Corporate Office InaugurationApril 12th 2011

DESCRIPTION PAGE#

BoardofDirectors–2011 1

ProclamationFromHonorableMayor-CityofSugarLand 2

MessagefromChairman 3

MessagefromPresidentandCEO 4

MembersThroughHistory 5

OurBoardofDirectors1982to2011 13

PioneerMuslimFederalCreditUnion’sHistory 15

PioneerMuslimFederalCreditUnion’sCorporateOffice 19

OurManagementTeam2011 23

OurProductsandServices 24

CONTENTS

Board of Directors – 2011

Rahim Maknojia Chairman

Zulfiqar A. Momin Vice Chairman

Shaukat Ali President/CEO

Asif B. Ali Secretary

Zeeshan Momin Treasurer

Barkat Ali Dhukka Chairman, Credit Committee

Arif Maknojia Chairman, Supervisory Committee

Zulfiqar Sunesra Member, Credit Committee

Shenila Momin Member, Supervisory Committee

Irfan K. Ali Member, Credit Committee

Mehdi Sonesra Member, Credit Committee

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It is with great rejoice that I wish to Congratulate you on this historic and memorable occasion of our Corporate Office Opening Ceremony. Without your support and dedication this achievement would have only remained a dream.

Relocating to the new location will put our image as an institution in a totally new perspective. It will not be a relocation of premises only, our services and products will also be relocated to a new level. You will find that at our new location, professionalism will not only be expressed through our services but also through the environment. Extensively trained staff will always be there to answer your questions, and also take a note of your recommendations and suggestions.

We, at Pioneer, strongly believe in evolving through feedback from our members. Digital LCD panels have been placed to provide members information regarding products and services. A drive-through service has also been introduced in order to facilitate members who require availing the

services directly. Having the drive through lanes in operation will help us allocate resources in a more efficient manner.

To make the environment reflective of our culture and heritage, several graphics and art work have been put together in an articulated manner to visually portray the journey our community has made through the time. The internal architectural representations portray our identity and background.

This all became possible because of the dedicated services and un-compromised commitment from our Construction Committee Members, Board of Directors and Staff. Also important in the process was the continuous support and co-operation from our retiring Directors and Members who at all levels were our source of motivation.

With best regards and Congratulations,

Rahim MaknojiaChairman

Dear Members,

MESSAGE FROM CHAIRMAN

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Pioneer Muslim Credit Union has played an important role in the economic growth of our community since its inception in 1982. Our members have always looked up to Pioneer for all their monetary needs. It gives me great satisfaction and a sense (feeling) of pride when I hear our members attribute their financial success to Pioneer.

In order to fulfill the increasing needs of our members and keep up with changing technology in the industry, it became necessary to build our own office building specially designed to efficiently carry out day to day business. So in 2008, the Board of Directors purchased a land (approximately 1 acre) in the prosperous community of Lake Pointe Parkway, Sugar Land, Texas.

A Construction Committee comprising of seven members was formed to execute the construction process. The committee comprised of: Javaid Dhuka, Akber K.P. Momin, Iqbal Manji, Rahim Maknojia, Shenila Momin, Zulfiqar Sunesra and myself, committed itself to build a building we can be proud of. The Committee hired a reputable and experienced architectural, construction and interior design companies. They paid attention

to minute details and blended our history and traditions in the design. The building you see today is the product of their commitment, endless hours of deliberations and their uncompromising desire to produce a unique building. I am convinced that the environment created by the surroundings and the design of this building represents our commitment to the highest level of service we will render our members.

At the end, I extend my profound thanks to our Guest of Honor: Honorable James A. Thompson Mayor - City of Sugar Land, and Aftab Ghesani, President His Highness The Aga Khan Council for the Southwestern United States and all invited guests for their presence at this historic event. I would also like to thank all the past and the present members of the Board of Directors and staff members, members of the Construction Committee, members of the Area Committee, volunteers and all the members for their contributions to the success and progress of this credit union.

