2023 Pantex FCU Annual Report

2023

Pantex Federal Credit Union

ANNUAL REPORT

PFCU cannot give tax advice. For help with information on your financial goals and the tax treatment, consult a professional tax advisor.

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"Pantex Federal Union is committed to the well-being of our members and Locally Owned.

Locally Operated.

our employees, and we strive to be a leader in the communities that we serve."

Locally Trusted.

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Curtis Hall

President and CEO

Locally Owned In 1940, a small group of local businessmen formed Pantex Federal Credit Union with the purpose of offering local, dependable financial services and support to its membership. Pantex FCU has far exceeded this original goal! There are many reasons for Pantex FCU's continued success, and at the top of the list is its owners! Because Pantex FCU is a COOPERATIVE financial institution, it is collectively owned by those who are members. In other words, members are more than just account holders, they are stake-holders! Your local Pantex FCU volunteer Board of Directors are elected by the membership to manage our credit union.

Profits made by Pantex FCU are returned back to members in the form of reduced fees, higher savings rates and lower loan rates.

Locally Operated Since Pantex FCU began, it has increased in membership, grown in participation, and has branched out. Despite its great success and expansions over the years, Pantex FCU remains firmly planted, right here in Hutchinson County, and faithfully operates within the communities where its members call "home." Loan decisions are made locally at each Pantex FCU branch, by an experienced, helpful, and caring staff. They are your friends and neighbors… and they stand ready to help! They work hard to make sure that our credit union operates to promote the well-being of the membership, and the community.

Locally Trusted For 82 years, members have turned to Pantex FCU for comprehensive financial services that they can trust. From checking accounts, savings accounts, CDs and IRAs, to loans for home, vehicle, personal, and more... Pantex FCU continues to stand strong!

Not only are decisions made locally, but loans are processed and accounts are fully serviced within its walls. Pantex FCU stands out and above out-of-town financial institutions that just have a local presence.

Professionally Recognized Bauer Financial, who independently analyzes financial institutions, recognizes our credit union as being one of the strongest credit unions in America, with a superior "five stars" rating, and "Best of Bauer" status. Pantex FCU has earned this rating for 114 consecutive quarters! That's over 28 years of excellence!

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Pantex FCU Digital Banking Fast. Safe. Convenient.

Monitor account balances and transactions Deposit checks (using your phone) Send money to a friend or family member Pay bills and transfer funds

Use online at pantexfcu.com or download the Pantex FCU Mobile App. 6

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Pantex Federal Credit Union Call to Order (7:00 p.m.)

ANNUAL REPORT Reading of the Previous Minutes Reports from Officials Old Business New Business Election of Officials Drawing of Door Prizes Adjournment

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Fast.

Safe.

Easy.

Just log-in to your Pantex FCU online banking or mobile banking app to get started.

Visit: www.pantexfcu.com for more information

Board of Directors Allen Jenkins Chairman Harvey Hilbert Vice-Chairman Larry Thompson Treasurer Glynn Carlock Secretary Fran Braden Lynn Hopkins Sara Ramby

Supervisory Committee Judy Flanders Chairperson

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Terms and conditions apply. Zelle and the Zelle related marks are wholly owned by Early Warning Services, LLC and are used herein under license. Copyright © 2024 Pantex FCU All rights reserved. Equal Housing Lender. Member FDIC.

Tina Briscoe Addison Killough Ralph Pumphrey Hailey Lisle

Professional Staff Curtis Hall President/CEO Rodney Franklin Executive Vice President

Ebony Jarrett Loan Processor/Assistant Carol Williams Loan Processor/Assistant

Dana Martin Branch Manager-Fritch Ginnie Whitfield Branch Manager-Walmart Robert Forester Branch Manager-Pampa & Marketing Director

Mikel Cauthon Network Administrator Linda Watson Imaging/Internet Banking Carla Howard Plastic Cards/Imaging

Michael Robinson Vice President of IT Tanya Fraley Asst. Vice President of Member Services Kim Hughes Asst. Vice President/Tellers

Mistee Williams Asst. Branch Head Teller-Main Branch Tiera Lesley Branch Head Teller-Fritch Shelly Coleman Branch Head Teller-WalMart Sarah Elliott Branch Head Teller-Pampa

Shannon Mears Loan Officer Shelby Overpeck Loan Officer Karen Bryan Loan Officer

Lucy Spoon Accounting Assistant Angela Perez Accounting Assistant

Tellers Stevie Anderson Tonja Brown Amy Bustillos Yamile Carrasco Maranda Grimes Karen Hunter Charlotte Jasper Amanda Keeney Brittany McCallum Bethany McCarty Lilian Reasor Robin Rohan Kristi Snow Krisha Temple Vanessa Vega Rebecca Wilson Nilzaida Wood Mandy Wyatt Kenny Green Facilities 9

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On behalf of the Credit Union Board of Directors, staff, and committee members, I welcome you to our 83rd annual membership meeting.

