On behalf of the Board of Directors of Redstone Federal Credit Union®, I want to thank you for your membership.

From our humble beginnings, Redstone has grown to well over 430,000 members. We welcomed 20,922 new members during 2018 alone – the most ever. Over that same time our assets grew to $4.9 billion.

Your membership and continued loyalty motivates us to keep improving each day.

Our commitment to you is to offer the best products and services at the most competitive rates in our markets.

Our success was recognized during 2018 by the National Association of Federally-Insured Credit Unions (NAFCU) as Credit Union of the Year. NAFCU tapped Redstone for its top award because of its: community give-back efforts; serving underbanked or low-to-modest income members; providing financial education to youth; and devising and implementing a cultural transformation process to better serve its members. Additionally, RFCU® was selected as the 2018 winner for the annual BBB Torch Award for Ethics in the Large Business Category for North Alabama. The Torch Award for Marketplace Ethics is the most prestigious award the BBB can present to a business or nonprofit.

Our President and CEO, Joseph Newberry, was honored with the CUES’ 2018 Outstanding Chief Executive award in November. We are extremely proud of Joe and feel fortunate to have him leading our team here for the past 11 years.

As your Board of Directors, we continually challenge the team at Redstone to develop new and innovative ways to serve and giveback to you, our members, and our communities. Thank you for trusting us for 68 years. We look forward to many more.

Report from the Chair

2018

Ann

ual R

epor

t

Respectfully submitted,

Dave Hargrove Chair

New Members in 2018

This credit union is federally insured by the National Credit Union Administration.

2018 Annual Report

Redstone Federal Credit Union experienced a third straight year of explosive membership growth in 2018. As we grow, we remain focused on our mission of improving the financial well-being of our members and the community.

Financial education, money management skills and hands-on work experience are several of the benefits students receive by working in our five student-run branches, located on college and high school campuses in North Alabama.

We opened four of those five branches last year. These opportunities help our youth become financially responsible adults, and that is important to us all.

By embracing new technology, Redstone introduced products and services aimed at helping our mem-bers save time and money. Products and services such as Interactive Teller Machines (ITMs) cut your drive-thru banking times nearly in half. Instant issue debit cards, voucher-free transactions, and loan pre-approvals inside online bank-ing are more examples of services designed to make your branch visits faster and more efficient.

Members have redeemed $5.6 million in MyChoice Rewards points since we introduced the program last year. Our enhanced credit and debit card program gives you the freedom to turn your everyday purchases into the rewards that you can use for cash, gift cards, travel, or charity donations.

Our new streamlined checking accounts are another way we are refining our products to serve you better.

We’re excited about the growth we are experiencing. However, we never want to lose sight of why we are here: to help members, their families and our communities achieve their financial goals. That’s our commitment to helping you live brighter. 

Report from the President

Respectfully submitted,

Joseph H. NewberryPresident / CEO

Leadership(back row: l-r) Roberta Rodgers, VP / General Counsel; Joel Guske, VP Innovation and Marketing; Wendy Edmonds, VP Human Resources; Lisa Whitt, VP Technology; John Cook, VP Lending; Kevin Hall, VP Indirect Member Services; Mary Turner, VP / Chief Audit Officer; Mike Panesi, VP Tennessee Market Executive; Linda Smith, VP / Controller; (front row: l-r) Wayne Sisco, Senior Executive VP / Chief Financial Officer; Terri Bent-ley, Senior Executive VP / Chief Information Officer; Yvette Banks, Executive VP / Chief Retail Officer; Joseph H. Newberry, President / Chief Executive Officer; Jan Bias, Executive VP People and Culture; Fred Trusty, Executive VP / Chief Marketing Officer

Student-run BranchesHartselle

High SchoolDecatur

High SchoolAustin High

School

Report from the Supervisory Committee

Respectfully submitted,

William “Bill” AndrewsChair

Board of Directors(back row: l-r) Richard L. Morris, 2nd Vice Chair; Steve Fisher, Treasurer; William Andrews, Director; Terrence L. Clay, Jr., Director; Dave Hargrove, Chair; (front row: l-r) Charlie Miller, 1st Vice Chair; Charlene Brueggeman, Director; Kathleen Leonard, Secretary; Dawn C. Stanley, Director

