TCU FINANCIAL GROUP

CREDIT UNION

2018 Annual Report

TABLE OF CONTENTS

Vision, Mission & Values ............................................................................................................................................... 1

Message from Board of Directors’ Chair and Chief Executive Officer ........................................................................... 2

Board of Directors.......................................................................................................................................................... 6

Management Discussion and Analysis .......................................................................................................................... 7

Management of Risk .................................................................................................................................................... 19

Management’s Responsibility ...................................................................................................................................... 25

Independent Auditors’ Report ...................................................................................................................................... 26

Consolidated Financial Statements ............................................................................................................................. 28

Notes to the Consolidated Financial Statements ......................................................................................................... 32

Credit Union Deposit Guarantee Corporation .............................................................................................................. 64

Officers & Vice Presidents ........................................................................................................................................... 65

VISION, MISSION& VALUES

Our Vision

We connect people with their unique life goals.

Our Mission

We will create meaningful spaces, deliver a value-added experience with

expert advice, and advocate for financial literacy in order to foster

healthier communities.

Our Values

Collaboration + Passion + Integrity + Lifelong Learning + Accountability

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MESSAGE FROM BOARD OF DIRECTORS’ CHAIR AND CHIEF EXECUTIVE OFFICER

The Board of Directors, Management and Staff are pleased to share some of TCU Financial Group Credit Union (TCU) highlights from 2018, along with information about the broader financial services sector through the information provided in this 2018 Annual Report.

“Customer service is not a department. It’s a philosophy to be embraced by everyone in an organization. Everyone plays their part in contributing to the customer’s experience.”

Shep Hyken, Customer Service Expert, Author, and Speaker

As we look back on 2018, we can say with confidence that the pace of change did not let up, nor did the challenges facing our industry. We started the year in the same place we left off from 2017 which was focusing on building a world class member experience. At first glance, the concept of creating a memorable and meaningful member experience might appear easy, but that’s definitely not the case. Members have different needs, expectations, wants, and desires; creating a member experience that meets the needs of all current members and anticipating the wants and needs of future members is no small task.

In 2018, we began the task of reaching out to our members and employees. We used surveys to solicit feedback and an in-person full-day workshop both designed to provide us feedback on what our members want and expect in an experience when dealing with TCU. We sent surveys to 14,045 members with a response rate of 9%, which by industry standards is excellent. In addition to the member surveys, we received feedback from 82 of our employees about their experience in working with members every day and how it can be improved. On September 11th, we invited 10 members along with 21 employees to an Innovation Workshop. Members were selected from a cross-section of our membership in order to give us an accurate picture of what different member’s needs and expectations were.

There were a number of areas in which members expressed less than satisfactory performance from TCU and where we fell short of their expectations. Specifically, the areas of complaint handling, onboarding/account set-up, communications, special offers and lending stood out as the areas that needed the most improvement. Armed with this feedback and information, we can now get to work to uncover the specific reasons why we are falling short of expectations in these areas. The following table outlines the steps we’ve taken to date, and what our next steps will be in creating our desired member experience. We are now in a position where we will be training our leadership and employees on how to deliver a consistent and memorable experience. This work will be ongoing through 2019 and likely into 2020, so please stay tuned. Lots of exciting changes are in store to help us serve you better and exceed your expectations, every time.

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Member Experience Program Design Schedule

Program Element Deliverables

Core Immersion & Management

Alignment

* Executive Interviews (Mar 15-22, 2018)* Management Alignment Workshop (Mar 27, 2018)* PACE Leadership Workshop (Mar 27, 2018)

Experience Design

Member Journey Mapping

* Journey Mapping Workshop(20 employees representing all departments: Mar 29, 2018)

Experience 360

Diagnostic Study

* Moment of Truth Analysis* Key Driver Impact Analysis* Results & Recommendations based on 4 member segments* Experience Gap Analysis (Apr 18 - Jul 26, 2018)

Culture Design

Experience Innovation

(Co-creation)

* Pre-workshop prep work* Innovation sessions(20 employees + 10 members: Sep 11-12, 2018)

Experience Guide

* Develop member experience principles and coachable behaviorsfor delivering the optimized experience

* Experience guide development (Jan 14, 2019)

Employee Education

* Evolve Your Experience* Education workshops (Saskatoon & Regina: Jan 28-31, 2019)

Financial Strength

TCU financial results in 2018 exceeded our expectations and most of our budget estimates. Economic uncertainty, continued weakness in the housing market and overall economy all contributed to our reduced budget estimates for the year. Fortunately, growth in other parts of the country benefited TCU as we were able to participate in loan opportunities with credit unions and partners in other provinces. Credit unions right across the country have a very efficient and effective syndicated loan program in place which matches credit unions that have excess funds to lend and those that require funds. It’s a win/win model which affords credit unions the opportunity to diversify and participate in larger loan deals than would otherwise be possible.

TCU dropped from the 6th largest credit union in the province to the 7th position as the result of mergers. However, we were very pleased to record an After Tax Profit from Operations of $4.08 million with roughly $2.0 million of that coming from the gain on the sale of our Arlington building. Aside from the gain on the sale of Arlington, we managed to record a healthy profit and excellent results given the challenges we faced

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and continue to face. Assets were up $20.1 million and ended at $739 million on the year. Our Wealth Management ended the year at $233.8 million, that’s an increase of $9.7 million from the previous year. Broad-based market declines put downward pressure on our wealth assets making it a very challenging year.

Our People

In the past two years, we have been adding staff in areas that require specialized skills and experience such as, credit adjudication, governance and compliance, systems and operations to name a few. All our employees work tirelessly to make sure that you have access to your accounts when and where you demand, with the majority of these employees working behind the scenes. The changes in our structure were borne out of necessity due to changes we are experiencing in our industry. The world of banking will continue to change and evolve and so too will the skills and competencies required to work in the new economy. Our employees are always upgrading and expanding their skills and knowledge to serve our members better. TCU will continue to invest in training and development opportunities to ensure our employees are providing members with the best advice and guidance.

In addition to our employees, you have a dedicated, professional and knowledgeable board of 10 directors representing you and making sure your funds are protected and that management is held accountable. Not dissimilar to our employees, the board is required to undertake regular training and development to stay on top of changes in our industry. Our board meets at a very minimum quarterly, in addition to the numerous committee meetings and other meetings and training that are held throughout the year. The board, along with senior management, is always accessible to our membership and looks forward to your feedback.

Our Future

Members can expect to see the new freshly designed and renovated Arlington branch by the fall of 2019.

Unfortunately, we are not expecting much change in the provincial economy for 2019, as continued uncertainty and reduced consumer and business confidence remains. We will be making some much needed investments in infrastructure and employee training, which have been long overdue. We are not forecasting any growth in 2019, nor are we expecting a very profitable year. As each year passes, our expenses increase at a faster rate than our revenues due to increased regulatory burden and increased technology demands. We are working hard to find ways to offset or share these costs and also find other sources of income as our industry continues to transform. The pace of change will only get faster so we need to be more nimble, faster to change and more innovative than our competitors.

