2020 ANNUAL REPORT EMBRACE VACATIONLANDVACAT FEDERAL CREDIT UNION Federally Insured by NCUA EMBRACE PERSEVERANCE The Annual Meeting of the Credit Union’s owners will be held at 8:00 A.M. on Wednesday, March 10, 2021 via Zoom. HELPING OUR MEMBERS GROW AND SUCCEED AT EACH MILESTONE FOR 65 YEARS From modest roots to a thriving community credit union, VacationLand Federal Credit Union embraces what it takes to provide products and services that benefi t our members now, and well into the future. Our members give us the strength and motivation to move forward. 2020 Annual Report 3 In 2017, the Credit Union expanded its membership through the merger with the Sandusky Ohio Edison Employees Federal Credit Union. Membership eligibility PATIENCE AND extends to employees of the Ohio Edison Company who work in Sandusky, Bellevue, Port Clinton or Norwalk, PERSEVERANCE Ohio; spouses of persons who died while within the HAVE A MAGICAL fi eld of membership of this credit union; retired persons, EFFECT BEFORE members of their immediate families; and organizations of such persons. WHICH DIFFICULTIES In 2020, the Credit Union once again expanded its fi eld of DISAPPEAR AND membership to include anyone who lives, works, worships OBSTACLES VANISH. or attends school or has a business organization in Huron County, Ohio; York Township in Sandusky County, Ohio; JOHN QUINCY ADAMS Adams, Thompson, Reed or Venice Townships in Seneca County, Ohio; and the Village of Green Springs, Ohio. Today, VacationLand Federal Credit Union is a member- owned, not-for-profi t fi nancial cooperative dedicated to being the lifetime fi nancial institution of its members, by providing services at lower or no fees, or loans with lower EMBRACING OUR ROOTS rates plus deposit products with higher dividend rates. AND PUTTING OUR MEMBERS FIRST AND FOREMOST VacationLand Federal Credit Union is a federally chartered credit union, regulated by the National Credit VacationLand Federal Credit Union, (the Credit Union), Union Administration (NCUA), an agency of the federal was founded in 1956 by employees of the Sandusky, government. Credit unions are the only democratically Ohio General Motors Plant. In 2001, the Credit Union controlled fi nancial institution in the U. S. Members expanded its fi eld of membership including anyone who elect a volunteer board of directors to govern the credit lives, works, worships, attends school or has a business union. In contrast, banks are for-profi t entities, governed or organization in Erie County, Ohio. by a paid board of directors, with all profi ts benefi tting the bank shareholders. In 2010, the Credit Union extended its membership into Huron County, Ohio by merging with School Employees The credit union offers its members a full suite of Federal Credit Union (SEFCU) to include employees of fi nancial products including mortgage, home equity, the Boards of Education who work in Huron County and consumer and credit card loans and a wide array employees of the Board of Education of EHOVE Joint of savings, checking, money market and certifi cate Vocational School in Erie County. deposit products. 4 VacationLand Federal Credit Union EMBRACE GROWTH With $283 million in assets, VacationLand Federal Credit Union, headquartered in Sandusky, Ohio serves over 20,100 members, businesses and organizations at five branch offices and 10 ATMs in the cities of Sandusky, Huron, Norwalk and Vermilion. We serve our members at over 6,000 CO-OP Shared Branches and at over 32,000 MoneyPass and over 4,900 Alliance One surcharge-free ATM locations in the United States. Through 24-hour online banking, Remote Deposit Capture and CU*Talk Telephone Account Access, we serve members wherever they are. 2020 Annual Report 5 Member depository accounts are insured up to $750,000. The fi rst $250,000 of insurance is provided by NCUA’s National Credit Union Share Insurance Fund. The remaining $500,000 is provided by private insurance from Excess Share Insurance Company, paid for by VacationLand Federal Credit Union. The Credit Union supports community employment opportunities by funding local small businesses. OUR VISION Business loan products include equipment, auto, truck, lines of credit and commercial real estate loans. To be our members’ chosen lifetime financial partner and to improve our VacationLand Federal Credit Union is a member of Corporate One communities for future generations. Federal Credit Union and Corporate Central Credit Union, National Credit Union Administration’s Central Liquidity Facility, Federal Reserve Bank of Cleveland’s Discount Window and the Federal Home Loan Bank of Cincinnati. VacationLand Federal Credit Union is an Equal Opportunity Employer and an Equal Housing Lender. OUR MISSION Guided by our core values, we exist as a VacationLand Federal Credit Union received Low-income Designation not-for-profit cooperative to serve and through the NCUA, providing benefi ts to VacationLand to help serve surpass