Issuu

Table of Contents

Vision & Mission Statements 02 Notice of Annual General Meeting 03 Agenda

Profile - First Heritage Co-operative Credit Union Limited

Products & Services

Minutes of the 9th Annual General Meeting

Corporate Governance Statement

Profile of Board of Directors

Board of Directors’ Report

Executive Team

Management Discussion & Analysis Treasurer’s Report

Financial Statements

Supervisory Committee Report

166

Credit Committee Report

172

Nominating Committee Report

174

Pictorial Highlights

185

Report of the Delegates on JCCUL’S AGM

188

Branch & Unit Managers

193

Parliamentary Rules

195

198

Prayer of St. Francis of Assisi

201

Notice of Annual General Meeting

Notice is hereby given that the 10th Annual General Meeting of First Heritage Co-operative Credit Union Limited will be held in a hybrid format on Thursday, May 19, 2022 commencing at 2:00 p.m. Remote access will be facilitated via the Zoom platform and a limited number of members will be hosted at the Jamaica Pegasus Hotel at 81 Knutsford Boulevard, Kingston 5 to allow members to: 1. transact the ordinary business of the society; and 2. consider, and if thought fit, to approve a Resolution submitted by the Board of Directors in respect of amendments to the Rules of First Heritage Co-operative Credit Union Limited for the creation of a new tier of membership to facilitate access to the services of the Credit Union for the underserved and underbanked. A copy of the full resolution and the 2021 Annual Report are available on our website at www.fhccu.com . Instructions for Attendance Members attending physically or virtually are invited to register using the appropriately labelled link on our website www.fhccu.com . Note that for our mutual health and safety, all COVID-19 protocols will be strictly observed. Registration is now open and will close on Monday, May 16, 2022 at 11:59 p.m. For more information on attendance, registration and the voting process, you may email us at info@fhccu. com, call our Member Care Centre at 876-929-5142 or WhatsApp us at 876-551-8193. Dated the 12th day of May, 2022

_________________________ Tamara Francis Riley-Dunn Secretary, Board of Directors

Agenda

Ascertainment of Quorum Call to Order and Prayer Chairman’s Opening Remarks and Tributes Reading and Confirmation of the Minutes of the 9th Annual General Meeting held on Thursday, June 17, 2021. REPORTS: Board of Directors Management Treasurer and Auditor Supervisory Committee Credit Committee Resolutions ELECTIONS: Nominating Committee Report Elections to: Board of Directors Supervisory Committee Credit Committee Any Other Business Vote of Thanks Termination

Profile - First Heritage Co-operative Credit Union Limited First Heritage Co-operative Credit Union Limited (FHC) was formed on August 1, 2012, from the merger of GSB Co-operative Credit Union Limited and Churches Cooperative Credit Union Limited. On March 1, 2015, the business and operations of St. Thomas Co-operative Credit Union Limited were transferred to FHC. FHC’s bond includes: a) All members of any religious bodies and affiliations in Jamaica and their families/relatives; b) All Public Sector Employees, past and present, regardless of their terms of tenure, employed to Ministries/Departments/Agencies/ Statutory Bodies/Public Corporations and their families/relatives; c) All Professionals, their families/relatives, their employees and their families/relatives; d) All members of Professional Associations affiliated to the Public Sector, their families/ relatives and the employees of these Professional Associations and their families/relatives; e) All Public Sector Consultants and their families/relatives; f) All Public Sector Contractors and their families/relatives; g) Employees, past and present, of the Credit Union and their families/ relatives; h) All Registered Co-operative Societies and members of these Societies; i) All persons of good character of the age permitted by the Co-operative Societies Act; j) All members and persons eligible to be members of the Credit Union that have merged with this Credit Union, provided that any person is being admitted to membership has attained the age of eighteen (18) years. The Credit Union has a membership base of approximately 200,000 members across a network of eleven (11) branches strategically located across the island; offering a suite of forty-four (44) products and services. Our extensive array of products and services include a variety of loans, savings, term deposits for both personal and business purposes. In addition, we have investment and pension options from our subsidiary, FHC Investments Limited (FHCIL). Our products and services are specifically designed to meet the needs of members at every stage of their lives.

Profile - First Heritage Co-operative Credit Union Limited

Micro and Small Business Financing The Micro and Small Business Loan business line reflects a renewed commitment on the part of the Credit Union to foster the growth of entrepreneurship in Jamaica as a major driver of the economy. It also reflects the decision of FHC to widen the scope of its services and diversify its product range in a structured and better controlled manner to provide more specific and targeted entrepreneurial opportunities. This will serve to increase employment, the standard of living of borrowing members and also contribute to the GDP of the country. The Micro and Small Business Unit was created in 2006. The Unit is a member of the Caribbean Micro Finance Alliance which acts as a catalyst for the development of micro finance in the Caribbean. The Unit was recognized worldwide as a finalist in the Caribbean Micro Finance Competition in 2012 for its impact in Jamaica. Currently, we have representatives located in Kingston, May Pen, Montego Bay, Mandeville, Spanish Town,Portmore and St. Thomas. Jamaicans have a rich entrepreneurial spirit and FHC is the home for financing these opportunities. FHC aims to be a one-stop financial institution with diversified products and services to meet the needs of valued members at every stage of life. The Credit Union’s commitment remains to generate continual benefits to our valued members and other stakeholders. Subsidiary - FHC Investments Limited (FHCIL) FHC Investments Limited (FHCIL), is a limited liability company and a wholly owned subsidiary of FHC, established to provide investment opportunities for members and non-members of the Credit Union. It is located at 20 Dominica Drive, Kingston 5. The company’s products and services may also be accessed through representatives at several FHC branch locations. FHCIL offers competitive rates of return and portfolio management services to its clients by a team of industry experts with over 30 years of combined experience.

Profile - First Heritage Co-operative Credit Union Limited

FHCIL provides a suite of products and services to meet the needs of clients. These include: • Equities (local and foreign) • Bonds (local and foreign) • Managed Funds • Corporate Financing • Money Market Instruments • Portfolio Management • Investment Advisory • Retirement Planning The Investment company has products and services for the conservative investors as well as those with a greater risk appetite, some of which are offered in both foreign and local currency. FHCIL is also the Investment Manager and Administrator of the Credit Union’s Retirement Scheme. Retirement Scheme The FHC Retirement Scheme (formally Churches Co-operative Credit Union retirement Scheme) referred to as “the Scheme” was established by Churches Co-operative Credit Union Limited as a defined contribution plan with effect from June 1, 2004, by Trust Deed to provide pension benefits for members and their beneficiaries at retirement and ancillary benefits in the event of death or termination. The strategic objective of the Scheme is to ensure that more Jamaicans have a retirement plan to which they are consistently contributing, thus safeguarding their retirement.

Profile - First Heritage Co-operative Credit Union Limited

THE CREDIT UNION MOVEMENT LOGO As a member of the Jamaica Co-operative Credit Union League Limited, the “hands, family and globe” symbol, represents credit unions worldwide. This trademark represents credit unions in any language. The theme is universal and conveys the image of all credit unions. THE GLOBE - This represents the international network of credit unions. THE FOUR SILHOUETTES - This represents the family of mankind working for the mutual benefit of all. THE HANDS -This represents the self-help nature of credit unions.

Products & Services

Minutes of the 9th Annual General Meeting

MINUTES OF THE 9TH ANNUAL GENERAL MEETING OF FIRST HERITAGE CO-OPERATIVE CREDIT UNION LIMITED HELD VIRTUALLY ON THURSDAY, JUNE 17, 2021 AT 2:00 P.M. AND BROADCASTED FROM THE JAMAICA CONFERENCE CENTRE 14 -20 PORT ROYAL STREET, KINGSTON 1. ASCERTAINMENT OF QUORUM AND CALL TO ORDER The Chairman welcomed all and noted that due to the COVID -19 pandemic, as well as the restrictions posed by the Disaster Risk Management Act issued by the Government of Jamaica, the standard proceedings to host annual general meetings had been modified. As a result, a resolution was put forward, which would facilitate the hosting of physical, virtual or hybrid meetings, thereby allowing this meeting to be duly constituted and for any of these modalities to be utilised going forward. He then invited the Secretary, Mrs. Tamara Francis Riley-Dunn to present the resolution. Thereafter, given that the resolution had been previously circulated, she invited a motion to take it as read which was moved by Member, Ms. Charmaine Allen, seconded by Director, Mr. Balvin Vanriel. The poll indicated that 76% of the members supported the motion. The Secretary invited questions from the floor on the resolution and hearing none, members were asked to adopt the special resolution in order for the meeting to commence. The resolution was unanimously adopted and, she then invited the Chairman to officially call the meeting to order. A quorum having been ascertained, the Chairman, called the 9th Annual General Meeting to order at 2:30 p.m. and invited the Secretary to read the notice convening the meeting. Mrs. Tamara Francis Riley-Dunn then read the Notice.

Minutes of the 9th Annual General Meeting

2. NATIONAL ANTHEM AND INVOCATION The Chairman asked all to stand for the playing of the National Anthem. He then invited Mrs. Karlene Simpson, Assistant General Manager, Operations & Shared Services to lead the meeting in prayer. 3. OPENING REMARKS, APOLOGIES AND TRIBUTES The Chairman noted that the performance of the Credit Union over the last year was being reviewed in the context of the COVID-19 pandemic. He further noted that the Credit Union lost a number of their members to COVID-19 and other illnesses and invited all to stand and observe a minute’s silence in commemoration of those who passed during the year. The Chairman then invited the Secretary, Mrs. Francis Riley-Dunn to welcome the specially invited guests. Mrs. Francis Riley-Dunn extended a warm welcome to the following persons: Sheryl Brown Vanessa Porter-Allen

Department of Co-operatives and Friendly Societies Department of Co-operatives and Friendly Societies

Rochelle Stephenson Leonard Batuwitage

KPMG KPMG

Apologies were received from the persons: Karen Silvera Odain Graham

Adika Green Recardo Watson

Minutes of the 9th Annual General Meeting

The Chairman then introduced the following Directors and the CEO seated at the head table: Mr. Cranston Ewan Treasurer Mrs. Tamara Francis Riley-Dunn Secretary Ms. Roxann Linton CEO And himself as Chairman of the Board of Directors. 4. READING & CORRECTION OF THE MINUTES OF THE 8TH AGM The Minutes were taken as read and a motion moved by Member, Mr. Garfield Pearson and seconded by Member, Mr. Bartholomew Campbell. Corrections: Page 15 first bullet point: replace ‘th’ with ‘the’ before ‘entrepreneurial’. There being no other corrections the Minutes were unanimously confirmed on a motion moved by Director, Mr. Edmund Jones and seconded by Member, Ms. Moline Francis. 5. MATTERS ARISING FROM THE MINUTES OF THE 8TH AGM The Chairman noted that on page 45 a member had queried whether or not the total new membership was 135 as stated in the Notice or 153 as reported at the meeting. The Chairman noted that 153 as reported in the Power Point presentation was a typographical error. In relation to the concern raised by Member, Mrs. Nadine Loague-Clarke from St. Thomas regarding the inability to locate her name and registration, the Chairman advised that the database had been checked and she was recorded as present. In relation to the claim made by Member, A. N. Harris Esq. that the Credit Union had promised him two years ago that consideration would be given for him to park closer to the meeting area, and the commitment of the then Chairman, Mr. Balvin Vanriel that it would be looked at, the Chairman advised that limited spaces were available at the Jamaica Conference Centre and that priority would be given to those persons who were physically challenged.

Minutes of the 9th Annual General Meeting

In response to the issue raised by Member, Mr. Keith Brown concerning his inability to withdraw funds and obtain a receipt when the system was down, the Chairman stated that some procedural changes were made to ensure that members had access to their funds during banking hours. 6. BOARD OF DIRECTORS’ REPORT The report was taken as read on a motion unanimously moved by Member, Mrs. Donna Chambers-Edwards and seconded by Member, Ms. Nadia Scott. The Chairman highlighted the following matters: • He directed the meeting’s attention to the attendance record of Directors at the Board Meetings held throughout the year. He indicated that where it was stated that Directors Ewan and Jones attended 1 meeting, this should be corrected to reflect the fact they both attended 11 meetings and were excused for 1. • The Chairman stated that the Credit Union experienced significant challenges due to the COVID-19 pandemic, but given the resilience and versatility of the organization it responded well to the challenges. • There was strict adherence to the Government’s protocols and the Member Assistance Programme was strengthened to allow all members to continue to do business and to be at the centre at all times. He indicated that as a result of the efforts exerted by all, the Credit Union realized a surplus of $106.2 Million for the year. Assets grew by 10.9% to $15.15 Billion. • The Credit Union continued to prepare for supervision by the Bank of Jamaica, by ensuring that its safety and soundness were strengthened. • There was adherence to the standards set by the Jamaica Co-operative Credit Union League Limited by ensuring that all ratios achieved fair, satisfactory and excellent performances. • The Strategic Planning Retreat focused on the 2040 Vision which was adopted a few years ago; the aim of which is to ensure that by the Year 2040 the Credit Union will be the top of mind financial

Minutes of the 9th Annual General Meeting

organization in the Jamaican landscape. The plan was revisited and a strategic map was crafted for the 2021-2023 strategic period. • The Credit Union focused on member centric strategies and as a result, new products and programmes were developed to assist members given the challenges presented by the COVID-19 pandemic. • The technological base within the organization had been improved and plans were afoot to make it even stronger. • The investment arm of the Credit Union, FHC Investments Limited (FHCIL), was strengthened to ensure that viable alternatives were available to members to allow them to invest through a broader suite of offerings. • In spite of the uncertainties and volatility driven by the pandemic, FHCIL was able to remain afloat. Though the company realised losses in its equity portfolio, it was able to mitigate the depth of those losses. • Funds under management grew to $4.68 Billion and the return on equity recorded a healthy 12.31%. • During the year, the name of the Pension Scheme was changed to the FHC Retirement Scheme. As at December 2020, total assets in the Scheme stood at $1.36 Billion and membership enrolled in the Scheme stood at 4,690. Members’ contributions totalled $115.46 Million. The Chairman encouraged members to execute a salary deduction order so that a monthly minimum amount could flow to the Scheme. • The mission of the Credit Union’s Foundation is to support the development of youth, vulnerable children and young people in primary, secondary and tertiary institutions through sports, community involvement and creating opportunities for growth and advancement. In pursuit of this mission the Credit Union donated $1.62 Million to 33 recipients in addition to the bursaries that were given. • The Entrepreneurial Programme awarded grants to the tune of $1.5 Million.

