Pantex FCU 2024 Annual Report

2024 Pantex Federal Credit Union

Annual Report

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Locally owned, locally operated and locally trusted,

We take pride in this!

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Locally Owned In 1940, a small group of local businessmen founded Pantex Federal Credit Union with the goal of providing reliable, community-focused financial services and support. Over the years, Pantex FCU has far surpassed that initial vision!

The key to our ongoing success? It’s our members. As a COOPERATIVE financial institution, Pantex FCU is collectively owned by the very people we serve. In other words, our members aren’t just account holders—they’re stakeholders.

Our volunteer Board of Directors, elected by the membership, oversees the management of the credit union. And unlike traditional financial institutions, the profits generated by Pantex FCU are reinvested directly back to the membership in the form of lower fees, higher savings rates, and more competitive loan rates. It’s all part of our commitment to putting members first.

Locally Operated Since its founding, Pantex FCU has steadily grown in membership and has expanded its services to meet the evolving needs of the membership.

Pantex FCU remains firmly rooted right here in Hutchinson County, dedicated to serving the communities where our members live and work.

Loan decisions are made locally at each Pantex FCU branch by an experienced, friendly, and caring staff—your friends and neighbors who are always ready to help. Our team works tirelessly to ensure that the credit union continues to operate with the best interests of our members and the community at heart. At Pantex FCU, we’re not just a financial institution; we’re a committed part of the local fabric, working to enhance the well-being of everyone we serve.

Locally Trusted For over 84 years, Pantex FCU has been the trusted choice for comprehensive financial services. Whether it's checking and savings accounts, CDs, IRAs; or loans for your home, vehicle, or personal needs, Pantex FCU has you covered. What sets us apart is that our decisions are made locally. All lending, processing, and account servicing are done locally, right here within our community. Unlike out-of-town financial institutions that only have a local presence, Pantex FCU is deeply invested in the people we serve. Our commitment to local service is reflected in the community's trust, as demonstrated by our recognition as the "Best Financial Institution" in the annual Borger News-Herald "Best of the Best" program. This honor is a testament to the confidence and satisfaction our members experience every day.

Professionally Recognized

BauerFinancial, Inc., 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 118 consecutive quarters!

That's over 29 years of excellence!

Additionally, Pantex Federal Credit Union has been recognized as one of America’s Best Regional Banks and Credit Unions 2025 by Newsweek Magazine and Plant-A Insights Group. Selections for this list are based on indicators of financial health, operational performance, and metrics pointing toward long-term stability. Only institutions with positive profitability, creditworthiness and healthy lending capacity are selected.

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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

Meeting Agenda Call to Order (7:00 p.m.)

Reading of the Previous Minutes Official's Reports Old Business New Business Election of Officials Drawing of Door Prizes Adjournment

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Board of Directors Harvey Hilbert Chairman Glynn Carlock Vice-Chairman

Keep tabs on your Pantex FCU Debit ® Card with CardValet

Lynn Hopkins Treasurer Fran Braden Secretary Sara Ramby Judy Flanders Ralph Pumphrey

Download the ® CardValet app today.

Supervisory Committee

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Protect Yourself

Track Card Use

Set Limits

Get mobile alerts whenever your card is used

Review card usage history and transaction details

Set customized purchase controls to help manage spending

CardValet is a registered trademark of Fiserv, Inc. App store is a service mark of Apple Inc. Android, Google Play, and the Google Play logo are trademarks of Google Inc. Data charges may apply. Check with your mobile phone carrier for details. Apple and the Apple logo are trademarks of Apple Inc, registered in the U.S. and other countries. Copyright © 2025 Pantex FCU. All rights reserved.

