Triangle Credit Union 2023 Annual Report

2023 ANNUAL REPORT

PRESIDENT’S MESSAGE We have weathered many financial storms over the years, and 2023 proved challenging for the financial industry. These challenges caused many financial institutions, including Triangle Credit Union, to focus on economic stability, sustainability, and soundness.

Looking to 2024, we anticipate a stronger economy with reduced inflation, which is great news for all of us.

Whether we have a challenging or prosperous year, Triangle leans on our core values and strategic anchors to guide us in servicing our members and community. As a team, we have embraced these values and anchors, which have defined our corporate culture to increase transparency, communication, employee participation, member focus, and financial awareness.

In 2024, we will continue to develop our culture and dedicate resources to employee development at all levels of the organization. Our focus will be to enhance our comprehensive financial products and services and offer our members personalized financial solutions and education.

We will expand our digital banking

Core Values

and technology with Interactive Teller Machines (ITMs) at our drive-ups in Derry and Candia Road branches and enhance our infrastructure to support initiatives in cybersecurity, workforce evolution, enterprise risk, network capabilities, disaster recovery, and a new core system.

I am excited about this new year and believe these initiatives will position TCU for growth and future success.

On behalf of myself and the Senior Management Team, I want to thank our employees for their daily commitment to service excellence, the Board of Directors and Supervisory Committee for their continued guidance, and our members for your support—you have many financial service choices, and we’re glad you choose Triangle Credit Union.

Sincerely, A. Scott MacKnight CEO/President

Community: We are actively involved in our communities by providing resources that promote engagement and success.

Diversity: We welcome all groups and individuals desiring to be part of our mission to build unity by embracing and supporting all cultures.

Service: We connect with our members and employees by respectfully committing to their needs while adhering to Service Strategies Standards.

CHAIR’S MESSAGE It is my privilege to provide Triangle Credit Union members with an annual review of the credit union activities for the past year. While it has been a difficult year for the financial industry, Triangle has achieved notable progress in accomplishing its strategic initiatives, thereby demonstrating strong management in a challenging economy.

Triangle focused on financial technology (fintech) improvements and improving member experience when utilizing our products. In the technology sector, new Interactive Teller Machines (ITMs) were installed at the Franklin Street, Nashua and Amherst Street, Amherst branches.

In addition, the online and mobile banking platforms introduced the newest person-to-person service, PayItNow; began rolling out a new Online Business Banking platform and added Spanish as a preferred language within Online and Mobile Banking.

For strategic growth, deposit initiatives were targeted throughout the year. Other initiatives focused on increasing products and services to grow the business and brand, including collaboration between departments to reintroduce in-person business visits and creation of new financial literacy resources.

Community outreach was in full-swing in 2023 and the Credit Union was delighted to support many area events and activities, including Nashua’s SummerFun series, Kids Fest, Make-A-Wish, Salvation Army’s AppleFest, and the Boys & Girls Club of Greater Nashua and Manchester to name only

a few. Triangle understands the importance of contributing to local communities and how it galvanizes deeper relationships with its members and demonstrates dedication to the areas the Credit Union serves. Triangle received accolades as Best Credit Union in the Greater Nashua area, Best Credit Union within the Souhegan Valley, Best of NH, and Best of the 603. These awards recognize the exemplary manner in which Triangle provides services to its members and how the Credit Union serves as an outstanding corporate citizen within the communities it serves. On behalf of the Board, I would like to thank Triangle staff for their effort and enthusiasm in making us the best Credit Union in NH. I would also like to thank our management team for their commitment and diligence, and to our members—thank you for your continued support.

Sincerely, Margo Compagna Board Chair

TREASURER’S REPORT On behalf of the Board of Directors, I am pleased to report Triangle Credit Union ended the fiscal year 2023 in a firm financial position despite a challenging year.

Loan originations in 2023 were $95.8 million, attributed to several external factors impacted by consumer and commercial lending during the year.

Although our market area experienced a low inventory of new and used homes and high mortgage interest rates, we continued to serve our homeowners, originating $20.6 million in residential mortgages. Home equity lines of credit (HELOC) grew by $10.1 million from 2022 through new originations and the use of existing lines. Higher interest rates impacted our members with purchases of vehicles totaling $31.5 million, a decrease from the prior year.

