Determination of a Quorum

Call to Order

Pledge of Allegiance

InvocationDr. Tony C. Diaz , Vice-Chairperson

CCATCU Board of Director

Nominating Committee ReportArturo Delgado, Chairperson

CCATCU Board of Director

Vice-Chairperson’s RemarksDr. Tony C. Diaz

Audit ReportDr. Lynda DeLeon

Director

Scholarship Committee ReportDr. Jose Cavazos, Jr.

Chairperson

President’s RemarksGina K. Prince, CCUE, CCUFC, CCUERMS, CCSAS

President

Preferred Partner Recognition Employee of the YearVolunteer of the Year

Gina K. Prince, CCUE, CCUFC, CCUERMS, CCSASPresident

New Business

Adjournment

81st Annual MeetingApril 11, 2017

REPORT FROM THE TREASURER AUDIT REPORTThe Board of Directors of Coastal Community And Teachers Credit Union is responsible for the audit of business transactions of the Credit Union as well as reviewing accounts, records, cash and securities. To aid in the audit of the Credit Union’s operations, records, and financial statements for the year ended, December 31, 2016, the Board of Directors retained Harold Antao & Company, LLC. The annual Statement of Financial Condition and the Income Statement are printed in your annual report. CCATCU ended the year with assets of $283,878,002.

Javier H. Leal,Treasurer

The Board of Directors has completed their duties with regard to the audit of the books and records of Coastal Community And Teachers Credit Union for the year ended December 31, 2016. The services of Harold Antao & Company, LLC were retained. The audit included an examination or test of the accounting records, loan documents and other supporting evidence, as well as a general review of the system of internal controls. The findings of the audit substantiate the accuracy of the reported Financial Statements, and a detailed written report was forwarded to the Board of Directors.

Eduardo TorresChairpersonBoard of Directors

Report from the Chairperson and the President 81st Annual Meeting 2017

Your Community Partner dedicated toforming a positive change in people’s lives.

REV I EW OF 20 16

Loan growth in 2016 was 12.12% exceeding $21 million for the year. Asset growth was maintained during 2016. Members are keeping their deposits readily available so they can take advantage of interest rates if and when they rise.

The oil industry has not rebounded in 2016. The members have unexpected situations arising including job loss, medical situations and reduced hours. The local opportunity for jobs exists in the construction area; therefore, many individuals are changing careers.

The members of Coastal Community And Teachers Credit Union were paid over $1.4 million in dividends in 2016. The Bonus Checking account continues to pay 3.50% annual percentage rate if members meet the qualifying criteria within the cycle period.

One of the main projects in 2016 was the launch of e-Commerce items known as POP Money and Remote Deposit Capture. With the addition of these items, Coastal Community And Teachers Credit Union is very competitive.

NOW TO 20 17For 2017, your credit union will focus on educating members of our credit union and our communities. Predatory lending (such as finance companies and payday lenders) is at an all-time high and does not benefit the consumer. Payday loans cause individuals to get in a cycle that spirals out of control. Finance companies are not regulated as financial institutions are and a person can easily be charged interest well over 300%.

Your credit union will partner with YOU – an individual AND business to bring education to the consumer. What better way to reduce stress but to be educated and set your own self-improvement plan for 2017.

We highly encourage all of our members and future members to consider their financial picture and make Coastal Community And Teachers Credit Union your primary financial institution. Our success is due to the members who deposit their funds and members who borrow – this is truly the cooperative effort and the premise of the credit union industry.

Your credit union remains strong and solid. Our Board of Directors, Management and Staff thank you for your business. We look forward to partnering with you to grow our organization.

Report from the Chairperson and the President 81st Annual Meeting 2017

Your Community Partner dedicated toforming a positive change in people’s lives.

Our culture within Coastal Community And Teachers Credit Union is one that offers individuals options to better their financial situation. Education is key to helping members

improve their credit score, eliminate high interest credit card balances, lower their monthly payments and protect them against predatory lenders.

We have helped many and this niche is one that makes your credit union stand out in the community. We recently helped one member who had a high 600 credit score but had been charged an 18% interest rate on her auto. We lowered her payment by $130 a month and shortened the term by 12 months. This was a total savings of over $7,825.

