2014 An

nu

al R

ep

ort

TABLE OF CONTENTSAbout Altra ........................................................................... 3

Message from the President ............................................... 4

Agenda ................................................................................. 5

Minutes of the 83rd Annual Meeting ................................... 6

Supervisory Committee Annual Report ............................. 7

Altra Milestones .................................................................... 8

Community Engagement ................................................. 10

Altra Celebrations .............................................................. 11

2015 Board Nominees ........................................................ 12

Board Members .................................................................. 13

2014 Financial Summary .................................................... 14

Altra Locations .................................................................... 15

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2011 69.3

2013 78.2

Historical Membership Growth

2014 83.7

10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0

2004 46.4

2005 48.6

2012 72.8

2006 51.1

2007 53.6

2010 66.8

2008 57.6

2009 63.0

(IN THOUSANDS)

MISSION STATEMENT & BRAND PRINCIPLESTo create member loyalty by providing products, services and guidance

that enable our members, staff and communities to prosper.

FRIENDLY & OUTGOING • ENGAGING • TRUSTWORTHY

NON-JUDGEMENTAL • FOCUSED • CONFIDENT

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was another strong year for Altra Federal Credit Union thanks to our

growing, loyal membership and our innovative, dedicated employees. We

achieved a key milestone of $1 billion in assets, while attaining the highest member

satisfaction scores since we began measuring them. I am pleased to report Altra Federal Credit Union remains safe, sound, and financially strong.

Altra had exceptional growth in 2014. Our capital position improved from 11% to 11.3%. This is considered “well capitalized” by the National Credit Union Administration (NCUA). A strong capital position allows Altra to expand its products and services while maintaining a strong professional workforce. Total membership increased 7.5%, resulting in over 83,000 members. This exceeds the average industry membership growth rate of approximately 5%. Total Assets grew to over $1.04 billion. Altra also broke records in auto loan sales and checking accounts opened in 2014.

As always, our focus remains on serving our members. We will strive to invest in the communities we serve and provide new products and services. To increase payment security, credit cards with EMV chip technology and Apple Pay will be introduced in 2015. The Onalaska office will undergo a significant remodel to improve the member experience. We will open a new office in Clarksville, TN on Wilma Rudolph Drive and break ground on a new office in Tyler, TX. Our strong commitment to education will continue, providing learning experiences for youth and helping adults manage their finances.

In closing, I would like to extend my appreciation to you, our members, for allowing Altra to help you meet your financial needs. We are grateful for your business and know that it is because of you we continue to grow!

Best regards,Jack Peplinski

President/CEO

MESSAGE FROM THE PRESIDENT

2014

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1. Roll C

all

Minutes of the2013 Annual Meeting

Chairman’sReport

SupervisoryCommittee Report

2. Introduction

7. Elections 8. Old Business

9. New Business

10. Ad

journm

ent

3. 4.

6.Management Report5.

AGENDAFebruary 26, 2015

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Donald M. Lee, Secretary

MINUTES OF THE 83RD ANNUAL MEETINGFebruary 27, 2014

• The meeting was called to order at 6:01p.m. by Board Chairman John Nemec.

• Chairman Nemec asked for a count of members present. Hearing that a quorum was in attendance, he declared this a legal meeting.

• Chairman Nemec introduced Attorney John Stuber and appointed him Parliamentarian.

• Chairman Nemec introduced the Board of Directors. Those present were: John Nemec, Mark Ward, Jill Bernstein, Donald Lee, Frank Gillette, Amy Hansen, Mike Goryl, and Terri Brennan.

• As the minutes of the 82nd Annual Meeting were printed and included in the meeting agenda, Chairman Nemec asked for a motion to dispense with the reading of the Minutes.

• A motion was made and seconded to dispense with reading the minutes of the 82nd Annual Meeting. Motion carried.

• The Chairman’s report was delivered by Chairman Nemec. The Chairman’s report commented on the favorable 2013 operating results. Membership, Asset, and Capital Growth all exceeded peer averages. Recently retired Director Loren Krueger was also recognized for his 27 years of volunteer service to Altra. The report was accepted as presented.

• The report from Management was presented by Chief Executive Officer Jack Peplinski. CEO Peplinski’s report commented on the outlook and goals for 2014. He also commented on several awards Altra received in 2013 and recognized the employee award recipients for last year. The Management report was accepted as presented.

• The report of the Supervisory Committee was presented by Frank Gillette, Chairman of the Supervisory Committee, and accepted.

• The report of the Nominating Committee was presented by Jill Bernstein. The nominating and voting procedures were then explained by Jill Bernstein. Hearing that there were no nominations from the floor, it was moved and seconded that nominations be closed and the secretary be instructed to cast a unanimous ballot for Mike Goryl, John Nemec, and Mark Ward for 3-year terms.

