Annual Meeting 2016

The North Star Credit Union provides safe, high quality financial services to

meet the needs of our communities and member/owners,

enhancing their financial education and well-being,

while maintaining the strength of the Credit Union.

Building Community One

Member at a Time

Welcome Members

RICH CRETTOL, CEO

2015 was another successful year at North Star Credit Union. We continue to

grow and add new products and services to meet the needs of our members,

YOU! During the year we grew by nearly 20%, changed the name of our

company to better reflect our membership, completed the remodel of our new

office building to house our administrative staff, opened our second student run

branch at the South Ridge School, and completed another successful

examination by our regulators.

The hard work and dedication of our staff and volunteers, along with the

commitment from our members, are what makes NSCU a leader in our

community. Thank you for your continued support!

Proof of Notice of Meeting ~

“I, Rich Crettol, CEO of the North Star Credit Union, hereby certify that I caused to be sent to the membership a notice of this annual meeting with the March 31, 2016 statements. I had notice of this meeting published in the North Country Free Press and the Cook News-Herald prior to the meeting. Notice was also posted inside the credit union, on the sign

out front of our building, and on our website."

Who We Are…

Rich Crettol – Chief Executive Officer

Peter Huberty – Chief Operations Officer

Nicole Squires – Accounting Manager

Jody Feist – Administrative Assistant

Shirley Martinson – Consumer Loan Officer

Stephanie Burckhardt – Lending Manager

Crystal Scofield – Consumer/Mortgage Loan Officer

Michelle King – Loan Processor

Dionn Hell – Accounting Clerk

Lynn Polich – MSR/Teller Supervisor

Jay Linn – MSR/Teller

Jolene Wilson – MSR/Teller

Susan Stone – MSR/Teller

Elizabeth Pretti – MSR/Teller

Casey Hagadorn – Education/Business Development

Brooke Cote – Senior Student Intern

Alli Sandberg –Junior Student Intern

Julia DeVries– Summer Intern

Board of Directors

William Conner – Chair

Pete Niska – Vice Chair

Tom Beaudry – Secretary

Lara Whiteside – Director

Vicki Schelde – Director

Rich Crettol – CEO/Treasurer

Board meetings are held on the

fourth Wednesday of each

month at the credit union.

Meetings are held more often if

necessary.

Supervisory Committee

Bob Champa – Chair

Marla Kahn – Member

Karen Lind – Member

“Helping to build thriving communi-ties across Northern Minnesota”

Our Staff

1. Call to order the 77th annual meeting by board chair: Cork Conner. 2. Roll call and declaration of a quorum present. (15 members represent a quorum):

# of Members Present___________Guests___________

3. Proof of notice of the meeting is on page two of the annual meeting report and posted on our website along with last year’s minutes.

4. Welcome by: Rich Crettol

5. Report of the Nominating Committee by: Tom Beaudry 6. Lara Whiteside: Unfinished business from last year, if any

New business: Adjourn and Thank You: _________________________________ Prizes awarded: Tablet for the likes on Facebook:______________________________________________

TV $100 $75

$50 $50 $25

$25 $25 $25

$25 $20 $20

$20 $20 $20

Umbrella Umbrella Umbrella

Umbrella Umbrella Umbrella

Umbrella Umbrella Umbrella

Umbrella Cooler Cooler

Cooler Cooler Cooler

Cooler Cooler Cooler

Cooler Cooler

COOK AREA CREDIT UNION COOK, MN 55723

AGENDA FOR THE ANNUAL MEETING OF THE MEMBERSHIP MAY 20, 2016 6:30 PM

Finances

Statement of Financial Position December 31, 2015

ASSETS

Cash on Hand and Deposit $ 2,453,011

Total Investments 1,551,647

Total Loans Receivable 30,314,680

Allowance for Loan Losses (246,793)

Fixed Assets (Building, Improvements, Equipment) 687,436

National Credit Union Insurance Fund Deposit 249,044

Accrued Income and other Assets 175,072

Total Assets $ 35,184,098

LIABILITIES AND EQUITY

Member Share/Deposit Accounts $ 30,964,140

Credit Union Capital 3,543,997

Accounts Payable 589,656

Other Liabilities 86,305

Total Liabilities And Equity $ 35,184,098

YEAR END STATISTICS

Number of Members 3,104/41,000

Capital/Total Assets 10.60%

Return on Assets Ratio 1.05%

Statement of Operations December 31, 2015

RECEIPTS Year end 2015 Year end 2014

Interest Received on Loan Accounts $ 1,413,551 $ 1,262,432

Interest Received on Investments 27,533 31,468

Operating and Other Income 358,329 234,933

Total Receipts $ 1,799,413 $ 1,528,833

EXPENSES

Compensation and Benefits $ 757,769 $ 669,019

Operations, Occupancy and Other 532,386 369,004

Provisions for Loan Losses 36,000 26,000

Total Expenses $ 1,326,155 $ 1,074,023

Total Receipts Over Expenses $ 473,258 $ 454,811

Dividends Paid to Members $ 102,571 $ 103,234

Addition to Credit Union Capital 370,687 351,577

Total Distribution $ 473,258 $ 454,811

DISTRIBUTION OF RECEIPTS OVER EXPENSES

Rates As of April 30,2016

Loan Rates %

New Cars And Trucks As Low As 1.99%

Used Cars And Trucks As Low As 3.49%

New Recreational Vehicles As Low As 2.99%

Used Recreational Vehicles As Low As 3.49%

Signature Loans As Low As 9.65%

Real Estate/Home Equity As Low As 4.24%

All loan rates vary based on credit score and term of loan.

