o o o o o o o o Treasurer s Report New Business Board Elections Adjournment

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2 Welcme & Call t Order Apprval f Minutes CEO & President s Message Supervisry Cmmittee Reprt Treasurer s Reprt New Business Bard Electins Adjurnment Annual Meeting pened at 4:35 PM with mre than 15 in attendance. A message frm Bard President, Pat Kelly: Once again, we have had a very successful year. Our financials are very secure and we cntinue n a path f success. Brian will g int detail n the numbers. This past year, we had t make arrangements fr Brian s departure frm ur credit unin. Brian has been an integral frce behind ur success and finding a replacement has had its challenges. As we are all happy fr Brian and his retirement, we are equally sure he will be srely missed. The Bard f Directrs, Supervisry Cmmittee, Vlunteer Cmmittee and the management team must be recgnized fr their due diligence in the CEO search. We had a great deal f discussin and firmly believe we have fund a viable replacement fr Brian. Of curse, it ges withut saying, challenges lie ahead; but, with the supprt f the management team and emplyees, we feel as thugh we are well prepared fr thse challenges. Speaking f the Management team and emplyees, yu are the backbne f ur peratin. Yu are the face f what the membership sees and prvide the services that members are lking fr. We are prud t say, Great jb well dne by all and thank yu! Lastly, but just as imprtant, we have had an hnr bestwed upn ne f ur cmmittee peple. Jim Mnterville will be hnred at the annual New Yrk Credit Unin Cnventin as Vlunteer f the Year. We ffer Jim ur cngratulatins n a well-deserved hnr. Once again, thank yu all fr the cntinuing supprt f ur Credit Unin. Jim Mnterville, Supervisry Cmmittee Chair Great Bard t wrk with and als the Educatinal Cmmittee has been great. They are all ding a wnderful jb. Jim nted t Pat Kelly Thank yu fr yur cntinued supprt f the Credit Unin. Brian Snyder wuld like t thank the Bard, Supervisry Cmmittee and Educatin Cmmittee fr supprting us in the last year. The Bard and Cmmittees are very supprtive f ur CU and staff. Thank yu t the emplyees wh are ding a fine jb and a great jb with the members was a great year assets grew apprx. $7MM t $262MM; incme increased by $460,000. Mstly, due t a $360,000 reductin in Allwance fr Lan Lsses allcatin. Thank yu t ur lenders fr riginatin quality lans and t ur cllectrs. Increase in earnings besides that. Interest rates have begun t rise which helped stabilize ur margins. The CU needs lng-term rates t rise t increase ur margins. Shrt term rates have risen, hwever, lng term rates have nt. Membership decreased b7 376 last year while checking accunts increased by 115. Lbby transactins decreased by 13,000; mbile transactins increased 37,000; ATM transactins are flat. ATM depsits increased by apprximately 800. The primary gal fr 2017/2018 is t grw membership. In a cuple weeks, we will welcme ur new CEO and he will jin us in fcusing n membership grwth. Supervisry Cmmittee Reprt read by Bb Olander. Financial Statements Presented by Mary Palumb We finished the year with a ROA f 1.05%; Peer Credit Unins average a ROA f BP. Our earnings were ver $400,000. Interest rates have been slw t mve. Our cst f funds are higher than peer which shws that we are giving back t ur members net interest margin was tighter, hwever, it has stabilized in recent mnths.; Expenses are well-mnitred. The balance sheet is very strng. Lans increased by ver 1% t $151MM. This increase was due t a purchase f $5MM in cnsumer lans, with full recurse. Member depsits increased 2.5%. Investments We cntinued t keep as shrt as pssible. Our net wrth rati remains strng at ver 14%. Peer Credit Unins average 10%. We have a very stable financial fundatins ging int Old Business Nne Electins: Incumbents: P. Kelly, R. Inzana, J. McInry Jim Mnterville asked that the Secretary cast ne ballt fr incumbents, secnd Bb Olander. carried. We thank everyne fr taking the time t cme t the annual meeting. Mtin t adjurn the annual meeting at 4:52 PM made by J. McInry, secnd B. Olander carried

