b'TREASURERS REPORT Aloha, KauaiFederalCreditUnionremainsasafeandwell-capitalizedinstitutionwitha strongbalancesheetandcreditmanagement.Ourcapital,liquidity,netinterest margin, and credit quality ratios remain strong with continued asset growth. In 2024, assets grew 17% to $198.3 million. Loans grew 22% to $159.1 million, supported by deposit growth of 16% to $140.0 millionsignicant deposit growth coming from impact deposits, a testament to our focus and achievements in the community devel-opment and social impact space. Part of the loan growth was also funded through an additional $12 million in wholesale borrowings, backed by our mortgage and invest-ment portfolio. Our borrowing capacity in the wholesale markets and overall liquidity remains strong12-month cash and contingent liquidity is forecasted at $72 million. Our investment in the East-side market, developing an economic resilience center, translatedtohigher-than-normaloperatingexpensesaswescaledpersonneland non-personnel resources to serve new markets. Higher operating expenses and the deferment of key noninterest income revenue streams from US Treasury programs resulted in a net loss of $2.5 million in 2024. In the absence of US Treasury-related grants, the net loss was expected as part of the longer-term operating model, which breaks even at $200 million in assetsasset size that we will be operating in 2025.Our net worth ended the year at $15.9 million, with an 8.0% net worth-to-assets ratio. As a reference, a net worth-to-assets ratio above 7.0% is considered well-capitalized under regulatory standards.Our strong balance sheet, capital, and liquidity positions us well to continue our com-munity development workWe are looking forward to an impactful 2025!Mahalo, Roberta Charles'