2014 ANNUAL REPORT

Federally insured by NCUA VacationLand Federal Credit Union Corporate Information

CORPORATE PROFILE INSURED DEPOSITS VacationLand Federal Credit Union (VLFCU) was founded in 1956 The Credit Union’s member depository by employees of the Sandusky, Ohio General Motors Plant. In accounts are insured up to $500,000. The 2001, VLFCU expanded its fi eld of membership to include anyone fi rst $250,000 of insurance is provided who lives, works, worships, attends school or has a business or by NCUA’s National Credit Union Share organization in Erie County, Ohio. Insurance Fund while the second $250,000 is made available through private insurance In 2010, VacationLand Federal Credit Union extended its from Excess Share Insurance Company, paid for by VacationLand membership into Huron County, Ohio by merging with School Federal Credit Union. Employees Federal Credit Union (SEFCU) to include employees of the Boards of Education who work in Huron County and employees CORPORATE HEADQUARTERS of the Board of Education of EHOVE Joint Vocational School in Erie VacationLand Federal Credit Union County. 2911 South Hayes Avenue Today, VacationLand Federal Credit Union is a member-owned, Sandusky, Ohio 44870 not-for-profi t cooperative committed to being the lifetime fi nancial Telephone: 419.625.9025 institution of its members, by providing services at lower or no Toll Free 800.691.9299 fees, loans with lower rates plus deposit products with higher dividend rates. ANNUAL MEETING The Annual Meeting of the Credit Union’s owners will be held The Credit Union offers its members a full suite of fi nancial at 8:00 A.M. on Wednesday, March 18, 2015 at our Corporate products including mortgage, home equity, consumer, student Headquarters, 2911 South Hayes Avenue, Sandusky, Ohio. and credit card loans and a wide array of checking, money-market and deposit products. INDEPENDENT AUDITORS Doeren Mayhew, CPAs and Advisors The Credit Union supports community employment opportunities 305 West Big Beaver Road by funding local small businesses. Business loan products include: Troy, Michigan 48084 equipment, auto, truck, lines of credit and commercial real estate loans. PRIVACY POLICY With $169 million in assets, VacationLand Federal Credit Union, The Privacy Policy of VacationLand Federal Credit Union describes headquartered in Sandusky, Ohio serves over 16,800 members, how we safeguard our members’ fi nancial privacy. Your fi nancial businesses and organizations at fi ve branch offi ces and ten ATM’s privacy is our priority. For more information, visit us at www.vlfcu. in the cities of Sandusky, Huron, Norwalk and Vermilion. Also, org or call 419.625.9025. we serve our members at over 5,000 CO-OP Shared branches and nearly 10,000 MoneyPass surcharge-free ATM locations in CONTENTS the United States. Through 24-hour online banking and CU*Talk Corporate Information ...... 1 Telephone Account Access, we serve members wherever they are. About VacationLand Federal Credit Union ...... 2 The Governing Bodies of Our Credit Union ...... 3 VacationLand Federal Credit Union is a member of Corporate One Chairman’s Message ...... 4 Federal Credit Union, the National Credit Union Administration’s Chief Executive Offi cer’s Message ...... 4 (NCUA) Central Liquidity Facility and the Federal Chief Financial Offi cer’s Message ...... 5 Home Loan Bank of Cincinnati. VacationLand Federal Financial Highlights ...... 6 Credit Union is an Equal Opportunity Employer and Board Treasurer’s Message ...... 7 an Equal Housing Lender. Improving Our Communities...... 8 VacationLand Federal Credit Union received Low-income We Are Here to Serve You ...... 9 Designation through the National Credit Union Administration. This designation provides benefi ts such as: • Accepting non-member deposits from any source • A gateway to community development fi nancial institution (CDFI) certifi cation • Opportunities to apply for grants and low-interest loans

