application for funds for project to help ......1st mortgage loan was modified greatly reducing the...

APPLICATION FOR FUNDS

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APPLICATION FOR FUNDS FOR PROJECT TO HELP WASHINGTONHOMEOWNERS AVOID PREVENTABLE FORECLOSURES OR TO AMELIORATE

THE EFFECTS OF THE FORECLOSURE CRISIS

Please submit an application including all of the following information. Incompleteapplications will not be considered.

I. APPLICANT INFORMATION

Organization Name: Newrizons Federal Credit Union

Mailing Address: 120 Firman Street

City, State, Zip: Hoquiam, WA 98550

County: Grays Harbor County

If Tribal, Designate Tribe: N/A

Primary Contact Person: Ynette Gibbs

Primary Contact Phone No.: 360-533-4760

Primary Contact Email: [email protected]

Secondary Contact Person: Terry M Fultz

Secondary Contact Phone No.: 360-533-4760

Secondary Contact Email: [email protected]

II. ORGANIZATION TYPE

(check applicable)

501(c)3 nonprofit – See Attachment 3

Tribal

Governmental agency

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mailto:[email protected]



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III. IDENTIFYING INFORMATION

Tax Identification Number (TIN): 91-0814137Uniform Business Identifier (UBI): 601 133 953

A. Does your organization currently receive any funding from the AGO? If yes,please identify the date of your last report.

No; Yes.

B. Does your organization receive any funding from any other governmental agencyfor housing related projects or foreclosure related assistance? If yes, list thecontracts by title, contract number and funding amount for the past 3 years.

No; Yes.

C. Is your organization solely owned/operated by a current state employee? If so,please complete the Ethics Certification process at www.ethics.wa.gov.

No; Yes.

IV. PROJECT PROPOSAL

A. Project Title Newrizons Federal Credit Union Home Preservationand First Time Home Owner Program

B. Requested Amount: $753,000

C. Project summary: In 150 words or less, concisely describe your project and how it meetsthe criteria set forth in the settlement. This summary will help the Committee reviewproposals. Attachments and exhibits are not allowed in this section. Over-lengthsummaries will disqualify application.Newrizons Federal Credit Union seeks $753,000 to assist qualified, motivated low andmoderate income residents in Grays Harbor County in (1) purchasing and improvingpreviously foreclosed property as their primary residence, (2) providing extensive one-on-one credit counseling, debt negotiation and management services, credit buildingloans, and higher interest rates home-ownership savings plans to existing distressed andprospective foreclosed property home owners, and (3) re-financing current distressedhome loans at lower rates, no or low fees, with more affordable loan payments.Improving the value of homes is a key component to both Home Preservation and First-time Home Buyer Programs. The majority of homes in Grays Harbor County are older,smaller homes that fit into an affordable price range ($40,000 to $100,000) and needimprovement. Property values will increase with this plan, more people will achievehome ownership, and others will now be able to “keep” the home they love.

D. Describe how your project meets the criteria set forth in sections I and III above,including estimated start and completion dates. Supporting information and exhibits maybe included here. Please try to make your submission as concise as possible.

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http://www.ethics.wa.gov/


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Newrizons Federal Credit Union (NFCU) is a sound, progressive, non-profit, low-income, certified Community Development Financial Institution (CDFI) committed tokeeping the needs and wants of Grays Harbor County (GHC) Community first - notprofits. Originally established in 1965 to serve employees and families of Lamb GraysHarbor Company, Newrizons expanded our charter and family-oriented services tofocus on all the low-income population of GHC, a rural, economically distressed areasince the late 1990s.

Newrizons’ range of financial products and services greatly exceeds that of mostCommunity Development financial institutions of its size ($7.6 million in assets, 1254members) offering home, vehicle, business, unsecured personal loans and lines of credit;secured and unsecured credit and debit cards; savings, checking, CD, IRA (traditional,educational, ROTH) accounts; robust mobile, phone, and web banking applications,24x7 loan applications plus accessibility to over 6500 Shared Branching locations.NFCU’s free one-on-one and group financial credit counseling and debt managementservices employ a strong mentoring and oversight approach which has been lifechanging.

From 2006 to 2008 NFCU increased first mortgages by 23% but from 2009 to 2011Newrizons strategically elected not to expand the 1st or 2nd mortgage portfolio while themarket was dropping so dramatically making the risk too high without grant support.Instead Home Equity Lines of Credit with extremely conservative underwriting criteriawas used to sustain the real estate portfolio. Newrizons’ Home Equity Lines of Creditportfolio has not experienced a single delinquency in the past 4 years. This is due in partto strict underwriting criteria and knowledge of the borrower and properties. In 2011, a1st mortgage loan was modified greatly reducing the interest rate from 8% to 3.5% tohelp a struggling self-employed homeowner who works out of his home keep hispayments affordable. We believe that the local Real Estate market will level out during2012 making it an outstanding time for GHC residences to start to take advantage ofhome ownership opportunities with equity growth potential.

In late 2012, Newrizons expects to roll out a First-time Homeowner Program foraffordable housing ($40,000 to $100,000) which includes required upfront financialcounseling, subsidized closing costs, home improvement components, low interest rates,and other upfront costs (e.g., subsidized 2nd position for down payment – maximum$10,000) combined with ongoing free budgeting services. This program is specificallydesigned for low income and/or first time home buyers of previously foreclosedhousing. They must live in the house and rehabilitate the home. Speculators and investorare not eligible. In preparation for home ownership, a special Home Buyer SavingsAccount with a higher subsidized interest rate and penalty for any non-homewithdrawals promotes down payment saving goals being met sooner. Free educationalsessions on home buyer best practices and readiness will be offered as well aspreparatory credit, financial, and budget management counseling.

Newrizons’ one-on-one approach to financial counseling and guidance models cleans upcredit, collections, garnishments and judgments which in turn makes the existing

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population more viable employment and home owner candidates. Newrizons creditcounseling clients show an average increase of 48 points in less than six months on theircredit score once enrolled in Newrizons’ financial counseling program with manyimproving 100 or more points. Access to credit builder loans for individuals withdamaged credit histories caused by a loss of employment or neglect, negotiatingsettlements with creditors and, arranging refinanced, manageable payment schedulesplays a huge part in getting these clients back on a strong financial foundation. Last yearthe credit union served 1140 people in the community. Newrizons’ financial literacy andcommunity outreach programs year after year positively impact students (K-12),unemployed and underemployed workers, and seniors - over 120 individuals last yearalone.

Newrizons’ HOME PRESERVATION PROGRAM will assist existing homeownerswith negotiated settlements as part of re-financing their existing homes rather than faceforeclosure. Home values of up to $100,000 will be eligible for this program. Allparticipants must live in the home and be the legal owner. Speculators or investors arenot eligible for this program. Home improvement loans to keep the home safe or moreenergy efficient in conjunction with Grays Harbor PUD and NeighborWorks at reducedinterest rates will be offered. The home improvement loans can take the form of asecond lien, a home equity line of credit, or a refinanced first position loan.

Newrizons’ real estate lending policies permit financing of up to 80% of the currentvalue of the home upon verification of income and ability to repay. We recognize that ina distressed situation, this may not be realistic for the home owner. Therefore, a portionof the requested grant funds will be used as a loan guarantee for difference in currenthome value up to $10,000 per home. The loan payment must still meet debt to incomeratio minimums as set by the board of directors. Any second mortgages offered tofinance the differences would be backed by grant fund guaranteed monies and wouldrequire pre-loan financial counseling, budget setting, ongoing oversight to ensure thathome maintenance and repairs are being completed in a timely fashion to increase thevalue of the home.

It has been our experience that borrowers that are emotionally invested in their propertyand know that Newrizons will always work with them towards a solution aresignificantly less likely to become delinquent or walk away from their obligation. GraysHarbor is a community with several large national and regional banks that lend toconsumers with stable income and traditional debt-to-income ratios. Few are willing toprovide affordable loans to low-income, paycheck to paycheck workers – especially inthis banking climate but we’ve made it work.

Newrizons will start immediately upon grant approval launching the marketingcampaign and holding financial readiness seminars. See Attachment 17- NewrizonsGRANT Marketing Campaign for specifics over the 3 year period. Expected outcomesof word of mouth and marketing campaign activities are anticipated to generate theresults capture in Attachment 18 – Newrizons GRANT Program Goals.

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E. Describe the demographics of the consumers you serve. Please provide supporting data orstatistics.For 46 years, Newrizons Federal Credit Union has focused on assisting Grays HarborCounty individuals and small businesses in building financial stability withcomprehensive, low or no-cost financial products and development services. Utilizingthe credit union’s wide range of services, low-income and higher-risk consumers arecontinually prepared for economic changes and instability, while remaining secure andable to work toward, and attain, their dreams of becoming debt free, home or businessownership, and financially responsible.

According to the 2010 US Census, GHC has a median income of $40,281 nearly$10,000 less than the US Median income of $50,046. 19.3% of GHC residents haveincome well below the poverty level, and 28.6% of residents under the age of 18 arebelow the poverty level.

For the past four years, GHC has consistently had the highest unemployment (14.9%high) in the state of Washington. The March 2012 GHC unemployment rate was 14.2%compared to the Bureau of Labor Statistics US Department of Labor Washington State8.7% and US 8.8% averages. Unfortunately, GHC is the only county in WashingtonState to not improve unemployment statistics in the last 12 months. In late 2009, GHCexperienced a loss of more than 2,000 jobs (March 2011 Grays Harbor EconomicDevelopment Council). 2011-2012 was to show a promise of turning these dismal trendsaround with over 1,020 new GHC jobs projected by local businesses and government.The reality is that despite an influx of jobs in 2011, additional business failures haveoffset any noticeable improvement in employment resulting in 201 less jobs (September2011 Grays Harbor Economic Development Council Economic Indicators).Nevertheless, for each newly created job, statistics prove that more small businessstartups generate even more jobs (What 100 New Jobs Mean to a Community by MartinLefkowitz, Gardner Economics Q1 2012 report). GHC’s challenge is getting ourexisting population in a financial position to take advantage of and build uponcommunity revitalization opportunities.

According to GHC Assessor and Treasurer’s office, property tax foreclosure andauctions fell slightly from a high of 258 in 2010 to 233 in 2011, but there was no reliefas the Average Sales Price dropped by 11% (September 2011 Grays Harbor EconomicDevelopment Council Economic Indicators).

According to the 2010 US Census, the population was 72,797. The largest city isAberdeen with a population of 16,896. GHC has experienced an increase in the Hispanicpopulation, traditionally unbanked, to 8.6% and 4.6% of the population is NativeAmerican (source 2010 US Census). 71% of current NFCU members are low incomedesignated per the US Treasury Community Development Financial Institution(CDFI1 re-certification analysis.

F. Describe the geographic scope of your project.Grays Harbor County Washington

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G. Identify the total number of consumers you expect to serve during the life of this grant.255 total, 18 in 2012, 85, in 2013, and 152 in 2014 See Attachment 18 – NewrizonsGRANT Program Goals

H. If this is not a new project, describe what changes are being made to an existing project.This is a new project.

I. Describe how net benefit or positive outcomes can be measured at the end of the project.The net benefit is a wonderful circle of wins. First, the overall community wins withstronger employment base committed to staying and improving Grays Harbor County.Next the values of surrounding properties increase generating a higher tax base. That taxbase in turn provides for better schools and local services. Better educated populationsmake for a stronger, more creative employment base – a wonderful self-fulfilling circle.However, that intangible circle is very difficult to measure except through individualsuccess stories. These will be captured but many do not want their personal trialspublished even when they end in triumph.

What can be effectively measured as a positive outcome is show in the table below:

Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2012 2013 2014HomeImprovementLoans 1 1 1 2 3 1 1 2 3 1First TimeHomebuyers 1 1 3 4 2 3 4 4 2Re-financedMortgages 1 1 1 1 1 1 1 1 1Home BuyerSavings Plan 1 2 3 6 9 12 15 18 21 24FinancialCounseling 5 6 7 8 9 10 11 12 13 14

TOTAL 7 11 13 20 26 26 31 37 42 42

FinancialReadinessSeminars 1 2 2 2 2 3 3 2 3 3Participants persession 6 8 10 12 12 12 12 12 12 12

Total reached 6 16 20 24 24 36 36 24 36 36

Additional measurements include keeping delinquencies at or below 1.5% and charge-offs to less than 0.5% during the same 3 year period.

J. Have you applied for an equivalent grant in the past, and if so, to which entity and when?

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No.

K. If you intend to collaborate with other organizations, please provide a letter of supportfrom that organization.NeighborWorks of Grays Harbor County – see Attachment 6City of Hoquiam – See Attachment 5Grays Harbor Community Foundation – see Attachment 4Domestic Violence Center of Grays Harbor – See Attachment 7Internal Revenue Service – See Attachment 8Grays Harbor Windermere Realty – See Attachment 9

L. Please provide an organization chart for your organization.

See Attachment 1 - Newrizons FCU Organization Chart 2012.pdf

M. Please provide three references familiar with organization’s activities and their contactinformation.James E. Daly, Executive DirectorGrays Harbor Community FoundationPO Box 615 Hoquiam, WA 98520360-532-1600Grays Harbor Community Foundation –Attachment 4

David Murnen710 East Market Street Aberdeen, WA 98520360-533-7828NeighborWorks of Grays Harbor County - Attachment 6

Albert A. Carter315 Lawrence Drive Hoquiam, WA 98550Former Grays Harbor County Commissioner – Attachment 15

Lynn KesslerFormer State Representative and Majority LeaderWashington State LegislatureLynn Kessler –Attachments 10a and 10b

Credit UnionMembers

Board of DirectorsYnette Gibbs, Co-

CEO

Darlene Vallaloid,bilingual MSR

Jody Reed, Sr.Loan Officer

Jessica Yearout,MSR

Natasha Rothwell,Loan Officer, MSR

Louise Knox, MSR

Israel Fernandez,bilingual MSR

SupervisoryCommittee

Terry M. Fultz, Co-CEO

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V. PROJECT BUDGETAs noted previously, this grant must be used to provide additional services and not merelyreplace existing services or supplant existing funding. No current salaries or benefits may befunded using grants provided by the AGO unless expressly and explicitly granted, in advanceand in writing, by the Committee. The Committee reserves the right to request a more detailedbudget prior to selection.

A. Total Project amount:Salaries: $45,000

Goods and Services (identify): $675,000Administrative Overhead $10,500Advertising or Outreach $14,250

Travel: $8,250Total: $753,000

B. What percent of your total project budget does this funding request represent?49% See Attachment 16 for budget details

C. If the project will be funded in part from other sources, identify those sources and thefunding amounts.51% from Newrizons Federal Credit Union See Attachment 16 for budget details

VI. PROJECT ADMINISTRATIONA. Identify within your organization who will be directly responsible for the following

project components: (a) administration, (b) fiscal, (c) service delivery. Attach a currentresume for the agency director, and the lead project staff person, and a current agencyorganizational chart.Ynette Gibbs will be directly responsible for the overall program management, servicedelivery and fiscal aspects of the program. Terry Fultz will be responsible for theadministration and accounting aspects of the program and participate in the servicedelivery. See Attachment 1 – Organizational Chart and Attachment 2 – Newrizons FCUResumes

Co-CEO: Ynette Gibbs started as NFCU’s CFO in 2008, became Co-CEO with Terry inJanuary 2011. She is a principal player in the development of strategic businessrelationships, the development of lending programs to increase Return on Average Assets(ROAA), successful marketing positioning strategies and product development andmanagement. She has launched and promoted numerous software product lines thatexperienced a steady increase in market share and revenue under her guidance. Ynettehas held executive positions at a variety of software companies from small start-ups tolarge publicly held corporations serving a range of vertical and horizontal industries,managing product lines generating up to $1.8 billion in worldwide revenue. Ynette holdsa BS from the University of Puget Sound and an MA from Central Michigan University.

Co-CEO: Terry Fultz has been the CEO of NEWRIZONS since 1979 and has nearly 40years of experience in operations and lending. Throughout her career, Terry has been

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responsible for all aspects of the operations of the credit union and has brought the creditunion from $500,000 in assets to its current size through her expert management of thecredit union’s marketing and lending activities. Terry played a major roll duringconstruction of a new facility in 1990. Terry guided the credit union through achallenging period after its primary sponsor, Lamb Grays Harbor Company closed in2001 working to diversify its membership through aggressive lending programs andproviding financial counseling to those members who lost their jobs. This created a nichefor the credit union in Grays Harbor County where the demand for financial counselingfor laid off employees is great and continues to grow.

B. Describe what steps your organization will take to ensure that the project will serve itsintended purposes and be completed on time.An extensive but grass roots marketing campaign will be launched upon grant approval.Newrizons staff will be responsible for overseeing the writing of the advertising copy forradio spots, newspaper advertisement creation, distribution of marketing flyers,brochures, and posters, statement stuffers, and creation and production of postcards andletters. Management is responsible for speaking to local organizations generatingawareness and actively promoting the program with NeighborWorks and other nonprofitpartners. Newspaper ads and/or articles will run in the local papers periodicallythroughout the 3 year period. 30 second radio spots will air daily for 1 week a month on 3local commercial stations targeting different demographics. Newrizons FCU will sendstatement stuffers annually. Marketing flyers, brochures, and posters will be distributedto 10 rural post offices, over 50 churches, Hoquiam Business Association, HoquiamTimberland Library, all local social services organizations, 5 volunteer fire departments,Grays Harbor College, the Quinault Nation, and several local businesses.

All marketing messages will target financial awareness, support for responsible homeownership, and how you can successfully live within your means.

Loan qualification will include financial readiness counseling as a prerequisite forparticipation in this program. Spanish translators are available to set up appointments, totranslate consumer loan application information and throughout financial counselingsessions assuring that credit counseling messages are accurately received by Spanishspeaking individuals.

