Collins Community Credit Union Annual Report

Federally Insured By NCUA

77 Annual Report th

2016 ASPIRE. IGNITE. ACHIEVE.

1

2

Letter from OUR LEADERS

A MESSAGE FROM OUR CHAIRPERSON AND CEO MARSHA A. SCHULTE / STEFANIE RUPERT Providing our members with ways to aspire, ignite and achieve is an important mission.

We are pleased to report that 2016 was a year of strength and growth. The 2016 year ended with Net Income of $3.38 million and Return on Assets of .337%. Our Net Worth Ratio was 8.53%, positioning Collins as a well-capitalized Credit Union. We reached a milestone when our total assets surpassed $1 billion, a sign that we are keeping strong and steady and growing our high quality assets.

Growth was steadfast in 2016. We opened a full-service branch in Cedar Falls just down the street from our original mortgage loan production office. We partnered with Des Moines grocery store, Price Chopper, and opened three in-store branches, conveniently located on Ingersoll Avenue and Merle Hay Road in Des Moines, and 86th Street in Johnston. In addition, we opened a loan production office in Clive.

Nearly 34% of our members are using Online Banking and our members are starting to increase usage of Mobile Deposit.

We had over 8,200 members use Mobile Deposit last year. As we continue to expand into new markets, like Dubuque, Cedar Falls, Des Moines, and Iowa City, electronic services become an integral part of the member experience.

Our Audio Response Telephone System handled over 86,000 calls in 2016, from general account inquiries to actual financial transactions. No matter the method, we provide a variety of ways our members can access their account information and perform transactions to make daily banking easier.

Our vision at Collins is to ignite the financial futures of our employees, members, and the communities we serve by offering our members affordable financial products and services. Through financial wellness check-ups, we are able to show our members where we can save money and how to do it. In 2016, we saved 830 members a total of over $20 million in loan interests and fees.

In addition to providing our communities with sound financial products and advice, we are proud to be involved through financial and in-kind donations to our local charities, as well as provide many volunteer hours. We support organizations like March of Dimes, JDRF, Tanager Place, Four Oaks, Boy and Girls Club, the Cedar Valley Humane Society and many more.

Not only do our employees give of their time and talent, they also personally contribute to our donation to the United Way in response to its annual campaign, as well as other internal fundraising efforts throughout the year.

We are proud of our accomplishments and look forward to continuing to strengthen our communities not only in Cedar Rapids, but also Cedar Falls, Des Moines, Dubuque, Iowa City, Marion, and North Liberty. With strong leadership and staff members, we are confident that we will have great successes in 2017.

Thank you for allowing us to be your financial partner.

Marsha A. Schulte, Chairperson

Stefanie Rupert, President/CEO

Committee Overview

COMMITTEE OVERVIEW Our volunteer Committees consist of Executive, Credit and Audit. These committees oversee the professional staff to ensure the validity and accuracy of the representation of the Credit Union.

EXECUTIVE COMMITTEE

The Executive Committee manages the operations of the Board of Directors. They are responsible for seeing that the affairs of the Credit Union are operated according to the laws of the State of Iowa.

CREDIT COMMITTEE

Collins Community Credit Union is consistently able to provide for the borrowing needs of its members through optimal product offerings and credit.

Increased confidence in the economy and lower gasoline prices motivated members to update their vehicles as well as make other major purchases and home improvements that created the necessity for financing.

The Credit Committee continues to review and update financial policies and risk management practices in order to stay current with industry trends and protect our exposure to loss.

AUDIT COMMITTEE

Collins Community Credit Union’s Audit Committee works with internal auditors to monitor the internal controls of the Credit Union and ensures that the Credit Union is operating within the guidelines and policies set forth by the governing bodies.

The committee also communicates with external auditors and examiners who monitor whether the Credit Union is adhering to regulations and guidelines established by all applicable governing bodies.

