Trustone_2024AnnualReport_5.25 by TruStone Financial

TruStone, for Life.

REPORT OF THE BOARD CHAIR

In 2024 TruStone recognized 85 years of service to members. Now our industry celebrates another important milestone: 2025 marks the 100-year anniversary of credit unions in Minnesota.

We, along with over 80 credit union peers, have an amazing story to tell. A small group of postal employees opened Minnesota’s first financial cooperative in 1925 with less than $150 in total assets. Today our state boasts over 2.2 million credit union members representing assets in excess of $41 billion. Not to be outdone, our Wisconsin neighbors serve nearly 4 million members and have been operating since 1934.

Our history – and success – is predicated on the simple philosophy of People Helping People. We are not-for-profit institutions owned by the individuals we serve, meaning our focus is on you, more so than our bottom line.

At TruStone we refer to that focus as Member Value, and we define it in several ways: delivering competitively priced products and services, offering convenient access to your credit union (whether it be digital or face-to face), and making a measurable

impact on the communities we serve through charitable giving, employee volunteerism, and the good deeds of the TruStone Financial Foundation.

We optimize Member Value with elite financial performance. Prudent balance sheet management enables us to significantly reinvest in our membership and operate a complex institution in a safe and sound manner.

This annual report to members is a showcase of strong Member Value and strong financial performance. It demonstrates that 100 years later, we operate grounded in the same core principles envisioned by our founders. On behalf of your board of directors, I thank you for your continued faith in TruStone to meet your financial needs.

John Christenson CHAIR

BOARD of DIRECTORS

John Christenson

Chair

Darrick Metz

Vice Chair

Doug Nesbit

Treasurer

James Sackett

Secretary

Thomas Alagna

Steve Bohlig

Lori Bonin

Kevin Crane

Steve Hunziker

Sam Stern

Jennifer Whitlock

Bruce Whitmore

Anne Ziebell

Roberta Oveson Associate Director

BOARD of DIRECTORS

REPORT OF THE PRESIDENT & CEO

As you review this 2024 Annual Report, you’ll notice another high-performing year for your credit union. Our financials demonstrate healthy growth, strong equity, and a generous re-investment in our membership.

Rising Above Enterprises named TruStone a ‘Top 1% Credit Union’ for that performance, citing balanced and consistent results in loan production, operating efficiency, return on assets, member tenure, and more

But there are other measures that, while regularly monitored by TruStone leadership, don’t always find their way to an annual report. Digital adoption and satisfaction demonstrate our ability to meet members wherever they are with tools they need. Over 120,000 members access TruStone through online or mobile channels. 2024 Digital Satisfaction scores were 9.04 on a 10-point scale.

Foundry honored TruStone with our third consecutive CIO100 Award, highlighting the innovative ways we deliver digital value through our card rewards program and AI-powered chatbot, Ruth

As a service organization, we understand that our employees are our greatest resource. We value that resource with significant investments in staff training and education, employee recognition, and programs to enhance our corporate culture. For example, HERO (Honoring Employees Reaching Out) rewards team members that volunteer for local charities and causes. In 2024 TruStone employees gave 3,378 hours back to the communities we serve.

CONTINUED

REPORT OF THE PRESIDENT & CEO

The Minnesota Star Tribune recognized TruStone as a National Standard Top Workplace last year, with staff scoring us exceptionally high in employee development programs It’s flattering to be recognized so often by those who follow our industry, but the true measure of our success comes from you, our member/owners. The accolades you provide are the most meaningful.

Ongoing member surveys yield satisfaction and experience scores in excess of the 95th percentile A comprehensive annual member survey demonstrates scores well above industry averages for financial guidance, services that meet your needs, and TruStone’s contributions to the community

Industry honors and member feedback are encouraging, but not surprising. I am witness, regularly, to examples of prudent financial management and superior member service. I also recognize our potential. As your President and CEO, it is my promise to you that we will strive to continually improve in the delivery of our credit union mission.

Dale Turner PRESIDENT & CEO

EXECUTIVE MANANGEMENT TEAM

Dale Turner

President and Chief Executive Officer

Cole Hahn

EVP/Chief People Officer

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

REPORT OF THE SUPERVISORY COMMITTEE

It has been reported that the typical consumer conducts, on average, two financial transactions every single day. That admittedly seems low. But, even using that conservative estimate, one can assume that TruStone’s 216,000+ members are initiating nearly 450,000 transactions each day, or roughly 157 million transactions every year.

Each and every one of those are expected to be handled with speed and precision, immediately visible and easily accessible while simultaneously being safe and secure. It thus stands to reason that our attention to accuracy, security and soundness is paramount.

To that end, TruStone’s Supervisory Committee engages a variety of internal and external industry experts to conduct comprehensive audits of our financial, administrative, and operational practices.

AMONG OUR 2024 HIGHLIGHTS:

• We received thorough examinations from the Minnesota Department of Commerce and the National Credit Union Administration. These confirmed our belief that we are strong and healthy, well-equipped to serve our members.

