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www.chartway.com(757) 552-1000 | (800) 678-8765

ALL GREAT COMPANIES ARE DEFINED BY THEIR PEOPLE.

F O R A L L

A N N U A L R E P O R T 2 0 1 5

TOGETHER, WE ARE PART OF SOMETHING EXTRAORDINARY,

AND OUR “1-FOR-ALL” PHILOSOPHY CONTINUES TO FUEL OUR PURPOSE AND OUR PERFORMANCE

TABLE OF CONTENTS

2 Message from the Chairman

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Message from the President & CEO

8 Treasurer’s Report

8 Supervisory Committee’s

Report

9 Consolidated Statements

of Financial Condition

10 Leadership Team

11 Board of Directors

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Wayne E. Foshay Chairman

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2015 was a significant year for our family of credit unions.

In the fall, we had the opportunity to say thank you and farewell to our long-standing CEO, Ron Burniske. We are grateful for everything he did for our organization and its membership throughout his 31 years of service. His leadership helped build an organization that is financially strong and strategically well positioned to continue serving members for generations to come.

Shortly after Ron’s retirement, the Board and I worked with an executive search firm to interview top-tier CEO candidates. Following an extensive assessment of internal and external applicants, the Board unanimously agreed that there was no better person to lead the Chartway family of credit unions than our President, Brian Schools.

Brian was the ideal choice because he understands the true value of our credit union, our members, and our employees. After joining our organization in 2008 and following leadership roles at several high performance companies including JP Morgan Chase, Capital One, and Crestar Financial (now SunTrust), Brian quickly became known as a highly capable leader who had the experience, the determination, and the drive to position our credit union for the opportunities and challenges ahead.

From his dedicated efforts of putting our people first, to building the blueprint for improving our organization through a well-defined strategic plan, and generating greater efficiencies by improving our operating platforms, Brian has excelled in every area.  His energetic personality, love of people, and total dedication to our credit union and  our members are exactly what we need as we enter this next chapter of innovation and growth.

Our 2015 Annual Report will outline how we plan to do precisely that. You will learn about our strong financial performance and our core areas of focus for the future – all of which are rooted in enriching the relationships we have with those we are fortunate to serve. From driving the next wave of innovations that support a flexible, digital lifestyle, to maintaining our position as market leaders when it comes to providing the lowest loan rates and highest saving rates, and keeping our fees at or below market, we are continuing to implement solutions that deliver tremendous value to our members and our communities.

MESSAGE FROM THE CHAIRMAN

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None of this could happen without the support and financial investment of you and our 180,000 members. Our shared credit union is just that – a financial cooperative whereby we all share in our growth, our success, and our achievements. Members are our lifeblood, and we come to work each day knowing that there are many choices. So, we dedicate our energy to making this the best and most value-driven financial institution available.

I also want to take a moment to thank our Board, Volunteers, and employees for everything they do to allow our organization to benefit from shared experiences and shared value. As our company has grown in size and complexity – at times, shifting strategies during times of economic change and making necessary infrastructure modifications to meet the evolving needs of our members – they have worked deliberately to keep our culture top of mind. There is a true sense of community and a spirit of caring that is unique to our family of credit unions. Their commitment to our culture – living our values, doing the right thing for our members, and making a difference through charitable contributions and service – are the cornerstones of our success.

Altogether, the Board and I could not be prouder of what our organization has in place, and we look forward to the future with excitement. We’ve never been financially stronger or better prepared to serve our members and our communities.

Sincerely,

Wayne E. Foshay Chairman

MESSAGE FROM THE PRESIDENT AND CEO

Brian T. Schools President & Chief Executive Officer

Each morning, more than 500 talented people all across the country walk through our doors – ready and eager to serve you. I feel extraordinarily privileged to have served alongside these employees throughout the past seven years, and to have been chosen in September to lead our organization as the new President and Chief Executive Officer.

While I have been serving as the organization’s President since January 2015 and have been in the financial services industry for more than 20 years, it is an honor to now have the opportunity to work directly with our talented leadership team and all of you - our loyal members - to build on our rock solid foundation.

Our ability to do precisely that begins with our people. That’s why, during my first months as President and Chief Executive Officer, I visited our branch locations across the country. I could not be more impressed by the dedication of our employees and all they do to ensure the loyalty and satisfaction of our thriving membership. Together, this community of people is what fuels our purpose and ultimately, our performance because we know that our success is always in direct proportion to yours.

And so, when we thought about what to put on the cover of our Annual Report this year, only one thing came to mind: our firm focus on building relationships. All great companies are defined by their people and this certainly holds true within our walls. Together, we are part of something extraordinary, and we are honored that our “1-for-all” philosophy allowed us to achieve another year of record results.