Every program’s measurements of success are reported monthly and reviewed by theBoard of Directors. The financial aspects of any program are reviewed as part of theoverall financials (see Attachments 11 and 12). Quarterly in depth review of programs insupport of the 5 Year Strategic Plan is delivered. The execution of the programs in thisgrant proposal would be monitored in the same ongoing fashion to ensure that theappropriate demographics, investment dollars and expenses were being achieved or whatneeds to be done in order to achieve the agreed upon goals.

NEWRIZONS’s’ underwriting policies are documented, reviewed annually and approvedby the Board of Directors. Newrizons’ policy dictate continual and ongoing updating ofits empirically derived data to ensure that there is neither overt discrimination, nor any

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type of disparate treatment or disparate impact (effects) on a prohibited basis in itslending determinations. Current proof of income, current assessment (tax and value),homeowner’s hazard insurance, and a current credit report are required. A title policy ispurchased to ensure clear title and first or second position on the loan. Due to the natureof Grays Harbor, all properties are examined for required flood insurance. A loan officerreviews the loan application form, all current required monthly obligations, and performsthe debt ratio calculations. Based on the findings, a second loan officer’s review may berequired. Quarterly the Supervisory Committee audits a random sample of loans deniedand funded to ensure policies are met.

One-on-one preparatory credit counseling sessions ensure that both Newrizons and theborrower understand the opportunities, the risks, and potential mitigation strategies priorto entering into any long term agreements. Last minute surprises are few and far between.All lending decisions are made in Hoquiam. When a situation extends outside thepublished policies and a strong financial case can be made, email or impromptu boardmeetings are called to get a quick response for the applicant.

C. Describe how you plan to measure and evaluate the success of your project and includesamples of evaluation tools if available.Unique GL accounts will be set up for each program’s income and expense items tomeasure the number and dollar amounts associated with each loan and/or program. SeeAttachment 14 – Current Chart of Accounts. Every month our volunteer board reviewsthe loan portfolio quality (outstanding balances, delinquency and charge-off - seeAttachment 11-May Loan Portfolio Analysis Report) and financial progress to goal (seeAttachment 12 – April Actual to Budget Financials).

Each product, service and program is reviewed in detail quarterly to ensure that it isperforming at the level required to achieve our strategic plan – See Attachment 13- 5 yearStrategic Plan. This program will be managed, evaluated and measured in a similarfashion to all other programs offered by Newrizons.

All marketing campaigns are measured monthly for effectiveness via an excelspreadsheet and are used throughout the campaign to stop ineffective investments andaugment successful placements (see Attachment 17 – Newrizons GRANT MarketingCampaign).

VII. CERTIFICATIONI certify that I have the authority to submit this proposal, and that the information in this proposalis true and accurate. If my organization is faith-based, I understand that federal and state lawprohibit the use of public funds for religious worship, exercise, instruction or support of anyreligious establishment.http://www.acf.hhs.gov/programs/ccb/law/state_faith_based.htmhttp://www.leg.wa.gov/LawsAndAgencyRules/constitution.htm

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http://www.acf.hhs.gov/programs/ccb/law/state_faith_based.htm

http://www.leg.wa.gov/LawsAndAgencyRules/constitution.htm


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I understand that my organization will not receive reimbursement for any costs incurred inpreparing this proposal. If awarded funding, I understand that our proposal will be incorporatedinto the final contract.

Printed Name and Title: Ynette Gibbs, Co-CEOSignature (by entering name here,form is electronically signed):

Ynette Gibbs

Date: June 29, 2012

Applications should be addressed to:Rich [email protected] Protection DivisionWashington State Attorney General’s Office800 Fifth Avenue, Suite 2000Seattle, Washington 98104-3188

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Newrizons Federal Credit Union List of Attachments Attachment Purpose File Name

1 Organizational Chart 1.Newrizons FCU Organization Chart 2012.pdf

2 Resumes 2.Newrizons FCU Resumes.pdf

3 EIN and tax status 3.Newrizons EIN-501c(1) documentation.pdf

4 Letter of Support 4.Grays Harbor Community Foundation.pdf

5 Letter of Support 5.City of Hoquiam.pdf

6 Letter of Support 6.NeighborWorks Letter of Support.pdf

7 Letter of Support 7. Domestic Violence Center of Grays Harbor.pdf

8 Letter of Support 8. 2012 Newrizons Support Internal Revenue Service.pdf

9 Letter of Support 9. Windermere Letter of Support 6-27-12.pdf

10a Letter of Support 10a. Lynn Kessler email.pdf

10b Letter of Support 10b. Lynn Kessler Letter of Support for Newrizons FCU.pdf

11 Sample Report 11. May Loan Portfolio Analysis Report.pdf

12 Sample Report 12. April Actual to Budget Financials.pdf

13 Sample Report 13. Newrizons Strategic Plan.pdf

14 Sample Report 14. Newrizons Chart of Accounts.pdf

15 Letter of Support 15. Al Carter Letter of Support.pdf

16 Use of Funds Budget 16. Newrizons GRANT Budget.pdf

17 Marketing Plan 17. Newrizons GRANT Marketing Campaign.pdf

18 Program Goals 18. Newrizons GRANT Program Goals.pdf

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Credit Union Members

Board of Directors

Ynette Gibbs, Co-CEO

Darlene Vallaloid,

bilingual MSR

Jody Reed, Sr. Loan Officer

Jessica Yearout, MSR

Natasha Rothwell, Loan

Officer, MSR

Louise Knox, MSR

Israel Fernandez, bilingual MSR

Supervisory Committee

Terry M. Fultz, Co-CEO

Newrizons Federal Credit Union

Organizational Chart 2012

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Terry M. Fultz 130 Ecklund Ave. Hoquiam, WA 98550 360-533-4760 [email protected]

Education Graduate, Technical Business Program, ITT Technical School of Business, Seattle, WA 1965. Included

accounting, secretarial and computer programs Graduate, Western CUNA Management School, Pomona, CA, 2001. Three year program for Credit Union

Executives Various courses and seminars, specific to credit unions provided by the Washington Credit Union League,

CUNA and others Various computer classes provided by Grays Harbor Community College. Primarily Microsoft Office;

excel, word and access

Professional Profile People oriented and believe strongly in the credit union movement Able to think outside the box

Community Involvement Rotary Club or Hoquiam, President, Treasurer President, Board of Directors of Personal Service Providers Member of Hoquiam High School Advisory Committee for Business Studies Support United Way, local Chamber of Commerce, Hoquiam Development Association Habitat for Humanity family selection committee. Played active role in organizing and fund raising for Cancer Run Team Work Experience 2011 to present Co-CEO Jointly responsible for credit union operations with Ynette Gibbs

1979 -2010 CEO of Newrizons Federal Credit Union, Hoquiam, WA. Responsible for all aspects of operation. Brought the credit union from $500,0000 to $6.5 million in assets. Played major roll during construction of new facility in 1990. Guided the credit union through a challenging period after our primary sponsor closed in 2001 by diversifying membership and providing financial counseling.

1966 -1979 Hoquiam Branch, US Bank. Duties included teller, note cage and fill-in for several positions.

Related Experience Active in Washington Credit Union League Chapter program, serving as past President, Vice-President,

Treasurer and Marketing Person. Credit Union Foundation Advisory Board Personal: Family a priority. Hobbies: Photography and Cooking.

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Ynette Gibbs PO Box 201 Moclips, WA 98562 360-533-4760 [email protected]

Education Master of Arts 1975, Community Leadership, Secondary Education Central Michigan U, Mt. Pleasant, MI Bachelor of Science 1972, Psychology, Biology University of Puget Sound, Tacoma, WA Enrolled Agent, Internal Revenue Service 1982 Life, Health and Disability Insurance, WA State Licensed 2007 Licensed Financial Advisor, Series 7 and 66 certification 2008 Western Cuna Management School, Credit Union Management Certification, 2012

Professional Profile Excellent verbal and written communication skills Accomplished speaker, facilitator-organizer Strong marketing, business planning, budgeting, and management experience Creative problem solver Committed to building successful interpersonal relationships Expert Microsoft Office skills Passionate coach and mentor

Community Involvement Business Coach, Business Week, Aberdeen High School (2008-2012) High school guest speaker on career options encouraging girls to take math and science classes Elementary school reading program volunteer for students with English as a second language Parents of the year – Wilson High School 1995 for community outreach and fund raising programs Treasurer, Board Member, Museum of the North Beach, Moclips, WA (2008-2012) Business, Family Sciences, Board Member, Aberdeen and Hoquiam High Schools (2008 to present) Board Member – ReNu Medical, Everett, WA (2000 to present) Board Member – University of Washington, Extension Programs (2000 to 2012)

Relevant Business Experience 30 years Finance and Accounting experience 30 years preparing monthly, quarterly and annual tax forms 25 years Computer Software Experience 30 years Business Management Experience National Association of Computerized Tax Processors (NACTP) Secretary (1983) Treasurer, (1984-1985),

President (1986-1987) Chair, National Committee – State Form and Process Standards (1985-1986) National Committee – Electronic Filing format Chair (1986), Member (1987)

Professional Business Experience Active negotiator for debt management and/or relief with 32 active clients. Credit scores improved an

average of 48 points in 6 months. Developed business plans, new product requirements, marketing strategies, marketing communication plans,

and extensive partnering structure to reduce costs and increase revenue above original expectations.

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Created and delivered end-user and train-the-trainer training materials, technical documentation, chart of accounts, sales and support contracts

Recruited, developed, and managed strategic partnering (government and business) relations; negotiated business constructs and contract terms, partner program, contents, methodology; targeted partner list and priorities, marketing, pricing structures, and internal policies and procedures.

Actively participate in privacy policy planning and implementation. Developed strategies and supporting business plans to provide the right mix of products and service levels per targeted segment.

Developed and executed e-commerce and Customer Relationship Management (CRM) strategy, business, operational, and marketing plans including budget, and phased implementation action plan blending people, processes, and technologies that exceeded revenue expectations and market reach in first year.

Launched the most successful family product line in the company’s history during a period of acquisition and merger.

Consistently demonstrated effective planning and budgeting, bringing in projects on time and within budget while developing and attracting talent.

Created and delivered effective webinars, interactive demos, blogs, email and print newsletters, online forms, client assessable knowledge bases, proactive FAQ outreach campaign via email, chat, and text messaging increasing client interaction and interest generating 24% revenue increase.

Managed teams in marketing and training small to medium regional banks and credit unions on Mortgage Loan Origination and Loan servicing software Recruited, trained, and managed staff for 15 office Pierce County territory preparing income tax and bookkeeping. Supported clients during IRS and state audits.

Managed project team of 7 internationally located business units and 5 Tacoma-based departments; successfully integrated global and market-specific needs into all deliverables for Frank Russell Company’s international equity profile investments.

Effectively managed staff of 42, and $7.5 M budget responsible for product management, program management, project management, engineering, documentation, quality assurance, partnering costs, and technologies.

Employment History 2011 to present Newrizons FCU Co-CEO. Jointly responsible for credit union operations with Terry Fultz 2008 - 2010 Newrizons Federal Credit Union, CFO 1995 to present YG Consulting -Moclips, WA, Principal Manager 1997 - 2012 University of Washington -Redmond, WA, Software Product Management Certification

Program Instructor 2006 – 2007 Varolii Corporation - Seattle, WA, Vice President, Product Management 2004 - 2006 Onyx Software - Kirkland, WA, Senior Director, Product Management 2003 - 2004 Who’s Calling - Kirkland, WA, Vice President, Products, Research, & Development 1999, 2002 Portland General Electric Portland, OR, Senior Director, Integrated Marketing Strategies

& Web Strategies 2000 - 2001 Avaya Inc - Redmond, WA, Senior Director, CRM Solutions Product Marketing 1998 - 1999 ConneXt - Seattle, WA, General Manager 1996 - 1998 IBM/FileNet Corporation - Bellevue, WA, Worldwide Market Development Manager 1994 - 1995 InterLINQ Software Corporation - Kirkland, WA, Senior Product Marketing Manager 1993 - 1994 Asymetrix Corporation - Bellevue, WA, Director Market Research 1988 - 1993 Frank Russell Company - Tacoma, WA, Senior Product Manager 1982 - 1988 Accountants Microsystems Inc- Bellevue WA, Product Development/Marketing Manager 1978 - 1982 H&R Block – Seattle, WA, District Manager

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All Volunteer Board of Directors Summary Information

Name Title Years

On Board

Role

Ben Winkleman

Board President

4 Ben Winkleman has been on the Newrizons Board for four years and has lived in GHC for most of his life. He has a Bachelor of Science degree in Psychology from Washington State University and obtained a Juris Doctorate from Gonzaga University. He has been practicing law in the city of Hoquiam since graduating from law school. He owns and operates a retail apparel company, wholesale textile company, and a real estate management company within Grays Harbor County. He is an associate in a small general practice firm in Hoquiam, is on the city council for the City of Hoquiam and spends ample time working with the local business association.

Marcella Harp (ne Parks)

Board Vice-President

4 Marcy Harp is a four year Board member in her third year as Vice-President. In 2009 she served as Secretary/Treasurer. As a single mother working for just above poverty wages, she successfully cleansed her collectibles and improved her credit rating utilizing Newrizons’ one-on-one approach to financial counseling and guidance. In 2010, She achieved her ultimate goal of home ownership.

Alexander Carlston

Board Secretary/ Treasurer

3 Alexander Carlston is a third year Board member becoming Secretary/ Treasurer in 2010. He is a business owner who brings to the board budgeting and management experience from owning and operating his own restaurant and managing others over the past five years, an understanding of the impact of economic fluctuations on the services industry, as well knowledge of the working population of the low-income Target Market employed in the services industry. Alexander holds a BA degree from Western Washington University.

Ken Gran Board Member 9 Ken Gran has served on the Newrizons Board of Directors for nine years and has been a member of the credit union for 19 years. He is employed as a senior electrical engineer at Legacy Automation. Prior to working at Legacy he was a control engineer/E&I supervisor at Boise Cascade, which is also in the paper industry. He represents the needs of the emerging jobless and low-income Target Market by understanding their peer experiences. He brings to the board budgeting experience from owning and operating his own small business for nearly ten years. He holds a Masters Degree in Engineering.

Erica Barrie Board Member 2 Erica has been a Newrizons member for 22 years and a Board member for two years. Upon graduation from college, she started here career working as Food Service Director for Marriott. Upon returning to Grays Harbor she owned and operated a retail woman’s clothing store for 18 years. She currently owns Barrie Bookkeeping and Consulting which specializes in helping small business with their bookkeeping and reporting needs. In addition, she is a Senior Tax Advisor 3 at H & R Block, preparing tax returns for over 10 years. She represents the needs

24-019

All Volunteer Board of Directors Summary Information of small businesses and credit counseling for the low-income. Erica earned a BA in Business for Washington Sate University.

Kay Catron Chair, Supervisory Committee

12 Kay Catron, current chair of the supervisory committee, has been a member of the credit union for 25 years, a past board member for 6 years, and supervisory committee member for 12 years. Kay was a former Lamb Grays Harbor Company employee who managed day-to-day operations of the Human Resource Department and payroll. She brings these skills and oversight to her position on the supervisory committee. Today, Kay works for another division of the original Lamb Grays Harbor Company providing the credit union with a critical connection to the original sponsor company. Kay coordinates the activities of the supervisory committee and was on the credit committee before it went to in-house lending. She brings this familiarity in lending to the Supervisory Committee. Kay is a lifetime resident of Grays Harbor County and attended Grays Harbor College

Virginia Catron Member, Supervisory Committee

6 Virginia Catron has been a member of Newrizons’ supervisory committee for six years, a previous Board member (2009-2010), and an active member of the credit union for over 44 years. Virginia was an employee of Newrizons’ original sponsor, the Lamb Grays Harbor Company, and retired after 32 years of service. While at Lamb Grays Harbor Company, she oversaw all aspects of document and cash management for individual billings. Her organizational skills, management, and accounting experience contribute to her ability to fulfill her duties on Newrizons’ supervisory committee. Virginia’s department coordinated with internal design and development departments with external organizations around the world, and with the general public throughout her 32 years. She is a 50-year Hoquiam resident, who represents the retired population of the low-income Target Market as part of her contribution to the credit union Board of Directors.

Corey Weller Member, Supervisory Committee

1 Corey Weller has been a member of Newrizons’ supervisory committee for one year. Corey possesses a variety of business skills. As Site Supervisor for Bay City he managed all security functions including Homeland Security and Customs regulation compliance. As Assistant Manager a Walden Books and Manager at Toot-N-Totum, he was responsible for inventory control, bank deposits and training of employees. He brings business management and accounting skills to the Supervisory Committee.

24-020

Internal Revenue Service

Date: March 2, 2001

Newrizons Federal Credll Union 120 Finnan Avenue Hoquiam, WA 98550-2006

Dear Sir or Madam

Department of the Treasury

P. O. Box 2508 Cincinnati, OH 45201

Person to Contact: Jeremy L Vogelpohl 31-03888 Customer Service RepresentatIVe

Toll Free Telephone Number: 8:00 A.M. 10 g:JO P.M. EST

877-829-5500 Fax Number:

513-283-3756 Federal Identification Number:

91-0814137

This is in response to the amendment to your organization 's organizing document signed on September 7, 2000 We have updated our records to reflect the name change as indicated alxlve

Our records indicate a group ruling has been issued to the National Credit Union Administration, which IS located in Washington, DC ThiS organlzatJOn is exempt from federal income tax under section SOI(c)(1) of the Internal Revenue Code of 1986, The group exemption letter Issued to them applies to all 01 the sulxlrdinate organlzallons on whose behalf the National Credit Union Administration has applied for recog!ll\lon of exemption If your organlzahon is a subordinate of the National Credit Union Administration. you may contact them for a copy of the group exempllon letter

Please accept our apology for the delay in responding to your request and lor any inconvenience thiS may have caused you or your organization.

Please direct any questions to the person identified In the heading of thiS letter

Sincerely.