In the face of all this uncertainty and change, we are very excited about our Member Experience design work and what we will accomplish in 2019 and beyond. The team we have in place is hard at work deconstructing our current member experience to come up with a new exciting and refreshed design; that we know you’ll like. The work on our member experience design is anticipated to continue through all of 2019 and into 2020.

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This is both a very uncertain and exciting time to be in the financial services industry. What won’t change is our continued desire and focus to serve members and give back to the communities within which we do business. Our revamped member experience is what will set us apart from the competition.

We look forward to serving you in 2019 and beyond!

Cooperatively yours,

Earl Warwick George Greenwood Chair – Board of Directors Chief Executive Officer

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2018 BOARD OF DIRECTORS

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Chair - Saskatoon - Term Expires 2021

EARL WARWICK

Vice Chair - Regina - Term Expires 2019

STEPHANIE MANSFIELD

Saskatoon - Term Expires 2019

GINGER APPEL

Saskatoon - Term Expires 2020

BRENDAN BITZ

Saskatoon - Term Expires 2019

DERWYN CROZIER-SMITH

Saskatoon - Term Expires 2021

TONY LINNER

Regina - Term Expires 2021

REAGAN LOWE

Saskatoon - Term Expires 2020

DARCY MCLEAN

Regina- Term Expires 2020

GRAHAM MICKLEBOROUGH

Regina- Term Expires 2019

STEVE TUNISON

Our Board of Directors is committed to maintaining focus on the members, the communities we serve and the financial

sustainability of TCU Financial Group Credit Union.

Learn more about our directors by

visiting tcufinancialgroup.com

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MANAGEMENT DISCUSSION & ANALYSIS

The Management Discussion & Analysis (MD & A) is presented to enable readers to assess material changes in the financial conditions and operating results of TCU Financial Group Credit Union for the year ended December 31, 2018, compared with prior years. This MD & A is prepared in conjunction with the Consolidated Financial Statements and related Notes for the year ended December 31, 2018, and should be read together. Unless otherwise indicated, all amounts are expressed in Canadian dollars and have been primarily derived from the Credit Union’s annual Consolidated Financial Statements prepared in accordance with the International Financial Reporting Standards (IFRS).

CORPORATE PROFILE TCU Financial Group Credit Union (TCU) is a Saskatchewan Credit Union regulated by The Credit Union Act (1998) and The Credit Union Regulations (1999). TCU must also comply with the Credit Union Deposit Guarantee Corporation’s (CUDGC) Standards of Sound Business Practice, and with our own articles, bylaws and policies. The Board of Directors is ultimately responsible for ensuring that TCU is managed and operated in a sound and prudent manner. TCU’s management is responsible for managing, monitoring and controlling credit union operations in accordance with the legislation, the standards and Board policy.

TCU’s mandate is to provide our members with a full range of financial products and services, which includes banking and wealth management services. These products and services will be delivered through one of the following business units of the Credit Union:

• The Credit Union provides the traditional retail banking services and products such as consumer and business loans, consumer and business deposit account products, ATM, internet banking facilities and Wealth Management.

• TCU Holdings Inc. is a wholly-owned subsidiary of TCU, and holds and manages all the TCU buildings and land.

TCU is the 7th largest credit union in Saskatchewan with assets of $739,382,000. In addition, TCU has assets under administration of $3,334,000 in syndicated loans. Wealth Management has assets under administration of $233,756,000.

TCU serves 18,900 members through five retail branch locations in Regina and Saskatoon. Head Office is located in Saskatoon.

GOVERNANCE As a financial co-operative, TCU Financial Group Credit Union is governed by a Board of Directors which is comprised of ten Directors, all of whom are independent. The functions of the Board include the sanctioning of strategic business plans, corporate mission, vision, values and guiding principles; monitoring corporate performance against strategic business plans; overseeing the operations; ensuring compliance with laws and regulations; keeping members informed regarding plans, strategies and performance of the Credit Union; performance management and compensation of the CEO; and other related matters as they may arise. During 2018, the Board of Directors held seven regular meetings. The Board also participated in two educational sessions – one in June and one in September.

The Board of Directors has also formed six committees to assist with the governance process.

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Audit Committee – The purpose of this committee is to provide independent oversight of the credit union’s operations and to ensure the accuracy, integrity, security, prudence and legality of its financial transactions and records. During 2018, the Audit Committee was comprised of four directors and met five times.

Risk Committee – The purpose of this committee is to ensure a strong enterprise risk management framework exists. This framework provides reasonable assurance that strategic, operational, financial and regulatory objectives are achieved. The committee oversees the identification, measurement and development of strategies to manage those risks. The committee also oversees the compliance with legal and regulatory requirements. During 2018, the Risk Committee was comprised of four directors and met five times.

Governance & Human Resources Committee – The purpose of this committee is to ensure an appropriate governance structure is in place, to oversee the election process of the Board of Directors, the Board evaluation and development process, along with human resources. This includes the compensation philosophy and culture of the organization. Additionally, this committee works closely with the C-Suite to formulate policies and practices to meet the needs of our members, staff and the corporate entity. During 2018, the Governance & Human Resources Committee was comprised of four directors and met six times.

Conduct Review Committee – The purpose of this committee is to ensure the integrity and objectivity of its Directors, Officers and Employees. This committee monitors and reviews related party transactions with the credit union to ensure they are fair to the credit union and that best judgment is exercised in all matters or related party relationships as a result of real or perceived conflict of interest. This committee is comprised of the same members as the Audit Committee. During 2018, the Conduct Review Committee did not meet.

Executive Committee – The purpose of this committee is to act in the capacity of, and on behalf of, the Board of Directors between regular or special board meetings on all board matters except those which the Board may not, in compliance with legislative requirements, delegate. Additionally, this committee sets the Board of Director’s regular meeting and planning meeting agendas.

The Executive Committee consists of the Chair and Vice Chair of the Board of Directors and the Chief Executive Officer. During 2018, this committee met four times.

CEO Compensation & Performance Evaluation Committee – The purpose of this committee is to ensure that a fair, equitable and competitive compensation program is provided for the CEO. Additionally, this committee conducts the CEO performance evaluation process and sets the performance plan for the following year. The CEO Compensation & Performance Evaluation Committee consists of five members of the Board of Directors which are the Chair, Vice Chair, Chair of the Audit Committee, Chair of the Risk Committee and Chair of the Governance & Human Resources Committee. During 2018, this committee met four times.

MANAGEMENT STRUCTURE In addition to the Board of Directors and associated committees, the management structure consists of the following:

George Greenwood – Chief Executive Officer

Tammy Martins – Chief Business Transformation and Strategy Officer

Greg Peacock – Chief Financial Officer

Kathy Styranko – Chief Risk Officer

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C-Suite – The C-Suite is responsible to oversee the operation of the credit union and its subsidiary as directed through the strategic plan and policies approved by the Board of Directors. Additionally, the C-Suite is responsible for developing processes that identify measures, and monitor and control risks. TCU has an extensive Enterprise Risk Management process and reports risk management performance to the Board through the Risk Committee.

