2023 Annual Report

PRESIDENT'S REPORT

Over its history SAFCU has continually evolved in many ways to maintain its status as a premier financial institution. Never has that evolution been greater than over the past several years with the move from Sealed Air facilities and the significant expansions in the fields of membership. Those expansions in field of membership will allow SAFCU to maintain the size it needs to continue to
effectively serve it historical members and also expand credit union services to many new members.

An additional key factor in maintaining our high level of member service is being at the forefront of technology, and we remain as advanced as most and better than many financial institutions in terms of services that make it easier and safer for members to manage their finances. We are committed to remaining at the forefront in this area.

The most exciting and encouraging part of 2023 was SAFCU’s return to positive net income. Due to the move out of Sealed Air facilities and the challenges created by the pandemic, that was the first year with positive net income since 2018. During that period we were able to maintain a strong net worth, ensuring the soundness of the credit union. The return to positive net income
coupled with net worth that doesn’t have to be rebuilt puts us in a favorable position to better serve members going forward.

The strength of its volunteer group plays a key role in the success of all credit unions, so I would like to encourage each of you to consider becoming a volunteer. As a member-owned financial institution the more volunteers we have the stronger our credit union will be. Being a volunteer is educational and rewarding, so don’t be hesitant about giving it a try.

Respectfully,
Dave Wamer, President

2023 SUPERVISORY COMMITTEE REPORT

The Supervisory Committee is responsible for monitoring the financial safety and soundness of Secured Advantage Federal Credit Union and compliance with various financial and regulatory requirements. It also acts to ensure adherence to the requirements of the National Credit Union Association (NCUA).

Secured Advantage Federal Credit Union (SAFCU) continues to provide service to our members from two locations; Simpsonville, SC and Iowa Park, TX. Financial institutions continue to face considerable headwinds economic conditions and policy directives and SAFCU works diligently to address new requirements and satisfy current members. Remaining compliant, the credit
union continues to provide the community with a valuable resource at the best level of service possible.

In fulfilling these responsibilities, the Supervisory Committee appointed the independent audit firm of Restine Accounting, which directly reports to the Committee, and has been performing in this capacity for several years. In addition to Restine Accounting the Supervisory Committee secured the services of CTPG Accounting to perform the annual financial audit. The Committee also met regularly to, among other things, review internal audit services, internal controls and risk management processes, and examinations by regulatory agencies.

For FY 2023 all financial audits were performed in a timely manner. There were no violations in any audits and minor findings have been corrected. All security audits were performed, and minor findings were corrected immediately. The NCUA audit resulted in a reduction in stress test rating and on a subsequent audit found that corrective actions were taken and the rating was raised.
In the opinion of the Supervisory Committee, Secured Advantage Federal Credit Union continues to operate in a fiscally sound manner and, in all material respects, in accordance with applicable federal and state regulations.

Respectfully,
Jeff Sexton, Board Member & Supervisory Committee Chair

BOARD OF DIRECTORS
Dave Wamer - President
Ray Hathaway — Vice President
Jean Gilstrap — Secretary/Treasurer
Paul Pyc
Nick DiLeo
Bo McDonald
Jeff Sexton

SUPERVISORY COMMITTEE
Jeff Sexton — Chair
Laura Hathaway
Beth Kyle

REPORT FROM YOUR CEO

2023 is a year worth celebrating for Secured Advantage FCU. We ended the year with positive net income and projections for a positive 2024. Overall, it was a “quiet” year in that there were no big branch moves and the pandemic effects have seemingly worn off. We were grateful to focus on the membership and ensuring our service was top-notch. We spent many hours financial
counseling, reviewing mobile services, and answering questions about our products. We had some days where things didn’t go as planned but on a whole the staff did a stellar job serving our membership during the year.

I want to thank each of them for the hard work and love they put into growing Secured Advantage. They come in every day with a serving heart and it shows; our Google reviews of staff are glowing. We continue to receive emails singing their praises, and we are thankful.

We know that as prices have risen all around us, it has been a struggle for some of our members. We hope that we are your first choice to assist you as you seek to ensure the stability and viability of your families. We want to make your dreams come true, and help you move forward when they don’t turn out as planned. We know that “Together we’re stronger” and so we are here for you.

We look forward to a prosperous 2024 and hope you’ll join us on this journey!

Respectfully,
Secured Advantage Federal Credit Union CEO

2023 INCOME STATEMENT
Total Income	$3,760,234
Total Expenses	$3,558,399
Net Income	$201,835

2023 STATEMENT OF CONDITION
Net Loans	$4,891,417
Total Cash & Investments	$24,980,011
NCUSIF	$646,380
Land & Buildings	$1,626,708
Other Assets	$1,531,967
Total Assets	$63,676,483
Total Shares	$55,965,383
Regular Reserves	$2,093,244
Undivided Earnings	$5,613,196
Other Liabilities	($4,660)
Total Liabilities	$63,676,483

QUALITY SERVICES

Savings

Loans

• New & Used Vehicles
• Mortgages (First & Second)
• Home Equity Lines of Credit
• Personal Loans and Lines of Credit
• Share Secured
• Boats & RVs
• Educational
• Computers
• Visa® Credit Card with Rewards

Additional Services

• Virtual Branch Online
• Account Access
• Free Bill Pay
• SAFCU Visa® Debit Credit Card with Rewards
• Remote Deposit Capture
• Apple Pay®
• Google Pay™
• Zelle®
• Geezeo (Access all of your accounts in one place!)
• Shared Branching
• CO-OP® Network of Free ATMs
• Audio Response Teller (ART)
• Direct Deposit and Wire Transfers
• Free Notary Service
• Free Budgeting
• Free Financial Counseling
• Free Credit Score Enhancement
• Money Orders

