2017

B R O W N S V I L L EH A R L I N G E N

W I L L A C Y S E R V I C E C E N T E RF A L C O N S S E R V I C E C E N T E R

I.

II.

III.

IV.

V.

VI.

VII.

VIII.

IX.

X.

XI.

XII.

XIII.

XIV.

XV.

Pledge of Allegiance

Invocation

Call to Order

Introduction of Board of Directors

Introduction of Supervisory Committee

Certification of Quorum

80th Annual Meeting Minutes

Board of Directors Report

Supervisory Committee Report

President’s Report

Election Report

Unfinished Business

New Business

Adjournment

Door Prizes

Agenda

SecretaryOmar Flores

Board MemberJohn Hernandez

TreasurerRefugio Covarrubias

Vice ChairmanMarc Hernandez

Vice-secretaryOfie Rivera

DirectorRichard Berry

Board MemberMichael Forbes

PRESIDENT/CEOOlga I. Villarreal

CHIEF FINANCIAL OFFICERRachel Sauceda

EXECUTIVE VICE PRESIDENTNorma S. Jasso

Department Head - Claudia Lozano Head Collector - Isabel GarciaACCOUNTING DEPARTMENT COLLECTIONS DEPARTMENT

VP - OPERATIONSMarco A. Garza Patsy V. Hinojosa

VP - MEMBER SERVICES VP - BRANCHESBonnie Mejia

Head Leader: Ileana AlanizMelba Carpinteyro, Lupe Torres, Patty De Leon, Stephanie L. Garcia

MEMBER SERVICE REPRESENTATIVES

Department Head: Erika G. LozanoFunders: Margarita Fuentes, Michelle Salinas, Dorina Rebolledo

FUNDING DEPARTMENT

Department Head: Iliana QuinonezRepresentatives: Linda Rubio, Cynthia Guerra, Jaime Lerma, Samantha Dominguez

CALL CENTER DEPARTMENT

Head Teller: Veronica AvilaSenior Tellers: Giovanni Mendez, Marlene Diaz

Tellers: Sujey Vasquez, Krystal L. Munivez, Krystal Shears, Rodrigo Lopez, Bernice Armendaiz

BROWNSVILLE TELLER DEPARTMENT

Assistant Branch Manager: April CarmonaMember Service Representative: Sonya Rodriguez

Head Teller: Marci MoralesTellers: Ariaana Sanchez, Minerva Trevino, Jeannette Rodriguez , Eva Silva , Samantha Alvarado

HARLINGEN BRANCH

Chairman: Dwight AbbottVice Chairman: Manuel Vilarreal

Secretary: Ramon OrtizEddie Martinez, Clifford Rowen

SUPERVISORY COMMITTEE

Melissa ChaidezAlisa N. Escobar

FALCON SERVICE CENTERS

BOARD MEMBERS

Minutes Of The 81st Annual MeetingI. Pledge of AllegianceChairperson Richard Berry called upon Director Refugio Covarrubias to lead the membership in reciting the Pledge of Allegiance.

II. InvocationChairperson Richard Berry called upon Joseph O'Bell to lead the membership in the invocation.

III. Call to OrderThe Annual Membership Meeting of the Valley Federal Credit Union was held at the Amigoland Convention Center, Brownsville, Texas on Saturday, April 09, 2016. The meeting was called to order by Chairperson Richard Berry. Directors present were Richard Berry, Refugio “Cookie” Covarrubias, Omar Flores, Marc Hernandez, Ofilia “Ofie” Rivera and Michael Forbes.

IV. Introduction of the Board of DirectorsChairperson Richard Berry introduced members of the Board of Directors to the membership present. Also introduced were members of the Supervisory Committee in attendance, who were: Eddie Martinez, Manuel Villarreal and Ramon Ortiz.

V. Certification of QuorumChairperson Richard Berry asked Board of Directors Secretary Omar Flores if there was a quorum of members present, to which he responded: “Yes, there is a quorum present.”

