Recognized leadership, enduring value Trust Crowe for experience, integrity, and credit union industry knowledge.

Audit / Tax / Advisory / Risk / Performance Smart decisions. Lasting value.™ Today’s credit unions must meet changing member expectations, anticipate fast-changing competitive pressures, respond to an evolving regulatory climate, and address rising performance expectations – all while managing risk and long-term strategic issues. In this challenging environment, credit unions need an experienced professional services provider with a proven record of success to help them address these industry challenges.

Crowe – by the numbers • Crowe is the eighth largest U.S. accounting, consulting, and technology firm – according to the “2016 Accounting Today Top 100 Firms” list. • We serve clients from coast to coast. • Financial services is our number one area of industry specialization. • Crowe works with more than 1,800 financial services organizations across the country. • Crowe is one of the top 10 CPA firms for audits of credit unions in excess of $100 million in assets and is ranked sixth for total credit union assets audited.1 • Crowe is the largest independent member of Crowe International, which is the seventh largest global accounting network.

2 Crowe knows what matters to you With more than 50 years of experience working with credit unions, Crowe is recognized as a leading provider of audit, tax, advisory, risk, and performance services. Quite simply, Crowe understands the financial services industry and the issues that most affect credit unions and their professionals.

The financial services industry is the largest area of specialization within Crowe. We serve more than 1,800 financial services organizations across the country, including more than 100 credit unions and credit union service organizations. In addition, Crowe is one of the top 10 accounting firms for audits of credit unions in excess of $100 million in assets and is ranked sixth for total credit union assets audited.1

Of course, size alone isn’t everything. Crowe also has an established reputation for professionalism and industry leadership, and actively participates in and supports organizations such as the National Credit Union Administration, the Credit Union National Association, and the Financial Managers Society, among many others.

crowe.com/cu 3 Our involvement tells the story Crowe actively networks with and supports leading organizations and events associated with credit unions, including the:

• National Credit Union Administration (NCUA) • American Institute of CPAs (AICPA) Conference on Credit Unions • Association of Credit Union Internal Auditors (ACUIA) • Credit Union Internal Auditors’ Association (CUIAA) • Credit Union National Association (CUNA) • National Association of Federal Credit Unions (NAFCU) • National Association of State Credit Union Supervisors (NASCUS) • National Association of Credit Union Supervisory and Auditing Committees (NACUSAC)

For more than 15 years, Crowe the AICPA Regulatory Liaison Task partners have served on the AICPA Force, which meets with NCUA Conference on Credit Unions representatives to discuss matters steering committee by assisting of mutual interest for auditors of with conference development and credit unions and NCUA personnel. providing a variety of speakers for a wide range of topics. As part of our NCUA involvement, Crowe has provided various A Crowe partner serves as chair of training sessions for examiners the AICPA Depository and Lending and conducted joint webinars Institutions Expert Panel. This with the NCUA for credit unions committee maintains an ongoing on accounting matters and risk liaison with regulatory agencies and management topics. standard setters that affect financial institutions, including the NCUA. Crowe professionals also serve on

Professional services expertise

4 Helping make sense of Current expected complicated issues credit loss standard The changes being implemented by implementation audit, accounting, and regulatory For most credit unions, the new standard setters continue to affect model for credit loss accounting the credit union industry at a is the most significant financial fast pace. Crowe shares thought reporting change in decades. leadership by: Beginning in 2021, most credit • Presenting at conferences, unions will implement the Financial including our own annual financial Accounting Standards Board (FASB) institutions conference current expected credit loss (CECL) • Distributing articles, white papers, standard. Crowe is well-positioned newsletters, technical updates, to assist credit unions with their and e-communications – such as implementation of CECL. We have our monthly Financial Institutions made substantial efforts related Executive Briefing – covering to CECL by participating in FASB timely audit, accounting, and roundtable discussions, serving regulatory updates and topics on the FASB Transition Resource • Offering webinars covering Group for CECL, holding meetings accounting, fraud, compliance, with various regulatory agencies, corporate governance, regulatory, preparing white papers, conducting and other operational topics webinars, presenting at national • Making available technical subject conferences, and participating matter specialists to discuss in other related activities. the impact and application of accounting standards • Providing expertise in internal audit, tax, compliance, loan review, corporate finance, merger and acquisition, corporate governance, enterprise risk management, and Bank Secrecy Act/anti-money laundering (BSA/ AML) to credit unions2