“We Change Lives!”

2016 2015

INTEREST REVENUEInterest on Loans $10,479,241 $8,753,354

Interest on Investments 562,066 966,640 and Certificates of Deposit

OTHER REVENUEFees 4,429,802 4,420,744

Gain (Loss) on Disposition of Assets 0 238

Gain (Loss) on Investments (6,181) 86,601

Non-Operating Gain or Loss 0 0

Extraordinary Gain (Loss) 0 0

Non-Operating Income 512,280 0

Other 1,073,833 767,614

TOTAL REVENUE $17,051,041 $14,995,191

DIVIDEND EXPENSE

Dividends on Deposit Accounts 1,498,069 1,606,880

Interest on Borrowed Money 0 0

TOTAL DIVIDENDS $1,498,069 $1,606,880

NET REVENUE $15,552,972 $13,388,310

Provision for Loan/Acct Losses 4,690,792 4,421,000

Interest on Borrowed Money 0 0

NET REVENUE BEFORE $10,862,180 $8,967,310 OPERATING EXPENSES

OPERATING EXPENSES

Compensation & Benefits $4,331,975 $4,489,469

Office Occupancy 652,493 634,423

Data Processing 807,973 820,333

Office Operations 1,362,494 1,602,037

Other 2,764,876 2,109,765

Member Insurance 0 0

TOTAL OPERATING EXPENSES $9,919,811 $9,656,027

NET INCOME $942,369 ($688,716)

2016 2015ASSETS

Cash $26,872,361 $22,828,307

Investments 36,429,228 61,898,266

Loans to members, net of allowance for loan loss 195,612,051 175,113,541

Note Receivable 0 0

Accrued Interest Receivable 0 0

Fixed Assets 5,243,494 5,533,941

National Credit Union Share Insurance Fund (NCUSIF) 2,445,212 2,422,346

Other Real Estate 0 0

Other Assets 16,961,816 15,202,401

TOTAL ASSETS $283,564,163 $282,998,801

LIABILITIES AND RETAINED EARNINGS

Note Payable $0 $0

Dividend Payable 0 0

Other Liabilities 2,093,341 2,209,656

TOTAL LIABILITIES $2,093,341 $2,209,656

Deposit Accounts 255,344,467 255,771,803

Regular Reserves 5,508,821 5,508,821

Undivided Earnings 24,101,526 23,163,314

Comprehensive Income (3,007,634) (2,876,354)

Unrealized Gain (Loss) on AFS (480,515) (778,438)

TOTAL LIABILITIES & EQUITY $283,564,163 $282,998,801

Membership: 35,727 36,661

STATEMENT OF COND IT IONSDECEMBER 3 1 , 20 16 & 20 15

STATEMENT OF EARN INGS YEARS ENDEDDECEMBER 3 1 , 20 16 & 20 15

*Updated Financial Statement (April 2017)

DETERMINATION OF A QUORUM:Santana stated that a minimum of 25 members had indicated their presence by signature, constituting a quorum and,

therefore, a legal meeting.

CALL TO ORDER:The 80th Annual Meeting of Coastal Community And Teachers Credit Union was called to order by Judge Henry Santana, Chairperson of the Board of Directors, at 7:00 p.m., April 5, 2016, at West Oso Junior High School in Corpus Christi,

Texas, Nueces County.

PLEDGE OF ALLEGIANCE:

Santana asked everyone to rise and join

him in the Pledge of Allegiance.

INVOCATION:

Dr. Tony Diaz, Board of Director, gave the

invocation.

WELCOMING REMARKS AND

INTRODUCTIONS:Santana welcomed all in attendance. He announced that $4,000 would be given away in cash prizes. He extended a special thank you to the West Oso ISD administration and staff for the use of their facility. He recognized any charter members, past board members and school board members present. He introduced himself and the Board of Directors: Eduardo Torres, Vice-Chairperson; Ken Combs, Secretary; Javier Leal, Treasurer; Dr. Jose Cavazos, Parliamentarian; Dr. Lynda DeLeon, Arturo Delgado, Dr. Tony Diaz, and Dr. David Hinojosa. He also introduced Gina Prince, President; Lisa Valdez, Executive Secretary; and John Bell, Attorney at Law,

who served as Parliamentarian.

