2 0 1 4 A N N U A L R E P O R T

Management ReportIn 2014 the credit union experienced excellent growth and continued strength. We continued with our primary objective; to build financial relationships with our members.

One of our successes was lending to our membership. The credit union has an established niche of granting loans directly at the car dealership as a convenience to our membership. Dealerships earn a fee for processing loans. Our efforts this past year have concentrated on lending directly to the member. This cost savings to the credit union allows us to provide more affordable options directly to the member.

In 2014 we originated a record amount of new loans directly to our members. Over $30 million in new loans were closed at our branches. This is approximately $3 million more than the previous year. Direct lending, excluding mortgages, rose from 37% of new loans to 47%. In total over $65 million in new loans were granted to our membership.

This was the first full year for our newly constructed, full-service branch on Fort Wayne’s northeast side, on Dupont Rd. This branch has steadily continued to add new members and new loans. This has become a very competitive corner of town. Through excellent service and great follow-through we will continue to steadily grow.

Another highlight was our merger with ITT Employees Federal Credit Union. We were very pleased that the board and membership of ITT chose and voted to merge with Fort Financial. This added approximately 3,000 members and $30 million in assets. We continue to service the employees of Exelis (formerly known as ITT). This expanded their product and branch availability.

Monitoring and measuring our levels of service is important to us. In 2014, we received over 900 service surveys from our membership. A survey is mailed to every new member to the credit union and randomly to existing members that conducted a transaction at a branch. In addition, we hired an independent service to shop each location throughout the year and rate our service. I am very pleased that our service levels were rated by our membership as being excellent. We improved our overall satisfaction scores to over 9.5 out of 10.

We will continue to strive at providing the reasons for you to continue to do business with us. This includes improving technology, a broader range of products and top quality service. These will continue to be a focus for the coming year.

Annual Meeting MinutesChairman Nick Bond opened the 67th Annual Meeting of Fort Financial Credit Union, held at Don Hall’s Guesthouse in Fort Wayne, Indiana beginning at 12 PM, March 15, 2014.

Chairman Bond requested Secretary Francine Good to present the invocation.

The Fort Wayne Children’s Choir provided music, which was enjoyed by all.

Chairman Bond welcomed all in attendance. Chairman Bond requested the Board’s Secretary to affirm if a quorum was present. Secretary Good confirmed a quorum was present according to the Federal Credit Union By-Laws, Section 5.

Secretary Good presented the 66th Annual Meeting Minutes as printed in the Annual Report. A motion was made and seconded to accept the minutes as presented. Motion carried.

President and Chief Executive Officer Steve Collins presented the Executive Report as printed in the Annual Report.

Supervisory Committee Chairperson Mary Michalak, presented the Supervisory Committee Report and introduced Joan Hiemstra, the Board’s Internal Auditor.

Treasurer Eric McKinley reviewed the Treasurer’s Report as printed.

Chairman Bond introduced and thanked the Fort Financial Credit Union staff responsible for the Annual Meeting preparations.

Chairman Bond presented the Nominating Committee Report.

Chairman Bond adjourned the business meeting at 1:00 PM. Door prizes were awarded to members as attendance prizes.

Chairman’s ReportI would like to welcome our newest partner members from the former ITT Credit Union to Fort Financial. I believe this has been a great merger for both our credit unions and offered a much expanded package of products and services.

In 2014, Fort Financial set records again as we worked towards our strategic goals of building better relationships with our members. For 2015, Fort Financial will continue to expand the range of our products and services to meet the ever-changing market, along with expanding our technology offerings.

Look for another record year for Fort Financial in 2015. Thank you for placing your trust in our credit union.

2 FORT FINANCIAL CREDIT UNION

Management ReportIn 2014 the credit union experienced excellent growth and continued strength. We continued with our primary objective; to build financial relationships with our members.

