REPORT TO MEMBERS

Thanks to you, our valued members, 2018 was a year filled with

exciting changes and growth for VyStar. Your credit union continued its

strong financial performance and steady growth in membership, loans

and deposits.

Our net income for 2018 was a record $80.4 million, which was

32.2% greater than 2017. Our net worth ratio was 8.70%, which is

considered strong by the National Credit Union Administration (NCUA).

A credit union is considered well capitalized if they have over a 7%

net worth.

One of VyStar’s objectives is to always be a recognized and reliable

borrowing source. During 2018, we disbursed over $1.9 billion in loans

to our members and business members, helping them buy autos and

homes, purchase business properties and refinance existing higher-rate

mortgages, business properties and other loans. In 2018, net loans to

members—including mortgage, automobile, credit card and business

loans—reached almost $5.7 billion. Total mortgage loans were $2.5

billion—an increase of 5.9% over 2017—making VyStar the second

largest mortgage lender by volume in Northeast Florida according to

the July 20, 2018, edition of the Jacksonville Business Journal.

Member growth remained strong in 2018. By the end of the year,

VyStar was serving 643,809 members with assets of almost $8.3

billion and managed investments of $680.6 million through VyStar

Investment Services.

VyStar was also keenly focused on making a wide variety of exciting,

innovative and impactful changes to even better serve our members,

employees and communities.

“Believe in Better”VyStar launched the “Believe in Better” program, a series of

improvements that were designed to enhance VyStar’s products, services

and member experience. Showing our true commitment to our tagline,

“We never forget that it’s your money,” our credit union set the following

changes into motion for our members:

BOARD OF DIRECTORS

Eric J. HatfieldCHAIRMAN

George R. BerryVICE CHAIRMAN

P. Kem SiddonsTREASURER

William C. VivianSECRETARY

Jonathan HoganDIRECTOR

Jennifer A. LuskDIRECTOR

Larry D. MyersDIRECTOR

Dr. Susan M. RuffinDIRECTOR

Ralph R. StoryDIRECTOR

P.O. Box 45085Jacksonville, Florida 32232-5085

(904) 777-6000 • 1 (800) 445-6289vystarcu.org

AUDIT COMMITTEE

Jonathan HoganCHAIRMAN

Jennifer A. LuskVICE CHAIRMAN

Victor BlackshearRussell F. MisnerDiana Wendland

EXECUTIVE OFFICERS

Brian E. WolfburgPRESIDENT & CHIEFEXECUTIVE OFFICER

Chad MeadowsEVP/ CHIEF OPERATIONS OFFICER

John H. TurpishEVP/ CHIEF FINANCIALOFFICER

©2019 VyStar Credit Union

Safety, Soundness and Security ReportFrom VyStar Credit Union’s Audit Committee

It is the opinion of the Audit Committee of VyStar Credit Unionthat the current fnancial operation, established internal controlsand procedures of VyStar are sound. This opinion is based on theresults of the audits performed by external auditors, Nearman,Maynard, Vallez, CPAs, our Internal Audit Department, as well asexaminations performed by our State and Federal Examiners.

Jonathan HoganAUDIT COMMITTEE CHAIRMAN

• Extended Call Center Hours: Members can now access VyStar’s

Call Center and VyChat representatives for assistance every day

of the week, from 7:00 a.m. to 7:00 p.m., excluding holidays.

• Fewer Fees: Over half of our fees were lowered or eliminated in

2018, saving members more than $1 million annually, in addition

to the millions we already save them every year.

• Extended Nationwide Network of Surcharge-Free ATMs: Members

can now use their debit or ATM cards at more than 20,000

surcharge-free ATMs across North America, so your money is

always within reach—wherever and whenever you need it.

• Enhanced Business Services Offerings: Our business mortgage

product line was relaunched to better serve our business members.

• Makeover of VyStar Branches and ATMs: During the year, we

upgraded our landscaping, signage and ATMs at our branches

and added technology packages to each branch to enhance

member service.

New and Improved Employee BenefitsWe further improved VyStar’s already competitive employee offerings to

help achieve the goal of making VyStar the best place to work—in not

only Jacksonville, but the entire state of Florida. In October 2018, we

announced an extensive set of new and improved benefits that were

rolled out to our employees as of January 1, 2019, including:

• $15 full-time minimum wage + bonus opportunity

• Parental/family care leave

• Child adoption assistance

• Student loan payoff assistance

• Extra paid time off

• New/free medical insurance options

• Improved 401(k) benefits

• Tuition assistance, and much more

VyStar TowerBeing the best place to work isn’t just about offering great benefits to

employees. It’s also about providing them with a comfortable workspace

that supports their efforts, inspires creativity and fosters opportunity for

growth. For this reason, during the summer of 2018, we showed our

THANK YOU FOR BEING A VALUED

MEMBER OF VYSTAR CREDIT UNION.

ANNUAL REPORT 2018

BOARD OF DIRECTORS

Eric J. HatfieldCHAIRMAN

George R. BerryVICE CHAIRMAN

P. Kem SiddonsTREASURER

William C. VivianSECRETARY

Jonathan HoganDIRECTOR

Jennifer A. LuskDIRECTOR

Larry D. MyersDIRECTOR

Dr. Susan M. RuffinDIRECTOR

Ralph R. StoryDIRECTOR

P.O. Box 45085Jacksonville, Florida 32232-5085

(904) 777-6000 • 1 (800) 445-6289vystarcu.org

AUDIT COMMITTEE

Jonathan HoganCHAIRMAN

Jennifer A. LuskVICE CHAIRMAN

Victor BlackshearRussell F. MisnerDiana Wendland

EXECUTIVE OFFICERS

Brian E. WolfburgPRESIDENT & CHIEFEXECUTIVE OFFICER

Chad MeadowsEVP/ CHIEF OPERATIONS OFFICER

John H. TurpishEVP/ CHIEF FINANCIALOFFICER

©2019 VyStar Credit Union

Safety, Soundness and Security ReportFrom VyStar Credit Union’s Audit Committee

It is the opinion of the Audit Committee of VyStar Credit Unionthat the current fnancial operation, established internal controlsand procedures of VyStar are sound. This opinion is based on theresults of the audits performed by external auditors, Nearman,Maynard, Vallez, CPAs, our Internal Audit Department, as well asexaminations performed by our State and Federal Examiners.