Minutes of the 9th Annual General Meeting

• The Chairman reiterated that the 2020 performance was quite commendable and thanked the members for remaining loyal to their Credit Union and for their solid support. • He thanked the team members led by the CEO, Ms. Linton, for their invaluable contribution, loyalty and dedication to the growth and sustainability of the organization over the past year. He assured them that the Board remained confident in their ability to continue to advance the strategic agenda to ensure a strong performance going forward. • He noted that the Minister of Finance and the Public Service, Dr. The Honourable Nigel Clarke, announced in his Budget Presentation, that Credit Unions would be coming under the regulation of the Bank of Jamaica soon, and he assured members that FHC would be able to perform creditably under the new regime. In closing the Chairman thanked the Directors for the work they did during the year. He extended special thanks to the Immediate Past Chairman and now Assistant Treasurer, Mr. Balvin Vanriel, 1st Vice Chairman, Mrs. Leodis Douglas, 2nd Vice Chairman, Mr. Kevin Forbes, Treasurer, Mr. Cranston Ewan, Secretary, Mrs. Tamara Francis Riley-Dunn, Assistant Secretary, Mr. Edmund Jones and Directors without portfolio SSP Michael James and Mr. Noel Francis. There being no questions, the Board of Directors’ Report was unanimously adopted on a motion moved by Member, Ms. Charmaine Allen, seconded by Member, Mr. Eric Heslop. The Chairman then invited Ms. Roxann Linton, Chief Executive Officer (CEO) to present the Management Report.

Minutes of the 9th Annual General Meeting

7. MANAGEMENT REPORT Ms. Linton extended a warm welcome to all. The Management Report was taken as read on a motion unanimously moved by Member, Ms. Charmaine Allen, seconded by Member, Ms. Elaine Sewell. She stated how pleased she was to see so many members on the virtual platform. She noted that despite the challenges faced, one of the guiding principles was to stay close to the members, team members and the community to ensure that these stakeholders were protected and kept safe given the challenges of the pandemic. Despite the onslaught of the COVID-19 pandemic which impacted the ways in which the Credit Union operated, various strategies were designed to bring greater value to the members, which yielded a net surplus of $106.2 Million. She outlined that the contraction over the previous year’s surplus was in line with the significant economic disruption resulting from the pandemic, which led to increased unemployment and a decline in business activities. She report that loan disbursements totalled $4.21 Billion for the period. Focus was placed on the strategic priorities which remained the same as those of 2019, especially on the deepening of the relationship with the members, where new product offerings were created, and waivers and moratoria were granted. Due to the restrictions on face to face gatherings, members were encouraged to use alternate channels such as the internet banking platform, AccessPlus Debit Cards, Bill Express Payment Services as well as Electronic Bank Transfers which proved to be extremely convenient. The Credit Union continued to stay engaged and connected with its members through its Webinar series, presenting on varying topics such as health and wellness, cyber security and information on our product and service offerings. She also took the opportunity to share general information about the Family Indemnity Plan and the Family Critical Illness Plan which covers final expenses and unforeseen illnesses, as the pandemic presented an ideal time to engage the members on these offerings.

Minutes of the 9th Annual General Meeting

As financial institutions grappled with increased and complex risks, emphasis was placed on the Credit Union’s risk culture such that the risk management framework had to be bolstered and strengthened on an ongoing basis. The FHC Civil Servant of the Year Awards was staged and the Credit Union continued to be the major sponsor. Member Appreciation Day activities were held in the various branches on International Credit Union Day under the theme, “Inspiring Hope for a Global Community” and a special webinar around “Inspiring Hope” was hosted, which members found to be very useful based on the feedback received. The Christmas Show, which had now become a calendar event was a success and both team members and friends of FHC participated. In light of the impact the pandemic had on young people, the Credit Union continued its corporate social responsibility by focusing on activities that created hope and meaningful opportunities for youth, such as the Summer Employment Programme, and distribution of devices to students enrolled at secondary and tertiary institutions. Data packages were given to students at the University of the West Indies to assist them as they had embarked on remote learning. In February, the Credit Union partnered with Junior Achievement Jamaica to host the Manager for a Day Programme at the Holy Childhood High School where some students from that high school were exposed to various career options. The initiative was beneficial to the students and also to team members who acted as mentors for the day. Care packages were handed out to residents in the Kingston and St. Catherine communities and the support continued with the St. Stephen’s Feeding Programme. Ms. Linton posited that the Credit Union remained committed to its members during the difficult time of the pandemic and commended the team members for the effort made by them in this regard.

Minutes of the 9th Annual General Meeting

Several initiatives, she stated, were implemented to ensure that the team remained safe, focused, engaged and productive while overcoming the challenges to deliver commendable results for all stakeholders. She also noted that FHC was one of the first organizations to have had a Zoom party with all 250 plus team members, which allowed them to launch the Team Member Experience Initiative. The CEO noted that strategies were established to remain connected with team members and in 2020 an initiative was launched called “Thoughtful Thursdays: Conversations with the CEO.” This enabled her, over a six week period, to meet with the entire team member population in smaller groups where they had the opportunity to discuss any concerns. This initiative, she stated, was well received and appreciated by the team. Learning and development interventions were commissioned to sensitize the team on dealing with the pandemic including information technology security, data protection awareness and disaster preparedness among other topics and areas of study. She noted that most of the strategies employed in order to navigate the pandemic had been incorporated in an interim Credit Policy. She informed the membership that the Member Assistance Programme was still available to persons and encouraged members facing difficulties in meeting their loan obligations, to seek dialogue with the Credit Union. In relation to the Risk Management Framework, ways were found to continuously bolster and better manage the risks that were being faced. In light of the imminent gazetting of the Data Protection Act, she stated that work had commenced to ensure that the Credit Union was compliant with those impending regulations, and that significant work had been done in relation to the Business Continuity Plan. Systems were put in place as well as upgrades done to mitigate against data and system breaches and preparation was in train for the soon to be implemented new core banking system. In closing, Ms. Linton expressed that FHC was grateful for 2020, as it was a year where a lot was learnt and that despite the challenges faced, it would be a year that would always be remembered.

Minutes of the 9th Annual General Meeting

She thanked the members, team members, Board of Directors and Volunteers for working tirelessly to ensure that the year was a success. She assured all that the Credit Union was built on resilience and with purposeful planning and execution, the Credit Union would prevail. The floor was then opened for questions. Member, Ms. Charmaine Allen queried how financial aid would be given to persons who lost their jobs due to the pandemic to get them back on their feet, in light of the fact that they would have to present certain required documents, such as a job letter to apply for loans. Ms. Linton stated that accommodations were provided for existing borrowers. She however advised that for existing non-borrowing members requiring capital to start their business, a discussion with the Credit Union would be required to determine the level of assistance needed. Financial management advice would also be provided, to look at the various options available to raise capital. Member, Ms. Carlene Ward queried whether scholarships would be made available in light of the pandemic. Ms. Linton advised that they would be embarking on the scholarship programme as it was one of the staple annual activities of the Credit Union, in addition to the grant programme for entrepreneurs. There being no further questions, the Management Report was unanimously approved on a motion moved by Member, Ms. Charmaine Allen, seconded by Member, Ms. June James. 8. AUDITORS’ REPORT The Chairman invited the representative from KPMG to present an abridged version of the Auditors’ Report. The Auditor, Ms. Rochelle Stephenson, stated that in their opinion the accompanying financial statements gave a true and fair view of the financial position of the Credit Union and the Group as at December 31, 2020. She advised that the Group’s and Credit Union’s financial performance and cash

Minutes of the 9th Annual General Meeting

flows for the year then ended were in accordance with International Financial Reporting Standards (IFRS) and the Co-operative Societies Act. The Chairman thanked Ms. Stephenson for taking the meeting through the Auditors’ opinion. 9. TREASURER’S REPORT The Chairman invited the Treasurer, Mr. Cranston Ewan to present the report for 2020. The Treasurer’s Report which was projected on the screen was taken as read on a motion moved by Member, Ms. Elaine Sewell and seconded by Member, Ms. Angella Brown. For 2020, a surplus of $106.2 Million was realized, compared to $273.44 Million the previous year. With respect to FHC Investments, a loss of $5.23 Million was realized after taxes, compared to $24.07 Million the previous year. The year’s performance resulted in an accumulated surplus of $73.69 Million for the Credit Union. Loan disbursements totalled $4.21 Billion. Increased savings contributed favourably to liquidity during the year. The Past Due Rate moved from 8.11% to 8.79%. Total revenue for the last four years to 2019 showed a consistent increase in overall revenue. However, in 2020 there was a slight dip due to the current and prevailing economic conditions and revenue totalled $1.77 Billion for 2020. Total assets as at December 31, 2020 stood at $15.15 Billion, which represented an increase of 10.91% over the previous year of $13.66 Billion. Total assets of the Group was $13.24 Billion, compared to $13.77 Billion over the previous year and the Group’s net loan increased by $477 Million over the previous year moving from $8.9 Billion to $9.38 Billion. Liquid assets and investments of the Group grew by $875 Million, moving from $3.73 Billion to $4.6 Billion. Members’ deposits on voluntary shares increased by $1.3 Billion moving from $10.57 Billion to $11.95 Billion.

Minutes of the 9th Annual General Meeting

Treasurer Ewan cited statistics from STATIN which indicated that the Jamaican economy contracted by 9.9% in real GDP over the past year. The Jamaican dollar depreciated against the US dollar by 7.6% compared to 3.8% the prior year and traded at an average of $142.65, compared to $132.57 the previous year. Income of $1.54 Billion increased by $109.24 Million or 7.6%, compared to $1.44 Billion the previous year. Non-interest income of $227.4 Million decreased by $134.94 Million or 37.24% compared to $363.34 Million the previous year. Interest expenses increased from $215 Million to $224 Million and operating expenses increased by $21.34 Million, moving from $1.24 Billion to $1.26 Billion. The Past Due rate ended the year at 8.79%. Provisioning for loan losses for the year net of recoveries, increased to $173.98 Million in 2020, an increase of $62.41 Million over 2019 and accumulated surplus before distribution increased to $280.25 Million, up from $206.55 Million, which was an improvement of $73.69 Million over 2019. In conclusion, Treasurer Ewan stated that the Credit Union’s performance in 2020 was commendable despite the global pandemic. The capital and liquidity positions remained adequate and above the benchmark ratios. These improvements, he stated, were a direct result of the commitment to the execution of the strategies. He expressed optimism that the Credit Union would overcome the challenges faced in 2020 and he further informed the membership that the Credit Union continued to prepare for the impending BOJ supervision regulations. He extended thanks to the Board of Directors, Volunteers, Management, Team Members and the Finance and Treasury unit headed by Mr. Emil Williams. He also extended gratitude to the Auditor and loyal members of the Credit Union.

Minutes of the 9th Annual General Meeting

The floor was then opened for questions. Member, Mr. Calvin Thompson queried whether the increase in interest income was due to a larger loan portfolio or higher interest rate on loans to members. The Treasurer stated that it was due to a larger loan portfolio. There being no further questions the Treasurer’s and Auditors’ Report were approved on a motion moved Director, Mr. Balvin Vanriel, seconded by Member, Ms. Charmaine Allen. 10. DISTRIBUTION OF SURPLUS The Treasurer tabled the Distribution of Surplus as presented in the Annual Report which was circulated previously to all members outlining the distribution of the $96.188 Million surplus for 2021 as follows: Dividend on Permanent Shares (5%) Honoraria Donations Tablets in Schools Project (Made through the Foundation) Retained Earnings Reserve

$16,688 Million $2.5 Million $1 Million $1Million $75 Million

This was unanimously approved on a motion moved by Member, Ms. Charmaine Allen, seconded by Member, Ms. Jacqueline Roberts. 11. MAXIMUM LIABILITY In keeping with the rules of the Credit Union, it was proposed by the Treasurer that the Maximum Liability be fixed at 20 times that of its share capital. This was unanimously approved on a motion moved by Member, Ms. Sybil Brown, seconded by Member, Mr. Kevin Forbes.

Minutes of the 9th Annual General Meeting

12. SUPERVISORY COMMITTEE REPORT Ms. Shauna-Kaye Gordon was invited to present the Supervisory Committee Report which was taken as read on a motion moved by Member, Mr. Norman Williams, seconded by Member, Ms. Barbara Warren. She highlighted that the role of the Supervisory Committee was to assist the Board of Directors in the discharge of its responsibilities by providing oversight on aspects of the internal control system through the Internal Audit functions. The Committee, she stated, comprised the following members: Mrs. Camelle Ricketts-Moore, Ms. Jacqueline Roberts, Mr. Luke McIntosh, Ms. Geraldine Wright and herself, Ms. Shauna-Kaye Gordon. She noted that of the seven (7) audits on the Audit Plan, five (5) were completed as at the 31st of December 2020 and two (2) were in progress. She advised that the Committee found that there was compliance with the Group reporting, payment and filing obligations. She also highlighted that the recommendations made by the Internal Audit Department were implemented and that the responses to risks outlined were appropriate. Sensitization sessions were held with the team concerning the issue of Data Protection and training sessions were held to ensure compliance with the AML/CFT Programme. She informed the meeting that there were some operational weaknesses found, but Management was in the process of addressing the findings from these audits. The Special investigation continued to be a major activity for the Internal Audit Department and for 2020; 36 investigations were completed compared to 20 in 2019. Bank reconciliations were reviewed in a timely manner and the items were cleared appropriately.

Minutes of the 9th Annual General Meeting

The Committee was satisfied with the report that efforts were made to collect and regularize outstanding loan balances from connected parties. She expressed gratitude to the Nominating Committee, the members of the Credit Union, the Management team, the Internal Audit Department and the Board of Directors for the confidence reposed in the Supervisory Committee. The floor was then opened for questions. Member, Mr. Calvin Thompson noted that mention was made of some deficiencies which Management was taking steps to correct, however the deficiencies were not identified. Ms. Gordon corrected herself and stated that these were not really areas of deficiencies but areas for improvement and advised that Management was working on those areas. There being no further questions, the Supervisory Committee Report was accepted on a motion moved by Member, Ms. Monique Barrett, seconded by Member, Mrs. Stacian Haughton Marshall. 13. CREDIT COMMITTEE REPORT The report which was presented by Ms. Althea Daley was taken as read on a motion moved by Member, Mr. Lenworth Nelson, seconded by Member, Ms. Teia Swaby. She stated that for the financial year 2020, the Credit Union; 1. 2. 3. 4. 5.

experienced growth in the loan portfolio; faced tough competition from other players; was impacted by the COVID-19 pandemic; was determined to meet the financial needs of its members; and endeavoured to consistently exceed members’ expectations.

