Board of Directors

Supervisory Committee

Agenda• Welcome• Invocation• Determination of Quorum• Business Meeting• Financial Statement ... pages 2-3• Treasurer’s Report ... page 3• Chairman’s Report ... page 4• Secretary’s Report ... pages 4-5• Supervisory Committee’s Report ... page 5• Unfinished Business• New Business• Benediction• Adjournment of Business Meeting• Door Prizes

Mission StatementSolidarity Community Federal Credit Union is a member-owned financial institution that exists to provide the financial services desired by its members in accordance with the following guidelines: • Provide excellent member service in a professional, convenient and friendly manner. • Concentrate on offering top quality loan and savings products. • Maintain a healthy, conservative financial structure. • Build upon the special relationship with the community.

Our VisionWith a strong foundation as our basis, we will continue to offer convenient products and services to benefit current and future members with a cooperative approach. Growth will be a result of dedication to our members and our ability to embrace opportunities.

MICHAEL K. WHITEMANChairman

LEWIS HALLVice Chairman

BILLY CANTUTreasurer

JANET BARNETTSecretary

BECKY BELL GARY SHAWRICHARD FLOYD, SR. VINCE HOLT GLENN RODGERS

FRED GROSSChairman

KENNY ELSONRecording Secretary

JANET BARNETTBoard Liaison

GENE MARNER ELVIN SOMMERS

2012 ANNUAL REPORT 1

ManagementName: Title:Jeffrey S. McComas President & CEOKamala Ahnert Vice President of LendingAmy Benner Vice President of OperationsDeAnna Holloway Vice President of MortgagesRay Hostetler General ManagerPaige Shockley Vice President of FinanceDiana TenBrook Vice President of MarketingStuart Burke Manager of Information SystemsDemian Demaggio Branch ManagerKim Graves Member Development / Marketing AdminKim Galloway Administrative AssistantTed Goff AccountingJoyce Ingle Bank Secrecy & Compliance OfficerJanette Martin Information SystemsKen Perry Information Systems

Name:Kelly BarrettMichelle BeamDiana BirdenVicky BirnerVicki BoydJulie BrubakerMelissa CallDeanna EngleSandra ChaffeeJudy ChildsMichelle Cottingham Vicki DamonLiz DonovanDana DownsJamie DunlapJean EbertMonicia Fears Angel GoldingAnita GoodmanCindy GriswoldMichele Garro

Name:L. Jane HeflinDonna HendersonPam HulceMelanie HumphriesCaroline JewellMichelle JohnsonSheryl LanningLesia LawrenceConnie MobleyJill PickeringCarrie RhoadesDarlene ScarboroughMindy ShepardJulia SoupleyWhitney SteltenkampConnie StewartSue StilesRita WallaceMargie WhiteWanda Zehner

Department:Mortgage DepartmentShare DepartmentMember ServicesLoan DepartmentCredit Card DepartmentLoan DepartmentShare DepartmentShare DepartmentShare DepartmentShare DepartmentShare DepartmentLoan DepartmentShare DepartmentLoan DepartmentShare DepartmentMember ServicesShare DepartmentShare DepartmentLoan DepartmentShare DepartmentLoan Department

Department:Share DepartmentShare DepartmentShare DepartmentShare DepartmentMortgage DepartmentMortgage DepartmentShare DepartmentLoan DepartmentMember ServicesShare DepartmentShare DepartmentShare DepartmentLoan DepartmentLoan DepartmentShare DepartmentShare DepartmentLoan DepartmentShare DepartmentShare DepartmentMortgage Department

Staff

Mobile Banking & Mobile DeposZipAccess your accounts and make deposits from your cell phone or mobile device with our online banking and DeposZip services.

Instant Action Text Alerts & Email News UpdatesWith Instant Action Text Alerts from Solidarity, you receive the latest in banking news, rate specials, community events and tips on how to get the most from banking with Solidarity Community Federal Credit Union. All delivered right to your mobile phone, or email.

Online BankingYou can access your accounts and view your detailed statements 24 hours a day on your home or business computer with Online Banking. It is available via our website with your member number and personal identification number.

Solidarity WebsiteAt www.solfcu.org Solidarity offers information about special promotions, current interest rates, easy online loan application, mortgage information, home and family financial tips, credit card information, and check reordering.Friend Us on Facebook and Tweet with us too!

