Capital Area REALTORS® FCU Routing & Transit #255077639



Harold H. Huggins

GRI, C2EX, e-Pro certified

Dear Credit Union Members:

Welcome to the annual meeting of the Capital Area Realtors® Federal Credit Union (“Credit Union”) and our 53rd anniversary. We have continued to grow and prosper during these tough times in what was a transitional year all for the good of the members. We have not skipped a beat!

This past year has been filled with many adjustments in the manner and way we have conducted business at the Credit Union. Adjustments have been made to the administrative staff with Raj Mahajan taking the lead and keeping us progressing in the right direction. Raj and the entire staff are to be commended for the ways that they have adjusted and served the members.

2023 was another banner year for your Credit Union. We far exceeded our goals and expectations. Our production over the past year and what we have achieved has been nothing short of amazing. It was far above our peer Credit Unions. We worked in partnership with NCUA, Clifton Larsen Allen our auditors, consultants, attorneys, risk managers to put together inclusive policies and procedures to produce effective and smooth efficiencies within the overall operation.

A big shout out to Marjorie S. Kling, CPA, our Board Member for her numerous hours of guidance and assistance in formulating some of the policies and consultation with HR. She has also brought an increased level of expertise and understanding to the Supervisory Committee. The Supervisory Committee has been expanded to support Nancy Hammann, who has devoted many years of service to this committee. The new additions are Wini Gary, Evguenia (Jane) Mathur and Tabitha Fitzgerald.

A big thank you to Amit Sharma, Esquire, for his countless hours rewriting our bylaws which were approved by the Board without change.

Despite the rapid huge increase in interest rates and the strong economic headwinds we were able to curb expenses, improve operational efficiencies and maintain our profitability. We were able to generate a positive bottom-line net income of over $400k for the year 2023 compared to $100k in 2022. This is an increase of almost 300%. Our ROAA of over 2% [return on average assets] is one of the highest in the country for our Credit Union size. We have grown to a $21 million institution.

We have made consistent adjustments and course corrections to improve our operations and maintain our compliance with NCUA regulations. We recently received an increase CAMEL rating from NCUA indicating that we are operating adequately within safety-and-soundness standards. Overall, the Credit Union was profitable despite regulatory headwinds and huge loan loss allowance allocations as required by NCUA.

During 2023 the Board of Directors continued to work extremely hard at providing you with robust, state-of-the-art products and services. A tip of the hat to each member of the Board for their efforts and diligence in promoting the Credit Union and serving its members. The Board is a working team of highly skilled professionals whose expertise and vision has added to the success of the Credit Union. The Board and staff are working extremely hard to increase our membership, which is OPEN to ALL. Kudos to GCAAR and the Prince George’s County Association of REALTORS for promoting membership and our products and services to their members. We also promote us to their memberships at their new member orientation classes whenever possible.

The additional products and services that were either enhanced or introduced during 2023 were:

  1. Continued to enhance our marketing campaign to increase the membership of the Credit Union, its exposure, and the services we offer our members.
  2. We continue to maintain and update our web site [new and improved features] to better serve you —the member. Check it out at We shall constantly update it with products and services that are beneficial to the members. A new Mortgage website was created which includes 100% paperless and digital workflow.
  3. We continued to position ourselves in the world of social media with Facebook, Twitter, Yelp, Bing Places and Google Analytics. This has proven an asset in the promotion and branding of the Credit Union to existing and potential new members.
  4. Unlike the commercial banks, we continued to offer loans and financial products that are at favorable rates and terms to the members.
  5. We continued to collaborate closely with our Sponsor — Greater Capital Area Association of REALTORS — GCAAR.
  6. We continued to offer extremely competitive rates on shareholder deposits and attractive rates for our various loan products.
  7. We exceeded our net income expectations despite strong headwinds, thanks to the incredible efforts and diligence of our capable staff.
  8. Our mortgage origination division officially started in November of 2019. They have been processing home loans for purchase and refinance, with the most competitive rates for our members. Income has been earned by the Credit Union on the sale of each loan. The additional income produced has helped build our back office to provide more services for our members:
    1. Real Time data on each member deposit/loan accounts.
    2. Greater and additional layers of security on all accounts.
    3. Continued training the staff at the credit union to further our already outstanding performance and production.
  9. While our membership has continued to increase during the past 15 months, we expect it to get even better. We continue to grow in membership month by month because of our extensive marketing efforts.
  10. We continue to have an exceptionally low delinquency rate on our various loan products — almost non-existent. This is possible through the exercising of sound lending and underwriting policies.
  11. We have worked extremely hard to create a robust, state-of-the-art online and mobile banking system. The members can now view their accounts in real time. Our members can use the mobile app to deposit checks and do online banking and then some. We have consolidated our mobile banking apps into a single sign-on app which is now available on iOS and Google marketplace.

We continue to promote our e-banking services to the membership. The membership is taking full advantage of this benefit which allows the Credit Union to better serve the members. We are hopeful that members will continue to take full advantage of this invaluable service.

Your investment in the Capital Area Realtors® Federal Credit Union continues to remain safe, secure and your deposits insured up to $250,000. Unlike other financial and lending institutions, your Credit Union continues to have no exposure to risky loans. Our standards and lending policies were created and continue to be maintained to exclude substantial risk loans. We also do not encourage our members to take on more debt than they could manage as this would not be in the best interest of the Credit Union and its shareholders.

We continue to receive high marks from the Federal Examiner. We rely heavily on the advice and counsel of the Federal Examiner as we continue to grow and prosper.

We continue to maintain policies for the safety of the Credit Union and its members. They are constantly reviewed and updated in accordance with NCUA standards. Staff and Board members continue to be educated as required in the many intricate rules, regulations and standards that must be observed through our involvement with the MD/DC Credit Union Association and other partner Credit Unions. This has made us stronger and more proficient in the operation of our Credit Union.

Each member of the staff has performed tirelessly in support of the members’ needs. It has not been a 9-5 job. Rather, it has involved evenings and weekends. We thank them for their devotion to the needs of the Credit Union. Well, done!

We are always looking for ways to better serve you with products and services that assist you with your financial decisions and needs. If there is any way that we can better serve you, please let us know.

We welcomed five new members to the Board – Charnise C. Carter, Diana Carrasco, Rahkiya Reid, Andres Serafini, and Carole Webb. These new members along with our existing members make for a very robust Board with in-depth areas of expertise which are beneficial to the Credit Union. We continue to seek Credit Union members to serve on the Board of Directors and various committees. If any member has a desire to serve on the Board, please let us know. We have a few openings available.

As I stated in my opening, this is our 53rd anniversary and we look forward to continued growth and a better Credit Union in the years to come.

On a personal note, it has been my extreme honor and privilege to serve as Chairman of the Board for the past eighteen years. The vision, expertise, wisdom, and commitment of the Board members have been equal to the tasks that have come to our attention. It has been a team effort. Together we have been able to accomplish a lot, all for the benefit of the stockholders. I look forward to great growth and enhanced services in the years to come.

Respectfully submitted,

Harold H. Huggins

Harold H. Huggins, CCIM, CIPS, CPM, CRB, CRS, GAA, GRI, C2EX, e-Pro certified

Capital Area REALTORS FCU 15201 Diamondback Drive Suite 150, Rockville MD 20850
Phone: (240) 314-0734 Lender NMLS: 811806