Positioned Well for the Changing Economy

STRONG LOAN GROWTH—NWCU experienced strong loan growth in 2022, with the loan portfolio increasing by $254 million over the prior year. This growth assisted the Credit Union to deploy excess liquidity which had built up during the pandemic. These factors yielded a Return on Average Assets of 0.77%, with a low Operating Expense Ratio of 2.82%. The increase in interest income and operational efficiencies allowed NWCU to maintain a low operating cost which produced a Net Worth Ratio of 9.92%. NWCU earnings on loans and investments are projected to increase in 2023 by approximately 28% which will increase net income by approximately 4.5%.

THE HIGH INFLATION AND HIGH-RATE ECONOMY—In

April 2022, the Federal Reserve started its rate hike campaign to combat inflation. NWCU aggressively repriced both lending and deposit products to control interest rate risk while remaining competitive. At year-end, interest rates were at a twenty-year high. This high yield environment allowed the Credit Union to realize an additional $6 million in interest income from loans and investments with a net income of $13.9 million, $2.7 million over our budgeted net income. This income allowed NWCU to make additional contributions to our local communities and positioned us well for 2023 and any economic challenges ahead.