2017ANNUALREPORT

Guiding you forward

PRESIDENT’S REPORT 2

CHAIRPERSON’S REPORT 4

SUPERVISORY AUDITS 5

IMPROVING MEMBERS’ LIVES 6

HONORING EXCELLENCE 6

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION 7

CONSOLIDATED STATEMENTS OF INCOME 8

BRANCH LOCATIONS 9

TABLE OF CONTENTS

““Our top priority is to serve the membership and offer great service. What we have found is that members share their stories with friends and family. As a result, we grow. This growth excites us because it means we are providing quality service to the membership.

–Sterling NielsenPresident/CEO

The past year was one of solid growth.

Mountain America Credit Union now serves over

700,000 members in five states, with 87,000

net new members joining during 2017. These

new members, along with our existing, dedicated

members, helped the credit union grow over $1

billion in assets in just one year.

You may wonder why Mountain America is growing

so quickly. We do not exist to grow. Our top

priority is to serve the membership and offer great

service. What we have found is that members

share their stories with friends and family. As a

result, we grow. This growth excites us because it

means we are providing quality service to

the membership.

With growth comes new developments. Many of

you have noticed the construction of our beautiful

new corporate headquarters in Sandy, Utah.

Before we came to this decision, all options were

evaluated carefully to determine the best use of

member resources. In the end, this location next

to I-15 will not only be the best—it will also be

the most cost effective. By acting on a building

opportunity that was already in design and ready

for construction, we were able to avoid many

of the market’s cost increases while utilizing a

wonderful facility for the same or less expense

than another building.

The new corporate headquarters will use space

much more efficiently and enable the credit

union to attract and retain the best talent. Based

on current projections, the new facility will be

ready during the third quarter of 2018.

Mountain America strives to give back to the

community in meaningful ways through many

wonderful programs, activities and partnerships.

PRESIDENT’S REPORT

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2017 ANNUAL REPORT

PRESIDENT’S REPORT

Here are a few examples:

u Hale Centre Theatre—we will share a

parking structure adjacent to our new

building. Members can already benefit

with show discounts and will notice the

Mountain America Performing Arts Centre

name on the building.

u Mountain America Expo Center—this

sponsorship gives us the opportunity

to support Salt Lake County and provide

financial education resources to

the community.

u Utah Jazz—we support the “Pass It Along”

program and donate to the Huntsman

Cancer Institute for every three-pointer.

u KUTV—Mountain America sponsors the

“Pay It Forward” segment to help those doing

great acts of kindness in the community.

u Swing for the Kids—this annual golf

tournament has raised over $1.1 million to

support Primary Children’s Hospital.

We support similar programs in Arizona, New

Mexico, Nevada and Idaho through partnerships

such as the National PTA® and the Boise State

University first-down donation benefiting

St. Luke’s Children’s Hospital. We are very proud

to make a difference in the communities we

serve and are grateful to support so many

worthwhile causes.

The most important difference we can make

is in the lives of the membership. We love to

hear stories about how lives have improved

through the service and advice of our dedicated

staff. These stories are shared throughout the

credit union. Some of these instances are truly

life changing as members have their financial

burdens lightened.

I am very fortunate to work with some of the

best employees and volunteers. The volunteer

board members and supervisory committee

members of Mountain America are dedicated

and represent the membership well. It is an

honor to work with them as well as over 2,000

wonderful employees. They have made

Mountain America an outstanding

financial institution!

Thank you for the trust you place in

Mountain America. We value your membership.

Sterling Nielsen

President/CEO

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Mountain America Credit Union is serving

members at 89 branches across five states. We

also have nationwide access to 50,000 surcharge-

free, CO-OP and MoneyPass ATMs and 5,000

shared branching locations. This gives you

the ability to perform financial transactions at

thousands of convenient locations. We strive to be

where you need us to be.

However, the most powerful branch access we

offer is not at a specific location—you carry it

with you in your pocket or purse. Our mobile app

gives you access to your money 24 hours a day,

seven days a week.

Mountain America is continually striving to make

technology advancements that provide the most

up-to-date tools for your money management

experience. Staying technologically current means

there is constant change. Sometimes these

changes can lead to questions or confusion. When

that happens, know that there is a well-trained

person waiting to address your concern.

