2016 ANNUAL REPORT 60 YEARS AND JUST GETTING STARTED

VACATIONLAND FEDERAL CREDIT UNION

Federally insured by NCUA CONTENTS 1 Corporate Information 2 About VacationLand Federal Credit Union 4 The Governing Bodies of Our Credit Union 6 Chairman’s Message 7 Chief Executive Officer’s Message 8 Financial Highlights 9 Chief Financial Officer’s Message 10 Board Treasurer’s Message 11 60 Years In Erie County

PRIVACY POLICY The Privacy Policy of VacationLand Federal Credit Union describes how we safeguard our members’ financial privacy.2 AnnualYour financial Report 2016privacy is our priority. For more information, visit us at www.vlfcu.org or call 419.625.9025. VacationLand Federal Credit Union CORPORATE INFORMATION

VacationLand Federal Credit Union (VLFCU) was founded in 1956 by employees With $202 million in assets, VacationLand Federal Credit Union, headquartered in of the Sandusky, Ohio General Motors Plant. In 2001, VLFCU expanded its field of Sandusky, Ohio serves over 18,100 members, businesses and organizations at five membership to include anyone who lives, works, and worships, attends school or has branch offices and ten ATMs in the cities of Sandusky, Huron, Norwalk and Vermilion. a business or organization in Erie County, Ohio. We serve our members at over 5,400 CO-OP Shared Branches and at over 24,000 In 2010, VacationLand Federal Credit Union extended its membership into Huron MoneyPass and over 5,000 Alliance One surcharge-free ATM locations in the United County, Ohio by merging with School Employees Federal Credit Union (SEFCU) States. Through 24-hour online banking, Remote Deposit Capture and CU*Talk to include employees of the Boards of Education who work in Huron County and Telephone Account Access, we serve members wherever they are. employees of the Board of Education of EHOVE Joint Vocational School in Erie County. VacationLand Federal Credit Union is a member of Corporate One Federal Credit Today, VacationLand Federal Credit Union is a member-owned, not-for-profit Union, National Credit Union Administration’s (NCUA) Central Liquidity Facility, Federal cooperative committed to being the lifetime financial institution of its members, by Reserve Bank of Cleveland’s Discount Window and the Federal Home Loan Bank of providing services at lower or no fees, loans with lower rates plus deposit products Cincinnati. VacationLand Federal Credit Union is an Equal Opportunity Employer and with higher dividend rates. an Equal Housing Lender.

The Credit Union offers its members a full suite of financial products including VacationLand Federal Credit Union received Low-Income Designation through mortgage, home equity, consumer, student and credit card loans and a wide array of the NCUA, providing benefits to VacationLand to help serve members who have savings, checking, money market and certificate deposit products. challenges accessing financial products and services. Low-Income Designation benefits include: The Credit Union supports community employment opportunities by funding local ■■ Accepting non-member deposits from any source small businesses. Business loan products include: equipment, auto, truck, lines of ■■ A gateway to community development financial institution (CDFI) certification credit and commercial real estate loans. ■■ Opportunities to apply for grants and low-interest loans

March of Dimes VLFCU Team at Cedar Point

INSURED DEPOSITS CORPORATE HEADQUARTERS Member depository accounts are insured up to $500,000. The VacationLand Federal Credit Union first $250,000 of insurance is provided by NCUA’s National Credit 2911 Hayes Avenue Union Share Insurance Fund while the second $250,000 is made Sandusky, Ohio 44870 available through private insurance from Excess Share Insurance Telephone: 419.625.9025 Company, paid for by VacationLand Federal Credit Union. Toll Free 800.691.9299

ANNUAL MEETING INDEPENDENT AUDITORS The Annual Meeting of the Credit Union’s owners will be held Doeren Mayhew, CPAs and Advisors at 8:00 A.M. on Wednesday, March 15, 2017 at our Corporate 305 West Big Beaver Road Headquarters, 2911 Hayes Avenue, Sandusky, Ohio. Troy, Michigan 48084

VacationLand Federal Credit Union Annual Report 2016 1 ABOUT VACATIONLAND FEDERAL CREDIT UNION

VacationLand Federal Credit Union is much more than a place for banking. We live and work in northern Ohio, and we’re dedicated to helping our members and our communities prosper and thrive. Every member of VLFCU is part of our family. We care about you and your well- being instead of the bottom line.

