Annual Meeting



Paradise Valley Federal Credit Union

Annual Meeting 2015

National City, California (March 28, 2016) — Paradise Valley Federal Credit Union

Janice Pressler, Chief Lending Officer, called the meeting to order at 7:07 p.m. and offered prayer.

Mike Shetler, President of the Board of Directors, ascertained a quorum of 26 members and employees, then welcomed everyone and shared history of PVFCU. Started in 1957 and in 1975 $1 million, 1985 $8 million, 1995 $19 million, 2005 $57 million, 2015 $86 million in assets. Mr. Shetler announced Jan will be retiring after 31.5 years of service. Cap to asset: 13.56%, 3.62% in assets. We did lose members, but assets were strong. PVFCU gave over $30,000 to charities like SDA, SDA churches, Boys and Girls, etc. The CU continues to give back to the community.

Janice Pressler gave the Secretary’s Report.

Lorraine Vargas, Chairperson of the Credit Committee, alerted those in attendance that the Credit Committee acted on 825 loan applications for 2015. Mrs. Vargas pointed out that the Credit Committee makes a conscientious effort to approve all loan applications, taking into consideration credit scores, purpose of the loan, etc. Mrs. Vargas pointed out the strong relationship between the Credit Committee and the Loan Officers of the credit union. She encouraged members to get their friends, family, and neighbors into PVFCU for a loan.

John Pressler, Chief Executive Officer, gave the Treasure’s Report and highlighted the small growth of loans per members. Mr. Pressler highlighted the decrease in loans due to the real estate decline. Mr. Pressler noted that the goal for 2016 for PVFCU was to increase consumer loans. There is a new category dealing with the Defined Pension Plan and noted that the CPAs of the Credit Union advised a monthly pension disbursement in accordance with new NCUA accounting policies. $448,000 in dividends were disbursed. $607,000 was the net income of PVFCU. The Credit Union had an asset growth of 3.6% over 3 years, loan growth of 1.8% and Mr. Pressler noted that the Credit Union is doing very well and noted that audits and exams highlight the strength of PVFCU. He highlighted how the employees, volunteers, and mostly members contribute to the success of PVFCU.

In lieu of a Supervisory Report, John Pressler highlighted the members of the Supervisory Committee. They are responsible for the hiring of CPAs, work with NCUA on their exams, internal monthly audits. They are all volunteers. Mr. Pressler also acknowledged the volunteers for the various committees. In addition to highlighting the volunteers, Mr. Pressler also acknowledged Priscilla Cespedes’ 22 years of service on the Credit Committee.

Gerald Schaffner, Chief Financial Officer, highlighted the eServices of PVFCU. Mr. Schaffner highlighted the various components of PVFCU’s electronic services. eStatements go out quicker, save PVFCU money, and help them offer other products. With eBranch, you can view account balances, manage accounts, transfer money between accounts, schedule transfers between accounts, detailed account history, view check images. You can also transfer from your PVFCU account to another financial institution and vice versa. ePay is where you can schedule the payment of your bills. Something new eServices offers is Mobility. Remote Deposit Capture remains to be a convenience for members, allowing them to deposit a check through your phone. Mr. Schaffner highlighted the potential for another app that will allow members to fully manage their debit card, including turning the card off or limiting the kind of purchases that can be made with the card.

John Pressler highlighted the slight increase in rates at the Federal level, but noted that the CU
wasn’t really feeling the hike. Home loans are anticipated to be at 6% by the end of 2018. The
four biggest industries in San Diego are: manufacturing, military and defense, tourism (26
million tourists annually), and agriculture.

John Pressler pointed out the main scams of fraud this last quarter has been the phone calls
from IRS. They never call, so don’t give out info. There’s also tech/IT calls to lock your
computer, you pay “ransom.” Also foreign lottery winnings and online purchases. He then
acknowledges the employees. We have about 14 employees and they do an excellent job.

There was a vote to elect Drew Tricoli (member for 15-20 years, good asset to Board, works
with FDIC) and Les Palinka (local attorney, member since 1972). Both were elected to 3 year
terms. Priscilla Cespedes elected for a 2 year term for the Credit Committee.

The Annual Meeting raffle was held and winners went home with anywhere from $10 to $50.

The meeting was adjourned at 7:55 p.m.