Commercial lending remained strong, with new loans totaling $26.8 million.

Overall, the Credit Union ended the year with a loan balance of $619.2 million, a decrease of $42.7 million or -6.43% compared to the prior year.

Members took advantage of our higher earning certificates of deposits, increasing balances in 2023 by $62.3 million. Other share products saw a decrease from 2022 of $98.7 million under the pressure of inflation and a high-interest rate environment.

Total assets decreased -5.58% to $865.8 million. Net income for the year was $987 thousand, primarily due to the slowing of loan and deposit growth.

Non-interest income and operating expenses were in line with the prior year.

The credit union maintained a low delinquency ratio of 0.41% and a charge-off ratio of 0.11% at year-end; both ratios align with industry standards.

On behalf of the credit union, I would like to express my sincere thanks and appreciation to our elected officials, committee members, and volunteers for their dedication and support to the management team and our employees for their continued service to our members.

Respectfully submitted, David Fredette Treasurer

SUPERVISORY COMMITTEE The Supervisory Committee of a credit union is tasked to perform and oversee audits. These reviews consist of audits of the institution’s practices, as well as a year-end examination of our books.

As Triangle Credit Union (TCU) continues to grow, the oversight by federal and state regulators increases. TCU uses the accounting firm of Shatswell, MacLeod & Company to conduct comprehensive internal audits of our policies and procedures. The audits are conducted over the course of our fiscal year. The Committee tracks these reports and any findings and reviews any action items they identify with the Management Team.

I am proud to inform our members that TCU continues to perform in an exemplary manner.

This past year we also conducted the Biennial verification of member accounts. As part of this process, each member was asked by us to review their month-end June 2023 statements and inform us of any discrepancies. I am pleased to inform you that findings from the verification were positive, and that there were no issues worthy of note.

Our annual examination of our financial books was conducted by Baker, Newman, Noyes. After an extensive review, they found that for 2023, we were in compliance with “generally accepted accounting principles,” and that our financial statements were correct.

The Committee was pleased to welcome a new member this past year. Mariana Silva filled the vacancy created by the passing of long-time member Ron Rioux.

All of what has been accomplished is due in no small part to the outstanding work of the TCU Management Team, our dedicated employees and the TCU Board of Directors. The committee wishes to thank all of them for their hard work and cooperation throughout this past year.

As chair, I would also like to thank the members of the Supervisory Committee for their efforts during this past year. I can assure you our members, that they are dedicated to serving you and the credit union.

Respectfully, Ed Lecius, Chair Derek Danielson Dick Lavoie Jack Monahan Mariana Silva

BALANCE SHEET - 5 YEAR HISTORY 2019

2020

2021

2022

2023

OTHER LOANS

$274,173,894.69

$247,872,996.34

$242,420,691.43

$311,136,549.46

$239,925,209.91

FIRST MORTGAGES

$184,258,582.66

$164,006,621.01

$151,491,688.05

$175,625,299.85

$188,293,740.54

BUSINESS/COMMERCIAL LOANS

$88,261,397.94

$98,325,158.11

$91,139,238.43

$113,708,853.71

$120,422,580.11

ASSETS

SECOND MORTGAGES

$2,557,470.29

$1,809,061.25

$1,293,216.76

$1,073,500.25

$827,717.03

HOME EQUITY

$52,882,255.95

$44,885,727.36

$45,651,969.41

$60,306,182.55

$69,713,025.88

TOTAL LOANS

$602,133,601.53

$556,899,564.07

$531,996,804.08

$661,850,385.82

$619,182,273.47

LESS RES. FOR LOAN LOSSES

($2,306,217.07)

($2,803,145.38)

($2,291,083.18)

($2,656,975.53)

($2,354,272.66)

NET LOANS

$599,827,384.46

$554,096,418.69

$529,705,720.90

$659,193,410.29

$616,828,000.81

DUE FROM BANKS

$83,420.21

$120,202.85

$19,429.19

$72,029.07

$0.00

TELLER/VAULT CASH

$4,298,605.86

$4,146,348.95

$4,272,688.60

$4,632,291.90

$5,369,626.46

CHECKS IN PROC OF COLL.