When you become a member, you become a shareholder of VacationLand Federal Credit Union. We’ll work for you as we work with you to manage your finances, invest in a new home or business, or save for retirement. Working together, we can all succeed.

OUR VISION To be our members’ chosen lifetime financial partner and to improve our communities for future generations.

OUR MISSION Guided by our core values, we exist as a not-for-profit cooperative to serve and surpass by providing value and financial freedom.

THE VLFCU DIFFERENCE Many people may not know what makes VacationLand Federal Credit Union different from other financial institutions. Here are just a few ways that demonstrate our uniqueness:

WE ARE MEMBER-OWNED As a member-owner, regardless how much you WE ARE NOT-FOR-PROFIT save or borrow, you determine who serves on We are out to protect your wallet, not fill our the Board of Directors. You have one vote for own! We return profits to you, the members, in each open Board of Director seat. Also, as a the form of lower loan rates, higher dividend member-owner, annual meetings are open to rates, and low or no fees for services. you. We encourage you to attend.

WE ARE A COOPERATIVE WE ARE VOLUNTEER DRIVEN Cooperatives pool resources for the Each member of our Board of Directors is common good. In like fashion, depositors of an unpaid volunteer you have elected to VacationLand Federal Credit Union pool funds work in your best interest. Directors serve to lend to one another. Through our structure on Asset/Liability Management, By-Laws, and operation, credit unions carry out the credit Policy, Facilities, Marketing and Nominating union philosophy of “people helping people.” committees, assisting management in making At VacationLand Federal Credit Union, you’re decisions on how to improve member products, not just an account number—you’re a member service and operational efficiencies. helping other members.

Put another way, VacationLand Federal Credit Union is different. We are not a bank. We’re not a payday lender. We are a low cost financial institution that you will want to be affiliated with for a lifetime. We appreciate the opportunity to serve you, and we value your membership. If you have experienced the VacationLand Federal Credit Union difference, please encourage your family and friends to discover the benefits of membership.

2 Annual Report 2016 VacationLand Federal Credit Union IN 2016 VLFCU PROVIDED DONATIONS TOTALING $ OVERAND AN ADDITIONAL $3,000 FOR HIGH SCHOOL2 SCHOLARSHIPS8K

VLFCU was represented by employees and their families at the Castalia Cold Creek Festival Parade GOVERNING BODIES OF THE CREDIT UNION THE BOARD OF DIRECTORS The 2016 Board of Directors is comprised of seven volunteers, elected by you, the members, who are responsible for the governance, direction and control of the affairs of VacationLand Federal Credit Union in accordance with National Credit Union Administration rules and regulations and sound business practices. The Board of Directors dedicates its time and talent to make VacationLand Federal Credit Union a premier credit union. It delegates the day-to-day activities through policies to Senior Management of the credit union. Directors serve for a term of three years with terms expiring at the end of each annual meeting. The Director positions expire as follows: three Director Positions expire in one year and two Director Positions in each of the succeeding two years. Monthly meetings are held by the Board of Directors to conduct the business of the credit union by reviewing its performance and policies. Once per year the Board of Directors also meets with Senior Management for a full day session to develop the three-year strategic plan. Board of Directors: Term Expiration and Committee Membership: Board of Director Committees: Jude Hammond: Chairman - 2019 1 2 5 1 Asset/Liability Management Jan Sadoski: Vice Chairman - 2018 5 2 By-Laws Marcia Renande: Secretary - 2017 2 4 3 Facilities Tracy Luc: Treasurer - 2018 1 4 Marketing Joel Hassinger: Director - 2019 1 3 5 Nominating Christine Giardina: Director - 2017 1 6 Policy Martha Thompson: Director - 2018

