2 0 1 5 A n n u a l R e p o r t

“ENTHUSIASM MOVES THE WORLD.”

-ARTHUR BALFOUR

It doesn’t seem possible that yet another year has gone by! We continue to expand our partnerships throughout Vermont and across the country, leveraging our combined skills, funding, and energy to address financial gaps in our market. Several new areas of need are reflected in this annual report along with solutions that show how we are addressing these challenges.

This year’s annual report reflects the diversity of our members and their unique needs. Our members come from all backgrounds, income levels, cultures, countries, and walks of life. What they all share is the desire to have a safe place to keep and grow their money while building for the future. Keeping our community strong and caring about all of our neighbors is reflected in the personal service our staff give each and every member. Investments were made in our products, IT systems, facilities, staff, and electronic banking services to support our membership. We’ve added lending staff to allow us to get out and meet with more of our members and partners. We actively visited areas in Vermont with the highest levels of poverty and unemployment, conducting focus groups, listening sessions, and meeting people in communities that are losing access to affordable financial services. We heard many stories that highlight the needs of

these members, and we are now working on partnerships and funding to begin closing some of these gaps.

Our staff completed training on new products, compliance, and professional and technical development courses in their fields of expertise. Over 8,000 people have actively participated in financial education and counseling services to improve credit scores, budgeting, learn about homeownership, save, and pay off debt. We participated in a number of research projects providing data and human stories that put a face to our members’ challenges and bringing resources together to solve these problems. We had another strong year financially, which will allow us to continue to serve our members in the future. We are well capitalized and in a position to grow. Our members had a 99.6% repayment rate! We could not have achieved these results without our board of directors, senior management team, and staff all of whom dedicate themselves to our mission, members, and the community. Without each of their individual contributions, we would not be where we are today. Thank you to all of our members! Wishing you a healthy and successful 2016!

From the President/CEO

Cheryl Fatnassi President & CEO

The board of directors oversees the strategic direction and financial per-formance of the credit union, ensuring that our members and mission are ever present in our focus. We are fortunate to have a strong board of directors and committee members who volunteer their time and talents, bringing expertise to allow management and staff to further their reach and impact. We see great progress with some segments of our mem-bership and also study areas where we feel we can reach more people and play a greater role in their financial stability. Our success has re-sulted from strong partnerships both locally and nationally, leveraging our combined skills and resources and our commitment to improving the lives of everyone in our community.A special ”Thank you!” to our social investors who provide much needed capital and low-cost CDs, allowing us to provide affordable loans and services to Vermonters!

With best regards,

Ellen ShapiroChairman of the Board

Board of Directors

ELLEN SHAPIRO ELLEN KANE

AGNES COOKJACOUB BOGRE

GLENN VON BERNEWITZ CHARLIE BAKERPAUL GOLDMANLARRY LEWACK

SHANNA RATNER

CHERYL FATNASSISTEVE BOURGEOIS

MARIE DUSSAULT

GARTH ALLENJOHN DAVISLYNNE SILVA

PAUL BIRNHOLZ

STEVE BOURGEOISCHERYL FATNASSI

TIM MASHRICKDEBBIE SHEPARD

MICHAEL RICHMANROGER BUCHANAN

LINDA DUSABLONAMBER FULCHER

Board Chair1st V.C.2nd V.C. / TreasurerSecretaryMemberMemberMemberMemberMember

ChairMemberMember

ChairMemberMemberInternal Auditor

ChairMemberMemberMember

ChairMemberMemberMember

Credit Committee

Supervisory Committee

Asset and Liability Management Committee

Independence Fund Committee

FROM THE BOARD CHAIR

James EmersonSenior Information

Technology Manager

Lejla TajiSenior Lending Manager

Dijana KulasicSenior Retail

Market Manager

Greg HuysmanSenior Business

Development Manager

Stephine StrubleC.O.O.

Cheryl FatnassiPresident & C.E.O.