The accounting firm of Doeren Mayhew conducted the annual financial statement audit. A copy of the Independent Auditor’s Report may be viewed on our website, www.collinscu.org.

4

5

CHAIN OF COMMAND

COLLINS MANAGEMENT President/CEO - Stefanie Rupert

V.P. Human Resources - Jessica Long

Chief Financial Officer - Ben Wickum

V.P. Consumer Lending - Bruce Taylor

Chief Lending Officer - Scott Frost

V.P. IT & Facilities - John Lewis

Senior Vice President - Jack Emkes Senior Vice President - Sandra Vaughan

Operations Director - Tracey Koenig

V.P. Retail - Duane Dee

Marketing Director - Mai-Linh Hoang

BOARD OF DIRECTORS EXECUTIVE COMMITTEE Marsha Schulte - Chairperson Pete Seyfer - Vice Chairperson Bill Kooistra - Financial Officer Tom Manor - Secretary

CREDIT COMMITTEE Pete Seyfer - Chairperson Deke Morrow - Secretary Sue Nelson

AUDIT COMMITTEE Jon Buse - Chairperson Lisa Gaspar Thompson - Secretary Jennifer Ruppert 6

ANNUAL MEMBERSHIP MEETING & NOMINATING Pete Seyfer - Chairperson

Using your voice

ADVOCACY Credit Unions are a special place to handle your finances, and to keep it that way, it is important to be educated and promote proper regulations to better serve our communities.

Credit Unions are heavily regulated by the state legislature and US Congress. Our ability to provide services to members is dependent on lawmakers being supportive of Credit Unions and not creating barriers to exceptional service. Iowa Credit Unions are financial partners for more than one million Iowans! What does that mean? We have to proactively work on legislation that helps us better serve you, our members, and actively combat any attempts by bank competitors to remove the Credit Union choice from Iowa consumers.

Every year, bankers lobby lawmakers to make it harder for Credit Unions to grow and serve Iowans. In particular, bankers often advocate to tax larger Credit Unions the same as banks, which would be a tax increase on our members. A Credit Union is a Credit Union regardless of size; we are all not-for-profit financial institutions.

With your help we can advocate effectively and continue to earn the support of policymakers so Credit Unions can continue to thrive and serve our members.

You can find more information at www.IowaCreditUnions.com/StrongerTogether. You have a voice. You can take action by signing up for the advocacy database to be informed when important Credit Union legislation is pending at the Capitol, as well as sending an email or letter to your members of Congress when specific action needs to be taken.

As Advocacy Champions for Collins Community Credit Union, we urge you to take an active part in making sure Credit Unions will continue to thrive and be able to provide you a not-for-profit choice in the financial services marketplace.

Scott Frost Chief Lending Officer

Mallory Albert

Branch Manager Johnson Ave Hy Vee Branch

Logan Kriz-Knight

Branch Manager Wilson Ave Hy Vee Branch

CONDENSED FINANCIAL STATEMENT CONDENSED STATEMENT

OF FINANCIAL CONDITION

Years Ended December 31, 2016 and 2015 (unaudited) 2016

2015

$ 1,082,016,983

$ 924,526,374

993,769,748

840,231,254

Assets Total Assets Liabilities and Members’ Equity Liabilities Members’ Equity Total Liabilities and Members’ Equity

88,247,235

84,295,120

$ 1,082,016,983

$ 924,526,374

CONDENSED STATEMENT

OF INCOME AND EXPENSE

Years Ended December 31, 2016 and 2015 (unaudited)

A copy of the Independent Auditor’s Report may be viewed at any of our locations or on our website, www.collinscu.org.

