Growth continues at Scott Credit Union

PRESIDENT’S LETTERON BEHALF OF YOUR Board of Directors,

I am proud to announce that 2019 was an-other successful year for Scott Credit Union.

The credit union paid out $8.5 million in dividends to members in 2019. We shared our success by paying active members a 1.75% Bonus Dividend on shares as well as providing a 1.75% loan interest rebate to our borrowers. The bonus dividend and loan interest rebate, which totaled over $1 million, are examples of the value of mem-bership with Scott Credit Union.

We were again successful in 2019 with continued growth in Scott Credit Union membership. With our growing network of branches and ATMs, as well as our online and mobile offerings, we provided conve-nient products and services to area resi-dents. We again experienced solid deposit growth thanks to the competitive rates we offer. We also are proud to have opened three new branches, moved our East Bel-leville branch, and to have announced plans for four additional branches in 2020.

The commitment of the Board of Directors, management and staff of Scott Credit Union continues to be focused on the fiscal interest of the credit union, the needs of our members, and the welfare of our community. It is our duty and obligation to support the communities in which we live and work.

Because of our success in 2019, we were also able to give support to the com-munities we serve. We contributed over $369,000 to a variety of fundraising efforts, community events, and civic organizations, including activities at Scott Air Force Base. Our employees also volunteered more than 1,900 hours in the community. We are extremely proud of the volunteer efforts of our staff in 2019.

The charitable efforts we supported in 2019 included the American Lung Associ-ation, American Cancer Society, American Heart Association, Backstoppers, Helping Hand Me Downs, Illinois Center for Autism,

National MS Society, Salvation Army, and Special Olympics. We also donated $25,000 to the United Way from the proceeds of the 13th annual Scott Credit Union Community Foun-dation golf tournament.

Additionally, some of our larger civic partnerships included the 126th Air Refuel-ing Wing, 375th Force Support Squadron, Fairview Heights Rec Plex, Gateway Region YMCA, Highland Area Community Foun-dation, Highland Optimist Club, Memorial Hospital in Belleville, Songs for Soldiers, St. Elizabeth’s Hospital in O’Fallon, and St. Joseph’s Hospital in Highland. We were also proud to again financially support many local schools, colleges and universities and community sports teams.

I am also pleased to report that our employees and members once again sup-ported many additional local charities and organizations. During the year, they raised money and donated items for the Muscular Dystrophy Association, United Way, Dogs That Help and various holiday charity cam-paigns throughout our communities.

Employees of SCU also provided finan-cial education to more than 2,400 students from 18 area schools and youth organiza-tions during the last school year. We spon-sored 15 CU4Reality Financial Education Fairs to teach students important money management and budgeting skills. We were also proud to fund $1,000 scholarships for a student at Southwestern Illinois College and Lewis and Clark Community College.

I am proud of Scott Credit Union and look forward to a future of sustained success, growth, and service to our mem-bers. On behalf of the Board of Directors, management and staff, thank you for your continued support.

CMSgt. William P. Hostetter (Ret), Chairman, Board of Directors

www.scu.orgMember Contact Center:

(618) 345-1000 or (800) 888-4SCU (4728)Scott Credit Union is an

Equal Opportunity Employer.

Federally Insured by NCUA

SCOTT CREDIT UNION continued to provide members with a great value, and continued its focus on growth, in another successful year in 2019. Throughout the year, we provided our members a money-saving alternative and supported the communities in which they live.

We expanded our field of membership to include St. Louis City and St. Charles Coun-ty. We opened two additional locations in Missouri in Crestwood and Ferguson. We also opened a Columbia, Illinois, branch and moved our East Belleville location to a newer two-story building.

We also announced plans for new locations in 2020 in Lebanon, Illinois; inside the new Ball-park Village expansion in downtown St. Louis; in Affton, Missouri; and in Carbondale, Illinois.

Also, in 2019, through our partnership with the St. Louis Blues, we began offering the ex-clusive Blues Checking Account and Debit Card. Additionally, we partnered with KMOV for their Surprise Squad, which helps people who are in need through “surprise” good deeds. The program supports our brand through expanded community involvement.

We also signed an agreement for a new Loan Operating System that will improve our online and digital loan and new account applications.

Our growth is only possible due to the loyalty of our members who choose SCU. We believe that our not-for-profit cooperative structure is the best financial alternative. We continue to offer you lower rates when you borrow money, better rates on your savings, lower fees, and even the recent bonus divi-dend and loan interest rebate. Our coopera-tive structure has allowed us to give over $12 million back to members over the past 12 years. We simply put that money back into members’ accounts.

2019 marked the 28th consecutive year for a bonus dividend and the 13th year we gave a loan interest rebate back to our members. The bonus dividend and loan interest rebate are

examples of the value of your membership. Choos-ing Scott Credit Union is a good financial decision.

We are very pleased to announce that the credit union is financially strong and continues to see growth in deposits and assets.

I would like to share some financials from 2019. We finished the year with capital at $127.0 million, which is 10.01% of assets. SCU remains above the 7.00% regulatory standard that is considered well capitalized.

Our net earnings for 2019 were $8.3 million. Our assets at the end of 2019 were at $1.27 billion. Membership in 2019 increased 1.09% from 2018 to 144,353 members.

Credit unions such as SCU exist to serve their members, including working families, small businesses, and the local community. SCU has contributed approximately $3.4 mil-lion, and its employees have volunteered over 23,700 hours to civic efforts throughout the region in the past 11 years. We are proud to be able to give back to the communities.

In 2019, we were named a St. Louis Post-Dispatch Top Workplace for the eighth straight year. SCU was one of nine recognized for the eighth consecutive year. We believe that employees who enjoy their workplace provide better service to our members.

We are looking to continue our success in 2020 because of our conservative manage-ment and strong financial position. Our success would not be possible without our members. Our success is also made possible by the commitment of our Board of Directors and our staff, who remain dedicated to providing the best value and a great member experience.

We’ll continue to provide members with as much value as possible. That means that every day we will be guided by our members’ best interest. We look forward to a successful 2020!

Thank you,Frank M. PadakPresident & CEO

We’re growing with you.

ANNUAL MEETING REPORT 2019

CHAIRMAN’S LETTER

Growth continues at Scott Credit Union

PRESIDENT’S LETTERON BEHALF OF YOUR Board of Directors,

I am proud to announce that 2019 was an-other successful year for Scott Credit Union.

The credit union paid out $8.5 million in dividends to members in 2019. We shared our success by paying active members a 1.75% Bonus Dividend on shares as well as providing a 1.75% loan interest rebate to our borrowers. The bonus dividend and loan interest rebate, which totaled over $1 million, are examples of the value of mem-bership with Scott Credit Union.

