Historic Overview prepared for Whitney Anderson-Harrell presented by Ron Senci
Overview Areas of Responsibility Deposit and Loan Product Management Lending Risk Mortgage Lending – Sales, Underwriting, Processing, Closing Consumer Lending – Sales, Underwriting, Processing, Funding Indirect Lending – Sales, Underwriting, Processing, Funding Commercial Lending – Sales, Underwriting, Administration, Servicing Credit Card – Underwriting, Sales Consumer Lending Inbound Call Center Business Development (SEGs) Branches Private Client Marketing Asset Recovery
100
Total Employees
Ron Senci EVP Lending & Sales
42
Total Employees
Julie Bowering Director of Mortgage Lending
30
Total Employees
6
Total Employees
Michelle Payne VP Marketing
3
Total Employees
1
Total Employees
Total Employees
Total Employees
Total Employees
Total Employees
Deanna Hartman AVP Commercial Credit Manager
David Bedwell Director of Commercial Lending
6
5
Ashlie Dew AVP Private Client Services
Todd Shickel VP Business Development
4
3
Andee Kettlebar VP Sales
Jacob Van Velse Asset Recovery Manager
Doug Jeffs AVP Consumer Lending
Overview — 2
Loans Overview Portfolio
Growth
Dollars $1.31B Accounts 49,796
Dollars Accounts
s $81.2MM or 6.6% t 157
Core Products Mortgage Auto Commercial Credit Cards Student Loans Home Equities
2022 Outlook
Loan growth is anticipated to accelerate through the year driven by increases in Direct/Indirect Auto and Commercial Lending. Mortgage demand will decrease due to higher rates and record low housing inventory levels. Home Equity Lending demand should increase as more consumers take advantage of growing property values.
Outstanding $MM 1,117
1,168
1,224
1,260
1,227
Volume $MM
1,307
913
2020
2021
744
961
673
800 624
924
604
553
671
659
484
439 325
2012
2013
2014
2015
2016
2017
2018
1.04
0.68
2019
2020
2021
2012
2013
2014
2015
2016
2017
2018
2019
Charge-Offs % Delinquency %
0.96
0.65 0.54
0.29
2012
2013
0.10
0.08 0.12
2014
2015
0.18 0.12
0.11
2016
2017
0.27 0.18
2018
0.18 0.16
2019
0.10 0.12
0.06 0.04
2020
2021
Loans Overview — 3
Loans Overview Concentration by State Top 3 States 66.96%
3.70%
3.36%
n 5% and Greater n 2%-4.99% n 1%-1.99% n 0.01%-0.99% n 0%
Demographics Average Age Average Tenure
Average FICO Loan Balance/Member
52 14 years
736 $13,547
% Member Penetration
47.5
Loans Overview Demographics — 4
Mortgage 2021 Originations Sales Revenue Sales Spread Days to Close
$480.5MM $6.2MM 3.2% 27
Portfolio
Growth
Dollars $721.6B Accounts 2,788
Dollars Accounts
s $84.4MM or 13.3% t 133 or 4.6%
Market Share (Indianapolis MSA) 2021 2013
2022 Outlook
Elements established an outside MLO program in 2014 and now is the leader in purchase financing in Indianapolis. Refinances have slowed significantly with the rise in interest rates. Record low housing inventories will result in lower originations and gain on sale income for the year. Mortgage is the largest driver of income for the credit union.
494 408 189 282
290
2021 Income Statement Revenue Contribution Margin
524
566
637
607
2013
9.6
Sales Revenue $MM
722 481
350
6.2
273
207
203
233
4.3
150
68
2012
$29.1MM $18.9MM
582
Originations $MM Portfolio $MM
343
#7 Overall #2 Bank or Credit Union #23 Overall
2014
2015
2016
2017
2018 0.04
2019
2020
2021
0.6
0.4
0.9
2012
2013
2014
1.5
1.7
2015
2016
2.1
2.3
2017
2018
2019
2020
2021
0.04
Charge-Offs % Delinquency %
0.26 0.03 0.21
0.11
0.11 0.01
0.01 0.06
0.07 0.02
2012
2013
2014
0.03 0
2015
2016
0
2017
0
2018
2019
0.01 0
2020
0.01 0
2021
Mortgage Overview — 5
Mortgage Concentration by State Top 3 States 81.70%
1.87%
1.58% n 5% and Greater n 2%-4.99% n 1%-1.99% n 0.01%-0.99% n 0%
Demographics Average Age Average Tenure
Average FICO Loan Balance/Member
45 10 years
% of Total Loans
55.1
% Member Penetration
2.8
764 $258,837
% of Lending Income
53.3 Mortgage Demographics — 6
Mortgage Staff
42
Total Employees
Growth Since 2013
18
Total Employees
Dawn Bruce VP Mortgage Operations
4 – Underwriting 8 – Processing 4 – Closing 1 – Case Opener
+1 +2 +2 +1
7
5 – Outside MLOs 1 – Intern
+7
Total Employees
Karla Chevrie Mortgage Sales Manager
6
Chris Kerr Mortgage Sales Manager
5 – Outside MLOs
+6
4
Beverly Marshall Patterson Lead Loan Originator
2 – Inside MLOs 1 – Assistant
+1
4
Jamie Bonner AVP Lending Risk Manager
3 – Secondary Market/ Risk Specialists
+2
2
Home Equity
2 – Home Equity Processors
+0
Julie Bowering Director of Mortgage Lending
Total Employees
Total Employees
Total Employees
Total Employees
Mortgage Staff — 7
Auto 2021 Originations Growth
$168.5MM s $34.9MM
Portfolio
Growth
Dollars $319.8MM Accounts 18,673
Dollars Accounts
t $9.6MM or 2.9% t 1,942 or 9.4%
2021 Income Statement Revenue Contribution Margin
$8.2MM Indirect $6.4MM Indirect
2022 Outlook
Elements entered indirect lending in 2013 with one dealer and one aggregator. Today we partner with 6 dealer groups and 5 aggregators. In April 2020 Elements intentionally curtailed indirect auto volumes by 80% to reduce lending risk as unemployment reached double digits. We began rebuilding the volume on 2021 and are anticipating strong growth for 2022.