With best regards and congratulationsShaukat AliPresident/CEO

MESSAGE FROM PRESIDENT & CEO

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History of Pioneer Muslim Federal Credit Union (PMFCU) derived its origin from the Sidhpur based

Momin Community. Historic documents reveal the existence of the community as far back as the early 1500s. The entire Momin community was habited in twenty four closely knitted villages around a central city called “Sidhpur”, located in North Gujarat, India.

While India was part of a British colonial rule during the mid 1900s, industrial revolution started proliferating ranks of upper class citizens of the nation. Industrialization was however opposed and considered an economic threat by majority of the Indians. In the absence of industries for mass production, economy of the country landed only on two main shoulders: Agriculture and Trade. Sidhpur, being geographically further away from country’s major financial center Bombay (now Mumbai) relied heavily on agriculture. Momin community, like other primitive communities of Sidhpur, earned their living through their participation in various aspects of agriculture (mainly agriculture and dairy farming).

MEMBERS THROUGH HISTORY

MEMBERS THROUGH HISTORY

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The Villages of Momin Community

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During the middle of the 19th century was a very vulnerable period in the history of the sub-continent, it played a crucial role in the success journey of the community members. During the 1940s when the independence movement gained momentum, the agriculture and trade of the country fell to its record low, introducing high levels of inflation and

unemployment. The young members of the community were left with no choice but to move out the sections of the country that were offering hopes for opportunity. This led to the first major set of migrants (mostly young men) making their way to the financial capital of India; from Bombay to the financial capital of Pakistan; Karachi.

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Initially they engaged themselves in low to mid level blue collar jobs such as taxi driving, milk supply, retail store salesmen, milk shops, and restaurants etc. It is very important to note that even during this span of struggle; they worked and stayed as a united community. They supported each other financially and morally. As the elders often mentioned, when ever any Momin migrated to Bombay or Karachi, the current residents of that particular area took the responsibility of helping them to get adjusted. They helped those who were new acquire employment and arranged roommates for their stay. This sense

of community and brotherhood paid incentives fairly quickly, in less than a decade members had enough savings to collaboratively start a business of their own. During these critical years members of the community were actively involved in establishing co-operative dairy societies and small scaled co-operative credit and housing societies (pre-dominantly in Sidhpur, Mumbai, Karachi and Hyderabad). It was the idea of coming together and working as group that gave them the direction to achieve success and prosperity.

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By the mid 1960s, members were considered an active business community in Bombay and Karachi. As members became more affluent, they started investing in their children’s education and development. While their businesses continued to grow, it created room for more people to come and join them, therefore, by late 60s almost all of the

working class of the community moved to Bombay and Karachi, leaving behind their land and agriculture portfolios for the elderly to supervise. Those who had come earlier had enough resources to send their children abroad for higher education. The first migration to USA occurred approximately in the late 1960s and early 1970s.

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US dollars gained significant strength by early 1970s. This encouraged the community members to migrate to USA from India and Pakistan. History in some ways repeated itself in a short span of twenty years; the first batch of people who came to USA for better employment ended up working in low to mid level blue collar jobs. They mostly worked in convenient stores as cashiers and attendants at dry cleaners. Once again they demonstrated a strong sense of brotherhood; they helped each

other through thick and thin. New arrivals were welcomed and helped in acquisition of employment and residence. As had happened twenty years ago, they were rewarded for showing this strong sense of community hood, by the late 1980s and early 1990s they were in a good financial position where they were able to bare the capacity to collaboratively start their own businesses. In a short span of twenty years, members had established themselves as a major business community in the state of Texas.

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With more than 1200 convenient stores in Houston and 300 in Austin, they dominated the small retail industry in the Texas region. With this emergence of financial stability, parents started putting more emphasis in the field of education and began building

bridges with other neighboring communities. Today, children from our community have demonstrated excellence in all areas of education such as Medicine, Engineering, Law, Social Sciences, Arts, Finance, Management and many more.

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Our members who migrated from Sidhpur to Houston still continue to strive for better opportunities and socio-economic development. Pioneer Muslim Federal

Credit Union in its own capacity has played a vital role in their development and prosperity.