Jonathan HoganAUDIT COMMITTEE CHAIRMAN

• Extended Call Center Hours: Members can now access VyStar’s

Call Center and VyChat representatives for assistance every day

of the week, from 7:00 a.m. to 7:00 p.m., excluding holidays.

• Fewer Fees: Over half of our fees were lowered or eliminated in

2018, saving members more than $1 million annually, in addition

to the millions we already save them every year.

• Extended Nationwide Network of Surcharge-Free ATMs: Members

can now use their debit or ATM cards at more than 20,000

surcharge-free ATMs across North America, so your money is

always within reach—wherever and whenever you need it.

• Enhanced Business Services Offerings: Our business mortgage

product line was relaunched to better serve our business members.

• Makeover of VyStar Branches and ATMs: During the year, we

upgraded our landscaping, signage and ATMs at our branches

and added technology packages to each branch to enhance

member service.

New and Improved Employee BenefitsWe further improved VyStar’s already competitive employee offerings to

help achieve the goal of making VyStar the best place to work—in not

only Jacksonville, but the entire state of Florida. In October 2018, we

announced an extensive set of new and improved benefits that were

rolled out to our employees as of January 1, 2019, including:

• $15 full-time minimum wage + bonus opportunity

• Parental/family care leave

• Child adoption assistance

• Student loan payoff assistance

• Extra paid time off

• New/free medical insurance options

• Improved 401(k) benefits

• Tuition assistance, and much more

VyStar TowerBeing the best place to work isn’t just about offering great benefits to

employees. It’s also about providing them with a comfortable workspace

that supports their efforts, inspires creativity and fosters opportunity for

growth. For this reason, during the summer of 2018, we showed our

ANNUALREPORT2018

REPORT TO MEMBERS

THANK YOU FOR BEING A VALUED

MEMBER OF VYSTAR CREDIT UNION.

Thanks to you, our valued members, 2018 was a year filled with

exciting changes and growth for VyStar. Your credit union continued its

strong financial performance and steady growth in membership, loans

and deposits.

Our net income for 2018 was a record $80.4 million, which was

32.2% greater than 2017. Our net worth ratio was 8.70%, which is

considered strong by the National Credit Union Administration (NCUA).

A credit union is considered well capitalized if they have over a 7%

net worth.

One of VyStar’s objectives is to always be a recognized and reliable

borrowing source. During 2018, we disbursed over $1.9 billion in loans

to our members and business members, helping them buy autos and

homes, purchase business properties and refinance existing higher-rate

mortgages, business properties and other loans. In 2018, net loans to

members—including mortgage, automobile, credit card and business

loans—reached almost $5.7 billion. Total mortgage loans were $2.5

billion—an increase of 5.9% over 2017—making VyStar the second

largest mortgage lender by volume in Northeast Florida according to

the July 20, 2018, edition of the Jacksonville Business Journal.

Member growth remained strong in 2018. By the end of the year,

VyStar was serving 643,809 members with assets of almost $8.3

billion and managed investments of $680.6 million through VyStar

Investment Services.

VyStar was also keenly focused on making a wide variety of exciting,

innovative and impactful changes to even better serve our members,

employees and communities.

“Believe in Better” VyStar launched the “Believe in Better” program, a series of

improvements that were designed to enhance VyStar’s products, services

and member experience. Showing our true commitment to our tagline,

“We never forget that it’s your money,” our credit union set the following

changes into motion for our members:

REPORT TO MEMBERS

Thanks to you, our valued members, 2018 was a year filled with

exciting changes and growth for VyStar. Your credit union continued its

strong financial performance and steady growth in membership, loans

and deposits.

Our net income for 2018 was a record $80.4 million, which was

32.2% greater than 2017. Our net worth ratio was 8.70%, which is

considered strong by the National Credit Union Administration (NCUA).

A credit union is considered well capitalized if they have over a 7%

net worth.

One of VyStar’s objectives is to always be a recognized and reliable

borrowing source. During 2018, we disbursed over $1.9 billion in loans

to our members and business members, helping them buy autos and

homes, purchase business properties and refinance existing higher-rate

mortgages, business properties and other loans. In 2018, net loans to

members—including mortgage, automobile, credit card and business

loans—reached almost $5.7 billion. Total mortgage loans were $2.5

billion—an increase of 5.9% over 2017—making VyStar the second

largest mortgage lender by volume in Northeast Florida according to

the July 20, 2018, edition of the Jacksonville Business Journal.

Member growth remained strong in 2018. By the end of the year,

VyStar was serving 643,809 members with assets of almost $8.3

billion and managed investments of $680.6 million through VyStar

Investment Services.

VyStar was also keenly focused on making a wide variety of exciting,

innovative and impactful changes to even better serve our members,

employees and communities.