NOMINATING COMMITTEE REPORT:Santana, Chairperson of the Nominating Committee, stated that the Nominating Committee consisted of those members of the Board of Directors whose positions were not open for election in 2016. The Nominating Committee met and validated each applicant’s qualifications.

The three applicants placed into nomination by the Nominating Committee were: Dr. Jose Cavazos, Dr. Tony Diaz, and Arturo Delgado.

Santana added that all nominees were informed of the duties and responsibilities of board members. As required by the bylaws, there were no petition candidates, therefore, he declared the nominees elected by acclamation since there was only one candidate for each position.

Santana added we have two grand prize amounts that will be awarded - $200 each, we will draw both tickets now; however, we are not going to announce the winners until the end of the meeting. Each prize drawn will be at least $50. In the total we will be giving away 50 prizes totaling $4,000.

Delgado and DeLeon drew the two grand prizes to be given at the end of the

meeting, and announced prizes #3-15.

APPROVAL OF MINUTES:Ken Combs, Secretary of the Board of Directors, welcomed everyone to the 80th Annual Meeting and referred attendees to the minutes printed in their entirety

in the brochure.

MOTION TO APPROVE MINUTES: Motion by LUCY RUBIO seconded by MARIA DIAZ to approve the minutes as presented. MOTION CARRIED.

CHAIRPERSON’S REPORT:Santana recognized Prince for her leadership and loyalty. He spoke about Prince’s advancement within the Credit Union until she became President, the growth the Credit Union has experienced during her tenure as President, and her loyalty to the Credit Union. Santana recognized our members in trusting us and having faith in the members who have been by our side to help us grow for 80 years. Santana recognized credit union employees and Prince on 80 years of success. Santana says this credit union

will continue to grow.

AUDIT REPORT:Javier Leal, Treasurer of the Board of Directors, referred everyone to the Statement of Financial Condition and Statement of Income and Expenses printed in the annual report.

SCHOLARSHIP COMMITTEE REPORT:

Dr. Jose Cavazos, Chairperson of the Scholarship Committee, introduced the members of the 2015 Scholarship Advisory Committee: Margaret Deville, Betty Jean Longoria, Sheila Mulligan, Elvia Navarre, Ignacio Ramos, and Lavonne Spears. Cavazos stated that the Scholarship Committee consisted of the Board of Directors. Eight scholarships were awarded as evidence of the Credit Union’s on-going promotion and support of higher education. The Scholarship Committee reviewed 68 applications before selecting eight winners. The recipients of CCATCU’s 2015 scholarships were: Justin Ciseneros, Jordyn Deases, Gilbert DeLeon, Aurora Gomez, Denise Hernandez, Gabriela Navarez, Myrna Simms and Crystal Vasquez. Cavazos congratulated all of the scholarship recipients and wished them the best of luck in their future endeavors.

Cavazos also stated that the applications for the 2016 scholarships were due at the Credit Union by April 8th of this year. The early deadline allows us to announce the winners prior to the high school winners possibly leaving for school. We wanted to honor these special individuals with special recognition. The Scholarship Committee awards the eight $1,000 scholarships in the following categories: six awards to high school graduates (including GED students) planning to attend a college, university or trade school and two awards to students working toward their undergraduate degree. The announcement of the recipients will be in our next quarterly newsletter and posted on our website. Cavazos wished them good luck in pursuing their college education.

Santana and DeLeon awarded #16-26 for

the list of door prizes.

