A J O U R N E Y T O W A R D S E X C E L L E N C E

A N N U A L R E P O R T

Helping YOU live your best financial life

2019

PEFCU’s Commitment ........................................................................1

About Us ..............................................................................................2

Senior Leadership Team....................................................................3

President’s Message ..........................................................................4

Board of Directors ..............................................................................5

Chairman’s Message ..........................................................................6

Committee Reports ...........................................................................7

Financial Condition .........................................................................8-9

Income & Expenses ..........................................................................10

Mapping Our Journey ..................................................................... 11

2019 Fact Sheet ................................................................................12

Giving Back .......................................................................................13

C O N T E N T S

Headquartered in Lakeland, Fla., Publix Employees Federal

Credit Union (PEFCU) is a member-owned co-operative that

was founded in 1957 to meet the financial needs of Publix

Super Markets, Inc. associates and their family members.

PEFCU, with over $1 billion in assets, is ranked in the top five

percent of credit unions nation-wide. PEFCU maintains a

five-star rating by Bauer Financial and boasts an “A+” in

financial health. PEFCU remains committed to improving the

financial lives of its members and continues to expand its

membership throughout the southeastern U.S.

ABOUT US

PEFCU was envisioned by Publix Founder George Jenkins, John

Turner, and other leaders of Publix Super Markets. Mr. George was

known for his generosity, and he often helped Publix associates

in times of financial need. More than 60 years ago, someone

suggested to Mr. George a means by which all employees could

be helped on a broader scale—establishment of a credit union.

He and the other leaders believed that Publix’s hardworking

associates deserved access to better loans and savings options,

and the “people helping people” principle of a credit union fit

perfectly with Publix’s philosophy of supporting each other. They

applied for a credit union charter, and the plan was put into

motion.

Publix Employees Federal Credit Union (PEFCU) wasn’t built

with brick and mortar. PEFCU was built with people, by

people, and for people. We owe our success to the people

who share our trust, commitment, and values. Membership

is essential to the design of our not-for-profit co-operative,

and the members keep the credit union strong.

Our commitment to our members for 2020 is to give them

a sense of ownership. We listen to their feedback and value

their ideas. We will help them save money with lower loan

rates, earn money with higher dividends, and access their

money with improved technology.

We will continue our journey toward excellence.

George W. Jenkins

John A. Turner

Delivering the best value for lifelong relationships one member at a time

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Senior Leadership Team

Executive Vice Presidents

Senior Vice Presidents

Vice Presidents

Robert BreglerPresident/CEO

Cheryl BrownSVP, Chief People and

Organizational Excellence Officer

Kaylan BrughVP, Controller

Jim DoughertyVP, Branch Operations

Derrick PerryVP, Information Technology

Nicholas PhillipsVP, People Development

Kim WilliamsVP, Card and Digital Services

Ted HassenfeltSVP, Chief Information Officer

Erika HerndenSVP, Chief Experience Officer

Scott McKimSVP, Chief Lending Officer

Shannon PattenSVP, Chief Marketing Officer

Karen BoccaleriEVP,Chief Operating Officer

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Arthur Ashe, a pioneer for many in the sport of tennis, once said, “Success is a journey, not a

destination. The doing is often more important than the outcome.” In 2019, Publix Employees

Federal Credit Union (PEFCU) had many outcomes to be proud of. We grew in assets, shares,

loans, investments, and reserves. As we had forecasted in 2018, we surpassed $1 billion in

assets in the first half of 2019. Only five percent of credit unions in the United States have

achieved that milestone! We are clearly thriving when compared to our peers.

These accomplishments are worthy of celebration. We were able to meet these milestones

because our members chose to trust us with their financial lives. PEFCU’s success is our members’

success. What I take from Mr. Ashe’s quote is that the celebration of last year’s accomplishments is not where we stop.

“Best” comes after “better” on our journey. How PEFCU lives out our brand is summed up in our new tagline: “Helping

You Live Your Best Financial Life.” We realize that the best outcomes in life require the best people. Last year, we

restructured our leadership team. This group of visionaries include some of the best talent in the industry. They will

accelerate the Credit Union into uncharted territories so that we can serve our members the best way possible. With

their commitment, we will provide you with the best financial tools, the best digital and in-person experiences, and the

best products in 2020.

