with purpose.2016 ANNUAL REPORT

UP 8.5%

One indicator of economic confidence is the number of times Libro gets to say “you’re approved” to a business owner. Based on what we see, trust in Libro and in the future is growing lock step in our regional economy.

$171 million

INDIVIDUALS / BUSINESSES / COMMUNITIESArticulating a purpose focused on a greater good is popular in business today. At Libro, we’ve replaced talking with action – to grow prosperity in southwestern Ontario. Libro is investing 100% of income back into the people, businesses and communities we serve – prosperous Owners leading to a prosperous credit union which in turn creates investment in our region. This informs how we think, collaborate, innovate and build partnerships. It builds alignment between how we operate and our reason for getting up each morning. Showing the results of that is the purpose of this year’s Annual Report.

Growth in Owner portfolios means individuals and businesses are entrusting more of their prosperity with Libro.

AVERAGE OWNER

PORTFOLIO

SINCE 2015

$65,806

More and more Libro Owners are engaging in prosperity conversations with their Coaches – they’re setting goals, creating smart budgets and gaining control over their financial futures.

OWNERPROSPERITY

PLANS

6,919

When organizations grow, one could expect a decline in customer satisfaction. At Libro our Owner/customers continue to give Libro high marks as demonstrated in the 2016 Owner Satisfaction Survey.

OWNER SATISFACTION

4.5 5out of

UP 6.8%NEW!

AG/COMMERCIAL LOAN GROWTH

Libro Credit Union is motivated by a purpose that is unique to our region – we make a di�erence right here. Our Owners will be better o� because they bank here; if that doesn’t happen we’ve failed them. Business owners will discover there is more to business financing than ratios; our values-based lending philosophy is tailor-made for them. Our region and its wonderful blend of rural and urban communities will prosper because we focus the resources of a multi-billion dollar financial institution here; all ships will rise as a result. That is both our passion and Libro’s operating commitment.

Steve BoltonPresident & CEO, Head Coach

STABILITY / GROWTH / PERFORMANCE“

Deep, well-diversified financial strength is the foundation of our capacity for investment, innovation and stability for the Owners who count on Libro every day.

ASSETS UNDERADMINISTRATION

$4 billion

While profit is not the focus, profitability enables our purpose; the more we earn, the more we reinvest for our Owners and our region where it will do the most good.

A�er several years of joining with other credit unions, profit sharing with our Owners is up this year and on track for increases next year. In addition to Class P profit sharing, Libro also paid a 4% return or, $4.4 million, in Class I Investment Share Dividends.

CLASS P PROFIT SHARING AND

DIVIDENDS

$2.1 million

Referrals, marketing and Libro sta� activities generated better-than-expected new Owner growth in 2016, bringing the total number of Libro Owners to 103,581. All Libro regions in southwestern Ontario present opportunities for more growth in the future.

NEW OWNERSIN 2016

7,441

UP $300 million

”

NET INCOME$8.6 million

UP $6.4 million

Libro Credit Union is motivated by a purpose that is unique to our region – we make a di�erence right here. Our Owners will be better o� because they bank here; if that doesn’t happen we’ve failed them. Business owners will discover there is more to business financing than ratios; our values-based lending philosophy is tailor-made for them. Our region and its wonderful blend of rural and urban communities will prosper because we focus the resources of a multi-billion dollar financial institution here; all ships will rise as a result. That is both our passion and Libro’s operating commitment.

Steve BoltonPresident & CEO, Head Coach

SKILLS / HEART / RECOGNITION

Libro’s investment in sta� training (calculated on a full-time equivalent basis) demonstrates our commitment to giving our people the skills and support they need to make a meaningful di�erence in the lives of our Owners.

STAFFTRAINING

$1,338 per FTE

The AON Best Employer program is a meaningful, evidence-based measure of sta� engagement. We achieved Platinum recognition for the second year in a row with our highest engagement scores yet.