We were again successful in 2019 with continued growth in Scott Credit Union membership. With our growing network of branches and ATMs, as well as our online and mobile offerings, we provided conve-nient products and services to area resi-dents. We again experienced solid deposit growth thanks to the competitive rates we offer. We also are proud to have opened three new branches, moved our East Bel-leville branch, and to have announced plans for four additional branches in 2020.

The commitment of the Board of Directors, management and staff of Scott Credit Union continues to be focused on the fiscal interest of the credit union, the needs of our members, and the welfare of our community. It is our duty and obligation to support the communities in which we live and work.

Because of our success in 2019, we were also able to give support to the com-munities we serve. We contributed over $369,000 to a variety of fundraising efforts, community events, and civic organizations, including activities at Scott Air Force Base. Our employees also volunteered more than 1,900 hours in the community. We are extremely proud of the volunteer efforts of our staff in 2019.

The charitable efforts we supported in 2019 included the American Lung Associ-ation, American Cancer Society, American Heart Association, Backstoppers, Helping Hand Me Downs, Illinois Center for Autism,

National MS Society, Salvation Army, and Special Olympics. We also donated $25,000 to the United Way from the proceeds of the 13th annual Scott Credit Union Community Foun-dation golf tournament.

Additionally, some of our larger civic partnerships included the 126th Air Refuel-ing Wing, 375th Force Support Squadron, Fairview Heights Rec Plex, Gateway Region YMCA, Highland Area Community Foun-dation, Highland Optimist Club, Memorial Hospital in Belleville, Songs for Soldiers, St. Elizabeth’s Hospital in O’Fallon, and St. Joseph’s Hospital in Highland. We were also proud to again financially support many local schools, colleges and universities and community sports teams.

I am also pleased to report that our employees and members once again sup-ported many additional local charities and organizations. During the year, they raised money and donated items for the Muscular Dystrophy Association, United Way, Dogs That Help and various holiday charity cam-paigns throughout our communities.

Employees of SCU also provided finan-cial education to more than 2,400 students from 18 area schools and youth organiza-tions during the last school year. We spon-sored 15 CU4Reality Financial Education Fairs to teach students important money management and budgeting skills. We were also proud to fund $1,000 scholarships for a student at Southwestern Illinois College and Lewis and Clark Community College.

I am proud of Scott Credit Union and look forward to a future of sustained success, growth, and service to our mem-bers. On behalf of the Board of Directors, management and staff, thank you for your continued support.

CMSgt. William P. Hostetter (Ret), Chairman, Board of Directors

www.scu.orgMember Contact Center:

(618) 345-1000 or (800) 888-4SCU (4728)Scott Credit Union is an

Equal Opportunity Employer.

Federally Insured by NCUA

SCOTT CREDIT UNION continued to provide members with a great value, and continued its focus on growth, in another successful year in 2019. Throughout the year, we provided our members a money-saving alternative and supported the communities in which they live.

We expanded our field of membership to include St. Louis City and St. Charles Coun-ty. We opened two additional locations in Missouri in Crestwood and Ferguson. We also opened a Columbia, Illinois, branch and moved our East Belleville location to a newer two-story building.

We also announced plans for new locations in 2020 in Lebanon, Illinois; inside the new Ball-park Village expansion in downtown St. Louis; in Affton, Missouri; and in Carbondale, Illinois.

Also, in 2019, through our partnership with the St. Louis Blues, we began offering the ex-clusive Blues Checking Account and Debit Card. Additionally, we partnered with KMOV for their Surprise Squad, which helps people who are in need through “surprise” good deeds. The program supports our brand through expanded community involvement.

We also signed an agreement for a new Loan Operating System that will improve our online and digital loan and new account applications.

Our growth is only possible due to the loyalty of our members who choose SCU. We believe that our not-for-profit cooperative structure is the best financial alternative. We continue to offer you lower rates when you borrow money, better rates on your savings, lower fees, and even the recent bonus divi-dend and loan interest rebate. Our coopera-tive structure has allowed us to give over $12 million back to members over the past 12 years. We simply put that money back into members’ accounts.

2019 marked the 28th consecutive year for a bonus dividend and the 13th year we gave a loan interest rebate back to our members. The bonus dividend and loan interest rebate are

examples of the value of your membership. Choos-ing Scott Credit Union is a good financial decision.

We are very pleased to announce that the credit union is financially strong and continues to see growth in deposits and assets.

I would like to share some financials from 2019. We finished the year with capital at $127.0 million, which is 10.01% of assets. SCU remains above the 7.00% regulatory standard that is considered well capitalized.

Our net earnings for 2019 were $8.3 million. Our assets at the end of 2019 were at $1.27 billion. Membership in 2019 increased 1.09% from 2018 to 144,353 members.

Credit unions such as SCU exist to serve their members, including working families, small businesses, and the local community. SCU has contributed approximately $3.4 mil-lion, and its employees have volunteered over 23,700 hours to civic efforts throughout the region in the past 11 years. We are proud to be able to give back to the communities.

In 2019, we were named a St. Louis Post-Dispatch Top Workplace for the eighth straight year. SCU was one of nine recognized for the eighth consecutive year. We believe that employees who enjoy their workplace provide better service to our members.

We are looking to continue our success in 2020 because of our conservative manage-ment and strong financial position. Our success would not be possible without our members. Our success is also made possible by the commitment of our Board of Directors and our staff, who remain dedicated to providing the best value and a great member experience.

We’ll continue to provide members with as much value as possible. That means that every day we will be guided by our members’ best interest. We look forward to a successful 2020!

Thank you,Frank M. PadakPresident & CEO

We’re growing with you.

ANNUAL MEETING REPORT 2019

CHAIRMAN’S LETTER

Growth continues at Scott Credit Union

PRESIDENT’S LETTERON BEHALF OF YOUR Board of Directors,

I am proud to announce that 2019 was an-other successful year for Scott Credit Union.

The credit union paid out $8.5 million in dividends to members in 2019. We shared our success by paying active members a 1.75% Bonus Dividend on shares as well as providing a 1.75% loan interest rebate to our borrowers. The bonus dividend and loan interest rebate, which totaled over $1 million, are examples of the value of mem-bership with Scott Credit Union.

We were again successful in 2019 with continued growth in Scott Credit Union membership. With our growing network of branches and ATMs, as well as our online and mobile offerings, we provided conve-nient products and services to area resi-dents. We again experienced solid deposit growth thanks to the competitive rates we offer. We also are proud to have opened three new branches, moved our East Bel-leville branch, and to have announced plans for four additional branches in 2020.

