Houston Highway Credit Union • 8120 Washington Avenue • Houston, TX 77007(713) 864-4438 • Toll free (800) 354-3541 • www.houstonhighwaycu.com

Federally Insured by NCUA

Mike Alford, ChairmanRita Dennis, Vice ChairmanOtto Maresh, TreasurerDavid Eng, SecretaryGregory Ranft, Director Lonnie Johnson Sr., DirectorOrlando Felix, Director

2019201820182020202020192018

Directors Executive Management

Branch Operations

Accounting/Audit

Member Advocacy/Marketing

Advisory Directors

Audit Committee

ALCO Committee

Jacob MilweeSharla Flores

Gregory Ranft, ChairmanEliza Paul Lonnie Johnson, Sr.

Craig Atkinson – ChairmanJuan VillegasMike AlfordTeresa Nicolas-BriggsJacob Milwee

Jacky Tamez – Branch ManagerKati Briggs – Teller SupervisorConner GrahamSalma Estrada Adrain MartinezJonathan Robinson Marisol Salazar

Roberto RodriguezVicki FleegerCindy Reibenstein

Debbie Heusi – Accounting SupervisorShaina Prugar

Craig Atkinson – President Teresa Nicolas-Briggs – Senior VPJuan Villegas – VP of Operations

Your Road to Financial Success

2017 Annual Report

Welcome Message

Vision Statement

Mission Statement

Welcome to our Annual Meeting. Thank you for joining us as we celebrate 65 years of service to our members and community. We promise to be your partner in reaching your financial goals while we continue to provide excellent service to our members.

To Create and Develop Beneficial Financial Relationships with Everyone Possible!

To Provide Superior Financial Services for all Stages of Life!

ASSETS:LoansCashInvestmentsOther Assets

TOTAL ASSETS

LIABILITIES:SharesCertificates of Deposit IRAsShare Drafts / Money Market

Total Member DepositsEquity AccountsOther Liabilities

TOTAL LIABILITIES

OperationsGross IncomeDividends & Interest Paid to Members

Net Interest IncomeOperating Expenses/Gains

Net Operating Income

Total Non Operating Items

Change in Equity Accounts

2016$42,505,008

$363,893 $11,175,456

$4,986,164

$59,030,521

2016$29,030,129 $14,202,704

$3,456,409 $ 8,660,246

$55,349,488

$3,644,219 $36,814

$59,030,521

$2,897,071 $195,294

$2,701,777 $2,895,816

$(194,039)

$(665,560)

$(859,599)

2017$37,568,938

$473,645 $16,137,854 $5,180,383

$59,360,820

2017$29,350,554 $12,819,332

$4,028,581 $9,704,862

$55,903,329

$3,407,548 $49,943

$59,360,820

$2,989,914 $161,831

$2,828,083 $2,495,500

$332,583

$(569,524)

$(236,941)

Report from the Board of DirectorsOn behalf of the Board of Directors, I would like to welcome each of you to our 65th Annual Meeting. It is my pleasure to present Houston Highway’s Annual Report. As our city faced the enormous challenge of Hurricane Harvey, your credit union was there for its members emphasizing the core foundation of a credit union.As your Board of Directors, it is our responsibility, along with the management team, to maintain financial stability. Be assured that each decision made had your financial success in mind. As we move forward, I am proud of what your credit union has accomplished in 2017. Our community is strong and vibrant –

together we will continue to grow and travel the Road toFinancial Success.

Mike AlfordChairman

Craig AtkinsonPresident

Report from the PresidentThank you for joining us as we celebrate our 65th Annual Meeting. As always we are proud to be able to serve our members and the Houston Heights community. I would like to thank our members for their loyalty. I would also like to thank our staff, management team and Board for their committed service to HHCU. As years pass, and technology continues to advance, we continously strive to provide our members with superior financial services. Our team focuses daily to increase member satisfaction by providing an exceptional member experience. HHCU continues to give back to our community. This past year we were able to continue this tradition with our document shredding day, scholarship program, Houston Food Bank food drive, KHOU toy drive and our newly introduced My Mobile Money application. HHCU exists because of you. We will continue to work hard to provide the best products, services, competitive rates and member service.

Report from the Nominating CommitteeThe nominating committee consisting of Shay Fontenot, Karen Othon and David Nitsch are charged with evaluating individuals who chose to be considered for Board of Director positions.

We received applications from the following candidates: Rita DennisOtto MareshOrlando Felix The committee has made the following recommendations:

Position 3 – Rita DennisPosition 4 – Otto MareshPosition 5 – Orlando Felix

Mike AlfordChairman

Report from the Audit CommitteeThe primary responsibility of the Audit Committee is to review audited financial statements, internal controls, accounting policies and reporting procedures. This is delegated by the Board of Directors and required by the Texas Credit Union Department regulations. The firm John A. Weaver and Associates was hiredto conduct the annual audit for 2017. The report received the highest rating for accounting accuracy.

Gregory RantChairman

In cooperation with the National Credit Union Association (NCUA), the Texas Credit Union Department also examined our operations from the perspective of regulators and deposit insurers in regards to complying with all applicable laws and regulations. The report listed no significant issues in the examination conducted during January 2017. The Audit Committee meets regularly throughout the year to review the operations of the credit union. We are pleased to find that the credit union has sound and efficient financial management practices. The credit union is well capitalized.