Indirect Outstandings $MM Direct Outstandings $MM
297
310
Indirect Volume $MM Direct Volume $MM
306
274
266
162 144
252
139
145
130 125
208
106
105
119 39
37 80
2012
74
65
62
66
67
68
68
64
67
36
38
2013
2014
2015
2016
2017
2018
2019
2020
2021
2012
2013
0.17
0.23
0.20
0.16 0.15
28
2014
2015
34
32
33
31
28
2016
2017
2018
2019
2020
38
2021
1.31
Charge-Offs % Indirect Delinquency % Delinquency % Direct Delinquency % 0.04
29
0.18
0.81
0.17 0.20 0.05 0.14 0.52 0.18 0.15 0.13 0.11
0.27 0.21
0.97
0.89
0.850.21 0.72 0.11 0.15 0.120.15 0.13 0.12
0.14 0.14
0.09
0.14
0.09 0.04
0.07
0
0.03
0
0.02
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Auto Loans Overview — 8
Auto Concentration by State Top 3 States 29.04%
8.88%
7.76%
n 5% and Greater n 2%-4.99% n 1%-1.99% n 0.01%-0.99% n 0%
Demographics Average Age Average Tenure
Average FICO Loan Balance/Member
47 4 years
% of Total Loans
24.5
% Member Penetration
19.1
755 Direct // 728 Indirect $17,128
% of Lending Income
17.9 Auto Loans Demographics — 9
Auto Staff
1
Consumer Lending
2
1
1 – Underwriter
0
Indirect Lending
2 – Underwriters
+1
Student Lending
1 – Sales/Admin
-2
Total Employees
5
Total Employees
Growth Since 2013
Doug Jeffs AVP Consumer Credit Manager
Total Employees
Total Employees
Staff
4
Growth Since 2013
Inbound Loan Call Center
4 – Loan Specialists
-2
Loan Funders
1 – Consumer Loan Funder 2.5 – I ndirect Loan Funders
+1
Total Employees
8.5
Total Employees
Andee Kettlebar VP Sales
3.5
Total Employees
Auto Loans Staff — 10
Home Equity 2021 Originations Growth
$95.9MM s $20.3MM
Portfolio
Growth
Dollars $120.8MM Accounts 4,146
Dollars Accounts
t $0.5MM or 0.4% t 82 or 1.9%
2021 Income Statement Revenue Contribution Margin
$4.7MM $3.6MM est.
2022 Outlook
Elements’ .99% 6 month rate promotion continues to drive HELOC volume setting the stage for record originations in 2022 further helped by double digit year-over-year growth in home values. Equity loans are positioned to resume growth as mortgage refinances slow.
Outstanding $MM 138
136
142
Volume $MM 145
146
147
140
93
135 121
96
98
96
83
121
76 70 60
2012
2013
2014
2015
2016
2017
2018
2019
2020
0.29
Charge-Offs % Delinquency %
2021
53
52
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
0.09
0.07 0.06
0.12
0.11 0.03 0.06
0.02
2012
2013
0.01 0
2014
2015
2016
0.02
0.02
0.01
0.01
2017
2018
0
2019
0 0
2020
0 0
2021
Home Equity Overview — 11
Home Equity Concentration by State Top 3 States 76.04%
2.32%
2.76% n 5% and Greater n 2%-4.99% n 1%-1.99% n 0.01%-0.99% n 0%
Demographics Average Age Average Tenure
Average FICO Loan Balance/Member
57 19 years
% of Total Loans
9.2
771 $29,131
% Member Penetration
4.2
Home Equity Organization Chart included in Mortgage Home Equity Demographics — 12
Credit Card 2021 Originations Growth
$127.33MM s $21.2MM
Portfolio
Growth
Dollars $24.4MM Accounts 12,729
Dollars Accounts
s $0.9MM or 3.8% s 467 or 3.8%
2021 Income Statement Revenue Contribution Margin
$4.0MM $1.4MM
2022 Outlook
Elements purchased its card portfolio from MBNA in 2012. The credit union’s portfolio is dominated by “Transactors” and is at the top of Visa’s universe in average ticket and total spend driving interchange to record levels last year. This growth is expected to continue throughout 2022 as spending continues to recover.
