Mr Earle said along with assets growing, loans to customers grew by 26 per cent to $267m and Baywide's credit rating was reaffirmed at BB by ratings agency Fitch.
"Our strategic investment in the future, as well as tighter interest margins, did lead to a lower operating surplus of $1.2m, with borrowers and investors benefiting by approximately $1m more in interest than was projected."
Mr Earle indicated the installation of the new core banking system opened up the next phase of business transformation including mobile app and internet banking systems.
He also pointed out that while technology has been a focus, the branch network is also in line for an upgrade.
Baywide chairman Ian Taylor supported Mr Earle's summary of the year.
"NZCU Baywide will shortly be the second credit union in New Zealand to transform to a core banking platform," he said.
"For the last year we have been working with a group of nine credit unions to replace our core banking system - Aotearoa Credit Union was first but is a lot smaller," he said.
"This new platform gives us the ability to respond to rapid technological change in the market and be flexible enough to meet the evolving needs of our customers."
July 2016 - June 2017 year highlights
Total assets grew 6.1% to $312m
Operating surplus of $1.2m, down from $2m in the previous year
Reserves of $39.9m
Loans to members grew by 26% to $267m