Andrews FCU

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 2 017 A N N U A L R E P O R T | 3 Roger W. Scearce Treasurer Eugene Dacus Supervisory Committee Chairman Letter from the Treasurer Andrews Federal Credit Union experienced another solid financial year in 2017. Total assets increased by $67 million, or 4.6%, driven by member deposit growth. Total deposits increased by $112 million, supported primarily by base shares, share drafts, money market accounts and certificates. Loan balances outstanding at year end were $1.22 billion, resulting in net growth of $350 million. The Credit Union finished the year with a net income of $1.15 million, resulting in a strong year-end capital ratio of 11.01%. 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, suited to provide you with continued great value for many years to come. Letter from the Supervisory Committee The Super visor y 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 ef fectiveness 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 be retained to audit Andrews Federal Credit Union. The CPA firm per formed the annual financial statement audit for 2017. 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. Frank Cardile Chairman Chairman's Message On behalf of your Board of Directors, thank you for your continued support to our Credit Union. Andrews Federal Credit Union is ever-evolving technologically and able to offer better rates on deposits and loans because of your commitment. We are grateful and thankful for your loyalty. One of the key indicators of strength for a Credit Union is its net worth. I am proud to say that Andrews Federal concluded 2017 with a net worth to assets ratio of 11.01%. According to the standards of the National Credit Union Administration (NCUA), we remain very well capitalized. Throughout 2017, your Credit Union's Board of Directors and Executive Management Team engaged in key strategic planning sessions. As a result of collaborative ef forts, there were positive financial gains in several key areas. Overall assets grew 4.6%, with combined assets of more than $1.5 billion. Due to our loan-to-share ratio of 91%, we have the capacity to sustain our lending ef forts for all your needs. We vow to continually manage our expenses carefully, so as to add value to the members while ensuring profitability. Thank you to our Management Team and our staf f for their unwavering commitment to the success and prosperity of our Credit Union. Last, but not least, I want to extend my appreciation to each Board Member and our Supervisory Committee members and Committee members for their commitment and support. The countless hours they spend volunteering their time to ensure that this organization lives up to its legacy of helping our members achieve financial success is invaluable. Always remember that your Credit Union is here for you and your family with ser vices, opportunities, knowledge and resources to help you succeed. Please continue to of fer your feedback so that we may continue to properly meet and exceed your financial needs. Thank you for your loyalty and support.

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