SUPERVISORY COMMITTEE The Supervisory Committee consists of members appointed by the Board of Directors Just like the Board of Directors, the Supervisory Committee also holds monthly to serve one to three year terms. These volunteers are responsible for assuring the meetings to, among other things, review internal audit services, internal controls safety of the credit union’s assets and deposits, the soundness of management and and risk management processes, and examinations by regulatory agencies and the compliance with various financial and regulatory requirements. independent audit firm. In fulfilling these responsibilities, the Supervisory Committee recommends to the A representative of the Supervisory Committee attends the monthly Board of Directors Board of Directors for ratification the appointment of an independent audit firm to meetings and shares their findings. To date, the Supervisory Committee has reported annually examine the financial statements of the credit union. that, in their opinion, VacationLand Federal Credit Union has operated in a fiscally safe and sound manner and, in all material aspects, in accordance with applicable An audit of the 2015 financial statements was conducted by Doeren Mayhew CPAs and accounting, federal, state, and NCUA regulations. Advisors. The audit report stated that VacationLand Federal Credit Union’s financial statements present fairly, in all material aspects, our statements of financial position, 2016 Supervisory Committee members are: William Stauder, Theresa Barylski, results of operations and cash flows. The audit report for 2016 will be available on Christopher Palmer, Lynn Sartor and Jacquelyn Streng. We are hopeful that 2017 will March 15, 2017 and may be requested from: be another good year for VacationLand Federal Credit Union as we all work together to serve you, our members. Mitchell J. Fallis, CPA, CGMA, MBA, CCUIP Chief Financial Officer William Stauder 2911 Hayes Avenue • Sandusky, Ohio 44870 • 419.609.2718 Chairman The National Credit Union Association also conducts an annual examination of the records, policies, practices and the application of NCUA regulations upon VacationLand Federal Credit Union. We are pleased to report that in 2016, VLFCU received a favorable report on our annual examination by the NCUA.

4 Annual Report 2016 VacationLand Federal Credit Union VacationLand Federal Credit Union VLFCU partnered with BAS Broadcasting for the Annual Coats for Caring AnnualDrive at Report the Sandusky 2016 Mall5 MESSAGE FROM THE CHAIRMAN OF THE BOARD OF DIRECTORS

Where does the time go? It seems like yesterday that we had including our recently remodeled hub on Hayes Avenue, our our 2016 Annual Membership meeting. We experienced another Perkins Avenue Branch, the newly purchased and remodeled great year in 2016. We reached a new milestone last year when Huron Branch, our Vermilion Branch, and our branch in Norwalk. TOTAL we surpassed $200 million in assets! I can recall not too long The Board is acutely aware that we are more than just brick ASSETS ago when we reached $100 million in assets. That year during and mortar. We need to meet our members’ needs by offering our annual strategic planning session, we made a statement and competitive rates, an array of quality products, and a safe and $ a goal to reach $200 million in assets. With your support and secure place to invest your funds. 202M investment into our credit union, I am happy to say that we have reached that milestone! We still hope to do more for our members by focusing on how to best serve our diverse membership demographic. We realize that we all have different needs and wants from our The 2016 year will not only be remembered for financial institution. We will seek ways that provide safe and reaching a new milestone, we also continued secure financial services in different platforms. We will attempt NET growth in membership; we also expanded the to accommodate our younger members via social media. At INCOME number of transactions at our Huron branch; and the same time we need to be accessible to our more long-term we continued to make changes in our products that members who may not feel comfortable using the latest and $ we offer our members. greatest technology. 1.6M In order to understand what is important to you, we need In November 2016, we renewed a collective bargaining agreement to hear your thoughts and ideas on how we can best serve with UAW Local 913 on a three-year extension. The Board believes each member. This year our annual meeting will be held in our that one of our strengths is our relationship with and the performance Hayes Avenue facility on the morning of March 15, 2017. We of the staff members covered under the UAW 913 contract. Their hope to see you there. We want to hear from you. hard work and dedication to VacationLand membership is one of DEPOSITS our many strengths. Thanks to the leadership of our staff to keep In closing, we wish all our members the best for 2017! We are INCREASE VacationLand a great place to work! here to serve you! % The challenge for the Board of Directors is to develop a strategy Jude T. Hammond 9.70 on how to best use our capital. We have used some of the Chairman of the Board of Directors capital to invest in brick and mortar. We have five branches now