~ L vorrdl.. Jeremy L Vogelpohl Customer Service Representallve

24-021

June 26, 2012

To whom it may concern, I am writing to support the grant requests and fundraising activities of the Newrizons Federal Credit Union, Hoquiam, Washington. They have for years been an innovator and leader in programs and projects that help low income families attain financial stability and the American dream of owning a home. They have had great success in low or no cost credit counseling and education program; in subsidizing and administration of savings plans for 1st time home buyers; in an Income Tax coaching and filing program; and, in a partnership with a nonprofit in renovating foreclosed homes for low-income buyers. The Grays Harbor Community Foundation is a nonprofit with a mission of: “Improving the quality of life in the communities of Grays Harbor County Washington.” We feel that Newrizons is working diligently in that same mission, not in competition with us, but supporting a segment of the county population where we have little experience in functions that we are not capable of providing. We fully support their efforts and programs, and wish them great success in their pursuit of grant funding. Respectfully,

James E. Daly Executive Director

GRAYS HARBOR COMMUNITY FOUNDATION

P.O. Box 615 | 705 J Street | Hoquiam, Washington 98550 | Phone: 360.532.1600 | Fax: 360.532.8111 | E-mail: [email protected]

Board Of Directors OFFICERS Maryann Welch Chairperson Tom Quigg Vice Chairman George Donovan Secretary Stan Pinnick * President Richard A. Warren Vice-President Robert J. Preble * Treasurer ELECTED MEMBERS Dr. Donald Arima Tom Brennan * David Burnett Ron Caufman * Marty Kay Todd Lindley * Dennis Long John M. Mertz Jon Parker Barbara Bennett Parsons Wes Peterson Randy Rust Bill Stewart Mike Stoney Richard Vroman John Warring Dr. David Westby * -- Life Member EMERITUS MEMBERS Isabelle Lamb Frank Larner Staff James E. Daly Executive Director Cari L. Jewell Office Manager Cassie M. Lentz Program Officer

24-022

City Hall Departments (360)532-5700

· Mayor, Ext. 219 Fax (360)532-4031

· City AdministratOl; Ext. 243 Fax (360)538-0938

· City Attorney, Ext. 231 Fax (360)532-4031

· Finance Dept., Ext. 0 Fax (360)532-2306

· Municipal Court, Ext. 235 Fax (360)533-3602

· Community Services, Parks & CemetcI},. Ext. 240 Fax (360)538-0938

· Public Works, Ext. 240 - Building & Planning, Ext. 251 - Building, Ext. 223 - Planning & Code Enf., Ext. 211 Fax (360)538-0938

· Utilities - Billing, Ext. 233 or 248 - Water Shop, Ext. 236 - Sewe,' Shop, Ext. 212 Fax (360)532-2306

Libra,), (360)532-1710 420 7th St. Hoquiam, WA 98550 Fax (360)538-9608

Police Dept. (360)532-0892 215 10th St. Hoquiam, WA 98550 Fax (360)532-0899

Fire Depal'tment (360)532-5700, Ext. 262 625 8th SI. Hoquiam, WA 98550 Fax (360)532-3340

CITY OF HOQUIAM 6098th St.

Hoquiam, WA 98550 www.cityoflloquiam.com

June 27, 2012

Ms. A. Ynette Gibbs, Co-CEO NEWRIZONS Federal Credit Union 120 Firman Street Hoquiam, WA 98550

RE: NEWRIZONS Federal Credit Union Grant

Dear Ms. Gibbs:

The City of Hoquiam is familiar with some of the projects that the NEWRIZONS Federal Credit Union is involved in our community and strongly supports your effort to apply for Rescue and Refinance money through the Washington State Office of the Attomey General to help homeowners with pre-foreclosure issues.

Mortgage defaults within the State of Washington and especially in Grays Harbor County will continue to increase. Unfortunately many of the homeowner who are in trouble and desperately trying to negotiate with their banks need qualified help to obtain a positive outcome.

The foreclosure issues are nationwide, but NEWRIZONS Federal Credit Union could make a difference in Grays Harbor County.

Sincerely,

~0~ Brian Shay City Administrator

24-023

OF GRAYS HARBOR COUNTY

710 East Market Street

Aberdeen, WA 98520

(360) 533-7828 FAX (360) 533-7851 [email protected]

Building Our Communities One House at a Time Serving All of Grays Harbor County

June 20, 2012

710 E. Market St Aberdeen, W A 98520

RE: Newrizons Federal Credit Union 2012 Asset Building Initiative

NeighborWorks® of Grays Harbor County works to revitalize the communities of Grays Harbor County, Washington through affordable housing opportunities, education, financial assistance, lending coordination, and technical assistance. The mission ofNeighborWorks® is to develop partnerships in the community between residents, business, and government to create safe and affordable housing opportunities for all residents of Grays Harbor County. NeighborWorks® makes this happen by combining program and financial resources with those of lenders, contractors, landlords, other non-profits, and neighborhoods.

Grays Harbor NeighborWorks is pleased to again partner with Newrizons Federal Credit Union Asset Building Initiative for Grays Harbor County residents during 2012. Newrizons' staff participates in our classes as a lender and as a potential financial institution to assist residents in improving their credit, saving for home owners, home equity lines of credit for home restoration projects, retirement savings plans, and other financial needs.

DavidM en Director, NeighborWorks® of Grays Harbor County

~ghbo~rb- A NeighborWO<1<.tIt>., ~ ..,<v,ce marl<. of tho N.'ghborhood Rein,.o"".n' Corporal,,,,, CHARTER MEHBER OI'POATlJNrTV

24-024

Orientation

NeighborWorks® of Grays Harbor County Overview of NeighborWorks® Classes

This I-hour class is for those seeking to use services offered by NeighborWorks® including infonnation and assistance with:

• Home buying • Home repair • Construction over-site • Credit • Landlord / Tenant issues • Post purchase services

An explanation of the organization, classes and services are discussed. Customers complete a financial fonn which has an authorization for NeighborWorks® to pull a tri-merge credit report. Credit class is scheduled at that time.

Credit Class In this 2-hour class you learn:

• How to read and understand infonnation contained in a credit report • What good / bad credit is • How to repair derogatory credit • How to negotiate settlements on outstanding accounts

This class is not just for first time home buyers but for anyone who is ready to address credit and potential issues.

Home Buyer Education tHBEl The face-to-face HBE class uses the Washington State Housing Finance Commission curriculum to provide infonnation on the home buying process. We will discuss the following topics:

• How to secure fmancing • How to find a realtor • How to house shop • Home inspections • Down payment and closing cost requirements

A benefit of the class is that it opens the door for some of the available down payment and closing costs assistance programs as well as other financing options. Some first time home buying prograrns require completion of a homebuyer education class.

NeighborWorks of Grays Harbor County also facilitates home-buyer education available through the internet. It was developed in a partnership by NeighborWorks America and eHome America :£!!!!Lto reach more people in rural locations needing (HBE).

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• Uses the National Standards Curriculum • Available where ever you have a computer and an internet connection • Education modules and module testing are completed at your own pace • One hour, one-on-one counseling is done in person or by phone with a HUD certified

housing counselor required to obtain certificate • Additional counseling available whenever needed • Approved for USDAINeighborWorks GHC loan products

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June 25, 2012

Domestic Violence Center of Grays Harbor 2306 SUtMer Ave.

Hoquiam, WA 98!S!50 360.538.0733

RE: Newrizons Federal Credit Union 2012 Asset Building Initiative

The Domestic Violence Center of Grays Harbor is pleased to again partner with Newrizons Federal Credit Union Asset Building Initiative during 2012. Our clients seek a new start, often beginning to take fInancial responsibility for themselves and their children for the fIrst time. Partnering with Newrizons Federal Credit Union is a great opportunity because they provide much needed and appreciated services for free to our client's in a very caring and supportive way.

In our working relationship with the Newrizons staff we have found them to be efficient in many areas, here are some techniques they have used:

~ Provide confIdential one-on-one and group credit education and counseling ~ Prepare and e-fIle free income tax returns via the VITA program ~ Helping our clients individually understand how to and set up realistic and

manageable budgets. ~ They make certain our clients know how to read and understand information

contained in a credit report ~ Work with our clients to repair bad credit ~ Help negotiate settlements on outstanding accounts ~ Establish new savings and checking accounts in their names ~ They set up savings accounts so that the clients are better prepared for life's

fInancial challenges ~ They encourage clients in order to help them get out of the predatory payday

lending cycle.

We look forward to our continuing working relationship with the staff at Newrizons Federal Credit Union. They have worked well with our clients and they provide quality services to our community.

If you have any further questions or concerns please feel free to call me (360) 538-0733.

Sincerely,

a:~M .. ~ Jil-oria A Callaghan l

Executive Director DV Center of Grays Harbor

24-027

WAGE AND INVESTMENT DIVISION

June 26, 2012,

To Whom It May Concern: We have worked with Newrizons Federal Credit Union since 2012 in assisting families with free tax preparation. They have been a wonderful partner for these services in the local community. Sincerely, Sue Stockman, Territory Manager Stakeholder Partnerships, Education & Communication Internal Revenue Service 915 Second Ave M/S W180 Seattle, WA 98174

DEPARTMENT OF THE TREASURY INTERNAL REVENUE SERVICE

ATLANTA, GA 30308

24-028

June 27, 2012

~)

Windermere REAL ESTATE

To Whom It May Concern :

I have worked closely with Ynette Gibbs, who is the co-CEO at Newrizons Federal Credit Union, and her husband Edward . The Gibbs have purchased two lower priced houses to resell to families that are not qualified get a loan on their own. In the process of buying the houses the Gibbs had their potential buyers view the houses to see what their feelings are. The Gibbs use their own money to purchase, repair and make the houses livable. The Gibbs then help the parties buy the homes from them on a seller contract.

As CEO of Newrizons I see her vision to be able to help other underprivileged people get into properties which they would not normally be able to do . I applaud her efforts in carrying this from a personal project to one that the credit union would endeavor to do.

I am excited to hear that Newrizons is looking into helping people that really need assistance in purchasing a lower priced home to see their dream realized. The two couples that the Gibbs have already helped are just so excited to be able to see the possibilities of owning their own home. The husband of the last couple kept saying "Wow!" over and over as he realized this could be his family's home! I am, as a Windermere agent, excited and looking forward to finding more 'gems in the rough' for this type of program.

If you have any questions please feel free to contact me at 360-580-5444.

Windermere Real Estate/Grays Harbor, Inc.

101 South Broadway I Aberdeen, WA 98520 360-533-6464 I Fax 360-533-0375 I E-mail [email protected] 24-029

Hotmail Print Message

RE: Thank you so much for your Letter of Support

From: Ynette Gibbs ([email protected])

Sent: Fri 6/29/12 5:44 PM

To: Lynn Kessler ([email protected])

THANK YOU!!!!!!

It's wonderful

Ynette Gibbs cell phone 253.973.4122 email [email protected]

----------_.- ..... --_.---------

To: [email protected] Subject: Re: Thank you so much fo~ your Letter of Support From: [email protected] Date: Fri, 29 Jun 2012 13:29:41 -0400

Hope this will assist in your efforts for the grant.

Unfortunately, I don't have any way to add my signature.

Lynn

----Original Message----From: Ynette Gibbs <[email protected]>

._-_._._----

To: kessler24 <[email protected]>; terry <[email protected]>; ynette <[email protected]> Sent: Thu, Jun 28,20122:52 pm Subject: Thank you so much for your Letter of Support

> Hi Lynn, > Thank you so much for your help and guidance. We really appreciate it. > > I've attached a word document for you to use as a base. I've also > attached the resumes of the comm ittee members and the grant request > template to give you some additional background. > > Please don't hesitate to contact either me on my cell 253-973-4122 or > Terry Fultz at the credit union 360-533-4760. > > Thank you again! And we hope your son has a wonderful 50th birthday. > >

> Ynette Gibbs > Co-CEO, Newrizons Federal Credit Union > 120 Firman Street > Hoquiam, WA 98550 > 360-533-4760 > www.newrizonsfcu.com

Page 1 0[2

http://byI63w.bayI63 .mai1.live.comimaillPrintMessages.aspx?cpids=2724d4 74-78a3-4 791 .. . 6/29/2012 24-030

29 June 2012 To Members of the Washington Consumer Foreclosure Remedies Fund Grant Selection Committee: The following letter is in support of the grant application from Newrizons Federal Credit Union to the Washington Consumer Foreclosure Remedies Fund. Located in Hoquiam, Washington, Newrizons has been an innovator and leader in programs and projects that help families of low to moderate means attain financial stability and the stability that comes with home ownership. It has achieved success in providing free credit counseling and education programs in our schools and community. It has also been active in an Income Tax coaching and filing program and has been engaged in partnerships with other nonprofits to help qualified, motivated individuals purchase modest homes that are affordable and within their current income obligations. Grays Harbor County has experienced double digit unemployment most of the last two decades with the dubious distinction of currently having the highest unemployment in Washington State. Hardworking families who live in Grays Harbor would benefit from this grant along with improving Grays Harbor Community’s housing remediation and anti-blight issues due to an increase in foreclosures. Please consider my full support of Newrizons Federal Credit Union’s grant application to the Washington Consumer Foreclosure Remedies Fund. Sincerely, Lynn Kessler Former State Representative and Majority Leader Washington State Legislature

24-031

May 2012 Loan Portfolio Analysis

Description # Balance # Balance # Balance # Balance # Balance # Balance # Balance % Balance

Line of Credit 30 $86,535.53 8 $29,744.09 4 $10,481.21 7 $8,957.94 5 $31,126.25 6 $6,226.04 0 $0.00 0.00% $0.00 $0.00 12.86% YES

OD Protection 8 $1,078.30 2 $608.28 0 $0.00 1 $145.64 0 $0.00 0 $0.00 5 $324.38 0.00% $0.00 $0.00 0.16% YES

Personal 20 $101,721.76 2 $24,163.89 1 $629.02 5 $7,288.41 3 $4,201.70 9 $65,438.74 0 $0.00 0.11% $6,590.18 $0.00 15.11% YES

Shared Secured 3 $39,372.48 0 $0.00 0 $0.00 0 $0.00 0 $0.00 0 $0.00 3 $39,372.48 0.00% $0.00 $0.00 5.85% YES

1st Home Equity L/C 23 $705,034.84 0 $0.00 1 $9,621.35 0 $0.00 0 $0.00 0 $0.00 22 $695,413.49 0.00% $0.00 $0.00 104.76% YES

2nd Home Equity L/C 4 $103,839.13 0 $0.00 0 $0.00 0 $0.00 0 $0.00 0 $0.00 4 $103,839.13 0.00% $0.00 $0.00 15.43% YES

Business Home Equity L/C 3 $141,528.25 0 $0.00 0 $0.00 0 $0.00 0 $0.00 0 $0.00 3 $141,528.25 0.00% $0.00 $0.00 21.03% YES

VISA 300 $788,754.15 189 $461,536.55 42 $155,693.49 30 $85,967.40 21 $64,747.79 18 $20,808.92 0 $0.00 0.13% $7,535.27 $22,739.46 117.20% YES

Direct New Vehicles 18 $240,648.14 8 $122,507.56 2 $11,085.57 7 $102,416.06 1 $4,638.95 0 $0.00 0 $0.00 0.00% $0.00 $0.00 35.76% YES

Direct Used Vehicles 155 $1,199,575.30 47 $415,609.19 29 $287,751.39 29 $220,200.78 29 $174,688.77 21 $101,325.17 0 $0.00 0.03% $1,983.83 $5,684.89 178.24% YES

Indirect New Vehicle 12 $193,908.65 6 $87,502.48 1 $17,888.61 1 $27,211.06 2 $32,232.16 2 $29,074.34 0 $0.00 0.48% $29,073.27 $0.00 28.81% YES

Indirect Used Vehicle 122 $1,422,530.16 23 $247,134.91 18 $235,400.70 45 $536,888.65 24 $309,560.32 12 $93,545.58 0 $0.00 1.56% $93,698.16 $3,085.63 211.37% YES

Indirect New Vehicle (OLD) 0 $0.00 0 $0.00 0 $0.00 0 $0.00 0 $0.00 0 $0.00 0 $0.00 0.00% $0.00 $0.00 0.00% YES

Indirect Used Vehicle (OLD) 1 $13,998.97 0 $0.00 1 $13,998.97 0 $0.00 0 $0.00 0 $0.00 0 $0.00 0.00% $0.00 $0.00 2.08% YES

1st Fixed RE 14 $567,816.11 0 $0.00 0 $0.00 0 $0.00 0 $0.00 0 $0.00 14 $567,816.11 0.00% $0.00 $0.00 84.37% YES

2nd Fixed RE 0 $0.00 0 $0.00 0 $0.00 0 $0.00 0 $0.00 0 $0.00 0 $0.00 0.00% $0.00 $0.00 0.00% YES

1st Adjustable RE 4 $188,144.04 0 $0.00 0 $0.00 0 $0.00 0 $0.00 0 $0.00 4 $188,144.04 0.00% $0.00 $0.00 27.96% YES

2nd Adjustable RE 0 $0.00 0 $0.00 0 $0.00 0 $0.00 0 $0.00 0 $0.00 0 $0.00 0.00% $0.00 $0.00 0.00% YES

Travel Trailer 5 $43,047.18 2 $14,844.79 1 $13,495.23 0 $0.00 2 $14,707.16 0 $0.00 0 $0.00 0.13% $7,923.92 $0.00 6.40% YES

Motorhome 6 $70,796.21 3 $41,657.79 1 $7,637.68 1 $13,924.22 0 $0.00 1 $7,576.52 0 $0.00 0.00% $0.00 $0.00 10.52% YES

Farm Equipment 1 $3,167.45 0 $0.00 1 $3,167.45 0 $0.00 0 $0.00 0 $0.00 0 $0.00 0.00% $0.00 $0.00 0.47% YES

ATV 1 $2,139.48 0 $0.00 0 $0.00 0 $0.00 0 $0.00 1 $2,139.48 0 $0.00 0.00% $0.00 $0.00 0.32% YES

Water Craft 3 $9,278.56 1 $1,557.18 1 $1,722.78 0 $0.00 0 $0.00 1 $5,998.60 0 $0.00 0.10% $5,998.60 $0.00 1.38% YES

Mobile Home 2 $18,976.17 1 $12,929.72 0 $0.00 0 $0.00 1 $6,046.45 0 $0.00 0 $0.00 0.00% $0.00 $0.00 2.82% YES

Motorcycle 3 $21,841.59 3 $21,841.59 0 $0.00 0 $0.00 0 $0.00 0 $0.00 0 $0.00 0.00% $0.00 $0.00 3.25% YES

Other Non-Titled Items 6 $52,020.39 2 $19,050.27 2 $30,644.82 1 $1,896.46 1 $428.84 0 $0.00 0 $0.00 0.00% $0.00 $0.00 7.73% YES

Loans in process of liquidation0 $0.00 0 $0.00 0 $0.00 0 $0.00 0 $0.00 $0.00 0 $0.00 0.00% $0.00 0.00% NA

TOTAL LOANS 744 $6,015,752.84 297 $1,500,688.29 105 $799,218.27 127 $1,004,896.62 89 $642,378.39 71 $332,133.39 55 $1,736,437.88 $152,803.23 $31,509.98

TOTAL LOANS 100.0% 39.9% 24.9% 14.1% 13.3% 17.1% 16.7% 12.0% 10.7% 9.5% 5.5% 7.4% 28.9% 3,4,5 % income 32.90% YESBy Net Worth 893.9% 223.0% 118.8% 149.3% 95.4% 49.4% 258.0% 3,4,5 % of loans 38.58% YES

Deliquent Loans 14 $152,803.23 0 $0.00 3 $33,394.55 5 $61,752.49 2 $19,672.31 4 $37,983.88 0 $0.001.9% 2.5% 0.0% 0.0% 0.4% 0.6% 0.7% 1.0% 0.3% 0.3% 0.5% 0.6% 0.0% 0.0%

Charge-off 6 $31,509.98 3 $21,734.86 1 $1,949.56 0 $0.00 0 $0.00 2 $7,825.56 0 $0.000.8% 0.5% 0.4% 0.4% 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% 0.3% 0.1% 0.0% 0.0%

Special RE (former TDR) 1 $112,582.83 1 $112,582.83

0.13% 1.87%

Purpose Not RatedTotal Tier 1 Tier 2 Tier 3

% b

y N

et

Wo

rthDeliquentTier 4 Tier 5

w/i

n

Po

licy?