My first year as chairperson of Mountain America

Credit Union has been uplifting and rewarding. Of

course, the credit union is one of the very best in

the country. The employees who work every day to

meet the members’ needs and help you achieve

your financial dreams make it such a special place.

I have greatly enjoyed interacting with our

employees in my new role as chairperson.

They truly go out of their way to improve your

experience. The employees work together with

a common goal to do their best. This makes

Mountain America a wonderful place to work.

I have heard countless stories about how

employees make Mountain America an

exceptional place for members. It is my hope

that you experience firsthand what a wonderful

asset Mountain America can be for you and

that you share that knowledge with family

and friends.

We are more than a financial institution

that holds your money and makes loans for

shareholder gain. Mountain America is a not-

for-profit entity that exists for the benefit of our

members. We seek to provide products and

services to help guide you forward.

Scott Burt

Board Chair

CHAIRPERSON’S REPORT

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2017 ANNUAL REPORT

The Supervisory Committee oversees ongoing

credit union audits to ensure that internal controls

are in place and followed. The audits also ensure

that accounting records and reports accurately

reflect the credit union’s financial position and

operations, thus protecting our members’ assets.

During 2017:

u Internal auditors conducted 92 branch

reviews, 39 IT/operational/compliance reviews

and 165 targeted/ad-hoc reviews of various

credit union areas.

u Successful external audit exams were

conducted by the U.S. Department of Housing

and Urban Development (HUD), Mortgage

Electronic Registration System (MERs) and

Small Business Administration (SBA).

u The credit union was examined by the

National Credit Union Administration (NCUA).

u The financial statements were audited by the

independent certified public accounting firm

of Moss Adams LLP.

BOARD OF DIRECTORS

Scott Burt, Chair

Lynn Ure, Vice Chair

Charlie Fulks, Secretary

Bruce Reading

Diane Mansfield

Michael Allen

Sam Blundell

Julie Wray

Joel Steadman

SUPERVISORY COMMITTEE

David Swan, Chair

Kelly Holt

David Kwant

Marla Spear

Matthew Taggart

SUPERVISORY AUDITS

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Member stories highlight the numerous ways in

which Mountain America offers valuable service

by placing members first.

One of our favorite stories from this past year

celebrates a family’s journey to pay off their

mortgage and become completely debt-free.

Through the help of Mountain America, the

family consolidated $20,000 in credit card debt

and refinanced their mortgage into a payment

program that worked for them. They made their

final mortgage payment in July 2017.

Another positive story illustrates

Mountain America helping a business owner

succeed. As the most active SBA credit union

lender in the country, our business lending team

takes pride in helping members who have been

neglected by other financial institutions. After

he struggled for several months to get financing

through a national bank, Mountain America

helped a Utah business owner secure the funds

to close on a prime piece of property in a timely

manner back in 2012. Because of this positive

experience, this business owner has since

opened seven additional locations throughout

Utah with financing from Mountain America.

IMPROVING MEMBERS’ LIVES

Mountain America continues to receive recognition as an employer of choice by national organizations:

