2017 IHMVCU Annual Report

2017 Annual Report

Move Up with us.

What does it mean to Move Up on your financial journey? It’s finding a friend to guide you on the way to success – whatever that looks like to you. We know financial success is different for everyone. And for your credit union, success in 2017 looked a little something like this. . .

We became pathfinders for 15,973 new members, bringing our total membership to 121,956!

We expanded our field of membership by adding 13 new counties.

Membership is now open to people who live and work in 42 counties in Iowa and Illinois, spanning from Dubuque to Keokuk; Cedar Rapids to Peoria.

Benton

Iowa

Linn

Johns

Washington

Hen

L

Delaware

n

Dubuque Jo Daviess

Jackson Jones

Carroll Clinton

Cedar

Whiteside

son

Lee

Scott Muscatine Rock Island

n Louisa

Bureau

Henry

Mercer Stark Knox rson

Des Moines

LaSalle

Putnam Marshall

Warren

Woodford

Hend e

nry

Ogle

Peoria

Lee

Hancock

McDonough

Schuyler

Fulton

Tazewell

McLean

DeWitt

We got you moving with $595,309,156 in loans.

To put it in perspective, that means:

1,011 started their home buying journey at IHMVCU, for a total of $131,255,246 in mortgages.

Around 25,000 people hit the road in new autos.

373 small businesses got the funding they needed, totaling $51,713,038.

That’s a 37% increase from 2016.

You said some nice things about us:

Danielle J.4IH M

As a single mom who is on it possible for myself to do Series. Without IH that and mistake or something goes do not know where I would accounts with no fees, it’s a

Jeannie M. 4IH M

I love this credit union I hav interests at heart. They are have had wonderful intera our adult kids even bank w

Debbie R. 4IH M

The Bettendorf office is my being so kind and so caring

Mississippi Valley Credit Union

her own, it gives me great relief to have IH on my side. They have made a lot of things, including taking my son to Indiana to play in the AA World d a couple of Christmas’s would not have happened. Anytime I make a s wrong customer service is amazing at helping me get it right. I seriously d be without IH. From car loans to personal loans to savings and checking a single parent’s best friend!!!

Mississippi Valley Credit Union

ve been with them for many, many years and I feel they have your best e very concerned about your privacy and protection. My husband and I actions with any of their staff that we’ve dealt with over the years. All of with them. Keep up the good job IH we will be lifetime members!

Mississippi Valley Credit Union

y favorite place to be. I’d live there if I could. g.

Thank you for always

You came to see us a lot and together we completed 2,018,596 transactions in our branches.

But, you also banked on your own time: 48,448 members used Online Branch to access their finances.

34,306 members did their banking on the go with the IHMVCU mobile app. That’s 8,896 more mobile app users than in 2016!

92,927 checks were deposited with the mobile app for a total of $31,499,645! A 39% increase in users from 2016.

You spent your money your way with: 13,552,719 debit card transactions.

We’re talking $420,602,731 in purchases.

1,878,093 credit card transactions, totaling $105,211,388.

16,259 members enrolled in Google Pay, Samsung Pay or Apple Pay with an IHMVCU debit or credit card.

Our Member Advantage program saved members $113,084 on baseball tickets, hockey games, museums, concerts, swimming pools, ice skating, haunted houses and so much more!

You kept it safe & secure at our 2017 shred event. Members brought in 2,980 pounds of sensitive documents to be shredded.

We helped you boost your style!

We launched 102 Move Up shirts from our t-shirt cannon.

Can we call it the year of the sweet tooth?

Together in 2017 we ate 3,480 frosted IHMVCU cookies.

You collected 610 pounds of candy at community parades and events.

We even had a few surprises up our sleeves.

We gave $8,022 back to the communities we serve through Random Acts of Kindness! We bought coffee, picked up your tab at grocery stores, filled up gas tanks and even handed out a little cold hard cash.

On a corporate level, we contributed $141,918 in donations and sponsorships for organizations like Dress for Success Quad Cities, Buchanan Center for the Arts, Big Brothers Big Sisters, Boys & Girls Club, Burlington Steamboat Days, River Music Experience, Junior Achievement, Royal Family Kids Camp, River Bend FoodBank, SAU Dance Marathon, United Way and so many more.

We didn’t have cold feet about our support for Illinois Special Olympics.

We raised $3,000 and 25 members of Team IHMVCU plunged into Wick’s Lake in Rock Island and came out as the top credit union supporter of the Polar Plunge 2017.

Team IHMVCU is kind of a big deal when it comes to fundraising.

Through bake sales, coffee bars, boxed lunches and more, our employees raised $16,592 for their favorite causes, including Toys for Tots, Heart Walk and Moline Police Department Kids & Cops Holiday Shop.