Ch

arge

-off

24-032

Newrizons Federal Credit Union YTD RATE, VOLUME & INCOME VARIANCE (Page 1 of 3)

2012 Budget

CU/BUDGET-ware (Ver. 6.14) Beginning Date of Budget: 1-12Copyright(c)1993-2009 Brick & Assoc, Inc. Date of Run: 5- 7-12

----------------------------------------------------------------------------------------------------January - April 2012 YTD Actual, % Net IncomeNumber of days in YTD Period: 121 Budget & Variance Variance Effects

----------------- ---------- --------I Interest Income

A Loan Income Analysis1 Actual Average Loans(000s)....................... $5,9572 Budgeted Average Loans(000s)..................... $5,9983 Loan Volume Variance(000s)..................... $-41 -0.68%4 Actual Loan Yield...................... 8.00%5 Budgeted Loan Yield.................... 8.11%

--------6 Yield Variance....................... -0.10%7 Actual Loan Income...............................

($5,957)x( 0.080033)x(121/365) = $158,0488 Budgeted Loan Income.............................

($5,998)x( 0.081053)x(121/365) = $161,164a Loan Income Variance........................ $-3,116 -1.93% $-3,116b Loan Income Var Due to Volume Difference....

($-41)x( 0.081053)x(121/365) = $-1,101 -0.68%c Loan Income Var due to Yield Difference.....

($5,957)x(-0.001020)x(121/365) = $-2,014 -1.25%B Investment Income Analysis

1 Actual Avg Investment Portfolio(000s)............ $1,4822 Budgeted Avg Investment Portfolio(000s).......... $1,0163 Investment Portfolio Variance(000s)............ $466 45.87%4 Actual Investment Yield................ 0.50%5 Budgeted Investment Yield.............. 0.48%

--------6 Investment Yield Variance............ 0.02%7 Actual Investment Income.........................

($1,482)x( 0.004987)x(121/365) = $2,4508 Budgeted Investment Income.......................

($1,016)x( 0.004819)x(121/365) = $1,623a Investment Income Variance.................. $827 50.96% $827b Invest Inc Var due to Volume Difference.....

($466)x( 0.004819)x(121/365) = $744 45.84%c Invest Inc Var due to Yield Difference......

($1,482)x( 0.000168)x(121/365) = $82 5.05%C Total Interest Income Analysis

1 Actual Interest Income........................... $160,4982 Budgeted Interest Income......................... $162,787

------------3 Interest Income Variance....................... $-2,289 -1.41%

24-033


2012 Budget



----------------- ---------- --------II Cost of Funds (COF)

A Share Drafts (SDs) & Shares (Shs)1 Actual Avg Share Drafts & Shares(000s)........... $3,5842 Budgeted Avg Share Drafts & Shares(000s)......... $3,5553 Share Drafts & Shares Variance(000s)........... $29 0.82%4 Actual SD & Shs Dividend Rate.......... 0.20%5 Budgeted SD & Shs Dividend Rate........ 0.15%

--------6 SD & Shs Dividend Rate Variance...... 0.05%7 Actual SDs & Shs COF.............................

($3,584)x( 0.001988)x(121/365) = $2,3628 Budgeted SDs & Shs COF...........................

($3,555)x( 0.001537)x(121/365) = $1,811a SDs & Shs COF Variance...................... $551 30.43% $551b SDs & Shs COF Var Due to Vol Difference.....

($29)x( 0.001537)x(121/365) = $14 0.77%c SDs & Shs COF Var Due to Rate Difference....

($3,584)x( 0.000451)x(121/365) = $536 29.60%B Money Market Account

1 Actual Avg MMA(000s)............................. $1,2502 Budgeted Avg MMA(000s)........................... $8553 MMA Variance(000s)............................. $395 46.20%4 Actual Dividend Rate................... 0.60%5 Budgeted Dividend Rate................. 0.40%

--------6 Dividend Rate Variance............... 0.20%7 Actual MMA COF...................................

($1,250)x( 0.005968)x(121/365) = $2,4738 Budgeted MMA COF.................................

($855)x( 0.004001)x(121/365) = $1,134a MMA COF Variance............................ $1,339 118.08% $1,339b MMA COF Variance Due to Volume Difference...

($395)x( 0.004001)x(121/365) = $523 46.12%c MMA COF Due to Rate Difference..............

($1,250)x( 0.001967)x(121/365) = $815 71.87%C Certificates

1 Actual Avg Certificates(000s).................... $1,7972 Budgeted Avg Certificates(000s).................. $1,8223 Certificates Variance(000s).................... $-25 -1.37%4 Actual Dividend Rate................... 1.15%5 Budgeted Dividend Rate................. 1.09%

--------6 Dividend Rate Variance............... 0.06%7 Actual Certs COF.................................

($1,797)x( 0.011469)x(121/365) = $6,8328 Budgeted Certs COF...............................

($1,822)x( 0.010909)x(121/365) = $6,589a Certs COF Variance.......................... $243 3.69% $243b Certs COF Variance Due to Volume Difference.

($-25)x( 0.010909)x(121/365) = $-90 -1.37%c Certs COF Due to Rate Difference............

($1,797)x( 0.000560)x(121/365) = $333 5.05%

224-034


2012 Budget



----------------- ---------- --------D Borrowed Funds

1 Actual Avg Borrowed Funds(000s).................. $3252 Budgeted Avg Borrowed Funds(000s)................ $2623 Borrowed Funds Variance(000s).................. $63 24.05%4 Actual Interest Rate................... 1.65%5 Budgeted Interest Rate................. 1.68%

--------6 Interest Rate Variance............... -0.04%7 Actual Bor COF...................................

($325)x( 0.016475)x(121/365) = $1,7758 Budgeted Bor COF.................................

($262)x( 0.016833)x(121/365) = $1,462a Borrowed COF Variance....................... $313 21.41% $313b Borrowed COF Var Due to Volume Difference...

($63)x( 0.016833)x(121/365) = $351 24.01%c Borrowed COF Var due to Rate Difference.....

($325)x(-0.000358)x(121/365) = $-38 -2.60%E Total Cost of Funds Analysis

1 Actual COF....................................... $13,4422 Budgeted COF..................................... $10,996

------------3 COF Variance................................... $2,446 22.24%

III Net Interest Income(NII) Analysis1 Actual Net Interest Income....................... $147,0562 Budgeted Net Interest Income..................... $151,791

------------3 Net Interest Income Variance................... $-4,735 -3.12% $-4,735

IV Fee & Other Income1 Actual Fee & Other Income........................ $29,3112 Budgeted Fee & Other Income...................... $33,301

------------3 Fee & Other Income Variance.................... $-3,990 -11.98% $-3,990

V Operating Expenses1 Actual Operating Expenses........................ $148,3012 Budgeted Operating Expenses...................... $173,823

------------3 Operating Expense Variance..................... $-25,522 -14.68% $-25,522

VI Loan Loss Provision1 Actual Loan Loss Provision....................... $12,1492 Budgeted Loan Loss Provision..................... $10,000

------------3 Loan Loss Provision Variance................... $2,149 21.49% $2,149

VII Net Income1 Actual Net Income................................ $15,9172 Budgeted Net Income.............................. $1,269

------------3 Net Income Variance............................ $14,648 1154.29% $14,648

Notes:1. Balance Sheet figures are in 000s; Income Statement figures are in actual dollars.2. A positive (+) variance means that the Actual value exceeds the Budgeted value;

a negative (-) variance means that the Actual value is less than the Budgeted value.3. In the Variance and % Variance computations, the Budgeted figures are the base

against which the Variance and % Variance are calculated.4. The yields, rates and their variances are annualized based on the YTD figures.3

24-035

Newrizons Federal Credit Union MONTHLY RATE, VOLUME & INCOME VARIANCE (Page 1 of 3)

2012 Budget


----------------------------------------------------------------------------------------------------April 2012 Monthly Actual, % Net IncomeNumber of days in Month: 30 Budget & Variance Variance Effects

----------------- ---------- --------

I Interest IncomeA Loan Income Analysis

1 Actual Average Loans(000s)....................... $6,0022 Budgeted Average Loans(000s)..................... $6,1103 Loan Volume Variance(000s)..................... $-108 -1.77%4 Actual Loan Yield...................... 7.90%5 Budgeted Loan Yield.................... 8.13%

--------6 Yield Variance....................... -0.23%7 Actual Loan Income...............................

($6,002)x( 0.078990)x( 30/365) = $38,9678 Budgeted Loan Income.............................

($6,110)x( 0.081326)x( 30/365) = $40,841a Loan Income Variance........................ $-1,874 -4.59% $-1,874b Loan Income Var Due to Volume Difference....

($-108)x( 0.081326)x( 30/365) = $-721 -1.77%c Loan Income Var due to Yield Difference.....

($6,002)x(-0.002335)x( 30/365) = $-1,152 -2.82%B Investment Income Analysis

1 Actual Avg Investment Portfolio(000s)............ $1,5062 Budgeted Avg Investment Portfolio(000s).......... $9143 Investment Portfolio Variance(000s)............ $592 64.77%4 Actual Investment Yield................ 0.52%5 Budgeted Investment Yield.............. 0.49%

--------6 Investment Yield Variance............ 0.03%7 Actual Investment Income.........................

($1,506)x( 0.005195)x( 30/365) = $6438 Budgeted Investment Income.......................

($914)x( 0.004885)x( 30/365) = $367a Investment Income Variance.................. $276 75.20% $276b Invest Inc Var due to Volume Difference.....

($592)x( 0.004885)x( 30/365) = $237 64.58%c Invest Inc Var due to Yield Difference......

($1,506)x( 0.000309)x( 30/365) = $38 10.35%C Total Interest Income Analysis

1 Actual Interest Income........................... $39,6102 Budgeted Interest Income......................... $41,208

------------3 Interest Income Variance....................... $-1,598 -3.88%

424-036


2012 Budget



----------------- ---------- --------

II Cost of Funds (COF)A Share Drafts (SDs) & Shares (Shs)

1 Actual Avg Share Drafts & Shares(000s)........... $3,6192 Budgeted Avg Share Drafts & Shares(000s)......... $3,5723 Share Drafts & Shares Variance(000s)........... $47 1.32%4 Actual SD & Shs Dividend Rate.......... 0.20%5 Budgeted SD & Shs Dividend Rate........ 0.15%

--------6 SD & Shs Dividend Rate Variance...... 0.04%7 Actual SDs & Shs COF.............................

($3,619)x( 0.001990)x( 30/365) = $5928 Budgeted SDs & Shs COF...........................

($3,572)x( 0.001546)x( 30/365) = $454a SDs & Shs COF Variance...................... $138 30.40% $138b SDs & Shs COF Var Due to Vol Difference.....

($47)x( 0.001546)x( 30/365) = $5 1.10%c SDs & Shs COF Var Due to Rate Difference....

($3,619)x( 0.000444)x( 30/365) = $132 29.07%B Money Market Account

1 Actual Avg MMA(000s)............................. $1,2432 Budgeted Avg MMA(000s)........................... $8003 MMA Variance(000s)............................. $443 55.38%4 Actual Dividend Rate................... 0.61%5 Budgeted Dividend Rate................. 0.40%

--------6 Dividend Rate Variance............... 0.21%7 Actual MMA COF...................................

($1,243)x( 0.006069)x( 30/365) = $6208 Budgeted MMA COF.................................

($800)x( 0.003985)x( 30/365) = $262a MMA COF Variance............................ $358 136.64% $358b MMA COF Variance Due to Volume Difference...

($443)x( 0.003985)x( 30/365) = $145 55.34%c MMA COF Due to Rate Difference..............

($1,243)x( 0.002084)x( 30/365) = $212 80.92%C Certificates

1 Actual Avg Certificates(000s).................... $1,8082 Budgeted Avg Certificates(000s).................. $1,8253 Certificates Variance(000s).................... $-17 -0.93%4 Actual Dividend Rate................... 1.11%5 Budgeted Dividend Rate................. 1.09%

--------6 Dividend Rate Variance............... 0.03%7 Actual Certs COF.................................

($1,808)x( 0.011144)x( 30/365) = $1,6568 Budgeted Certs COF...............................

($1,825)x( 0.010853)x( 30/365) = $1,628a Certs COF Variance.......................... $28 1.72% $28b Certs COF Variance Due to Volume Difference.

($-17)x( 0.010853)x( 30/365) = $-15 -0.92%c Certs COF Due to Rate Difference............

($1,808)x( 0.000290)x( 30/365) = $43 2.64%

524-037


2012 Budget



----------------- ---------- --------

D Borrowed Funds1 Actual Avg Borrowed Funds(000s).................. $3502 Budgeted Avg Borrowed Funds(000s)................ $2503 Borrowed Funds Variance(000s).................. $100 40.00%4 Actual Interest Rate................... 1.70%5 Budgeted Interest Rate................. 1.69%

--------6 Interest Rate Variance............... 0.00%7 Actual Bor COF...................................

($350)x( 0.016964)x( 30/365) = $4888 Budgeted Bor COF.................................

($250)x( 0.016936)x( 30/365) = $348a Borrowed COF Variance....................... $140 40.23% $140b Borrowed COF Var Due to Volume Difference...

($100)x( 0.016936)x( 30/365) = $139 39.94%c Borrowed COF Var due to Rate Difference.....

($350)x( 0.000028)x( 30/365) = $0 0.00%E Total Cost of Funds Analysis

1 Actual COF....................................... $3,3562 Budgeted COF..................................... $2,692

------------3 COF Variance................................... $664 24.67%

III Net Interest Income(NII) Analysis1 Actual Net Interest Income....................... $36,2542 Budgeted Net Interest Income..................... $38,516

------------3 Net Interest Income Variance................... $-2,262 -5.87% $-2,262

IV Fee & Other Income1 Actual Fee & Other Income........................ $7,2912 Budgeted Fee & Other Income...................... $6,969

------------3 Fee & Other Income Variance.................... $322 4.62% $322

V Operating Expenses1 Actual Operating Expenses........................ $34,9682 Budgeted Operating Expenses...................... $51,167

------------3 Operating Expense Variance..................... $-16,199 -31.66% $-16,199

VI Net Income1 Actual Net Income................................ $8,5772 Budgeted Net Income.............................. $-5,682

------------3 Net Income Variance............................ $14,259 N/A $14,259

Notes:1. Balance Sheet figures are in 000s; Income Statement figures are in actual dollars.2. A positive (+) variance means that the Actual value exceeds the Budgeted value;

a negative (-) variance means that the Actual value is less than the Budgeted value.3. In the Variance and % Variance computations, the Budgeted figures are the base

against which the Variance and % Variance are calculated.4. The yields, rates and their variances are annualized based on the YTD figures.

