BANKING. CHAIRMAN S MESSAGE PRESIDENT S MESSAGE. Paso Robles. Atascadero. San Luis Obispo. Arroyo Grande. Santa Maria 2506 South Broadway

Transcription

1 PRESIDENT S MESSAGE We saw robust lending growth in, and ended the year with a record annual increase in loan volume. SESLOC granted over $129 million in total loans to members, which also represents an investment in the local economy, where our members are purchasing homes and vehicles. Our loan growth resulted from several lending enhancements. First, members embraced the convenience of applying for a loan at the same place they purchase their vehicles. Lending at the car dealerships became our fastest growing loan channel in. In June, our new online application simplified the loan application and approval process for all consumer loans. We also expanded business loan products to better serve members who own business properties. Lastly, we expanded our real estate loan offerings, including a low down payment option, and placed real estate loan officers in the branches for convenient appointments and easy drop-in chats. This year s dramatic increase in loans provided a boost to income, which was also enhanced by the sale of the former headquarters on Los Osos Valley Road. This growth provides the foundation for technology enhancements, along with expanded facilities and services this coming year. This was also the year of expanding financial education opportunities. We believe that financial success and wellness is within each member s reach; and we believe that knowledge is the foundation for that success. This year over 4 people participated in nine free seminars on a wide range of financial topics, such as Home Buying, Social Security, and Relief from the Burden of Debt. We will expand the number of seminars and locations in 216. B R A N C H LO C AT I O N S Paso Robles 75 Golden Hill Road Atascadero 838 El Camino Real San Luis Obispo 387 Broad Street Monday Saturday: 9 am 1pm Arroyo Grande 1399 East Grand Avenue Santa Maria 256 South Broadway H E A D Q UA RT E R S 3855 Broad Street, San Luis Obispo M A I L I N G A D D R E SS P.O. Box 536 San Luis Obispo, CA Our deep commitment to education also continued through our collaboration with the FoolProof consumer education group and through expanded Education Grants to local teachers. FoolProof provides unbiased, unsponsored online financial education, including online modules for high school teachers classroom use President/CEO ONLY BETTER. was a milestone year for SESLOC Federal Credit Union. Continuing bank mergers and consolidations served to highlight our credit union s unique position in the community. As a locally owned institution with a 74-year history of strength and stability, we ve gained the trust and confidence of Central Coast residents. Our charter expansion and new Santa Maria Branch, which opened in early 216, further strengthens our service to local communities. Local confidence contributed to several milestones this year. We saw an extraordinary 9% growth in membership, ending the year with more than 42, members. In addition, assets topped $7 million and net worth topped 9%. Strong leadership from an outstanding management team and a committed staff created the environment for this exceptional performance. This year we coined the phrase Banking. Only Better. While a credit union is certainly a place to do your banking, as a not-for-profit institution, we are guided by rules and principles that are unique to credit unions. This means that Credit Union income and growth are not fueled by fees or sales quotas, but rather by investing in loans to members for personal and business purposes. This means you can trust SESLOC to have your best interests at heart. SESLOC may not always get your business, or earn as much as it might if we sold you on something you really didn t need; we d rather earn your confidence and trust. As we enter the new year, we are looking forward to an exciting 216, with new locations in Paso Robles and Santa Maria, continued investments in technology and security, and an increased commitment to financial education. Above all, we re committed to ensuring the safety and soundness of our credit union for all members. Dr. Vic Buccola Thank you for your ongoing support. We look forward to another year of solid performance in 216. Geri LaChance CHAIRMAN S MESSAGE of the Board S ES LO C.ORG Savings are federally insured to at least $25, and backed by the full faith and credit of the U.S. Government. National Credit Union Administration, a U.S. government agency. BANKING.

