GPOFCU Annual Membership Meeting Agenda

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2 GPOFCU Annual Membership Meeting Agenda April 10, :00 pm Member Sign-in & Refreshments Welcome & Call to Order / Ascertainment of Quorum Approval of March 10, 2016 Annual Meeting Minutes Remarks from GPO Director s Office Board Chair s Report President/CEO s Greeting Treasurer s Report Supervisory Committee Report Nominating Committee Report & Election Results Old Business & New Business Door Prize Drawings Adjournment A budget is telling your money where to go instead of wondering where it went. GPO Federal Credit Union 1

3 BOARD OF DIRECTORS Anthony J. Tony Zagami Chair Robert Freeman Vice Chair Rose Bates Hood Secretary Charles Mbonu Treasurer Azalea O. Albritton Director Diane Atkins Director Pamela Metts Director MANAGEMENT TEAM Timothy L. Anderson, President/CEO Marcia Dixon, Director of Growth Initiatives Carla Baker, Director of Finance & Operations Jocelyn Audet, Operations Manager Save first. Spend what is left after saving! Warren Buffet SUPERVISORY COMMITTEE Janice Oloto Chair David McGhee Secretary Thien-Nga Gina Nguyen MISSION STATEMENT To deliver exceptional service, built on trust, while meeting the primary financial needs of our members. BOARD CHAIR & PRESIDENT/CEO S REPORT 2016 was another rewarding year for the credit union. Our membership increased steadily through organic growth, surpassing a milestone of 4,000 members. While over the years we have highlighted asset growth and other successes, adding new members to the credit union is a significant sign of a flourishing institution. Unlike banks, credit union members are owners. To paraphrase economist Milton Friedman, our sole responsibility at the Government Printing Office Federal Credit Union (GPOFCU) is the financial well-being of our owners. We may not be as big as the mega-banks and other financial institutions; however, we deliver the kind of niche services and access our members demand. We take what our owners say seriously, and will always put them first. As you are aware, we opened our new satellite branch in GPO s first-floor Bookstore at the end of This branch has been a long time coming. A special thanks to agency Director Davita Vance-Cooks and her staff for bringing this to fruition. Now that the branch has been open a full year, I can report to you that having the location there at the building entrance has enabled us to provide expedient service to the GPO employees, their families and retirees. It has also allowed us to reach out to the unbanked in the Washington D.C. community more effectively, ensuring them of a convenient location to do their banking. While the credit union has experienced record asset growth over the last two years, our goal this year is to become more efficient by streamlining processes and focusing on enhanced member service and maximizing our electronic banking services. Membership has increased progressively the last three years; however, we know we can do more to make banking easier through online account opening, remote deposit capture (making deposits through your mobile phone) and other electronic offerings. By opening the new branch and growing the infrastructure, the credit union strategically expended some of our stockpile of capital which impacted the bottom line. Additionally, we had to write off some long-standing toxic loans, which further affected net income. Even with this, we believe it better positions us to bring on new loans with our increased membership base. Net income for the year was down $925,000. Our capital (overall net worth), is at a very healthy 12.27%. Financial institutions are considered well capitalized by the Federal regulators at 7%. As you can see, we almost double what is required to be well capitalized. Looking forward in 2017 and 2018, we remain excited about the opportunities to continue to grow while offering financial choices and lifetime solutions to the unbanked throughout the Washington, DC area. Our members expect excellence from us, and we intend to deliver. Finally, we will continue to live the credit union philosophy of people helping people and providing the kinds of financial products and services our members have come to expect. Moreover, with our collective efforts, and working together, we are confident that our credit union will continue to grow and prosper. Our Federal regulator, the National Credit Union Administration (NCUA) and external auditor, DeLeon & Stang, seem to agree with us as they once again gave us good reviews and ratings during our yearly examinations. On behalf of the board of directors, management and staff, we want to say thank you. As we often convey, this is your credit union. We are very proud of our success, and without you, none of what we celebrate would be possible. Timothy L. Anderson!!!!!! Anthony J Tony Zagami President and Chief Executive Officer!!!! Board Chair 2 GPO Federal Credit Union

