Annual Report
Board of Directors
Chairman | Arland A. White Jr.
Vice Chair | James F. Kalkbrenner
Treasurer | Monte S. Dzurenko
Secretary | Marcus S. Parker
Assistant Secretary | Jason R. Bailey
Director | Pankaj R. Belani
Director | Scott Brown
Director | Harley Parkes
Director | Janelle Romano
Director | Kaitlyn Schnieders
Director | Thomas E. Woods Jr.
Financial Highlights
(Dollars in thousands)
for the years ended December 31,
2025
2024
% Change
Members
216,226
223,720
-3.3%
Assets
$4,789,244
$4,544,434
5.4%
Members' savings
$4,121,478
$3,865,262
6.6%
Loans
$3,608,461
$3,415,677
5.6%
Members' equity
$686,788
$627,926
9.4%
Net interest income
$168,913
$160,644
5.1%
Provision for loan losses
$9,739
$4,820
102.1%
Non-interest income
$30,175
$29,407
2.6%
Non-interest expense
$130,487
$123,875
5.3%
Net income
$58,862
$61,356
-4.1%
Consolidated Statements of Income
(Dollars in thousands)
for the years ended December 31,
2025
2024
Interest income
Interest on loans receivable
$207,555
$195,086
Interest on investments
$31,444
$38,211
Total interest income
$238,999
$233,297
Interest expense
Dividends on members' share and savings accounts
$69,591
$66,374
Interest on borrowed funds
$495
$6,279
Interest expense
$70,086
$72,653
Net interest income
$168,913
$160,644
Provision for loan losses
$9,739
$4,820
Net interest income after provision for loan losses
$159,174
$155,824
Non-interest income
Interchange income
$16,041
$16,049
Commission income
$5,576
$5,187
Fees and charges
$4,282
$4,470
Other non-interest income
$4,276
$3,701
Non-interest income
$30,175
$29,407
Non-interest expense
Compensation and employee benefits
$77,848
$72,130
Operations Expense
$22,832
$22,426
Legal and professional expense
$12,136
$12,860
Loan servicing expense
$6,253
$5,438
Occupancy
$4,135
$3,729
Members insurance expense
$3,861
$3,876
Depreciation Expense
$3,422
$3,416
Non-interest expense
$130,487
$123,875
Net income
$58,862
$61,356
Total Assets Grew to
$4.8
Billion
An Increase of
$245
Million
An Increase of
8.9%
over the previous year's total
Consolidated Statements of Financial Condition
(Dollars in thousands)
for the years ended December 31,
2025
2024
Assets
Cash and cash equivalents
$534,102
$539,826
Investments-available for sale
$520,225
$444,968
Loans to members, net of allowance for loan losses
$3,608,461
$3,415,677
Accrued interest receivable
$16,865
$16,717
Premises and equipment, net
$36,076
$37,528
National Credit Union Share Insurance Fund deposit
$36,078
$34,685
Prepaid and other assets
$37,437
$55,033
Total assets
$4,789,244
$4,544,434
Liabilities and Members’ Equity
Liabilities
Members' share and savings accounts
$4,121,478
$3,865,262
Borrowed funds
—
$100,000
Accrued expenses and other liabilities
$28,381
$23,165
Total liabilities
$4,149,859
$3,988,427
Members’ Equity
Undivided earnings
$685,662
$626,800
Accumulated other comprehensive income
($47,403)
($71,919)
Equity acquired in merger
$1,126
$1,126
Total members’ equity
$639,385
$556,007
Total Liabilities and Members’ Equity
$4,789,244
$4,544,434
Message from the Board Chair
2025 was another progressive year for Tower, and also a personal milestone for me. This year marked my 20th year of serving on your volunteer Board of Directors, and I am proud to be part of such an incredible group of men and women. The financial well-being of Tower members is always at the forefront of all we do, and I appreciate the opportunity to lead and direct your credit union.
