150 West Street, Pittsfield, MA 01201 • (413) 236-4000 • www.greylock.org

Pittsfield150 West Street • (413) 236-400071 Elm Street • (413) 997-440075 Kellogg Street • (413) 443-5114660 Merrill Road • (413) 445-5555

Berkshire Medical Center 725 North Street • (413) 329-7699

General Dynamics (employees only)

100 Plastics Avenue • (413) 443-0554

AdAms2 Park Street • (413) 743-7333

GreAt BArrinGton250 Stockbridge Rd • (413) 644-9234

lAnesBorouGh1664 North Street, Route 7 (413) 997-4888

lee47 Main Street • (413) 243-2121

lenox68 Main Street • (413) 637-4999

north AdAms131 Ashland St. • (413) 664-4477

WilliAmstoWn455 Main Street • (413) 458-4441

Greylock ATM LocationsPittsfield • 188 Elm StreetPittsfield • 777 North Street

Dalton • 633 Main StreetLenox • 444 Pittsfield Road,

Routes 7&20

We Hear You!

As we reflect on a very successful 2017, I am grateful for the thoughtful feedback we continue to receive from member surveys. Your input is vital in helping us make the changes that will benefit you the most. Most of the survey responses we receive are highly positive, like this one …

“I liked the ease of opening the account and the staff has been very helpful and friendly. Great customer service.” – Wanda M.

Other responses help us identify areas where we can pro-vide more value …

“The credit union products are appealing, although I wish your CD rates were a little higher.” – Bruce M.

We know Bruce speaks for many members who are seek-ing a better return on their savings. In response, we plan to increase the total dollar amount of dividends paid on deposits by as much as 30% in 2018 based on current market rate expectations.

Still other responses point to a need for greater conve-nience, like this one from Jeremy B. …

“I am very much into apps and electronic banking. Greylock’s app is VERY behind the power curve. I would love the ability to make deposits directly from my phone.”

Hearing this same concern from many members, we launched a new online and mobile banking system in 2017. And yes, Jeremy, you can deposit checks via your smart phone! While the response to this new system is overwhelmingly positive, and 2,000 more active users have signed up in just a few months, we know some members are still adapting, and we want to hear from you on how we can help.

Other changes we have made in response to member feedback include speeding up drive-through lanes with better technology, expanding office hours at our West Street headquarters, and cutting back fees. If you receive a survey, please do take the time to fill it out and give us your honest feedback. This is your Credit Union, and we want to make sure Greylock works for you.

Message from the President

AnnuAl r e P o r t

2017Federally Insured by NCUA

John L. BissellPresident and

Chief Executive Officer

I sometime hear the question, “What makes a credit union different?” At Greylock, the credit union difference is very clear, and I appreciate the many ways in which Greylock’s management, employees, and volunteer Board of Directors are working to fulfill our mission of enriching peoples’ lives.

The people of Greylock work hard every day to create access to affordable financial services for everyone, regardless of financial status. In pursu-ing our vision of enabling our community to thrive, your Credit Union has adapted its busi-ness model to make us even more responsive to member and community needs.

In 2017, Greylock proved its responsiveness by providing loans where they were needed most: making nearly 900 loans to credit-challenged borrowers; originating $1.6 million in affordable used auto loans through a program that helps to boost credit scores; and keeping thirty families in their homes through our foreclosure-prevention programs. Our commitment to financial education also sets us apart. During 2017, Greylock offered financial literacy training to 5,700 students in western Massachusetts, provided almost 1,500 financial counseling sessions, and held county- wide financial education classes.

I look forward to Greylock’s continued role as a leader in helping our community to thrive. I want to thank our volunteer Board of Directors for their dedication and ongoing commitment to that vision.

Report of the Chairman

Ann D. DeelyChairman of the Board

Volunteer Board of DirectorsAnn D. DeelyChairman

Stanley B. WalczykVice Chairman

John C. LawC lerk /Treasurer

JamieEllen MoncecchiAssistant Clerk/Recording Officer

Angelo Borsello, Jr.Gerard E. BurkeTyrone A. JacksonKelly J. KrokSheila LaBarberaPete LopezKimberly A. MathewsAnthony J. Rinaldi, Jr.

Supervisory CommitteeOzias C. VinceletteChairman

Isa F. Ali

Lori Broderick-BeanAllison L. BedardKimberly A. Mathews

Greylock Branches with ATMsVision

Our vision is to enable our

community to thrive.

