortgage volume closed from January-December 2021 in the Indianapolis metropolitan statistical area. Information based on mortgage recordings provided by Mortgage Data Web. Conventional mortgage is a non-government mortgage. Ranking is among banks and credit unions and excludes mortgage companies.
TRUSTED ADVICE. FRESH APPROACH. No matter what, our purpose is to empower members to achieve financial success.
We are here to support you by taking the time to understand your needs and unique circumstances. Then, we deliver advice through both traditional and modern methods featuring our own proprietary content.
Our credit union hosted 750+ Financial Wellness Events in 2021, both onsite and online. We produced 10 Elements Live programs on Facebook, with 2,596 views.
FINANCIAL EDUCATION We offer workshops tailored to our partners’ employees online, onsite, and in a hybrid format. Here’s a recap of our 2021:
67 workshop titles > 10 “Elements Live” programs on Facebook with 2,596 Total Views and 260 average views per program > 4 Quarterly Community Workshop Broadcasts, open to all partner organizations > Most Popular Broadcasts: “Mortgage Refinance Misconceptions” and “Thrifty Travel with Kara & Karmen” > 15 Quick Advice videos, covering topics such as credit and debit card features, homebuying, and long-term savings > Increased focus on fraud education, helping members avoid common threats
ADVICE HIGHLIGHTS 12,800+ Total Views
21
New Articles
“The best part of banking through Elements is the trust I have in this institution to help me, to educate me, and to keep me financially grounded.” - Erin J. | Elements Member
Most Popular Articles The Impact of Identity Theft Breaking Down Balance Transfers Control Your Cards
HIGH TECH. HUMAN TOUCH. Our online and mobile platforms allow members to easily access their finances 24/7 from any device. We believe in digital excellence paired with the personalized service for which credit unions are known.
Our Contact Center answered 125,795 calls, providing 24/7 access to our credit union. We welcomed new members from Indianapolis’ Newspaper Federal Credit Union.
ENHANCED SECURITY
We have enhanced monitoring on the Elements network and our cloud infrastructure to include automated investigations and remediations.
INCREASED PRODUCTIVITY
The Elements Mortgage Team moved to a new mortgage operating system. The successful implementation of Encompass has led to an average turn time on mortgages of 21 days, down by 5 days.
SPECIAL PROJECT
TALLYING UP OUR MEMBER
TOUCHPOINTS
12,233 Live Chats
165,727
Remote Mobile Deposits
125,795
Elements voluntarily assumed members and deposits from the Indianapolis’ Newspaper Federal Credit Union that closed in Spring 2021.
Calls via Contact Center
MEMBER SURVEYS
Customer Service Emails
As a member experience highlight, we created automated new member surveys that will generate feedback for continuous improvements.
DIGITAL BANKING ACCESS
17,054
> Reviewed and completed 3,205 online product applications > Processed 13,119 wire transfers > Launched real-time online banking alerts to improve member experience > Introduced several new educational guides within our digital banking platforms > Introduced the “Donate to Riley” option, leading to $8,000+ in giving
RESPECTED LOCALLY. ACCESSED GLOBALLY.
We partner with more than 150 organizations as an “at work” credit union. Employees within these partners enjoy our financial programs and our products & services as benefits. Headquartered in Indianapolis, member service is available 24 hours a day, 7 days a week to help you work through financial decisions, solve issues, and answer any questions you have.
We serve members in all 50 states and 50 countries, providing quick access around the globe. We added 11 new partners, opening membership to their employees and families.