6 Annual Report 2016 VacationLand Federal Credit Union MESSAGE FROM THE CHIEF EXECUTIVE OFFICER

2016 was once again a solid year for VacationLand Federal Credit systematically while at the same time keep up with members’ Union as we executed our annual business plan, experienced ever-changing financial wants and needs. For this reason, the ASSET sound financial growth, saw our asset size break through credit union’s Board of Directors and Senior Management team GROWTH another barrier and witnessed measurable membership growth. have devoted the last four annual planning sessions to creating Although very positive, it was not a year without its challenges. a solid long-range vision and plan for the credit union. % We faced increased regulatory oversight within the financial 10.35 industry, stringent consumer compliance rules and regulations handed down by government agencies assigned to monitor our Our focus for the next several years will be field of business, and we continued coping with an existing limited field membership expansion, non-interest income streams of membership. Then, at the end of the year, we sadly said good- and updated technology for member-use. At the bye to our founding SEG group, General Motors / KBI, as they same time, we will ensure that our core values and closed their doors after more than sixty-five years of business in mission are maintained, and we continue to meet the CAPITAL Sandusky. Many of our member families along with many others needs of all members through competitive products RATIO in our area were deeply affected by the decision to close this and services. industrial icon of our community. I want each of our members to % know that the credit union is here to offer its very best assistance 10.31 through this difficult time to all those affected by the closure. Since our founding in 1956, VacationLand Federal Credit Union has demonstrated its commitment to providing its members with I am pleased to report that in 2016 VLFCU’s year-end financial exceptional service, outstanding value and a comprehensive statements remained strong showing a very manageable 10.35% array of products and services. We feel privileged to serve you asset growth and a very healthy .85% ROA. Our capital ratio and to help you meet your financial goals. Thank you for giving increased slightly to 10.31%, much above the “well capitalized” us the opportunity through your continued support. floor limit set by the NCUA, and loan and share growth averaged MEMBERSHIP 8.43% and 10.55% respectively. As a result, VLFCU remains in Bryan P. Myers INCREASE the upper end of its credit union peer group. Chief Executive Officer % Our goal for 2017 and beyond is to remain in that top tier of Ohio 3.31 credit unions. But retaining that status level will be no easy goal to achieve. We are keenly aware that VLFCU’s long-term success is contingent upon its ability to attract new members and grow

Finances 101 at EHOVE was made possible with help from VLFCU employees, community volunteers, and EHOVE students

VacationLand Federal Credit Union Annual Report 2016 7 FINANCIAL HIGHLIGHTS (*UNAUDITED)