COASTAL COMMUNITY AND TEACHERS CREDIT UNION80th ANNUAL MEETING MINUTES

APRIL 5, 2016 - 7:00 PM

PRESIDENT’S REPORT: Prince welcomed everyone to our 80th Annual Meeting and thanked them for being in attendance. Please review the President and Chairperson’s report in the Annual Report you received this evening. In 2014, we began a transformation of our organization from order-takers to being your Financial Solutions Partner. During 2015, we saw an increase in the business as a result of this culture change which includes the fact that we look at your entire situation and help you financially whether it is by combining loans or reviewing your credit score to give you a road map to your financial future. I am proud to say recently we had a post on our Facebook page by our Training/Development Officer – Stephanie – it was a young man, John, who came to see us and we gave him the financial advice of his life – his credit score improved 124 points in 4 months – now he is the proud owner of a vehicle and received the rate he deserves – originally his interest rate was 15%, now he was offered a rate as low as 4% - this interest rate difference equals a savings of $6,400 over the life of his loan – this is what we do – in response to that post – there were more than 58 comments – “how can you help me” – “what do I need to do” – this post was liked by more than 200 people – it was shared more than 26 times – there were 58 comments and more than 31 responses – consumers are wanting more financial education and they want to become financially fit – we are changing lives and this, in turn, has helped us become your financial partner. We help individuals Raise their credit score, Lower their monthly payments, Eliminate their high interest rate credit card balances and Protect them from predatory lending – that’s right 200-300% interest rates offered by payday loan companies and finance companies – we are the alternative and we are here to provide that resource. We are no longer order takers! Another change in 2015 was the upgrade of our technology – how excited I am to announce our technology is FREE, user friendly and right at your fingertips – our mobile app is a great tool – FREE

– you can transfer money to accounts at the credit union right from your mobile app – not just your accounts but others – like your children – you can have text messages set to alert you of large withdrawals, low balances – what a life saver and it can also alert you to activity that maybe shouldn’t be going on in your account – then you can alert us – e-statements are right there now on the internet banking site – no longer do you have to visit two different sites – we have Finance Works – a budgetary tool – I know sometimes we don’t like to know where our money goes but it is user friendly – FREE – and available right on the main page. We have FREE bill pay – our board of directors elected to eliminate that fee in 2015 – we want you to use our services – we want to encourage you to browse in our internet banking site – see what wonderful things are offered to make your life easier. Prince asked the staff to stand – our staff accumulated over 1,100 community service points in 2015. We are a community credit union and it is important to support our communities in which we operate. We have previously recognized our staff and thanked them for their tenure, we awarded Perfect Attendance and Volunteer of the Year – tonight, though we have saved the Employee of the Year to be announced shortly. What we do (our niche) that makes us stand out from other financial institutions – our staff listens to your needs, we consider your entire financial situation, we offer a match or beat interest rate program, we offer a checking account where you may be paid interest up to 3.50% APR and receive up to $25 in monthly ATM refunds and we have a member referral program whereas you will receive a $100 incentive if you refer a loan of $10,000+ and the loan closes. Now – what other financial institution does that – we do this because WE ARE YOUR FINANCIAL PARTNER. Thank you for being here this evening and thank you for being OUR MEMBERS.

CREDIT UNION REPRESENTATIVE RECOGNITIONS:Prince recognized the Credit Union

Representatives, a growing group of individuals who are the credit union’s advocates, they promote the credit union in schools or organizations. A pin is designated to honor these individuals for their years of service. For five years of service: Manuel Castillo, Lydia Espino, Margie Franco, Julee Murphy and Rosie Reyna; for ten years of service: Brenda Garcia, Diana McCurry and Yvette Sosa; for fifteen years of service: Nelda Cummings, Frank Reyna and Mariann Robert; for thirty-five years of service: Sylvia Vanderburg and for forty years of service: Naida Vela. Prince thanked all the Credit Union Representatives for their dedication to the Credit Union.

STAFF RECOGNITIONS:Prince recognized the staff and thanked them for the Annual Meeting set-up and thanked them for their efforts and for being an asset of our organization. Prince introduced the Credit Union Management: Rosie Botello, VP-Member Services and Administrative Services; Jim Bounds, VP-Operations; Missy Garcia, VP-Human Resources; Paula Garza, SVP – Accounting and Financial Services; Sara Garza, VP-Accounting; Lisa Marroquin, VP-Lending; and Leanne Mulholland, VP-Teller & Branch Operations.