Erin MetivierSenior Finance & Human

Resource Manager

SENIOR MANAGEMENT

IMPACT HIGHLIGHTS

494ENERGY LOANSTOTALING

$6.9 MILLION

973FIRST-TIME HOME BUYERSTOTALING

$104.3 MILLION

17,329MEMBERS TOOK OUT CONSUMER &CAR LOANSTOTALING $94.9 MILLION

5.4 MILLIONTELLER TRANSACTIONSTOTALING $2.7 BILLION

26-YEAR LENDING IMPACTWe had another strong lending year as our members move along the “Asset Path,” investing in new or expanding businesses, buying their first home, adding energy-efficient furnaces, insulation, and solar panels or purchasing a newer vehicle. We also provided affordable loan options for members with emergency needs or rebuilding their credit. New in 2015 were products that allow immigrants and refugees to obtain their citizenship and reunify their families.

Through a partnership with the Vermont Public Service Department we are able to offer HEAT loans at rates as low as 0%, allowing members to lower their energy costs and take advantage of energy rebates and very affordable loan-terms.

Our partnership with Efficiency Vermont and PACE-approved cities and towns allows us to offer longer term solutions for Property Assessed Clean Energy loans that offer immediate savings on the member’s energy bills with several options for financing tied to your property.

Auto and Other Consumer Loans

Affordable Home Mortgage Loans

Home and Energy Improvement Loans

Small and Micro Business Loans

17,329

2,486

1,377

964

$94,970,128

$251,010,175

$11,129,016

$23,758,895

TOTAL NUMBER OF LOANS

TOTAL DOLLAR VALUE OF LOANS

22,156

$380,868,214

*Key

LOANS DOLLAR VALUE

“BELIEVE YOU CAN AND YOU’RE HALFWAY

THERE.”-THEODORE ROOSEVELT

26-YEAR DEPOSIT IMPACT

Members to Date Savings & Other Deposits Checking Accounts Teller Transactions

Total Teller Transactions:

$2.7 Billion

26,682 50,551 3,992 5.4 Million

Access to affordable savings, checking, and other deposit services is not always available in every market. We offer competitive products providing Vermonters a safe place to keep their money, opportunities to save for longer-term goals, electronic banking services so that members can stay on top of their finances at times that are convenient to them, and in-person branch access for members who prefer a more personal level of service.

In 2015 we exceeded 500,000 transactions totaling over $200 million (82% were done by members using one of our electronic services). Today, we offer remote check capture, electronic statements for loans and deposit accounts, e-mortgage banking, electronic bill payment, debit cards (with alerts and allowing members to activate/deactivate their card for security purposes), and “Mobicent,” a new service that provides account aggregation, budgeting, and financial management tools.

To learn more about our deposit products, please go to: www.oppsvt.org/what-we-offer

To learn more about our electronic services, please go to:www.oppsvt.org/ebanking

Vermont Comedy Club

Natalie Miller & Nathan HartswickOwners of Vermont Comedy Club

“Greg was awesome,” said Natalie Miller. “Our business plan

is more than just ticket sales and food and beverage revenue

streams, and he really grasped the whole concept and was

excited about what we were bringing to Burlington.”

Butch + Babe’s

Kortnee BushOwner Butch + Babe’s

“At Butch + Babe’s, you’re able to try something from a different culture but in a safe

atmosphere where you can still get a burger,” said Kortnee. “It’s not a newfangled idea;

it’s just representing what’s happening in the neighborhood.” When asked if she would

work with Opportunities again, Kortnee quickly stated, “Absolutely.”

Sugarsnap Vermont Catering“Running a small business is challenging,” said Abbey Duke of

Sugarsnap. “The cash flow, seasonality, and a variety of pieces make

it challenging; Greg was very understanding and open to figuring

those out. It felt like he was a partner in the success of my business

and not just someone who was giving us money.”

Business Lending

Read more Opps StoriesOppsvt.org/stories

Andrew and WendyThe Swingin’ Pinwheel

“We felt like the staff at Opportunities were invested in us as soon as we

walked in and eager to help us succeed. We always felt heard and never

felt judged. They took the time to advise us and answer any questions we

had, and wherever there might have been a closed door they found another

way. Because of this opportunity, we now have a successful business and

a prosperous future ahead of us. We can’t be more appreciative of the

part they played in actualizing our vision!”

