2019 Annual Meeting

2019 ANNUAL REPORT

2020 AGENDA VERIFICATION OF QUORUM Catherine Paraschos Chairperson CHAIRPERSON’S REPORT Catherine Paraschos PRESIDENT’S REPORT Keith Kearney APPROVAL OF MINUTES OF 2019 MEETING Catherine Paraschos REPORT OF THE TREASURER Allan Griffin, Jr.

VISION STATEMENT

InvesTex Credit Union will develop lasting relationships that promote our members’ quality of life and financial well-being.

MISSION STATEMENT

InvesTex Credit Union is dedicated to the highest quality service for its members, while maintaining a solid financial foundation. Our core values reflect the strong character of our members and our growing relationship with them.

OPERATIONAL CHANGES •

•

• UNFINISHED BUSINESS Catherine Paraschos NEW BUSINESS, OTHER THAN ELECTIONS Catherine Paraschos ELECTION OF DIRECTORS Teresa Dossman ADJOURNMENT Catherine Paraschos

• • •

• • •

Risk Management, Fraud Prevention and Loss Mitigation position created. Software has been significantly expanded to monitor online activity, including origin of access (IP Address), Internet Service Provider (ISP) and device type.

Central Lending was formalized and began operations mid-February in our continued effort to deliver fast, high quality loan decisions to our membership.

The Money Market Deposit Account was successfully rolled out on April-2019 providing members higher quality access and high yields.

The credit union has partnered (10/19) with Member First Mortgage improving access to low rates, low closing cost home purchases.

The credit union’s Record Management System was migrated to a virtual environment.

Successfully expanded Digital Wallet for our debit card program. This includes Apple Pay, Google Pay, Samsung Pay, Fitbit Pay, and Garmin Pay. Expanded the 24/7 Automated Phone System.

Completed the redesign and reissue of credit union Debit Cards.

The credit union continues to evaluate and update facility and software systems access and controls to ensure the integrity, security, and privacy of member information.

BOARD OF DIRECTORS TERM EXPIRATION DATES AS OF 12/31/2019

TERESA DOSSMAN (Position 6) Nominating Committe Chair April 2022

CATHERINE PARASCHOS (Position 2) Chairperson April 2021

WILLIAM “BILL” LAKIN (Position 4) Director April 2020

DR. BOB WILLIAMS (Position 3) Vice Chair & Building Committee Chair April 2021

MANAGEMENT

DOROTHEA PICKENS (Position 5) Secretary & Supervisory Committee Chair April 2022 ALLAN GRIFFIN JR. (Position 9) Treasurer & Compensation Committee Chair April 2020 DAN CALVERT (Position 1) Director April 2021 STEPHEN HAVEMANN (Position 7) Technology Committee Chair April 2020 PHYLLIS KENNEDY (Position 8) ALCO Committee Chair April 2020

KEITH KEARNEY President/CEO DEBRA WEIR Executive Vice President JANA (ANDERS) GONZALES Vice President Business & Community Development DAVID DURHAM Vice President Branch Administration MARTHA MIRELES Vice President Lending KELLY PAYNE Vice President Human Resources GAIL RUSSELL Vice President Operations JOHN TOMSON Vice President Information Technology

2019 Annual Meeting Minutes April 16, 2019

Directors present were Catherine Paraschos, Dorothea Pickens, Teresa Dossman, Allan Griffin, Dr. Bob Williams, Phyllis Kennedy, Stephen Havemann and Dan Calvert. Committee Member William (Bill) Lakin Jr. attended as did the credit union management team, various employees and members of the credit union. Special guest and former Advisory Committee member B. Jack Wilson and wife Ann were in attendance.

(Director James Woodward was unable to attend.)

Jana Gonzales, VP of Business and Community Development, welcomed members in attendance and introduced the Board of Directors and CEO. Ms. Gonzales led the attendees in the Pledge of Allegiance, the Texas Pledge of Allegiance and the invocation, after which dinner was served.

Later, Ms. Gonzales announced the six scholarship winners: • Alexis Chavez – a student in the Humble ISD plans to attend Texas State University and major in Business; • Cristobal Contreras – a student in the Houston ISD plans to attend University of Texas at San Antonio and major in Computer Science; • Jada Ellis – a student in the Aldine ISD plans to attend Lone Star College and major in Biology. Jada is also the recipient of the Ellis & Clydine Kuehn Scholarship; • Rani’ya Grays – a student in the Houston ISD plans to attend the University of Houston and major in Biology specializing in Dentistry; • Nathan Kuehl – a student in the Conroe ISD plans to attend the University of Minnesota at Duluth plans to major in Chemical Engineering; • Sarah Plaxco – a student in the Tomball ISD plans to attend the University of North Texas and major in Political Science Each scholarship winner was introduced to the members in attendance and presented their award by the Chairperson of the Board, Ms. Catherine Paraschos and the President/CEO, Mr. Keith Kearney. A group photo was taken after all the winners were presented.

