JMAFCU

4 Over the years that I have been Chairman of JM Associates Federal Credit Union (JMAFCU), I have been so fortunate to witness firsthand the unique accomplishments of our credit union. I have received so many positive comments about the service and commitment our team provides to our members. Our single-sponsor credit union is unique. We have seen many credit unions merge with various community charter credit unions. Our credit union is strong and our relationship with our sponsor is exemplary. Credit unions continue to grow at a faster rate than other financial institutions. In my opinion, this is because we know our members at JMAFCU. During 2016, various surveys have gone out to our membership, and you have responded. The high marks received throughout our entire JMAFCU organization reflect the commitment our associates have in making sure you have a positive experience with every transaction. We continue to focus on improving your member experience. Our continued focus to establish our first Virtual Branch is making significant progress. Our new NS Join application, which allows new members to get membership applications electronically and submit them electronically, has been implemented. Improvements to our Home Banking and Electronic Loan Applications are continuing. Also, we have continued our focus on information security. During 2016, we have established many new security policies to enhance the security of your credit union. Our recent release of the EMV embedded chips in all of our credit and debit card products has been completed. In addition, our compliance team continues to do an excellent job in keeping up to date with the constantly changing federal regulatory environment. Also, from a reporting standpoint, we revised our financial reporting package. This new package provides additional financial information to the various board members in a more efficient data-gathering process. Our continued profitability reflects the commitment by our management team to provide the best products and services, as well as provide continual positive net income results to all of our members. Additionally, the board's focus on succession planning continued throughout 2016. JMAFCU has enhanced our various succession plans for our key senior management associates. During this year, we officially filled the new Associate Board Member position. This new position will allow a more effective and efficient transfer of roles in our volunteer environment. I am privileged to serve as your Chairman, and I am grateful to be able to work with so many volunteers at JMAFCU. On behalf of the Board of Directors, I want to thank JM Family and the Moran family for their continued support. JMAFCU is your credit union, and we look forward to many more successful years. Sincerely, Larry Jaffe Chairman of the Board Chairman's Report April 2017 Dear Member,

• Cover