624-038

Newrizons Federal Credit Union BUDGET VS ACTUAL INCOME REPORT: EXPANDED

2012 Budget


----------------------------------------------------------------------------------------------------------------------For Month of: Apr-12

-----------------------------------------------------------------------------------Budget % Gross Actual % Gross $ Variance % Variance

----------- -------- ----------- -------- ----------- ----------INTEREST INCOME

2 Interest on Loans 40,841 84.77% 38,967 83.08% -1874 -4.59%3 Interest on Investments 367 0.76% 643 1.37% 276 75.20%

----------- -------- ----------- -------- ----------- ----------5 TOTAL INTEREST INCOME 41,208 85.53% 39,610 84.45% -1598 -3.88%

DIVIDEND & INTEREST EXPENSE6 Share Drafts 70 0.15% 55 0.12% -15 -21.43%7 Shares 384 0.80% 537 1.14% 153 39.84%8 Money Market Accounts 262 0.54% 620 1.32% 358 136.64%9 Certificates 1,628 3.38% 1,656 3.53% 28 1.72%10 Borrowed Funds 348 0.72% 488 1.04% 140 40.23%

----------- -------- ----------- -------- ----------- ----------11 TOT DIV & INT EXP 2,692 5.59% 3,356 7.16% 664 24.67%

----------- -------- ----------- -------- ----------- ----------12 NET INT INCOME (NII) 38,516 79.95% 36,254 77.30% -2262 -5.87%

FEE & OTHER INCOME13 Dormant Accounts 50 0.10% 31 0.07% -19 -38.00%14 Member Wires 50 0.10% 25 0.05% -25 -50.00%15 Fax/Copy/Image 4 0.01% 4 0.01% 0 0.00%16 Negotiable Items 135 0.28% 124 0.26% -11 -8.15%17 RE Loan Fees 50 0.10% 0 0.00% -50 -100.00%18 Late Fees on Loans 600 1.25% 494 1.05% -106 -17.67%19 Miscellaneous 30 0.06% 95 0.20% 65 216.67%20 Share Draft Fees 1,900 3.94% 1,484 3.16% -416 -21.89%

OTHER FEE & OPERATING INCOME28 Other Operating Income 200 0.42% 0 0.00% -200 -100.00%29 VISA Member Account Fees 200 0.42% -270 -0.58% -470 -235.00%30 Insurance Programs 200 0.42% 342 0.73% 142 71.00%32 VISA Interchange Income 2,200 4.57% 3,090 6.59% 890 40.45%33 DEBIT Interchange Income 1,350 2.80% 1,872 3.99% 522 38.67%57 TOT OTH FEE & OPER INC 4,150 8.61% 5,034 10.73% 884 21.30%

----------- -------- ----------- -------- ----------- ----------58 TOTAL FEE & OTHER INCOME 6,969 14.47% 7,291 15.55% 322 4.62%

OPERATING EXPENSESWAGES & SALARIES

59 Employee Compensation 16,500 34.25% 12,055 25.70% -4445 -26.94%----------- -------- ----------- -------- ----------- ----------

74 TOT WAGES & SALARIES 16,500 34.25% 12,055 25.70% -4445 -26.94%EMPLOYEE BENEFITS

75 401K Contribution CU Mat 800 1.66% 298 0.64% -502 -62.75%76 Soc Sec Taxes CU Match 1,250 2.59% 831 1.77% -419 -33.52%77 Unemployment Tax 125 0.26% 38 0.08% -87 -69.60%78 CUNA Life/Salary Continu 0 0.00% 4 0.01% 4 N/A 79 Employer Industrial Insu 375 0.78% 384 0.82% 9 2.40%80 Benefits All Employees 2,050 4.26% 1,445 3.08% -605 -29.51%81 Admin of Emp Benefits 350 0.73% 242 0.52% -108 -30.86%

----------- -------- ----------- -------- ----------- ----------95 TOTAL EMP BENEFITS 4,950 10.27% 3,242 6.91% -1708 -34.51%

TRAVEL & CONFERENCES 96 Employee's Travel/Ed Exp 250 0.52% 174 0.37% -76 -30.40%97 Board Dinners 75 0.16% 41 0.09% -34 -45.33%98 Chapter Dinners 0 0.00% 100 0.21% 100 N/A

----------- -------- ----------- -------- ----------- ----------104 TOTAL TRAVEL & CONF 325 0.67% 315 0.67% -10 -3.08%

724-039


2012 Budget


----------------------------------------------------------------------------------------------------------------------For Month of: Apr-12


----------- -------- ----------- -------- ----------- ----------LEAGUE/ASSOCIATION DUES

105 Association Dues 350 0.73% 400 0.85% 50 14.29%----------- -------- ----------- -------- ----------- ----------

111 TOTAL DUES 350 0.73% 400 0.85% 50 14.29%OFFICE OCCUPANCY

112 Building Maintenance/Rep 300 0.62% 70 0.15% -230 -76.67%113 Utilities 400 0.83% 429 0.91% 29 7.25%114 Depreciation of Building 382 0.79% 382 0.81% 0 0.00%115 Real Estate Taxes 495 1.03% 412 0.88% -83 -16.77%116 Disaster Supplies 0 0.00% 10 0.02% 10 N/A 117 Other Office Occupancy 10 0.02% 0 0.00% -10 -100.00%

----------- -------- ----------- -------- ----------- ----------142 TOTAL OFFICE OCCUP 1,587 3.29% 1,303 2.78% -284 -17.90%

OFFICE OPERATIONS 143 Communications 1,350 2.80% 1,179 2.51% -171 -12.67%144 Misc.Equip Maint/Repair 25 0.05% 141 0.30% 116 464.00%145 Office Supplies 300 0.62% 802 1.71% 502 167.33%148 Other Stationary/Suppli 25 0.05% 0 0.00% -25 -100.00%149 Insurance 950 1.97% 1,249 2.66% 299 31.47%150 Dep of Furn & Fixtures 300 0.62% 83 0.18% -217 -72.33%151 Member Trans Processing 5,100 10.59% 5,065 10.80% -35 -0.69%154 Other Operating Exp 100 0.21% 19 0.04% -81 -81.00%

----------- -------- ----------- -------- ----------- ----------173 TOT OFFICE OPER EXP 8,150 16.92% 8,538 18.20% 388 4.76%

EDUCATION 174 Advertising/Publicity 400 0.83% 170 0.36% -230 -57.50%175 Phone Book Advertising 170 0.35% 0 0.00% -170 -100.00%

----------- -------- ----------- -------- ----------- ----------184 TOTAL EDUCATION 570 1.18% 170 0.36% -400 -70.18%

LOAN SERVICING 185 Collection Expense 150 0.31% 0 0.00% -150 -100.00%186 Credit Reports 300 0.62% 1,095 2.33% 795 265.00%187 CUDL Dealer/Program Fees 850 1.76% 1,018 2.17% 168 19.76%188 VISA Credit Program Fees 1,500 3.11% 1,569 3.35% 69 4.60%190 Loan Servicing Exp Other 310 0.64% 179 0.38% -131 -42.26%

----------- -------- ----------- -------- ----------- ----------200 TOT LOAN SERV EXP 3,110 6.46% 3,861 8.23% 751 24.15%

PROFESSIONAL SERVICES 202 Supervisory Audit 500 1.04% 0 0.00% -500 -100.00%203 CU*Northwest & Master's 4,500 9.34% 4,151 8.85% -349 -7.76%204 IRA Accts - CSG 190 0.39% 0 0.00% -190 -100.00%205 Other Prof/Outside Servi 100 0.21% 27 0.06% -73 -73.00%206 Brick & Assoc 435 0.90% 450 0.96% 15 3.45%

----------- -------- ----------- -------- ----------- ----------216 TOTAL PROF SERVICES 5,725 11.88% 4,628 9.87% -1097 -19.16%

INSURANCE 218 Share Insurance/NCUSIF 9,000 18.68% 0 0.00% -9000 -100.00%

----------- -------- ----------- -------- ----------- ----------227 TOTAL INSURANCE 9,000 18.68% 0 0.00% -9000 -100.00%

824-040


2012 Budget


----------------------------------------------------------------------------------------------------------------------For Month of: Apr-12


----------- -------- ----------- -------- ----------- ----------OTHER OPERATING EXPENSE

228 Federal Operating Fee 150 0.31% 191 0.41% 41 27.33%229 Cash Over/Short 0 0.00% 23 0.05% 23 N/A 231 Annual Meeting 750 1.56% 242 0.52% -508 -67.73%

----------- -------- ----------- -------- ----------- ----------253 TOT OTHER OPER EXP 900 1.87% 456 0.97% -444 -49.33%

----------- -------- ----------- -------- ----------- ----------254 TOT OPER EXP 51,167 106.21% 34,968 74.56% -16199 -31.66%

----------- -------- ----------- -------- ----------- ----------267 NET INCOME -5,682 -11.79% 8,577 18.29% 14259 N/A

=========== ======== =========== ======== =========== ==========

924-041

Newrizons Federal Credit Union YTD BUDGET VS ACTUAL INCOME REPORT: EXPANDED

2012 Budget


----------------------------------------------------------------------------------------------------------------------For YTD Through: Apr-12

-----------------------------------------------------------------------------------YTD Budget % Gross YTD Actual % Gross $ Variance % Variance----------- -------- ----------- -------- ----------- ----------

INTEREST INCOME2 Interest on Loans 161,164 82.19% 158,048 83.27% -3116 -1.93%3 Interest on Investments 1,623 0.83% 2,450 1.29% 827 50.96%

----------- -------- ----------- -------- ----------- ----------5 TOTAL INTEREST INCOME 162,787 83.02% 160,498 84.56% -2289 -1.41%

DIVIDEND & INTEREST EXPENSE6 Share Drafts 281 0.14% 226 0.12% -55 -19.57%7 Shares 1,530 0.78% 2,136 1.13% 606 39.61%8 Money Market Accounts 1,134 0.58% 2,473 1.30% 1339 118.08%9 Certificates 6,589 3.36% 6,832 3.60% 243 3.69%10 Borrowed Funds 1,462 0.75% 1,775 0.94% 313 21.41%

----------- -------- ----------- -------- ----------- ----------11 TOT DIV & INT EXP 10,996 5.61% 13,442 7.08% 2446 22.24%

----------- -------- ----------- -------- ----------- ----------12 NET INT INCOME (NII) 151,791 77.41% 147,056 77.48% -4735 -3.12%

FEE & OTHER INCOME13 Dormant Accounts 175 0.09% 118 0.06% -57 -32.57%14 Member Wires 200 0.10% 125 0.07% -75 -37.50%15 Fax/Copy/Image 16 0.01% 9 0.00% -7 -43.75%16 Negotiable Items 540 0.28% 452 0.24% -88 -16.30%17 RE Loan Fees 150 0.08% 100 0.05% -50 -33.33%18 Late Fees on Loans 2,400 1.22% 2,098 1.11% -302 -12.58%19 Miscellaneous 120 0.06% 448 0.24% 328 273.33%20 Share Draft Fees 7,600 3.88% 7,401 3.90% -199 -2.62%22 Tax Refund Anticipation 0 0.00% 150 0.08% 150 N/A

OTHER FEE & OPERATING INCOME28 Other Operating Income 800 0.41% 2 0.00% -798 -99.75%29 VISA Member Account Fees 800 0.41% 806 0.42% 6 0.75%30 Insurance Programs 800 0.41% 801 0.42% 1 0.13%31 GAP Insurance (CUNA) 500 0.25% 174 0.09% -326 -65.20%32 VISA Interchange Income 8,800 4.49% 9,544 5.03% 744 8.45%33 DEBIT Interchange Income 5,400 2.75% 7,083 3.73% 1683 31.17%37 CDFI Grant 5,000 2.55% 0 0.00% -5000 -100.00%57 TOT OTH FEE & OPER INC 22,100 11.27% 18,410 9.70% -3690 -16.70%

----------- -------- ----------- -------- ----------- ----------58 TOTAL FEE & OTHER INCOME 33,301 16.98% 29,311 15.44% -3990 -11.98%

OPERATING EXPENSESWAGES & SALARIES

59 Employee Compensation 63,000 32.13% 55,631 29.31% -7369 -11.70%----------- -------- ----------- -------- ----------- ----------

74 TOT WAGES & SALARIES 63,000 32.13% 55,631 29.31% -7369 -11.70%EMPLOYEE BENEFITS

75 401K Contribution CU Mat 3,200 1.63% 1,690 0.89% -1510 -47.19%76 Soc Sec Taxes CU Match 5,000 2.55% 3,862 2.03% -1138 -22.76%77 Unemployment Tax 500 0.25% 320 0.17% -180 -36.00%78 CUNA Life/Salary Continu 0 0.00% 361 0.19% 361 N/A 79 Employer Industrial Insu 750 0.38% 384 0.20% -366 -48.80%80 Benefits All Employees 8,200 4.18% 6,329 3.33% -1871 -22.82%81 Admin of Emp Benefits 1,400 0.71% 1,173 0.62% -227 -16.21%

----------- -------- ----------- -------- ----------- ----------95 TOTAL EMP BENEFITS 19,050 9.72% 14,119 7.44% -4931 -25.88%

1024-042


2012 Budget




TRAVEL & CONFERENCES 96 Employee's Travel/Ed Exp 1,000 0.51% 292 0.15% -708 -70.80%97 Board Dinners 300 0.15% 189 0.10% -111 -37.00%98 Chapter Dinners 100 0.05% 158 0.08% 58 58.00%

----------- -------- ----------- -------- ----------- ----------104 TOTAL TRAVEL & CONF 1,400 0.71% 639 0.34% -761 -54.36%

LEAGUE/ASSOCIATION DUES 105 Association Dues 1,400 0.71% 1,600 0.84% 200 14.29%106 Other Assocation Dues 200 0.10% 125 0.07% -75 -37.50%

----------- -------- ----------- -------- ----------- ----------111 TOTAL DUES 1,600 0.82% 1,725 0.91% 125 7.81%

OFFICE OCCUPANCY 112 Building Maintenance/Rep 1,200 0.61% 280 0.15% -920 -76.67%113 Utilities 1,600 0.82% 1,795 0.95% 195 12.19%114 Depreciation of Building 1,528 0.78% 1,528 0.81% 0 0.00%115 Real Estate Taxes 1,980 1.01% 2,183 1.15% 203 10.25%116 Disaster Supplies 100 0.05% 10 0.01% -90 -90.00%117 Other Office Occupancy 40 0.02% 478 0.25% 438 1095.00%

----------- -------- ----------- -------- ----------- ----------142 TOTAL OFFICE OCCUP 6,448 3.29% 6,274 3.31% -174 -2.70%

OFFICE OPERATIONS 143 Communications 5,400 2.75% 4,492 2.37% -908 -16.81%144 Misc.Equip Maint/Repair 100 0.05% 312 0.16% 212 212.00%145 Office Supplies 1,200 0.61% 2,338 1.23% 1138 94.83%146 Software & Subscriptions 75 0.04% 108 0.06% 33 44.00%148 Other Stationary/Suppli 100 0.05% 0 0.00% -100 -100.00%149 Insurance 3,800 1.94% 3,804 2.00% 4 0.11%150 Dep of Furn & Fixtures 1,200 0.61% 332 0.17% -868 -72.33%151 Member Trans Processing 20,400 10.40% 17,982 9.47% -2418 -11.85%154 Other Operating Exp 400 0.20% 426 0.22% 26 6.50%155 Grant Writing Costs 0 0.00% 1,000 0.53% 1000 N/A

----------- -------- ----------- -------- ----------- ----------173 TOT OFFICE OPER EXP 32,675 16.66% 30,794 16.22% -1881 -5.76%

EDUCATION 174 Advertising/Publicity 1,600 0.82% 680 0.36% -920 -57.50%175 Phone Book Advertising 680 0.35% 0 0.00% -680 -100.00%

----------- -------- ----------- -------- ----------- ----------184 TOTAL EDUCATION 2,280 1.16% 680 0.36% -1600 -70.18%

LOAN SERVICING 185 Collection Expense 600 0.31% 0 0.00% -600 -100.00%186 Credit Reports 1,300 0.66% 2,477 1.30% 1177 90.54%187 CUDL Dealer/Program Fees 3,400 1.73% 6,227 3.28% 2827 83.15%188 VISA Credit Program Fees 6,500 3.31% 5,894 3.11% -606 -9.32%189 Fraud Loss/Recovery on C 750 0.38% 1,522 0.80% 772 102.93%190 Loan Servicing Exp Other 1,240 0.63% 1,137 0.60% -103 -8.31%

----------- -------- ----------- -------- ----------- ----------200 TOT LOAN SERV EXP 13,790 7.03% 17,257 9.09% 3467 25.14%

1124-043


2012 Budget




PROFESSIONAL SERVICES 201 Legal Fees 150 0.08% 0 0.00% -150 -100.00%202 Supervisory Audit 2,000 1.02% 2,001 1.05% 1 0.05%203 CU*Northwest & Master's 18,000 9.18% 16,086 8.47% -1914 -10.63%204 IRA Accts - CSG 760 0.39% 485 0.26% -275 -36.18%205 Other Prof/Outside Servi 1,450 0.74% 652 0.34% -798 -55.03%206 Brick & Assoc 870 0.44% 900 0.47% 30 3.45%

----------- -------- ----------- -------- ----------- ----------216 TOTAL PROF SERVICES 23,230 11.85% 20,124 10.60% -3106 -13.37%

INSURANCE 218 Share Insurance/NCUSIF 9,000 4.59% 0 0.00% -9000 -100.00%

----------- -------- ----------- -------- ----------- ----------227 TOTAL INSURANCE 9,000 4.59% 0 0.00% -9000 -100.00%

OTHER OPERATING EXPENSE 228 Federal Operating Fee 600 0.31% 714 0.38% 114 19.00%229 Cash Over/Short 0 0.00% 102 0.05% 102 N/A 231 Annual Meeting 750 0.38% 242 0.13% -508 -67.73%

----------- -------- ----------- -------- ----------- ----------253 TOT OTHER OPER EXP 1,350 0.69% 1,058 0.56% -292 -21.63%

----------- -------- ----------- -------- ----------- ----------254 TOT OPER EXP 173,823 88.65% 148,301 78.13% -25522 -14.68%255 LOAN LOSS PROVISION 10,000 5.10% 12,149 6.40% 2149 21.49%

----------- -------- ----------- -------- ----------- ----------267 NET INCOME 1,269 0.65% 15,917 8.39% 14648 1154.29%

=========== ======== =========== ======== =========== ==========

1224-044

Newrizons Federal Credit Union BUDGET vs ACTUAL FINANCIAL STATEMENT: EXPANDED

2012 Budget


--------------------------------------------------------------------------------For Month of: Apr-12

