2019 ANNUAL REPORT

CHRIS SCHELL Chief Marketing Officer

Why SUMMIT?

KEITH PETERSONChief Financial Officer

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Board of directors

JOHN LITSCHERPAST CHAIRPartner & Private Wealth Planner The Capital Group

DAVE RESZELVICE CHAIRRetired Executive Milwaukee Journal Sentinel

MIKE O’BRIENDIRECTORLocal Sales Manager Journal Broadcast Group

DAN KAISERTREASURERSenior Vice President Product Innovation & Development CUNA Mutual Group

BOB LINDNERDIRECTORVice President Director of Credit Union Business Development Madison Investment Advisors

MIKE SCHENKCHAIRDeputy Chief Advocacy Officer for Policy Analysis and Chief Economist Credit Union National Association

MARY TURKESECRETARYManaging Partner Attorney at Law Turke & Strauss, LLP

DENNIS SAUEYDIRECTORRetired Business Owner Norse Leasing Corporation

STEFANIE NORVAISASDIRECTORVice President of Strategy & Principal Delve

SUMMIT CREDIT UNION 2019 AWARDS AND RECOGNITIONGOVERNOR’S FINANCIAL LITERACY LEGACY AWARDAwarded by Wisconsin Governor Tony Evers, the Legacy Award is a lifetime recognition for an organization, business or individual whose purpose and heritage is ingrained in sustained financial literacy and capability. Winner of three previous Governor’s Financial Literacy Awards, Summit was nominated in 2019 by the Madison Metropolitan School District.

DESJARDINS YOUTH FINANCIAL EDUCATION AWARDRecognized as #1 in Wisconsin by the Credit Union National Association and the Wisconsin Credit Union League for excellence in youth financial education through our partnership with Girl Scouts, Madison Metropolitan School District, Madison College and several other community partnerships.

BEST OF AWARDS• Bank/Credit Union – Star of Madison (10th year in a row)• Financial Institution – Sun Prairie (10th year in a row)• Financial Institution – Waunakee (10th year in a row)• Financial Planner/Stockbroker – Shepherd Express readers in Milwaukee

BEST NEW DEVELOPMENT OR RENOVATION – RETAILFor Summit’s Monona branch, In Business Magazine’s 2019 Commercial Design Award

MMSD OUTSTANDING CAREER & TECHNICAL EDUCATION PARTNERAwarded by Madison Metropolitan School District

EXECUTIVE CHOICE AWARD FOR CREDIT UNIONSAwarded by In Business Magazine, winners represent the top business-to-business vendors in the Greater Madison area (10th year in a row)

BEST PLACES TO WORKSummit named a Best Place to Work by Madison Magazine in the category of companies with 101+ employees

LOCAL BIZ AWARD – STAFF CHOICE Awarded by Dane Buy Local

GOLD ADDY AWARD Awarded by The American Advertising Federation for Online/Interactive Social Media Campaign (Brand Campaign) and for Elements of Advertising in Digital Creative Technology and Innovative Use of Interactive/Technology (Vision Board)

SILVER ADDY AWARDAwarded by The American Advertising Federation for Interior Out-of-Home & Ambient Media (State Street Branch Signage)

1 #1 mortgage lender based on number of mortgages recorded with Dane and Columbia counties’ register of deeds. 2 SBA Lender of the Year Award for Credit Unions, for number of SBA loans approved, as awarded by the Small Business Administration of Wisconsin in May, 2019.

1AND COLUMBIA COUNTY among credit unions2

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CHAIR/CEO REPORT

Why Summit?There are about 200,000 reasons for Why Summit. We exist for the benefit of our members, all two hundred thousand of them.

We help more people buy their first home, buy their next home, save money with a lower rate, and pay off their mortgage. We are the number one mortgage lender in Dane and Columbia counties1 and our market share continues to grow in other counties we serve.

Members enjoy higher savings rates, lower loan rates, and fewer fees than they get from for-profit financial institutions, plus no hidden costs. That is real money in consumers’ pockets or in their savings and investment accounts. That accounts for Summit members saving over $30 million in 2019 over banking with the average Wisconsin bank, an average of $333 per household.2

We enable dreams. The dreams and goals are those of our members; we just help them achieve them. What do you want to work toward? We will help you get there.

We help small businesses. Our members start businesses, add rental property, run long-time businesses, and by doing so, they help the economy. We help them be successful, and they help our communities be successful.

We believe the stronger our members, the stronger the community, and the stronger the community, the stronger our members.

