2015ANNUAL REPORT to members for the year

Leominster Credit Union had another successful year in 2015. In addition to achieving our fi nancial targets and providing highly competitive products and services, we also achieved many other notable goals, such as making more technological advancements, improving our state-of-the-art digital capabilities, and further renewing our commitment to fi nancial education.

On the technological front, we continued to improve and enhance our digital products, services, and delivery channels. LCU now offers a virtual electronic branch where most everything you can do in a branch offi ce can now be done via your computer, smart phone, or ATM. Recent updates to our bill pay and mobile banking services make the user experience even more convenient. Our Mobile Deposit and Person-to-Person Payment Services continue to be the most popular features of our e-branch. And members can now take advantage of wallet-pay technology when making payments with their LCU debit or credit card.

LCU’s commitment to fi nancial education was enhanced in 2015 by offering more than 10 free seminars including Purchasing Your First Home; Social Security and Retirement Planning; Social Media and Electronic Marketing for Small Businesses; and Becoming Credit Eligible following a Financial Setback. These free seminars, which were offered throughout our branch system, were in addition to our extensive fi nancial education programs lead by Ingrid Adade, AVP Financial Education.

As a credit union, our mission in 2015 remained unchanged: to support the local community by offering fairly priced solutions to meet our members’ credit and deposit needs. Over the past few years, our goal has been to decrease our investment portfolio while growing our loan portfolio by meeting more of our members’ lending needs with a variety of well-priced options.

Financially, we had a good year in 2015. Assets grew over $5 million during 2015 from $621.1 million at 2014 year-end to $626.5 million at December 31, 2015.

In 2015, investments declined by $7.8 million, while the lending portfolio grew $11.0 million from $408.2 million in 2014 to $419.3 million at year-end 2015; an increase of 2.7%, which was primarily fueled by growth in the real estate lending sector. First mortgages increased from $169.5 million at year-end 2014 to $175.4 million at December 31, 2015. We also experienced a $4.2 million increase in home equity lines of credit (HELOC) during that same period.

Total deposits declined in 2015 as we continue to run off certain certifi cates of deposit, while we focus on growing member relationships through core deposit products such as checking and savings accounts. Total deposits went from $443.2 million at the end of 2014 to $436.1 million at 2015 year-end. However, the makeup of our deposit portfolio continues to move in the desired direction with a $6.8 million increase in savings and an $8.0 million increase in checking accounts. Term certifi cates of deposits decreased by $13.5 million in 2015. To offset this decrease, we tapped into alternate funding sources including FHLB borrowings, which increased by $12.8 million during 2015.

Net income for the year ending December 31, 2015 totaled $1.9 million with a corresponding return on average assets of 0.30%.

LCU’s net worth ratio grew from 8.39% at the end of 2014 to 8.61% at December 31, 2015; the highest it has been since 2008. The institution continues to be recognized as “Well Capitalized,” which is the highest capital adequacy designation established by federal regulators at the National Credit Union Administration.

As we enter 2016, I’d like to thank our dedicated Board of Directors, hard-working staff, and loyal credit union members for making 2015 another excellent year for LCU. As we continue to expand our technological capabilities and widen our product offerings, we’re confi dent that the future holds much promise for both our credit union and the surrounding community.

Sincerely,

John J. O’Brien Anthony A. GasbarroPresident and CEO Chairman of the Board

Message to Members

“LCU now offers a virtual electronic branch where most everything you can do in a branch offi ce can now be done via your computer, smart phone, or ATM.”

Sincerely,

John J. O’Brien Anthony A. GasbarroPresident and CEO Chairman of the Board John J. O’Brien Anthony A. Gasbarro

Leominster Credit UnionStatements of Condition*

December 31, 2015 & 2014

December 31, 2015 December 31, 2014 (unaudited) (unaudited)

Assets Total Cash and Investments $176,638,062 $181,845,251 Loans: Installment 177,394,175 177,165,118 Real Estate 175,445,429 169,521,764 Home Equity 48,523,764 44,332,258 Member Business 17,912,330 17,223,024 Gross Loans 419,275,699 408,242,164 Allowance for Loan Losses (2,141,018 ) (2,163,874 ) Net Loans 417,134,681 406,078,290 Premises & Equipment, net 11,581,069 12,563,113 Other Assets 21,173,019 20,572,272 Total Assets $626,526,831 $621,058,926

Liabilities & Surplus Deposits: Share Savings $277,267,572 $267,796,240 Share Certifi cates 158,817,867 175,254,665 Total Deposits 436,085,439 443,230,905 Borrowings 125,000,000 112,190,000 Other Liabilities 3,590,561 3,790,645 Total Liabilities 564,676,000 559,211,550 Total Surplus 61,850,831 61,847,376 Total Liabilities and Surplus $626,526,831 $621,058,926

* The Statements of Financial Condition at December 31, 2015 and 2014 are unaudited. The Credit Union’s fi nancial statements were audited as of September 30, 2015 and 2014. Audited fi nancial statements will be made available to members upon request.