The Swingin’ Pinwheel

Sas Stewart and Sivan Cotel Owners of Stonecutter Spirits

“They’re a credit union that other banks not only want to work with but

recommend,” said Sas. “I think that speaks really highly to our experience

with them as well. They weren’t originally on our radar, as we’re in a

different part of the state, but in talking with other people their name

came up pretty fast.”

Stonecutter Spirits

Read more Opps StoriesOppsvt.org/stories

Stewart ELFund

In 2008 the Stewart Emergency Loan Fund was started with $50,000 in donations from investors, foundations, and friends to honor the work and vision of Caryl Stewart, President Emeritus and Founder of Opportunities Credit Union. The ELFund provides much needed emergency loans at low rates to individuals in our community who need small amounts of money but who otherwise would not qualify for traditional loan programs. Often, these loans help stabilize a family, keep the family’s vehicle running, provide rent deposits, address medical and dental needs, pay for burial expense, home heating fuel purchases, and other critical needs.To learn more about the Stewart ELFund, go to www.oppsvt.org/personal-loans or to donate to the fund, go to www.oppsvt.org/donations

Loans

86Totaling

$108,663Donations to date

$348,440

Gardner Fund

In 2011 the Gardner Micro Loan fund was established with $50,000 in donations from investors and foundations to honor the dedication and entrepreneurial spirit of our friend and former Board Chair Oliver Gardner. The Fund provides affordable micro business loans to entrepreneurs who, like Oliver, aspire to start a business, build assets, and create jobs for themselves and others on our community. It targets individuals who demonstrate the motivation and skills to turn their vision into a viable business. The Gardner Fund serves as a loan loss reserve to mitigate risk for small loans that due to the nature and variables of “start-up” businesses carry a greater risk, allowing us to make these loans in a manner that addresses all regulatory requirements for safety and soundness.To learn more about the Gardner fund, go to www.oppsvt.org/business-products or to donate to the fund, go to www.oppsvt.org/donations

Loans

38Totaling

$269,977Donations to date

$285,367

Gilligan Fund

The Gilligan Fund was established in 2014 to honor John Gilligan, our friend and a longtime volunteer at Opportunities. It was John’s wish to make it possible for more children to learn to save and toward this goal John and his family started this fund. John recognized that not all children come from families with savings, and John wanted to make it possible for all children to be able to open an account and get started on the path to saving for their future. Data from the Federal Reserve Bank of Boston has shown a direct correlation between a child having a savings account and the increased likelihood that they will go to college. The board recognized John’s vision and contributions and donated additional funds to bring the fund to $10,000. Money from the fund is used to support our “Super Duper Kids” savers by providing rewards for savings and opening deposits as needed. To learn more about Super Duper $avers, go to www.oppsvt.org/superduper-savers or to donate to the fund, go to www.oppsvt.org/donations

Super Duper $avers to date

442Active Super Duper $avers Today

204Savings Total

$91,902

Coming to America FundOpportunities launched the Coming To America Fund with a donation of $50,000 in late 2015 to help immigrants and refugees who have come to America fleeing wars and other tragedies. The fund provides affordable loans to pay for the cost of citizenship applications, travel, medical, and other related fees, allowing new Americans to fully participate in their new country and to reunite their families. To learn more about this fund, go to www.oppsvt.org/4us or to donate to the fund, go to www.oppsvt.org/donations

Independence Fund

In 2004 monies from the State of Vermont along with matched federal Funding were transferred to Opportunities to continue this fund that had been previously managed by the credit union. The Independence Fund provides affordable loans for adaptive vehicles and equipment, home modifications, dentures, hearing aids, and other assistive technology to allow all members of our community to have full access at home, work, and at play. To learn more about this fund, go to www.oppsvt.org/independence-fund

Loans

501Totaling

$4,453,464

CDFI FundU.S. Treasury Community Development Financial Institutions Fund (CDFI) Awards:

Opportunities has been a certified CDFI since 1997. These competitive awards have allowed us to enhance our ability to meet the needs of our target market. As stated by the CDFI program, “Access to affordable financial products and services is a staple of economically vibrant communities. Yet at least one quarter of American households do not have a bank account or rely on costly payday lenders and check-cashing outlets. Additionally, many small businesses and critical community development projects lack access to the capital investment necessary to spark economic growth in their communities.” The CDFI works to address these issues by investing federal resources in such CDFIs as Opportunities that serve these communities.