Interest Income Total Interest Income

2016

2015

$ 35,243,857

$ 31,029,510

7,140,692

5,567,372

$ 28,103,165

$ 25,462,138

Interest Expense Total Interest Expense Net Interest Income Provision For Loan Losses Total Provision For Loan Losses Net Interest After Provision For Loan Losses

2,076,171

1,890,897

$ 26,026,994

$ 23,571,241

14,841,472

11,936,113

$ 37,487,372

$ 30,178,196

$ 3,381,094

$ 5,329,158

Non-Interest Income Total Non-Interest Income Non-Interest Expense

8

Total Non-Interest Expense Net Income

TOTAL ASSETS

2015

$924.5 Million

2014

$825.6 Million

2013

$737.9 Million

2012

TOTAL LOANS

$1.082 BILLION

2016

$726.9 Million

$829.3 Million

2016 2015 2014 2013 2012

$668.1 Million $591.8 Million $522.8 Million $477.8 Million

9

The Credit Union difference

THE CREDIT UNION DIFFERENCE “Why join a Credit Union instead of a Bank?”

The reasons may not always be clear, but once you know the difference, the choice is obvious!

VE A H YOU ICE! A VO

Credit Unions were founded in the mid 1800’s on a “people helping people” philosophy

Not-for-profit financial cooperative owned and governed by our members who live and work in the local community

Democratically governed by our members Overseen by volunteer Board of Directors Earnings go back to our members through better rates and lower fees, not to shareholders

Checking and savings accounts Loans and credit cards Wide variety of financial products and services One member’s savings becomes another member’s loan All members are insured by the NCUA to at least $250,000 in coverage

Value community 1,587 number of volunteer hours in 2016

Collins Community Credit Union Values Excellence | Community | Fun | Integrity and Membership Focused Igniting financial futures

Collins in the Community

COMMUNITY The “people helping people” philosophy is at the core of the Credit Union movement, and at Collins Community Credit Union, we work hard each and every day to live our brand values and serve the communities where we live, work, and play.

In 2016, we kicked off the year volunteering at the Special Olympics Mid-Winter Games in Iowa City. In April, we celebrated the retirement of our former President and CEO, Rick Benhart, and sent him out in style with a pie in the face to raise money for the Juvenile Diabetes Research Foundation. As spring came, we marched for the March of Dimes in Cedar Rapids, Iowa City, and Dubuque, and the Cedar Rapids area retail managers took an afternoon off to volunteer their time at Camp Courageous in Monticello.

The Collins Community Action Committee celebrated the unofficial start of summer by hosting their annual Summer Charity Cookout at the Collins 42nd Street branch in Cedar Rapids, raising $883.00 for Community Hands.

Our summer didn’t slow down as we participated in CelebrAsian in Des Moines and Junior Achievement’s Volley-4-Education volleyball tournament in Cedar Rapids. We hosted a community appreciation day at our C Street branch, walked in the Cedar Rapids Freedom Festival parade, enjoyed fantastic music at the Friday night Concert Series, had a blast at Fondo Fest in Cedar Falls, and indulged in good eats at Taste of Dubuque. By the end of the summer, we opened four new branches in Des Moines and Cedar Falls.

As summer turned to fall, a devastating flood hit Cedar Falls and Cedar Rapids. In true Collins spirit, our employees were out filling sandbags and helping their co-workers and neighbors protect their homes and belongings. In October, Collins employees participated in the Especially for You walk in Cedar Rapids, the Light the Night walk in Iowa City, and our 42nd Street branch hosted their annual Halloween event.

Collins closed out the year by ringing bells for the Salvation Army on Giving Tuesday, sponsored a Christmas tree in Blank Children’s Hospital’s Festival of Trees, collected for Toys for Tots, and adopted 31 kids for the Holiday Project at Four Oaks.

As we reflect back on 2016, we’re thankful to have the opportunity to expand into new markets and help make a positive impact in our communities.

12

“WE WERE BORN TO UNITE WITH OUR FELLOW MEN, AND TO JOIN IN COMMUNITY WITH THE HUMAN RACE.” – CICERO

13

THE FUTURE IN FINANCE

EMERGING LEADERS At Collins Community Credit Union, our goal is to provide our team opportunities to grow within the company and evolve as leaders.

