b'Treasurers ReportAloha,In 2025, Kauai FCU continued to strengthen its nancial foundation while advancing major community development initiatives that support the long-term resilience of our island. The years results reect disciplined balance sheet management, strengthened reserves, and improved operating performance across the organizationcontributing to a more resilient earnings base and a stronger capital position.Kauai FCU also made signicant investments in community development, including establishing and activatingoureconomicresiliencecenter.Thisworkdemonstratesourcommitmenttoexpanding access to nancial services, supporting local entrepreneurs, and building long-term economic stability for our members.Kauai FCU generated $1.6 million in Pre-Provision Net Income driven by: Stronger margin performance and improved balance sheet mix Higher levels of non-interest income, including the impact of Employee Retention TaxCredits Continued discipline in managing operating expensesConsistent with our stewardship philosophy, 75% of Pre-Provision Net Income was allocated to CECL reserves to cover 2025 charge-offs and strengthen protection against future credit losses, enhancing our ability to support members through economic cycles and ensuring we remain well-positioned for future growth. After reserve allocations, Net Income totaled $0.4 million. Our net worth ended the year at $16.3 million, with an 8.3% net worth-to-assets ratio. For context, a ratio above 7.0% is considered well capitalized under regulatory standards. Looking AheadKauai FCU enters 2026 with a stronger earnings foundation, fortied reserves, and a balance sheet aligned with our mission-driven investments. Our nancial position supports continued progress toward community resilience, economic empowerment, and the long-term well-being of our members.Mahalo,Mark KunimotoTreasurer & Chairperson ALCO'