Army Aviation Center Federal Credit Union

1966-2016

2016 Annual Repot

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Products and Sevices

Checking &Savings Members Choice Checking

Prime Checking

Youth Accounts

You Choose Debit Account

Money Market Accounts

Regular Savings

Christmas Club Accounts

Kirby Kangaroo Accounts

Share Certificates

Individual Retirement Accounts

2016 IMPACTS

JanuayOpening of Opp branch

Loans & Credit Cads Auto & Truck Loans

RV, Boat & Motorcycle Loans

Personal Loans

Personal Lines of Credit

First & Second Mortgages

Home Equity Loans

Home Equity Lines of Credit

Share & Certificate Secured Loans

Platinum & Platinum Rewards MasterCard® Credit Card

My First Ride Auto Loan

Credit Builder Loan

Mach 50th Anniversary Pay it

Forward promotion

Ou Sevices Online Banking

Online Bill Pay

Direct Deposit & Payroll Deduction

MasterCard® Debit Card

E-Statements

Mobile Banking

iPad, iPhone & Android Apps

Mobile Deposit from Smartphone App

Text Alerts

Balance Debt Management

April32nd Annual

Car Sale

Sevices (cotinued)

Visa Gift Cards

Dixie Phone Banking

Identity Theft Protection

Shared Branching

Wealth Management

Safe Deposit Boxes

Apple Pay

Pop Money

Funds Transfer

ClickSwitch

May Awarded fifty $500

scholarships in celebration of 50th Anniversary

June Blood drives held at area branches

FebruayGroup attends CUNA Governmental Affairs

Conference

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Statement of Financial Coditio & Incoe

2016 Financial Statement 2016 Incoe Statement Assets Loans to Members Cash Investments Fixed Assets Other Assets Total Assets

Liabilities & Equity Accounts Payable Member Shares & Deposits Equity Total Liabilities & Equity

2016 2015 $ 543,900,604 $ 433,895,247

22,139,037 20,770,392 535,978,661 626,808,496

33,260,409 34,625,874 37,835,029 30,811,810

$ 1,173,113,740 $ 1,146,911,819

14,398,923 9,703,985 1,013,926,052 996,990,060

144,788,765 140,217,774 $ 1,173,113,740 $ 1,146,911,819

Income Interest on Loans Income from Investments Other Income Total Income

Expenses Compensation & Benefits Office Expense Data Processing & Professional Services Provision for Loan Losses Education & Promotion Total Expenses

Income Available Dividends & Interest Paid Net Income

2016 $ 20,744,746

10,848,912 16,846,556

$48,440,214

17,804,321 11,394,914

5,280,867 2,981,167 1,201,522

$ 38,662,791

9,777,423 3,072,900

$ 6,704,523

2015 $ 17,859,434

10,390,153 16,071,070

$ 44,320,657

16,523,291 10,844,934

4,774,716 1,874,699 1,292,867

$ 35,310,507

9,010,150 3,324,451

$ 5,685,699

JulyFinancial education

workshop attendance increased 20% over 2015

August50th Anniversary

celebration with employees on August 18

SeptembeAttended Troy University &

University of South Alabama football games

Octobe Annual food drive

donations

Noembe Selfie contest for CMN

donation concludes 50th Anniversary celebration

Decembe New website

launched

Lete Fro The CHAIRMAN OF

THE BOARD

our membership. First was the government’s decision to raise interest rates after years of allowing rates to remain at “rock-bottom.” We have all heard “timing is everything” and the government rate increase coupled with the reduction in energy cost resulted in the 2015 stock market decline. The immediate result was the impact on members’ 401(k)s who depend on returns for part of their income.

significant events that have affected

have year where there has excelled in a Your Credit Union

been two

In effect, many of our members and employees gave up a share of their retirement they were either dependent on or will be dependent on for income.

How does this affect our Credit Union and how do we prepare for these events that take place more often than not? First, we must never lose sight that the foundation of the credit union movement is first and foremost…People helping People. We are very fortunate that you, the Credit Union members, continue to be great stewards in supporting the

For the more mature member that wants a bigger return on a CD or savings, just remember we attempt to maximize your return while balancing the financial well-being of your institution in providing the majority of our membership with lower loan costs for that first auto or home mortgage; again, People helping People. Try to think back to when you were first starting out and needed a helping hand for that auto, home, or personal line of credit for that unexpected family need and how your Credit Union brought you through those challenging events. People helping People!

Your Board of Directors and Supervisory Committee members have again this year spent countless hours reviewing data, policies, updates to loan practices, serving on committees, attending board or executive sessions, and making sure that our members’ voices are heard whenever they have a request or recommendation. Chuck Ennis was relentless for quite some time in his pursuit of getting a branch located in Opp. He accomplished that by being interested in his Credit Union’s future. Thanks to members like him, this Credit Union will continue to be a success for years to come.

You – our members – make us strong and your Credit Union continues to be “Above the Best.”

LTC(Ret) Charlie Mingus

Credit Union. We have been very successful over the past 50 years not only through buildings, employees, and services, but also in having members who care and are proud to

Respectfully submitted,

be part of AACFCU! Thank you. Chairman of the Board

Lete Fro The PRESIDENT

Anniversary as well (AACFCU’s) Federal Credit Union’s Army Aviation Center remembered by the year 2016 was an eventful

that will be

50th

as by the significant progress made financially and from an operational standpoint. Throughout 2016, there was much fanfare celebrating the organization’s first fifty years of existence and the growth from our humble beginnings to opening our twentieth location. There were various promotions and contests celebrating fifty years which culminated with the offering of fifty $500 college scholarships to local students.

