2020 Blue Annual Report by Blue FCU

THRIVING DURING UNPRECEDENTED TIMES 2020 ANNUAL IMPACT REPORT

World Headquarters, Cheyenne, Wyoming – Opened December 2020

TABLE OF CONTENTS Unprecedented Year

pg 4

Financial Strength

pg 5

Unprecedented Growth

pg 6-7

Strengthening Communities

pg 8

Award-Winning Credit Union

pg 9

Unprecedented Humanity

pg 10-11

Unprecedented Service

pg 12

Unprecedented Teamwork

pg 13

Executive Leadership Team

pg 14

Board of Directors

pg 15

Unprecedented Possibility

pg 16

Supervisory Committee Report

pg 17

2020 Statement of Financial Condition

pg 18

2020 Statement of Income

pg 19

E YO

IL I

TIES

TO R

LIZ

UR POSS

MEMBER GIVEBACK

11,368,481

Total member DIVIDENDS PAID

UNPRECEDENTED YEAR

President and Chairman of the Board Report Last year, it was easy at times to fall prey to pessimism, or the sense that we individually just did not have the strength or grit to persevere. But powerlessness is corrosive to hope and hope plus work is what is required in trying times. Amid the multiple disruptions of 2020, what was made clear is that we had a oncein-a-generation opportunity to harness our collective strength to define Blue for the next generation, those that will not easily recall the struggles of the past year. It is because of this belief, being grounded in the potential of the future due to our current strength, that we remain optimistic.

Stephanie Teubner President and Chief Executive Officer

From our founding over 70 years ago, Blue has worked to bring together people with common interests and goals—people who also share ownership, vision, and are on similar pathways. Blue exists to serve you, our members, in pursuing that vision and owning your future. Regardless of what happened or what’s going on in the world around us, our cooperative still exists to serve our members and those who live in the communities in which we serve. In addition, we had the foresight and courage to engage in longrange strategic thinking during the height of the pandemic. With our partner, Corona Insights, we held firm to our conviction to lead the legacy. Our values inspire us to envision a purpose-full mission and an exciting strategy.

Tom Reiman Chairman

We discover pathways to realize possibilities for our members. That mission, and our shared values, compel us to act boldly for the future. We are excited to have you join us. The year 2020 taught us that we can achieve more than we had ever envisioned. The best is yet to come. On behalf of the Board of Directors and each Blue employee, we are honored to have served you in 2020 and look forward to being your lifelong champion. Thank you for being a member of Blue!

Stephanie Teubner President & Chief Executive Officer

Tom Reiman Chairman of the Board of Directors

FINANCIAL STRENGTH

Treasurer's Report

The financial standing and strength of the credit union was on full display throughout 2020. During one of the most volatile years in recent memories, Blue remained secure in its positions. Profitability, as measured by net income, ended the year more than $400,000 ahead of budget, ending 2020 at $9.4 million. Return on average assets, a measure of how well the credit union is using its assets to generate income, ended the year at 0.83% against a peer average of 0.67%. With $11,368,481 in dividends paid, dividends grew by more than 7% over 2019. Strength during challenging times can be hard to convey to members; regardless, Blue was able to pay out industry-leading dividends in 2020.

RELIEF FOR OUR MEMBERS

Total balance of deferred payments on 46,053 LOANS

PAYMENT PROTECTION PLAN funds allocated to our members

643.5 MILLION

3.5 MILLION

650,000

$ WAIVED member fees

UNPRECEDENTED GROWTH

The year 2020 was a time of growth and new beginnings for Blue. In the early months of the year, positive changes took place within the organization. With the merger finalized with Liberty Savings Bank, Blue gained two new branches - one in Granby, Colorado, and the other in Denver, Colorado. This was a huge undertaking and was very successful on all levels. By the end of the year, over 93% of transitioned members kept their membership with Blue - a remarkable and almost unheard-of retention rate. In parallel with acquiring the two former Liberty branches, Blue also expanded its footprint by building a new branch in Erie, Colorado. This new branch location was selected to better serve the Colorado Front Range and be a central location for our Denver Metro and Boulder Metro members. Finally, Blue opened its 6th branch in Cheyenne, located at the Blue Diamond Center, next to World Headquarters. This central location allows us to better serve the Cheyenne community.