2 PRESIDENT S MESSAGE We saw robust lending growth in, and ended the year with a record annual increase in loan volume. SESLOC granted over $129 million in total loans to members, which also represents an investment in the local economy, where our members are purchasing homes and vehicles. Our loan growth resulted from several lending enhancements. First, members embraced the convenience of applying for a loan at the same place they purchase their vehicles. Lending at the car dealerships became our fastest growing loan channel in. In June, our new online application simplified the loan application and approval process for all consumer loans. We also expanded business loan products to better serve members who own business properties. Lastly, we expanded our real estate loan offerings, including a low down payment option, and placed real estate loan officers in the branches for convenient appointments and easy drop-in chats. This year s dramatic increase in loans provided a boost to income, which was also enhanced by the sale of the former headquarters on Los Osos Valley Road. This growth provides the foundation for technology enhancements, along with expanded facilities and services this coming year. This was also the year of expanding financial education opportunities. We believe that financial success and wellness is within each member s reach; and we believe that knowledge is the foundation for that success. This year over 4 people participated in nine free seminars on a wide range of financial topics, such as Home Buying, Social Security, and Relief from the Burden of Debt. We will expand the number of seminars and locations in 216. B R A N C H LO C AT I O N S Paso Robles 75 Golden Hill Road Atascadero 838 El Camino Real San Luis Obispo 387 Broad Street Monday Saturday: 9 am 1pm Arroyo Grande 1399 East Grand Avenue Santa Maria 256 South Broadway H E A D Q UA RT E R S 3855 Broad Street, San Luis Obispo M A I L I N G A D D R E SS P.O. Box 536 San Luis Obispo, CA Our deep commitment to education also continued through our collaboration with the FoolProof consumer education group and through expanded Education Grants to local teachers. FoolProof provides unbiased, unsponsored online financial education, including online modules for high school teachers classroom use President/CEO ONLY BETTER. was a milestone year for SESLOC Federal Credit Union. Continuing bank mergers and consolidations served to highlight our credit union s unique position in the community. As a locally owned institution with a 74-year history of strength and stability, we ve gained the trust and confidence of Central Coast residents. Our charter expansion and new Santa Maria Branch, which opened in early 216, further strengthens our service to local communities. Local confidence contributed to several milestones this year. We saw an extraordinary 9% growth in membership, ending the year with more than 42, members. In addition, assets topped $7 million and net worth topped 9%. Strong leadership from an outstanding management team and a committed staff created the environment for this exceptional performance. This year we coined the phrase Banking. Only Better. While a credit union is certainly a place to do your banking, as a not-for-profit institution, we are guided by rules and principles that are unique to credit unions. This means that Credit Union income and growth are not fueled by fees or sales quotas, but rather by investing in loans to members for personal and business purposes. This means you can trust SESLOC to have your best interests at heart. SESLOC may not always get your business, or earn as much as it might if we sold you on something you really didn t need; we d rather earn your confidence and trust. As we enter the new year, we are looking forward to an exciting 216, with new locations in Paso Robles and Santa Maria, continued investments in technology and security, and an increased commitment to financial education. Above all, we re committed to ensuring the safety and soundness of our credit union for all members. Dr. Vic Buccola Thank you for your ongoing support. We look forward to another year of solid performance in 216. Geri LaChance CHAIRMAN S MESSAGE of the Board S ES LO C.ORG Savings are federally insured to at least $25, and backed by the full faith and credit of the U.S. Government. National Credit Union Administration, a U.S. government agency. BANKING.