MissionOur mission is to be a

community credit union that partners with you and provides the keys

to enrich your life.

ValuesIntegrity • Passion

Compassion Creativity

Stewardship Fiscal Responsibility

GFCU_Annual Report 2017.indd 1-3 3/3/18 4:47 PM

STATeMenTS of ChAnGeS in equiTyDollars in Thousands

Balance at December 31, 2015 $ 104,644 $ 1,208 $ 105,852

Equity acquired in merger 167 167

Net income 2,226 2,226

Change in net unrealized gain (loss) on securities available for sale (1,369) (1,369)

Total comprehensive income 857

Balance at December 31, 2016 $ 107,037 $ (161) $ 106,876

Equity acquired in merger 2,784 2,784

Net income 6,709 6,709

Change in net unrealized gain (loss) on securities available for sale (492) (492)

Total comprehensive income 6,217

Balance at December 31, 2017 $ 116,530 $ (653) $ 115,877

Accumulated Other Comprehensive

Income (loss)

Total

Equity

Retained Earnings

Years ended December 31, 2017 2016Interest and dividend income: Loans $ 32,814 $ 30,336 Investments and Fed Funds 02,407 02,193

Total interest and dividend income 35,221 32,529

Interest expense: Deposits 4,233 3,974 Borrowings 000093 0 0211

Total interest expense 04,326 03,985

Net interest income 30,895 28,544

Provision for loan losses 1,945 6,351

Other income 13,417 13,765

Operating expenses: Salaries and employee benefits 20,554 19,692 Occupancy (includes depreciation expense) 4,292 4,337 Loan servicing 964 1,077 Data processing 3,613 3,059 Other general and administrative 06,235 05,567

Total operating expenses 35,658 33,732

net income $ 6,709 $ 2,226

STATeMenTS of inCoMeDollars in Thousands

Assets At December 31, 2017 2016Cash and cash equivalents $ 37,128 $ 39,219Investment securities 113,322 116,390Loans held for sale 1,607 1,970Loans 959,088 894,298Less: Allowance for Loan Losses (10,058) 0(11,293)Loans, net 949,030 883,005Property and equipment, net 10,867 9,854Other assets 44,885 46,899

Total Assets $ 1,156,839 $ 1,097,337

LiABiLiTieS AnD equiTy At December 31, 2017 2016Deposits $ 1,014,155 $ 978,694Borrowings 16,000 1,000Accrued expenses and other liabilities 00010,807 010,767

Total Liabilities 1,040,962 990,461

Total Equity 115,877 106,876

Total Liabilities and equity $ 1,156,839 $ 1,097,337

STATeMenTS of ConDiTionDollars in Thousands

2017 was the strongest growth year the Credit Union has experienced since 2009, with total assets growing by 5.4% and equaling $1.16 billion. Our success was fueled by an increase in deposits of $35 million and loan growth of $65 million.

These growth totals were aided by the merger of Landmark Credit Union (LCU), located in North Adams, into Greylock earlier in 2017, which accounted for approximately $20 million of the deposit growth and $8 million of the loan increase.

Our earnings continued to improve and amounted to $6.7 million compared to $2.2 million in 2016. The increase in earnings was mostly the result of a lower provision for loan losses due to continued improvement in the quality of the Credit Union’s loan portfolio, as well as the large provision, which was required in 2016 to accommodate the sale of distressed mortgages, that was not repeated in 2017.

Also contributing to higher earnings was an increase to net interest income resulting from stronger loan growth, and an improving net interest margin.

Expenses grew more than usual in 2017. This was primarily due to costs resulting from the LCU merger, and also from investments that improved the member experience such as our new online/mobile banking system.

We have a busy 2018 already in the works. Much needed renovations are scheduled for several of our branches and other facilities. Many more projects are underway as we continually look for ways to improve our ser-vice to you, our members.

Michael R. StoddardExecutive Vice President and

Chief Financial Officer

Report of the Chief financial officer financial Statements highlights

• Total assets grew by $60 million or 5.4%

• Loan growth of $65 million or 7.2%

• Deposit growth of $35 million or 3.6%

• Regulatory capital improved from 9.94% to 10.30%

• 60-day past due loans remained relatively flat at 1.08% of total loans

• Net loan charge-offs at 0.35% of average loans, the lowest level since 2007

• Net income improved to $6.7 million, which equals a return on assets of 0.60%

• Net interest margin improved from 2.79% to 2.91%

Financial information contained in this report may be subject to adjustments following completion of Greylock’s annual audit.

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