Going Forward — 2022 Annual Report from Elements Financial

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GROWING FORWARD

2022 Annual Report from Elements Financial

A Letter from Our Leadership

Since 1930, our credit union has met the financial needs of our members. Already in 2023, we’ve experienced a changing economic environment which has impacted everyone. As we look back on 2022, we are here to reaffirm our commitment to financial wellness education, our solid financial position, and our signature service.

We continue to focus on and perform strongly in these areas:

• Financial Wellness. Elements proudly serves more than 100,000 members and oversees $2.2 billion in assets that they’ve entrusted to us. Our purpose is to empower them to achieve financial success

• Safety & Soundness. We maintain capital levels significantly beyond the requirements for a well-capitalized rating from our regulators. Elements also maintains a focus on managing risk. With diversified deposits, Elements maintains robust cash reserves, borrowing capacity, and investments.

• A Time-Tested History of Service. Since our founding in 1930 during the Great Depression, our business has been built with a responsible approach, focusing on the core elements of financial services. We have sustained success through a variety of economic and interest rate environments, and we look forward to serving our members long into the future.

Important to our mission-driven work, we believe in our communities and partner with a range of organizations that serve our neighbors in need. We also advocate through both state and national organizations to ensure your credit union benefits are supported through legislation.

Together with members and the community, Elements grows forward!

Thank you for your loyal business,

MarkSaltsgver WhitneyAnderson

• Broad growth in lending was driven largely by Commercial, Auto, and Mortgage.

• Success in deposits came from certificates growing by 67%; High Interest Checking adding 2,900+ new accounts; and the Helium Savings Account adding balances above $70 million.

Employer Partners Potential Members

FINANCIAL WELLNESS NEW RELATIONSHIPS FINANCIAL GROWTH LOANS DEPOSITS $1,307,686,971 $1,567,203,850 $259,516,879 19.85% $1,824,974,505 $93,854,547 5.42% $1,731,119,958 2021 2022 Growth % Growth The Villages of Indiana | Networks Connect | Genesys Cloud Services FusionSoft, LLC | Village of Merici | Indiana Hemophilia & Thrombosis Center Westminster Village North | EmployIndy | Casted, Inc. 800 Workshops Participants 6,000
4,200
9

PAYMENTS, DIGITAL & TECH

• Applied necessary security patches, replaced firewalls, and migrated servers to fully protect member information

• Ongoing phishing and fraud awareness to inform both members and employees

LENDING UPDATES

DEBIT & CREDIT CARDS

make

COMMERCIAL LENDING

This area of the credit union grew in multiple ways, including expansion of the team itself, while maintaining 0% delinquency and charge-offs.

135,969 20,568 Contact Center Calls Member Service Emails MEMBER EXPERIENCE
TOTAL LOGINS
MORTGAGE
TRANSACTIONS* PROCESSED (#)
As the #1 credit union and #2 financial institution* in the Indianapolis market for conventional purchase transactions, the Elements Mortgage Program continued to be popular. TRANSACTIONS* PROCESSED ($) 8,423,187 28% 1,169,149 31% 2022 % Growth $1,973,488,324 28% 78,354 31% ZELLE® P2P PAYMENTS
Thank you for trusting Elements to
in Total Spending
Overall Net Promoter Score
Home
in Commercial Loan Balances *Includes Funds Transfer, External Transfer, Remote Deposit, ACH Payments
Total Transactions
in Commercial Deposit
*Source: Mortgage Data Web/January-November 2022
your purchases possible.
$509,000,000
9.6/10
Equity Lines of Credit Funded 1,217
$120,000,000
9,000,000
Balances $43,000,000

22.5% YOY INCREASE IN BRANCH TRANSACTIONS

Across every branch at Lilly Corporate Center, Lilly Technology Center, the Indiana Government Center, and the Indiana Farm Bureau Building, we served more members in-person.

450 APPOINTMENTS SCHEDULED ONLINE

A new online scheduling system led to a significant increase in member interactions within our branches and other areas of the credit union.