3 PRESIDENT S MESSAGE We saw robust lending growth in, and ended the year with a record annual increase in loan volume. SESLOC granted over $129 million in total loans to members, which also represents an investment in the local economy, where our members are purchasing homes and vehicles. Our loan growth resulted from several lending enhancements. First, members embraced the convenience of applying for a loan at the same place they purchase their vehicles. Lending at the car dealerships became our fastest growing loan channel in. In June, our new online application simplified the loan application and approval process for all consumer loans. We also expanded business loan products to better serve members who own business properties. Lastly, we expanded our real estate loan offerings, including a low down payment option, and placed real estate loan officers in the branches for convenient appointments and easy drop-in chats. This year s dramatic increase in loans provided a boost to income, which was also enhanced by the sale of the former headquarters on Los Osos Valley Road. This growth provides the foundation for technology enhancements, along with expanded facilities and services this coming year. This was also the year of expanding financial education opportunities. We believe that financial success and wellness is within each member s reach; and we believe that knowledge is the foundation for that success. This year over 4 people participated in nine free seminars on a wide range of financial topics, such as Home Buying, Social Security, and Relief from the Burden of Debt. We will expand the number of seminars and locations in 216. B R A N C H LO C AT I O N S Paso Robles 75 Golden Hill Road Atascadero 838 El Camino Real San Luis Obispo 387 Broad Street Monday Saturday: 9 am 1pm Arroyo Grande 1399 East Grand Avenue Santa Maria 256 South Broadway H E A D Q UA RT E R S 3855 Broad Street, San Luis Obispo M A I L I N G A D D R E SS P.O. Box 536 San Luis Obispo, CA Our deep commitment to education also continued through our collaboration with the FoolProof consumer education group and through expanded Education Grants to local teachers. FoolProof provides unbiased, unsponsored online financial education, including online modules for high school teachers classroom use President/CEO ONLY BETTER. was a milestone year for SESLOC Federal Credit Union. Continuing bank mergers and consolidations served to highlight our credit union s unique position in the community. As a locally owned institution with a 74-year history of strength and stability, we ve gained the trust and confidence of Central Coast residents. Our charter expansion and new Santa Maria Branch, which opened in early 216, further strengthens our service to local communities. Local confidence contributed to several milestones this year. We saw an extraordinary 9% growth in membership, ending the year with more than 42, members. In addition, assets topped $7 million and net worth topped 9%. Strong leadership from an outstanding management team and a committed staff created the environment for this exceptional performance. This year we coined the phrase Banking. Only Better. While a credit union is certainly a place to do your banking, as a not-for-profit institution, we are guided by rules and principles that are unique to credit unions. This means that Credit Union income and growth are not fueled by fees or sales quotas, but rather by investing in loans to members for personal and business purposes. This means you can trust SESLOC to have your best interests at heart. SESLOC may not always get your business, or earn as much as it might if we sold you on something you really didn t need; we d rather earn your confidence and trust. As we enter the new year, we are looking forward to an exciting 216, with new locations in Paso Robles and Santa Maria, continued investments in technology and security, and an increased commitment to financial education. Above all, we re committed to ensuring the safety and soundness of our credit union for all members. Dr. Vic Buccola Thank you for your ongoing support. We look forward to another year of solid performance in 216. Geri LaChance CHAIRMAN S MESSAGE of the Board S ES LO C.ORG Savings are federally insured to at least $25, and backed by the full faith and credit of the U.S. Government. National Credit Union Administration, a U.S. government agency. BANKING.

