May 22, 2014

Chairman’s Introduction

• Welcome

• Call to Order

Agenda

Welcome Ivor Longo • Call to Order • Chairman’s Comments • Introduction of Board

Approval of Annual Meeting Minutes Margaret Sherrod Supervisory Committee Report Karen Brey Chairman’s Report Ivor Longo President’s Report Annlouise Peroutka Nominating Committee Report Mike Gregorio Other Business Ivor Longo Q & A Ivor Longo Closing Remarks/Adjourn Meeting Ivor Longo Prize Drawing

Board of Directors

Ivor Longo Chairman Karen Brey Vice Chairman Maggie Shane Chief Financial Officer Margaret Sherrod Chief Recording Officer Annlouise Peroutka President Anita DeMyers Benjamin Bard Cameron Tyer Katherine Fithen Mike Gregorio Michael LaKier Nick Nichols Peter Pearson

Ivor Longo - Board Chairman

Karen Brey – Vice Chairman

Maggie Shane – Chief Financial Officer

Margaret Sherrod - Chief Recording Officer

Annlouise Peroutka – President

Anita DeMyers – Board Member

Benjamin Bard – Board Member

Cameron Tyer – Board Member

Katherine Fithen – Board Member

Michael LaKier – Board Member

Mike Gregorio – Board Member

Nick Nichols – Board Member

Peter Pearson – Board Member

Approval of Annual Meeting Minutes

Chief Recording Officer, Margaret Sherrod

Annual Meeting Minutes

Annual Meeting Minutes

Supervisory Committee Chairman

Karen Brey

Supervisory Committee Report

Board Chairman

Ivor Longo

Chairman’s Report

Chairman’s Message

President’s Report Statement of Condition

2013

2013/2012

Growth 2012

2012/2011

Growth 2011

Total Loans 99.6$ -1.1% 100.7$ 7.2% 93.9$

Total Investments 63.0$ 11.9% 56.3$ -15.0% 66.2$

Total Assets 163.1$ 3.6% 157.5$ -1.3% 159.6$

Total Shares 146.4$ 3.3% 141.7$ -1.3% 143.5$

Total Equity 14.5$ 7.4% 13.5$ 4.7% 12.9$

Net Worth Ratio 8.9% 2.9% 8.6% 6.6% 8.1%

Loan to Share Ratio 68.3% -3.9% 71.1% 8.5% 65.5%

Total Number of Members 14,146 6.1% 13,335 2.8% 12,973

Financial Ratios

EARNINGS RATIOS 2013 2012 2011

Yield on average Loans 4.7% 5.2% 5.4%

Yield on Investments 0.7% 0.8% 0.9%

Yield on Assets 4.2% 4.5% 4.5%

Cost of Funds 0.1% 0.1% 0.2%

Net Interest Margin 3.1% 3.4% 3.3%

Operating Expense Ratio 3.5% 3.6% 3.5%

Return on Average Assets 0.6% 0.4% 0.4%

Financial Results

2013/2012 2012/2011

EARNINGS (in thousands) 2013 Growth 2012 Growth 2011

Operating Income 6,730.7$ -5.6% 7,126.8$ 0.0% 7,128.4$

Provision for Loan Losses 173.5 -61.9% 454.9 -36.0% 710.9

Operating Expenses 5,440.1 -3.9% 5,658.8 17.2% 4,830.3

Dividend Expense 169.9 -8.4% 185.4 -32.6% 275.3

Net Income from Operations 947.2 14.4% 827.7 -36.9% 1,312.0

Non-Operating Gains/(Losses) 107.6 -265.8% (64.9) -769.1% 9.7

Net Income before NCUA Assessment 1,054.8 38.3% 762.8 20.6% 632.7

NCUA Assessment 118.3 -28.9% 133.5 -61.2% 344.1

Contribution to Capital 936.5$ 48.8% 629.3$ -0.5% 632.7$

Nominating Committee Report

Nominating Committee Chair

Election of Board of Directors

Other Business

Old Business

New Business

Questions and Answers

Annual Meeting Presentation

Chairman’s Closing Comments

Closing Remarks

Eligibility

• Member in Good Standing

• Must attend meeting in person or via WebEx

• Board, volunteers and staff are not eligible

Money will be transferred into winners’ account today

3rd Prize $ 50

2nd Prize $100

1st Prize $150

Prizes

Thank You & Have a Great Day

Statement of Income Statement of Income for the years ended December 31, 2013 &2012

