Corporate Highlights

42015 Annual Report | Message from the Chair

On behalf of Meridian’s Board of Directors, I am delighted to have the opportunity to provide this overview of fiscal 2015. The past year, which was the first complete year with Bill Maurin at the helm as President and CEO, was yet another strong and productive one for our organization. Bill and his executive team members continued to demonstrate their professionalism, ability and commitment as they led our organization through a period of strong, sustained growth. While there were numerous noteworthy successes at Meridian over the past 12 months, the Board was particularly proud of several initiatives related to Meridian’s Commitment to Communities program. The program is based on the co-operative values and beliefs upon which Meridian was founded and works toward five key goals: improving financial literacy, investing in our communities, engaging our employees, contributing to a healthier environment and

supporting a stronger co-operative sector.One of the most notable successes in the Commitment to Communities program revolved around improving financial literacy in the area of small business. We know that successful businesses are at the heart of our communities. We also know there are thousands of Ontarians who are interested in starting their own businesses but who might lack some of the technical know-how required. To help make it easier to start, operate and grow a business, we joined forces with member organizations of the Ontario Network of Entrepreneurs to create bizsmarts.ca, which is packed with relevant, valuable information and tips on dozens of topics, as a tool to help Ontarians realize that passion.Meridian also made strides in its ongoing work to help build a stronger co-operative sector by increasing the awareness and understanding of the advantages of co-operative businesses. Throughout 2015, we were involved with Credit Unions of Ontario to help promote the many advantages of credit unions and the fact that they represent a better way to bank. The Meridian family experienced a painful loss in the fall of 2015 with the passing of Sean Jackson, our first CEO and President. Sean was a passionate champion of the Ontario co-operative system and was a beloved leader, whose

charisma, charm and passion will always be remembered by those who were fortunate enough to work with him. Sean’s legacy will continue to be celebrated through Meridian’s annual Commitment to Communities Sean Jackson Scholarship, which was created in recognition of his role as a community leader. Julia Mogus, who is enrolled at the University of Toronto, was the inaugural recipient of the $10,000 scholarship, which recognizes a student who has demonstrated a strong commitment to their community while achieving academic excellence. This scholarship will continue to support students’ ambitions while celebrating the life and legacy of Sean Jackson for many years to come.On behalf of the Board of Directors, I would like to offer our most sincere appreciation to Meridian’s employees for the inspiring way in which they continue to serve our Members. We would also like to thank our Members for their support of Meridian and the co-operative principles upon which we were founded.

John Murphy Chair, Board of Directors

Message from the Chair

52015 Annual Report | Message from President and the CEO

From a personal perspective, I am very pleased to report that 2015 was another strong year for Meridian and its Members. Over the past 12 months, we made significant progress across all of our business lines and all areas of our strategic plan. Thanks to the hard work and dedication of our employees, we were able to continue our strong growth momentum and improve the number of product and service offerings that we have available to our Members. Those efforts resulted in very strong results for Meridian over the past year. Meridian’s assets under management grew by 12.8% to $12.8 billion, with pre-tax earnings of $38.5 million. We also grew our Member relationships (including lending, deposits and Wealth) by $2.0 billion. And, thanks to you, our Members, we had a highly successful investment share issuance. Our ‘Let’s Get Growing’ Class A share offering in the summer of 2015 was a resounding success, with Members purchasing $120 million in shares. We sold out well ahead of our expected timelines and our Members will now be able to watch their investments grow at a dividend rate of 4.00%,