New! Hats for Heroes for military and Veterans
We announced an exciting new sponsorship this spring—Hats for Heroes with the Baltimore Orioles! Hats for Heroes is another way we recognize and say "thank you" to our military heroes and Veterans for their service and sacrifice. Through the Orioles' Military Cap Program, active and retired military personnel were eligible to receive a free custom-designed Tower/Orioles logo baseball cap at all regular season home games. We gave out over 20,000 ball caps to our members this year.
Four Board members re-elected to serve you
At our Annual Meeting in May, four of your Tower volunteer Board members were re-elected by acclimation: Pankaj Belani, Scott Brown, Monte Dzurenko, and Marcus Parker. I thank them for their willingness to continue to serve. I also want to recognize Monte for 23 years of serving on our Board, most currently as Treasurer.
In addition to another three-year term, Marcus was elected Board Secretary, having previously served as Assistant Board Secretary. Board member Jason Bailey assumed the role of Assistant Secretary. I am grateful to both Marcus and Jason for filling these positions and devoting their time to the Board. I also want to thank Pankaj for previously serving as Board Secretary, and Jim Kalkbrenner for his years of service, and for continuing to serve as Vice Chair.
Fraud continues to be on the rise
Protecting the security of our members’ accounts is a top priority for Tower’s Board of Directors and Senior Management team year-round. Scammers are always looking for opportunities to steal personal information with the ultimate goal of gaining access to our finances. We must remain vigilant.
It’s important to educate ourselves about the latest phishing schemes and other current scams. If you do fall victim to a scam, Tower can only do so much to help you protect your funds. Our team is trained to help root out fraudulent schemes, so if an employee does suspect fraud, please work with us. You can be confident knowing we are always working in your best interest.
We continue to offer helpful fraud prevention resources for our members, including our Fraud & Security Center at towerfcu.org, “Outsmarting the Scammer” free online webinar, and our Fraud & Cybersecurity Checklist. I also encourage you to sign up for ID Smart Shield, the free identity theft prevention service available to our Digital Banking members. Let's all work together to build a safer digital world.
Shred Days helped our members fight fraud
Another way we helped our members this year to protect against fraud, is by hosting two Shred Day events at our Laurel Headquarters. We filled two large shred trucks both times! Thank you to those of you who came out for these events; safely disposing of documents containing sensitive or personal information instead of throwing them in the trash is a good way to prevent identity theft.
Members earned more with our high Share Certificates rates
Our higher-than-industry-average Share Certificates continued to be a smart choice in 2025. Share Certificates outpace most traditional savings accounts, and you can select one that matures when you choose, plus have peace of mind knowing your deposits are insured up to $250,000 by the National Credit Union Administration. The minimum to open a Share Certificate is just $500 so whether you're starting with a small nest egg or a larger sum, they are a secure way to grow your money.
Tower employees volunteer during 9/11 National Day of Service
A team of 40 Tower employees volunteered at seven of our TowerCares Foundation’s charity partners in September for the 9/11 National Day of Service. In fact, we expanded our participation this year to a full week of service! In all, our employees volunteered 94 hours during the 9/11 week. We also surprised first responders at local firehouses with free pizza on September 11 to thank them for their dedication and service. You are a member of a credit union that truly cares about and gives back to the communities we serve.
Member referral program puts money in your pocket
Our member referral program continued to thrive this year and bring new members into the Tower family. I've always encouraged our members to share their positive experiences about Tower, so that others can reap the rewards of membership. Don’t miss out on financial rewards when you refer your friends and colleagues! Visit towerfcu.org/refer for details.
Standing strong during the government shutdown
When the government closed for 43 days in the fall, our entire Tower team quickly stepped up to assist our impacted members—providing nearly 2,000 paycheck assistance loans totaling over $5 million, along with loan and credit card payment deferrals and waived fees. This experience is a powerful reminder that we are your credit union, here to support your financial well-being in both good times and challenging ones.
In closing
Thanks to the trust of our members, we ended 2025 strong—surpassing $4.7 billion in assets—and maintaining a well-capitalized standing with credit union regulators. Your credit union continues to grow and evolve, and we remain focused on delivering exceptional financial services that will benefit our members now and for future generations.