Libro is good people – perhaps that’s a unique way to state it, but our employees’ capacity to give of themselves and their personal time in their communities is beyond compare. We employ peope who are committed to building prosperity.

STAFF VOLUNTEER TIME

13,203 Hours

At Libro, our sta� are our brand. Their joy in what they do every day translates into Owner happiness and well-served communities on the outside while working more e�iciently and purposefully on the inside. That is the foundation of a prosperous credit union. Libro will continue to invest in having the best team of teams compared to any other financial institution in southwestern Ontario. We will continue to attract the best people as we grow.

Libro is committed to the well-being of sta� beyond the workplace – this holistic approach supports the Be Libro objective that sta� be joyful in their work. Anything less undermines their ability to help our Owners achieve financial happiness. The words are deliberate – and unique to Libro.

STAFF AGREEMENT IN HEALTH & WELL-BEING

SUPPORT

2016 / 2017

93%

PARTNERING / CONFIDENCE / ACCELERATION

Our partnership with the University of Guelph has established the Libro Professorship in Regional Economic Development for southwestern Ontario, aiming to harness this region’s tremendous potential for growth and development, especially in the food and agriculture industries.

Everything Libro does – from service excellence to thought-leadership and economic development to social media conversations to marketing programs and advertising – contributes to growing awareness. The more awareness grows, the more new Owners we attract. The more Owners we attract, the more we can invest here.

Libro is collaborating with the Western University Accelerator to support southwestern Ontario entrepreneurs. Encouraging new, innovative businesses to start up, stay, and grow in this region is our Prosperity Purpose in action.

New thinking about the economy of southwestern Ontario and investment in the future is required. Libro is leading that e�ort. We know we need entrepreneurial growth, business capital attraction and collaboration in the face of economic disruption. We need a deeper understanding of the business eco-system that exists and what it will take to ensure growth. At a very basic level, we need more and better employment to keep and attract young people and families. For the first time – ever – one financial institution is focusing all its resources on the future prosperity of southwestern Ontario. That is our purpose.

AWARENESS61%

Financing fuels the economic engines of our communities in southwestern Ontario. Being the partner our small business owners can depend on builds confidence in the future.

INVESTED IN LOCAL BUSINESS

$1.6 billion

INVESTING / EDUCATING / COACHING

We believe the pillars of community prosperity are regional economic development, money smarts and youth leadership. This is where Libro’s support is making a di�erence.

IN COMMUNITYINVESTMENTS

$1.5 million

This program empowers individuals to make the right decisions for themselves and their families. Seventeen Libro sta� are certified volunteer trainers who deliver workshops in their communities.

FINANCIAL LITERACY

EACH ONE TEACH ONE

Libro Coaching is di�erent – the blend of expertise and caring, and our commitment to taking the time needed to actually help people achieve their goals is unique. Well-coached families, businesses and individuals are more confident with their money and that is reflected in Libro’s loan and deposit growth.

Last year, Libro waived $125,723 in service fees on almost 3,000 non-profit accounts. We figure they can put that money to better use in the places we all call home.

A core part of Libro’s Prosperity Purpose is our focus on stronger communities in southwestern Ontario. Everything we do contributes to this; it is a virtuous circle of growth between our Owners, where they live and the credit union they count on. Prosperous communities have economic vitality. They are home to engaged residents. They are safe and secure. They are increasingly diverse. Libro is located in 25 communities from Amherstburg to Cayuga. Each one is very di�erent. What they share is hope for the future and a strong work ethic common to this region. That’s worth investing in. And that’s why they also share Libro.

TOTAL DEPOSITGROWTH

UP 8.4%

TOTAL LOAN

GROWTHUP

8.2% COMMUNITYACCOUNTS

2,715

SEEING 360º / ENGAGING / EFFICIENCYWhat will the future bring? Artificial intelligence, new entrants in the sharing economy, drone-enabled grocery deliveries – from the unimaginable to ideas that are just around the corner, we live in an age of radical change and disruption. This reality will challenge what exists and, equally important, create opportunities for those who embrace change. Libro embraces change. We are working to be better prepared for what’s coming. We are using e�iciency gains to invest in new ideas. We are setting our sights beyond transactional banking by fulfilling our proserity purpose. The future is coming – being Libro is how we will thrive.

