April 18th, 2020Business Meeting 11:30 am via Telephone Conference

1. Call to Order – Chairman, Cyndi Ayonon

I. Certification of Quorum II. Approval of Standing Rules III. Approval of Minutes of 72nd Annual Meeting

2. Introduction of 2019 Board of Directors I. Report of the President/CEO II. Report of the Chairman III. Report of the Treasurer IV. Report of the Supervisory Committee V. Report of the Marketing Committee

3. Report of the Nominating Committee I. Board of Directors, 3-year term a. Kyle Okamura

4. Unfinished Business

5. New Business

6. Service Awards 1. Deloros Kaauwai

7. Business Meeting Adjournment

73rd Annual Meeting Agenda

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Derek S. K. KawakamiMayor, County of Kaua‘i

State of Hawai‘i

Kauaʻi Government Employees Federal Credit Union

73rd Annual Membership Meeting

WHEREAS, the Kauaʻi Government Employees Federal Credit Union is celebrating its 73rd Annual Membership meeting on March 21, 2020, at the Kauaʻi Beach Resort. This credit

union is one of six credit unions on Kauaʻi that helps to provide financial security for many Kauaʻi families. Their slogan “Together, We Make It Happen,” exemplifies the mission

statement of the members; and

WHEREAS, credit unions are democratically owned and controlled institutions based on “People Helping People” principles with directors elected by its members—each having a vote. With current assets of $116 million and 7,259 members, this credit union has grown

steadily and has increased its loan portfolio, investments, and share deposits; and

WHEREAS, the purpose of the Kauaʻi Government Employees Federal Credit Union has been to serve all County, State, and Federal government employees and their families in

their basic financial needs since 1947. A portion of the growth of this credit union is due to the expansion of our membership to include employees of Select Employer Groups

(SEGs) and their immediate families; and

WHEREAS, the credit union’s new company branding and outreach efforts, and the enhancements of the credit union’s products and services, has led to a positive impact on

its business. Kauaʻi Government Employees Federal Credit Union was chartered under federal law and is regulated by the National Credit Union Administration (NCUA), an

independent agency of the U.S. Government; and

WHEREAS, the credit union management and staff, the volunteers of the Board of Direc-tors, and those that serve on the Supervisory Committee and Marketing Committee, are

to be commended for their continued efforts in providing quality financial services to the members who are seeking financial stability.

NOW, THEREFORE, I, DEREK S. K. KAWAKAMI, Mayor of the County of Kauaʻi, State of Hawaiʻi, do hereby extend my congratulations to the KAUAʻI GOVERNMENT EMPLOYEES FEDERAL CREDIT UNION and its members for their contributions to the community and

express my warmest “Aloha” for a productive and successful annual meeting.

Done at the Kauaʻi District Health Office County of Kaua‘i, State of Hawai‘i

this 6th Day of April, 2020

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72nd ANNUAL MEMBERSHIP MEETING MINUTESMarch 16, 2019

Welcome:Entertainment – Halau Ka Lei Mokihana O Leina‘alaMayoral Proclamation - presented by Derek S. K. Kawakami – Mayor, County of Kauai, State of HawaiiBlessing – Puni PatrickMoment of Silence

Dennis IkeharaRj HigginsStu BurleyEugene JimenezMerly Cruz

Call to Order:The meeting was called to order by Chairman, Cyndi Ayonon at 12:45 p.m.

Introduction of Officials:Cyndi Ayonon, Chair; Roberta Charles, Vice Chair; Ken Villabrille, Secretary; Kyle Okamura, Treasurer; Patrick Balbarino, Director; Byron Watanabe, Director; Ed Punua, Director, and Monica Belz, President/CEO. Confirmation of Quorom.