4 ACHIEVEMENTS FINANCIAL CONDITION BOARD OF DIRECTORS Community Charter expanded to serve Northern Santa Barbara County ASSETS 214 Loans To Members 334,49, ,4,117 New online loan application process Allowance For Loan Losses (2,47,) (1,836,469) Real Estate Loan Officers now available in each branch Cash 3,698,587 4,25,864 Investments 284,131, ,815,493 Fixed Assets 19,58,312 17,49,887 NCUSIF Share Insurance Fund 5,623,325 5,898,522 Other Assets 2,685,5 3,896,314 Total Assets Other Liabilities 4,679,895 5,366,31 Shares Of Members 585,96, ,698,218 Restricted Reserves Undivided Earnings 49,157,913 55,158,12 Unrealized Gain/Loss (862,132) (1,633,596) Total Liabilities & Equity Veterans Outreach Education Grants Dramatic increase in loan production Dr. Vic Buccola FoolProof financial education introduced Service Satisfaction Surveys to collect member feedback Anthony Cangelosi Vice Chair Dr. Alden Shiers Treasurer Pauline Shaffer Secretary Financial education seminars attended by hundreds of members LIABILITIES AND MEMBERS EQUITY Apple Pay launched EDUCATION GRANTS Miracle Miles for Kids Barbara Melvin In, SESLOC awarded $1,43 in education grants, which supported 22 classrooms in San Luis Obispo and Northern Santa Barbara Counties. The grants have funded a wide range of classroom projects on subjects that have included math, science, reading, conservation, marine biology, robotics, drama, journalism, art, and more. Middle Schools: Arellanes Judkins Laguna Mesa Paulding High Schools: Morro Bay Pacific Beach Paso Robles San Luis Obispo Jim Park SUPERVISORY COMMITTEE REPORT SESLOC continues to honor our roots by giving back to local educators. This year, we awarded 18 grants to the following schools: Elementary Schools: Almond Acres Bishop s Peak C.L. Smith Hawthorne Monarch Grove Monterey Road Nipomo Shandon Sinsheimer Jacquie Paulsen Jack Ready Imagination Park Lovin Lunchbox Educational Seminars COMMUNITY SUPPORT We support local charities, provide grants to local schools and offer free financial education. We enjoy participating in numerous local fundraising events every year. To the right are a just a few examples of the ways we gave back to our community in. United Way KidSpree Free Shred Days INCOME AND EXPENSES INCOME 214 The primary duties of the Supervisory Committee are to ensure SESLOC s financial statements are fair and accurate. Other duties include attending Board meetings, meet with management as needed, and answer in a fair and timely manner member complaints sent to our federal regulators, The National Credit Union Administration (NCUA). Interest On Member Loans 13,56,528 14,689,42 Income From Investments 2,66,541 2,47,767 Fees And Charges 3,461,683 3,829,899 Other Income 24, ,123 Total Gross Income $19,275,69 $21,463,191 In the past year, the Supervisory Committee engaged the CPA firm of Orth, Chalker, and Murmane on our behalf to audit the financial statements as well as internal procedures and polices. The Committee is pleased to report to the members that all audits confirm the safety and soundness of SESLOC s financial position. Compensation & Benefits 7,411,851 8,819,427 Travel & Conference Expenses 118, ,98 Association Dues 52,593 53,592 Office Occupancy 716,53 998,128 Office Operations 1,859,419 2,35,643 Member complaints or issues directed to us by the NCUA have been resolved in a timely manner. Education And Promotion 562, ,28 Loan Services Expense 137, ,18 The Committee is grateful to the Board of s for providing information on matters of policy and governance. We commend the management and employees for their responsibility and commitment to all audits and NCUA examination issues as well as to information security and member privacy. Professional & Outside Services 1,998,586 2,186,976 Provision For Loan Losses 521,33 (134,114) Federal Operating Fee 113,14 96,242 NCUA - Member Share Insurance Cash Over & Short 2,14 2,674 Thank you to our current Committee members, Tom Lebens, Charlene Rosales, Ken SanFilippo, and Ann Wassam for their time and effort. Miscellaneous Expenses 169, ,64 Total Expenses $13,663,229 $15,671,216 Dividends 2,5,24 2,63,423 Non Operating Gain/ Loss 129,97 2,271,655 Net Income From Operations $3,24,913 $6,,27 Gary Hoskins OPERATING EXPENSES