NEW PARTNERS American Legion Auxiliary DAMAR Services, Inc. Thieneman Construction Greenwood Village South C&T Design and Equipment
GLOBAL ACCESS
We make your money accessible, wherever you are with: > 78,000+ ATMs globally and 2,000 in Indiana — all with no surcharges and many located within popular retailers > 5,500+ shared branches nationwide, 250 in Indiana
CREDIT & DEBIT CARDS
Urology of Indiana HealthNet, Inc. Indianapolis-Marion County Building Authority Purdue Polytechnic High School Calhoun Construction Services, Inc. INCOG BioPharma Services
Our members trust Elements to make their daily purchases possible. To meet the changing needs of our members, all newly issued debit cards include the “Tap to Pay” contactless feature. Total spending reached all-time highs: > $127.3 million in spend for credit cards > $364.6 million in spend for debit cards > $5.3 million in interchange income
To see a full listing of our partner organizations, visit elements.org/Partners
EMPOWERING OUR COMMUNITY
As a non-profit financial institution, we are in tune with the importance of giving back.
We provide contributions to worthy causes within our Three Pillars of Giving: Homelessness & Housing, Youth Development, and Healthy Lifestyles. We also match employee giving and encourage our staff to volunteer in the community by organizing group opportunities and providing paid time off to participate.
We provided employees with 1,600 hours of Volunteer Paid Time Off, to use with non-profits they love. We hosted our Fifth Annual Purpose Day, giving all 200 employees the day off to serve.
Elements provides more than half a million dollars in donations and corporate sponsorships to our community partners, including the following: Anna’s Celebration of Life Aspire Economic Development & Chamber Alliance BOSMA BUTTER Art Festival Butler University Central Indiana Community Foundation DAMAR Foundation DREAM Alive, Inc. FACE Groundwork Indy Hamilton County Leadership Academy Indiana Chamber of Commerce Indiana Sports Corp.
Indiana Wellness Council Indianapolis Youth Leadership Academy Indians Charities Indy Chamber Leukemia & Lymphoma Society Little Red Door Cancer Agency NeighborLink OneZone Chamber of Commerce A Place for Paws Prevail, Inc. Resources for Hope Riley Children’s Foundation School on Wheels trueU United Way of Central Indiana
CLUB Our community involvement includes our exclusive partnership as the Official Credit Union of the Indianapolis Indians and the corporate sponsor of the Elements Financial Club at Victory Field, a luxury baseball experience behind home plate with inclusive food and beverages, air conditioning, and the best views of the Indianapolis skyline!
Learn more about our partnership with the Indianapolis Indians at elements.org/Indians
FINANCIAL STATEMENTS Consolidated Statement of Financial Condition
Selected Data in Millions u( naudited)
Assets
2021
2020
Total Assets
$2,073.8
$2,025.1
$2,073.8
$2,025.1
Liabilities and Members’ Equity
Total Liabilities and Members’ Equity Net Worth Ratio
9.79%
8.58%
In management’s opinion, the selected financial data presented herein is free of material error and accurately reflects the financial position and/or results of operations of Elements Financial for the periods presented. Members may request a complete copy of our audited financial statements by calling 8( 00) 621-2105. A credit union must have a Net Worth to Assets ratio of at least 7.00% to be considered “Well Capitalized” by the National Credit Union Administration N( CUA).
BOARD OF DIRECTORS Mark Saltsgaver Chair
Julie Dunlap Vice Chair
Donald Zakrowski
Consolidated Statement of Income
Secretary
Selected Data in Millions u( naudited)
Interest Income from Loans and Investments
2021
2020
.$53 9
.7$5 4
John Huesing Treasurer
Interest Expense on Member Accounts and Borrowed Funds
1( 1.4)
1( .9 0)
Loan Loss Provision
0( .8)
.3( 1)
Net Interest Income
14 .7
.53 3
Other Income
22.6
22.8
Operating Expense
.94( )4
4.6( )6
Non-Operating Income Net Income Return on Average Assets
4.6
.7 9
$19.5
$19.4
0.96%
1.01%
Mark Andersen Jeremy Fitch Michael Johnson Alice Morical Jody Roudebush
SUPERVISORY COMMITTEE Beth Goines
Committee Chair and Secretary
Erin Burkhart Ben Clark Luke Frient Daryl Soughan
LIKE A BANK, ONLY BETTER. 225 South East Street; Suite 300 | Indianapolis, IN 46202 (800) 621-2105 | Get started at elements.org
Federally Insured by NCUA