VI. Approval of Minutes of Annual Meeting Held on April 12, 2015Member Pedro Gonzalez made a motion to approve the minutes of the Membership Meeting held on April 12, 2015 as presented in the 2016 “Owner’s Booklet”. Cliff Rowell seconded the motion. The motion was approved unanimously.

VII. Board of Directors ReportChairperson Richard Berry referred members to the copy of the “2016 Board of Directors Report” as presented in the 2016 “Owner’s Booklet.”

Minutes ContinuedVIII. President’s ReportChairperson Richard Berry referred members to the copy of the “2016 President’s Report” as presented in the 2016 “Owner’s Booklet.”

IX. Nominating Committee ReportChairperson Richard Berry recognized members of the Nominating Committee. He then presented the minutes of their meeting held on January 19, 2016. The Minutes stated that Loraine Knoch had been elected to be Chairperson of the Committee and two applications to fill the two vacancies on the Board of Directors had been received. The Committee selected Refugio “Cookie” Covarubias and Miachael Forbes as the new Board members. Member Celia Campana moved to approve the Minutes of the Nomination Committee as read and Raymond Ortiz seconded the motion. The motion was unanimously approved.

X. Supervisory Committee StatementChairperson Richard Berry referred members to the copy of the “2016 Supervisory Committee Statement” as presented in the 2016 “Owner’s Booklet.”

XI. Other BusinessThere was no other business to be considered.

XII. AdjournmentHaving no further business, Chairperson Richard Berry moved to adjourn the Meeting and Omar Flores seconded the motion. The motion was approved unanimously. The Meeting adjourned at 4:11 p.m.

After adjournment a drawing for door prizes was held.

Board Of Directors ReportIt gives me great pleasure on behalf of your Board of Directors, to welcome you, our valued members and your families, to the 82nd Annual Membership meeting of your Valley Federal Credit Union (VFCU). Hopefully you will all be able to go home, not only with a full stomach and one of the many door prizes, but also with a better understanding of the financial well being, the various projects that have been completed and are presently under way, and the goals and objectives for the future of your Credit Union.

Our annual evaluation by the Federal examiners again revealed that our CEO/President, Olga Villarreal, and her Staff, are doing an outstanding job of professionally operating our Credit Union, all the while maintaining the friendly and helpful atmosphere that you have come to expect. Our employees epitomize our slogan “People Helping People.”

The Board of Directors and staff are presently investigating the possibility of opening a branch on the North side of Brownsville to better serve our existing and to attract new members in that rapidly growing section of Brownsville and Los Fresnos.

Rest assured that this coming year, in what we expect to be a challenging economic environment, your President, Staff, and Board of Directors, will continue to look for ways to better serve our members through the offering of new products and making improvement to existing services. As always, the President and her Staff will continue to monitor and assure that our loan and interest rates are competitive with those offered on both the national and local markets.

Again, the Board of Directors wishes to thank you, our fellow members, for your continued support and want you to feel free to contact us with your concerns and suggestions on how your Credit Union can better serve you.

Sincerely yours,

Richard K. BerryRichard K. BerryVFCU Board Chairman

Supervisory Committee ReportThe Supervisory Committee would like to thank all of the members of Valley Federal Credit Union for their continued loyalty, and to welcome all of our new members.

Your Supervisory Committee is made up of 5 volunteer members of the Valley Federal Credit Union. We are selected by Management and appointed by the Board of Directors. We select an outside auditor for the Credit Union. We are also overseen in our duties by Auditors of the National Credit Union Administration as are the Board of Directors and Management of the credit union.

Your Valley Federal Credit Union has once again been rated highly this last year. We were ranked number 5 out of 5844 credit unions nationwide. We might not be one of the biggest, but your Valley Federal Credit is definitively one of the very best.

This is great. And it shows that we have a dedicated team of Management and Employees, and Volunteers working together. It also shows that we enjoy doing our best for our members, and it is your continued membership and confidence in us that brings about these kind of ratings.

Remember, this is not a bank, this is YOUR credit union, and you own it.