5 ACHIEVEMENTS FINANCIAL CONDITION BOARD OF DIRECTORS Community Charter expanded to serve Northern Santa Barbara County ASSETS 214 Loans To Members 334,49, ,4,117 New online loan application process Allowance For Loan Losses (2,47,) (1,836,469) Real Estate Loan Officers now available in each branch Cash 3,698,587 4,25,864 Investments 284,131, ,815,493 Fixed Assets 19,58,312 17,49,887 NCUSIF Share Insurance Fund 5,623,325 5,898,522 Other Assets 2,685,5 3,896,314 Total Assets Other Liabilities 4,679,895 5,366,31 Shares Of Members 585,96, ,698,218 Restricted Reserves Undivided Earnings 49,157,913 55,158,12 Unrealized Gain/Loss (862,132) (1,633,596) Total Liabilities & Equity Veterans Outreach Education Grants Dramatic increase in loan production Dr. Vic Buccola FoolProof financial education introduced Service Satisfaction Surveys to collect member feedback Anthony Cangelosi Vice Chair Dr. Alden Shiers Treasurer Pauline Shaffer Secretary Financial education seminars attended by hundreds of members LIABILITIES AND MEMBERS EQUITY Apple Pay launched EDUCATION GRANTS Miracle Miles for Kids Barbara Melvin In, SESLOC awarded $1,43 in education grants, which supported 22 classrooms in San Luis Obispo and Northern Santa Barbara Counties. The grants have funded a wide range of classroom projects on subjects that have included math, science, reading, conservation, marine biology, robotics, drama, journalism, art, and more. Middle Schools: Arellanes Judkins Laguna Mesa Paulding High Schools: Morro Bay Pacific Beach Paso Robles San Luis Obispo Jim Park SUPERVISORY COMMITTEE REPORT SESLOC continues to honor our roots by giving back to local educators. This year, we awarded 18 grants to the following schools: Elementary Schools: Almond Acres Bishop s Peak C.L. Smith Hawthorne Monarch Grove Monterey Road Nipomo Shandon Sinsheimer Jacquie Paulsen Jack Ready Imagination Park Lovin Lunchbox Educational Seminars COMMUNITY SUPPORT We support local charities, provide grants to local schools and offer free financial education. We enjoy participating in numerous local fundraising events every year. To the right are a just a few examples of the ways we gave back to our community in. United Way KidSpree Free Shred Days INCOME AND EXPENSES INCOME 214 The primary duties of the Supervisory Committee are to ensure SESLOC s financial statements are fair and accurate. Other duties include attending Board meetings, meet with management as needed, and answer in a fair and timely manner member complaints sent to our federal regulators, The National Credit Union Administration (NCUA). Interest On Member Loans 13,56,528 14,689,42 Income From Investments 2,66,541 2,47,767 Fees And Charges 3,461,683 3,829,899 Other Income 24, ,123 Total Gross Income $19,275,69 $21,463,191 In the past year, the Supervisory Committee engaged the CPA firm of Orth, Chalker, and Murmane on our behalf to audit the financial statements as well as internal procedures and polices. The Committee is pleased to report to the members that all audits confirm the safety and soundness of SESLOC s financial position. Compensation & Benefits 7,411,851 8,819,427 Travel & Conference Expenses 118, ,98 Association Dues 52,593 53,592 Office Occupancy 716,53 998,128 Office Operations 1,859,419 2,35,643 Member complaints or issues directed to us by the NCUA have been resolved in a timely manner. Education And Promotion 562, ,28 Loan Services Expense 137, ,18 The Committee is grateful to the Board of s for providing information on matters of policy and governance. We commend the management and employees for their responsibility and commitment to all audits and NCUA examination issues as well as to information security and member privacy. Professional & Outside Services 1,998,586 2,186,976 Provision For Loan Losses 521,33 (134,114) Federal Operating Fee 113,14 96,242 NCUA - Member Share Insurance Cash Over & Short 2,14 2,674 Thank you to our current Committee members, Tom Lebens, Charlene Rosales, Ken SanFilippo, and Ann Wassam for their time and effort. Miscellaneous Expenses 169, ,64 Total Expenses $13,663,229 $15,671,216 Dividends 2,5,24 2,63,423 Non Operating Gain/ Loss 129,97 2,271,655 Net Income From Operations $3,24,913 $6,,27 Gary Hoskins OPERATING EXPENSES

