Andrews FCU

We helped 30,541 members through our TruStage® Insurance Program. 1,101 active property & casualty policies 27,863 active insurance policies 1,577 active life & health policies Letter from the Treasurer Andrews Federal Credit Union experienced another solid financial year in 2016. Total assets increased by $321 million, or 28.3%, driven by member deposit growth. Total deposits increased by $317.4 million, supported primarily by base shares, share drafts, money market accounts and certificates. Loan balances outstanding at year-end were $875 million, resulting in net growth of $133 million. The Credit Union finished the year with a net income of $4.93 million, or a .38% Return on Assets, resulting in a strong year- end Capital Ratio of 13.70%. Moving forward, your Credit Union will continue to skillfully manage deposit and loan rates in a low interest rate environment to ensure interest margins are reasonable to support the operations of the financial cooperative. Members can continue to receive the full value of membership by turning to the Credit Union for all their deposit, loan and wealth management needs. This full utilization by the members allows the Credit Union to continue thriving in an ever-challenging, low interest rate environment. In short, you are a member of a financially strong credit union, totally focused on providing you with continued great value for many years to come. Letter from the Supervisory Committee The Supervisory Committee is appointed by the Board of Directors to ensure that the management of Andrews Federal Credit Union follows the guidelines and procedures set forth by the regulatory agencies that govern credit union operations. The Committee is responsible for ensuring that the books and records of the credit union fairly and accurately reflect its financial position and operating results. Furthermore, the Committee is responsible for overseeing the accurate and timely reporting of the credit union's financial status, and monitoring the effectiveness of the internal controls to protect credit union resources. In order to discharge this responsibility, the Committee performs internal audits and engages an independent accounting firm to conduct an external audit. The Board of Directors approved the recommendation that the certified public accounting (CPA) firm of Doeren Mayhew & Co., P.C., be retained to audit Andrews Federal Credit Union. The CPA firm performed the annual financial statement audit for 2016. A copy of this audit is available upon request. In addition, the Supervisory Committee serves members' interests by responding to credit union inquiries. After reviewing any inquiries, the Committee arranges for any necessary adjustments to members' accounts. As always, the Committee takes pride in the policies implemented to safeguard member accounts. 14 | A N D R E W S F E D E R A L C R E D I T U N I O N 2 016 A N N U A L R E P O R T Roger W. Scearce Treasurer Eugene Dacus Supervisory Committee Chairman

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