Products & Services• Auto Loans• Personal Loans

• Mortgage Loans• Home Equity Loans

• Checking & Savings Accounts• Individual Retirement Accounts

• Certificates of Deposit• Health Savings Accounts

• Kid’s Accounts• TravelMoney Cards

2012 ANNUAL REPORT2

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Balance SheetLoans Unsecured Real Estate Commercial OtherAllowance For Loan LossesNET LOANS

Investments Government Securities Corporate Federal CU OtherTOTAL INVESTMENTS

Other Assets Cash Land & Fixed Assets NCU Share Insurance Fund All Other AssetsTOTAL OTHER ASSETS

TOTAL ASSETS

Liabilities Member Shares Other LiabilitiesTOTAL LIABILITIES

Reserves Regular Reserves Undivided EarningsOther EquityTOTAL EQUITY

TOTAL LIABILITIES & EQUITY

20126,497,439

12,164,6801,253,383

94,119,712(827,031)

$113,208,184

26,581,4922,817,851

27,305,602$56,704,945

3,420,2251,542,6061,567,4096,884,934

$13,415,174

$183,328,303

161,188,7082,678,057

$163,866,766

2,051,61017,970,800

(560,874)$19,461,537

$183,328,303

20115,924,953

14,400,9911,056,801

97,869,906(872,440)

$118,380,212

20,622,6356,203,340

12,926,858$39,752,833

3,292,7651,387,7651,512,4997,187,085

$13,380,114

$171,513,160

150,211,9232,204,489

$152,416,412

2,051,61017,970,800

(925,662)$19,096,748

$171,513,160

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2012 ANNUAL REPORT 3

Income StatementOperating Income Interest From Loans Interest From Investments Other Operating IncomeTOTAL GROSS INCOME

Operating Expenses Employee Compensation Employee Benefits Travel & Conferences Association Dues Office Occupancy Office Operations Marketing Loan Servicing Professional & Outside Services Provision for Loan Losses NCUA Premium Assessment NCUA Operating Fee Interest on Borrowed Money Annual Meeting Expense Miscellaneous Operating ExpenseTOTAL OPERATING EXPENSES

Non-Operating Gains (Losses)Earnings Before DividendsDividends Paid to Members

NET INCOME

20126,480,055

418,8284,559,286

$11,458,170

4,011,863 1,045,670

182,019 50,784

310,026 1,084,632

327,143 906,735 926,673 278,646 148,904 38,687

0 22,691

153,414$9,487,887

(33,666)1,936,618

747,074

$1,189,543

20117,271,099

262,0473,587,268

$11,120,414

3,693,949 1,012,307

183,584 49,803

317,926 1,046,149

275,116 706,696 801,766 533,112 378,125 37,574 5,247

15,326 92,678

$9,149,359

(108,342)1,862,714 1,003,731

$858,983

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Solidarity Community Federal Credit Union is committed to providing its members with the best, most up-to-date services possible. With a strong foundation, we continue to offer new products and services to benefit current and future members. Growth continues to be the result of dedication to our members and our ability to embrace new opportunities. From saving you time and money with Bill Pay, to instant text alerts with Mobile Banking. Solidarity is your source for conveniently managing all your financial needs. Even though we continue to explore the most up-to-date services possible, we continue to offer good old-fashioned service and competitive rates on loans and investments.

Solidarity wants to be your first choice for all your banking needs. Please continue to refer us to your family members and friends and co-workers to become members of Solidarity.

Sincerely, BILLY CANTU Treasurer, Board of Directors

Treasurer’s Report

2012 ANNUAL REPORT4

Chairman’s ReportI am honored to serve as Chairman of Solidarity. Being part of a not-for-profit financial cooperative focused on members is a very fulfilling responsibility. Your credit union officials are elected by you—the membership. Like you, we are members that have loans here. We have our savings here and we have a vested interest in overseeing this financial institution. It is our duty to uphold the mission and values of our credit union on your behalf. We are all real people with real needs. We exist to serve our members and unlike most other financial institutions, credit unions do not issue stock or pay dividends to outside stakeholders. Instead, earnings are returned to our members in the form of lower loan rates, better interest rates on deposits and lower fees for services. The fact that you are here today shows me you too have a vested interest in the future of this credit union and its mission.

Let’s highlight some great accomplishments in 2012 for Solidarity such as installing two more ATMs in our community at the Kokomo Plaza with full-service capabilities and in the K-Mart store on the west side of Kokomo. Solidarity has 24 ATMs in three counties of which eight are full-service machines accepting deposits. We bumped up our technology with mobile banking to offer check-deposits by phone. It’s as easy as taking a picture with your iPhone and you can make deposits into one of your Solidarity accounts 24/7. Our mission is helping members achieve their financial goals and making dreams come true. We financed 1,764 car loans in 2012 for members and helped 32 people purchase their first home with our First Time Home Buyer’s Program. Solidarity’s Facebook fans total over 3,000 and we have 114 people who follow us on Twitter. Solidarity is constantly improving our electronic communication methods to inform you immediately by email and text messaging on rate specials, new products or services and financial tips. Solidarity also used our Facebook page as a fundraiser for our local food pantries. Solidarity contributes to the community through donations, volunteer time and sponsorships. Solidarity’s 2nd Annual Car Show was a huge success. All proceeds from the car show went directly to the local Girl Scouts of America—Kokomo Center. Solidarity is a proud sponsor of the IUK-Cougars Athletic program and established a co-branded IUK Cougar Debit Card and Checking account with a scholarship for the students.