SATISFACTION. At our organization, we are more focused than ever on putting our members first in everything that we do. With a goal to deliver a consistent, engaging experience with us – whether in a branch, over-the-phone, online, through a mobile device, or via Facebook, Twitter, Instagram, LinkedIn, Google+ or YouTube – our member survey scores revealed that we continued to move the marker on satisfaction. Overall, member satisfaction scores increased from 90.0% to 91.7% in 2015; an improvement of 1.8% over the 12-month period.

GROWTH. We experienced impressive growth in 2015. With assets exceeding $2 billion, our total deposits grew to $1.912 billion, reflecting a 7.4% growth over the prior year Additionally, net loans to members increased to $1.613 billion, representing a growth of 8.4%. Our notable financial performance is the direct result of our ability to meet members’ needs and execute well on our strategic opportunities.

FINANCIAL STRENGTH. Financially, we saw measureable improvement. We had net income of $13.699 million. This added to our strong financial position, representing a capital ratio of 8.25%, well above regulatory minimum levels. We are proud of our financial growth because the results reflect our strong fundamentals and the success of our differentiated, member-focused business model. More importantly, solid financial performance allows us to do what we do best: pass our savings on to members in the form of lower loan rates and higher savings rates.

Additionally, to support our growing business needs and the demand for our quality financial products and services, in 2015, we began relocating our corporate and support operations. Our new location will allow us to better serve you and to facilitate our future needs, providing suitable space for employees and encouraging collaboration-based interactions. We expect to transition all corporate departments to the new space later this year, and have plans to relocate our Newtown branch to a nearby building we are in the process of constructing.

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Other planned service enhancements include modernizing our member access and digital experience, further development of business in our core markets of Virginia, Texas, and Utah, and targeted efforts to progress and expand our core products. Additionally, we will be investing in streamlining and simplifying key areas of our operations to make our service delivery even more effective, efficient, and progressive.

Regarding other future activities, member security remains a top priority. As part of our ongoing commitment to the protection and integrity of our member transactions, we look forward to migrating all credit and debit cards to new chip card technology this year. We will also be launching ApplePay, Android Pay, and Samsung Pay to allow you – our members - to make purchases with a single touch, making the transaction smoother and more secure.

To enable us to better measure and manage your experience with us through both traditional touchpoints and new, modern tools like those mentioned above, be on the lookout for our new member satisfaction survey. In 2016, we will be introducing a loyalty-based approach that will give you the opportunity to provide feedback in real-time, to assess all our channels, and to share your excellent experiences on social media.

Our dedication to making a difference extends well beyond traditional banking. Why? Because strengthening our communities is part of our culture. We are passionate about making a positive impact in the communities we serve through financial scholarships, community event sponsorship, and financial support to charitable organizations. In 2015, our philanthropic arm – the We Promise Foundation – raised more than $945,000, enabling its Board to approve grants to non-profit organizations that share our enthusiasm for making dreams come true for children battling life-threatening illnesses. Our employee-led CARE team also supported nearly a dozen fundraisers to support local and national programs.

From an organizational perspective, I am appreciative to our Board for entrusting me as the member’s President & CEO and look forward to working collaboratively with them in service to you. Likewise, our leadership team brings a wealth of experience and skills that ensure that we are always working ahead of the industry, emerging technologies, and our members.

Altogether, I would like you to know how much we value your business, your loyalty, and your feedback. We are more committed than ever to putting your experience at the forefront of everything we do and to finding ways to deliver value while providing a superior level of service. This organization has a rich history of success and leadership, and I am excited to work alongside you to move our organization forward.

Best,

Brian T. Schools President & Chief Executive Officer

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Brian T. Schools President & Chief Executive Officer

We are passionate about making a positive impact in the communities we serve because helping others is core to our culture. In fact, in 2015, our We Promise Foundation raised more than $945,000 to make dreams come true for children battling life-threatening illnesses. Our employee-led CARE team also supported nearly a dozen fundraisers to support local and national programs.

TREASURER’S REPORT

The Federal Credit Union Act requires the Supervisory Committee to evaluate the adequacy and effectiveness of the internal security controls put in place by Chartway Federal Credit Union.

Our primary goal is to protect the interest of our members; therefore, we contracted an independent certified public auditing firm to examine the year—ending September 30, 2015. Following the examination and audit, we received an opinion letter confirming that Chartway’s financial statements conform to generally accepted accounting principles.

2015 Supervisory Committee: Gary Abrams, Chairman; Gerald Hensley, Vice Chairman; Scott Sumpter, Secretary; Eleanor Willhoite, Member; and Nancy McMahon, Member. The Committee, along with Supervisory team members Cindy Nyberg and Tiffany Harrison, extend their appreciation to the credit union members, Board of Directors, management, and staff for their support.