December 31, 2016 2015 2014 2013 2012 Assets Cash and Equivalents $ 9,101,403 $ 9,653,004 $ 5,489,726 $ 3,816,239 $ 6,215,658 Investments 57,592,517 48,062,711 48,012,878 51,742,073 45,733,623 Loans 129,820,630 119,736,934 109,310,640 97,027,553 94,013,481 (less) Allowance for Loan Loss (1,170,428) (1,093,271) (1,029,382) (1,212,920) (1,047,636) Land, Building and Equipment, net 5,957,890 6,084,740 5,590,614 1,145,479 1,315,274 Other Assets 1,697,424 1,518,500 1,898,344 3,201,360 1,489,036 Total Assets $ 202,999,436 $ 183,962,618 $ 169,272,820 $ 155,719,784 $ 147,719,436 Liabilities Other Liabilities $ 2,512,169 $ 1,788,988 $ 1,546,239 $ 1,154,735 $ 1,010,564 Notes Payable 17,770,367 15,299,243 15,807,477 9,601,758 5,866,737 Total Liabilities 20,282,536 17,088,231 17,353,716 10,756,493 6,877,301 Share Drafts 25,486,130 23,611,021 19,671,665 17,444,129 15,600,683 Shares 106,426,776 96,791,820 89,922,809 84,872,034 80,619,755 Certificates 28,682,992 26,075,914 24,621,183 26,523,421 29,979,236 Nonmember Certificates 1,340,000 1,092,606 0 - - Total Shares 161,935,898 147,571,361 134,215,657 128,839,584 126,199,674 Owners Equity (Capital) Regular Reserves 2,870,959 2,870,959 2,870,959 2,870,959 2,870,959 Accum. Unrealized Gain/(Loss) - AFS (153,424) 10,693 15,073 (37,820) - Undivided Earnings 18,063,467 16,421,374 14,817,415 13,290,568 11,771,502 Total Equity 20,781,002 19,303,026 17,703,447 16,123,707 14,642,461 Total Liabilities & Owners Equity $ 202,999,436 $ 183,962,618 $ 169,272,820 $ 155,719,784 $ 147,719,436 Income Loan Interest $ 6,626,475 $ 6,204,942 $ 5,735,483 $ 5,504,505 $ 5,437,885 Investment Interest 1,460,049 1,226,712 1,210,797 1,054,875 916,077 Noninterest Income 3,183,913 3,166,518 2,944,045 2,925,703 2,799,596 Gain/(Loss) on Sale of Assets 55,781 0 0 - - Total Income 11,326,218 10,598,172 9,890,325 9,485,083 9,153,558 Expenses Staffing 4,165,893 4,042,169 3,989,375 3,597,057 3,366,253 Dividends 566,475 505,285 529,012 562,537 784,440 Interest Expense on Borrowings 346,420 265,160 195,251 95,840 17,092 Allowance for Loan Losses 565,000 360,000 267,000 479,000 693,947 Operating Expenses 4,040,338 3,821,598 3,382,841 3,127,616 3,029,625 NCUA Stabilization Expense 0 0 0 103,968 118,804 Total Expenses 9,684,126 8,994,212 8,363,479 7,966,018 8,010,161 Net Income $ 1,642,092 $ 1,603,960 $ 1,526,846 $ 1,519,066 $ 1,143,398 Financial Ratios Return on Average Assets (ROAA) 0.85% 0.91% 0.94% 1.00% 0.80% Net Interest Margin 3.71% 3.77% 3.83% 3.89% 3.89% Operating Expenses to Average Assets 4.24% 4.45% 4.54% 4.50% 4.54% Efficiency Ratio 72.81% 74.25% 74.58% 71.99% 71.42% Loans to Shares 80.17% 81.74% 81.44% 75.31% 74.50% Allowance for Loan Loss to Total Loans 0.90% 0.91% 0.94% 1.25% 1.11% Net Charge-offs to Average Loans 0.39% 0.27% 0.40% 0.32% 0.82% Delinquent Loans to Total Loans 0.61% 0.54% 0.74% 1.02% 0.96% Capital to Assets 10.31% 10.49% 10.45% 10.38% 9.91% Distribution of Income Operating Expenses $ 8,206,231 $ 7,863,767 $ 7,372,216 $ 6,828,641 $ 6,514,682 Dividends 566,475 505,285 529,012 562,537 784,440 Capital 2,207,092 1,963,960 1,793,846 1,998,066 1,837,345 Number of Members 18,113 17,533 16,833 16,431 16,009 Number of Employees 71 65 64 61 59