Member Giveback

$10,035,917 in credit card rebates and promotions

$1,329,962 in debit card CashBack

$1,113,913 in reduced mortgage fees

$953,638 in reduced HELOC fees

$17,950,504$4,517,074 in other promos and giveaways

The Supervisory Committee, in compliance with the Federal Credit Union Act and Redstone Federal’s bylaws, independently evaluates the soundness of Redstone Federal’s operations and activities. The Committee provides assurance that the board and management are meeting required financial reporting objectives and establishing practices and procedures sufficient to safeguard members’ assets by implementing sound internal controls.

In accordance with these responsibilities, the committee hired an independent CPA (certified public accountant) firm, Moss Adams LLP to perform the financial statement audit for the year ending June 30, 2018. The full Report of the independent Auditors can be found on

the credit union’s website. The condensed consolidated statements of the credit union’s financial condition and income appears in this Annual Report.

Industry recognitions received by Redstone Federal Credit Union during 2018 included being named Credit Union of the Year from the National Association of Federally-Insured Credit Unions (NAFCU) and receiving a five-star rating from Bauer-Financial, Inc. This superior rating means Redstone Federal is a safe, financially sound credit union that is operating well above the regulators required capital. The Credit Union has maintained this rating since June 1996.

Based on the results of internal audits, the financial statement audit, and the regulatory

examination report of NCUA, conducted during the past year, it is the opinion of the Supervisory Committee that Redstone Federal Credit Union continues to be financially secure and operates in a safe and sound manner. Redstone’s employees continue to work hard to maintain your financial security and prosperity.

It is because of our members that we continue to be a proven leader in the financial industry. Thank you for your membership.

2018 Annual Report

June 30, 2018 June 30, 2017

AssetsCash and Cash Equivalents $ 156,218,775 $ 481,354,643Investments 2,481,051,679 2,473,876,663Loans Held For Sale 27,873,144 29,316,565Loans, Net 1,953,763,335 1,669,839,117Accrued Interest Receivable 12,241,151 10,163,232Property and Equipment, Net 92,368,567 90,123,218National CU Share Insurance Fund 37,584,952 35,196,737Other Assets 15,388,747 19,645,676

Total Assets $ 4,776,490,350 $4,809,515,851

LiabilitiesMembers’ Shares $ 4,225,076,734 $ 3,882,559,351Borrowed Funds - 375,186,389Accrued Expenses and Other Liabilities 75,390,912 75,464,895Total Liabilities $ 4,300,467,646 $4,333,210,635

Members’ EquityRetained Earnings $ 550,948,469 $ 506,973,304Accumulated Other Comprehensive Loss (74,925,765) (30,668,088)Total Members’ Equity $ 476,022,704 $ 476,305,216

Total Liabilities and Members’ Equity $ 4,776,490,350 $4,809,515,851

IncomeInterest Income $ 151,514,081 $ 123,572,706Noninterest Income 96,963,585 82,038,434Total Income $ 248,477,666 $ 205,611,140

ExpensesInterest Expense $ 28,242,052 $ 15,799,305Provision for Loan Losses 17,637,021 9,174,066Noninterest Expenses 158,623,428 141,038,055Total Expenses $ 204,502,501 $ 166,011,426

Net Income $ 43,975,165 $ 39,599,714

Redstone Federal Credit Union | 220 Wynn Drive | Huntsville, AL 35893 | redfcu.org | 800-234-1234

Redstone Federal Credit Union and SubsidiariesCondensed Consolidated Statements of Financial Condition and IncomeSummary financials only. For a full copy of the Report of Independent Auditors and Consolidated Financial Statements for Redstone Federal Credit Union and Subsidiaries, please visit redfcu.org/about.

VisionHelping members,

their families, and our

communities achieve

their financial dreams.

MissionImproving the financial

well-being of our members

and communities by

offering trusted advice,

choices, opportunities,

and solutions.