2023 ANNUAL REPORT Caro Federal Credit Union

TABLE OF CONTENTS

• Agenda
• 2023 Annual Meeting Minutes
• 2023 by the Numbers
• Chairman’s Report
• 2023 Statement of Condition Summary
• Supervisory Committee Report
• Nominating Committee Report
• List of Board of Directors
• List of Supervisory Committee Members
• List of Administration
• List of Staff
• Learn about Kasasa®

AGENDA

• Call to Order
• Ascertain Quorum
• Last Year’s Minutes
• Introduce Volunteers and Management Team
• Reports
• Finance Committee
• Supervisory Committee
• Nominating Committee
• Service Awards
• Prizes
• Questions
• Adjournment

2023 ANNUAL MEETING MINUTES

August 24, 2023

Chair David Black called our meeting to order at 6:17 p.m. and welcomed all participants to our credit union’s Annual Membership Meeting. A quorum is present.

Chair Black reviewed the importance of a membership meeting for our financial cooperative.

Black asked all present to review the minutes and reports in this year’s Annual Meeting Report. A link to our Annual Report including the Finance, Supervisory, and Nominating Committee reports can be found through the QR codes throughout the room. A motion and second were made to accept the minutes and reports as presented. Motion carried.

Chair Black introduced himself and noted he has been a member since the late 1990’s. Black also introduced Caro’s Management Team.

Chair Black thanked all present for their membership, and discussed the role of community development financial institutions along with Caro’s mission. He reviewed Caro’s financial strength. This past year, Caro welcomed the members of St. Francis Federal Credit Union into the Caro family and added a branch location in Greenville. Caro also expanded our small business services and improved our technology services through new ATMs, coin machines, and digital banking security. Black provided a member’s savings story where Caro looked at her situation and was able to pay off 4 credit cards, refinance her vehicle, and cash advance her $5,000 while keeping her car payment the same. At Caro, we are focused on changing people’s lives with creative, problem-solving solutions to the financial challenges life throws at each of us, both simple and complex.

Staff service awards were presented to Missy Hallbick and Diane Waters.

Prize winners were drawn.

Chair Black thanked everyone for their attendance and encouraged members to tell others how Caro can be of service.

With no further comments or questions, the meeting was adjourned at 6:42 p.m.

David Black, Chair

Pam Cope, Acting Secretary

CHAIRMAN'S REPORT

On behalf of Caro’s Board of Directors, I want to give the Board’s sincerest thanks and appreciation to each and every one of you for your membership and support of Caro. Without you—our members—Caro could not fulfill our mission to change people’s lives with creative problem-solving solutions for the financial challenges life can throw at you and do so as a not-for-profit financial cooperative. Our success is dependent on our members’ success.

Caro had a very prosperous year in 2023. In 2023, Caro remained financially strong, serving over 7,800 members with over $98 million in member deposits and over $87 million in member loans. Caro also completed multiple projects in 2023, including redesigning our St. Francis branch in Greenville, expanding our small business services, and improving our technology services through new ATMs, coin machines, and digital banking security. All of this was accomplished by our team consisting of only 12 volunteers and 25 staff members. Caro looks forward to continuing to find ways to improve our products and services for our members going into 2024 and beyond.

In 2024, Caro is embarking on an exciting collaboration with another Columbia-based credit union. Caro and Brookland Federal Credit Union (“Brookland FCU”) are collaborating to expand services to Brookland FCU members by sharing core software services. Brookland FCU members will soon have access to enhanced money management tools, including a more streamlined online and mobile banking experience. Through this coalition, Brookland FCU will add lending opportunities, such as home and business loans, as well as tap into a network of more than 30,000 surcharge-free ATMs and 5,000 shared branches nationwide. This conversion will occur during the May 31, 2024 weekend and we appreciate the Caro’s members’understanding and patience as Caro’s branches and services will be limited during the conversion weekend.

As a community-focused credit union, Caro is committed to serving you not only as a valued member but also as a cherished part of our family. Caro strives to embody the principles of compassion, integrity, and stewardship in all that we do.

As a Community Development Financial Institution (“CDFI”), Caro gives hope to members that struggle every day to make ends meet. Whether it’s when Caro helped keep a member from getting evicted, or provided a small starter business a loan, or helped a member save $3,000 on a used car purchase, Caro is committed to finding real world solutions for real people.

Our vision is simple. At Caro, we are focused on changing people’s lives with creative problem-solving solutions for the financial challenges life throws at each of us, both simple and complex. We give you the tools you need to succeed, help you achieve your goals, and work together on a plan that is easy to follow.

David Black, Chair

TREASURER STATEMENT OF FINANCIAL CONDITION

Inflation has cooled and the central bank's lowering of interest rates this year is widely expected. However, the challenges ahead include geo-political turmoil, a lingering possibility of a recession, and of course a high-profile election in November. Come what may, Caro’s directors and executive team are prepared to continue to provide our members with smart financial solutions.

Respectfully Submitted,

Dr. Brooke W. Stanley, Treasurer

SUPERVISORY COMMITTEE REPORT

The annual Supervisory Audit, Bank Secrecy Audit, CPA Audit, and SAFE Act audits as of December 31, 2023, are all in progress.

The National Credit Union Administration (NCUA) performed their regulatory exam as of March 31, 2023.

Multiple interim audits and an Annual ACH Audit were completed in 2023.

The audits reviewed compliance requirements, financial statements, accounting, and internal controls. All findings were favorable.

NOMINATING COMMITTEE REPORT

The Nominating Committee met to consider eligible candidates for the Caro Federal Credit Union Board of Directors.

On behalf of the nominating committee, the following slate of officers has been selected:

3-Year Terms:

• David Black
• Rob Nettles
• Gloria Johnson
• Brooke W. Stanley

2-Year Terms:

• Ashley Maciaszek

Since there are five candidates for the five open positions, no nominations from the floor are required.

Respectfully Submitted,

Pam Cope, Chair

David Black

Mary Alexander

*APY = Annual Percentage Yield. See credit union for details. Federally insured by NCUA. Equal Housing Lender.