• Old business: None

• New business: None

• It was moved and seconded that the meeting be adjourned at 6:33 p.m. Motion carried.

• Door prizes were given out and light refreshments were served following the meeting.

Respectfully submitted,

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The Supervisory Committee is responsible for maintaining oversight of the Credit Union’s management and financial records to ensure that the Credit Union’s financial condition is fairly presented.

To meet this responsibility, the Supervisory Committee ensures that a regular independent financial audit of the institution’s financial statements is performed. The certified public accounting firm of CliftonLarsonAllen LLP performed the audit for 2014. They have

performed our audit for the past several years, and for 2014 we received an unmodified opinion, similar to previous years.

The Supervisory Committee also oversees the internal audit function. The internal audit function is an independent appraisal activity established by the Board of Directors to conduct reviews of operations and procedures and to report findings and recommendations to management and to the Board of Directors via the Supervisory Committee.

Thank you for your attention.

Frank Gillette, Chair Supervisory Committee

SUPERVISORY COMMITTEE ANNUAL REPORT

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CU CCC

CREDIT UNIONCREDIT CARD

CHECKING

• Top 8% of all Credit Unions $1 billion and larger in Return of the Member

• Over 10,000 new members • Topped $100 million in credit card transactions

• Close to 8,000 checking accounts opened

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• Business Lending portfolio balances exceeded $120 million

M YABL

MORTGAGE

AUTO LENDING

BUSINESS LENDING

• #1 market share in Mortgage and Home Equity Lending in the La Crosse Market

• Mortgages that we service topped $986 million

• 5th year in a row of record auto lending

• #1 market share in auto lending in the La Crosse and Winona Markets

YOUTH

• Double digit increase in Youth members of 10%

• Desjardin’s Second Place Award for Financial Literacy

• 2013 Wisconsin Financial Literacy Award

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COMMUNITY ENGAGEMENTCorporate ContributionsAltra Federal Credit Union believes in investing in the communities we serve by providing contributions to social services as well as health, youth and education projects. In 2014, Altra was a Pacesetter for the United Way, a strong fund raiser for Children’s Miracle Network Hospitals and a supporter of Boys and Girls Clubs. Altra was also a sponsor of the Austin Peay University, University of Wisconsin – La Crosse, Winona State University, and St. Mary’s College athletic programs, Drive for Hope Lung Cancer Fundraiser with Gundersen Health System, and many other social service organizations.

VolunteerismAltra employees love to volunteer. In 2014, Altra employees put in a total of 5,537 volunteer hours for organizations and causes throughout the communities we serve. Whether volunteering at events, serving meals, buying Christmas gifts for needy families, judging at Future Business Leaders of America events, or serving on various non-profit boards, you can see Altra employees year-round making a difference in your community. Altra also offers graduating High School Seniors $500 scholarships based on community service.

Financial LiteracyAltra Federal Credit Union is recognized for its extensive financial education efforts. Through youth events, school presentations, social media and websites, Altra interacted with more than 3,600 students in 2014, providing them with valuable tools which help develop healthy financial habits and lasting responsible money management skills. Specifically, Altra has:

• supplied Banzai materials to schools for teaching financial literacy• provided a virtual finance experience at schools through Altra’s Mo’Doh Island program• provided members age 6-12 a virtual reality program for earning and saving money through Coindexter • volunteered for Junior Achievement• participated with Financial Literacy badges for Boy Scouts and Girl Scouts• participated in over fifty-six classroom presentations• conducted Cash Camps for 8-10 year olds• hosted Teens & Money seminars• supplied employees for DECA and FBLA judging• offered scholarships to teachers to attend the National Institute of Financial & Economic Literacy

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ALTRA EMPLOYEE CELEBRATIONS

BIRTHSCELEBRATED

WEDDINGSCELEBRATED

NEWEMPLOYEES

ANNIVERSARYCELEBREATIONS

17

6340

9GIRLS

8BOYS

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2015 BOARD NOMINEESJill Bernstein, Chair • BOARD MEMBER SINCE 1988

Jill Bernstein was elected to the Altra Board of Directors in August of 1988 and currently serves as Chair of the Board. She is presently Chief Financial Officer and Director of Marketing for River City Image Works/River City Art Prints in La Crosse, WI. Bernstein retired from the Trane Company, La Crosse, WI in 2011 after 26 years, having held management positions in the Technical Computer Center, International Systems, and Logistics Systems. She has a MS in Computer Information and Control Engineering from the

University of Michigan, an MA in Economics from Indiana University, and an BA in Economics from Smith College. Bernstein enjoys jewelry making, travel, and art and architectural history. She has two children and resides with her husband in La Crosse, WI.

