C O M I N G F U L L Federally insured by NCUA. C I R C L E T 2 R 0 O 1 P 7 E A R N L N A U YOU KEEP OUR STORY MOVING FORWARD. OUR STORY BEGAN IT’S THE STORY OF EVERYDAY PEOPLE 85 YEARS AGO. WORKING TOGETHER TO BUILD A STRONGER COMMUNITY. PEOPLE SUPPORTING COMMUNITY TABLE OF CONTENTS 3 Board of Directors and Management Team 5 Chairman’s Message 7 President & CEO Report 9 Year-end 2017 13 Audit Committee Report 14 Statements of Financial Condition 15 Statements of Income 17 Community Impact Statements 19 Services 21 Locations BOARD OF DIRECTORS Armando Guadalupe Grace Javier Gregory J. John Teresa Michelle Ricardo Jose Jimarez Giner Vaughn Rangel Watters Runkles Quezada Padilla Soto Quiñonez SECRETARY/ CHAIRMAN VICE-CHAIRMAN TREASURER BOARD OF DIRECTORS EXPIRATION OF TERMS EXPIRATION OF TERMS Gregory J. Watters April 2018 Grace Vaughn April 2020 Chairman of the Board Teresa Quezada April 2019 Ricardo Soto April 2020 Jose Quiñonez April 2018 John Runkles April 2020 Vice-Chairman Advisory Directors Guadalupe Giner April 2019 Armando Jimarez September 2018 Secretary/Treasurer Javier Rangel September 2018 Michelle Padilla September 2018 MANAGEMENT TEAM Crystal Long Lettie Ramos President & CEO Vice President, Mortgage Ceci Davila Mike Sarabia Sr. Vice President, Chief Operations Officer Vice President, Internal Audit Hazel Kennedy David Solis Sr. Vice President, Chief Lending Officer* Sr. Vice President, Chief Financial Officer Teresa Montoya Chris Tompkins Sr. Vice President, Chief Marketing Officer Sr. Vice President, Chief Commercial Services Officer Fernando Ortega Joe Underwood Sr. Vice President, Chief Information Officer Vice President, Human Resources Darlene Palmore Daniel Vasquez Sr. Vice President, Chief Compliance Officer Vice President, Career & Talent Development *Indicates a change in position title as of December 31, 2017. PAGE 3 PEOPLE EMPOWERING COMMUNITY CHAIRMAN’S MESSAGE This year — your credit union’s 85th year — was packed down-payment assistance on the purchase of a home, with with growth and achievement in service to you, our the El Paso Housing Finance Corporation. This is in member-owners. The GECU story is a story of hands-on addition to our financial education and homeownership service to our members and our community. seminars that also help local families qualify for down-payment assistance. Together, these two programs All of our services are built on your credit union’s strong have helped 74 local families purchase a home of their and stable financial foundation. In 2017, your credit union own, which has helped build the assets that create financial paid you $17,510,446 in interest and dividends, an stability in our community. increase of $422,826 over last year. Our deposits increased by $79,308,819, and our loan portfolio When we share these figures, think about the lives that increased by $143,184,459. Your credit union reached a have been touched. These are hardworking families that net income of $19,484,721, increasing GECU’s net worth now have a home of their own where they used to rent, a to 9.60%. Take pride in knowing that your credit union is nest egg where they used to live paycheck to paycheck, strong and stable, and we’re using that strength — our and the ability to build wealth that spans generations. strength — to elevate our community. This is the vision of our founders, an idea brought to life through hope and hard work. None of this would be Since our 11 founders began our story 85 years ago, possible without you, our member-owners. When you place we’ve not only held on to their vision of service, we’ve your trust in GECU, we work to earn that trust each and expanded it to include more people than ever before. every day through service. Being a member of GECU is Through everything from branches and tellers to GECU more than a choice about where you keep your money, it’s Community Development and our educational outreach, adding your voice to the story of a hopeful community we are here to serve you and our community at every that’s working toward a more-prosperous future. Thank you stage of life. Every day — one member at a time — we’re for being a part of our story, and for letting us be a part of telling our story about the good we can accomplish by yours. Together, we’re doing great things, and there are working together. many more great things yet to come. I am very proud to tell you some of the highlights of this story — a big-picture look at the results of your credit union’s tireless work to elevate our community. In 2017, our Volunteer Income Tax Assistance volunteers, along with the Coalition for Family Economic Progress and our Gregory J. Watters community partners, helped 8,026 local families receive Chairman of the Board more than $14.3 million in tax