2024AnnualReport-DIGITAL-3.19.25

Treasurer’s Frontwave Credit Union continues to successfully fulfill its mission making financial dreams come true, both within the Marine Corps and the communities we serve in San Diego, Riverside and San Bernardino counties. As a result, the Credit Union’s financial performance continued to improve in 2024 as it supported members through a high-interest rate environment. Short-term interest rates peaked during the year at over 5%, however the Federal Reserve began reducing short-term rates with a 0.50% reduction in September followed by an additional 0.25% reduction in both October and December. Despite higher rates reducing member demand for consumer and real estate loans, Frontwave was successful in growing its loan portfolio by 1.72% from the prior year end. Higher rates also led to increased dividend payments to members. During 2024, Frontwave paid its members a record $16.7 million in dividends. REPORT

Assets Cash, prepaids, receivables & other assets 2024 Financial Statements*

12/31/24 120,887,531 778,479,337 61,605,884 120,355,353 (7,714,340) 299,000,822 11,094,747 25,389,465 1,409,098,797 1,109,827,517 52,046,020 88,701,808 (28,734,047) 187,257,500 1,409,098,797 48,256,059 12,781,157 28,030,076 89,067,292 (26,015,998) (24,980,437) (3,153,693) 4,292,720 33,072,009 ( 2 5 , 8 1 4 , 96 0 ) 7,257,050

12/31/23 151,875,343 833,537,732 58,696,601

$

Regular loans to members Visa ® loans to members Purchased loans Less allowances for loan losses Investments NCUA Share Insurance Fund Fixed assets (net) Total Assets

51,971,059 (7,707,017) 304,003,373 11,229,831 26,273,826 1,429,880,748 1,203,417,728 52,046,638 81,444,759 (35,634,058) 128,605,681 1,429,880,748 41,974,964 7,614,687 27,311,539 76,901,190 (25,271,702) (32,486,032) (3,013,424) 4,824,656 20,954,688 ( 1 6 , 7 1 4 , 41 9 ) 4,240,269

$

Liabilities and Equity Shares of members

$

Reserves Undivided earnings Unrealized gain/(loss) on AFS Investments Other liabilities Total Liabilities & Equity

Our solid financial performance and contributions to the community reflect our commitment to strengthening the financial well-being of our members and communities. As a financial cooperative, our member-owners gain value by banking with Frontwave. We thank our loyal new members and encourage them to explore all available products and services Frontwave has to offer. We are grateful for our members’ trust as we continue to strive to be the best place they’ve ever banked. A strategic focus in 2024 was seeking operating efficiencies that improved the member experience and eliminated costs. This ongoing effort resulted in a net reduction in operating expenses in 2024 despite continued investment in technology designed to improve service to our members. As a result, Frontwave generated net income of $7.3 million, increasing its Net Worth Ratio to 9.99%. With a Net Worth Ratio of nearly 10%, Frontwave is considered well capitalized by industry regulators. Being well capitalized ensures member deposits are safe, and enables the Credit Union to grow, continue to enhance services, and offer competitive rates to our members.

$

TOTAL MEMEBRSHIP

Profit and Loss Analysis Interest from loans Interest from investments Other income Total Income

+0.64%

$

$

Compensation & benefit expenses Office operating costs Education and promotion Other non-operating income (expense) Available for dividends Less dividends paid Net Income

$

TOTAL ASSETS

-1.45%

$

TOTAL DIVIDENDS PAID TO MEMBERS +27.5%

Members

Shares (in millions)

Assets (in millions)

$1,176

117,291

$1,040

2021

2021

2021

2022 2023

2022 2023

2022 2023

$1,359

122,555

$1,086

$1,430

124,372

$1,203

2024

2024

2024

$1,409

125,171

$1,110

TOTAL INCOME

Loans (in millions)

Capital (in millions)

Net Income (in millions)

+15.82%

$636

$125

$8.36

2021

2021

2021

2022 2023

2022 2023

2022 2023

$941

$131

$5.58

$944

$133

$4.24

Amanda Cook Treasurer

2024

2024

2024

$960

$141

$7.26

*This information has been derived from the Credit Union’s annual unaudited financial statements.

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