CEO Message – July 2026

Happy 250^th Birthday America!

Like some of you, I can remember as a youngster the patriotic hoopla surrounding the bi-centennial celebration in 1976.  A time that also marked a celebration for our credit union as we opened our first Letterkenny Federal Credit Union branch.

As we all know, much has changed in the last 50 years. The world has undergone transformations in politics, economics, technology, and society so sweeping that they amount to a complete restructuring of global life.  For example, beginning in the late 1970’s deregulation, privatization, and free‑market policies became dominant. Capital and goods began moving across borders at unprecedented scale, driven by liberalized markets and new technologies.

And here we are today, celebrating an amazing (and certainly interesting) 250 years of freedom. Despite ongoing political turbulence and mixed economic signals, consumer confidence has held steady in 2026, supported by a labor market that remains resilient. Forecasts for the second half of the year lean cautiously optimistic, with most analysts expecting moderate GDP growth as inflation continues to ease (or at least we hope so).

Interest rates have stabilized following the Federal Reserve’s cuts in late 2025 and early 2026. Across Fed communications, market pricing, and major research outlooks, the dominant sentiment is “higher for longer” interest rates through the rest of 2026, with at most one rate cut down from two earlier in the year and a chance of no cuts at all. In general, markets now anticipate a stable rate environment through year‑end, barring unexpected shocks.

Recession concerns persist, but the consensus frames it as a risk rather than an inevitability. Slower global growth, elevated tariffs, and reduced government spending all contribute to this uncertainty. At the same time, improving supply chains and easing trade tensions offer counterweights that could support continued expansion. Tariffs and the geopolitical environment remain major wildcards.

On the lending front, small‑business and home‑improvement borrowing remain strong, while mortgage activity continues to lag due to limited housing inventory, home prices, and still‑elevated mortgage rates.

The U.S. personal savings rate remains near 4%, well below historical norms. Although many households across the country and locally are financially challenged by higher prices at the grocery store and the gas pump, we see signs of resiliency.  Savings account balances at Patriot have risen as member households have benefited from higher income tax returns, up over 11% on average when compared to last year, and by adopting a more cautious financial posture by holding larger amounts of cash amid market uncertainty and shifting economic conditions.

This is one contributing factor to the growth at Patriot and our strong start in 2026. Credit union deposits have grown more than $35 million this year, average loan outstandings are up by 6.8%, and net income has grown by 28% over the same period a year ago, enabling us to add value to our members in the form of lower fees, better rates, and investments in technology and facilities.

In early June, we rolled out enhancements to our digital banking platform – the umbrella for online and mobile banking.  The digital banking platform will offer streamlined, modern navigation with enhanced security protection including passkeys, one-time passcodes and multi-factor authentication.  Overall, members will find a consistent, omni-channel experience across online and mobile banking systems with like menus and services.

And while upgrades to digital services are important, we understand that bricks support clicks, as many members choose Patriot for its physical convenience of having a branch location nearby while they prefer to handle more of their regular banking needs either online or on their mobile device.  Construction has begun on our second West Virginia branch, this one located in southern Berkeley County in Inwood.  We anticipate the branch will begin serving members in the fall of this year.  And I am pleased to announce that plans are to open another West Virginia branch in 2027 in Jefferson County, so stay tuned for more information.

In a further effort to enhance the overall member experience and serve you better, later this summer we expect to introduce a new member convenience that integrates technology and branch convenience: online appointment scheduling.  This service will enable members and prospective members to schedule an appointment at any Patriot branch location or through our contact center for a variety of needs – becoming a member, applying for a loan, adding services, account maintenance, and more.

The changes that we are making to our platforms and systems enable us to provide better service to you, our members.  While we understand that changes are often viewed as disruptive to members who have gotten accustomed to the ways things used to work, not making improvements can be a hurdle in our efforts on being the very best local financial institution, not just credit union, and provide the best member experience that we can (and that you deserve).  To that extent we know that at times there will be hiccups and we are not perfect. We greatly appreciate the grace that our members grant us when we stumble – it is how we often learn from our missteps and become better.

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.  We’re very excited about the future of Patriot and we look forward to being the financial partner of choice for the  individuals, families, businesses and organizations throughout our market area.

Sincerely,

Ron Celaschi

CEO – Patriot Federal Credit Union