2017 ANNUAL REPORT2017 ANNUAL REPORT

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On the Cover:

Premier Employees Are “All In” When It Comes To Serving Our Members! Going Above and Beyond Is What We Strive To Do Each and Every Day!

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Since our humble beginnings in the basement of Cone Mills in 1963, Premier FCU has embraced the universal credit union philosophy of “people helping people.”

Lending A Hand.Leading the Way.

Since 1963, your credit union has been committed to the philosophy of “People Helping People” - the very foundation that the industry was founded upon. This philosophy, along with our products and services, have afforded us the opportunity to help members through all life stages, while building relationships that are about more than just banking. We are proud to lead the way to improving your financial well-being. We are thankful to our members and employees who continue to make our success possible.

This report summarizes our most significant accomplishments in 2017.

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$176,628,536 $151,011,198

$168,280,623$143,860,416

$184,378,022 $156,973,302

$103,754,480

$106,430,242$113,113,571

ASSETS

2015

STEADY SUBSTANTIAL GROWTH

20162017

SHARES LOANS

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2 | Premier Federal Credit Union

27,355 Members Strong and Growing!

More and more consumers are realizing that credit unions are a fantastic place to bank. We welcomed 3,236 new members and our deposit accounts grew nearly $6 million in 2017. Nationwide, the number of credit union members has grown to over $110 million. The word is getting out about credit unions and we think that is awesome!

Yet, there still isn’t a clear understanding of the difference between a credit union and a bank in the minds of most consumers. If you asked Alexa™ what a credit union is, this is what she would say; “A credit union is usually defined as a cooperative depository financial institution whose members can obtain loans from their combined savings.” That definition certainly doesn’t clear up any confusion. This is what it means to you as a member of Premier:

• You are more than just a number. We care about our members and we’ve got • your back, always.• You get more for your money – We have some of the lowest fees and best rates • on personal accounts around. Pay less. Earn more.• You have nationwide account access through ATMs and CO-OP Shared • Branching locations.• You’ve got control of your money wherever you are - 24/7/365 with all of our • technology products. • You are protected. Our Card Valet app allows you to control your debit card • • and block unauthorized transactions on the spot. Your deposit accounts are • insured up to $250,000 by the National Credit Union Insurance Fund. • You are MORE than your credit score. At Premier, your credit score doesn’t • dictate whether or not your will get approved for a loan. • You will get personalized service and advice from people you can trust. • Together, we can help you achieve your financial dreams faster.

There are so many benefits to being a credit union member. Help us spread the word by inviting your family and friends to join. We would love to show them the credit union difference!

The information on the following pages is proof positive of our commitment to our members. The growth that we experienced in loans, deposits and assets are a direct reflection of your trust in us and the commitment of our employees.

On behalf of the Board of Directors, we thank you for choosing Premier FCU. We are grateful for your business and will work tirelessly to sustain the faith and trust you have placed in us. We look forward to serving you for many years to come!

Sincerely,

Lori Thompson Dennie SmithPresident/CEO Chairman of the Board

MESSAGE FROM THE PRESIDENT & CHAIRMAN

CORE VALUE: EthicsWe conduct all activities with honesty and integrity.

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As the members’ representative to the Board, the Supervisory Committee plays an important part in the evaluation of the performance of Premier Federal Credit union as well as ensuring that internal controls are effectively maintained and members’ interests are protected. The Supervisory Committee accomplishes this with the help of audits conducted throughout the year.

Nearman, Maynard and Vallez, CPAs, an outside auditing firm, conducted the annual audit of Premier Federal Credit Union’s financial statements, in accordance with auditing standards generally accepted in the United States of America. The audit report did not address any areas of concern.

Based on the results of the annual audit by Nearman, Maynard and Vallez, CPAs, it is the opinion of the Supervisory Committee that Premier Federal Credit Unioncontinues to be financially strong and operationally effective with sound policies and procedures.

Sincerely,

Lee Vernon, ChairmanDanielle Spradling, Member Angela Crabb, Member

SUPERVISORY COMMITTEE REPORT

CORE VALUE: Financial StrengthWe will manage our member's assets prudently to maintain the strength and security of the organization.

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OUR MISSION:

To provide the best lending experience for our members.

OUR VISION:To be our member’s first choice for all of their lending needs.