* Copies of audited Financial Statements are available upon request

8 Annual Report 2016 VacationLand Federal Credit Union MESSAGE FROM THE CHIEF FINANCIAL OFFICER

VacationLand Federal Credit Union stayed true to its mission to serve and surpass NET INTEREST MARGIN/AVERAGE ASSETS by providing value and financial freedom to its members through improved products and services, while focusing efforts to save members money and increase wealth. As a result, VacationLand Federal Credit Union continued its strong financial growth to over $202 million in assets. Four additional key measures of financial strength continued in 2016: Loans, Deposits, Capital and Net Income.

2016 IN REVIEW Net Income surpassed the $1.6 million mark for the second consecutive year reaching $1,642,092 in 2016, compared to 2015 net Income of $1,603,960. Loan growth was 8.4% in 2016 with slight decreases in loan quality resulting in modest increases in net charge-offs and delinquencies.

Return on Average Asset (ROAA) is a key measure of a credit union’s financial 3.89% 3.89% 3.83% 3.77% 3.71% health. The 2016 ROAA continues to remain strong reaching .85%, 31 basis points above our peer group ROAA of .54%. Net Interest Margin remained solid at 3.71%, 64 basis points above our peers at 3.07%. 2012 2013 2014 2015 2016 2016 Revenues increased by $728,046 and totaled $11,326,218, compared with $10,598,172 in 2015. Investment income increases lead the revenue growth at 19.0% along with increases in loan income of 6.8%, and non-interest income of .6%. In 2016, VLFCU received a favorable report by the National Credit Union Administration, our federal regulatory agency, substantiating our sound financial management. Total Expenses increased by $689,914 in 2016 to $9,684,126, supported by increases in staffing costs of $123,724, dividends and interest of $142,450, operating expenses 2017 A LOOK AHEAD of $218,740, and provision for loan losses of $205,000. The Federal Open Market Committee raised the federal funds rate by 25 basis points Total Assets rose by $19,036,818 or 10.4%, eclipsing the $200 million mark for the at its December 2016 meeting, the second rate hike in eight years. We forecast a 2017 first time reaching $202,999,436 at December 31, 2016. Asset growth was funded by interest rate environment with two increases in the federal funds rate of 25 basis growth in retail deposits of $14,364,537, FHLB Borrowings of $2,471,125 and equity of points; one at mid-year and the second at year-end. The short-end of the yield curve $1,642,092. (years 1 to 4) is forecasted to increase (25-50 basis) along with increases in the longer end of the yield curve (25–50 basis points) in years 5-30. VLFCU’s financial mix of Total Loans at December 31, 2016 grew by $10,083,696 as VacationLand Federal earning assets, member deposits, borrowed funds and capital coupled with our three- Credit Union worked to satisfy member demand for mortgages, auto loans, home year financial plan positions us for success in 2017 and beyond. equity lines of credit, member business loans and credit card loans. We will minimize our long-term interest rate risk by funding fixed long-term mortgages Investments increased by $9,529,806 to $57,592,517 at year end primarily from and member business loans with fixed long-term borrowings from the Federal Home the 2016 infusion of retail deposits. Investment Income for 2016 rose 19.0%, to Loan Bank of Cincinnati and member and non-member deposits. $1,460,049, driven by an investment strategy of reinvesting maturing securities into higher yielding longer-term municipal and agency securities. Non-interest Income The 2017 financial plan is linked with a solid marketing strategy coupled with education grew by $17,395 in 2016 to $3,183,913. and training for our employees. We will continue to focus on building relationships with existing and new members to assist them in reaching their financial goals. Deposits rose by 9.7% ending the year at $161,935,898. We thank our employees, Board and Supervisory Committees for their dedication. The Credit Union’s Equity position eclipsed the $20 million mark for the first time We thank you, our members, for your continued support and look forward to a climbing to $20,781,002 at year-end. prosperous 2017.