Tina Briscoe Chairperson Addison Killough Hailey Lisle Bruce Lemery

Professional Staff Curtis Hall President/CEO Rodney Franklin Executive Vice President Michael Robinson Vice President of IT Kim Hughes Asst. Vice President, Teller Operations Tanya Fraley Asst. Vice President, Member Services Dana Martin Branch Manager-Fritch Ginnie Karlin Branch Manager-Walmart Robert Forester Branch Manager-Pampa and Marketing Director Shannon Mears Loan Officer Shelby Overpeck Loan Officer

Karen Bryan Loan Officer Mistee Williams Asst. Head Teller Mikel Cauthon Network Administrator Linda Watson Imaging/Internet Banking Carla Howard Plastic Cards/Imaging Lucy Spoon Accounting Assistant Angela Perez Accounting Assistant Ebony Jarrett Loan Processor/Assistant Carol Williams Loan Processor/Assistant Tiera Lesley Branch Head Teller-Fritch Kristi Snow Branch Head Teller-WalMart Sarah Elliott Branch Head Teller-Pampa

Tellers Stevie Anderson Tonja Brown Amy Bustillos Yamile Carrasco Maranda Grimes Karen Hunter Charlotte Jasper Amanda Keeney Bethany McCarty Lilian Reasor Robyn Rohan Darla Schilling Krisha Temple Kara Tice Vanessa Vega Rebecca Wilson Nilzaida Wood Mandy Wyatt Kenny Green Facilities 9

Turn to Pantex FCU when buying a new or used vehicle!

Pantex FCU is offering great rates for qualified buyers on new or used cars, trucks, SUVs, motorcycles, boats, ATVs and other recreational vehicles. Plus, with Pantex FCU, members get the best service around. Ask about a pre-approval!

We make the process easy, apply in-branch or online today.

We are here to help!

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On behalf of the Credit Union Board of Directors, Supervisory Committee members, and staff, I welcome you to our 84th 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 2024 operations. As you will observe, 2024 continued our positive trend of successful outcomes. 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 higher interest rates, and a significant amount of uncertainty surrounding the economy. The enhancements to the products and services that we provide are focused on meeting the ever-changing needs of the membership and provide the best financial experience possible.

We continue to focus and commit to 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 you and your money safe. Our staff and leadership of Pantex Federal Credit Union continually provide the utmost level of service for our membership.

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, Harvey Hilbert, Chairman of the Board

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Pantex Federal Credit Union is committed to providing our members with the best member service experience possible, while bringing our community together.

We provide friendly, quality service to nearly 15,000 members, with convenience and accessibility to your financial needs. For over 84 years, Pantex Federal Credit Union has provided the financial services needed for our members to achieve their financial goals for the life that they desire. With moderate inflation and higher interest rates, 2024 proved to be a challenging year, but we were able to finish the year strong.

Our success in 2024 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 2025, we have many more 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. Our 2024 NCUA exam noted that Pantex FCU’s operations are sound. Our financial performance remains strong with a stable path for the future.

We appreciate the faith you place in us to meet your financial needs. We will continue to work hard to make Pantex Federal Credit Union your trusted financial partner for years to come. On behalf of our employees, the Supervisory Committee, and the Board of Directors, thank you for your membership and your continued support.

Respectfully submitted, Curtis Hall, President/CEO

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As members of your volunteer Board of Directors, we have the responsibility of ensuring that the credit union has a solid financial foundation and is operating in a safe and sound manner. 2024 was a good year in terms of building our financial strength. Steady interest income and controlled expenses helped us realize strong earnings. We were proud of our operations and remain incredibly grateful to our staff for their commitment to our members. Moderate inflation and higher interest rates were overcome by our team. We continue to provide you with great service and competitively priced products. We ended 2024 with over $229 million in assets, $64 million in loans, and over $186 million in shares. After paying dividends, we were able to positively contribute to our capital account.

Financially, 2024 was a good year. We were both profitable and efficient as we ended the year with over $1.6 million in Net Income and a 20.88% capital ratio.

Member Return:

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• Share dividends totaled $3,809,721.90, which represents a return to the membership of 31.70% of total operating income earned by the credit union in 2024 .

• Of the remaining income, 54.1% was distributed to the normal operating expenses of the Credit Union, and 14.2% 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, Lynn Hopkins Treasurer

The Lending Team at Pantex Federal Credit Union is privileged to work together, exchange ideas, and champion the financial needs of our membership. Our Loan Officers are responsible for objectively evaluating the financial needs of the members, while at the same time protecting the interest of the depositors/shareholders by making safe and sound lending decisions.