Outstanding $MM 22
23
26
26
27
26
Interchange $MM
27
24
24 21
2.3 2.0
2012
2013
2014
2015
2016
2017
2018
2019
2.45 0.38
2020
2021
1.6
1.6
2012
2013
1.7
1.6
1.5
2014
2015
2016
1.8
1.8
2017
2018
2019
1.9
2020
2021
Charge-Offs % Delinquency % 0.27 1.31 0.19
0.18 0.81 0.14
0.7
2012
0.1
0.53
0.52
2013
2014
2015
0.85
0.97
0.09
2016
2017
2018
0.89 0.12
2019
0.72
0
0
2020
2021
Credit Card Overview — 13
Credit Card Concentration by State Top 3 States 81.49%
3.71%
2.08% n 5% and Greater n 2%-4.99% n 1%-1.99% n 0.01%-0.99% n 0%
Demographics Average Age Average Tenure
Average FICO Loan Balance/Member
52 17 years
% of Total Loans
1.9
% Member Penetration
13.7
747 $2,809 current
% of Lending Income
4.0 Credit Card Demographics — 14
Credit Card
Ron Senci EVP Lending & Sales Sales, design, pricing, marketing
Staff
Tim Greene VP Innovation & Alignment
4
Total Employees
Ryan O’Connor AVP Payments, Cards & Experience
3 – Credit Card Administrators
Growth Since 2013
+2
Functionality, maintenance, issuance, security, member service.
Credit Card Staff — 15
Commercial 2021 Originations Growth
$37.5MM s $16.5MM
Portfolio
Growth
Dollars $53.5MM Accounts 106
Dollars Accounts
s $13.3MM or 33.1% t 2 or 1.9%
2021 Income Statement Revenue Contribution Margin
$2.5MM $1.4MM
2022 Outlook
Elements established the Commercial Lending group in 2016. After building out the systems, controls and products we began originating loans in 2018. The group is positioned for strong growth with the recent addition of a new seasoned commercial lender and new SBA lender.
Outstanding $MM
38
Volume $MM
54
40
23 31
21
18 19
7 0
2
5
2015
2016
2017
2018
2019
2020
2021
0 0
0 0
2016
3
2015
2016
2017
2018
2019
2020
2021
0.59
Charge-Offs % Delinquency %
2015
0
1.63
0 0
2017
0 0
2018
0
2019
0
2020
0 0
2021
Commercial Overview — 16
Commercial Concentration by State Top 3 States 83.57%
4.47%
2.14% n 5% and Greater n 2%-4.99% n 1%-1.99% n 0.01%-0.99% n 0%
Demographics Average Age Average Tenure
Average FICO Average Loan Balance
44 3 years
% of Total Loans
4.2
% Member Penetration
0.1
N/A $508,403 current
% of Lending Income
3.2 Commercial Demographics — 17
Commercial Staff
3
Total Employees
David Bedwell Director of Commercial Lending
2
Sales
1 – Commercial Lender 1 – SBA Lender
2
Underwriting
2 – Commercial Credit Analysts
Total Employees
Total Employees
4
Total Employees
Deanna Hartman AVP Commercial Credit Manager
Growth Since 2013
+3
+4
1
Total Employees
Administration
1 – Commercial Lending Specialist
Commercial Staff — 18
Private Student 2021 Highlights Originations Growth
$2.8MM t $0.2MM or 6.6%
Portfolio
Growth
Dollars $48.7MM Accounts 1,416
Dollars Accounts
t $6.9MM or 12.4% t 75 or 5.0%
2021 Income Statement Revenue Contribution Margin
$1.6MM $0.6MM* *Includes approximately $960,000 of accelerated deferred expenses.
2022 Outlook
Elements entered the student lending business in 2008 with an investment in CU Student Choice of which we maintain a 5.3% ownership interest. In March 2018 our reinsurance provider ReliaMax was declared insolvent. As a result, Elements exited a program geared to international graduate students which resulted in declines in the portfolio. Recent program enhancements as well as the upcoming May expiration of the government’s student loan blanket deferments should allow for stabilization of the outstandings and growth in 2023.
Outstanding $MM
60
63
69
66
13
63 56
50
Volume $MM
12
12
10
49
10
9
41
8
7
30
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2012
Charge-Offs % Delinquency %
2.07
1.58
0.83
0
2012
0.45
2013
1.04
2014
2015
2016
2017
2018
2019
3
3
2020
2021
1.13 1.94
0.77 0.56
1.05 0.45
0.49 1.00
0.36
0.75
0.61
0.17
0.40
0.13
2013
2014
2015
2016
2017
2018
2019
2020
2021
*All reporting excludes ITT.