The Capital to Asset Ratio, another key indicator of the financial strength of Mitchell J. Fallis, CPA, CGMA, MBA, CCUIP a credit union, remained strong at 10.31% at December 31, 2016 while the year Chief Financial Officer ago ratios were 10.49%. Both ratios are well above the 7.00% ratio required to be categorized as “Well Capitalized” under National Credit Union Administration regulations for prompt corrective action.

VacationLand Federal Credit Union Annual Report 2016 9 MESSAGE FROM THE TREASURER OF THE BOARD OF DIRECTORS

2016 EARNINGS AND MEMBERSHIP GROWTH Thanks to the loyalty of our long-term members and the influx of new members, I am All depository accounts are insured up to $500,000. The first $250,000 of insurance pleased to report another strong year for VacationLand Federal Credit Union. Net is provided by NCUA’s National Credit Union Share Insurance Fund while the second Income for 2016 surpassed the $1.6 million mark for the second consecutive year $250,000 is made available through private insurance from Excess Share Insurance ending 2016 at $1,642,092. The 2016 Return on Average Assets remained strong at Company, paid for by VacationLand Federal Credit Union. .85%, compared to .91% and .94% in 2015 and 2014, respectively. 2017 AND BEYOND Year over year membership growth is 3.3% growing from 17,533 in 2015 to 18,113 at 2016 year-end, a direct result of the efforts from management and staff to provide VacationLand Federal Credit Union’s decisions are made with our members’ best uncommon member service. We have managed the Credit Union with integrity, interests in mind. We will continue our long history of giving back to our members in protecting its safety and soundness, and thereby fostering the confidence of our the form of better rates, low or no fees and more affordable financial services. As in members and the communities. past years, we continue to do our best to deliver member-driven service as evidenced by continued capital investments in our information technology, website and mobile DEPOSIT INSURANCE UP TO $500,000 app. Thank you for your confidence and loyalty in our credit union. More and more individuals, families and small local businesses are discovering the On behalf of the Board of Directors, we wish to extend our thanks to the staff and benefits of a not-for-profit financial cooperative and are moving their money from banks management for meeting the financial needs of our members with such great care to credit unions. This year, our deposits grew by 10.6% or $15.5 million to over $161.9 and commitment. million compared with a 10.0% growth during 2015 of $13.4 million. Rising deposits indicate member confidence In VacationLand Federal Credit Union providing funding Tracy Luc for our members to secure loans to buy homes, cars, and Member Business lending. Treasurer of the Board of Directors

RETURN ON AVERAGE ASSETS MEMBERS

.80% 1.00% .94% .91% .85% 15,557 16,431 16,833 17,533 18,113

2012 2013 2014 2015 2016 2012 2013 2014 2015 2016

EFFICIENCY RATIO CAPITAL/ASSET RATIO

AVERAGE

71.42% 71.99% 74.58% 74.25% 72.81% 9.91% 10.38% 10.45% 10.49% 10.31%

2012 2013 2014 2015 2016 2012 2013 2014 2015 2016

10 Annual Report 2016 VacationLand Federal Credit Union 60 YEARS IN ERIE COUNTY AND WE ARE JUST GETTING STARTED 2016 HIGHLIGHTS

2016 was a big year for VacationLand Federal Credit Union! Most notably, we hosted a 60th Anniversary Celebration during which we shared the credit union’s success with our members and community. Leading TOTAL MEMBERSHIP up to the anniversary date of September 21st, we gave away over $4,600 in prizes including a grand prize OSU Game package. The celebration concluded with a party at the VLFCU Operations Center where members were treated to food, drawings, a car show, games, and music.

VLFCU has experienced a lot of changes and growth over the last six decades, but one thing has remained constant, our commitment to the community. This year was no exception! In 2016 management and staff were either participants or volunteers at over 30 events. These events ranged from organization fundraisers to financial literacy presentations. Many of the management team held board positions for non-profit organizations and local charitable committees. Over the course of the year, VLFCU made monetary or in-kind 18,113 donations totaling $28,420 and provided an additional $3,000 for high school scholarships.