Variance --------------------

Budget Actual $ Amount % ------ ------ -------- ---------

ASSETS (000s)1 CASH, BANK & FRB DEP 60 68 8 13.33%LOANSA. FIXED-RATE LOANS

2 New Autos 295 301 6 2.03%3 Used Autos 1,525 1,215 -310 -20.33%4 CUDL New Autos 160 175 15 9.38%5 CUDL Used Autos 1,175 1,407 232 19.74%8 1st Mortgages 15-Yr 580 599 19 3.28%17 Signature Loans 100 86 -14 -14.00%18 LOC/Overdraft/Debt Con 80 82 2 2.50%19 VISA Classic 195 181 -14 -7.18%20 VISA Platnium 630 590 -40 -6.35%22 RV/Boat/Mobile Home 305 267 -38 -12.46%23 Share Secured 27 42 15 55.56%24 Miscellaneous Untitled 3 1 -2 -66.67%

-------- -------- -------- --------26 TOTAL FIXED-RATE LOANS 5,075 4,946 -129 -2.54%

B. VARIABLE-RATE LOANS27 1st Mortgages I 194 193 -1 -0.52%38 Mem. Business Loans I 4 0 -4 -100.00%40 VR VISA Credit Card 4 0 -4 -100.00%41 HELOC 1st Position 675 808 133 19.70%42 HELOC 2nd Position 100 105 5 5.00%44 MBL HELOC 1st Position 165 0 -165 -100.00%

-------- -------- -------- --------45 TOTAL VAR-RATE LOANS 1,142 1,106 -36 -3.15%46 Less: Loan Loss Allow 70 58 -12 -17.14%

-------- -------- -------- --------47 TOTAL LOANS(NET) 6,147 5,994 -153 -2.49%

INVESTMENTSC. VAR-RATE O/N, BONDS & CDs

59 a O/N - Predicted 200 118 -82 -41.00%59 b O/N - Adjustment -119 N/A N/A N/A59 c O/N - Adj for NI 1 N/A N/A N/A60 Great NW Deposit 550 814 264 48.00%61 CIF Investment 10 12 2 20.00%62 VR Agency Bonds 0 241 241 N/A 63 Other VR Investments 241 242 1 0.41%

-------- -------- -------- --------68 TOTAL VAR-RATE INVEST 883 1,427 544 61.61%

-------- -------- -------- --------69 TOTAL INVESTMENTS 883 1,427 544 61.61%

1324-045

Newrizons Federal Credit Union BUDGET vs ACTUAL FINANCIAL STATEMENT: EXPANDED

2012 Budget


--------------------------------------------------------------------------------For Month of: Apr-12

Variance --------------------

Budget Actual $ Amount % ------ ------ -------- ---------

OTHER ASSETS71 Accrued Interest--Loans 18 18 0 0.00%73 NCUSIF Deposit 69 68 -1 -1.45%74 Membership Shares 2 2 0 0.00%76 Miscellaneous Assets 50 0 -50 -100.00%

-------- -------- -------- --------78 TOTAL OTHER ASSETS 139 88 -51 -36.69%79 PROPERTY & EQUIP (Net) 127 127 0 0.00%

-------- -------- -------- --------80 TOTAL ASSETS 7,356 7,704 348 4.73%

======== ======== ======== ========LIAB & NET WORTH (000s)SHARE DRAFT ACCOUNTS

81 Share Drafts <$500 837 834 -3 -0.36%82 Share Drafts >$500 3 3 0 0.00%

-------- -------- -------- --------85 TOTAL SHARE DRAFTS 840 837 -3 -0.36%

SHARE ACCOUNTS86 Shares <$1000 2,419 2,395 -24 -0.99%88 RE Reserve Shares 15 6 -9 -60.00%90 IRA Shares 305 278 -27 -8.85%

-------- -------- -------- --------91 TOTAL SHARE ACCOUNTS 2,739 2,679 -60 -2.19%

MONEY MARKET ACCOUNTS92 MMA Tier I 800 1,246 446 55.75%

-------- -------- -------- --------97 TOTAL MMAs 800 1,246 446 55.75%

CERTIFICATES98 Regular Certs--FR 1,255 1,251 -4 -0.32%99 IRA Certs--FR 571 569 -2 -0.35%

-------- -------- -------- --------104 TOTAL CERTIFICATES 1,826 1,820 -6 -0.33%

BORROWED FUNDS106 Non-Member Certificates 250 350 100 40.00%

-------- -------- -------- --------111 TOTAL BORROWED FUNDS 250 350 100 40.00%

OTHER LIABILITIES112 Accrued Int & Div 3 2 -1 -33.33%113 Bal of Other Liab 80 28 -52 -65.00%

-------- -------- -------- --------114 TOTAL OTHER LIAB 83 30 -53 -63.86%

NET WORTH115 Regular Reserves 164 164 0 0.00%116 Undivided Earnings 534 533 -1 -0.19%117 Secondary Capital 120 45 -75 -62.50%

-------- -------- -------- --------118 TOTAL NET WORTH 818 742 -76 -9.29%

-------- -------- -------- --------119 TOTAL LIAB & NET WORTH 7,356 7,704 348 4.73%

======== ======== ======== ========14

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120 Firman Avenue

Hoquiam, WA 98550

NEWRIZONS FIVE YEAR STRATEGIC BUSINESS PLAN-2012.docx Page 1

FIVE YEAR STRATEGIC BUSINESS PLAN 2012-2016

MISSION STATEMENT Newrizons Federal Credit Union is a sound, progressive financial institution that keeps the needs and

wants of its members first while working to improve the financial understanding and success in all of

Grays Harbor low income community.

TARGET MARKET Younger skilled/educated persons who want to control their own money (online, text, phone) who

occasionally need a financial “parent” for advice

VALUE PROPOSITION Knows me

Easy access to my money

Provides excellent financial advice when asked

CORE COMPETENCIES Flexible, expandable computer system

Long-term experienced (trained) staff

Excellent customer service

Community outreach

Growth areas

Credit counseling training and certification for staff

Community outreach

Targeted marketing

SWOT ANALYSIS

Strengths Weaknesses

Personal touch o Resolve problems face-to-face o You get to talk to person who knows

you and knows your account o Friendly o Willingness to do phone transfers

Full service o Approve of loans is fast and easy o We don’t try to extract money from

our members

Location

Economy of scale – we’re small

Ability to offer competitive rates

Basic operating costs continue to rise

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Solid foundation o We’ve been here for more than 40

years o Local neighborhood

Unique

Opportunities Threats

Growth – build membership

Visibility – people need to know where we are

Target the pontoon company

Get engaged early with county planning stages – maybe through County Commissioners activities

Move to a more visible location

Compliance and additional complex rule making

Economy

High unemployment

Too small to make extensive products profitable

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120 Firman Avenue

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OBJECTIVES

1. FINANCIAL GROWTH

A. To increase total capital or net capital to equal or above:

a. 9.00% by December 31, 2012

b. 10.00% by December 31, 2014

c. 10.50% by December 31, 2016

B. To maintain core deposits to equal or above:

a. $8 Million by December 31, 2012

b. $9 Million by December 31, 2014

c. $10 Million by December 31, 2016

C. To maintain the Loan to Asset to at least:

a. 85.00% by December 31, 2012.

b. 85.00% by December 31, 2014.

c. 85.00% by December 31, 2016.

D. To decrease average Delinquent Loan Balance to Total Outstanding Loan Balances to:

a. 2.25 % by December 31, 2012.

b. 2.00% by December 31, 2014.

c. 1.75% by December 31, 2016.

E. To decrease Net Charge-offs to Average Loans to:

a. 0.55% by December 31, 2012.

b. 0.50 % by December 31, 2014.

c. 0.45% by December 31, 2016.

F. To decrease Operating Costs to Average Assets:

a. 5.70 % by December 31, 2012.

b. 5.60 % by December 31, 2014.

c. 5.55% by December 31, 2016.

G. To grow new membership by:

a. 100 new members by December 31, 2012.

b. 400 new members by December 31, 2014.

c. 500 new members by December 31, 2016.

2. PRODUCTS AND SERVICES

A. To enhance and expand the range of products and services which meet the needs of the

membership by December 31, 2016.

B. To maintain or acquire the necessary technology systems to enable the credit union to

deliver products and services efficiently and cost effectively which will meet the needs of

the membership by December 31, 2016.

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120 Firman Avenue

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C. To acquire, develop, and retain the necessary staff and management that will be able to not

only service the members needs, but will efficiently serve the operational functions of the

credit union by December 31, 2016.

3. COMMUNITY IMAGE

A. Develop a leadership image in all communities served by the credit union by participating in

educational and community development programs.

B. Move to a more visible, downtown location in conjunction with re-vitalizing the local

community efforts

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120 Firman Avenue

Hoquiam, WA 98550


ACTION PLAN

1. FINANCIAL GROWTH

A. Increase Capital

a. Review investment strategies quarterly for possible maximum income potential

while preserving sufficient funds for liquidity and operational needs. This includes:

i. Invest excess liquidity in the money market or higher yielding accounts at

the corporate or local financial institution rather than leaving funds in the

daily account.

ii. Analyze monthly the amount of necessary funds which must be on deposit

in overnight funds.

b. Review current loan policies for possible additional income, to increase in volume,

and to increase the quality of the loans in the portfolio. This includes:

i. Analyzing loan products.

ii. Pricing loan products.

iii. Underwriting procedures for loan products.

iv. Review and analyze effectiveness of Indirect and direct loan programs

v. Reviewing loan mix by type and tier

c. Review and analyze current fee structure quarterly in order to determine that the

spread is sufficient to offset expenses and produce income.

d. Review and analyze all operating expenses quarterly to determine that they are

reasonable and/or justifiable to present operations.

e. Review and analyze the dividend structure of shares monthly to determine that they

are in line with local competition but more importantly in line with the credit union

ability to pay.

f. Via the Secondary Capital Plan acquire sufficient capital to allow for growth

g. Generate new revenue sources

i. Execute the Loan Participation Plan

ii. Generate increased revenue from direct and indirect secured collateral

loans, VISA, Real Estate Home Equity Line of Credit

iii. Implement Multiple Credit Union Management Services/Consulting for local

smaller credit unions.

B. Increase Core Deposits

a. Develop a marketing plan and market the credit unions services, within the

allocated budget, through items such as:

i. Daily products

ii. Statement stuffers

iii. Direct mail

iv. FaceBook and other social media options

v. Youth/school activities

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vi. On-site and off-site advertising, targeted to the membership needs, such as:

1. Posters in the lobby and at various locations as permitted

2. Web posting

3. FaceBook and other social media options

4. Brochures in neighboring schools and businesses

5. Cooperative advertising with Grays Harbor Chapter and other

sources (e.g., CUDL, local merchants)

6. Visits to local businesses to educate owners and employees on

credit union services and differentiation (e.g. new Pontoon project)

b. Conduct periodic, on-going in-person, online, and telephone surveys to current,

potential, and lost members in an effort to determine why a member is a member,

is not a member, or why they have been lost as a member.

c. Attract new members to grow deposits and loans.

1. Increase the number of employees with Credit Counseling

Certification.

2. Hire bi-lingual employees

d. Attract new non-member deposits to provide additional funding for loan growth

and to meet longer term liquidity needs with minimal interest rate risk

e. Move to a more visible, downtown location in conjunction with re-vitalizing the

local community efforts to attract and better serve new and existing members

C. Loan To Asset Growth

a. Review current loan policies for possible increase in volume. This includes:

i. Analyzing loan products.

ii. Pricing loan products.

iii. Underwriting procedures for loan products.

iv. Cross selling

v. Review and analyze effectiveness of Indirect and direct loan programs

vi. Analyzing restrictions

vii. Adding new products

viii. Loan participation

b. Develop a marketing plan and market the credit unions services, within the

allocated budget, through items such as:

i. Daily products

ii. Statement stuffers

iii. Direct mail

iv. FaceBook and other social media options

v. Youth/school activities

vi. On-site and off-site advertising, targeted to the membership needs, such as:

1. Posters in the lobby at various locations as permitted

2. Web posting

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120 Firman Avenue

Hoquiam, WA 98550


3. FaceBook and other social media options

4. Cooperative advertising (e.g., CUDL, local dealers)

5. Other media advertising (e.g., radio, newspaper, community event

sponsorship events)

c. Use CUDL Indirect Lending program to get existing member loans and to attract new

members and their loan needs.

d. Monitor and analyze current rates with the local competition.

e. Increase the number of employees with Credit Counseling Certification.

f. Hire bi-lingual employees

g. Move to a more visible, downtown location in conjunction with re-vitalizing the

local community efforts to attract and better serve new and existing members

D. DECREASE DELINQUENCY

a. Review current loan policies in an effort to ensure that they include adequate

i. Verification of income

ii. Debt ratio analysis

iii. Current credit reports

iv. Completed applications

v. The use of forms that comply with Truth In Lending

b. Review current collection policies in an effort to ensure that they include:

i. Guidelines for timely contact

ii. Guidelines for timely repossession of collateral

iii. Guidelines for timely refinancing

c. Review current refinancing policies in an effort to ensure they discourage repeat

delinquency by including:

i. Guidelines for timely financial restructuring/workouts/refinancing through

the requirement that any loan to be refinanced must be met

ii. Guidelines for monitoring those loans which have been restructured or

refinanced and a report presented to the board at least quarterly.

d. Increase the number of employees with Credit Counseling Certification.

E. REDUCE NET CHARGE-OFFS

a. Review current loan policies in an effort to ensure that they include adequate

underwriting guidelines such as:

i. Verification of income

ii. Debt ratio analysis

iii. Current credit reports

iv. Completed applications

v. The use of forms that comply with Truth In Lending

b. Review current collection policies in an effort to ensure that they include:

i. Guidelines for timely contact

ii. Guidelines for timely repossession of collateral

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120 Firman Avenue

Hoquiam, WA 98550


iii. Guidelines for timely refinancing

c. Review current refinancing policies in an effort to ensure they discourage repeat

delinquency by including:

i. Guidelines for timely financial restructuring/workouts/refinancing through

the requirement that any loan to be refinanced must be met

ii. Guidelines for monitoring those loans which have been restructured or

refinanced and a report presented to the board at least quarterly.

d. Increase the number of employees with Credit Counseling Certification.

2. PRODUCT AND SERVICES

A. DEVELOP PRODUCTS AND SERVICES:

a. Conduct a member survey, analyze its results, analyze each products feasibility for

the credit union, and report the results to the board. This survey would include

questions such as:

i. Is the credit union meeting your needs?

ii. What share products would you like the credit union to offer?

iii. What loan products would you like the credit union to offer?

iv. Are the hours of the credit union convenient for you?

b. Based upon the results presented to the board, determine which products should

be introduced first, then develop and implement any such products by:

i. Training staff

ii. Purchasing necessary additional equipment

iii. Purchasing necessary materials

iv. Marketing

v. Credit

vi. Credit counseling

vii. Income tax preparation (via VITA and other program affiliation)

B. TECHNOLOGY

a. Build program to move members from printer statements to estatements

b. Evaluate the current data processing system to determine that it can:

i. Support current needs

ii. Support future growth

iii. Be enhanced

iv. Be cost justified

c. Determine that the credit union’s Records Preservation Policy and Disaster Recovery

Plan are current and includes guidelines for testing.

d. Evaluate telephone enhancements to include:

i. Audio response

ii. Voice mail

iii. Mobile banking

iv. Money Desktop

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120 Firman Avenue

Hoquiam, WA 98550


e. Investigate and follow the emerging Home Banking, Bill payment, new product,

mobile banking and balance transfer technologies.

f. Seek technical assistance through the Office of Community Development Unions

and the Federation of CDCU

g. Evaluate options to buy/share ATM

C. STAFFING

a. Annually evaluate existing staff for possible reallocation of duties based on:

i. Education

ii. Experience

iii. Strengths and weaknesses

b. Prepare a quarterly training schedule to promote and encourage a better

understanding of products, mission and culture of the credit union and the

compliance changes as needed.

c. Maintain and update as needed a formalized "new employee" orientation program

to familiarize the employee with the credit union:

i. Mission

ii. Culture

iii. Products

d. Prepare the following items which will be given to the new employee so as to give a

better understanding of their duties and the operations of the credit union:

i. Job description

ii. Current credit union policies

iii. Current standard operating procedures

e. Develop a job shadowing program in conjunction with the local high schools to

better engage the younger population and to provide more part-time resources

f. Implement the CEO succession plan to allow current management to retire/move to

part time.

g. Increase the number of employees with Credit Counseling Certification.

h. Hire bi-lingual employees.

D. BOARD

a. Develop and deliver training on key compliance and strategic planning and oversight

requirements

b. Develop programs to encourage volunteerism within the membership

c. Encourage diversity in the selection of board members to better represent the

current and future membership demographics

d. Develop and perform an annual self-evaluation of board effectiveness

E. COMPLIANCE

a. Maintain current policies and updated procedures in order to meet NCUA

requirements.

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120 Firman Avenue

Hoquiam, WA 98550


3. COMMUNITY IMAGE

A. A. DEVELOP A LEADERSHIP IMAGE

a. Develop a leadership image in the communities by participating in:

i. Educational development programs


Certification.

ii. Community development programs

1. Hire bi-lingual employees to better represent the county population

2. Participate in Grays Harbor Vision 20/20, Hoquiam Rotary, Hoquiam

Business Development Association, Grays Harbor Chamber of

Commerce

iii. Credit Counseling services


Certification.

iv. School programs

1. Participate in Hoquiam and Aberdeen High School Financial Fitness

activities (e.g., Business Week)

2. Provide NEFE materials to all location High and Middle schools

v. Youth programs

vi. Volunteer programs

1. Participate in Relay for Life Cancer Research, Loggers Play Day,

Museum of the North Beach, etc.

b. Designate an individual who will coordinate and serve as representative and who

will organize the credit union and its participation in these programs.

B. Move to a more visible, downtown location in conjunction with re-vitalizing the local

community efforts

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120 Firman Avenue

Hoquiam, WA 98550


DECISION DRIVERS Does this promote long-term survivability of the credit union?