Asset Liability Management Committee (ALCO) – The ALCO Committee is responsible for understanding, monitoring and managing interest rate risk, liquidity risk, capital adequacy risk and management of strategies in terms of the overall balance sheet structure focusing on achieving financial targets and capital optimization. The ALCO Committee, which consists of the C-Suite and other management personnel, reports to the Risk Committee. This committee meets, at minimum, quarterly.

Internal Credit Committee (ICC) – The ICC is a top level decision body which adjudicates credit opportunities that are deemed to have a potential material impact on TCU. The ICC protects TCU’s interests through the employment of sound business practices, in pursuit of sustainable growth. The purpose of a strong credit management process is to protect the credit union.

Enterprise Risk Management (ERM) Committee – The ERM Committee is responsible to provide a platform for committee members to participate in a systematic, timely and structured approach to ensure the alignment of key strategies with TCU’s risk appetite and risk tolerances. The purpose of a strong risk management process is to create, as well as protect, value for TCU.

Subsidiary Company – TCU Financial Group Credit Union has one wholly owned subsidiary company – TCU Holdings Inc.

ECONOMIC ENVIRONMENT

Experts are all on the same page when it comes to the economic forecast for the Province and more specifically the cities of Saskatoon and Regina. Unfortunately, that consensus isn’t great and the experts are forecasting much of the same as we’ve been experiencing over the past 3-4 years; little to no growth. TCU concurs with these forecasts and doesn’t have information to the contrary which would lead us to believe 2019 will produce a strong economy for the Province. Continued weakness will make it harder to generate new business and strengthen our bottom line. We are expecting a very tight lending environment in 2019, continued downward pressure on our margins and increasing expenses.

Who’s forecasting what?

The Conference Board of Canada is forecasting the following:

• “GDP Growth Continues Slowly – Both cities are expected to grow by slightly more than two percent annually in 2019 and 2020, with the pace of growth marginally higher in Saskatoon.

• Population Increases Surpass Historical Pace – Population growth in both Saskatoon and Regina is expected to dip below the levels seen earlier in the decade, but average just under two per cent annually through 2022. Regina can expect annual net migratory inflows about three times greater more than the average of the previous 30 years. Saskatoon’s average net migration of 3,700 people annually is projected to compare favorably to historical trends.

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• Labour Market Remains Steady – Saskatoon is expected to record faster employment growth than Regina in 2019, but Regina will maintain a lower unemployment rate.

• Housing Starts Rebound – Although there are backlogs in some segments of the housing markets, neither Regina nor Saskatoon appear to be generally overbuilt. Therefore, housing starts should edge upward over the medium term.”

Robin Wiebe, Saskatoon and Regina Economic Outlook 2019: After the Boom, Beyond the Bust, The Conference Board of Canada, November 6, 2018, https://www.conferenceboard.ca/e-Library/abstract.aspx?did=9883

Scotiabank Global Economics Provincial Pulse September 14th, 2018

“Saskatchewan housing starts will fall from 5,000 units in 2017 to just 3,800 units this year before rising to about 4,500 units in 2019. Year-end 2017 per capita completed and unabsorbed units were 218% and 64% above their 2010–16 annual averages in Regina and Saskatoon, respectively, building on the housing overhang accumulated post-commodity price correction. The glut of unabsorbed dwellings, weak household income gains and stricter mortgage stress tests implemented January 1st that are discouraging marginal buyers from entering the market should keep new residential building in check in 2018. In 2019, an improving labour market is expected to drive starts modestly higher.”

Global Economics Provincial Pulse, September 14, 2018, https://www.gbm.scotiabank.com/content/dam/gbm/scotiaeconomics63/sk_outlook_2018-09-14.pdf

Canadian Mortgage and Housing Corporation (CMHC)

The CMHC is pretty optimistic about the housing market in Saskatchewan.

It says as Saskatchewan’s economy generates more employment opportunities, net interprovincial migration is expected to improve. International migration will continue to support new household formation and population growth. The CMHC says a drop in new housing starts in 2018 is expected to reduce inventory and stabilize prices.

• Resale prices are expected to make modest gains in 2019 & 2020.

Saskatoon Forecast (CMHC, Fall 2018)

“Slower economic growth, increasing net outflows of migrants to other provinces, rising mortgage rates and rising construction costs have moderated demand for new housing units in 2018. Next year, continued employment growth, firmer oil prices, and a lower inventory of new homes will support a modest recovery in housing starts.

Further gains in residential starts are forecast for 2020 as growth in the local economy gathers momentum. Both single-detached and multifamily starts in the Saskatoon CMA are forecast to rise over the two-year horizon. Neighbourhood expansion efforts in the city’s northeast end will support gains in single-detached construction in 2019 and 2020.

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However, the level of overall production in both years is expected to remain significantly below that achieved in 2014, prior to the recession. In the multiples sector, affordability concerns due to rising interest rates will help shore up production of lower-priced options such as townhouses and condominium apartments.”

Regina Forecast

“After a strong performance in 2017, total housing starts in the Regina CMA are set for a significant decline in 2018. Weak employment growth and higher mortgage rates have combined to reduce consumer buying power, which has moderated demand for new housing units this year.

In addition, Provincial Sales Tax (PST) charges implemented on construction services, new home warranty, home insurance, input costs of land and its infrastructure have increased construction costs and prompted homebuilders to scale back production. Nonetheless, a modest recovery in residential construction is forecast for 2019, based on expected gains in employment and higher oil prices.

Further gains in residential starts are expected in 2020 as economic conditions continue to improve. Elevated inventories of newly constructed single-detached units have significantly slowed the pace of starts this year. However, single detached starts are forecast to post modest gains over the next two years as employment and population growth increase. In the multi-family sector, affordability concerns entail more favourable prospects for the production of lower-priced dwelling options such as townhouses and condominium apartments, which will increase in 2019 and 2020.”

Housing Market Outlook Saskatchewan, Fall 2018, http://www.reginarealtors.com/WEB/Documents/ARR/CMHC/Fall%202018%20housing-market-outlook-saskatchewan.pdf

Royal Bank Economics

“The modest GDP growth next year is expected to be mirrored in continuing limited employment growth. Data to date in 2018 are indicative of employment growth this year of a minimal 0.3% which is expected to be largely matched in 2019. The projected improvement in GDP growth in 2020 is expected to contribute to employment growth rising to 0.6%. This slight increase in hiring is expected to send the unemployment rate down slightly to 6.0% in 2019 and 2020 from the 6.1% expected this year.”

Paul Ferley, Provincial Outlook, December 2018, Saskatchewan – Bumpy road ahead, http://www.reginarealtors.com/WEB/Documents/ARR/CMHC/Fall%202018%20housing-market-outlook-saskatchewan.pdf

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THE CANADIAN CREDIT UNION SYSTEM IN 2018 AT A GLANCE

The number of credit unions has declined steadily over the past 20 years at an annual average rate of about 28 credit unions, the number of branches has mostly held steady. System assets, on the other hand, have more than quadrupled during this time period. Credit union mergers have created a substantial increase in the share of total system assets managed by the largest credit unions.