“Believe in Better”VyStar launched the “Believe in Better” program, a series of

improvements that were designed to enhance VyStar’s products, services

and member experience. Showing our true commitment to our tagline,

“We never forget that it’s your money,” our credit union set the following

changes into motion for our members:

BOARD OF DIRECTORS

Eric J. HatfieldCHAIRMAN

George R. BerryVICE CHAIRMAN

P. Kem SiddonsTREASURER

William C. VivianSECRETARY

Jonathan HoganDIRECTOR

Jennifer A. LuskDIRECTOR

Larry D. MyersDIRECTOR

Dr. Susan M. RuffinDIRECTOR

Ralph R. StoryDIRECTOR

P.O. Box 45085Jacksonville, Florida 32232-5085

(904) 777-6000 • 1 (800) 445-6289vystarcu.org

AUDIT COMMITTEE

Jonathan HoganCHAIRMAN

Jennifer A. LuskVICE CHAIRMAN

Victor BlackshearRussell F. MisnerDiana Wendland

EXECUTIVE OFFICERS

Brian E. WolfburgPRESIDENT & CHIEFEXECUTIVE OFFICER

Chad MeadowsEVP/ CHIEF OPERATIONS OFFICER

John H. TurpishEVP/ CHIEF FINANCIALOFFICER

©2019 VyStar Credit Union

Safety, Soundness and Security ReportFrom VyStar Credit Union’s Audit Committee

It is the opinion of the Audit Committee of VyStar Credit Unionthat the current fnancial operation, established internal controlsand procedures of VyStar are sound. This opinion is based on theresults of the audits performed by external auditors, Nearman,Maynard, Vallez, CPAs, our Internal Audit Department, as well asexaminations performed by our State and Federal Examiners.

Jonathan HoganAUDIT COMMITTEE CHAIRMAN

ANNUALREPORT2018

THANK YOU FOR BEING A VALUED

MEMBER OF VYSTAR CREDIT UNION.

• Extended Call Center Hours: Members can now access VyStar’s

Call Center and VyChat representatives for assistance every day

of the week, from 7:00 a.m. to 7:00 p.m., excluding holidays.

• Fewer Fees: Over half of our fees were lowered or eliminated in

2018, saving members more than $1 million annually, in addition

to the millions we already save them every year.

• Extended Nationwide Network of Surcharge-Free ATMs: Members

can now use their debit or ATM cards at more than 20,000

surcharge-free ATMs across North America, so your money is

always within reach—wherever and whenever you need it.

• Enhanced Business Services Offerings: Our business mortgage

product line was relaunched to better serve our business members.

• Makeover of VyStar Branches and ATMs: During the year, we

upgraded our landscaping, signage and ATMs at our branches

and added technology packages to each branch to enhance

member service.

New and Improved Employee Benefits We further improved VyStar’s already competitive employee offerings to

help achieve the goal of making VyStar the best place to work—in not

only Jacksonville, but the entire state of Florida. In October 2018, we

announced an extensive set of new and improved benefits that were

rolled out to our employees as of January 1, 2019, including:

• $15 full-time minimum wage + bonus opportunity

• Parental/family care leave

• Child adoption assistance

• Student loan payoff assistance

• Extra paid time off

• New/free medical insurance options

• Improved 401(k) benefits

• Tuition assistance, and much more

VyStar Tower Being the best place to work isn’t just about offering great benefits to

employees. It’s also about providing them with a comfortable workspace

that supports their efforts, inspires creativity and fosters opportunity for

growth. For this reason, during the summer of 2018, we showed our

7.58.08.5

700

750

5.5

ASSETS2014 2018201720162015

DEPOSITSAND GROSS LOANS

2014 2018201720162015

NET WORTH2014 2018201720162015

0.00.51.01.5

2.02.53.03.54.04.55.0

DOLL

ARS

(BIL

LION

S)

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

DOLL

ARS

(BIL

LION

S)

0

50

100

150

200

250

300

350

400

450

500

DOLL

ARS

(MIL

LION

S)

550

DEPOSITSLOANS

7.0

6.06.5

600

650

5.5

6.0

Consolidated Statements of Financial Condition December 31, 2018 and 2017 (Dollars in thousands)

ASSETS 2018 2017Cash and cash equivalents $443,388 $890,227Investments Trading 39 62 Available-for-sale 1,793,706 1,079,065 Other 74,602 60,063Loans to members, net 5,642,343 5,033,484Accrued interest receivable 18,072 14,892Property and equipment, net 233,105 151,096National Credit Union Share Insurance Fund deposit 54,102 50,250Other assets 24,819 20,319 Total Assets $8,284,176 $7,299,458

LIABILITIES AND MEMBERS’ EQUITYLiabilities Deposits $5,998,724 $5,404,640 Accrued expenses and other liabilities 87,799 105,816 Borrowed funds 1,487,351 1,152,865Total liabilities 7,573,874 6,663,321Members’ EquityRetained earnings 720,989 640,580Accumulated other comprehensive income (10,687) (4,443)Total members’ equity 710,302 636,137 Total Liabilities and Members’ Equity $8,284,176 $7,299,458

Consolidated Statements of OperationsYears Ended December 31, 2018 and 2017 (Dollars in thousands)

Interest income: Interest on loans $223,815 $190,534 Interest on investments 44,742 27,553 Total Interest Income 268,557 218,087Interest expense: Interest expense on borrowings 29,116 17,215 Interest expense on deposits 37,809 26,976 Total Interest Expense 66,925 44,191Loan loss provision 18,422 19,770 Net Interest Income after Loan Loss Provision 183,210 154,126Non-interest income: Other operating income 117,340 101,136 Income from sold loans 476 395 Non-trading losses (1,487) (21) Losses from foreclosed real estate (57) (667) (Losses) gains from disposal of assets (92) 16 Total Non-Interest Income 116,180 100,859Non-Interest Expenses: Employee compensation and benefts 107,064 90,116 Training, travel and conference expenses 1,197 1,040 Offce occupancy expenses 20,853 16,957 Offce operations expenses 69,814 64,938 Marketing expenses 6,310 4,951 Loan program expenses 3,180 3,071 Professional and outside services 5,333 8,783 State of Florida assessments 639 584 Lobbying contributions 38 38 Miscellaneous operating expenses 4,553 3,698 Total Non-Interest Expenses 218,981 194,176 Net Income $80,409 $60,809