3 Thank yu fr yur cntinued membership and supprt f ur Credit Unin was anther year f cntinued grwth, with year-end assets reaching $269 millin, $6.6 millin abve the prir year. Lans grew in 2017 by $9.9, millin and year end memberships were at 17,801. In 2017, we intrduced a new 3% dwn mrtgage prgram, we began ffering FHLB s First Hme Club matched savings prgram t assist with mrtgage dwn payment and clsing csts and launched ur undergraduate and graduate Student Lan prgrams. In June, we held a recrd breaking n-site car sale funding 83 lans fr $1.5 millin in ne day. We cntinue t see grwth in ur autmated prcesses as members are chsing t cnduct transactins frm the cnvenience f their electrnic devices. In the last five years, teller transactins have declined 21%, while mbile activity, mbile depsits and ATM depsits have increased 271% in the same five years. We strive t reach members f all ages and allw them t chse their methd f cmpleting transactins, pening accunts and applying fr lans. Service t ur membership has, and will always be, a pririty. We will wrk t ensure whichever methd they chse will be dne timely and efficiently. In 2017, the Bard and Members f Enchanted Muntains FCU in Allegany vted t merge int Olean Area FCU. The merger will give members f bth credit unins expanded ffice lcatins as well as an expanded prduct line and services fr the members f Enchanted Muntains FCU. The merger will take place June 11, als saw the retirement f ur CEO, Brian Snyder. We wuld like t thank Brian, as his leadership cmmitment t the Credit Unin resulted in exemplary grwth ver the last twelve years. Thank yu fr chsing Olean Area FCU as yur financial institutin and lk frward t grwing with yu! The missin f the Supervisry Cmmittee is t safeguard member assets by verseeing the integrity f the Credit Unin s financial statements, internal cntrls and cmpliance with legal and regulatry requirements. The Supervisry Cmmittee is als respnsible fr engaging internal and external auditrs t ensure management meets financial reprting bjectives and fllws General Accepted Accunt Principals (GAAP) and NCUA regulatins. In 2017, an internal audit was cnducted by The Bnadi & CO LLP. The internal audit prvides an additinal layer f review f the financial cntrls used. An external CPA audit was cnducted by Mengel Metzger Barr & C. LLP in September Thrughut 2017, we bserved that Olean Area FCU cntinued t meet the requirements f the Natinal Credit Unin Administratin (NCUA). The federal examiners f NCUA als audited the Credit Unin and n findings were reprted. The Supervisry Cmmittee welcmed three new members wh have transitined frm the Vlunteer Educatin Cmmittee. All Cmmittee members as well as Bard f Directrs cmpleted training required by the NCUA. The Cmmittee has cncluded that the Olean Area FCU perated in a safe and sund financial manner and assets f the membership are being effectively safeguarded. The cmmittee welcmes all cmments and suggestins frm ur members. Cncerns and questins may be directed t: Olean Area Federal Credit Unin Supervisry Cmmittee, PO Bx 201, Olean, NY Thank yu t the Bard f Directrs, Cmmittee Members, Credit Unin Management, and Credit Unin Emplyees.

4 During 2017, Olean Area Federal Credit Unin cntinued t fcus n maintaining earnings while grwing lans and shares. In 2017, we finished with a Return n assets f 1.03%, cmpared t peer average f 0.49%. The Credit Unin earnings remained stable at $2.7 millin. In 2017, lan incme increased by 7.00%, and ur cst f funds (0.46%) remained higher than credit unin peers (0.40%). The Credit Unin s was als able t keep ur verall perating expenses lw cmpared t peer, 2.58% vs 3.35%. Our balance sheet remained strng as ttal assets reached ver $269 millin, a grwth f 2.52%. Mre imprtantly, lans utstanding increased by 6.55% t $161.7 millin. This increase was due in large part t a $5 millin purchase f cnsumer lans with full recurse, and the Credit Unin s venture int a new Student Lan prgram. Member depsits increased by 1.75% t $227.9 millin, the largest increase ccurring in regular shares 5.53%. Our investment prtfli cntinued t hld a shrt average life, while we increased ur verall investment yield t 1.37%. Net wrth, which is a measure f capital strength f the credit unin, remained strng at 14.73%, as cmpared t peer s Net Wrth f 10.40%. Our strng net wrth prvides us the pprtunities t invest in new prducts and services that enhance the value f membership. One f the mst imprtant gals f the Bard f Directrs and Management is t remain financially safe and sund. Olean Area Federal Credit Unin enters 2018 financially strng and prepared fr rising rates and an imprving lcal ecnmy. In 2018, we will see additinal grwth due t ur merger pprtunity with Enchanted Muntains Federal Credit Unin n June 11, Assets $269,141, % Lans $161,681, % Shares $227,866, % Members 17, % The fllwing incumbents are nminated fr a 3-year term t the Bard f Directrs: Lla Stughtn Rnald Kent, Jr Michele Panci

5 Year End December 31, Assets Lans $161,681,491 $151,740,251 Allwance fr Lan Lss -2,435,178-2,542,612 Net Lans 159,246, ,197,639 Cash 2,462,428 3,134,180 Ttal Investments 91,784,835 95,069,576 Other Assets 15,648,196 15,116,922 TOTAL ASSETS $269,141,773 $262,518,317 Liabilities and Equity Ttal Liabilities $1,652,537 $1,453,680 Savings 67,830,675 64,278,716 Checking 35,392,095 31,441,085 Mney Market 66,208,688 70,367,025 IRA 3,775,165 4,275,165 Certificates 54,659,473 53,592,067 Ttal Shares 227,866, ,954,057 Ttal Reserves 39,623,140 37,110,580 TOTAL LIABILITIES AND EQUITY $269,141,773 $262,518,317 Interest Incme Interest n Lans $7,199,984 $6,729,349 Interest n Investments 1,281,876 1,112,437 Ttal Interest Incme $8,481,860 $7,841,786 Interest Expense Dividends Paid n Shares $1,216,153 $1,152,050 Interest n Brrwed Funds 3,400 8,354 Ttal Interest Expense $1,219,552 $1,160,405 Net Interest Incme $7,262,308 $6,681,381 Prvisin fr Lan Lsses 240, ,000 Net interest incme after PLL $7,022,308 $6,375,381 Nn Interest Incme 2,561,484 2,407,969 Nn Interest Operating Expense 6,856,425 6,057,309 NET INCOME $2,727,367 $2,726,041

6 Reserves and Undividend Earnings 37 millin 34 millin 32 millin 29 millin 40 millin Net Wrth 12.89% 13.41% 14.07% 14.73% 12.03% Lan Prtfli 42% First Mrtgages 25% Aut Lans 17% Cmmercial Lans 5% Unsecured Lans 5% Other Real Estate 4% Credit Cards & LOCs 2% Other Lans Share Prtfli 31% Mney Market 29% Shares 24% Certificates 14% Share Drafts 2% IRA Shares THOUSANDS # OF TRANSACTIONS Teller ATM Withdraw Audi Respnse Hme Banking Mbile CU ATM Depsit Mbile Depsit ACH Originatin

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