Key Credit Union Statistics Over Time*

1998 2008 Q3 2018

Number of Credit Unions 809 440 250

Number of Locations 1,828 1,734 1,773

Membership 4,247,718 5,052,972 5,750,641

Assets ($ mm) $49,925 $113,893 $229,650

Average assets/Credit Union ($mm) $61.71 $258.85 $918.60

Average members/Credit Union 5,251 11,484 23,003

Top 100 as % of Total Assets (2018=Q2) 66.91% 81.37% 92.35%

Top 10 as % of Total Assets (2018=Q2) 28.47% 39.16% 47.58%

Source: Canadian Credit Union Association * Statistics are based on credit unions and caisses populaires affiliated with Canadian Credit Union Association, with the exception of the Top 100 as a % of Total Assets and Top 10 as % of Total Assets. These calculations include data from all credit unions and caisses populaires in Canada, excluding Quebec. Credit Union Market Share

Credit unions hold 7.1% of the deposit-taking financial sector domestic asset market, as well as competitive market share positions in mortgage, consumer, small business and farm lending, and deposits. Credit union residential mortgage market share declined 0.4 percentage points from the 8.8% reported in 2008 to 8.4% in 2017. Credit union personal loan market share continues to decline with a reported 2.1% of the market in 2017, compared to 3.7% in 2008. The decline can be partly attributed to the fact that most credit unions no longer carry credit card balances on their books because of a decision in 2003 to sell the system’s collectively owned credit card business.

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It can also be attributed to the increased use of lines of credit secured by residential mortgages, a practice that places this product into the “Residential Mortgage” category instead of the “Personal Loan” category.

Credit Union Market Share (1) 2008 2017

Domestic Assets 6.1% 7.1%

Residential Mortgages 8.8% 8.4%

Personal Loans 3.7% 2.1%

Deposits 8.1% 8.5%

SME Loans (2) 10.6% 11.5%

Agricultural Loans (3) 11.3% 10.7%

(1) Market share calculations are based on deposit-taking financial institutions. (2) SME Loans – Based on Canadian Federation of Independent Business (CFIB) tri-annual market research survey of its members conducted in 2009 and 2015. (3) Agricultural Loans. Unlike the other product categories outlined in this table, agricultural loans exclude lending in Quebec. Source: Canadian Credit Union Association; Statistics Canada; Bank of Canada; OSFI; Industry Canada; Bank Annual Reports; CFIB. System Loan Portfolio

Small and Medium Enterprises (SME) lending continues to be an increasingly important market for credit unions, with the sector steadily expanding its commercial lending portfolio. As of third quarter 2018, commercial loans represented 28.5% of total loans whereas in 1998, these loans constituted only 17% of the total mix. Agricultural loans as a share of sector assets for their part declined by 2.5 percentage points over the 1998 to 2018 period, from 6.8% to 4.3%.

Share of System Loan 1998 2008 Q3 2018

Residential Mortgages 57.8% 55.7% 59.2%

Personal Loans 18.4% 12.2% 8.1%

Commercial Loans 17.0% 27.1% 28.5%

Agricultural Loans 6.8% 5.0% 4.3%

Source: Canadian Credit Union Association

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Demographics

Ipsos CSI survey results indicate that one-third (32.6%) of credit union members say they are at least 65 years of age. An additional 22.8% of members say they are aged 55 to 64. In other words, the Ipsos CSI data suggests that when these two age groups are combined, 55.4% of credit union members are either retired, close to retirement age, or eligible for early retirement compared with only 42.3% of bank customers. At the opposite end of the spectrum, only 13.2% of credit union members say they are 18 to 34 years old (versus 17.3% at the banks) and only 2.9% of credit union members say they are between the ages of 18 and 24 (versus 3.3% at the banks)

Age Credit Union Members Bank Customers

18-24 2.9% 3.3%

25-34 10.3% 14.0%

35-44 12.4% 18.0%

45-54 19.0% 22.5%

55-64 22.8% 19.6%

65+ 32.6% 22.6%

Source: Ipsos Customer Service Index Survey, 2018

The Changing Landscape of the Canadian Credit Union System

In 2016, UNI Financial was the first federal credit union in Canada. This came about as a result of the Caisse populaire acadienne ltee members voting to move to a federal model. In 2018, the second federal Canadian credit union, Coast Capital Savings moved to a federal credit union model. Closer to home, Innovation Credit Union members voted in favor of moving to a federal model with plans underway to make the full transition by 2020 or sooner. Discussions are currently taking place at a number of credit unions who are looking at the federal credit union model as an option.

All credit unions are working to adapt more quickly and evolve in the ever changing market place in order to meet the demands from our members for more digital banking options, more competitive pricing, greater flexibility, and personalized service. We see new competitors enter our space daily who are not regulated the same way or have the same level of expenses as a full service brick and mortar financial institution. It becomes more and more difficult every day to stay competitive and relevant to our members. The old traditional model of collecting deposits, lending that money out and providing excellent member service isn’t enough anymore. Mergers will continue as pressure mounts on small to midsized credit unions to keep up with increasing regulatory demands, growing technology costs and changing consumer preferences.

2018 Canadian Credit Union Key Events

On April 1st, the transaction to combine the businesses of Credential Financial Inc., Qtrade Canada Inc., and Northwest & Ethical Investments LP closed to form Aviso. Aviso Wealth Inc. is 100 per cent owned by

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Aviso Wealth LP, which is an equal partnership between Desjardins Financial Holdings Inc. and CU CUMIS Wealth Holdings LP.

On August 1st, the transaction to switch from CUETS Mastercard to our new provider Collabria was completed. We have a full suite of credit cards to meet all your needs and would be happy to discuss them with you. TCU no longer has any affiliation or connection to the former CUETS credit card and therefore, we cannot assist members or answer questions you may have. Therefore, we encourage all our members with a CUETS credit card to switch to one of our new TCU Collabria cards.

On August 1st, Central 1 launched banking on Alexa. Alexa will allow credit union members to perform many of the same functions as their online or mobile banking platform but through voice-activated commands making payments, sending money to vendors, transferring money between accounts and receiving financial tips. A number of credit unions have already signed up for the service and many more are expected to follow in 2019 and beyond. The days of going to your credit union or bank branch are quickly becoming obsolete.

BUSINESS ENVIRONMENT The current economic forecast shows that the Canadian economy will grow by 2% in 2019. The main driver for this growth is projected to come from British Columbia and central Canada. The impact of oil prices will have influence on Saskatchewan and Alberta’s contribution to this growth number. Canada’s economy has been driven by robust household spending in recent years. This has been spurred in part by high home prices and a large increase in consumer debt.

The rising interest rates in the U.S. have a significant effect on Canada as it appreciates the U.S. dollar against most currencies including the Canadian dollar. A lower Canadian dollar though does have a benefit in that it results in Canadian export goods being cheaper and will also increase tourism.

It is forecasted that over the next few years, employment growth will be constrained by slow labour force growth and low unemployment. This will combine with high household debt and rising interest rates to temper real consumer spending.

