Annual Meeting Date: February 16, 2021 at 6:00 PM

I. Call to Order, Board President Stu Fitzpatrick

II. Roll Call, Board Secretary/Treasurer Eric Silm

III. Introductions, Chief Executive Officer Patrick Hunt

IV. Approval of Agenda, Board President Stu Fitzpatrick

V. Approval of Last Year’s Minutes, Board President Stu Fitzpatrick

VI. 2020 Reports, Board President Stu Fitzpatrick

• Executive Report, Chief Executive Officer Patrick Hunt

• Financial Report, Chief Financial Officer Chris Harris

➢ 2020 Statement of Financial Condition, Board Vice President Chris Kowatch

• Lending & Solutions Report, Chief Lending Officer & Chief Experience Officer Jeffrey Kusler

• Member Experience Report, AVP of Member Experience William McSweeney

• Supervisory Committee Report, Supervisory Committee Chair Larry Grennell

• 2020 Year in Review, Vice President Human Resources & Marketing April Steele & Chief Executive Officer Patrick Hunt

VII. Old Business (called 3 times), Board President Stu Fitzpatrick

VIII. New Business (called 3 times), Board President Stu Fitzpatrick

IX. Board of Directors Election Review, Board President Stu Fitzpatrick

X. Public Comment, Board President Stu Fitzpatrick

XI. Adjournment, Board President Stu Fitzpatrick MINUTES

Journey Federal Credit Union Official Family Annual Meeting Tuesday, February 18, 2020, 6:00 pm - 7:00 pm SJ Branch Lobby

A. Call to Order Stu Fitzpatrick called the Annual Meeting to order at 6:00 PM. B. Roll Call * Need 15 members present for a quorum to be satisfied Terry McDonald conducted roll call. More than 15 members we present for the Annual Meeting which resulted in a quorum being satisfied. C. Introductions (Board Members, Supervisory Committee, and Management) Stu Fitzpatrick introduced the Journey Federal Credit Union Board of Directors and Supervisory Committee. Patrick Hunt introduced the Journey Federal Credit Management Team and Staff present. D. Approval of Agenda Terry Thelen made a motion to accept the agenda as presented. Eric Silm supported the motion, motion passed. E. Approval of Last Year's Minutes Chris Kowatch made a motion to approve last year's annual meeting minutes as presented, Austin Drake supported the motion, motion passed.

F. 2019 Reports - CEO Report

- Financial Report > 2019 Statement of Financial Condition

- Lending Report

- Supervisory Committee Report

- 2019 Year in Review

Confidential Information - For Board Use Only - Do not Redistribute Page 1 of 3 Stu Fitzpatrick announced there are six reports in the packet that will be summarized by Patrick Hunt, Chris Harris, Chris Kowatch, Jeffrey Kusler, and Larry Grennell. G. CEO Report Patrick Hunt, CEO, provided a verbal summary of the CEO Report. Eric Silm made a motion to approve the CEO Report as presented. Roger Sosebee supported the motion, motion passed. H. Financial Report Chris Harris, CFO, provided a verbal summary of the Financial Report. Roger Sosebee made a motion to approve the Financial Report as presented. Ryan Austin supported the motion, motion passed. I. Statement of Financial Condition Chris Kowatch, Board VP, provided a verbal summary of the Statement of Financial Condition. Terry Thelen made a motion to approve the Statement of Financial Condition as presented. Larry Grennell supported the motion, motion passed. J. Lending Report Jeffrey Kulser, CLO/CXO, provided a verbal summary of the Lending Report. Austin Drake made a motion to approve the Lending Report as presented. Ryan Austin supported the motion, motion passed. K. Supervisory Committee Report Larry Grennell, Supervisory Committee Chairman, provided a verbal summary of the Supervisory Committee Report. Terry Thelen made a motion to approve the Supervisory Committee Report as presented. Roger Sosebee supported the motion, motion passed.

