2019Annual REPORT

This credit union is federally insured by the National Credit Union Administration

Board of Directors

Credit Union Staff

David WilliamsonTerm Expiration: April 2021Chair

Jacqueline DixonTerm Expiration: April 2021Vice Chair

Charley RamirezTerm Expiration: April 2023Treasurer

Linda KunzeTerm Expiration: April 2022Secretary

Steve HammondsTerm Expiration: April 2023Director

Don RaweTerm Expiration: April 2021Director

Calvin SmithTerm Expiration: April 2023Director

Dedric AyoAdvisory Director

Martha GarciaAdvisory Director

Melody CalhounLinda CarmonaAngelia CarterRolando DallasJorge EscaleraGloria EscobarBrad FergusonDonna Fullen

Mike FunkSimona HerrickTwasha HudsonCindy JohnsonRyan JonesJennifer KahanKarla LopezMisti Martin

Candice MillsTina MorganAshley PostellKim PurintunMinerva SierraHolly StipeDon Waddell

AgendaCall to Order

David Williamson, Board Chair

InvocationCalvin Smith, Director

Determination of QuorumLinda Kunze, Board Secretary

Reading of 2018 Annual Meeting MinutesLinda Kunze, Board Secretary

Comments from the ChairDavid Williamson, Board Chair

Comments from the PresidentMike Funk, President

New BusinessDavid Williamson, Board Chair

Unfinished BusinessDavid Williamson, Board Chair

Report of Nominating CommitteeDon Rawe, Director

Door PrizesCalvin Smith, Director

Adjournment

Comments from theChairman of the Board

It has been a privilege to serve you as the Chairman of the Board of LibertyOne Credit Union this past year. It truly feels like we are one, big, happy family.

We are a not-for-profit financial cooperative owned by our members and everyone has an equal membership share, regardless of the amount on deposit. By pooling resources, we can help each other with low-cost financial services. We are not working for a group of stockholders. We are working for each other.

LibertyOne has consistently been one of the strongest credit unions in the state and continues that tradition today with a very strong capital position. Through strong leadership, customer focus, and prudent decision making, LibertyOne continues to be a very sound and solid financial institution.

We are a credit union that is focused on serving our membership. The decisions made by the Board of Directors and the management staff focus on how we can improve the quality of life for our members. This continues to result in low loan rates for borrowers and above market deposit rates for savers.

But there is more. Our 5-Star Program can further reduce loan rates and further increase deposit rates. Great auto loan rates and frequent loan specials, full family membership, mobile banking/online banking, free ATMs, discount event tickets and more are some of our benefits.

I really like our focus on providing personal service and helping people. All levels of the organization have this focus. You have a dedicated Board of Directors that cares how the members are treated and how the organization can positively impact member’s lives. You have an excellent management team, starting with Mike Funk the President, and continuing with the rest of the management team. And you have top quality employees that execute the day to day operations to make your credit union the best it can be. As a Board member, I hear many stories of how we helped a member when no one else would. That is the credit union difference and I think LibertyOne does an excellent job for you in this area.

I am proud to be a member of LibertyOne. I am proud to serve with the quality and talented people that run LibertyOne. And I am proud to have a membership that embraces the cooperative philosophy and works to benefit one another.

Sincerely,

David WilliamsonChairman of the Board

Financial Highlights

Distribution of Earnings

INCOME 2018 2019Interest from Loans $3,771,185.15 $4,089,668.58 Income from Investments $727,092.14 $760,618.67 Other Operating Income $1,298,904.79 $1,162,220.81 Total Income $5,797,182.08 $6,012,508.06

Non-Operating Gains or Losses $0.00 $200Dividend on Deposits $1,475,313.03 $1,646,705.39

NET INCOME $698,524.91 $565,866.78

EXPENSE 2018 2019Employee Compensation $1,386,496.33 $1,458,894.16 Employee Benefits $363,343.48 $426,696.08 Travel & Conference Expense $103,729.91 $89,480.57 Office Operations Expense $816,046.25 $824,247.75 Education & Promo Expenses $109,565.80 $117,103.77 Loan Servicing Expense $123,465.39 $172,419.01 Professional and Outside Services $259,930.27 $260,884.71 Provision for Loan Losses $362,027.82 $328,645.47 Operating Fees $20,426.00 $20,738.33 Miscellaneous Expenses $78,312.89 $101,026.04 Total Operating Expense $3,623,344.14 $3,800,135.89

Interest Paid to Members $1,646,705 $0.27

Expenses $3,799,936 $0.64

Net Income $565,867 $0.09

$6,012,508 $1.00

@p64

@p09@p27

Expenses64%

NetIncome

9%

Interest Paidto Members

27%

Comments from the President

Your credit union had another good year in 2019…..thanks to you!! YOU deposit funds that other members borrow and that cooperative philosophy makes us unique and makes us all family!

Early in 2019, federal workers were furloughed – we were there to help out with 0% Furlough Loans and Furlough Skip-A-Payments. We also started issuing instant issue debit cards to help our members have access to their accounts and their money more quickly. We had our first-ever OBEMOCATS…in July! promotion and made over $6 million in loans to our members that month! At last year’s Annual Membership Meeting, we announced our association with Canine Companions for Independence, a non-profit organization that enhances the lives of adults, children and veterans with disabilities by providing expertly trained assistance dogs free of charge! The credit union and its employees donated money and time to helping this great cause and we also participated in a Dog Walk Fundraiser late in the year.

In 2020, LibertyOne will be donating 1% of our net income each month to Canine Companions and we will soon have a Canine Companions debit card available to our members where every swipe of the card generates a donation to this wonderful cause. Our employees and Board members will also be participating in DogFest later this year as a form of support.

