2021 ANNUAL REPORT

2021 ANNUAL REPORT

Board Chair Report

On behalf of our Board of Directors, I want to thank you for your membership with Wichita Federal Credit Union. Our members gave us the momentum to thrive during another challenging year. I'm proud to see our members experience the value of our products and services as this continues to strengthen our cooperative and grow our membership. This allows us to sustain our commitment to giving back to you and our community.

This year, we will remain dedicated to providing you with a positive member experience while we continue to work on improving our products and technology.

As I conclude the year as your Board Chair, I want to thank the staff, my fellow board members, and all other volunteers for their commitment to WFCU. The volunteers give freely of their time each month and work with management to ensure ongoing improvement and development. I thank our members for your trust in us to be your financial partner. I'm honored to be part of an organization that puts people first as each of us assists in the success of the Wichita Federal Credit Union.

Respectfully submitted, Jay Newton Board Chair

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Treasurer Report

Wichita Federal Credit Union continues to see growth in many different areas.

The proof is in our financial performance and member satisfaction in 2021. Our total assets grew 6.22% to nearly $158 million. Deposits grew to over $132 million, a 5.30% increase. Loans increased to over $124 million, a 5.69% increase.

Our net promoter score (NPS) of 97% – a measure of member satisfaction continues to strongly outperform the peer averages of 80%.

The lending policies and collection processes continued to work effectively and resulted in a delinquency ratio of 84 basis points and a charge-off ratio of 62 basis points. The credit union generated nearly $2.8 million in net income in 2021, resulting in a 15.43% net worth-to-total assets ratio.

We continue to grow as an organization because of our member-first philosophy. We encourage you to reach out and let us know if there are services or products you would like to see to make your credit union even better. Thank you for your membership this past year, and we look forward to serving you, your friends, and your family in the years to come.

Respectfully submitted,

Mike Greene Secretary/Treasurer

wichitafcu.com

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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. Additionally, it ensures that WFCU follows practices aligned with those policies to safeguard members' assets. Management should continue to administer such practices, plans, policies, and control procedures established by the Board of Directors.

The committee keeps the Board of Directors, and the WFCU leadership team apprised of all audits and any related committee recommendations. As the Supervisory Committee Chair, in 2021, all conducted audits resulted in satisfactory reports. The Supervisory Committee includes the following members: Trinh Bui, Stephen Coberley, Rick Firner, Kenneth Witzell Jr., and myself, Jeff VanZandt.

I am looking forward to the continued success of WFCU. I am grateful for the efforts of our Board of Directors, WFCU's staff, and our members. I am confident we will be able to extend this success in 2022!

Respectfully submitted,

Jeff VanZandt Chair, Supervisory Committee

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Nominating Committee Report

The Nominating Committee, consisting of Shirley Rogers, Gavin Seiler, and myself, Mark Manning, 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: • Wayne Riddle •

Jay Hinkel

•

Anne Anderton Warren

Respectfully submitted, Mark Manning Chair, Nominating Committee

wichitafcu.com

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President/CEO Report

I am so honored to be part of an organization that can report another year of overall growth and success, especially during a globally challenging year for everyone. No matter the circumstance, we as an organization were able to strengthen our brand by being member-focused. Our members matter.

In 2021 we continued to help people with low-interest rates, 0% interest-free credit cards, payment plans, and more!

In the meantime, we have been working on making your lives more convenient with enhanced products and services such as video banking, which I'm incredibly excited for, coming this year.

On behalf of our Board of Directors and staff, thank you for being a part of our credit union family. We know you have a choice when it comes to selecting a financial institution, and we appreciate you have chosen us to be your financial partner. Thank you for allowing us to serve you and your families.

Respectfully submitted,

Ashley Bautista President/CEO

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2021 Performance Growth Loans

$117,527,756

+5.69%

$124,214,958 Deposits

$125,530,299

+5.30%

$132,184,676 Assets

$148,656,800

+6.22%

$157,899,220 Membership

11,962

+3.71%

12,406 2020 wichitafcu.com

2021 7

Statement of Income For the year ending Dec. 31, 2021

For the year ending Dec. 31, 2020

7,831,052

7,520,336

Income from Investments

135,874

141,061

Other Investment Income

162,249

163,662

3,375,826

3,240,798

$11,505,001

$11,065,857

Wichita Federal Credit Union

INCOME Income from Loans

Fee and Other Income Total Income

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Statement of Income Wichita Federal Credit Union

For the year ending Dec. 31, 2021

For the year ending Dec. 31, 2020

EXPENSES Employee Compensation and Benefits

$4,079,142

3,855,355

Travel and Conference Expense

95,435

89,334

Association Dues

32,681

31,648

Office Occupancy Expense

394,286

344,304

Office Operation Expense

1,392,200

1,231,264

Marketing

286,209

125,516

Loan Servicing Expense

270,093

286,592

Professional and Outside Services

406,358

385,494

Actual and Potential Losses

879,182

1,286,732

Federal Operating Fees

30,871

36,054

Miscellaneous Expenses

3,579

1,073

849,179

1,284,772

Interest on Borrowed Money

0

0

Non-Operating Expenses

0

9,197

$8,719,215

$8,967,335

$2,785,786

$2,098,522

Dividend Expense

Total Expenses NET INCOME

wichitafcu.com

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Statement of Financial Condition For the year ending Dec. 31, 2021

For the year ending Dec. 31, 2020

124,214,958

117,527,756

Allowance for Losses

-1,387,438

-1,333,589

Cash

11,082,450

9,337,365

Investments

12,951,254

6,997,809

211,734

226,824

4,584,474

3,528,735

Accrued Interest

543,379

492,173

NCUSIF Deposit

1,284,426

1,188,850

Other Assets

4,413,983

10,690,877

Wichita Federal Credit Union

ASSETS Loans to Members

Prepaid Expenses Fixed Assets

TOTAL ASSETS

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$157,899,220 $148,656,800

Statement of Financial Condition For the year ending Dec. 31, 2021

For the year ending Dec. 31, 2020

Accounts Payable

298,104

170,774

Dividends Payable

92,713

136,283

0

999

Accrued Expenses

896,144

971,295

Suspense & Clearing Accounts

104,124

127,065

$1,391,085

$1,406,416

132,184,676

125,530,299

24,323,459

21,720,084

Wichita Federal Credit Union

LIABILITIES Liabilities

Taxes Payable

TOTAL LIABILITIES Member Equity Total Shares Total Reserves TOTAL MEMBER EQUITY

$156,508,135 $147,250,383

TOTAL LIABILITIES & EQUITY

$157,899,220 $148,656,799

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