Housekeeping. Teleconference (Voice Services) Dial-in number: (877) Participant Passcode:

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2 Housekeeping Teleconference (Voice Services) Dial-in number: (877) Participant Passcode: Annual Meeting Minutes Please review before meeting at UPDATE Resources/2015 Annual Meeting Prize Drawing Must be logged into online Open meeting Member in good standing Questions Please submit questions via Open meeting chat panel. Questions will be answered during the Other Business segment.

3 Chairman s Introduction Welcome Call to Order

4 Agenda Introduction of Board Approval of Annual Meeting Minutes Supervisory Committee Report Chairman s Report President s Report Nominating Committee Report Other Business Q & A Closing Remarks/Adjourn Meeting Prize Drawing Ivor Longo Margaret Sherrod Karen Brey Ivor Longo Rob Hatefi Michael Gregorio Ivor Longo Ivor Longo Ivor Longo

5 Board of Directors Ivor Longo Chairman Karen Brey Vice Chairman Nick Nichols Chief Financial Officer Margaret Sherrod Chief Recording Officer Anita DeMyers Board Member Cameron Tyer Board Member Chris Nolan Board Member Katherine Fithen Board Member Mike Gregorio Board Member Livingston Johnson Board Member Michael LaKier Board Member Shilvi Leinwand Board Member Peter Pearson Board Member

6 Ivor Longo - Board Chairman

7 Karen Brey Vice Chairman

8 Nick Nichols Chief Financial Officer

9 Margaret Sherrod - Chief Recording Officer

10 Anita DeMyers Board Member

11 Cameron Tyer Board Member

12 Katherine Fithen Board Member

13 Mike Gregorio Board Member

14 Livingston Johnson Board Member

15 Michael LaKier Board Member

16 Shilvi Leinward Board Member

17 Chris Nolan Board Member

18 Peter Pearson Board Member

19 Board Committees Finance Committee Supervisory Committee Committee on Directors Committee Marketing Committee Loan Review Committee Technology/ Security Committee Advisory Council Committee Membership Committee Personnel Committee Contract Review Committee

20 Annual Meeting Minutes Approval of Annual Meeting Minutes Chief Recording Officer, Margaret Sherrod

21 Annual Meeting Minutes

22 Supervisory Committee Report Supervisory Committee Chairman Karen Brey

23 Chairman s Report Board Chairman Ivor Longo

24 Chairman s Message

25 President s Report Statement of Condition EARNINGS RATIOS Yield on average Loans 4.2% 4.3% 4.7% Yield on Investments 1.0% 0.6% 0.7% Gross Income/Average Assets 3.9% 3.8% 4.2% Cost of Funds 0.1% 0.1% 0.1% Net Interest Margin 2.9% 2.8% 3.1% Operating Expense Ratio 3.4% 3.4% 3.5% Return on Average Assets 0.3% 0.3% 0.6%

26 Financial Ratios /2014 Growth /2013 Growth 2013 Total Loans $ % $ % $ 99.6 Total Investments $ % $ % $ 63.0 Total Assets $ % $ % $ Total Shares $ % $ % $ Total Equity $ % $ % $ 14.5 Net Worth Ratio 9.1% 1.1% 9.0% 1.7% 8.9% Loan to Share Ratio 72.0% -1.0% 72.7% 6.5% 68.3% Total Number of Members 14, % 14, % 14,146

27 Financial Results 2014/ /2014 EARNINGS (in thousands) 2015 Growth 2014 Growth 2013 Operating Income $ 6, % $ 6, % $ 6,730.8 Provision for Loan Losses % % Operating Expenses 5, % 5, % 5,440.1 Dividend Expense % % Net Income from Operations % % Non-Operating Gains/(Losses) % Net Income before NCUA Assessment % % 1,054.9 NCUA Assessment % % Net Income $ % $ % $ 936.6

28 Nominating Committee Report Nominating Committee Chair Election of Board of Directors

29 Other Business Old Business New Business

30 Closing Remarks Chairman s Closing Comments

31 Prizes Eligibility Member in Good Standing Must attend meeting via Open meeting Board, volunteers and staff are not eligible Money will be transferred into winners account today 3rd Prize $ 50 2 nd Prize $100 1st Prize $150

