2017Annual REPORT

This credit union is federally insured by the National Credit Union Administration.

Board of Directors

Credit Union Staff

Steve HammondsTerm Expiration: April 2020Chair

David WilliamsonTerm Expiration: April 2021Vice Chair

Jacqueline DixonTerm Expiration: April 2021Treasurer

Linda KunzeTerm Expiration: April 2019Secretary

Charles RamirezTerm Expiration: April 2020Director

Don RaweTerm Expiration: April 2021Director

Calvin SmithTerm Expiration: April 2020Director

Dedric AyoAdvisory Director

Martha GarciaAdvisory Director

Linda CarmonaAngelia CarterRolando DallasGloria EscobarBrad FergusonDonna FullenMike FunkTwasha Hudson

Cindy JohnsonRyan JonesJennifer KahanClaudia LopezSimona MarmalichiMisti MartinCandice MillsTina Morgan

Yesenia OlivaresKim PurintunKelly ShuttMinerva SierraHolly StipeDon Waddell

AgendaCall to Order

Steve Hammonds, Board Chair

InvocationCalvin Smith, Director

Determination of QuorumLinda Kunze, Board Secretary

Reading of 2016 Annual Meeting MinutesLinda Kunze, Board Secretary

Comments from the ChairSteve Hammonds, Board Chair

Comments from the PresidentMike Funk, President

New BusinessSteve Hammonds, Board Chair

Unfinished BusinessSteve Hammonds, Board Chair

Report of Nominating CommitteeCalvin Smith, Director

Door PrizesCalvin Smith, Director

Adjournment

It has been an honor and privilege to serve you as Chairman of the Board. As members of LibertyOne Credit Union we all have a common bond of credit union membership, and goals of financial security. Since our charter began in 1935, we have enjoyed this bond that continues today. Most credit unions have failed their members by accepting anyone who is willing to have an account. Other credit unions just want members, and brag how big they have become. Not at LibertyOne Credit Union, we strive for the “family” feeling. This makes our service unparalleled, and makes our bond, as members, much stronger.The Board of Directors number one philosophy is members first. This philosophy is carried down through management and is carried out by the hard-working staff at LibertyOne Credit Union. LibertyOne Credit Union strives to help all members reach their respective financial goals and promote a members-first attitude. We measure this goal through the Net Promoter Score. This year we scored an 80, this score puts us in a world-class category.LibertyOne Credit Union is a strong, financially sound credit union. Total assets grew by about 9 million dollars. Loan growth increased 6.49% which shows our willingness to put our member’s money to work for other members. Asset growth was a strong 8.42%, as our growth continues to increase aggressively, yet responsibly. Delinquent loans vs. total loans continues to be very low at 0.42%. The management of LibertyOne Credit Union, led by President Mike Funk, actively manages our resources with an impressive acumen of our financial resources.Moving forward, we will continue to provide free ATMs worldwide, very competitive deposit/CD and loan rates, and various other member services. LibertyOne Credit Union also provides secure online access to all our products via web and mobile applications. We will continue to promote a members- helping-members philosophy and help each other reach our financial goals.I am proud of our bond together, I am proud of the opportunity to work with such a talented Board of Directors and Staff, who have maintained such an important bond with our members. We will continue to keep our bond strong and continue to help members reach their financial goals. LibertyOne Credit Union seeks to be our members’ primary financial institution and will adhere to the highest ethical standards while maintaining a sound financial foundation. This has been our mission, and we will continue this great mission. It has been an honor to serve you as Chairman.

Thanks,Steve HammondsChairman of the BoardLibertyOne Credit Union

Comments from the Chairman of the Board

Financial Highlights

Distribution of Earnings

INCOME 2016 2017Interest from Loans $3,522,006.95 $3,615,010.29Income from Investments $456,217.30 $567,366.61Other Operating Income $1,198,550.92 $1,221,581.73Total Income $5,176,775.17 $5,403,958.63

Non-Operating Gains or Losses $0.00 $0.00Dividend on Deposits $1,129,981.42 $1,282,937.40

NET INCOME $596,184.64 $530,659.03

EXPENSEEmployee Compensation $1,299,942.78 $1,362,437.56Employee Benefits $404,214.23 $421,970.94Travel & Conference Expense $80,876.77 $96,061.90Office Operations Expense $819,073.72 $763,646.54Education & Promo Expenses $110,931.25 $106,923.56Loan Servicing Expense $139,050.24 $152,852.60Professional and Outside Services $226,738.86 $254,505.16Provision for Loan Losses $252,014.06 $306,138.58Operating Fees $17,726.59 $19,541.08Miscellaneous Expenses $100,040.61 $106,284.28Total Operating Expenses $3,450,609.11 $3,590,362.20