HONORING EXCELLENCE

u 2017 Best Credit Union to Work For,

Credit Union Journal

u WorldatWork® Work-Life 2017

Seal of Distinction

u Fortune 100 Best Workplaces in Financial

Services & Insurance*

u Fortune 100 Best Workplaces for Women*

u Fortune 100 Best Workplaces for Millennials*

u Fortune 100 Best Workplaces for Diversity*

u Idaho Best Companies to Work For

by POPULUS®

*Source: http://reviews.greatplacetowork.com/mountain-america-credit-union

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2017 ANNUAL REPORT

CONSOLIDATED STATEMENTS OF

FINANCIAL CONDITIONASSETS 2017 2016Cash and cash equivalents $515,399 $498,246

Interest-bearing deposits with other financial institutions 4,010 4,010

Securities available for sale, at fair value 21,337 34,322

Federal Home Loan Bank stock, at cost 27,271 25,494

Loans held-for-sale 11,223 15,513

Loans, net 6,093,422 5,125,465

Accrued interest receivable 19,634 15,136

Foreclosed and repossessed assets, net 6,250 8,299

Premises and equipment, net 273,183 213,009

NCUSIF deposit 50,795 41,843

Goodwill, net 1,396 1,595

Prepaid expenses and other assets 76,726 75,951

TOTAL ASSETS $7,100,646 $6,058,883

LIABILITIES AND MEMBERS’ EQUITYShares and savings accounts $5,889,684 $4,983,832

Borrowed funds 500,000 485,000

Official checks 14,088 11,166

Other liabilities 45,962 22,201

TOTAL LIABILITIES $6,449,734 $5,502,199

MEMBERS’ EQUITYRegular reserve $63,045 $63,045

Undivided earnings 586,121 491,976

Equity acquired in business combinations 1,928 1,928

Accumulated other comprehensive loss (182) (265)

TOTAL MEMBERS’ EQUITY 650,912 556,684

TOTAL LIABILITIES AND MEMBERS’ EQUITY $7,100,646 $6,058,883

As of December 31, 2017 and 2016 (Dollars in Thousands)

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CONSOLIDATED STATEMENTS OF

INCOMEINTEREST INCOME 2017 2016Loans, including fees $271,232 $218,307

Securities available for sale 480 688

Other 5,921 2,610

TOTAL $277,633 $221,605

INTEREST EXPENSEShares and savings accounts $33,763 $23,560

Borrowed funds 7,126 4,607

TOTAL $40,889 $28,167

NET INTEREST INCOME $236,744 $193,438

Provision for loan losses 34,000 24,750

NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES $202,744 $168,688

NON-INTEREST INCOMEFees and service charges $118,356 $104,618

Realized gain on sold loans, net 17,078 10,529

Other 24,616 21,877

TOTAL $160,050 $137,024

NON-INTEREST EXPENSESCompensation and benefits $143,054 $119,218

Occupancy and equipment 28,522 24,057

Loan servicing 35,731 28,534

Professional and outside services 17,531 15,847

Education and marketing 17,908 17,018

Depreciation and amortization 17,006 15,876

Loss on disposal of premises and equipment, net 1,271 547

Loss on foreclosed and repossessed assets, net 1,091 41

Other 6,535 6,600

TOTAL 268,649 227,738

NET INCOME $94,145 $77,974

Years ended December 31, 2017 and 2016 (Dollars in Thousands)

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2017 ANNUAL REPORT

BRANCH LOCATIONSIDAHOAmmon

Boise—3rd Street

Boise—Ustick Road

Chubbuck

Eagle

Garden City

Garden Valley

Idaho Falls— Sunnyside Road

Meridian

Nampa

Pocatello— Yellowstone Avenue

Rexburg

Twin Falls

ARIZONAGilbert

Goodyear

Mesa

Phoenix

NEVADALas Vegas

Mesquite

Reno

Sparks

NEW MEXICOAlbuquerque— Golf Course Road

Albuquerque— Paseo Del Norte Boulevard

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UTAHAltamont

American Fork

Cedar City—Main Street

Cedar City—Providence

Centerville

Clinton

Cottonwood Heights

Draper

Ephraim

Glendale—Redwood Road

Heber

Herriman

Holladay—Highland Drive

Holladay—Murray Holladay Road

Hurricane

Kanab

Kaysville

Kearns—4015 West

Kearns—5600 West

Kimball Junction

Layton

Lehi

Logan—706 South

Logan—1425 North

Magna

Midvale—Fort Union

Millcreek—33rd South

Moab

Murray

Ogden—40th Street

Ogden—Five Points

Orem—North State Street

Orem—University Place

Payson

Price

Provo

Richfield

Riverton

Roosevelt

Rose Park—700 North

St. George—River Road

St. George—Sunset Boulevard

Salt Lake—325 South State

Salt Lake—735 South State

Salt Lake—County Building

Sandy—94th South

Sandy—9640 South State

Sandy—106th South

Saratoga Springs

South Jordan—104th South

South Jordan—River Park

Spanish Fork

Stansbury Park

Sugar House—21st South

Taylorsville—47th South

Taylorsville—54th South

Taylorsville—SLCC Campus

Tooele

Vernal—East Highway 40

Vernal—West Highway 40

Washington

West Jordan—90th South

West Jordan—Jordan Landing

West Jordan—Redwood Road

West Valley

Woods Cross

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2017 ANNUAL REPORT