In 2010, when LCU was looking to expand and members were asking for more retail locations in Worcester, a space opened up on Shrewsbury Street, Worcester’s premier retail and restaurant location, and the credit union seized the opportunity.

LCU’s Shrewsbury Street Branch opened on February 7, 2011, a full-service branch featuring a complete line of consumer products, business services, a convenient location on Shrewsbury Street, a good-sized parking lot, a drive-through lane, and an ATM. While the branch showed early promise, it wasn’t until current branch manager

Tammy Garcia came onboard in August of 2015 that the branch started showing exceptional growth in branch business and member relationships.

Since the branch’s inception, its managers have been very active in the community, which has broadened recognition of the LCU brand. Currently, Shrewsbury team members participate in the following organizations: the Worcester Chamber of Commerce, including WIN (Women’s Information Network) and “Business After Hours” networking events; the Shrewsbury Street Merchant Association; and the Worcester Women’s Leadership Conference.

Spotlight on the Shrewsbury Street Branch

The President’s Award is given annually to two employees, one from the Retail Division and one from the Back Offi ce Support Departments, who demonstrate exemplary job performance, superior customer service, and adherence to LCU’s mission and values. The 2015 recipients were Daisy Casiano for Retail Services and Susie Landry for Back Offi ce Support. Daisy is an all-around performer. She has a superior understanding of front line processes and helps train other staff members on new systems. The superior service and sound fi nancial solutions she provides her members have had a positive effect on the success of her branch. Susie Landry, meanwhile, recently stepped into the newly created Project Manager role. In her short time in this position, Susie has successfully brought several major projects to completion by fostering collaboration across all departments of the credit union. She also established a process for prioritizing new projects to ensure the appropriate allocation of resources and adherence to project timelines.

The President’s Award

Susie Landry

Daisy Casiano

Tammy Garcia

The President’s Award is given annually to two employees, one from the Retail Division and one from the Back Offi ce Support Departments, who demonstrate exemplary job performance, superior customer service, and adherence to LCU’s mission and values. The 2015 recipients were Daisy Casiano for Retail Services and Susie Landry for Back Offi ce Support. Daisy is an all-around performer. She has a superior understanding of front line processes and helps train other staff members on new systems. The superior service and sound fi nancial solutions she provides her members have had a positive effect on the success of her branch. Susie Landry, meanwhile, recently stepped into the newly created Project Manager role. In her short time in this position, Susie has successfully brought several major projects to completion by fostering collaboration across all departments of the credit union. She also established a process for prioritizing new projects to ensure the appropriate allocation of resources and adherence to project timelines.

The President’s Award

Susie Landry

Daisy Casiano

Offi cersJohn J. O’Brien, President & CEOGary M. Abrams, EVP, CFO & COOCraig S. Madonia, SVP LendingBarbara A. Mahoney, SVP Human ResourcesCarol A. Perron, SVP RetailJanet L. Belsky, VP MarketingThomas D. Clancy, VP Information TechnologyD. Oscar R. O’Connor, VP Lending OperationsMychelle M. Phillips, VP OperationsIngrid G. Adade, AVP Financial EducationGregory S. Bourekas, AVP Indirect LendingKim A. Cary, AVP Branch ManagerJoseph R. Coller, AVP IT ManagerJoyce L. Cutler, AVP Branch ManagerJohn J. Diggins, AVP Contact CenterMatthew J. Dufault, AVP Mortgage

Origination & SalesMichael A. Emma, AVP CollectionsJennie E. Gray, AVP Branch ManagerLisa Gurevich, AVP Retail SalesCynthia G. Hamilton, AVP ControllerRandy J. Harris, AVP TreasuryMaria L. Litalien, AVP Loan Servicing