During the year 2024, Pantex FCU members received 1,772 loans totaling $30,310,892.11 in new loans. Total loans outstanding decreased 2.60% over the previous year.

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

It is an honor to serve our members with valuable, empathetic, and personalized loan solutions. As we look back on 2024, we optimistically turn the page with aspirations of a brighter year filled with continued commitment to serving the members of Pantex Federal Credit Union.

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, Dana Martin, Ginnie Karlin, Robert Forester, Karen Bryan, Shannon Mears, Shelby Overpeck, & Kristi Snow

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The Supervisory Committee is appointed annually by the Board of Directors in accordance with the Federal Credit Union Act. This committee serves as our members’ representative and is responsible for the oversight of credit union operations. They ensure that records are maintained accurately, and that there is compliance with all applicable regulations. The Supervisory Committee reviews and evaluates the overall financial operations and performance of the credit union, to ensure that the credit union conducts its operations and activities in a safe and sound manner.

To fulfill this responsibility, the Supervisory Committee contracts the auditing firm of Waypoint Advisory Services, Inc., to perform quarterly audits, and an annual review of agreed upon procedures, BSA/AML compliance, and an annual ACH review. As a result of these audits and reviews, it is the pleasure of the Supervisory Committee to report to you that the affairs of Pantex Federal Credit Union during 2024 have been conducted in a most professional manner and in accordance with prescribed standards and accounting practices. All credit union records were found to be current, accurate, complete, and in balance.

The credit union is also periodically examined by our Federal regulator, the National Credit Union Administration (NCUA). The last NCUA annual review in 2024 did not indicate any significant findings. The credit union has appropriate internal controls in place and maintains a strong capital position. Overall, the NCUA noted that the credit union’s operations are sound, and financial performance remains strong. The policies and practices of the Board of Directors have contributed to the continuing growth and improvement of services, which have been evident over the past several years.

We wish to commend the credit union staff for their efficient, attentive, and courteous service to the members. The cooperation and assistance that they have provided to the Supervisory Committee is greatly appreciated.

Effective planning and implementation of sound business practices give our members confidence in our credit union. We look forward to another great year for our members and our credit union, and we assure you that you can expect the same high level of service that you received in 2024.

Respectfully submitted, Tina Briscoe, Chairperson; Addison Killough, Member; Bruce Lemery, Member; Hailey Lisle, Member

In accordance with Pantex Federal Credit Union policy, 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 good credit standing: no criminal convictions; have 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.

Three 3-year terms and one unexpired seat are available for re-election on the Pantex FCU Board of Directors. The positions currently held by Glynn Carlock, Judy Flanders and Sara Ramby are up for election. One 1-year unexpired Board seat previously occupied by Allen Jenkins, is also up for election. Ralph Pumphrey was appointed to this seat in June 2024 and will also be up for election.

The Nominating Committee, composed of three Board members, met to discuss potential candidates, and has recommended that Glynn Carlock, Judy Flanders and Sara Ramby be elected to the Board of Directors for the three-year terms based on their past service, knowledge, and experience. The Nominating Committee has also recommended that Ralph Pumphrey be elected to the 1-year unexpired Board seat based on his 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 Nominating Committee recommends that the individuals named above be accepted by the membership.

Respectfully submitted, Harvey Hilbert, Chairperson Fran Braden, Member Lynn Hopkins, Member

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Statement of Income & Expenses Operating Income

December 31, 2024

Interest on Loans. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,710,425.92 . . . . . . .

$

4,185,677.02

Interest on Investments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5,135,382.64 . . . . . . .

3,697,072.95

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

2,171,798.25 . . . . . . .

2,473,049.11

Total Operating Income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 12,017,606.81 . . . . . . .

$ 10,355,799.08

$3,809,721.90 Total Share Dividends Paid 18

December 31, 2023

14.2% was placed in statutory reserves to keep the Credit Union capital levels strong.

54.1% was distributed to the normal operating cost of the Credit Union.

31.7% of total income earned was returned to the membership in the form of dividends.

