Fellow Members, If there’s one thing we’ve learned over our 66 years of credit union service, it’s that anything can change at a moment’s notice, and it often does. 2020 was a year like no other, and it required great resilience, ingenuity, and adaptability to keep the wheels turning. As “the new normal” has become synonymous with living during the COVID-19 pandemic, we’ve come to recognize that we will be navigating its effects and after-effects well into the foreseeable future. But I’m proud to report that our commitment to our members and the education community has never waivered throughout it all, even in the midst of profound uncertainty and disruption. Despite having limited resources, we have adapted astonishingly well to meet the moment of this extraordinary time. COVID truly pushed us to be more agile and innovative. We kept people healthy and safe while managing our business challenges, and we helped our members by providing critical access to capital. Our digital capabilities enabled us to convert face-to-face interactions into virtual ones. Our workplace collaboration efforts allowed us to maintain business continuity. We developed new muscle around being flexible – and the way we were able to approach this turbulence says a lot about our exceptional credit union, our culture, our team, and our leadership. I am here to assure you that we are as irrepressible as ever, ready to serve you and your family as a trusted and inviolable financial partner for another 66 years and beyond. But as always, our strength hinges upon your continued support. Since 1955, we have been lending locally, employing locally, investing in our community, supporting financial education, and keeping more money in the pockets of our neighbors. We personally know our members and their families. We genuinely care about the local education community. And, we continually pursue ways to give back. Your loan business fuels it all, and we ask that you consider keeping it local. The more you need us, the more we need you. Local commitment matters, now more than ever. As you know, we have thrived as a fiercely independent, member owned financial cooperative since the very beginning. The cooperative philosophy of people helping people – pooling deposits to make loans and provide other services at reasonable cost – has stood the test of time. You don’t need me to tell you that we are not just another financial institution. And you are not merely someone who conducts business here. The connection between us is stronger than money. You can be proud of what we’ve built together; it is a profound testament that this credit union is truly yours. Warmest regards, Miranda McConoughey Chief Executive Officer Lake County Educational Federal Credit Union • Welcome Address Mary Ann Bittner • Certification of Quorum Mary Ann Bittner • Roll Call Mary Ann Bittner • Pledge to the Flag/Invocation Fr. Gregory Heath • Meeting Call to Order Mary Ann Bittner o Minutes o Report of Nominating Committee • Report from CEO Miranda McConoughey • Old Business Miranda McConoughey • New Business Miranda McConoughey • Q&A Miranda McConoughey • Prize Drawing Josh Seligman • Adjournment Mary Ann Bittner BOARD OF DIRECTORS Mary Ann Bittner President (4) Pat Hall-Miller Vice President (23) Robin Channels Secretary (6) Genny Sivula Phillips Treasurer (10) Jacqueline Cawley Director (15) Marietta Lipps Director (13) Mary Ilenin Director (10) Michael Zalar Director (1) Gregory Youdath Director (2) OFFICE STAFF Miranda McConoughey CEO (10) Joshua Seligman Operations Manager (1) Sara Imars Loan Manager (26) Shellie Puglia Loan Officer (5) Michelle Dalrymple Accounting Clerk (9) Lynn Lothman Head Teller (19) Holly Kovach Teller (17) Michelle Crain Teller (1) Kevin LaCamera Business Development (3) Carol Stefancin Branch Manager (22) Sandy Previte Office Assistant (2) SUPERVISORY COMMITTEE Christine Tomkins Chair (1) Chris Parsons Committee Member (14) Elise Olausen Committee Member (3) Jackie Cawley, Incumbent Director Jackie retired from the Riverside School district after 36 years of teaching. Her two children also graduated from the district. She currently lives in Concord with her husband, John. Jackie has been a member of the credit union for over 53 years, and has served on the Board since 2004. She looks forward to continuing her work with Miranda and her fellow Board members to keep our credit union strong and an integral part of our community. Robin Channels, Incumbent Board Secretary Robin retired after 28 years as a secretary for the Madison school district. She has been a lifetime resident of Madison, and has been married to her husband, John, for 44 years. They have two daughters, Jennifer and Amanda. Robin has been a member of the credit union for over 33 years. She was appointed to the board in 2013. She has enjoyed her time on the Board, and looks forward to an exciting year of changes for the credit union. Dr. Michael Zalar, Incumbent Director Dr. Zalar has over thirty years of experience as a teacher, principal, and superintendent in a number of public school districts. He is currently in his eighth year as Superintendent of the North Olmsted City Schools. Dr. Zalar has been a credit union member since 2013. He previously has served on the Board of the North Olmsted Federal Credit Union, prior to the merger with Lake County Educational FCU, for the past year. He appreciates representing our membership, and looks forward to continuing his service in this capacity for another term. Financial And Statistical Report ASSETS 2020 2019 Cash on hand in banks $ 2,077,842 $ 1,856,030 Investments $ 14,926,805 $ 11,412,403 Loans to members (net) $ 13,863,242 $ 14,529,177 Fixed Assets $ 266,705 $ 312,055 Other Assets $ 195,047 $ 183,308 TOTAL $ 31,329,641 $ 28,292,973 LIABILITIES AND EQUITY Other liabilities $ 77,377 $ 69,490 Shares $ 28,736,849 $ 25,772,833 Accumulated unrealized gain /loss on investments $ 160,607 $ 97,676 Statutory reserves $ 471,914 $ 471,914 Undivided earnings $ 1,881,061 $ 1,835,369 Net income, current year $ 1,833 $ 45,691 TOTAL $ 31,329,641 $ 28,292,973 EXPENSES Salaries and Benefits and Taxes $ 501,700 $ 487,910 Office Occupancy $ 90,985 $ 89,959 Office Operations $ 192,200 $ 114,122 League dues $ 10,589 $ 11,482 Annual meeting $ 4,164 $ 4,200 Educational / advertising and other exp. $ 229,349 $ 299,767 Provision for loan loss $ 36,547 $ 31,743 TOTAL $ 1,065,534 $ 1,039,183 DISTRIBUTION OF EARNINGS Reserves $ 471,914 $ 471,914 Dividend $ 22,536 $ 24,507 Undivided earnings $ 1,881,061 $ 1,835,369 STATISTICS Number of members year end 3,899 3,637 New members year end 194 227 MEMBERS WITH LOANS 32.8% 37.3% The Supervisory Committee is appointed by the Board of Directors to independently evaluate the soundness of Lake County Educational FCU’s operations and enterprises by hiring an external auditor and directing internal auditing. Such endeavors ensure the credit union is protecting and safeguarding members’ assets by implementing effective controls within the approved risk appetite of the Board and senior management, National Credit Union Administration regulations, Lake County Educational FCU bylaws, and generally accepted accounting principles. Lilly & Company CPAs performed the annual financial statement audit. It is the Supervisory Committee’s opinion that the Lake County Educational FCU financial statement provides a fair and accurate representation of our fiscal condition. Additionally, the internal auditing department completed all 2020 assessments. Considering both external and internal auditing processes, it is the Supervisory Committee’s conclusion that Lake County Educational FCU is financially strong, sufficiently managed, and has suitable policies and programs in place. We believe this positive position is a direct result of the Board of Directors’ guidance and management’s leadership. We extend our gratitude to the volunteers and staff for an ongoing commitment to improving internal controls and strengthening the credit union, allowing us to prosper and maintain stability for the membership.