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KARIM A. MOMIN AKBARALI K. MOMIN AMIRUDDIN S. MOMIN SADRUDDIN K. MOMIN MUHAMMAD A. MOMIN AKBAR A. MOMIN

HADI DHUKASHOUKAT A. KHOWJAJAFFAR A. ALIJILIAQUAT A. MOMINQURBAN A. MOMINAKBER A. KHOJA

NAZARALI K. MOMIN BARKAT ALI TAJUDDIN M. ALI ALI M. BHAI SULTAN A. KHOWJA

AMIN A. MOMINPYARALI K. MOMIN ASHRAF ALI AMIRALI P. MOMIN

NAZARALI M. MOMIN

KARIM V. MAKNOJIASADRUDDIN A. MOMIN

RAJAB A. KHOJANOORDIN R. MAREDIALIAQUAT A. MOMINNOORBANO S. ALIIQBAL M. MANJIAKBARALI N. MAREDIYA

HASSANALI N. MOMIN SULTAN Q. MUKHI RUKNUDDIN ALI AMIN N. MAREDIA AMIN MUHAMMAD KHOJA ABDULBHAI M. MOMIN

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SYED KHOJA ZOHRA MOMIN SHAKIL S. MOMIN SADRUDDIN QURBANALI AMEEN N. ALI

ZIKAR MOMIN JAVAID R. DHUKASOHAIL MOMINDr. AMIR ALI NIZAR MOMIN

TAJUDDIN DHUKKA

MEHMOOD CHAROLIA

AHMEDALI MOMINAKBERBHAI MAREDIANIZAR K. MOMINZULFIQAR MOMINSADRUDDIN KHAWAJA

ASMITA MAKNOJIA ZIKAR MAREDIA ASIF MAREDIA HASSANALI MAREDIA

SABZA ALI MOMIN

SOHRAB K. ALI

NOORDIN KHOJA

ARIF MAKNOJIA

SHAUKAT ALI

ASIF B. ALI

RAHIM MAKNOJIA

ZULFIQAR A. MOMIN

SHENILA A. MOMINZULFIQAR SUNESRA

MEHDI SONESRA BARKAT DHUKKA

IRFAN K. ALI

SHAHID MAKNOJIA

ZEESHAN MOMIN

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Pioneer Muslim Credit Union is a Shia Imami Ismaili Muslim; Momin Community based Credit Union in Houston, Texas. It was established in 1981 as a State Charter Credit Union to operate in the State of Texas and in August 2009 it was converted to a Federally Chartered Credit Union, as a Pioneer Muslim Federal Credit Union (PMFCU). Presently it is serving more than 5600 members across the nation with a majority of members from the State of Texas.

At the time of its establishment, the institution had a total of ten members. The

scope of the establishment was to provide members a platform that encouraged savings and provide an opportunity to execute financial borrowing for personal and business purposes. Given its small pool of members and financial strength, first savings scheme was introduced in 1982, which enabled members to deposit $10 monthly in their savings account. Similarly, a loan program was also introduced, which provided members capacity to obtain loans to a maximum of $500.

PIONEER’S HISTORY

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As the membership strength grew, the capacity of Pioneer to serve it’s members also increased. From its very basic operative capacity, Pioneer started evolving into a fully functional financial Credit Union. New products and services were introduced keeping in mind its diverse beneficiaries. Good dividends were offered on Share Savings and Share Draft (Checking) accounts, encouraging people to save more. Following

are the Key Indicators depicting the progress and growth of PMFCU over the last 29 years.

Over the period of time, PMFCU has catered the financial needs of it’s members through Personal Loans, Auto Loans, Education Loan, Member Business Loans, Commercial Real Estate Loans, Home Mortgage Loans, Personal Line of Credit and Credit Cards.

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Keeping in mind the need to expand services to our members residing in Austin, an operational branch was inaugurated in April 2007. Similarly to cater the need of members residing outside the State of Texas, the Board of Directors in 2009 initiated movement to obtain Federal Charter in order to acquire capacity to operate in any state of the USA, accordingly the Federal Charter was granted in the year 2009.

