11 SEPARATE FINANCIAL STATEMENTS 2023 mortgages continues to be lethargic as there was a decline in consumer loans of $13.9 million (2022- $5.5 million) or 2.11 (2022 - 0.83 percent), while business loans also showed a moderate decrease by $1.1 million (2022 - increased by $105.6 thousand) or 22.2 percent (2022-increased 2.3 percent). Asset Quality Loans 90 days or more past due increased by $8.1 million or 5.3 percent during the period while non-performing loans (loans 90 days or greater) were $162.6 million or 13.8 percent out of the gross loans portfolio of $1.2 million. Delinquent loans between 31 to 89 days increased by $12.0 million or 42.3 percent to move from $28.3 million to $38.9 million, and loans less than 31 days past due increased by $11.6 million or 1.2 percent. Given the cumulative impact of the movements, expected credit losses in relation to loans decreased by $1.7 million or 26.7 percent to move from $6.5 million in 2022 to $4.8 million at March 31, 2023. The delinquency rate for the fiscal moved from 13.5 percent to 13.8 percent at March 31, 2023. Liabilities The Credit Union’s operations continued to be funded solely by member deposits, which at March 31, 2023, totalled approximately $1.5 billion representing growth of $47.5 million (2022 - $78.8 million) or 3.3 percent (2022 – 5.7 percent). During the fiscal the average deposit cost of $1.8 remained constant compared to prior year. The organization currently maintains a higher-than-market rate on its core deposits to ensure its members receive a premium return on their savings compared to similar financial products in the market. This benefit to members was provided while balancing the need to remain competitive and ensuring the continued financial strength and stability for which we are known, both of which were achieved. Other Liabilities Other liabilities decreased by $1.5 million (2022 – increased by $6.0 million) or 4.2 percent (2022 - increased by 20.0 percent) to move from $35.7 million in 2022 to $34.1 million at March 31, 2023. Other noted declines included accounts payable and accrued expenses, $2.6 million or 32.1 percent, as well as the fair value adjustment (benefit) relating to staff loans - $1.9 million or 93.1 percent. Increases were recorded in the amounts due to member estates - $2.0 million (2022- $6.1 million) or 9.5 percent over the prior year. Unallocated receipts to members, unprocessed bill payments and payroll arising out of timing differences, increased by $1.7 million or 126.1 percent. Equity Total equity which comprises members’ share capital, retained earnings and statutory and other reserves provides a safety buffer, ensures financial stability and allows for future growth and development. As at March 31, 2023, total members’ equity stood at $188.7 million, up from $184.4 million as at March 31, 2022. The increase of $4.3 million or 2.3 percent was predominantly attributable to the contribution arising out of a positive net income of $9.4 million, and was enhanced by growth in the share capital of $433 thousand or 3.4 percent. Distributions to members during the year were approximately $3.8 million which mainly comprised of a share dividend of $631.4 thousand or 5 percent and an interest rebate of $2.1 million or 2.5 percent. Way Forward 2023 The financial services sector continues to evolve rapidly with evolving technologies providing the gateway for increased competition from non-traditional players. The Credit Union is not immune to the changes and is facing significant challenges, including more aggressive competition from our local banks, evolving expectations of members and continued escalations in regulatory requirements. The changing environment requires 2019 2020 2021 2022 2023 LOANS AND ADVANCES 1 Asset Growth 2019 2020 2021 2022 2023 Total Assets 2019 2020 2021 2022 2023 Deposits 2 Deposits Net Interest Income Membership Delinquency Ratio
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