Since 2013, our goal has been to renew our focus on better serving the members lending needs and to continuously review all areas for efficiency.

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1 2014 Excellence in Operations, Sales & Service Application Miscellaneous Category

2 Introduction is a financially sound and member focused financial institution. Net worth, loan loss ratios, and deposit growth have always been strong. Since the economic downturn, Point Breeze has maintained some of the highest dividend rates among peers and has therefore retained and grown deposits. This followed the belief in giving as much as possible back to the membership. At the same time, as expected, loan growth has been a challenge and operating expense has slowly increased. Since 2013, our goal has been to renew our focus on better serving the members lending needs and to continuously review all areas for efficiency. Centralized Lending experienced record net loan growth of 8.4%, or $22,767,764, in This growth was attributed to moving to a centralized lending program, effectively communicating loan goals, and adding an active rate committee. Point Breeze faced the challenge of meeting the loan needs of our members in a prompt, efficient, and accurate manner. We were operating under a one-stop shop approach with the deposit and lending functions being handled by the same staff. The decision was made to focus our efforts and utilize a few of the most experienced Loan Officers to create a centralized lending environment. Our Loan Specialists now handle all loan applications received via online banking, telephone, and mail. During 2013 this accounted for 47% of all loans funded. In addition to the Loan Specialists, we have also centralized our underwriting. Again

3 we were able to focus our efforts and provide a more consistent analysis and review of all loan applications. Along with focusing on our member s lending needs, every employee knew the loan goals established in the Strategic Plan. These goals were updated daily by e- mail, and were discussed at length in quarterly staff meetings. This created excitement and motivated everyone to reach for the next $1MM increase. In early 2013 we established a formal rate committee. The committee meets biweekly to review all of our current rates and to compare them to the market and our competition. By reviewing our rates with greater frequency we are able to stay relevant to the lending needs of our members. Another area that added to our outstanding loan growth was our Indirect Lending Program. We added motorcycle and RV loans to our indirect channel in late We had always offered direct motorcycle and RV loans, but with the addition of indirect dealers we saw an increase of 40.8%, or $2,675,355, in 2013 in this loan category. We also experienced the largest year-to-date increase in total indirect loans than we had in more than five years. The delinquency on these loans remains very low. As of March 31, 2014, the delinquency on all indirect loans was 0.023%. By focusing our efforts and changing to a centralized lending environment, establishing a rate committee, and adding to our indirect lending channel Point Breeze Credit Union has become a more efficient and attractive option for our members. We continue to receive positive member feedback such as Thank you so much for your help. This was extremely painless. You rock!, Working with Point Breeze and employees like you make it so worth doing business with PBCU, Just wanted to thank you for making my car loan experience seamless. I appreciate all of your help. The improved lending process which has garnered this positive member feedback has boosted employee morale. This, in turn, caused a domino effect of continued service excellence throughout the organization.

4 Improved Efficiency In early 2013, we began to explore ways to improve efficiency and reduce operating expenses. We took advantage of a change in leadership to examine existing relationships and review legacy policies. As a result, we were able to improve employee job satisfaction and consolidate plastic card processing. As part of our strategic plan to improve associate satisfaction, we implemented a new staffing model for our branch staff going from a six day work week to a five day work week. Previously, in order to provide proper coverage for our branch operating hours, associates were scheduled six days a week including a half day on Saturday with a half day during the week for a 41 hour work week. With the staffing change, our associates scheduled to work a half day on Saturday were scheduled a full day off during the week, while working a 40 hour week over five days instead of six. Our associates have been very excited about the new schedules and it was very well received. Besides being a huge morale booster, and improving our associates work life balance, the staffing changes resulted in a significant reduction in overtime costs. We reduced the total amount of overtime expense in our branches by 80%, and we are on target to save nearly $40,000 in In late 2013 through early 2014, we consolidated our plastic card processing. As a result, we gained internal efficiencies and improved member service. Before the conversion we had two different vendors and systems. Now we use one system through Fiserv Solutions Inc., to access reports and do research. Since the new system is integrated with the core we have real-time posting and fewer files to run and transmit. It broadens system access to other departments making it easier to handle member inquiries. It also ensures synchronization of data by removing the need for dual entry, providing a seamless workflow, and reducing the time for data maintenance.

5 The conversion has also directly benefited our members. They can select their own PIN numbers via the telephone, giving them immediate use of their card. In the past our members had to wait for their PIN to be mailed to them. We also improved our credit card rewards program by changing to UChoose. Now our members can earn merchant funded rewards in addition to cash back and other gifts. Internal Communications It s Everyone s job! To make our cost-efficiencies and loan growth messages resonate with our employees, in early 2013, our new President/CEO initiated morning quarterly employee meetings to thoroughly explain the importance of these two initiatives and to keep them top of mind. At the end of each quarter, our President travels to each office and delivers a personalized message and fields any questions the employees may have. We have received very positive feedback from the staff on these new meetings and have learned that they are going a long way in helping our employees understand the reasoning and importance that efficiencies and loan growth have for the company and for each of them.