2017 ANNUAL REPORT UNITY ONE CREDIT UNION. Erica Briones 12 years of service. Cynthia Huerta-Aguirre 13 years of service

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1 2017 ANNUAL REPORT UNITY ONE CREDIT UNION Erica Briones 12 years of service Cynthia Huerta-Aguirre 13 years of service

2 President & Chairman s Report As a financial cooperative, Unity One Credit Union exists for the sole benefit of its member-owners. We believe that it is this connection with our members that makes us strong, as we invest in and embrace our future. As we close out 2017, we begin our 91st year of business. In 1927, a group of railway clerks with the Great Northern Railroad in Minnesota pooled their money together and formed the credit union that eventually became Unity One Credit Union. This small group of employees recognized the need to provide an alternative to for-profit financial institutions that wouldn t make loans to people of average means and charged high rates and fees. Throughout the past 90 years, we have grown and prospered through good times and bad (the Great Depression began just two short years after the credit union was formed) all thanks to the support of our member-owners. Although Unity One CU has grown and diversified over the years, we owe a special debt of gratitude to our railroad roots and our ties to BNSF Railway. From our humble beginnings, we now serve members in all 50 states, and we have helped tens of thousands of families earn more, save more and fulfill their financial dreams. We continue to strive to promote thrift and provide low-cost loans to our members, exemplifying the credit union philosophy of people helping people. Some highlights from 2017: We ended the year at over $243,000,000 in assets. We had an increase in membership by almost 4 percent--well above our peers. We ended the year a net worth ratio of 7.62% and are considered well-capitalized. We continued to be a top lender, with almost eight percent growth! We opened a mini, but full-service, branch at the Keller ISD Center for Advanced Technology for members in Watauga and west Keller. A top concern of ours is to help prevent fraud from occurring. We issued EMV chip cards to debit card users, and we ve deployed text alerts to notify members of potential fraud. We enhanced our fraud protection to keep you cyber safe. With proactive account monitoring we can detect suspicious activity and notify you quickly to prevent losses. In closing, we d like to recognize the efforts and contributions of the volunteer Board of Directors and Audit/Supervisory Committee members over the past 90 years who helped guide and nurture your credit union. They have put in countless hours without pay representing you, our members and helping Unity One Credit Union to become the strong, vibrant institution that we can all be proud of. VINCENT M. ACCARDO Board Chairman GARY R. WILLIAMS President/CEO

3 Audit Committee s Report The Audit Committee is made up of volunteers who are appointed by the credit union s Board of Directors. The committee s responsibilities are to ensure that: 1) member funds are protected, 2) financial records and operations are in order and 3) an effective set of internal controls is in place. Our committee performs and participates in audits and reviews throughout the year to meet these objectives. During 2017, in addition to our own reviews, we participated in the: Annual independent review of agreed upon procedures for 2017, which was completed by the certified public accounting firm of RSM McGladrey Asset/Liability Management Service review performed by Catalyst Strategic Solutions State Examination performed by the State of Texas Credit Union Department (TCUD) and submitted to Unity One Credit Union and the Credit Union Commissioner Bank Secrecy Act compliance audit which was completed by Credit Union Resources, Inc. Fidelity and Internal Controls Risk Management Analyses performed by CUNA Mutual Group ACH audit which was completed by Credit Union Resources, Inc. Review of the credit union s investment policy Based on the reviews, we are confident that the policies, programs and security procedures of Unity One Credit Union are sound. I would like to thank my fellow committee members, Jennifer Dodd and Sonja Grigsby. Please remember that the Audit Committee is your link to the Credit Union. If you have any concerns, please feel free to contact any of us. MARGARET ROSZAK Audit Committee Chair I AM UNITY ONE Sandra is my work valentine because she is kind, sweet and positive. Sandra Williams 11 years of service