Private Student Overview — 19
Private Student Concentration by State Top 3 States 47.66%
8.80%
7.61% n 5% and Greater n 2%-4.99% n 1%-1.99% n 0.01%-0.99% n 0%
Demographics Average Age Average Tenure
Average FICO Loan Balance/Member Balances in Repayment
32 6 years
% of Total Loans
3.7
% Member Penetration
1.4
755 $31,976 current 82%
% of Lending Income
1.7 Private Student Organization Chart included in Auto Private Student Demographics — 20
Asset Recovery
2021 Stats Repossessions Foreclosures Bankruptcies
62 0 88
2022 Outlook
Delinquencies and charge-offs are expected to increase with the end of federal stimulus and as inflation erodes member earnings with the full impact not materializing until 2023-24. Minimal future pandemic impact is anticipated as the team successfully worked with members ultimately deferring payments on over $80MM in loans. Elements currently has no COVID related forbearances.
Bankruptcies
Repossessions 207
204
129
130
126
98
206 82
175 121
113
127
142
139
62
54 88
36 27 14
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
Delinquent Accounts 2,143
2,099 1,898
1,600 1,419
1,382
2020
2021
1,169 939
815 522
2012
2013
2014
2015
2016
2017
2018
2019
Asset Recovery Overview — 21
Asset Recovery Staff
4
Collections
4 – Loan Adjustment Specialists
+1
1
Wellness Counseling
1 – Member Solutions Manager
0
Total Employees
6
Total Employees
Growth Since 2013
Jacob Van Velse Asset Recovery Manager
Total Employees
Asset Recovery Staff — 22
Deposits Overview Portfolio
Growth
Dollars $1.7B Accounts 190,815
Dollars Accounts
t $.3MM or 0% s 5,039 or 2.7%
Core Products High Interest Checking Helium Savings CD Specials
2022 Outlook
Deposit growth is anticipated to increase as the Federal Reserve begins raising rates in the coming months. Elements will begin to again grow Certificate balances and focus on retaining Savings deposits as members migrate back into Certificates. As member spending accelerates deposit growth pressures will drive up rates.
Deposit Balance by Product
Certificate
Savings
Checking 304 230
189
270 692
285 737
140
152
167
534
555
542
200
192
214
250
267
236
259
2012
2013
2014
2015
2016
2017
2018
550
601
377
418
1,136
1,177
220
138
2020
2021
782
307
2019
Deposits Overview — 23
Deposits Overview Concentration by State Top 3 States 74.23%
4.25%
2.70% n 5% and Greater n 2%-4.99% n 1%-1.99% n 0.01%-0.99% n 0%
Demographics Average Age Average Tenure
Deposit Balance/Member
46 11 years
$17,674
% Member Penetration
52.1
Deposits Overview Demographics — 24
Checking Totals Dollars Accounts
$417.6MM 37,913
Growth Dollars Accounts
s $39.1MM or 11.4% s 1,735 or 3.3%
Checking Products ($MM) High Interest Checking Basic Dividend* HSA Think BIG* Private Client Student Edge Business
2022 Outlook
As the employees for Lilly and our other SEGs return to their offices and our RMs resume on-site workshops, new checking volumes are anticipated to return to Pre-COVID levels. The upcoming HINT promo, 4% for 12 months, will raise awareness and drive engaged checking members.
$238.9 $46.3 $37.3 $36.2 $30.1 $20.1 $2.5 $16.0
*Grandfathered
Product/Services Penetration eStatements eBranch Debit Cards Direct Deposit Bill Pay SavvyMoney Remote Capture
t 84.7% s 77.1% s 74.1% s 66.4% 37.0% s 27.5% t 15.2%
Deposit Balance by SEG
Association
Lilly SEG
Other SEGs 87 76
31 13
20
186
66
41
46
213
221
218
273
301
15
17
125
135
0
1
5
9
13
16
18
20
28
29
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
149
160
Checking Overview — 25
Checking Concentration by State Top 3 States 71.61%
3.59%
3.50% n 5% and Greater n 2%-4.99% n 1%-1.99% n 0.01%-0.99% n 0%
Demographics Average Age Average Member Tenure Average Balance
% of Total Deposits
24.1
46 14 years $10,058
% Member Penetration
38.7
Checking Demographics — 26
Savings Totals Dollars Accounts
$1.2B 108,965
Growth Dollars Accounts
s $41.2MM or 3.6% s 5,172 or 4.1%
Savings Products ($MM) Helium Private Client Member Premium MM Hideaway Business IRA Youth No Dividend
2022 Outlook
Saving balances will be stressed as members increase spending. Additionally as rate differences begin to widen between savings and CDs, savings dollars will begin migrating back into higher yielding investments.
$556.6 $227.0 $205.7 $137.7 $17.2 $16.0 $7.8 $7.2 $1.0
Deposit Balance by SEG $MM
Association
Lilly SEG
176
Other SEGs
699
34
33
16
24
500
522
523
521
44 549
80
99
561
544
196 793
127 527
261 1
1
3
5
8
51
94
128
2012
2013
2014
2015
2016
2017
2018
2019
189
2020
2021
Savings Overview — 27
Savings Concentration by State Top 3 States 75.12%
4.37%
2.27% n 5% and Greater n 2%-4.99% n 1%-1.99% n 0.01%-0.99% n 0%
Demographics Average Age Average Member Tenure Average Balance
% of Total Deposits
67.9
46 9 years $10,793
% Member Penetration
38.1
*Excludes Savings accounts with $15 or less.