Our employees care about our members and their families. As one member said, “I’ve had four vehicle loans, a mortgage, home equity loan, credit card, business account, and other investments. All of my family members bank with Summit. They are spot on, and have never failed me once. Incredible service.”

We also make impacts through innovative financial education programs. So many of these are highlighted in this annual report. We have formal programs such as Project Money, Project Teen Money, seminars and webinars, high school branches, and Red Shoes,® and we have less formal programs where members connect with a Summit banker who is ready to answer questions and take an interest in what is next on the road to sound financial decisions. That is free to all of our members.

MIKE SCHENK, BOARD CHAIR KIM SPONEM, CEO & PRESIDENT

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And then there are the free financial tools, online education such as Foolproof® and digital money management tools like Summit’s Climbr® in online and mobile banking. As the 2019 winners of Project Money said, “Once we started logging and tagging our expenses in Summit’s Climbr and making sure that we were directing payments to designated savings accounts, we were on a roll! Our ‘system’ that we created started running itself.”

Time is a premium for our members, so we strive to deliver all this easily and efficiently.

And, as a leader in financial services and financial wellness, we are often recognized for our efforts. In fact, after winning three Wisconsin Governor’s Financial Literacy Awards in the past decade, we were awarded the Governor’s Financial Literacy Legacy Award for 2019 – an award beyond recognition of a single program. This is a one-time award for a business “whose purpose and heritage is ingrained in sustained financial literacy and capability.”

Giving back to the community and to our members go hand in hand. As a cooperative, where our members are our shareholders, the Board of Directors issues a dividend when we are having a better than expected year. We call it Cash Boomerang3 because when you build the cooperative, it comes back to you! That doesn’t happen in for-profit banks. And in 2020, Summit is helping members through the pandemic, including offering skip-a-payment options and hardship loans as we’ve done in other crises for our members.

Empowering financial well-being is what we do. When our members find it fast, easy and insightful to do business with us, they bring their friends and family in. That means better financial well-being for more individuals and families, and that leads to stronger communities. Thank you for telling your friends and family about Summit Credit Union. We grew membership by 6.98% in 2019 and word of mouth is the primary way we grow.

Given the collective impact made by our members, our team at Summit Credit Union and our Board of Directors, a tougher question to answer would be “Why NOT Summit?”

Mike Schenk | Board Chair Kim Sponem | CEO & President

1 #1 mortgage lender based on number of mortgages recorded with Dane and Columbia counties’ register of deeds. 2 Savings over the average cost of doing business with a for-profit banking institution in WI. CUNA Economics & Statistics Department, customized analysis of member benefits for Summit Credit Union, for 12 months ending Dec 31, 2019. 3 No minimum balances are required to be eligible for the program. Any fees/charges applied to an account will reduce the account balance and result in less dividends earned. A checking account must be open as of 9/30 of year of payment to be eligible for the program. Only members in good standing at the date of the payout will receive it as long as the Cash Boomerang computes to $10 or more, with a maximum of $1,000. Cash Boomerang is not guaranteed. Cash Boomerang is a dividend and subject to tax reporting.

Insured by NCUA

Why summit?There Are So Many Ways to Help You Reach Your Goals!

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Any time you save, you get closer to reaching your financial goals. And just for doing business with Summit Credit Union, you save money. At Summit, members enjoy higher savings rates, lower loan rates and lower-than-average fees compared to the typical Wisconsin bank. In 2019, each member saved an average of $159, and that’s $333 per household.1

At Summit, what you want to accomplish is at the top of our list and we’re happy to use our expertise to help you find ways to make it happen. We offer fast, easy transactions, AND we ask about your goals, because that’s where action begins.

A couple who came in asking for a loan to get their gutters replaced could have gone somewhere else and gotten a loan but chose Summit. We asked about their bigger goals and helped them come up with a much more impactful plan. We refinanced their home, taking years off of their home loan, saved them thousands of dollars and got them in position to have their home paid off when their first child leaves for college. Together with Summit, they strengthened their finances, built financial confidence, reduced stress and got new gutters.

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AVERAGE SAVED per household

in 20191

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Sometimes circumstances make a loan too risky at the moment. That’s when we are there to give advice on how you can change the situation and how we can help – whether it’s improving your credit rating, building savings or reducing debt.

Making smart choices is the key to being financially successful – and your Summit membership is a great place to start! We hope you take full advantage of all the free education, digital tools and resources, accounts, services and coaching we have to offer.

We’ve got your back. We’re always open and honest with our advice and about any fees. We help you get a clear understanding of the accounts, tools and services you’re interested in, and are happy to answer all your questions.