Does it improve our net worth?

Can we do it properly, efficiently, and promptly?

Is this a member-driven need?

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6/28/12 11:38:27 C H ART o F A C C 0 U N T S LGLCHA PAGE 1 USER TERRYF91

COMPANY NO - 1 NEWRIZONS FEDERAL CREDIT UNION

CURRENT PROCESS PERIOD - 12/01 FISCAL ENDING MONTH 12

END YEAR SUM ACCT COMP G/L ACCT DESCRIPTION B/I REV ACCT DAY CASH TYPE STATUS

1 11l. 00 INTEREST ON LOANS 960.00 I A 1 11l. 01 NEW VEHICLE LOAN INTEREST 960.00 I A 1 111.05 BUSINESS NEW VEHICLE LOAN INTEREST 960.00 I A 1 lll.10 USED VEHICLE LOAN INTEREST 960.00 I A 1 111.15 BUSINESS USED VEHICLE LOAN INTEREST 960.00 I A 1 lll.20 INDIRECT NEW VEHICLE LOAN INTEREST 960.00 I A 1 111.25 BUSINESS INDIRECT NEW VEHICLE LOAN INT 960.00 I A 1 lll. 30 INDIRECT USED VEHICLE LOAN INTEREST 960.00 I A 1 lll.35 BUSINESS INDIRECT USED VEHICLE LOAN INT 960.00 I A 1 11l.40 MISCELLANEOUS SECURED LOAN INTEREST 960.00 I A 1 11l. 45 BUSINESS MISCELLANEOUS SECURED LOAN INT 960.00 I A 1 lll.55 TAX REFUND ANTICIPATION LOAN INTEREST 960.00 I A 1 lll. 60 DEPOSIT SECURED LOAN INTEREST 960.00 I A 1 lll.65 PERSONAL LOAN 960.00 I A 1 lll. 66 BUSINESS PERSONAL LOAN INTEREST 960.00 I A 1 lll. 70 1ST FIXED REAL ESTATE LOAN INTEREST 960.00 I A 1 lll.71 2ND FIXED REAL ESTATE LOAN INTEREST 960.00 I A 1 lll.72 1ST ADJUST REAL ESTATE LOAN INTEREST 960.00 I A 1 lll. 73 2ND ADJUST REAL ESTATE LOAN INTEREST 960.00 I A 1 112.00 VISA PLATINUM CREDIT CARD INTEREST 960.00 I A 1 ll2.01 MARKET RATE VISA CREDIT CARD INTEREST 960.00 I A 1 112.05 BUSINESS VISA CREDIT CARD INTEREST 960.00 I A 1 112.10 VISA CLASSIC PL EARNED INCOME 960.00 I A 1 ll3.00 LINE OF CREDIT LOAN INTEREST 960.00 I A 1 113.05 BUSINESS LINE OF CREDIT LOAN INTEREST 960.00 I A 1 113 .10 OVERDRAFT PROTECTION LOAN INTEREST 960.00 I A 1 113 .15 BUSINESS OVERDRAFT PROTECTION LOAN INT 960.00 I A 1 ll3.20 1ST HOME EQUITY LOC INTEREST 960.00 I A 1 113 .25 BUSINESS 1ST RE LINE OF CREDIT LOAN INT 960.00 I A 1 ll3.30 2ND HOME EQUITY LOC INTEREST 960.00 I A 1 1l3.35 BUSINESS 2ND RE LINE OF CREDIT LOAN INT 960.00 I A 1 114.99 ADJ TO LOAN INT INC 960.00 I A 1 12l. 00 INC FR WES CORP/CATALYST 960.00 I A 1 12l.10 GREAT NW FCU INV INC 960.00 I A 1 12l. 20 INC FROM INV IN OTHER CREDIT UNIONS 960.00 I A 1 12l. 56 NON-MEMBER CD INCOME 960.00 I A 1 l3l. 00 DORMANT ACCT FEES 960.00 I A 1 13l.10 MEMBER WIRE FEES 960.00 I A 1 13l.11 MEMBER FAX/PHOTOCOPY/IMAGE FEE 960.00 I A 1 l3l.20 NEGOTIABLE ITEM FEES 960.00 I A 1 13l. 30 SMART CARD FEES 960.00 I A 1 13l.40 CONTRACT COLLECTION FEE 960.00 I A 1 13l.41 FSCC SHARED BRANCH FEE INCOME 960.00 I A 1 13l.50 REAL ESTATE LOAN FEES 960.00 1: A 1 13l. 55 TAX REFUND ANTICIPATION APPLICATION FEE 960.00 I A 1 l3l. 80 LATE FEE ON LOANS 960.00 I A 1 13l. 90 MISC INC FROM FEES AND HARLAND CK PRNTNG 960.00 I A

24-058

6/28/12 11:38:27 C H ART



COMP G/L ACCT DESCRIPTION

1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

132.20 132.25 134.01 l34.02 134.03 134.04 134.05 134.06 l34.07 134.08 134.13 134.15 134.16 134.21 134.23 134.27 150.00 151. 00 151. 01 151. 03 151. 05 151.10 151.20 152.00 152.05 153.00 153.05 154.00 155.00 156.00 211.00 211. 20 211.70 221. 00 222.00 223.00 224.00 224.10 224.20 224.30 224.40 224.41 231. 00 232.10 233.00 240.00 240.10

SHARE DRAFT FEES BUSINESS SHARE DRAFT (CHECKING) FEES SiB INCOME - SPOKANE FIREFIGHTERS SiB INCOME - AMICUS SiB INCOME - SPOKANE MEDIA SiB INCOME - THE UNION CU SiB INCOME - CALCOE CU SiB INCOME - PUGET SOUND CU SiB INCOME - UNITED ADVANTAGE CU SiB INCOME - BLUE MOUNTAIN CU SiB INCOME - PRIME SOURCE SiB INCOME - PACIFIC NORTHWEST SiB INCOME - 1ST VALLEY SiB INCOME - VALLEY EDUCATORS SiB INCOME - NORTHLAND SiB INCOME - RENTON/KENWORTH CU OTHER OPERATING INCOME OTHER VISA/CARD INCOME VISA LATE FEE VISA OVERLIMIT FEE BUSINESS VISA FEES INS PROG INC GAP INSURANCE INCOME (CUNA) VISA CREDIT PROG/INTCHG-INCOME BUSINESS VISA CREDT PROGRAM/INTERCHANGE ATM/DEBIT PROCESSOR INTERCHANGE REIMB BUSINESS ATM/DEBIT INTERCHANGE NCUSIF INCOME GAIN (LOSS) FROM GRANT RECOVERY ON CHARGED OFF LOANS EMPLOYEE COMPENSATION EXPRESS PERSONNEL SERVICE GRANT COMPENSATION REIMBURSEMENT 401K CONTRIBUTION CU MATCH SOC. SEC. TAXES (EMPLOYER SH) UNEMPLOYMENT COMP TAX QTR & ANN OTHER EMPLOYEE BENEFITS CUNA GROUP LIFE/SALARY CONTNCE EMPLOYR INDUST INS EMPL CHRISTMAS BENEFIT $$ ALL EMPLOYEES ADMIN OF EMP BENEFITS EMPLOYEE/BOD EDUC TRAVEL/CONF/EDUC EXP BOARD EXPENSES CHAPTER DINNERS ASSOCIATION DUES OTHER ASSOCIATION DUES, ETC

o F ACCOUNTS LGLCHA

END YEAR SUM ACCT B/I REV ACCT DAY CASH TYPE STATUS

960.00 960.00 960.00 960.00 960.00 960.00 960.00 960.00 960.00 960.00 960.00 960.00 960.00 960.00 960.00 960.00 960.00 960.00 960.00 960.00 960.00 960.00 960.00 960.00 960.00 960.00 960.00 960.00 960.00 960.00 960.00 960.00 960.00 960.00 960.00 960.00 960.00 960.00 960.00 960.00 960.00 960.00 960.00 960.00 960.00 960.00 960.00

I I I

I I I I I I I I I I I I I I I I I I I I I I I I I I I E E E E E E E E E E E E E E

E E E

A A A

A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A

PAGE 2 USER TERRYF91

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1 252.00 BUILDING MAINTENANCE/REPAIR 960.00 E A 1 253.00 UTILITIES 960.00 E A 1 254.00 DEPRECIATION OF BUILDING 960.00 E A 1 256.00 REAL ESTATE TAXES 960.00 E A 1 257.00 PERSONAL PROPERTY TAXES 960.00 E A 1 259.00 OTHER OFFICE OCCUPANCY 960.00 E A 1 259.20 HOQ DISASTER SUPPLIES 960.00 E A 1 261.00 COMMUNICATIONS 960.00 E A 1 263.20 MISC EQUIP MAINT & REPAIR 960.00 E A 1 264.10 OFFICE SUPPLIES 960.00 E A 1 264.14 SOFTWARE SUBSCRIPTION 960.00 E A 1 264.20 FORMS (NON-LOAN) 960.00 E A 1 264.90 OTHER STATIONARY AND SUPPLIES 960.00 E A 1 265.00 INSURANCE 960.00 E A 1 266.00 DEPREC. OF FURNITURE/EQUIPMENT 960.00 E A 1 268.00 MBR TRANS PROCESSOR CHARGES 960.00 E A 1 268.30 PLASTIC INVENTORY (DEBIT) EXPENSE 960.00 E A 1 268.40 RETURN ITEM FEES 960.00 E A 1 268.95 RETURN ITEM WRITE OFF 960.00 E A 1 269.00 OTHER OFFICE OPERATING EXPENSE 960.00 E A 1 269.20 GRANT WRITING COSTS 960.00 E A 1 271.00 ADVERTISING/PUBLICITY/PROMO 960.00 E A 1 271.40 PHONE BOOK ADVERTISING 960.00 E A 1 273.00 MEMBER EDUCATION EXP 960.00 E A 1 282.00 COLLECTION/REPO/CHG OFF COSTS 960.00 E A 1 284.00 CREDIT BUREAU 960.00 E A 1 284.10 CUDL PROGRAM & DEALER FEES 960.00 E A 1 285.00 PREPAID/GIFT PLASTIC COST 960.00 E A 1 286.00 VISA CREDIT EXPENSES 960.00 E A 1 286.40 FRAUD LOSS/RECOVERY ON CARDS 960.00 E A 1 289.00 LOAN SERVICING EXP-OTHER 960.00 E A 1 291. 00 LEGAL FEES 960.00 E A 1 292.00 SUPERVISORY AUDIT 960.00 E A 1 293.00 CU*NORTHWEST & MASTERS TOUCH 960.00 E A 1 293.01 CU*NORTHWEST 960.00 E A 1 293.20 BRICK & ASSOC. ALM & BUDGET 960.00 E A 1 293.60 IRA ACCT FEES-CUNA MOT & AS CENSUS 960.00 E A 1 299.00 OTHER PROF/OUTSIDE SERVICES 960.00 E A 1 300.00 PROVISION FOR LOAN LOSSES 960.00 E A 1 310.00 MEMBER INSURANCE 960.00 E A 1 311.00 NCUSIF STABILIZATION EXP 960.00 E A 1 320.00 FEDERAL OPERATING FEE 960.00 E A 1 330.00 CASH O/S 960.00 E A 1 340.00 INTEREST ON BORROWED MONEY 960.00 E A 1 350.00 ANNUAL MEETING EXPENSES 960.00 E A 1 370.00 MISCELLANEOUS OPERATING EXPENS 960.00 E A 1 381. 00 DIVIDENDS ON SHARES 960.00 E A

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1 381. 01 DIVIDENDS ON PRIMARY SAVINGS 960.00 E A 1 381. 02 DIVIDENDS ON SPECIAL SAVINGS 960.00 E A 1 381.03 DIVIDENDS ON SECONDARY SAVINGS 960.00 E A 1 381.04 DIVIDENDS ON MARKET SAVINGS 960.00 E A 1 381. 05 DIVIDENDS ON BUSINESS SAVINGS 960.00 E A 1 381.50 DIVIDENDS ON CHRISTMAS CLUB 960.00 E A 1 381. 51 DIVIDENDS ON SPECIAL CLUB 960.00 E A 1 381.60 DIVIDENDS ON IRA SHARE ACCOUNT 960.00 E A 1 381. 70 DIVIDENDS ON ROTH SHARE ACCOUNT 960.00 E A 1 381. 71 DIVIDENDS ON SEP SHARE ACCOUNT 960.00 E A 1 381.80 DIVIDENDS ON EDUCATIONAL SHARE ACCOUNT 960.00 E A 1 381. 89 DIVIDENDS ON BUSINESS RE RESERVES 960.00 E A 1 381. 90 DIVIDENDS ON REAL ESTATE RESERVE 960.00 E A 1 381. 91 DIVIDENDS ON VISA PLATIUM PMT ACCT 960.00 E A 1 381. 92 DIV ON VISA PLATIUM REISSUE PMT ACCT 960.00 E A 1 381. 93 DIVIDENDS ON VISA PLATIUM PMT ACCT 960.00 E A 1 381.94 DIVIDENDS ON MARKET VISA PMT ACCT 960.00 E A 1 381.95 DIVIDENDS ON BUSINESS VISA PMT ACCT 960.00 E A 1 382.00 DIVIDENDS ON DRAFT ACCOUNTS 960.00 E A 1 382.01 DIVIDENDS ON CHECKING ACCOUNTS 960.00 E A 1 382.05 DIVIDENDS ON BUSINESS DRAFT ACCOUNTS 960.00 E A 1 382.10 DIVIDENDS ON OTHER CHECKING 960.00 E A 1 384.00 DIVIDENDS ON CERTIFICATE ACCTS 960.00 E A 1 385.00 DIVIDENDS ON IRA CERTIFICATE ACCTS 960.00 E A 1 386.00 NON-MEMBER DIVIDENDS 960.00 E A 1 420.00 GAIN (LOSS) ON INVESTMENTS 960.00 E A 1 440.00 OTHER NON-OPERATING INC. (EXP) 960.00 E A 1 450.00 GAIN (LOSS) ON GRANTS 960.00 E A 1 701.00 LOANS A A 1 701.01 NEW VEHICLE LOANS A A 1 701.05 BUSINESS NEW VEHICLE LOANS A A 1 701.10 USED VEHICLE LOANS A A 1 701.15 BUSINESS USED VEHICLE LOANS A A 1 701.20 CUDL NEW VEHICLE LOANS A A 1 701.25 BUSINESS INDIRECT NEW VEHICLE LOANS A A 1 701. 30 CUDL USED VEHICLE LOANS A A 1 701.35 BUSINESS INDIRECT USED VEHICLE LOANS A A 1 701. 40 MISCELLANEOUS SECURED LOANS A A 1 701.45 BUSINESS MISCELLANEOUS SECURED LOANS A A 1 701.50 RE LOANS IN PROCESS A A 1 701. 55 TAX REFUND ANTICIPATION LOAN A A 1 701. 60 DEPOSIT SECURED LOANS A A 1 701. 65 PERSONAL LOANS A A 1 701. 66 TAX REFUND ANTICIPATION LOANS A A 1 701.70 1ST FIXED REAL ESTATE LOANS A A 1 701. 71 2ND FIXED REAL ESTATE LOANS A A 1 701. 72 1ST ADJUST REAL ESTATE LOANS A A

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1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

701. 73 702.05 702.10 702.11 702.12 702.13 702.20 702.25 703.00 703.05 703.10 703.15 703.20 703.25 703.30 703.35 706.00 707.00 719.00 730.00 731. 00 731. 01 731.10 731.20 731. 30 731. 60 739.00 744.30 744.40 744.50 744.60 744.70 744.80 744.90 745.00 752.00 760.00 761.00 768.00 772.00 772.10 773.00 773.10 774.00 775.00 781.00 781. 01

2ND ADJUST REAL ESTATE LOANS BUSINESS VISA LOANS VISA LOANS VISA PLATINUM VISA PL CLASSIC VISA MARKET LOAN VISA CASH ADVANCE IN PROCESS BUSINESS VISA CASH ADVANCE IN PROCESS LINE OF CREDIT LOANS BUSINESS LINE OF CREDIT LOANS OVERDRAFT PROTECTION LOANS BUSINESS OVERDRAFT PROTECTION LOANS 1ST HOME EQUITY LOC BUSINESS 1ST HOME EQUITY LINE OF CREDIT 2ND HOME EQUITY LOC BUSINESS 2ND HOME EQUITY LINE OF CREDIT PLASTIC FRAUD PENDING LOANS-COLL. IN PROC. OF LIQUID ALLOWANCE FOR LOAN LOSSES GAIN (LOSS) ON DISPOS. OF ASSE SHARE DRAFT CLEARING ACH CLEARING FSCC SHARED BRANCH SETTLEMENT/CLEARING CORPORATE CHECK CLEARING MONEY ORDER CLEARING CU CHECK ACTIVITY-CLEARED/WRITTEN CHANGE FUND GREAT NW DEPOSIT ACCOUNT TWINSTAR CU MONEY MARKET WESCORP/CATALYST-DAILY WESCORP-CERTS OF DEPOSIT PERPETUAL CONTRIBUTED CAPITAL @ CATALYST PERM CAPITAL/PAID IN CAP-WESCORP CIF (COMM INV FUND) CERTIFICATES OF DEPOSIT-INVESTMENS SHARE INSURANCE CAPITALIZ DEP PREPAID EXPENSES POSTAGE FOR SALE TO MEMBERS WESCORP HOLDING ACCOUNT BUILDING BUILDING MAINTENANCE ALLOW FOR DEPRECIATION OF BUILDING ALLOW FOR BUILDING MAINTENANCE FURNITURE AND EQUIPMENT ALLOW FOR DEPRECIATION OF FURN & FIX INTEREST ON LOANS-ACCRUED NEW VEHICLE LOAN ACCRUED INTEREST

o F A C C 0 U N T S LGLCHA


Y

A A A A A A A A A A

A A A A A A A A A A A A A A A A A A A A A A A A A A

A A A A A A A A A A A

A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A S A A A A A A A A


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1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