32 Thank You & Have a Great Day

33 Statement of Income for the years ended December 31, 2015 & Change % Income Interest Income $ 5,076,104 $ 4,842,921 $ 233, % Other Income 1,492,845 1,404,930 87, % Total Income 6,568,949 6,247, , % Expenses Salaries & Benefits 3,270,812 3,204,015 66, % Office Operations 2,316,316 2,261,527 54, % Provision for Loan Losses 342,209 96, , % Other 52,069 58,751 (6,682) (11.4)% Total Operating Expenses 5,981,406 5,620, , % Income Before Dividends & Interest 587, ,407 (39,864) (6.4)% Dividends & Interest Expense 167, ,371 (1,249) (0.7)% Net Income from Operations 420, ,036 (38,615) (8.4)% Non-operating Gains/(Losses) 38,335-38,335 Contribution to Capital Reserves $ 458,756 $ 459,036 $ (280) 0.1 %

34 Statement of Financial Condition as of December 31, 2015 & Change % Assets Cash and Cash Equivalents $ 20,052,201 $ 16,020,908 $ 4,031, % Loans to Members 110,303, ,662,587 3,640, % Less: Allowance for Loan Losses (957,397) (952,082) (5,315) 0.6 % Net Loans 109,345, ,710,505 3,635, % Government Securities and Certificates of Deposit 37,732,410 41,476,161 (3,743,751) (9.0)% Other Investments 1,121 3,700 (2,579) (69.7)% Less: Allowance for Investment Losses Total Investments 37,733,531 41,479,861 (3,746,330) (9.0)% Other Assets 2,527,390 2,293, , % Total Assets $ 169,658,876 $ 165,504,568 $ 4,154, % Liabilities & Equity Liabilities Share Accounts and Certificates $ 82,707,502 $ 83,370,341 $ (662,839) (0.8)% Checking Accounts 44,924,323 37,523,130 7,401, % Money Market Accounts 21,885,754 23,182,329 (1,296,575) (5.6)% IRA Accounts 2,870,451 3,039,312 (168,861) (5.6)% Total Shares 152,388, ,115,112 5,272, % Accounts Payable and Other Liabilities 2,223,802 3,507,567 (1,283,765) (36.6)% Total Liabilities 154,611, ,622,679 3,989, % Equity Regular Reserves 2,074,762 2,074, % Undivided Earnings 13,285,780 12,827, , % Unrealized Gains (Losses) on Available for Sale Securities (313,498) (19,898) (293,600) 1,475.5 % Total Equity 15,047,044 14,881, , % Total Liabilities & Equity $ 169,658,876 $ 165,504,568 $ 4,154, %

35 (in Millions) Assets vs Capital $180.0 $160.0 $159.6 $157.5 $163.1 $165.5 $169.7 $140.0 $120.0 $100.0 $80.0 $60.0 $40.0 $20.0 $12.9 $13.5 $14.5 $14.9 $15.0 $ Year Assets Equity

36 Loans (in Millions) Loan Growth $80.0 $70.0 $60.0 $93.6 $59.0 $100.5 $60.4 $99.6 $59.2 $106. $64.4 $110.3 $68.8 $50.0 $40.0 $30.0 $24.3 $29.5 $30.7 $32.9 $29.9 $20.0 $10.0 $- $7.5 $7.3 $7.2 $6.8 $6.3 $5.3 $2.8 $3.3 $2.5 $2.6 Year Auto Loans Real Estate Credit Cards Other

37 Shares (in Millions) Share Growth $160.0 $140.0 $120.0 $143.5 $141.7 $146.4 $147.1 $3.3 $3.0 $3.4 $3.4 $23.2 $27.6 $32.1 $29.5 $21.9 $2.9 $152.4 $100.0 $31.3 $31.7 $34.7 $38.0 $44.9 $80.0 $60.0 $40.0 $76.1 $76.9 $80.6 $82.5 $82.1 $20.0 $ Savings Checking Money Market Year Share Certificates IRA's

38 Allowance for Loan Loss Real Estate $ % Secured $ % Unsecured $66.9 7% Credit Cards $ % Secured Unsecured Credit Cards Real Estate

39 Executive Management Team

40 Finance Team

41 Lending Team

42 Marketing Team

43 Sales and Service Team