Whatcom Educational Credit Union

Loan portfolio (Credit cards, auto, personal and other types):loans to members increased by 17.93%, or $294.7 million from 2021 to 2022. Lending was strong, with record-setting months culminating into another record setting year. Wecu originated $791.75 million in 2022. The overall impact is tremendous for our members and the community at large. In many cases, the financing decreased members' monthly and annual debt obligations, provided affordable transportation and housing, and consolidated debt. Despite the much-lauded economic strength through the pandemic recovery, there were still challenges. In particular, the supply chain issues presented challenges with supply to originate loans through the indirect channel. Many dealers had little to no inventory. This is a testament to wecu's indirect team, as they focused primarily on relationships with dealers to maintain opportunity. The increase in originations from 2021 to 2022 was a result of creativity and resolve. Wecu originated $322.46 million in 2022 representing a 45.11% increase, or $100.26 million.consumer real estate, on the other hand, had different challenges. Loans to members for consumer real estate remained strong with an increase of 10.37%, or $81.43 million from 2021 to 2022. Due to the increase in interest rates and the shortage of homes available loan originations decreased $176.20 million in 2022 compared to 2021.

Community involvement:while technically not a chartered service, wecu is committed to community service and provides support to a large number of local Educational, health and community concerns. In 2022, helping members and the community at large through the continued pandemic was still a primary focus. This was demonstrated through several activities throughout the year. Unemployment figures were improving but not rapidly, and consumer spending was still sputtering. As the year progressed, the pent-up desire for consumers to travel, shop, eat at restaurants, and recreate resulted in positive economic activity.

Deposits and liquidity:deposits decreased by .73%, or $15.65 million from 2021 to 2022. Deposits will continue to be a focus. Management recognizes that some deposit outflow is not directly tied to market competition and is a result of a changing financial picture for many of our members and is preparing various liquidity tools in the event deposit declines persist. The shift to deposit growth and retention has taken a firm hold across the financial industry, providing members with many options for a greater return on their deposits. Management will continue to monitor deposit activity and maintain a balance sheet structured to mitigate the risk of a rapid change in member behavior as it relates to holding deposits.