2014 Annual Report 1 VacationLand Federal Credit Union About VacationLand Federal Credit Union The VLFCU Difference

VacationLand Federal Credit Union is much more than a place for Many people may not know what makes VacationLand Federal banking. We live and work in northern Ohio, and we’re dedicated Credit Union different from other fi nancial institutions. Here are to helping our members and our community prosper and thrive. just a few ways that demonstrate our uniqueness. Every member of VLFCU is part of our family. We care about you and your well-being instead of the bottom line. WE ARE MEMBER-OWNED As a member-owner, regardless how much you save or borrow, you When you become a member, you become a shareholder of determine who serves on the Board of Directors. You have one vote VacationLand Federal Credit Union. We’ll work for you as we for each open Board of Director seat. Also, as a member-owner, work with you to manage your fi nances, invest in a new home annual meetings are open to you. We encourage you to attend. or business, or save for retirement. Working together, we can all succeed. WE ARE NOT-FOR-PROFIT We are out to protect your wallet, not fi ll our own! We return profi ts to you, the members, in the form of lower loan rates, higher dividend rates, and low or no fees for services. Who We Are WE ARE VOLUNTEER DRIVEN At VacationLand Federal Credit Union, we make it our priority Each member of our Board of Directors is an unpaid volunteer to help members achieve their personal fi nancial objectives, by you have elected to work in your best interest. Directors serve on anticipating their needs and exceeding their expectations with our Asset/Liability Management, Policy, By-Laws, Security, Insurance, superior service and products. Marketing and Facilities committees, assisting management in making decisions on how to improve member products, service OUR VISION and operational effi ciencies. To be our members’ chosen lifetime fi nancial partner and to improve our communities for future generations. WE ARE A COOPERATIVE Cooperatives pool resources for the common good. In like fashion, OUR MISSION depositors of VacationLand Federal Credit Union pool funds to Guided by our core values, we exist as a not-for-profi t cooperative lend to one another. Through our structure and operation, credit to serve and surpass by providing value and fi nancial freedom. unions carry out the credit union philosophy of “people helping people.” At VacationLand Federal Credit Union, you’re not just an OUR CORE VALUES AND BELIEFS account number, you’re a member helping other members. Resourcefulness - Finding solutions Excellence - Achieving the best possible outcome IN SUMMARY Strategy - Thoughtful execution Put another way, VacationLand Federal Credit Union is different. Passion - Heartfelt action We are not a bank. We’re not a payday lender. We are a low Empowerment - Invest authority to succeed cost fi nancial institution that you will want to be affi liated with Commitment - Dedicated service for a lifetime. Trust - Serving with integrity 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 benefi ts of membership.

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 benefi ts of membership.

Hayes Offi ce, 2911 South Hayes Avenue, Sandusky, Ohio 44870

2 2014 Annual Report VacationLand Federal Credit Union The Governing Bodies of Our Credit Union

THE BOARD OF DIRECTORS SUPERVISORY COMMITTEE The 2014 Board of Directors is comprised of seven volunteers, elected The Supervisory Committee consists of members appointed by by you, the members, who are responsible for the governance, the Board of Directors to serve one to three year terms. These direction and control of the affairs of VacationLand Federal Credit volunteers are responsible for assuring the safety of the credit Union in accordance with National Credit Union Administration union’s assets and deposits, the soundness of management and rules and regulations and sound business practices. compliance with various fi nancial and regulatory requirements. The Board of Directors dedicates its time and talent to make In fulfi lling these responsibilities, the Supervisory Committee VacationLand Federal Credit Union a premier credit union. The recommends to the Board of Directors for ratifi cation the Board delegates the day-to-day activities through policies to Senior appointment of an independent audit fi rm to annually examine Management of the credit union. Directors serve for a term of three the fi nancial statements of the credit union. years with an equal number of terms expiring at the end of each annual meeting. An audit of the 2014 fi nancial statements was conducted by Doeren Mayhew CPAs and Advisors. The audit report stated that Monthly meetings are held by the Board of Directors to conduct VacationLand Federal Credit Union’s fi nancial statements present the business of the credit union by reviewing its performance and fairly, in all material aspects, our statements of fi nancial position, policies. Once per year the Board of Directors also meets with results of operations and cash fl ows. The audit report for 2014 Senior Management for a full day session to develop the three-year will be available on March 18, 2015 and may be requested from: strategic plan. Mitchell J. Fallis, CPA, CGMA, MBA Chief Financial Offi cer Board of Directors: Term Expiration and Committee P.O. Box 2257 Membership Sandusky, Ohio 44871 Jude Hammond: Chairman - 2016, (1), (2), (4), (6) 419.609.2718 Jan Sadoski: Vice Chairman - 2015, (1), (7) Marcia Renande: Secretary - 2017, (2), (5) The National Credit Union Association (NCUA) also conducts an Tracy Luc: Treasurer - 2015, (1) annual examination of the records, policies, practices and the Joel Hassinger: Director - 2016, (6), (8) application of NCUA regulations upon VacationLand Federal Christine Giardina: Director - 2017, (1) Credit Union. We are pleased to report that in 2014, VLFCU Martha Thompson: Director - 2015, (3) received a favorable report on our annual review by the NCUA. Board of Director Committees Just like the Board of Directors, the Supervisory Committee also (1) Asset/Liability Management (5) Marketing holds monthly meetings to, among other things, review internal (2) By-Laws (6) Nominating audit services, internal controls and risk management processes, (3) Insurance (7) Policy and examinations by regulatory agencies and the independent (4) Security (8) Facilities audit fi rm. A representative of the Supervisory Committee attends the monthly Board of Directors meetings and shares their fi ndings. To date, the Supervisory Committee has reported that, in their opinion, VacationLand Federal Credit Union has operated in a fi scally safe and sound manner and, in all material aspects, in accordance with applicable accounting, federal, state, and NCUA regulations. 2014 Supervisory Committee members are: William Stauder, Theresa Barylski, Christopher Palmer, Lynn Sartor and Jacquelyn Streng. We are hopeful that 2015 will be another good year for VacationLand Federal Credit Union as we all work together to serve you, our members. Sitting L to R: Marcia Renande, Christine Giardina, Tracy Luc Sincerely, and Martha Thompson. Standing L to R: Jan Sadoski, Joel William Stauder, Hassinger and Jude Hammond. Chairman