Approval of the Agenda from the 72nd Annual Meeting:A motion to approve the agenda of the 72nd Annual Membership Meeting was made and seconded. APPROVED

Approval of the Minutes from the 72nd Annual Meeting - March 16, 2019A motion to approve the Minutes for the 70th Annual Membership Meeting was made and seconded. APPROVED

Reports of Officials:President/CEO Report: A motion to receive the report of the President/CEO was made and seconded. RECEIVEDChairman’s Report: A motion to receive the report of the Chairman was made and seconded. RECEIVEDTreasurer’s Report: A motion to receive the report of the Treasurer was made and seconded. RECEIVEDSupervisory Committee Report: A motion to receive the Supervisory Committee Report was made and seconded. RECEIVEDMarketing Committee Report: A motion to receive the Marketing Committee Reports was made and seconded. RECEIVED

Unfinished Business:There was no unfinished business

New BusinessService Awards:

Mel Ota

Report of the Nominating Committee: There were two (2) Board of Directors position (each for three year term) up for election:

Cyndi AyononEd Punua

All incumbents were re-elected

Adjournment:There being no further business, Chair Cyndi Ayonon adjourned the 72nd Annual Membership Meeting at 1:15 p.m.Respectfully submitted,

Kenneth VillabrilleSecretary

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Board of Directors

Left to right: Treasurer - Kyle Okamura, Director - Ed Punua, Vice Chair - Roberta Charles,Chair - Cyndi Ayonon, Secretary - Ken Villabrille, Director - Byron Watanabe,Director - Patrick Balbarino

Supervisory Committee

Left to right: David Longmore, Mark Kunimoto, Justin Kollar, Alton Amimoto, Byron Watanabe,

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Executive Team

Left to right: Chief Financial Officer - Sajid Siddiqi, Chief Executive Officer - Monica BelzChief Operations Offcer - Sean Kaley

Marketing Committee

Left to right: Keola Aki, Emi Tanihiro, Dickie Chang, Amy Esaki, Jamilee Jimenez

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Member Services Staff

Left to right: Tracie Sarmiento, Malie Bernades, Brooke Salud, Jemi Louis, Michele Curnan, Lina Ikimaka, Jenalyn Constantino, Naomi Ikimaka, Karen Shigemoto

Left to right: Tracie Sarmiento, Barry Kawamura, Jenilynn Cremer, Lavenda Medrano, Lina IkimakaLynn Constantino, Seungjoon Lee, Loraine Ballesteros, Derrick Adams, Joyce Arrellano

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Accounting Staff

Left to right: Ronalyn Rosales, Ruth Wright

Marketing and Development Staff

Left to right: Dana Hazelton, Chantal Zarbaugh, Bonnie Hailer

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President/CEO’s Report

Respectfully yours,

Monica BelzPresident/CEO

Amid this COVID-19 crisis, we are holding our annual meeting 100% virtually this year. We thank you for your patience and understanding as our island remains on mandatory stay-at-home orders. Due to being essential services, our staff remains hard at work to help serve our members during this crisis. Please extend your gratitude and appreciation to staff members when youcall, email, or drive through our Lihue Branch.

For over 7,500 people on Kaua‘i, Kaua‘i Government Employees Federal Credit Union continues to be among the few financial institutions that puts the eco-nomic well-being of the people we serve ahead of the bottom line. By advanc-ing our not-for-profit, collaborative mission, you are investing in the financial health and security of our community. We remain committed to ensuring that every one of our members and future members has access to safe, affordable services that work for their individual needs and help them achieve their financial goals.

2019 brought with it record growth to our credit union, meaningful community programs such as our new Financial Coaching Partnership with Inpac Wealth Solutions, and the construction of our new branch in Kilauea. We also empowered more local families to secure affordable home-owner-ship with our low mortgage rates, fostering financial resilience while keeping our money on Kaua‘i and for Kaua‘i.

For too many local families, financial insecurity remains one of life's most significant worries, espe-cially during times of crisis. At KGEFCU, our goal is to ensure that members have access to responsi-ble financial solutions that offer help in times of need, help break the negative debt cycle, and ultimately build wealth. We continue to ensure that people from all walks of life have access to credit and the opportunity to create a comfortable and robust life for their household.