Minutes of the 9th Annual General Meeting

Ms. Daley advised that in 2020 loan disbursements amounted to $4.21 Billion compared to $4.75 Billion in 2019. The Loan portfolio grew by 5.6%, moving from $9.25 Billion in 2019 to $9.77 Billion in 2020. The areas of growth included unsecured products such as, the Micro One & Move Taxi loan, the DBJ secured loans and motor vehicle loans. She noted the Past Due Rate which increased from 8.11% as at December 31, 2019 to 8.79% as at December 31, 2020. She urged members to make their monthly instalments on a timely basis in order to enable the Credit Union to meet its obligations and provide further loans. She asked those facing financial challenges to come in and speak with a Team Member. She thanked the First Heritage Team Members, the Board of Directors, and the members for their support during the year. There being no questions, the Report was accepted on a motion moved by Member, Ms. Jennifer McLaughlin, seconded by Member, Mrs. Charlene Johnson Dixon. The Chairman noted that 42 meetings were held throughout the year and thanked Ms. Daley and her team for the hard work. 14. NOMINATING COMMITTEE REPORT Ms. Roxann Linton, CEO and member of the Nominating Committee, was asked to present the Nominating Committee Report in the absence of the Chairperson, Mrs. Leodis Douglas. The report was taken as read on a motion moved by Mr. Cornel Williams, seconded by Ms. Janet Henry. She stated that the Committee was appointed in accordance with the provisions of Article XIV, Rule 59 of the Rules of First Heritage Co-operative Credit Union Limited and comprised Mrs. Leodis Douglas as Chairperson and Board representative, Mr. Richard Picart, Member Representative and herself Ms. Roxann Linton, Staff Representative.

Minutes of the 9th Annual General Meeting

She noted that the Committee met to consider all retiring volunteers from the Board of Directors, and the Supervisory and Credit Committees. The vacant positions were advertised, candidates were assessed and the following recommendations made: Board of Directors Retiring Directors Mr. O’Neil W. Grant Mr. Kevin Forbes Retired SSP Michael James

Mr. Edmund Jones Mrs. Tamara Francis Riley-Dunn

The Committee nominated all the above named Directors who indicated their willingness, in writing to serve for a term of 2 years. Supervisory Committee Retiring Mrs. Camelle Ricketts-Moore Mr. Luke McIntosh Ms. Jacqueline Roberts

Ms. Shauna-Kaye Gordon Ms. Geraldine Wright

It was noted that Mrs. Camelle Ricketts-Moore and Mr. Luke McIntosh having served the maximum term of 5 consecutive years were not eligible for re-election. Ms. Linton thanked them both for their stellar service to the Credit Union.

The Committee nominated the following persons who all indicated their willingness, in writing to serve for a term of 1 year.

Minutes of the 9th Annual General Meeting

Ms. Shauna-Kaye Gordon Ms. Jacqueline Roberts Mrs. Sharon Smickle

Ms. Geraldine Wright Ms. Tanisha Thompson

Credit Committee Retiring Mr. Richard Ranger

Ms. Clivia Green

The Committee nominated the abovenamed persons who indicated their willingness in writing, to serve for a term of 2 years. Ms. Linton, on behalf of the Nominating Committee, thanked all the volunteers who expressed their willingness to serve and invited the representative from the Department of Co-operatives and Friendly Societies to conduct the election of officers. 15. ELECTION OF OFFICERS Mrs. Sheryl Brown extended a warm welcome to all on behalf of the Registrar and the staff of the Department of Co-operatives and Friendly Societies. She congratulated the Credit Union for passing the resolution to amend the rules to convene the 9th Annual General Meeting virtually. She then laid out the ground rules for the election. Board of Directors Mrs. Brown asked three (3) times if there were any other nominations from the floor. Hearing none she then declared the following persons duly elected to serve on the Board of Directors for a term of 2 years.

Minutes of the 9th Annual General Meeting

Mr. O’Neil W. Grant Mrs. Tamara Francis Riley-Dunn Retired SSP Michael James

Mr. Kevin Forbes Mr. Edmund Jones

She then asked for a mover and a seconder to duly adopt the election of these persons. This was unanimously accepted on a motion moved by Member, Mr. Stephen Clarke, seconded by Member, Ms. Elaine Sewell. Supervisory Committee Mrs. Brown asked three (3) times for any other nominations from the floor. Hearing none she then declared the following persons as duly elected to serve on the Supervisory Committee for a term of 1 year. Ms. Shauna-Kaye Gordon Ms. Geraldine Wright Mrs. Sharon Smickle

Ms. Jacqueline Roberts Ms. Tanisha Thompson

The election was unanimously adopted on a motion moved by Member, Ms. Beverley Ferril, seconded by Member, Mr. Luke McIntosh. Credit Committee Mrs. Brown asked three (3) times for any other nominations from the floor. Hearing none she declared the following persons duly elected to serve on the Credit Committee for a term of 2 years. Mr. Richard Ranger

Ms. Clivia Green

The election was unanimously adopted on a motion moved by Member, Ms. Elaine Sewell, seconded by Director, Mrs. Leodis Douglas. Mrs. Brown asked for a mover and seconder to give the Directors permission to elect the Delegates and Alternate Delegates. This was accepted on a motion moved by Member, Mr. Lenworth Nelson, seconded by Member, Ms. Paulette McLean.

Minutes of the 9th Annual General Meeting

She instructed the Board of Directors and the Committees to meet within ten (10) days of the meeting in accordance with the Rules and forward the names of the Executive members of the Board, their positions along with their TRN to the Department of Co-operatives and Friendly Societies and any other entity that the Credit Union was associated with. She stated that three (3) original copies of the Resolution passed earlier in the meeting should be submitted to the Department of Co-operatives and Friendly Societies for approval by the Registrar. The Chairman thanked Mrs. Brown for efficiently conducting the elections. 16. ANY OTHER BUSINESS The General Manager of FHC Investments Limited (FHCIL), Mrs. Karlene Mullings, was invited to make a presentation. She addressed the members on the steps and progress FHCIL had been making towards becoming a one stop financial institution, with all the financial products and services regardless of a member’s stage in life. She informed the members of all the products and services that they could invest in such as the Pension Fund, Stock Market, Fixed Deposits etcetera, and added that all these products were offered at FHCIL. Member, Mr. Roberto Kelly stated that he had been alienated by the Credit Union and questioned why. He stated that he had difficulty registering for the meeting and he raised his hands over 300 times using the ‘raised hand’ button and was not acknowledged. The Chairman apologized for the difficulty he had registering and for any bad experience that may have arisen that would have caused him to feel the level of dissatisfaction that he was now feeling. Member, A.N. Harris Esq. congratulated the Credit Union on the conduct of the meeting. He however noted that he had a challenge in the beginning and wanted to make a correction, which he did. The correction was duly noted in the Minutes under the proper heading. He further stated that the nominees seeking election/re-election should have put in writing their willingness to serve. The Chairman assured him that this was done and that it may not have been properly captured in how it was reported. Member, A.N. Harris Esq. reiterated his call for a parking near to the venue, whenever they meet face to face. The Chairman stated that his perennial concern had been noted and they would renew their request to the proprietor so that members in his age group could be provided with parking.

Minutes of the 9th Annual General Meeting

Member, Mr. Calvin Thompson congratulated the Management for a well-organized and duly executed meeting though he stated that it could be more enjoyable if it was interspersed with a little entertainment. The Chairman stated that he was in agreement with him and assured him that at the next meeting there would be at least one item to liven up the mood of the meeting. At this juncture the drawing of the prize took place and it was won by Member, Ms. Stephanie Radway. Thereafter, Secretary, Mrs. Tamara Francis Riley-Dunn was invited to move the vote of thanks. She extended thanks to all those who assisted in making the AGM a resounding success. She thanked the various Committees that prepared reports and the persons who prepared the beautiful Annual Reports. She expressed appreciation to the Management and Technical team of the Jamaica Conference Centre for providing the venue and support needed. She extended heartfelt gratitude to the Moderator, the Marketing team, Managers and team members of FHC, who worked tirelessly in planning the execution of the first virtual Annual General Meeting. She thanked Krystal Clear Productions for facilitating the meeting via Zoom and carrying out the polls; the sanitization team for ensuring that all attendees were safe and the loyal members who participated and voted, as without them the meeting would not have happened. The Chairman acknowledged that it was a well-executed meeting. He noted that members heard the plans and the results of the Credit Union and it was the intention of the team, led by Ms. Roxann Linton and the Board of Directors led by him to continue to serve them. 17. TERMINATION The Chairman offered the closing prayer and thereafter terminated the meeting at 5:45 p.m.

__________________________ Tamara Francis Riley-Dunn Secretary, Board of Directors

Corporate Governance Statement

Effective and operational Corporate Governance is critical to the long-term success of First Heritage Cooperative Credit Union Limited (FHC). As a financial co-operative, FHC’s members are its shareholders and form a key component of the organization’s corporate governance framework. The membership’s role in governance is to elect the Board of Directors and through their oversight obtains assurance that the necessary governance structure is in place. The Board, the Committees and all levels of Management are committed and dedicated to maintaining and enhancing a strong Corporate Governance framework that reinforces the ability of the Credit Union to create and deliver value to all stakeholders, through the pursuit of the Mission and Vision Statements. The Corporate Governance Committee is committed to ensuring that the laws and regulations governing the industry (those enacted and to be enacted), the Rules of FHC and the emerging best practices are engaged and implemented. Along with the Nominating Committee, it is charged with defining the criteria for service within the Credit Union, ensuring that succession planning is engaged, and finding the best and most qualified members to fill the vacancies, which may arise on the Board and other Sub-Committees, in a judicious and impartial manner. The Board of Directors of FHC is independent, impartial and is charged with the leadership and general oversight of the Credit Union. It is ultimately responsible for the safety and soundness of FHC and currently comprises nine (9) non-executive members, each having varying levels of skills and expertise, ranging from Financial Management, Accounting, Information Technology to Legal. The Board plays a fundamental role in the review and approval of Policies, the charting of strategic initiatives, and the overall governance of the Credit Union, with a view to developing and maintaining the high standards which our members demand and have become accustomed to. The Management team is responsible for the day to day management of the Credit Union and also possesses a wide range of skillsets. The Management team takes pride in manning and caring for the team and members of FHC and with this in mind, the mantra of “Member at the Centre” is and continues to be a focal point when reviewing the operations and overall strategic areas of focus.

Corporate Governance Statement

The independent non-executive members of the Supervisory and Credit Committees continue to staunchly and unwaveringly engage their oversight functions and are all strategically placed to provide the supervision necessary to protect the Credit Union, its reputation, and asset base. The leadership, from the Board to the Committees, to Management is committed to and accountable for the governance of FHC and the reports outlined in this Annual Report, all provide an insight into the operations for 2021.

Profile of Board Of Directors

Mr. Grant has been the President of the Jamaica Civil Service Association since June 2011. He has held several positions in various Ministries, and currently sits on the Board of the National Housing Trust. He is a trained Accountant and Financial Analyst and currently holds an Executive MBA from the Mona School of Business. He is the Chairman of the Board of Directors as well as a Director on the Board of the Jamaica Co-operative Credit Union League Limited and the Consumer Affairs and Fair Trading Commission.

Profile of Board Of Directors

Mrs. Douglas is currently the Principal Lecturer with responsibility as the Head of Department for the Language, General Education and Professional Studies faculty at GC Foster College of Physical Education and Sport. Mrs. Douglas is the holder of a Master’s in Business Administration from Florida International University, a B.Sc. in Human Resources Management, graduating summa cum laude and a Diploma in Secondary Education with Honours. Mrs. Douglas presently serves as the 1st Vice Chairman on the Board of Directors and is the Chairman of FHC Foundation as well as the Retirement Scheme’s Board of Trustees.

Mr. Forbes is currently employed to Look Beyond Limited as a Financial Controller. He previously served as Financial Manager at Cable & Wireless Limited, Financial Controller at Allied Insurance Brokers Limited, and has worked in various management capacities within the Grace Kennedy Company Limited as well as Ernst & Young Caribbean. He holds a Masters of Business Administration in Finance from the Manchester Business School, United Kingdom, is a Fellow of the Association of Chartered Certified Accountants as well as a member of the Institute of Chartered Accountants of Jamaica. He is the 2nd Vice Chairman of the Board of Directors.

Profile of Board Of Directors

Mr. Ewan is currently the CEO of 138 Student Living Jamaica Limited. He is a certified accountant, a Fellow of the Association of Chartered Certified Accountants (ACCA) and holds a Master’s Degree with a concentration in Finance from the Manchester Business School (UK). Mr. Ewan has vast experience in several industries, spanning Accounting, Shipping, Education, Energy Efficiency, and the Distributive Trade. His expertise includes accounting, finance, management consulting, human resources management, facilities management and leadership. He is presently the Treasurer on the Board of Directors, Director of FHC Investments Limited and the Chairman of the Finance and Operations Committee.

Mr. Vanriel is currently a Partner with the auditing firm BDO Chartered Accountants. He is a qualified Accountant, a Fellow with the Institute of Chartered Accountants of Jamaica and a member of The Association of Chartered Certified Accountants (ACCA). Mr. Vanriel is also a Registered Public Accountant. He serves as an Associate Minister in his denomination. He is the Immediate Past Chair and Assistant Treasurer on the Board of Directors and the Chairman of FHC Investments Limited.

Profile of Board Of Directors

Mrs. Francis Riley-Dunn is a legal practitioner in Jamaica, having been called to the Bar in 2000. She specializes in commercial law (with an emphasis on debt collection), conveyancing and family law. She is an honours graduate of the University of the West Indies and also of the Norman Manley Law School, where she received her Certificate of Legal Education. She is the Secretary on the Board of Directors.

Mr. Jones is a retired Civil Servant with his last post being Technical Support Manager at the Ministry of Finance and the Public Service. He currently does contractual work in both the Public and Private Sectors managing projects, teaching and consulting. His volunteer service includes Directorships at Quality Networks Co-operative and the Jamaica Paralympic Association. He is also a Council Member of the Aquatics Sports Association of Jamaica. He is the Assistant Secretary on the Board of Directors and is the Chairman of the Merger and IT Steering Committees.

Profile of Board Of Directors

Mr. James is a Retired Senior Superintendent of Police, a former Executive Member of the Police Officers’ Association and Divisional Commander of St. Thomas. He currently serves as Chairman of the Paul Bogle High School Board of Management. He has received numerous awards including the Medal of Honour for Meritorious Service, the Jamaica Constabulary Force Distinguished Service Award for the Development of Police Youth Clubs in Jamaica, as well as being named the LASCO Police Officer of the Year 2000. He is a Past President of the Kiwanis Club of St. Thomas.