CDFI AWARDS INCLUDEFinancial Assistance Awards2015, 2014, 2013, 2012, 2010, 2009, 2005, 2004

Secondary Capital Awards 2000, 1999

CORE Awards2000, 1997

SBA AWARDS INCLUDE20152nd Highest 7(a) Lender by numbers in Vermont

2014Outstanding Achievement Award

2013Outstanding Achievement Award

2013 & 2014 Overall increase of SBA volume from previous year

SBA AWARDS Small Business Administration (SBA) Awards:Opportunities Credit Union is proud to be a 7 (a) Lender participating with the SBA to offer additional financing options to our business borrowers, including financing under the Patriot/ Patriot Express and Community Express/ Community Advantages programs.

RECOGNITION & AWARDS

We work with a number of partners that share common values and

vision. We leverage our combined resources and skills to address

barriers to housing, employment, credit, and the challenges faced

by people of low wealth. Together, we find innovative solutions to

address the needs of our community and recognize them for their

leadership in affecting positive change.

• ASSOCIATION OF AFRICANS LIVING IN VERMONT • ASSOCIATION OF VERMONT CREDIT UNIONS• BURLINGTON & WINOOSKI HOUSING AUTHORITIES• CHAMPLAIN COLLEGE CHAMPLAIN HOUSING TRUST• CHILD CARE RESOURCES• CITY OF WINOOSKI• COMMITTEE ON TEMPORARY SHELTER • COMMUNITY ACTION AGENCIES• CREDIT UNION NATIONAL ASSOCIATION• ENERGY CO-OP OF VERMONT• FANNIE MAE• FEDERAL HOME LOAN BANK OF BOSTON• FEDERAL RESERVE BANK OF BOSTON

• JOINT URBAN MINISTRY PROJECT • MERCY CONNECTIONS / WSBP

• NATIONAL BANK OF MIDDLEBURY• NEW ENGLAND FEDERAL CREDIT UNION

• NORTH COUNTRY FEDERAL CREDIT UNION• SCORE• SMALL BUSINESS ADMINISTRATION• AGENCY OF HUMAN SERVICES• AGENCY OF NATURAL RESOURCES• PUBLIC SERVICE DEPARTMENT• U.S. DEPARTMENT OF HUD• U.S. TREASURY CDFI FUND• USDA RURAL DEVELOPMENT

PROGRAM• VERMONT NETWORK AGAINST DOMESTIC VIOLENCE• VERMONT ECONOMIC DEVELOPMENT AUTHORITY• VERMONT HOUSING FINANCE AGENCY• VERMONT REFUGEE RESETTLEMENT PROGRAM (VRRP)• VERMONT SBDC• VERMONT STATE HOUSING AUTHORITY• VISITING NURSES ASSOCIATION (VNA)• WOMEN HELPING BATTERED WOMENO

PP

OR

TU

NIT

IES

’ PA

RT

NE

RS

OUR COMMUNITY PARTNERS

Social and Community InvestorsAll Saints ChurchAtomic Credit UnionBen & Jerry's FoundationCapital City Housing FoundationChittenden Solid Waste DistrictChrist Church, PresbyterianCity Of BurlingtonCommunity Economics, INCCSSL Limited PartnershipCynosure, Inc.Evangelical Lutheran ChurchFirst Unitarian Universalist ChurchGamper FoundationHouse Of HildegardLCATVMain Street LandingMerchant’s BankNational Credit Union Association OSCUINational Federation Of Community Development Credit UnionsNew England FCUNorth Country FCUMiddlebury Natural Foods Co-OpOffice Of Refugee ResettlementOpportunity Finance Network