• An industry-leading independent public accounting firm performed our financial statement audit in accordance with regulatory requirements. Their audit opinion stated that our financial position and operations are fairly presented in accordance with generally accepted accounting principles.

• Experienced internal auditors reviewed all aspects of our organization, with no material exceptions or weaknesses found.

We continue to grow, as do your requests for faster, more accurate and more secure service. Our 2024 exams, audits and reviews are evidence that our attention to detail is paying off, allowing us to not just meet, but exceed, our members’ expectations.

Brian Lee SUPERVISORY COMMITTEE CHAIR

SUPERVISORY COMMITTEE

Brian Lee Committee Chair

Bob Larson Secretary

Esmail Harunany

Teena Liu

Lenny Newman

SUPERVISORY COMMITTEE

BALANCE SHEET

ASSETS

Loans, net

Cash & Investments

Property and Equipment, net

Other Assets

Total Assets

LIABILITIES AND MEMBERS’ EQUITY

Shares & Deposits

Borrowed Funds

Other Liabilities

Total Liabilities

Members’ Equity

Total Liabilities and Members’ Equity

INCOME STATEMENT

NET INTEREST INCOME

Loans

Investments

Dividend/Interest expense

Provision for loan losses

Net Interest Income

NON-INTEREST INCOME

Loan sale and servicing income

Service fees

Other non-interest income

Total Non-Interest Income

NON-INTEREST EXPENSE

Compensation and benefits

Occupancy and office operations

Other

Total Non-Interest Expense

Net Income

Scores are on a 10-point scale, and are tabulated from thousands of member surveys over the course of 2024.

216,356

Total Members

555

23 Employees Branches

$18,157 Average Shares per Member

$31,571 Average Loan Outstanding

($ in thousands)

$2,411 Equity per Member

1.07% Return on Assets

LOVE GREAT NEIGHBORS?

WE DO TOO.

That devotion to our neighbors includes volunteer efforts that benefit people, places and things – as well as event sponsorships, fundraisers and anything else that’s happening in our vibrant neighborhoods.

Events

EVENTS

There’s no better way to meet all the fine people in our communities than to host productive events and fun contests.

LOVE GREAT NEIGHBORS? WE

DO TOO.

VOLUNTEERING

Minnesota and Wisconsin are terrific places to live. You know that, and we want to make it even better. Through volunteering and event involvement we can really impact the futures of tomorrow’s bright leaders and the communities in which we live.

It’s True.

Volunteering

IN YOUR NEIGHBORHOOD

3,378 Hours Donated

Honoring Employees Reaching Out (HERO), is a new program designed to track employee volunteerism. Through this Community Service Time benefit, 95 TruStone employees donated 546 hours out of their workday to volunteer in our local communities in 2024.

450 Employees Volunteered 1,000 Hours of Service

41 Organizations & Communities

CU Forward Day, an entire day that TruStone dedicates to supporting various organizations including Second Harvest Heartland, Ronald McDonald House, Greenfield Parks Clean Up, 360 Communities and many others.

IN YOUR NEIGHBORHOOD

From local events to impactful initiatives, this is how TruStone Financial is making a difference and connecting with the community.

$2,200 & 1,300 Toys

Collected and donated to Toys for Tots.

$27,500

Donated to 11 local high schools as a sponsor of the KARE 11 Prep Sports Hot Highlights.

In the Classroom

Teaching is in our DNA. Because early financial education prepares youth for lifelong financial well-being, we’re proud to partner with non-profit organizations like Junior Achievement to teach financial literacy in classrooms throughout our communities.

YOUR COMMUNITY IS OUR COMMUNITY

The TruStone Financial Foundation is a not-for-profit 501(c)(3) organization founded in 2009 by TruStone Financial Credit Union. The foundation was established to reinforce our commitment to financial education, supporting our communities with scholarships, donations to local non-profits and investments in financial literacy programs.

$87,000

Awarded in scholarships. It was truly so much joy awarding 60 deserving students from 48 local schools and adults to help defray todays spendy tuition rates for the 2024-2025 school year.

YOUR COMMUNITY IS OUR COMMUNITY

$173,000 to 40+

Non-Profit Organizations

Donated by TruStone Foundation in support to communities for initiatives such as financial education, racial equity and inclusion. Organizations impacted include Bolder Options, The Sanneh Foundation, Spare Key, Highland Friendship Club, Junior Achievement North, Local Food Shelves, Tee It Up for the Troops, and the TruTeam Giving Program.

$15,000+

Donated in partnership with the TruTeam Giving Program.

The TruStone Foundation matched dollars raised to benefit many non-profit organizations, such as Jack’s Basket, Special Olympics and more.

YOUR COMMUNITY, IS OUR COMMUNITY

As a non-profit voluntary association, the Minnesota State High School League (MSHSL) has provided service, leadership and extracurricular opportunities to more than 240,000 high school students participating annually in athletic, academic and fine art activities. In early 2024, TruStone became the title sponsor of MSHSL and enthusiastically supports their focus on sportsmanship, recognition, and scholarship.