Share Rates %

Kid’s Club Account(0-12 Yrs) Earns .50%

Future Freedom Account (13-18 Yrs) Earns .50%

Regular Share Account Earns .20%

Preferred Share Account Earns Up To .40%

Money Market Share Account Earns Up To .40%

Share Certificates Earns Up To 1.60%

REPORT OF THE NOMINATING COMMITTEE April 27, 2016

NORTH STAR CREDIT UNION COOK, MN

BY RESOLUTION OF THE BOARD ON MARCH 2ND, 2016 DIRECTOR ELECTIONS WILL BE CONDUCTED ANNUALLY BY MAIL. MEMBERS MAY BE CONSIDERED FOR DIRECTOR POSITIONS BY FILLING OUT THE ONLINE APPLICATION OR PETITION AVAILABLE ON OUR WEBSITE.

THE NOMINATING COMMITTEE SUBMITS THE FOLLOWING CANDIDATES FOR ELECTION TO THE BOARD OF DIRECTORS:

FOR ONE THREE YEAR TERM TO EXPIRE 2018: APPOINTMENT OF VICKI SCHELDE TO FILL THE POSITION VACATED BY THE RETIREMENT OF JANE MARCONETT.

FOR ONE THREE YEAR TERM TO EXPIRE 2019: INCUMBENT, PETE NISKA.

BEING THAT THERE ARE NO OTHER CANDIDATES, THE BOARD HAS DECLARED THE ELECTION TO BE UNCONTESTED, AND THEREFORE TO SAVE THE CREDIT UNION THE COST OF MAILING BALLOTS, THE CANDIDATES ARE DULY ELECTED.

RESPECTFULLY SUBMITTED BY THE NOMINATING COMMITTEE

Supervisory Committee

MAY, 2016

The Supervisory Committee has three members; Karen Lind, Marla Kahn and Bob Champa. As

a general rule, we meet twice monthly, on the Tuesday before and the Thursday after the

monthly board meeting. A member of the committee attends each monthly board meeting to re-

port new trends, and to offer thoughts on policies or procedures to be reviewed.

Our duties are to oversee the operations of the credit union and:

1. To ensure that the financial statements accurately and fairly present the financial

condition of North Star Credit Union,

2. To ensure that management practices and procedures safeguard members' assets,

3. To ensure that internal controls are established and effectively maintained, and

4. To ensure that plans, policies, and procedures established by the board of directors are

properly administered.

We review board meeting minutes, bookkeeping procedures, do surprise cash counts, review

newly opened and closed accounts, and dormant accounts.

There is a great deal of paperwork for the supervisory committee to oversee. We have an exter-

nal auditor on retainer to help complete this paperwork. The most recent audit shows NSCU to

be in excellent financial condition. Our credit union is continually monitored and operating ac-

cording to all rules and regulations.

Respectfully Submitted,

Karen, Marla, & Bob

Celebrate Success!

NSCU has accomplished many goals over the past year. We hope you join us in celebrating the great things we have to offer our community.

History

The North Star Credit Union opened in 1939 as Northern Farmer's Co-op Credit Union. It was sponsored

by the Northern Farmer's Co-op Society. The Credit Union was based out of the Co-op Store until it

burned down in October 1994. After operating out of the BIC building for some time, the Credit Union

was able to relocate in January 1996 to Main Street, where it currently stands. Once relocated the Cred-

it Union extended its field of membership to Lake Country Power Members. To accommodate its grow-

ing membership, the Credit Union expanded its building in 2011. Besides creating a larger space, the

expansion succeeded in creating a more private atmosphere for its members. Recently in 2013 the

Credit Union was able to broaden its field of membership once again; this time allowing students, fami-

ly, volunteers, and staff of school district 2142 to join. In 2013 they proudly created a Student Focus

Group called "The B.O.S.S" (Bunch of Students Saving). With help from the B.O.S.S, in February of 2014

the Credit Union successfully opened its new Student Branch in the North Woods Campus called "The

Money Cave." The Credit Union continues to grow, and has bright future plans for its members.

NSCU Core Values Financial Stability

Financial Education

High Quality Service

Meeting the needs of our members

Team work between management and staff

Promoting the credit union idea to communities

Here are some ways North Star

Credit Union has been involved

in our local communities

Community Focus

2015 Events

January 28th LSS Paying less for Collage

January 29th Academic Adventurer- Indian Education w/ The BOSS

February 13th Parents Appreciation Boys Basketball and Empty Bowl Fundraiser

February 18th Jungle Cash field Trip to North Woods and to the Credit Union

Febuary 23rd Parent Appreciation Girls Basketball-Guess how much is in the jar?