The Credit Union was founded in hopes that the best financial options would help our members make the best financial

decisions. The journey toward the best requires us all to evolve. Our mission is to do our part in ensuring that you have

the best choices.

As a large, single sponsor non-profit cooperative, PEFCU primarily serves current and former Publix Super Markets

employees and their immediate family members. Just as Publix employees own Publix Super Markets, PEFCU members

own the Credit Union. That’s why it makes sense, as an owner, to do business with PEFCU. PEFCU features great loan

interest rates, very competitive share dividend rates, and lower and fewer fees than most of our competitors.

Thank you for your continued support. We look forward to delighting you in 2020 as we journey toward excellence

together.

Robert Bregler

Robert BreglerPresident/CEO

President’s Message

4

Board of Directors

Kindle BowdenSecretary

Linda HallVice-Chairman

Terry BrigmanChairman

Merriann MetzDirector

Jeff ChamberlainDirector

Jeff StephensDirector

Adrian BennettDirector

5

Chairman’s Message

“If we are always arriving and departing, it is also true that we are eternally

anchored. One’s destination is never a place but rather a new way of looking at things.” -Henry Miller

Every wise adventurer is grateful for a good anchor. The anchor will give

the explorer confidence to go as far as possible, knowing that there is a solid

foundation to return to. After reviewing the portfolio for 2019, it is clear that Publix Employees Federal Credit Union (PEFCU) has explored wisely. The creativity and improvements to the credit union have been beneficial, and the management of the numbers have kept us on a solid foundation.

As Chairman, I am proud to report that your PEFCU remains strong and secure to meet all your financial needs. PEFCU is also becoming more innovative to ensure new products and services are provided on a timely basis to meet your changing needs this year and in the future. We are here to serve you.

PEFCU continued to grow in 2019. As evidenced by the charts and financial reports contained in this Annual Report, PEFCU surpassed $1 billion in assets in 2019 for the first time ever. Our success is due to your continued loyalty and unwavering support. For this we are truly grateful.

PEFCU remained financially sound in 2019. The public accounting firm of Doeren Mayhew, CPAs and Advisors audited your Credit Union and rendered a clean opinion on its financial statements. Examiners from NCUA, our regulators, agreed that PEFCU remained financially sound. In addition, Bauer Financial gave PEFCU a “five-star” rating (their highest rating) once again.

PEFCU remained secure in 2019. Our annual information security review, conducted by Computer Services Inc., confirmed the Credit Union has continued to maintain a strong and dedicated effort of protecting member assets and non-public personal information.

PEFCU remained competitive in 2019. Fees and charges to members remained at a minimum. PEFCU does not charge fees for many products and services that other banks and credit unions charge for, and when fees are necessary, they are usually lower than those charged by our competitors.

PEFCU remained a single sponsor Credit Union in 2019. As a single sponsor Credit Union, membership is primarily limited to current and former employees of Publix Super Markets and their immediate family members. This common bond allows

us to focus on the specific needs of the Publix family. PEFCU was founded in 1957 as another exclusive benefit for the Publix family and it remains so today.

PEFCU remained innovative in 2019. The Senior Leadership Team was established; new positions were created, and we recruited new talent who brought fresh ideas. We upgraded our Guaranteed Asset Protection (GAP) insurance by adding Auto Deductible Reimbursement. We enhanced our member experience by automating Travel Notification for debit and credit cards and implemented member self-enrollment in mobile banking. We’ve expanded our digital and social presence and updated and streamlined numerous marketing materials. We have continued to invest in our employees through ongoing training, enhanced benefit offerings, and creating performance accountabilities that align with our vision and mission to provide stellar value and service to our members. We are committed to continually improving your credit union, and you can expect many more improvements in 2020 and beyond.

PEFCU continued to give back to our communities. Giving back to the communities we serve remained a priority for PEFCU employees. Throughout the year, we partnered with several non-profit agencies to provide support when and where they needed it most. We encouraged our employees to volunteer in the community and provided year-round opportunities for them to give back. PEFCU has given back to the community through ongoing volunteer service projects. Over 1/3 of our employees have volunteered nearly 250 hours of their time to support the communities where we serve.