Thank you for choosing Pantex Federal Credit Union for your financial needs. The information provided in our annual report will give you a detailed look at our 2023 operations. As you will observe, 2023 continued our positive trend of success. I am pleased to report that Pantex Federal Credit Union has continued to maintain a strong financial position, while continuing to offer competitive interest rates for our members. This has been achieved in a year with rising interest rates, and a significant amount of uncertainty surrounding the economic and financial markets. The enhancements to the products and services that we are providing are focused on meeting the ever-changing needs of the membership, and to provide the best financial experience possible.

We continue to focus and commit to always provide the best facilities and member service that we can. We have a full complement of services available on our mobile app and home banking website, all with the latest security protocols to keep your funds safe and secure. Our staff and leadership of Pantex Federal Credit Union continually provide the utmost level of service to our membership.

Again, thank you for being a member, and for your continued support and trust in Pantex Federal Credit Union. We look forward to serving you in the future and invite you to visit us in person, by phone, or online for your financial services.

Respectfully submitted, Allen Jenkins Chairman of the Board

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For over 83 years, Pantex Federal Credit Union has provided the services needed to help our members achieve their financial goals. We provide friendly, quality service to nearly 16,000

members, with convenience and accessibility to their banking needs.

Pantex Federal Credit Union strives to provide the financial services needed to help our members achieve the life that they desire, while bringing people together in our community. With rising interest rates, 2023 proved to be a challenging year, but we were able to finish the year strong.

Our success in 2023 is a direct reflection of our hardworking staff, dedicated volunteers, and our incredible members who trust us with their financial needs. As we advance into 2024, we have many exciting new projects ahead that will create even more opportunities for our members to achieve their financial goals. Pantex Federal Union is committed to the well-being of our members and our employees, and we strive to be a leader in the communities that we serve.

Our employees work diligently to help our members meet their financial needs. They are inspired to build trust in Pantex Federal Credit Union and remain focused on ensuring success. We are a strong, safe and sound financial institution with a stable path for the future.

On behalf of our employees, supervisory committee, and Board of Directors, thank you for your membership and your continued support.

Respectfully submitted, Curtis Hall, President/CEO 12

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Pantex FCU offers great rates for qualified buyers on new or used cars, trucks, SUVs, motorcycles, boats, and all types of ATVs. Plus, with Pantex FCU, members get the best service around.

Ask about a pre-approval!

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As members of your volunteer board, we have the responsibility of ensuring the credit union is safely and soundly operating. We are charged with ensuring the institution has a solid financial foundation. 2023 was a good year in terms of building our financial strength. Steady interest income and controlled expenses helped us realize strong earnings. We are proud of our operations and remain incredibly grateful to our staff for their commitment to our members. Labor market challenges and historic interest rate increases were overcome by our team. We continued to provide you with great service and competitively priced products. We ended 2023 with $225 million in assets, almost $66 million in loans, and almost $184 million in shares. And after paying dividends, we were able to positively contribute to our capital account.

Financially, 2023 was a good year. We were both profitable and efficient as we ended the year with a 20.35% capital ratio.

Member Return: • Share dividends totaled $3,263,441.64 which represents a return to the membership of 31.5% of total operating income earned by the credit union in 2023.

• Of the remaining income, 59.2% was distributed to normal operating expenses of the Credit Union, and 9.3% was placed in statutory reserves to keep our capital levels strong.

Pantex Federal Credit Union’s financial goals are simple. We strive to remain a strong, safe and sound financial institution with a stable path for the future.

Respectfully submitted, Larry Thompson, Treasurer 14

The Lending Team at Pantex Federal Credit Union is privileged to work together, exchange ideas, and champion the financial needs of our membership. It is an honor to serve our members with valuable, empathetic, and personalized solutions. As we look back on 2023, we optimistically turn the page with aspirations of a brighter year filled with continued commitment to serving the members of this credit union.

During the year 2023, Pantex FCU members received 1,793 loans totaling $29,505,341.20 in new loans. Total loans outstanding decreased 7.02% over the previous year.

We are proud to say that we continued to achieve strong credit quality, and you can be sure that Pantex Federal Credit Union is among the safest banking institutions in the Panhandle.

Whether you’re thinking about purchasing a new car, remodeling your home, or taking a vacation, Pantex FCU has a consumer loan option to make it possible. Our Loan Officers are ready to help you make the best loan decision to meet your needs.