Interest Paid to Members $1,282,937 $0.24

Expenses $3,590,362 $0.66

Net Income $530,659 $0.10

$5,403,959 $1.00

Expenses66%

Interest Paidto Members

24%

NetIncome

10%

LibertyOne’s 83rd year of existence was a very good one! Our Board and Staff were busy working hard for you, as this is truly your credit union. We continually try to give back to you in the form of lower loan rates and higher deposit rates and we also ran several promotions throughout the year that proved to be beneficial to many of our members. The year started out with the tail-end of our Christmas Loan promotion as that runs until January 31st each year to give you a chance to pay off any debt you may have ran up at Christmastime. Then, our annual February Auto Loan Promotion started and we helped a lot of our members with different types of auto loans: Car, Truck, SUV, Boat, Motorcycle, RV, Travel Trailer and more. The 2nd quarter of the year saw us offer great Home Equity Loan rates, which hundreds of our members took advantage of to remodel their homes, send their kids to college and take care of some credit card debt. Our Vacation Loan special started June 1st and ran through the end of July and many of you used this great promotion as well. We also took this time to remind you about all of the great savings and investment options at LibertyOne and after doing this, we grew about $3 million in 3 months as you took advantage of our above-market savings, IRA and CD options! We also had our Annual Meeting of the Membership at The Southern Cross and over 500 of you joined us for a great time and we gave away some great prizes! July, August and September were so hot that nobody did anything!!......just kidding, we granted a lot of personal loans for back to school and the savings and investment deposits continued coming in and many members borrowed money from us for vacations. Believe it or not, lots of members bought cars or refinanced their existing car loans with us during this time. And, we had our annual planning session where our Board and Management Staff get together to talk about plans for the future and how we can best serve our members. The ever-popular O.B.E.M.O.C.A.T.S. auto loan promotion was in October and we made over $6 million in auto loans! Christmas Loans and the Holiday Skip-A-Payment program rounded out the year as we finished just shy of $128 million in assets. We will keep working hard to serve you in 2018 and beyond and if there is anything at all I can do for you, please call me at 469-212-0238. I would love to hear from you! Respectfully,Mike FunkPresident

Comments from the President

Total Reserves (in millions)

Total Deposits (in millions)

2013 2014 2015 2016 2017

$90,713,350$92,617,923

$98,533,181

$104,902,075

$11,664,034

$12,314,709

$13,143,861

$13,450,831

$120

$110

$100

$90

$80

2013 2014 2015 2016 2017

$13,751,648

$113,128,027

$14

$13

$12

$11

$10

$2,656,307.79JAN

$4,397,772.52FEB

$3,492,561.42MAR

$2,078,675.57APR

$2,285,954.02MAY

$3,280,847.08JUN

$2,077,821.00JUL

$3,006,756.49AUG

$1,935,886.02SEP

$6,481,906.93

OCT

$3,759,354.92NOV

$1,947,793.63DEC

2017 NEW LOANS

Balance Sheet - Assets

PERSONAL LOANS

New Car 569 $11,978,184.97 Used Car 2,139 $34,651,343.01 Boats,Motorcylces, RV 171 $3,362,247.35 Signature 2,798 $6,568,260.73 Credit Cards 2,847 $2,494,449.35 First Mortgage 123 $14,872,632.54 Home Equity 241 $10,744,942.03Other Loans 90 $1,666,406.87

Total Personal Loans 8,978 $86,338,466.85 Allow. for Loan Losses ($473,429.97)

Net Personal Loans $85,865,036.88

CASH

Total Cash on Hand $513,760.21

INVESTMENTS

CACU Funds Adv. $1,392,722.67 Banks and S&Ls $24,463,792.16 NCUSIF $1,023,794.41 U.S. Gov't & Agencies $14,222,564.20 Unrealized Gain/Loss ($262,441.92)Other Investments $0.00

Total Investments $40,840,431.52

FIXED ASSETS

Furniture & Fixtures $15,154.89 Leasehold Improvements $4,842.46 Computer Equipment $23,426.88

Total Fixed Assets $43,424.23

OTHER ASSETS

Total Other Assets $572,510.96

TOTAL ASSETS $127,835,163.80

Balance Sheet - Liabilities & Equity

ACCOUNTS PAYABLE

Accounts Payable 378,157.99 Notes Payable $0.00Taxes Payable $2,760.00 Total Accounts Payable $380,917.99

ACCRUED INTEREST PAYABLE

Share Savings $0.00IRA Certificates $7,860.43 Regular Certificates $40,867.94 Total Accrued Interest $48,728.37

OTHER LIABILITIES

Accrued Expenses $105,766.38 Outstanding Checks $893,506.02 Other Liabilities $0.00Total Other Liabilities $999,272.40

MEMBERSHIP EQUITY

Share Savings $55,732,964.77 Christmas Club $19,281.80 Free Checking $2,214,351.16Prime Checking $7,842,627.43 IRA Savings $833,437.37 IRA Certificates $7,319,480.11 Regular Certificates $39,165,883.92 Total Membership Equity $113,128,026.56

RESERVES

Regular Reserves $1,536,891.07 Undivided Earnings $11,473,110.30 Investment Allowance ($262,441.92)YTD Net Income $530,659.03Total Reserves $13,278,218.48

TOTAL LIABILITIES AND EQUITY $127,835,163.80

Total Membership Equity

Total Personal Loans

Savings49.28%

Regular CD34.62%

Checking8.89%

Credit Card2.89%

Other Loans1.93%

IRA7.21%

Mortgage29.67%

New Car13.87%

Signature7.61%

Used Car44.03%

Mission Statement

“LibertyOne Credit Union seeks to be our member’s primary financial institution and will adhere to the highest ethical standards while

maintaining a sound financial foundation.”

Dallas Service Center1100 Commerce Street, Ste. 615

Dallas, TX 75242

Farmers Branch Service Center4050 Alpha Road, Ste. 120Farmers Branch, TX 75244

Arlington Service Center2221 E. Lamar Blvd, Ste. 110

Arlington, TX 76006

24 Hour Telephone Teller214-413-5588 option 1800-672-1320 option 1

Phone: 214-413-5588 | 800-672-1320

Fax: 214-752-2499

Home Loans: 866-520-4702 | Local: 832-912-2151

MasterCard Customer Service: 800-442-4757 | www.gotomycard.com

Email: libertyone@libertyonecu.com

www.libertyonecu.com