The commitment of the Board of Directors, management and staff of Scott Credit Union continues to be focused on the fiscal interest of the credit union, the needs of our members, and the welfare of our community. It is our duty and obligation to support the communities in which we live and work.

Because of our success in 2019, we were also able to give support to the com-munities we serve. We contributed over $369,000 to a variety of fundraising efforts, community events, and civic organizations, including activities at Scott Air Force Base. Our employees also volunteered more than 1,900 hours in the community. We are extremely proud of the volunteer efforts of our staff in 2019.

The charitable efforts we supported in 2019 included the American Lung Associ-ation, American Cancer Society, American Heart Association, Backstoppers, Helping Hand Me Downs, Illinois Center for Autism,

National MS Society, Salvation Army, and Special Olympics. We also donated $25,000 to the United Way from the proceeds of the 13th annual Scott Credit Union Community Foun-dation golf tournament.

Additionally, some of our larger civic partnerships included the 126th Air Refuel-ing Wing, 375th Force Support Squadron, Fairview Heights Rec Plex, Gateway Region YMCA, Highland Area Community Foun-dation, Highland Optimist Club, Memorial Hospital in Belleville, Songs for Soldiers, St. Elizabeth’s Hospital in O’Fallon, and St. Joseph’s Hospital in Highland. We were also proud to again financially support many local schools, colleges and universities and community sports teams.

I am also pleased to report that our employees and members once again sup-ported many additional local charities and organizations. During the year, they raised money and donated items for the Muscular Dystrophy Association, United Way, Dogs That Help and various holiday charity cam-paigns throughout our communities.

Employees of SCU also provided finan-cial education to more than 2,400 students from 18 area schools and youth organiza-tions during the last school year. We spon-sored 15 CU4Reality Financial Education Fairs to teach students important money management and budgeting skills. We were also proud to fund $1,000 scholarships for a student at Southwestern Illinois College and Lewis and Clark Community College.

I am proud of Scott Credit Union and look forward to a future of sustained success, growth, and service to our mem-bers. On behalf of the Board of Directors, management and staff, thank you for your continued support.

CMSgt. William P. Hostetter (Ret), Chairman, Board of Directors

www.scu.orgMember Contact Center:

(618) 345-1000 or (800) 888-4SCU (4728)Scott Credit Union is an

Equal Opportunity Employer.

Federally Insured by NCUA

SCOTT CREDIT UNION continued to provide members with a great value, and continued its focus on growth, in another successful year in 2019. Throughout the year, we provided our members a money-saving alternative and supported the communities in which they live.

We expanded our field of membership to include St. Louis City and St. Charles Coun-ty. We opened two additional locations in Missouri in Crestwood and Ferguson. We also opened a Columbia, Illinois, branch and moved our East Belleville location to a newer two-story building.

We also announced plans for new locations in 2020 in Lebanon, Illinois; inside the new Ball-park Village expansion in downtown St. Louis; in Affton, Missouri; and in Carbondale, Illinois.

Also, in 2019, through our partnership with the St. Louis Blues, we began offering the ex-clusive Blues Checking Account and Debit Card. Additionally, we partnered with KMOV for their Surprise Squad, which helps people who are in need through “surprise” good deeds. The program supports our brand through expanded community involvement.

We also signed an agreement for a new Loan Operating System that will improve our online and digital loan and new account applications.

Our growth is only possible due to the loyalty of our members who choose SCU. We believe that our not-for-profit cooperative structure is the best financial alternative. We continue to offer you lower rates when you borrow money, better rates on your savings, lower fees, and even the recent bonus divi-dend and loan interest rebate. Our coopera-tive structure has allowed us to give over $12 million back to members over the past 12 years. We simply put that money back into members’ accounts.

2019 marked the 28th consecutive year for a bonus dividend and the 13th year we gave a loan interest rebate back to our members. The bonus dividend and loan interest rebate are

examples of the value of your membership. Choos-ing Scott Credit Union is a good financial decision.

We are very pleased to announce that the credit union is financially strong and continues to see growth in deposits and assets.

I would like to share some financials from 2019. We finished the year with capital at $127.0 million, which is 10.01% of assets. SCU remains above the 7.00% regulatory standard that is considered well capitalized.

Our net earnings for 2019 were $8.3 million. Our assets at the end of 2019 were at $1.27 billion. Membership in 2019 increased 1.09% from 2018 to 144,353 members.

Credit unions such as SCU exist to serve their members, including working families, small businesses, and the local community. SCU has contributed approximately $3.4 mil-lion, and its employees have volunteered over 23,700 hours to civic efforts throughout the region in the past 11 years. We are proud to be able to give back to the communities.

In 2019, we were named a St. Louis Post-Dispatch Top Workplace for the eighth straight year. SCU was one of nine recognized for the eighth consecutive year. We believe that employees who enjoy their workplace provide better service to our members.

We are looking to continue our success in 2020 because of our conservative manage-ment and strong financial position. Our success would not be possible without our members. Our success is also made possible by the commitment of our Board of Directors and our staff, who remain dedicated to providing the best value and a great member experience.

We’ll continue to provide members with as much value as possible. That means that every day we will be guided by our members’ best interest. We look forward to a successful 2020!

Thank you,Frank M. PadakPresident & CEO

We’re growing with you.

ANNUAL MEETING REPORT 2019

CHAIRMAN’S LETTER

FIVE-YEAR PERFORMANCE BALANCE SHEET INCOME STATEMENT LEADERSHIP

2019 2018 2017 2016 2015

Total Assets $1,268,134,426 $1,219,604,280 $1,115,637,231 $1,092,616,184 $1,039,805,974

Total Shares $1,085,495,611 $1,007,247,705 $990,198,985 $980,299,415 $940,355,090

Total Members 144,353 142,796 139,375 135,282 131,800

Dividends Paid $8,538,583 $5,628,145 $4,903,651 $6,194,700 $6,741,502

Loans, Net $976,632,254 $987,700,537 $923,797,970 $841,622,892 $820,647,329

Number of Loans Granted

20,226 24,338 23,792 22,806 22,236

Amount of Loans Granted

$487,167,943 $522,402,644 $512,196,684 $463,618,299 $423,183,002

Number of Loans 81,687 85,349 82,679 80,760 80,236

Gross Income $68,599,112 $64,529,425 $55,502,306 $57,403,807 $52,826,314

Net Interest Margin $30,862,281 $30,531,797 $27,114,871 $17,886,628 $17,930,535

Net Income $8,331,540 $11,761,698 $9,759,876 $8,489,065 $4,635,962

0100200300400500600700800900

1,0001,1001,,2001,300

20192018201720162015

ASSETS(in millions of dollars)

0

100

200

300

400

500

600

700

800

900

1,000

20192018201720162015

NET LOANS(in millions of dollars)