Our holistic approach to financial wellness centers on a commitment to women’s financial success and extends to all. Women tend to earn less than men in a lifetime, are often primary caregivers, and live longer than men, creating challenges to financial security. In December 2019, women surpassed men in number of jobs held in the United States.2 When women, their friends and family are financially well, families are stronger and communities thrive.

We are a friendly, local financial cooperative focused on the financial wellness of our members, the wellness of our employees, communities and the environment.

We’re here to help make talking about money, and managing it, more comfortable. And with comfort comes confidence. That’s the Summit difference!

We have more than 43 locations, nearly 5,000 surcharge-free ATMs, and lots of mobile and online service options, so doing business with Summit from wherever you are is quick, simple and easy – just the way you like it. After all, it’s your money!

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92% OF WOMEN are eager to learn about

financial planning, but 8 out of 10 of them have refrained

from having financial conversations. We know

that 60% of women worry about having enough money to last through

retirement, and we are here to start the conversations that make taking action to

build financial security and wealth easier. 3

1 Savings over the average cost of doing business with a for-profit banking institution in WI. CUNA Economics & Statistics Department, customized analysis of member benefits for Summit Credit Union, for 12 months ending Dec. 31, 2019. 2 Source: “Women Overtake Men as Majority of U.S. Workforce,” Wall Street Journal, January, 2020. 3 Source: Fidelity Investment Money FIT Women Study, February, 2015.

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From managing your first checking account to making your first million (oh yes, it can be done!), we love helping people learn how to manage money. We take a meet-you-where-you-are approach to financial education that always applies to wherever you are financially, and, whenever we can make it happen, it also applies to where you are geographically, including…

Why Summit?Meet-you-where-you-are Financial Education

Anywhere you are with a smart deviceWe deliver lots of digital financial education, available wherever you are and whenever you need it, from our Money Smarts page on our website, including videos, a blog, FoolProof® – an online consumer financial education tool specially made to help young adults avoid costly mistakes, to Red SHOES® – a custom financial wellness program with step-by-step plans to reach your million, to Summit’s Climbr® – a free money management tool available with Summit’s digital banking. With Climbr you can plan a budget and get updates on how you’re doing, plus advice to help you stay on track.

®

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At workSummit’s award-winning workplace Financial Wellness for Employees program was in partnership with 50 employers as of the end of 2019, and it’s growing. More than 15,550 employees engaged with the program in 2019. Together with our employer partners, we give 43,000+ employees of Wisconsin-based companies access to resources and education to reduce financial stress and increase productivity.

And Summit’s Financial Wellness for Employees program works overtime. Thanks to our exclusive financial coaching app, Versed,® new in 2019, employees of our program partners have specific tips and insights based on their personal and ever-changing finances 24/7 as close as their mobile device.

At SchoolSummit has a location in all four of Madison’s public high schools with financial education in the branch and in collaboration with teachers and student programs. We impact teens for a lifetime of better money decisions. Students

in our award-winning Project Teen Money scholarship challenge learn about saving, spending and giving and then create online peer education videos to teach their peers, too.

“Due to our longstanding partnership

with Summit Credit Union, our teen entrepreneurs are inspired to make smart financial decisions by

gaining the valuable knowledge and skills they need to manage

money more effectively.”

Roxie Hentz, CEOs of Tomorrow

“Summit is an integral part of our schools’

daily culture in providing strong, sound and personal financial education opportunities for all of our students.”

Darrin Graham, La Follette High School

Business / Marketing Educator

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2019 $10,000 Winner

Sue & Jeff EmilyBecky &

SteveEmily & ginger

2019 $3,000 Winners

PROJECT MONEY IS AN AWARD-WINNING FINANCIAL EDUCATION PROGRAMAwarded the Governor’s Financial Literacy Award (2016) and the Desjardins Adult Financial Education Award in Wisconsin (2016).

TOGETHER, 2019 PROJECT MONEY PARTICIPANTS

Had 26,778 blog viewsIncreased their savings $80,863

Decreased their debt $62,443

IN 11 PROJECT MONEY SEASONS, 44 PARTICIPANTS

Increased their savings $450,981Decreased their debt $481,181

At our branchesWe are ready to partner with you one on one at more than 43 locations to make handling money easier and more fun. Stop in with transactions or make an appointment online at SummitCreditUnion.com.