$1,971,771.75

$1,628,835.32

$2,436,624.60

$2,296,852.99

$2,370,310.01

AGENCY & US SEC.

$43,006,595.04

$48,683,286.77

$165,689,952.31

$188,578,406.71

$176,098,747.14

CORPORATE & FHLB

$22,726,772.32

$162,256,255.71

$127,533,269.97

$13,585,458.27

$19,514,124.46

SAVINGS. CERTIFICATES

$6,978,212.49

$18,157,010.63

$9,574,082.16

$7,104,195.72

$3,990,212.49

CASH:

INVESTMENTS:

CORPORATE BONDS & EQUITIES

$15,616,613.95

$5,557,850.68

$3,572,056.21

$3,593,133.66

$3,629,306.84

TOTAL INVESTMENTS

$88,328,193.80

$234,654,403.79

$306,369,360.65

$212,861,194.36

$203,232,390.93

PREPAID EXPENSES

$1,876,408.48

$2,501,943.33

$4,475,900.63

$4,011,978.24

$3,759,766.30

ACCRUED INCOME

$1,678,936.97

$1,361,877.28

$1,378,929.80

$2,119,599.05

$2,386,881.76

FIXED ASSETS

$11,477,097.51

$11,439,974.15

$10,776,449.60

$10,419,277.76

$10,480,525.96

NCUA INS. FUND

$5,409,404.31

$6,061,098.93

$6,705,324.93

$6,731,742.53

$6,131,953.45

OTHER ASSETS

$5,978,224.15

$10,600,069.28

$11,104,732.68

$14,570,028.96

$15,207,321.86

PROPERTY IN PROCESS OF LIQ.

$404,943.25

$151,698.18

$34,887.98

$43,602.53

$37,695.37

$721,334,390.75

$826,762,870.75

$877,280,049.56

$916,952,007.68

$865,804,472.91

$1,444,093.25

$1,123,069.62

$1,412,380.72

$6,369,003.01

$7,100,309.31

$9,704.59

$9,934.66

$37,346.67

$35,042.48

$44,298.26

TOTAL ASSETS LIABILITIES ACCOUNTS PAYABLE TAXES PAYABLE BILLS PAYABLE

$954,277.05

$917,282.24

$1,040,328.25

$972,446.95

$618,359.91

BORROWED FUNDS

$70,935,035.68

$64,554,493.90

$60,450,000.00

$153,450,000.00

$131,339,936.52

OTHER LIABILITIES

$1,781,191.90

$3,179,203.94

$3,583,500.23

$3,646,292.49

$3,188,389.17

$59,644,750.38

$86,356,302.19

$89,885,374.95

$91,029,776.81

$88,497,584.61

DEPOSITS: SHARE DRAFTS IRA'S

$40,291,035.86

$39,117,860.62

$36,110,306.37

$31,240,277.22

$31,272,070.66

CERTIFICATES

$210,883,642.88

$177,412,673.64

$133,120,617.12

$125,787,867.26

$184,822,145.80

REGULAR SHARES

$191,117,139.81

$263,634,310.45

$318,270,132.12

$312,717,192.95

$260,417,469.14

MONEY MARKET

$57,412,289.38

$79,441,538.24

$106,952,562.09

$77,293,181.75

$45,446,847.92

BUSINESS ACCOUNTS

$34,690,452.92

$56,929,843.79

$67,531,626.03

$67,221,858.96

$58,476,164.72

TOTAL SHARES

$594,039,311.23

$702,892,528.93

$751,870,618.68

$705,290,154.95

$668,932,282.85

REGULAR RESERVE

$8,198,842.64

$8,198,842.64

$8,198,842.64

$8,198,842.64

$8,198,842.64

UNDIVIDED PROFIT

$48,640,775.59

$51,178,533.98

$54,530,868.46

$56,521,420.42

$57,508,542.71

UNREALIZED GNS/LSS ON INVEST.