As we continue securing Kaua‘i's future by strengthening our members' financial well-being, we applaud each of you for your contribution and ownership of this noble mission. Your deposits and loans help our local Kaua‘i families obtain access to much-needed capital to advance their families into the future. We are all stepping up to serve our island and ensure a resilient economic future for Kaua‘i.

We hope you are staying safe and healthy. Please reach out to us with any of your financial needs during this unprecedented time. Thank you for your continued loyalty. Together, we make it happen.

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Mahalo,

Cyndi AyononChairman, Board of Directors

It has been a pleasure to serve as the Board Chair for two years along with the support of the other dedicated and committed board members. Our credit union has remained financially stable with plans to continue to grow and expand and to better serve our members.

Through our leadership team and staff, we continue to provide improved services to our members with our new improved website, online banking and online loan inquiries. Networking and partnering with our community is a vital part of our business. Engaging with government leaders on policies that benefit our community, supporting various non-profit organizations in lead-ership positions and strong relationships with our chamber and businesses has created a new culture and broadened our involvement in the island.

As your financial institution, we strive to improve our services and investment in our island com-munity. Thus, as we announced at last year’s Annual Meeting, we will be opening the first credit union branch in Kilauea next month. This will kick-off a new era in our credit union’s history, one that we have researched and planned for several years.

To summarize, it’s been a great opportunity to serve as your Board Chair with a great leadership team and knowledgeable staff that have the heart and soul of serving our members.We strive to make this the best credit union on the island and embrace all the other credit unions on the island for we all share the same mission – “people helping people”.

To all of our members, we are proud to continue to serve you and your family with all your financial needs!

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Supervisory Committee Report

Respectfully yours,

Justin KollarChairman, Supervisory Committee

On behalf of the Supervisory Committee, I am pleased to report that the Kauai Government Employees Federal Credit Union is in compliance with the National Credit Union Administration’s (NCUA) audit requirements. A key role of the Supervisory Committee is to complete annual audits of the credit union,and, accordingly, the committee has engaged an independent certified public accounting firm to conduct annual financial statement audits of KGEFCU through 2019. The most recent financial statement audit, conducted for the period ending June 30, 2019, validated the healthy financial position of thecredit union as a solid foundation for the future.

As has been the case in previous years, NCUA guidance provides that the Supervisory Committee has two general goals. To ensure that: (1) management financial reporting objectives have been met; and (2) management practices and procedures safeguard members’ assets. To meet these two general goals, the committee determines whether credit union manage-ment has (a) established effective internal controls; (b) prepared accounting and financial reports that accurately reflect operations and results; (c) administered the board’s policies and plans; and (d) established controls and procedures to safeguard against errors, conflicts of interest, self-deal-ing and fraud. The committee makes these determinations primarily through the execution ofinternal and external audits.

In 2019, the credit union saw a great amount of internal controls being implemented, strengthen-ing the credit union’s position and mitigating risks to the organization and members. In addition, the credit union hired a new Director of Accounting, Ruth Wright, to bolster the accounting department and ensure the credit union is well positioned for future scalability. Looking forward to 2020, the credit union has expanded the Director of Accounting role to be the Director of Account-ing and Audits in order to better utilize Ruth’s experience in audits. This will allow the credit union to continue its path on the enhancement of internal controls and provide a great structure to streamline audit communication.

I would also like thank committee members Mark Kunimoto; David Longmore, Secretary and past chair; and Byron Watanabe, committee member and Board representative, for their time and service to the credit union. Finally, I’d like to thank the KGEFCU staff, management team, and Board of Directors for their support of the Supervisory Committee. You are all an essential part of the Supervisory Committeein carrying out its mission.

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Marketing Committee Report

Amy EsakiChairman, Marketing Committee

First and foremost, the Marketing Committee would like to acknowledge and thank Deloros Kaauwai for her dedication and commitment to the Marketing Committee and Kauai Government Employees Federal Credit Union for the past 44 years. Deloros was not only an active advocate for the members but also the historian of the Committee. She and her late husband, Joe Kaauwai, became members when they returned to Kauai from Oregon and credits KGEFCU for providing loans to police officers who were required to purchase their patrol cars in the 1960s. As a retired State of Hawaii Employment Office Kauai Manag-er, Deloros also shared her valuable knowledge and experience. Our deepest mahalo to Deloros!