ExpansionIn November and December, VyStar received approval from the Florida

Office of Financial Regulation (FLOFR) to significantly expand our field

of membership, allowing us to serve an additional 27 counties in

Florida and four Georgia counties. We also announced our first merger

and acquisition of Citizens State Bank (CSB), a Florida state-chartered

bank headquartered in Perry, Florida. It will add $280 million in assets

and provide 4 additional branch locations—two in Gainesville and our

first Taylor County branches in Perry and Steinhatchee. We can now

provide membership to anyone who lives or works anywhere in a total

of 49 counties across Central to Northern Florida, including the

Panhandle (Pensacola to Jacksonville) and the entire stretch of Central

Florida (reaching as far south as Melbourne to the east, and across to

Tampa/St. Petersburg on the west) as well as Ware, Charlton, Camden

and Glynn counties in Southeast Georgia. This is a significant milestone

in our vision to bring credit union services to more people.

VyStar also steadily continued its branch expansion plans during 2018,

with new full-service branches opening in Gainesville Oaks, Orange City

and DeLand. We are excited to keep the commitment we made to the

residents and businesses in the Gainesville and Volusia County areas by

continuing to grow in their communities. Additionally, in October, we

held true to our promise of promoting financial education among our

youth by opening our 14th High School Credit Union Branch at Yulee

High School.

None of these exciting changes would be possible without the

backbone of our credit union: our members. Thank you for your

membership, and thank you for continually inspiring us to serve

others and to give the very best of ourselves each day. We never

forget that it’s your money.

Eric J. Hatfield Brian E. Wolfburg

Chairman of the Board President/CEO

commitment to our employees and the greater Jacksonville area by

purchasing the VyStar Tower (formerly known as the SunTrust Tower)

in the heart of Downtown Jacksonville, where we will transition our

headquarters to by the end of 2019. By providing a positive working

environment for the VyStar team, VyStar will continue to attract and

retain a highly skilled and motivated workforce that supports our credit

union’s vision and mission: to bring credit union services to more

people and provide financial service to our members and communities.

Community Service VyStar played an active, hands-on role in supporting various

community organizations and events throughout 2018, such as the

March of Dimes, the United Way of Northeast Florida, the Leukemia &

Lymphoma Society, Youth Crisis Center, Feeding Northeast Florida, the

Clara White Mission’s Mister Rogers’ Sweater Drive, the NAS Jax Air

Show, First Wednesday Art Walk, the Jacksonville Lantern Parade, the

River City Pride Parade, FSCJ Broadway Artist Series and many more.

We also created a new Vice President of Community Engagement and

Sponsorships position so VyStar can even further strengthen our

support and contributions to the communities we serve. VyStar’s

generosity and devotion to community service also extended beyond

VyStar’s field of membership: For example, all proceeds raised at

VyStar’s Downtown Jacksonville parking lot during the Florida vs.

Georgia NCAA football game on October 27th were donated to

Hurricane Michael relief efforts in the Florida Panhandle.

Military Appreciation A vocal supporter of our country’s service men, women and families,

VyStar made strides this September by donating the space and

construction cost necessary to open the first USO PathfinderSM

transition service center in Jacksonville—which is also the first of its

kind to be built in Florida—at VyStar’s Naval Air Station Jacksonville

(NAS Jax) branch. In keeping with our tradition of supporting our troops,

this contribution made by VyStar to the USO Pathfinder program will

help give service members the assistance they need to reintegrate into

civilian life. The 758-square-foot facility serves as a site where

transitioning members can go to work one-on-one with professional

scouts to identify their personal and professional goals, create an action

plan, get access to the resources they need to accomplish their goals

outside of the military, and ensure that their transition is as smooth

and successful as possible.

7.58.08.5

700

750

5.5

ASSETS2014 2018201720162015

DEPOSITSAND GROSS LOANS

2014 2018201720162015

NET WORTH2014 2018201720162015

0.00.51.01.5

2.02.53.03.54.04.55.0

DOLL

ARS

(BIL

LION

S)

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

DOLL

ARS

(BIL

LION

S)

0

50

100

150

200

250

300

350

400

450

500

DOLL

ARS

(MIL

LION

S)

550

DEPOSITSLOANS

7.0

6.06.5

600

650

5.5

6.0

Consolidated Statements of Financial Condition December 31, 2018 and 2017 (Dollars in thousands)

ASSETS 2018 2017Cash and cash equivalents $443,388 $890,227Investments Trading 39 62 Available-for-sale 1,793,706 1,079,065 Other 74,602 60,063Loans to members, net 5,642,343 5,033,484Accrued interest receivable 18,072 14,892Property and equipment, net 233,105 151,096National Credit Union Share Insurance Fund deposit 54,102 50,250Other assets 24,819 20,319 Total Assets $8,284,176 $7,299,458

LIABILITIES AND MEMBERS’ EQUITYLiabilities Deposits $5,998,724 $5,404,640 Accrued expenses and other liabilities 87,799 105,816 Borrowed funds 1,487,351 1,152,865Total liabilities 7,573,874 6,663,321Members’ EquityRetained earnings 720,989 640,580Accumulated other comprehensive income (10,687) (4,443)Total members’ equity 710,302 636,137 Total Liabilities and Members’ Equity $8,284,176 $7,299,458

Consolidated Statements of OperationsYears Ended December 31, 2018 and 2017 (Dollars in thousands)