$221,934.82

$331,688.84

$1,373,756.91

($12,294,687.26)

($5,881,554.46)

UNREALIZED PENSION OBLIGATIONS

($4,890,776.00)

($5,622,708.00)

($5,217,593.00)

($5,236,508.00)

($5,244,934.00)

TOTAL CAPITAL

$52,170,777.05

$54,086,357.46

$58,885,875.01

$47,189,067.80

$54,580,896.89

TOTAL LIABILITIES & CAPITAL

$721,334,390.75

$826,762,870.75

$877,280,049.56

$916,952,007.68

$865,804,472.91

CAPITAL:

PROFIT & LOSS STATEMENT - 5 YEAR HISTORY 2019

2020

2021

2022

2023

INTEREST ON LOANS

$24,351,644.78

$23,394,281.72

$20,917,232.30

$21,014,387.59

$27,264,792.78

INCOME FROM INVESTMENTS

$1,736,288.54

$1,294,278.36

$830,416.82

$2,237,672.34

$2,914,416.24

SHARE DRAFT FEES

$1,472,203.50

$1,089,463.46

$1,201,506.59

$1,497,081.60

$1,596,149.49

DEBIT CARD/ATM FEES

$2,474,766.23

$2,728,269.87

$3,318,890.21

$3,453,562.93

$3,220,760.14

ACCOUNT MAINTENANCE FEES

$511,423.58

$509,727.97

$512,591.70

$506,741.44

$1,731,167.88

OTHER FEE INCOME

$1,376,417.63

$2,061,534.95

$1,477,450.66

$1,418,238.44

TOTAL OPERATING INCOME

$31,922,744.26

$31,077,556.33

$28,258,088.28

$30,127,684.34

$37,204,564.27

COMPENSATION

$9,222,282.83

$10,655,606.60

$9,751,057.28

$10,392,557.69

$9,817,408.57

EMPLOYEE BENEFITS

$3,065,707.38

$3,103,110.73

$3,297,020.54

$3,555,931.36

$3,722,745.45

TRAVEL AND CONFERENCES

$176,446.34

$62,515.48

$82,089.27

$132,892.51

$185,218.66

ASSOCIATION DUES

$53,318.73

$54,531.09

$56,198.64

$61,281.10

$62,487.96

OFFICE OCCUPANCY EXPENSES

$1,489,620.92

$1,703,158.76

$1,691,335.96

$1,718,961.25

$1,793,820.81

OFFICE OPERATIONS EXPENSES

$4,688,656.67

$5,021,107.94

$5,501,294.21

$5,887,387.63

$5,451,545.07

ADVERTISING & PROMOTION EXPENSES

$264,131.17

$208,200.84

$213,332.48

$267,613.28

$262,397.41

LOAN SERVICING EXPENSES

$410,920.56

$439,343.77

$367,735.13

$377,632.86

$337,525.56

PROFESSIONAL AND OUTSIDE SERVICES

$709,001.80

$361,563.21

$586,196.01

$555,329.73

$1,451,796.52

PROVISION FOR LOAN LOSSES

$839,000.00

$1,117,000.00

($102,420.11)

$799,800.00

$409,934.00

FED. SUPERVISION & EXAMS

$162,202.96

$180,463.34

$275,846.53

$213,350.01

$175,487.10

CASH OVER AND SHORTS

($841.28)

$3,657.18

$2,446.44

$8,017.86

$5,477.72

ANNUAL MEETING EXPENSES

$6,217.07

($4,720.13)

$100.00

$0.00

$0.00

MISC OPERATING EXPENSES

$284,343.39

$53,127.74

$144,145.52

$83,208.96

$50,470.04

FASB 91 ORIGINATION COST

($498,339.82)

($571,219.15)

($535,546.84)

($514,366.44)

($226,227.36)

TOTAL OPERATING EXPENSES

$20,872,668.72

$22,387,447.40

$21,330,831.06

$23,539,597.80

$23,500,087.51

INCOME (LOSS) FROM OPERATIONS

$11,050,075.54

$8,690,108.93

$6,927,257.22

$6,588,086.54

$6,588,086.54

GAINS (LOSSES) ON INVESTMENTS

$711,568.60

($600,020.15)