2014 Annual Report 3 VacationLand Federal Credit Union Message from Our Chairman Message from Our Chief Executive Offi cer

2014 was another great year for our Credit Union On August 14, 1956, eight people from the from a fi nancial as well as a strategic perspective. At Sandusky General Motor’s plant each pooled $5.00 the annual planning session of the Board, we were of their own money to form what we know today complimented by the facilitator for our collective as VacationLand Federal Credit Union. The dream decisions to infuse energy into the marketing and of these eight people was to create a cooperative branding of our Credit Union. During the past fi nancial institution that would provide low cost year, we built a new branch and operations center loan and deposit services to friends and co-workers and successfully attracted younger members to who were “underserved” through normal channels. our Credit Union community, who will help perpetuate our existence. Simply put, their goal was “people helping people”. Today, we truly We truly can look to the future with a great deal of optimism. appreciate the foresight of those eight individuals as the credit union has grown to over 16,800 member-owners serving all of Erie County and An on-going challenge for the Board of Directors is to develop a select groups in Huron County. While VLFCU has grown signifi cantly in strategy on how to best use our capital and serve our membership. size over the last six decades, our dream and mission remains the same. In December 2014 we purchased a new branch offi ce in Huron across That is to work hard every day putting our members fi rst and creating a from BGSU Firelands on Rye Beach Road. In performing our due credit union we can be proud of for many generations to come. diligence, we determined that over 10% of our members have a Huron address and with this move, we will be expanding our presence in Erie Much like 1956, 2014 was a momentous year for VLFCU. Our year-end County. Two new marketing opportunities will also open up for us with fi nancial statements remain strong showing a manageable 8.70% asset the branch’s location being near International Automotive Components growth and a very healthy .94% ROA (return on assets). Our capital (IAC), the former Lear Corporation which employs members of UAW ratio continues to get stronger year over year ending 2014 at 10.45%, 913, and students and faculty attending BGSU Firelands. We hope to still well above the “well capitalized” fl oor limit set by the NCUA. Also, have this branch fully operational for our members in early spring. The for the fi rst time in recent memory, our overall net loan portfolio grew in Board is truly excited about this new opportunity. We hope that you, excess of 13%, helping boost net income and overall capital. As a result our members, will be pleased with this new facility along with the new of the hard work by our staff and management team in 2014, VLFCU Hayes branch and all the other upgrades and improvements we have remains in the upper end of our credit union peer group in all fi nancial made in our fi nancial delivery system during the past year. categories. Member-owners continue to grow in number year over year as we welcomed 402 new members to the credit union, an increase of The Board realizes that it will take more than just brick and mortar, 2.45% in membership over 2013. a fresh coat of paint and improvements to our buildings to meet our members’ needs. As such, we are committed to offering you competitive As we close the books on 2014, I want to take some time to refl ect on interest rates and products that will meet your specifi c fi nancial needs. what was accomplished throughout the year. As most of our members We also understand the importance of knowing how to best serve our know, this was a year of growth for VLFCU in both size and function. diverse membership demographic, realizing that we all have different First and foremost, in early June we brought our new Hayes branch needs and wants from a fi nancial institution. Accommodating our and operations center online. This was the fi nal phase of our branch young members via social media and mobile technology while at the re-branding process that began in 2010 and fi nalized this past year. same time remaining accessible to our more senior members who may We are very excited and proud of how this project turned out and not feel as comfortable using the latest technology will remain a strong appreciate the much needed space and security it provides. Secondly, focus for us. However, regardless of the platform, we will continue to we spent considerable time and effort re-working our website, making seek ways to provide safe and secure fi nancial services for all VLFCU it more functional and user-friendly plus optimizing it for use on all members. mobile devices. Also during this time a formal mobile application was developed for use on both Apple and Android products making VLFCU’s In order to understand what is important and how we can best serve services available to all our members on the go. And to close out the you, we need to hear your thoughts and ideas. This year’s annual year, in late December we purchased our newest branch located on Rye meeting will be held in our newly constructed Hayes Avenue facility Beach Road in Huron, across from BGSU Firelands. We plan to have at 8 am on Wednesday, March 18, 2015. We hope to see you there. this new branch fully operational by the end of March 2015. In closing, we wish all our members the best for 2015! We are here to On behalf of VLFCU’s tireless volunteers, our staff and management serve you! team, we are committed to providing you, our members, with the best fi nancial services available to meet your specifi c needs, and I want to Sincerely yours, personally thank you for your continued support of our credit union. Jude T. Hammond Chairman of the Board of Directors Thank you, Bryan P. Myers Chief Executive Offi cer

