2022 Annual Report

You make us who we are.

It’s True.

2022 ANNUAL REPORT

Contents Report of the President & CEO . . . . . . . . . . . . . . . . . . . . . . . . . 3 Report of the Board of Directors . . . . . . . . . . . . . . . . . . . . . . . . 4 Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Leadership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Report of the Supervisory Committee . . . . . . . . . . . . . . . . . . . 12 2022 Charitable Donations . . . . . . . . . . . . . . . . . . . . . . . . . . 13 For Community, By Community . . . . . . . . . . . . . . . . . . . . . . . . 14 Products & Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

REPORT OF

The President & CEO According to industry call report data at the close of 2022, TruStone was the fastest growing credit union of our size in the nation. While I am honored by the distinction, I can’t say that I am surprised. Years ago, the board, management and staff of TruStone set out to be the best of the best, and it is clear that those who do business with us would agree.

Reflecting on what got us here, there are many actions, individuals, and teams that I could point to as contributors to our success. But as I draft that mental list, it quickly becomes clear that what I am compiling is a manifestation of our Core Values, put to action. Such values are at the heart of the member experience that we strive to deliver each and every day:

Integrity.

delivered member convenience, while the launch of our free TruPayday

We act in the best interest of our members.

Maintaining a strong financial position is imperative to acting in your best interest. Doing so allows us to provide you with an abundance of competitively priced services. It also enables us to keep your funds safe and your personal information secure.

Collaboration.

service provided members with their direct deposit up to two days earlier than before.

Energy.

Be tireless in our pursuit of excellence.

Our staff is genuinely enthusiastic to serve members. That desire to help others extends beyond our office doors, and is evident in the time and

Think independently. Work collectively.

By year end, TruStone’s operational efficiency was the best in recent history, a feat that is only possible when your board, management and staff work with synergy. When we all share the same vision – delivering an exceptional experience – that focus is realized.

Simplicity.

dedication TruStone employees put toward our larger community. During a single day of giving last fall, over 450 of our employees volunteered at 27 local charities, making a truly impactful difference to those in need.

Continuous Improvement.

Demonstrate an eagerness to learn and evolve.

Being recognized as the fastest growing credit union is no reason to rest

Deliver frictionless service. Be easy to work with.

Over 110,000 TruStone members do business with their credit union through digital channels. 2022 investments in person-to-person transfers, online mortgage applications and loan refinance tools

on our laurels. Instead, we continue to listen to your feedback as we make investments for the betterment of our membership. In 2023 that includes improvements to online chat, a robust new card rewards program, and a new branch location for our members in Coon Rapids.

Our accomplishments are especially noteworthy when considering the challenges of our economic environment. As inflation persists and a potential recession looms, know that TruStone will continue to earn your business by providing best in class products, competitive pricing, and exceptional service.

Dale Turner

PRESIDENT & CEO

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2022 TRUSTONE ANNUAL REPORT

REPORT OF

The Board of Directors TruStone’s mission is to engage, educate and inspire our

A growing number of members prefer to do business with

members to achieve lifelong financial well-being. The

us without the human touch, utilizing our popular digital and

role of your board of directors is to execute that mission

mobile services. These members see value in convenient

by collaborating with management to build an effective

applications, consistent access, and user-friendly tools.

business strategy.

In 2022 TruStone launched new programs designed to simplify vehicle refinancing, to effortlessly send and receive

There are many possible pathways to success. After careful

money to friends and family, and to provide fast and timely

consideration, your board chose two:

communication with your mortgage loan officer.

The first is Strong Financial Performance. Credit unions,

And there are many more ways to define value: A healthy

like TruStone, are not-for-profit financial cooperatives.

return on your federally insured investment. Credit and debit

Unlike for-profit banks, we exist first and foremost for the

cards that reward you for your loyalty. A neighborhood credit

benefit of the members we serve. Too often that is confused

union that reinvests in our communities with a generous

with the notion that strong financial performance must be

foundation and a commitment to financial education.

sacrificed to deliver true member benefit.