Interest income: Interest on loans $223,815 $190,534 Interest on investments 44,742 27,553 Total Interest Income 268,557 218,087Interest expense: Interest expense on borrowings 29,116 17,215 Interest expense on deposits 37,809 26,976 Total Interest Expense 66,925 44,191Loan loss provision 18,422 19,770 Net Interest Income after Loan Loss Provision 183,210 154,126Non-interest income: Other operating income 117,340 101,136 Income from sold loans 476 395 Non-trading losses (1,487) (21) Losses from foreclosed real estate (57) (667) (Losses) gains from disposal of assets (92) 16 Total Non-Interest Income 116,180 100,859Non-Interest Expenses: Employee compensation and benefts 107,064 90,116 Training, travel and conference expenses 1,197 1,040 Offce occupancy expenses 20,853 16,957 Offce operations expenses 69,814 64,938 Marketing expenses 6,310 4,951 Loan program expenses 3,180 3,071 Professional and outside services 5,333 8,783 State of Florida assessments 639 584 Lobbying contributions 38 38 Miscellaneous operating expenses 4,553 3,698 Total Non-Interest Expenses 218,981 194,176 Net Income $80,409 $60,809

commitment to our employees and the greater Jacksonville area by

purchasing the VyStar Tower (formerly known as the SunTrust Tower)

in the heart of Downtown Jacksonville, where we will transition our

headquarters to by the end of 2019. By providing a positive working

environment for the VyStar team, VyStar will continue to attract and

retain a highly skilled and motivated workforce that supports our credit

union’s vision and mission: to bring credit union services to more

people and provide financial service to our members and communities.

Community ServiceVyStar played an active, hands-on role in supporting various

community organizations and events throughout 2018, such as the

March of Dimes, the United Way of Northeast Florida, the Leukemia &

Lymphoma Society, Youth Crisis Center, Feeding Northeast Florida, the

Clara White Mission’s Mister Rogers’ Sweater Drive, the NAS Jax Air

Show, First Wednesday Art Walk, the Jacksonville Lantern Parade, the

River City Pride Parade, FSCJ Broadway Artist Series and many more.

We also created a new Vice President of Community Engagement and

Sponsorships position so VyStar can even further strengthen our

support and contributions to the communities we serve. VyStar’s

generosity and devotion to community service also extended beyond

VyStar’s field of membership: For example, all proceeds raised at

VyStar’s Downtown Jacksonville parking lot during the Florida vs.

Georgia NCAA football game on October 27th were donated to

Hurricane Michael relief efforts in the Florida Panhandle.

Military AppreciationA vocal supporter of our country’s service men, women and families,

VyStar made strides this September by donating the space and

construction cost necessary to open the first USO PathfinderSM

transition service center in Jacksonville—which is also the first of its

kind to be built in Florida—at VyStar’s Naval Air Station Jacksonville

(NAS Jax) branch. In keeping with our tradition of supporting our troops,

this contribution made by VyStar to the USO Pathfinder program will

help give service members the assistance they need to reintegrate into

civilian life. The 758-square-foot facility serves as a site where

transitioning members can go to work one-on-one with professional

scouts to identify their personal and professional goals, create an action

plan, get access to the resources they need to accomplish their goals

outside of the military, and ensure that their transition is as smooth

and successful as possible.

Expansion In November and December, VyStar received approval from the Florida

Office of Financial Regulation (FLOFR) to significantly expand our field

of membership, allowing us to serve an additional 27 counties in

Florida and four Georgia counties. We also announced our first merger

and acquisition of Citizens State Bank (CSB), a Florida state-chartered

bank headquartered in Perry, Florida. It will add $280 million in assets

and provide 4 additional branch locations—two in Gainesville and our

first Taylor County branches in Perry and Steinhatchee. We can now

provide membership to anyone who lives or works anywhere in a total

of 49 counties across Central to Northern Florida, including the

Panhandle (Pensacola to Jacksonville) and the entire stretch of Central

Florida (reaching as far south as Melbourne to the east, and across to

Tampa/St. Petersburg on the west) as well as Ware, Charlton, Camden

and Glynn counties in Southeast Georgia. This is a significant milestone

in our vision to bring credit union services to more people.

VyStar also steadily continued its branch expansion plans during 2018,

with new full-service branches opening in Gainesville Oaks, Orange City

and DeLand. We are excited to keep the commitment we made to the

residents and businesses in the Gainesville and Volusia County areas by

continuing to grow in their communities. Additionally, in October, we

held true to our promise of promoting financial education among our

youth by opening our 14th High School Credit Union Branch at Yulee

High School.

None of these exciting changes would be possible without the

backbone of our credit union: our members. Thank you for your

membership, and thank you for continually inspiring us to serve

others and to give the very best of ourselves each day. We never

forget that it’s your money.

Eric J. Hatfield Brian E. Wolfburg

Chairman of the Board President/CEO

Consolidated Statements of Financial Condition December 31, 2018 and 2017 (Dollars in thousands)

ASSETS 2018 2017Cash and cash equivalents $443,388 $890,227Investments Trading 39 62 Available-for-sale 1,793,706 1,079,065 Other 74,602 60,063Loans to members, net 5,642,343 5,033,484Accrued interest receivable 18,072 14,892Property and equipment, net 233,105 151,096National Credit Union Share Insurance Fund deposit 54,102 50,250Other assets 24,819 20,319 Total Assets $8,284,176 $7,299,458

LIABILITIES AND MEMBERS’ EQUITYLiabilities Deposits $5,998,724 $5,404,640 Accrued expenses and other liabilities 87,799 105,816 Borrowed funds 1,487,351 1,152,865Total liabilities 7,573,874 6,663,321Members’ EquityRetained earnings 720,989 640,580Accumulated other comprehensive income (10,687) (4,443)Total members’ equity 710,302 636,137 Total Liabilities and Members’ Equity $8,284,176 $7,299,458