Mr. Francis, a Commissioned Land Surveyor and a Class 1 Hydrographer, is an Associate of the Royal Institution of Chartered Surveyors. His work experience includes the management of the Survey Department as Deputy Director of Surveys, serving as a consultant in Dredging Engineering, Consultant to the Commonwealth Secretariat and the United Nations and serving as a Lecturer at the University of Technology. Educated at the University of the West Indies, University College London, University of Toronto, Texas A&M University and Nova Southeastern University. Mr. Francis’ qualifications include a Bachelor’s of Sciences Degree (BSc.) and a Master of Arts in Business Administration (MBA). Mr. Francis currently serves on the Board of the Jamaica Copyright Agency as Treasurer and sits on the Past Due Committee of FHC as well as the Board of Directors. Mr. Francis has been honored by the Jamaican Government with an Order of Distinction.

Board Of Directors’ Report

First Heritage Co-operative Credit Union Limited (FHC) has once again embodied the fabric of resilience as the navigation of the COVID-19 pandemic continued globally. Undoubtedly, the Credit Union had its fair share of challenges given the general economic climate that prevailed world-wide. However with a strong team of the Board of Directors, Management, Employees and Volunteers, that cultivated winning strategies and employed dedicated focus, along with the support of our loyal members, we were able to realise another successful financial year. The Credit Union again closed the financial year with a surplus and a healthy pool of loan disbursements indicative of our continued commitment to helping our members realise their goals through our financial solutions. We are indeed grateful for our accomplishments, and while we have had to exercise great prudence in our daily operations, with a critical focus on ensuring the sustainability of the Credit Union, we believe FHC, led by its leadership team, found the point of equilibrium that enabled us to provide the member centric support that our members have come to know and expect. The Member Assistance Program (MAP), remained in effect to support our members whose finances were negatively impacted by the enormous economic disruption caused by the pandemic. Critical in our daily operations too, was our focus on the health, safety and well-being of our members and team members. Our communication with the Management Team increased as we provided them with our unwavering support in developing and on-boarding the best solutions to meet our members’ needs, particularly during this challenging time. I extend my commendations to the team on their relentless efforts in keeping Members at the Centre and their sustainment of a spirit of resilience throughout the financial year. FINANCIAL PERFORMANCE At the close of financial year 2021 we ended with a positive performance. During the year we generated a Net Surplus of $234.35 Million against a surplus of $106.2 Million for 2020, while the Credit Union’s asset base increased to $16.66 Billion, against $15.15 Billion in 2020. The impact of the pandemic continued to have a demonstrated effect on members’ borrowing patterns which affected our performance. The Management team continued however, to carry out our tactical approaches to drive the growth of our deposit, loan and asset portfolios.

Board Of Directors’ Report

The Credit Union maintained a robust risk and compliance architecture throughout the year. We continued preparations for the Bank of Jamaica (BOJ) to take up direct supervision of Credit Unions, and as such continued to take steps to meet all the monitoring standards as set out by the Jamaica Co-operative Credit Union League (JCCUL). STRATEGIC VISION The Board of Directors, Committees and Executives continue efforts to drive our 2040 Vision through the execution of our 2021-2023 Strategy Map. It is our intention, to use technological interventions as one of the primary drivers to secure the future of our business. We recognize that the financial landscape is indeed quite dynamic, and calls for us to remain strategically positioned to sustain our loyal members and to attract news members, with different needs, to the movement. As always, we will ensure that our members remain at the centre of all that we do and every decision we make. OUR SUBSIDIARY FHC Investments Limited (FHCIL) The year 2021 brought hope for global economic growth, primarily due to the development and deployment of the COVID-19 vaccines. As economic activity began to rebound from the pandemic, the concern of rapidly rising inflation surfaced as a major worry for markets, globally. By the end of the year, inflation, fueled mainly by high energy prices and supply chain disruptions, surged to levels that had not been seen in decades. Amidst the volatility in the financial markets, FHCIL reported a net profit of $3.6 Million for the financial year ending December 31, 2021. This compares favourably against a net loss of $5.2 Million reported for the similar period in 2020. The movement in profitability was driven mainly by a 77% increase in Net Interest and Other Income, when compared with the prior year. Operating expenses increased by 43% year over year as the company incurred expenses related to its application for a Member Dealer Licence from the Jamaica Stock Exchange.

Board Of Directors’ Report

The funds under management declined by $184 Million year over year to $4.68 Billion. No significant deterioration in the credit quality of the company’s assets occurred in the financial year. The FHC Retirement Scheme experienced growth in all respects as 83 new members were enrolled in the scheme. Members’ contributions totaled $129.7 Million which was a 12% increase over the prior year, while net assets available for benefit grew by 11% to end the year at $1.49 Billion. FHCIL commenced the process of securing a Member Dealer License from the Jamaica Stock Exchange in April 2021 and received conditional approval in July 2021. Activities related to the commencement of operations for this new service offering continued throughout the year, as the team worked to meet the requirements of the Exchange. The launch of this service will enable our members and clients to take advantage of a wider suite of investment assets to diversify their portfolios and to benefit from capital gains and dividends. FHC FOUNDATION The FHC Foundation was established in 2013. Since then, we have consistently lived our mission guided by our three pillars Youth, Education and Sport, to promote the development of the Jamaican youth, in particular vulnerable children and young people in the primary, secondary and tertiary schools. This has been fueled by our commitment to assisting them towards becoming nation builders. For the year 2021, we donated a total of $1.75 Million to 37 recipients towards our annual Scholarships, Bursaries and Grants, namely our Primary Exit Profile (PEP), Oswald Thorbourne and Renald Mason Scholarships. The award of grants for our Entrepreneurial Awards has been deferred to 2022. It is intended that upon conclusion of our evaluations, grants amounting to a total value of $1.5 Million will be disbursed. Further to this, the FHC Foundation & FHC Credit Union together donated One Hundred (100) tablets to the National Education Trust’s ‘One laptop/tablet per Child initiative’ at a value of $1.5 Million. Forty (40) of these devices were allocated to those with special needs and sixty (60) devices to primary and secondary students.

Board Of Directors’ Report

We congratulate all our beneficiaries, members and YOUTH Savers, and encourage them to continue to work hard. One Tablet / Laptop Per Child Drive FHC Foundation and FHC Credit Union partnered with the Ministry of Education, Youth and Information and by extension the National Education Trust for the One Tablet/Laptop Per Child Drive across Jamaica. Through this meaningful initiative we were able to impact the lives of 100 students including those with special needs. RECOGNITION Despite the continued impact of the COVID-19 pandemic, the Credit Union team performed commendably, and was successful in retaining the member focus which is the very essence on which the FHC is founded. The Board of Directors expresses sincere gratitude to all members of FHC and clients of FHCIL for their loyalty, dedication and continuous support over the years and to the Team Members for their unrelenting focus, strident efforts and commitment to ensuring the Credit Union’s success; for this we say, thank you. OUTLOOK The year 2022, it is anticipated, will see an upturn in the economy. It is expected that locally, with increased access to and uptake of the COVID-19 vaccine the Government of Jamaica will be poised to incrementally ease the current restrictions. With this is mind, businesses, including the Credit Union, may begin to return to a degree of normalcy in tandem with the easing of the restrictions, and will therefore be able to engage in higher volumes of business as we seek to serve more of our members. Further, we commit to navigating the pandemic throughout 2022, with the same level of conscientiousness exercised in previous years.

Board Of Directors’ Report

We will continue to drive our Member at the Centre focus and reflect this in our product and service offerings. It is our intention to maintain an even closer relationship with our members in an effort to consistently exchange thoughts and receive feedback, so as to facilitate the continuous enhancement of our services, for the benefit and advancement of our members’ lives. The Board of Directors is confident that the Management of the Credit Union will remain focused on our strategic vision and ensure that we continue to be solid, with strong performance to secure our future.

………………………………………………….. O’Neil W. Grant Chairman, Board of Directors

Board Of Directors’ Report

Attendance at Board of Directors meetings Names

Position

Scheduled

O’Neil Grant

Chairman

Leodis Douglas

1st Vice Chairman

Kevin Forbes 2nd Vice Chairman Cranston Ewan Treasurer

Tamara Francis Riley-Dunn

Secretary

Edmund Jones

Assistant Secretary

Balvin Vanriel

Assistant Treasurer

Noel Francis

Director

SSP Michael James

Director

Attended

Excused

Executive Team

Management Discussion & Analysis

The world, and no less Jamaica, continued to navigate the COVID-19 pandemic. We saw governments and societies putting forward the best collective efforts to preserve what is most important, that is, the lives and livelihood of citizens, their health, both physical and mental, financial stability and the overall wellbeing of people across the world. Within this context of great uncertainty, First Heritage Co-operative Credit Union Limited (FHC), maintained its unwavering commitment to understanding, serving and creating value for its members. While the impact of the pandemic remained evident, through the continued execution of various strategies to remain close to our Members and offer the support and assistance they needed to ensure their goals were met and exceeded, the FHC was able to maintain a strong and positive relationship across our Member base. Through access to our alternate channels, we were able to satisfactorily serve our Members in a timely and consistent manner akin to our service standards prior to COVID-19 to which our Members are accustomed. The continuation of the pandemic throughout 2021 reasserted the FHC’s operational resilience and effective risk management processes, as well as our bandwidth to confidently and conscientiously manage our operations during periods of instability on account of the Credit Union’s prudent financial practices. It is clear, however, that the period of the pandemic has accelerated and reshaped our world and our future in significant ways, transforming the way we live, work, shop, and connect with each other. As a result, businesses are having to contemplate and make changes to how they operate in order to stay relevant. For FHC, we will continue to refine our strategies and approaches to optimally serve our members today, while planning for an enhanced tomorrow. As we reflect on this financial year and prepare for the future we consider how we can power up and raise the B.A.R. This B.A.R. is how each day we actively: • Be aware of our members’ dynamic needs, lifestyle and desire to be and feel fulfilled; • Maintain an Attitude for success by being flexible and embracing openness to change as this is indeed, the only constant; and • Reimagine our Credit Union, by actively developing our capacity to consider what this institution looks like years from today, and laying the ground work to ensure a successful trajectory towards that future.

Management Discussion & Analysis

FINANCIAL PERFORMANCE FHC’s overall performance in 2021 demonstrated a positive progression, reflecting solid results and highlighting our strong ability to manage through a complex and uncertain operating environment, while remaining focused on pursuing strategic change and investing for the future. During the year, we generated a Net Surplus of $234.35 Million and; provided financial support to our members through loan facilities with disbursements totaling $4.17 Billion for the period.

OUR STRATEGIC PRIORITIES During the second year of the pandemic, the Credit Union demonstrated forward momentum in the execution of its strategic priorities. While we work to continue to grow the success of our business and advance the services of FHC to better serve our members, we continuously evaluate our strategic priorities to ensure that these align with our 2040 Vision and by virtue of this, the needs and concerns of our stakeholders. Our objective, is to ensure that our strategies both anticipate and respond to our business environment, allowing us to satisfy our vision of creating a medium for financial freedom and development amongst our members. In fulfilling this objective, we maintain at the forefront of our minds, our mantra of ‘Member at the Centre’ and live the guiding principle of ‘striving for a yes’ for the benefit of those we serve.

OUR VALUED MEMBERS Deepening Member Relationships We are exceedingly proud of the many creative ways in which our team prioritized our member relationships during the challenging times of the pandemic. The intensifying of the COVID-19 virus spread at intervals, resulted in a series of ‘no movement’ days and curfew restrictions being implemented by the Government. Although the team was impacted by cases of contraction of the virus and reduced operations, the team remained resilient, innovative and strategic in navigating the obstacles faced, so as to continue to serve our Members.

Management Discussion & Analysis

Our Member at the Centre ethos unites us in our commitment to deliver an exceptional member experience. Our focus continues to be on their needs and how we can help to identify their challenges and hurdles as we seek to build a growing trust and confidence in our business relationships. Building on last years’ introduction of the accommodating Member Assistance Programme, this year we continued to provide understanding and support to our membership’s unique circumstances. We listened to their needs and it became a never-ending flow of useful information. We implemented a ‘surprise and delight’ tactic as we endeavored to make doing business with the Credit Union more convenient, in order to build long term partnerships and help our members manage through uncertainty and enable them to thrive. Regular courtesy calls were part of our daily agenda with concerns that may not always be business related, but about life’s moments at hand and at the same time making relevant offers or suggestions to match those needs. For members who were disinclined to venture out to do business, our team would visit on mutual agreement. We recognize that whilst we are on the cusp of automation and digital transformation, designed to make some things easier, there are situations where a human touch cannot be replicated. With this in mind, we continue to relentlessly work with team members throughout the branches, with the goal of getting everyone to innovate on the various means through which to better serve, by providing optimal customer service, encouraging financial prudence amongst our member base, and capitalizing on our unique relationship building strategies. Coupled with this we embarked upon enhancing our member’s experience by establishing a permanent office in Morant Bay, St. Thomas. After six years of operation, the Credit Union broke ground on December 14, 2021 to construct our new Morant Bay office which is expected to be completed in late 2022. Member service is a function of how well we are able to consistently serve by constantly meeting and exceeding their needs. Therefore, we will continue to refresh, monitor and maintain the targeted approach currently in place, which is designed to ensure excellent service delivery.