One of our successes was lending to our membership. The credit union has an established niche of granting loans directly at the car dealership as a convenience to our membership. Dealerships earn a fee for processing loans. Our efforts this past year have concentrated on lending directly to the member. This cost savings to the credit union allows us to provide more affordable options directly to the member.

In 2014 we originated a record amount of new loans directly to our members. Over $30 million in new loans were closed at our branches. This is approximately $3 million more than the previous year. Direct lending, excluding mortgages, rose from 37% of new loans to 47%. In total over $65 million in new loans were granted to our membership.

This was the first full year for our newly constructed, full-service branch on Fort Wayne’s northeast side, on Dupont Rd. This branch has steadily continued to add new members and new loans. This has become a very competitive corner of town. Through excellent service and great follow-through we will continue to steadily grow.

Another highlight was our merger with ITT Employees Federal Credit Union. We were very pleased that the board and membership of ITT chose and voted to merge with Fort Financial. This added approximately 3,000 members and $30 million in assets. We continue to service the employees of Exelis (formerly known as ITT). This expanded their product and branch availability.

Monitoring and measuring our levels of service is important to us. In 2014, we received over 900 service surveys from our membership. A survey is mailed to every new member to the credit union and randomly to existing members that conducted a transaction at a branch. In addition, we hired an independent service to shop each location throughout the year and rate our service. I am very pleased that our service levels were rated by our membership as being excellent. We improved our overall satisfaction scores to over 9.5 out of 10.

We will continue to strive at providing the reasons for you to continue to do business with us. This includes improving technology, a broader range of products and top quality service. These will continue to be a focus for the coming year.

Annual Meeting MinutesChairman Nick Bond opened the 67th Annual Meeting of Fort Financial Credit Union, held at Don Hall’s Guesthouse in Fort Wayne, Indiana beginning at 12 PM, March 15, 2014.

Chairman Bond requested Secretary Francine Good to present the invocation.

The Fort Wayne Children’s Choir provided music, which was enjoyed by all.

Chairman Bond welcomed all in attendance. Chairman Bond requested the Board’s Secretary to affirm if a quorum was present. Secretary Good confirmed a quorum was present according to the Federal Credit Union By-Laws, Section 5.

Secretary Good presented the 66th Annual Meeting Minutes as printed in the Annual Report. A motion was made and seconded to accept the minutes as presented. Motion carried.

President and Chief Executive Officer Steve Collins presented the Executive Report as printed in the Annual Report.

Supervisory Committee Chairperson Mary Michalak, presented the Supervisory Committee Report and introduced Joan Hiemstra, the Board’s Internal Auditor.

Treasurer Eric McKinley reviewed the Treasurer’s Report as printed.

Chairman Bond introduced and thanked the Fort Financial Credit Union staff responsible for the Annual Meeting preparations.

Chairman Bond presented the Nominating Committee Report.

Chairman Bond adjourned the business meeting at 1:00 PM. Door prizes were awarded to members as attendance prizes.

Chairman’s ReportI would like to welcome our newest partner members from the former ITT Credit Union to Fort Financial. I believe this has been a great merger for both our credit unions and offered a much expanded package of products and services.

In 2014, Fort Financial set records again as we worked towards our strategic goals of building better relationships with our members. For 2015, Fort Financial will continue to expand the range of our products and services to meet the ever-changing market, along with expanding our technology offerings.

Look for another record year for Fort Financial in 2015. Thank you for placing your trust in our credit union.

2 FORT FINANCIAL CREDIT UNION

Treasurer’s ReportThe credit union once again was able to achieve both positive growth and earnings in 2014. By far the largest contribution to the growth of the credit union came from the merger with ITT Employees FCU on July 1st. Between the merger and existing operations, Fort Financial Credit Union ended the year with assets totaling $195,848,688, up 17.8% from the year prior. The credit union was able to earn a net income of $898,082 on its assets, giving it a return on average assets of .50% compared to the industry peer ratio of .59%.

