4Front 2022 Annual Report

Banking, Smart and Simple. 2022 Annual Report

Board of Directors

Our Board members come from all over northern Michigan. They are unpaid volunteer professionals who selflessly lend their time and expertise to guide the direction of 4Front. Directors are elected by the membership by a one member, one vote election and serve 3 year terms.

Todd Rohrback, Chairman

Byran Lindfors, Vice Chairman

Jack Hodge, Treasurer

Skyler Fort, Secretary

Mike Slater, Director

Brian Ausdemore, Director

Charles Hague, Director

Julie Kosloskey, Director

Matilyn Meadows, Director

Welcome from the CEO

Dear Member,

2022 was a year to remember for our members, community, and team. We started the year with the launch of The 4Front Foundation, reached $1 billion in assets, and expanded into west Michigan. Even with all these accomplishments, 4Front remained dedicated to our communities. Our team continued their commitment to volunteering their time to make our community a better place. We donated $125,652 to 93 community organizations, while our team contributed their valuable time and volunteered 1,669 hours.

Through the hard work, ingenuity, and tenacity of our collective 4Front team, we’ve achieved an important milestone in the financial institution world; $1 billion in assets. Shout out to our team, which positioned us to offer state-of-the-art mobile banking, with chat and text, as well as extended VideoTeller hour service. Our team is truly living the credit union mission by being their best, day in and day out. People helping people lives in our veins.

Our incredible members, nearly 100,000 strong and over 6,000 business members, deserve a heartfelt thank you for their loyalty and essential role in helping us reach this incredible moment. It’s what happens when, for almost 70 years, we’ve made an unwavering commitment to making banking smart and simple.

Reaching this milestone puts us in an even better position to serve our communities through volunteerism and direct financial support. In good times and bad, we’re here for the long haul, in lockstep with our member’s financial journey.

2022 was a year of financial extremes. The year started with the Fed interest rates near 0%, and consumer savings accounts fairly flush. However, inflation started becoming a major issue, and consequently, the Fed raised interest rates seven times, leading to the most significant nine-month rate increase in 40+ years. 4Front moved swiftly to issue desirable CD rates while also increasing many of our savings account rates. We also maintained our 4% checking product. As interest rates rose to 15-year highs, we witnessed more of our members struggling to finance more expensive homes and autos. However, 4Front continued working with our members and communities to find creative solutions to get people into their dream car and home. In fact, we funded more loans and lent more money to more people in 2022 than any other year in our history.

Now to the future. While we have many initiatives planned for 2023, this year will focus on geographic expansion and taking our award-winning products and services to new communities. In late January, we opened branches in Muskegon, Holland, and Zeeland. In late 2023, we will be expanding into the Upper Peninsula with the purchase of Old Mission Bank. Upon completion of the transaction, the Sault Ste. Marie and Pickford locations will temporarily operate as “Old Mission, a Division of 4Front Credit Union” until we can complete a system conversion in late 2023. At that point, the branches will be rebranded as 4Front, and we will be able to offer the same excellent services our current members have come to expect to the great people in the eastern UP. While we have the technology to service anyone remotely, by the end of 2023, we will be able to see your smiling faces in communities from Sault Ste. Marie to Holland.

Please know that as we grow, we will remember where we came from and those who have contributed to our success. We will continue to offer best-in-class service, whether you wish to manage your money at a traditional branch or through our increasingly easy-to-use technology. At 4Front, wherever you are on your financial journey, we’re here to make banking smart and simple.

We want to thank our members for trusting us with their financial needs, and we look forward to partnering in 2023 and beyond.

Wishing you all the best in 2023,

Andrew Kempf, Chief Executive Officer

Thank you from the Chairman

Dear Member,

During 2022, we continued to experience social unrest, staffing shortages, inflation, political division, and financial extremes. Despite these challenges, 4Front Credit Union remained focused on its members with best-in-class financial products and services to help our members achieve their financial goals. In fact, we were named as the “Most Innovative Financial Institution” in the annual Purposeful Bank Awards for our savings platform designed to educate members about personal finances.

4Front Credit Union reached a significant financial industry milestone in late 2022, surpassing $1 billion in assets. Our members, the communities we serve, and the 4Front Credit Union team all deserve recognition and a heartfelt ‘thank you’ for the trust and commitment to 4Front Credit Union that propelled us past that threshold.

In a continued commitment to the communities 4Front Credit Union serves, we launched the 4Front Foundation to further impact those who demonstrate a need. In its first grant cycle, over 50 applications were received. The Foundation awarded $25,000 in grants to five not-for-profit organizations, including Hand2Hand, Boots for Kids, and the Cheboygan County Habitat for Humanity. Tax deductible contributions can be made to the Foundation at any branch or via the Credit Union’s website.

In October, the Board of Directors again collaborated with 4Front Credit Union’s management team to develop a bold strategic plan for 2023, building upon another successful year. We will be casting a wider net to increase membership through intentional growth along west Michigan’s lakeshore with the opening of three new branch locations in Holland, Zeeland, and Muskegon in January 2023. With growth comes the financial strength that allows 4Front Credit Union to maintain its low fees, high savings rates, and desirable loan rates for its members.

