59th Annual Meeting of the Members

59�� An�u�� M�e��n� � ��� M����r� March 23, 2021

Agenda: Welcome attendees & recognize volunteers Appointment of recording secretary Ascertain a quorum is present Approval of the minutes of the last Annual Meeting Chairman’s Report President’s Report Treasurer’s Report Supervisory Committee Report Un nished Business New Business Elections Adjournment

M��u�e� Fr�� ��� 2020 An�u�� M�e��n� � ��� M����r� September 1, 2020 Chocolate Bayou Community Federal Credit Union (CBCFCU) Board Chairman Tommy King welcomed the attendees to the CBCFCU Alvin O ce and called the 58th Annual Meeting of CBCFCU to order at 7:00 p.m. Chairman King appointed Adam Flores as Recording Secretary for the meeting and con rmed that there was a quorum present with 22 members attending. Chairman King noted the minutes of the 2019 Annual Meeting had been distributed and requested that a motion be made for their approval. A motion from Director Deitcher and a second by Director Wilson was made to approve the minutes of the 2019 Annual Meeting. There were no dissenting votes. CHAIRMAN’S REPORT Chairman King thanked the membership, volunteers and employees for their dedication to our credit union. Chairman King spoke to the challenges COVID-19 has created in 2020 but he was proud how the credit union continues to serve our members throughout the pandemic and applauded the employees for being here for the members as essential workers. In 2019, we continued to invest in our cooperative by remodeling the Alvin branch exterior and vestibule giving ourselves a new look but also providing easier access with automatic door openers. We continued to invest in technology by adding cash recycling machines in our Alvin drive thru which a ords our employees the opportunity to serve you more e ciently. Chairman King concluded by thanking the credit union’s CEO, Mr. Angeles, on celebrating three years with the credit union as 2019 was a very successful year. Chairman King stated he would turn the meeting over to Mr. Angeles for his report. PRESIDENT’S REPORT President/CEO Gary Angeles welcomed the attendees to the meeting. Mr. Angeles stated his report was included in the Annual Report and he would not present it verbally in its entirety but wanted to share a few thoughts. Mr. Angeles stated the credit union ended 2019 with a capital ratio of 10.53% and indicated the regulators consider anything over 7% to be well capitalized. The credit union ended the year with $1.4 million in net income and grew net worth by 13%. The credit union nished the Alvin remodel and was able to give back to the community by contributing more than $30 thousand dollars to local programs such as the Alvin food bank, rotary, lions club and scholarships for graduating high school seniors to name a few. Mr. Angeles recognized Mr. Rex Klesel for serving on the Board of Directors for ten years. Mr. Angeles then recognized Beth O’Sullivan and Dianna Johnson as dual employees of the year. Lastly, he recognized Patricia Hubbard, who retired from the credit union in March 2020 after serving fteen years. Mrs. Hubbard is now a member of our Supervisory Committee. Mr. Angeles then spoke about 2020 and the challenges our credit union and nation are seeing with COVID-19, civil unrest, natural disasters like Marco and Laura, election year and the Fed Funds rate dropping to zero. Mr. Angeles stated the credit union closed its lobbies to do our share to reduce the spread of COVID-19 and a reopening plan at this point is week to week based on the infection and hospitalization numbers. We’d rather be open in a limited capacity than be forced to close due to a breakout. Through July 2020 the credit union has seen deposits increase from $122 million (year end 2019) to $137 million as members have received stimulus money and there has been less spending during the year as lockdowns continue. Mr. Angeles stated the credit union has been able to assist many members during the pandemic with payment deferrals. Mr. Angeles also stated that due to terri c earnings in 2018 and 2019 we are able to get through this pandemic and he is proud to say the credit union has had no employee layo s or cuts as a result. In 2020, the credit union has begun o ering a 30-year mortgage product with 5% down and a vehicle re nance campaign paying members $400 to bring their loans to us. The credit union is working on “contactless” payments and when that project is complete the team will begin working on instant debit card issuance. Mr. Angeles thanked Mr. Bradd Theodore, VP Information Technology, on his work in converting our core system data to a new server. Mr. Angeles reminded the members present to stay after the meeting for a ra e and lastly, he recognized Gayleen Supak who will be retiring after 30 years of service in April 2021. Mr. Angeles asked if there were any questions for him, having heard none, he turned the meeting over to Mr. Dupuis for the Treasurer’s report. TREASURER’S REPORT Mr. Dupuis stated his report was included in the Annual Report. Mr. Dupuis thanked everyone for their hard work and dedication in such a di cult year with hopes that we will get back to some normalcy sooner than later. Mr. Dupuis congratulated everyone on a terri c 2019 which positions us well for the future. Mr. Dupuis turned the meeting over to Mrs. Deitcher to give the Supervisory Committee Report. SUPERVISORY COMMITTEE REPORT Supervisory Committee Chairwoman, Mrs. Deitcher thanked and introduced the other members of the Supervisory Committee noting the volunteer role. Mrs. Deitcher indicated the credit union’s audit results in 2019 resulted in no material ndings with one audit currently pending results. Mrs. Deitcher turned the meeting back over to Chairman King. Chairman King returned to the podium and called for any old business. There being none, he called for any new business. There being none, Chairman King asked Mr. Angeles to present the Nominating Committee report. The Nominating Committee presented three incumbents for nomination and no nominations for petition were received. There being no other nominations, in accordance with the credit unions bylaws Cheryl Deitcher, Adam Flores and Fred Fargo were elected to a three-year term. Mr. Angeles then turned the meeting over to Chairman King. There being no other business, Chairman King called for a motion to adjourn at 7:20 p.m. A motion to adjourn was made by Shirley Brothers and seconded by Gayleen Supak.