0100200300400500600700800900

1,0001,100

20192018201720162015

SHARES(in millions of dollars)

0102030405060708090

100110120130

20192018201720162015

EQUITY(in millions of dollars)

Home Office101 Credit Union WayEdwardsville, IL 62025

Affton (Coming 2020)9100 Gravois RoadSt. Louis, MO 63123

Ballpark Village (Coming 2020)6 Cardinal Way, Suite 130St. Louis, MO 63102

Carbondale (Coming 2020)601 E. Main St.Carbondale, IL 62901

Collinsville1100 Belt Line RoadCollinsville, IL 62234

Columbia1000 Eleven SouthColumbia, IL 62236

Crestwood9792 Watson Rd.St. Louis, MO 63126

East Belleville2020 N. Belt EastBelleville, IL 62221

Edwardsville1067 S. State Route 157Edwardsville, IL 62025

Fairview Heights555 Lincoln HighwayFairview Heights, IL 62208

Ferguson10797 New Halls Ferry Rd.St. Louis, MO 63136

Highland12455 State Route 143Highland, IL 62249

Ladue8866 Ladue Rd.St. Louis, MO 63124

Lebanon (Coming 2020)101 E. Schuetz St.Lebanon, IL 62254

Mascoutah1248 W. Main StreetMascoutah, IL 62258

O’Fallon712 W. Highway 50O’Fallon, IL 62269

Scott AFB302 W. Winters StreetScott AFB, IL 62225

Troy501 Edwardsville RoadTroy, IL 62294

Waterloo1019 N. Illinois StreetWaterloo, IL 62298

West Belleville4807 W. Main StreetBelleville, IL 62226

Wood River570 Wesley DriveWood River, IL 62095

LOCATIONS

BOARD OF DIRECTORSWilliam P. Hostetter, CMSgt (USAF Ret)Chairman

Lawrence J. HaffnerVice ChairmanJoanne A. CardenSecretaryFrank M. PadakTreasurerMichele R. GehlbachSarah E. HoldenerDeborah LaneChristopher Sobrino

Mark H. Witkowski

ASSOCIATE DIRECTORSJacob S. CurtisJessica L. HaugenJoan E. O’SabenGeorge W. Sconyers

EMERITUS DIRECTORBetty L. Renth

SENIOR MANAGEMENTFrank M. PadakPresident & Chief Executive Officer

Scott A. SeidlExecutive Vice President

Christopher J. BrownerChief Financial Officer

Wendy L. ErhartChief Operating Officer

Eric M. HamChief Information Officer

Adam J. KoishorChief Marketing Officer

Carrie L. O’ConnorChief Lending Officer

Marna J. AsburyVice President of Mortgage Lending

Dale L. BeardVice President of Risk Management

Chris A. DavisVice President of SBA Lending

Ryan GoodwinVice President of Commercial Lending

Alicia K. KallalVice President of Branch Operations

Deanna M. O’NeillVice President of Human Resources

Scott B. PetersVice President of Finance

David J. RothVice President of Lending Systems and Analytics

Operating Expenses72.24%

Dividends & Interest15.61%

Members' Equity12.15%Other Income

28.03%

Investments6.19%

Loans65.79%

2019Sources

of Income

ASSETS 2019 2018

Cash & cash equivalents $ 17,876 $ 16,427

Investments

Equity Securities 910 -

Trading 1,400 -

Available-for-sale 66,818 22,361

Held-to-maturity 1,658 8,123

Other 130,552 116,586

Federal Home Loan Bank (FHLB) stock 1,200 1,600

Loans held-for-sale 2,733 1,812

Loans receivable, net allowance for loan losses 976,632 987,701

Accrued interest receivable 2,751 2,855

Premises and equipment, net 33,832 31,478

National Credit Union Share Insurance Fund deposit 10,197 9,840

Other Assets 21,575 20,821

TOTAL ASSETS $ 1,268,134 $ 1,219,604

LIABILITIES & MEMBERS’ EQUITY 2019 2018

Liabilities

Members’ share and savings accounts $ 1,085,496 $ 1,007,248

Borrowing 40,000 80,000

Interest payable 800 615

Accrued expenses and other liabilities 14,603 13,545

Total liabilities 1,140,899 1,101,408

Members’ Equity

Regular reserve 14,229 14,229

Undivided earnings 112,753 104,421

Accumulated other comprehensive loss 253 (454)

Total members’ equity 127,235 118,196

TOTAL LIABILITIES & MEMBERS’ EQUITY $ 1,268,134 $ 1,219,604

(Dollars in thousands)

2019 2018

Interest Income

Interest on loans receivable $ 45,129 $ 42,410

Interest on investments 4,243 3,073

Interest income 49,372 45,483

Interest Expense

Dividends on members’ share & savings accounts 8,539 5,628

Interest on borrowed funds 2,171 1,823

Interest expense 10,710 7,451

Net Interest Income 38,662 38,032

Provision for Loan Losses 7,800 7,500

Net Interest Income After Provision for Loan Losses 30,862 30,532

Non-Interest Income

Service charges 9,395 8,959

Card income 7,523 6,875

Insurance commission income 1,284 1,227

Other miscellaneous income 1,024 1,986

Gain on disposition of premises & equipment, net 53 -

Non-interest income 19,279 19,047

50,141 49,579

Non-Interest Expense

Compensation and employee benefits 20,156 18,133

Operations 11,769 11,238

Occupancy 3,534 2,683

Loan servicing 2,882 2,862

Education and promotion 2,607 2,042

Professional and outside services 861 829

Loss on disposition of assets acquired in liquidation, net - 30

Non-interest expense 41,809 37,817

NET INCOME $ 8,332 $ 11,762

(Dollars in thousands)

2019Distribution of Income

FIVE-YEAR PERFORMANCE BALANCE SHEET INCOME STATEMENT LEADERSHIP

2019 2018 2017 2016 2015

Total Assets $1,268,134,426 $1,219,604,280 $1,115,637,231 $1,092,616,184 $1,039,805,974

Total Shares $1,085,495,611 $1,007,247,705 $990,198,985 $980,299,415 $940,355,090

Total Members 144,353 142,796 139,375 135,282 131,800

Dividends Paid $8,538,583 $5,628,145 $4,903,651 $6,194,700 $6,741,502

Loans, Net $976,632,254 $987,700,537 $923,797,970 $841,622,892 $820,647,329

Number of Loans Granted

20,226 24,338 23,792 22,806 22,236

Amount of Loans Granted

$487,167,943 $522,402,644 $512,196,684 $463,618,299 $423,183,002

Number of Loans 81,687 85,349 82,679 80,760 80,236

Gross Income $68,599,112 $64,529,425 $55,502,306 $57,403,807 $52,826,314

Net Interest Margin $30,862,281 $30,531,797 $27,114,871 $17,886,628 $17,930,535

Net Income $8,331,540 $11,761,698 $9,759,876 $8,489,065 $4,635,962

0100200300400500600700800900

1,0001,1001,,2001,300

20192018201720162015

ASSETS(in millions of dollars)