L. 2019 Year in Review Patrick Hunt, CEO, provided a verbal summary of the 2019 Year in Review Report. Chris Brewbaker made a motion to approve the 2019 Year in Review Report as presented. Dean Sharick supported the motion, motion passed. M. Old Business (called 3 times) Stu Fitzpatrick called for old business three times. There was no old business

Confidential Information - For Board Use Only - Do not Redistribute Page 2 of 3 presented. Eric Silm made a motion to close old business. Roger Sosebee supported the motion, motion passed. N. New Business (called 3 times) Stu Fitzpatrick called for new business three times. Dean Sharick made a motion to close new business. Ryan Austin supported the motion, motion passed. O. Board of Directors Election Review Stu Fitzpatrick provided an update that there was no Board of Directors election for 2020 due to no petitions submitted. Stu Fitzpatrick, Eric Silm , and Dean Sharick decided to continue to serve on the Board of Directors and were approved by the Nominating Committee. Their terms are through 2023. P. Public Comment Stu Fitzpatrick asked if there is any public comment. Roger Sosebee commented that he is proud of the success of Journey Federal Credit Union over the past year and expressed his thanks and appreciation for the management team and staffs' efforts and hard work to make 2019 a success. Stu Fitzpatrick also expressed his thanks and appreciation for the hard work and dedication of the team at Journey Federal Credit Union. Q. Adjournment Larry Grennell made a motion to adjourn the Annual Meeting. Chris Kowatch supported the motion, motion passed. The Annual Meeting was adjourned at 6.37 PM.

______Stu Fitzpatrick, Board President

______Eric Silm, Board Secretary and Treasurer ______Patrick Hunt, CEO

Confidential Information - For Board Use Only - Do not Redistribute Page 3 of 3 Executive Report

In writing this, we find ourselves in unprecedented times. The COVID-19 pandemic has changed our lives. Some are dealing with heartache. Many are dealing with hardships. We recognize that the impact is widespread and could be long lasting. At Journey Federal Credit Union, our hearts go out to all of our members during these difficult and challenging times. At the same time, we applaud our communities and members we serve for pulling together.

As we navigated 2020, numerous challenges were encountered which impacted our members, communities, staff, and credit union. While we faced these challenges head on throughout the year, we identified opportunities which have cultivated some remarkable feats, achievements, and results. In putting 2020 behind us, we proudly recognize our accomplishments and are excited for our future success. The COVID-19 pandemic continues to drive the national and local narrative. Credit unions have moved out of the “react and respond” phase, which characterized March and April, into the “recovery” phase. We have remained focused on keeping staff and members safe, all the while being “Financial First Responders” for our members and communities we serve. Throughout this meeting, you will hear heartfelt stories of support our team has provided to our members and communities throughout 2020. I am extremely proud of our dynamic team at Journey Federal Credit Union and it has been an honor working alongside each of them. Journey Federal Credit Union ended the year 2020 in a strong financial position, which has assisted us in weathering these tumultuous times.

Journey Federal Credit Union 2020 Annual Performance

• Assets grew 25.49% ending the year at $160.6 million. o As we encountered this rapid asset growth, income has not kept pace, resulting in downward pressure on our net worth position. At the end of 2020, our net worth position was 8.22%, a decrease from our 2019 year-end net worth position of 9.89%. However, we are still considered “well capitalized” by the National Credit Union Association (NCUA). • Loans grew 13.44% with an ending loan balance of $79.8 million. • Shares grew 27.82% with an ending share balance of $146.5 million. Journey Federal Credit Union embarked on a visionary strategic plan in 2020 which continues to drive modernization at our Credit Union. As a Credit Union, we are pleased to report the many accomplishments that improved the member and staff experience. Journey Federal Credit Union 2020 Strategic Accomplishments

