EV ENT S C H ED U LE Welcome

Invocation

Dinner

Scholarship Presentation

Special Guest - Grant Thompson of Lorain County Metro Parks

A n n ua l B u s i n ess M eeti n g Determination of Quorum

Roll Call of Directors & Committee Members

Chairman’s Report

Supervisory Audit Committee Report

Treasurer’s Report

Results of the Nomination and Election of the Board of Directors

Unfnished Business

New Business

Meeting Adjournment

ANNUAL R EPO RT 2 01 5 Yea r i n r ev i ew

5 8th A n n ua l M eeti n g A pr i l 14, 2 01 6

S pitz er Co n fer en c e C enter Lo ra i n Co u nty Co m m u n ity Co lleg e

Awarding of Door Prizes Must be present to win.

VO LU N T EERS A N D STA FF C o nti n u ed Board of Directors Andrew Lingler, Chairman Richard Killen, Vice Chairman Marilyn Tipple, Secretary Wanda DiVencenzo, Director Edward Syrowski, Director Henry “Hank” Harsar, Director Carolyn May, Director Paulette Paine, Director John Bartter, Director Emeritus

Supervisory Audit Committee Kathy Runser, Chairperson Karen Sprague Leo Citro

Management Team Neil R. Sommers, CEO Karen S. Akers, CPA, CFO Shannon Boesel, HR Manager Ethel Frye, Operations Manager Kathy Garvey, Member Services

Manager Michelle Gonzalez, Lorain Branch

Manager Becky Ryan-Monschein, Teller /

HUB Manager

Accounting Pamela Spence

Call Center Representatives Tosh Cabbil Sue Sage Sue Ellen Shepherd

Financial Services Representatives Brad Niece, FSR Coordinator Karyn Bevins Denise Carreon Shannon Fridrich Ashley Henderson Tyler Johnston (Lorain Branch) Blaine Padgett Mindy Piskur Ginger Slone Carl Vass (Lorain Branch)

HUB Coordinators Sally Knoll Tina Rankin Kathy Sislowski Deb Zvara

MARKETING Karen Zemanek Demi Barrett

Operations SpecialistS Cheryl Fleming Nona Jackson Connie Smith Karla Staylon

Tellers Lori Morris, Head Teller Becky Karpinski, Asst. Head Teller Tyler Buga Jan Doyle Emily Hawkins Nicole Myers Emily Underwood (Lorain Branch)

Visa Administrator Je˛ Kovacs

Attorney Weltman, Weinberg & Reis

Auditors Lillie & Company, LLC

Registered representatives from LPL Financial Cheryl Janik Renee Dietz

Attention was called to the Supervisory Audit Committee Report in the program and the committee members were recognized for their work that was done in 2014.

Richard Killen, of the Nominating Committee, presented the slate of Andrew Lingler, Marilyn Tipple and Ed Syrowski to continue as directors for a 3 year term ending in 2018. A motion was made by Bob Balogh and seconded by Tonya White to approve the slate as presented. The nominees were unanimously approved.

There was no unfnished business and no new business to discuss.

Andrew Lingler, Vice-Chairman, o°cially adjourned the 57th Annual Meeting. The board of directors awarded the traditional door prizes consisting of three $50 and four $25. The meeting adjourned at 7:45p.m.

Respectfully Submitted, Marilyn Tipple

Secretary, Board of Directors

S U P ERV I S O RY AU D I T C O M M I TT EE Kathy Runser, Chairperson

During 2015, members of the Supervisory Audit Committee performed random cash counts of the teller stations and the vault. The accounting frm of Lillie & Company, LLC reviewed loan fles, accounting practices and performed the members’ account verifcation.

Based on our audits and those of Lillie & Company, LLC, it is the opinion of the Supervisory Audit Committee that the fnancial condition of School Employees Lorain County Credit Union, Inc. is strong and its policies and procedures are e˛ective.

Respectfully, Kathy Runser - Chairperson, Supervisory Audit Committee

57th a n n ua l m eet i n g m i n u t es - 2 0 1 5 C h a i r m a n's r epo rt Marilyn tipple, secretary - board of directors

The 57th Annual Meeting was held on the 16th day of April (Thursday), 2015 at The Spitzer Conference Center, Lorain County Community College.

Neil R. Sommers welcomed the credit union members and their guests. He asked everyone to stand for the Pledge of Allegiance. Paulette Paine, Board Director, gave the invocation. Dinner was served at 6:00p.m.

The scholarship committee was introduced (Carolyn May, Henry Harsar and Marilyn Tipple). Henry Harsar presented the scholarship recipients with their certifcates. The scholarship recipients were Mariah Cotton, Jordan Jaeckin (Warren Wallace Education Major Scholarship), Tyra Darden, and Madison Filipiak.

Neil R. Sommers introduced our guest speaker, Paul Mercer, Ohio Credit Union League President.