Savings Demographics — 28
Certificates/IRAs Totals Dollars Accounts
$137.5MM 4,200
Growth Dollars Accounts
t $82.3MM or 37.5% t 1,868 or 30.8%
Certificate Products Various terms ranging from 6 months to 10 years.
2022 Outlook
Elements intends on growing CDs primarily by offering competitive specials on terms beneficial in managing the balance sheet. Over the last two years, the credit union intentionally allowed runoff to reduce deposits in order to bolster its capital ratio. In growing CDs, we will be lengthening the average life thus reducing rising rate sensitivity of the overall balance sheet.
Deposit Balance by SEG $MM
Association
Lilly SEG
5
8
8
180
172
Other SEGs
9
20
200
201
37 14 190
191
24
254
221
28 176 16 114
12
12
18
42
46
32
14
16
16
8
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
Certificates Overview — 29
Certificates Concentration by State Top 3 States 74.46%
5.53%
3.67% n 5% and Greater n 2%-4.99% n 1%-1.99% n 0.01%-0.99% n 0%
Demographics Average Age Average Member Tenure Average Balance
% of Total Deposits
8.0
58 22 years $35,726
% Member Penetration
4.3
Certificates Demographics — 30
Private Client Totals Loans Deposits
Growth Dollars Dollars
$160.1MM $341.2MM
s $15.7MM or 10.9% t $18.5MM or 5.1%
Averages Average Loan Average Deposit Account
$68,349 $145,607
Largest SEGs Tru Direction Eli Lilly IU Health Somerset CPAs Allied Solutions
2022 Outlook
The Private Client group was formed in 2015. This group provides concierge level service to high net worth members. The team deepens existing relationships while attracting new members who in many cases utilize similar services elsewhere. This has been especially successful in solidifying relationships with existing SEGs by attracting influential executives and professionals.
160
Loans $MM
Deposits $MM
144
360
341
121 262
151 107
8
2015
23
2016
29
33
64 18
2017
2018
2019
2020
2021
2015
2016
2017
2018
2019
2020
2021
Members 2,198
2,343
1,733
850 516 84
256
2015
2016
2017
2018
2019
2020
2021
Private Client Overview — 31
Private Client Staff
1
Total Employees
3
Total Employees
Growth Since 2013
Ryan Sebree Private Client Officer
Ashlie Dew AVP Private Client Services
+3
1
Total Employees
Samantha White Administrative Assistant
Private Client Staff — 32
Business Development / SEGs Totals & Growth
$300MM
Loan and Deposit Growth
$270MM
Deposits
$240MM
Loans
s $27MM or 12% s $53.8MM or 22.6%
Association Loans Deposits
$605.5MM $224.9MM
s $52.0MM or 9.4% t $77.9MM or 25.8%
Lilly Loans Deposits
$367.2MM t $34.0MM or 8.5% $1,202.2MM s $62.2MM or 5.5%
$300MM
June 2019 Elanco Added
$270MM $240MM $210MM
Initiated New SEG Strategy
$180MM
$120MM
$291.7MM $276.0MM
March 2015 Monthly Profitability Achieved
$210MM
$150MM
Other SEGs Loans Deposits
Start of SEG Strategy
$180MM $150MM
Covance & Evonik account for 78% of Deposits and 57% of Loans
$90MM $60MM
$120MM $90MM $60MM
$30MM
$30MM 2008 5 SEGs*
2009 16 SEGs
2010 24 SEGs
2011 25 SEGs
2012 38 SEGs
2013 55 SEGs
2014 64 SEGs
Total Deposit Balance Comparison by SEG Group $MMs Other SEGs
Association
2016 103 SEGs
Other SEGs
2018 136 SEGs
2019 144 SEGs
Association
1,208 437
996
948
2017 121 SEGs
2020 148 SEGs
2021 159 SEGs
2008
Total Loan Balance Comparison by SEG Group $MMs
Lilly 1,147
928
2015 89 SEGs**
596 532
515
483
466
Lilly
439
421
388
360 289
211
181
150
98
2017
185
125
2018
*Year End 12/31 excludes Lilly and Assoc **13 SEGs by way of State Merger
209
254
305
163
2019
2020
270
245
142 226
2021
2017
2018
2019
2020
2021
Business Development / SEGs — 33
Business Development / SEGs SEG Deposit, Loan, and Membership Growth Total Deposits
Total Loans
Total Membership
2019
Elanco
$47,574,249
2016
Indiana University Health
$121,879,073
2013
OneAmerica Financial Partners
3,125
2015
State of Indiana Employees
$36,397,457
2019
Elanco
$24,036,427
2015
State of Indiana Employees
2,407
2016
Indiana University Health
$28,675,856
2015
State of Indiana Employees
$15,515,159
2014
The Heritage Group
2,276
2016
Butler University
$20,404,043
2013
OneAmerica Financial Partners
$11,164,094
2016
Indiana University Health
1,844
2012
Allied Solutions
$15,067,285
2016
Butler University
$8,154,338
2013
Angie’s List, Inc.