INSPIRING THE COMMUNITY

54,327

When Adam Cordell’s Boston Marathon race was canceled in 2020, he ran a marathon, Cheyenne style. Partnering with Blue, Adam helped raise over $50,000 for the Food Bank of the Rockies by running 26.2 MILES through the streets of Cheyenne, Wyoming.

UNPRECEDENTED GROWTH (CONTINUED) In response to the numerous challenges that our communities faced in 2020, Blue extended historic levels of financing to ensure our members could pursue their dreams. Between the upheaval caused by the pandemic and historically low interest rates, a record number of members improved their lives by purchasing a new home for their families or refinancing their primary residence. In just twelve months, Blue extended more than $100 million in mortgage financing – the highest yearly total ever for Blue, and an increase of an astounding 69% over the year prior. Demand for auto, RV, unsecured and other loan types also soared, with total originations growing by more than 30% over 2019. In addition, Blue also served as a safe haven for our members’ savings in 2020. Total deposits grew by more than 28% during the year as members turned to the strength and stability of Blue over volatile financial markets. This level of trust from our existing members also attracted new members to Blue at a growth rate of more than 10%, leaving total membership count at nearly 100,000. As a result, total assets grew by 24.95% over 2019 to end the year at $1.44 billion, serving as further affirmation of Blue’s endless commitment to the unlimited potential of our members.

I opened my first account with Blue when I was 16 years old. I just got my first job and my Mom said it’s time to get my own bank account to put my paycheck in! Now, 10 years later I am still with Blue because they take such good care of me. I will remain with Blue through my future financial endeavors! Danielle P. - Farmington, UT

YEAR IN REVIEW

555.6 MILLION

Loan Production:

30.82%

101.3 MILLION

Mortgage Loan Production:

69.78%

1.44 BILLION

$ Asset Growth:

24.95%

98 ,985 MEMBERS Member Growth:

10.03%

STRENGTHENING COMMUNITIES With all the closures, postponements, cancellations, and deferrals that took place in 2020, Blue still saw opportunities to be present in the community. During the past year, Blue employees and affiliates volunteered a cumulative 2,500+ working hours to projects in every community we serve. From hosting virtual gatherings, to packing food for drive thru events, we served charities and non-profits from a variety of industries and needs. Doing Good does not stop when challenges present themselves, but rather, new possibilities arise that still need to be addressed. Blue’s ‘Do Good Army’ heeded the call and improved communities throughout Wyoming and Colorado. Business Development preparing COVID relief care packages.

Blue Do Good Army volunteering in the community.

VOLUNTEERING & CARING

2,500+ HOURS

Blue employees delivered 750 CARE PACKAGES and volunteered in every community we serve.

AWARD-WINNING CREDIT UNION

Blue continues to lead the pack.

Named your FAVORITE CREDIT UNION in Cheyenne for the 5th year in a row.

Recognized as the regional 2020 recipient of the DORA MAXWELL SOCIAL RESPONSIBILITY COMMUNITY SERVICE AWARD by the Mountain West Credit Union Association.

Named the BEST CREDIT UNION in Northern Colorado for 2020 by NOCO Style Magazine.

UNPRECEDENTED HUMANITY

Our communities are at the heart of Blue. This past year, when the call for help came, Blue answered with full heart. One of the biggest and quickest community support programs in 2020 was the ‘Double Your Impact, Double Your Good’ COVID-19 Relief campaign. Blue Federal Credit Union and the Blue Foundation each pledged $100,000 that would be granted when nine pre-selected community partner organizations raised funds. By the end of the campaign, over $525,000 was raised and much needed relief was given. The response also had the distinction of being one of the biggest community outreach successes in credit union history.

DOUBLE YOUR DOUBLE YOUR

IMPACT GOOD! $200,000 BECAME $400,000 WITH YOUR HELP!

DONATED DIRECTLY TO: United Way of Laramie County

Blue Federal Credit Union and the Blue Foundation pledged a total of $200,000 in matching funds to these organizations. With your help, we exceeded our goal of $400,000, reaching over $525,000.

