Empowering you to do more, by doing what's right everyday.

EMPOWERING YOU TO DO MORE. By doing what’s right every day.

201 8 AN N UAL R EPORT

Federally Insured by NCUA.

OUR STORY BEGINS WITH YOU. No matter where you are. No matter how you connect with us. As your not-for-profit financial cooperative, you come first. Why? Because City & County is your Credit Union.

$264 SAVED IN YEARLY FEES

BY CCCU HOUSEHOLDS VS THE NATIONAL AVERAGE

$116,235 TOTAL CASHBACK REWARDS EARNED BY CCCU PLATINUM REWARDS CARDHOLDERS

Raddon Financial Group. See Mastercard Credit Card Terms & Conditions for complete details.

$126,268 TOTAL CASHBACK REWARDS EARNED BY CCCU DEBIT CARDHOLDERS

3,480 STUDENT & COMMUNITY MEMBERS ATTENDED A FINANCIAL EDUCATION CLASS TAUGHT BY CCCU

REPORT OF THE

BOARD CHAIR & PRESIDENT City & County Credit Union was founded by people who believed in providing affordable financial solutions. More than 90 years later, we do something few still do, deeply care about the people who make up our membership.

We take an interest in your financial success. We want to know your name and share genuine solutions to help you reach your financial goals. We have compassion when you are facing challenges. And we are determined to make sure you feel what any member of a credit union should feel: that we are YOUR credit union.

By listening to you, we continue to evolve the Credit Union experience, which is evident by the impressive accomplishments in 2018 that are highlighted within this report and below.

• Even stronger member loyalty with assets reaching a new high of $548 million and over 2,000 new members.

• Opened the doors to a new and improved Eagan location with a revolutionary member-focused retail design.

• Introduced a Lockable Home Equity Line of Credit (HELOC).

This unique new product begins as a variable rate line of credit, but has the ability to split-off into as many as 3 fixed-rate loans.

You get the convenience of a HELOC, with the security of a fixed rate.

$548 TOTAL ASSETS IN MILLIONS

• Partnered with Excess Share Insurance Corporation (ESI), a licensed property and casualty insurance company, to provide an additional $250,000 of savings coverage to qualifying accounts – in addition to the NCUA coverage of $250,000. This supplemental share insurance is provided at no additional cost to our members. As a result of the combination of these coverages, savings deposits in City & County Credit Union are now covered up to $500,000 as of January 1, 2019.

• Announced the collaborative merger with Mill City Credit Union and are currently working towards combining our long-standing successful credit unions into one organization – City & County Credit Union. As a result, you will have access to an even wider array of fee-free ATMs, continued accessibility to Credit Union Shared Branching with over 5,000 locations nationwide and enhancements to online service including Live Chat expected Spring 2019. By June 1, 2019 all members of City & County will have access to new branch locations in Brooklyn Park and Minnetonka.

Although all City & County locations will remain branded City & County Credit Union; to best represent the truly collaborative nature of this merger, all Mill City branches became Mill City a Division of City & County Credit Union on January 1, 2019. Adopting this co-brand for the Mill City locations unifies us and demonstrates that we are stronger together.

Moving forward, our focus remains on you. We’re member owned.

We’re local. We return our profits to the benefit of our members.

And even during a time of great change, know that we are doing everything in our power to deliver the credit union experience that you want, and more importantly, deserve.

PATRICK PIERCE

LOU BRUNO

PRESIDENT/CEO

BOARD CHAIR

2,350 NEW MEMBERS JOINED CCCU IN 2018

SUPERVISORY COMMITTEE MEMBERS

REPORT OF THE

SUPERVISORY COMMITTEE At City & County Credit Union, we are dedicated to having authentic and transparent relationships with our member-owners. We believe in putting people before profit and continually strive to build

Marion Holly CHAIR

Tom Gergen Christine Meyer Joe Piepgras Karen Saltis

BOARD OF DIRECTORS Lou Bruno CHAIR

connections that honor our top priority – ensuring your trust and

Joe Mathews

commitment to your not-for-profit financial cooperative.

Nicole Bates Shannon Cunningham Rebekah Ferguson Lisa Hayes Axel Henry Heidi Holste Chad Kerlin Hans Molenaar Heidi Wolf

Acting as your representative, the Supervisory Committee works to ensure that City & County Credit Union is both fiscally responsible and operating to the benefit of all our members. The Committee is also responsible for ensuring policies and procedures exist to protect City & County Credit Union resources. To help conduct a thorough examination of the Credit Union’s financial condition, we retained CliftonLarsonAllen LLP to audit the December 31, 2018 financial statements.

The Supervisory Committee is pleased to report that City & County Credit Union continues to be a strong, financially sound cooperative.

As always, with the cooperative mindset at the forefront, we will continue to pursue practices that deliver relationship-focused member service, exceptional value and the innovative spirit you have come to expect from your financial cooperative.

