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ANNUAL REPORT

Tread Fearlessly

Driven by Innovation. Defined by Community.

Driven by Innovation.

Explore our 2025 Annual Report and see how innovation continues to shape the way Lookout Credit Union serves our members and communities.

Throughout the past year, we focused on improving the tools, partnerships, and programs that help our members move forward with confidence.

In 2025, Lookout Credit Union continued strengthening the member experience through thoughtful innovation. We launched a redesigned website to improve accessibility and navigation, optimized our mobile banking app to provide faster and more reliable digital tools, and modernized our approach to banking services by transitioning away from traditional ATM infrastructure in favor of stronger digital and branch-based solutions. Innovation also extended beyond technology and into the community. Lookout Credit Union partnered with Boise State University student athlete Julian Bowie, a Pocatello native, through a Name, Image, and Likeness (NIL) partnership focused on financial education and community engagement. This collaboration allowed us to connect with the next generation while reinforcing the importance of financial wellness. At the same time, we introduced Feature Fridays, a quarterly initiative designed to highlight key products and services while encouraging meaningful conversations between our team and the members we serve.

Behind every innovation is our commitment to community. In 2025, our Ranger Program continued to grow as employees and volunteers dedicated 1,801 hours of service across 28 organizations and 377 community activities. These efforts reflect the passion and generosity of the Lookout team and reinforce our belief that strong communities create stronger financial futures.

At Lookout Credit Union, innovation is not simply about technology. It is about finding better ways to serve, connect, and support the communities we proudly call home. As we continue to grow, we remain focused on delivering financial solutions that empower our members at every stage of life.

JULIAN BOWIE NIL DEAL

Lookout Credit Union forged an exciting new partnership with Julian Bowie, a standout student-athlete and local success story. A Pocatello native, Julian made headlines during his time at Pocatello High School, where he led the Thunder to a State Championship in basketball during his senior year.

This partnership marks an important expansion of Lookout Credit Union’s mission to enrich the lives of our members and the communities we serve. Through this collaboration, we aim to further promote financial well-being, foster market leadership, and increase brand awareness - all while supporting a student-athlete who exemplifies excellence both on and off the court.

“We’re excited to welcome Julian to the Lookout family. His leadership, both on and off the court, makes him an ideal partner to help us connect with the next generation on the importance of financial education,” said Lookout Credit Union VP of Marketing BJ Fillingame. “Julian is a shining example of the talent and heart found in the Pocatello community, and we’re proud to collaborate with him.”

Defined by community.

Giving Back and impacting our communities in 2025.

Rangers Community

DEFINED BY COMMUNITY

Our Rangers continue to tread fearlessly down paths with spirit and determination, serving as a positive force for good in the communities we cherish. Beyond the branches and after hours, we step up with heart to support the people, events, and causes that make our hometowns stronger and brighter. Together, through every act of kindness and shared effort, we show what it truly means for Lookout Credit Union to be defined by community.

Rangers

Changers. 1,801 VOLUNTEER HOURS

Feature Friday was created to turn team energy into real member impact through a simple, repeatable quarterly initiative. Each quarter, our branches highlighted a specific product or service while encouraging employees to start meaningful financial conversations with members.

By combining friendly competition with financial education, Feature Friday helped employees proactively introduce tools that improve financial wellbeing while strengthening collaboration and engagement across branches. The program reinforced our culture of service and ensured that member education remained part of everyday interactions.

BOARD CHAIR | CEO

2025 was an exciting year for Lookout Credit Union! At our core, we stand proudly as a member owned cooperative that is dedicated to providing fundamental banking needs while pouring our returns directly into our local communities. The executive team and the Board of Directors are honored to be part of a team full of coworkers and members who believe in and serve the cooperative mission. At Lookout, we truly are “Driven by Innovation,” but “Defined by our Community!”

In 2025, lending demand remained strong as we continue to expand our loan offerings and look for ways to customize our suite of products in an ever-changing market. Commercial Lending remains in high demand in our communities, and we expanded our business lending portfolio. We remain committed to providing products that help our members grow their savings, including enhanced dividends on our Money Market accounts. Although the real estate market continues to move slowly due to persistently high interest rates and increased values, we’re supporting members by helping them tap into their home equity through our amazing Home Equity Line of Credit. At the same time, we’re actively expanding our solutions to make homeownership more attainable while interest rates stay above expectations.

Our community volunteer program, the Rangers, continues to be a flagship leader in what it means to give back! In 2025, we set a new record for time given to improving and beautifying our communities. We volunteered a total of 1,801 hours! If that wasn’t already impressive enough, our members participated through our Community Rangers volunteer program, generously giving their time and energy to fill food baskets, clean up our roadsides, and support our local schools. We welcome and encourage any members who would like to join us in our mission to make Idaho an even better place to live.