628 HSA INVESTMENT ACCOUNTS CONVERTED

A new DriveWealth platform provided new funds management options to members. Benefits include self-directed investing; a curated funds list; or an account managed by a brokerage.

5 DAYS SHAVED FROM MORTGAGE APP PROCESS

The transition to a new system called Encompass for first mortgage loans improved loan funding and accounting efficiencies; made relevant data more accessible; and eliminated manual processes such as updating spreadsheets.

13,200 9,514

8,441

462,000 12,793

Live Chats Online Deposit Apps Mail Deposits /Payments Bill Payments Wire Transfers

ELEMENTS CARES COMMUNITY IMPACT

Committed to our community, Elements gives of our time, talent, and/or treasure to a range of partners that include the following:

1,200

DREAM Alive | Firefly Children and Family Alliance | Indianapolis Indians Charities

Indy Black Professionals | Little Red Door | NeighborLink | Outreach, Inc.

Providence Cristo Rey High School | Sea Scope | TeenWorks | United Way of Central Indiana

4,910 Employee Lessons Completed Online

hours of volunteer time donated by our employees on the 6th Annual Purpose Day, our event dedicated to giving back to the community

HR & TALENT MANAGEMENT

31 Employee Training Events

489 Employee Attendees at Training Events (In-Person and Virtual)

• Wellness Awards included the Indiana Wellness Council – AchieveWELL 5 Star Designation (3rd year); Healthiest Employer – 4th in the State; and American Heart Association’s Gold Recognition for a Culture of Health and Well-Being

• 99% of employees have logged into our Wellness Portal with 71% logging points.

• A variety of activities and events offered including: Wellness Weeks, March Madness Step Contest, Heart Walk, and Flu Shot Fall Challenge

• Presenting sponsor for trueU’s Day of Belonging with two employee representatives serving on trueU’s DEIB Advisory Committee

• Created a DEIB guide for hiring teams and added DEIB-focused questions and language into the interview process

• Continued the Leadership Lab internal professional development program, which includes the well-known Dale Carnegie interpersonal communications course

• Sent 134 employee attendees to 41 trueU events, including a Women’s Conference and leadership programs; employees also used the trueU portal for self-guided, on-demand learning sessions at a high frequency.

Art Mix | Brightlane Learning | Central Indiana Police Foundation

Consolidated Statement of Financial Condition

Selected Data in Millions Assets 2022 2021 Cash and Investments $661.9 $707.7 Loans to Members 1,567.2 1,307.7 Allowance for Loan Losses (12.8) (11.5) Other Assets 73.3 69.9 Total Assets $2,289.6 $2,073.8 Liabilities and Members’ Equity Share Savings, Drafts, and Certificates $1,825.0 $1,731.1 Other Liabilities 332.7 141.0 Members’ Equity 131.9 201.6 Total Liabilities and Members’ Equity $2,289.6 $2,073.8
Selected Data in Millions 2022 2021 Interest Income from Loans and Investments $67.1 $53.9 Interest Expense on Member Accounts and Borrowed Funds (20.0) (11.4) Loan Loss Provision (2.1) (0.8) Net Interest Income 45.0 41.7 Other Income 18.9 22.6 Operating Expense (49.2) (49.4) Non-Operating Income / (Expense) (4.5) 4.6 Net Income $10.2 $19.5 Board of Directors Julie Dunlap Vice Chair Donald Zakrowski Secretary John Huesing Treasurer Mark Andersen Jeremy Fitch Alice Morical Jody Roudebush 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 (800) 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 (NCUA). Supervisory Committee Beth Goines Committee Chair Ben Clark David Pugh Michele Sawyer Daryl Soughan Kelly Wiggins-Payne Mark Saltsgaver Chair Net Worth Ratio 9.32% 9.79% Risk Based Capital 15.43% NCUA Net Worth Ratio of 7% or above is considered “Well Capitalized” and NCUA Risk Based Capital of 10% or above is considered “Well Capitalized”
Consolidated Statement of Income
225 South East Street, Suite 300 | Indianapolis, IN 46202 (800) 621-2105 | Get started at elements.org LIKE A BANK, ONLY BETTER. Federally Insured by NCUA
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