2020 Annual Report - Wichita Federal Credit Union

2020 ANNUAL REPORT

Board Chair Report

First and foremost, I would like to thank our members for working with us over the past year through the many changes that came with the Pandemic. We value each and every one of you and thank you for your partnership. As you continue to utilize our products and services, the strength of our cooperative grows, allowing us to give back to you and our community.

I am pleased to say that the financial strength and stability of your credit union are strong. It’s because of you I can share that in 2020, your credit union was once again profitable. Our “People Helping People” philosophy is more than just about helping our members; we also strive to improve the lives of our employees and those in our community.

We understand that you need a financial partner during each stage of life, and we are committed to being there with you every step of the way while always having your best interests in mind. We will remain dedicated to providing you the best experience during these uncertain times and focus on continuously improving our products and technology.

I want to thank the WFCU employees, my fellow board members, and all other volunteers for their commitment to WFCU. As I conclude my two years as Board Chair, I thank our members once again for your participation in the credit union. I am proud to be involved in a financial cooperative in which each of us plays a part in our growth and success. I encourage you to invite your friends and family to share the experience of a credit union.

Respectfully submitted,

Shirley Rogers Board Chair 2

Treasurer Report

The year 2020 saw unexpected volatility in politics, society, and financial markets.

We are pleased to note that through it all, it has been a year of continued growth for our credit union in several important measures. This growth is reflected in our financial performance over the past year and also in our commitment to member satisfaction. Total assets grew 12.3% to over $148.6 million. Deposits grew to $125.5 million, a 12.4% increase. Loans increased to $117.5 million, a 9.8% increase. Our net promoter score of 93% – a measure of customer satisfaction continues to strongly outperform the peer averages of 81%.

The lending policies and collection processes continue to work effectively and resulted in a delinquency ratio of 0.87% and a charge-off ratio of 0.78%.

The credit union generated just over $2 million in net income in 2020, resulting in a 14.53% net worth-to-total assets ratio.

We continue to grow as an organization because of our member-first philosophy. Thank you for your membership this past year, and we look forward to serving you in the years to come.

Respectfully submitted,

Jay Hinkel Secretary/Treasurer

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Supervisory Committee Report

The Supervisory Committee ensures that management has appropriate policies in place that direct the diversification of WFCU’s loan and investment portfolios to reduce any concentration of risk and have followed practices in line with those policies. Management should continue to administer such practices and plans, policies, and control procedures established by the Board of Directors to safeguard members’ assets.

The committee keeps the Board of Directors and the WFCU management team apprised of all audits and any related committee recommendations. As the Supervisory Committee Chair, I am pleased to report that all audits conducted in 2020 yielded no significant deficiencies. The Supervisory Committee members are Jeff VanZandt, Doris Leslie, Trinh Bui, Kenneth Witzell Jr., and Rick Firner. Thanks to the Board of Directors and WFCU staff for their support and cooperation with our efforts in 2020, and we look forward to continued success in the coming years.

Respectfully submitted,

Rick Firner

Chair, Supervisory Committee

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Nominating Committee Report

The Nominating Committee, consisting of John Davis, Mike Greene, and Jay Newton, is pleased to nominate the following for positions on the Board of Directors of Wichita Federal Credit Union: To the Board of Directors:

Three-Year Term: • Mark L. Manning

• Gavin Seiler

• Shirley Rogers Respectfully submitted,

Mike Greene

Chair, Nominating Committee

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President/CEO Report

I am pleased to report that Wichita Federal Credit Union experienced another successful year marked by growth and financial stability. We continue to have success as an organization because we remain true to our focus – our members. We will continue to work hard to offer you a solution, no matter the situation you may be facing.

In 2020, we extended many options to our members during the Pandemic. We worked together to find solutions to help with finances, including deferred payments on loans, consolidation loans, and payment plans, to name a few.

We truly exist to help people and will continue to be of service to our members when you need us most. As we enhance products and services, we will keep member value in mind and continue to invest in products and services that will bring convenience to you.

On behalf of our Board of Directors and staff, thank you for being a part of our credit union family. We appreciate the opportunity to serve you and your families, and we thank you for choosing us to be your financial partner.

Respectfully submitted,

Ashley Bautista President/CEO

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2020 Performance Growth Loans

$106,981,684

+9.86%

$117,527,756 Deposits

$111,665,211

+12.42%

$125,530,299 Assets

$132,333,852

+12.33%

$148,656,800 Membership

11,333

+5.55%

11,962 2019 wichitafcu.com

2020 7

Statement of Income For the year ending Dec. 31, 2020

For the year ending Dec. 31, 2019

7,520,336

6,564,942

Income from Investments

141,061

315,761

Other Investment Income

163,662

100,471

3,240,798

2,595,402

$11,065,857

$9,576,576

Wichita Federal Credit Union

INCOME Income from Loans

Fee and Other Income Total Income

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Statement of Income For the year ending Dec. 31, 2020

For the year ending Dec. 31, 2019

3,855,355

3,325,933

Travel and Conference Expense

89,334

162,860

Association Dues

31,648

31,285

Office Occupancy Expense

344,304

323,349

Office Operation Expense

1,231,264

1,132,867

Marketing

125,516

186,457

Loan Servicing Expense

286,592

267,379

Professional and Outside Services

385,494

379,673

1,286,732

700,808

Federal Operating Fees

36,054

29,197

Miscellaneous Expenses

1,073

1,687

1,284,772

1,305,192

0

85

Wichita Federal Credit Union

EXPENSES Employee Compensation and Benefits

Actual and Potential Losses

Dividend Expense Interest on Borrowed Money Non-Operating Expenses Total Expenses NET INCOME

wichitafcu.com

9,197 $8,967,335

$7,846,772

$2,098,522

$1,729,804

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Statement of Financial Condition For the year ending Dec. 31, 2020

For the year ending Dec. 31, 2019

117,527,756

106,821,016

-1,333,589

-959,080

Cash

9,337,365

6,180,750

Investments

6,997,809

10,624,291

226,824

253,417

3,528,735

3,538,860

Accrued Interest

492,173

401,217

NCUSIF Deposit

1,188,850

1,047,941

10,690,877

4,425,440

Wichita Federal Credit Union

ASSETS Loans to Members Allowance for Losses

Prepaid Expenses Fixed Assets

Other Assets TOTAL ASSETS

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$148,656,800 $132,333,852

Statement of Financial Condition For the year ending Dec. 31, 2020

For the year ending Dec. 31, 2019

Accounts Payable

170,774

161,032

Dividends Payable

136,283

154,299

999

1,407

Accrued Expenses

971,295

741,607

Suspense & Clearing Accounts

127,065

99,782

$1,406,416

$1,158,127

125,530,299

111,665,211

21,720,084

19,510,514

Wichita Federal Credit Union

LIABILITIES Liabilities

Taxes Payable

TOTAL LIABILITIES Member Equity Total Shares Total Reserves TOTAL MEMBER EQUITY

$147,250,383 $131,175,725

TOTAL LIABILITIES & EQUITY

$148,656,799 $132,333,852

wichitafcu.com

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wichitafcu.com

9835 E. 21st St. N. Wichita, KS 67206

455 N. Main St., Rm. 410 Wichita, KS 67202

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316.941.0600

3730 W. 13th St. N. Wichita, KS 67203