refunds and $6.3 million in Change to GECU Bylaws — 2017 Earned Income Tax Credits — free of charge. The amendments to the GECU Bylaws were approved on February 13, 2017. The GECU Bylaws were amended to allow the president to preside over annual and special meetings in the absence of the In 2017, we launched the Welcome Home El Paso chairman and indicate that other officers designated by the board of directors may preside in the absence of the president and chairman. Amendments to the Bylaws were also included to clarify that program, which provides hardworking local families with the vice-chairman shall perform duties of the chairman, unless otherwise designated in the bylaws. PAGE 5 PEOPLEPEOPLE FOR COMMUNITYHELPING PEOPLE PRESIDENT & CEO REPORT For 85 years, we have celebrated the values of the credit We write our story through service. When you place your union movement — the idea that everyday people working trust in GECU, we commit our efforts to helping you, your together can make a difference. Our story is a story that is family and your neighborhood thrive. Just as we work told in many voices. It is a story about hope and prosperity. together through our credit union, GECU works with our Your voice guides us as we build branches, add services community partners to make an impact. We are proud to and serve our community. Together, we are putting our support organizations that share our same values and make people helping people philosophy into action. Thank you a difference across the Borderland. Together, we’re building for placing your trust in us and for supporting the credit a more-prosperous community for everyone. union movement with your voice. It’s an honor to serve you and our community, to listen to you, and to build our credit You — the member-owner — keep our story moving forward. union around your needs. Since our founding, we’ve kept our people helping people philosophy at the forefront of our mission to serve you. We’re I’m excited to tell you that in our 85th year, your credit continuing the story that our founders started 85 years ago union is strong, stable and growing. Our membership has — one person and one day at a time — in which financial grown to 370,901 members and we’ve added two GECU independence is achievable for everyone. More than ever, Neighborhood BranchSM locations, including the Piedras our movement needs your voice to speak out in favor of and Yandell location, to serve you. Your credit union has common-sense regulations that help your credit union serve reached 25,199 community members with free financial you and our community. education seminars, including more than 100 events for students in local schools. In addition to our support of the Thank you for trusting us with all your hopes and dreams. Sageland Elementary MicroSociety, our UTEP Pillar Our strength as a credit union comes from our members. Partnership, and the GECU Foundation Scholarship that Whether you are a new member or you’ve made GECU a helps local students attend UTEP and EPCC, we’ve started family tradition that spans generations, thank you for letting serving local students and faculties directly in their own us be a part of your journey. You’re the reason why we’re schools. Starting with the successful in-school location at celebrating this milestone anniversary. The GECU story is Del Valle High School, we have also opened other locations your story because this is your credit union. Together, we’re in Coronado and Pebble Hills high schools, and a location building a brighter future for our community. in the EPCC Valle Verde campus. All of the in-school branches provide job training and real-world experience to the students that they employ. These locations are also hubs of financial education for both students and faculty, where previously there was a need for personalized financial advice. Your credit union is growing because it is a full-circle institution, reaching out with education and Crystal Long service to meet your needs at every stage of life. GECU President & CEO PAGE 7 PEOPLE FOR COMMUNITY PEOPLE BELIEVING IN EACH OTHER YEAR-END 2017 LOANS FUNDED 14% 16% Indirect Auto Loans $457,962,956 117%9% Direct Auto Loans $166,268,588 Credit Cards — Advances $233,810,387 38% 2017 Installment $134,320,888 11% Lines of Credit $11,780,907 Real Estate Loans (First & Second Lien) $141,969,176 39% 16% Home Equity Real Estate Loans $49,933,617 12% 1% Member Business Loans $15,844,223 4% TOTAL LOANS FUNDED: $1,211,890,742 11% 1% RETURN TO MEMBERS 53.6% Interest — CD $9,388,987 Interest — IRA $3,994,791 Interest — MMA $2,201,456 22.8% Dividends — Shares $1,633,205 12.6% 9.3% Interest — Checking $292,007 1.7% TOTAL RETURN TO MEMBERS: $17,510,446 PAGE 9 PEOPLEPEOPLE FOR INSPIRINGCHANGE COMMUNITY YEAR-END 2017