Federally insured by the NCUA

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Asher Rolf Anderson
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1 Federally insured by the NCUA

2 Chair and President s Report Bruce Jaffee Board Chair Bryan Price President & CEO We are pleased to report that 2014 was a successful year for IU Credit Union. Thanks to the ongoing support and loyalty of our members and dedicated staff, a number of significant results were achieved. Total assets increased by $27 million, or 3.5%, ending the year at $781 million. Net worth, a key indicator of safety and soundness, surpassed $102 million, or 12.9% of total assets. IU Credit Union remains well positioned for continued strong financial performance. Total loan balances increased $51 million, or 10.8%, in Auto loan balances increased by more than $18 million, or 19%, while real estate loan balances increased by more than $13 million, or 6%. For the sixth consecutive year, we led the local market in residential real estate lending with more than $75 million in originations. Business loan growth was also solid as total balances increased by more than $14 million, or 11.8%. IU Credit Union remains well positioned for continued strong financial performance. Other key achievements in 2014 included the remodeling of our 17th Street Branch and Drive-Up; the implementation of Mobile Deposit, which enables our Mobile App users to deposit checks with their smartphones; and the implementation of enotices and esignatures within our Online Banking platform. In addition, an Enterprise Risk Management program was established, designed to identify and mitigate potential risks to the organization. IU Credit Union is dedicated to the communities we serve. Each year we award a total of $31,000 in scholarships to students in area high schools, Indiana University and Ivy Tech. Our United Way workplace campaign once again raised $40,000 through employee pledges and Credit Union contributions. IU Credit Union provided financial education and literacy sessions at local schools and volunteered in local agencies such as Hoosier Hills Food Bank. We sponsored various community programs including Lemonade Day, the YMCA Partners with Youth Program and Cardinal Stage s IU Credit Union Education Initiative. We thank our members for voting IU Credit Union as the Herald-Times Readers Choice Best Bank/Credit Union in 2014 for the eighth consecutive year. In 2015 we will convert our debit and credit cards to more secure chip-enabled cards. Also, we will enhance the use of key platforms including mortgage lending, resulting in greater efficiencies and an improved member experience. In addition, IU Credit Union plans to open a second branch location in the Greenwood market. On behalf of our Board of Directors and employees, we thank you for your continued support and confidence in IU Credit Union and look forward to serving you in the coming year. 1 Powering Performance 2014 IU Credit Union Annual Report

5%, ending the year at $781 million. Net worth, a key indicator of safety and soundness, surpassed $102 million, or 12.9% of total assets.

3 Treasurer s Report Doris Sims Treasurer The IU Credit Union ended 2014 with assets of $781 million, an increase of $27 million, or 3.5% from Total loan balances increased $51 million, or 10.8%. Total share and certificate balances increased $18 million in Net income for 2014 was $7.2 million. As a result, the Credit Union s total equity increased to $102 million or 12.9% of assets. Statement of Condition as of December 31, 2014 and 2013 Assets Cash and due from banks $7,712,504 $9,159,326 Interest bearing deposits with other financial institutions 40,544,728 64,935,186 Certificates of deposit with other financial institutions 9,902,329 6,657,009 Securities available for sale, at market value 175,576, ,762,961 Federal Home Loan Bank stock, at cost 4,157,600 3,580,900 Loans held-for-sale 349,000 - Loans to members (Note 1) 519,847, ,066,524 Accrued interest receivable 1,677,025 1,506,082 Premises and equipment, net 12,736,793 13,075,136 National Credit Union Share Insurance Fund capitalization deposit 6,571,337 6,314,399 Prepaid expenses and other assets 1,481, ,505 Statement of Income for the years ended December 31, 2014 and Interest income $21,815,035 $20,709,688 Interest expense 1,349,243 1,485,511 Net interest income 20,465,792 19,224,177 Provision for possible loan losses 558, ,277 Net interest income after provision 19,906,933 18,711,900 Other income 9,826,651 9,394,970 Other expenses 22,546,964 22,470,055 Net income $7,186,620 $5,636,815 TOTAL ASSETS $780,556,855 $753,893,028 Note 1 - Net of allowance for possible loan losses Liabilities and Members Equity Accrued expenses and other liabilities $9,173,497 $9,470,371 Shares and certificates 669,249, ,213,764 Statutory reserves 31,071,400 27,929,629 Undivided earnings 69,452,363 65,407,514 Unrealized loss on securities, net 1,610,541 (128,250) TOTAL LIABILITIES AND MEMBERS EQUITY $780,556,855 $753,893, IU Credit Union Annual Report Powering Performance 2