KYLE SOMMERS

Personable, Reliable, Team-Player, and Goal-Oriented Kyle currently resides in North Liberty, Iowa with his wife, Kylene, and they are busy preparing to become first-time puppy parents in June.

He graduated from Wartburg College with a degree in Psychology and enjoys being active in the workplace and community. For fun, Kyle enjoys cheering on the Cubs and Hawkeyes, whether it be attending games or tailgating in Iowa City. He also enjoys traveling to new places with his wife, friends, and family.

Kyle loves Collins because he works with great people, has wonderful flexibility, receives support from his team, and has access to the resources he needs to perform his job. He also appreciates the Credit Union’s commitment to community involvement.

It’s an honor for him to be surrounded by co-workers and members that genuinely care about the communities where they live and work.

As the Marketing Analyst, Kyle researches industry trends and data and works with numbers to determine the effectiveness of marketing campaigns. He’s involved with training employees and is the administrator of Net Promoter, a software program that allows the membership a chance to be heard, to give feedback, and to voice their concerns. Kyle enjoys observing the success stories and seeing the direct impact of Credit Union efforts.

Kyle is currently a member of the Collins Community Action Committee, served as a Credit Union Brand Champion for the Marketing Department, and participated in the 2016 Iowa Innovation Group sponsored by the Iowa Credit Union League and Filene Research Institute. Kyle enjoys playing softball, basketball, and sand volleyball with co-workers and friends. When he’s not active with sports, you can find him fishing in North Eastern Iowa’s trout streams or at the pond near his home.

14

“IF YOUR ACTIONS INSPIRE OTHERS TO DREAM MORE, LEARN MORE, DO MORE AND BECOME MORE, YOU ARE A LEADER.” – JOHN Q. ADAMS

THE FUTURE IN FINANCE

BEN KEENEY

Passionate, Reliable, Positive, and Knowledgeable Ben has been working for Collins Community Credit Union for almost 6 years. He started as a teller, and has transitioned to the Commercial Services Department where he serves as a Credit Analyst. He looks forward to growing in the Credit Union Industry.

Ben enjoys working at Collins because of all the great people he works with. He said, “At Collins, we have a fun environment that makes us feel valued as employees.

Everyone is willing to help each other and give the member the best service possible.”

What drives Ben to come to work each day is serving Collins Community Credit Union’s business members. Ben enjoys watching the Credit Union’s business members succeed and takes pride in knowing that Collins is helping them achieve their dreams.

In 2016, Ben was selected as a CRASH participant for the Iowa Credit Union Convention.

For him, this was a great experience, and he is grateful for the Credit Union allowing him the opportunity to be involved in this event. When Ben’s not at his desk or visiting local business members, he participates in the annual March of Dimes walk in Cedar Rapids, and plays on the Collins softball and volleyball teams. Ben is excited to continue to grow professionally and become more involved within the Credit Union.

SHANNON MORRIS

Encouraging, Driven, Helpful, and Optimistic Currently, Shannon serves as a Member Service Consultant at Collins. For her, having the opportunity to help members learn and grow provides her purpose in her role. Being a naturally driven person allows her to take on new challenges and responsibilities while encouraging the growth of others.

Shannon loves working for Collins because she feels like there are endless opportunities to explore new areas and advance her career. She came to Collins with no previous financial background and has become confident and knowledgeable in her role as a Member Service Consultant. Shannon appreciates the opportunities provided by the Iowa Credit Union League, attended the 2016 Iowa Credit Union Convention, and was selected to represent Iowa as a CRASH participant at the 2016 CUNA Lending Council Conference. Shannon said, “These events were tremendous learning opportunities and sparked my passion for the Credit Union movement as well as my future at Collins.”

For Shannon, each day at Collins brings something new, which keeps her interested and excited to come to work every day.