4 2014 Annual Report VacationLand Federal Credit Union A Message from Our Chief Financial Offi cer

OVERVIEW The Capital to Asset Ratio is another key indicator of the VacationLand Federal Credit Union stayed fi nancial strength of a credit union. The capital to asset ratio true to its mission to serve and surpass by climbed from 10.38% from one year ago to 10.45% at December providing value and fi nancial freedom to 31, 2014, well above the 7.00% ratio required to be categorized its members through improved products as “Well Capitalized” under National Credit Union Administration and services, while focusing efforts to save regulations for prompt corrective action. members money and increase wealth. In 2014, VLFCU received a favorable report by the National As a result, VacationLand Federal Credit Credit Union Administration, our federal regulatory agency, Union, the 10th largest Credit Union in Northeast Ohio, continued substantiating our sound fi nancial management. its strong fi nancial growth to over $169 million in assets. Two other key measures of fi nancial strength continued in 2014, Capital and 2015 A LOOK AHEAD Net Income. We are forecasting an interest rate environment for 2015 with increases on the yield curve (50–100 basis points) in years 2 to 2014 IN REVIEW 10 and lower increases of (25–50 basis points) in year 1 as well Net Income surpassed the $1 million mark for the third as years 11-30. VLFCU’s fi nancial mix of earning assets, member consecutive year reaching $1,526,846 in 2014, compared to 2013 deposits, borrowed funds and capital, coupled with our fi ve-year net Income of $1,519,066. Loan growth was exceptional in 2014 fi nancial plan, positions us for success in 2015 and beyond. with continued improvement in loan quality resulting in reduced charge-offs and the provision for loan losses. We will continue to minimize our long-term interest rate risk by funding fi xed long-term mortgages and member business loans Return on Average Asset (ROAA) is a key measure of a with fi xed long-term borrowings from the Federal Home Loan Bank credit union’s fi nancial health. The 2014 ROAA continues to of Cincinnati, member deposits and brokered share certifi cates. remain strong reaching .94%, 35 basis points above our peer group ROAA of .59%. Net Interest Margin remained solid at The fi nancial plan is supported with a solid marketing strategy 3.83%, 79 basis points above our peers at 3.04%. coupled with education and training for our employees. We will continue to focus on building relationships with existing and Revenues for 2014 totaled $9,890,325, up from $9,485,083 new members to assist them in meeting their fi nancial goals, as in 2013. Contributing factors included increases in loan income evidenced by our strategy to open a new branch offi ce in Huron, of 4.2%, investment income of 14.8%, miscellaneous income of Ohio in March 2015. 11.9%, offset by decreases in fees and charges of (1.04)%. We thank our employees, Board and Supervisory Committee for Total Expenses increased by $397,461 in 2014 to $8,363,479, their dedication. We thank you, our members, for your continued supported by increases in staffi ng costs of $301,318, dividends of support and look forward to a prosperous 2015. $33,525, offi ce occupancy of $70,903, offi ce operation of $87,084 and loan servicing of $75,703 partially offset by decreases in Best regards, provision for loan losses of $212,000 from improved loan quality. Mitchell J. Fallis, CPA, CGMA, MBA Chief Financial Offi cer Total Assets rose by $13,553,036 or 8.7%, reaching $169,272,820 at December 31, 2014. Asset growth was funded by growth in retail deposits of $5,376,073, FHLB borrowings of Capital/Asset Ratio 2010-2014 $6,205,719 and equity of $1,526,847. 10.50% 10.46% 10.30% Total Loans at December 31, 2014 grew by $12,283,088 led 10.38% by the consumer, member business loan and visa portfolios. 10.10%