6 ACHIEVEMENTS FINANCIAL CONDITION BOARD OF DIRECTORS Community Charter expanded to serve Northern Santa Barbara County ASSETS 214 Loans To Members 334,49, ,4,117 New online loan application process Allowance For Loan Losses (2,47,) (1,836,469) Real Estate Loan Officers now available in each branch Cash 3,698,587 4,25,864 Investments 284,131, ,815,493 Fixed Assets 19,58,312 17,49,887 NCUSIF Share Insurance Fund 5,623,325 5,898,522 Other Assets 2,685,5 3,896,314 Total Assets Other Liabilities 4,679,895 5,366,31 Shares Of Members 585,96, ,698,218 Restricted Reserves Undivided Earnings 49,157,913 55,158,12 Unrealized Gain/Loss (862,132) (1,633,596) Total Liabilities & Equity Veterans Outreach Education Grants Dramatic increase in loan production Dr. Vic Buccola FoolProof financial education introduced Service Satisfaction Surveys to collect member feedback Anthony Cangelosi Vice Chair Dr. Alden Shiers Treasurer Pauline Shaffer Secretary Financial education seminars attended by hundreds of members LIABILITIES AND MEMBERS EQUITY Apple Pay launched EDUCATION GRANTS Miracle Miles for Kids Barbara Melvin In, SESLOC awarded $1,43 in education grants, which supported 22 classrooms in San Luis Obispo and Northern Santa Barbara Counties. The grants have funded a wide range of classroom projects on subjects that have included math, science, reading, conservation, marine biology, robotics, drama, journalism, art, and more. Middle Schools: Arellanes Judkins Laguna Mesa Paulding High Schools: Morro Bay Pacific Beach Paso Robles San Luis Obispo Jim Park SUPERVISORY COMMITTEE REPORT SESLOC continues to honor our roots by giving back to local educators. This year, we awarded 18 grants to the following schools: Elementary Schools: Almond Acres Bishop s Peak C.L. Smith Hawthorne Monarch Grove Monterey Road Nipomo Shandon Sinsheimer Jacquie Paulsen Jack Ready Imagination Park Lovin Lunchbox Educational Seminars COMMUNITY SUPPORT We support local charities, provide grants to local schools and offer free financial education. We enjoy participating in numerous local fundraising events every year. To the right are a just a few examples of the ways we gave back to our community in. United Way KidSpree Free Shred Days INCOME AND EXPENSES INCOME 214 The primary duties of the Supervisory Committee are to ensure SESLOC s financial statements are fair and accurate. Other duties include attending Board meetings, meet with management as needed, and answer in a fair and timely manner member complaints sent to our federal regulators, The National Credit Union Administration (NCUA). Interest On Member Loans 13,56,528 14,689,42 Income From Investments 2,66,541 2,47,767 Fees And Charges 3,461,683 3,829,899 Other Income 24, ,123 Total Gross Income $19,275,69 $21,463,191 In the past year, the Supervisory Committee engaged the CPA firm of Orth, Chalker, and Murmane on our behalf to audit the financial statements as well as internal procedures and polices. The Committee is pleased to report to the members that all audits confirm the safety and soundness of SESLOC s financial position. Compensation & Benefits 7,411,851 8,819,427 Travel & Conference Expenses 118, ,98 Association Dues 52,593 53,592 Office Occupancy 716,53 998,128 Office Operations 1,859,419 2,35,643 Member complaints or issues directed to us by the NCUA have been resolved in a timely manner. Education And Promotion 562, ,28 Loan Services Expense 137, ,18 The Committee is grateful to the Board of s for providing information on matters of policy and governance. We commend the management and employees for their responsibility and commitment to all audits and NCUA examination issues as well as to information security and member privacy. Professional & Outside Services 1,998,586 2,186,976 Provision For Loan Losses 521,33 (134,114) Federal Operating Fee 113,14 96,242 NCUA - Member Share Insurance Cash Over & Short 2,14 2,674 Thank you to our current Committee members, Tom Lebens, Charlene Rosales, Ken SanFilippo, and Ann Wassam for their time and effort. Miscellaneous Expenses 169, ,64 Total Expenses $13,663,229 $15,671,216 Dividends 2,5,24 2,63,423 Non Operating Gain/ Loss 129,97 2,271,655 Net Income From Operations $3,24,913 $6,,27 Gary Hoskins OPERATING EXPENSES