Andrew Lingler, Vice-Chairman of the Board, called the 57th annual business meeting to order at 7:15 p.m. and referred to the 2015 Chairman’s report in the program. Some of the highlights touched upon in the report were:

• SELCCU’s merger with Lorain School Employees Credit Union (LSECU) on July 1, 2014. This provided SELCCU with the opportunity for two additional

school branches. • Following the merger, the Board of Directors appointed Neil R. Sommers, who recently served as CEO of Lorain School Employees Credit Union, to serve as CEO of SELCCU. • SELCCU’s asset size increased from more than $140 million in 2013 to $154 million in 2014, making us the largest credit union in Lorain County. • Henry Harsar was appointed as SELCCU’s newest board member; Henry previously served on the Board of Directors for LSECU.

Neil R. Sommers then gave the report of the state of the credit union and referred to the Comparative Financial Report and emphasized the importance of the credit union making loans.

Andrew Lingler convened those assembled to the business portion of the 57th annual meeting. As Vice-Chairman of the board of directors, he determined a quorum was present. A roll call of the board of directors was conducted.

Marilyn Tipple, Secretary of the Board, referred to the minutes of the 56th annual meeting. A motion was made by Richard Sharrock and seconded by Margaret Hamm to approve the minutes as written. The motion carried.

Andrew Lingler, Chairman - board of directors

Even though 2015 proved to be a challenging year for the fnancial industry, the year was very productive here at School Employees Lorain County Credit Union. Our outreach providing Financial Literacy programs to schools has continued. In 2015, we participated in over 720 fnancial education opportunities at more than 17 educational facilities. These programs helped students in Lorain County get a better understanding of fnance. In addition, our Financial Service Representatives (FSRs) have participated in programs leading to their obtaining Financial Counseling Certifcates. The training which lead to the Certifcation will allow them to help members reach their fnancial goals by providing information concern-ing spending and saving habits and repaying debt which will beneft our members.

We are committed to providing a positive impact for our communities. SELCCU has continued awarding four $1,000 Scholarships to assist young adults obtain post high school education and four $250 mini grants to teachers to help them fnance enrichment activities which they could not otherwise have been able to do. Our Care Connection Committee, along with our members, raised nearly $5,000 in cash and over $1,000 in toys and food for local charity organizations, including The Salvation Army, The Children’s Developmental Center, Genesis House & the Friendship Animal Protective League. This exemplifes the Credit Union National Association’s motto of “People Helping People.”

In 2015, we saw three longtime employees retire: Mary Vaughn with 11 years of service in Membership Development, Marianne Jalowiec with 32 years of service in Member Service and Patty Baker with 29 years of service as a Financial Service Representative & IRA Consultant. We wish them the best in their retirement.

Near the end of 2015, we hired a marketing communications consultant. A strategic marketing communications plan was created, along with some very aggressive loan growth goals. There has already been a noticeable change in our marketing communications programs, so 2016 should be very exciting.

We look forward to 2016, where we continue o˛ering a wide variety of services to meet your fnancial needs.

S C H O O L EM P LOY EES LO R A I N C O U N TY C R ED I T U N I O N, I N C. Comparative Financial Report

Consolidated Consolidated Consolidated Consolidated 12/31/2015 12/31/2014 12/31/2015 12/31/2014

ASSETS INCOME Home Equity Loans $ 14,315,921 $ 14,237,888 Income on Loans $ 2,167,128 $ 2,252,478 First & Second Mortgages 13,553,509 15,863,642 Income on Investments 839,667 667,646 VISA 9,436,527 10,099,951 VISA Interest Income 788,059 837,813 Motor Vehicle Loans 16,843,807 18,688,370 Fee & Other Operating Income 1,157,370 1,104,641 Share Secured & Personal Loans 265,045 313,655 Total Income 4,952,224 4,862,578 Other Unsecured Loans 2,769,897 2,817,652 Less Allowance for Loan Loss (216,579) (252,014) OPERATING EXPENSES Total Loans 56,968,127 61,769,144 Administration & Operations 2,490,478 2,371,567

Occupancy 641,917 529,586 Cash 20,807,952 31,114,687 Loan Servicing 725,189 758,964 Investments 72,020,973 56,037,203 Professional & Outside Services 602,159 666,336 Share Insurance Deposits 1,931,724 1,948,895 Provision for Loan Losses 198,988 139,107 Accrued Interest Receivable 249,926 204,328 Dividends 228,719 335,973 Other Assets 1,572,717 1,325,499 Total Operating Expenses 4,887,450 4,801,533 Land & Buildings (Net) 1,657,166 1,740,990 Furniture & Fixtures (Net) 327,762 89,491 NON-OPERATING ITEMS Total Other Assets 98,568,220 92,461,093 Gain (Loss) on Sale of Investments 0 (5,482)

Bargain Purchase Gain 0 271,458 TOTAL ASSETS $ 155,536,347 $ 154,230,237

NET INCOME $ 64,774 $ 327,021 LIABILITIES # of accounts Shares 13,876 $ 33,095,609 $ 30,294,398 IRAs 663 10,989,470 12,319,438 Certifcates 1,880 28,209,445 32,892,808 MMIAs 2,220 46,571,914 45,958,284 Share Drafts 5,683 17,566,158 18,402,697 Other Share Accounts 1,836 2,091,924 2,572,659 Total Shares 138,524,520 142,440,284

Other Liabilities 536,026 (4,647,134) Net Worth 16,475,801 16,437,087

TOTAL LIABILITIES & $ 155,536,347 $ 154,230,237 NET WORTH