CEO Message – July 2024

The second half of 2024 has begun and summer is here.  Typically, this time of year brings with it vacations, family gatherings, and in general increased travel.  As a result of seasonal demand during the summer drive time, we often see higher prices at the pump.

Rising fuel costs also contribute to higher prices for other services and goods, particularly food, due to higher costs for production and transportation. Continued elevated price levels often puts a squeeze on household budgets and consumer pocketbooks, resulting in slowed disposable personal income growth, higher household debt, a drain on personal savings balances and overall pessimism about the coming months. Lower consumer confidence in the future typically results in lower spending and signals that our economy could be entering the recession danger zone.

Higher interest rates also inhibit consumers from borrowing on credit cards and large purchases like homes or vehicles as the monthly loan payment may no longer fit into their budget. The Federal Reserve has paused on raising interest rates, but their position appears to be to leave rates “higher for longer” in an effort to bring inflation closer to the target rate of 2% before lowering rates. In summary, the last half of the year expects to be very challenging for consumers as they struggle to find a balance between income, savings, spending and debt.  And let’s not forget the upcoming presidential election.

While the economic signs don’t point toward expansion, we at Patriot ARE focused on growth to better serve our Field of Membership, particularly in Maryland and West Virginia. Site work will start later this year for a drive-up ATM to be located in Inwood, south of Martinsburg, at Butler’s Crossing shopping center.  Opening is expected in the spring of 2025.  Plans are also progressing for our first West Virginia branch, which will be located on the Williamsport Pike at Brown Road near Spring Mills High School in Martinsburg.  Pending approvals, we anticipate that our Spring Mills branch will open in late 2025.

In addition to our southern expansion plans, we will also continue to enhance our delivery network in Franklin County, PA.  First, permitting is being finalized for a drive-up ATM on Coffey Avenue at Letterkenny Army Depot with an anticipated open date later this summer.  We are finalizing the purchase of a parcel at the corner of North Antrim Way and Williamson Avenue in Greencastle, located next to Sunnyway Foods, on which to place a full-service branch.

The site was the former home of the original Sunnyway Foods grocery store, and most recently Rite Aid. For several years our team has been identifying potential sites for a branch, and we believe that this location provides a tremendous opportunity for us to build a new branch to serve the financial needs of the local community and our strong member base in Greencastle and the surrounding area. We are hopeful that the Greencastle branch will open for business by the end of 2025.

Making financial services convenient and accessible to members and prospects in our market area take more than just branches and ATMs. Inclusivity and community engagement supports our mission of People Helping People.  Last year, it resulted in some 4,750 volunteer hours by our staff members, over $250,000 donated to community organizations, and more than 200 organizations impacted.

As I shared in my last letter, Patriot rolled out a newly designed website that now accommodates Spanish speaking members – a growing population throughout our market area.  Additionally, we introduced Zogo, a free gamified financial literacy app covering a variety of topics from saving to retirement to budgeting and everything in between.  Users of the app can complete bite-sized financial education lessons to earn rewards.  Zogo, available to members and prospects, also has a Spanish version.

As a result of Patriot’s commitment to serving our Spanish speaking and immigrant communities with services like these and others, we received a Juntos Avanzamos (“Together we advance”) designation. The designation demonstrates our dedication to creating an inclusive banking experience that serves the diverse needs of our community. We’re extremely proud that Patriot is the first credit union headquartered in Pennsylvania to attain this designation.

We have also been recognized by the Shippensburg Area Chamber of Commerce as the Large Business of the Year, repeated as top credit union by VerStanding Broadcasting listeners as the “Best in the Tristate”, selected as “Ben’s Pick of the County” for banks and credit unions by the Franklin County Free Press, and continued our streak of 31 consecutive years earning a Bauer Financial 5-Star rating for safety and soundness.

In closing, I want to thank you for your continued membership in and support of your credit union and for allowing us to be part of your financial journey.  I especially want to thank our Letterkenny members, for their understanding, support, and vital role that you have played in helping Patriot become who we are today.  We’re very excited about the future of Patriot and remain committed to improving our services to meet the needs of individuals, families, businesses and organizations throughout our market area.

Sincerely,

Ron Celaschi

CEO – Patriot Federal Credit Union