ECU Branches City/State Address Hours (Mon. – Fri.)Abingdon, VA 159 East Valley Street 9:00 am - 5:30 pmBlountville, TN 1911 Highway 394 7:30 am - 5:30 pm Bristol, TN 1237 Volunteer Parkway 7:30 am - 5:30 pm Bristol, VA 16501 Highlands Center Boulevard 7:30 am - 5:30 pm Duffield, VA 127 Comfort Drive (U.S. Highway 58) 7:30 am - 5:30 pm Gate City, VA 265 Jones Street 7:30 am - 5:30 pm Gray, TN 384 Roy Martin Road 7:30 am - 5:30 pm Greeneville, TN 3811 East Andrew Johnson Highway 7:30 am - 5:30 pmJohnson City, TN 113 Broyles Drive 7:30 am - 5:30 pm 255 Marketplace Boulevard 7:30 am - 5:30 pm 421 North State of Franklin Road 7:30 am - 5:30 pm 4307 North Roan Street (Boones Creek) 7:30 am - 5:30 pm Jonesborough, TN 301 West Jackson Boulevard 7:30 am - 5:30 pm Kingsport, TN 130 West Ravine Road (Holston Valley Hospital) 10:00 am - 4:00 pm 170 Wendover Drive (Colonial Heights) 7:30 am - 5:30 pm 201 South Wilcox Drive 7:30 am - 5:30 pm 216 West Ravine Road 9:00 am - 5:30 pm 2021 Meadowview Lane 7:30 am - 5:30 pm 2631 East Stone Drive 7:30 am - 5:30 pm Eastman Chemical B147 7:30 am - 5:30 pm Eastman Chemical B230 (Restricted Access) 7:30 am - 1:00 pm Longview, TX Highway 149, Kodak Boulevard 7:30 am - 5:30 pm Drive Up 8:00 am - 5:30 pm Lobby 3066 North Eastman Road 7:30 am - 6:00 pm Drive Up 8:00 am - 5:30 pm LobbyMount Carmel, TN 166 Main Street 7:30 am - 5:30 pm Norton, VA 730 Commonwealth Drive (Mortgage Lending Center) 8:00 am - 5:00 pmRogersville, TN 4003 Highway 66 7:30 am – 5:30 pm

Toll–Free Nationwide800.999.2328

Internet Access www.ecu.org

AUDIT COMMITTEE REPORT The Audit Committee is appointed by the Board of Directorsto assist the Board in fulfilling its oversight responsibilitiesrelated to the integrity of the financial statements, the CreditUnion’s system of internal controls, and the independenceand performance of the Credit Union’s internal and externalauditors. Review of audits performed by ECU’s internal andexternal auditors helps fulfill the Audit Committee’s oversightresponsibility. Based on these reviews, the Audit Committee believes ECU continued to operate in a safe and sound manner in 2018.

CREDIT COMMITTEE REPORTLOANS TOTAL

in MillionsGROWTH

in MillionsGROWTH

Percentage

Consumer $1,314 $191 17.0%Mortgage 1,966 218 12.5%Home Equity 238 16 7.0%Visa 108 11 11.7%Member Business Loans 351 55 18.6%TOTAL $3,977 $491 14.1%

TREASURER’S REPORT

Financial results for the year ending December 31, 2018 were very positive. Assets grew $497 million or 12.3% while member deposits grew $427 million or 12.4%. This level of deposit growth compares favorably with peer averages and reflects strong acceptance by members. Membership grew 20,488 or 10.1% to a total of 223,119 members at December 31, 2018.

Growth was experienced in all loan classifications. Total loans grew $491 million or 14.1% to $3.98 billion at December 31, 2018. Mortgage loans grew $218 million or 12.5%, consumer loans grew $191 million or 17.0% and business loans grew $55 million or 18.6%. Loan losses in 2018 remain at low levels and well below industry averages.

Of $427 million in deposit growth, $83 million or 7.7% was in member shares. Checking account balances grew $44 million or 9.1% and investment certificates grew $360 million or 24.7%. The certificate increase is attributed to continued rising rates and member preference for certificates.

Return on assets (ROA) from continuing operations was 1.68% as compared to 1.66% the previous year. The interest rate environment in 2018 continued to create an attractive spread between interest earned on loans and investments versus cost of funds. The effects of an attractive gross margin coupled with low loan losses, expense management, and improved non-interest income were the key drivers of ROA in 2018.