1,836
2013
OneAmerica Financial Partners
$12,211,199
2016
Franciscan Alliance
$6,292,481
2019
Elanco
1,437
Allied Solutions
$5,770,110
2012
Allied Solutions
1,233
2016
Somerset CPAs and Advisors
$11,039,014
2012
2010
Evonik
$10,353,903
2013
Angie’s List, Inc.
$4,912,907
2012
Archdiocese of Indianapolis
1,178
2010
Covance Labs, Inc.
$7,846,079
2019
Republic Airways
$4,748,325
2014
Koorsen Fire and Security
1,145
2019
Republic Airways
$7,152,661
2019
Roche Diagnostics
$4,162,571
2016
Butler University
969
12 Month Deposit Growth
12 Month Loan Growth
12 Month Membership Growth
2012
Allied Solutions
$5,870,290
2016
Indiana University Health
$33,521,540
2019
Helmer Scientific
254
2016
Indiana University Health
$2,483,289
2013
OneAmerica Financial Partners
$4,422,685
2013
OneAmerica Financial Partners
183
2019
Elanco
$2,450,259
2013
AmericanStructurepoint
$1,989,575
2016
Indiana University Health
161
2016
Butler University
$1,993,212
2019
Roche Diagnostics
$1,856,014
2013
AmericanStructurepoint
84
2016
Somerset CPAs and Advisors
$1,500,014
2012
Allied Solutions
$1,602,926
2012
Allied Solutions
77
2010
Covance Labs, Inc.
$873,682
2016
Williams Randall Advertising
$1,289,627
2021
Greenwood Village South
68
2013
OneAmerica Financial Partners
$862,003
2015
Indians, Inc.
$1,003,535
2014
Koorsen Fire and Security
49
2021
American Legion
$663,891
2019
Republic Airways
$904,210
2010
MISO
48
2016
Wilhelm Construction
$637,284
2016
Franciscan Alliance
$902,498
2019
Republic Airways
48
2020
Dream Alive
$548,132
2016
ExactTarget
$892.935
2019
Elanco
36
Business Development / SEGs — 34
Business Development / SEGs Growth Since 2013
Staff
7
Andee Kettlebar VP Sales
1
Todd Shickel VP Business Development
Total Employees
Total Employees
6
Total Employees
Abbey Askew AVP Business Development
4 – Relationship Managers 1 – Financial Solutions Experts
+3
Business Development / SEGs Staff — 35
Branches
2022 Outlook
Branch traffic is anticipated to rebound back to about 80% of Pre-COVID levels. Lilly employees returned back to the office March 1st while the Governor has asked State employees to return but hasn’t set a date. It doesn’t appear that Lilly retirees will regain access to Lilly facilities with many now visiting our Farm Bureau Branch.
Lilly Corporate Center (LCC) Access: Restricted Staffing: 4 current
Established: 1930 Cash Machine: ITM
Indiana Government Center (IGC) Access: Public Staffing: 3 current
Established: 2015 Cash Machine: ATM
Lilly Technology Center (LTC) Established: 1968 Access: Restricted Cash Machine: ITM Staffing: 4 current
Farm Bureau Center (FB) Access: Public Staffing: 4 current
Established: 2007 Cash Machine: N/A Branches Overview — 36
Branches Staff
4
16
Total Employees
Growth Since 2013
Total Employees
Quentin Girtin Branch Manager LCC
2 – Financial Solutions Experts 1 – Universal Teller (open)
4
1 – Financial Solutions Experts 2 – Universal Tellers
0
Total Employees
Kyle Plumlee Branch Manager LTC
3
2 – Universal Tellers
-1
Total Employees
Sherry Gaw Branch Manager IGC
4
April Bratton Branch Manager FB
2 – Financial Solutions Experts 1 – Universal Tellers
0
+1 -3
Andee Kettlebar VP Sales
Total Employees
Branches Staff — 37
Marketing
Summarizing Our Marketing Approach Career satisfaction, trust, teamwork, and frequent communication come together to form the strong foundation of this team known to be high performers at Elements and within the credit union industry. Digital means of marketing are our primary focus, in line with the organizational strategy of Digital Excellence. We also engage strategically in multiple traditional methods of advertising, including direct mail and outdoor advertising/billboards, both on a limited basis. Corporate sponsorships play a significant role in our community relationship building, such as our major partnerships with the Indianapolis Indians where we have naming rights of the all-new Elements Financial Club at Victory Field; Butler University; and the Indy Chamber. Print advertising is targeted to local business publications only. Social media channels play a role in what we do, yet we consider them secondary or “bonus” channels, primarily for brand awareness. Representing a large investment of time, this department works handin-hand with multiple sales teams across the organization to support their “boots on the ground” efforts in Business Development, Mortgage Loan Origination, Wealth Management, Private Client Services, and Commercial Lending.
All-new Elements Financial Club at Victory Field
Ongoing departmental priorities include: Automation Collaborating closely with IT and Operations, Marketing seeks to maximize the capabilities of our automation tools that allow for ongoing email and even limited direct mail campaigns triggered by certain member behaviors, product choices, and milestones. We continually evaluate multiple factors of automation, such as demand, efficiencies achieved, relevance to strategy, frequency and timeliness, and overall impact to the organization. Product Promotions We conduct promotions based on an annual calendar driven largely by product seasonality, organizational priorities, and/or shifting needs of the business.