• Redesigned Journey Federal Credit Union Website (equipped with online chat feature). • Technology infrastructure upgrades resulting in increased cybersecurity levels, fostering redundancy, maximizing uptime, and improving business continuity. • Implemented “Instant Issue” debit service at all branch locations. • Revolutionized the credit union’s phone technology through a full-scale phone conversion. • Two new departments were created and introduced in 2020, which include the Card Services Department and Quality Control Department, to assist with our efforts to improve member experience and internal controls. Journey Federal Credit Union currently serves the financial needs of 17,936 members, which was an increase of 537 members compared to the end of 2019. As a member of Journey Federal Credit Union, you are a member-owner, and we operate to serve your needs. Our nine-member volunteer Board of Directors donate their time each month to represent you, our member-owners. Our Board of Directors has your best interest at heart as they provide oversight and guidance for our future. In 2021and beyond, we will continue to refine our processes and adapt our service delivery to better meet your financial needs with a focus on consulting and providing solutions, versus treating people like numbers. We are committed to embracing our communities, employing empathy in our problem solving, and strengthening the financial position of our membership and communities. On behalf of Journey Federal Credit Union, I want to thank you for your membership. We look forward to serving you and your financial journey for years to come.

Sincerely, Patrick Hunt, Chief Executive Officer Financial Report

In review of our 2020 financial performance, it has been a year of robust growth. Due to stimulus funds, we have experienced a large increase in our balance sheet. Specifically, assets increased $32.6M and deposits increased $31.9M as well. This growth was partially lent out ($9.4M) and set towards our allowance for loan loss ($159k) but the large majority is still in cash ($22M). As we understand the longevity of the stimulus dollars, we will begin to invest in the best way possible in 2021.

With the growth comes a concern of having enough equity to sustain future losses. I am happy to report that even though we were able to grow, we were also able to put over $556k towards potential future losses. Although we saw a decrease to our capital ratio, we are still considered “well capitalized” according to regulatory standards.

Journey Federal Credit Union also had a successful 2020 income statement. During the year, the Credit Union reported a net income of $556,200.07. While navigating the new environment and the challenges that have come with it, we were able to continue to find ways to generate more revenue while trying to keep operating expenses as low as possible. Thanks to the efforts of our employees, members, and community, we were able to find success in such a chaotic year.

Thank you all for your support to keep Journey FCU strong!

Sincerely, Christopher Harris, Chief Financial Officer, CPA JOURNEY FCU - STATEMENT OF FINANCIAL CONDITION FOR 2020 Balance Sheet 12/31/20 YTD Income & Expense Statement 12/31/20 ASSETS INCOME Total Loans to Members $79,859,353.11 Loan Interest $ 3,801,882.82 Less: Allowance for Loan Loss ($590,327.26) Investment Income $ 788,115.25 Cash & Cash Equivalents $32,862,645.42 Operating Income $ 1,672,730.88 Investments $40,940,490.97 Total Gross Income $ 6,262,728.95 Building & Land $1,812,397.85 Other Fixed Assets $207,981.96 EXPENSES NCUSIF Deposit $1,289,089.16 Compensation & Benefits $2,202,038.66 Other Assets $4,253,708.23 Travel, Conference, Memberships $21,246.78 TOTAL ASSETS $160,635,339.44 Office Occupancy $189,148.45 Office Operations $1,118,006.72 LIABILITIES & EQUITY Education & Promotion $139,423.73 Accounts Payable $400,518.00 Loan Servicing $243,253.02 Accrued Expenses $47,725.07 Professional & Outside Services $693,779.39 Other Liabilities $0.00 Provision for Loan Losses $522,291.59

Regular Shares & Club Accounts $55,071,272.14 Insurance & Examination Fees $34,878.60 Money Market Accounts $42,505,453.40 Miscellaneous $36,947.94 Share Draft (Checking) Accounts $33,403,843.31 TOTAL EXPENSES $5,201,014.88 Term Share Certificates $15,532,266.30