I want to take this time to personally thank all the current and past board members, supervisory committee and official family members for their commitment to Solidarity. I also want to thank Solidarity employees and management staff for their dedication to Solidarity. Most of all I want to “Thank-You” our membership for your patronage.

Sincerely, MICHAEL K. WHITEMAN Chairman, Solidarity Board of Directors

Annual Meeting April 22, 2012 [Kokomo Event Center] • Called to order 2:00pm by Chairman Michael Whiteman• Welcome to membership by Michael Whiteman• Invocation by Board member Richard Floyd• Michael Whiteman introduced Board of Directors, Supervisory Committee and Official Family• CEO Jeff McComas introduced Management Staff and Employees that were present

There was a question from the floor from member Pat Crittendon who inquired about the new fee structure and voiced concern about the fact that there will no longer be a paper statement included with the Premium Checking account. Board Chairman Mike Whiteman responded and said the Board would look at it at the next meeting and make a decision on the matter. • Benediction by Vice Chairman Lewis Hall• Michael Whiteman adjourned the meeting at 2:27pm.• Board member Richard Floyd and Board member Billy Cantu gave each child present $3.00 in half dollars.• Board Secretary Janet Barnett and Board member Glenn Rodgers awarded the following winners of the drawing a $25 award: » David Jewell » James Shupperd » Drenda Myers » Pat Crittendon » Marshall McCay » Gary Kelley » Reba Hale » Don Gault

Secretary’s Report

2012 ANNUAL REPORT 5

Secretary’s Report (continued)Election of Executive Committee Officers for 2012-2013

Chairman Michael Whiteman Vice Chairman Lewis HallTreasurer Billy Cantu Secretary Janet Barnett

A special election was held to make a change in the liaison from the Board of Directors that sits on the Supervisory Committee.Board Treasurer Billy Cantu made a nomination to remove Board member Vince Holt as the liaison to the Supervisory Committee. Board member Becky Bell seconded the nomination. Vince Holt was removed as liaison to the Supervisory Committee by unanimous vote.Board member Gary Shaw nominated Board Secretary Janet Barnett for the new liaison to the Supervisory Committee. Board member Richard Floyd seconded the nomination. There were no other nominations. Janet Barnett was declared the new liaison to the Supervisory Committee by acclamation due to an uncontested election. Respectfully submitted JANET BARNETT Secretary

The five members of the Supervisory Committee is your direct representative to the membership. It is the responsibility of this committee to monitor the internal controls of the credit union, by insuring all mandated procedures are followed, and funds are expended properly. All transactions must be monitored for security reasons to protect you, our membership and owners. A few of our major responsibilities are as follows: • Review credit union operations, procedures and policies• Evaluate performance of Management, Staff, and the Board of Directors• Determine compliance with regulatory agencies• Perform periodic unannounced cash audits and verifications• Respond to member’s complaints and inquiries• Verify that a high level of security is always present• Hire an external CPA firm to perform audits as deemed necessary The Supervisory Committee hired Whittenger and Company, an outside independent CPA firm to conduct an audit in 2012. Both Whittenger and Company and NCUA auditors felt our accounting practices are first rate and that Solidarity Community Federal Credit Union is extremely well managed. This excellent rating received from both organizations speaks volumes for the outstanding performance of our Management and Staff, Employees and the Board of Directors you have elected and trust to oversee your interests in SCFCU. Solidarity is and will remain a very sound financial institution. With all the uncertainty about our nation’s financial future, we want to put your mind at ease. The safety and soundness of your money at Solidarity is job one from everyone at Solidarity and the entire credit union movement. It is indeed our honor to be able to serve the membership of SCFCU. Thank you for your continued trust and faith in this fine member owned credit union. As always, a special thanks from the Supervisory Committee. Respectfully submitted in Solidarity,THE SUPERVISORY COMMITTEE Fred Gross - Chairman Kenny Elson - Recording Secretary Gene Marner Elvin Sommers Janet Barnett - Board Liaison

Supervisory Committee Report