crowe.com/cu 5 What sets Crowe apart Crowe delivers an from other providers? exceptional client At Crowe, our approach emphasizes experience direct senior-level involvement in The Crowe client relationship each project so that our clients model provides the framework can be confident they are receiving for delivering the highest levels attention from experienced financial of service and client satisfaction. services professionals. We hold ourselves accountable, Our clients also benefit from our surveying our clients regularly to centralized organizational structure help us understand how we can with no geographic constraints. We improve their experience and earn are able to draw from specialized their trust and recommendations. talent and experienced people from In our most recent survey results, anywhere in the firm to help meet Crowe achieved a 90 percent client the needs of our clients. engagement index. Engaged clients We continually invest in developing are those who agree they like working new highly specialized teams, with us, are likely to continue to use processes, and technologies that us, would go out of their way to keep focus on the risks relevant and working with us, and will recommend impactful to your business and that us to colleagues. According to can increase efficiency. the survey administrator, Crowe scored 35 points above the industry benchmark in this critical measure.*

6 Audit services Competence, Choosing the right professional consistency, and Audit services services firm means you can objectivity • External audits be confident you are receiving Crowe maintains high audit • Benefit plan audits objective, credible information. proficiency through consistency • Specialized audits – Housing and Crowe is a leading provider of of staff, continued training, and Urban Development professional audit services for senior-level involvement in the (HUD), Federal Family credit unions of all sizes throughout engagement, from initial analysis Education Loan (FFEL) the United States. In addition to and risk assessment to completion program, and others being a top 10 accounting firm for and delivery of reports. audits of credit unions in excess Our technological abilities improve of $100 million in assets, Crowe is Other services the audit process by enhancing ranked sixth for total credit union • Financial reporting efficiency and reducing disruption to assets audited.4 • Accounting advisory your credit union. These tools help Our audit specialists stay fully informed expedite the transfer and analysis and up to date on today’s complex and of large amounts of financial rapidly changing financial requirements data through the use of shared and employ a cost-effective, industry- databases and include the Crowe focused, and technology-enabled Insight Center for Audit™ solution, a audit methodology. technology-rich audit methodology, and the CiRT® solution, a web- enabled project tracking tool that also provides secure data sharing.

Integrity and financial industry leadership are also factors. As active participants in and contributors to organizations shaping today’s regulatory environment, Crowe professionals can bring insights into emerging trends and issues affecting the audit engagement.

crowe.com/cu 7 Risk consulting Managing risk for Managing risk across the entire deep subject-matter expertise competitive advantage enterprise is one of the most difficult in risk management, internal Crowe consultants recognize challenges facing credit union audit, fraud and ethics, security that managing business risk is executives. This challenge includes and privacy, and regulatory really about improving business evaluating operational, interest rate, compliance. This knowledge helps performance. We designed the liquidity, credit, cybersecurity, fraud, our consultants advise our clients Crowe Corporate Governance and regulatory compliance risks, about emerging trends, industry Framework to help credit unions and other potential threats from benchmarks, and best practices. work toward the rewards of outside and inside your credit union. By combining in-depth industry enterprise risk management (ERM). skills with practical types of Crowe can help credit unions technology and a singular global Crowe risk management meet their governance, risk, delivery method, Crowe helps professionals help institutions and compliance needs. Our credit unions improve corporate assess and better manage experienced consultants have governance and manage risk. strategic, financial, compliance, operational, security/privacy, and fraud risks. We use a pragmatic ERM approach to provide primary Risk consulting services decision-makers with insights • Credit services • BSA/AML that can aid in achieving strategic Outsourcing of the credit compliance services business objectives. At a higher review function Independent BSA audit level, Crowe internal audit support Managing commercial real Regulatory exam preparation can help provide important estate concentrations and management feedback to management and Acquisition due diligence Forensic and supervisory committees and enable • Internal audit services third-party look-back credit unions to strengthen risk Internal audit cosourcing • Regulatory management and governance. and outsourcing compliance services Our comprehensive risk Corporate governance Compliance management management solutions also can help Enterprise risk management program assessment and strengthen and protect business • Information development intelligence and intellectual property technology services Model governance while reducing complexity in areas IT audit cosourcing and evaluation such as AML transaction processes. outsourcing Consumer Financial The combined effects of these Risk management Protection Bureau (CFPB) programs can include reduced readiness assessment costs, improved accuracy, and Compliance reviews enhanced member service.

