2022 FINANCIALS

2022 Supervisory Committee Report

The Supervisory Committee provides the Membership with an independent appraisal of the safety and soundness of SchoolsFirst Federal Credit Union's operations and activities. It does so in compliance with various financial and regulatory requirements.

In fulfilling these responsibilities, the Committee engaged Moss Adams LLP to perform the annual financial statement audit for the year ended December 31, 2022. Moss Adams issued its opinion that the Credit Union's financial statements are presented fairly in all material respects. In addition, the Committee held quarterly meetings to review, among other things, internal audit reports, internal controls and risk-management processes, and examinations by regulatory agencies.

In the opinion of the Committee, SchoolsFirst Federal Credit Union has operated in a financially sound manner and in accordance with applicable federal and state regulations. The Credit Union continues to be financially strong and well-managed, and the assets of the Membership are being effectively safeguarded.

Karen Cant
Chairperson, Supervisory Committee

Condensed Consolidated Statements of Financial Condition

As of December 31, 2022 and 2021 (in thousands of dollars)

ASSETS	2022	2021
Cash and cash equivalents	$ 1,028,894	$ 3,223,027
Investments available-for-sale, at fair value	1,811,602	1,421,907
Investments held-to-maturity, at amortized cost	7,132,526	8,161,805
Other investments, at fair value	50,683	71,861
Loans held for sale, at fair value	-	151
Loans, net	16,731,120	12,795,587
Accrued interest receivable	64,932	48,584
Receivable from other financial institutions	606,199	555,369
National Credit Union Share Insurance Fund (NCUSIF) deposit	230,482	212,001
Property and equipment, net	284,585	293,863
Goodwill and intangible assets, net	59,431	69,152
Other assets	163,371	117,488
TOTAL ASSETS	$ 28,163,825	$ 26,970,795

LIABILITIES AND MEMBERS' EQUITY
Liabilities
Members' shares	$ 24,285,245	$ 23,833,839
Accrued expenses and other liabilities	375,197	258,056
Borrowed funds	722,500	287,500
	25,382,942	24,379,395
Members' equity
Retained earnings	2,839,552	2,608,860
Accumulated other comprehensive loss	(58,669)	(17,460)
	2,780,883	2,591,400
TOTAL LIABILITIES AND MEMBERS' EQUITY	$ 28,163,825	$ 26,970,795
Capital ratio	9.87%	9.61%

Condensed Consolidated Statements of Income

For the Years Ended December 31, 2022 and 2021 (in thousands of dollars)

	2022	2021
INTEREST INCOME
Loans	$ 620,851	$ 490,613
Investments and cash deposits at financial institutions	140,154	120,960
TOTAL INTEREST INCOME	761,005	611,573

INTEREST EXPENSE
Members' shares	108,829	111,123
Borrowed funds	6,676	7,500
TOTAL INTEREST EXPENSE	115,505	118,623

Net interest income	645,500	492,950
Provision for loan losses	56,500	6,300
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES	589,000	486,650

NON-INTEREST INCOME
Member fees	46,487	34,855
Card interchange and ATM fees	82,158	75,670
Gain on sale of investments and loans, net	13	10,678
Other non-interest income	44,573	39,062
TOTAL NON-INTEREST INCOME	173,231	160,265

NON-INTEREST EXPENSE
Salaries and benefits	308,332	272,511
Operations and other administrative expenses	183,419	160,736
Occupancy	39,788	33,900
TOTAL NON-INTEREST EXPENSE	531,539	467,147