Through the media In just seven months, the 11th season of

Summit Credit Union’s Project Money public financial education challenge helped participants, and thousands who follow along, to plan for and take action toward a better, stronger financial life. Participant teams, paired with a Summit coach with the goal of lowering debt and increasing savings, share their

experience and lessons online and on TV so thousands of others can be inspired to make changes in their own

financial lives.

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Doing our part to improve our community is a value rooted in the core of the credit union difference – people helping people. And at Summit, we want our communities to experience and benefit from that philosophy firsthand through employee volunteer efforts and our partnerships with local charities.

IN 11 PROJECT MONEY SEASONS, 44 PARTICIPANTS

Increased their savings $450,981Decreased their debt $481,181

Why Summit?We Give Back

In 2019, Summit Credit Union…• Donated to 253 nonprofits

• Celebrated Summit Fest and our annual meeting with 2,300 attendees

• Provided $24,000 in scholarships to students for continuing education

• Employees (227) logged more than 1,870 hours of volunteer time ($47,554 value back to nonprofits in our communities)

• Employees volunteered 106 hours with Second Harvest = 7,638 meals

• Employees gave 66 units of blood at two onsite blood drives (saved as many as 198 lives)

• Hosted our 9th annual Co-op Connection with 13 cooperatives and over 2,200 guests

CO

-O

P CONNECTION

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2,850 CUPCAKES EATEN

$245 DONATED TO SUMMIT’S MONEY SMARTS FUND

SUMMIT’S GLOBAL GOOD CREDIT CARDIt’s not every day you get the chance to make a big difference in someone else’s life by making a small change to your own. By switching to Summit’s Global Good Card,® your purchases help fund the World Council of Credit Unions (WOCCU) to impact other people’s lives.

Summit Global Good Cards872 OPENED IN 2019

$37,295 DONATED IN 2019

2,315 ACTIVE CARDS

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Running our business in a sustainable, earth-friendly way isn’t something that’s “nice” to do – it’s something that speaks to the very heart of our commitment to our members and to our community.

We’re working to live more lightly on our planet by:• Supporting local energy efficiency by providing consumers over

$3.5 million in energy-efficiency solar loans since March of 2011 through programs in partnership with Milwaukee and Madison.

• Implementing sustainable practices at our branches and offices.

• Providing employees access to Community Supported Agriculture with onsite pick up for the sixth year in a row.

• Participating in sustainable organizations like Sustain Dane and Green Masters Program, earning the Green Professional Designation from Green Masters Program.

Green highlights of our headquarters, completed in 2019

We applied for LEED Silver Certification.

Our sustainable prairie landscaping requires little mowing or maintenance, no fertilizer or pesticides, is drought resistant, consumes less water and promotes a healthy ecosystem.

We have energy efficient lighting and flooring.

Our 17,500 gallon rainwater harvest cistern captures rain water for irrigation.

Most of the roof is reflective, lessening heat absorption.

We have six plug-in and four solar-powered car chargers available to members and employees.

Why Summit?We’re Living & Working Green

GREEN BY THE NUMBERS IN 2019SHRED FEST

14.5 tons of paper, 1,000 cars/membersE-RECYCLING

1,241 lbs of Summit employee e-recycling

PLASTIC BAG DRIVES 3 plastic bag drives from 14 branches

2 cars full of bags for the Fritz Food Pantry at Goodman Community Center

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TREASURER’S REPORTDAN KAISER, TREASURER

Summit Credit Union achieved significant growth and financial progress in 2019. Among the highlights were:

• Total assets grew by $465 million, to $3.69 billion. Our annual growth rate of assets was 14%.

• Member savings increased by $393 million, to $2.74 billion, for an annual growth rate of 17%. Member certificates along with money market balances grew the fastest.

• Loans outstanding to members grew by $161 million, or 6%. Our fastest-growing loan categories were home equity loans, vehicle loans, mortgage loans and business loans.

Our 2019 growth rates were higher than the average growth rates for credit unions nationwide. Our growth reflects our commitment to member service as well as our continuing efforts to offer rates and fees that are among the most attractive in our market areas.

The credit union earned $183 million in total revenue during 2019. Our largest revenue source is interest earned on loans to members.

Our revenue was used to pay dividends on member accounts and also operating expenses incurred in providing services to members. Our 2019 operating expenses were smaller than what is typical for a credit union our size, and that efficiency allows us to return more to members while also building our capital base. Our credit union earned $44 million in net income after expenses, which was added to the credit union’s capital or net worth to provide additional financial stability and to fund future growth.

Our ratio of net worth to total assets stood very strong at over 11.6% on December 31, 2019. Summit Credit Union is well-positioned to continue providing high quality, affordable financial services to its members from a foundation of sound financial management.