United Way of Albany County

After School for Kids

United Way of Larimer County

Mile High United Way

RECORD GIVING

525,000

Blue Federal Credit Union and the Blue Foundation pledged $200,000 in matching funds to nine community partner organizations.

UNPRECEDENTED HUMANITY (CONTINUED)

Unfortunately, the next opportunity to serve our communities came shortly thereafter with the devastating wildfires that took place in Colorado and Wyoming. This time Blue partnered with the American Red Cross of Colorado and Wyoming and pledged an additional $200,000. By the end of the campaign over $436,000 was raised that helped deliver emergency funds for affected families. At last tally, over 500 Colorado and Wyoming families were positively impacted by Blue’s giving. In both cases of matching funds, other organizations and credit unions followed suit by offering up their own matching programs, effectively helping more people. Through all the challenges, Blue’s response was unprecedented, whether in speed of deployment, amounts raised, or specific causes supported. Giving back is core to Blue and 2020 was an opportunity for that to be brought to the forefront of our business. We are always on the lookout for causes and sponsorships that support, grow, and improve our communities.

COLORADO & WYOMING

FIRE RELIEF FUND

YOU HELPED US RAISE OVER $400,000

RECORD GIVING

436,000

Blue Federal Credit Union and the Blue Foundation pledged $200,000

in matching funds to the American Red Cross of Colorado and Wyoming.

UNPRECEDENTED SERVICE

At Blue, our number one priority is providing excellent service to our members. Our staff strives to ensure our members have a positive experience. With all of that hard work comes excellent results. In 2020, Blue recorded the highest percentage of member satisfaction ever on our Net Promoter Score surveys! This performance ranks us better than 73% of other credit unions.

It’s so nice to have bankers know our names and care about our family. We really enjoy banking at Blue. Personal service is extraordinary. Further, I really enjoy going to the branch as they are so friendly. I feel like they are truly glad to see me. Thomas A. - Denver, CO

I am always treated the same each time I stop in. Even if I have to wait, it is usually for a short time and I am acknowledged as soon as I come in. I know they are treating the person in front of me just as special as they will treat me when it’s my turn. The business is such an open and friendly environment that you can see the staff enjoys working there and taking care of their customers. Susie A. - Fort Collins, CO

UNPRECEDENTED TEAMWORK

At Blue, we understand that taking care of our employees leads to a positive experience for our members. The year 2020 presented many challenges to our organization and culture we have worked hard to build. With the excellent leadership of our executives, every staff member was empowered to take those challenges head on. Throughout the year, our entire staff adapted to the many changes that came up and embraced the new ways in which we did our jobs. The safety, flexibility, and positive engagement of our employees was a high priority and allowed us to continue working hard for our members.

EMPLOYEE CULTURE

268 EMPLOYEE

CARE PACKAGES

All Blue employees received VIRTUAL CARE PACKAGES including food and entertainment gift cards, when they were deployed to work from home.

429.4

POUNDS LOST

53 EMPLOYEES participated in the 2020 ‘Slimpossible’ weight-loss challenge.

35,717 MILES

walked during the employee "SPRING FEVER" walking challenge.

EXECUTIVE LEADERSHIP TEAM

Stephanie Teubner President and Chief Executive Officer

Kim Alexander Executive Vice President and Chief Financial Officer

Raj Madan Chief Marketing Officer

Kent Richard Chief Information Officer

I joined the credit union when I worked at the Rocky Flats Plant, probably around 1982-1984, and the credit union was known as Community Financial Federal Credit Union. I don't remember everything I financed there, but cars and motorcycles were some of it. I continue to save money and will finance whatever is next. Thank you, Blue. Thomas S. - Emmett, ID

BOARD OF DIRECTORS

Tom Reiman Chairman

Michael Ryan Vice Chairman

Jeffie Wiggins-McMullen Secretary

Eric Harris Treasurer

Deanne Vogel Board Member

Robert Luna Board Member

Sean Dougherty Board Member

Raymond Wade Board Member

Teresa Kunkel Board Member

UNPRECEDENTED POSSIBILITY 2020 Scholarship Recipients The Blue Foundation is proud to highlight the 2020 scholarship recipients. This was made possible by those who donated. It is because of these efforts that Blue Foundation gave a grand total of $235,500 to future generations. It is always an honor and a privilege to award funds so students can pursue their goals and unlock their possibilities. These bright Blue members were chosen based on their merit, commitment to the community, and dedication to furthering their education. We truly believe they have blue skies ahead.