Total Income for the year was $11,832,572 up almost $200,000 from last year. Almost all major categories of income were up for the year. The majority of the credit union’s income continues to come from loans and credit cards. During the year, income from those products was up 4.2%. Total expenses for the year were $9,203,428, up 3.4% from 2013 and well within budgeted levels.

Fort Financial ended 2014 with the total loans outstanding of $162,388,045 up from $145,447,978 in 2013 or 11.6%. All loan products during the year saw increases from ending balances in 2013. The largest increase in the portfolio came from auto loans, which were up $6,366,271, followed by a $5,904,817 increase in mortgage loans. Year-end deposits totaled $178,223,515, up 18.6% from the previous year’s balance of $150,221,957 demonstrating our members trust in Fort Financial as a safe and sound financial institution.

In summary, the credit union continued to achieve the majority of its financial goals for the year and at the same time maintain a healthy capital ratio and position itself to meet the challenges of the coming years. As many financial institutions continue to struggle as a result of the great recession of 2008/2009, the credit union has had positive earnings for the past three years in a row. The credit union is still classified as well capitalized by the NCUA (its highest rating) with a capital ratio of 9.15% as of the end of 2014, which is up from 8.44% at the end of last year.

4 FORT FINANCIAL CREDIT UNION 2014 ANNUAL REPORT 5

Supervisory Committee ReportThe Supervisory Committee is responsible for the continued review of credit union activities, ensuring that financial records are accurate and internal controls are in place to protect the credit union and our member’s assets. The Committee accomplishes this by overseeing various audits, financial analysis and procedural reviews.

The firm of CliftonLarsonAllen is in the process of performing an audit of the December 31, 2014, financial statements. Their previous audit did not disclose any material discrepancies and indicated that accounting records are maintained in accordance with generally accepted accounting principles and federal credit union guidelines.

We appreciate our members’ involvement and commitment to Fort Financial Credit Union. The Committee pledges to remain current on credit union issues and respond to any questions in 2015.

Valerie Eakins, ChairpersonMary MichalakChristopher Reed

Treasurer’s ReportThe credit union once again was able to achieve both positive growth and earnings in 2014. By far the largest contribution to the growth of the credit union came from the merger with ITT Employees FCU on July 1st. Between the merger and existing operations, Fort Financial Credit Union ended the year with assets totaling $195,848,688, up 17.8% from the year prior. The credit union was able to earn a net income of $898,082 on its assets, giving it a return on average assets of .50% compared to the industry peer ratio of .59%.

Total Income for the year was $11,832,572 up almost $200,000 from last year. Almost all major categories of income were up for the year. The majority of the credit union’s income continues to come from loans and credit cards. During the year, income from those products was up 4.2%. Total expenses for the year were $9,203,428, up 3.4% from 2013 and well within budgeted levels.

Fort Financial ended 2014 with the total loans outstanding of $162,388,045 up from $145,447,978 in 2013 or 11.6%. All loan products during the year saw increases from ending balances in 2013. The largest increase in the portfolio came from auto loans, which were up $6,366,271, followed by a $5,904,817 increase in mortgage loans. Year-end deposits totaled $178,223,515, up 18.6% from the previous year’s balance of $150,221,957 demonstrating our members trust in Fort Financial as a safe and sound financial institution.

In summary, the credit union continued to achieve the majority of its financial goals for the year and at the same time maintain a healthy capital ratio and position itself to meet the challenges of the coming years. As many financial institutions continue to struggle as a result of the great recession of 2008/2009, the credit union has had positive earnings for the past three years in a row. The credit union is still classified as well capitalized by the NCUA (its highest rating) with a capital ratio of 9.15% as of the end of 2014, which is up from 8.44% at the end of last year.

4 FORT FINANCIAL CREDIT UNION 2014 ANNUAL REPORT 5

Supervisory Committee ReportThe Supervisory Committee is responsible for the continued review of credit union activities, ensuring that financial records are accurate and internal controls are in place to protect the credit union and our member’s assets. The Committee accomplishes this by overseeing various audits, financial analysis and procedural reviews.

