2020 was an unprecedented year full of unforeseen challenges. Life as we knew it changed dramatically in March. The global pandemic and resulting economic shutdown, reminded us all how important it is to be prepared to “weather any storm.” COVID-19 put medical, emotional and financial hardships on everyone, and our hearts go out especially to those who lost loved ones during this trying time.  

We are thankful to our entire team who stepped up in ways both big and small, all while their own lives were disrupted and under stress. As essential frontline workers, the majority of our staff continued to come to work at our branches and the home office every day throughout 2020. We are proud to have maintained rigorous health and safety protocols that enable us to serve members without interruption. 
 

We are grateful to our member-owners for your patience as we worked to find new ways to serve you. 

Your openness to do things in new ways as well as your kindness and concern for our employees is what makes our relationship with you so special. 

While the pandemic tested all of us in ways never anticipated, it also taught us about the importance of people helping people, and how much relationships matter. Working together we weathered this storm with strength and resilience.
 

Despite the shockwaves to the economy this past year, Community First remained on solid financial footing.

Thanks to the faith and support of our member-owners, the steady guidance of our board of directors and decades of building strong reserves, your credit union was able to continue serve and support our members, our employees and the communities we call home. We are humbled and proud that we were able to do this and still achieve strong financial results. 

During 2020 membership grew to 145,544, and we welcomed 5,722 new member-owners including the members of Oshkosh Truck Credit Union who merged with us on March 1, 2020. Total assets grew by $821 million to $4.23 billion, a 24% increase over 2019. Deposits increased a record 26.4% to $3.7 billion; $491 million more than planned. The significant increase was largely due to the stimulus funds members received. Loans grew 12.6% to $2.9 billion. 

Much of our loan growth was fueled by historically low mortgage rates. We’re proud to have helped thousands of members either purchase or refinance a home in 2020. The SBA’s Paycheck Protection Program (PPP loans) to help member businesses also helped the credit union with both loan growth and fee income paid by the SBA. 

The dramatic decline in interest rates has impacted the credit union and our members. While dividends paid to members increased over 2019, the credit union’s Investment income decreased in 2020 by more than $7.4 million.

With the rapidly decreasing rate environment our member savers feel a negative impact and members who borrow benefit. We work hard to keep our deposit rates at the top of our local markets, and pay members more than we can earn investing the credit union’s excess funds. It is a careful balancing act, and thankfully, the loan interest income from members who borrow with the credit union enables us to keep our deposit rates as high as possible.  

Delinquency and charge-offs were significantly lower than industry averages and show our members’ commitment to the credit union. We were able to add $37 million to reserves, continuing to ensure our long-term financial stability. At December 31, 2020 reserves stood at 11.62% well above the regulatory requirement of 6%.  

The events of 2020 tested us, but working together, we still managed to achieve record growth, financial strength and stability. Equally important, we continued to provide significant support to the communities our members call home. In 2020 more than $1.7 million was distributed to assist non-profit partners and invest in programs that benefit members and enhance the quality of life.
 

It is a testament to the power of the cooperative and the importance of relationships.

We have several exciting new initiatives underway in 2021 to improve member service. We will provide added security and convenience with contactless debit and credit cards, plus offer instant issue for debit cards. A new digital banking platform will be introduced later this summer, giving members even more ways to manage your money. Adding card controls, real time alerts, new budgeting, goal setting, expense tracking and financial management tools with credit score monitoring and even more convenience and new features. The addition of biometrics to enhance security, electronic document signatures and delivery, and a better online borrowing experience will also be added. Finally, we will complete work on the remodeling of the Oneida St. office and begin an addition and remodeling of the Ballard Rd. Branch. Plans are also being developed for a new office in Manitowoc and we continue to explore other opportunities for branching within our market area based on member requests. 

From our Board and Senior Leadership and the entire team at Community First, thank you for your trust in us, and for your essential part in continuing this proud legacy. Looking back, if 2020 taught us anything it’s that together we can weather any storm. We celebrate all the lessons learned and will use those lessons to continue to thrive no matter the circumstances. How we deliver continues to change and evolve but one thing that will never change is our commitment to our relationship – because it’s the relationship that matters. Always has, always will.
 

Kathryn Sieman, Board Chair

Catherine J. Tierney, President/CEO