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In a year of economic fallout caused by the COVID-19 pandemic, we are pleased to report that our Capital and Liquidity positions remained adequate and above benchmark ratios with $106.20 million in surplus for 2020. The latest audited numbers represented a 61.6% or $167.24 million decrease from the previous year. However, despite this decrease, the Credit Union’s performance resulted in an increase in the Accumulated Surplus of $73.69 Million. CEO Roxann Linton in her address reflected on the challenges experienced as a result of the global pandemic and the strategy ahead. She reinforced that FHC remains committed to the principles of sound business practices to create

and build value for its members as well as to ensure growth and sustainability of the Credit Union. FHC’s performance in 2020 was commendable, having had to contend with and respond to the effects of the pandemic on its stakeholders both internally and externally. As at December 31, 2020, FHC Credit Union’s Total Assets of $15.15 Billion represented an increase of 10.91% over prior year’s $13.66 Billion, while the Group had Total Assets of $15.24 Billion representing an increase of 10.69% over prior year’s 13.77 Billion. With an increasing loan demand, the Group’s Net Loan portfolio increased by 5.36% or $477.57 Million over the prior year (2019) from $8.90 Billion to $9.38 Billion. Similarly, the Group’s Liquid Assets and Investments also grew by $875 Million moving from $3.73 Billion (2019) to $4.60 Billion (2020) as more funds became available based on significant deposit intake. Through our Member Assistance Programme, numerous offerings were extended to members to help to buffer the many challenges they experienced. There were waivers, moratoria, and other offerings particularly tailored to ensure that FHC was present to support any cash flow disruptions or any financial needs of its members. The Credit Union also executed their youth, community and member initiative as scheduled throughout the year. CEO Linton mentioned that these initiatives were scaled back due to the pandemic, but nevertheless FHC played its role in assisting to rebuild lives and the communities that were affected during the uncertain times. She further recognized her committed and dedicated staff who went the extra mile to find creative ways, such as the monthly webinars, to engage and stay connected with members.

She concluded by emphasizing that the Member Assistance Programme is still available to members and encouraged those who might be facing difficulties meeting their loan obligations to seek dialogue with the Credit Union to formulate solutions, and receive assistance to get back on track financially.

He is a resilient and dependable team member, who is both serviceoriented and results-driven. He is very enthusiastic about responsibilities, highly motivated and displays a very focused and committed approach to assigned duties. A superb service professional at heart, Norman has represented the Credit Union on several occasions at Rotary Club meetings. Through this venture, he has been able to network with other professionals with diverse backgrounds and address challenges in different communities. Let’s talk with our Awardee: Q: What is your leadership style and how do you go about managing your team? A: I use a Participative Leadership Style with a mix of a situational approach. I like to empower my Team and I value their input with constructive feedback and rewards. Q: Do you possess any special skills/abilities? A: The ability to handle delicate negotiations has helped me to successfully navigate several challenging situations in my personal and professional life over the years. Q: Words to describe you as a person and/or animal to describe you and why? A: I am professionally driven and one who will not settle for mediocrity. I am passionate about delivering excellent service. Having fun is important to me and I am not afraid to laugh at myself on occasions. Being emotionally balanced is a part of who I am. An animal that could best describe me would be the elephant. It is strong yet very gentle with a thick skin to navigate the uncertainties of life.

Norman Williams has been a member of the Credit Union team since December 2006. To date, he has held several positions including Credit Officer, Regional Micro Finance Officer, Acting Branch Manager and Branch Manager. In 2017, Norman was assigned to the position of Manager - May Pen Branch where, despite several challenges, he has progressively led the Branch to greatness. Of commendation, is his efforts during the COVID-19 pandemic in ensuring his team remained focused, motivated and productive.

Q: One word of advice you would give to a stranger (financial/life advice) A: I live by the mantra, “think big”. Never limit oneself and align yourself with a good mentor.

Q: What are the main or key motivators in your life? A: Family is my main motivator. This is the fabric that keeps me grounded while reaching for the stars. Q: What are some activities you engage in during your leisure time? A: I love nature walks as well as watching or participating in competitive sports.