Regular Reserves $1,413,026.90 Investment Gain (Loss) $ - Undivided Earnings $11,252,358.24 Real Estate Gain (Loss) $ (70,962.95) Unrealized Gain on Investments $452,676.01 Net Income before dividends $ 990,751.12 Net Income $556,200.07 TOTAL LIABILITIES & EQUITY $160,635,339.44 Less: Cost of Funds InterestI on Borrowed Funds $ - n Statistical Information Dividends Paid to Members $ 434,551.05 Members NET INCOME $ 556,200.07 Loans Written this Year 2,104 Loan Amount this Year $ 36,613,631.00 Number of Loans Since Origin 95,713 Amount of Loans Since Origin $ 493,895,324.13 Lending & Solutions Report

It goes without saying that 2020 was a tumultuous year that presented Journey with a number of unique and exciting opportunities in operating during a global pandemic. While our lobbies were forced to close twice throughout the year and a number of our day-to-day operations changed, JFCU still had a historic year in regard to lending performance – especially considering the fact that economies shutting down in March led us to one of the lowest loan originating months in recent history. Over the course of the year, Journey Federal Credit Union’s loan portfolio grew by nearly 14% to just under $80,000,000. 2020 Consumer Lending by Month $4,000,000.00

$3,500,000.00

$3,000,000.00

$2,500,000.00

$2,000,000.00

$1,500,000.00

$1,000,000.00

$500,000.00

$0.00 Jan Feb Mar Apr May Jun Jul Aug Sep Oct

Direct Indirect Total

These results were not accidental; JFCU staff and leadership instituted several changes throughout the year in response to the ever-changing economic climate as brought on by COVID 19. ➢ Responding to the Emergency and Epidemic Orders, some JFCU staff began working remotely. During this time, we were able to close nearly 100%of our loans electronically based on the groundwork on eClosings made in 2019. ➢ After reviewing the competitive landscape in May 2020, several changes were implemented to the rate and reserve structure so that we could effectively drive business from competitors to JFCU. These changes also provided members a good opportunity to save money by refinancing their loans at the lower rates. As the chart above evinces, originations took off. ➢ Recognizing that lower rates could lead to a shrinking portfolio as loans repriced and members refinanced, JFCU set off on a strategy to drive additional refinance business. This was accomplished by introducing a Refinance rate special in May that led to $2,000,000 in additional funds lent to the community. ➢ With the rapid changes put in place and recognizing the importance of a robust quality assurance program, we created a Quality Control Department, managed by the Lending Manager, to review all loan files and ensure compliance with all applicable rules and regulations. This led to us having no material findings in our NCUA Examinations. ➢ Further, with rates hitting record lows, we knew mortgage business would explode. We worked hard with Mortgage Center, our mortgage lending partner, to establish parameters to improve speed and service. By the end of the year, we had underwritten just under $8,700,000 in new and refinanced mortgage loans – a JFCU record. ➢ The enhanced unemployment benefits and federal stimuli led to an influx of deposits and an elevated cash position. Leveraging this cash position and our commercial lending partners, we helped our business communities and increased our commercial loan portfolio tenfold. ➢ In continuing this trend, JFCU’s lending department set the groundwork to begin offering Payroll Protection Program loans by working with our commercial lending partners.

On the other side of the coin and in continuing the theme of unique and exciting opportunities, it’s not often that almost an entire department turns over in the course of a month, but that’s what happened in 2020 to our Solutions Department. A long term JFCU employee and Solutions Manager retired the same week that one of the Solution Specialists announced her plans to move away from the area. Fortunately, the remaining employee had over 30 years of collection experience and previous management experience, and easily moved into the managerial role. Once that role was filled, we replaced the two staff level positions through internal hires. The new manager rebuilt the department quickly by a steadfast approach to onboarding, training, and mentoring. Additionally, he instituted several changes to processes and procedures. These changes led the Solutions department to one of the most productive years in history.

