2015 Annual MeetingApril 19, 2016

Our Mission StatementTo serve the community and build trusted

relationships.

2015 Annual Meeting Agenda

Eric Dreier Call the Meeting to OrderSteve Merten Roll Call of the BoardSteve Merten Minutes of Last Year’s MeetingEric Dreier The Report of the DirectorsEric Dreier Bylaw Changes ReportKaren Browne Treasurers ReportPeg Klein Credit Committee ReportEric Dreier The Report of Outside AuditorsEric Dreier Unfinished and New BusinessNominating Committee Election ReportEric Dreier Adjournment

Eric DreierChairperson

Call the Meeting to Order

Steve Merten, SecretaryRoll Call of the Board

Minutes of Last Year’s Meeting

Eric Dreier, ChairpersonReport of the Board of

Directors

2015 Accomplishments

5 Star Bauer Rating

17 Consecutive Years!

2015 Accomplishments Physical Growth

Leased Front St 2nd floor space to Berkshire Hathaway Home Services

2015 Accomplishments Physical Growth

Opened Member Service Center

2015 Accomplishments Physical Growth

Started 2015/2016 School year with 18 SRCU’s

BlairCentral GradeCherry KnollCourtadeEast Middle SchoolEasternForest Area Middle SchoolGrand Traverse AcademyImmaculate Conception

InterlochenInternational School at Bertha VosLong LakeOld MissionTCAPS MontessoriTraverse HeightsWest Middle SchoolWestwoodsWillow Hill

2015 Accomplishments Physical Growth

Installed Additional Safe Deposit Boxes

New Products & Services

FREE Checking Risked Priced VISA

Credit Cards Chip Enable VISA Credit

Cards Board Secure Website SBA Loans

Information Technology Hardware Update Cycling Data Loss Prevention Full Internal System Monitoring

Refined Secure Email Capability Enabled Addition of TBA Career Tech

Center Intern to the IT Department as Work Experience

Community Involvement Michael's Place Junior Achievement Michigan Blood Big Brothers/Big Sisters of

Northern Michigan Northwestern Michigan College Area School Districts and Sport

Booster Clubs Adopt A Highway March of Dimes Children’s Advocacy Center Arthritis Walk National Cherry Festival Safe Harbor Father Fred Foundation

Rotary MCUL Legislative Challenge 4H TART Trails Habitat for Humanity American Legion GT Hockey Association Meals on Wheels TACS Sailing Program Kiwanis Woman’s Resource Center State Theatre Disability Network United Way Crooked Tree Arts Center Darcy Library

Salvation Army Interlochen Center for the Arts TC Chamber of Commerce Great Lakes Children's Museum

Participation in Other Events Ideas for Life Senior Expo MARVAC RV & Camper Show Oryana Membership Days Pavilions Benefits Fair NMC Benefits Fair NMC Barbeque TC Chamber Business Expo HBA Home Expo Money Smart Week International Credit Union Day TCAPS Welcome Back Breakfast

Sponsorships/Donations• GT Women Business Luncheons• Junior Achievement Youth Summit• Michaels Place Night at the Movies• BIGS Bowl for Kid’s Sake• Outstanding Educator Awards• Outstanding Person in Education Awards• TAAR Golf Outing• Jim Ooley Golf Outing• March of Dimes Chef’s Auction• TC Children Book Festival• SCORE Workshop Series• TC Bike Film Fest• Forest Area Sports Boosters

• NMC Scholarship Open• TBAISD Career Tech Golf Outing• TC West Senior High Sports Boosters• Optimist Club• Norte Youth Cycling• Benzie County Central Schools• Goodwill Industry• Blessing in a Backpack

Scholarships & Grants

• Classroom Improvement Grants• GTBA MEA Scholarship• GTARSP Scholarship• TBACU Scholarship fund for NMC Students

I am writing to extend my sincere thanks for your TBA Credit Union Scholarship of $1,000 toNorthwestern Michigan College. I am deeply grateful to have been selected as a recipient of yourgenerous contributions to the community and higher education.

