2015800.845.5025 | ConnexusCU.org

ANNUAL REPORT

2

I am pleased to share with you, our members, the exciting change and growth that took place in 2015 at your credit union. At Connexus Credit Union,

we measure ourselves against four distinct Strategic Positions: Member Commitment, Outstanding People, Superior Technology, and Sustained Profitability. We had numerous accomplishments in each of these four areas, with many of them benefiting you, our loyal members.

MEMBER COMMITMENT We strive to earn our members’ loyalty by fulfilling their needs and delivering a member-centric experience every way, every time.

In 2015, we welcomed 27,000 new members through the merger with MN based Endura Financial Federal Credit Union. In October of 2015, we finalized the legal merger with the Air Line Pilots Association Federal Credit Union (ALPA FCU) which welcomed an additional 5,000 members, many whom are global travelers and residents.

As such, it was essential for us to provide expanded service to meet the schedules and lifestyle of our growing membership. As an example, we opened a new, state-of-the-art, branch in the Atrium buildings in downtown Cincinnati to meet the needs of Cincinnati Bell and Convergys.

In addition to accessibility, our members benefit from the availability of low interest loans and high yield deposits. Connexus was again recognized by Bankrate for our nationally-ranked high-yield checking accounts. Both MyRewards and Xtraordinary Checking were listed

among the ‘Top 13 High-Yield Checking’ accounts in the country.

At Connexus, we strive to be a strong financial institution that gives back to our members. As a cooperative, we listen to what our members need and want, and then make advancements to enhance their experience. Whether through savings, service or security, we are focused on our members and how we can enhance their experience.

OUTSTANDING PEOPLE We exceed our members’ expectations by attracting, selecting and retaining the best workforce. It is our goal to earn the distinction of being the credit union of choice for the best people in our industry. On January 1, 2015, our employee benefit lease arrangement with Liberty Mutual Insurance came to an end. We are extremely appreciative of the employee relationship

a message from YOUR PRESIDENT

J. David Christenson

3

status we shared with Liberty Mutual for many years, and we look forward to continuing to serve Liberty Mutual employees, retirees and family members. The past year proved rewarding as we established a competitive new employee benefit plan, developed and delivered credit union focused training and development plans, and created many new job opportunities for our employees.

Our employee base is strong and growing. We have retained and hired top talent at our headquarters in Wausau, WI, as well as in our MN, OH, IL and NH regions. As we celebrated our 80th year of serving our members, we gave back to our employees through a series of summer events, many of which they could enjoy with their families.

SUPERIOR TECHNOLOGY We utilize superior technology to create competitive advantages, as well as make our members’ and employees’ lives easier and more secure. Our membership is expanding to all corners of the globe, so it is imperative we offer the accessibility our membership needs, 24 hours a day, seven days a week. The utilization of our state-of-the-art online and mobile banking continued to expand, with over 32,000 registered users at year-end.

The last quarter of 2015 was especially productive, as we completed the Endura Financial Operational Merger. For our employees, we integrated all of our new locations onto one internal network, as well as integrated our core member data systems. This allowed us to offer the same level of service and security to all of our members, regardless of their past affiliation.

SUSTAINED PROFITABILITY It is essential that we perpetually generate a return on our assets so we may fund our three other strategic positions,

which all benefit you, our members. Much of our asset growth can be attributed to our merger with ALPA FCU. ALPA FCU, headquartered in Burr Ridge, IL, accounted for $175 million in asset growth.

In 2015, we increased our assets by $323M, bringing our year-end total to $1.32B. This was a milestone year as we exceeded $1B in total assets and laid the foundation for stronger profit growth in future years.

OUR VALUES At the center of all we do is our Connexus set of family values: Integrity, Respect, Open and Honest Communication, Work Hard / Play Hard, Learn and Grow, and Synergy. These values are at the root of how we make business decisions and how we hire people. These values represent who we are and who our members can count on to do things the right way, every time.

Our unwavering commitment to our values, as well as our four strategic positions, is largely responsible for our continued success. That said, none of our success would be possible without the loyalty and support of our membership. We are proud of who we are, who we serve, and that we remain member-focused and value-driven. A sincere ‘thank you’ to our members for helping us achieve another milestone year. We are honored to be your credit union.

Regards,

J. David Christenson President / CEO Connexus Credit Union

4

balancesheet

ASSETS 2014 2015Cash $ 8,268,702 $ 16,106,937Investments 88,907,748 189,571,807

Member Loans 836,762,915 1,035,524,660

Fixed Assets, net 10,860,764 11,426,427

NCUA Insurance Deposit 7,579,817 10,052,696

Other Assets 43,814,593 56,496,167

Total Assets $996,194,539 $1,319,178,694

LIABILITIESMember Shares $ 203,455,132 $ 324,240,181Term Share Certificates 165,980,600 237,845,110IRA Accounts 61,559,320 81,738,338Checking Accounts 163,603,098 181,207,341YES Money Market 123,427,280 202,928,491Money Market Elite 59,339,187 1,712,824Non-Member Deposits 53,678,347 92,561,730Corporate Borrowings 43,815,431 43,718,589Other Liabilities 10,645,206 15,138,140

Total Liabilities $885,503,601 $1,181,090,744

RESERVESReserves & Undivided Earnings $ 110,690,938 $ 138,087,950

Total Reserves & Liabilities $996,194,539 $1,319,178,694

Federally Insured by NCUA.