4 MINUTES OF THE ANNUAL MEMBERSHIP MEETING ON M ARCH 10, 2016 GPO CARL HAYDEN ROOM I. CALL TO ORDER / ASCERTAINMENT OF A QUORUM The GPOFCU Annual Meeting was called to order by the Board Chair Anthony J. Tony Zagami at 2:10 pm. Credit Union members present constituted a quorum. The following Directors were present: Azalea Albritton, Diane Atkins, Robert Freeman, Rose Bates Hood, Antoinette Kaloz, Charles Mbonu, and Anthony Zagami. II. REMARKS FROM GPO DIRECTOR By Davita Vance-Cooks Board Chair Zagami introduced GPO Director Davita Vance-Cooks who thanked the Credit Union for its support and bringing two branches to serve GPO employees. She praised the Credit Union staff, Board of Directors and volunteers for providing all their services and friendliness to the GPO communities. III. BOARD CHAIR S REMARKS - By Anthony J. Tony Zagami Board Chair Zagami introduced himself, Board of Directors, and the Volunteer Supervisory Committee to the members. Mr. Zagami encourage members to read the Annual Report that is a snapshot of the credit union in IV. APPROVAL OF MARCH 12, 2015 ANNUAL MEETING MINUTES Recorded by Secretary Antoinette Toni Kaloz Directors Azalea Albritton and Rose Bates Hood made the motion to approve the minutes of the March 12, 2015 Annual Meeting as printed. The motion passed unanimously by a show of hands. V. PRESIDENT/CEO S GREETING & REMARKS By Timothy Anderson CEO Anderson welcomed all the members and described the good partnership between GPO, the Credit Union, and its members. It was a good growth year and he thanked the members and agency for their support and collective effort from all to promote the growth. He pointed out some of the accomplishments made by the credit union in the last year: New GPO branch is helping to continue to serve members 2.2 million in assets growth up to 40 million. Mr. Anderson introduced the following Credit Union team and staff to the members and guests: Marcia Dixon, Director of Growth Initiatives; Carla Baker, Director of Finance and Operations; LaTonya Allen; Jocelyn Audet; Sharece Baker; Amy Carroll; Courtney Frazier; Joyce Jackson; Tarlika Patel; Danielle Jones Thompson; Veronica White; and Ebony Stapleton (not present). Business Development Specialist Janet Miles was also present. Please refer to the 2015 Annual Report for further details and remarks from the Chairman and CEO. VI. REPORT OF THE TREASURER By Azalea Albritton Treasurer Albritton presented the Treasurer s Report reporting on the following points: Key ratios remain strong Assets grew to 40 million Loans grew to 20 million Deposits grew, while income was down, but remains strong Current projects include new servers and credit card chips. Please refer to the Annual Report in the program for further details. Chair Zagami remarked on the Credit Union s capitalization and its importance. He thanked the Board and CU staff on their help in this accomplishment. VII. REPORT OF THE SUPERVISORY COMMITTEE By Chair Janice Oloto Supervisory Committee Chair Oloto introduced the following members of the Supervisory Committee to the members: Thien-Nga Gina Nguyen and David McGhee. David McGhee gave the report in the program. VIII. REPORT OF THE NOMINATING COMMITTEE & ELECTION RESULTS By Chair Charles Mbonu Nominating Committee Chair Charles Mbonu submitted the following three incumbents for the upcoming three-year term vacancies for the Board of Directors: Anthony J. Zagami, Diane Atkins and Rose Bates Hood. They were all re-elected by acclamation. IX. OLD BUSINESS A member present asked about transferring money from one account to another. The CEO said he would speak to him privately after the meeting. X. NEW BUSINESS Member Lisa Lewis from GPO Customer Service gave the Credit Union an A+ for member service. XI. PRESENTATION OF AWARDS Wallace McDade was presented with a plaque by Supervisory Committee Chair Janice Oloto, Board Chair Tony Zagami, and CEO Tim Anderson for his 20 years of service as a GPOFCU volunteer on the Supervisory Committee. Mr. McDade thanked all. GPO Federal Credit Union 3