Respectfully submitted, Rodney Franklin, Executive Vice President Dana Martin, Ginnie Whitfield, Robert Forester, Karen Bryan, Shannon Mears, Shelby Overpeck, and Shelly Coleman 15

Your Supervisory Committee is appointed by the Board of Directors in accordance with the Federal Credit Union Act and ensures that your credit union conducts its operations and activities in a safe and sound manner.

The Committee, as the members’ representative and official auditor, has the responsibility to review and evaluate the overall financial operations and performance of your credit union, including that of its management staff, to ensure that all the regulations, procedures, and policies that govern this institution are properly followed.

The Committee is assisted in carrying out its responsibilities by External Auditors, who perform quarterly audits and reviews during the year. The credit union is also periodically examined by our Federal regulator, the National Credit Union Administration (NCUA). The last NCUA annual review in 2022 did not indicate any significant findings and our own internal audits confirm that internal controls are in place and are effective.

In conformance with NCUA regulations, the Committee contracted the accounting firm of Waypoint Advisory Services, Inc., to conduct an agreed upon procedures review, BSA/OFAC audit, and ACH audit of the credit union’s financial statements. The independent auditor found no significant issues to report back to the committee.

As a result of these reviews and audits, it is the pleasant duty of the Supervisory Committee to report to you that the affairs of Pantex Federal Credit Union during 2023 have been conducted in a most professional manner and in accordance with prescribed standards and accounting practices, and were found to be current, accurate, complete, and in balance.

The sound policies and practices of the Board of Directors contributed to the continuing growth and improvement of services, which has been evident over the past several years. We wish to commend the Credit Union staff for their efficient, attentive, and courteous service to our members. The cooperation and assistance they have provided to this committee is greatly appreciated.

We look forward to another year of service to our members, and assure you, that you can expect the same high standard of service that you received in 2023.

Respectfully submitted, Judy Flanders, Chairperson, Tina Briscoe, Ralph Pumphrey, Addison Killough and Hailey Lisle

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In accordance with the Pantex Federal Credit Union Policy Manual, to be nominated for a position as a Board Member or Committee Member, a person must meet certain qualifications. They must possess knowledge, experience, or interest pertinent to the Credit Union’s future; have a good credit standing and no criminal convictions; been a member of the Credit Union for at least two years; be willing to accept the responsibilities of the position; be objective and independent; not be an employee of this or a competing institution; and be at least 18 years of age.

Two 3-year terms are available for re-election on the Board of Directors. These positions are currently held by Harvey Hilbert and Lynn Hopkins.

The Nominating Committee, composed of three members, met to discuss potential candidates, and has recommended that Harvey Hilbert and Lynn Hopkins be elected to the Board of Directors for the three-year terms based on their past service, knowledge, and experience.

After posting these names in the lobby of the Credit Union, and receiving no petitions for nomination prior to the deadline, the Committee recommends that the individuals named above be accepted by the membership.

Respectfully submitted, Glynn Carlock, Chairperson Fran Braden and Larry Thompson 17

Statement of Income & Expenses Operating Income

December 31, 2023

December 31, 2022

Interest on Loans. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,185,677.02 . . . . . . . . . . $ 3,368,986.48 Interest on Investments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3,697,072.95 . . . . . . . . . .

2,159,770.02

Misc Operating Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2,473,049.11 . . . . . . . . . .

2,141,689.89

Total Operating Income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

10,355,799.08 . . . . . . . . . .

7,670,446.39

31.5% of total income earned was returned to the membership in the form of dividends.

$3,263,441.64 Total Share Dividends 59.2% was distributed to the normal operating Paid cost of the Credit Union.

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PFCU 2023

9.3% was placed in statutory reserves to keep the Credit Union capital levels strong.

Operating Expenses

December 31, 2023

December 31, 2022

Compensation & Employee Benefits. . . . . . . . . . . . . . . . . . . . $ 2,946,295.57 . . . . . . . . . . $ 2,896,918.71 Travel & Educational Expenses . . . . . . . . . . . . . . . . . . . . . . . . .

11,442.60 . . . . . . . . . .

5,908.35 Association Dues. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7,199.70 . . . . . . . . . .

11,130.00 Office Occupancy Expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . .

289,811.14 . . . . . . . . . .

273,416.21 Office Operations Expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . .

685,121.35 . . . . . . . . . .

679,069.02 Publicity and Promotional Expenses . . . . . . . . . . . . . . . . . . . .

33,778.11 . . . . . . . . . .

27,167.85 Loan & Plastic Card Servicing Expenses . . . . . . . . . . . . . . . .

1,169,905.55 . . . . . . . . . .