7 ACHIEVEMENTS FINANCIAL CONDITION BOARD OF DIRECTORS Community Charter expanded to serve Northern Santa Barbara County ASSETS 214 Loans To Members 334,49, ,4,117 New online loan application process Allowance For Loan Losses (2,47,) (1,836,469) Real Estate Loan Officers now available in each branch Cash 3,698,587 4,25,864 Investments 284,131, ,815,493 Fixed Assets 19,58,312 17,49,887 NCUSIF Share Insurance Fund 5,623,325 5,898,522 Other Assets 2,685,5 3,896,314 Total Assets Other Liabilities 4,679,895 5,366,31 Shares Of Members 585,96, ,698,218 Restricted Reserves Undivided Earnings 49,157,913 55,158,12 Unrealized Gain/Loss (862,132) (1,633,596) Total Liabilities & Equity Veterans Outreach Education Grants Dramatic increase in loan production Dr. Vic Buccola FoolProof financial education introduced Service Satisfaction Surveys to collect member feedback Anthony Cangelosi Vice Chair Dr. Alden Shiers Treasurer Pauline Shaffer Secretary Financial education seminars attended by hundreds of members LIABILITIES AND MEMBERS EQUITY Apple Pay launched EDUCATION GRANTS Miracle Miles for Kids Barbara Melvin In, SESLOC awarded $1,43 in education grants, which supported 22 classrooms in San Luis Obispo and Northern Santa Barbara Counties. The grants have funded a wide range of classroom projects on subjects that have included math, science, reading, conservation, marine biology, robotics, drama, journalism, art, and more. Middle Schools: Arellanes Judkins Laguna Mesa Paulding High Schools: Morro Bay Pacific Beach Paso Robles San Luis Obispo Jim Park SUPERVISORY COMMITTEE REPORT SESLOC continues to honor our roots by giving back to local educators. This year, we awarded 18 grants to the following schools: Elementary Schools: Almond Acres Bishop s Peak C.L. Smith Hawthorne Monarch Grove Monterey Road Nipomo Shandon Sinsheimer Jacquie Paulsen Jack Ready Imagination Park Lovin Lunchbox Educational Seminars COMMUNITY SUPPORT We support local charities, provide grants to local schools and offer free financial education. We enjoy participating in numerous local fundraising events every year. To the right are a just a few examples of the ways we gave back to our community in. United Way KidSpree Free Shred Days INCOME AND EXPENSES INCOME 214 The primary duties of the Supervisory Committee are to ensure SESLOC s financial statements are fair and accurate. Other duties include attending Board meetings, meet with management as needed, and answer in a fair and timely manner member complaints sent to our federal regulators, The National Credit Union Administration (NCUA). Interest On Member Loans 13,56,528 14,689,42 Income From Investments 2,66,541 2,47,767 Fees And Charges 3,461,683 3,829,899 Other Income 24, ,123 Total Gross Income $19,275,69 $21,463,191 In the past year, the Supervisory Committee engaged the CPA firm of Orth, Chalker, and Murmane on our behalf to audit the financial statements as well as internal procedures and polices. The Committee is pleased to report to the members that all audits confirm the safety and soundness of SESLOC s financial position. Compensation & Benefits 7,411,851 8,819,427 Travel & Conference Expenses 118, ,98 Association Dues 52,593 53,592 Office Occupancy 716,53 998,128 Office Operations 1,859,419 2,35,643 Member complaints or issues directed to us by the NCUA have been resolved in a timely manner. Education And Promotion 562, ,28 Loan Services Expense 137, ,18 The Committee is grateful to the Board of s for providing information on matters of policy and governance. We commend the management and employees for their responsibility and commitment to all audits and NCUA examination issues as well as to information security and member privacy. Professional & Outside Services 1,998,586 2,186,976 Provision For Loan Losses 521,33 (134,114) Federal Operating Fee 113,14 96,242 NCUA - Member Share Insurance Cash Over & Short 2,14 2,674 Thank you to our current Committee members, Tom Lebens, Charlene Rosales, Ken SanFilippo, and Ann Wassam for their time and effort. Miscellaneous Expenses 169, ,64 Total Expenses $13,663,229 $15,671,216 Dividends 2,5,24 2,63,423 Non Operating Gain/ Loss 129,97 2,271,655 Net Income From Operations $3,24,913 $6,,27 Gary Hoskins OPERATING EXPENSES