With 2022 in the rear view mirror, 4Front Credit Union will strive to remain a streamlined and forward-focused financial institution as we turn our attention toward 2023. Wherever you may be on your financial journey, we aspire to make banking smart and simple for you.

On behalf of the board of Directors, thank you for the opportunity to serve; have a safe and prosperous 2023!

Todd P. Rohrback, Chairman

Our member’s words count.

We randomly survey more than 1,000 members each month through email. We review each and every one and use the results to improve all that we do.

“Great

Team! Great Credit Union!”

– Brett

“I want to take this time to thank all of you who were involved in making this whole thing possible....kudos to not only Amber but also to the team, Kathleen & Tamara. Great job!”

– Rebecca

“Rebecca was absolutely amazing and made the process very easy. She was professional and had a great attitude!”

“Taylor was extremely knowledgeable and very professional. He guided me through every possibility so that I could make the right choices to suit my needs, and made me aware of options I could take in the future. There is nothing to improve on with him. He was perfect and made me feel like a valuable customer. So... please thank him for me.”

– Joshua

“Devon was completely focused on questions I had and made suggestions to help me through the entire process of opening accounts, paying off accounts and issuing a credit card. Just in case I forgot, she wrote down the approximate days when my other cards could be expected.”

– Aeron

– Faith

March 3, 2023

Call To Order

Approval of 2021 Annual Meeting Minutes

Election of Directors

State of the Credit Union

Old Business

New Business

Adjournment

2021 Annual Meeting Minutes

The meeting was called to order at 6:00 p.m. by the Chairman of the Board, Todd Rohrback, at Red Ginger in Traverse City, Michigan, as well as virtually via Zoom.

Chairman Rohrback and CEO, Andy Kempf, welcomed all members and guests.

Chairman Rohrback asked for a verification of a quorum. Charles Hague, Secretary, reported virtually that a quorum of the membership has been met.

Chairman Rohrback directed members to the minutes of the 2021 Membership Meeting. Motion made by Katheryn Hildabridle, seconded by Brian Ausdemore, to accept the March 5, 2021 Annual Meeting minutes as presented, unanimous, motion passes.

Director Peggy Harold resigned at the end of 2021 and her term was set to expire on March 4, 2022. Matilyn Meadows was nominated to fill the remaining term of Peggy Harold. Three incumbents were nominated for three positions, and no mail ballot was necessary to affirm that Bryan Lindfors (Vice Chairman), Julie Kosloskey, and Matilyn Meadows will fill the three (3) year terms as Directors of the Board. Chairman Rohrback introduced the entire Board of Directors and thanked them for their service.

Report of the CEO and President

CEO, Andy Kempf spoke briefly on the state of the credit union and touched briefly on financials as well as provided an update on the many ways we helped our members and communities in 2021. He also shared details on future expansion goals as well as introduced our new 4Front Foundation. Prudential to name a few.

Old Business

None

Brian Ausdemore motioned to adjourn the meeting at 6:15 p.m. Kathryn Hildabridle seconded, unanimous approval to adjourn.

Todd Rohrback, Chairman

Bryan Lindfors, Secretary

Financial Statement

4Front has reached one billion dollars in assets!

Achieving this milestone empowers us to do even more for our members, while giving them the same small town service they deserve.

The Year in Review

We’re here!

We’re welcoming new members to our Muskegon, Holland, and Zeeland locations with a special 6%* 6-month CD promotion! Stop in to one of our new west Michigan branches and claim the offer!

And will soon be here!

An opportunity presented itself that was truly a win-win. We were offered the opportunity to merge with Old Mission Bank. With locations in Sault Ste. Marie and Pickford, it’s official: We’re Yoopers! The ink isn’t dry on our paperwork, and we already have new members!

Muskegon

Holland

Zeeland

Pickford

Sault Ste. Marie

is

annual rate of return, taking into account compounding interest. Limited-time 6-month. Rate effective as of 2/1/2023. Minimum balance $1,000, up to $20,000. New money only. Membership required with $1 deposit to open a Prime Share. Penalty applies for early withdrawal. If you do not make a selection of a new certificate prior to the expiration of your 6-month certificate promo term, you will automatically be rolled into a certificate of the next highest term length. Fees may

Plinqit®* saves the day.

Our members have saved over $500,000 with our fun saving tool, Plinqit. For completing their saving goals, taking tutorials and referring friends, users have nabbed over $1,000 in free money.

Finopotomus Award.

Our involvement with Plinqit earned us 1st Place in the 2022 Marketing and Member Communications category of the Tekkie Awards. Finopotomus? It’s a play on “Hungry CU’s”.

We’re lenders at heart.

We put over 6,000 folks in vehicles of their choice at dealerships across Michigan. Approvals are often in six minutes. Local lending is fast.

6,991 Indirect loans funded totalling $169,364,037

When life happens, there’s QuickCash. Car repair? Urgent care? We’ve got you covered with QuickCash. Cash to cover the unexpected, from $200 to $4,000, can be yours in minutes. No credit check required. Certain restrictions apply.