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Audited financials as of March 31, 2018 and March 31, 2017.

ASSETS 2018 2017Cash and Receivables $7,931,373 $6,408,900

Investments $56,607,669 $56,251,064

Net Loans Outstanding $111,985,647 $109,525,928

Fixed Assets $7,271,869 $7,302,919

Other Assets 6,387,670 $4,407,810

TOTAL ASSETS $190,184,227 $183,896,621

LIABILITIES & EQUITY 2018 2017Accounts Payable $897,069 $967,541

Accrued Expenses & Other Liabilities $677,826 $665,265

Member Shares and Certificates $162,165,081 $157,751,781

Regular Reserves $2,412,746 $2,412,746

Undivided Earnings $24,031,505 $22,099,288

TOTAL LIABILITIES & EQUITY $190,184,227 $183,896,621

INCOME & EXPENSE STATEMENT 2018 2017Interest Income $1,950,756 $1,833,450

Non-Interest Income $1,264,103 $1,181,372

Total Income $3,214,859 $3,014,822

Dividend Expense $202,608 $191,973

Operating Expense $1,917,966 $2,192,147

Provision for Loan Loss $257,509 $356,046

Non-Operating Expense $11,929 $53,284

Total Expenses $2,390,012 $2,793,450

NET INCOME YEAR TO DATE $824,845 $221,373

STATEMENT OF FINANCIAL CONDITION

4 | Premier Federal Credit Union

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In 2017, we surpassed over $2 Million given back to members since 2010 through our Loan Interest Rebate!

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A YEAR IN REVIEW

2,196New Checking

Accounts

3,236New

Members

659,692 Teller

Transactions

389New

Certificates

399Online Membership

Applications

4,422Estatement

Users

8,052 Apple Pay

Transactions

11,022 Mobile App Downloads

2,200Deposits via

Remote Deposit

$50.6 MillionLoaned to Members

19,223 Loans & Advances

Processed$2 Million

Given BackSince 2010

Loan Interest Rebate:

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6 | Premier Federal Credit Union

We are people helping people!Title Sponsor For Bill Hefner VA Hospital Employee Association 5K

Community Shred Day

Volunteering At Out of the Garden Project

Donations for Family Service of the Piedmont “Operation Elf”

Title Sponsor For Greensboro’sRunning of the Balls 5k forSecond Harvest Food Bank

Taking Donations To Cone Elementary School

In 2017, Premier FCU staff logged over 500 volunteer hours serving the local community.

Annual Hot Dog Sale Fundraiser

Cone ElementaryWinter Coat Drive

Family Service Community Dinner

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IN COOPERATION WITH FAMILY SERVICE OF THE PIEDMONT: • 2017 Annual Community Dinner • 2017 Annual Hot Dog Sale • 2017 Community Shred Day • 2017 Annual Bake Sale • Operation Elf

OTHER COMMUNITY SUPPORT: • Triad Goodwill - Rock the Runway• Adopt-A-Family for Christmas • City of Graham Health Fair • Cleveland County Business Showcase• Second Harvest Food Bank • Kings Mountain Rotary Supper • Swing For A Cure Golf Tournament • Rowan County Business Expo

COMMUNITY OUTREACH• Out of the Garden Project • Operation Backpack • Salisbury Gala• VA Employees Association 5K• Carolinas Credit Union Foundation • Forest City Out of the Darkness Walk • Urban Ministries Food Drive • Going Pink For Breast Cancer

Awareness Month• Second Harvest Food Bank • Kings Mountain Winter Coat Drive• Running of the Balls 5k Sponsorship• Partnership with the North Carolina • Consumer Council• Cone Elementary School • Rutherford County Education • Foundation

Volunteering at Family Service’s Community Dinner. (Elizabeth French, LaBorris Poole, Brenda Russell, Tammy Bunton & Lydia Fuller.