A certified audit was completed by CliftonLarsenAllen LLP for the twelve month

period ending December 31, 2015. The financial statements for the credit union

are in order and were reported in accordance with generally accepted

accounting principles (GAAP).

Audit Committee: Todd McDonald, Chair of Audit Committee

& Lyle Beck, Ron Dins, Tom Seuntjens

5

incomestatement

total assets

INTEREST INCOME 2014 2015Member Loans $ 25,288,206 $ 38,277,157Investments 219,044 778,756

Total Interest Income $25,507,250 $39,055,913

INTEREST EXPENSEMembers’ Accounts $4,984,958 $8,202,410Term Share Certificates 881,849 607,969

Total Interest Expense $5,866,807 $8,810,379

Non-Interest Income 12,338,875 12,372,296Non-Interest Expense 22,695,299 33,254,446

Net Income $9,284,019 $9,363,384

2011

20

12

2013

20

14

2015

$356,486,477

$458,533,838

$517,106,502

$996,194,539

2015 $1,319,178,694

32.4%ASSET GROWTH

6

SECURITY Connexus Credit Union is committed to the safety and security of your confidential information and deposits. In 2015, we continued to enhance our systems, policies, training, and technology to support this commitment. All Connexus employees are required to attend multiple confidentiality and security training sessions upon hiring.

SERVICE Connexus strives to provide members with access anywhere, anytime. Whether online, in a branch, or on the phone, we have the skilled professionals to connect you with your money.

In 2015, we increased our Member Contact Consultants by 30%, extended our Member Contact Center hours, and added temporary staff to help serve our members transitioning from Endura Financial. To make sure our staff was fully prepared, we introduced a Learning Management System to better train and develop

2015 YEAR IN REVIEW

employees. We also created a monthly e-newsletter called Learn | Earn | Save to provide more information to our members.

SAVINGS Providing members with savings in the form of low interest rates on loans/mortgages and high yields on deposit products is a strategic platform Connexus values greatly. We continued to deliver these financial benefits in 2015 to an even larger member base.

For the fourth year in a row, Connexus received national recognition for high yield checking accounts from Bankrate. Connexus was also recognized by Kiplinger and NerdWallet, two leading financial websites, for being a top credit union. Additionally, for several months in 2015, Connexus could be found near, or at, the top of Bankrate’s national CD yield charts.

Online Branch Phone

Website

Online & Mobile Banking

Email

Chat

Walk-Up Service

Drive-Up Service

Member Contact Center

Automated Phone Banking

access

7

and virtual branch experience. We received a record number of member calls this past year and have added representatives in our Wausau, WI headquarters to meet our members’ needs.

Much of the success at Connexus may be attributed to the leadership of our CEO, J. David (Dave) Christenson. This past November, he was inducted into the CUES (Credit Union Executives Society) Hall of Fame. Dave was one of only seven credit union executives to receive this honor. Dave has been at the helm of Connexus Credit Union since 1995, and has guided the credit union through multiple mergers and challenging financial markets with a steady hand and constant focus on member service. It is through his leadership that Connexus topped $1B in assets, with 202,255 members spread across all 50 states.

Yet, with our monumental profitable growth and innovation, Connexus remains true to our mission, which is to help you, our members, achieve your personal financial objectives by anticipating your needs, and exceeding your expectations with superior service and products.

Thank you for your loyalty. We look forward to meeting the financial needs of you and your family in the years ahead.

Sincerely,

Ron Dins Board Chair

On behalf of the Connexus Board of Directors, and as I reflect on my first term as Board Chair, I am excited to share with you the momentum

taking place at your credit union. Connexus’ growth this past year, largely attributed to mergers with Endura Financial Federal Credit Union and the Air Line Pilots Association Federal Credit Union, has allowed us to continue to invest in the Savings, Service and Security for each and every member.

As for you, our members, our Connexus deposit rates were some of the most competitive in the nation. In 2016, we will further enhance our membership and loan application process through new mobile-friendly online applications.

The service and accessibility of our branches remains a top priority. The beautiful new downtown Atrium branch in Cincinnati now serves Cincinnati Bell and Convergys employees, retirees and their family members, while the former Endura Financial branches in MN have now been rebranded as Connexus and continue to serve Honeywell and Orbital ATK employees, retirees and their family members. We have also implemented a new Connexus Certification training program for all branch employees, to ensure that you receive consistent and exceptional service during every visit.

We continue to experience a surge in remote services through our Member Contact Center. Through continued training and use of new technologies, our Member Contact Center employees strive to offer a convenient

Lyle BeckSteve DerebeyPaul HunsangerJane Kittel

a message from THE BOARD

the board OF DIRECTORS

Gary KlingbeilTodd McDonaldSteve Raether

Thomas SeuntjensMark SteinbergSteve Zeinemann

800.845.5025 | ConnexusCU.org 2015800.845.5025 | ConnexusCU.org

ANNUAL REPORT