0

100

200

300

400

500

600

700

800

900

1,000

20192018201720162015

NET LOANS(in millions of dollars)

0100200300400500600700800900

1,0001,100

20192018201720162015

SHARES(in millions of dollars)

0102030405060708090

100110120130

20192018201720162015

EQUITY(in millions of dollars)

Home Office101 Credit Union WayEdwardsville, IL 62025

Affton (Coming 2020)9100 Gravois RoadSt. Louis, MO 63123

Ballpark Village (Coming 2020)6 Cardinal Way, Suite 130St. Louis, MO 63102

Carbondale (Coming 2020)601 E. Main St.Carbondale, IL 62901

Collinsville1100 Belt Line RoadCollinsville, IL 62234

Columbia1000 Eleven SouthColumbia, IL 62236

Crestwood9792 Watson Rd.St. Louis, MO 63126

East Belleville2020 N. Belt EastBelleville, IL 62221

Edwardsville1067 S. State Route 157Edwardsville, IL 62025

Fairview Heights555 Lincoln HighwayFairview Heights, IL 62208

Ferguson10797 New Halls Ferry Rd.St. Louis, MO 63136

Highland12455 State Route 143Highland, IL 62249

Ladue8866 Ladue Rd.St. Louis, MO 63124

Lebanon (Coming 2020)101 E. Schuetz St.Lebanon, IL 62254

Mascoutah1248 W. Main StreetMascoutah, IL 62258

O’Fallon712 W. Highway 50O’Fallon, IL 62269

Scott AFB302 W. Winters StreetScott AFB, IL 62225

Troy501 Edwardsville RoadTroy, IL 62294

Waterloo1019 N. Illinois StreetWaterloo, IL 62298

West Belleville4807 W. Main StreetBelleville, IL 62226

Wood River570 Wesley DriveWood River, IL 62095

LOCATIONS

BOARD OF DIRECTORSWilliam P. Hostetter, CMSgt (USAF Ret)Chairman

Lawrence J. HaffnerVice ChairmanJoanne A. CardenSecretaryFrank M. PadakTreasurerMichele R. GehlbachSarah E. HoldenerDeborah LaneChristopher Sobrino

Mark H. Witkowski

ASSOCIATE DIRECTORSJacob S. CurtisJessica L. HaugenJoan E. O’SabenGeorge W. Sconyers

EMERITUS DIRECTORBetty L. Renth

SENIOR MANAGEMENTFrank M. PadakPresident & Chief Executive Officer

Scott A. SeidlExecutive Vice President

Christopher J. BrownerChief Financial Officer

Wendy L. ErhartChief Operating Officer

Eric M. HamChief Information Officer

Adam J. KoishorChief Marketing Officer

Carrie L. O’ConnorChief Lending Officer

Marna J. AsburyVice President of Mortgage Lending

Dale L. BeardVice President of Risk Management

Chris A. DavisVice President of SBA Lending

Ryan GoodwinVice President of Commercial Lending

Alicia K. KallalVice President of Branch Operations

Deanna M. O’NeillVice President of Human Resources

Scott B. PetersVice President of Finance

David J. RothVice President of Lending Systems and Analytics

Operating Expenses72.24%

Dividends & Interest15.61%

Members' Equity12.15%Other Income

28.03%

Investments6.19%

Loans65.79%

2019Sources

of Income

ASSETS 2019 2018

Cash & cash equivalents $ 17,876 $ 16,427

Investments

Equity Securities 910 -

Trading 1,400 -

Available-for-sale 66,818 22,361

Held-to-maturity 1,658 8,123

Other 130,552 116,586

Federal Home Loan Bank (FHLB) stock 1,200 1,600

Loans held-for-sale 2,733 1,812

Loans receivable, net allowance for loan losses 976,632 987,701

Accrued interest receivable 2,751 2,855

Premises and equipment, net 33,832 31,478

National Credit Union Share Insurance Fund deposit 10,197 9,840

Other Assets 21,575 20,821

TOTAL ASSETS $ 1,268,134 $ 1,219,604

LIABILITIES & MEMBERS’ EQUITY 2019 2018

Liabilities

Members’ share and savings accounts $ 1,085,496 $ 1,007,248

Borrowing 40,000 80,000

Interest payable 800 615

Accrued expenses and other liabilities 14,603 13,545

Total liabilities 1,140,899 1,101,408

Members’ Equity

Regular reserve 14,229 14,229

Undivided earnings 112,753 104,421

Accumulated other comprehensive loss 253 (454)

Total members’ equity 127,235 118,196

TOTAL LIABILITIES & MEMBERS’ EQUITY $ 1,268,134 $ 1,219,604

(Dollars in thousands)

2019 2018

Interest Income

Interest on loans receivable $ 45,129 $ 42,410

Interest on investments 4,243 3,073

Interest income 49,372 45,483

Interest Expense

Dividends on members’ share & savings accounts 8,539 5,628

Interest on borrowed funds 2,171 1,823

Interest expense 10,710 7,451

Net Interest Income 38,662 38,032

Provision for Loan Losses 7,800 7,500

Net Interest Income After Provision for Loan Losses 30,862 30,532

Non-Interest Income

Service charges 9,395 8,959

Card income 7,523 6,875

Insurance commission income 1,284 1,227

Other miscellaneous income 1,024 1,986

Gain on disposition of premises & equipment, net 53 -

Non-interest income 19,279 19,047

50,141 49,579

Non-Interest Expense

Compensation and employee benefits 20,156 18,133

Operations 11,769 11,238

Occupancy 3,534 2,683

Loan servicing 2,882 2,862

Education and promotion 2,607 2,042

Professional and outside services 861 829

Loss on disposition of assets acquired in liquidation, net - 30

Non-interest expense 41,809 37,817

NET INCOME $ 8,332 $ 11,762

(Dollars in thousands)

2019Distribution of Income

FIVE-YEAR PERFORMANCE BALANCE SHEET INCOME STATEMENT LEADERSHIP

2019 2018 2017 2016 2015

Total Assets $1,268,134,426 $1,219,604,280 $1,115,637,231 $1,092,616,184 $1,039,805,974

Total Shares $1,085,495,611 $1,007,247,705 $990,198,985 $980,299,415 $940,355,090

