2020 has been a year like no other! Despite the economic and social impact of this pandemic, I am very happy to share with you that Novation is doing very well. The health and safety of our employees and members has been a top priority over the past eight months and I'm pleased to report minimal health related impacts from the virus. We have been open for business in various forms since the Stay at Home Order issued in March. I cannot say thank you enough for the support and understanding of our 16,000 members. Because of your continued faith in our ability to meet your financial solution needs, albeit in new ways, we are having an excellent year both financially and operationally. Here are some examples:
- Even with historically low interest rates (which creates margin challenges for all financial institutions), our results have been outstanding.
- Deposits by our members have grown significantly as they focus on saving for the future. Assets ended October over $190 million.
- Our mortgage business is booming and Novation Investment Services is helping more and more people with their investments and to prepare for a secure retirement.
- Auto lending, due to market-leading rates, has been strong throughout the year.
- Members have been buying recreational vehicles as an alternative to more traditional vacation travel.
We are fortunate that most of our members have been working during this crisis. Although we have always been well prepared to assist our membership with any financial hardships, requests for loan payment deferrals have been minimal.
You can be assured that all routine controls and governance has continued as your Board of Directors and Supervisory Committee have been holding their normal monthly meetings using video conferencing channels. In fact, the Board and Management team held a strategic planning workshop in June using the video conferencing tool Microsoft Teams.
Remaining flexible and making needed changes to our operating model have been an ongoing theme as we address the future. Collaboration with other Minnesota credit unions has also helped us navigate the many unknowns associated with these times. Through all these challenges, I want you to know that Novation remains strong and financially healthy.
Finally, three words describe the Novation team this year.
We have been faced with so many new challenges during this pandemic and, in each situation, we have collectively persevered and often managed to find a silver lining. I'm proud of our staff and want to reinforce that providing excellent member service is what motivates them every day.
As always, thank you for your continued support. The trust you place in us is never taken for granted and we appreciate the opportunity to be your financial solutions partner.