9.90% Investments declined by $3,729,195 to $48,012,878 at year 9.91% end. 9.70% 9.69% Investment Income for 2014 rose 14.8%, climbing $155,922, 9.50% to $1,210,797, driven by an investment strategy of reinvesting 9.30% maturing securities into higher yielding longer-term municipal 9.10% and agency securities. Non-interest Income grew modestly in 9.20% 2014 to $2,939,285. 8.90% Member Deposits increased by 4.2% ending the year at 8.70%

8.50% $134,215,657. The Credit Union’s Equity position eclipsed the 2010 2011 2012 2013 2014 $17 million mark climbing to $17,703,447 at year-end. Average

2014 Annual Report 5 VacationLand Federal Credit Union VacationLand Federal Credit Union Financial Highlights (Unaudited)

December 31, 2014 2013 2012 2011 2010 Assets Cash and Equivalents $ 5,489,726 $ 3,816,239 $ 6,215,658 $ 7,302,811 $ 14,151,624 Investments 48,012,878 51,742,073 45,733,623 38,698,945 41,906,168 Loans 109,310,640 97,027,553 94,013,481 91,510,205 80,501,240 (Less) Allowance for Loan Loss (1,029,382) (1,212,920) (1,047,636) (1,056,579) (954,031) Land, Building and Equipment 5,590,614 1,145,479 1,315,274 892,742 585,675 Other Assets 1,898,344 3,201,360 1,489,036 1,905,695 1,593,512 Total Assets 169,272,820 155,719,784 147,719,436 139,253,819 137,784,188 Liabilities Other Liabilities 1,546,239 1,154,735 1,010,564 1,658,871 399,254 Notes Payable 15,807,477 9,601,758 5,866,737 -- -- Total Liabilities 17,353,716 10,756,493 6,877,301 1,658,871 399,254 Share Drafts 19,671,665 17,444,129 15,600,683 15,212,637 13,866,738 Shares 89,922,809 84,872,034 80,619,755 73,895,928 68,441,973 Certificates 24,621,183 26,523,421 29,979,236 34,987,320 42,395,646 Total Shares 134,215,657 128,839,584 126,199,674 124,095,885 124,704,358 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 15,073 (37,820) ------Undivided Earnings 14,817,415 13,290,568 11,771,502 10,628,104 9,809,617 Total Equity 17,703,447 16,123,707 14,642,461 13,499,063 12,680,576 Total Liabilities & Owners Equity 169,272,820 155,719,784 147,719,436 139,253,819 137,784,188 Income Loan Interest 5,735,483 5,504,505 5,437,885 5,049,310 4,703,698 Investment Interest 1,210,797 1,054,875 916,077 1,052,562 982,856 Other Income 2,944,045 2,925,703 2,799,596 2,814,610 2,636,814 Total Income 9,890,325 9,485,083 9,153,558 8,916,482 8,323,368 Expenses Staffing 3,989,375 3,597,057 3,366,253 3,444,217 3,014,947 Dividends 529,012 562,537 784,440 1,110,888 1,647,036 Interest Expense - Borrowings 195,251 95,840 17,092 -- -- Allowance for Loan Losses 267,000 479,000 693,947 329,415 799,639 Operating 3,382,841 3,127,616 3,029,625 2,905,284 2,693,154 NCUA Stabilization Expense -- 103,968 118,804 308,190 326,766 Total Expenses 8,363,479 7,966,018 8,010,161 8,097,994 8,481,542