Operating Expenses

December 31, 2024

December 31, 2023

Compensation & Employee Benefits. . . . . . . . . . . . . . . . . . . . $ 2,817,189.13 . . . . . . . . . $ 2,946,295.57 Travel & Educational Expenses . . . . . . . . . . . . . . . . . . . . . . . . .

5,402.60 . . . . . . . . .

11,442.60 Association Dues. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

13,386.30 . . . . . . . . . .

7,199.70 Office Occupancy Expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . .

303,750.69 . . . . . . . . .

289,811.14 Office Operations Expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . .

719,300.68 . . . . . . . . . .

685,121.35 Publicity and Promotional Expenses . . . . . . . . . . . . . . . . . . . .

34,165.02 . . . . . . . . . .

33,778.11 Loan & Plastic Card Servicing Expenses . . . . . . . . . . . . . . . . .

1,215,975.01 . . . . . . . . . .

1,169,905.55 Professional Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

994,119.97 . . . . . . . . . .

859,043.82 Provision for Loan Losses. . . . . . . . . . . . . . . . . . . . . . . . . . . . .

299,166.04 . . . . . . . . . .

39,641.60 Federal Supervisory Exam Expenses . . . . . . . . . . . . . . . . . . .

42,663.84 . . . . . . . . . .

38,249.64 Miscellaneous Operating Expenses. . . . . . . . . . . . . . . . . . . . . .

55,318.95 . . . . . . . . . .

49,757.02 Total Operating Expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6,500,438.23 . . . . . . . . . .

6,130,246.10

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

5,517,168.58 . . . . . . . . . .

Gain(loss) on Disposal of Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . (25,957.00) . . . . . . . . . .

Recovery of Previous Years Losses from Southwest Corporate CU Liquidation . . . . . . .

0.00 . . . . . . . . .

4,225,552.98 0.00

Dividend Expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,809,721.90) . . . . . . . . . .

(3,263,441.64)

Net Income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,681,489.68 . . . . . . . . .

$ 1,005,823.94

43,712.60

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Statement of Condition Assets

December 31, 2024

December 31, 2023

Loans(net). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 64,115,403.13 . . . . . . . . $ 65,825,484.45 Cash on Hand and in Banks . . . . . . . . . . . . . . . . . . . . . . . . . . .

3,671,635.81 . . . . . . . .

3,779,925.75

Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142,245,888.15 . . . . . . . .

132,420,626.92

Shares: Catalyst Corporate. . . . . . . . . . . . . . . . . . . . . . . . . . . .

10,413,823.65 . . . . . . . .

13,970,763.00

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

8,364,667.98 . . . . . . . .

7,939,003.24

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

94,093.85 . . . . . . . . .

94,083.85

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

712,533.22 . . . . . . . . .

724,610.74

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

271,754.43 . . . . . . . . .

257,637.06

Total Assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $229,889,800.22 . . . . . . . . . $225,012,135.01

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Liabilities and Equity

December 31, 2024

December 31, 2023

Accounts Payable/Items in Transit . . . . . . . . . . . . . . . . . . . . $ 1,774,028.27 . . . . . . . . $ 2,772,158.16 Accrued Liabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

429,333.55 . . . . . . . . .

369,582.79

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

2,203,361.82 . . . . . . . . .

3,141,740.95

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

186,737,562.17 . . . . . . . .

183,817,075.57

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

0.00 . . . . . . . . .

0.00

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

(6,202,595.76) . . . . . . . .

(7,416,663.82)

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

47,151,471.99 . . . . . . . . .

45,469,982.31

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

227,686,438.40 . . . . . . . . .

221,870,394.06

Total Liabilities & Equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . $229,889,800.22 . . . . . . . . $225,012,135.01

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Member NCUA

Branch Locations & Hours MAIN BRANCH 1300 W. Wilson Borger, Texas (806) 273-5692 Hours

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

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

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

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

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

Hours

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

Hours

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

Mailing Address: P O Box 5206, Borger, TX 79008 • Email:PFCU@PantexFCU.com • Website: www.PantexFCU.com

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