SUPERVISORYCOMMITTEE’SREPORT

Gary M. AbramsSupervisory Committee Chair

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I am honored to share with you that 2015 was a breakthrough year for our family of credit unions. As a result of our commitment to member service and our efforts to modernize and simplify our business, we achieved record financial growth. Improved earnings and a growth in our capital base allowed us to pass our gains on to you by way of lower loan rates and higher savings rates.

Our assets, as of September 30, 2015, were $2,050,003,368. This represents growth in assets of $136,432,935, or 7.1%. Share deposits grew a total of $171,435,317 for a growth of 10.1% during the year. Additionally, as of September 30, 2015, we were pleased to have net loans to members in the amount of $1,542,192,042.

As further evidence of our company’s financial stability, I am proud to report that our gross income for the 12-month period as reported by the independent accounting firm of Clifton Larson Allen LLP, Certified Public Accountants totaled $88,143,644 and was distributed as follows:

$14,260,705, or 16.2% of gross income in dividends to our members

$11,841,725, or 13.4%, in reserves and retained earnings

$62,041,214, or 70.4% to offset credit union operating expenses in providing products and services to our members

We continue to benefit from our commitment to sensible financial management and a disciplined compliance program, which resulted in a healthy level of reserves and undivided earnings. As of September 30, 2015, our retained earnings and equity totaled $169,153,136, representing a capital ratio of 8.25%.

Altogether, we are proud of our growth and look forward to continuing to invest in initiatives that help us facilitate the financial wellbeing of our members and our communities.

Thank you for your continued support of our family of credit unions. At $2 billion and 180,000 members strong, we have a credit union that we can truly be proud of.

Melvin S. Mizelle Treasurer, Board of Directors

ASSETS SEPTEMBER 2014 SEPTEMBER 2015 Cash and Cash Equivalents $105,402,835 $147,742,618 Securities - Available-for-Sale 4,617,863 371 Securities - Held-to-Maturity 311,674,887 179,402,873 Other Investments 6,510,751 3,516,381 Loans Held-for-Sale 204,725 471,200 Loans, Net 1,310,342,980 1,542,192,042 Accrued Interest Receivable 6,243,582 6,480,451 Foreclosed Assets 3,223,006 1,551,259 Premises and Equipment, Net 40,089,807 37,927,200 NCUSIF Deposit 17,662,164 17,491,307 Goodwill and Other Intangible Assets 72,231,430 71,936,340 Other Assets 35,366,403 41,291,326

______________ ______________ Total Assets 1,913,570,433 2,050,003,368

LIABILITIES AND MEMBERS’ EQUITY Liabilities Members’ Share and Savings Accounts 1,693,497,749 1,864,933,066 Borrowed Funds 45,000,000 - Accrued Expenses and Other Liabilities 17,729,148 15,917,166

______________ ______________ Total Liabilities 1,756,226,897 1,880,850,232

Members’ equity Regular Reserves 18,529,735 18,529,735 Undivided Earnings 138,781,678 150,623,403 Accumulated Other Comprehensive Income (Loss) 32,123 (2)

______________ ______________ Total Members’ Equity 157,343,536 169,153,136 ______________ ______________ Total Liabilities and Members’ Equity $1,913,570,433 $2,050,003,368

Consolidated Statements of Financial ConditionCHARTWAY FEDERAL CREDIT UNION AND ITS DIVISIONS

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LEADERSHIP TEAM

Brian T. Schools President &

Chief Executive Officer

Phillip A. Richards Corporate Planning &

Brand Officer

Rene G. Bollinger Corporate Human Resources Officer

Kimberly J. Little Corporate Retail Officer

John W. Blum Corporate Operations Officer

Donald D. Yang Corporate Lending Officer

Paul V. Annunziata Corporate Financial Officer

LEADERSHIP TEAM

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BOARD OF DIRECTORS

Top Row (L to R): Robert N. Cook, Director; George E. Sauer, 2nd Vice Chairman; Robert O. Holmes, 1st Vice Chairman; Richard R. Ahlborn, Director; Dallas L. England, Director

Bottom Row (L to R): E. L. Gull, Jr., Secretary; Wayne E. Foshay, Chairman; Judith P. Sparrow, Director; Melvin S. Mizelle, Treasurer

TOGETHER, WE ARE PART OF SOMETHING EXTRAORDINARY,

AND OUR “1-FOR-ALL” PHILOSOPHY CONTINUES TO FUEL OUR PURPOSE AND OUR PERFORMANCE