Management Discussion & Analysis

Member Engagement Activities We maintained a keen focus on remaining connected to our Members during the period, as we sought to provide the support they needed to progress throughout the year despite the challenges being faced. Though face to face interaction remained limited, we continued to engage our valued members through social media, email marketing and webinars. There were certain staple activities which are essential to our relationship with our Members which we adapted and hosted. These include: Civil Service Week Civil Servants of The Year Awards – We were once again pleased to sponsor the 2021 Civil Servants of The Year Awards. The winners from the three categories awarded were: NAME Ms. Andrine Davidson Mr. Ronald Frue Mr. Clayton McCalla

CATEGORY Management Middle Management Technical Support

DEPARTMENT Jamaica Information Service Administrator General’s Department Ministry of Health

FHC Civil Servants of the Year Awards The FHC Civil Servants of the Year 2021 receiving their awards, citations and monetary prize on being named Civil Servants of the Year. Receiving for the Management Category-Andrine Davidson; Middle Management Category Ronald Frue and Technical Category-Clayton McCalla. Sharing in the moment are (l-r) FHC Board Chairman-O’Neil W. Grant, The Honourable Marsha Smith, MP and CEO of FHC, Roxann Linton. Credit Union Week

Management Discussion & Analysis

Member Appreciation Day activities were held in all branches on International Credit Union Day on October 21, 2021 under the theme “Building Financial Health for a Brighter Tomorrow”. FHC collaborated with the Development Bank of Jamaica and other entities in hosting a Webinar under the main theme with a focus on “Helping Entrepreneurs Advance”. Notwithstanding the pandemic, our members came out to participate in the celebrations and connect with their Credit Union. FHC Christmas Show – The FHC Christmas Show was once again held virtually on Sunday December 19, 2021. This was a success and saw both team members and friends of FHC performing. Products, Services and Promotions We continued to provide our members with the assurance and assistance we knew they needed to continue to navigate the pandemic and continued to maintain strong connections with our members, even while we observed the physical distancing guidelines. It was important to us, that our members felt our connection with them and knew that our support remained unwavering. We therefore continued our monthly Webinars under the theme “Feeling The Joy” as a part of our Member Engagement activities. The information provided collectively offered reinforcement of the Credit Union’s support, peace of mind, coping strategies and tips to remain healthy mentally and physically despite the pandemic and also offered financial education and insights. For their sustained safety, the use of our alternate channels to continue to do business seamlessly, remained a modality that we encouraged our Members to utilize. These channels included our iTransact internet banking platform, AccessPlus Debit Cards, Bill Express Payment Services, as well as Electronic Bank Transfers. Through these channels, our members continued to have twenty-four hour access to conduct business and process their transactions safely and conveniently. Throughout the year, given the prevailing challenges occasioned by the pandemic we continued to respond to our Members’ needs with fit for purpose products and more tailored support. These included:

Management Discussion & Analysis

1. Summer Loan Promotion – This promotion enabled our Members the opportunity to access the financial support required to fulfill their goals through our loan offerings. 2. ‘This Christmas’ Loan Sale – Promotion of our loan products continued during the Christmas holidays with special features added that would make our offering even more beneficial to our members in realizing their dreams over the period. 3. The Family Indemnity Plan & The Family Critical Illness Insurance Plan – We encouraged our members to participate in these offerings through various promotional strategies; with a view to giving them peace of mind to cover final expenses for themselves or their loved ones. 4. The Member Assistance COVID-19 Relief Programme – Numerous offerings were extended to our members to help to buffer the many challenges that were being experienced. These included waivers, moratoria and other options.

OUR PEOPLE AND CULTURE Our Resilience Our team remained resilient and focused with a “Winning” spirit during the year, despite the continuation of the Covid-19 pandemic. We persevered through the challenges and obstacles and sought out opportunities to be more innovative and productive to achieve yet another successful year. As we repositioned ourselves to adjust, and navigate through the pandemic, our customary “Blast Off” Team Meeting at the beginning of the year, was held in a virtual space, for the very first time. The event was held under the theme “A Fresh Start … Creating a Winning 2021”. In addition to motivational presentations, the team was kept engaged with short videos on how each department would WIN in 2021 as well as the anticipated Award Ceremony for outstanding performance and entertainment.

Management Discussion & Analysis

Our Team Engagement To keep our team members engaged, energized and motivated, while maintaining their safety, we hosted the following major events during the year: Quarterly Themed Fridays We continued our Themed Fridays during the year and hosted quarterly themed days to commemorate occasions including, Black History month, Jamaica’s Independence, Breast Cancer Awareness Month, end of Summer and the Christmas season. Recognition Day During the month of September, we designated a day as “Team Member Recognition Day” to exemplify the second Tenet of our Team Member Experience -- “Team members will be RECOGNIZED for their performance”. This initiative was held to recognize and thank team members for their resilience and dedication during a particularly difficult August with the on-going pandemic, several ‘no movement’ days and Tropical Storm Grace. In spite of these challenges, our team gave their full support to the organization. Kindness Week In keeping with our Kindness Journey at FHC, and in recognition of World Kindness Day, we dedicated the week of November 8-12 as FHC Kindness Week, with daily activities to inspire acts of kindness among team members. The week culminated with the handover of a cash donation to the Jamaica Legion Poppy Appeal towards food and medical care for the military veterans. Jingle Bell Rock For the 2nd consecutive year, we had to forego our customary Christmas Party due to the Covid-19 restrictions. Instead, we hosted a Zoom event “Jingle Bell Rock” where team members were treated to an evening of food, fun, music, games, and excitement.

Management Discussion & Analysis

Our Learning and Development Several training interventions were undertaken during the year, in a virtual format, enabling the continued development of our team members, to enhance their performance and broaden their scope of knowledge in critical areas of our operations. Core Banking System Training As we seek to improve our service delivery to our members, we commenced the journey of transition to a new banking platform during the year, by providing extensive training to our Team Members in the use of the new system. Sales Training Sales training was hosted for the members of the Retail Sales Team to improve the capacity of our team to compete in the market space, while extending value-added service to our members. Institutional Requirements for Compliance with the Data Protection Act Representatives from our People Leaders Group participated in this Webinar, to gain insights of the regulations surrounding the Data Protection Act, and how to mitigate against the risks associated with it. Leadership Development Programme Recognizing the need to improve our bench strength in the area of branch leadership, a new branch management Leadership Development Training Programme was launched during the month of July. The curriculum focuses on both technical and non-technical aspects of branch leadership, as we seek to develop the leadership capabilities of the team members. COVID-19 We continued to encourage team members to adhere to public health and workplace measures to keep our

Management Discussion & Analysis

workspace free from the virus. One of our initiatives was a Covid-19 Vaccination Sensitization Session held for our team members, where we invited a senior representative from the Ministry of Health to address the facts and myths about the vaccine. To further support team members becoming fully vaccinated to keep our office environment safe, we also collaborated with the Jamaica Cooperative Credit Union League Limited (JCCUL) in their Vaccination Blitz held during the month of September. During the year we remained focused on ensuring team members felt supported, respected and engaged while creating opportunities to learn and grow. As an organization, we are proud of the dedication, commitment and contribution from our team members who enabled us to realize our success during 2021, and we look forward to greater accomplishments as a Credit Union Family in the coming year. Departure From Life The year was however not absent of somber moments. As a family, we bid farewell to two of our team members Mrs. Dawn Edwards and Mr. Michael Williams who took their final rest. They will forever be missed and remain in our hearts. We pray for their eternal peace. OUR STRONG RISK CULTURE Loan Risk and Credit Administration Given the serious impact on the local economy arising from the pandemic conditions, the Credit Union continued its efforts to effectively manage the challenge by ensuring the application of credit adjudication practices, adapted for the environment. The Member Assistance Programme which was introduced in 2020 continued into 2021 and has assisted several members who were affected by the impact of the pandemic. This was done by a special moratorium and refinancing of loans to reflect a more suitable repayment arrangement. In addition, strategies were employed to ensure that service quality standards to our members were maintained.

Management Discussion & Analysis

We assiduously incorporated strategies towards sustained improvement in portfolio quality. The loan portfolio increased from $9.77 Billion to $10.43 Billion, an increase of 6.8% during the year. The growth was mainly influenced by increases in the Motor Vehicle and unsecured loan portfolios. The past due rate was 7.97% at the end of the year. Enterprise Risk Management Risk management is an integral part of our business and prudent management practice that is necessary for us to achieve our Vision and Mission. Therefore we remain committed to and are guided by the principles of sound business practices which allow us to create value for our members and ensure the growth and sustainability of the Credit Union. We continue to place strict objectives on our Enterprise Risk Management Framework to facilitate the mitigation or management of risk. The key objectives of our Enterprise Risk Management Framework are: 1. Oversight: To identify, manage and monitor all critical risks under a holistic approach consistent with Board approved risk appetite. 2. Accountability: To assign ownership of risk to Management who shall be responsible for identifying, evaluating, mitigating and reporting risk exposures. 3. Assurance: To provide reasonable assurance to the Board, Management, Members and Stakeholders that risk is being appropriately managed within defined levels so as to bring value to the Credit Union. We continue to manage the twelve (12) identified principal risks inherent to the activities and business processes of FHC namely: Strategic, Credit, Compliance, Operational and Financial. Accountability for managing each risk has been assigned to the relevant member of the executive management team. Our overall approach to managing risk is to balance business opportunities with sound risk discipline in order to achieve the mandate of our Vision and Mission.

Management Discussion & Analysis

Anti-Money Laundering and Counter-Financing of Terrorism (AML/CFT) We believe that it is crucial for our team to have a thorough understanding of anti-money laundering and counter financing of terrorism requirements. Our culture supports this belief through ongoing training and development, to ensure customer due diligence and reporting of transactions that are suspected to involve illicit assets or terrorist activities. In 2021, we continued a number of activities to enhance our AML/CFT/CPF capacity and to meet regulatory standards. These included: • Implementation of new systems and processes to drive our AML/CFT/CPF risks; and • Reviewed existing AML/CFT/CPF controls. Emergency Management and Business Continuity Plan We continued to undertake a number of activities to enhance our disaster recovery efforts. These included the development of processes to ensure the continuity of our business operations in the event of any significant interruptions to buildings, facilities, systems or employees with the ultimate objective of efficiently restoring the business operations to pre-disaster levels. The key deliverables of the project included the documentation of the following procedures: 1. Emergency Response Plan; 2. Business Continuity Plan; and 3. Information Technology Disaster Recovery Plan. Foreign Account Tax Compliance Act (FATCA) During 2021, the subsidiary, FHC Investments Limited (FHCIL) continued to be compliant with its reporting obligations under FATCA.

Management Discussion & Analysis

FOCUS ON OPERATIONAL EFFICIENCY The team pushed forward in delivering exceptional service to the borrowing membership, by executing on average 90% turn-around time in loan execution. The Team of Underwriters managed to maintain an equilibrium, by delighting our membership while still managing to safeguard the Credit Union’s interest. Work continued regarding the further development of our Business Continuity Plan to ensure that our business recovery process was effective as evidenced through our navigation of the pandemic. Substantial work also continued in the preparation of the organization to implement the new core banking system, Smart Universa, scheduled for on-boarding in quarter one, 2022. OUTLOOK FHC Credit Union undoubtedly has a strong team and the bandwidth to adapt under any circumstances. Our corporate governance and structures have provided the capacity we require to successfully navigate the pandemic with a continued core focus on our members, Team Members and enriching the communities we serve. Consistent assessment of our strategic initiatives and their alignment with our organizational objectives, will enable us to measure our progress and pivot or realign ourselves as member demands and environmental factors change over time. We believe that this, coupled with our continued close connection with our members will provide the framework for the continued success of the Credit Union. Given the current economic landscape and dynamic way in which people now conduct business, we believe that our digital transformation journey is a timely and necessary step in enabling us serve our members more efficiently while attracting new market segments that are desirous of constant accessibility and convenience. Our openness to change and commitment to POWER UP and raise the B.A.R. signals our deep seated commitment to our member experience tenets: Valued, Connected and Trust. We remain committed to ensuring that our members have access to all the opportunities afforded to them through their Credit Union, with more value-added products and services to come. We remain aligned to our promise that the FHC Credit Union is My Place, Your Place, Our Place.

Management Discussion & Analysis

GRATITUDE We are exceedingly grateful for our hard working and committed team and to you, our members, who privilege us with the daily challenge of striving to serve you better. This financial year has had its challenges, but nevertheless, we rose above the turbulence and navigated our way together to success. We take this opportunity to thank all of our members, our Team Members, Board of Directors and Volunteers who worked tirelessly together to ensure that the year was a success. Woven into the fabric of our Credit Union is strength; and equipped with a clear vision and adaptability, we will continue to leave an indelible mark on those we serve.

…………………………………. Roxann Linton Chief Executive Officer

Treasurer’s Report

Overview It is with pleasure, that I present the Treasurer’s Report to the Annual General Meeting of the First Heritage Co-operative Credit Union Limited (FHCCU) for the year ended December 31, 2021. The audited Financial Statements in this Annual Report are for the Group, which comprises the Credit Union and its whollyowned subsidiary, FHC Investments Limited (FHCIL). Summary of Financial Performance Despite a challenging year, FHCCU realized a surplus of $234.35 Million as compared to the prior year’s surplus of $106.2 Million, representing a 120.67% or $128.15 Million increase from the prior financial year. The subsidiary FHCIL, realized profits of $3.63 Million after taxes, as compared to the prior year’s loss of $5.23 Million. This year’s performance resulted in an Accumulated Surplus of $364.44 Million, strengthening our Capital Base and allowing us greater capacity to execute on strategic objectives. The decreased appetite for loans continued into the financial year 2021 as the demand was relatively flat with disbursements totalling $4.17 Billion relative to $4.21 Billion in 2020 (a 1.04% decline). Coincidentally our members continued to respond to the crisis with increased levels of savings, which has contributed to a favourable liquidity position. Of note, the loan quality was relatively contained as the past due rate improved from 8.79% to 7.97%. The graphs below demonstrate the Credit Union’s Revenue and Net Surplus/Deficit performance for the last five years.

Treasurer’s Report

As at December 31, 2021, FHC Credit Union’s Total Assets of $16.57 Billion represented an increase of 9.34% over prior year’s $15.15 Billion, while the Group had Total Assets of $16.66 Billion as compared to $15.24 Billion (2020) or a 9.31% increase. The Group’s Net Loan portfolio increased by 6.61% or $620.37 Million over the prior year (2020) from $9.38 Billion to $10 Billion. The Group’s Liquid Assets and Investments also grew by $885.66 Million moving from $4.6 Billion (2020) to $5.48 Billion (2021) as more funds became available based on our liquidity status. The graph below indicates the Credit Union’s Investments, Loans and Total Assets for the period 20172021.

Treasurer’s Report

Members’ Deposits and Voluntary Shares increased by $1.32 Billion or 11.06% from $11.95 Billion (2020) to $13.27 Billion (2021). The combination of our highly competitive interest rates and the increases in savings by our members, due to the uncertainty of the pandemic, was the primary contributor to this increase. The graph below indicates the Deposit trend over the period 2017-2021.

Economic Overview Estimates from Statistical Institute of Jamaica indicate that the Jamaican economy had growth of 4.60% in real Gross Domestic Product year over year for 2021. Despite the lingering challenges of the pandemic, supply chain disruptions and the ongoing war in the Ukraine, we remain confident and given the recent lifting of restrictions previously imposed under the Disaster Risk Management Act, there is new anticipation of increased economic activities. The Jamaican Dollar depreciated against the United States Dollar by 8.72% (7.6% prior year) in trading year over year, ending 2021 at $155.09 ($142.65 prior year). The decline in the tourism sector led to weak inflows of foreign exchange and created a shortfall which caused the Bank of Jamaica (BOJ) to intervene in the markets by offering liquidity through their FX Intervention Trading Tool (B-FXITT). The exchange rate went to a low of $157.07 in October 2021.