1,075,100.12 Professional Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

859,043.82 . . . . . . . . . .

794,887.56 Provision for Loan Losses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

39,641.60 . . . . . . . . . .

45,505.81 Federal Supervisory Exam Expenses . . . . . . . . . . . . . . . . . . .

38,249.64 . . . . . . . . . .

39,662.17 Miscellaneous Operating Expenses. . . . . . . . . . . . . . . . . . . . .

49,757.02 . . . . . . . . . .

55,198.79 Total Operating Expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6,130,246.10 . . . . . . . . . .

5,903,964.59

Net Income from Operations . . . . . . . . . . . . . . . . . . . . . . . . . . .

4,225,552.98 . . . . . . . . . .

1,766,481.80 Gain(loss) on Disposal of Assets. . . . . . . . . . . . . . . . . . . . . . . .

0.00 . . . . . . . . . .

-185,346.95 Recovery of Previous Years Losses from Southwest Corporate CU Liquidation . . . . . . . . . . . . . 43,712.60 . . . . . . . . . . . . . . 466,267.77 Dividend Expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,263,441.64) . . . . . . . . . .

(1,733,927.24)

Net Income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,005,823.94 . . . . . . . . . .

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Statement of Condition Assets

December 31, 2023

December 31, 2022

Loans(net). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 65,825,484.45 . . . . . . . . . $ 66,533,222.82 Cash on Hand and in Banks . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3,779,925.75 . . . . . . . . .

3,323,859.79

Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132,420,626.92 . . . . . . . . . 133,499,076.81 Shares: Catalyst Corporate. . . . . . . . . . . . . . . . . . . . . . . . . . . .

13,970,763.00 . . . . . . . . .

10,098,548.31

Other Assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7,939,003.24 . . . . . . . . .

7,429,012.92

Land. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

94,083.85 . . . . . . . . .

94,093.82

Building. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

724,610.74 . . . . . . . . .

784,153.06

Furniture & Equipment & Leasehold. . . . . . . . . . . . . . . . . . . . .

257,637.06 . . . . . . . . .

209,028.65

Total Assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $225,012,135.01 . . . . . . . . . $221,970,996.18

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Liabilities and Equity

December 31, 2023

Accounts Payable/Items in Transit . . . . . . . . . . . . . . . . . . .

December 31, 2022

$ 2,772.158.16 . . . . . . . . $ 2,291,525.25

Accrued Liabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

369,582.79 . . . . . . . . .

304,673.23

Total Liabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3,141,740.95 . . . . . . . . .

2,596,198.48

Shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

183,817,075.57 . . . . . . . .

184,597,861.54

Regular Reserve. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

0.00 . . . . . . . . .

9,596,199.99

Accumulated Unrealized Gain/(Loss) on AFS Securities . . .

(7,416,663.82) . . . . . . . .

(9,804,786.09)

Undivided Earnings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

45,469,982.31 . . . . . . . . .

34,985,522.26

Total Equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

221,870,394.06 . . . . . . . . .

219,374,797.70

Total Liabilities & Equity . . . . . . . . . . . . . . . . . . . . . . . . . . .

$225,012,135.01 . . . . . . . . $221,970,996.18

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Branch Locations & Hours MAIN BRANCH

Mailing Address P O Box 5206 Borger, TX 79008

1300 W. Wilson Borger, Texas (806) 273-5692

Email PFCU@PantexFCU.com Website www.PantexFCU.com

Hours

Monday–Friday 9:00 am to 5:00 pm Drive Thru 8:00 am to 6:00 pm

WALMART BRANCH 1501 Roosevelt Borger, Texas (806) 273-5698 Hours

Monday–Friday 9:00 am to 7:00 pm Saturday 9:00 am to 4:00 pm

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FRITCH BRANCH 411 E. Broadway Fritch, Texas (806) 857-2400 Hours

Monday–Friday 9:00 am to 5:00 pm Drive Thru 8:00 am to 6:00 pm

PAMPA BRANCH 807 N. Sumner Pampa, Texas (806) 665-4212 Hours

Monday–Friday 9:00 am to 5:00 pm Drive Thru 9:00 am to 5:00 pm

Going to catch a few rays?

Wherever you go, let Pantex FCU know your travel plans!

Let us know, so our system will know, where your are going and when you will be there. This allows debit card charges to process from your destination and will reduce debit card denial!

The last thing we want is for your Pantex FCU debit card to interrupt your travel plans...

"ain't nobody got time for that!"

Contact any of the Pantex FCU branches with the exact country or countries and dates you plan to visit! (“Europe” or “Africa” is too general.)

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www.pantexfcu.com