Board of DirectorsTerry Brigman, Linda Hall, and Jeff Chamberlain were re-elected to the Board in 2019 for additional three-year terms. The Nominating Committee has nominated current Board members Adrian Bennett and Kindle Bowden for re-election to the Board in 2020 for additional three-year terms. Both agreed to serve if elected.

In closing, I would like to thank my fellow Board members for their leadership and dedication, the members of the Supervisory and Credit Committees for their dedication, the management and staff of the Credit Union for their hard work, and you our members, for your continued loyalty and support.

Respectfully submitted,

Terry Brigman Board Chairman

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The Supervisory Committee is appointed by the Board of Directors and is responsible for the annual financial audit. To assist the Supervisory Committee, the Credit Union has selected the accounting firm of Doeren Mayhew CPAs and Advisors. The primary focus of the annual audit is to determine the completeness of financial statements and the ownership of assets and liabilities.

The findings indicate that the 2019 financial statements accurately represent the results of operations and the financial condition of the Credit Union. Federal examiners representing the National Credit Union Administration (NCUA) also conducted their required annual examination and found the general condition of the Credit Union to be financially sound.

Respectfully submitted,

Meghan Vazquez Meghan Vazquez Chair, Supervisory Committee

Supervisory Committee Report

Credit Committee Report

The Credit Committee is appointed by the Board of Directors and has final decision-making authority on all loan applications. Our lending underwriters have authority to review and decide on loan application requests and will review many scenarios for approving loan requests.

In 2019, our lending teams approved 8,894 loan applications totaling more than $165.6 million. This included Mortgage Loans, Automobile Loans, Credit Cards, Unsecured Loans, and Loans secured with Publix Super Markets, Inc. Shares of Stock.

Respectfully submitted,

Scott McKimScott McKimCommittee Chairperson and Chief Lending Officer

Committee Members Lisa Merchant Cindy White

Committee MembersKaren BoccaleriLynn KensingerJamie WallsJayne CouchDebbie Ruis, Recording Secretary

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Financial Condition

0

200

400

600

800

1000

1200

2015 2016 2017 2018 2019

ASSETS SHARES NET LOANS NET INVESTMENTS NET RESERVES

HISTORICAL GROWTH ANALYSIS(IN MILLIONS)

SHARE ACCOUNT ANALYSISDECEMBER 31,2019

SHARE 45%

BASE IRA 5%

IRA CERTIFICATE 6%

CERTIFICATE 14%

P.D.M.A. 15%

SHARE DRAFT 15%

SHARE45%

SHARE DRAFT15%

P.D.M.A.15%

CERTIFICATE14%

IRA CERTIFICATE6%

BASE IRA5%

8

Financial Condition

0

200

400

600

800

1000

1200

2015 2016 2017 2018 2019

SHARES DRAFTS PDMA CERTIFICATES IRA CLUBS

SHARE ACCOUNT GROWTH(IN MILLIONS)

LOAN ACCOUNT ANALYSISDECEMBER 31,2019

AUTO35%

SIGNATURE6%

OTHER5%

MORTGAGE22%

PUBLIX STOCK24%

VISA8%

PUBLIX STOCK 24%

VISA 8%

AUTO 35%

SIGNATURE 6%

OTHER 5%

MORTGAGE 22%

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Income & Expenses

STATEMENT OF FINANCIAL CONDITIONAS OF DECEMBER 31, 2019

RESULTS OF OPERATIONSAS OF DECEMBER 31, 2019

DISTRIBUTION OF NET OPERATING INCOMEAS OF DECEMBER 31, 2019

2019 2018 INC. (DEC.)

2019 2018 INC. (DEC.)

2019 2018 INC. (DEC.)

ASSETS:

TOTAL ALL INCOME

NET OPERATING INCOME: $18,377,775 $16,434,171 $1,943,604

TOTAL DISTRIBUTION: $18,377,775 $16,434,171 $1,943,604

TOTAL ASSETS $1,047,172,592 $968,965,584 $78,207,008

LIABILITIES:

TOTAL LIABILITIES $8,548,882 $8,958,878 ($409,996)

TOTAL MEMBER EQUITYTOT. LIABILITIES & CAP.