The implementation of the new mortgage stress testing which requires buyers qualify for mortgages as if interest rates were 2.0 percentage points higher than their actual rate, significantly dampened the resale housing market activity during the year. Some buyers were pushed out of the market, particularly in the least affordable cities. The far greater impact was a reduction in the size of mortgages being qualified, which lowered the price point for transactions and reduced the average price of homes being sold. Home sales declined in most markets, but so too did listings.

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Financial Performance Review Each year, TCU develops a corporate plan through a comprehensive budget and planning process. The following table provides an overview of key financial measures compared to targets for 2018. Actual results for 2017 have also been included for comparison.

Financial Management 2018 Actual 2018 Plan 2017 Actual Growth Assets Asset Growth Loans Loan Growth Deposits Deposit Growth

$739,382,055

2.89% $601,557,295

2.69% $627,577,945

(3.30%)

$735,306,525

2.17% $599,605,022

2.17% $652,235,272

0.50%

$719,238,936

(0.25%) $585,816,831

2.27% $648,963,983

(2.03%) Liquidity Management Loan to asset ratio

81.36%

81.54%

81.45%

Capital Management Common Equity Tier 1 / Risk-weighted Assets Total Tier 1 Capital / Risk-weighted Assets Total Eligible Capital / Risk-weighted Assets Total Eligible Capital / Leveraged Assets

14.34% 14.34% 14.77% 7.55%

13.90%

13.90% 14.06% 7.01%

14.35% 14.35% 14.38% 6.94%

Profitability Comprehensive income Return on assets (ROA) Efficiency ratio

$4,563,057

0.62% 70.05%

$1,639,241

0.22% 76.50%

$1,742,719

0.24% 76.97%

Balance sheet assets at December 31, 2018 were at $739,382,000 as compared to $719,239,000 at the end of 2017 representing a 2.89% increase, as compared to 0.25% decline in 2017.

Total balance sheet member loans at December 31, 2018 were at $601,557,000 as compared to $585,817,000 at the end of 2017, representing 2.69% growth as compared to 2.27% growth in 2017.

Syndicated Loans Under Administration (TCU member loans sold to other credit unions) at December 31, 2018 were at $3,334,000 as compared to $4,004,000 at end of 2017. The decrease in the balance is representative of the net of new loans added to this portfolio less the loan payments made against these loans.

TCU’s loan portfolio is weighted predominantly towards stable, lower risk personal and mortgage loans. Residential mortgage loans and mortgage secured line of credit loans account for 70% of our loan portfolio. Our commercial loan portfolio accounts for 24% of our total loan portfolio.

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Total balance sheet member deposits at December 31, 2018 were at $627,578,000 as compared to $648,964,000 at the end of 2017, representing a 3.30% decline as compared to 2.03% decline in 2017.

Most of TCU’s member deposits are concentrated in the higher rate investment type accounts.

Liquidity TCU’s loan to asset ratio as at December 31, 2018 was 81.36%, which is slightly lower than what it was at the end of 2017. Our ideal liquidity risk management policy range is between 79% to 81%. The maximum loan to asset ratio is 84%. TCU has many liquidity management strategies in place to mitigate potential Liquidity Risk. TCU’s primary source of funds is member deposits. In addition to member deposits, TCU maintains external borrowing facilities from various sources. TCU has an authorized line of credit with SaskCentral in the amount of $8,000,000 (CDN) as well as an authorized line of credit with SaskCentral in the amount of $100,000 (USD). In addition, TCU also has a demand loan in place with SaskCentral in the amount of $15,000,000. TCU also has access to a demand loan with Concentra Financial with an authorized limit of $10,000,000.

In 2015 through an application process, TCU became an authorized NHA MBS (Mortgage Backed Securities) Issuer and a CMB (Canada Mortgage Bond) Seller. Having these facilities will help TCU mitigate any additional liquidity risk in future years. TCU did participate in the NHA MBS market through three issuances in 2018. As at December 31, 2018, TCU has a carrying value of $49,762,660 within this facility.

TCU, along with all other Saskatchewan Credit Unions, is required to maintain 10% of their liabilities on deposit with SaskCentral, as the manager of the provincial liquidity program. These liquidity investments provide a safety net of liquid funds to satisfy payment obligations and to also protect against unforeseen liquidity events. In addition to these statutory liquidity investments, TCU also maintains an investment portfolio of other liquid investments to meet daily liquidity requirements.

Profitability Comprehensive Income in 2018 was just over $4,563,000, as compared to just under $1,743,000 in 2017. The net operating income in 2018 was just under $4,076,000 as compared to just under $2,487,000 in 2017. The large change year over year was partially influenced by the net gain on the sale of our Arlington building in July 2018. Financial statement reporting standards require us to report “comprehensive income” which includes unrealized gains/losses on investments and derivatives. In 2018, the unrealized gains/losses on investments and derivatives calculated to be an unrealized gain of just under $8,000 as compared to an unrealized loss of just over $829,000 in 2017.

TCU’s total annualized return on assets (ROA) for 2018 was 0.62% on comprehensive income, and 0.55% on net operating income, as compared to 0.24% on comprehensive income and 0.35% on net operating income in 2017.

Net interest margin is the total revenue received from loan and investment interest less the total interest expense paid on member deposits and provision for credit and investment losses. TCU’s net interest margin was at 2.413% at December 31, 2018, which was higher than the net interest margin of 2.202% at the end of 2017.

We are projecting the net interest rate margin to be slightly higher at the end of 2019 at 2.43%. With the slowdown in the residential mortgage market coupled with new federal mortgage rules, TCU will be looking at

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increasing our exposure to commercial lending as well as increasing syndicated loans purchased from our partners which will in turn have a direct positive impact on our margin.

Non-interest revenue includes revenue from sources like commissions and charges, service fees, administration fees on syndicated loans and fixed asset income. TCU’s non-interest revenue for 2018 was at $6,596,000 as compared to $3,454,000 in 2017. The unrealized gains and losses on investments and derivatives as indicated above accounted for the some of the difference between 2018 and 2017. The sale of our Arlington building also attributed to the difference.

Interest expense includes the interest paid to our member deposits, and interest paid on borrowed money. The total interest expense for 2018 was just over $8,524,000 as compared to just over $7,856,000 in 2017. The increase in cost was attributed to additional borrowing needed in 2018 as well as the interest cost associated with our participation in the NHA MBS market.

Provision for loan losses for 2018 was at $2,342,000 as compared to $1,174,000 in 2017. The large increase is related to additional collective allowance set up as per IFRS9 requirements. Overall, while we are experiencing an increase in delinquency in 2018, TCU’s delinquency and loan loss provisions are low and well below industry ratios for an organization with almost a $602 million loan portfolio. The forecast for 2019 also projects similar delinquency levels due to the economic conditions that exist today in Saskatchewan and most of Canada.

Non-interest expenses include operating expenses such as personnel, occupancy, member security, general business and governance costs. Non-interest expenses for 2018 were at $17,578,000, as compared to $15,584,000 in 2017, or an increase of 12.79%. One of our primary focuses is to grow assets without a corresponding increase in operating expenses. TCU’s operating expense ratio maintains to be in line when compared with other Saskatchewan credit unions.