8 PRESIDENT S MESSAGE We saw robust lending growth in, and ended the year with a record annual increase in loan volume. SESLOC granted over $129 million in total loans to members, which also represents an investment in the local economy, where our members are purchasing homes and vehicles. Our loan growth resulted from several lending enhancements. First, members embraced the convenience of applying for a loan at the same place they purchase their vehicles. Lending at the car dealerships became our fastest growing loan channel in. In June, our new online application simplified the loan application and approval process for all consumer loans. We also expanded business loan products to better serve members who own business properties. Lastly, we expanded our real estate loan offerings, including a low down payment option, and placed real estate loan officers in the branches for convenient appointments and easy drop-in chats. This year s dramatic increase in loans provided a boost to income, which was also enhanced by the sale of the former headquarters on Los Osos Valley Road. This growth provides the foundation for technology enhancements, along with expanded facilities and services this coming year. This was also the year of expanding financial education opportunities. We believe that financial success and wellness is within each member s reach; and we believe that knowledge is the foundation for that success. This year over 4 people participated in nine free seminars on a wide range of financial topics, such as Home Buying, Social Security, and Relief from the Burden of Debt. We will expand the number of seminars and locations in 216. B R A N C H LO C AT I O N S Paso Robles 75 Golden Hill Road Atascadero 838 El Camino Real San Luis Obispo 387 Broad Street Monday Saturday: 9 am 1pm Arroyo Grande 1399 East Grand Avenue Santa Maria 256 South Broadway H E A D Q UA RT E R S 3855 Broad Street, San Luis Obispo M A I L I N G A D D R E SS P.O. Box 536 San Luis Obispo, CA Our deep commitment to education also continued through our collaboration with the FoolProof consumer education group and through expanded Education Grants to local teachers. FoolProof provides unbiased, unsponsored online financial education, including online modules for high school teachers classroom use President/CEO ONLY BETTER. was a milestone year for SESLOC Federal Credit Union. Continuing bank mergers and consolidations served to highlight our credit union s unique position in the community. As a locally owned institution with a 74-year history of strength and stability, we ve gained the trust and confidence of Central Coast residents. Our charter expansion and new Santa Maria Branch, which opened in early 216, further strengthens our service to local communities. Local confidence contributed to several milestones this year. We saw an extraordinary 9% growth in membership, ending the year with more than 42, members. In addition, assets topped $7 million and net worth topped 9%. Strong leadership from an outstanding management team and a committed staff created the environment for this exceptional performance. This year we coined the phrase Banking. Only Better. While a credit union is certainly a place to do your banking, as a not-for-profit institution, we are guided by rules and principles that are unique to credit unions. This means that Credit Union income and growth are not fueled by fees or sales quotas, but rather by investing in loans to members for personal and business purposes. This means you can trust SESLOC to have your best interests at heart. SESLOC may not always get your business, or earn as much as it might if we sold you on something you really didn t need; we d rather earn your confidence and trust. As we enter the new year, we are looking forward to an exciting 216, with new locations in Paso Robles and Santa Maria, continued investments in technology and security, and an increased commitment to financial education. Above all, we re committed to ensuring the safety and soundness of our credit union for all members. Dr. Vic Buccola Thank you for your ongoing support. We look forward to another year of solid performance in 216. Geri LaChance CHAIRMAN S MESSAGE of the Board S ES LO C.ORG Savings are federally insured to at least $25, and backed by the full faith and credit of the U.S. Government. National Credit Union Administration, a U.S. government agency. BANKING.