Chairman s Report. Brian McLeroy III Chairman, Board of Directors. Houston Texas Fire Fighters Federal Credit Union

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1 HOUSTON TEXAS FIRE FIGHTERS FEDERAL CREDIT UNION ANNUAL REPORT

2 Chairman s Report The credit union strives to meet or exceed the products and services offered by big banks and I am happy to report that we aren t far behind the tech curve. With the retirement of former President and CEO, Clint Hartmann in March, the new CEO, Steve Gilman took on the challenge and hit the ground running, so to speak. Realizing the growing technological needs of our members became priority in With the discontinuance of Debit Card Mobile Alerts, the credit union introduced a more robust solution with SecurLOCKTM Equip, a mobile application that allows more control over debit and credit card use. The app allows members to turn off their debit cards, a fantastic security feature should fraud ever be suspected on an account. The credit union website had a major facelift and was optimized to fit on all device screens. A new loan application was also released to the membership, making it more convenient to apply online and get pre-approved instantly. The credit union sustained a surge in loan volume and continued to save members money by financing with us. To meet the needs of members that sought an alternative solution to leasing, the credit union launched the R.E.D. Program. R.E.D. combines the best features of conventional vehicle financing with the benefits of leasing. By the end of 2016, the credit union had saved members more than $250,000 in monthly payments, interest and products. Community outreach and financial education continue to be top of mind for the credit union. In 2016, thanks to member and staff donations, we were able to raise over $3,800 for Texas Children s Hospital and collected a sizable amount of non-perishable food items that were donated to the Houston Food Bank. A financially focused youth workshop was also planned in the summer of However, due to a low number of members interested, it was not implemented. Plans to revamp the workshop have been outlined and scheduled for an early 2017 release. October 2016 marked the first phase of a major remodeling project to the credit union s main office. Some of the changes include a brand new lobby, teller counter and member waiting area, as well as an expansion of member bathrooms and member service offices. The building was built in 1982, it was time for a change! Your HTFFFCU family took great pride in serving you this year. We pledge not only to continue to offer products and services that meet your needs, but to also deepen the relationships we have built together and become a resource to all we serve. Brian McLeroy III Chairman, Board of Directors

3 Secretary s Report The 80th annual business meeting of the Houston Texas Fire Fighters Federal Credit Union was held at the S.P.J.S.T. Lodge on Tuesday March 24, 2015 at 7:00 p.m. The minutes of the 79th Annual Meeting held on Tuesday, March 25, 2014 were approved as printed in the annual report. The reports of the Chairman, Treasurer, Supervisory Committee and Management were also contained in the Annual Report and distributed at the meeting. Dorsey McLeroy of the Supervisory Committee reported that board incumbents Brian McLeroy, Jerry Walker and G.W. North were unopposed for election and will each serve a three year term on the board effective March, There being no unfinished business or new business the meeting was adjourned at 7:10 p.m. Jerry Walker Secretary, Board of Directors Treasurer s Report In 2015 your credit union continued its record of positive financial results. The credit union s capital ratio, a measure of financial strength, increased to 14.65% at the end of the year. This exceeds the industry average by more than 3.6%. In addition, credit union assets increased $9.1 million with loans increasing $4.0 million. On behalf of the Board of Directors, Supervisory Committee, Management and Staff, we thank you for making 2015 a successful and productive year. The Statement of Financial Condition and Results of Operations for the years ending December 31, 2014 and 2015 are provided in this Annual Report for your review. Skip North Treasurer, Board of Directors

4 Management Report The credit union strives to meet the needs of its membership. With every survey that is sent out and every comment card that is left at our branches, our management team pours over and analyzes all the data and feedback that we receive and finds ways to improve and enhance our products and services. Because of that, we have big plans for 2017, all in an effort to simplify your banking experience. We are excited about the major overhaul underway for HTFFFCU Online, our online banking system and HTFFFCU Mobile. The mobile app has been streamlined to include mobile deposit (which was previously a separate app) and the online banking system is more powerful than ever, allowing members to send money to friends and family via FirePay and to view all of their accounts using one login, amongst other robust features. We will be introducing a brand new product, Blaze Check in early Blaze Check will make car-buying even more convenient and works very similar to buying with cash which will give members the bargaining power to negotiate the best deal at a dealership. Since rewards and cash back are trending in the credit card world, plans to include a reward system to the credit union s credit card are also taking place in late As we embark on our 82nd Annual Meeting, we look ahead to Our Main Office will soon be transformed into a high-tech, enhanced member experience. And we expect to add more members with loans, credit and other financial services. Thank you for choosing Houston Texas Fire Fighters Federal Credit Union. Let s make 2017 a year to remember! Steve Gilman President & CEO and Management Team