As we fulfill our Foundation’s mission to promote youth development through educational funding, we are proud to continue assisting those in need and young persons in primary, secondary and tertiary schools.

A hearty congratulations to our 2020 Manager & CEO of the Year Awardee, keep on soaring to higher heights.

Over 100 students have already benefitted through our Primary Exit Profile (PEP), Oswald Thorbourne, and Renald Mason Scholarships, bursaries and grants. Let’s talk with two of our previous recipients Onica Smith (2017) and Munair Dicks (2020).

Q: Tell us about yourself? A: My name is Onica Smith, I am 15 years of age. Currently I am a student at the Immaculate Conception High School. Since I was a

Q: What would you encourage students who are experiencing financial challenges to do in paying their tuition? A: Students having financial issues who are doing extremely well should apply for grants or scholarships from different organizations. Someone might see your potential and want to assist.

young child I have always had a passion for taking care of others, I used to play doctor games and even try to nurse my family, this led to me developing a very keen interest in pursuing medicine as my career choice. I love music and also reading as it’s an escape for me from the real world. My favourite inspirational quote is “If at first you don’t succeed, try and try again. Q: How did you hear about the FHC GSAT Scholarship? A: I heard about the scholarship from my father who has been a member of the credit union for years now. He was told about it through the credit union. Q: How has this Scholarship benefited you? A: The opportunity to be one of the recipients of the FHC Scholarship has been a huge help in alleviating the financial stress on my parents, it has assisted us in paying the school fee and even helped with textbooks I needed to purchase. Q: Where do you see yourself in five years ? A: By God’s will in the next five years I would like to be in university studying Medicine, I know it will be a tough journey but it is a big dream of mine. Q: Given the impact of COVID-19, how have you managed your schooling and staying focused in this time? A: The COVID-19 pandemic has been extremely stressful as a student, from the work load to just online school in general. However, having a strong support system and constantly reminding myself of the things I want to have in life have been the things that keep me going. My family is very supportive and my friends and I help each other with whatever issues we may be facing online. I must admit staying focused for 8 hours a day around a computer screen has been hard but I try my best to gather notes and whatever I miss or do not fully understand I go over them at a later date.

Q: Tell us about yourself? A: I am an avid reader who loves to learn and apply new ideas. Our world is filled with so many amazing things and discoveries daily. It’s great to be able to know what exists and its application to our development. I am also a Christian and an active member of my local Seventh Day Adventist church where I participate in many departments such as Health, Youth Ministries, and Sabbath school. Through my church, I have been able to volunteer and help those in my community. It makes me happy when I can use the talents that God has given me to help improve the lives of others. Q: How did you hear about the FHC Tertiary Scholarship? A: I have been a member of FHC since a child, and one day while doing a transaction at the Kingston Gardens branch I enquired at the front desk about academic funding. I was told about the scholarship and encouraged to apply. Q: How has this Scholarship benefited you? A: The course I am pursuing is quite expensive, and it definitely helped in covering a part of my tuition. As a student, it is such a relief to know that your tuition is covered, even partially. The thought of being deregistered or barred from exams can be disheartening, stressful, and mentally perturbing. Receiving the scholarship granted me peace of mind, making it much easier to study. Q: Where do you see yourself in five years? A: Completing my course of study and working at the community level to improve public health and quality of life for all individuals. To me, it’s important to have a healthy population. Healthy populations improve economic productivity and reduce financial burdens. Healthy populations see the continuance of culture and meaningful social legacies. A healthy population means a solid foundation and a brighter future for Jamaica. Q: Given the impact of COVID-19, how have you managed your schooling and staying focused in this time? A: This pandemic has created much anxiety, stress, and disruption to activities which is a distraction when trying to achieve your goal. I have used the time to establish a better and stronger relationship with God. Reading His word and claiming His promises, gives me peace and clarity of mind to focus on my studies. Additionally, finding fun and safe activities aids in stress relief making studying much easier. The greatest challenge of online school for me is creating that academic environment. It’s quite easy to become distracted, procrastinate, and the temptation to sleep is great. Firstly, I try to study in different areas (verandah, outside, school) to reduce the monotony as a change in scenery can