yes, 4.00%! At the same time, this addition to Meridian’s regulatory capital will serve to support future growth and development while also strengthening our ability to grow the lives of our Members. At the same time we celebrated a number of important achievements and milestones that have further strengthened our foundations for future growth and success. In April, Meridian made headlines when we provided Ontarians with access to the lowest known posted mortgage rate in Canadian history. In addition to helping Ontarians pay off their mortgages sooner and save money in interest costs, our 18-month fixed rate of 1.49% reinforced Meridian’s commitment to having our Members’ backs.The past year also saw Meridian continue to execute on its ambitious expansion plans, both in terms of our physical branch footprint and our digital offerings to Members. We conducted seven ribbon cutting ceremonies in 2015 to mark the opening of new branches, growing our total number of branch locations by more than 10% in less than 12 months. Our new locations in Burlington, Cambridge, Etobicoke, Richmond Hill and throughout the Greater Toronto Area bring our total number of branches to 74, making it easier than ever for Members to experience the Meridian difference. As part of our ongoing commitment to providing Members with access to an improved suite of digital offerings, we launched a new, enhanced mobile app, making it easier for Members to bank online and on the go. On top of that, we have a

fabulous new tablet application as well and a much-improved online onboarding process, making it faster and easier than ever to become a Meridian Member. Looking ahead to 2016, we are certainly not standing still. Members can expect more product and service offerings and enhancements, including a number of exciting digital banking announcements. We will continue to work to increase public awareness of the Meridian difference throughout the province. And we will continue to deliver on our growth plans for Meridian’s physical branch network, both in the Greater Toronto Area and throughout the province.At Meridian, our reason for being in business is to help our Members have a better life. The only reason we are here is to help you. We continue to listen to our Members and we take their comments, feedback and concerns seriously. On that note, we’re pleased to report that our Net Promoter Score (a measure of how likely our Members are to recommend Meridian to their friends and family) continues to lead the industry and has far exceeded our targets for 2015.Finally, I would like to recognize and thank our Members for their exceptional ongoing loyalty and support, and our employees for doing such an incredible job of showing our Members what banking should look like.

Bill Maurin President and Chief Executive Officer

Message from the President and CEO

2015 Annual Report | The Meridian Team 6

The Meridian Team

Bill Maurin – Chief Executive Officer* Leo Gautreau – Chief Risk Officer* Gary Genik – Chief Information Officer Tim Smart – Chief Financial Officer* James Millard – Chief People Services Officer

Jennifer Rowe – Chief Marketing Officer Bill Whyte – Chief Member Services Officer Sunny Sodhi – Chief Legal Officer and

Corporate Secretary*

Audit & FinanceRichard Owen – Chair Ken Bolton Jeff Chesebrough Mark Kraemer Tamara Paton

Executive Leadership Team and OfficersLeft to right: Leo Gautreau, Sunny Sodhi, Tim Smart, Bill Maurin, James Millard, Jennifer Rowe, Gary Genik, and Bill Whyte

* Credit Union Officer

GovernanceJohn Murphy – Chair Don Ariss Karen Farbridge Ross Lamont Phoebe Wright

Human ResourcesDon Ariss – Chair Larry Doran Karen Farbridge John Murphy Phoebe Wright

NominatingDon Ariss – Chair Ken Bolton Larry Doran Colleen Sidford

RiskTamara Paton – Chair Jeff Chesebrough Mark Kraemer Ross Lamont Colleen Sidford

COMMITTEES

Back row left to right: Larry Doran, Don Ariss, Ross Lamont, Jeff Chesebrough, Phoebe Wright, Mark Kraemer, Tamara PatonFront row left to right: Ken Bolton, Karen Farbridge, John Murphy (Chair*), Richard Owen, Colleen Sidford (Vice-Chair*)

Board of Directors

2015 Annual Report | Corporate Highlights

GROWING OUR BRANCH NETWORK

IT’S GROW TIME.EARN 1.50%.ASK US HOW YOU CAN SAVE MORE WITH OUR GOOD TO GROW HIGH INTEREST SAVINGS ACCOUNT.

No monthly fees. No minimums. No worries.

Talk to a Meridian Advisor today.

™Trademarks of Meridian Credit Union Limited. Rates are subject to change without notice. 09/2015

With the opening of seven new branch locations in 2015, Meridian continued to deliver on its promise to provide Members with greater access to our banking services. Throughout the year, we opened five new branches across the GTA and two new branches in Cambridge, bringing the total number of Meridian branches to 74. We remain committed to expanding our branch footprint in 2016 and beyond.