We exist to serve our members, so if there are services you are interested in that we do not currently offer, please let us know so we can determine if it is something we could potentially add to our growing suite of services to enhance your member experience.
Arland A. White, Jr.
Board of Directors Chairman
Reports
Supervisory Committee Report
Thomas Jester, Chair
The Supervisory Committee has two main purposes: to ensure that management’s financial reporting is in accordance with generally accepted accounting principles; and that its practices and procedures safeguard members’ assets. These goals are met, in part, by ensuring that Tower’s management properly administers policies established by the Board of Directors, and maintains effective procedures to comply with laws and regulations, minimize the risk of fraud, and avoid conflicts of interest.
The Supervisory Committee, through Tower’s internal audit staff and consultants, performs assessments of business processes using a risk-based approach, to ensure policies are effective and properly administered, and that ongoing improvements are implemented to safeguard assets. The Committee engaged the services of the certified public accounting firm Doeren Mayhew Advisors, LLC, to perform the required audit of Tower’s 2025 financial statements.
The National Credit Union Administration (NCUA), the regulatory agency for all federally-chartered credit unions, performs periodic examinations.
I am pleased to report that, as a result of the various assessments, external audit, and our NCUA examination, Tower continues to be financially sound and has sufficient risk management controls. The Supervisory Committee also serves as an ombudsman for members, responding confidentially to concerns, questions or complaints that have not otherwise been satisfactorily resolved. If any member has such a concern they should write to: Tower Federal Credit Union, Attn: Chairman, Supervisory Committee, P.O. Box 1280, Laurel, Maryland 20725-1280.
Loan Review Committee Report
Jesse Falcomeni, Chair
The Loan Review Committee, made up of five volunteers appointed by the Board of Directors, reviews loan appeals on a regular basis. Only credit unions offer the opportunity to appeal prior loan decisions by written request to a committee.
Tower's Loan Review Committee uses a process that allows Tower members a simple and streamlined way to present their loan review requests to the committee. Tower recognizes that a credit union's best investment is a loan to a member. The character and capacity of the member to repay a loan are carefully considered to protect members' assets. Tower members have consistently proven to be good credit risks. This is evidenced by the consistency displayed with a net charge-off rate of just 0.58% (up from 0.14% in 2024), significantly lower than the average for all federally insured credit unions, which stands at 0.78%. This positive trend is indicative of the strong health of our portfolio and the overall stability of the credit union moving forward.
The Loan Review Committee in 2025 reviewed a total of 58 loans, with the original decisions upheld for 55 of the loans. Of the remaining three, the committee recommended overturning the original decisions, resulting in approval. In one of these instances, the borrower accepted our counteroffer and the loan was funded.
Treasurer’s Report
Monte S. Dzurenko, Treasurer
As of December 31, 2025, total assets grew to $4.789 billion, an increase of $244.8 million or 5.4% over the previous year’s total of $4.544 billion. During the course of 2025, total loan and members’ savings increased by $192.8 million and $256.2 million, respectively. Loans made to members in 2025 totaled $1.0 billion, driven primarily by $704.2 million in residential mortgage and home equity loans and $467.3 million in auto loans.
Tower’s regulatory net worth to assets ratio was 14.3% as of December 31, 2025. This ratio significantly exceeds the 7% level required by NCUA regulations to be considered well-capitalized. Tower’s strong capital base positions us well in a highly competitive environment, allowing us to expand and improve our product and service offerings, make needed investments in systems and information security, take advantage of future business opportunities and promote the safety and soundness of Tower. These ongoing efforts enable us to respond quickly to members’ changing financial needs and to maintain the excellent level of service and information security they have come to expect.
Interest rates continued to decline throughout 2025 following the Federal Reserve’s shift in monetary policy in response to moderating inflation and a cooling economic environment. Tower remained well positioned to navigate these changing market conditions, and net interest income remained strong. Net income totaled $58.9 million, representing a decrease of $2.5 million or 4.1% compared to 2024.