Branding, Awareness, and Market Research Our Elements brand was born in January 2015. The rebrand was one of the most significant changes and projects in our credit union’s history, and our work in this area never ends. Every employee is considered a Brand Advocate with the Marketing team at the helm of growing and protecting the brand through multiple awareness opportunities as mentioned in this plan. Additionally, we monitor, maintain, and proactively protect our trademark registrations on file with the US Trademark Office. We measure brand recognition and advertising awareness through an annual market research study.
Marketing — 38
Marketing Supporting the Core Strategy Financial Wellness Our team works closely with Business Development to provide a robust financial wellness curriculum, keeping it fresh, updated, and relevant to member interests and needs. We work together to present financial wellness workshops through various channels — mostly digital — including a sophisticated web broadcasting platform called Boxcast, Facebook Live recordings, Community Workshops open to all members, and targeted SEG webinars through Microsoft Teams. We also manage a large library of proprietary educational resources here on our website at elements.org/Advice. Managed Growth A large part of what we do daily supports other teams and their goals, which leads to the growth of our credit union overall. We also serve a higher and longer-term purpose of supporting our culture and strengthening the brand of Elements Financial. Financial Wellness Workshops on our home-grown Boxcast Webinar Platform Digital Excellence As a digitally-driven credit union, our marketing efforts follow suit. Our methods seek to meet members and consumers where they are, through highly relevant and mostly digital means of message delivery, often even automated. We invest in primarily electronic methods to communicate with our members as well as consumers at large who represent our prospective members. Emails including a twice-monthly e-newsletter to 70,000+ members are our go-to channels as well as digital advertising based on behavioral targeting and re-targeting. We use SEM/Google Search, display ads, paid social media via Facebook/Instagram/Pinterest; online radio spots via Pandora and Spotify; and online video via a range of streaming sources. We use organic social media to reinforce our brand (Facebook/Instagram/LinkedIN/Glassdoor).
Marketing — 39
Marketing Personifying the Elements of Success The Marketing Team believes in upholding the purpose of Elements — Empowering members to achieve financial success. We do that by looking to our corporate values to guide our daily communications, behaviors, and decisions. Accountability > Establish goals for key promotions to pursue and measure success. > Ensure a balanced budget according to plan. Collaboration > Work closely with internal teams, assigning marketing points of contact to each area for maximum efficiency and streamlined communications. Collaboration with our valued vendors is also crucial to our success. Community > Leverage community partnerships and corporate sponsorships to improve brand awareness and business. > Serve as leaders of the Elements Cares & Purpose Day initiatives.
Our Elements of Success prominently displayed in Town Square
Watch our 2021 Purpose Day wrap up video on Elements Financial’s Facebook page.
Integrity Ensure accuracy of information by organizing content reviews and approvals by subject matter experts, including Compliance, when triggers are included. Leadership Set high standards of responsiveness, timeliness, and quality and encourage the same from other teams through brand guidelines and audits; staff training in the areas of branding, social media, and communications; and frequent reminders to our peers to proactively communicate.
Check presentation at Little Red Door Cancer Agency
Trust We may not always agree with our colleagues, and we cannot deliver on every request, yet we will maintain relationships built on trust that allow room for different points of view.
Purpose Day efforts supporting NeighborLink Indy
Marketing — 40
Marketing Defining Our Audiences/Messages/Channels/Results TARGET AUDIENCES B2B Target Medium to Large Businesses in Central Indiana We are not a community-based credit union open to consumers based on a geographic footprint like many of our competitors. Our credit union model is employer-driven and SEG-Based (Select Employer Group). We began as a single-sponsor credit union in 1930 with Eli Lilly and Company; in 2008 we transitioned our charter to include multiple companies; today in 2021, we have more than 150 partner organizations, as listed on elements.org/Partner. Business decision makers at the executive level and in human resources departments are a key audience to us as “the foot in the door” at new companies.
B2C Target 25 to 55, primarily female as the banking decision makers in the household, middle to upper income, educated and employed In the recent past, we paid for television advertising with our local NBC affiliate, and this is the target consumer audience we identified with the station. This audience remains essential to us through other means of advertising, especially our digital methods. But always the priority audience within our B2C efforts, we have 110,000+ captive current members of our credit union. The more engaged they become, the more likely they are to stay with us for a lifetime. We continually market to this current engaged base of individuals.
KEY MESSAGES We have what we call our “Brand Pairings” as the keystones of our messaging — see below. As part of our Marketing vision, we seek to drive home one or more of these pairings in every communication, either directly or inherently. We’re also highly dedicated to diversity and inclusion within our marketing materials. If you tour our website and other assets, you’ll see that commitment reflected in our imagery, and our team has created a Diversity in Advertising position paper, as well. Why are we “like a bank, only better”?
Better Rates.
Trusted Advice.
High Tech.
Respected Locally.
Fewer Fees.
Fresh Approach.
Human Touch.
Accessed Globally.
Diversity in Advertising Position Statement available on Elements eTown
“Employer of Choice” This is our employer brand and recruitment theme that we support through a close collaboration with Human Resources.