by providing value members who have challenges accessing fi nancial products and services. Low-income Designation benefi ts include: and financial freedom. »» 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 TOG 6 VacationLand Federal Credit Union VacationLand Federal Credit Union is much more than a place for banking. We live and work in northern Ohio, and we’re dedicated to helping our members and our communities prosper and thrive. Every member of VLFCU is part of our family. We care about you and your well-being instead of the bottom line. When you become a member, you become a shareholder of VacationLand Federal Credit Union. We’ll work for you as we work with you to manage your finances, invest in a new home or business, or save for EMBRACING retirement. Working together, we GETHERNESS can all succeed. 2020 Annual Report 7 We are different. We are not a bank. We’re not a payday lender. We are a low-cost financial institution that you will want to be affiliated with for a lifetime. 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 benefits of membership. 8 VacationLand Federal Credit Union HOW ARE WE As a member-owner, DIFFERENT FROM WE ARE MEMBER-OWNED regardless how much you save or borrow, you determine who serves on the Board OTHER FINANCIAL of Directors. You have one vote for each open Board of 1 Director seat. Also, as a member-owner, annual meetings are open to you. We encourage you to attend. INSTITUTIONS? We are out to protect WE ARE NOT-FOR-PROFIT 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 2 for services. Cooperatives pool WE ARE A COOPERATIVE resources for the common good. In like fashion, depositors of VacationLand Federal Credit Union pool funds to lend to one another. 3 Through our structure and operation, credit unions carry out the credit union philosophy of “people helping people.” At VacationLand Federal Credit Union, you’re not just an account number—you’re a member helping other members. Each member WE ARE VOLUNTEER DRIVEN of our Board of Directors is an unpaid volunteer you have elected to work in your best interest. Directors serve on Asset/Liability 4 Management, By-Laws, Policy, Facilities, Marketing and Nominating committees, assisting management in making decisions on how to improve member products, service and operational effi ciencies. 2020 Annual Report 9 EMBRACE THE UNKNOWN 10 VacationLand Federal Credit Union PROVIDING STEADY DIRECTION IN A YEAR OF UNCERTAINTY If ever there was a time to prove our dedication, 2020 was the year. Despite ever-changing circumstances, our caring staff went above and beyond to provide our members with exemplary service. 2020 Annual Report 11 GOVERNING BODIES OF YOUR CREDIT UNION Jude Hammond BOARD OF DIRECTORS Chairman (2022) Asset/Liability Management, By-Laws, Nominating The 2020 Board of Directors is comprised of seven volunteers, elected by you, the members, who are responsible for the governance, direction and control of the Jan Sadoski affairs of VacationLand Federal Credit Union in accordance Vice Chairman (2021) with National Credit Union Administration rules and Policy regulations and sound business practices. The Board of Directors dedicates its time and Marcia Renande talent to make VacationLand Federal Credit Secretary (2023) Union a premier credit union. It delegates the Asset/Liability Management, day-to-day activities through policies to Senior Marketing Management of the credit union. Directors serve for a term of three years with Tracy Luc terms expiring at the end of each annual Treasurer (2021) meeting. The Director positions expire as By-Laws follows: three Director Positions expire in one year and two Director Positions in each of the succeeding two years. Joel Hassinger Monthly meetings are held by the Board of Directors to Director (2022) conduct the business of the credit union by reviewing its Facilities, Nominating performance and policies. Once per year the Board of Directors also meets with Senior Management for a full day session to develop the three-year strategic plan. Christine Giardina Director (2023) Asset/Liability Management WE CANNOT DIRECT THE WIND, BUT WE CAN Elmer Lippert Director (2021) ADJUST THE SAILS. Asset/Liability Management DOLLY PARTON 12 VacationLand Federal Credit Union The National Credit Union Association also conducts periodic examinations of the records, policies, practices and the application of NCUA regulations upon VacationLand Federal Credit Union. VLFCU was examined by the NCUA during 2019 and is pleased to report that we received a favorable report from the NCUA. Just like the Board of Directors, the Supervisory SUPERVISORY COMMITTEE Committee also holds monthly meetings to, among WILLIAM STAUDER, CHAIRMAN other things, review internal audit services, internal The Supervisory Committee An audit of the 2020 fi nancial consists of members appointed statements is being conducted by by the Board of Directors to serve Doeren Mayhew CPAs and Advisors.