-Richard Vegh, NMC Scholarship Recipient

“

”

60th Year Celebration

Member Education and Events• Budgeting 101 at NMC• Youth Financial Literacy

• Story Hour and book giveaway at Old Mission and TC Area District Library

• Financial GEO-Caching Event at NMC• Financial Literacy Legislature Challenge

• Financial Budgeting Workshop for the Disability Network Job Summit

Free Events Hosted at TBACU• ID Theft Seminar

• Social Security Seminar• Wills & Trust Seminar

• E-Services Seminar• Woman, Money and Power Seminar

Policy Updates and Revisions Investment Policy Employee Handbook BSA & OFAC Policy ALM & IRR Policy Liquidity Management & Contingency Funding Policy Loan Policy MBL Policy IST Policy

Eric Dreier, ChairpersonBy-law Change Report

Karen Browne, CEOTreasurer’s Report

2015 Growth• Asset Growth = -2.89% or -$5,202,331 National Average = 7.3%

(Without commercial funds, Asset Growth is 8.95%, $14,347,572)• Share/Deposit Growth = -4.83% or -$7,337,786 National Average = 6.8%

(Without commercial funds, Share Growth is 9.21%, $12,212,117)• Loan Growth = 11.39% or $13,892,827 National Average = 10.5%• Loan to Share Ratio = 93.88% Peer Average = 71.26%

80,000

100,000

120,000

140,000

160,000

180,000

200,000

Nov

-13

Dec-

13

Jan-

14

Feb-

14

Mar

-14

Apr-

14

May

-14

ju n

-14

Jul-1

4

Aug-

14

Sep-

14

Oct

-14

Nov

-14

Dec-

14

Jan-

15

Feb-

15

Mar

-15

Apr-

15

May

-15

Jun-

15

Jul-1

5

Aug-

15

Sep-

15

Oct

-15

Nov

-15

Dec-

15

Asset, Share, Loan Growth

Assets Shares & Deposits Loans

Growth in the Past 10 Years

$-

$20

$40

$60

$80

$100

$120

$140

$160

$180

$200

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Mill

ions

TBACU Growth History

Total Assets Total Deposits Total Loans

• YTD ROAA = .91%• Total YTD Net Income = $1,616,438

.75% - National Peer Average

0.00

500,000.00

1,000,000.00

1,500,000.00

2,000,000.00

2,500,000.00

Nov

-14

Dec-

14

Jan-

15

Feb-

15

Mar

-15

Apr-

15

May

-15

Jun-

15

Jul-1

5

Aug-

15

Sep-

15

Oct

-15

Nov

-15

Dec-

15

Net Income

Net Income for Month Net Income Year to Date

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

Return on Average Assets

10.9% - National Average

• Capital Increased = 11.2% or $2,669,032• Total Capital December 2015 = $26,541,631 or 15.2% of Assets

Credit Union Strength

9.50%10.50%11.50%12.50%13.50%14.50%15.50%16.50%

Capital & Net Worth Ratio

Capital Ratio Net Worth Ratio

Membership Growth

16,157 membership accounts 15,467 members

12 Month Growth Rates: 2015 Added % of GrowthTotal Membership 1,525 10.9%School Employee Membership 82 4.9%Non-School Emp Membership 1,443 6.0%

12000 12500 13000 13500 14000 14500 15000 15500 16000

Jun-14

Aug-14

Oct-14

Dec-14

Feb-15

Apr-15

Jun-15

Aug-15

Oct-15

Dec-15

Membership Growth

Reason Codes 2015 Added % of GrowthReferred by Dealer Finance 192 47.5%Referral 79 19.6%Student Run Credit Union 8 2.0%Seeking Lower Rates 23 5.7%Existing Member 33 8.2%

82.9%

Sponsorship Codes 2015 Added % of GrowthRetail-Grocery, Dept, Food 322 38.2%Professional Services 200 104.1%Medical – Dr, Dentist, Hosp 178 109.4%Retirees 172 258.3%Manufacturing 169 42.1%

110.4%

Student Run Credit Unions• Number of student volunteer and

money saved has continued to grow. In 2014, students saved a total of $19,019.

• SRCU’s are in 18 schools, including elementary, charter, private and public schools.