2013 2012 Change %

Income

Interest Income $ 5,136,571 $ 5,557,515 $ (420,944) (7.6)%

Other Income 1,594,216 1,569,299 24,917 1.6 %

Total Income 6,730,787 7,126,813 (396,027) (5.6)%

Expenses

Salaries & Benefits 3,080,402 3,070,831 9,571 0.3 %

Office Operations 2,408,009 2,519,797 (111,788) (4.4)%

Provision for Loan Losses 173,526 454,934 (281,408) (61.9)%

Other 55,764 187,849 (132,085) (70.3)%

Total Operating Expenses 5,717,701 6,233,411 (515,710) (8.3)%

Income Before Dividends & Interest 1,013,086 893,402 119,683 13.4 %

Dividends & Interest Expense 184,091 199,243 (15,152) (7.6)%

Net Income from Operations 828,995 694,159 134,835 19.4 %

Non-operating Gains/(Losses) 107,641 (64,893) 172,534 (265.9)%

Contribution to Capital Reserves $ 936,636 $ 629,265 $ 307,369 (48.8)%

Statements of Financial Condition Statement of Financial Condition for years ending December 31, 2013 &2012

2013 2012 Change %

Assets Cash and Cash Equivalents $ 17,145,899 $ 3,941,746 $ 13,204,153 335.0 %

Loans to Members 99,575,550 100,469,091 (893,541) (0.9)%

Less: Allowance for Loan Losses (1,291,701) (1,377,065) 85,364 (6.2)%

Net Loans 98,283,849 99,092,026 (808,177) (0.8)%

Government Securities and Certificates of Deposit 45,514,240 51,480,213 (5,965,973) (11.6)%

Other Investments 141,596 144,429 (2,833) (2.0)%

Less: Allowance for Investment Losses - - - - Total Investments 45,655,836 51,624,642 (5,968,806) (11.6)%

Other Assets 2,048,370 2,801,579 (753,209) (26.9)%

Total Assets $ 163,133,954 $ 157,459,993 $ 5,673,961 3.6 %

Liabilities & Equity

Liabilities Share Accounts and Certificates $ 80,742,383 $ 77,170,790 $ 3,571,593 4.6 %

Checking Accounts 34,732,926 31,730,629 3,002,297 9.5 %

Money Market Accounts 27,586,716 29,470,634 (1,883,918) (6.4)%

IRA Accounts 3,327,737 3,361,162 (33,425) (1.0)%

Total Shares 146,389,762 141,733,215 4,656,547 3.3 %

Accounts Payable and Other Liabilities 2,285,424 2,145,215 140,209 6.5 %

Total Liabilities 148,675,186 143,878,430 4,796,756 3.3 %

Equity

Regular Reserves 2,074,762 2,074,762 - 0.0 %

Undivided Earnings 12,367,988 11,431,353 936,635 8.2 %

Unrealized Gains (Losses) on Available for Sale Securities 16,017 75,448 (59,431) (78.8)%

Total Equity 14,458,767 13,581,563 877,204 6.5 %

Total Liabilities & Equity $ 163,133,954 $ 157,459,993 $ 5,673,961 3.6 %

Assets vs Capital

$150.9

$159.3 $159.6

$157.5 $163.1

$11.5 $12.2 $12.9 $13.5 $14.4

$-

$20.0

$40.0

$60.0

$80.0

$100.0

$120.0

$140.0

$160.0

$180.0

2009 2010 2011 2012 2013

(in

Mil

lio

ns)

Year

Assets Capital

Share Growth

$-

$20.0

$40.0

$60.0

$80.0

$100.0

$120.0

$140.0

$160.0

2009 2010 2011 2012 2013

$58.6

$76.0 $76.1 $76.9 $80.6

$23.7

$28.9 $31.3 $31.7 $34.7 $31.9

$34.9 $32.1 $29.5 $27.6

$18.6

$1.7 $0.6 $0.2 $0.1

$4.4

$3.9 $3.4 $3.4

$3.3

Year

Savings Checking Money Market Share Certificates IRA's

$146.$137.2

$145.4 $143.5 $141.7 S

ha

res

(in

Mil

lio

ns)

Loan Growth

$-

$20.0

$40.0

$60.0

$80.0

$100.0

$120.0

2009 2010 2011 2012 2013

$29.5 $24.6 $24.3

$29.5 $30.7

$51.3 $52.2

$59.0

$60.4 $59.2

$7.6 $7.7

$7.5

$7.3 $7.2 $5.1

$4.2

$2.8

$3.3 $2.5

Lo

an

s (i

n M

illi

on

s)

Year

Auto Loans Real Estate Credit Cards Other

$100.$93.5 $89.4 $93.6 $99.6

Allowance for Loan Loss

Secured $137.0 11% Unsecured

$46.0 4%

Credit Cards $264.0 20% Real Estate

$845.0 65%

2013 Allowance for Loan Losses Breakdown (in thousands)

Total 2013 ALLL = $1,292.0

Executive Management Team

Annlouise Peroutka CEO/President

Diane Edelstein Vice President of Finance

Anna Foote Vice President of Operations

Lisa Lowe Vice President of Lending

Dawn White Vice President of Marketing

Management Team

Finance Team

Lending Team

Marketing Team

Operations Team

Credit Union Team