The firm of CliftonLarsonAllen is in the process of performing an audit of the December 31, 2014, financial statements. Their previous audit did not disclose any material discrepancies and indicated that accounting records are maintained in accordance with generally accepted accounting principles and federal credit union guidelines.

We appreciate our members’ involvement and commitment to Fort Financial Credit Union. The Committee pledges to remain current on credit union issues and respond to any questions in 2015.

Valerie Eakins, ChairpersonMary MichalakChristopher Reed

2014 2013 2012

Income

Interest on Credit Cards 369,302 186,788 163,639

Interest on Other Loans 6,848,269 6,738,581 6,209,815

Income on Investments 110,859 51,781 87,200

Miscellaneous Income 4,450,446 3,945,030 4,132,062

Other Gains or Losses 53,696 717,552 72,003

Total Income 11,832,572 11,639,732 10,664,719

Expenses

Salaries (Wages) 3,495,418 3,343,241 3,355,358

Benefits 1,225,109 1,447,763 1,068,316

Travel & Conference 122,714 141,427 96,511

Association Dues 5,545 6,326 6,066

Office Occupancy 736,933 654,513 731,616

Office Operations 2,704,073 2,223,315 2,259,531

Loan Servicing 234,495 251,574 277,652

Outside Services 664,019 660,552 638,365

Operating Fee (NCUA) 1,735 157,429 178,097

Miscellaneous 13,387 15,509 8,871

Total Operating Expenses 9,203,428 8,901,649 8,620,383

Distribution of Income

Dividends (All Accounts) 405,320 484,531 700,980

Provisions for Loan Losses 1,324,432 729,591 391,369

Interest on Borrowed Money 1,310 4,642 538

Net Income to Undistributed Earnings 898,082 1,519,319 951,449

2014 2013 2012

Assets

Credit Card Loans 8,163,559 4,252,757 2,879,952

Real Estate Loans 40,492,487 34,587,670 31,262,396

All Other Loans 113,731,998 106,607,551 91,340,774

Allowance for Loan Loss (1,551,554) (1,321,566) (1,148,403)