Total Members 144,353 142,796 139,375 135,282 131,800

Dividends Paid $8,538,583 $5,628,145 $4,903,651 $6,194,700 $6,741,502

Loans, Net $976,632,254 $987,700,537 $923,797,970 $841,622,892 $820,647,329

Number of Loans Granted

20,226 24,338 23,792 22,806 22,236

Amount of Loans Granted

$487,167,943 $522,402,644 $512,196,684 $463,618,299 $423,183,002

Number of Loans 81,687 85,349 82,679 80,760 80,236

Gross Income $68,599,112 $64,529,425 $55,502,306 $57,403,807 $52,826,314

Net Interest Margin $30,862,281 $30,531,797 $27,114,871 $17,886,628 $17,930,535

Net Income $8,331,540 $11,761,698 $9,759,876 $8,489,065 $4,635,962

0100200300400500600700800900

1,0001,1001,,2001,300

20192018201720162015

ASSETS(in millions of dollars)

0

100

200

300

400

500

600

700

800

900

1,000

20192018201720162015

NET LOANS(in millions of dollars)

0100200300400500600700800900

1,0001,100

20192018201720162015

SHARES(in millions of dollars)

0102030405060708090

100110120130

20192018201720162015

EQUITY(in millions of dollars)

Home Office101 Credit Union WayEdwardsville, IL 62025

Affton (Coming 2020)9100 Gravois RoadSt. Louis, MO 63123

Ballpark Village (Coming 2020)6 Cardinal Way, Suite 130St. Louis, MO 63102

Carbondale (Coming 2020)601 E. Main St.Carbondale, IL 62901

Collinsville1100 Belt Line RoadCollinsville, IL 62234

Columbia1000 Eleven SouthColumbia, IL 62236

Crestwood9792 Watson Rd.St. Louis, MO 63126

East Belleville2020 N. Belt EastBelleville, IL 62221

Edwardsville1067 S. State Route 157Edwardsville, IL 62025

Fairview Heights555 Lincoln HighwayFairview Heights, IL 62208

Ferguson10797 New Halls Ferry Rd.St. Louis, MO 63136

Highland12455 State Route 143Highland, IL 62249

Ladue8866 Ladue Rd.St. Louis, MO 63124

Lebanon (Coming 2020)101 E. Schuetz St.Lebanon, IL 62254

Mascoutah1248 W. Main StreetMascoutah, IL 62258

O’Fallon712 W. Highway 50O’Fallon, IL 62269

Scott AFB302 W. Winters StreetScott AFB, IL 62225

Troy501 Edwardsville RoadTroy, IL 62294

Waterloo1019 N. Illinois StreetWaterloo, IL 62298

West Belleville4807 W. Main StreetBelleville, IL 62226

Wood River570 Wesley DriveWood River, IL 62095

LOCATIONS

BOARD OF DIRECTORSWilliam P. Hostetter, CMSgt (USAF Ret)Chairman

Lawrence J. HaffnerVice ChairmanJoanne A. CardenSecretaryFrank M. PadakTreasurerMichele R. GehlbachSarah E. HoldenerDeborah LaneChristopher Sobrino

Mark H. Witkowski

ASSOCIATE DIRECTORSJacob S. CurtisJessica L. HaugenJoan E. O’SabenGeorge W. Sconyers

EMERITUS DIRECTORBetty L. Renth

SENIOR MANAGEMENTFrank M. PadakPresident & Chief Executive Officer

Scott A. SeidlExecutive Vice President

Christopher J. BrownerChief Financial Officer

Wendy L. ErhartChief Operating Officer

Eric M. HamChief Information Officer

Adam J. KoishorChief Marketing Officer

Carrie L. O’ConnorChief Lending Officer

Marna J. AsburyVice President of Mortgage Lending

Dale L. BeardVice President of Risk Management

Chris A. DavisVice President of SBA Lending

Ryan GoodwinVice President of Commercial Lending

Alicia K. KallalVice President of Branch Operations

Deanna M. O’NeillVice President of Human Resources

Scott B. PetersVice President of Finance

David J. RothVice President of Lending Systems and Analytics

Operating Expenses72.24%

Dividends & Interest15.61%

Members' Equity12.15%Other Income

28.03%

Investments6.19%

Loans65.79%

2019Sources

of Income

ASSETS 2019 2018

Cash & cash equivalents $ 17,876 $ 16,427

Investments

Equity Securities 910 -

Trading 1,400 -

Available-for-sale 66,818 22,361

Held-to-maturity 1,658 8,123

Other 130,552 116,586

Federal Home Loan Bank (FHLB) stock 1,200 1,600

Loans held-for-sale 2,733 1,812

Loans receivable, net allowance for loan losses 976,632 987,701

Accrued interest receivable 2,751 2,855

Premises and equipment, net 33,832 31,478

National Credit Union Share Insurance Fund deposit 10,197 9,840

Other Assets 21,575 20,821

TOTAL ASSETS $ 1,268,134 $ 1,219,604

LIABILITIES & MEMBERS’ EQUITY 2019 2018

Liabilities

Members’ share and savings accounts $ 1,085,496 $ 1,007,248

Borrowing 40,000 80,000

Interest payable 800 615

Accrued expenses and other liabilities 14,603 13,545

Total liabilities 1,140,899 1,101,408

Members’ Equity

Regular reserve 14,229 14,229

Undivided earnings 112,753 104,421

Accumulated other comprehensive loss 253 (454)

Total members’ equity 127,235 118,196

TOTAL LIABILITIES & MEMBERS’ EQUITY $ 1,268,134 $ 1,219,604

(Dollars in thousands)

2019 2018

Interest Income

Interest on loans receivable $ 45,129 $ 42,410

Interest on investments 4,243 3,073

Interest income 49,372 45,483

Interest Expense

Dividends on members’ share & savings accounts 8,539 5,628

Interest on borrowed funds 2,171 1,823

Interest expense 10,710 7,451

Net Interest Income 38,662 38,032

Provision for Loan Losses 7,800 7,500

Net Interest Income After Provision for Loan Losses 30,862 30,532

Non-Interest Income

Service charges 9,395 8,959

Card income 7,523 6,875

Insurance commission income 1,284 1,227

Other miscellaneous income 1,024 1,986

Gain on disposition of premises & equipment, net 53 -

Non-interest income 19,279 19,047

50,141 49,579

Non-Interest Expense

Compensation and employee benefits 20,156 18,133

Operations 11,769 11,238

Occupancy 3,534 2,683

Loan servicing 2,882 2,862

Education and promotion 2,607 2,042

Professional and outside services 861 829

Loss on disposition of assets acquired in liquidation, net - 30

Non-interest expense 41,809 37,817

NET INCOME $ 8,332 $ 11,762

(Dollars in thousands)