help the mind to relax and retain more information. Secondly, it’s best to create a schedule and stick to it. Ensure that it is visible (large print, colourful font, whatever it takes for you to notice it) and update it regularly. Try to complete your assignments on time, even if it’s a little every day. This reduces the stress of trying to complete it close to the due date. Lastly, knowing that FHC saw the need, and invested in me, was a great motivation to work harder. I am extremely grateful for the opportunity to represent FHC in my studies. Q: What would you encourage students who are experiencing financial challenges to do in paying their tuition? a. With God’s help do your best in school. Most scholarships, bursaries, and grants have academic requirements, the better you do the wider your selection opportunities will be. b. Being genuinely active in church, volunteering at different organizations, or joining a club and giving back to your community is a great way of people getting to know who you are and vouching for your character. A good name goes a long way especially when you are involved in an activity you are passionate about. Through it, you may be able to receive assistance or directed to where it can be received. Above all keep in mind that as you grow, help those around you to grow. Your effort will not go unnoticed. In some cases, you may even be nominated for an award (Governor - General award, Prime Minister Youth award all of which have a component of volunteerism and assisting in the advancement of humanity or a specific field). c. If you have a skill, trade, talent, or brilliant business idea that you can earn from, now is the time to develop and use it. Truly develop that talent/ idea as this pandemic has shown that skills are still important. The market is open and it’s a great experience to have when applying for a job or even establishing a company of your own.

MEMBERS’ CORNER HOW ARE YOU COPING WITH THE COVID-19 PANDEMIC? “Dealing with the COVID-19 pandemic has been the most challenging experience in my lifetime. My mother had fallen very ill during the period and I was not sure where to turn. Being a member of the Credit Union, I visited and spoke with someone who told me that they were able to help and this gave me hope. Everything is not perfect now, but with the help I’ve received the burden has been less to carry.” - Norman Nelson

“At the start of COVID-19, I unexpectedly experienced a salary cut while finishing up my studies for a degree. So I wasn’t getting a salary and I had to finish paying my tuition in order to receive my certification, and my car insurance was due along with other bills, it was a very stressful period. I went in and spoke with a representative at FHC and explained the situation. They started working with me to provide the best assistance right away. At the end I was able to pay off my tuition and pay off some other bills. I’m truly grateful for First Heritage and the assistance they provided during this challenging period” - Betty Ann Redwood

Union’s philosophy of “Striving For A Yes” and its “Member at the Center” mantra. Through our partnership, members have been able to grow their business at a faster rate than they ever anticipated. You may be asking, how does the relationship and products really work? Let’s start by looking at the technical grants. When applying for a business loan, you will need a business plan and historical/ financial projections. These all come at a cost that can be a burden especially for a startup company. The DBJ provides these vouchers/grants for individuals to receive these services through approved partners totally free or heavily discounted. One such partner is the Jamaica Business Development Corporation (JBDC) that has been helping our members create their business plans over the years. FHC has maintained strategic alliance with these organizations to provide a value added product to our members.

First Heritage has built a robust partnership with the Development Bank of Jamaica (DBJ), through our role as an Approved Financial Institution (AFI). The DBJ has a mandate to facilitate economic growth and development by providing financial assistance (eg. low interest financing, technical vouchers/grants) to registered businesses through the use of AFIs and MFIs (Micro Financial Institutions). FHC has been lauded by the DBJ for being the most accommodating of its AFIs/MFIs. This accolade can only be contributed to the Credit