5 2015 MINUTES, CONTINUED CEO Tim Anderson honored the following three credit union employees with awards for 10 years of service: Carla Baker, Veronica White, and Ebony Stapleton. Mr. Anderson also thanked Marcia Dixon for putting together a successful membership meeting. XII. DRAWING OF DOOR PRIZES Marcia Dixon conducted the door prize drawings of four $25 Visa Gift Cards for the members. XIII. ADJOURNMENT OF MEETING Board Chair Zagami thanked all for attending and adjourned the meeting. Directors Rose Bates Hood and Robert Freeman motioned and seconded to adjourn the Annual Meeting. The meeting adjourned at 2:45 pm. Anthony J. Tony Zagami, Board Chair Rose Bates Hood, Secretary A penny saved is a penny earned. Benjamin Franklin SUPERVISORY COMMITTEE REPORT Thank you, Members, for trusting your savings to GPOFCU. Credit Union products are good and make sound economic sense. Our Committee strives to ensure practices and procedures that safeguard your assets. Committee members in 2016 were Gina Nguyen, David McGhee and Janice Oloto. We perform a number of reviews as part of our regulatory responsibilities such as surprise cash counts, ATM replenishment reviews, closed account verifications, and loan reviews. Through these reviews, we learn what s working well and what can be improved. Then we present our findings to the Board of Directors for their consideration. Unlike the reviews by our Committee, the annual audit, performed by an accounting firm, is an in-depth exam. DeLeon & Stang reported favorable findings overall for year- end June 30. Besides the exam, the firm performed a negative verification of accounts in the fall, for which members were directed to respond only if the information in their account statements was incorrect. DeLeon & Stang has been selected again for a new 3-year engagement. Concluding this report from the Supervisory Committee, we ll also mention that on-going training has been beneficial. For example, at a conference, we learned that having a charter is a best practice for Supervisory Committees. It spurred us to develop one of own. NOMINATING COMMITTEE REPORT In accordance with the Credit Union's Bylaws, a Nominating Committee was appointed to select nominees for two vacancies on the Board of Directors, which were created as a result of expiring terms. The Committee submitted the following names to fill the new terms: Charles Mbonu (incumbent), Pamela Metts (incumbent), Thien-Nga Gina Nguyen and Shirley A. Stewart-Tibbs. Since there were four nominees for two positions, a ballot election was necessary. The Credit Union hired CPA firm CliftonLarsonAllen LLP as tellers of the election. Election results will be announced to members at the April 10, 2017 Annual Membership Meeting. Respectfully submitted, Diane Atkins, Nominating Committee Chair TREASURER S REPORT Upon closing out another year, we are very proud to report that your credit union is fiscally sound, with strong capital (net worth) and a growing membership base. Over the years, we have consistently provided financial choices and lifetime solutions to our members and community partners, while effectively and prudently managing the credit union s financial statements. As we continue to grow and expand, we will always measure the growth with sound financial oversight. At the end of 2016, GPOFCU s net worth was 12.27%, which more than exceeds the amount required by our Federal regulator, the National Credit Union Administration (NCUA). Key financial results as of December 31, 2016: Assets remained steady at approximately $37 million Loans remained healthy at just under $20 million Shares (deposits) continue to grow to over $32 million Loan to Share ratio remained steady at 60.83% Capital remains strong at 12.27% Net income was down approximately $925,000 On behalf of the Board of Directors and management, we are committed to unassailable financial management. As we increase our footprint throughout the community, we will continue to monitor our net worth to ensure that growth is safe and sustainable. Please take a moment to review the financial statements (balance sheet and income statement). If you have any questions, please contact our CEO, Timothy L. Anderson. Janice Oloto, Supervisory Committee Chair 4 GPO Federal Credit Union