($3,395.70)

$76.19

($147,632.44)

GAINS (LOSSES) ON DISP. OF ASSETS

$25,907.98

($21,073.64)

$108,404.32

$10,859.49

$2,487.61

GAINS (LOSSES) ON SALE OF MORTGAGES

$247,364.24

$2,279,936.23

$764,682.21

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

INCOME

OPERATING EXPENSES

NON-OPER. GAINS (LOSSES)

NCUA IMPAIRMENT/ASSESSMENT FEE EXPENSES ON O.R.E.O. TOTAL NON-OPERATING GAINS (LOSSES)

$984,840.82

$1,658,842.44

$1,553,602.68

$10,935.68

($145,144.83)

INCOME (LOSSES) BEFORE DIVIDENDS

$12,034,916.36

$10,348,951.37

$8,480,859.90

$6,599,022.22

$13,559,331.93

INTEREST ON BORROWED FUNDS

$1,689,201.38

$1,516,494.32

$1,312,948.65

$1,857,935.74

$4,718,580.33

DIVIDENDS

$6,773,285.79

$6,294,698.66

$3,815,576.77

$2,750,534.52

$7,853,629.31

NET INCOME (LOSS)

$3,572,429.19

$2,537,758.39

$3,352,334.48

$1,990,551.96

$987,122.29

KEY OPERATING STATISTICS - 5 YEAR HISTORY 2019

2020

2021

2022

2023

National Ave as of 9/2023

LOAN DELINQUENCY RATIO

0.3%

0.6%

0.2%

0.2%

0.4%

0.7%

YIELD ON AVERAGE LOANS

4.1%

4.0%

3.8%

3.5%

4.3%

5.1%

YIELD ON AVERAGE INVESTMENTS

2.3%

0.8%

0.3%

0.9%

1.4%

4.5%

RETURN ON INCOME/AVERAGE ASSETS

4.6%

4.0%

3.3%

3.4%

4.2%

5.5%

COST OF FUNDS/AVERAGE ASSETS

1.2%

1.0%

0.6%

0.5%

1.4%

1.3%

GROSS SPREAD

3.3%

3.0%

2.7%

2.8%

2.8%

4.1%

OPER. EXPENSES/AVERAGE ASSETS

3.0%

2.9%

2.5%

2.6%

2.6%

2.9%

NET INCOME/AVERAGE ASSETS

0.5%

0.3%

0.4%

0.2%

0.1%

0.7%

CAPITAL/ASSETS (NET)

7.6%

6.9%

7.0%

5.4%

6.6%

11.0%

DEPOSIT GROWTH (%)