Statement of Financial Income

2017 2016

ASSETS Loans to Members Accrued Interest Reserve for Loan Loss Cash Government Securities Equity Investments Investments in Alloya Corporate CU Furniture and Fixtures (net of depreciation) Building and Land (net of depreciation) NCUA Insurance Fund Other Assets Total Assets

$1,047,177,899 $877,666,576 $5,120,600 $3,774,609 $(7,576,069) $(3,668,527) $64,122,896 $49,377,667 $93,920,262 $97,455,901 $2,814,805 $4,217,011 $300,000 $300,000 $2,706,010 $2,475,669 $15,168,357 $17,640,282 $9,150,924 $7,836,148 $33,528,740 $28,928,916 $1,266,434,424 $1,086,004,252

LIABILITIES AND MEMBERS EQUITY Shares of Members Term Deposits Accrued Certificate Dividends Payable Other Liabilities Total Liabilities and Shares Regular Reserve Secondary Capital Undivided Earnings Other Reserves YTD Net Income Total Members Equity

Total Liabilities, Shares and Members Equity

Income Statement

$733,882,252 $337,538,881 $257,789 $90,948,158 $1,162,627,080

$671,793,213 $277,299,457 $192,876 $42,023,147 $991,308,693

$18,545,372 $1,000,000 $74,434,526 $887,097 $8,940,349 $103,807,344

$18,545,372 $1,000,000 $69,702,734 $715,661 $4,731,792 $94,695,559

$1,266,434,424

$1,086,004,252

2017 2016

INCOME Interest on Member Loans Interest on Investments Other Income Total Income

$44,303,304 $2,826,542 $22,983,732 $70,113,578

$32,267,241 $2,443,581 $21,215,477 $55,926,299

$8,896,199 $52,277,030 $61,173,299 $8,940,349

$6,233,737 $44,960,770 $51,194,507 $4,731,792

EXPENSES Dividend and Interest Expense Other Expenses Total Expenses Net Income

President & Chairpersons Report At IHMVCU, our commitment to improving the financial lives of our members and communities is the driving force behind all that we do. You continue to place your trust in us to provide not only quality service, but also advice and thoughtful solutions to even the toughest financial issues; we strive to exceed your expectations with every transaction completed, smile shared, relationship forged and friendship built.

In 2017, we put just shy of $600 million dollars to work in loans to our members. That’s a big impact in our communities.

Last year nearly 16,000 new members joined us on the path to financial success, bringing total membership to just under 122,000. Guiding our members toward achievable financial goals is our passion and we’re eager to be your pathfinders along the way. We’re excited that we’re now able to serve even more members with our expanded field of membership covering 42 counties in Iowa and Illinois.

People helping people is more than banking. It’s about supporting our communities by getting our hands dirty, giving back and doing our part to make a difference. Our employees are the heart of what we do, and in 2017, we held bake sales, plunged into freezing lakes, planted gardens, filled gas tanks and grocery carts and so much more. But most of all 2017 was the year we clarified our focus.

We established three principal areas of giving where there are significant gaps in services – youth & education, human services and military – to help ensure we’re putting the most dollars toward the organizations and community issues that matter most to our members and support our mission.

Based on these guidelines, IHMVCU is proud to support and sponsor Dress for Success Quad Cities, River Bend FoodBank and USO of Illinois in 2018.

During 2017, we embarked on the multi-year journey of remodeling our branches and laid the groundwork for big things to come over the next several years. In 2018, we’ll break ground on a new corporate headquarters that will allow us to consolidate member support services that are currently spread throughout the Quad Cities, as well as provide a community room and collaboration space.

Enhancing the member experience will continue to be a key focus for us. We’ll continue to make improvements to our products and services, making managing your money easier, more effective and more fun.

We think this report is testament to our steadfast commitment to doing the right thing for our members, our employees and our communities. We look forward to navigating the path to financial success with you in the next year and beyond.

Move Up with us,

Brian Laufenberg President and CEO

Tom Terronez Board of Directors, Chair

Supervisory Committee Report The Supervisory Committee is an independent auditing committee that evaluates the soundness of IHMVCU’s operations and activities, ensuring management’s sound internal controls and adherence to best practices in accounting policy and procedure.

The committee meets regularly to ensure that members’ funds and interests are protected. By closely monitoring industry trends, we confirm compliance with regulations, policies, and procedures as well as the reliability of financial records. At the request of the Board of Directors, members of the Supervisory Committee also serve on other standing and special committees.

An independent accounting firm is retained by the committee to perform annual financial audits and issue certified statements as it relates to IHMVCU’s overall financial condition.

Based on the results of the 2017 annual audit performed by certified public accountants CliftonLarsonAllen LLP, as well as audits conducted by the National Credit Union Administration and the Department of Financial Institutions, we conclude that IHMVCU has adequate financial controls and is financially sound.

Respectfully submitted,

Jeff Carr Supervisory Committee, Chair

Board of Directors

Supervisory Committee

Tim Considine, Vice Chair

Tom Kale, Jr., Secretary

Larry Wiemers, Secretary/ Treasurer

Chip Irwin

Jeff Carr

Afton Myer

Megan Early

Ajay Singh

Tom Terronez, Chair

Chip Irwin Tom Kale, Jr. Sam Kupresin Ajay Singh

Jeff Carr, Chair

Sam Kupresin

Thanks for Moving Up with us.

Federally Insured by NCUA | Equal Housing Opportunity | NMLS 463074