As to the marketing accomplishments for 2019, the Committee is pleased to report the follow-ing:

1. The staff worked diligently to develop, maintain, and execute the plans for the opening of KGEF-CU’s Kilauea Branch

2. Two new full-time employees were added to the Marketing staff and are Dana Hazelton, Commu-nity Development Officer, and former volunteer Marketing Committee member Chantal Zarbaugh,Business Development Officer. The Committee looks forward to seeing positiveresults for the year 2020 with this newly formed marketing team of Bonnie Hailer, Dana Hazelton,and Chantal Zarbaugh

3. The Credit Union partnered with Inpac Wealth Solutions, a financial planning company offeringfree workshops at the Credit Union members.

4. The Credit Union awarded four high school scholarships and 1 Kauai Community College scholar-ship of $1,000 each.The volunteer members of the Marketing Committee evaluated each application and awarded thescholarships.

5. As part of community involvement, the Marketing Staff also decided to participate in the Lightsof Rice Parade, and we also were a sponsor the Maker Quest Kauai to create a safe and educationalday for the youth; participate with Kauai Credit Unions to raise funds for the Kauai IndependentFood Bank, sponsor the first North Shore job fair, sponsor the Kauai Lifeguard Association, JuniorAchievement, Kauai Fire Department, Kauai Habitat for Humanity, Kauai Farm Fair, YWCA financialempowerment and education and the Hanalei’s Rotary Club’s first Kauai “shark tank” called Catch AWave.

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Treasurer’s Report

It is my privilege to present to you the 2019 financial performance for KGEFCU.

KGEFCU remains a safe and well-capitalized institution with reserves well over the minimum regulatory limits. Our capital ratios remain strong, with continued capital and asset growth. This a reflection of the quality of your management, staff, and volunteers striving to operate economically while providing excellent service.

The major financial components of the Kauai Government Employees Federal Credit Union’s 2019 results of operations as published in this Annual Report can be summarized as follows:

Balance Sheet – Our Assets reached record highs, growing 8.7% to $120.9 million. The growth was across the board, exceeding peer averages in all categories. Loans and Deposits increased by 5.2% and 4.0%, respectively. Our Investment portfolio was up more than 30%. The strength of the balance sheet, as measured by Net Worth, remained steady with Net Worth improving 2.1% for an overall Net Worth-to-Assets Ratio of 10.3%.

Income Statement – Gross Income was up 14.6% year-over-year. We had positive operating leverage as the 11.7% change in Operating Expenses was 3.0% below overall revenue growth. Net Income contribution for the year 2019 was $250,232, despite a $1.2 million provision we took against higher delinquencies and charge-offs.

Your Credit Union Board of Directors and Staff remain committed to providing value to our membership through competitive loan and deposit rates as well as offering products and services that meet your needs. We thank you for your business this past year and look forward to an exceptional 2020.

Respectfully,

Kyle Okamura Treasurer

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Kaua‘i Government EmployeesFederal Credit Union

HonorsDeloros Kaauwai

For the 44 years you faithfully served as a member of the Marketing Committee.

We thank you for your dedication and commitment,and for your leadership in perpetuating the belief

in the credit union philosophy.We are forever grateful for the many years of

outstanding service to your community.

With great appreciation and fondness,We will miss you!

Aloha & a hui hou.

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19

All Kaua`i Cleaning CoAloha Aina Juice CafeAdolf’s Auto BodyAkita EnterprisesAloha Auto GroupAloha Furniture WarehouseAloha Island PropertiesAloha Nail StudioAunty Lynda’s TreasuresAvis Rent-a-CarAY Architect LLCBad HatsBamboo Grill & SushiBanyan HarborBayada Home Health CareBenzaken Investment GroupBowles Bobcat ServicesBrennecke’s Beach BroilerBrennecke’s Beach BungalowC-Lure Fishing Charters, Inc.