BOARD CHAIR | CEO

As for being “Driven by Innovation,” we are continually improving the technology that makes access and convenience even easier for our members! Our streamlined online account opening process allows new members to join in just minutes. Through our mobile app, members can easily pay bills, transfer money to friends, and deposit checks - anytime, anywhere. At Lookout Credit Union, we are committed to making membership Rewarding, Fun, and Easy. As we upgrade and simplify our internal systems, our focus remains on creating an even better, more seamless experience for every member.

Thank you for your membership at Lookout Credit Union. We’re proud to serve you and we invite your friends and family who believe in building and strengthening local communities to join our growing cooperative. Idaho households and small businesses are the backbone of our state, and we are committed to supporting both. After all, we are a small business made up of 26,000 members across Idaho! Come “Tread Fearlessly” with us into the future!

DOUG CHAMBERS PRESIDENT | CEO

RENEE SPURGEON BOARD CHAIR

SUPERVISORY COMMITTEE

The Supervisory Committee for Lookout Credit Union is responsible for ensuring the protection of member assets, as well as sound operations and activities of Management and Board of Directors. Practices, procedures, financial reporting, and compliance are all subjected to independent audits and reviews.

The Supervisory Committee also:

Reviews internal controls

Recommends an external auditor to the Board of Directors

Reviews examination and audit findings and follow-up on any recommendations with management

Meet with the federal examiner upon request

Address member concerns with assigned staff

Attend Board meetings and report on activities

As required by Lookout Credit Union’s by-laws, Poston Denny & Killpack, PLLC, an independent accounting firm, recently completed an annual audit.

SUPERVISORY COMMITTEE

We have visited all branches this year for internal audits and appreciate the work of management and staff at the locations. We also appreciate the work of Headquarter Staff and Management and the Board of Directors.

Based on the results of all internal and external audits and examinations, it is the opinion of the Supervisory Committee that Lookout Credit Union continues to be financially strong, well-managed through sound policies and programs, and in compliance with applicable state and federal laws and regulations and the Credit Union’s by-laws.

--Roger Hernandez | Committee Chair SUPERVISORY COMMITTEE

Scott Moulton Committee

Tyler Moore Liaison

Dianna Burden Committee

Heather Murray Committee

Roger Hernandez

BOARD OF DIRECTORS

Renee Spurgeon Chair

Lisa Leyshon Director

Michael Thomas Director

Reese Jensen Vice Chair

KC Felt Treasurer

Les Hernandez Director

Debra Gerber Director

Tyler Moore Director

Mike Snyder Director

Lookout Credit Union’s Board of Directors is a group of highly experienced professionals responsible for the overall conduct, direction and stability of the credit union. They work collaboratively with the executive team to develop and implement Lookout Credit Union’s strategic plan.

BOARD TREASURER

2025 was a year of continued success for the credit union and our members. We continued to provide loan and savings products to help our members achieve their financial goals.

STATEMENT OF CONDITION

Loan demand remained steady throughout the year. Mortgage rates continued to be elevated, slowing lending in that category. Automobile lending and business lending continued to be strong. Overall, loan balances grew 0.81%, or $1.7 million as asset growth was still deliberately constrained. Delinquency continued to sit in a range more normal with pre-pandemic levels, but recovery rates increased for the year. The allowance for loan losses closed at $487,898. Deposits continued to flow to those accounts with higher yield, particularly money market and certificate deposits. Deposits decreased a modest 0.88%, or $2.3 million. During the year, remaining borrowings of $19 million related to the liquidity tightness of 2023 and 2024 were extinguished.

STATEMENT OF INCOME

2025 showed a net income of $2.1 million. Interest income slightly decreased $359,000 (-2.22%) from the prior year. Interest paid to members and on borrowings decreased $1.5 million (-25.75%). The decrease was primarily from savings on the extinguished borrowings. Provision for loan losses decreased $333,250 as delinquencies continued to be similar to pre-pandemic levels but recoveries improved. Non-interest income increased $3.2 million (59.7%) driven by structured sale/leasebacks of three locations to unlock equity and provide more flexibility with fixed assets. Non-interest expenses grew $1.4 million (9.15%). This increase was driven by increased salary and benefits and costs associated with the sale/leaseback transactions. The challenge for 2025 was to continue to re-position capital and the balance sheet following the upheavals of rate increases and liquidity tightening of the prior years. Plans to address these challenges came to fruition and we were able to improve the capital position of the credit union while still providing vital services to our membership. Looking ahead, the credit union is poised to remain the trusted financial partner our members need and deserve.