She loves that Collins puts a strong focus on growing their employees and feels that that’s extremely encouraging because she knows that her co-workers support her and care for her. The feeling of being valued makes her want to do everything she can to exceed the expectations set for her.

In her free time, Shannon volunteers at Families Helping Families, a foster organization in Cedar Rapids. Families Helping Families assists children in the foster care system in Iowa in many aspects of their lives. Shannon has actively volunteered for this organization for the past three years and has seen first-hand the impact that even the smallest things can make in the life of a foster child.

With you all the way

STAGES OF LIFE

Coverdell Education Savings account, HSA for medical bills

Wealth Management

Kirby/Kids Accounts

COLLINS CREATES PRODUCTS TO HELP YOU THROUGH THE MANY STAGES OF YOUR LIFE Advantage Checking and Savings Accounts

Auto Loan for those new drivers

Partner with Iowa Student Loans to provide access to private Student Loans

16

Watching your wealth grow

INVESTMENT SERVICES We provide the right investment services for developing your own solid financial investment strategy to achieve your financial goals.

COLLINS WEALTH MANAGEMENT GROUP MEMBERS Financial Services has been a proud partner of Collins Community Credit Union since 1993. In May 2016, MEMBERS Financial Services became Collins Wealth Management Group.

With this name change, Collins Wealth Management Group and Collins Community Credit Union were able to strengthen their existing relationship and assist members in igniting their financial future and achieving their unique retirement goals. Collins Wealth Management Group continues to operate under its current business structure and provides the same great financial planning services and friendly service members are used to.

Collins Wealth Management Group has a small client base, which allows their team to devote their time and attention on building strong relationships and providing a tailored investment strategy for their clients. They collaborate with professionals in the community, and with CUNA Mutual Group, to make recommendations based on what is best for their clients’ financial future.

Securities sold, advisory services offered through CUNA Brokerage Services, Inc. (CBSI), member FINRA/SIPC , a registered broker/dealer and investment advisor. CBSI is under contract with the financial institution to make securities available to members. Not NCUA/NCUSIF/FDIC insured, May Lose Value, No Financial Institution Guarantee. Not a deposit of any financial institution. CUNA Brokerage Services, Inc., is a registered broker/dealer in all fifty states of the United States of America. CRPC® is a registered service mark of the College for Financial Planning®. *The CFP® certification marks are not affiliated with CUNA Brokerage Service, Inc. CHARTERED RETIREMENT PLANNING COUNSELOR (SM) and CRPC® are registered service marks of the College for Financial Planning®. FR-1761155.1-0417-0519

17

Watching your wealth grow

INVESTMENT SERVICES We provide the right investment services for developing your own solid financial investment strategy to achieve your financial goals.

FIRST COMMUNITY TRUST First Community Trust (FCT) is a national association and an independent trust company offering trust, investment and retirement services. Their sole objective is to help their clients achieve personal financial and estate planning goals and objectives.

The services they provide are Investment Agency Accounts including financial goals and business planning, IRA Rollovers, Trusts (Revocable, Irrevocable and Charitable), and Estate administration including Wills and Distribution. First Community Trust also provides services for businesses that can be 401(k) Plans to provide to your employees, and development of investment strategies for not-for-profit organizations.

18

LOOKING FORWARD Our mission is to ignite the financial futures of our employees, our members, our organization, and the communities we serve through empathy, education, products and services, and volunteering.

This mission reflects our cultural values, provides our organization with purpose, and influences every single decision we make.

We believe that purpose and value are more credible when brought to life through behavior and action; so we practice specific behaviors that tie directly to our cultural values to ignite the financial futures of our employees, members, and the community.

ASPIRE. IGNITE. ACHIEVE.

Cedar Rapids | Cedar Falls | Des Moines | Dubuque | Iowa City | Marion | North Liberty

www.collinscu.org

800-475-1150