Eagle Community Credit Union Annual Report 2017

Charles Morris Scott Rains Chairman of the Board CEO Message from the Chairman I ampleased to report that Eagle Community Credit Union experienced an increase of $6.8M in deposits and $12.8Mgrowth in total assets in 2017. While the credit union posted net income of $48 thousand for the year, net worth was 7.97%of assets and is considered “Well Capitalized” by our State and Federal Regulatory agencies. Most amazing was the credit union's loan growth of $33M. The highest rate of growth in over 10 years. This increase in loans caused the credit union to increase our allowance for loan loss by over $510 thousandmore than the prior year, reducing potential income for the year but having a long termpositive impact on our financial performance. Much was accomplished in 2017. Of particular note were the following: • The sale and relocation of the corporate headquarters and Lake Forest branch. The new branch on El Toro and Rockfield provides greater access and visibility to those we serve in the Lake Forest and surrounding communities. • The credit union realized a gain on the sale of our old headquarters building that greatly improved our capital position and financial strength. • New loan products were introduced for mobile/manufactured homes and home energy improvements. • The mobile/manufactured home loans provide access tomembers in our communities that had very limited options. • Energy efficient home improvement loans will helpmembers meet the growing demands for energy improvements made by state and local governments, as well as reduce the use of our natural resources and save members money over the long term. • The required replacement of our online banking andmobile app was completed in the first quarter of 2018. While there were some challenges, management learned a lot in the process that will enable us to improve in the future. In 2018 we will continue our efforts to enhance the value of your membership. To this end, we have the following exciting and important initiatives underway: • The installation of a new online loan andmember application will create a more efficient and streamlined experience for loans and the newmember account opening process. • The replacement of ATM’s and other equipment that are at the end of their useful lives. • An increased amount of interaction with our membership using surveys and focus groups to ensure that we are doing our best tomeet our member’s needs.