$1,038,623,710$1,047,172,592

$960,006,706$968,965,584

$78,617,004$78,207,008

TO: DIVIDENDSTO: CAPITAL

$6,673,602$11,704,173

$5,651,465$10,782,706

$1,022,137$921,467

TOTAL EXPENSES $32,839,056 $30,021,536 $2,817,520 NET OPERATING INCOME: $18,377,775 $16,434,171 $1,943,604

LOAN LOSS PROVISION $1,580,200 $965,122 $615,078

MEMBER EQUITY:MEMBER SHARESCAPITAL

$892,699,828$145,923,882

$833,669,488$126,337,218

$59,030,340$19,586,664

LOANS(NET)CASHINVESTMENTS(NET)FIXED ASSETS(NET)OTHER ASSETS

$432,542,218$10,807,732$570,143,172$4,709,837$28,969,633

$414,740,146$7,751,590$527,189,290$6,792,318$12,492,240

$17,802,072$3,056,142$42,953,882($2,082,481)$16,477,393

INTEREST ON LOANS/VISAINVESTMENT INCOMEOTHER INCOME GAIN(LOSS) ON INVESTMENTSON ASSETSGROSS INCOME

$22,254,743$12,687,308$15,206,298$2,685,025($36,343)$52,797,031

$21,939,456$10,293,439$15,146,473$0$41,461$47,420,829

$315,287$2,393,869$59,825$2,685,025($77,804)$5,376,202

OPERATING EXPENSES:ADMINISTRATIVEMARKETING & EDUCATIONOFFICE OPERATIONSOFFICE OCCUPANCYLOAN SERVICINGPROFESSIONAL SERVICESEXAMINATION EXPENSESDATA PROCESSINGMISCELLANEOUS EXPENSES

$17,517,991$702,938

$2,576,551$1,289,373$2,397,523$1,658,561$261,102$5,509,644$925,373

$15,443,993 $610,404

$2,615,649$1,333,933$2,388,477$1,456,315$249,421$5,255,499$667,845

$2,073,998$92,534

($39,098)($44,560)$9,046$202,246$11,681$254,145$257,528

ACCOUNTS PAYABLEOTHER LIABILITIES

$2,129,812$6,419,070

$1,764,123$7,194,755

$365,689($775,685)

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Mapping Our Journey

We are proactive in providing stellar financial services throughout all

phases of our member’s life.

Vision

Delivering the best value for lifelong relationships one

member at a time.

Mission

Leadership

Culture

Agility

Execution

Pillars

Sponsor RelationshipEmployee ExperienceMember Experience

Core Competencies

Values

Caring: We enhance the employee and

member experience

Inclusive: We foster an environment where

everyone feels valued and respected

Transparent: We create trustworthy relationships with our

employees and members

Accountable: We are committed and are responsible

for a standard of excellence for our employees and members

Innovative: We consistently challenge the status quo

to provide a stellar employee and member experience

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Annual Report 2019 Fact Sheet

100,000+TOTALmember count

BILLIONin assets May 2019

$1of PEFCU employees VOLUNTEERED in the community

1/3

Year of Service to

PEFCUM e m b e r s

62nd

Member Satistfaction S C O R E75

return onASSETS1.16%

LARGESTCredit Union i n F l o r i d a

18th

in NetWORTH13.92%A C T I V E

mobile banking app users53THOUSAND

n e a r l y

MILLIONloans booked$165

O V E R

volunteer hours of COMMUNITY S U P P O R T

250approximately

L O A Napplications reviewed

23THOUSAND

approximately

28SECONDS

to answer MEMBER CALLS in the Contact Center

avg. of

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Giving Back

Pembroke Pines - Local Food Bank

Lakeland - Wacky Tacky Pink Day

Altamonte Springs - Wacky Tacky Pink Day

Altamonte Springs - School Supplies for Seminole County

Royal Palm Beach - March of Dimes

Jacksonville Helping Hands

Norcross - Local Food Bank

Lakeland - Carol Jenkins Women & Children Center

Sarasota - Easter Baskets

Royal Palm Beach - American Red Cross Making Strides Against Breast Cancer

Sarasota - All Faiths Food Bank

Jacksonville - Feeding the Homeless

Pembroke Pines - March of Dimes

PEFCU enthusiastically supported our community in 2019. We initiated in-branch events, local sponsorships, and other philanthropic commitments to help make our community a better place. Thank you to our partners and volunteers who

were involved in these inspirational efforts.

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Helping YOU live your best financial life

Visit us at www.pefcu.com