2013 TABLE OF CONTENTS Board of Directors & Management Team 3 Chairman’s Message 5 President & CEO Report 7 GECU 2013 Lending Highlights 8 Audit Committee Report 11 Return to Members 12 Statements of Financial Condition 13 Statements of Income 13 BOARD MANAGEMENT OF DIRECTORS EXPIRATION OF TERMS TEAM Gregory J. Watters March 2015 Crystal Long Chairman of the Board President and CEO Frank Garcia March 2014 Ceci Davila Vice Chairman Vice President Operations Jose Quiñonez March 2015 Hazel Kennedy-Ledesma Secretary/Treasurer Vice President Remote Services, Guadalupe Giner March 2016 Deposits and Business Operations Grace Vaughn* March 2014 Teresa Montoya Teresa Quezada March 2016 Vice President Marketing Ricardo Soto March 2014 Fernando Ortega ADVISORY MEMBERS Vice President Information Technology GECU: Welcome to Your Community. John Fernandez* Retired December 2013 Darlene Palmore Armando Jimarez* September 2014 Vice President Compliance John Runkles September 2014 Art Perez Vice President Lending AUDIT COMMITTEE David Solis Ricardo Soto Vice President Controller Chairman Chris Tompkins* Frank Garcia Vice President Business Lending Guadalupe Giner Joe Underwood Vice President Human Resources *Indicates changes in Board of Directors in 2013. *Indicates a change in senior management as of December 31, 2013. 3 CHAIRMAN’S MESSAGE GECU had a stellar year in 2013, holding steadfast to our people In 2013, GECU continued its new service and delivery helping people mission and our philosophy of serving one expansion strategy built around the way you live — bricks member at a time. Your credit union grew to more than and mortar and bricks and clicks. GECU continues to add $2.0 billion in assets, a healthy 8.82% net worth, and neighborhood centers — smaller footprints that offer 309,908 members strong. convenience, expanded hours, latest technologies and personal service. And our bricks and clicks includes a new GECU remained the largest, locally-owned financial institution, award-winning website, online and mobile banking on your providing our members with above average interest and dividend time, and the ability for you to sign your loan documents earnings on their deposits and share accounts, in spite of a from the convenience of your home with eSignature. If you historically low interest and earnings rate environment. Simply prefer calling or chatting live, that’s OK too. We’re still just a put, your credit union is fiscally conservative and the driving phone call or a keyboard away. It’s your choice. financial force in El Paso. It’s you, GECU’s member-owners! You’re our driving force. Our founding fathers’ vision was to pool their money together to We put you and your financial needs first — we always have. help their neighbors with low interest rate loans to meet their Staying the course continues to steer us on the right path: needs when no one else would. That’s still a meaningful and the path to your financial independence. We wouldn’t have it important philosophy and why our members join the credit union any other way! today, but there’s more. It’s also about community, relationships, trust, service, and increasing our members’ financial literacy and Thank you for helping your neighbors and our local financial independence. community, and for allowing us to be your credit union! So how can we keep up with technology and serve our members’ and our community’s changing lifestyles and needs? Your board provided guidance and support to GECU’s professional staff, which came up with a plan to accomplish those goals. Gregory J. Watters Chairman of the Board STANDING, LEFT TO RIGHT: Jose Quiñonez, Gregory J. Watters, Frank Garcia, Armando Jimarez, John Runkles and Ricardo Soto SITTING, LEFT TO RIGHT: John Fernandez, Guadalupe Giner, Grace Vaughn and Teresa Quezada 5 PRESIDENT AND CEO REPORT Your credit union had a remarkable year in 2013. I’m honored to work We opened new branches, including our innovative Oregon and for you and share the results. University Branch, which includes Kinley’s Tea House, providing a place to learn for our community’s future leaders and a way to GECU increased consumer and mortgage loans funded by a stellar empower them with financial literacy and independence. We like to $825.1 million, representing an increase of more than $103 million or refer to our new branch with Kinley’s Tea House as a fusion of 14.3% loan growth over 2012. This is a solid indicator that our focus on finance and refreshment! service excellence, raising awareness of your credit union, the GECU brand, and streamlining our lending strategy to give you more choices GECU is always looking out for our members, and in 2013, we took helped us serve more of our members, neighbors and community. a closer look at our members with financial hardships. The GECU Bylaws were then amended and approved on December 3, 2013, GECU also had a healthy net income of $14.3 million, building your to offer prior members the opportunity to establish a renewed credit union’s net worth to $178.1 million. commitment to their financial stability and to align with the regulatory revisions to the Texas Finance Code.