Continued from page 11 Providing collateral can be one of the biggest barriers to finance for a business. The DBJ has sought to provide a remedy through its Credit Enhancement Fund (CEF). The CEF allows businesses to purchase additional collateral much in the way you purchase insurance. Businesses are offered security through the DBJ by paying a 2% of Principal fee, on an annual basis. In return the DBJ provides up to 90% security of their loan principal (limited to $5M for startups). This innovative product has allowed our members to borrow more, leading to greater capital investment, job creation, and economic growth. Financing through the DBJ allows members rate of 8.25% per annum regardless of the collateral being used. At FHC we believe in the financial freedom of our members, and by extension the economic growth and stability of our nation. Our Mission Statement fully exemplifies our relationship with the DBJ, “To offer superior value to our members by providing innovative products and services, trough effective and efficient service delivery …” Jason Ferguson, Manager of the Micro and Small Business Loan Unit, stated that, “We don’t just recite our mission, but we live it. As the new leader of the unit it is my intention to grow this relationship to its fullest potential whilst seeking other opportunities that will challenge the status quo.” Ferguson commenced his role as Manager of the MSBU in January 2021 and has been a part of the FHC family since 2010. He has served in numerous capacities, the most recent being the Branch Manager of our Morant Bay location. With over a decade in banking, he possess a wealth of knowledge and skills in sales management, leadership and relationship building, which he credits to understudying and performing several functions within the retail banking network.

WHAT IS A CREDIT BUREAU? Before Credit Bureaus, banks requested collateral, in order to grant you a loan…not very convenient. However, today there are Credit Bureaus…agencies that collect comprehensive information on the loans and funding you have requested, obtained and maintained. They are essentially references on your financial reliability. If you request a loan, the bank will query the Credit Bureau’s database to understand whether you are keeping up with your payments and your current level of debt. Established in Jamaica in 2011, CRIF Information Bureau is a part of the CRIF Group by providing world-class credit and related value-added services in Jamaica and the Caribbean. What does a credit bureau know about you? A Credit Bureau receives information from financial institutions on the loans, mortgages and credit cards you have requested and on those that have been approved or refused. This is not a black list or a list of unreliable payers, the credit bureau simply collects objective information that can be positive or negative, depending on how you keep up with payments. This system helps broaden access to credit removing prejudice against people the credit institution doesn’t know. The decision of whether to approve or refuse your loan application is not made by the bureau, it is made by the institution you are borrowing from…basically, the credit bureau certifies your credit history. Why is good credit important? Your credit score affects your ability to obtain credit in the future. Your credit is defined by how you’ve paid (or not paid) your bills in the past. Many businesses - mortgage lenders, utility providers, and even employers - use your credit history to predict your future financial responsibility. If you have good credit, banks and lenders are more likely to approve your credit application. On the other hand, negative information such as late payments or missed payments in your credit history may prove difficult to get approved for a loan. How is your privacy protected? Your data is only available to you and the bank or financial institution you have contacted for a loan.

How to obtain a credit report? A consumer is entitled to receive a free credit report from the credit bureau in each calendar year on submission of a written request. You may find it useful to check your credit report before applying for a new loan. If there are mistakes on the report, you may file a dispute with the bureau. Once a dispute is filed with the bureau, the bureau will take the steps to ensure that the mistakes are corrected no later than fourteen days after the dispute has been made.

ESTATE PLANNING - WILL WRITING

Will Writing

• If you are an unmarried couple, ensure that your partner is provided for. • Choose your Executor who will handle the winding up of your estate in the way you have requested. If there is no Will, a family member or other party with an interest may have to petition the Court to become Executor. • Avoid lengthy and costly court action • Realize savings on inheritance taxes. • Give opportunities to others by passing on your possessions.

Contrary to popular belief, Estate Planning does not begin with the writing of a Last Will & Testament (Will). It also involves matters such as financial, tax, medical and business planning. However, drafting a Will is an important first step in the estate planning process. Making a Will A large percentage of the populace equate making a Will with death and, as a consequence, refrain from doing so. But proper estate planning allows for the determination of how one’s assets will be handled before and after death.

Name Beneficiaries Any bank accounts or retirement plans should have beneficiaries named to them. Naming beneficiaries makes the account automatically payable on death to the beneficiary, again allowing the family to skip the probate process.

A Will addresses the following issues in the event of death or the inability to take care of oneself: i) Who will make medical decisions. ii) How the wellbeing of minor children and other family members will be taken care of. iii) How assets will be distributed. Advantages of Making A Will There are many advantages of making a Will. By choosing to make a Will you can: • Choose who you wish to inherit your assets rather than this decision being made by government via the laws of intestacy. (i.e. the laws governing the distribution of the assets of one who dies without making a Will) • Have peace of mind knowing that your estate will be divided as you wish and you can ensure that the people you choose will administer your estate.