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8 | Premier Federal Credit Union

• A & K’s Cafe• A Touch of B’s Love Catering  • Agape Home Living Care                                    • Angelita’s Superior Clean                                           • Bella Hearts, Inc• Blakeney Inc. LLC          • Brook & Brook Attorneys                                                   • Bulldog’s Sports Bar and Grill  • God’s Way Landscaping                               • Creative Home Care Solutions Inc.  • Fisher Stark PA Attorneys                     • Forest City Owls• Forest Light Counseling• Gates Construction                                                          • Greensboro Radio Project• Gyfted Ink • Happy Body Fitness • & Wellness                                          

NEW PARTNERSHIPS

• ICTL Financial Inc.   • J’s Clean Sweep Co.     • Kemp CPA PLLC                                                     • Martin Services Company                                           • McDowell Landscaping & Construction • Merican Maid   • Mountain Home Improvements                                                                 • Piedmont Performance • Plan It Works • Progress Fitness                                             • R and L Autos LLC                                                            • R and L Towing                                                                 • Source Receivables Management  • Taylor’s Auto Sales• Taylor’s Discount Tires                          • Tuttle Signs and Designs• Victory From Abuse 

We are pleased to provide credit union services to the employees of more than 500 companies in North and South Carolina. In 2017, the companies and organizations listed below chose Premier FCU as a partner to enhance their employee benefits packages. We look forward to providing employees and their families all of the financial services that they need, along with the personal service they deserve. Welcome to the Premier family!

CORE VALUES: Members FirstWe always place the best interest iand welfare of our members first.

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BOARD OF DIRECTORSDennie W. Smith, ChairmanRobert Scruggs, Vice ChairmanCharles Younce, Second Vice ChairmanClara Newnam, Secretary/TreasurerLouise Pinkelton-Hofer, Membership OfficerJames E. Knight, DirectorTeresa Huffman, DirectorSamir Gabriel, Director

MANAGERSPat DeFeo, Greensboro BranchLori Longcoy, Asheville Branch Rhonda Lawson, Carlisle BranchBeth Hasty, Forest City Branch Norman Whiteside, Graham Branch Kristen Hamrick, Kings Mountain Branch Tara Lemmon, Salisbury & VA BranchBarbara Joyce, Credit Solutions Manager Paige Wingler, Lending Specialist Manager Jody Rushing, Marketing Manager Sharon Berninger, Member Contact Center Manager

OUR LEADERSHIP TEAMEXECUTIVE TEAMLori Thompson, President/CEOKim Walters, Chief Financial OfficerTyler Duke, V.P. of Human ResourcesLaKeisha Moore, V.P. of Compliance & Product DevelopmentEric Tapio, V.P. of LendingJennifer Parker, V.P. of Branch Operations

Premier FCU’s Annual Employee Training Day

Premier FCU’s Executive Team

CORE VALUES: Importance of PeopleWe value our employees, encourage development and strive to provide an outstanding work environment.

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BRANCH LOCATIONSGREENSBORO BRANCH1400 Yanceyville Street Greensboro, NC 27405 336-370-1286 (Local)336-379-3506 (Fax)

ASHEVILLE BRANCH 148 Charlotte Street Asheville, NC 28801 828-252-2346 (Local)828-252-6593 (Fax) CARLISLE BRANCH 3863 Carlisle-Chester Hwy.Carlisle, SC 29031 864-466-4145 (Local) 864-466-4147 (Fax) FOREST CITY BRANCHTri-City Mall, Suite 2532270 US Highway 74A Forest City, NC 28043 828-247-0022 (Local) 828-247-0028 (Fax)

GRAHAM BRANCH 306 North Main StreetGraham, NC 27253336-226-7004 (Local)336-506-0298 (Fax)

KINGS MOUNTAIN BRANCH 1113 Shelby Road Kings Mountain, NC 28086 704-739-9411 (Local)704-739-9240 (Fax)

SALISBURY 940 Jake Alexander Blvd. WestSalisbury, NC 28147704-633-4900 (Local)704-633-0701 (Fax)

SALISBURY - VA MEDICAL CENTER1601 Brenner AvenueSalisbury, NC 28144704-637-6068 (Local)704-637-6069 (Fax)

SHARED BRANCHESA Shared Branch allows you to take advantage of a variety of services just like you were at one of our locations.

ATM ACCESSAccess your account anytime, anywhere with your Premier ATM or Debit Card at over 75,000 surcharge-free ATMs nationwide.

MOBILE APPPremier’s Mobile App puts managingyour finances in the palm of your handincluding Mobile Deposit.

AUDIO RESPONSE336-370-0912 (Local)

ONLINEwww.PremierFCU.org

Premier Federal Credit Union is Federally Insured by NCUA.

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