781. 05 781.10 781.15 781.20 781.25 781.30 781. 35 781. 40 781. 45 781. 55 781.60 781. 65 781. 66 781. 70 781. 71 781. 72 781. 73 782.00 782.05 784.00 784.05 784.10 784.15 784.20 784.25 784.30 784.35 785.00 785.05 785.90 785.99 788.00 788.40 788.50 800.00 801. 00 801.20 801.30 801.40 802.10 802.15 802.20 802.21 802.22 802.23 802.25 802.30

BUSINESS NEW VEHICLE LOAN ACCURED INT USED VEHICLE LOAN ACCRUED INTEREST BUSINESS USED VEHICLE LOAN ACCURED INT CUDL NEW VEHICLE LOAN ACCRUED INTEREST BUSINESS INDIRECT NEW VEH ACCURED INT CUDL USED VEHICLE LOAN ACCRUED INTEREST BUSINESS INDIRECT USED VEH ACCURED INT MISCELLANEOUS SECURED LOAN ACCRUED INT BUSINESS MISC. SECURED LOAN ACCURED INT TAX REFUND ANTICIPATION LOAN ACCURED INT DEPOSIT SECURED LOAN ACCRUED INTEREST PERSONAL LOAN ACCRUED INTEREST BUSINESS PERSONAL LOAN ACCURED INTEREST 1ST FIXED REAL ESTATE LOAN ACCRUED INT 2ND FIXED REAL ESTATE LOAN ACCRUED INT 1ST ADJUST REAL ESTATE LOAN ACCRUED INT 2ND ADJUST REAL ESTATE LOAN ACCRUED INT VISA CREDIT CARD ACCRUED INTEREST BUSINESS VISA CREDIT CARD ACCRUED INT LINE OF CREDIT LOAN ACCRUED INTEREST BUSINESS LINE OF CREDIT LOAN ACCRUED INT OVERDRAFT PROTECTION LOAN ACCRUED INT BUSINESS OVERDRAFT PROTECTION ACCRUED IN 1ST HOME EQUITY LOC ACCRUED INTEREST BUSINESS 1ST HELOC ACCURED INTEREST 2ND HOME EQUITY LOC ACCRUED INTEREST BUSINESS 2ND HELOC ACCRUED INTEREST VISA CREDIT ACCRUED INTEREST BUSINESS VISA CREDIT CARD ACCRUED INT PENDING WRITE-OFF ACCURED INTEREST >90 DELINQ LN INT ACCRUED INCOME ON INVESTMENTS MED125 SHORTFALL PREPD CDFI GRANT WRITING BORROWED FUNDS MISC ACCOUNTS PAYABLE NCUA OPERATING FEE PAYABLE PAYABLE FOR REAL ESTATE TAXES PAYABLE FOR YARD WORK VISA PAYMENTS IN PROCESS BUSINESS VISA PAYMENTS IN PROCESS VISA ADJUSTMENTS IN PROCESS BUSINESS VISA ADJUSTMENTS IN PROCESS VISA SETTLEMENT BUSINESS VISA SETTLEMENT VISA PREPAID GIFT SETTLEMENT IN PROCESS CHARGEBACKS IN PROCESS (PLASTIC)

o F A C C 0 U N T S LGLCHA


A A A

A A A A A A A A A A A A A A A A A

A A A A A A A A A A A A A A L L L L L L L L L L L L L

A A A

A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A


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1 802.35 BUSINESS CHARGEBACKS IN PROCESS L A 1 802.40 RETURN ITEMS IN PROCESS L A 1 802.45 BUSINESS RETURN ITEMS IN PROCESS L A 1 802.50 CUDL LOANS PENDING L A 1 802.55 CUDL DEALER FEES PENDING L A 1 802.72 TELLER 14 STAMPS L A 1 802.73 TELLER 12 STAMPS L A 1 802.74 TELLER 16 STAMPS L A 1 802.75 TELLER 15 STAMPS L A 1 802.76 TELLER 18 STAMPS L A 1 802.85 #12 VISA CARDS L A 1 802.86 #14 VISA CARDS L A 1 802.87 #15 VISA CARDS L A 1 802.88 #16 VISA CARDS L A 1 802.89 #17 VISA CARDS L A 1 802.90 #18 VISA CARDS L A 1 802.91 #75 VISA CARDS L A 1 802.92 #76 VISA CARDS L A 1 803.00 PAYROLL SUSPENSE L A 1 803.01 HOQUIAM SCHOOL PAYROLL L A 1 803.02 GRAY'S HARBOR PAYROLL L A 1 804.00 CU*BASE HOLDING L A 1 805.00 ATM/DEBIT CARD PENDING L A 1 805.01 DEBIT CLEARING (NEW) L A 1 806.00 ANNUAL MEETING IN PROCESS L A 1 807.00 NCUSIF STABILIZATION HOLDING L A 1 820.00 DIVIDENDS PAYABLE PRIMARY SAVINGS L A 1 820.01 DIVIDENDS PAYABLE SPECIAL SAVINGS L A 1 820.03 DIVIDNEDS PAYABLE SECONDARY SAVINGS L A 1 820.04 DIVIDENDS PAYABLE MARKET SAVINGS L A 1 820.05 DIVIDENDS PAYABLE BUSINESS SAVINGS L A 1 820.50 DIVIDENDS PAYABLE CHRISTMAS CLUB L A 1 820.51 DIVIDENDS PAYABLE SPECIAL CLUB L A 1 820.60 DIVIDENDS PAYABLE IRA SHARE ACCOUNT L A 1 820.70 DIVIDENDS PAYABLE ROTH SHARE ACCOUNT L A 1 820.71 DIVIDENDS PAYABLE SEP SHARE ACCOUNT L A 1 820.80 DIVIDENDS PAYABLE EDUCATION SHARE ACCT L A 1 820.90 DIVIDENDS PAYABLE REAL ESTATE RESERVE L A 1 820.91 DIVIDENDS PAYABLE VISA PLAT PMT ACCT L A 1 820.92 DIVIDENDS PAYABLE REISSUE VISA PMT ACCT L A 1 820.93 DIVIDENDS PAYABLE VISA PLAT PMT ACCT L A 1 820.94 DIVIDENDS PAYABLE MARKET VISA PMT ACCT L A 1 820.95 DIVIDENDS PAYABLE BUSINESS VISA PMT ACCT L A 1 822.00 DIVIDENDS PAYABLE CHECKING ACCOUNT L A 1 822.10 DIVIDENDS PAYABLE OTHER CHECKING L A 1 822.15 DIVIDENDS PAYABLE BUSINESS CHECKING ACCT L A 1 822.89 DIVIDEND PAYABLE BUSINESS RE RESERVES L A

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COMP

1 1 1 1 1 1 1 1 1 1

1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

G/L ACCT

823.00 823.75 824.00 841. 00 841.10 852.50 852.51 852.52 852.53 859.00 868.00 870.00 870.01 870.02 870.03 870.04 870.05 870.07 870.08 870.09 870.10 870.11 870.13 870.14 870.15 870.16 870.17 870.20 870.22 870.45 870.96 870.97 870.98 901.00 901. 01 901. 02 901. 03 901.04 901. 05 901.50 901. 51 901. 89 901. 90 901. 91 901. 92 901. 93 901.94

DESCRIPTION

DIVIDENDS PAYABLE CERTIFICATES OF DEP DIVIDENDS PAYABLE NON MEMBER CERTIFICATE DIVIDENDS PAYABLE IRA CERTIFICATES FEDERAL W/H TAXES PAYABLE BACKUP W/H TAXES PAYABLE 401K HOLDING ALL EMPLOYEES HSA HOLDING ACCT-EMPLOYEE CONTRIBUTIONS MEDICAL INSURANCE HOLDING ACCOUNT WCMS/CONVENTION/MNGMT TRAINING HOLDING ACCRUED EXPENSES GRANT FUNDS HOLDING SUSPENSE ACCOUNT TELLER PROCESSING SUSPENSE SHARE DRAFT EXCP/RE-POST SUSPENSE LOAN PROCESSING SUSPENSE DIRECT POSTING SUSPENSE PAYROLL PROCESSING SUSPENSE JOURNAL TRANSFER SUSPENSE ERROR CORRECTION SUSPENSE INACTIVE ACCTS SUSPENSE CERTIFICATE PROCESSING SUSPENSE ACH PROCESSING SUSPENSE ATM PROCESSING SUSPENSE FSCC SHARED BRANCH SUSPENSE RECONCILEMENT SUSPENSE DEBIT CARD PROCESSING SUSPENSE FIFTH/THIRD INTERCHANGE FEE SUSPENSE CU*EASYPAY SUSPENSE VISA SUSPENSE SHARE DRAFT RETURNS AUDIO RESPONSE PROC SUSPENSE AUTOMATIC CERT PROC SUSPENSE AUTOMATIC TRANSFER PROC SUSPENSE SHARES PRIMARY SAVINGS SPECIAL SAVINGS SECONDARY SAVINGS MARKET SAVINGS BUSINESS SAVINGS CHRISTMAS CLUB ACCOUNTS SPECIAL CLUB BUSINESS REAL ESTATE RESERVES ACCOUNTS REAL ESTATE RESERVE ACCOUNTS VISA PLATINUM PMT ACCT VISA PLATINUM REISSUE PMT ACCT VISA PLATINUM PMT ACCT MARKET VISA PMT ACCOUNT

o F A C C 0 U N T S LGLCHA PAGE 8 USER TERRYF91


L A L A L A L A L A L A L A L A L A L A L A L A L A L A L A L A L A L A L A L A L A L A L A L A L A L A L A L A L A L A L A L A L A L A L A L A L A L A L A L A L A L A L A L A L A L A L A

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COMP GIL ACCT

1 901. 95 1 902.00 1 902.01 1 902.05 1 902.10 1 904.60 1 904.70 1 904.71 1 904.80 1 908.00 1 908.50 1 908.75 1 925.00 1 925.10 1 931. 00 1 940.00 1 960.00 1 999.01 1 999.02 1 999.03 1 999.04 1 999.05 1 999.06 1 999.07 1 999.08 1 999.13 1 999.15 1 999.16 1 999.21 1 999.23 1 999.27 1 999.99

DESCRIPTION

BUSINESS VISA PMT ACCT SHARE DRAFT ACCOUNTS CHECKING ACCOUNTS BUSINESS CHECKING ACCOUNT OTHER CHECKING IRA SHARE ACCOUNTS IRA ROTH SHARE ACCOUNTS IRA SEP SHARE ACCOUNTS IRA EDUCATION SHARE ACCOUNTS CERTIFICATES OF DEPOSIT IRA CERTIFICATES OF DEPOSIT NON MEMBER CERTIFICATE OF DEPOSIT SECONDARY CAPITAL-DONATED CAPITAL VALUE DEPRECIATION OF SEC CAP REGULAR RESERVE UNDIVIDED EARNINGS NET INCOMB (LOSS) SiB SETTLEMENT - SPOKANE FIREFIGHTERS SiB SETTLEMENT - AMICUS CU SiB SETTLEMENT - SPOKANE MEDIA SiB SETTLEMENT - THE UNION CU SiB SETTLEMENT - CALCOE CU SiB SETTLEMENT - PUGET SOUND CU SiB SETTLEMENT - UNITED ADVANTAGE SiB SETTLEMENT - BLUE MOUNTAIN SiB SETTLEMENT - PRIMESOURCE SiB SETTLEMENT - PACIFIC NORTHWEST SiB SETTLEMENT - 1ST VALLEY SiB SETTLEMENT - VALLEY EDUCATORS SiB SETTLEMENT - NORTHLAND SiB SETTLEMENT - RENTON/KENWORTH DO NOT USE - END OF FILE

END YEAR BII REV ACCT

** END OF REPORT **

LGLCHA PAGE 9 USER TERRYF91

SUM ACCT DAY CASH TYPE STATUS

L A L A L A L A L A L A L A L A L A L A L A L A L A A A L A L A L A L A L A L A L A L A L A L A L A L A L A L A L A L A L A L A

24-066

/

June 28. 2012

Ms. A Ynette Gibbs, Co-CEO NEWRIZONS Federal Credit Union 120 Firman Street Hoquiam, WA 98550

Dear Ms. Gibbs:

I am a former Chairman of the Grays Harbor County Commissioners and I have been a member of the NEWRIZONS Federal Credit Union for 24 years.

I am familiar with some of the projects that the credit union is involved in our community and strongly support your effort to apply for Rescue and Refinance money through the Washington State Office on the Attorney General to help homeowners with pre-foreclosure issues.

Unemployment is 13.7% in Grays Harbor County and many have been struggling in these economic times. Mortgage defaults within the State of Washington and especially Grays Harbor County with continue to increase. Unfortunately many of the homeowners who in trouble and desperately trying to negotiate with their banks need qualified help to obtain a positive outcome.

The foreclosure issues are nationwide, but NEWRIZONS Federal Credit Union could make a difference in Grays Harbor County.

Albert A. Carter 315 Lawrence Drive Hoquiam, WA 98550 Former Grays Harbor County Commissioner Business Owner

24-067

Total GRANT FUNDED PROGRAM COSTS $753,000 49%Total Newrizons Funded Program Costs $785,000 51%TOTAL PROGRAM COSTS $1,538,000 100%

Summary Cost BreakdownGRANT

FUNDED

Salaries: $45,000 $270,000Goods and Services (identify): $675,000 $500,000

Administrative Overhead $10,500

Advertising or Outreach $14,250 $15,000Travel: $8,250Total: $753,000 $785,000

Detail Grant Funded Breakdown Total 2012 2013 2014$753,000 $156,000 $371,000 $226,000

Salaries $45,000 $15,000 $15,000 $15,000 Administrative/program management salary and benefit allocation $45,000 $15,000 $15,000 $15,000

3 year salary allocation for credit counselors, program loan officer, and loan servicing timeloan amounts funded by NFCU

3 year salary allocation for management and staff outreach activities

Newrizons Funded

Newrizons Federal Credit Union Budget Proposal

24-068

Newrizons Federal Credit Union Budget Proposal Good and Services $675,000 $130,000 $345,000 $200,000

HOME PRESERVATION PROGRAM $225,000 $50,000 $100,000 $75,000

FIRST-TIME HOMEOWNERS PROGRAM $225,000 $50,000 $100,000 $75,000

CAPITAL RESERVES $100,000 $30,000 $70,000 $0

LOAN LOSS RESERVES $125,000 $0 $75,000 $50,000

Administrative Overhead $10,500 $3,500 $3,500 $3,500Mortgage lending forms - conventional 15, 20, and 30 year mortgages only $4,500 $1,500 $1,500 $1,500Prorated mortgage application and servicing software costs $6,000 $2,000 $2,000 $2,000

Financial counseling classes, use of computers, training facility, one-on-one counselling sessions, lending programs, subsidized interest rates, loan guarantee set asides for amounts in excess of 80% current value, subsidized closing costs, and other costs of refinancing outstanding liens mitigating foreclosures

Financial counseling classes, use of computers, training facility, one-on-one counselling sessions, lending programs, subsidized interest rates, loan guarantee set asides for amounts in excess of 80% current value, subsidized closing costs, and other associated debt reduction costs

Ensures Newrizons’ ability to provide the best services without any threat to any potential decrease in net worth during formative stages of the program

Increase underwriting flexibility in support the development of these specialized lending programs

24-069

Newrizons Federal Credit Union Budget Proposal

Advertising or Outreach $14,250 $4,750 $4,750 $4,750Radio and local newspaper advertising $7,500 $2,500 $2,500 $2,500Supplies to create and print flyers, brochures, postcards $3,000 $1,000 $1,000 $1,000Postage $750 $250 $250 $250Website, Social Media support $3,000 $1,000 $1,000 $1,000

Travel $8,250 $2,750 $2,750 $2,7505000 miles per year @ current IRS rate $0.55 per mile $8,250 $2,750 $2,750 $2,750

24-070

Dates Activity Company/Organization

Monthly starting September 2012 3 - 30 second radio spots per station per day Monday - Wedneday - Friday

3 radio stations owned by Jodesa Broadcasting

Semi-Annually starting November 2012 3-5 minute Radio interviews 5 Jodesa Broadcasting stations, 2

other local radio stations, 4 public

Quarterly starting September 2012 Distribute flyers, brochures, and posters

50 churches located in GHC, 10 rural post offices, NeighborWorks, Grays Harbor Chamber of Commerce, Battered Women, Grays Harbor PUD, Grays Harbor Transit, Coastal Action Program, 6 Senior Centers, Grays Harbor Housing Authority, Grays Harbor United Way, 8 Grays Harbor Food Banks, Rotary and Lions Clubs

Quarterly ads starting in October business card ad Senior Sunset Times

Semi-Annually starting November 2012

Article about program/Success Story Interview Senior Sunset Times

Quarterly ads starting in October business card ad The Daily World/North Coast News

Spring 2013 Article in City of Hoquiam newsletter delivered to every business and City of Hoquiam

Starting September 2012FaceBook notices at least weeklyNew website pagesHome page promotions

Newrizons

Newrizons Federal Credit Union Marketing Campaign

24-071

Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4Home Improvement Loans 1 1 1 2 3 1 1 2 3 1First Time Homebuyers 1 1 3 4 2 3 4 4 2Re-financed Mortgages 1 1 1 1 1 1 1 1 1Home Buyer Savings Plan 1 2 3 6 9 12 15 18 21 24Financial Counseling 5 6 7 8 9 10 11 12 13 14TOTAL 7 11 13 20 26 26 31 37 42 42

Financial Readiness Seminars 1 2 2 2 2 3 3 2 3 3Participants per session 6 8 10 12 12 12 12 12 12 12Total reached 6 16 20 24 24 36 36 24 36 36

2012 2013 2014

Newrizons Federal Credit Union Program Goals

24-072

application for funds for project to help ......1st mortgage loan was modified greatly reducing the...

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