Consolidated Statements of OperationsYears Ended December 31, 2018 and 2017 (Dollars in thousands)

Interest income: Interest on loans $223,815 $190,534 Interest on investments 44,742 27,553 Total Interest Income 268,557 218,087Interest expense: Interest expense on borrowings 29,116 17,215 Interest expense on deposits 37,809 26,976 Total Interest Expense 66,925 44,191Loan loss provision 18,422 19,770 Net Interest Income after Loan Loss Provision 183,210 154,126Non-interest income: Other operating income 117,340 101,136 Income from sold loans 476 395 Non-trading losses (1,487) (21) Losses from foreclosed real estate (57) (667) (Losses) gains from disposal of assets (92) 16 Total Non-Interest Income 116,180 100,859Non-Interest Expenses: Employee compensation and benefts 107,064 90,116 Training, travel and conference expenses 1,197 1,040 Offce occupancy expenses 20,853 16,957 Offce operations expenses 69,814 64,938 Marketing expenses 6,310 4,951 Loan program expenses 3,180 3,071 Professional and outside services 5,333 8,783 State of Florida assessments 639 584 Lobbying contributions 38 38 Miscellaneous operating expenses 4,553 3,698 Total Non-Interest Expenses 218,981 194,176 Net Income $80,409 $60,809

commitment to our employees and the greater Jacksonville area by

purchasing the VyStar Tower (formerly known as the SunTrust Tower)

in the heart of Downtown Jacksonville, where we will transition our

headquarters to by the end of 2019. By providing a positive working

environment for the VyStar team, VyStar will continue to attract and

retain a highly skilled and motivated workforce that supports our credit

union’s vision and mission: to bring credit union services to more

people and provide financial service to our members and communities.

Community ServiceVyStar played an active, hands-on role in supporting various

community organizations and events throughout 2018, such as the

March of Dimes, the United Way of Northeast Florida, the Leukemia &

Lymphoma Society, Youth Crisis Center, Feeding Northeast Florida, the

Clara White Mission’s Mister Rogers’ Sweater Drive, the NAS Jax Air

Show, First Wednesday Art Walk, the Jacksonville Lantern Parade, the

River City Pride Parade, FSCJ Broadway Artist Series and many more.

We also created a new Vice President of Community Engagement and

Sponsorships position so VyStar can even further strengthen our

support and contributions to the communities we serve. VyStar’s

generosity and devotion to community service also extended beyond

VyStar’s field of membership: For example, all proceeds raised at

VyStar’s Downtown Jacksonville parking lot during the Florida vs.

Georgia NCAA football game on October 27th were donated to

Hurricane Michael relief efforts in the Florida Panhandle.

Military AppreciationA vocal supporter of our country’s service men, women and families,

VyStar made strides this September by donating the space and

construction cost necessary to open the first USO PathfinderSM

transition service center in Jacksonville—which is also the first of its

kind to be built in Florida—at VyStar’s Naval Air Station Jacksonville

(NAS Jax) branch. In keeping with our tradition of supporting our troops,

this contribution made by VyStar to the USO Pathfinder program will

help give service members the assistance they need to reintegrate into

civilian life. The 758-square-foot facility serves as a site where

transitioning members can go to work one-on-one with professional

scouts to identify their personal and professional goals, create an action

plan, get access to the resources they need to accomplish their goals

outside of the military, and ensure that their transition is as smooth

and successful as possible.

ExpansionIn November and December, VyStar received approval from the Florida

Office of Financial Regulation (FLOFR) to significantly expand our field

of membership, allowing us to serve an additional 27 counties in

Florida and four Georgia counties. We also announced our first merger

and acquisition of Citizens State Bank (CSB), a Florida state-chartered

bank headquartered in Perry, Florida. It will add $280 million in assets

and provide 4 additional branch locations—two in Gainesville and our

first Taylor County branches in Perry and Steinhatchee. We can now

provide membership to anyone who lives or works anywhere in a total

of 49 counties across Central to Northern Florida, including the

Panhandle (Pensacola to Jacksonville) and the entire stretch of Central

Florida (reaching as far south as Melbourne to the east, and across to

Tampa/St. Petersburg on the west) as well as Ware, Charlton, Camden

and Glynn counties in Southeast Georgia. This is a significant milestone

in our vision to bring credit union services to more people.

VyStar also steadily continued its branch expansion plans during 2018,

with new full-service branches opening in Gainesville Oaks, Orange City

and DeLand. We are excited to keep the commitment we made to the

residents and businesses in the Gainesville and Volusia County areas by

continuing to grow in their communities. Additionally, in October, we

held true to our promise of promoting financial education among our

youth by opening our 14th High School Credit Union Branch at Yulee

High School.

None of these exciting changes would be possible without the

backbone of our credit union: our members. Thank you for your

membership, and thank you for continually inspiring us to serve

others and to give the very best of ourselves each day. We never

forget that it’s your money.