With Meridian’s ‘Good To Grow’ High Interest Savings Account, Members can earn a market-leading rate on every dollar invested without paying any monthly fees. In 2015, Meridian promoted our High-Interest Savings Account with our most ambitious multimedia advertising campaign to-date. Throughout 2015, Meridian continued to build on our digital banking enhancements with the introduction of our new mobile app for Android and iPhones. The updated mobile app featured a customizable navigation bar and enhanced functionality. In December, Meridian launched our new tablet app – allowing a more optimized online banking experience. Lastly, 2015 saw the addition of two new online banking alerts that help keep Members up to date with their finances.

DELIVERING MARKET-LEADING PRODUCTS AND SERVICES

Corporate Highlights

11

2015 Annual Report | Corporate Highlights

HELPING MEMBERS SAVE ON THEIR MORTGAGES

Earn 4.00%• 4.00% target annual dividend rate

• Dividends not guaranteed, see Offering Statement for full details

Get your money working harder with our Let’s Get Growing Class A Investment Shares

TMTrademark of Meridian Credit Union Limited.

Let’s get growing.

Visit meridiancu.ca or call 1-866-592-2226 to become a Member and subscribe today.

Shares available while supplies last.

In the spring of 2015, Meridian turned heads when we announced the lowest known posted mortgage rate in Canadian history. Our 18-month fixed rate of 1.49% represented a first in the financial industry and further reinforced the fact that as a Member-owned institution, Meridian has our Members’ backs. By offering competitive mortgage rates, Meridian helps Members pay their mortgages off more quickly and save money on interest costs.

COMPLETING A SUCCESSFUL SHARE OFFERING

Meridian’s ‘Let’s Get Growing’ Class A share offering this past summer was extremely well-received, with Members purchasing a total of $120 million in shares. This successful investment offering strengthens Meridian’s operating base, supports our future growth and positions us to better serve our Members. And at the same time, it provides those Members who purchased shares with the opportunity to take advantage of a target annual dividend rate of 4.00% on their investment.

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2015 Annual Report | Financial Highlights 13

Financial Highlights Meridian achieved record relationship growth, growing the lives of our Members, while our earnings continued to contribute to a strong capital position.

Performance Ratios Minimum

Regulatory Required

2015 2014

Capital Ratio 4.0% 7.1% 6.4%

Risk Weighted Capital 8.0% 14.3% 13.2%

Liquidity Ratio - 11.7% 10.5%

Return on Average Equity * - 2.9% 5.8%

Annual Dividend Payments ($ millions)

- $11.7 $11.3

* Return on Average Equity (ROE) represents total comprehensive income (OCI) as a percentage of average total equity.

In 2015 OCI included a $14.4 million loss associated with changes in fair value of cash-flow hedges, which are subject to volatility in the equity markets. Removing the impact of the OCI loss, focusing on profits attributable to Members would result in an ROE of 5.0% in 2015 and 7.4% in 2014.

Total relationships with Members grew to $20.3 billion.

Record relationship growth was achieved across all product categories, particularly Retail mortgages, Commercial deposits and mutual funds.

Pre-tax earnings totaled $38.5 million.

Net interest income continued to grow steadily, driven by increased relationships.

Strategic investments in new branches, building awareness of Meridian in Ontario and improving the experience of Members resulted in increased expenses.

Our capital position remained strong.

Our capital and liquidity positions are strong and well exceed regulatory and Board policy limits.

Our Return on Members' equity declined as capital was strategically invested for future success.

Meridian paid $11.7 million in dividends.

Members exhibited a strong appetite for our $120 million Investment Share offering.

* Includes share of profits from investments in associates and joint venture. ** Excludes Desjardins Credit Union amalgamation expenses, amortization of fair value adjustments, pension curtailment gains, and a one-time charge for a branch relocation.

Financial Highlights

meridiancu.ca

™Trademarks of Meridian Credit Union Limited.