2019Distribution of Income

FIVE-YEAR PERFORMANCE BALANCE SHEET INCOME STATEMENT LEADERSHIP

2019 2018 2017 2016 2015

Total Assets $1,268,134,426 $1,219,604,280 $1,115,637,231 $1,092,616,184 $1,039,805,974

Total Shares $1,085,495,611 $1,007,247,705 $990,198,985 $980,299,415 $940,355,090

Total Members 144,353 142,796 139,375 135,282 131,800

Dividends Paid $8,538,583 $5,628,145 $4,903,651 $6,194,700 $6,741,502

Loans, Net $976,632,254 $987,700,537 $923,797,970 $841,622,892 $820,647,329

Number of Loans Granted

20,226 24,338 23,792 22,806 22,236

Amount of Loans Granted

$487,167,943 $522,402,644 $512,196,684 $463,618,299 $423,183,002

Number of Loans 81,687 85,349 82,679 80,760 80,236

Gross Income $68,599,112 $64,529,425 $55,502,306 $57,403,807 $52,826,314

Net Interest Margin $30,862,281 $30,531,797 $27,114,871 $17,886,628 $17,930,535

Net Income $8,331,540 $11,761,698 $9,759,876 $8,489,065 $4,635,962

0100200300400500600700800900

1,0001,1001,,2001,300

20192018201720162015

ASSETS(in millions of dollars)

0

100

200

300

400

500

600

700

800

900

1,000

20192018201720162015

NET LOANS(in millions of dollars)

0100200300400500600700800900

1,0001,100

20192018201720162015

SHARES(in millions of dollars)

0102030405060708090

100110120130

20192018201720162015

EQUITY(in millions of dollars)

Home Office101 Credit Union WayEdwardsville, IL 62025

Affton (Coming 2020)9100 Gravois RoadSt. Louis, MO 63123

Ballpark Village (Coming 2020)6 Cardinal Way, Suite 130St. Louis, MO 63102

Carbondale (Coming 2020)601 E. Main St.Carbondale, IL 62901

Collinsville1100 Belt Line RoadCollinsville, IL 62234

Columbia1000 Eleven SouthColumbia, IL 62236

Crestwood9792 Watson Rd.St. Louis, MO 63126

East Belleville2020 N. Belt EastBelleville, IL 62221

Edwardsville1067 S. State Route 157Edwardsville, IL 62025

Fairview Heights555 Lincoln HighwayFairview Heights, IL 62208

Ferguson10797 New Halls Ferry Rd.St. Louis, MO 63136

Highland12455 State Route 143Highland, IL 62249

Ladue8866 Ladue Rd.St. Louis, MO 63124

Lebanon (Coming 2020)101 E. Schuetz St.Lebanon, IL 62254

Mascoutah1248 W. Main StreetMascoutah, IL 62258

O’Fallon712 W. Highway 50O’Fallon, IL 62269

Scott AFB302 W. Winters StreetScott AFB, IL 62225

Troy501 Edwardsville RoadTroy, IL 62294

Waterloo1019 N. Illinois StreetWaterloo, IL 62298

West Belleville4807 W. Main StreetBelleville, IL 62226

Wood River570 Wesley DriveWood River, IL 62095

LOCATIONS

BOARD OF DIRECTORSWilliam P. Hostetter, CMSgt (USAF Ret)Chairman

Lawrence J. HaffnerVice ChairmanJoanne A. CardenSecretaryFrank M. PadakTreasurerMichele R. GehlbachSarah E. HoldenerDeborah LaneChristopher Sobrino

Mark H. Witkowski

ASSOCIATE DIRECTORSJacob S. CurtisJessica L. HaugenJoan E. O’SabenGeorge W. Sconyers

EMERITUS DIRECTORBetty L. Renth

SENIOR MANAGEMENTFrank M. PadakPresident & Chief Executive Officer

Scott A. SeidlExecutive Vice President

Christopher J. BrownerChief Financial Officer

Wendy L. ErhartChief Operating Officer

Eric M. HamChief Information Officer

Adam J. KoishorChief Marketing Officer

Carrie L. O’ConnorChief Lending Officer

Marna J. AsburyVice President of Mortgage Lending

Dale L. BeardVice President of Risk Management

Chris A. DavisVice President of SBA Lending

Ryan GoodwinVice President of Commercial Lending

Alicia K. KallalVice President of Branch Operations

Deanna M. O’NeillVice President of Human Resources

Scott B. PetersVice President of Finance

David J. RothVice President of Lending Systems and Analytics

Operating Expenses72.24%

Dividends & Interest15.61%

Members' Equity12.15%Other Income

28.03%

Investments6.19%

Loans65.79%

2019Sources

of Income

ASSETS 2019 2018

Cash & cash equivalents $ 17,876 $ 16,427

Investments

Equity Securities 910 -

Trading 1,400 -

Available-for-sale 66,818 22,361

Held-to-maturity 1,658 8,123

Other 130,552 116,586

Federal Home Loan Bank (FHLB) stock 1,200 1,600

Loans held-for-sale 2,733 1,812

Loans receivable, net allowance for loan losses 976,632 987,701

Accrued interest receivable 2,751 2,855

Premises and equipment, net 33,832 31,478

National Credit Union Share Insurance Fund deposit 10,197 9,840

Other Assets 21,575 20,821

TOTAL ASSETS $ 1,268,134 $ 1,219,604

LIABILITIES & MEMBERS’ EQUITY 2019 2018

Liabilities

Members’ share and savings accounts $ 1,085,496 $ 1,007,248

Borrowing 40,000 80,000

Interest payable 800 615

Accrued expenses and other liabilities 14,603 13,545

Total liabilities 1,140,899 1,101,408

Members’ Equity

Regular reserve 14,229 14,229

Undivided earnings 112,753 104,421

Accumulated other comprehensive loss 253 (454)

Total members’ equity 127,235 118,196

TOTAL LIABILITIES & MEMBERS’ EQUITY $ 1,268,134 $ 1,219,604

(Dollars in thousands)

2019 2018

Interest Income

Interest on loans receivable $ 45,129 $ 42,410

Interest on investments 4,243 3,073

Interest income 49,372 45,483

Interest Expense

Dividends on members’ share & savings accounts 8,539 5,628

Interest on borrowed funds 2,171 1,823

Interest expense 10,710 7,451

Net Interest Income 38,662 38,032

Provision for Loan Losses 7,800 7,500

Net Interest Income After Provision for Loan Losses 30,862 30,532

Non-Interest Income

Service charges 9,395 8,959

Card income 7,523 6,875

Insurance commission income 1,284 1,227

Other miscellaneous income 1,024 1,986

Gain on disposition of premises & equipment, net 53 -

Non-interest income 19,279 19,047

50,141 49,579

Non-Interest Expense

Compensation and employee benefits 20,156 18,133

Operations 11,769 11,238

Occupancy 3,534 2,683

Loan servicing 2,882 2,862

Education and promotion 2,607 2,042

Professional and outside services 861 829

Loss on disposition of assets acquired in liquidation, net - 30

Non-interest expense 41,809 37,817

NET INCOME $ 8,332 $ 11,762

(Dollars in thousands)

2019Distribution of Income

Growth continues at Scott Credit Union

PRESIDENT’S LETTERON BEHALF OF YOUR Board of Directors,

I am proud to announce that 2019 was an-other successful year for Scott Credit Union.

