ACUTX Annual Meeting Report 2020

2A0N20NUAL REPORT

MISSION STATEMENT The mission of Associated Credit Union of Texas is to offer progressive, quality financial services responsive to the member-owners. The Credit Union is dedicated to providing these services in a caring, professional manner while maintaining a strong financial base.

TABLE OF CONTENTS 01 REPORT OF THE PRESIDENT AND BOARD OF DIRECTORS 03 PRIOR MEETING MINUTES 04 AUDIT REPORT 04 ELECTION OF DIRECTORS 04 BYLAWS AMENDMENT 05 GROWTH 06 FINANCIAL CONDITION 07 BOARD MEMBERS 08 SENIOR MANAGEMENT TEAM

REPORT OF THE PRESIDENT AND BOARD OF DIRECTORS Throughout 2020, the collective challenges we faced led us to innovate and find new ways to meet our members’ emerging needs and explore new ways to serve them efficiently and safely. Through it all, we were steadfast in our commitment to bring our members sound guidance, excellent service and opportunities to improve their financial state. This year reinforced the notion that technology and convenience are key to business contingency. We launched a new and improved digital banking platform, offering members a more streamlined online experience, free credit monitoring, and the ability to access all of their accounts in one place. We were the first Houston-area credit union to utilize video banking technology to offer a fully remote member service experience. Since June, our vBanking service has allowed members to do virtually anything that once required a trip to the branch, from their smartphone through face-to-face video chat. Touchscreen vBanking kiosks are also currently available in all ACU of Texas branches, allowing for shorter wait times as representatives are able to remotely assist members. These technological advancements allow members to bank with us from anywhere, which is even more important now that we have amended our by-laws, expanding our field of membership to include Brazos, Chambers, Fort Bend, Grimes, Matagorda, Montgomery and Wharton counties. The credit union navigated lobby closures and operated strictly via drive-thru from mid-March through May. This time allowed us to reevaluate which services were feasible through the drive-thru, eventually expanding those services for good once lobbies reopened. During this same time, we enabled 82 back office employees to work from home, to limit exposure, without any layoffs or furloughs. Adding to our already new business account portfolio, we were quick to offer the critical SBA Paycheck Protection Program loans, helping keep more than 65 small businesses open and operating. In addition, we worked with members to defer loan payments when jobs were lost and uncertainty was high. Our Mascot Debit Card program continued to provide funds for educational grants to assist teachers and school districts as they dealt with a rapidly changing learning structure. Throughout the year, we donated more than $20,000 to our partner school districts and Education Foundations. We also added two additional cards for Alvin Community College and the Cypress-Fairbanks ISD Education Foundation. Moreover, we upgraded our plastics to all contactless debit and credit cards, as well as added our new Select MasterCard credit card, which earns 2% cash back on all purchases. Due to the pandemic, we shifted our annual STAR Academy, which provides financial education to children in 3rd grade through junior high, to an online model to host a four-day interactive financial literacy summer camp for 63 students via Zoom. In addition, we offered Financial Peace University to 82 couples, helping them as they work to improve their overall financial situation. 01 | ACU OF TEXAS ANNUAL REPORT 2020

Finally, our insurance program through our CUSO, CU Financial Group, LLC, now stands at over $26 million in our book of business and we have brokerage relationships with ten credit unions across the state of Texas. CUFG Keystone Realty Group had 70 real estate closings in 2020. Keystone Community Development Corporation, the non-profit division of CUFG, offered Homebuyer Education Courses to 109 attendees, and continues to provide access to veteran service organizations through our SERVE network, which has been assisting local veterans since 2015. In 2021, we will continue our digital-first approach with the launch of a texting platform and a simplified online process for account opening and loan applications. As we reflect on our years as a credit union, it is clear that our commitment to our members has remained unchanged even as the world changed around us. As we continue to grow and adapt to the needs of our members, we ask for continued active participation, and in return, you can be sure you will see progressive, quality financial services and an unwavering dedication to our member-owners. Jack Click President/CEO, ACU of Texas ACU OF TEXAS ANNUAL REPORT 2020 | 02

PRIOR MEETING MINUTES ASSOCIATED CREDIT UNION OF TEXAS 71ST ANNUAL MEETING MINUTES | FEBRUARY 20, 2020 Chairman Mark Kline called the 71st Annual Membership Meeting of Associated Credit Union of Texas to order at 6:03 PM on Thursday, February 20, 2020. Chairman Kline welcomed the members and thanked them for their attendance. Chairman Kline then asked Vice-Chairman John Blair if a quorum was present and Vice-Chairman Blair confirmed that there was a quorum present. Next item of business was the minutes of last year’s annual meeting. Chairman Kline reported that members were furnished with a copy of last year’s Annual Meeting minutes as they came in. Chairman Kline asked for any comments or questions concerning last year’s minutes as printed. There were none. The minutes were approved as printed with a motion made by Board Member Bill Carraway and seconded by Board Member Joel Mueller. A vote was then taken and none were opposed. The minutes were approved as presented. Chairman Kline then advised the membership that the Report of the Board of Directors and President as well as the Audit Committee Report were published in the program. Chairman Kline requested that all attendees review the reports. Chairman Kline called for any unfinished business. There was no unfinished business. Chairman Kline called for any new business. There was no new business. Moving on to the Election of Officers, Chairman Kline called upon Nominations Committee Chair Joel Mueller to give his report who reported that there were two positions on the board to be filled. The nominees were given as follows: Bill Carraway (3-year term) and John Blair (3-year term). Nominating Committee Chairman, Mueller concluded his report. Chairman Kline accepted the motion made by Board Member Rodriguez and seconded by credit union member Tony Sims that the two candidates are to be elected by acclamation. Motion carried. Chairman Kline accepted the motion made by Board Member Blair and seconded by Board Member Rodriguez to adjourn the meeting and the motion carried. Chairman Kline thanked everyone for attending and the meeting was adjourned at 6:08 pm. 03 | ACU OF TEXAS ANNUAL REPORT 2020