Café PortofinoCare Safe, Inc.

Charlie’s Custom Drapery & UpholsteryChing Benefit Services dba Aflac Kaua iThe Cliffs at PrincevilleCoating Works Hawaii, Inc.Coconut Coast ElectricColdwell Banker Makai PropertiesCoy R. Rebmann, DDS, Inc.Creative Therapy, Inc.Dang RentalsDuy Nguyen NailsEnterprise Holding/Alamo/NationalEsaki Surveying & Mapping, Inc.Flowers Forever LLCFM 97 RadioGrande’s GemsHale Kaua’i Ltd.Haleakala SolarH. Hawaii MediaHardware Guys Inc.Hawaii Healthcare Professionals, Inc.Hanalei Taro & Juice Co.Hawaii Security Alarm Systems

Huki Pau Landscaping LLCHSA SystemsHurst Group LLCHo`omana Painting, Inc.Integrity Engineering, LLCIT Kaua’i, Inc.J.B. Cummings, Inc.J.B. Tree Trimming & LandscapingJack Harter HelicoptersJJ’s BroilerJM Pacific Construction LLCKalepa Koa, Inc. Dba Hawaii Laser ProductsKaua’i Air Conditioning & Refrig.Kaua’i Athletic ClubKaua`i Board of REALTORS MembersKaua`i Chamber of CommerceKaua’i Community College StudentsKaua’i Independent Food Bank, Inc.Kaua’i Growers ExchangeKaua’i Kilohana PartnersKaua’i Office Equipment, Inc.Kaua’i Optometric CenterKaua’i MuseumKaua’i Producers, Ltd.Kaua’i Toyota – Servco Auto Kaua`iKaua’i United WayKelepa Koa, Inc.Kilohana Lighting, Inc.King Auto CenterK & S PumpingKONG Radio GroupKuhio Auto GroupLealani Corporation dba Brennecke’s Lihue Pharmacy, Inc.LUNAR Consulting, LLCM & K Distributors, Inc.M. Tanaka Store, Inc.Maile Properties of Kaua`iMedeiros WoodworkingMK Services dba Mokihana Travel ServicesMoney Management LLCNakamura Construction Services, LLC

Nance Property InspectionsNative Hawaiian ConservationNo Ka Oi Property Mngt. & WellnessNorth Shore Executive ServicesNukumoi Surf CompanyOhana MotorsOiwi ApothecaryOrganic Function Fitness (OFF)Phuong Trinh NailsPuakea Golf CoursePyramid InsuranceRainbow Living FoodsRegency at PuakeaRescue Services, Inc.Rutan Refrigeration HVACR.W. Palama & SonsSavage ShrimpSilva WeldingSocial Kaua`iSpeedie Lube of Hawaii, Inc.S & S Business Machines, Inc.Steven Hashi ConstructionStudio 203 SalonSuzuki Kaua`iTalk Story BookstoreTamba Surf Company LLCThe Coconut Cup LLCThe Fence CompanyThe Garden Island NewspaperThe Hertz CorporationTommy’s Mobile Auto RepairToolmaster Hawaii, UnincorporatedUp-to-Date Cleaners Kaua’i, Inc.Waipouli Beach Resort – MembersWerner Construction, Inc.WYK LLC

Lokahi Partners

A Lokahi Partner or (SEG) is a Kaua’i business that partners with Kaua’i Government Employees FCU offering credit union membership to its employees as a part of their benefit package. This valuable no-cost benefit will enhance your current benefits package. KGEFCU is dedicated to helping each one of our members achieve financial success through our services. We will provide you with all of the membership information for your employees and be available for on-site financial education sessions at your convenience.

Haz Marble & TileHilton Garden Inn

All Kaua`i Cleaning CoAloha Aina Juice CafeAdolf’s Auto BodyAkita EnterprisesAloha Auto GroupAloha Furniture WarehouseAloha Island PropertiesAloha Nail StudioAunty Lynda’s TreasuresAvis Rent-a-CarAY Architect LLCBad HatsBamboo Grill & SushiBanyan HarborBayada Home Health CareBenzaken Investment GroupBowles Bobcat ServicesBrennecke’s Beach BroilerBrennecke’s Beach BungalowC-Lure Fishing Charters, Inc.