Cash on Hand 4,677,697 4,143,060 3,011,072

Investments 18,027,107 5,673,003 21,614,868

Land & Building 5,613,639 5,788,641 4,978,135

Other Assets 6,693,755 6,568,428 6,394,114

Total Assets 195,848,688 166,299,544 160,332,888

Deposits

Liabilities

Certificates 18,631,616 21,843,892 18,805,497

Share Drafts 32,564,377 23,170,552 24,266,088

IRAs 16,689,967 14,248,246 15,804,214

All Other Deposits 110,337,555 90,959,267 90,496,252

Total Deposits 178,223,515 150,221,957 149,372,051

Other Liabilities 974,105 3,315,727 813,782

Equity Capital 16,651,068 12,761,860 10,147,055

Total Equity and Liabilities 195,848,688 166,299,544 160,332,888

Operating Statement

Financial Statement

6 FORT FINANCIAL CREDIT UNION

2014 2013 2012

Income

Interest on Credit Cards 369,302 186,788 163,639

Interest on Other Loans 6,848,269 6,738,581 6,209,815

Income on Investments 110,859 51,781 87,200

Miscellaneous Income 4,450,446 3,945,030 4,132,062

Other Gains or Losses 53,696 717,552 72,003

Total Income 11,832,572 11,639,732 10,664,719

Expenses

Salaries (Wages) 3,495,418 3,343,241 3,355,358

Benefits 1,225,109 1,447,763 1,068,316

Travel & Conference 122,714 141,427 96,511

Association Dues 5,545 6,326 6,066

Office Occupancy 736,933 654,513 731,616

Office Operations 2,704,073 2,223,315 2,259,531

Loan Servicing 234,495 251,574 277,652

Outside Services 664,019 660,552 638,365

Operating Fee (NCUA) 1,735 157,429 178,097

Miscellaneous 13,387 15,509 8,871

Total Operating Expenses 9,203,428 8,901,649 8,620,383

Distribution of Income

Dividends (All Accounts) 405,320 484,531 700,980

Provisions for Loan Losses 1,324,432 729,591 391,369

Interest on Borrowed Money 1,310 4,642 538

Net Income to Undistributed Earnings 898,082 1,519,319 951,449

2014 2013 2012

Assets

Credit Card Loans 8,163,559 4,252,757 2,879,952

Real Estate Loans 40,492,487 34,587,670 31,262,396

All Other Loans 113,731,998 106,607,551 91,340,774

Allowance for Loan Loss (1,551,554) (1,321,566) (1,148,403)

Cash on Hand 4,677,697 4,143,060 3,011,072

Investments 18,027,107 5,673,003 21,614,868

Land & Building 5,613,639 5,788,641 4,978,135

Other Assets 6,693,755 6,568,428 6,394,114

Total Assets 195,848,688 166,299,544 160,332,888

Deposits

Liabilities

Certificates 18,631,616 21,843,892 18,805,497

Share Drafts 32,564,377 23,170,552 24,266,088

IRAs 16,689,967 14,248,246 15,804,214

All Other Deposits 110,337,555 90,959,267 90,496,252

Total Deposits 178,223,515 150,221,957 149,372,051

Other Liabilities 974,105 3,315,727 813,782

Equity Capital 16,651,068 12,761,860 10,147,055

Total Equity and Liabilities 195,848,688 166,299,544 160,332,888

Operating Statement

Financial Statement

6 FORT FINANCIAL CREDIT UNION

Corporate Office3102 Spring St.Fort Wayne, Indiana 46808

IndianaAngola Office603 Harcourt Rd.Angola, Indiana 46703

Auburn Office1302 S. GrandstaffAuburn, Indiana 46706

Churubusco Office702 State Road 205Churubusco, Indiana 46723

Dupont Office4929 E. Dupont Rd. Fort Wayne, Indiana 46825

Fort Wayne Meijer - Northeast10301 State Road 37 / Maysville Rd.Fort Wayne, Indiana 46835

Fort Wayne Meijer - Northwest6309 Lima Rd. Fort Wayne, Indiana 46818

Fort Wayne Meijer - Southwest5909 Illinois Rd.Fort Wayne, Indiana 46804

Summit Park Office7310 Innovation Blvd.Fort Wayne, Indiana 46818

MississippiCorinth Office1808 S. Fulton Dr.Corinth, Mississippi 38834

North CarolinaGastonia Office1475 N. New Hope Rd.Gastonia, North Carolina 28054

Board of DirectorsNick Bond, Chairperson Russ Moore Transmission, CEO

Jeff Leichty, Vice Chairperson Indiana Tech, Director of IT

Francine Good, Secretary Mattress Warehouse, President

Dave Eckert, Treasurer Exelis, Retired

Bob Martin, Board Member Dana Corporation, Retired

George Eldridge, Board Member Dana Corporation, Retired

Steve Collins, Board Member Fort Financial Credit Union, President & CEO

Mary Michalak, Assoc. Board Member C&G Companies / InfoBind Systems, President & CEO

Executive ManagementSteve Collins, President & CEO

Michael Stratton, CFO & VP of Strategic Services

Tammy Hartman, VP of Sales & Service

Michael Boker, VP of Information Technology

Supervisory CommitteeVal Eakins, Chairperson Ivy Tech, Executive Director of Administration

Christopher Reed, Committee Member Fort Wayne Police Dept., Police Officer

Mary Michalak, Committee Member C&G Companies & InfoBind Systems, President & CEO

Joan Hiemstra, Committee Liaison Fort Financial Credit Union, Audit Manager | Compliance Officer

Locations

www.fortfinancialcu.org