2015 ANNUAL REPORT P.O. Box 58346, Houston, Texas 77258 1330 Gemini, Houston, Texas 77058 281.488.7070 • 800.940.0708 WWW.JSCFCU.ORG LETTER FROM THE CHAIRMAN

To Members and Friends,

It is my privilege to present the 2015 Annual Report for sharing your card number, making it a safer and more The Credit Union’s outreach extends beyond the school JSC Federal Credit Union (JSC FCU). The Credit Union private way to pay. The introduction of Apple Pay is campus. Educational seminars are offered to members has had another remarkable year. In 2015, JSC FCU one part of our growing proactive approach to protect and non-members alike. A variety of important topics for added 8,623 new members while growing assets by against identity theft and help our members safeguard adults are covered, such as the home buying process, $78,752,069. The JSC FCU membership is made up of their personal information. understanding credit, and identity theft and prevention. 2,304 Community Business Partners. These partners Free access is also provided to our MoneyFIT (Financial are diverse as the community we serve, from home JSC FCU understands the importance of financial Independence Tools) program. MoneyFIT is a web- owners association to churches and businesses small education and is committed to financial literacy within based program providing an online resource for adult and large. Our Community Business Partners continue our community. This year JSC FCU expanded their education in addition to the face to face resources. to be valuable, providing opportunities to work with Financial Literacy Plan to include all high schools within the community in a variety of ways in addition to being CCISD and Friendswood High School. The Financial In closing, I am pleased to report to our membership essential source of membership. Literacy Plan offers benefits of CU membership while that your Credit Union is financially safe, sound, well offering educational opportunities to students, staff capitalized, and prospering in all the ways we hold With identity theft on the rise, JSC FCU is continually and educators. Additionally, the Credit Union works to valuable. In its 54th year of business, your Credit Union working to combat debit and credit card fraud. This year increase the financial literacy of our younger community continues to be a resource for its members and to the we implemented a new product, Apple Pay, to help with members as well. By partnering with area organizations greater community it serves. We realize you have many this ongoing issue. Apple Pay is a simple, secure and and elementary schools, we are able to support events options when choosing a financial service provider, and easy to use contactless payment method. Apple Pay is designed to get our younger members excited and we appreciate your choice of JSC Federal Credit Union designed to protect your sensitive information by not prepared for their financial future. as your financial institution.

Sincerely, David W. Whittle David W. Whittle, Chairman JSC Federal Credit Union Board of Directors ASSETS CONSOLIDATED STATEMENT OF INCOME

2013 2014 2015 2013 2014 2015 Total Loans 448,163,057 469,717,515 491,547,946 Operating Income Less: Allowance for Loan Loss (1,448,626) (1,429,717) 1,386,628 Total Interest on Loans 17,812,216 17,663,252 18,103,236 Net Loans 446,714,430 468,287,798 490,161,317 to Members Income from Investments 13,305,711 14,332,204 14,694,962 Cash & Investments $1,285,053,475 $1,323,806,987 $1,369,997,758 Fee and Other Operating 13,869,027 13,447,605 14,114,481 Income

OTHER ASSETS Total Gross Income $44,986,955 $45,443,063 $46,912,678 Fixed Assets 19,597,878 18,859,503 18,691,368 NCUA Share Insurance Deposit 15,066,270 15,616,651 15,954,848 Total Operating Expense $26,243,312 $26,918,097 $28,406,018 Other Assets 5,591,412 5,877,439 16,395,157 Income (Loss) From 18,743,643 18,524,965 18,506,660 Total Assets $1,772,023,468 $1,832,448,380 $1,911,200,449 Operations

Less: Provision for Loan (1,550,998) (1,447,140) (1,520,606) LIABILITIES, SHARES & EQUITY Losses Non Operating Gain (Loss) (1,079) 2,000 8,821 Total Liabilities 5,316,847 6,403,916 6,615,816 Total Shares & Deposit 1,590,977,220 1,638,626,589 1,706,597,855 Total Cost of Funds (7,824,074) (6,623,451) (6,425,972) Total Equity 175,729,399 187,417,875 197,986,778