THE POWER OF MEDITATION AN AFFORDABLE WAY TO MANAGE STRESS

Let’s look at the actual facts of meditation and why it can be considered important or beneficial to our well-being.

We live in a fast-paced society that has us filling many roles and meeting many challenging deadlines, causing unwanted stress. Stress can be very debilitating as it affects our body with a reaction as simple as a headache; our thoughts, making us unable to concentrate on a situation or matter at hand; and our behaviour, causing us to make irrational decisions. Numerous studies highlight stress as a high contributor to health problems such as high blood pressure, obesity and diabetes. These conditions, in turn, can increase the risk of causing a heart attack or stroke. In a world where many of us are managing several responsibilities, stress management is necessary as it provides healthy coping strategies to make the mind calmer and more focused.

What is meditation? Meditation is really about resting the mind and allowing you to be more aware of yourself in the present moment. Dr. Deepak Chopra, co-founder of the Chopra Centre of Wellbeing, states: “Meditation is a practice that takes us beyond the noisy chatter of the mind into a place of stillness and silence. It doesn’t require a specific spiritual belief, and many people of many different religions practice meditation without any conflict with their current religious beliefs. They meditate in order to experience inner quiet and the numerous physical and mental health benefits of the practice - including lowered blood pressure, stress reduction and restful sleep.”

Meditation is one of the most affordable method of stress management. Many will say they don’t know how to meditate because, “It’s so hard to concentrate on just breathing”; “I can’t stop my thoughts or my mind from running”; “I don’t have the time”; “Meditation is not accepted within my religious practices”. Opposing these views are the fact that we live in a culture that demands us to keep moving and not actually spend time to nurture our inward self.

Why is it important? There are tons of medical and psychological studies that discuss common benefits of meditation. We share some below with you: - Reduces stress: Meditation provides a sense of peace. Many studies have found that it reduces stress significantly. Shapiro, et al, (2005) submitted a study of Mindfulness - Based Stress Reduction for Health Care Professionals in the International Journal of Stress Management and found increasing quality of life and self-compassion in test subjects who added mindfulness meditation.

- Improved Productivity: Meditation helps to lower stress levels, allowing better memory for tasks and better decision-making. - Improved Focus: Studies show that meditation increases cortical thickness in areas related to paying attention, positive emotions and self-control. This allows you to stay focused on tasks longer. - Helps us to groom emotional intelligence: Meditation brings forth positive emotions, leading to increased mindfulness, compassion and purpose in life. Meditation might be the most affordable choice for you to practise self-care in a truly beneficial and self-fulling way. Pursue further research to make a decision on whether this method of stress management is right for you.

For example, say you take out a $10,000 loan with a 5% interest rate. You pay the loan back once a month for five years. The total amount you pay back is $11,322.74. The principal paid was $10,000 and the interest paid was $1,322.74.

1. Debt consolidation - Consolidation means that your various debts, whether they are credit card bills or loan payments, are rolled into a new loan with one monthly payment. If you have multiple credit card accounts or loans, consolidation may be a way to simplify or lower payments. But a debt consolidation loan does not erase your debt. You might also end up paying more by consolidating debt into another type of loan.

5. Principal - In the context of a loan, the principal is the initial amount issued to the borrower - not including any interest owed during repayment. If you take out a loan for $10,000, the principal amount is $10,000. However, when you’re paying back the loan, you’ll see that your payments are going towards the principal amount and the interest.

2. Share Account - The credit union term for a savings account. This is the most basic type of account you can open at a financial institution. At credit unions, these accounts are called share accounts because they represent your stake in ownership as a member. 3. Equity - This is ownership of assets that may have debts or other liabilities attached to them. Equity is measured for accounting purposes by subtracting liabilities from the value of the assets. 4. Interest - Interest is the fee you pay for borrowing money. When you take out a loan, you’ll not only owe the loan amount back to the issuer – but also an additional percentage of money. This additional percentage is the interest.