The annual meeting was officially called to order at 7:20 p.m. The Board Chairperson, Catherine Paraschos, ascertained that a quorum was present as required. She recognized her fellow Board of Directors, the credit union staff and the members in attendance. Ms. Paraschos then called upon Mr. Keith Kearney, CEO, to present the President’s Report.

Prior to giving his report, Mr. Kearney expressed his appreciation to the credit union Board for their service and support. He formally introduced each member of the management team to the membership as well as requesting the staff to stand for recognition. Mr. Kearney then covered the credit union’s accomplishments in 2018: • Remained a committed partner to the community and education foundations served by the credit union; • Completed the credit card conversion from Vantiv to PSCU in August 2018. Converting to PSCU allowed the credit union to offer Digital Wallet (Google, Samsung & Apple Pay) as a benefit to carry the card; • Replaced ATMs at Cypresswood, Aldine and Tomball branches and upgraded all others to be EMV-compliant; • Transitioned to a virtual server environment; • Implemented various other technology-related controls.

Mr. Kearney noted the credit union ended 2018 with $202 million in assets and net income of $1.1 million.

Ms. Paraschos presented the Annual Meeting Minutes from 2018 for review.

Upon motion by Nate Kuehl, seconded by Gary Hugo, it was unanimously VOTED: to accept the minutes of the 2018 Annual Meeting as presented.

Next, Ms. Paraschos called on Mr. Allan Griffin to present the Treasurer’s Report.

Mr. Griffin noted growth for 2018 was flat except for home equity and vehicle loans. Total loans to members were $103,492,486 and total assets topped $200 million to end the year at $201,735,645. In addition, the credit union’s capital position remained strong at 10.33% as of December 31, 2018. Growth in membership and assets is expected throughout 2019.

In closing, he advised the members that credit union continued to be a strong and efficiently managed institution as detailed in the Annual Report.

Upon motion by Allan Griffin seconded by B. Jack Wilson, it was unanimously VOTED: to accept the Treasurer’s Report as presented.

Ms. Paraschos asked if there was any Unfinished Business. There was none.

Ms. Paraschos asked if there was any New Business (other than Elections). There was none.

Ms. Paraschos introduced Mr. Dan Calvert, Committee Chair, to give the Nominating Committee’s Report.

Mr. Calvert first thanked the credit union management as well as his fellow Committee Members, Ms. Catherine Paraschos and Dr. Bob Williams for their contribution to the nomination process. Mr. Calvert then introduced the nominees being presented for election: Mr. James Woodward (Position #4), Ms. Dorothea Pickens (Position #5), and Ms. Teresa Dossman (Position #6).

Mr. Calvert explained that all nominees had met the qualifications to be elected to the Board and confirmed there were no nominations by petition as required by the election rules.

Therefore, upon motion by Dan Calvert, seconded by B. Jack Wilson, it was unanimously VOTED: to accept the election of the nominees as presented.

Ms. Paraschos called for the adjournment of the Annual Meeting at 7:50 p.m.

Upon motion by Teresa Dossman, seconded by Dorothea Pickens, the meeting was declared adjourned at 7:50 pm.

Treasurer’s Report The current COVID-19 crisis facing the world should remind us of the importance of the fact, that InvesTex Credit Union is people. People helping people through a cooperative financial institution. And because of who we are and what we are, the goal of our organization is to “make life better” for our members, including being available through multiple channels for all of the services we offer and providing not just safety for our financial lives but for the health of our members and employees.

In 2019, with outstanding leadership, dedicated employees and loyal and supportive members, InvesTex Credit Union continued our journey towards that goal. In a year of continued uncertainty worldwide, we stand committed to our guiding principles and to serving you. You can count on us! Every day we are looking for new and better ways to protect our members security. These moves demonstrate a serious and ongoing commitment to our membership and the communities we serve. Although we don’t have any new locations on the horizon for 2020, we do expect to continue to grow in membership and seek new ways to provide our great services and products to new communities as we meet the needs of the InvesTex family.

Growth for 2019 was strong for Home Equity and Vehicle loans which led the way with 9.01% and 3.73% growth over 2018 respectively. Certificate of Deposits (Regular and IRAs) grew 59.4%. The credit union continues to expand mortgage and home equity lending by providing low closing costs, low loan rates and flexible terms. The Credit Union ended 2019 with $222 million in assets (10.2% growth), $105 million in loans (1.46% growth), $97.8 million in investments and $200.5 million in member deposits. Total Equity grew 4.76%.

InvesTex Credit Union enlisted the services of CliftonLarsonAllen LLP to conduct the Supervisory Committee Annual Review of the books and records of the credit union for the12-month period ended March 31, 2019. The review was accomplished in accordance with the National Credit Union Administration Rules and Regulations and the Federal Credit Union Act. The Texas Credit Union Department also performed an examination of InvesTex Credit Union as of December 31, 2019, and we are pleased to report that the credit union continues to be a strong and efficiently managed institution.