CHAIRMAN’S REPORT The credit union industry has a philosophy of “People Helping People.” At Chocolate Bayou, we wholeheartedly believe in this philosophy. Each decision is carefully considered and centered around the best interest of our members and safety and soundness of our cooperative. 2020 was a year to be remembered with COVID-19 causing so much pain and su ering throughout the world; we mourn the loss of so many people. Your credit union did its best to balance member and employee safety throughout the year while still servicing member needs. It was a challenge we continue to navigate into 2021. In 2020, we invested in our communities by giving back $34 thousand in charitable contributions to various organizations; a 10% increase over 2019. We also continue to invest in technology behind the scenes which makes our employees more e cient and we continue to invest money in our cyber security program as protecting member data is extremely important to us. In 2020, we brought you contactless debit cards and enhanced fraud alerts and in 2021 we expect to deliver enhanced home banking and mobile banking systems. These enhancements could not be possible without you, our members, thank you for allowing us to serve you and our surrounding communities. Tommy Chairman of the Board PRESIDENT’S REPORT As we turn the page on 2020, our Credit Union will be celebrating 59 years of serving our members and community. I’d like to thank our members, volunteers, and employees for their dedication to our credit union. Our credit union ended 2020 serving nearly 13,000 members with total assets exceeding $135 million. This is an 11% increase from 2019. Our credit union remains well capitalized at 10.11%, with net income for the year coming in at $945 thousand. Our net worth grew 7.5% and our asset quality (loan delinquency and charge-o s) remains excellent and nished the year at .29%. In 2021, we plan on making signi cant changes to our home banking and mobile banking products. These changes will modernize the platforms and add additional services such as a personal nancial management tool, Quicken and person to person payments via Zelle to name a few. These changes will also bring greater convenience as the CardValet (debit and credit card alerts – card management system) app will be present within the mobile banking platform rather than as a separate app. We are extremely excited about these enhancements. Thank you for your continued membership and we look forward to serving you for many years to come. Gary Angeles TREASURER’S REPORT Sound nancial management has always been the key ingredient to the success of Chocolate Bayou Community Federal Credit Union. The 2020 Balance Sheet exhibits scal soundness, highlighted by net worth growth of 7.5% and total assets exceeding $135 million. Our capital ratio ended the year at 10.11% due in large part to solid net income for the year of $945 thousand. The credit union also served members by increasing our loan portfolio by more than 2% during a year where COVID-19 kept our lobbies closed for more than ve months throughout the year. Ernest Dupuis Treasurer SUPERVISORY COMMITTEE REPORT The Supervisory Committee is proud to report our latest nancial audit re ects the necessary preparation, excellent nancial condition, and sound integrity of our credit union. The audit conducted for the period ending June 30, 2020 consisted of an examination of accounting records and a review of internal controls. This healthy “report card” is the direct result of dedicated employees and volunteers on our Supervisory Committee and Board of Directors. Our regulator, the National Credit Union Administration did not examine the credit union in 2020. The Supervisory Committee also held regular meetings and branch cash counts throughout 2020, with no material ndings. Cheryl Deitcher Chairwoman of the Supervisory Committee

Balance Sheet 2019 2020 $58,948,066 ASSETS $60,317,883 Loans $(168,589) $(249,162) Less Allowance for Loan $62,082,142 $51,405,616 Losses $2,941,949 Investments $3,607,308 $2,787,509 Cash $409,234 $3,726,997 Land & Building $6,281,796 Furniture & Equipment $135,471,723 $313,051 Other Assets $5,004,738 Total Assets $121,936,815 LIABILITIES $338,215 $439,381 Accounts Payable & Accrued $8,575,159 $9,527,458 Expenses $31,861,101 $26,370,876 Certi cates of Deposit $83,052,638 $74,724,198 Share Draft (Checking) $123,827,113 $111,061,913 Deposits Share (Savings) Deposits $10,874,902 Total Liabilities $121,936,815 MEMBER’S EQUITY $11,644,610 $3,182,799 Total Capital $135,471,723 $1,120,597 Total Liabilities & Equity $2,580,501 $6,883,897 INCOME $3,038,909 Interest on Loans $731,675 $5,217,476 Income from Investments $71,808 Other Operating Income $2,776,252 Total Income $6,546,836 $5,289,284 $1,594,613 EXPENSES $5,465,540 Operating Expenses $36,846 $(50,518) Provision for Loan Losses $1,544,095 Total Expenses $5,502,386 $136,899 Income From Operations $1,044,450 $1,407,196 Non-Operating Income/Loss $15,998 $1,369,887 Income Before Dividends Dividends $1,060,448 $37,309 Net Income $115,104 Undivided Earnings Increase/ $945,344 $(111,007) Decrease $765,344 $73,698 Undivided Earnings Vs Income Di erence $180,000 $(37,309) Retirement Reserces/Adj $(180,000) Overfunded Allowance Adj - $(180,000)

Employees and Board of Directors celebrating anniversary milestones! Gayleen Supak Vicky Garcia Stacie Gilmore Stephanie Venable 30 Years 20 Years 15 Years 15 Years Amanda Howe Jennifer Montieth Cheryl Deitcher Megan Dawson 15 Years 10 Years 10 Years 5 Years Kristen Williams Rachael Johnston Beth O’Sullivan 5 Years 5 Years 5 Years