VICE CHAIR

FINANCIAL

STATEMENTS STATEMENTS OF FINANCIAL CONDITION

2018

2017

$30,552,218 29,065,000 134,633,920 12,641,358 308,327,153 186,000 1,736,032 18,949,811 4,615,447 7,744,346

$25,601,844 26,485,000 149,263,991 11,258,988 276,455,797 790,335 1,606,031 17,173,327 4,358,680 7,373,120

$548,451,285

$520,367,113

$476,291,889 10,400,000 8,192,638 494,884,527

$460,219,353 9,135,413 469,354,766

Members’ Equity Regular reserves Undivided earnings Accumulated other comprehensive loss Total Members’ Equity

12,510,397 45,266,265 (4,209,904) 53,566,758

12,510,397 42,065,017 (3,563,067) 51,012,347

Total Liabilities and Members’ Equity

$548,451,285

$520,367,113

DECEMBER 31, 2018 AND 2017 Assets Cash and cash equivalents Deposits in other financial institutions Securities - available for sale Other Investments Loans, net Loans held for sale Accrued interest receivable Premises and equipment, net NCUSIF deposit Other assets Total Assets Liabilities & Members’ Equity Liabilities Members’ share and savings accounts Borrowed Funds Accrued expenses and other liabilities Total Liabilities

TOTAL ASSETS

IN MILLIONS

$490

$520

$548

2016

2017

2018

TOTAL MEMBERS EQUITY

IN MILLIONS

$49

$51

$53

2016

2017

2018

NET LOANS

IN MILLIONS

$274

$276

$308

2016

2017

2018

STATEMENTS OF INCOME

2018

2017

$13,845,141 3,546,850 17,391,991

$12,635,571 2,831,195 15,466,766

1,374,136

1,163,486

Net interest income

16,017,855

14,303,280

Provision for Loan Losses

1,026,924

1,254,589

14,990,931

13,048,691

Non-Interest Income Service charges and fees Other noninterest income Gain on sale of investments, net Gain on sale of assets, net Total non-interest income

2,198,055 4,988,330 55,700 (16,171) 7,225,914

2,173,102 3,928,646 167,749 61,554 6,331,051

Non-Interest Expense General and administrative: Employee compensation and benefits Office occupancy and operations Other operating expenses Total non-interest expense

8,282,771 5,377,045 5,355,781 19,015,597

7,986,158 5,151,465 4,401,374 17,538,997

$3,201,248

$1,840,745

DECEMBER 31, 2018 AND 2017 Interest Income Loans receivable Securities and interest bearing deposits Total interest income Interest Expense

Net interest income after provision for loan losses

Net Income

2018 IMPACT REPORT 3,179

Students completed Financial Education curriculum taught by CCCU

301

Community members attended a financial education workshop hosted by CCCU

1,870

Pounds of food was collected to help fight hunger in our community

$1,824

Was given to Gillette Children’s Hospital to help children with disabilities & complex conditions

$731

Was donated to Special Olympics MN & 9 team members took the plunge

500

Volunteer hours were given by CCCU employees to a host of organizations

EXECUTIVE MANAGEMENT TEAM

PURPOSE OVER PROFITS

Patrick Pierce PRESIDENT/CEO

Tom Coulter

SENIOR VICE PRESIDENT OF EAST OPERATIONS

At City & County Credit Union, we’re a different way to bank – and proud of it. We run our business differently than our big bank counterparts and couldn’t be more proud to be a not-for-profit financial cooperative.

Marc Kilgore

SENIOR VICE PRESIDENT OF INFORMATION TECHNOLOGY

Mitch Myre

SENIOR VICE PRESIDENT OF WEST OPERATIONS

Danielle Arthur Our goals and decision making put purpose over profit and most

VICE PRESIDENT OF COMPLIANCE & RISK MANAGEMENT

importantly - we’re still driven by the ‘People Helping People’

Charlie Barnes

philosophy that first opened our doors in 1928.

VICE PRESIDENT OF ELECTRONIC SERVICES

What does a different way to bank look like?

Robin Downing

It’s spending time building relationships with our neighbors by

Steven Galarneau

volunteering at a local pet rescue. It’s inspiring our community to reach their biggest and smallest financial goals by hosting a free Budgeting Workshop at the library. It’s sponsoring events like

VICE PRESIDENT OF HUMAN RESOURCES

VICE PRESIDENT OF FINANCE

Mardell Lutgen

VICE PRESIDENT OF MEMBER EXPERIENCE EAST

Snow Park at the Fair to provide free, family events in our community.

Eric Mellenthin

Above all – it’s empowering the community that has given us the

Missy Mound

opportunity to serve and giveback for the past 91 years.

VICE PRESIDENT OF INFORMATION TECHNOLOGY

VICE PRESIDENT OF MEMBER EXPERIENCE WEST

Shirley Neukom VICE PRESIDENT OF SPECIAL PROJECTS

Megan Primeau VICE PRESIDENT OF MARKETING

SERVICES SAVINGS & CHECKING Savings Checking Money Market Certificates IRAs

Business Accounts Youth Accounts Financial Planning Health Savings Accounts

LOANS Auto & Recreational First Mortgages Home Equity Loans & Lines of Credit

Cabin Loans Credit Cards Private Student Loans

CONVENIENT ACCESS Online Banking ATLIS by Phone Bill Pay eStatements Mobile Banking

ATM/Debit Cards Direct Deposit Mobile Deposit Send Money

Equal Housing Lender and Deposits Federally Insured by NCUA.

C O N TAC T I N F O R M AT I O N PHONE

TOLL FREE

(651) 225-2700

(800) 223-2801

CCCU.COM DOWNTOWN

SHOREVIEW

144 11th Street East St. Paul, MN 55101

1001 Red Fox Road Shoreview, MN 55126

MAPLEWOOD

WOODBURY

1661 Cope Avenue East Maplewood, MN 55109

4008 Radio Drive Woodbury, MN 55129

EAGAN

CO-OP SHARED BRANCHING

1523 Central Parkway Eagan, MN 55121

LAKE ELMO 8500 Hudson Blvd N. Lake Elmo, MN 55042

Access to over 5,000 locations nationwide co-opsharedbranch.org