8 Tax services Take control of tax- Other tax-matter Crowe tax specialists understand exempt compliance expertise the intricacies of helping your Many state chartered credit Our teams of tax professionals are organization safeguard its most union organizations struggle with not only skilled in exempt issues but valuable asset – your tax-exempt the increasingly complex tax also possess significant experience status. For federally chartered compliance process that is required in all tax matters for tax-exempt credit unions this is not an issue, as for tax-exempt organizations. organizations. Our professionals federally chartered credit unions are They spend precious time are able to assess and identify viewed as federal instrumentalities. gathering and managing data from potential issues, and if necessary, Federally chartered credit unions various departments within their coordinate services from our are not required to file IRS Form 990 organizations. We developed the extensive list of specialists. and are not subject to the federal C-TRAC ® solution to streamline income tax on unrelated business the information gathering process income. The treatment of state and reduce the amount of time and chartered credit unions is different, effort needed to complete your Tax services as they are required to file Form compliance requirements, including • Federal tax services 990 and they are also subject to Form 990, Form 990-T, state tax • State and local tax services the federal income tax on unrelated returns, and related schedules. • International tax services business income. We continually • Compensation and benefit track pending regulatory changes The C-TRAC solution is the only plan services and can work with you to develop IRS-approved software developed • 401(k) plans tax strategies designed to help you by professionals specializing in comply with international, federal, tax-exempt organizations. Created and state and local requirements. and continually refined by Crowe We are experienced and well-versed specialists, this innovative, web- in the issues that face credit based technology provides effective unions, especially with respect to project management tools in line increased merger activities in the with IRS-compliant tax preparation market as well as recent IRS focus requirements. From distributing on unrelated business income conflict-of-interest questionnaires activities unique to state chartered to electronically filing your federal credit unions. extensions and tax returns, the C-TRAC tool can help you complete your returns in less time, at a lower cost, and without straining limited internal resources.

crowe.com/cu 9 Financial advisory services As market conditions change, many credit unions face issues such as loss of liquidity, maintaining member value, and complicated acquisition strategies. Financial advisory Achieving a return on investment takes determination and the proper strategy. services Crowe offers a complete suite of financial advisory consulting services, delivered • Transaction by seasoned professionals who understand the issues related to making services for M&A informed decisions on strategic opportunities available for your credit union. Due diligence Our comprehensive approach includes diligent planning, skillful execution, and Deal evaluation prompt action to help credit unions achieve accurate and timely results. Deal structure Valuation services Day one and day Expanding value and turning goals into achievements two accounting As credit unions look to achieve Once the deal is done, Crowe advisory under FASB growth through strategic specialists are available to help Accounting Standards acquisitions, Crowe offers a institutions assess how purchase Codification (ASC) 805 breadth of skills and a team price allocation and similar Integration approach to help from the first day industry-specific issues will affect • Forensics and of planning an acquisition through their reported earnings. Our litigation support the entire transaction continuum. merger and acquisition integration consultants know where integration Crowe valuation specialists provide risks can impede an acquisition insights into deal planning, financial and, through benchmarking, they reporting, post-deal accounting, can assist in identifying where cost and other associated matters. Our savings may be realized. transaction services professionals can identify deal risk points and In addition, our multidisciplinary, potential deal breakers while credentialed team of forensic offering guidance into transaction specialists offers technical structure and potential opportunities expertise for fraud investigations, for post-acquisition improvement. arbitration services, and expert witness testimony.