Total Liabilities, Shares & Equity $1,772,023,467 $1,832,448,380 $1,911,200,449 Adjusted Net Income $9,367,490 $10,456,373 $10,568,903 (Loss)

JSC FEDERAL CREDIT UNION CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION AS OF DECEMBER 31, 2015 LEADERSHIP & LOCATIONS

Board of Directors Supervisory Committee Southern Advisory Board JSC FCU Branch Locations David W. Whittle, Chairman Jose Olivarez, Chairman Dion McInnis Clear Lake - Main Office La Porte Term Expires 2018 Branch 1 Clear Lake - Main Office 1330 Gemini 607 West Fairmont Pkwy Joseph Pat McCormack Houston, Texas 77058 La Porte, Texas 77571 Curtis C. Collins, Vice Chairman Teming Tse Ann Paulissen Clear Falls High School Branch League City Term Expires 2016 Branch 2 League City 4380 Village Way 501 FM 270 League City, TX 77573 League City, Texas 77573 James H. Ragan, Treasurer Northern Advisory Board Gerald Stacy Access restricted to CFHS students & staff Term Expires 2016 Branch 4 Friendswood League City - Tuscan Lakes Timothy Dagget Clear Lake City Blvd 1280 East League City Pkwy Deborah A. Conder, Secretary Branch 1 Clear Lake - Main Office Dorethea Wynn 1600A Clear Lake City Blvd League City, Texas 77573 Term Expires 2017 Branch 18 Clear Lake City Blvd Branch 5 Galveston Houston, Texas 77062 League City - West John J. Thiel, Director Shawn Chittum Leo Rudd Clear Springs High School Branch 2660 West Main Street Term Expires 2017 Branch 3 Ellington Branch 6 Tuscan Lakes 501 Palomino Lane League City, Texas 77573 League City, TX 77573 Peggy A. Zahler, Director Gregorio Jaramillo William Reid Access restricted to CSHS students & staff Park Place 8424 Park Place Blvd Term Expires 2018 Branch 8 Park Place Branch 7 Mainland Deer Park - 8th Street Houston, Texas 77017 120 East 8th Street Harry Guss, Director Brett Burns Louis Decker Deer Park, Texas 77536 Pasadena North Term Expires 2016 Branch 10 Pearland Branch 9 Bay Colony 303 W. Shaw Deer Park - Monument Branch 19 Pearland Parkway Pasadena, Texas 77506 Grady Perdue, Director Fay Hogg 2200 East Thirteenth Street Term Expires 2018 James Steven Oyler Branch 12 League City West Deer Park, Texas 77536 Pearland - Broadway Branch 11 Seabrook Natalie Saiz, Director Nancy Mallini Dickinson - Bay Colony 9101 Broadway Term Expires 2017 Glenn Perk Branch 16 Clear Springs High School 2461 FM 646 West Pearland, Texas 77584 Dickinson, Texas 77539 Branch 13 Monument Branch 17 Clear Falls High School Pearland Parkway Branch 14 Deer Park Ellington 1849 Pearland Pkwy, Ste. 102 404 FM 1959 Pearland, Texas 77581 Tim Bounds Houston, Texas 77034 Branch 20 Pasadena Seabrook Friendswood 2900 NASA Pkwy, Ste. 310 JSC FCU Management 1320 S. Friendswood Seabrook, Texas 77586 Friendswood, Texas 77546 Michael G. Brown Paul Maslonka Debra Reeder Thomas Hast Texas City - Mainland President Chief Operations Officer Chief Financial Officer Chief Lending Officer & Galveston 2300 Gulf Freeway Vice President of Marketing 2121 Market Street Texas City, Texas 77591 Galveston, Texas 77550