6 STATEMENT OF FINANCIAL C ONDITION S E Q U O I A C L U B STATEMENT OF I NCOME as of December 31, 2015 and 2016 for the period ending December 31, 2015 and 2016 ASSETS: INCOME: LOANS: Lines of Credit & Credit Card Loans $ 2,125, $ 2,204, Interest on Loans $ 1,463, $ 1,528, New Autos 507, , (Less) Interest Refund - - Used Autos 9,461, ,761, Income from Investments 226, , Real Estate Loans to Members 1,768, ,866, Other Operating Income 772, , Loans Fully Secured by Shares 60, , All Other Loans to Members 5,579, ,515, Total Gross Income $ 2,462, $ 2,392, TOTAL LOANS TO MEMBERS $ 19,502, $ 19,958, Less: Allowance for Loan Losses (619,014.55) (282,411.2) Employee Compensation 739, , Net Loans Outstanding $ 18,883, $ 19,676, Employee Benefits 203, , RECEIVABLES: Travel & Conference 59, , Receivables 2,018, ,998, Association Dues 17, , CASH: Office Occupancy Expense - - Cash (Cash on Hand, Deposit) 987, , Office Operating Expense 612, , INVESTMENTS: Education & Promotional Expense 22, , Federal Agency Securities 6, , Loan Servicing Expense 141, , Certificate of Deposits 14,162, ,224, Professional & Outside Services 186, , Premium & Discounts (67,890.66) (50,055.83) Provision for Loan Losses 866, , Deposits in Mid-Atlantic Corp FCU 179, , Member Insurance - - All Other Investments 12,600 16, Operating Fees 7, , TOTAL INVESTMENTS $ 14,292, $ 16,373, Interest on Borrowed Money 13, , OTHER ASSETS: Annual Events Expense , Land & Building (Net Depreciation) $ - $ - Miscellaneous Expenses 236, , Prepaids 76, , Fixed Assets (Net Depreciation) 90, , Operating Expense Before Dividends $ 3,105, $ 2,336, NCUSIF Capital Deposit 292, , All Other Assets 108, , Net Operating Income Before Dividends $ (642,387.46) $ 55, TOTAL ASSETS $ 36,749, $ 39,630, LIABILITIES & EQUITY: Gain (Loss) on Investment - - LIABILITIES: Gain (Loss) on Disposition of Assets (17,125.42) 1, Notes Payable $ - $ 1,244, Other Non-Operating Income/(Expense) - - Accounts Payable 42, (77,515.65) Accrued Dividends 55, , Total Non-Operating Gain & Losses (17,125.42) 1, Withholding Taxes Payable 4, , Accrued Expenses 73, , Net Operating Income Before Dividends (659,512.88) 56, All Other Liabilities - - TOTAL LIABILITIES $ 175, $ 1,241, Dividends 266, , SHARES: Regular Share Accounts $ 14,507, $ 14,994, Net Income (Loss) $ (925,850.34) $ (206,601.51) Share Draft Accounts 4,317, ,252, Share Certificate Accounts 8,928, ,520, IRA/Keogh Accounts 1,307, ,374, Non-member Certificates 2,794, ,809, All Other Share Accounts 208, TOTAL SHARES $ 32,063, $ 32,952, RESERVES & EQUITY Regular Reserves $ 276, $ 276, Accumulated Unrealized Gain/Losses on Available for Sale Securities Undivided Earnings 4,981, ,268, Net Income (746,587.18) (108,402.92) TOTAL LIABILITIES & EQUITY $36,749, $39,630, The best way to teach your children how to handle money is to be a good example. GPO Federal Credit Union 5

7 Member Perspective An Interview with Davita Vance-Cooks Director, U.S. Government Publishing Office What are you most proud of during your tenure at GPO? I am proud to be a part of GPO s transformation from a print-centric facility to a publishing-centric operation, and having worked with Congress to change the statute that reflects our modern approach as an agency. The change of my title from Public Printer to Director also reflects this. GPO s core has been printing, but the world changes, and I am proud to lead the agency s digital initiatives. GPOFCU has served GPO employees, families and retirees for 82 years. What has it meant for you, the head of the agency, to be a member of your agency s credit union? It is wonderful to be a member of GPOFCU, and to benefit from the convenience and personal service that the credit union provides. I, and most of the executive team who are also GPOFCU members, can relate to what the GPO employees experience in their credit union relationship because we are also members. Is there anything you would like to see the credit union doing for GPO members that we are not already offering? The credit union is already providing a broad array of beneficial member services, such as scholarships, emergency loans, financial education, and of course, personal service. During the 2013 government shutdown, the credit union