Since its establishment, Pioneer operated on a

leased office space. Having gained substantial financial strength over the years, in 2008 the Board of Directors envisioned the idea of constructing a Corporate Office of Pioneer Muslim Federal Credit Union’s ownership. In less than a year the site was identified and purchased a land at Lake Pointe Parkway, Sugar Land, Texas. Within 20 months of the purchase, construction began. With the commendable support of the Construction Committee, Board of Directors and Staff, we are witnessing this dream come true.

PARTICULARS 1982 1990 1995 2000 2005 2010

LOANS 88,000 2,810,840 8,153,540 17,852,867 24,607,040 38,280,939

MASTER CARD 0 0 407,085 251,394 3,716,055 1,830,801

TOTAL LOANS $88,000 $2,810,840 $8,560,625 $18,104,261 $28,323,095 40,111,739$

SHARE DRAFT 0 0 0 0 2,835,573 2,943,293

SHARE SAVINGS 95,000 3,335,997 8,038,963 15,485,555 22,108,312 24,354,628

IRA ACCOUNTS 0 0 0 0 3,486,260 8,284,261

TOTAL SAVINGS $95,000 $3,335,997 $8,038,963 $15,485,555 $28,430,145 35,582,182$

NET PROFIT $4,525 $26,200 $445,070 $856,584 $288,728 1,077,411$

NET WORTH $4,525 $178,245 $1,922,933 $4,693,223 $8,861,205 13,093,549$

TOTAL ASSETS $99,525 $3,515,242 $9,962,786 $20,180,872 $37,296,460 48,876,959$

MEMBERSHIP # 125 1112 1974 2913 4291 5538

NO. OF LOAN BORROWERS 53 516 798 853 1112 1613

TOTAL LOAN OUT (DURING YEAR) $94,000 $3,794,465 $6,976,551 $11,428,100 $12,451,562 22,623,353$

NO. OF MASTER CARD HOLDERS 0 0 350 702 1218 947

DIVIDEND - SHARE SAVINGS RATE 6.50% 10.00% 9.00% 9.50% 5.50% 2.63%

NUMBER OF STAFF MEMBERS 1 3 4 4 7 14

KEY INDICATORS 1982- 201017

We strongly believe that this new Corporate Office will serve as a milestone in the History of Pioneer.

Over the period of twenty nine years, seventy three Board of Directors have served the Credit Union on a voluntary basis in various capacities. In its three decade long history, Pioneer has come a long way in establishing itself as one of the best and exemplary Credit Unions of the USA (We have been assessed to be among the top 1% Credit Unions across the nation in terms

of performance, by several evaluating agencies).

The success of Pioneer cannot be attributed to any one individual. On the contrary, it is a living example of a how success is achieved, through collaboration and support. Its past and present leadership, employees and the entire member body, all have equally strived to take Pioneer to what it is today. Pioneer Muslim Federal Credit Union , in the core of its policies, firmly believes in its primitive motto “Members Helping Members”.

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PIONEER’S CORPORATE OFFICESince its establishment, Pioneer Muslim Federal Credit Union (PMFCU) has played a pivotal role in uplifting the socio-economic conditions of its members. Be it through loans or simple financial advising; Pioneer has made every possible effort to address the needs of its members. The dream of having our own Corporate Office building was

long aspired by members and Board of Directors equally. The Board of Directors in 2008 took initiatives to turn the dreams into reality. After thorough discussions and series of evaluations, land (approximately One Acre) for the future Corporate Office was purchased in prosperous vicinity of Lake Pointe Parkway, Sugar Land, Texas.

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In July of 2009, a Construction Committee was formed to undertake the intricate task of construction assignments. The committee comprised of: Javaid Dhuka, Akbar K.P. Momin, Iqbal Manji, Rahim Maknojia, Shenila Momin, Zulfiqar Sunesra and Shaukat Ali. An architect for the project was selected after evaluating seven different architects firms. Each had their own flavor in designing and conceptualizing buildings. After reviewing all

the proposals, in September of 2009 the Board of Directors in consent with the construction committee decided to award the architectural contract to McCleary German Architects (Principal - Scott Clanton). His selection for the project was made after reviewing the quality of his prior projects and his expertise in designing banks and credit unions. At the point of selection, McCleary German Architects had already designed many banks and credit unions.