AUDIT REPORT The standard examination of ACU of Texas was completed by the Texas Credit Union Department as of December 31, 2019. All aspects of the credit union’s operations, including the safety and soundness, were covered in the examination. The examination report indicated that ACU of Texas continues to operate in a safe and sound manner. Additionally, we retained the independent CPA firm of CliftonLarsonAllen LLP to perform an annual audit to ensure compliance in all areas of the credit union. The annual audit took place on the week starting February 24, 2020 and covered the period of January 1, 2019 to December 31, 2019. CliftonLarsonAllen LLP also performed a member account verification audit for the period ending September 30, 2019. ELECTION OF DIRECTORS The Nominating Committee reviewed the applications submitted and are recommending Kyle Dickson and Joel Muller for re-election for a three-year term and Kent Postma for re-election for a two-year term. All board members have completed the Director Application and Agreement to Serve and have indicated a willingness to continue serving on the Board of Directors. BYLAWS AMENDMENT On March 12, 2020, the Bylaws of the credit union were amended to reflect that persons who live, work, worship or attend school and businesses and other legal entities located in the Texas Counties of Brazos, Chambers, Fort Bend, Grimes, Liberty, Matagorda, Montgomery, and Wharton were eligible for credit union membership. In addition, on February 8, 2021, the Bylaws of the credit union were amended (i) to allow the credit union to conduct its annual meeting virtually without an in-person quorum under certain circumstances and (ii) to remove the four meeting virtual participation limit previously imposed on Board members for the purposes of calculating the quorum of the Board. ACU OF TEXAS ANNUAL REPORT 2020 | 04

GROWTH 42,242 $487,526,782 LOAN Members in Total Assets $312,420,546 Funded in Loans ASSETS LOANS 2016 $339,402,888 2016 $220,310,347 2017 $375,781,829 2017 $252,736,336 2018 $398,567,137 2018 $284,741,276 2019 $418,813,341 2019 $316,359,361 2020 $487,526,782 2020 $312,420,546 DEPOSITS MEMBERS 2016 $329,642,202 2016 36,360 2017 $362,860,544 2017 38,577 2018 $352,734,474 2018 40,244 2019 $371,314,449 2020 $441,626,777 2019 40,879 2020 42,242 05 | ACU OF TEXAS ANNUAL REPORT 2020

ASSETS FINANCIAL CONDITION 2020 Loans As of 12/31/2020 $312,420,546 Allowance for Loan Loss $(4,401,662) Cash/Investments 2019 $151,277,230 Accrued Income $1,128,392 Other Assets $316,359,361 $27,102,276 $(4,294,584) Total $78,754,832 $487,526,782 $1,162,019 $26,831,713 $418,813,341 LIABILITIES & EQUITY 2019 2020 Accounts Payable $6,782,627 $6,052,268 Members Shares $371,314,449 $441,626,777 Regular Reserves $4,473,410 $4,473,410 Unrealized Gain on Investments $286,545 $457,774 Undivided Earnings $35,956,310 $34,916,553 Total $418,813,341 $487,526,782 INCOME 2019 2020 Interests on Loans $19,234,811 $19,004,262 Income from Investments $1,327,650 $806,039 Other Income $10,676,975 $10,857,530 Total $31,239,436 $30,667,831 EXPENSES 2019 2020 Total Expenses $26,678,310 $26,409,131 Total Dividends $2,833,994 $3,184,657 Total $29,512,304 $29,593,788 Net Income $1,727,132 $1,074,043 ACU OF TEXAS ANNUAL REPORT 2020 | 06

BOARD MEMBERS BOARD OF DIRECTORS Mark Kline John Blair Mark Rodriguez Joel Mueller Chairman Vice Chairman Treasurer Secretary Term Ends 2022 Term Ends 2023 Term Ends 2022 Term Ends 2021 Bill Carraway Kyle Dickson Bruce Terry, Jr. Kent Postma Board Member Term Ends 2023 Board Member Board Member Board Member Term Ends 2021 Term Ends 2021 Term Ends 2022 EXECUTIVE STAFF Jack Click Jay Coppock Clay Franks Charis Pollard President/Chief Chief Operating Chief Financial Chief Human Executive Officer Officer Officer Resource Officer David DeAnda Chief Legal Officer

SENIOR MANAGEMENT TEAM Corey Lecoq April Thomson Teri Hayes David Borden Controller Senior VP of VP of Branch VP of Sales Operations Operations Experience Cindy Soto Derrick Brown Brian Zornes Russ Gillaspia VP of Accounting VP of Collections VP of Facilities VP of Business Development Jennifer Frederick Keith Tillinger Tony Sims Kevin Anderson VP of Lending VP of Marketing VP of Mortgage VP of Information Technology Eilene Markus VP of Support Services ACU OF TEXAS ANNUAL REPORT 2020 | 08