96 Commercial loans funded totalling $40,000,000

521 Mortgage loans funded totalling $51,699,950 which put over 100 families in new homes.

2022 Impact

Our numbers speak for themselves.

Prove your identity - no app needed. MemberPass is a secure, digital, touchless, hassle-free way to prove your identity for all transactions at 4Front. It’s safe, it’s secure, and it saves time. It makes every experience with us faster and smoother.

We keep growing.

We’re now over 99,952 members strong. We ended the year with $1,011,363,063 in total asets. Yep, over a billion.

Straight4ward Rewards keeps rewarding. We made a total of $2,103,898 reward payments to13,512 average qualifying accounts in 2022!

Member Service with an emphasis on “service”.

Our Communications Center handled126,663 calls.

VideoTellers handled 212,908 sessions. We experienced 16,990,120 online and mobile banking logins in 2022.

Get paid up to two days sooner with Fast4ward Payday*. !

When you’re enrolled in Direct Deposit, you can get your payroll, retirement, or Social Security check up to two days early! It’s your money, so why not have it sooner?

4Front’s Q2 Smart platform wins

“Most Innovative Financial Institution”

Purposeful Banker Award!

Shout out to our well-oiled online banking machine!

Best & Brightest! Again!

For the 4th year in a row, the National Association of Business Resources has once again recognized 4Front as a Top 101 Best & Brightest Companies to Work For In The Nation. Congratulations, team 4Front!

To date, we have presented free financial literacy curriculum to 5,300 Michigan students at 30 schools.

We’re 4 investing in you.

We’ve invested $125,652 in northern and western Michigan community organizations and events. We’ve partnered with Short’s Brewery to support the Nakwema Trailway, the final connector in a 325 mile network linking multiple communities and over 25 protected natural wildlife areas.

We don’t shy away from being hot.

We’ve been recognized by the readers of Traverse Magazine for best Bank or Financial Insitution seven years running. Our competition is green with envy.

We’re 4 giving our time. Our teams racked up 1,669 volunteer hours for 2022.

We won “Best New Member Experience” from Member XP!

We’re excited that our members took time to give us feedback on our service.

“I’m proud of the team at 4Front for making this possible for our members.”

- Keith Stevens, Member Experience Manager

WE MAKE BANKING SMART AND SIMPLE, YEAR AFTER YEAR.

A LOOK BACK, A LOOK FORWARD.

Online & Mobile Banking logins

16,990,120

Telephone Calls Answered

We’ve grown.

We are now over 99,952 members strong!

VideoTeller Interactions

126,663 212,908

$125,652

Invested

In northern and western Michigan communities.

We’re busy.

Our members continue to appreciate our online, mobile and VideoTeller capabilities.

We’re proud.

Giving back to our communities makes each and everyone of us stronger and better.

1,669

Volunteer Hours

From helping seniors to walking puppies, we’re there.

5,340 Students

We’ve presented financial literacy curriculum in over 30 schools.

“The Traverse City Turkey Trot enjoys working with 4Front on this great community event that, after 14 successful years in a row, is now a tradition. 4Front’s partnership has helped the event grow and give back to our community partners.” – Brian Hagerty, Traverse City Turkey Trot

“I love being an active participant in my community. From a more vibrant downtown, or cleaner and more user-friendly parks, future generations will enjoy this area long after I’m gone.” – Jeff Bassett, 4Front VP Treasury Management

“Thank you, 4Front, for sponsoring the Banzai! program in our classroom! I used it with my junior and senior classes and thought it was a very informative and engaging program.” – Boyne City High School teacher

What’s Next?

We’re already off to an exciting start in 2023.

Tune in to our podcast.

“Tell me it’s Friday” is our podcast where our Community Relations Specialist, Meghan Morelli, sits down with money matter experts, business leaders, nonprofit organizations, event organizers, and community advocates to talk about what’s going on out in their world. Tune in. Hey, it’s Monday and we’re all just trying to get to Friday! So why not start the week off with some laughs? And if we learn a few things along the way, then we’d say we’re doing alright. See how to listen, like and subscribe at 4frontcu.com/podcast.

We’re 4 a better world.

It’s been a busy year for The 4Front Foundation! We awarded $25,000 in grants to 5 different non-profits from western and northern Michigan. We also donated $2,500 to the Otsego Community Foundation to help with tornado relief efforts following the tornado that struck the community of Gaylord on May 20, 2022.

Grant recipients: Northern Michigan Equine Therapy; Hand2Hand; Cheybogan County Habitat for Humanity, Home Stretch Nonprofit Housing, and Boot for Kids.

Our first fundrasing event raised over $16,500. We’re currently accepting applications for scholarships for graduating high school seniors. Mark your calendars - we’re hosting our annual 4Front Foundation gala on June 3. This summer, we’ll open our second grant cycle.

Our giving is focused on four pillars: providing scholarships, grants, financial wellness education, and emergency disaster aid to our communities. Visit 4frontcu.com/foundation to learn more and donate.