The credit union paid out $8.5 million in dividends to members in 2019. We shared our success by paying active members a 1.75% Bonus Dividend on shares as well as providing a 1.75% loan interest rebate to our borrowers. The bonus dividend and loan interest rebate, which totaled over $1 million, are examples of the value of mem-bership with Scott Credit Union.

We were again successful in 2019 with continued growth in Scott Credit Union membership. With our growing network of branches and ATMs, as well as our online and mobile offerings, we provided conve-nient products and services to area resi-dents. We again experienced solid deposit growth thanks to the competitive rates we offer. We also are proud to have opened three new branches, moved our East Bel-leville branch, and to have announced plans for four additional branches in 2020.

The commitment of the Board of Directors, management and staff of Scott Credit Union continues to be focused on the fiscal interest of the credit union, the needs of our members, and the welfare of our community. It is our duty and obligation to support the communities in which we live and work.

Because of our success in 2019, we were also able to give support to the com-munities we serve. We contributed over $369,000 to a variety of fundraising efforts, community events, and civic organizations, including activities at Scott Air Force Base. Our employees also volunteered more than 1,900 hours in the community. We are extremely proud of the volunteer efforts of our staff in 2019.

The charitable efforts we supported in 2019 included the American Lung Associ-ation, American Cancer Society, American Heart Association, Backstoppers, Helping Hand Me Downs, Illinois Center for Autism,

National MS Society, Salvation Army, and Special Olympics. We also donated $25,000 to the United Way from the proceeds of the 13th annual Scott Credit Union Community Foun-dation golf tournament.

Additionally, some of our larger civic partnerships included the 126th Air Refuel-ing Wing, 375th Force Support Squadron, Fairview Heights Rec Plex, Gateway Region YMCA, Highland Area Community Foun-dation, Highland Optimist Club, Memorial Hospital in Belleville, Songs for Soldiers, St. Elizabeth’s Hospital in O’Fallon, and St. Joseph’s Hospital in Highland. We were also proud to again financially support many local schools, colleges and universities and community sports teams.

I am also pleased to report that our employees and members once again sup-ported many additional local charities and organizations. During the year, they raised money and donated items for the Muscular Dystrophy Association, United Way, Dogs That Help and various holiday charity cam-paigns throughout our communities.

Employees of SCU also provided finan-cial education to more than 2,400 students from 18 area schools and youth organiza-tions during the last school year. We spon-sored 15 CU4Reality Financial Education Fairs to teach students important money management and budgeting skills. We were also proud to fund $1,000 scholarships for a student at Southwestern Illinois College and Lewis and Clark Community College.

I am proud of Scott Credit Union and look forward to a future of sustained success, growth, and service to our mem-bers. On behalf of the Board of Directors, management and staff, thank you for your continued support.

CMSgt. William P. Hostetter (Ret), Chairman, Board of Directors

www.scu.orgMember Contact Center:

(618) 345-1000 or (800) 888-4SCU (4728)Scott Credit Union is an

Equal Opportunity Employer.

Federally Insured by NCUA

SCOTT CREDIT UNION continued to provide members with a great value, and continued its focus on growth, in another successful year in 2019. Throughout the year, we provided our members a money-saving alternative and supported the communities in which they live.

We expanded our field of membership to include St. Louis City and St. Charles Coun-ty. We opened two additional locations in Missouri in Crestwood and Ferguson. We also opened a Columbia, Illinois, branch and moved our East Belleville location to a newer two-story building.

We also announced plans for new locations in 2020 in Lebanon, Illinois; inside the new Ball-park Village expansion in downtown St. Louis; in Affton, Missouri; and in Carbondale, Illinois.

Also, in 2019, through our partnership with the St. Louis Blues, we began offering the ex-clusive Blues Checking Account and Debit Card. Additionally, we partnered with KMOV for their Surprise Squad, which helps people who are in need through “surprise” good deeds. The program supports our brand through expanded community involvement.

We also signed an agreement for a new Loan Operating System that will improve our online and digital loan and new account applications.

Our growth is only possible due to the loyalty of our members who choose SCU. We believe that our not-for-profit cooperative structure is the best financial alternative. We continue to offer you lower rates when you borrow money, better rates on your savings, lower fees, and even the recent bonus divi-dend and loan interest rebate. Our coopera-tive structure has allowed us to give over $12 million back to members over the past 12 years. We simply put that money back into members’ accounts.

2019 marked the 28th consecutive year for a bonus dividend and the 13th year we gave a loan interest rebate back to our members. The bonus dividend and loan interest rebate are

examples of the value of your membership. Choos-ing Scott Credit Union is a good financial decision.

We are very pleased to announce that the credit union is financially strong and continues to see growth in deposits and assets.

I would like to share some financials from 2019. We finished the year with capital at $127.0 million, which is 10.01% of assets. SCU remains above the 7.00% regulatory standard that is considered well capitalized.

Our net earnings for 2019 were $8.3 million. Our assets at the end of 2019 were at $1.27 billion. Membership in 2019 increased 1.09% from 2018 to 144,353 members.

Credit unions such as SCU exist to serve their members, including working families, small businesses, and the local community. SCU has contributed approximately $3.4 mil-lion, and its employees have volunteered over 23,700 hours to civic efforts throughout the region in the past 11 years. We are proud to be able to give back to the communities.

In 2019, we were named a St. Louis Post-Dispatch Top Workplace for the eighth straight year. SCU was one of nine recognized for the eighth consecutive year. We believe that employees who enjoy their workplace provide better service to our members.

We are looking to continue our success in 2020 because of our conservative manage-ment and strong financial position. Our success would not be possible without our members. Our success is also made possible by the commitment of our Board of Directors and our staff, who remain dedicated to providing the best value and a great member experience.

We’ll continue to provide members with as much value as possible. That means that every day we will be guided by our members’ best interest. We look forward to a successful 2020!

Thank you,Frank M. PadakPresident & CEO

We’re growing with you.

ANNUAL MEETING REPORT 2019

CHAIRMAN’S LETTER