Fortifying Our Future — 2024 Annual Report from Elements Financial

A LETTER FROM OUR LEADERSHIP Dear Valued Members: On behalf of the Board of Directors and Executive Leadership Team at Elements Financial, we are proud to present our 2024 Annual Report — a reflection on a year marked by resilience, strategic adjustments, and an unwavering commitment to our members and employees.

Elements remains focused on our purpose: Empowering members to achieve financial success. This statement guides every decision we make and every product and service we offer. Whether in member-facing roles or behind the scenes, our team puts members first.

Throughout 2024 and into 2025, three strategic themes kept us focused on factors vital to our long-term strength and service: OPERATIONAL EXCELLENCE While we achieved only modest growth in key business areas, our primary objective was to improve our balance sheet while maintaining strong asset quality and low charge-offs relative to industry peers. We were successful in those pursuits. Our net income reached $13.8 million, reinforcing our solid financial foundation without sacrificing member value. (See Member Experience for details.)

ORGANIZATIONAL HEALTH Our culture remains rooted in social corporate responsibility. In 2024, we celebrated our 8th Annual Purpose Day, continuing our tradition of corporate volunteerism, and hosted the Elements Cares PitchFest, awarding $75,000 in philanthropic grants to nonprofit partners. In total, we contributed nearly $500,000 to the community through both grants and sponsorships. Scan the QR code on this page to read more about our grants program, one of the ways we further the credit union model’s mission of “people helping people.”

MEMBER EXPERIENCE At the heart of our work is a commitment to giving back to our members. Compared to our peer credit unions in Indiana, Elements provided more than $20 million in additional value to our members through better rates and fewer fees.* As we look ahead, we remain focused on building an even stronger and more innovative credit union to serve your evolving financial needs. We are grateful for your trust as we continue to invest in new ways to earn your loyal business and fortify the future of Elements!

With appreciation,

Mark Saltsgaver Chair of the Board

John Huesing President & Chief Executive Officer

*Additional member value is calculated by comparing Elements’ dividends to members, loan rates, and fees charged to the average value of Indiana’s 12 largest credit unions. This calculation is based on total fees charged to members, and differences in loan yields and deposit rates applied to Elements’ average balances.

THE ELEMENTS CARES GRANTS PROGRAM

Consolidated Statement of Financial Condition Selected Data in Millions

Assets

2024

2023

Cash and Investments

$592.9

$657.2

Loans to Members

1,651.4

1,609.5

Allowance for Loan Losses

(15.8)

(15.8)

Other Assets

73.4

68.1

Total Assets

$2,301.9

$2,319.0

Elements Financial is guided by an active board of directors comprised of the following.

Mark Saltsgaver Board Chair

Alice Morical Vice Chair

Liabilities and Members’ Equity Share Savings, Drafts, and Certificates

Board of Directors

$1,878.9

$1,866.2

Other Liabilities

243.3

295.1

Members’ Equity

179.7

157.7

Total Liabilities and Members’ Equity

$2,301.9

$2,319.0

Net Worth Ratio

10.36%

9.63%

Risk Based Capital Ratio

16.17%

16.00%

Donald Zakrowski Secretary

Harold Berfiend Jeremy Fitch Jody Roudebush Lindsay Konradi Robert Paz Kelly Wiggins-Payne

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”

Supervisory Committee

Consolidated Statement of Income Selected Data in Millions

2024

2023

Interest Income from Loans and Investments

$114.0

$95.3

Interest Expense on Member Accounts and Borrowed Funds

(60.3)

(48.4)

Loan Loss Provision

(3.6)

(2.6)

Net Interest Income

$50.1

$44.3

Other Income

21.7

22.6

Operating Expense

(54.9)

(53.5)

Non-Operating Income / (Expense)

(3.1)

0.9

Net Income

$13.8

$14.3

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.

The following committee members work with the Board of Directors and Executive Management to ensure member assets are safeguarded and financial reporting objectives are met. This is accomplished by overseeing the internal audit program and utilizing an external auditor to audit the financial statements.

Daryl Soughan Committee Chair

Michele Sawyer David Pugh Ben Clark Jeremy Lantz

225 South East Street, Suite 300 | Indianapolis, IN 46202 (800) 621-2105 | Get started at elements.org.

Federally Insured by NCUA