11 SEPARATE FINANCIAL STATEMENTS 2025 or 4.1 percent (2024 - 4.4 percent). However, the appetite for loans outside of mortgages continues to fall below expectations resulting in a decline in consumer loans of $25.4 million (2024- $37.0 million) or 4.2 percent (2024 - 5.7 percent) while business loans contracted by $580.9 thousand (2023 - $552.2 thousand) or 18.3 percent (2024 – 14.8 percent). Asset Quality Non-performing loans or stage 3 loans were $19.3 million or 11.2 percent lower than the prior year due to prudent delinquency management, compared to a decline in Gross Loans by $8.8 million or 0.8 percent. Combined, this contributed to the 1.5 percent decline in the delinquency ratio this financial year. Delinquent loans over 31 days (stages 2 & 3) decreased by $17.3 million or 8.7 percent, delinquent loans less than 31 days (stage 1) however, increased by $8.5 million or 0.9 percent. Given the cumulative impact of the movements, expected credit losses allowances in relation to loans decreased by $3.7 million or 9.3 percent to move from $39.6 million in 2024 to $35.9 million at March 31, 2025. The delinquency rate for the fiscal period moved from 14.8 percent to 13.3 percent at March 31, 2025. Liabilities The Credit Union’s operations continued to be funded solely by member deposits, which at March 31, 2025, totalled approximately $1.6 billion representing growth of $40.6 million (2024 - $23.9 million) or 2.7 percent (2024 – 1.6 percent). During the fiscal the average monthly deposit cost was $1.5 million as compared to the prior year of $1.6 million. The organization currently maintains a higher-thanmarket rate on its core deposits thus ensuring that 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. Total Other Liabilities Total Other liabilities increased by $7.4 million (2024 – $7.5 million) or 17.7 percent (2024- 22.1 percent) to move from $41.7 million in 2024 to $49.1 million at March 31, 2025. Major contributors to this increase were increases in accounts payable and accrued expenses of $4.3 million or 70.1 percent and the amounts due to member estates (Reimbursable Shares) which increased by $5.3 million or 19.2 percent. Decreases were recorded in the fair value adjustment (benefit) relating to staff loans by $541.5 thousand or 20.2 percent, unallocated receipts to members, unprocessed bill and payroll payments arising out of timing differences decreased by $852.6 thousand or 21.7 percent over the prior year and finally, the lease liability by $762.6 thousand or 56.5 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, 2025, total members’ equity stood at $197.1 million, up from $194.8 million as at March 31, 2024. The increase of $2.2 million or 1.1 percent was predominantly attributable to the growth in the statutory and other reserves, and enhanced by the growth in retained earnings by $804 thousand or 13.4 percent. Distributions to members during the year were approximately $3.7 million which comprised of a share dividend of $669.9 thousand or 5.0 percent and an interest rebate of $2.0 million or 2.5 percent. Deposits Net Income Loans to members 2 Asset Growth Delinquency Ratio Loans to members 1 Delinquency Ratio
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