Letter from President & CEO, Brian McKay

Brian McKay

PRESIDENT & CEO

IN REFLECTING OVER 2020 , I can’t help but first think of the Global Pandemic. It was unexpected and disruptive to say the least, but it also magnified the core strength of our organization. We indeed found strength in unity, working together to continue to improve financial lives. I would be remiss if I didn’t thank you, our members, for your continued support and patience throughout it all; our staff for their continued perseverance and dedication to our members; and our volunteers for their invaluable insight in navigating the unprecedented time.

In responding to COVID, our organization established five main priorities. First and foremost, our employees — as we knew that if our team felt safe and valued, they could then focus on providing incredible service to our members. I made a promise to our staff that no employee would be let go because of COVID, and I am proud to share that we held true on that promise. Secondly, we continued to follow our business continuity plan to ensure minimal to no disruptions in critical member processes. I am happy to report because of a solid plan, there were no delays in processes. Thirdly, you, our members, and ensuring you could continue to access your funds as safely as possible. While branch lobbies closed for a period, we extended drive-thru transaction capabilities and drive-thru hours to ensure that all members’ needs were met as best possible. And lastly, we continuously looked for ways to add value to your financial lives and lift up our local communities — at a time many needed it most. I encourage you to turn to page 8 of this report to see how we were able to do just that — from our staff to our members to our communities.

While COVID-19 halted so much, at Spero Financial, we continued to be laser-focused on elevating our members’ financial game — after all, you’re our MVPs!

In many ways, COVID became a catalyst for digital transformation. We introduced Online Loan Pay, a quick and secure platform that allows you to make online loan payments. And, in conjunction with opening our new state-of-the-art Five Forks branch in July 2020, we launched The NEST in 8 branches, a live-video feed with a Spero Member Service Specialist allowing us to centralize staff during the Pandemic to continue appointments in-branch.

Speaking of our new Five Forks branch, it has been a pleasure planting our roots in this community — one that I personally call home. We’ve had the privilege of already improving over 150 financial lives and are anticipating this number to steadily grow as we move into 2021. We also announced the expansion into another community — Anderson, South Carolina — and the strategic partnership with Anderson Federal Credit Union that was completed in February 2021. As a result of this merger, our organization grew to over 59,000 members, $525 million in assets, and 10 banking locations throughout the Upstate and Midlands. This partnership marked the largest merger of credit unions in the history of South Carolina. This feat was no easy undertaking. Because of the countless efforts of Team Spero, I am extremely proud to say that over 95% of AFCU members are still with Spero today.

In November 2020, we penned a new chapter in our organization’s story — changing our name to reflect our proud history as well as the hopeful optimism for our future. Holding fast to our history, mission, and cooperative spirit, we became Spero Financial — a name derived from the Great Seal of South Carolina — meaning hope. In my opinion, the timing couldn’t have been any more perfect, as HOPE is what our communities needed more than ever in the face of this trying year. Even more so, our new name reflects the characteristics by which we will continue to serve you, our members: agility, vigilance, adaptability, paired with innovative and dynamic financial solutions.

Not only did the Pandemic reveal the true strength of our people but also the financial stability of our organization. We have wavered many economic storms in our 85-year history, and I am proud to share we have done it once again. Because of the foresight from our leadership and Board of Directors, we had a surplus of capital in reserves that became essential to navigate the unexpected impacts of 2020.

While net worth was down 7.45% year-over-year, this was caused by a variety of factors: unexpected expenses of COVID, a large influx of deposits due to stimulus checks, traditional income generating channels being disrupted, and merger-related expenses to prepare for the completion of the partnership in early 2021. →