Updates from Derrick

Q2 2025

Thoughts from the CEO

Dear Telhio Team,

As I’ve spoken with many of you over the last year, I’ve heard a desire to better understand our strategies and the reasons behind key decisions. Transparency is something I deeply value, and I want to make sure everyone knows not just what we’re doing, but why we’re doing it. Even with all the changes, your leadership team is dedicated to working together to achieve Telhio' s goals.



With that in mind, I’m excited to introduce this newsletter as a dedicated space where I can provide information on exactly those topics. I’ll also use this space to recognize exceptional performance and share the impact we’re making in the communities we serve. Finally, I want to help us all perfect our craft by sharing information on key business metrics.

In this issue, you will:

• hear from a high performing Branch Relationship Manager
• get to know one of our newer members, and
• learn about the net promoter score and corporate goals

I’m looking forward to staying connected with you!

Derrick

Net Promoter Score

What It Is & Why It Matters

Net Promoter Score, or NPS, is one of the most commonly used measures of overall customer satisfaction. It gauges the health of members’ relationship with Telhio.



How It’s Measured

NPS is measured with a survey question, asking customers how likely the are to recommend Telhio to others, on a 10 point scale. Responses are categorized into three categories:

• Promoters respond with a score of 9 or 10. We expect Promoters to be loyal Telhio customers.
• Passives are those who respond with a score of 7 or 8. They are satisfied with our service, but not happy enough to be considered promoters.
• Detractors give a score of 0 to 6. They are unhappy customers who may be at risk of leaving Telhio, and may discourage others from joining.

NPS is calculated by subtracting the percentage of Detractors from the percentage of Promoters. For example:

NPS is then reported as a number ranging from -100 to +100. (Higher scores are preferred.) 

Benchmarking

The benchmark NPS score is 24 (average of all banks and credit unions using the same survey tool we use). For credit unions only, the benchmark NPS is 48. 

Telhio's Net Promoter Score as of: 12/2024

The NPS survey will be administered 2 times in 2025. Results will be updated accordingly.

2025 Corporate Goals as of March 31, 2025

Corporate Goals Explained

Each quarter we will provide a deeper explanation of two goals. The explanation will cover what the goals are and what these numbers are saying about the business. This edition we will feature Delinquency and Charge- off to AVG Loans.

Delinquency Explained

The delinquency ratio shows how many loans are late by more than 60 days compared to all the loans. It helps measure the risk of the credit union's loans.

When more loans are late, it can mean future losses. The credit union's ability to handle late loans depends on how much money they make from loans, how well they manage risks, and how they handle loan losses. Loans with higher risk often have more late payments but should also have higher returns. If there are very few late loans, it might mean the credit union is being too careful with who they lend to. This ratio should be looked at along with other ratios like loan-to-share, coverage, and ROA.

Charge - Off to Average (AVG) Explained

The net charge-offs to loans ratio shows how well the credit union has managed loan risks in the past. A lower ratio means the credit union is in a better position. Changes in how they lend money usually show up in this ratio after 12 to 18 months. This ratio affects the credit union's return on assets (ROA).

Two main things that affect this ratio are how they decide who gets loans (underwriting policies) and how they collect money from people who owe them (debt collection procedures). Other factors include how they price risky loans, the types of members they have, and the mix of different loans. How quickly and strongly they collect debts also impacts this ratio.

Notes from Derrick

As I review these numbers the most prominent thought is that great service starts from within and extends outward. Our back office team supports our front-line employees, enabling them to provide exceptional service to our members. I am confident that by working together, we will achieve great success in 2025.