Mike Strickland Chairman of the Board A FINANCIAL PANDEMIC!

The Coronavirus of 2020 presented many challenges for our nation and Spero Financial’s members. We responded by modifying our operating policies and procedures to provide the level of service our members expected and deserved. Loan payments were deferred, branch drive-thru hours extended, and emergency loans provided to members in dire financial need due to job loss created by the pandemic. We overcame the challenges presented by Covid-19, and our credit union remained strong.

As 2022 progressed, it became evident that we were facing yet another pandemic, albeit one of a different nature. This was a financial pandemic marked by rapid price increases and rampant inflation. Everything from housing to groceries to gasoline increased significantly in price. In an attempt to combat the rising inflation, the Federal Reserve Board raised the federal funds interest rate seven times during the year. Four of the increases were at 75 basis points. We had not seen a 75-point increase since 1994. The Fed’s action, while designed to slow economic growth and curb inflation, made it more expensive for consumers to take on credit.

Rising prices strained disposable income, and, despite higher borrowing rates, many of our members needed loans for housing, transportation, education, and other necessities. Loan demand increased by 19.42% year-over-year, as we provided $83 million in loans. Our borrowing power in the financial markets helped us meet this unprecedented loan demand.

On the flip side, many members took advantage of rising interest rates to increase their earnings by saving more. Spero Financial’s certificate of deposit (CD) and other savings rates were very attractive to depositors. Deposits grew by $98.5 million (20.16% year-over-year). These increased deposits also helped fund the year’s intense loan demand — a true win-win as savers earned top rates and borrowers were able to fulfill their credit/lending needs.

Despite the challenges we faced in the financial environment, we made it easier to do business with the credit union by continuing with our Digital Transformation initiative. We launched Online Account Opening, giving current members access to open new accounts directly within Online Banking and new members the ability to open their memberships directly online. We made it easier for members to make their mortgage and credit card payments directly within Online Banking. We introduced digital wallet, allowing members to add their debit card to their digital wallet to make purchases directly from their phones. 60,000 transactions were conducted in 2022 alone!

Despite the financial challenges encountered in 2022, we overcame adversity. In ending our year with a 6.77 (out of 7) rating on our member satisfaction survey, we are confident that we yet again met member needs and continued our mission of “improving financial lives to make our communities greater places to live, work and play.”

MICHAEL (MIKE) W. STRICKLAND Chairman of the Board

Frankie Nelson Chair of the Supervisory Committee

AS CHAIR of the Supervisory Committee, it is my great privilege to report another strong fiscal year for Spero Financial Federal Credit Union. As of December 31, 2022, financial outcomes reflect sound operational stability for the organization, in conjunction with favorable quarterly internal audit reports. These measures are a result of how the management and staff of Spero Financial are unrelenting in exercising sound judgment and practices as they carry out their fiduciary responsibilities in utilizing member funds so that both members and the Credit Union can soar financially now and into the future.

Each year Spero Financial undergoes an external audit from a third-party CPA firm as an added layer of accountability. This audit measures the effectiveness of the organization’s financial management. I am pleased to report that Spero Financial has yet again received a very positive “unmodified opinion” regarding the Credit Union’s financial statements for 2022 year-end.

Even amongst the 2022 high-inflation economic environment, the Credit Union experienced significant growth across assets and loans. A record year in deposit growth of $98.5 million paired with $4.3 million in income signifies the fiscal strength and stability of the organization.

2022 Key Performance Indicators

• Net Worth Growth of 7.47%

• Assets increased to $685 million (24.31% gain over 2021)

• Loans increased to $511 million (19.42% gain over 2021)

• Deposits increased to $588 million (20.16% gain over 2021)

• Net Income closed at $4.3 million

• 6,050 New Members joined the Credit Union

I encourage you to review the balance sheet, income statement, and other financial information included in this year’s report. You will find that Spero Financial continues to operate in a safe and sound manner, strategically focused on improving the financial lives of our members. This financial strength positions us well to soar into the future!