In 2019Total assets grew to

$3.69 BILLIONMember savings increased to

$2.74 BILLIONLoans to members grew to$2.92 BILLION

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2019 2018INTEREST INCOMEInterest on Loans $ 125,239,554 $ 104,965,835

Interest on Investments 8,450,249 6,164,236

Total Interest Income 133,689,803 111,130,071

INTEREST EXPENSEMembers’ Share and Savings Accounts 20,367,196 11,097,255

Borrowed Funds 12,705,770 8,617,405

Total Interest Expense 33,072,966 19,714,660

NET INTEREST INCOME 100,616,837 91,415,411

PROVISION FOR LOAN LOSSES 7,965,000 10,576,000

NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 92,651,837 80,839,411

NON-INTEREST INCOMEService Charges and Fees 12,309,454 11,571,907

Other Non-Interest Income 25,045,477 24,404,172

Mortgage Servicing Rights Income 4,761,594 2,213,344

Net Gain on Sales of Loans 7,435,578 4,171,133

Net Gain on Sales of Investments — 13,807

Other Non-Operating Income 17,721 17,721

Total Non-Interest Income 49,569,824 42,392,084

NON-INTEREST EXPENSE General and Administrative

Employee Compensation and Benefits 48,838,984 42,894,984

Office Occupancy & Operations 28,659,063 23,135,590

Other Operating Expenses 19,729,945 18,179,212

Net Loss on Sale of Fixed Assets 4,377 59,857

Net (Gain) Loss on Sale of Foreclosed Assets 89,530 (168,399)

Other Non-Operating Expense 1,198,395 —

Total Non-Interest Expense 98,520,294 84,101,244

NET INCOME $ 43,701,367 39,130,251

INCOME STATEMENT FOR THE YEARS ENDING DECEMBER 31, 2019 & 2018

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2019 2018ASSETSCash and Cash Equivalents $ 398,733,125 $ 98,900,530 Deposits in Other Financial Institutions 20,945,011 37,703,010 Securities - Available for Sale 137,773,003 153,191,664 Other Investments 18,115,413 17,675,968 Loans Held for Sale 20,291,943 4,958,745 Loans, Net 2,923,045,496 2,762,754,341 Accrued Interest Receivable 7,859,830 7,047,457 Foreclosed and Repossessed Assets 843,547 990,160 Property and Equipment, Net 123,475,834 104,708,042 NCUSIF Deposit 24,061,444 22,225,642 Mortgage Servicing Rights 7,798,765 6,243,575 Other Assets 6,660,984 7,771,089

Total Assets $ 3,689,604,395 $ 3,224,170,223

LIABILITIESMembers’ Shares and Savings Accounts $ 2,741,216,069 $ 2,347,944,412 Borrowed Funds 480,500,000 459,621,358 Accrued Expenses & Other Liabilities 44,054,096 38,308,830 Total Liabilities 3,265,770,165 2,845,874,600

MEMBERS’ EQUITYRegular Reserves 26,984,573 26,984,573 Undivided Earnings 397,284,647 353,583,280Accumulated Other Comprehensive Loss (6,435,040) (8,266,353)Acquired Equity 6,000,050 5,994,123

Total Members’ Equity 423,834,230 378,295,623 Total Liabilities & Members’ Equity $ 3,689,604,395 $ 3,224,170,223

STATEMENT OF FINANCIAL CONDITION AS OF DECEMBER 31, 2019 & 2018

RISK MANAGEMENT COMMITTEE REPORTSummit Credit Union’s Risk Management Committee engaged the firm of CliftonLarsonAllen to audit the Credit Union as of December 31, 2019. They concluded that the financial statements present fairly the results of Summit’s operations and its financial position according to generally accepted accounting principles as an unmodified opinion. A copy of this audit report is available upon request.

Risk Management Committee Members:Dennis Sauey, Board Director Mark Molitor, Committee MemberMary Turke, Board Secretary Alan Schecher, Committee Member Charlie Murty, Committee Member

Senior Management

KIM SPONEMCEO & President

REBECCA GEROTHANASChief Operations Officer

CHRIS HEFTERChief Information Officer

NANCY KASTENSenior VP Human Resources & Organizational Development

CHRIS SCHELL Chief Marketing Officer

© 2020 Summit Credit Union.

SummitCreditUnion.com800-236-5560 | 608-243-5000

KEITH PETERSONChief Financial Officer

DON LICKELChief Lending Officer