Eric J. Hatfield Brian E. Wolfburg

Chairman of the Board President/CEO

DOLL

ARS

(MIL

LION

S)

DOLL

ARS

(BIL

LION

S)

DOLL

ARS

(BIL

LION

S)

8.5

8.0

7.5

7.0 6.5 6.0 5.5

5.0 4.5 4.0 3.5 3.0 2.5 2.0

1.5 1.0 0.5 0.0

2014 2015 2016 2017 2018

ASSETS

6.0 LOANS DEPOSITS

5.5

5.0

4.5

4.0

3.5

3.0

2.5

2.0

1.5

1.0

0.5

0.0

2014 2015 2016 2017 2018

DEPOSITS AND GROSS LOANS

750

700

650

600

550

500

450

400

350

300

250

200

150

100

50

0

2014 2015 2016 2017 2018

NET WORTH

7.58.08.5

700

750

5.5

ASSETS2014 2018201720162015

DEPOSITSAND GROSS LOANS

2014 2018201720162015

NET WORTH2014 2018201720162015

0.00.51.01.5

2.02.53.03.54.04.55.0

DOLL

ARS

(BIL

LION

S)

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

DOLL

ARS

(BIL

LION

S)

0

50

100

150

200

250

300

350

400

450

500

DOLL

ARS

(MIL

LION

S)

550

DEPOSITSLOANS

7.0

6.06.5

600

650

5.5

6.0

commitment to our employees and the greater Jacksonville area by

purchasing the VyStar Tower (formerly known as the SunTrust Tower)

in the heart of Downtown Jacksonville, where we will transition our

headquarters to by the end of 2019. By providing a positive working

environment for the VyStar team, VyStar will continue to attract and

retain a highly skilled and motivated workforce that supports our credit

union’s vision and mission: to bring credit union services to more

people and provide financial service to our members and communities.

Community ServiceVyStar played an active, hands-on role in supporting various

community organizations and events throughout 2018, such as the

March of Dimes, the United Way of Northeast Florida, the Leukemia &

Lymphoma Society, Youth Crisis Center, Feeding Northeast Florida, the

Clara White Mission’s Mister Rogers’ Sweater Drive, the NAS Jax Air

Show, First Wednesday Art Walk, the Jacksonville Lantern Parade, the

River City Pride Parade, FSCJ Broadway Artist Series and many more.

We also created a new Vice President of Community Engagement and

Sponsorships position so VyStar can even further strengthen our

support and contributions to the communities we serve. VyStar’s

generosity and devotion to community service also extended beyond

VyStar’s field of membership: For example, all proceeds raised at

VyStar’s Downtown Jacksonville parking lot during the Florida vs.

Georgia NCAA football game on October 27th were donated to

Hurricane Michael relief efforts in the Florida Panhandle.

Military AppreciationA vocal supporter of our country’s service men, women and families,

VyStar made strides this September by donating the space and

construction cost necessary to open the first USO PathfinderSM

transition service center in Jacksonville—which is also the first of its

kind to be built in Florida—at VyStar’s Naval Air Station Jacksonville

(NAS Jax) branch. In keeping with our tradition of supporting our troops,

this contribution made by VyStar to the USO Pathfinder program will

help give service members the assistance they need to reintegrate into

civilian life. The 758-square-foot facility serves as a site where

transitioning members can go to work one-on-one with professional

scouts to identify their personal and professional goals, create an action

plan, get access to the resources they need to accomplish their goals

outside of the military, and ensure that their transition is as smooth

and successful as possible.

ExpansionIn November and December, VyStar received approval from the Florida

Office of Financial Regulation (FLOFR) to significantly expand our field

of membership, allowing us to serve an additional 27 counties in

Florida and four Georgia counties. We also announced our first merger

and acquisition of Citizens State Bank (CSB), a Florida state-chartered

bank headquartered in Perry, Florida. It will add $280 million in assets

and provide 4 additional branch locations—two in Gainesville and our

first Taylor County branches in Perry and Steinhatchee. We can now

provide membership to anyone who lives or works anywhere in a total

of 49 counties across Central to Northern Florida, including the

Panhandle (Pensacola to Jacksonville) and the entire stretch of Central

Florida (reaching as far south as Melbourne to the east, and across to

Tampa/St. Petersburg on the west) as well as Ware, Charlton, Camden

and Glynn counties in Southeast Georgia. This is a significant milestone

in our vision to bring credit union services to more people.

VyStar also steadily continued its branch expansion plans during 2018,

with new full-service branches opening in Gainesville Oaks, Orange City

and DeLand. We are excited to keep the commitment we made to the

residents and businesses in the Gainesville and Volusia County areas by

continuing to grow in their communities. Additionally, in October, we

held true to our promise of promoting financial education among our

youth by opening our 14th High School Credit Union Branch at Yulee

High School.

None of these exciting changes would be possible without the

backbone of our credit union: our members. Thank you for your

membership, and thank you for continually inspiring us to serve

others and to give the very best of ourselves each day. We never

forget that it’s your money.

Eric J. Hatfield Brian E. Wolfburg

Chairman of the Board President/CEO

Consolidated Statements of Financial Condition December 31, 2018 and 2017 (Dollars in thousands)

ASSETS Cash and cash equivalents Investments Trading Available-for-sale Other Loans to members, net Accrued interest receivable Property and equipment, net National Credit Union Share Insurance Fund deposit Other assets Total Assets

LIABILITIES AND MEMBERS’ EQUITY Liabilities Deposits Accrued expenses and other liabilities Borrowed funds Total liabilities Members’ Equity Retained earnings Accumulated other comprehensive income Total members’ equity Total Liabilities and Members’ Equity

Consolidated Statements of Operations Years Ended December 31, 2018 and 2017 (Dollars in thousands)

Interest income: Interest on loans Interest on investments Total Interest Income Interest expense: Interest expense on borrowings Interest expense on deposits Total Interest Expense Loan loss provision Net Interest Income after Loan Loss Provision Non-interest income: Other operating income Income from sold loans Non-trading losses Losses from foreclosed real estate (Losses) gains from disposal of assets Total Non-Interest Income Non-Interest Expenses: Employee compensation and benefts Training, travel and conference expenses Offce occupancy expenses Offce operations expenses Marketing expenses Loan program expenses Professional and outside services State of Florida assessments Lobbying contributions Miscellaneous operating expenses Total Non-Interest Expenses Net Income