Amy Hansen, Treasurer • BOARD MEMBER SINCE 2010

Amy Hansen joined the Altra Board of Directors in July of 2010 and currently serves as Treasurer. She is presently a Business Transformation Leader at Ingersoll Rand and has held various leadership roles in Finance, IT and Sales Operations over the last 20 years. Hansen’s current responsibilities include leading change management, communications and training for new business process, and system implementations within the Trane Commercial North America business. Amy is the co-chair of

the Ingersoll Rand Women’s Network La Crosse Chapter and served on the inaugural Women’s Network steering committee for Ingersoll Rand. She has an MBA and BS in Accountancy from the University of Wisconsin – La Crosse and is a Certified Management Accountant. Amy enjoys hiking with her dog Abbie, skiing, snowshoeing and traveling with her husband.

Wes Panzer • BOARD MEMBER SINCE 1990

Wes Panzer was elected to the Altra Board of Directors in February of 1990. He has served as Chairman, Vice Chairman, Assistant Secretary, and Treasurer. He is retired from The Trane Company, La Crosse, WI, where he worked for 30 years. For 11 of those years, he was Manager, Operations & Customer Services Support – Global Parts. Panzer has an MBA and BS in Mechanical Engineering from the University of Wisconsin – Madison. He is also a Registered Professional Engineer in Ohio and Wisconsin and a Certified

Purchasing Manager. Panzer is married and has two married sons and 4 grandchildren. He enjoys gardening, golf, travel, and spending time with his grandchildren. Panzer and his wife reside in La Crosse, WI.

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Mike GorylAssistant Secretary

Board member since: 2013

Donald LeeSecretary

Board member since: 2001

Frank GilletteChair of the Supervisory Committee

Board member since: 2002

Mark WardBoard member since: 1993

Terri Brennan Vice Chair

Board member since: 2008

BOARD MEMBERS

John NemecBoard member since: 1990

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2014 FINANCIAL SUMMARY(unaudited)

20132014Assets

Liabilities and Members’ Equity

Income StatementInterest on Loans $34,530,757 $33,712,383

Interest on Investments $1,816,850 $1,616,542

Non-Interest Income $16,756,532 $18,902,468

TOTAL INCOME $53,104,139 $54,231,393Dividends and Interest $6,381,073 $6,163,980

Non-Interest Expense $34,182,656 $31,681,003

Provision for Loan Losses $1,895,875 $2,485,179

NCUA Assessments $0 $630,023

TOTAL EXPENSE

NET INCOME

$42,459,604

$10,644,535

$40,960,185

$13,271,208

Members’ Share and Savings Accounts $874,479,632 $823,625,201

Borrowed Funds $36,041,037 $30,600,000

Other Liabilities $8,973,953 $7,468,116

Members’ Equity $116,705,969 $105,240,044

TOTAL LIABILITIES AND MEMBERS’ EQUITY $1,036,200,591 $966,933,361

Cash $9,849,943 $10,323,645

Investments $111,230,145 $122,330,427

Loans (Net) $850,521,138 $771,595,660

Fixed Assets (Net) $31,904,861 $32,622,083

Other Assets $32,694,504 $30,061,546

TOTAL ASSETS $1,036,200,591 $966,933,361

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LOCATIONS

800-775-0055 • www.altra.org

It’s Where You Belong!

LA CROSSE2715 Losey Blvd. SLa Crosse, WI 54601

OPERATIONS CENTER1700 Oak Forest Dr.Onalaska, WI 54650

ROCHESTER123 16th Ave. SW Suite 500Rochester, MN 55902

TRENTON2231 E. State St.Trenton, NJ 08619

LA CROSSE FESTIVAL FOODS28 Copeland Ave.La Crosse, WI 54603

TYLER - TROUP HWY.5523 Troup Hwy.Tyler, TX 75707

PUEBLO101 William White Blvd.Pueblo, CO 81001

ONALASKA1807 E. Main St.Onalaska, WI 54650

TYLER CORNERS3829 State Hwy. 64 WTyler, TX 75701

HOLMEN1404 S. Main St.Holmen, WI 54636

CLARKSVILLE MADISON ST.1600 Madison St.Clarksville, TN 37043

CENTRAL H.S.1801 Losey Blvd. SLa Crosse, WI 54601

WEST SALEM1400 Waterloo Ave. West Salem, WI 54669

LA CRESCENT205 N. Chestnut St. Suite 102La Crescent, MN 55947

CLARKSVILLE STONE CONTAINER184 Stone Container Dr.Clarksville, TN 37040

HOLMEN H.S.1001 McHugh Rd.Holmen, WI 54636

WINONA526 Orrin St.Winona, MN 55987

LEXINGTON1515 Mercer Rd.Lexington, KY 40511

FT. SMITH4811 South Zero St.Ft. Smith, AR 72903

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