San Francisco Federal Credit Union

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Annual Report770 Golden Gate Avenue, San Francisco, CA 94102

SanFranciscoFCU.com 415.775.5377

GIVING BACKAt San Francisco Federal Credit Union, we are dedicated to the communities we serve. Through our CommunityShare program, we give back to communities in San Francisco and San Mateo Counties through donations, staff volunteerism and fundraising activities.

In 2015, we donated more than $144,000 to community based organizations and our employees volunteered 1,322 hours.

Some of the highlights for 2015 include partnering with over 80 community based organizations and working close to 300 hours at the San Francisco and San Mateo Food Bank’s. We also participated in the San Francisco AIDS Walk and Light the Night Walk for Leukemia & Lymphoma Society for which we were awarded top honors. Park and coastal clean ups also played a big part in 2015. We are looking forward to exceeding our goals again in 2016.

REPORT OF DIRECTORS

We are pleased to report that 2015 was a year of strong performance and growth for San Francisco Federal Credit Union. Highlights include total assets growing to over $999 million, member shares and equity exceeding $978 million, and net loans increasing to $524 million.

In 2015, we exceeded our membership growth goals by merging with local credit unions and creating revolutionary new financial services. We continued in our efforts to make our members’ financial lives easy. Highlights from 2015 include:

• Creation and launch of POPPYLOANSM

• Opening of the Excelsior branch • Completed two mergers (SF Recreation & Parks Federal Credit Union & Bethel

A.M.E. San Francisco Federal Credit Union)• Enhanced website and online banking platform• Implementation of Apple Pay®

While 2015 was a year full of growth and improvements, we continue to focus on ways to enhance our products and services for members, and we welcome your feedback.

BOARD OF DIRECTORS & LEADERSHIP TEAM

BOARD OF DIRECTORSHarry Quinn - Chair, William Smith - Vice Chair, Larry Doyle - Treasurer,Kevin Kone - Secretary, Catherine Breen, Pat Cox, Grant Mickins, Carol Sam, Ted Wong

BOARD EMERITUSBernard Crotty, Henry Low, Felton Williams

SUPERVISORY COMMITTEETodd Rydstrom - Chair, Matt Evans, Jelena Ewart, Ben Kurko, Cheryl Taylor

ADMINISTRATIONSteven Stapp - President & Chief Executive OfficerStephen Ho - Executive Vice President & Chief Financial OfficerJude Gogan - Senior Vice President & Chief Operating OfficerRebecca Reynolds Lytle - Senior Vice President & Chief Lending Officer Mark Michaels - Senior Vice President & Chief Technology OfficerMichael Namba - Vice President & Chief Administrative Officer

REPORT OF THE SUPERVISORY COMMITTEE

The Supervisory Committee is responsible for ensuring that the financial condition of the Credit Union is accurately and fairly presented in all of the Credit Union’s financial statements. The Committee also ensures that management practices and procedures are sufficient to safeguard members’ assets. To accomplish these responsibilities, The Committee retained RSM US LLP, Certified Public Accountants, to perform an audit of our financial statements for the fiscal year ending September 30, 2015 and the Supervisory Committee met regularly with management during the year to review current operations. We are pleased to report that they rendered an unqualified opinion on our financial statements. In other words, we received a clean bill of health.

MEMBERS

$ Th

ousa

nd

MEMBER SHARES AND EQUITY

$ M

illio

n

,

LOANS OUTSTANDING

$ M

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CAPITAL RATIO

9%

8%

10%

11%

STATEMENTS OF INCOME UNAUDITED

YTD December YTD December 2015 2014

Interest On Loans $20,139,239 $18,806,110Income From Investments 7,352,892 6,293,113Fee Income 3,138,650 2,922,256Other Operating Income 1,647,977 1,274,036Non-Operating Income 634,373 668,408 Total Gross Income $32,913,131 $29,963,923

Dividend On Shares $3,502,092 $3,292,222Interest Expense Total Cost Of Funds

18,885$3,520,977

947$3,293,169

Provision For Loan Losses 357,664 208,770 Income After Cost Of Funds & Provision For Loan Losses $29,034,490 $26,461,984

Employee Compensation & Benefits $15,063,024 $13,755,709Training & Conference 386,539 448,987Office Occupancy 2,067,346 1,775,210Office Operations 5,600,509 4,452,683Educational & Promotional 621,800 735,404Loan Servicing 1,294,711 1,053,303Professional & Outside Services 701,496 592,015Examination, Supervision Fees 171,593 160,175

$22,973,486 Total Operating Expenses $25,907,018

Net Income BeforeNCUSIF Stabilization Expense 3,127,472 3,488,498

-243,529NCUSIF Stabilization Expense 0

NET INCOME $3,127,472 $3,732,027

STATEMENTS OF FINANCIAL CONDITION

UNAUDITED

ASSETS YTD December YTD December 2015 2014

Loans To Members $526,426,356 $436,598,327 Loan Loss Allowance (2,665,258) (2,656,245)Net Loans Outstanding 523,761,098 433,942,082Cash On Hand & Bank 3,051,801 3,099,658Other Investments 4,852,331 1,006UST/Agency Notes 408,955,122 421,591,503Corporate FCU Deposits 7,246,440 31,474,384Land & Building 5,040,874 4,783,302Furniture & Equipment 1,682,651 1,224,587NCUSIF Deposit 7,907,018 7,441,246Accrued Income Receivable 2,909,714 2,460,694Prepaid Exp/Other Assets 34,081,887 32,468,027

TOTAL ASSETS $999,488,936 $938,486,489

LIABILITIES AND EQUITY

Other Liabilities/Div Payable $10,951,485 $9,923,597Notes Payable 10,000,000 0 Total 20,951,485 9,923,597Regular Shares 165,719,773 113,368,291Share Checking 108,134,928 93,521,749Money Market Shares 304,394,927 317,030,363Term Account Shares 253,637,564 263,581,485I.R.A. Shares 43,647,036 43,272,277 Total 875,534,228 830,774,165Economic Reserve 40,000,000 40,000,000Retained Earnings 56,644,239 51,429,743Regular Reserve 6,358,984 6,358,984 Total 103,003,223 97,788,727TOTAL LIABILITIES AND MEMBER EQUITY

$999,488,936 $938,486,489

Thank you for helping to make 2015 the best year yet.

Federally insured by NCUA

If you have any questions about your statements or accounts at the Credit Union, please call our Service Center at 415.775.5377. If your question is not resolved to your satisfaction, you may

send a letter to the attention of the Supervisory Committee.P.O. Box 426679

San Francisco, CA 94142