Orange County Court DiversionPeople's United BankPeople's United FinancialSandy River Charitable FoundationSelf-Help Credit UnionSeton EnablementSisters Of CharitySisters Of St. FrancisSociety Of St. EdmundSummit Credit UnionTD Bank, NAThe Cathedral Church Of St. PaulTown of ColchesterUnited Way Of Chittenden CountyVT Energy Investment CorporationVT Housing Finance AgencyVT State Housing AuthorityVT Student Assistance CorporationWinchester AssociatesYackel FoundationZia Trust, Inc.21 Social Investors Who Wish To Remain Anonymous

Investors Social and community investors provide much needed affordable capital for housing, businesses, and personal needs. Without these investments, we would not be able to have positively impacted so many families.

`

Stat

emen

t o

f Fi

nanc

ial C

ond

itio

nYe

ars

End

ed D

ecem

ber

31,

20

15, a

nd 2

014

Liabilities and Members’ EquityLiabilities:

Members’ Share AccountsNonmembers’ Share Accounts

$17,465,622$10,913,034

$17,377,185$12,270,538

Notes Payable $299,997 $300,000Accrued Interest and Dividends Payable $4,387 $5,890Accrued and Other Liabilities $100,043 $60,639Deferred Revenue $987,629 $1,519,509Notes payable, Secondary Capital $2,091,000 $2,091,000

Total Liabilities: $31,861,712 $33,624,761

Assets 2015 2014Cash and Cash EquivalentsCash and due from banks $321,885 298,656Interest-Bearing Deposits in Corporate Credit Union $1,771,521 $2,720,884

Total Cash and Cash Equivalents $2,093,406 $3,019,540Certificates of Deposit: $6,091,000 $8,734,000Loans to Members, net of allowance of $269,384 and$251,761, respectively $25,611,958 $23,036,471Loans Held for Sale $1,037,181 $1,144,829Accrued Interest Receivable $105,211 $208,972Accounts Receivable, Other $46,832 $48,052Prepaid Expenses and Other Assets $356,702 $295,734Premises and Equipment, net $257,821 $269,773National Credit Union Share Insurance Fund Deposit $236,066 $231,627Mortgage Servicing Rights, net $660,905 $696,809

Total Assets $36,497,082 $37,684,807

Members’ EquityRegular Reserve $1,534,865 $1,534,865Undivided Earnings $3,100,505 $2,526,181

Total Members’ Equity $4,635,370 $4,061,046Total Liabilities and Members’ Equity $36,497,082 $37,685,807

`

Stat

emen

t o

f In

com

e Ye

ars

End

ed D

ecem

ber

31,

20

15, a

nd 2

014

Interest Income 2015 2014

Loans Receivable $1,262,081 $1,220,026Interest-Bearing Deposits in Corporate Credit Union $108,414 $147,324

Total Interest Income $1,370,495 $1,367,350

Noninterest IncomeLoan Origination and Member Fees $528,986 $473,252Loan Servicing $196,616 $205,181Federal Grants $1,643,238 $1,044,483Other Grants $78,121 $39,500Other $2,426 $2,844

Total Noninterest income $2,449,387 $1,765,260

Share Accounts $179,683 $223,641Notes Payable and Secondary Capital Notes Payable $66,394 $66,444

Total Dividend and interest Expense $246,077 $290,085Net interest income $1,124,418 $1,077,265

Provision for Loan Losses $18,456 $34,121Net interest income after provision for loan losses $105,962 $1,043,144

Noninterest ExpensesCompensation and Employee Benefits $1,434,798 $1,288,310Occupancy Costs $149,657 $137,777Operating Costs $1,385,744 $987,921Other $10,826 $48,931

Total noninterest expenses $2,981,025 $2,462,939

Net Income $574,324 $345,465

Dividend and Interest Expenses

Thank you for investing in us!

oppsvt.org800.865.8328 | 802.654.4540 | 802.654.4551 fax

WINOOSKI:25 Winooski Falls Way, Suite 203P.O. Box 67, Winooski, VT 05404

BURLINGTON:92 North AvenueBurlington, VT 05401