Net Income (Loss) $ 1,526,846 $ 1,519,066 $ 1,143,398 $ 818,488 $ (158,174) Financial Ratios Return on Average Assets (ROAA) 0.94% 1.00% 0.80% 0.59% -0.12% Net Interest Margin 3.83% 3.89% 3.89% 3.60% 3.02% Operating Expenses to Average Assets 4.54% 4.50% 4.54% 4.80% 4.48% Efficiency Ratio 74.58% 71.99% 71.42% 74.58% 72.51% Loans to Shares 81.44% 75.31% 74.50% 73.74% 64.55% Allowance for Loan Loss to Total Loans 0.94% 1.25% 1.11% 1.15% 1.19% Net Charge-offs to Average Loans 0.40% 0.32% 0.82% 0.20% 0.72% Delinquent Loans to Total Loans 0.74% 1.02% 0.96% 1.47% 1.70% Capital to Assets 10.45% 10.38% 9.91% 9.69% 9.20% Distribution of Income Operating Expenses $ 7,372,216 $ 6,828,641 $ 6,514,682 $ 6,657,691 $ 6,034,867 Dividends 529,012 562,537 784,440 1,110,888 1,647,036 Capital 1,793,846 1,998,066 1,837,345 1,147,903 641,466 Number of Members 16,833 16,431 16,009 15,555 15,395 Number of Employees 64 61 59 55 53

6 2014 Annual Report VacationLand Federal Credit Union A Message from Our Treasurer of the Board of Directors

2014 EARNINGS AND MEMBERSHIP GROWTH Thanks to the loyalty of our long-term members and the infl ux Return on Average Assets 1.00% of new members, I am pleased to report another strong year 1.00% for VacationLand Federal Credit Union. Net Income for 2014 0.94% eclipsed the $1.5 million mark for the second consecutive year 0.80% reaching $1,526,846. The 2014 Return on Average Assets was 0.80% a solid .94%, compared to 1.00% and .80% in 2013 and 2012 0.60% respectively. 0.59%

Our membership has grown from 16,431 in 2013 to 16,833 at 0.40% 2014 year-end, a direct result of the efforts from management and staff to provide superior member service. We have 0.20% managed the Credit Union with integrity, protecting its safety and soundness, and thereby fostering the confi dence of our 0.00% members and community at large. 2010 2011 2012 2013 2014 -0.12%

DEPOSIT INSURANCE UP TO $500,000 -0.20% More and more individuals, families and small local businesses are discovering the benefi ts of a not-for-profi t fi nancial cooperative and are moving their money to credit unions. This year, our Members deposits grew by $5.4 million to over $134 million by year-end 17,000

2014. All depository accounts are insured up to $500,000. The 16,833 16,431 fi rst $250,000 of insurance is provided by NCUA’s National 16,000 Credit Union Share Insurance Fund while the second $250,000 16,009 15,395 15,555 is made available through private insurance from Excess Share 15,000 Insurance Company, paid for by VacationLand.

14,000 2015 AND BEYOND

VacationLand Federal Credit Union’s decisions are made with 13,000 our members’ best interests in mind. We will continue our long history of giving back to our members in the form of better 12,000 rates, low or no fees and more affordable fi nancial services. We are committed to deliver member-driven service as evidenced 11,000 by the purchase and renovations of a new branch in Huron. Thank you for your confi dence and loyalty in our credit union. 10,000 20102011 2012 2013 2014 On behalf of the Board of Directors, we wish to extend our thanks to the staff and management for meeting the fi nancial needs of our members with such great care and commitment. Efficiency Ratio 77.00% Sincerely, 76.00% Tracy Luc