Marketing — 41
Marketing Defining Our Audiences/Messages/Channels/Results continued CHANNELS Typically, when people think of Marketing, their minds go straight to the tactics and channels. A solid strategy always begins with the right targeting, a strong offer, and a message that’s intended to resonate with the recipient. Yet the tactics are crucial to our process. The following list shows the many ways Elements communicates with members, and the many channels Marketing owns or influences: > Face to Face Meetings (in-person or digital) > Financial Wellness Workshops > Phone Calls, including Auto Dialer and Hold Messages > Direct 1:1 Emails via Outlook > Branch In-Person Visits > Branch Posters > Branch Video Displays > Branch Promo Handouts > Branch Touch Kiosk (at LCC) > ATM/TIMs > OLB Alerts & Guides > Website
> Digital Ads > Paid Google Search/ SEM/SEO > Promo Emails > Email Newsletter > Direct Mailings > Statements/Statement Messages > Outdoor Advertising/ Billboards
Elements billboard featuring High Interest Checking Account
> Radio Streaming (Pandora – Spotify) > Video Streaming (various platforms) > Social Media: Facebook/Instagram/ LinkedIn/Glassdoor/Twitter/Pinterest (both organic content & paid ads)
RESULTS We track marketing and sales success based on organizational annual goals for deposits, loans, and membership growth. For some campaigns, particularly our digital advertising, we track results closely with WilliamsRandall, our digital advertising agency of record. We look at clickthroughs, apps generated, and costs per click/per application. We also continue to look to Business Intelligence and Marketing Cloud for analysis of campaigns and communications. Asking for and evaluating anecdotal feedback from our internal partners is also helpful on an ongoing basis.
Marketing — 42
Marketing Honoring Our Progress Here’s a set of highlights from 2021, a productive year in Marketing: > Corporate sponsorships played a significant role in our community relationship building. We completed our first full season with naming rights of the Elements Financial Club at Victory Field, and our 7th year in partnership with Butler. > IT’s new hire of a Salesforce Marketing Cloud Administrator allowed for progress in automated email sends, surveys, and even direct collections and loan servicing mailings based on certain member behaviors, product choices, and milestones. > Conducted successful auto loan, pre-approved credit card, and mortgage promotions (to name a few) that fed our credit union’s growth goals. Developed new promotions based on shifting business needs, such as the new student loan refinance program at year-end. > Worked hand-in-hand with multiple sales teams to support their efforts, including Wealth, Private Client, MLOs, and Business Development. Our involvement in the financial wellness curriculum and broadcasting increased with the expansion of the Advice Library, Quick Advice videos, and Community Workshops open to all members. > Marketing’s strong influence in the design of HQ and the LTC branch remodel came to life in the summer months.
Lastly, here’s a look at 15 years of marketing milestones for Elements:
2008 New Multi-SEG Charter shifts marketing approach; Tru Direction formed
Core conversion; early SEGs added
2012 Eli Lilly Federal Credit Union begins marketing under acronym/nickname of Elfcu
2013-2014 Rebrand Project begins and continues behind the scenes
2015 We become Elements Financial! New community partnerships begin with Indianapolis Indians, Butler University, and local NBC affiliate that included sponsorship of school closings and ongoing commercial placements, (Elements would appear in two Olympics opening ceremonies in the coming years!) Acquired Elements trademark.
2016 New partnership formed for website and digital advertising with Williams Randall Advertising, local agency of record.
2017 Personalized Websites introduced providing custom, co-branded approach to every SEG
2018
> Strong collaboration with our valued vendors led to effective digital advertising campaigns, high-quality branded custom photography to feature on our website and on billboards; and several industry’s best video products for Elements, including the Annual Meeting highlights reel and the Purpose Day vignette.
Began ad streaming to Pandora/Spotify and multiple television sources/platforms; launched Butler University debit and credit cards
> The full team developed a Diversity in Advertising Position Paper to share with the organization.
First-Ever Community Billboards Campaign; launched Indianapolis Indians debit and credit cards
2019
At year-end, we measured brand recognition and advertising awareness with SMARI, Inc. Results indicated areas of opportunity plus movement in both “brand awareness” (+10%) and “brand familiarity” (+15%) among prospects/nonmembers, as compared to the last study in 2019. We’re also seeing indications that key messages such as “Better Rates and Fewer Fees” are resonating with the public.
Please visit the eMarketing page on eTown for additional resources of interest, including our 2022 Promotions Calendar, our Diversity in Advertising Position Paper, and much more.
2009-2011
2020 Crisis Communication Response to pandemic; stayed course with digital advertising, leading to record results for campaigns; broadcasting technology established.
2021 Branding of new Elements HQ, including timeline feature wall; Elements Financial Club at Victory Field opens for first full season
2022 The Future is Bright!
Marketing — 43
Marketing Staff
2
Jake Engel Brand Strategist
2
Ross Graham AVP Creative & Digital Experience
Total Employees
6
Total Employees
Michelle Payne VP Marketing
Total Employees
1 – Marketing Intern
Growth Since 2013 +1
+1
Chris Miller Marketing Strategist
1
Total Employees
Karmen Johnson Communication Strategist
+1
Marketing Staff — 44