Café PortofinoCare Safe, Inc.

Charlie’s Custom Drapery & UpholsteryChing Benefit Services dba Aflac Kaua iThe Cliffs at PrincevilleCoating Works Hawaii, Inc.Coconut Coast ElectricColdwell Banker Makai PropertiesCoy R. Rebmann, DDS, Inc.Creative Therapy, Inc.Dang RentalsDuy Nguyen NailsEnterprise Holding/Alamo/NationalEsaki Surveying & Mapping, Inc.Flowers Forever LLCFM 97 RadioGrande’s GemsHale Kaua’i Ltd.Haleakala SolarH. Hawaii MediaHardware Guys Inc.Hawaii Healthcare Professionals, Inc.Hanalei Taro & Juice Co.Hawaii Security Alarm Systems

Huki Pau Landscaping LLCHSA SystemsHurst Group LLCHo`omana Painting, Inc.Integrity Engineering, LLCIT Kaua’i, Inc.J.B. Cummings, Inc.J.B. Tree Trimming & LandscapingJack Harter HelicoptersJJ’s BroilerJM Pacific Construction LLCKalepa Koa, Inc. Dba Hawaii Laser ProductsKaua’i Air Conditioning & Refrig.Kaua’i Athletic ClubKaua`i Board of REALTORS MembersKaua`i Chamber of CommerceKaua’i Community College StudentsKaua’i Independent Food Bank, Inc.Kaua’i Growers ExchangeKaua’i Kilohana PartnersKaua’i Office Equipment, Inc.Kaua’i Optometric CenterKaua’i MuseumKaua’i Producers, Ltd.Kaua’i Toyota – Servco Auto Kaua`iKaua’i United WayKelepa Koa, Inc.Kilohana Lighting, Inc.King Auto CenterK & S PumpingKONG Radio GroupKuhio Auto GroupLealani Corporation dba Brennecke’s Lihue Pharmacy, Inc.LUNAR Consulting, LLCM & K Distributors, Inc.M. Tanaka Store, Inc.Maile Properties of Kaua`iMedeiros WoodworkingMK Services dba Mokihana Travel ServicesMoney Management LLCNakamura Construction Services, LLC

Nance Property InspectionsNative Hawaiian ConservationNo Ka Oi Property Mngt. & WellnessNorth Shore Executive ServicesNukumoi Surf CompanyOhana MotorsOiwi ApothecaryOrganic Function Fitness (OFF)Phuong Trinh NailsPuakea Golf CoursePyramid InsuranceRainbow Living FoodsRegency at PuakeaRescue Services, Inc.Rutan Refrigeration HVACR.W. Palama & SonsSavage ShrimpSilva WeldingSocial Kaua`iSpeedie Lube of Hawaii, Inc.S & S Business Machines, Inc.Steven Hashi ConstructionStudio 203 SalonSuzuki Kaua`iTalk Story BookstoreTamba Surf Company LLCThe Coconut Cup LLCThe Fence CompanyThe Garden Island NewspaperThe Hertz CorporationTommy’s Mobile Auto RepairToolmaster Hawaii, UnincorporatedUp-to-Date Cleaners Kaua’i, Inc.Waipouli Beach Resort – MembersWerner Construction, Inc.WYK LLC

Lokahi Partners

A Lokahi Partner or (SEG) is a Kaua’i business that partners with Kaua’i Government Employees FCU offering credit union membership to its employees as a part of their benefit package. This valuable no-cost benefit will enhance your current benefits package. KGEFCU is dedicated to helping each one of our members achieve financial success through our services. We will provide you with all of the membership information for your employees and be available for on-site financial education sessions at your convenience.

Haz Marble & TileHilton Garden Inn

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www.kgefcu.org | aloha@kgefcu.org