2010-11 2011-12 2012-13 2013-14Volunteers 147 197 309 329Accounts 152 241 357 477

130 180 230 280 330 380 430 480 530

Sude

nts

Participating Youth

-

5

10

15

20

2010-11 2011-12 2012-13 2013-14

# of Schools

Building Member Loyalty

2015 Remote Deposit Capture Totals747 New Users, Growth of 205.1% Membership Penetration 5.8%3,955 checks total of $2,360,097.21

Checking Accounts7,100, Growth of 13.1%

Membership Penetration45.9%

Bill Pay1,701, Growth of 11.9%

Membership Penetration11%

eStatements8,055, Growth of 17.6%

Membership Penetration52.1%

Debit/ATM Acct ActivityNov - 6,179 Dec – 6,138Jan – 6,325

40% Member Penetration

Investment Services

CFS Financial Advisor Andrew Maniaci works with TBACU members daily at either TBACU office.

2015 Income - $37,932.58

Portfolio Balance as of 12/31/15 - $21,771,463

2015 Peer Comparison

0.00%

0.50%

1.00%

1.50%

TBA Peers

ROAA

0.00%

0.50%

1.00%

1.50%

2.00%

TBA Peers

Fees and Other Income to Average Assets

9.00%

11.00%

13.00%

15.00%

TBA Peers

Net Worth

0.00%

5.00%

10.00%

15.00%

TBA Peers

Membership Growth

60.00%

65.00%

70.00%

75.00%

80.00%

TBA Peers

Operating Expense to Gross Income

TBA Credit Union2015 Annual Meeting Financial Figures

April 19, 2016

Financial Condition 2015 2014 Statement of Earnings 2015 2014

Assets Interest IncomeLoans 135,904,877 122,012,050 Loans 5,731,720 5,350,760Allowance for loan loss -441,913 -460,648 Investments 389,303 436,912Other Receivables 322,453 232,026 Total Interest Income 6,121,023 5,787,672Cash 9,652,332 19,533,623Investments 14,248,813 23,873,838 Interest ExpenseAlloya Capital Share Deposit 519,200 519,200 Members Savings 75,717 75,814Prepaid Expenses 1,052,568 870,218 Dividends 339,823 354,162Fixed Assets 8,748,821 8,861,673 Total Interest Expense 415,540 429,976Accrued Income 358,225 336,488NCUSIF 1,338,231 1,246,556 Provision for Loan Loss 186,176 433,550Other Assets 2,957,675 2,838,588Total Assets 174,661,281 179,863,612 Net Interest Income after

provision for loan loss 5,519,307 4,924,146

Liabilities and Equity Total Non-Interest Income 1,552,878 1,400,437Accounts Payable 3,651,420 4,500,458Accrued Liabilities 25,581 22,740 Non-Interest ExpenseOther Liabilities 115,768 -178,117 Operating Expense 5,470,124 5,057,919Member Shares and Savings 144,768,794 152,106,580 Non-Operating Gain(Loss) -14,377 486,028Capital 26,099,718 23,411,951 NCUSIF Stabilization Expense 0 0Total Liabilities and Equity 174,661,281 179,863,612 Net Earnings 1,616,438 1,752,692

Peg Klein Credit Committee Chairperson

Lending Report

• Loans Granted• 9,777• $133,984,059

• Payments Received• $120,091,232

• Net Loan Growth• $13,892,827• 11.39%• Nat’l Ave Growth = 10.5%

0

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

70,000,000

80,000,000

2007 2008 2009 2010 2011 2012 2013 2014 2015

Auto Loans & Real Estate

Auto Loans Real Estate

0

5,000,000

10,000,000

15,000,000

2008 2009 2010 2011 2012 2013 2014 2015

Other Personal Secured & Unsecured

Personal Line of Credit

Credit Cards

Total Commercial including secured by Real Estate

Other Areas of Loan Growth

2015 Year End Total Portfolio $21,001,234

Total Income (includes interest and sale proceeds)

$141,240.18

Total Expense$43,323

-

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

2010 2011 2012 2013 2014 2015

Neighborhood Mortgage Solutions

Average Year End Delinquency .41%

Delinquency Year End Total$517,297

.81% - National Average

2015 Charge Offs.21%

Total Year End Total$292,190

.48% - National Average

0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

1.20%

1.40%

2010 2011 2012 2013 2014 2015

Delinquency

0

100000

200000

300000

400000

500000

600000

700000

800000

900000

2010 2011 2012 2013 2014 2015

Charge Off

Eric Dreier, Chairperson

Report of Outside Auditors

Unfinished & New Business

Charlene HamlynNominations Committee Chairperson

Election Report

Eric Dreier, ChairpersonAdjournment