TCU’s largest cost relates to Personnel Costs which represent 56.5% of our total operating expenses.

Efficiency Ratio is a calculation that determines the cost of raising $1.00 of revenue. In 2018, TCU’s Efficiency Ratio was at 70.05%, as compared to 76.97% in 2017. In other words, it costs TCU $0.7005 to raise $1.00 of revenue in 2018. Our primary focus is to continue to improve on our Efficiency Ratio to where it is below 70%.

Member Equity and Capital Member equity and capital are the primary measurements of a credit union’s financial strength. TCU’s capital management policy is that we will at all times remain adequately capitalized, maintaining a prudent cushion of retained earnings and equity to protect our economic survival and to finance new opportunities.

TCU’s eligible capital ratio at the end of 2018 stood at 14.77%, as compared to 14.38% in 2017. The standard as set by our regulator is that a credit union must maintain a minimum of 10.50% of total eligible capital as a percentage of risk-weighted assets. TCU’s internal capital management policy is for the risk-weighted capital ratio to be within the range of 11% to 13%. We are well above both the regulatory requirements and our own standards.

TCU’s Member Equity position as at December 31, 2018 was at $57,379,000 as compared to $52,815,000 at the end of 2017.

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MANAGEMENT OF RISK

Overview

TCU Financial Group Credit Union is committed to prudently employing a range of risk management strategies to mitigate the various risks that it is exposed to within the financial services industry. TCU utilizes an enterprise risk management (ERM) framework in order to enhance the management of these risks. Based on this framework, TCU defines risk exposure according to the following six categories:

Credit Risk Liquidity Risk Market (Interest rate) Risk Strategic Risk Operational Risk Legal and Regulatory Risk TCU’s risk management framework includes:

Risk identification and classification Risk mitigation review and assessment Policy and procedure reviews and amendments Compliance and audit reviews Reporting Senior management has established an ERM Committee which is responsible for establishing the framework to identify and classify the risks, as well as establish effective policies and processes to manage the risks. The Board, either directly or through Board committees, reviews and approves key policies and reporting to ensure proper oversight to the risk management process.

The Board is responsible to approve the overall business plan including any recommendations from various committees. The Board also receives reporting from the various committees as it relates to approvals made by those committees.

The Risk Committee receives direct reporting from senior management and is responsible for monitoring the risk management framework and making recommendations to the Board regarding acceptable levels of risk. The Audit Committee is responsible to provide oversight of the external and internal audit process and the adequacy of internal controls.

Executive and senior management are responsible for the implementation of strategies and policies approved by the Board as well as reporting to the Board or specific committees to ensure proper oversight is maintained.

The ALCO (Asset and Liability Management Committee) consists of the C-Suite and other management personnel. As necessary, additional management with specific subject matter expertise will be called upon to contribute. The committee is responsible for the monitoring of liquidity and interest rate risk as well as overall credit exposure. This committee provides regular reporting to the Board related to liquidity, market risk and capital management activities undertaken by management.

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Enhanced risk management activities continue to evolve in support of regulatory requirements and risk management best practices with respect to capital adequacy and capital, liquidity and credit stress testing. Reviews of risk management related policies and frameworks continue to mature to address more detailed stress testing and reporting expectations to support business decisions. Workshops and training continue to engage additional stakeholders to support risk identification and management at all levels of TCU.

TCU has also established an independent internal audit/quality assurance framework. While TCU has outsourced the internal audit function, oversight and quality assurance follow up and reporting continue internally with dedicated resources. Reporting from this framework is delivered to management with a summary provided to the Audit Committee on a quarterly basis to assist in the oversight of TCU internal controls.

TCU is undertaking a process to review and align overarching polices and plans to ensure an integrated approach and holistic view of managing the entire business.

Credit Risk

Credit risk analysis includes a review of TCU loan portfolio diversity, loan policy and the ability to recover our loans by way of member payments or the realization of security. TCU employs loan underwriting policies and procedures based on recommended industry requirements and standards. Loan delinquency and loan loss write offs have increased given the changes in the economic conditions in the province and the larger commercial component, but continue to be maintained below industry standards and are monitored and reported to the Board on a regular basis. Additional processes have been implemented to assist in the monitoring and management of the loan portfolio and the detection of negative trends. Stress testing of the credit book continues to form part of the ongoing risk management and capital management processes. Loan portfolio concentrations are also reported to the Board and specific strategies have been identified to manage concentrations in a proactive manner.

The largest percentage of our loan book remains with the consumer loans and residential mortgage products, including our commercial book which is primarily real estate development at this time. A more focused approach to diversification continues to be developed which includes on-book commercial diversification as well as increased participation in loan syndication across various industries and provinces.

Residential Mortgage Loan Portfolio In accordance with Credit Union Deposit Guarantee Corporation (CUDGC) guidelines, TCU is required to provide additional credit disclosures regarding its residential mortgage portfolio. TCU is limited to providing residential mortgages of no more than 80% of the collateral value. Lending at a higher loan to value (LTV) ratio is permitted but requires default insurance. The insurance is contractual coverage that protects TCU’s real estate secured lending portfolio against potential losses caused by borrower default. Default insurance can be provided by either government backed entities or other approved private mortgage insurers. Currently TCU uses Canada Mortgage and Housing Corporation (CMHC) and Genworth to provide mortgage default insurance.

A Home Equity Line of Credit (HELOC) is a form of non-amortizing (revolving) credit that is secured by a residential property. Unlike a traditional residential mortgage, most HELOC’s are not structured to fit a

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predetermined amortization, although regular, minimum periodic payments are required. TCU is limited to providing the non-amortizing HELOC component of a residential mortgage to a maximum authorized LTV ratio of less than or equal to 65%.

TCU regularly performs stress tests to show the effect on its capital position given various property value shocks on its total residential mortgage portfolio. This helps determine the potential impact of an economic downturn which may result in defaults and a decrease in housing prices. These stress tests show different levels of property value shock combined with different levels of probability of default, to compute the expected loss that could be realized by TCU. Our results show that in an economic downturn, TCU’s capital position would be sufficient to absorb residential mortgage and HELOC losses.

The following tables provide details of TCU’s residential mortgage portfolio to allow for evaluation of the soundness and condition of TCU’s residential mortgage operations.