Your board of directors is confident that our chosen On the contrary, it is a strong balance sheet that enables us

pathways can work in harmony to achieve our mission.

to better serve you. A healthy bottom line can be reinvested

We routinely see evidence of it, regularly reviewing measures

in the credit union, providing you with more branches, better

of financial performance and member value. We also know,

services, competitive pricing, and digital convenience. Further,

however, that this is a mission without an end. We can always

our financial strength enables us to maintain a financial

do better, and we will always strive to do so. This is our

institution that is safe and secure. As recent high-profile

commitment to you.

bank failures test the public’s confidence in their financial institutions, our members can be comforted by the fact that TruStone is a well-capitalized, well-managed credit union.

Our second pathway to success should come as no surprise: Strong Member Value. With over 210,000 members choosing to do business with us, member value can be defined many different ways. To many, we deliver value best with a welcoming branch atmosphere, responsive team members, and dedicated loan officers.

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2022 TRUSTONE ANNUAL REPORT

John Christenson CHAIR

Balance Sheet

($ IN THOUSANDS)

ASSETS Loans, net Cash & Investments Property and Equipment, net

2022 $

3,616,147 775,724 51,431 171,367

$

2,817,264 945,230 53,662 163,611

$

4,614,668

$

3,979,767

$

3,785,244 378,000 64,020

$

3,466,534 42,500 55,654

Other Assets Total Assets

2021

LIABILITIES AND MEMBERS’ EQUITY Member Shares Borrowed Funds Other Liabilities Total Liabilities

4,227,264

3,564,688

Members’ Equity

387,404

415,079

Total Liabilities and Members’ Equity

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2022 TRUSTONE ANNUAL REPORT

$

4,614,668

$

3,979,767

Income Statement

($ IN THOUSANDS)

NET INTEREST INCOME Loans Investments Dividend/Interest expense

2022

2021

$

132,805 22,180 33,160 6,925

$

107,796 9,450 13,415 4,679

$

114,900

$

99,152

Loan sale and servicing income Service fees Other non-interest income

$

9,888 12,083 13,646

$

23,411 12,662 8,330

Total Non-Interest Income

$

35,616

$

44,403

Compensation and benefits Occupancy and office operations Other

$

55,969 20,985 17,087

$

61,267 20,568 17,111

Total Non-Interest Expense

$

94,042

$

98,946

$

56,475

$

44,609

Provision for loan losses Net Interest Income

NON-INTEREST INCOME

NON-INTEREST EXPENSE

Net Income

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2022 TRUSTONE ANNUAL REPORT

Member Service

9.66

209,060 SATISFACTION SCORE

TOTAL MEMBERS

535

9.64

EMPLOYEES

MEMBER EFFORT

22

BRANCHES

9.68

OVERALL EXPERIENCE

Member service scores based on 10-point scale

*

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2022 TRUSTONE ANNUAL REPORT

Total Assets

$16,965 AVERAGE SHARES PER MEMBER

$28,745 AVERAGE LOAN OUTSTANDING

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$3.55 B

$3.98 B

$4.61 B

2020

2021

2022

2022 TRUSTONE ANNUAL REPORT

Member’s Equity ($ in thousands)

$1,853

EQUITY PER MEMBER

1.31%

RETURN ON ASSETS

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$380,109

$415,079

$387,404

2020

2021

2022

2022 TRUSTONE ANNUAL REPORT

Leadership BOARD OF DIRECTORS

John Christenson Chair Kevin Crane Vice Chair Anne Ziebell Secretary Doug Nesbit Treasurer

ASSOCIATE DIRECTORS

Thomas Alagna Steve Bohlig Steve Hunziker Evelyn Jones Darrick Metz James Sackett Sam Stern Jennifer Whitlock Bruce Whitmore

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2022 TRUSTONE ANNUAL REPORT

Lori Bonin

Leadership EXECUTIVE MANAGEMENT TEAM

SUPERVISORY COMMITTEE

Dale Turner President and Chief Executive Officer

Brian Lee Committee Chair

Nathan Grunzke EVP/Chief Mortgage Officer

Bob Larson Secretary

Cole Hahn EVP/Chief People Officer

Esmail Harunany

Hans Iverson EVP/Chief Operations Officer Gary Jeter EVP/Chief Technology Officer Martin Kelly EVP/Chief Marketing Officer Steve Steen EVP/Chief Retail Officer Phil Young EVP/Chief Legal Officer Daniel Zaczkowski EVP/Chief Financial Officer

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2022 TRUSTONE ANNUAL REPORT

Teena Liu Lenny Newman

REPORT OF

The Supervisory Committee Recent events in the banking sector are a stark reminder of the importance of safety and soundness in the financial system. This is the primary responsibility of the Supervisory Committee: to oversee the credit union’s internal controls that safeguard your finances and personal information.