5.7%

18.3%

7.0%

-6.2%

-5.2%

1.7%

LOANS

76.3%

75.3%

74.0%

69.7%

73.3%

63.3%

INVESTMENTS

5.4%

4.2%

2.9%

7.4%

7.8%

13.3%

ALL OTHER

18.3%

20.6%

23.0%

22.8%

18.9%

20.4%

CD'S / TOTAL DEPOSITS

35.5%

25.2%

17.7%

17.8%

27.8%

23.6%

IRA'S / TOTAL DEPOSITS

6.8%

5.6%

4.8%

4.4%

4.7%

4.5%

CHECKING / TOTAL DEPOSITS

10.0%

12.3%

12.0%

12.9%

13.2%

20.1%

SAVINGS / TOTAL DEPOSITS

32.2%

37.5%

42.3%

44.3%

38.9%

31.4%

MONEY MARKET / TOTAL DEPOSITS

9.7%

11.3%

14.2%

11.0%

6.8%

18.1%

BUSINESS DEPOSITS / TOTAL DEPOSITS

5.8%

8.1%

9.0%

9.5%

8.7%

2.2%

SOURCES OF INCOME % OF TOTAL

DEPOSIT MIX

BOARD OF DIRECTORS

Margo Compagna

Robert Demers

Mark Richardson

Rebecca MacLennan

David Fredette

Chair

1st Vice President

2nd Vice President

Secretary

Treasurer

David Degulis

Bob Duhaime

Lillian Rodriguez

Adeel Tahir

Director

Director

Director

Director

SUPERVISORY COMMITTEE

Ed Lecius

Derek Danielson

Richard Lavoie

Jack Monahan

Mariana Silva

Chairman

Committee Member

Committee Member

Committee Member

Committee Member

SENIOR MANAGEMENT

A. Scott MacKnight

Pamela Ford

Jose Rivera Hernandez

Karin Taylor

CEO/President

SVP Lending

SVP Information Technology SVP Human Resources

Rebecca Thomas

Lisa VanBiene

Karen Wood

John Ziemba

SVP Marketing

SVP Member Services

SVP Chief Financial Officer

SVP Commercial Services

TRIANGLE FINANCIAL GROUP

Brian Luce

Jeff Mayer

VP Triangle Financial Group Financial Advisor

Paola Gutierrez

Curtis Barnes

Kelley Brown

Licensed Insurance Agent

Executive Assistant

Office Practice Manager

MANAGEMENT

Lana Dal Molin

Michelle Ducharme

Heather Hebert

Roxanne Nelson

Ryan Ruggiero

VP of Community Outreach and Sales Franklin St., Nashua, NH

AVP Member Experience Temple St., Nashua, NH

AVP Operations Temple St., Nashua, NH

AVP of Mortgage Lending Franklin St., Nashua, NH

AVP Contact Center Temple St., Nashua, NH

Lyn Anderson

Muhammad Ali

Kathy Card

Terri Connolly

Mayra Dominguez

Branch Manager Elm St., Manchester, NH

Consumer Lending Manager H.R. Manager Temple St., Nashua, NH Temple St., Nashua, NH

Marketing Manager Temple St., Nashua, NH

Accounting Manager Temple St., Nashua, NH

David Helie

Samantha Herod

Seana Hill

Angela Johnson

Nathalie Letourneau

Facilities Manager Temple St., Nashua, NH

Project Manager Temple St., Nashua, NH

Branch Manager Franklin St., Nashua, NH

Branch Manager DW Hwy, Merrimack, NH

Branch Manager Windham Rd., Derry, NH

Ivan Rochford

Marcel Sánchez Galindo Anabel Ulloa

Lisa Ward

Branch Manager Route 101A, Amherst, NH

Branch Manager Candia Rd., Manchester, NH

Information Technology Manager Franklin St., Nashua, NH

Branch Manager DW Hwy, Nashua, NH

SUPPORTING OUR COMMUNITIES

1

OVER 52 DONATIONS & SPONSORSHIPS IN 2023 Triangle Credit Union is a proud sponsor of over 65 community initiatives and organizations in 2023. Some of these include

2

•

Boys & Girls Club of Nashua

•

Salvation Army

•

The Front Door Agency

•

Make-A-Wish NH

•

The Nashua Center for the Arts

•

and more!

ANGEL TREE TAG Angel Tree is an outreach of The Salvation Army of Greater Nashua.

In 2023, the Angel Tree Tag program assisted over 1,100 families in need of additional support during the holiday season.

AWARDS

COMMUNITY INVOLVEMENT In addition to our sponsorships and donations, Triangle Credit Union is involved in our community through volunteerism at local events, festivals, parades, and fundraisers.

Nashua Pride

Apple Fest

Gate City Brew Fest

Trunk-or-Treat

Nashua Goes Back to School

Wheels & Wings

Cigna/Elliot Road Race

SBA Lending Expo

Special Olympics Sponsorship

Nashua Winter Holiday Stroll

CMC Gala

Rob Doherty Recognized at Gateways Annual Fundraiser

Multicultural Festival

Financial Resources At Your Fingertips.

Triangle Credit Union’s dedicated website for financial education.

Weekly Blogs

Webinars & Workshops

Videos & Reels

Community Events

Make Your Money Personal.

Join us for fun, relevant financial topics that provide resources to help you make financial decisions. The Making Money Personal Podcast talks about the impact that money has on your personal and professional life. Our podcast examines trends and topics with support from industry professionals.

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NMLS# 528721 Your savings federally insured to at least $250,000 and backed by the full faith and credit of the United States Government

National Credit Union Administration, a U.S. Government Agency

trianglecu.org (603) 889-2470