Statement of Condition as of December 31, 2014 and 2013 Assets 2014 2013 Cash and due from banks $7,712,504 $9,159,326 Interest bearing deposits with other financial institutions 40,544,728

4 Supervisory Committee Report Vivian Winston Supervisory Committee Chair The primary objective of the Supervisory Committee is to determine that members assets are adequately safeguarded. This objective is carried out through reviews and evaluations of IU Credit Union s operating, financial reporting, and internal control systems. These responsibilities are administered through the combined efforts of the Audit Services Department, independent certified public accountants and others. The findings and recommendations of these audits are communicated to the Supervisory Committee, Management and the Board of Directors on a regular basis. 3 Powering Performance 2014 IU Credit Union Annual Report

These responsibilities are administered through the combined efforts of the Audit Services Department, independent certified public accountants and others.

5 IU Credit Union Officials Board of Directors Bruce Jaffee (Chair) Scott Smart (Vice Chair) Doris Sims (Treasurer) Emily Springston (Secretary) Hannah Buxbaum Director of the Institute for International Business, Indiana University Kelley School of Business Director, Corporate Finance Academy, Indiana University Human Resources Director, City of Bloomington Chief Student Welfare and Title IX Officer, Indiana University John E. Schiller Chair in Legal Ethics at the Maurer School of Law, Indiana University P. A. Mack, Jr. Retired, Former Indiana University Trustee and Former NCUA Board Member Larry Polley Kerry Thompson Tim Thrasher Don Weaver John Whikehart Retired, Controller, Dynamic Medical Practice Services Executive Director, Habitat for Humanity of Monroe County Director of Business Operations, Monroe County Community School Corporation Retired, Assistant to the President for State Relations, Indiana University Retired, Former Chancellor, Ivy Tech Community College Bloomington; and former Deputy Mayor, City of Bloomington Supervisory Committee Vivian Winston (Chair) Dennis Cromwell Roy Elkes Peggy Hite Gregory Udell Kelley School of Business, Accounting Department, Indiana University Associate VP, Enterprise Infrastructure, IT, Indiana University Professor of Accounting, Ivy Tech Community College Professor of Accounting, Indiana University Chase Chair of Banking & Finance, Indiana University Director Emerita Sue Talbot Retired, Former Indiana University Trustee Senior Management Bryan Price Andy Allard Julie Ragsdale David Sipes Chris Hawk Teddie Steele President & Chief Executive Officer Vice President, Chief Operating Officer Vice President, Chief Administrative Officer Vice President, Marketing & Business Development Vice President, Finance Vice President, Information Technology 2014 IU Credit Union Annual Report Powering Performance 4

Title IX Officer, Indiana University John E. Schiller Chair in Legal Ethics at the Maurer School of Law, Indiana University P. A. Mack, Jr.

6 Community Matters Community matters. In fact, it matters a great deal to IU Credit Union since serving our community is at the heart of what we do. Community is not a buzzword or a feel good word for us. It s about what we do as individuals and as an organization to show what is important. We re passionate about the communities we serve, particularly in the areas of education and financial literacy. We invite you to visit often to see firsthand the community matters the IU Credit Union participates in. 5 Powering Performance 2014 IU Credit Union Annual Report

We re passionate about the communities we serve, particularly in the areas of education and financial literacy. We invite you to visit www.iucu.

7 Purpose & Vision Statements IU Credit Union Purpose Statement To provide financial solutions for everyone, consistent with the not-for-profit cooperative spirit on which we were founded, by creating value for our members, promoting financial education and well-being, and contributing to the betterment of our community. IU Credit Union Vision Statement To build long-term relationships with our members as a trusted financial partner IU Credit Union Annual Report Powering Performance 6

education and well-being, and contributing to the betterment of our community.

8 We started a credit union and created a community. PO Box 368 Bloomington, IN MYCU(6928) iucu.org

Federally Insured by NCUA

Federally Insured by NCUA CHAIRMAN AND CEO REPORT In 2012, Oregon Community Credit Union experienced positive loan growth and posted positive net income that surpassed 2011, allowing us to continue making