Canine Companions has been around since 1975 providing assistance dogs who also serve as the owner’s best friend. They open up new possibilities and new opportunities and spread incredible joy! Here are a few of their core values: Team-work – We believe in the joyful, transformative power of the human-canine partner-ship. Integrity – We do what is right, guided by honesty, accountability and sincerity. Excellence – We conduct ourselves with professionalism in pursuit of the highest standards.

If you are interested in learning more about Canine Companions for Independence, go to www.cci.org and you’ll find plenty of opportunities to either beinvolved or just educate yourself about this wonderful organization. LibertyOne will also be doing its part to give back and you’ll also have opportunities to join us in supporting them.

We’ll be there throughout the year for you as well, just like we were when many of our members were furloughed last year. This is your credit union and we’re here to serve you.

If there is anything at all I can do for you, please call me at 469-212-0238. I would love to hear from you!

Respectfully,

Mike FunkPresident

Total Reserves (in millions)

Total Deposits (in millions)

2015 2016 2017 2018 2019

2015 2016 2017 2018 2019

$13,143,861

$98,533,181

$104,902,075

$113,128,027 $117,299,395

$117,641,941

$13,450,831 $13,751,648

$14,250,409

$15,482,601

$120

$110

$100

$90

$80

$16

$15

$14

$13

$12

$2,056,758JAN

$3,651,723FEB

$2,764,956MAR

$2,695,147APR

$2,517,464MAY

$2,688,177JUN

$7,050,828JUL

$4,370,154AUG

$3,038,858SEP

$7,247,759OCT

$4,078,115NOV

$3,044,901DEC

2019 NEW LOANS Balance Sheet - Assets

PERSONAL LOANS

New Car 570 $12,954,628.06 Used Car 2,200 $ 38,207,410.28Boats,Motorcylces, RV 173 $ 3,799,110.10Signature 2,777 $ 7,114,330.24Credit Cards 2,323 $ 2,881,502.52First Mortgage 280 $ 26,121,215.18 Home Equity 199 $ 6,755,084.89 Other Loans 104 $ 1,899,078.12

Total Personal Loans 8,626 $ 99,732,359.39 Allow. for Loan Losses ($535,346.99)

Net Personal Loans $ 99,197,012.40

CASH

Total Cash on Hand $ 422,194.92

INVESTMENTS

CACU Funds Adv. $2,857,127.74 Banks and S&Ls $19,482,092.48 NCUSIF $1,071,542.97 U.S. Gov't & Agencies $ 10,014,489.31 Unrealized Gain/Loss $142,201.92Other Investments $0.00

Total Investments $33,567,454.42

FIXED ASSETS

Furniture & Fixtures $ 30,513.31 Leasehold Improvements $3,623.96 Computer Equipment $21,433.10

Total Fixed Assets $ 55,570.37

OTHER ASSETS

Total Other Assets $ 575,252.44

TOTAL ASSETS $133,817,484.55

Balance Sheet - Liabilities & Equity

ACCOUNTS PAYABLE

Accounts Payable $359,792.57 Notes Payable $0.00Taxes Payable $ 3,066.87 Total Accounts Payable $ 362,859.44

ACCRUED INTEREST PAYABLE

Share Savings $0.00IRA Certificates $7,799.51 Regular Certificates $49,355.08 Total Accrued Interest $57,154.59

OTHER LIABILITIES

Accrued Expenses $125,652.15 Outstanding Checks $682,623.35 Other Liabilities $0.00Total Other Liabilities $808,275.50

MEMBERSHIP EQUITY

Share Savings $ 54,529,208.18 Christmas Club $ 34,967.52 Free Checking $ 2,299,833.34 Prime Checking $ 8,556,749.52 IRA Savings $ 1,160,391.16 IRA Certificates $7,199,492.82 Regular Certificates $43,861,298.47 Total Membership Equity $117,641,941.01

RESERVES

Regular Reserves $ 1,536,891.07 Undivided Earnings $12,702,294.24 Investment Allowance $ 142,201.92YTD Net Income $565,866.78 Total Reserves $ 14,947,254.01

TOTAL LIABILITIES AND EQUITY $133,817,484.55

Total Membership Equity

Total Personal Loans

Savings 46.38%

Checking 9.23%

IRA 7.11%

Regular CD 37.28%

100.00%

New Car 13.00%

Used Car 42.12%

Signature 7.13%

Credit Card 2.89%

Mortgage 32.96%

Other Loans 1.90%

100.00%

Checking9.23%

Signature7.13%

Credit Card2.89%

Other Loans1.90%

IRA7.11%

Regular CD37.28% Savings

46.38%

Used Car42.12%

New Car13.00%

Mortgage32.96%

Mission Statement

“LibertyOne Credit Union seeks to be our member’s primary financial institution and will adhere to the highest ethical standards while

maintaining a sound financial foundation.”

Dallas Service Center1100 Commerce Street, Ste. 615

Dallas, TX 75242

Farmers Branch Service Center4050 Alpha Road, Ste. 120Farmers Branch, TX 75244

Arlington Service Center2221 E. Lamar Blvd, Ste. 110

Arlington, TX 76006

24 Hour Telephone Teller214-413-5588 option 1800-672-1320 option 1

Phone: 214-413-5588 | 800-672-1320

Fax: 214-752-2499

Home Loans: 832-912-2151

Mastercard Customer Service: 800-442-4757 | www.gotomycard.com

Email: libertyone@libertyonecu.com

www.libertyonecu.comThe Credit Union for Federal Employees and Their Families