Financially, AACFCU continues to grow not just in dollars but in members as well. During 2016, the assets of the Credit Union grew by $26.2 million which equates to a 2.3% growth rate. Meanwhile, more than 3,100 new members joined the Credit Union in 2016 providing a growth rate of 3.3%. From an earnings perspective, AACFCU also had another solid and profitable year. These earnings are reinvested into the organization and have accumulated to more than $140 million in Total Equity over the past fifty years.

Operational accomplishments in 2016 included the promotion of a 0% Balance Transfer on our MasterCard program. This was widely successful as cardholders used the promotion to refinance their balance from a high interest rate loan elsewhere. The membership has also benefited

from our money-saving automobile and recreational vehicle loan rates. AACFCU’s loan interest rates must be highly competitive as member auto loans increased by nearly $76 million in 2016 while RV loans increased by $18 million during the same period. These high numbers of members financing with AACFCU signify the Credit Union is one of the best lending values available.

In 2016 the Credit Union completed a major refresh of our website, making information streamlined and easier to access through an intuitive search option. AACFCU also increased member convenience with the use of electronic document signatures which have allowed members to sign over 1,600 documents online rather than coming to a branch location.

Lastly, in the first three months of 2017, the Daleville Branch received an interior remodel that is being enjoyed by the members who utilize that facility. Throughout the remainder of 2017, we plan on converting our Enterprise, Alabama, Motor Bank to a full service, state of the art, next generation facility. Later in 2017, we anticipate construction starting on a new branch in Ozark, Alabama. These are just more examples of how the Credit Union is continuing to grow and meet the needs of our members, the reason we exist.

Serving Members,

Bobby Michael President/CEO

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Lete Fro The SUPERVISORY COMMITTEE

CHAIRMAN

The Supervisory Committee is appointed by the Board of Directors. The committee serves as an independent group to ensure that Management and the Board of Directors establish adequate policies and procedures, and helps ensure the financial statements are properly prepared and accurately reflect the financial position and operating results of your Credit Union. The committee’s mission also includes the investigation of any concerns a member may have and the guarantee of a resolution.

Army Aviation Center Federal Credit Union continued its growth in 2016. Assets grew 2.8% over the previous year. Total assets were $1,173,113,740 which was an increase of $26,201,921. The year ended with a total of 98,191 members. Member savings and deposits grew by $16,935,992 to end the year at $1,013,926,052. Loans outstanding to members increased 25% during 2016. This is a result of the leadership, management and staff, and you the members who have placed your trust, loyalty and support in Army Aviation Center Federal Credit Union.

This past year, your Supervisory Committee worked closely with internal and external auditors examining policies and control procedures to ensure they are properly administered and sufficient to safeguard member assets. No material exceptions were noted that violated any of the policies or regulations governing Army Aviation Center Federal Credit Union.

During the year, the Supervisory Committee engaged the firm of OCM and Company CPAs and Advisors, a Doeren Mayhew Firm, to perform the audit of the Credit Union’s financial statements as of September 30, 2016. In the CPAs report, the firm expressed a clean opinion that the Credit Union’s financial statements were, in fact, fairly presented.

I would like to express my gratitude to the Board of Directors, Supervisory Committee members, management and staff for a job well done in 2016. As always, you, our members, are most appreciated for your loyalty to Army Aviation Center Federal Credit Union.

Donna Brackin Supervisory Committee Chairman

Respectfully submitted,

BOARD OF DIRECTORS LTC(Ret) Leslie C. Mingus, Chairman LTC(Ret) Thomas J. Frezell, Vice Chairman Gerald Strange, Secretary Richard “Cracker” Waldrop, Treasurer Mickey Davis, Member MAJ(Ret) Marc Snyder, Member Larry Eagerton, Member Floyd Rodgers, Assoc. Board Member

SUPERVISORY COMMITTEE Donna Brackin, Chairman Elmaree Gordon, Secretary Floyd Rodgers, Member Chuck Ennis, Assoc. Supervisory Committee Member

MANAGEMENT TEAM Bobby Michael, President/CEO Royas Sanders, SVP of Operations Bill Williams, SVP of Financial Services Ken Long, VP of Compliance & Loss Prevention Phyllis Phillips, VP of Human Resources Todd Peeples, VP of Information Technology Jim Freeland, VP of Lending Lisa Hales, VP of Marketing Brant Malone, VP of Quality Assurance Jimmy Smith, AVP of Information Technology Kim Mulliner, AVP of Accounting Laura Lynn Lester, AVP of Mortgages Ben Bradley, AVP of Mobile Operations

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AACFCU LOCATIONS

Mobile Airport Blvd. Bates

West Brookley Downtown

ALABAMA

FLORIDA

Dothan West North South East

Operations Center

Daleville

Enterprise West South East

Troy

Ozark North South

DeFuniak Springs

Santa Rosa Beach

Ft. Rucker

Opp

238 Virginia Avenue, Daleville, Alabama 36322 (334) 598-4411 • (334) 598-1147 Fax

www.aacfcu.com