5 Supervisory Committee Report The Supervisory Committee is responsible for the review of the overall financial operations of the Credit Union. The Committee ensures the Credit Union s internal controls are properly utilized and that the Credit Union policies are being followed. Annually, the Committee has an external audit of the financial records of the Credit Union conducted. The audit was performed by Credit Union Resources in accordance with government and audit guidelines. We are pleased to report that during 2016 no material areas of concern were found by the auditors and your credit union is considered to be in excellent financial condition. On behalf of my fellow committee members, Bruce Koger, Janice Bruce and Roger Campbell, we would like to thank the members for your continued support. Dorsey McLeroy Chairman, Supervisory Committee Loan Portfolio At a Glance 2% >1% 12% 12% 19% 17% 12% 26% Secured Loans Credit Cards Co-Maker Loans Used Auto Loans Business Loans New Auto Loans Real Estate Unsecured Loans Statistical report as of December 31, Includes delinquencies.

6 Balance Sheet As of December Assets Net Loan 136,103, ,832,916 Cash 19,354,760 23,219,645 Investments 91,519,245 86,980,366 Land 532, ,540 Net Building and Equipment 1,852,813 1,911,427 Other Assets 1,094, ,667 Total Assets $250,457, ,464,561 Liabilities and Equity Total Liabilities 2,434,309 2,974,626 Shares 77,922,430 77,419,376 Share Drafts 38,100,958 37,150,824 Term Share Certificates 37,334,649 38,480,274 Money Management 47,217,696 46,974,816 IRA 9,960,391 9,923,647 Reserves 37,487,144 36,540,998 Total Equity 248,023, ,489,935 Total Liability and Equity $250,457, ,464,561 Management and Staff Income Statement For the period Jan. 1 - Dec Income Net Loan Interest Income 7,047,248 6,962,692 Investment Income 969, ,467 Other Income 1,245,953 1,272,673 Total Income 9,262,443 8,973,832 Expenses Compensation and Benefits 4,269,917 4,035,288 Travel and Conferences 147, ,560 Office Operations 844, ,668 Education and Promotion 62,532 65,810 Professional Services 638, ,879 Provision for Loan Losses 517,442 40,000 Annual Meeting 12,000 18,000 Other Operating Expenses 1,036, ,923 Total Operating Expenses 7,528,249 6,597,128 Income From Operations 1,734,194 2,376,704 NCUSIF Impairment 0 0 (Gain)/Loss on Disposition of Assets (274) Income Before Dividends 1,734,468 2,376,652 Dividends Expense 788, ,025 Net Income $946,246 1,594,627 Alana Guerra Alice Ortega Angela Malcolm Angelica Davillier Anita Tomczak Anna Acosta Arisbeth Escorcia Beatrice Delgado Candida Rosales Chelsey McCalister Dana Burnett Elizabeth Garcia Elizabeth Guerra Elizabeth Wright Emanuel Garcia Francisco Rivera Glenda Osorto Horatiu Serban Jamie Chick- Wilkinson JoAnn De La Garza Joe Castillo John McNeel Jose Chavez Josephine Sanabria Julirey Velasquez Kay Thomas Keith Shaffer Kelli Palermo Kristen Woods Lily Liang Lori Cooke Loveless James Wilson Lyndon Romero Makisha Bourgeois Marcus Cannon Maria Lopez Maria Martinez Melinda Islas Molly Burley Paloma Diaz Pamela McIver Paris Blade Raven Casey Richard Hernandez Robin Boehm Shakerra Washington Shawna George Shelah Buxton Shirley Escobal Sonia Johnson Steve Gilman Susie Habegger Tamara Adams Theresa Collins Tina Patke-Chervenka Tom Rowlands Torrance Harris Tyler Clay Veronica Williams Victoria Bernal Wilson Tsui Board of Directors Employee name highlighted in red was named 2016 s Employee of the Year Supervisory Committee Brian McLeroy III Chairman G.W. North Treasurer Rick Flanagan Director Dorsey McLeroy Chairman Bruce Koger Member Janice Bruce Member Roger Campbell Vice Chairman Jerry E. Walker Secretary John A. Burton Director Greg Collins Director Ed Hauck Jr. Roger Campbell Director Member annual report 2016 David Lantrip Director Thank you for another great year!