2018 2017 $443,388 $890,227

39 62 1,793,706 1,079,065

74,602 60,063 5,642,343 5,033,484

18,072 14,892 233,105 151,096 54,102 50,250 24,819 20,319

$8,284,176 $7,299,458

$5,998,724 $5,404,640 87,799 105,816

1,487,351 1,152,865 7,573,874 6,663,321

720,989 640,580 (10,687) (4,443) 710,302 636,137

$8,284,176 $7,299,458

$223,815 $190,534 44,742 27,553

268,557 218,087

29,116 17,215 37,809 26,976 66,925 44,191 18,422 19,770

183,210 154,126

117,340 101,136 476 395

(1,487) (21) (57) (667) (92) 16

116,180 100,859

107,064 90,116 1,197 1,040

20,853 16,957 69,814 64,938

6,310 4,951 3,180 3,071 5,333 8,783

639 584 38 38

4,553 3,698 218,981 194,176 $80,409 $60,809

REPORT TO MEMBERS

Thanks to you, our valued members, 2018 was a year filled with

exciting changes and growth for VyStar. Your credit union continued its

strong financial performance and steady growth in membership, loans

and deposits.

Our net income for 2018 was a record $80.4 million, which was

32.2% greater than 2017. Our net worth ratio was 8.70%, which is

considered strong by the National Credit Union Administration (NCUA).

A credit union is considered well capitalized if they have over a 7%

net worth.

One of VyStar’s objectives is to always be a recognized and reliable

borrowing source. During 2018, we disbursed over $1.9 billion in loans

to our members and business members, helping them buy autos and

homes, purchase business properties and refinance existing higher-rate

mortgages, business properties and other loans. In 2018, net loans to

members—including mortgage, automobile, credit card and business

loans—reached almost $5.7 billion. Total mortgage loans were $2.5

billion—an increase of 5.9% over 2017—making VyStar the second

largest mortgage lender by volume in Northeast Florida according to

the July 20, 2018, edition of the Jacksonville Business Journal.

Member growth remained strong in 2018. By the end of the year,

VyStar was serving 643,809 members with assets of almost $8.3

billion and managed investments of $680.6 million through VyStar

Investment Services.

VyStar was also keenly focused on making a wide variety of exciting,

innovative and impactful changes to even better serve our members,

employees and communities.

“Believe in Better”VyStar launched the “Believe in Better” program, a series of

improvements that were designed to enhance VyStar’s products, services

and member experience. Showing our true commitment to our tagline,

“We never forget that it’s your money,” our credit union set the following

changes into motion for our members:

• Extended Call Center Hours: Members can now access VyStar’s

Call Center and VyChat representatives for assistance every day

of the week, from 7:00 a.m. to 7:00 p.m., excluding holidays.

• Fewer Fees: Over half of our fees were lowered or eliminated in

2018, saving members more than $1 million annually, in addition

to the millions we already save them every year.

• Extended Nationwide Network of Surcharge-Free ATMs: Members

can now use their debit or ATM cards at more than 20,000

surcharge-free ATMs across North America, so your money is

always within reach—wherever and whenever you need it.

• Enhanced Business Services Offerings: Our business mortgage

product line was relaunched to better serve our business members.

• Makeover of VyStar Branches and ATMs: During the year, we

upgraded our landscaping, signage and ATMs at our branches

and added technology packages to each branch to enhance

member service.

New and Improved Employee BenefitsWe further improved VyStar’s already competitive employee offerings to

help achieve the goal of making VyStar the best place to work—in not

only Jacksonville, but the entire state of Florida. In October 2018, we

announced an extensive set of new and improved benefits that were

rolled out to our employees as of January 1, 2019, including:

• $15 full-time minimum wage + bonus opportunity

• Parental/family care leave

• Child adoption assistance

• Student loan payoff assistance

• Extra paid time off

• New/free medical insurance options

• Improved 401(k) benefits

• Tuition assistance, and much more

VyStar TowerBeing the best place to work isn’t just about offering great benefits to

employees. It’s also about providing them with a comfortable workspace

that supports their efforts, inspires creativity and fosters opportunity for

growth. For this reason, during the summer of 2018, we showed our

ANNUALREPORT2018

THANK YOU FOR BEING A VALUED

MEMBER OF VYSTAR CREDIT UNION.

BOARD OF DIRECTORS

Eric J. Hatfield CHAIRMAN

George R. Berry VICE CHAIRMAN

P. Kem Siddons TREASURER

William C. Vivian SECRETARY

Jonathan Hogan DIRECTOR

Jennifer A. Lusk DIRECTOR

Larry D. Myers DIRECTOR

Dr. Susan M. Ruffin DIRECTOR

Ralph R. Story DIRECTOR

AUDIT COMMITTEE

Jonathan Hogan CHAIRMAN

Jennifer A. Lusk VICE CHAIRMAN

Victor Blackshear Russell F. Misner Diana Wendland

EXECUTIVE OFFICERS

Brian E. Wolfburg PRESIDENT & CHIEF EXECUTIVE OFFICER

Chad Meadows EVP/ CHIEF OPERATIONS OFFICER

John H. Turpish EVP/ CHIEF FINANCIAL OFFICER

Safety, Soundness and Security Report From VyStar Credit Union’s Audit Committee

It is the opinion of the Audit Committee of VyStar Credit Union that the current fnancial operation, established internal controls and procedures of VyStar are sound. This opinion is based on the results of the audits performed by external auditors, Nearman, Maynard, Vallez, CPAs, our Internal Audit Department, as well as examinations performed by our State and Federal Examiners.

Jonathan Hogan AUDIT COMMITTEE CHAIRMAN

P.O. Box 45085Jacksonville, Florida 32232-5085

(904) 777-6000 • 1 (800) 445-6289vystarcu.org

©2019 VyStar Credit Union