Financial Performance
2024 was a dynamic year financially for StellerVista, marked by high inflationary impacts and a climate of general uncertainty regarding interest rates. Despite these challenges, we experienced a gradual easing of monetary policies as the year progressed, allowing us to begin lowering rates from their elevated levels at the start of the year. This environment influenced our balance sheet and impacted our budgeted financial performance, yet we managed to end the year on a rebound.
While we did not meet all of our financial targets for 2024, the year was still financially strong, with a net income after all expenses and taxes of just over one million dollars. Our total after-tax income was close to $1.9 million, from which approximately $700,000 was returned to our members in the form of patronage dividends and community donations – with the remaining net income, allocated to retained earnings.
These financial outcomes reflect both the challenges and successes of the year. Despite the fluctuating economic landscape, our subsidiary lines of business, including insurance and wealth management, continued to be key contributors to our revenue, allowing us to invest in essential systems for our people and members. This ongoing investment ensures that StellerVista remains well-positioned to serve our community effectively, reinforcing our commitment to both financial stability and community support.
Total Assets
$730,851,452
Pre-tax Income $2,022,530
Earnings and Margin
In 2024, StellerVista saw a slight improvement in our financial margin as mortgage rates began to catch up with the higher rates we had been offering on term deposits and Community Bond Investments during the rising rate environment of 2023. This adjustment in mortgage rates, coupled with new lending activities, helped alleviate some of the pressure on our financial margin that had been intensified by our commitment to offering competitive deposit rates to maintain liquidity and prioritize our members’ interests. Despite the challenging rate environment and intense competition for deposits, these strategic adjustments contributed to a positive financial performance for the year.
Operating Margin
$14,364,117
Operating Expenses
$16,460,531
Net Income
$1,204,138
Member Banking
In 2024, our projections of an economic slowdown due to sustained high interest rates were confirmed, impacting our lending and commercial portfolio targets. Despite the initial slowdown, we saw a rebound in loans and deposits, driven by our ability to meet our members’ financial management needs, with increased inquiry around debt consolidation and debt management assistance, as well as commercial lending towards the end of the year. This recovery, coupled with some easing in the labor market, allowed us to bolster our staffing levels and improve service delivery.
Our team remained vigilant throughout the year, closely monitoring economic conditions and adapting our strategies as needed, leading to overall positive growth for StellerVista by year-end.