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Once the architect selection was finalized and the designing phase was initialized, the intricate task of selecting a General Contract (GC) for the construction began. After thorough evaluations and considerations from six major bids, Sundance Construction Company (Principal – Kevin H. Harris) was awarded the contract for construction in August 2010. After the General

Contractors selection, the historic event of the Ground Breaking Ceremony was performed on July 11, 2010 by Mukhi Saheb and Kamadia Saheb of Houston Principal Center (HPC) and Head Quarters (HQ) Jamat Khana accompanied by the President, His Highness The Aga Khan Council for Southwestern, USA and Chairman of Pioneer Muslim Federal Credit Union .

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The construction commenced in September 2010. Within a short span of six months, the project was completed and was ready for operations by March 2011, costing about $2.60 million. Grand Opening Ceremony has been performed by Honorable James A. Thomson, Mayor – City of Sugar Land on April 12, 2011. It has been opened for the members for operations from March 21, 2011, on the auspicious day of Navroz.

The new premises will serve as a major milestone in the history of PMFCU and the Ismaili Community. Its ultra-modern design and spacious internal layout carry a flavor of Islamic Architecture and

have reflections of our generations old heritage of Sidhpur (a district of North Gujarat, India). The office building is constructed on 7160 square feet of area with a 3 lane drive through and an ATM facility. From its decorative layout to parking area, everything has been designed to accommodate the needs of the members.

Inclusion of the new State of Art Building will help us serve our members in a more efficient manner. Board of Directors in conjunction with the Staff members have formulated a wide range of products and services that will further our effort to help members acquire maximum benefits from the institution.

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Employees play a very important role in the development and progress of any institution. PMFCU have always been very fortunate in attracting talented and professional individuals to work with. From frontline tellers to its upper management, PMFCU has a good mix of employees from very diverse backgrounds. They work in close collaboration with the Board of Directors in architecting and implementing new products and services. It is a result of their sheer hard work and dedication that PMFCU meets the high expectation of its members when it comes to providing excellent customer service. The Board of Directors have always appreciated and valued their contributions in making PMFCU an exemplary Credit Union among its competitors.

Our Management Team 2011

SarfarazAliAssistantManager

NooruddinMominAccountant

GulbanoMohammedSeniorLoanOfficer

SwatiPatelOperationsManager

FaizaAliHeadTeller/Supervisor

AfrojaDhukaCreditAnalyst

AnjumKarimAssistantAccountant

ShehzeenManjiCollectionAssistant

NeelofarJafferAdministrativeOfficer

Austin

ZaineKhawajaAdministrativeAssistant

Austin

ZahraAliAdministrativeAssistant

NaeemCharoliaAdministrativeAssistant

MaheraMominOfficeSecretary

MahjabeenMominAdministrativeAssistant

ShehnazSamnani-JiwaAdministrativeAssistant

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Products:

Personal Banking Share Savings Share Draft IRA’s Master Card Personal Loans Auto Loan Education Loan Personal Line of Credit Home Mortgage Loan Debit Card

Business Banking Small Business Checking Account Commercial Business Checking Account Member Business Loan Commercial Real Estate Loan Business Equipment Loan Business Security Loan

Services:

Online BankingAutomatic Clearing House (ACH)Audio Response Teller (ART)Safe Deposit BoxesCashier ChecksATMDrive ThruCash Deposits & WithdrawalsNight DepositoryeStatementsNotary ServicesGAP InsuranceHealth InsuranceUCC Lien Search

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Our Products and Services

1521LakePointeParkway,SugarLand,Texas77478Phone:281-566-8000Fax:281-566-8001

www.pioneeronline.org

5555NorthLamarBlvd.,Suite,C107Austin,Texas78751Phone:(512)467-PMCU(7628)Fax:(512)467-PFAX(7329)

OFFICELOCATIONSUGARLAND

OFFICELOCATIONAUSTIN