Residential Mortgage Loan Portfolio

2018 % Insured - TCU $140,907,729.34 33.59% Uninsured 135,420,978.01 32.28% HELOC 143,204,118.65 34.13%

Total Loans $419,532,826.00 100.00% Residential Mortgage Term Loan Portfolio by Amortization

Amortization Range Number Mortgage Balance

% of Portfolio

Average Balance

Less than 10 years 107 $13,760,035.86 4.98% $128,598.47 10 – 15 years 86 8,130,484.12 2.94% $94,540.51 15 – 20 years 221 43,242,196.71 15.65% $195,666.05 20 – 25 years 720 182,593,544.82 66.08% $253,602.15 Greater than 25 years 113 28,602,445.84 10.35% $253,118.99 Total 1247 $276,328,707.35 100.00%

Residential Mortgage LTV

Average LTV Ratio Newly Originated Uninsured Residential Mortgages 67.89% Newly Originated Non-Amortizing HELOCS 26.41% Newly Originated HELOCS – Includes Amortizing and Non-Amortizing HELOCS 67.30%

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Liquidity Risk

Liquidity risk analysis includes a review of strategies around member deposit acquisition and other loan funding sources. TCU has established liquidity, capital management and asset/liability management (ALM) policies which are approved by the Board and provide direction in managing the associated risks. Loan syndication continues to be one strategy employed to mitigate liquidity pressures. Existing borrowing facilities with SaskCentral and Concentra also form part of the management strategy. Management develops strategies designed to attract deposits and non-interest revenue streams. The ALCO committee is responsible to manage liquidity risk based on the approved policy and to provide reporting to the Board.

Market (Interest Rate) Risk

Market risk analysis includes a review of market conditions, asset/liability matching and interest margins. Pressure on interest margin continues. In addition to the ALCO committee, TCU has employed the services of an outside consultant to assist with our balance sheet management. Services provided by the consultant include scenario simulation, stress testing based on changes in interest rates, and scenario analysis for long term planning. There is an increased focus on stress testing and portfolio analysis to assist in developing proactive management strategies. Interest rate swaps are employed as one strategy to manage interest rate risk. Senior management conducts ongoing reviews of product offerings, product delivery and product pricing to help ensure profitability. Reporting is provided to the Board regularly. Work continues to enhance the type and depth of the reporting available to assist management.

Strategic Risk

Strategic risk analysis includes a review of TCU’s brand, strategic direction, competition for members and employees, as well as TCU’s role in the communities we serve. The three to five year strategic plan developed in 2015 continues to be the basis for initiatives for 2019. TCU has been working to realign the organizational structure to better support the direction and related initiatives needed. TCU’s formal planning process is being re-engineered to better align with the ERM process and better support a culture with an embedded risk management philosophy. 2019 will see the development of a new three to five year plan.

Management reports to the Board on the progress to plan for initiatives designed around our members, corporate culture, financial performance metrics and growth as well as operational business processes. The reporting process that identifies metrics to gauge performance in these strategic focus areas is referred to as the “Balanced Scorecard”. Our strategic direction is set by the Board, and management is responsible to develop initiatives to support key areas of the plan. Annual planning meetings with executive management and the Board set the direction for the credit union. Executive and senior management are responsible to develop objectives and action plans. The Board is responsible to review and approve the Balanced Scorecard annually. TCU actively participates in the community both from a corporate perspective and by individual employees.

Operational Risk

Operational risk analysis includes a review of human resources, information systems, internal controls, and business continuity planning. Operational risk occurs when TCU is not able to develop or deliver products and services to its members due to human error, inadequate or failed technical issues, inadequate internal controls, lack of trained or qualified staff or other resources, etc. Competition remains a key risk and TCU’s

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ability to respond to operational risk issues is paramount to our success. TCU has established policies, procedures, internal controls, and compliance activities with regular reviews of these controls. For example, TCU has adopted a Code of Conduct for employees and directors.

A key focus in 2019 will be identifying and understanding our data and capitalizing on data analytics. Cyber security and reliance on third party suppliers are both growing in importance and are also areas of focus within our operational risk management priorities.

Among other initiatives, attracting and retaining highly skilled and competent staff remains a priority. Culture-related initiatives continue as a key focus for 2019 as culture is paramount to strategic success.

Where needed, TCU engages third party experts to ensure a high level of knowledge and support for key initiatives. TCU also requests and receives audit reports from key suppliers to ensure that these organizations are able to remain viable partners for our organization.

Legal and Regulatory Risk

Legal and regulatory risk analysis includes a review of fraud and fiduciary risk exposure; the cost to implement regulatory or compliance regimes; and the possible effect of non-compliance with laws, rules, regulations or ethical standards. TCU has policies, procedures and internal controls in place to mitigate our exposure to these risks, as well as assist TCU in complying with laws and regulations. TCU has a designated Compliance Officer to oversee the compliance regime. A new Regulatory Compliance Management Framework was approved in 2017 and work continues to be implemented in phases that align with our desired state: an empowered culture and a risk based approach that incorporates all staff. This process will lead to a review of internal controls to ensure proper ownership and oversight. The internal audit/quality assurance framework has been realigned as part of the organizational restructure and will continue to provide an independent assessment of the compliance regime, as well as ongoing assessment of internal controls. Quarterly reporting is provided to senior management and the Risk Committee to enable Board oversight of the compliance and control processes.

Current Risk Assessment

Based on the risks identified in our strategic planning process, and assessed via the ERM process, TCU has identified the following priority risks within our four strategic focus areas.

People and Culture

Ensuring our people understand and are able to align individually with the desired culture is critical to TCU’s success. Having the right people with the right skills, the right behaviors, and the right attitude will position them to execute on the new strategy. TCU continues to make significant investment in our people through education and training, as well as acquiring the needed expertise to complete our new organizational structure.

Operational Business Processes

Data analytics, both financial and member-related, are essential to future initiatives. Significant focus in this area in 2019 will position us well going forward. Our technical infrastructure must be able to support these initiatives, as well as protect TCU against the increased risks associated with cyber security. TCU continues to look for effective and efficient processes to reduce operating costs, improve integrity, and ensure a consistent

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member experience. Foundational frameworks to aid in the identification and management of risk continue to be enhanced.

Member Experience

Evolving our core business is our key strategic initiative and requires the support of all other areas. Ensuring we connect with our members is paramount to the delivery of a differentiated value. TCU has committed resources to member experience transformation.

Financial Strength and Sustainability

Managing all of our assets from a holistic perspective will help ensure they produce the best income possible and support the core business of providing for our members. Without close management, we run the risk that these new asset management plans do not produce the desired results. Continued focus on the diversification of our credit book will assist in mitigating our concentration risk and provide the potential for increased income.

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MANAGEMENT’S RESPONSIBILITY To the Members of TCU Financial Group,

Management has responsibility for preparing the accompanying consolidated financial statements and ensuring that all information in the annual report is consistent with the statements. This responsibility includes selecting appropriate accounting principles and making objective judgments and estimates in accordance with International Financial Reporting Standards.

In discharging its responsibilities for the integrity and fairness of the consolidated financial statements and for the accounting systems from which they are derived, management maintains the necessary system of internal controls designed to provide assurance that transactions are authorized, assets are safeguarded and proper records are maintained.

Ultimate responsibility for consolidated financial statements to members lies with the Board of Directors. An Audit Committee of Directors is appointed by the Board to review financial statements in detail with management and to report to the Board of Directors prior to their approval of the consolidated financial statements for publication.

Independent auditors appointed by the members audit the consolidated financial statements and meet separately with both the Audit Committee and management to review their findings. The independent auditors report directly to the members and their report follows. The independent auditors have full and free access to the Audit Committee to discuss their audit and their findings as to the integrity of the Credit Union's financial reporting and the adequacy of the system of internal controls.