As part of our financial literacy efforts, several VLFCU managers were advisors for CHARITABLE CONTRIBUTIONS Junior Achievement. These five individuals engaged with students in grades 3 to 5 for ten weeks and collectively taught the JA curriculum over 220 hours. Other financial literacy presentations were prepared as requested by local educators and as part of our commitment to the Community Connectors Grant obtained by Big Brothers Big Sisters. VLFCU was also asked to partner with Business & Marketing students at EHOVE to host Finances 101 for the school. This one-day event required 36 business professionals and student volunteers in order to facilitate the life-size version of the game of Life. Participating students learned about $ the financial responsibilities adults face every day, while the Business & Marketing students 28,420 gained valuable event planning and time-management skills. NET INCOME Whether it’s celebrating our members, educating our future generation, or donating money to community- minded organizations, VacationLand Federal Credit Union is dedicated to the communities we serve. We are able to give back solely due to our members’ loyalty, and are tremendously grateful for their trust. As we look forward to the future, we will continue to forge new partnerships that are in the best interests of our members, their families, and neighbors.

Heather Gilchrist Marketing Coordinator $1,642,092

VacationLand Federal Credit Union Annual Report 2016 11 SINCE OUR FOUNDING IN 1956, VACATIONLAND FEDERAL CREDIT UNION HAS DEMONSTRATED ITS COMMITMENT TO PROVIDING ITS MEMBERS WITH EXCEPTIONAL SERVICE, OUTSTANDING VALUE AND A COMPREHENSIVE ARRAY OF PRODUCTS AND SERVICES. WE FEEL PRIVILEGED TO SERVE YOU AND TO HELP YOU MEET YOUR FINANCIAL GOALS. THANK YOU FOR GIVING US THE OPPORTUNITY THROUGH YOUR CONTINUED SUPPORT.

The annual VLFCU Easter Egg Hunt at Osborn MetroPark INDEPENDENT FINANCIAL ADVISOR

David Karikas, of Preferred Planning Associates, offers more (a) Non-deposit Investment Products: are not FDIC or NCUA than 26 years of experience in non-deposit investment insured, are not obligations of or guaranteed by VacationLand products (a), insurance and financial advice. David’s services Federal Credit Union, involve investment risk and may lose are available to VLFCU’s members. value. David Karikas is a Registered Representative offering securities through Cambridge Investment Research, Inc., a David Karikas serves over 650 members with over $30 broker/dealer, Member FINRA/SIPC. Cambridge, Vacationland million in invested assets. Additional products include Life Federal Credit Union, and Preferred Planning Associates are Insurance, Long-Term Care and Fixed Annuities. David is not affiliated companies. located at our Perkins Office, 2409 East Perkins Avenue, Sandusky, Ohio or call 419 625.9025 Extension 1777. ATM LOCATIONS All five of our branches are equipped with ATMs to provide 24-hour access to cash funds. Additionally, members can access their accounts at the following business locations.

Firelands Regional Medical Center International Automotive Components (IAC) 1111 Hayes Avenue 1608 Sawmill Parkway Sandusky, OH 44870 Huron, OH 44839 2nd Floor — Vending Machine Area Outside Plant Cafeteria

Firelands Hospital – South Campus Vermilion - Main Street Soda Grill 1912 Hayes Avenue 5502 Liberty Avenue Sandusky, OH 44870 Vermilion, OH 44089 Lower Level — Near Elevators Walk-Up ATM — East Side of Building

CONNECT WITH US CU*Talk: 419.621.8328 or 877.256.3336 Website: www.vlfcu.org

Social Media: facebook.com/VacationLandFCU twitter.com/VacationLandFCU youtube.com/VacationLandFCU

Federally insured by NCUA