Treasurer’s Report

The inflation rate for the calendar year ended at 9.1% which was outside of the BOJ targeted 4% to 6%. This was influenced by the impact of higher international commodity prices and increased domestic demand. In response, the BOJ increased its indicative benchmark policy interest rate to 2.5% as at December 2021. The policy rate had been historically kept at 0.5% between August 2019 and August 2021. The 90-day benchmark Treasury-Bill rate which started the year at 0.77% moved up to 4.09% at year end. The un-employment rate as at October 2021 stood at 7.10% compared to 10.70% in October 2020. Regulatory Environment FHCCU’s Regulatory Institutional Capital to Total Asset ratio stood at 9.86% as at December 31, 2021 (11.19% in 2020), as maturing Deferred Shares of $178.6 Million during the year were not replaced. This ratio, compared favourably to the minimum PEARLS Standard of 8.00%, and a 6.00% minimum requirement for the Bank of Jamaica. The Jamaica Co-operative Credit Union League Limited (JCCUL) continues to monitor our performance against International Credit Union Industry financial benchmark standards, for safety and soundness (PEARLS). Our performance is also compared to other prudential standards by the BOJ. As a specified financial institution, the BOJ continues to have oversight of our activities by reviewing our financial reports and conducting periodic audits. The BOJ will soon however, assume direct supervision of Credit Unions and in anticipation, we continue to make the requisite preparation through procedural and policy reviews. Operating Results The reduced appetite for loans by our members created by the uncertainty of continued employment, coupled with the competition driven reduced Loan interest margins, stymied our Revenues. This was fortunately tempered by increased returns on our Investments portfolio allowing for favourable benchmark performances.

Treasurer’s Report

The Credit Union’s key results for the year 2021 were: • Interest Income of $1.65 Billion (2021) increased by $104.94 Million or 6.79% from $1.55 Billion (2020), this was primarily due to the growth in the Investment portfolio and the weighted average rates over the prior period. • Non-Interest Income of $334.19 Million (2021) increased by $106.78 Million or 46.96% from $227.4 Million (2020). The increase can be attributed to growth in our equity stock values (loss of $45.10 Million in 2020 vs gains of $11.95 Million in 2021) and one off closure fee income of $41.22 Million. The graph below depicts the Credit Union’s performance in Interest Income and Non-Interest Income for 2020-2021.

• Interest Expense increased to $236.79 Million (2021) from $224.59 Million (2020). This increase corresponds to the continued growth of our Deposit portfolio and significant take up of the Term Deposits which are our primary source of funding. The Credit Union continues to offer some of the most competitive interest rates available to our members on savings products. • Operating Expenses increased by $78.9 Million or 6.25%, from $1.26 Billion (2020) to $1.34 Billion (2021) however, our Operating Expenses to Average Asset ratio decreased to 8.41% from 8.76% in 2020.

Treasurer’s Report

• Past Due loans (30 days and over) as a percentage of our Gross Loan portfolio were 7.97% (vs. 8.79% as at December 2020). • Provision for Loan Losses for the year, net of recoveries was $161.21 Million in 2021, relative to $173.98 Million in 2020. It was necessary to maintain our provisions as the economic circumstances of some of our membership remained dire, increasing the probability of loan default. The provisioning for loan losses continued to be adequate to cover potential losses. • Accumulated surplus available before distributions increased to $364.44 Million from $280.25 Million, an improvement of $84.20 Million over 2020.

Conclusion Your Credit Union performance in 2021 is worthy of accolades, having had to manoeuvre and respond to the lingering effects of the pandemic on our stakeholders both internally and externally. Key prudential ratios such as the Capital and Liquidity positions remained adequate and above benchmark; ratios bolstering our ability to execute on our strategies, always with the ethos of putting our Members at the Centre. As always, the Credit Union’s success is dependent on the continued support of you, our members, our dedicated team members and our volunteers. Acknowledgements I would like to gratefully recognise the membership on behalf of the Board of Directors and Management, for their continued support of our Credit Union as we thrive. It has been an honour and privilege to serve you as Treasurer. We acknowledge the work of our Auditors, KPMG, and their professional contribution to the audit process. Thanks to all our valued stakeholders especially our volunteers, managers and team members who unwaveringly applied themselves contributing to the Credit Union’s success, I thank you. God bless you.

__________________________________________ Cranston Ewan Treasurer

Treasurer’s Report

Financial Statements

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Supervisory Committee Report

THE COMMITTEE The Supervisory Committee assists the Board of Directors in discharging its responsibilities by providing oversight on aspects of the internal control system through the Internal Audit Function. The members of the Supervisory Committee were elected from the wider membership by the members of the Credit Union at the Annual General Meeting held on the 17th of June, 2021.

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Members, Mrs. Sharon Smickle and Ms. Tanisha Thompson were elected, Members, Ms. Jacqueline Roberts, Ms. Shauna-Kaye Gordon and Ms. Geraldine Wright were re-elected. Members, Mrs. Camelle RickettsMoore and Mr. Luke McIntosh retired from the Committee. During the year, Members, Ms. Geraldine Wright and Mrs. Sharon Smickle resigned from the Committee. The standing members of the Supervisory Committee are: • Ms. Shauna-Kaye Gordon • Ms. Jacqueline Roberts • Ms. Tanisha Thompson The Committee elected Ms. Shauna-Kaye Gordon and Ms. Tanisha Thompson as Chairperson and Secretary, respectively. REPORTING PERIOD The reporting period for this report will cover the twelve month period, January 2021 to December 2021. ATTENDANCE RECORD There were 12 Supervisory Committee meetings held for the reporting period. The attendance by members are as follows: Name Ms. Shauna-Kaye Gordon Ms. Jacqueline Roberts Ms. Geraldine Wright Ms. Tanisha Thompson Mrs. Camelle Ricketts-Moore Mr. Luke McIntosh Ms. Sharon Smickle

Attended 12 12 8 6 3 6 2

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Excused 0 0 0 0 0 0 0

Supervisory Committee Report

Members of the Supervisory Committee also attended the quarterly Joint Meeting of the Board of Directors, Committees and Management. The Chairperson also attended the Audit & Risk Management Committee meetings held during the period. AUDIT AND INVESTIGATION ACTIVITIES Audit Activities There were seven (7) audits on the 2021 Audit Plan. The target completion rate was 70%. The actual completion rate was 57%. The redeployment of resources to a major special investigation and the reduction in staff complement from 5 to 4 severely impacted the completion rate. The status of audit activities as at the 31st of December, 2021 is as follows: Status Number of Audits Audits Completed audits 4 Compliance with the Liquidity and Capital Management Policies.

Compliance with Loan Origination, Underwriting and Disbursement Service Level Agreements.

Review of the purchasing process of IT Expenditure. Loan Security Management. In Progress 2

Follow up review of Management’s corrective actions on a major special investigation case.

Review of Anti-Money Laundering (AML) and Counter Financing of Terrorism (CFT) Framework.

Deferred 1

Business Continuity Plan (BCP) review on Back Up Processing was deferred as the BCP was not finalized in 2021.

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SUMMARY REPORT ON COMPLETED AUDITS Compliance with the Liquidity and Capital Management Policies This review sought to assess the level of compliance with the liquidity and capital management policies of the Credit Union. Evidence gathered during the review indicates that the Credit Union’s governance structure is supported by a formal Policy framework that governs liquidity and capital management; committees established are functional and there is a high level of compliance with internal and external reporting requirements. Compliance with Loan Origination, Underwriting and Disbursement Service Level Agreements This review sought to assess whether the loan service processing time standards are being achieved based on Standard Operating Procedures (SOP). The review found that adequate documentation was maintained for loan monitoring and tracking at the loan underwriting and disbursement stages, there was no structured documentation maintained or monitoring of the loan origination stage. A recommendation was made for the tracking and monitoring to be done from the start of the cycle (loan origination) to the end of the cycle (loan disbursement). Management has indicated that the new system will be able to track and report on the complete loan cycle. Follow up reviews will be conducted by the Internal Audit Department at a later stage to ensure that this is being done. Review of the purchasing process of IT Expenditure This review sought to provide assurance that the equipment, software, and services procured were transparent, there was proper accountability and approval was consistent with the budget and specifications. The review found that the procurement procedures were transparent, purchases were aligned to the budgets and appropriately approved. The review did not identify any related party transactions or conflicts of interest.

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Loan Security Management This review sought to determine whether assets used as security for loans were being managed according to the established standards. The review found compliance with the established standards in most cases, however a few exceptions were noted. Management has given the commitment that the new banking system will facilitate better management of the loan security process. Management also gave a commitment that additional internal controls will be implemented to address the exceptions noted. Investigation Activities Special investigation continues to be a major activity for the Internal Audit Department. Given the sensitive nature of these activities they are treated as priority. There was a 25% increase in investigative activities conducted over the prior year. A total of forty-five (45) special investigations were initiated in 2021, compared to 36 cases in 2020. The completion rate achieved was 69% against a target of 70%. Approximately 65% of the new cases reported during the year were completed. As at December 31, 2021, there were fourteen (14) special investigations in progress, eleven (11) relating to 2021 and 3 for prior years. The status of the investigation activities are as follows: Total Carried forward from 2020 14 New cases 31 Total 45

Completed 11 20 31

In-progress 3 11 14

% Completion 79% 65% 69%

Approximately $8.5 Million was under investigation during the year. The cost to the Credit Union was approximately $6.4 Million (2020: $1.1Million). Proceeds from the Insurance Company is being finalized.

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Unauthorized withdrawals, loans and debit card use were the major source of the investigations. A major investigation is still on-going. Given the sensitivity and the stage of this investigation, the Committee is unable to provide details of matter at this time.

GENERAL REVIEWS Bank Reconciliation Reviews Based on the reports received, bank reconciliations were reviewed in a timely manner and reconciling items were appropriately addressed. Staff, Volunteer and Connected Party Past Due Loan Balances There were no staff, volunteer or connected party loans outstanding for more than 30 days (past due). CONCLUSION We would like to express our thanks to the Nominating Committee for their confidence in selecting us and the members of the Credit Union for appointing us to serve in this important capacity. We would also like to express our gratitude to the Management and Team Members, in particular the Internal Audit Department and the Board of Directors, for facilitating and supporting the work of the Committee over the year.

_____________________________ Shauna-Kaye Gordon Chairperson

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Credit Committee Report

For the financial year 2021, the Credit Union experienced growth in the loan portfolio, despite an environment of tough competition from other financial institutions and the impact of the COVID-19 pandemic. In the face of these challenges, the Credit Union continued to meet the financial needs of its members and assisted them to achieve their financial and personal goals.

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The Credit Union’s loan disbursements were fair, resulting in a total of $4.27 Billion in 2021 compared to a total of $4.21 Billion in 2020. The loan portfolio grew by 6.76%, moving from $9.77 Billion in 2020 to $10.43 Billion in 2021. Arising from the economic contraction occasioned by the pandemic, the Micro & Small Business Loans Unit saw a decrease in total disbursements from $394.16 Million in 2020 to $256.82 Million in 2021, a decrease of $137.34 Million or 34.84%. In addition, given that many businesses were negatively impacted by COVID-19measures, the past due rate increased to 30.27% in 2021 compared to 17.56% in 2020. Overall Past Due Rate The rate decreased from 8.79% as at December 2020 to 7.97% as at December 2021. Attendance Record For the period January to December 2021, a total of forty-nine (49) meetings were held. Attendance for each member was as follows: Members Meetings Attended Althea Daley 48 Richard Ranger 47 Donald Williams 44 Clivia Green 43 Stennett McLean 46

Excused 1 2 5 6 3

As FHC Members, we implore you to assist us with reducing the past-due rate by ensuring monthly commitments are made. We urge you to speak with a member of our team if you are facing challenges.

________________________________ Althea Daley (Mrs.) Chairman

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Nominating Committee Report

In order to present a slate of Volunteers for election at the 10th Annual General Meeting, a Nominating Committee was formed. This Committee was appointed in accordance with the provisions of Article XIII, Rule 57 of the Rules of First Heritage Co-operative Credit Union Limited and comprised: • Mrs. Tamara Riley-Dunn • Mr. Richard Picart • Ms. Roxann Linton

- Chairperson; Board Representative - Member Representative - Staff Representative

Under consideration were the vacancies created by the retiring Volunteers, who all indicated, in writing their willingness to continue to serve. This report is now presented to the Membership:

BOARD OF DIRECTORS The Directors retiring at this Annual General Meeting are: 1. 2. 3. 4.

Mrs. Leodis Douglas Mr. Cranston Ewan Mr. Balvin Vanriel Mr. Noel Francis

A slate of Directors will retire from the Board in 2023 and will be required to fully demit office at that time. In light of this fact and with a view to ensuring the continuity of knowledge and expertise on the Board, without unnecessary disruption, the Nominating Committee nominates the following persons, who have all indicated, in writing their willingness to serve:

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Retiring Mrs. Leodis Douglas Mr. Cranston Ewan Mr. Balvin Vanriel Mr. Noel Francis

Recommended Mrs. Leodis Douglas Mr. Cranston Ewan Mr. Balvin Vanriel Mr. Noel Francis

Term (years) 2 2 2 2

New Recruits Mr. Wayne Jones Mrs. Camelle Ricketts-Moore Ms. Renè Gayle Mr. Richard Ranger

Recommended Mr. Wayne Jones Mrs. Camelle Ricketts-Moore Ms. Renè Gayle Mr. Richard Ranger

2 2 2 2

SUPERVISORY COMMITTEE The members of the Supervisory Committee all retire at each Annual General Meeting. They are: 1. Ms. Shauna-Kaye Gordon 2. Ms. Tanisha Thompson 3. Ms. Jacqueline Roberts During the year 2021, there were two (2) resignations from that Committee, namely; Mrs. Sharon Smickle and Ms. Geraldine Wright, leaving two (2) vacancies to be filled. The Nominating Committee nominates the following persons, who have all indicated in writing, their willingness to serve: Retiring Ms. Shauna- Kaye Gordon Ms. Tanisha Thompson Ms. Jacqueline Roberts

Recommended Term (years) Ms. Shauna-Kaye Gordon 1 Ms. Tanisha Thompson 1 Ms. Jacqueline Roberts 1

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New Recruits Mrs. Carol Dallas- Robinson Mrs. Karlene Mitchell-Gordon

Recommended Mrs. Carol Dallas-Robinson Mrs. Karlene Mitchell-Gordon

1 1

CREDIT COMMITTEE The members of the Credit Committee retiring at this Annual General Meeting are: 1. Mrs. Althea Daley 2. Mr. Stennett McLean 3. Mr. Donald Williams The Nominating Committee nominates the following persons, who have all indicated in writing, their willingness to serve: New Recruits Mr. Donald Williams Ms. Keslyn Gilbert Mr. Earl Bailey Ms. Janyce Robinson

Recommended Mr. Donald Williams Ms. Keslyn Gilbert Mr. Earl Bailey Ms. Janyce Robinson

Term (years) 2 2 2 2

Mrs. Althea Daley and Mr. Stennett McLean having served the maximum allowable period of three (3) consecutive terms are not eligible for re-election. At the 2021 Annual General Meeting, Mr. Richard Ranger was nominated and elected for a term of two (2) years, based on a long standing interpretation of the term limits outlined in the Rules of the Credit Union. This has since been revealed to be mistaken and Mr. Ranger is no longer eligible to serve on the Credit Committee. We thank Mrs. Daley, Mr. McLean and Mr. Ranger for their service to the Credit Union in this capacity.