Treasurer of the Board of Directors 75.00%

74.58% 74.58% 74.00%

73.00%

72.51% 72.00% 71.99%

71.42% 71.00%

70.00%

69.00% 20102011 2012 2013 2014

Huron Branch, 2402 University Dr., Huron, Ohio 44839

2014 Annual Report 7 VacationLand Federal Credit Union Improving Our Communities

TOGETHER WE MAKE A DIFFERENCE 2014 was an event-packed year for VacationLand Federal Credit Union. them with expanded programming and job opportunities for Between credit union hosted events and participation in community individuals with disabilities. Additionally in 2014, VLFCU made the fundraisers and sponsorships, VLFCU was represented at over thirty fi rst payment of $2,000 toward our $10,000 pledge to the Second events throughout the year. Members were treated to three special Harvest Food Bank. events, including Credit Union Youth Appreciation Week, International Credit Union Day, and the Open House of our new branch and We thank our members and local partners for their generosity and operations center. VLFCU once again hosted the Annual Easter Egg compassion. With your continued support, VacationLand remains Hunt at Osborn Park, where the great weather brought out several dedicated to serve our community well into the future! hundred children and their parents from the community. Best regards, Each year members are asked to help support local charities. In Heather Gilchrist 2014, members gave back to the community by supporting several Marketing Coordinator important causes including: PICTURE THIS! • Stuff the Bus, a back to school supplies campaign co-sponsored Every year, VacationLand distributes a limited number of by VLFCU, the Sandusky Mall, United Way of Erie County, the complimentary wall calendars. In 2014 we decided to engage our Volunteer Center of Sandusky and Ohio Business College. members and asked for photo submissions of scenes around Erie • Fall Food Drive, benefi ting the Sandusky Salvation Army food County. After a committee selected the semi-fi nalists, the photos pantry. were posted to our Facebook page where members and social • Coats for Caring, a partnership with BAS Broadcasting to media fans could vote for their favorites. Nineteen photos were collect gently used coats and winter apparel for residents in chosen to be printed throughout the calendar. Erie and Huron Counties. This project received many compliments, and plans have been • VLFCU Toy Drive, donations of new toys to assist families made to renew this idea for 2015. Members will receive information in need served by the Erie County DJFS and the Sandusky in future communications on how they can participate. In the Salvation Army. meantime, start shooting those pictures! In addition to community participation, VacationLand Federal Credit Union contributed $22,863 in the way of monetary and in-kind donations in 2014. Following is a breakdown of these donations: • Monetary donations: ...... $18,235 • Raffl e items valued at: ...... $265 • Pink Visa Card donations:...... $1,363 • High School Scholarships:...... $3,000 As we look ahead to the future needs of the community, VLFCU pledged to support two new capital campaigns beginning in 2015. A gift of $12,500, payable over fi ve years, has been committed to the Foundation for Firelands in support of the Center for Women and Newborns at Firelands Regional Medical Center. The credit union also pledged to assist Ability Works by providing a $5,000 pledge, payable over three years, to the renovation costs of their newly acquired facility in Sandusky. The relocation will provide