During the shutdown periods, JFCU immediately sprang into action as spearheaded by our Solutions team to support our membership. During this time, ➢ We began waiving fees for members to skip their payments when affected by the pandemic. o For perspective, Journey receives an average of roughly 11 skip-a-pay requests a month. In April, the first full month of the shutdown, we processed nearly 150 requests, waiving almost every fee. o While a Skip-a-Pay allowed a member to skip one month’s payment, other members were more deeply affected. For those members, our Solutions Team worked with them to establish a set of mutually beneficial payment arrangements to help them through the most difficult periods. o After reviewing our loan extension process, several changes were implemented to clarify roles and minimize steps, leading to a far better member experience when attempting to find a solid financial footing. ➢ We amended our standard collection procedures in response to the pandemic: o Specifically, we extended our collection timelines and expressed our desire to help in correspondence to allow members affected by the pandemic a chance to get back on their feet. o We delayed more stringent collection methods when at all possible to provide as much to relief as members as possible. ➢ After a lengthy review process, we established relationships that would allow us to rapidly increase staffing should the demand on the Solution Specialists increase dramatically. ➢ Found ways to offset costs to the membership by working with our collateral insurance protection provider, recovery specialists, auction houses, realtors, and other industry partners.

All things considered in this pandemic environment, from a collections and delinquency standpoint, 2020 was a very strong year. Although the US had the greatest levels of unemployment in over 40 years, delinquency stayed historically low – a result of strong leadership, a diligent review of processes, and a rounded approach to collections that aimed at bettering the members’ relationship with JFCU through the collection process.

Sincerely, Jeffrey Kusler, Chief Lending Officer & Chief Experience Officer Member Experience Report

Member Experience made great strides in 2020 while overcoming many obstacles. For the first time in our history, we spent a large portion of the year with our lobbies closed and services limited due to the pandemic. Member Experience staff showed a relentless desire to do better and adjusted on the fly to stay ahead of any changes that were thrown their way. As a team they surpassed the goals set at the start of the year and showed an ability to produce amazing results while working through adversity. The team also made significant changes to procedures, staffing, and objectives in 2020. They introduced a new product guide including all of our product and services, strengthened our relationship with members by providing alternative ways to meet their needs, eliminated unnecessary restrictions, and helped build our loan portfolio.

In addition, the Contact Center was expanded, our phone system was upgraded, and a new online chat feature was added for our members to use. The new phone system and chat enhanced the member experience allowing for the Contact Center to produce a large percentage of our loan volume while reducing the amount of interference members were facing when calling the Credit Union. A Card Services department was created to handle the deconversion of our VISA portfolio and to establish an internal department that could handle Card Servicing needs as we move forward. The growth of our Contact Center and creation of a Card Servicing department prompted the expanded usage of our Fowler location relocating our Contact Center and Card Services area to that branch location.

Several new positions were created in Member Experience: • AVP of Member Experience • Card Services/Contact Center Manager • Card Servicing Specialist I • Vault Teller

New tiering was implemented to help with the development of staff: • Contact Center Specialist II • Teller II

Focus has and will continue to be on ensuring each member is valued, appreciated, and encouraged to take advantage of all the services Journey has to offer. Our dynamic team has shown an ability to navigate through any challenge they are presented with and a willingness to adapt as we face challenges. As we move in to 2021 this gives me great confidence in their ability to ensure our Credit Union continues to move in a positive direction.

Sincerely, William McSweeney, AVP of Member Experience Supervisory Committee Report The National Credit Union Administration (NCUA) conducted an examination through September 30, 2020. The credit union was found to be in satisfactory condition. The Supervisory Committee scheduled a comprehensive internal audit conducted by Financial Standards Groups. The audit was conducted through September 30, 2020. Additionally, the annual audit found no significant findings and no opinion was given by Financial Standards Group. The committee works with management and oversees the completion of recommendations made as a result of both the NCUA Exam and the internal FSG audit. The Supervisory Committee also completed the following throughout the year:

• Reviewed Monthly Financial Statements • Reviewed Currency Transactions Reports (CTR) • Reviewed Select Policies for Compliance • Verified Board Education Requirements • Conducted a Member Account Verification • Conducted internal audits on cash, closed accounts, expense reports, loan samples, membership qualifications, and file maintenance