• Gift Cards
• Discounted Movie/Amusement Park Tickets
• Postage Stamp Sales
• Auto Warranties
• GAP Coverage on Most Collateralized Loans — to Include Boats and RVs
• ATMs
• Newsletters
• Consumer Publications
• Youth Programs
• Mobile Banking
• CreditSense — Credit Monitoring and Enhancement Platform
• Credit Life and Disability Insurance on Loa
• Trustage Life, Auto and Home Insurance

New in 2024

Secured Advantage Federal Credit Union Annual Meeting Minutes March 27, 2023

The 2023 Secured Advantage Federal Credit Union Annual Meeting was held Monday, March 27, at The Family First Center in Iowa Park, Texas. President Bo
McDonald called the meeting to order at 7:30 p.m. and welcomed everyone to the 64th Annual Meeting for Secured Advantage FCU. 43 members attended (see attached list). 17 members were present via Zoom.4

Michal Parker presented the CEO’s Report. Michal welcomed everyone to the meeting. Thanking Melissa Treadway for the preparation for this meeting. Michal reported that the staff from the Simpsonville office is attending by Zoom and the Texas staff is attending the meeting in person. Jean Gilstrap (current Board member) and Allen Gilstrap (former Board Chair) are in-person for this meeting. All the active Board and two of the three Supervisory Committee members are attending by Zoom. Michal stated that the pandemic was not good for SAFCU.
When the FED slashed rates SAFCU’s investment income decreased sharply. SAFCU had just moved off Sealed Air campuses in South Carolina and Texas when everything shut down for Covid protocol. This made for a rough two years financially. Michal reported that she is excited to say that in the last three months SAFCU has had positive net income. The closure of the Duncan branch was a hard decision but there was a lot of money flowing out trying to keep the branch open. SAFCU is still serving these members remotely and in Simpsonville. Michal stated that with technology now SAFCU can serve our members wherever they are. SAFCU has the personal touch with both offices because the members can reach the staff and talk with them or the members can go online. Michal stated that 2023 looks really good for SAFCU. Michal thanked SAFCU staff for the incredible job each has done over the last three years. The staff has adapted with the closing of facilities during Covid. The Texas office is growing quickly and the Simpsonville office is
working really hard to make sure that the membership has everything that they could possibly need. SAFCU is implementing new products such as Zelle (money to money person to person) and E-Pay (pay loans via Debit card). At SAFCU a member can open accounts or get a loan online but can also come in the branches and talk with someone. Michal stated that she is really excited that SAFCU has been able to do all these things and still know members names and faces. 2022 was not great but 2023 looks good and SAFCU is excited about not only serving current members but can also serve their friends, neighbors, children and the next generation. This is exciting. Michal thanked the SAFCU membership for sticking with SAFCU. Michal stated that if anyone ever has any questions or needs anything to please feel free to contact her. SAFCU wants to be the members continued financial institution for many years to come.

Bo McDonald reported that the 2022 Supervisory Committee Report is in the Annual report which can be found online and on the SAFCU website. Jeff Sexton was not able to attend this meeting. Bo McDonald asked attendees to think back to when SAFCU was asked to leave the Sealed Air campuses and had to figure out the next steps after leaving the campuses. He stated that Michal and the team came together very fast and put solutions together and SAFCU is still here today because of those solutions. Just when SAFCU thought it was out of the woods and could get on with life Covid happened. Bo stated that 400 other credit unions cannot say this because they went away. With all that SAFCU has been through these last 2-3 years to now sit
here and look at the numbers in 2023 after some hard decisions, a lot of work, long nights and a lot of travel for Michal and some of the board members to put things back together is a great thing. Not every credit union can say that they have come out of this successfully and not just come out of it but the dedication to put SAFCU back together and figure out whom SAFCU needs to serve right now is ongoing. Going back to why SAFCU was founded was to serve people who could not be served by banks or other financial institutions and SAFCU is helping to find these people and do what other financial institutions are not willing to do. Michal and Katia coming on board, knowing her heart for the members, lending, listening to the member’s story, and doing things for the member that no one else is willing to do, he believes SAFCU will do great things. Bo stated that he is super proud of the boards being open minded and taking some risk and Michal, Katia and Angie and all of the team especially the lenders on the front line. Bo thanked the lenders on the
front line stating that SAFCU could not make those loans or help SAFCU’s members without them. Bo stated that when you look at the numbers for 2023 SAFCU is on the right track.

Bo McDonald reported on the election results as being uncontested: David Wamer is coming back on the board for a 2nd term and Jeff Sexton to begin serving on the board and Supervisory committee.

Michal Parker reported that Jim Teresi has been on SAFCU’s board for a good many years and this year he has decided to take a step back. Michal thanked Jim for all the years that he has worked with SAFCU. Jim always brings a different perspective and for that really appreciates Jim.

Jim Teresi stated that it has been a real pleasure and honor to be a part of SAFCU for 25 years; serving on the Supervisory committee and the Board of Directors. Jim personally thought it was a real shame when Sealed Air made the decision to not support the credit union any longer and SAFCU had to break ties with Sealed Air. Jim stated that is one of the reasons that he joined the credit union was because of Cryovac and the credit union being a part of Cryovac. Jim stated that he has really enjoyed his time and he knows that SAFCU has a good future. It has been a real pleasure and thank you.

There being no further business this meeting was adjourned at 7:42 p.m. on a motion by Cassandra Thompson and a second by Josh Treadway.

Bo McDonald
President

Barbie Monroe
Acting Secretary