4 Beth is always so quick to respond. Thanks for having patience. Officials & Management Board of Directors Terms of Office Vincent Accardo, Chairman Gregory Patient, Vice Chairman Patrick Forsyth, Secretary Mary Diggs Richard Ebel Dale Maristuen Timothy Savoy William Rupp Audit Committee Margaret Roszak, Chairman Jennifer Dodd Sonja Grigsby Beth Peters 25 years of service Senior Management Team Gary Williams, President & CEO Scott Ward, Executive Vice President & COO Erayne Gee Hill, Vice President of Marketing Eric Hohler, Vice President of Finance Beth Peters, Vice President of Lending Nathan Webb, Vice President of Technology Jackie Wisneski, Vice President of Retail Operations Myke is good about helping out when we are busy. Thanks for being two people, especially on Fridays. Changes in Bylaws Addition of Field of Membership: None Addition of Select Employer Groups: None Addition of Locations: Keller Center for Advanced Learning (KCAL) 201 Bursey Rd., Keller, TX Myke Schicker 5 years of service Addition of Management: None Member Services Added: EMV debit cards Enhanced fraud protection (text alerts) ProPay (online loan payments) Certified financial advisors on staff

5 Statement of Financial Condition ASSETS Personal Loans $ 136,846, $ 124,232, Visa Loans $ 7,467, $ 7,522, Real Estate Loans $ 59,251, $ 57,147, Reserves $ (1,669,688.70) $ (1,689,938.11) Total Loans $ 201,895, $ 187,212, Cash $ 777, $ 965, NCUSIF Capitalization $ 2,142, $ 1,996, Investments $ 21,628, $ 24,292, Total Investments $ 23,771, $ 26,289, Fixed Assets $ 7,143, $ 7,462, Other Assets/Receivables $ 9,548, $ 8,583, Total Other Assets $ 16,691, $ 16,045, TOTAL ASSETS $ 243,135, $ 230,513, LIABILITIES & NET WORTH Primary Savings $ 62,325, $ 57,455, Other Savings $ 10,464, $ 10,533, Money Market $ 72,292, $ 72,202, Checking $ 51,902, $ 48,686, Certificates $ 25,416, $ 21,915, Dividends Accrued $ 39, $ 31, Total Liabilities to Members $ 222,440, $ 210,824, Payables $ 285, $ 252, Other Liabilities $ 2,446, $ 1,743, Total Other Liabilities $ 2,732, $ 1,995, Reserves $ 3,879, $ 3,879, Unrealized Gain/Loss on Investments $ (575,513.82) $ (567,326.38) Undivided Earnings $ 14,658, $ 14,381, Net Worth $ 17,962, $ 17,693, TOTAL LIABILITIES & NET WORTH $ 243,135, $ 230,513,378.56

6 INCOME Statement of Income & Expenses Personal Loans $ 6,105, $ 5,633, Visa Loans $ 617, $ 620, Real Estate Loans $ 3,203, $ 3,307, Investments $ 294, $ 394, Services $ 2,531, $ 2,472, Total Operating Income $ 12,752, $ 12,427, Less Cost of Savings $ 697, $ 610, Gross Operating Margin $ 12,054, $ 11,816, Office Expense $ 2,458, $ 2,405, Compensations & Benefits $ 5,091, $ 4,719, Marketing $ 481, $ 450, Loan Servicing $ 445, $ 467, Professional & Outside Expense $ 1,488, $ 1,311, Miscellaneous Expense $ 329, $ 289, Total Operating Expense $ 10,294, $ 9,643, Total Operating Income $ 1,759, $ 2,172, Provision for Loan Losses $ 1,363, $ 1,560, Net Operating Income $ 396, $ 611, Gain/Loss on Investments $ (42,599.10) $ (200.00) Gain/Loss on Disposition of Assets $ 0.00 $ 0.00 Non-Operating Income $ (77,105.46) $ (141,131.41) NET INCOME $ 277, $ 470, Membership Size , , , , , , ,441

7 Sources of Revenue Once again, Priscilla came to the rescue. You don t even have to call her name. She ll be there. Loan Interest $9,560, Investment Income $394, Other $2,472, Priscilla Garcia 14 years of service Uses of Revenue Neisha is always nice, friendly and professional when we call with a question. Always consistent. Thank you! Neisha Williams 6 years of service Operating Expense $10,294, Other $1,363, Dividend Expense $697,853.22

8 6701 Burlington Blvd. Fort Worth, TX Keller Pkwy. Ste. 100 Keller, TX Mid Cities Blvd. North Richland Hills, TX North Tarrant Pkwy. Fort Worth, TX North Main St. Fort Worth, TX Bursey Rd. Keller, TX Kansas Ave. Kansas City, KS Beam Ave. Maplewood, MN S. Robert Trail, Ste. 100 Inver Grove Heights, MN 55077