We take that responsibility seriously, engaging a variety of internal and external industry experts to conduct comprehensive audits of our financial, administrative and operational practices.

In 2022, TruStone received thorough examinations from both the Minnesota Department of Commerce and the National Credit Union Administration (NCUA), which confirmed our belief that we are a strong, healthy credit union, well-equipped to accomplish our mission and vision for our members. Additionally, we engaged an industry-leading independent public accounting firm to perform our financial statement audit in accordance with regulatory requirements.

Their audit opinion states that our financial position and results of operations are fairly presented in accordance with generally accepted accounting principles.

Finally, we employ experienced internal auditors to regularly review all aspects of our organization, with no material exceptions or weaknesses found in our systems during the year under review Over 210,000 loyal members is the greatest barometer of our success. On behalf of your volunteer Supervisory Committee, I thank you for your continued confidence in TruStone Financial.

Brian Lee

SUPERVISORY COMMITTEE CHAIR

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2022 TRUSTONE ANNUAL REPORT

2022 Charitable Donations TRUE GIVING – MAKING AN IMPACT

TRUSTONE FINANCIAL FOUNDATION

True to our word, at TruStone Financial we challenge the status quo to better serve the needs of others – our

The TruStone Financial Foundation is a not-for-profit 501(c)(3)

members, our team members and our communities by hosting organizational events that give back in every

organization founded in 2009 by TruStone Financial Credit Union.

community we serve. By devoting countless hours volunteering to help our neighbors, TruStone partners

The foundation was established to reinforce our commitment

with many charitable organizations, hosts donation drives, sponsors events in our communities, and provides

to financial education, supporting our communities with

complimentary on-site events such as shred days and home buying seminars. Whether we are on clean up

scholarships, donations to local non-profits, and investments in

duty, teaching a budgeting class at the local elementary school or providing financial support, TruStone puts

financial literacy programs.

the needs of our neighbors first to create a stronger, more resilient community. With the help of our TruStone Financial Foundation our total impact in 2022 includes:

450

employees volunteered

1,000+

hours of service to

26

different organizations including Junior Achievement, Second Harvest Heartland, Feed My Starving Children, Project Concern, United Way and many others.

$10,000

Donated to 10 local high school sports’ programs as a sponsor of Prep Sports Hot Highlights.

$2,500 + 1,700 Toys Collected and donated to Toys for Tots

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2022 TRUSTONE ANNUAL REPORT

$60,000

Awarded in scholarships to 18 students pursuing secondary education.

$70,000

Donated by TruStone Foundation in support of community initiatives such as Bolder Options, The Sanneh Foundation, Al Nolen Foundation, Moneyweave Academy and more to promote financial education, racial equity and inclusion.

$14,000

Donated from the TruTeam Giving Program with the TruStone Foundation matching dollars raised to benefit many non-profit organizations, such as Tee It Up for the Troops, Local Food Shelves and more.

For Community,

By Community

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2022 TRUSTONE ANNUAL REPORT

Services SAVE

MANAGE

Savings & Certificates

Digital Banking

Health Savings Accounts (HSA)

Bill Pay

Youth & Teen Savings

Zelle® MobilePAY

SPEND

Checking Visa® Debit Card Visa® Credit Card

Mobile Deposit eStatements 65,000 Surcharge-Free ATMs Nationwide 5,000+ Shared Branches Nationwide

Checking & Credit for Teens BORROW

INVEST

TruStone Home Mortgage

TruStone Financial Advisors

Home Equity Loans Auto Loans Recreational Loans Personal Loans Adoption Loans

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2022 TRUSTONE ANNUAL REPORT

YOUR NEIGHBORHOOD CREDIT UNION TRUSTONE.ORG (800) 862-1998 (763) 544-1517 22 locations in Minnesota & Wisconsin

FACEBOOK @TruStoneFinancialCU

TWITTER @TruStoneFCU

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