March 11th LSS went to South Ridge to talk about student loans

March 27th Annual Meeting

April 10th -12th Minnesota Credit Union Network Convention

April 29th Grand Opening of The Jungle- stayed for “South Ridge got Talent” show

April 22nd-29th Coloring contest for South Ridge Elementary Students

May 7th BOSS Banquet with Governor Dayton and Commissioner Rothman

May 19th-22nd Member Paper Shredding Week

May 19th 5th grade presentation for North Woods- keeping personal information safe

May 21st 4th grade presentation for North Woods- income and expenses

May 22nd 6th grade presentation for North woods- keeping personal information safe

May 19th Panther Pride Night-Membership Drive

June 14th Timber Days Groovy Parade and Bed Race

August 7th Steak Fry-Children Miracle Network

August 11th First Annual Stuff the Bus Event

September 3rd North Woods Open House

September 3rd South Ridge Open House

September 19th Hospital Health Fair

October 15th is International Credit Union Day!

October 22nd Groovy Family Fun Night

October 27th –LSS class Fast Lane to Debt Freedom

October 28th Crystal spoke to Career Explorations Class at North Woods

November 4th FFN at South Ridge

November 17th- LSS class Happier Holidays

Student Groups

Boss –North Woods School

Alexis Ingebretsen-Boss

Michael Brodri – Boss

Olin Halverson – Boss

Taylor Midthun-Boss

Kate Beaudry-Boss

Brooklyn Isham-Boss

Colton Arvila-Boss

Samantha Barnet-Boss

Kayla Brodri-Boss

Lily Wheeler-Boss

Jungle Cash-South Ridge School

Lillian Grages- Jungle Cash

Anna Hall – Jungle Cash

Elizabeth Poskie-Jungle Cash

Kasey Myhre –Jungle Cash

Charlie Davidson- Jungle Cash

Hunter Skluzacek-Jungle Cash

Trenton Johnson-Jungle Cash

Marissa Bober-Jungle Cash

Members were welcomed to the 76th annual meeting by board chair Lara Whiteside at 6:30.

Roll call and declaration of a quorum was made. (15 members represent a quorum). Members present: 65 Guests: 4

Proof of notice of the meeting was read and is incorporated in these minutes:

“I, Rich Crettol, CEO of the Cook Area Credit Union, hereby certify that I caused to be sent to the membership a notice of this an-nual meeting with the February 28, 2015 statements. I had notice of this meeting published in the North Country Free Press and the Cook News-Herald prior to the meeting. Notice was also posted inside the credit union, on the sign out front of our building, and on our website."

Welcome Speech by CFO Myrna Malm.

Minutes of the 2014 annual meeting were read by Board Member, Tom Beaudry.

A report of the board of directors was made by Pete Niska. He introduced the current board members and mentioned that board meetings were held on the fourth Wednesday of each month. He reported that total membership at the end of the year was 3042 out of potential membership of 41,000. This was an increase of 135 net new members for the year. Current interest and dividend rates were reported followed by an introduction of the management and staff.

The report of the Supervisory Committee was given by Bob Champa.

The financial reports were given by Myrna Malm CFO.

The manager’s report was given by Rich Crettol CEO.

A report of the proposed name change to North Star Credit Union was given by Rich Crettol.

A motion was made by Gary Albertson to vote on changing the name of Cook Area Credit Union to North Star Credit Union second was made by Carrie Carstens. Motion carried by unanimous vote.

The Credit Committee Report was given by committee member Leo Wilenius. The Nominating Committee Report was given by board member Cork Conner;

For the Board of Directors: One three year term to expire 2018: Incumbent, Tom Beaudry One three year term to expire 2018: Incumbent, Jane Marconett

For the Supervisory Committee: One three year term to expire 2018: Incumbent, Marla Kahn

For the Credit Committee: One three year term to expire 2018: Incumbent, Leo Wilenius

Myrna called for nominations from the floor three times. Being none, a unanimous ballot was called for. Motion by Reino Lahti, second by Lisa Muggli, to cast a unanimous ballot. Motion carried.

Lara Whiteside then called for any unfinished business from last year. There was none

New business: Reino Lahti made a recommendation to get 100 people under the age 40 to attend the next annual meeting.

The meeting was adjourned at 7:45pm.

April Sanderson from LSS discussed the Financial Choice Program that provides free financial education to the credit Union Mem-bership. A prize drawing was held, followed by lunch.

COOK AREA CREDIT UNION MINUTES OF THE ANNUAL MEETING OF THE MEMBERSHIP

NORTH WOODS HIGH SCHOOL, COOK, MN MARCH 27, 2015 6:30 PM

24 South River Street Cook MN, 55723

218-666-5940 www.northstarcreditunion.org