June M. Navalany, AVP AuditRoland J. Paquette, AVP Facilities ManagerTodd W. Sibley, AVP Commercial LendingSuzanne M. St. Cyr, AVP Consumer LendingLydia Vazquez-Long, AVP Real Estate LendingJulie K. Bergstrand, Real Estate Underwriting

ManagerMaila L. Berry, Account Services ManagerEllenmarie Coughlin, HR ManagerGeorge B. Fitzpatrick, Indirect Business

Development ManagerTammy M. Garcia, Branch Manager IIBryon W. Goguen, Assistant ControllerKristen L. Gustafson, Branch Manager IStephanie Hernandez, Branch Manager IPaula A. Konde, Branch Manager IIJoanne Lattanzi, Marketing ManagerNicole M. Legere, Compliance Offi cerKelly A. Marrone, Payment Services ManagerMelissa A. McDonald, IT Risk ManagerJustin A. Silva, Retail AdministratorAnn S. Younie, Senior Technology AnalystRandy J. Harris, AVP Treasury

Maria L. Litalien, AVP Loan Servicing

Ann S. Younie, Senior Technology Analyst

Employees Jillian AmicoBrian ArsenaultDaisy AyalaDeborah BaconDoreen BarkerKimberly BeasleyAshley BeroJoukiAnna BobrzynskaMcKenzie BryantChelsea BurbaAnnemarie ButtittaDaisy CasianoJayne ChaffeeDeborah ChaseElizabeth ClemenceKathleen CormierKristen CoteNancy DaigleChristine Dees-WarpulaKelley DeWolfNancy DeyaJennifer DotsonRoberta DukeMarianne ElliaAndrew EllisJames EllisDiane FarnsworthLarris FifeNicole FlorioSusan ForceStacie ForhanAshlynn Fratoni

Donna GallantDawn GarriganArmando GemeiSarah GlennyJacqueline GnozaNereida GonzalezMason GotuzzoChantelle GreenwoodCarolyn GrimaldiMelissa GuertinBrittany HaleyBridget HaleyErin HigbeeCynthia HolderKathleen HurleyErica KleinerBrittany KnightLynne LaCossAmy LacoutureSusan LandryLisa LavalleeKaren LierCecelia LinnCayden MacKenzieSherry MacyLeslie ManirathMichael MastrapasquaKayli McGurnDiane McNamaraAngel MontanezNikki MooarSarah Moore

Cynthia MorlockCarolyn MshooshianTimothy O’LearyKaren PiraniRuthann PisciottaJoseph ReynoldsMailly RiveraDanielle RiveraLuis RiveraJessica SeneeTracy SpringerAndrew SquierChristine SwintLinda TaratutaJason TempleRachel TerrellMeghan ThomasKim ThompsonSandra TobojkaJaime TomerAlex TorresPamela TortoraArden TwiningFiona VoAnneMarie WalkerBonnie WaxmanElaine WentzellDebra WhelanKaren WholeyMao YangLisa Zorn

Board of DirectorsAnthony A. Gasbarro, ChairmanGiulio G. Greco, Vice ChairmanJoyce A. LaFleur, TreasurerHenry C. Kulik, Assistant TreasurerRichard A. Sheppard, ClerkAmedeo E. BilottaBruce J. BollivarAndrew D. CousinsNancy L. GravesJoseph V. QuintalMichael J. Sauvageau

Advisory CommitteeJames W. BollivarDeborah A. BuckleyRobert J. DelleChiaieMarc S. DohanNancy L. DubeMelissa A. GlennyJayne E. HadleyEdward P. LavigneLeonard F. LeaderJoyce G. LegerThomas M. McNamaraLisa A. PeteAnne Marie Schiavitti-SmithGregory R. SteffonDr. Robert M.TrudelGregory W. Wheeler

Honorary DirectorsSantino P. FantozziSettimio R. FirmaniJoseph J. TataJoseph J. Serafi niHenry P. Lisciotti, Jr.Edward O. MazzaferroJohn W. Reedy, Jr.

Our Team

800.649.4646 • leominstercu.comLeominster • Clinton • Holden • North Leominster • Sterling • Worcester

What does a brand say about an organization? It refl ects its values, its business philosophy and its promise. We asked what was most important to you, and we learned that you’re somebody who takes pride in your community; you’re somebody who provides for your family; and you’re somebody who wants a credit union that shares your values, your goals and your dreams. And so, to celebrate the value that each and every member brings not only to LCU but to the entire community, our new brand was obvious: at LCU, “You’re somebody.” And we endeavor to live this brand every day and in every interaction.