2025 Carolinas Telco FCU Annual Report

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2025 Annual Report

Carolinas Telco Federal Credit Union (CTFCU) is a trusted financial partner, dedicated to serving the evolving needs of our members across the Carolinas. Our commitment to personalized service and comprehensive banking solutions continues to drive everything we do. We strive to empower our members on their journey to financial success by providing innovative banking tools and tailored financial solutions. We offer a wide range of products including loans and deposit accounts for individuals and families designed to support the financial well-being of our members.

Letter from the CEO & Board Chairman

CTFCU Legacy Scholarship

CTFCU in the Community

Board of Directors

Supervisory Committee Report

Treasurer’s Report

Financial Highlights

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Letter from the CEO & Board Chairman

The economic environment of 2025 brought a welcome shift for the credit union industry. While many institutions continued to navigate the lingering effects of prolonged inflation and elevated consumer costs, gradual stabilization in our performance and improving market conditions helped create space for an operational recovery. For Carolinas Telco Federal Credit Union, 2025 marked a year of meaningful progress and renewed financial strength.

After a challenging 2024, your credit union returned to positive earnings in 2025, generating approximately $2.06 million in net income. This improvement was driven by an almost 55% reduction in the provision for credit losses, reflecting better consumer performance and strategic efforts to strengthen our loan portfolio. In addition, operating expenses decreased by $3.37 million, demonstrating our continued commitment to aligning our strategy with member needs and cost management.

We also saw growth in non-interest income, which increased by nearly 834 thousand dollars due to stronger interchange and other revenue. Furthermore, interest on loans increased by $247,776, further strengthening our balance sheet and enhancing our ability to invest in the services and digital tools our members depend on.

As a result of these improvements, CTFCU ended the year with a 14.77% Net Worth Ratio, significantly above regulatory requirements and peer averages. We also continued to deliver value to our members by paying over $4.6 million in dividends during the year, reflecting our dedication to offering competitive deposit rates even as economic conditions evolved.

Most importantly, 2025 was defined by the trust, loyalty, and engagement of our members. More individuals and families chose Carolinas Telco Federal Credit Union as their financial partner, reinforcing the mission that has guided us since 1934. We remain committed to providing impactful, people-focused financial services to the communities we proudly serve across the Carolinas.

As we look ahead, we enter 2026 with optimism, supported by a stronger balance sheet, healthier credit trends, and a more efficient operating foundation. We will continue working to expand financial access, improve the member experience, and uphold the legacy that has guided CTFCU for 92 years.

We extend our sincere gratitude to our Board of Directors for their dedicated leadership, to our Management Team and Staff for their commitment to serving our members each day, and to you, our members, for the trust you place in us.

Jimmy Womack — President & CEO

Larry E. Shumpert — Board Chairman

CTFCU Legacy Scholarship

In 2025, CTFCU awarded scholarships to ten deserving credit union members, each valued at $1,500. These awards demonstrate our continued commitment to advancing economic well-being and expanding educational opportunities for the communities we serve.

Our long-standing partnership with the Carolinas Credit Union Foundation strengthens the integrity and reach of our scholarship program. The Foundation supports CTFCU by administering the program and conducting a comprehensive review of applicants, including evaluation of essay responses, academic performance, and community involvement.

Additionally, applicants who are not selected for the CTFCU Legacy Scholarship are automatically entered into the Foundation’s General Scholarship pool. This expanded consideration ensures even more students have access to financial support as they pursue their educational goals.

Their stories continue to inspire us, and we are honored to invest in the aspirations and achievements of students across our communities. We celebrate each recipient and look forward to seeing where their dedication and hard work will lead them in the years ahead.

Addison T.

UNC Chapel Hill

Aysun J.

University of South Carolina

Davis T.

UNC Greensboro

Ellingson K.

Clemson University

Emersin C.

Lander University

Jalen R.

University of Charleston

Kiley W.

UNC Chapel Hill

Samuel W.

The Citadel

Tamara G.

University of Dubuque

Taylor R.

UNC Chapel Hill

CTFCU in the Community

CTFCU loves being part of a community that works hard and has fun together. Our team shows up for local volunteer projects, chamber gatherings, and the events we proudly sponsor, and we enjoy celebrating holidays and shared traditions inside our branches. These moments strengthen our culture and deepen the impact we make across the communities we serve.

Board of Directors

Our Board of Directors is composed of dedicated volunteers elected by our membership to represent and safeguard the long-term interests of the credit union. Guided by CTFCU’s core values, these leaders provide thoughtful oversight and strong governance, ensuring we remain accountable to the members we serve. Their strategic insight and steady leadership have been instrumental in CTFCU’s continued growth and evolution. Our progress this year reflects their commitment, expertise, and unwavering stewardship.

Larry E. Shumpert

Board Chairman

Mitchel D. McIntosh

Vice Chairman

Lynwood Bowen

Treasurer

James W. Rhodes

Secretary

Larry W. Davis

Director

Al Hernandez

Director

Daniel Lugo

Director

TableRock State Park,South Carolina

Supervisory Committee

The Supervisory Committee, established by law and appointed by the Board of Directors, serves as an independent representative of all members. Our role is to evaluate the activities and operations of Carolinas Telco Federal Credit Union to ensure financial soundness, regulatory compliance, and operational reliability. This includes assessing the adequacy of internal controls, overseeing a comprehensive annual audit, administering Board of Directors elections, independently verifying member accounts, and objectively reviewing formal complaints.

To uphold these responsibilities and maintain the highest standards of oversight, the Committee meets regularly to review internal audit reports provided by the Credit Union’s internal auditors. For 2025, we engaged the accounting firm Doeren Mayhew Assurance to conduct an independent, in-depth audit of CTFCU’s operations and to issue a formal report of their findings. Their final report for the year ending December 31, 2025, confirmed that the Credit Union’s financial statements fairly and accurately represent the financial position of Carolinas Telco Federal Credit Union and are presented in accordance with U.S. Generally Accepted Accounting Principles.

Treasurer’s Report

Carolinas Telco FCU returned to profitability in 2025, earning $2.06M versus a $4.05M loss in 2024, primarily due to a dramatic reduction in the provision for credit losses (down 55%, from $5.7M to $2.6M), reflecting improved credit performance and stabilization in consumer loss rates.

Operating efficiency meaningfully improved as non-interest expenses fell by $2.9M, driven mainly by better alignment of staffing and business needs, while non-interest income increased nearly $835K from stronger fee and interchange revenue.

Finally, a $9.0M positive swing in other comprehensive income, largely from recovery in the investment portfolio’s unrealized losses, further strengthened members’ equity and contributed to a year marked by both operational and balance-sheet recovery.

$74,929,736

2025 Capital Dollars

$4,619,986

Financial Highlights

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CONDENSED

All information current as of December 31, 2025, and all information, including rates, are subject to change. All accounts and loans are subject to approval. For information regarding the rates and services you may qualify for, contact any credit union branch.