Supervisory Committee Dwight Abbott, Chairman

Manuel Villarreal, Vice Chairman

Ramon Ortiz, Secretary

Eddie Martinez, Member

Clifford Rowell, Member

President’s Report2016 ends our 81st year and we are so very proud of what we have been able to accomplish. Since 1935, we have loaned $42.3 million to our members! We have become more than just a place to get a car loan for reliable transportation; these loans have covered everything from washing machines to a home equity for our member’s realization of the American dreams. Simply put, it’s what we do and essentially why we are here. We look back and take pride in the fact that our member-owners have benefited from our affordable loan rates and saved through a variety of competitive financial products and services.

As CEO of Valley Federal Credit Union, I am proud to report that 2016 was another successful year for the credit union. Assets ended the year at $65.5 million and Net Income was $727,348. As member-owners you expect the high quality, competitive products and services from your Credit Union. We will continue to leverage the technology that will provide twenty-four hours a day, seven days a week through our online services.

We look forward to continue serving the needs of our community in the future. We invite you to share your experience, with the credit union, to your family and colleagues.

I, along with the Board of Directors, appreciate the ongoing support and financial responsibility that the executive management team and staff have exercised this past year. Through their dedication, your credit union continues to maintain financial safety and consistent stability.

A sincere “thank you” for allowing me to continue to lead your credit union to its successful future.

Sincerely,

Olga I. VillarrealPresident/CEO

The value of your “Membership” is the strength that made us yesterday, the energy we have today and the passion that will continue in the future.

BALANCE SHEET

Assets 2014 2015

Loans to Members 37,305,650Loan Losses -464,879 -760,678Investments 10,447,000 11,943,000Cash 4,311,617 6,295,796Other Assets 5,201,606 4,640,616

TOTAL ASSETS $56,800,994 $61,669,215

Liabilities & EquityMember Shares (Dep) 47,880,612 52,184,713Reserves 1,101,314 1,101,314Member Equity 7,435,878 8,046,546Other Liabilities 383,190 336,642

TOTAL LIABILITIES & EQUITY $56,800,994 $61,669,215

Loan Interest Income 3,350,903 3,628,252Investment Income 103,483 120,850Other Income 2,175,543 2,206,503

TOTAL INCOME $5,629,929 $5,955,605

ExpensesOperating Expenses 4,454,048 5,179,271Dividends Paid 164,940 165,667Non-Operating Expenses 0 0Required Reserves 0 0

TOTAL EXPENSES $4,617,988 $5,344,938

NET INCOME: $1,011,941 $610,667

39,550,481

STATEMENT OF INCOME

Income 2014 2015

2016

-723,28814,433,0003,751,2475,687,428

$65,514,004

55,271,9311,101,3148,773,894

366,865

$65,514,004

3,663,038166,946

2,206,503

$5,955,012

5,087,245181,419

00

$5,268,664

$727,348

42,365,618

2016

Expenses ReportBALANCE / STATMENTS

$0 $5M $10M $15M $20M $25M $30M $35M $40M $45M

2014

2015

2016

2013

Total Loans2016 ANNUAL REPORT

$34,600,000

$37,300,000

$39,500,000

$42,300,000

$0 $15M $30M $40M $45M $50M $55M $60M $65M $70M

2014

2015

2016

2013

Total Assets

$53,000,000

$56,800,000

$61,600,000

$65,500,000

0% 13.9% 14.2% 14.5% 14.8% 15.0%

2014

2015

2016

2013

Total Capital2016 ANNUAL REPORT

14.1%

15.0%

14.8%

15.1%

$0 $35M $40M $45M $50M $55M

2014

2015

2016

2013

Total Shares (Deposits)

$45,300,000

$47,800,000

$52,100,000

$55,200,000

Vision StatementValue our members;

Focused and Committed in

Understanding their financial well being.

Valley Federal Credit UnionWE BELIEVE

Closing StatementOn behalf of the Board of Directors, the Supervisory Committee, our

Management and entire staff, we would like to thank you for attending our 82nd Annual Meeting.

We praise you, our members, for your support throughout the years. That support has enabled us to continue serving you as

YOUR CREDIT UNION!