* How did we achieve success? Teamwork and commitment from a dedicated, fiscally minded professional staff and a board that offers There is a lot to celebrate about 2013. But what we celebrate the guidance and focuses on our members’ needs and best interests were most is you, GECU’s member-owners. What we do is all about you key factors to achieving success. Community development initiatives and your financial freedom. Thank you for allowing us to serve you. were key factors too. What matters to you, matters to us. PRESIDENT AND CEO: Crystal Long GECU launched Prosperus, an initiative focused on financial education, home purchase assistance and credit counseling. And, the Cornerstone Credit Union League (CCUL) recognized our extraordinary efforts to meet the financial service needs of our area, our long-term vision, and our commitment to provide our community with the services needed to Crystal Long improve their lives, by honoring GECU with the designation of Together President and CEO We Advance (Juntos Avanzamos). We also celebrated The University of Texas at El Paso’s 100-Day Centennial Countdown with you, because we share a common goal of education with the university. We know that prosperity of the mind emanates in prosperity for all, and like GECU, the university is important to our community’s success. *Change to GECU Bylaws — 2013 The amendments to the GECU Bylaws were approved on December 3, 2013. The Bylaws were amended to offer prior members the opportunity to establish a renewed commitment to their financial stability and to align with the regulatory revisions to the Texas Finance Code as follows: - Extend the confidentiality requirements to include “Honorary Directors” and to the extent necessary in connection with a loan or an extension of credit; - Indicate the Board may appoint up to six Honorary or Advisory Directors; - Allow the Credit Union to submit the certificate of election as prescribed by the Commissioner; - Indicate a Director may not vote by proxy at a meeting of the Board; - Include the pecuniary interest of Honorary and Advisory Directors and clarify the definition of “immediate family”; - Provide that the credit union may purchase insurance as an “enterprise,” as defined by Business Organizations Code 8.001(2). 7 GECU 2013 LENDING HIGHLIGHTS SUMMER AUTO LOAN SALE MAY 23–SEPTEMBER 3 % Direct vehicle loans 18 % Indirect vehicle loans 37 Mortgage loans 16% % NO PAYMENTS Other loans FOR 90 DAYS* 14 ON NEW AND USED VEHICLES Credit cards 15% 18 % 37 % 16 % 14% 15% DIRECT VEHICLE LOANS INDIRECT VEHICLE LOANS MORTGAGE LOANS OTHER LOANS CREDIT CARDS 9 AUDIT COMMITTEE REPORT The Audit Committee is responsible for ensuring the appropriate oversight of GECU’s required financial reporting objectives and for ensuring that established practices and procedures are sufficient to safeguard members’ assets in accordance with law. The Audit Committee is assisted by GECU’s Internal Audit Department, which conducts comprehensive internal audits throughout the year, ensuring that 1) accounting records and reports are prepared promptly and accurately reflect operations and results; 2) established internal controls are effectively maintained and adequately protect the credit union, its assets, members, management, and employees; and 3) each area of the credit union is carrying out the plans, policies and procedures for which it is responsible as directed by the board of directors. The Audit Committee also oversees the annual comprehensive audit conducted by the independent certified public accounting firm of Lauterbach, Borschow & Company, P.C. Their examination was conducted in accordance with generally accepted auditing standards as issued by the American Institute of Certified Public Accountants. As a result of the internal and independent audits, the Audit Committee believes the financial statements included in the 2013 Annual Report fairly present the financial condition of GECU for the year ending December 31, 2013. We appreciate GECU’s board of directors, management and staff for their cooperation. Ricardo Soto — Chairman Frank Garcia Guadalupe Giner A full copy of GECU’s 2013 financial statements may be obtained by contacting the office of Crystal Long, GECU President and CEO. AUDIT COMMITTEE LEFT TO RIGHT: Frank Garcia, Guadalupe Giner and Ricardo Soto 11 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION CONSOLIDATED STATEMENTS OF INCOME YEAR END 2013 Years Ended December