George Greenwood Greg Peacock Chief Executive Officer Chief Financial Officer

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TCU FINANCIAL GROUPCONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT DECEMBER 31, 2018(with comparative figures for 2017)

ASSETS2018 2017

Cash and cash equivalents (Note 4) $ 10,664,151 $ 3,562,426Derivative financial instruments (Note 5) (567,885) (1,016,399)Investments (Note 6) 111,118,023 113,549,875Investment property (Note 7) 2,121,038 2,180,031Loans receivable (Note 8) 601,557,295 585,816,831Other assets (Note 9) 3,762,554 3,514,041Property and equipment (Note 10) 10,726,879 11,632,132

$ 739,382,055 $ 719,238,937

LIABILITIES

Deposits (Note 11) $ 627,577,945 $ 648,963,983Loans payable (Note 12) - 12,983,684Secured borrowing (Note 13) 49,785,096 -Other liabilities (Note 14) 4,537,791 4,370,583Shares (Note 15) 102,705 105,225

682,003,537 666,423,475

MEMBERS' EQUITY

Retained earnings 57,868,754 53,792,898Accumulated other comprehensive income (490,236) (977,436)

57,378,518 52,815,462

$ 739,382,055 $ 719,238,937

APPROVED BY THE BOARD:

_____________________________ Board Chair _____________________________ Audit Committee Chair

"See Accompanying Notes"

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CREDIT UNION DEPOSIT GUARANTEE CORPORATION

Deposits Fully Guaranteed

Credit Union Deposit Guarantee Corporation (the Corporation) is the deposit guarantor for Saskatchewan credit unions, and the primary regulator for credit unions and Credit Union Central of Saskatchewan (SaskCentral) (together, Provincially Regulated Financial Institutions of “PRFIs”).

The Corporation is charged through provincial legislation, The Credit Union Act, 1998, with the main purpose of guaranteeing the full repayment of deposits held in Saskatchewan credit unions. The Corporation was the first deposit guarantor in Canada and has successfully guaranteed deposits since it was established in 1953. By guaranteeing deposits and promoting responsible governance, the Corporation contributes to confidence in Saskatchewan credit unions.

For more information about deposit protection, the Corporation’s regulatory responsibilities, and its role in promoting the strength and stability of Saskatchewan PFRIs, talk to a representative at the credit union or visit the Corporation’s web site at www.cudgc.sk.ca.

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OFFICERS & VICE PRESIDENTS

Chief Execut ive Of f icer

GEORGE GREENWOOD

George came to TCU Financial Group as the CEO in 2015. He began his career in financial services in Vancouver with Vancity Savings Credit Union. He progressed through various positions in member services, product services and organizational development and training. He has gone on to act as the CEO for both Beaubear Credit Union and Advance Savings Credit Union, both located in New Brunswick. In his role as CEO at TCU Financial Group, George is responsible to provide vision, strategic direction and leadership to TCU. George completed his MBA at Dalhousie University. He is a Chartered Professional Accountant (CPA, CMA) and a certified Financial Planner (CFP).

Chief F inancia l Of f icer

GREG PEACOCK

Greg has over 24 years of experience within the financial services industry, over 23 years of experience of which has been within the credit union system, all with TCU Financial Group. Throughout these years, Greg has been involved in many aspects of the Credit Union including Loans Officer, Accountant and Branch Manager. Greg has been in his current role since 2006. He provides the strategic direction and leadership for the financial operations of TCU Financial Group and its subsidiary company. Greg graduated with a Bachelor of Commerce from the University of Saskatchewan. Greg volunteers his time as a Director and Treasurer for the Saskatoon Hilltop Football Club.

Tammy comes to TCU Financial Group after having spent her career in leadership positions across a variety of industries including Financial Services, Manufacturing, Research Development and Demonstration (RD&D), and most recently, Healthcare. Tammy has a Bachelor of Business Administration degree from Athabasca University and earned her MBA in Executive Management from Royal Roads University. She also holds a Project Management Professional (PMP) designation. In her role at TCU Financial Group, Tammy is responsible for formalizing the company’s strategic planning processes, leading the development of the strategy and implementing it across all functions and business units. She is also responsible for Facilities, Human Resources and Organizational Development as well as the Information Technology and Systems departments.

Chief Business Transormation and Strategy Of f icer

TAMMY MARTINS

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OFFICERS & VICE PRESIDENTS

Vice Pres ident Governance and Compl iance

DAWN BELL

Dawn returned to TCU Financial Group in 2018, after over 15 years in the trust industry. Dawn has both a Bachelor of Arts degree and a Bachelor of Lawsdegree from the University of Saskatchewan and is a non-practicing lawyer. Her professional experience includes people and operations management, regulatory compliance and risk management, as well as strategic planning. Dawn is filling the following positions as part of her role: Chief Anti-MoneyLaundering Officer, Chief Privacy Officer, and Complaints Officer.

Vice Pres ident , In formation and Systems Technology

BRENDA BYERS

Brenda as VP, Information and Systems Technology has over 30 years of ITexperience. She completed her B.Comm with a major in Computer Science and her MBA at the University of Saskatchewan. She is certified in Project Management, Enterprise Architecture and holds her IT Certified Professional, ITCP designation. The essence of her role is technology leadership, and connecting the IT and Systems departments to the strategic needs of TCU Financial Group

Chief Risk Of f icer

KATHY STYRANKO

With 40 + years in the financial services industry, Kathy’s experience covers all facets of the business including leadership roles at various levels. Kathy joinedTCU in 2003 and moved into her current role in 2007. Kathy is responsible for providing strategic leadership to all areas of Governance & Compliance and Corporate Operational Support.  In this role she has focused on enhancing the governance oversight, compliance, audit and risk management functions and developing strong operational support within the credit and central administration departments. Kathy is an empowering and inspirational leaderwho looks to bring out the best in others and remove obstacles in order toprovide direction to her team and support to all business lines.  A believerin lifelong learning, she has recently completed the Masters Certificate in RiskManagement and Business Performance at the Schulich Executive Education Center, York University.

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OFFICERS & VICE PRESIDENTS

Ronél came to TCU Financial Group in 2008 after a successful career in South Africa. Ronél’s honors degree in Organizational Psychology with a double major in marketing/public relations, has allowed her to have a broad understanding of the business world. Her retail focus made it easy to transition to the world of finance. During her career at TCU Financial Group, she has focused on aligning HR practices with TCU’s progressive strategic focus. In this regard, activities to refocus organizational culture linked to pro-active employee development initiatives have helped strengthen the organization.

Vice Pres ident , Member Experience

JILL NORRISH

Jill has been in the Credit Union system for 30 years, working at two other credit unions before coming to TCU Financial Group in 1998. She has held various positions throughout her career and was promoted to the role of VP, Member Experience in 2018. Jill holds her Certified Financial Planner® designation and in recent years has focused her education on Leadership Development. Jill and the Member Experience Team take pride in truly getting to know their clients to deliver personalized and trustworthy advice.

Vice Pres ident , People and Cul ture

RONÉL EGLINGTON

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