10 Performance consulting Staying competitive means it is more knowledge of industry-leading specialists provide executive teams important than ever to take actions practices, types of technology, and with seasoned advice, clear-eyed to improve operations, make better enterprise systems, our consultants objectivity, and proven management use of your data, and focus on your provide practical advice and proven skills to help you assess, strategize, credit union’s overall performance. methods designed to help credit execute, and break through Operational and revenue efficiencies unions create lasting change – and barriers in order to achieve higher begin by increasing visibility into the a performance advantage in the performance. By uncovering processes, technology, data, and areas of productivity, expenses, opportunities to assist in moving resources in these areas. compensation, branch performance, your credit union to the next level process design, and other of performance, we can help you Crowe performance services operational practices. implement operational efficiency may be able to help credit unions improvements, cost reductions, streamline operations, manage Drawing on decades of industry better controls, and quality of information, and build a better experience and our independent service enhancements. bottom line. Using comprehensive perspective, Crowe performance

Maximizing organizational excellence with technology Building on knowledge and • Crowe Credit360 – Stress Testing™ • Our customer relationship expertise in the current technology solution – provides the capabilities management (CRM) solutions landscape and trends, we can credit managers need for a use automated workflows and help credit unions optimize their IT comprehensive analysis of credit guided dialogues to streamline investment with technology planning portfolios including stress testing, key processes such as account and strategy development, system concentration analysis, regulatory onboarding, loan origination, selection, and IT optimization reporting, and economic capital and case escalation. CRM designed to focus on current and management. solutions are designed to help future needs. • Crowe Financial Data Automation improve profitability by enabling solution – automates the you to capitalize on cross-sell Our solutions can assist your collection of commercial opportunities and align pricing organization in many ways: customer financial statement and policies with customer data in order to reduce effort retention strategies. • Crowe Portfolio Analyzer™ and inconsistencies as well as solution – assists credit unions in ease access. more effectively monitoring and • Our data integration, business analyzing credit risks, identifying Performance intelligence, and visual analytics portfolio trends and risk exposure, consulting services solutions help credit unions take performing industry-specific peer advantage of powerful information • Performance advisory analysis, identifying problems management technology, identify • Revenue enhancement earlier, and enhancing loan service growth opportunities, • Operational improvement management practices. and provide the metrics to solve • Information management management challenges. • Portfolio management and stress testing

crowe.com/cu 11 Connect with us About Crowe We invite you to learn why many “Crowe” is the brand name under which the member firms of Crowe Global credit unions have turned to Crowe operate and provide professional services, and those firms together form the as their preferred provider for audit, Crowe Global network of independent audit, tax, and consulting firms. “Crowe” tax, advisory, risk, and performance may be used to refer to individual firms, to several such firms, or to all firms services. Please contact: within the Crowe Global network. The Crowe Horwath Global Risk Consulting entities, Crowe Healthcare Risk Consulting LLC, and Crowe Cayman Ltd. are Mark Taylor subsidiaries of Crowe LLP. Crowe LLP is an Indiana limited liability partnership +1 630 575 4335 and the U.S member firm of Crowe Global. Services to clients are provided [email protected] by the individual member firms of Crowe Global, but Crowe Global itself is a Register to receive Crowe financial Swiss entity that does not provide services to clients. Each member firm is a institutions e-communications at separate legal entity responsible only for its own acts and omissions and not www.crowe.com/signup. those of any other Crowe Global network firm or other party. Visit www.crowe. com/disclosure for more information about Crowe LLP, its subsidiaries, and Crowe Global. 1 Source: “2016 Supplier Market Share Guide: Credit Union Auditors,” Callahan & Associates

2 In accordance with applicable professional standards, some firm services may not be available to attest clients.

3 “Most Engaging Customer Experiences” business-to-business survey – accounting and tax, PeopleMetrics Inc., http://info. peoplemetrics.com/2013_mecx_b2b_ accounting_download

4 Source: “2016 Supplier Market Share Guide: Credit Union Auditors,” Callahan & Associates

crowe.com/cu

The C-TRAC® solution was invented by Geralyn Hurd of Crowe. A patent is pending for the C-TRAC solution. A patent is pending for the Crowe Financial Data Automation solution. The Crowe Financial Data Automation solution was invented by Jeff Schmidt of Crowe.

The information in this document is not – and is not intended to be – audit, tax, accounting, advisory, risk, performance, consulting, business, financial, investment, legal, or other professional advice. Some firm services may not be available to attest clients. The information is general in nature, based on existing authorities, and is subject to change. The information is not a substitute for professional advice or services, and you should consult a qualified professional adviser before taking any action based on the information. Crowe is not responsible for any loss incurred by any person who relies on the information discussed in this document. © 2018 Crowe LLP. FS-17005-008A