stepped up to the plate entirely and supported GPO employees. We want to encourage employees to continue to utilize their credit union, especially with money management and credit needs, and assistance with tax issues. really is a convenience for employees, and our retirees who come to the building. By reaching out to the community, the credit union has been able to develop more and better services that benefit GPO employees, including enhanced online services and mobile banking. With the new administration change and your eventual departure from GPO, are there any particular initiatives you would encourage your successor to focus on relative to the credit union? The credit union is part of the GPO culture. Even with GPO s reduction in staff due to technological productivity and efficiency, the workforce will still need the financial services the credit union provides. As new tenants utilize GPO space, their employees will also look to the credit union for convenient financial services. I am confident the credit union will continue to serve the core financial needs of this agency s employees, retirees, and their family members. I trust that my successor will enjoy the same cooperative relationship I have enjoyed with GPOFCU s board, management and staff. Has the credit union s charter expansion, allowing it to provide affordable financial services to individuals in the DC community, impacted GPO (the agency) in any way? We hear many compliments about the credit union s satellite branch on the 1st floor in the GPO Bookstore. We are glad to have built the office for the credit union as it L-R: GPOFCU Board Chair Anthony J. Tony Zagami, GPO Deputy Director Jim Bradley, GPO Director Davita Vance-Cooks, GPOFCU BD/Marketing Janet Miles, GPOFCU President/CEO Timothy Anderson. 6 GPO Federal Credit Union

8 In Your Community GPOFCU s innovative partnerships with community organizations deliver money management and affordable financial services to Washington, DC s underbanked and underserved individuals. Right: GPOFCU receives Building Stronger Communities Award from Edgewood/Brookland Family Support Collaborative. (L-R) Kim J. Bright, E/BFSC Board President; Azalea Albritton, GPOFCU Board Member; Timothy L. Anderson, GPOFCU President/CEO; Marcia Dixon, GPOFCU Director of Growth Initiatives; Janet Miles, GPOFCU BD/Marketing & Financial Educator. Friendship Public Charter Schools Below: GPOFCU s Lending Officer, LaTonya Allen, educates students and parents at Friendship Public Charter School Southeast on the importance of saving. Above: DC Central Kitchen s Culinary Job Training Class 8 from Central Union Mission completed 10 hours of financial management training. (L-R): Michael Williams, Jr.; Mark Stoney; Janet Miles, GPOFCU Financial Education Instructor; Yahya Abdussamadi; Auturo Prailow; William Martinez; Darryl Lane. Left: East River Family Supporting Collaborative teamed with GPOFCU to offer hands-on financial management workshops to clients in DC s Ward 7. GPO Federal Credit Union 7

9 Thank you GPOFCU Members for Sharing the Love! Member donations supporting financial literacy made it happen! GPOFCU earned the 2016 Financial Literacy Month Credit Union of the Year Award from the MD/DC Credit Union Foundation. (Below) Veronica White and Marcia Dixon show off GPOFCU s Golden Pig statue! Officer Charlie Beard (above) and Carol Parker with GPOFCU President/CEO Tim Anderson (right), were winners in our 2016 Share the Love membership campaigns. Thank you for encouraging your friends and family to become part of our credit union family. Banking is Easy with Our Mobile App Download our Mobile App for iphone and Android. Visit and select Online Banking for the App, or to enroll first in Online Banking. Contact Us Street Address: 732 North Capitol Street, NW, 8th Floor Washington, DC Mailing Address: PO Box Washington, DC Main Phone: Toll Free: Fax: " Day 'N' Night Teller:!! Website: Branch Hours 8th Floor:!!! Monday, Weds & Friday: 8:00 am to 2:30 pm GPO Payday : " " 8:00 am to 5:00 pm (every other Monday) Tuesday: " " 7:30 am to 3:30 pm Thursday: " " 9:00 am to 3:30 pm 1st Floor (at GPO Bookstore): Monday thru Friday:! 8:30 am to 2:30 pm ATMs Our 24-hour ATM is available at 732 N. Capitol Street, NW for deposits and cash withdrawals. Locate surcharge-free Allpoint ATMs at 8 Federally Insured by NCUA GPO Federal Credit Union