In 2018, the National Credit Union Administration (NCUA) closed out the stabilization fund that was established during the 2009-2013 timeframe to cover anticipated losses in the Credit Union industry. Many of those anticipated losses did not occur, therefore excess funds were returned to Credit Unions. ECU received a $2 million pro-rata distribution.

Subsequent to a Board declared Extraordinary Dividend of $13 million, net worth was 13.00% at December 31, 2018, a slight decrease from 13.08% at year-end 2017. Net worth continues to be exceptionally strong by regulatory standards.

2018 Annual ReportYour savings federally insured to at least $250,000 and backed by the full faith and

credit of the National Credit Union Administration, a U.S. Government Agency.

Building the Future with YOU

CHAIRMAN AND CEO’S REPORTBuilding the future with you is our goal at Eastman Credit Union. 2018 has been another year of milestones for us. ECU experienced a remarkable year of growth in 2018 and we are well-positioned to continue that trend by focusing on the needs of members.

In 2018, assets grew $497 million or 12.3% to a total of $4.53 billion. Member deposits grew $427 million or 12.4%. ECU experienced another outstanding year of loan growth and added $491 million, or an increase of 14.1%, to the loan portfolio.

Membership increased by 20,488 or 10.1%, ending the year with over 223,000 members.

Here’s a look at some of the highlights from 2018: Announced an Extraordinary Dividend paid to members of $13 million, totaling $118 million in payouts since 1998.Achieved a milestone of $4.5 billion in total assets.Rated the highest-ever score of 86% on the Annual Member Survey.Earned a Net Promoter score of 91%.Named as Top Performer during the third quarter of 2018 by our Mystery Shop provider in the following categories: Competitive Comparison, Referral Rating, and Emotional Connection.Awarded a first place designation among the nation’s Top 100 banks and credit unions by MagnifyMoney™ for ECU’s Mobile Banking App.Launched a new, mobile-friendly ECU.org website and online banking portal providing members an improved user-experience and expanded features.Opened a new mortgage lending center in Norton, VA.Broke ground on a new branch at Allandale in Kingsport, TN.Announced the opening of a new branch in Piney Flats, TN.Began construction on a new administrative office building in Kingsport, TN.Held multiple events across our field of membership, including shred days and seminars to educate members on various financial topics.Contributed over $915 thousand to 167 charitable and community organizations.

With a net worth of 13%, ECU remains strong and steadfast in the communities we serve. This is possible because of your loyalty and our commitment to providing product and service excellence to our members. It is the mission of our board of directors, management team, and dedicated staff to make sure that we keep members first in all that we do. Our members are the driving force behind our success, and together, we’re building the future!

Sincerely,

B. Fielding Rolston Olan O. Jones, Jr. Chairman Chief Executive Officer

EASTMAN CREDIT UNION CONSOLIDATED FINANCIAL STATEMENTS BOARD OF DIRECTORS

SENIOR MANAGEMENT TEAM

Olan O. Jones, Jr, CEO/PresidentDebra C. Bridwell, SVP Marketing/Facilities Darrell E. Dinsmore, SVP Information Technology Tonja R. Fish, VP/CFO Tammy A. Latture, SVP Member Services/LendingJeremiah E. Lounds, VP Operations Mark E. Millwood, VP Human Resources/Training and Development Kelly F. Price, EVPMatthew H. Wimberley, VP General Counsel

(Pictured Left to Right)

Olan O. Jones, Jr., CEO/President Jeff W. Anderson E. Wayne Kirk, Vice Chairman Jennifer L. Stewart Norris P. Sneed, Secretary/Treasurer Jennifer N. Wolfe Kyle P. Macione Steve G. Crawford B. Fielding Rolston, Chairman

2018 2017 2016

2018 2017 2016

2018 2017 2016

Asset Growth in Millions

Loan Growth in Millions

Membership Growth

$399$497 $373

$395$420$491

16,20519,31420,488

Audit Committee Jeff W. Anderson Steve G. Crawford Kyle P. Macione, ChairmanCompensation & Management Development Committee Olan O. Jones, Jr. B. Fielding Rolston, Chairman Norris P. Sneed Jennifer L. Stewart

Credit Committee Lisa A. Broadwater Thomas W. Kennedy Tammy A. Latture Dolly T. Linkous

Finance Committee Tonja R. Fish Olan O. Jones, Jr. E. Wayne Kirk, Chairman B. Fielding Rolston Norris P. Sneed

“At ECU, we’re here to make an extraordinary difference with every member, every time.”

– Danny, ECU Employee

“The members are our livelihood. We have to take care of our members, and the members take care of us.”

– Nancy, ECU Employee