Prince recognized the 2015 Employees of the Quarter: Michelle Tillman, Call Center; Odilia Villegas, Alice Branch; Valerie Devlin, Financial Services Partner and Willie Rodriguez, Loan Officer. The employee of the year was announced: Willie Rodriguez. Prince recognized all the previous Employees of the Year.

Santana announced prizes #27-50 from the list of door prizes.

NEW BUSINESS:Santana asked for any new business. There was none.

Santana awarded the two $200 grand prize winners.

Santana thanked everyone for

attending the meeting.

ADJOURNMENT:

The meeting adjourned at 8:13 p.m.

Aceves, Alexandra MarieAdams, Lisa Jordan

Aguirre, Edward DouglasAlexander, Janis Leanne

Alvarado, MarisaAmaya, Monica

Atteberry, Vanessa GAumada, Kathy Rodriguez

Avalos, Pamela MarieBazan, Melissa

Benavides, Sandra HBenavidez, Brittney

Blancas, Gabriel ArmandoCaldera, Megan

Candelaria, KimberlyCantu, Norma

Cantu, Sabrina MayCarrizalez, Maria

Castro, JewelzChavez, Marc A

Escobar, DiamondEstrada, NicholasFigueroa, Brenda

Galvan, Alena LGarcia, David MGarcia, MichelleGarcia, PriscillaGarcia, Rayah

Garza, EzraGarza, Hailie Marie

Gonzales, ValerieGonzales, YvonneGonzalez, Kristy E

Gonzalez, Vanessa RGreer, Calvin

Gross, RebeccaGuerra, Rebekah

Hernandez, Evelin LugoHernandez, Zamira

Iles, LucindaJackson, Lyndsay

Lopez, YvonneLyons, AudreyMarquez, Iris

Martinez, MariaMartinez, May

Martinez, Rebecca C.Mata, Deanna G.Metting, JustinMills, Candice

Molina, Arianna IleneMoreno, Monica C

Morin, EsterMunoz, Maritza

Munoz, Rebekah ENava, Monica

Nuncio, Sonia MOchoa, Diana

Olivarez, Moriah KellyOlmeda, MelissaOnwiler, CarolynPadron, Chelsea

Palomino, VerenicePerez, Angel Denise

Phelps, Marcelline JoycQualls, Elodia AnnRamos, KellieRae

Reyes, Clara EReyna, Christina

Rice, KathyRivas, EdwardRocha, Larissa

Rodriguez Jr, William DavidRodriguez, Mary Lamar

Rose, Angelic GenevieSanchez, Andree

Scott-Stovall, TanecaSerna, Nicole

Simmons, Maria CSimmons, Yvonne

Suarez, GracieTapia, Rosalinda MTillman, MichelleTorres, Claudia R

Torres, MonicaTraynor, Maria

Trevino, Esperanza DValdez, AshleyValerio, Laura

Vasquez, AngeliaVasquez, Ashley R

Villegas, OdiliaYbanez, Gina Marie

OfficersDeLaGarza, Lisa • Harrell, Sondra • Prado, Stephanie

CREDIT UNION PERSONNEL

PresidentPrince, Gina

Vice PresidentsBotello, Rosa Linda

Garcia, Missy Garza, PaulaGarza, Sara

Marroquin, LisaMulholland, Leanne

BOARD OF DIRECTORS TERM EXPIRES

Eduardo Torres, Chairperson 2017

Dr. Tony C. Diaz, Vice-Chairperson 2019

Ken Combs, Secretary 2018

Javier Leal, Treasurer 2018

Dr. Jose Cavazos, Jr., Parliamentarian 2019

Dr. Lynda DeLeon 2017

Arturo Delgado 2019

Dr. David Hinojosa 2017

Judge Henry A. Santana 2018

Gutierrez, Crystal ReneeJenkins, Juliane M

Jenkins, PatriciaLongoria, AmandaLopez, Solomon OMartinez, Judith

Martinez, Leslie LashayMaxwell, JulieOrosco, Laura

Pacheco, RoxanneSaenz, EsperanzaSoliz Jr, Randy L

Spears, LavonneTaylor, Julia Anne

Vasquez Jr, LibradoValdez, Lisa

2016 Employees

Supervisors