Recipients

Jamie Luna Graduated: Centaurus – Lafayette, CO Attending: California Polytechnic State University Aspen Amador Graduated: Thornton High School – Commerce City, CO Attending: University of New Mexico Nolan Reid Gerdes Graduated: East High School – Cheyenne, WY Attending: University of Wyoming McKenzie Boltz Graduated: Central High School – Cheyenne, WY Attending: University of Wyoming Braxton Olson Graduated: Prospect Ridge Academy High School – Cheyenne, WY Attending: Southern Utah University Caleb Jenkins Graduated: Windsor High School – Greeley, CO Attending: University of Northern Colorado

Shirley Howard/Blue Foundation Scholarship Brooke Nesvik Graduated: East High School - Cheyenne, WY Attending: Laramie County Community College

SUPERVISORY COMMITTEE REPORT The Supervisory Committee is comprised of five elected volunteers. Its primary responsibility is to safeguard member assets by overseeing the financial and internal control systems and policies related to credit union operations. In 2020, we achieved our objective in two ways. First, we retained the services of CliftonLarsonAllen LLP to perform our audit for 2019. Second, with the assistance of the credit union’s Internal Audit Department, we conducted and reviewed various audits and researched questions from the Board of Directors and credit union members. It is our opinion that your credit union continues to run in a safe and sound manner.

Milton B. Uribe Chairman

Correspondence can be addressed to: Blue Federal Credit Union Supervisory Committee 2401 E Pershing Blvd. Cheyenne, WY 82001

Milton B. Uribe Chairman of the Supervisory Committee

I moved to Cheyenne in August of 2005 and opened my account shortly after that. The staff was, and still is, so amazing. I heard of Blue from my step dad who has recently just passed of cancer this month, but was there longer than me. I just want to thank you guys for being such an amazing bank. Y'all definitely treated me like family. Jena L. - Cheyenne, WY

2020 STATEMENT OF FINANCIAL CONDITION ASSETS

2020

2019

Cash & Cash Equivalents

98,084,973

62,885,841

Investments

90,389,479

10,839,465

Loans, Net

1,100,095,399

975,097,561

Premises & Equipment, Net

32,659,037

29,676,041

NCUSIF Deposit

11,058,641

8,460,219

Other Assets

107,911,926

65,658,599

TOTAL ASSETS

$1,440,199,455 $1,152,617,726

LIABILITIES & MEMBERS’ EQUITY Members’ Share & Savings Accounts

1,290,931,691

1,001,767,984

Other Liabilities

21,197,325

34,220,933

Members’ Equity

128,070,438

116,628,809

TOTAL LIABILITIES AND MEMBERS’ EQUITY

$1,440,199,455 $1,152,617,726

BECAUSE WE CARE • • • • •

Branch safety initiatives for members Appointment scheduling Employee work-from-home deployments Extra cleaning and fogging COVID pay for employees

2020 STATEMENT OF INCOME INCOME

2020

2019

Loan Income

53,702,849

48,236,241

Investment Income

1,241,865

589,771

Other Income

17,493,586

15,776,164

TOTAL INCOME

$72,438,300

$64,602,176

Employee Compensation and Benefits

20,674,805

18,583,000

Other Operating Expense

19,386,239

17,537,266

TOTAL EXPENSE

$40,061,044

$36,120,266

Provision for Loan Loss

9,135,099

4,848,256

Cost of Funds

12,454,353

12,310,439

TOTAL NON-OPERATING EXPENSE

$21,589,452

$17,158,695

NET INCOME (Loss)

$10,787,806

$11,323,214

Expense

Non-Operating Expense (Income)

(Income)