The Supervisory Committee reported all findings to the Board of Directors monthly. There were no significant findings from the Supervisory Committee’s reviews and internal audits. Sincerely, Larry Grennell, Supervisory Committee Chairperson 2020 marked several milestone anniversaries for the Team at Journey FCU! We celebrated the 5th Anniversaries of Patrick Hunt (CEO), Bobbie Blemaster (Senior Teller), Pam Krull (Teller II), Alyssa Fitzpatrick (Contact Center MSS), Ron Zimmerman (Solutions Manager), and Rachel Maier (Vault Teller). We also had one 30th Anniversary celebration for Laureen Wineland (Quality Assurance Specialist).

After dedicating more than 34 years to JFCU, we celebrated with Teresa Thurlow (Solutions Manager) in her journey to retirement in August 2020.

Journey FCU redesigned our scholarship program in 2020, doubling the award amount to $1,000 and increasing the number of winners from two to three. The winners for 2020 were Alex Pung (St. Johns), Sadie Weber (Fowler) and Josie Nash (Ovid- Elsie).

Our website saw a complete overhaul in 2020 as well! Not only does the page have a sleeker design, it also has improved functionality! We now have an ADA compatibility feature as well as an online chat feature that allow for a better experience.

The Credit Union held one Professional Development Day for staff in 2020 due to COVID-19. We used this day as a team-building event where a local small business, Fab Five Design @Whimsical Party Gallery, was on-site to host a painting party! Staff enjoyed the team experience and got to take their artwork with them as a gift.

Another exciting change was a partnership with Banzai – an online financial literacy program designed to teach people what real-world finance is really like. This partnership provides FREE access to the program for members as well as learning materials for local area schools. In June, we celebrated the 15 Year Anniversary of our Fowler Branch location – quarantine style! The celebration took place through social media, with giveaways to local Fowler community businesses and post commemorating the last 15 years of serving members in that area.

Early in the year, Journey FCU had to learn to navigate the impact of COVID-19 on our staff, our members, and our community. To adapt to these unprecedented circumstances, we turned our focus to ways we could operate safely and still serve our members.

Several employees were deployed to work remotely to minimize the number of people reporting to the office during lobby closures. We served the majority of our membership by phone and through our online & mobile channels as well as through our drive-up teller service. Despite all the challenges, we found ways to operate in this “new normal” environment. We transformed our lobbies & offices to incorporate plastic shields, provided PPE to staff and members, and increased cleaning protocols to meet CDC sanitization standards. Additionally, we waived certain fees, created new loan discounts, and implemented a scheduling procedure for face-to-face member appointments.

We want to pay tribute to two important individuals that we lost in 2020. Terry McDonald was a resident of the St. Johns community since 1987 and served on the Board of Directors of Journey Federal Credit Union for almost 20 years. During that time, he served as Secretary/Treasurer and successfully completed various continuing education classes through the National Credit Union Association. In 2010, he retired from the Michigan Department of Treasury after 36 years of service. Terry was an active member of Saint Johns Lutheran Church, the St Johns Lions Club, and was also a volunteer for the Clinton County Cemetery Restoration Group. He enjoyed traveling, hunting, and time with family & friends. He and his wife Pat were married for 45 years and had three children. Sadly, Terry passed away in November 2020 at the age of 68.

Austin Drake joined the team at Journey FCU in January 2018. In his short time with us, he worked his way from a part time Teller position to our full time Special Projects & Technology Specialist. Drake, as he preferred to be called, graduated from St. Johns High School and remained a resident of the community. He was an active member of the Epilepsy Foundation who spoke openly about his condition. Drake loved computers, the color pink, and food from the Crave Shack. He took great pride in his job and always found a way to make others laugh. Drake unfortunately lost his battle with Epilepsy in July of 2020 and will forever be remembered by us all.

We are excited about the opportunities ahead of us in 2021 and we are committed to making your financial dreams a reality!