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PROFILES OF CANDIDATES 1. Board of Directors Mrs. Leodis Douglas, MBA – 1st Vice Chairman Mrs. Douglas is currently the Human Resource Director and Principal Lecturer at GC Foster College of Physical Education and Sport. She is the holder of a Master’s Degree in Business Administration from Florida International University, holds a B.Sc. in Human Resource Management, graduating summa cum laude and holds a Diploma in Secondary Education with Honours. Mrs. Douglas presently serves as the 1st Vice Chairman on the Board of Directors and is the Chairman of FHC Foundation, the Corporate Governance Committee, as well as the Retirement Scheme’s Board of Trustees.

Mr. Cranston Ewan, MBA, FCCA - Treasurer Mr. Ewan is a Fellow of the Association of Chartered Certified Accountants (ACCA). He holds a Master’s Degree with a concentration in Finance from the University of Manchester. Mr. Ewan has vast experience in several industries, spanning Accounting, Shipping, Education, Energy Efficiency, and the Distributive Trade. His expertise includes accounting, finance, management consulting, human resource management, facilities management and leadership. Mr. Ewan presently serves as Treasurer on the Board of Directors and is the Chairman of the Finance and Operations Committee.

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Nominating Committee Report Mr. Balvin Vanriel, FCA, FCCA – Assistant Treasurer Mr. Vanriel is currently a Partner with the auditing firm BDO Chartered Accountants. He is a qualified Accountant, a Fellow with the Institute of Chartered Accountants of Jamaica and a member of The Association of Chartered Certified Accountants (ACCA). Mr. Vanriel is also a Registered Public Accountant and serves as an Associate Minister in his denomination. He is the Immediate Past Chairman and Assistant Treasurer of the Board of Directors, as well as the Chairman of FHC Investments Limited.

Mr. Noel Francis, O.D., MBA - Director Mr. Francis, a Commissioned Land Surveyor and a Class 1 Hydrographer, is an Associate of the Royal Institution of Chartered Surveyors. His work experience includes the management of the Survey Department as Deputy Director of Surveys, serving as a consultant in Dredging Engineering, Consultant to the Commonwealth Secretariat and the United Nations, and serving as a Lecturer at the University of Technology. He was educated at the University of the West Indies, University College London, University of Toronto, Texas A&M University and Nova Southeastern University. Mr. Francis’ qualifications include a Bachelor’s of Sciences Degree (BSc.) and a Master of Arts in Business Administration (MBA). Mr. Francis currently serves on the Board of the Jamaica Copyright Agency, as Treasurer and sits on the Past Due Committee of FHC as well as the Board of Directors. Mr. Francis has been honored by the Jamaican Government with an Order of Distinction. Mr. Wayne Jones, OD, JP. Mr. Jones currently holds the post of Deputy Financial Secretary in the Ministry of Finance and Public Service and is in charge of Strategic Human Resource Management. Mr. Jones is an accomplished Human

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Resource Practitioner with over thirty-five years’ of experience in the field of Industrial Relations and Employment Management. He is a graduate of the University of the West Indies, City & Guild Institute of London, and a certified Change Management Specialist. Mr. Jones is the former President of the Jamaica Civil Service Association (JCSA) and General Secretary of the Jamaica Confederation of Trade Unions (JCTU). At the regional and international levels, he held the presidency of the Caribbean Public Services Association and sat on the Executive Board of Public Services International as representative of the InterAmericas Region. He is also the recipient of an Oder of Distinction by the Jamaican Government.

Ms. Renè Gayle – LLB (Hons), CLE (with Merit), MSc. Ms. Gayle is a Legal Consultant with a decade of experience as an Attorney-at-Law, working on high impact projects and cross border transactions. She previously held the position of AGM of Legal Affairs of First Heritage Co-operative Credit Union Ltd and possesses a wealth of knowledge in corporate and commercial law. She is the recipient of many academic accolades and is the holder of a Bachelors of Law Degree (1st Class Honours), a Certificate of Legal Education (with Merit) and a Master’s of Science in International and Comparative Dispute Resolution (with Merit).

Mrs. Camelle Ricketts-Moore, FCCA, MBA, CIA, CISA Mrs. Ricketts-Moore possesses over 18 years’ experience in the field of Accounting, Internal Auditing and General Business Operations, acquired mainly from the manufacturing, distribution and retail industries. She previously worked with the Grace Kennedy Company Limited for 11 years and is currently the Managing Director of Sangster’s Book Stores Limited. A member of the Association of Chartered Certified Accountants (ACCA) since 1999, Mrs. Ricketts-Moore

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Nominating Committee Report

is a Chartered Accountant and holds a MBA from the Manchester School of Business. She is also a Certified Information System Auditor (CISA) and a Certified Internal Auditor (CIA). She previously served as a volunteer in the capacity of Chairperson on the Supervisory Committee at First Heritage Co-operative Credit Union Limited.

Mr. Richard Ranger, RPA, ACCA, CA Mr. Ranger is a Chartered Accountant, a member of the Association of Chartered Certified Accountants (ACCA) in the United Kingdom and a member of the Institute of Chartered Accountants of Jamaica (ICAJ). He has over fifteen years’ of experience in external and internal auditing, accounting and business operations. Mr. Ranger has worked with PricewaterhouseCoopers, Boldeck Jamaica Limited and the Neal and Massy Group, specializing in audit and assurance, accounting and income tax services. He is presently the Principal of Ranger and Associates, a local audit and accounting firm and he previously served as a volunteer in the capacity of a member of the Credit Committee.

2. Supervisory Committee Ms. Shauna-Kaye Gordon, MBA, FCCA, CA Ms. Gordon is presently employed to Sol Petroleum as a Tax Manager and had previously been employed as a Tax Manager with PwC for over five (5) years. She also has eighteen years’ experience working with the Government of Jamaica, in various departments including Tax Administration Jamaica and the Jamaica Customs Department. Ms. Gordon has extensive knowledge of Jamaican tax laws, international double taxation treaties, and the tax administration system, practices, policies, and procedures. She has provided tax advisory and tax compliance services to clients in the retail, manufacturing, hospitality, banking, insurance and bauxite industries.

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Nominating Committee Report

She holds a Master’s Degree in Business Administration (MBA) from the Florida International University (FIU) and a Postgraduate Diploma in Tax Audit and Revenue Administration from the Management Institute for National Development (MIND). She is a Fellow of the Association of Certified Chartered Accountants (FCCA) and a member of the Institute of Chartered Accountants of Jamaica (ICAJ).

Ms. Tanisha Thompson, BA, CIA, CISA Ms. Thompson is an IT Audit/Consulting Professional with over fourteen years of combined expertise in the areas of Information Technology, Operational, Compliance Audits and Business Process Reviews for clients within the manufacturing, banking, insurance, retail and government sectors. She has served both in external and internal audit conducting Information Technology and Security Audits. Ms. Thompson is currently a Director at the Auditor General’s Department, with primary focus on IT Security Audits. She is a member of the Information Systems Audit and Control Association and the Institute of Internal Auditors.

Ms. Jacqueline Roberts, CA, ACCA Ms. Roberts is currently an Assistant Audit Manager with the auditing firm BDO Chartered Accountants. She is a qualified Accountant, a Fellow of the Institute of Chartered Accountants of Jamaica (ICAJ) and the Association of Chartered Certified Accountants (ACCA). Ms. Roberts is also a Registered Public Accountant. She possesses over 25 years of accounting and auditing experience and has performed on assignments within various sectors such as, government, manufacturing, financial, agriculture, retail, non-profit and service organizations.

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Nominating Committee Report

Mrs. Karlene Mitchell-Gordon, BSc. LLB, MSc. Mrs. Mitchell-Gordon is currently a Senior Tax Counsel with the Tax Administration of Jamaica. She is also a practicing Attorney-at-Law, who is well rounded in areas such as accounts, economics and tax reform. She has held positions such as Legal Counsel & Corporate Secretary, Economist, Accountant and Lecturer and possesses over 20 years of work experience in accounting and tax reform.

Mrs. Carol R. Dallas-Robinson, CA, ACCA Mrs. Dallas-Robinson is currently an Audit Manager with ABTAX Limited and an Accountant at Caribbean Broilers. She is a qualified as a Chartered Accountant and possesses over 20 years of accounting and auditing experience. In her capacity, she has performed on several assignments within various sectors in the island.

3. Credit Committee Donald O. Williams, J.P., ACIB, FICB A retired commercial banker, Mr. Williams is a seasoned financial services professional, having spent 47 years with Scotia Bank Jamaica in several operational, senior management, and executive roles. Mr. Williams has worked both in Jamaica as well as Toronto, Canada for the Bank of Nova Scotia. He has extensive experience in both retail credit and corporate credit. His last substantive post with Scotia Bank Jamaica Limited was as the Vice President, Credit Risk Management. Mr. Williams is an Associate of the Institute of Canadian Bankers, A.C.I.B., and a Fellow of The Canadian Institute of Canadian Bankers, F.I.C.B.

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Mr. Williams is a Justice of the Peace for the parish of Kingston, as well as a Parish Court and Supreme Court Mediator.

Ms. Keslyn Gilbert, BA (Hons), LLB (Hons), LEC, ICA, AML Dip Ms. Gilbert is an experienced Attorney-at-Law with almost 15 years at the bar, having been called since October 2007. She is presently the Senior Manager, Legal and Corporate Governance at the Jamaica Social Investment Fund. She possesses a wealth of knowledge and sound understanding in her area of practice and she is a two time honours graduate of the University of the West Indies and she possesses a Certificate of Legal Education from the Norman Manley Law School.

Mr. Earl Bailey, PhD. Msc., PG. Dip. (Edu), BSc., Dip Mr. Bailey is a Lecturer at the University of Technology, Jamaica and is a past lecturer of the University of the West Indies. His general areas of expertise include; Urban and Regional Planning and Land Resource Management, with emphasis on housing, spatial planning, disaster management, construction technology and climate change. He piloted the accreditation of Bsc. in Urban and Regional Planning as the first academic programme at the University of Technology, Jamaica. He is also among the first to introduce Geographic Information System and Remote Sensing to the Caribbean Region’s academic and professional environment. He is presently the Vice President of the Jamaica Institute of Planning.

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Nominating Committee Report

Ms. Janyce Robinson Ms. Robinson is a Consultant and was previously the General Manager of Credit Administration and Loan Risk at First Heritage Co-operative Credit Union Limited. She possesses over thirty years’ experience both in private and public sector entities in the management of credit portfolios and in the banking sector. She has worked in the fields of Operations, Banking and Credit Risk, and was a member of the Institute of Bankers of London, Institute of Bankers Jamaica and the Canadian Institute of Bankers. She has also previously served as a member of the Credit Committee of the Credit Union. Mrs. Tamara Francis Riley-Dunn Chairman, Nominating Committee Signed By:

………………………………………………………….. Tamara Francis Riley-Dunn (Mrs.) Chairperson

……………………………………………………………. Richard Picart Member Representative

……………………………………………………………. Roxann Linton Staff Representative

May 5, 2022

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Pictorial Highlights

FHC Scholarship Awards 2021 The PEP and Tertiary Scholarships handover was observed under the safety and health protocols as we continued to experience the effects of the COVID-19 pandemic, with presentations done by the FHC Team. Students were awarded based on their academic performances over the previous years.

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Pictorial Highlights

Credit Union Week 2021 Credit Union Week was celebrated across our branch network as we held Members’ Appreciation Day on October 21st. Members received gifts and goodies from our Branch Representatives.

One Tablet / Laptop Per Child Drive FHC Foundation and FHC Credit Union partnered with the Ministry of Education, Youth and Information and by extension the National Education Trust for the One Tablet/Laptop Per Child Drive across Jamaica. Through this meaningful initiative we were able to impact the lives of 100 students including those with special needs.

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Pictorial Highlights

St. Thomas Ground Breaking Sharing in the photograph at the ground breaking ceremony for FHC Credit Union, St. Thomas Branch are Chairman, FHC Credit Union, O’Neil Grant (left); CEO, First Heritage Co-operative Credit Union, Roxann Linton (second left) ; CEO, Jamaica Co-operative Credit Union League, Robin Levy (second right), and long-serving Member, Claudette Gilzine. Below: The FHC Board of Directors and Leadership Team along with specially invited guests at the ceremony.

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JCCUL’S Delegates Report

JAMAICA CO-OPERATIVE CREDIT UNION LEAGUE LTD. 80th ANNUAL GENERAL MEETING HELD JUNE 5, 2021 HIGHLIGHTS The Jamaica Co-operative Credit Union League’s 80th Annual General Meeting was held at the Credit Union House’s Sullivan Hall on Saturday, June 5, 2021. One hundred (100) persons which comprised credit union delegates, alternate delegates, JCCUL Group Board members, JCCUL Group staff and observers were in attendance on the Zoom platform. Sixteen (16) persons attended in-person. These include the Registrar, some JCCUL Board members, the Supervisory and Nominating Committee Chairpersons and JCCUL Group staff. Delegates from twenty-five (25) Credit Unions attended the 80th annual general meeting. The following activities took place: ANNUAL GENERAL MEETING President Mr. Lambert Johnson, chaired the meeting. He welcomed the participants and then gave a summary of the Board report for the year 2020. The following reports were presented: Board of Director’s Report, Treasurer’s Report, Auditor’s Report, Fixing of Maximum Liability, Supervisory Committee Report, Nominating Committee Report, Resolutions and the Credit Union of the Year Awards.

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JCCUL’S Delegates Report

DISTRIBUTION OF SURPLUS The Delegates agreed to the distribution of the surplus of $10.17 million. They also voted for the maximum liability of the League to be set at $5 billion.

ELECTION OF OFFICERS The Meeting voted to accept the nominations for the following persons to serve on the Board for the 2021/2022 year. Name Anthony McLaughlin Lambert Johnson Michael Anglin Norris Gilbert O’Neil Grant

Credit Union Jamaica Police Gateway JDF PWD First Heritage

Category At Large At Large Medium Small At Large

The Board of Directors welcomed new Director, Anthony McLaughlin of Jamaica Police Co- operative Credit Union. Exiting the Board was Ms. Carol Anglin, COK Sodality Co-op Credit Union.