8 2014 Annual Report VacationLand Federal Credit Union We Are Here to Serve You

MANAGEMENT STAFF Bryan Myers — Chief Executive Offi cer Heather Baer Mitchell Fallis — Chief Financial Offi cer Kate Bogard Marla Troike — Chief Operations Offi cer Deb Booth Katja Rall-Koepke — Director, Human Resources Lynne Brownell Jami Andres — Senior Vice President, Consumer Lending Mary Campbell Brett Gerber — Senior Vice President, Business Lending Heather Cantu Tracie Dahlke — Vice President, Branch Management & Collections Brianna Cheek Peggy Day — Vice President, Branch Management & Norwalk/ Charlie Conway-Johnson Vermilion Business Development Keily Crow Barbara Yost — Vice President, Branch Management & Facilities Annette Crum Stephanie Helton — Assistant Vice President, Credit Analyst Sandy Cummings Brian Barker — Finance Manager Trisha Dauch Evie Bonzar — Training Manager Jen Enzor Derek Callin — IT Coordinator Megan Etzler Heather Gilchrist — Marketing Coordinator Kimberly Fields Davida Sosa — Executive Assistant Marilyn Finnen Mandi Fleck Debra Graves Nancy Hart We’ll work for you as we work with you Ann Hermes G. Elaine Hines to manage your fi nances, invest in a new Lisa Howerton Mary Jackson home or business, or save for retirement. Carol Lawrence Together, we can succeed. Sheri Leber Amy Leroux Shelly Luipold Jill Mercer Julie Musick Kathy Old INDEPENDENT FINANCIAL ADVISOR Shelli Pfl ieger David Karikas, of Preferred Planning Abbie Picciuto Associates, offers more than 25 years Barb Pickering of experience in non-deposit investment Cayte Pisano products (a), insurance and fi nancial Stephanie Prieur advice. David’s services are available to Jan Roberts VLFCU’s members. Julie Ruffi ng David Karikas serves over 600 members Samantha Savage with over $25 million in invested assets. Chareese Simmons Additional products include Life Insurance, Long-Term Care Kathy Slusher and Fixed Annuities. David is located at our Perkins Offi ce, Terry Souter 2409 East Perkins Avenue, Sandusky, Ohio or call 419 625.9025 Debbie Todd Extension 1777. Stephanie Voltz Brook Walton (a) Non-deposit Investment Products: are not FDIC or NCUA insured, Wendy Warren are not obligations of or guaranteed by VacationLand Federal Credit Amy Wasem Union, involve investment risk and may lose value. David Karikas is Debora Weaver a Registered Representative offering securities through Cambridge Christy Wohlever Investment Research, Inc., a broker/dealer, Member FINRA/SIPC. Emily Zilke Cambridge, VacationLand Federal Credit Union, and Preferred Planning Associates are not affi liated companies.

2014 Annual Report 9 VacationLand Federal Credit Union We Are Here to Serve You

HAYES BRANCH & OPERATIONS CENTER STAFF NORWALK BRANCH STAFF

PERKINS BRANCH STAFF VERMILION BRANCH STAFF

MANAGEMENT

10 2014 Annual Report SANDUSKY ATM LOCATIONS 2911 S. Hayes Ave. All fi ve of our branches are equipped with ATM’s to provide Sandusky, OH 44870 24-hour access to cash funds. Additionally, members can T: 419.625.9025 access their accounts at the following business locations: T: 800.691.9299 Kyklos Bearing International (KBI) Lobby & Drive Through Hours 2509 South Hayes Avenue Monday – Friday: 9:00 am - 5:00 pm Sandusky, OH 44870 Saturday: Closed Plant Cafeteria

SANDUSKY Firelands Regional Medical Center 2409 E. Perkins Ave. 1111 Hayes Ave. Sandusky, OH 44870 Sandusky, OH 44870 T: 419.625.9025 2nd Floor - Vending Machine Area T: 800.691.9299 Lobby Hours Firelands Hospital – South Campus Monday – Friday: 9:00 am - 5:00 pm 1912 Hayes Avenue Saturday: 8:30 am - 12:00 pm Sandusky, OH 44870 Lower Level – Near Elevators Drive Through Hours Monday – Thursday: 9:00 am - 5:00 pm International Automotive Components (IAC) Friday: 9:00 am - 6:00 pm 1608 Sawmill Parkway Saturday: 8:30 am - 12:00 pm Huron, OH 44839 Outside Plant Cafeteria HURON 2402 University Dr. Vermilion - Main Street Soda Grill Huron, OH 44839 5502 Liberty Avenue T: 419.433.3229 Vermilion, OH 44089 Lobby & Drive Through Hours Walk-Up ATM – East Side of Building Monday – Friday: 9:00 am - 5:00 pm Saturday: 8:30 am - 12:00 pm CONNECT WITH US CU*Talk: 419.621.8328 or 877.256.3336 NORWALK Website: www.vlfcu.org 295 Milan Ave., Ste. C Social Media: Norwalk, OH 44857 f Facebook: www.facebook.com/VacationLandFCU T: 800.691.9299 t Twitter: www.twitter.com/VacationLandFCU y Youtube: www.youtube.com/VacationLandFCU Lobby Hours Monday – Friday: 9:00 am - 5:00 pm Saturday: Closed Drive Through Hours Monday – Friday: 9:00 am - 5:00 pm Saturday: 8:30 am - 12:00 pm

VERMILION 1607 State Route 60 N., Ste. 11 Vermilion, OH 44089 T: 440.967.5155 T: 800.691.9299 Lobby & Drive Through Hours Monday – Friday: 9:00 am - 5:00 pm Saturday: 8:30 am - 12:00 pm Federally Insured by NCUA