As always, we must thank each of you for your continued support and involvement with our credit union.

When you are planning to buy a vehicle or look for a new home, remember to check with InvesTex first. Your loyalty is a big part of our success and it should not end there. Let your friends, neighbors, relatives and coworkers know how valuable your membership is to you. When you have an organization you trust to provide quality products and services, shouldn’t you be spreading the word.

In a year with so many changes, we especially want to thank the InvesTex staff for their efforts in making life better for you. Our common goal is the financial success of every member of the credit union and every employee from CEO to front line Customer Service Representative shares that goal. We believe our credit union is strongest when our members are financially sound and we will continue “Investing in Texas by Investing in You!” Thank you, Allan Griffin, Jr. Treasurer

Assets (in millions) $230

Members (in thousands) $222.3

$220 $210

$200.2

$200 $190

$201.7

$186.2

$180 $170 $160

2016

2017

2018

2019

26 26 25 25 24 24 23 23 22 22 21 21

Capital to Assets Ratios (%) 13%

25.4

12% 11% 23.0 22.4

23.0

10.12%

10%

10.33% 9.78%

9.74%

9% 8%

2016

2017

2018

2019

7%

2016

2017

2018

2019

STATEMENT OF CONDITION As of December 31 ASSETS

2019

2018

LOANS TO MEMBERS 105,001,111 103,492,486

ALLOWANCE FOR LN LOSSES (851,371) (796,065)

TOTAL ACCOUNTS RECEIVABLE 190,699 98,224

CASH IN BANK/ON HAND 1,703,144 2,220,472 INVESTMENTS 97,809,428 79,245,316

ALL OTHER ASSETS 18,488,906 17,475,213 TOTAL ASSETS 222,341,917 201,735,645 LIABILITIES ACCOUNTS PAYABLE 1,783,624 2,047,825 TOTAL LIABILITIES 1,783,624 2,047,825 EQUITY MEMBER SHARES 200,575,137 179,971,695

MEMBER CAPITAL 19,983,156 19,716,126 TOTAL EQUITY 220,558,293 199,687,821 LIABILITIES + EQUITY 222,341,917 201,735,645

OPERATING STATEMENT As of December 31

INCOME

INCOME FROM LOANS 5,233,462 5,075,798

INVESTMENT INCOME 2,171,177 1,824,629 OTHER INCOME 4,206,622 4,168,259 TOTAL INCOME 11,611,262 11,068,687 EXPENSES OPERATIONS EXPENSES 8,544,922 8,313,699

LOAN LOSSES 835,813 843,535 OTHER EXPENSES 183,361 266,357 TOTAL EXPENSES 9,564,097 9,423,591 NET BEFORE DIVIDENDS 2,047,165 1,645,095 DIVIDENDS

TOTAL SHARES 46,513 47,190

TOTAL CHECKING 57,637 54,484

TOTAL IRA SHARES 94,710 71,358

TOTAL IRA 94,247 50,506 TOTAL CERTIFICATES 768,076 420,973 TOTAL DIVIDENDS 1,061,183 644,511 NET AFTER DIVIDENDS 985,982 1,000,584

GAIN (LOSS) INVESTMENTS (10,604) 0

TOTAL NON-OP INC/EXP (10,604) 0 NET INCOME 975,378 1,000,584

LOCATIONS Aldine Branch

Atascocita Branch

NLW-Heights Branch

Cypresswood Branch

Tomball Branch

FM1960 Branch & Corporate Office

905 Aldine Bender Houston, TX 77032

230 Cypresswood Dr. Suite H Spring, TX 77388

5212 Atascocita Rd. Humble, TX 77346

24922 Tomball Pkwy Suite 100 Tomball, TX 77375

HOURS OF OPERATION Lobby Hours

1614 N. Durham Houston, TX 77008

8404 FM 1960 Bypass Rd. W Humble, TX 77338

CONTACT INFORMATION Office

Monday-Friday (except Thursday) 8:30 AM to 5:00 PM

(281)449-0109

Thursday 9:00 AM to 5:00 PM

(866)449-0109

Saturday 8:30 AM to 3:00 PM

Fax (Corporate)

Drive-Thru Hours

Toll Free

(281)446-2298

Monday-Friday 8:30 AM to 6:00 PM

Audio Response

Saturday 8:30 AM to 3:00 PM

Toll-Free Audio Response

eBranch

Monday-Friday 8:30 AM to 6:00 PM Saturday 8:30 AM to 3:00 PM

(281)442-4917 (866)298-4917

Visit Us Online InvesTexCU.org

Email

Info@InvesTexCU.org

(Please see website for revised hours of operation due to Coronavirus/ and latest updates)