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JCCUL’S Delegates Report

The following persons were elected to serve on the Supervisory Committee: NAME Karen Robotham-Teape Ivy Lawrence Mr. Delroy James Ms. Nicola Reid Ms. Paulette Green

Credit Union Broadcast & Allied Credit Union Lascelles Employees & Partners Credit Union First Heritage Credit Union Palisadoes Credit Union Jamaica Police Credit Union

The Supervisory Committee welcomed new member, Karen Robotham of Broadcast & Allied Co- operative Credit Union. RESOLUTIONS Five (5) congratulatory resolutions were passed at the meeting as follows: 1. Ambassador Aloun Ndombet-Assamba, COK Sodality Co-operative Credit Union – Congratulations on Retirement. 2. Hope Mowatt, Grace Co-operative Credit Union - Congratulations on Retirement. 3. C&WJ Co-operative Credit Union – 60th Anniversary Congratulations. 4. Manchester Co-operative Credit Union – 70th Anniversary Congratulations. 5. Portland Co-operative Credit Union – 50th Anniversary Congratulations. RULE CHANGES 1. Jamaica Co-operative Credit Union League Ltd. - Special Resolution to amend Rules 23, 25, 30 and 86 to allow for virtual-only and hybrid-meetings, was passed. 2. Jamaica Co-operative Credit Union League Ltd. – Resolution to amend Rule 15 regarding flexibility to amend liquidity reserves requirement, was passed.

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JCCUL’S Delegates Report

Credit Union of the Year Awards The Credit Union of the year awardees were announced as follows:

Large Peer Group Winner Runner Up Medium Peer Group Winner Runner Up Small Peer Group Winner Runner Up

C&WJ Co-operative Credit Union JTA Co-operative Credit Union JDF Co-operative Credit Union Portland Co-operative Credit Union Grace Co-operative Credit Union Essential and Emergency Services & Partners Co-operative Credit Union

The following Credit Unions received sectional awards: • Grace Co-operative Credit Union

- Highest Asset Growth

• JDF Co-operative Credit Union

- Highest Solvency

• JTA Co-operative Credit Union

- Highest Net Capital Growth

The following credit unions received CPD Online awards: • First Regional Co-operative Credit Union - CPD Online Top Performing Credit Union • Lascelles Employees & Partners Co-operative Credit Union - CPD Online Top Performing Credit Union (Runner up)

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JCCUL’S Delegates Report

• Stephen Clarke (First Heritage Co-operative Credit Union) - CPD Online Top User

LEAGUE BOARD Following the AGM the executive was elected to serve on the League Board for the 2021-2022 year. They are: Lambert Johnson Andrea Messam O’Neil Grant Norris Gilbert Patrick Smith Jerry Hamilton Brenda Cuthbert Winston Fletcher

President 1st Vice President 2nd Vice President Treasurer Assistant Treasurer Secretary Assistant Secretary Immediate Past President

The other directors are: Michael Anglin Martin Blackwood Alexander Bourne Bornette Donaldson Ryan Muir Hector Stephenson Anthony McLaughlin

……………………………………………………………. Roxann Linton Delegates

……………………………………………………………. Leodis Douglas Delegates

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Branch & Unit Managers

BRANCHES

ADDRESS

BRANCH MANAGERS

Kingston & St. Andrew

8-10 Eureka Road Melissa Miller-Benjamin Kingston 5 Senior Branch Manager Lawrence Tavern Lawrence Tavern P.O. St. Andrew 20 Dominica Drive Racquel Walker

10 East Avenue Trudian Stewart Kingston 4

St. Catherine

Lot 57 West Trade Way Portmore Town Centre

Tania Oglesby

Unit 13 Oasis Shopping Centre 6 March Pen Road Spanish Town

Sheldon Christian

St. Thomas Clarendon Manchester St. James

Shops 8 & 9, East Side Plaza 35 East Street Old Harbour

26 Queens Street Janet Richards Morant Bay, Shops 5 & 6 Bargain Village Plaza May Pen

Norman Williams

2 Perth Road Sharna Hutchinson-Scott Mandeville 21 Union Street Marcia Bailey Montego Bay

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Branch & Unit Managers

Garfield Pearson Senior Manager - Accounting & Treasury Sophia Harvey Manager - Human Resource Development Rosemarie Samuels Manager - Training and Development Jason Ferguson Manager – Micro & Small Business Loans Unit Alleesa Matherson Manager - Centralized Loans Unit Omari Hodelin Manager - Information Technology and Projects

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Parliamentary Rules

1. ORDER OF BUSINESS An agenda shall be prepared by the Chairman and Secretary, and all items. Thereon shall take precedence over all other business. Any member desirous of introducing business for the consideration of the meeting may do so after the business on the agenda has completed, or may give notice of motion to be discussed at a further meeting. 2. SUSPENSION OF STANDING ORDER In the event of any matter of urgency, however, the Chairman may accept a suspension of the Standing Orders. The member moving such suspension must clearly state the nature and urgency of his business, the numbers of the standing orders affected, and the length of time he desires such suspension to last. At the option of the meeting, a further extension may be allowed, but no suspension shall take place except by majority vote of the members present. 3. MINUTES No motion or discussion shall be allowed on the Minutes except in regard to their accuracy. After the confirmation of the Minutes, they shall be signed by the Chairman, and the members shall than be at liberty to ask any questions in regard to matters arising out of them. Such questions shall be allowed for purposes of information only, and no debate on the policy outlined in the Minutes shall take place. 4. All persons desiring the floor shall rise and address themselves to the chair. They shall state their name and the Credit Union which they represent, if recognized by the chair, they shall have the privilege of the floor and all the rights thereof. 5. All speakers are to make use of the Desk and Floor Microphones when addressing the Meeting in order that it be recorded and made a permanent record in the Meeting Proceedings. 6. Should two or more persons rise at the same time, the chair shall decide, without debate, who is entitled to the floor. 7. SPEECHES No member shall be allowed to speak more than once upon on any motion before the meeting, unless in Committee, or on a point of order, or explanation, except the mover of the Original Motion. But on an amendment being moved, any member even though he has spoken on a Original Motion, may speak again on the amendment. No member shall speak for more than five minutes at a time. Members wishing to raise points of order or explanation must first obtain the permission of the Chairman and must raise immediately the alleged breach has occurred. Any member may formally second any motion or amendment and reserve his speech until a later period in the debate.

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Parliamentary Rules

8. No person shall interrupt another who is speaking except on a point of order, a parliamentary inquiry, or a point of information. 9. If it should come to pass that a speaker is called to order while speaking, the speaker should take his seat until the question of order is determined. 10. CHAIRMAN’S RULING The ruling of the Chairman on any question under the Standing Orders, or on points of order or explanation, shall be final, unless challenged by not less than four members, and unless two-thirds of the members present vote to the contrary. 11. INTERRUPTION If any member interrupts another while addressing the meeting, or uses abusive or profane language or causes disturbance at any of the meetings, and refuses to obey the Chairman when called to order, he shall be named by the Chairman. He shall thereupon be expelled from the room and shall not be allowed to enter again until an apology satisfactory to the meeting be given. 12. A question shall not be subject to debate until it has been duly moved and seconded and is stated from the chair. 13. MOTIONS AND AMENDMENTS The first proposition on any particular subject shall be known as the Original Motion, and all succeeding propositions on that subject shall be called amendments. Every motion or amendment must be moved and seconded by members actually present at the meeting before they can be discussed, and, wherever possible, should be set forth in writing. It is permissible for a member to make his speech first and conclude with a motion. When an amendment is moved to an Original Motion, no further amendment shall be discussed until the first amendment is disposed of (Notice of any further amendment must be given before the first amendment is put to the vote). 14. SUBSTANTIVE MOTIONS If an amendment be carried, it displaces the Original Motion and itself becomes the substantive motion, whereupon any further amendment relating to any portion of the substantive motion may be moved, provided it is consistent with the business and has not been covered by an amendment or motion which has been previously rejected. After the vote on each succeeding amendment has been taken, the surviving proposition shall be put to the vote as the main question, and if carried shall then become a resolution of the meeting.

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Parliamentary Rules

15. RIGHT OF REPLY The mover of the Original Motion shall if no amendment be moved, have the right of reply at the close of the debate upon such motion. When an amendment is moved he shall be entitled to speak thereon in accordance with Standing Order No. 8 and at the close of the debate on such amendment shall reply to the discussion, but shall introduce no new matter. The question shall then be put to the vote immediately, and under no circumstances shall any further discussion be allowed once the question has been put from the Chair. The mover of an amendment shall not be entitled to reply. 16. WITHDRAWALS OR ADDITIONS No motion or amendment which has been accepted by the Chair shall be withdrawn without the majority vote of the meeting. Neither shall any addendum or rider be added to a motion which has once been accepted by the Chair without majority vote. Should any member dissent, the addendum must be proposed and seconded, and treated as an ordinary amendment. 17. CLOSING DEBATE The motions for the previous question, next business, or the closure, may be moved and seconded only by members who have not previously spoken at any time during the debate. No speeches shall be allowed on such motions. In the event of the closure being carried, the mover of the Original Motion shall have the right to reply in accordance with Standing Order No.16 before the question is put. Should any one of the motions mentioned in this Standing Order be defeated, thirty minutes shall elapse before it can be accepted again by the Chairman, unless he is of the opinion that the circumstances have materially altered in the meantime. 18. ADJOURNMENT Any member who has not already spoken during the debate may move the adjournment of the question under discussion, or of the meeting, but must confine his remarks to that question and must not discuss any other matter. The mover of the motion upon which the adjournment has been moved, shall be allowed the right to reply on the question of the adjournment, but such reply shall not prejudice his right of reply on his own motion. In the event of such motion being lost, it shall not be moved again, except in accordance with Standing Order 18. 19. Any member may call for a division of the House (that is, for a roll call vote) when there appears to be a reasonable doubt as to the accuracy of the vote as announced by the Chair. 20. A motion to lay on the table shall be put without debate 21. Whispering, loud talking, or other disturbances calculated to disturb anyone while speaking will not be tolerated.

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Dulcie Grace Carlton Victor Alvin Oval Mark Doreen Anthony Simone Janet Lynden Horace Claudette Beverly Rita Laztania Winston Hyacinth Louis Ann Nataskie Paul Cynthia Vida Leonard Barrington Winston Shernet Daniel Fitzroy Delroy Beverly Phyllis Diane David Ralvey

Abrahams-Nelson Adams Allen Allen Allen Anderson Answer Baimbrige Baker Barnaby Barnett-Lawrence Barrett Bartley Beckford Beckford Bedasse Beersingh Bell Benjamin Bennett Bennett Bennett-Jackson Beswich Betty Betty Bird Blake Brown Brown Brown Brown Brown Brown Brown Brown Bruff Bryan

Novelette Lurline Hyacinth Anthony Clueth Nicola Michael Gloria Doreen Allan Paulette Rita Stanley Isola Pauline Dorothy Audley Jasmin Patrick Ivorine Jacqueline Cecil Uriah Radcliffe Beveta Kenrick Geneviere Dawn Dennis Errol Marlene Marenette Gladys Alvin Audrey Audie Desmond

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Bryan Buchanan Cameron-Bartley Campbell Campbell Campbell Campbell Campbell Casburn Channer Christie Clarke Clarke Clarke Cole-Williams Cousins Crooks Cunningham Dacosta Davis Davis Davis Davis Davis Dennis Dennis Edmondson-Grant Edwards Edwards Elliott Ellis Erskine Fagan Findlay Findlay Fisher Fletcher

Joseph Osmond Philip Lloyd Monica Arun Erwin Norma Thelma Jermaine Gerald Melvina Fiona Francis Icilda Paul Blossom Howard Micheal Winsome James Paulette Abasifreke Rosaline Hyacinth Pearl Beryl Reuel Paul Miguel Kareen Lancelot Glenda Hazelyn Garnett Benieve Cecil

Forrester Forsythe Francis Goodwin Gordon Graham Grannell Grant Grayson-Linton Grey Griffiths Hamilton Hamilton Harriott Harris Harrison Henry-Rochester Housen Hyatt Innerarity Irving Irving Ite Jackson Jackson-Vaughn James Jarret-McHayle Jeffrey Johnson Johnson Jones Jones Kelly Kerr Kildare Kirton Latibeaudiere

Keith Ruth Thompson Sanya Lenford Joycelyn Vincent Andrea Branford Hugh Trevor Horace Gladstone Augustus Sefton Earle Maple Hilda William McKreith Josephine Winston Maple Ianthie Joel Egbert Stenneth Michel Elaine Samuel lee Marjorie Christine Gladys Janet Janet Silbert

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Lawrence Layne Leon Livingston Lowers Lyons Madden Manderson Marson Martin Matherson McFarlane McGowan McGregor McIntosh McKenzie McKenzie Mills Mills Milton Morgan Morrison Morrison Nairn Neil Nelson Newman Newman-Robinson Oliver Perrin Phillip Pitkin Plummer Polson Pratt Rattray-Graham Raymond

Germaine Garvey Desmond Brevette Jerry Donovan Andrew Desroy Sandra Holly-Rose Icilda Paulette Clive Norman Tamara Andrea Silvera Janice Doreen Henzesh Odaine Sharon Clive Lloyd Horatio Pamella Delroy Heron Eileen Lorna Dahlia Wallace Delores Peter Patrick Harper Norah

Raymond Reid Reid Reid-Aird Rhooms Richards Richards Roberts Robinson Robinson Robinson Rodney-Williams Rose Sang Satchell Saunderson Scott Scott Searchwell-Montaque Simms Simpson Smith Smith Stamp Staples Stephenson Tart Tater Taylor Taylor Taylor Thompson Timoll Tomlinson Townsend Tulloch Turner

Ricardo Collin Carol Leslie Hyacinth Faynel Granville Ronald Tameika Tony Glenworth Sylvia Melzita Joseph Ena Mayvilyn Marlene Clovis Kerry-Ann Authur Nathaniel Clive Michael Verona Garnett Kerisha Cecil Magresia Sylvia Tyrone Ralph Elaine Melanie Barrington Joan

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Tyndall Tyrell Vaz Vernon Vincent Waite Walker Walker Walker-Green Walsh Walters Watson White Whitehorn White-Nelson Whitmore Whyte Wilks Williams Williams Williams Williams Williams Williams Williams Williams Williamson Williamson Willie Wilson Wint Woolcock-Thompson Wright Young Young

Prayer of St. Francis of Assisi

Lord, make me an instrument of thy peace. Where there is hatred, let me sow love; Where there is injury, pardon; Where there is doubt, faith; Where there is despair, hope; Where there is darkness, light; and Where there is sadness, joy. O Divine Master, grant that I may not So much seek to be consoled as to console; To be understood as to understand; To be loved as to love. For it is in giving that we receive; It is in pardoning that we are pardoned; And it is in dying that we are born to eternal life. Amen

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