Libro will evolve into a community of innovators over the next few years. Twenty-four sta� received high-level innovation training to support our journey of transforming banking. For organizations to prosper in this age of disruption, old thinking must be replaced by innovation.

INNOVATIONTEAMS

Our Owners want fast, simple and convenient access to their online banking and useful financial information. Libro’s new website and mobile banking platform is an engaging, informative and responsive solution – along with new financial tools and resources to support your journey to prosperity.

Our Coaches engage in conversations with our Owners. Those conversations help us tailor product and service o�ers to Owner needs proactively, and when the timing is right. Libro calls these Owner opportunities – and our teams have identified $2.4 billion in upcoming Owner opportunities over the next three years.

OWNEROPPORTUNITIES

OVER 3 YEARS

$2.4 billion

Libro expenses were higher over the last few years as we joined with other credit unions. That work is done and our e�iciency ratio improved a small amount in 2016. Going forward, we’ve adopted a Lean continuous-improvement philosophy to keep pushing that ratio lower. The more we save inside, the more we have to invest in the prosperity of our Owners, sta� and communities.

EFFICIENCY87%

Libro has 31 branches in 25 communities. Well over two million people are within the reach of our brand. At over 103,000 Owners, we have room to grow. And we will. What’s powerful to know is that the infrastructure and branch network we already have in place can support that growth for years to come. Meaning we can invest more of what we earn in new ideas, sta� skills and Owner service. Libro’s footprint is significant – our step is light and nimble.That is a recipe for prosperity.

ESSEX WOODSLEE

ARKONA

ST THOMAS

CAYUGA

STRATFORD

LISTOWEL

EXETER

HARROW

BELLE RIVER

LEAMINGTONKINGSVILLE

BLENHEIM

STRATHROY

SIMCOE

CALEDONIA

HAGERSVILLE

GODERICH

CLINTON

WINGHAM

SARNIA

AMHERSTBURG

LONDON

5

K-W

3

WATFORD

Prosperity PurposeAdopting a purpose-based business model fosters financial well-being, is a source of sustainable profitability, creates a virtuous circle of growth, and is a reason for people to partner and do business with Libro.

• Libro’s model begins with our Owners. When they entrust their business and deposits with us, they support the success of Libro. A stronger credit union has better tools and capacity to innovate and provide personalized advice, service and a seamless banking experience to contribute to the prosperity of our Owners.

• Libro activates those Owner deposits through loans, investments and partnerships with people, businesses, and organizations to create new markets and strengthen our communities.

• Stronger communities further support the economic success of Libro and all of southwestern Ontario, encouraging more Owners to do business with Libro and increasing our capital for purpose-based investments.

• Prosperous communities have a stronger economy and cleaner environment that support Owner success and well-being. Prosperous Owners contribute to their communities by supporting the local economy, participating in community initiatives and volunteering.

IT ALL STARTS

WITH YOU

Libro SuccessDeposits • Investments • Referrals

Libro SuccessImpact Captial • Partnerships

Community SuccessGrants & Sponsorships • Impact Investments

Thought Leadership

Owner SuccessEmployment opportunities

Sense of community

Community SuccessContributing to local economy

Volunteering

Owner SuccessCoaching • Services • Profit Sharing

Stronger Economy • Cleaner Environment • Improved Social Well-Being

Prosperous Credit Union

Prosperous Owners

Prosperous Community

1-800-361-8222 | libro.ca

Be LibroTo grow prosperity in southwestern Ontario by transforming banking. Be epic humansBe passionately accountableBe bold explorersBe mutually inclusive Inspiring financial happinessJoyful in our work

Libro Credit Union@LibroCU Libro Credit Union@LibroCU