BUSINESS LENDING TEAM TOGETHER WE SERVE TOGETHER WE …

[Pages:8]TOGETHER WE SERVE TOGETHER WE GROW

BUSINESS LENDING TEAM

2015 ANNUAL REPORT

ANHEUSER-BUSCH EMPLOYEES' CREDIT UNION AMERICAN EAGLE CREDIT UNION PURINA CREDIT UNION

CEO'S LETTER ROBERT MCKAY

"I AM IMPRESSED WITH HOW OUR MANAGEMENT TEAM AND EMPLOYEES LISTEN TO MEMBERS AND HOW MEMBERS ENGAGE WITH US."

As incoming CEO, I am very proud to be here and fortunate to be able to build upon the strong foundation of our Credit Union and the leadership of Dave Osborn, who retired after 23 years as CEO. I have been impressed with how our management team and employees listen to members, and how members engage with us to make us better. I believe that this leads to great results. Together, we will continue to serve our members, and together, we will continue to grow. This is the core of what we do: listen to our members, provide financial services tailored to meet needs, offer competitive products, support our communities, and exceed member service expectations.

In 2015 with the steady expansion of LifePlan, financial planning service, our Credit Union experienced near record growth of 31% in assets under management and credit union revenue growth of 63% over 2014, making this a successful year. Our direct consumer loans, at the heart of our business, helping members with home loans, credit cards, automobile, and student loans, grew 4.6% this year compared with 2% in 2014. In fact, our mortgage loans originated increased 60% over the previous year.

In Business Lending, we continued our string of impressive results with growth of 18% with little or no delinquency throughout the year. And in direct lending, we reduced delinquency by 44% from December 2014 to .94%, the lowest since 2008.

In October, we launched new and more powerful online and mobile banking systems. Our members have more flexibility and more control with innovative tools to see their complete financial picture all on one screen. Bill pay, automatic payments, transfers, deposits, and viewing of checks and statements are even more user-friendly. And,

both systems offer greater security as do our new EMV credit cards, equipped with computer chips and the technology to authenticate chip-card transactions. These changes are designed to provide more convenience, protect our members, and reduce fraud.

This year we began the redesign of our website to provide a more robust member experience via one of our largest volume member service channels. Look for these improvements in 2016.

We were thrilled that, for a second year in a row, the Credit Union was awarded the Top Places To Work Award from the St. Louis Post-Dispatch. Each year, employees of nominated businesses are surveyed. Firms with the highest scores based on national benchmarks are awarded this honor.

In line with our plans for strategic growth, we successfully completed our merger with Purina Credit Union, which became a division of ABECU. We can continue to provide Nestl? Purina PetCare employees with superior products, enhanced services, and long-term value. We also began to serve employees of Energizer and Edgewell Personal Care.

This year, I have been so pleased to meet members, families, friends, and employees in the communities we serve. I am confident that together we will continue to listen to needs and dreams, grow our Credit Union, and build a bright future for all.

Sincerely,

Robert McKay Chief Executive Officer

CHAIRMAN'S LETTER FRED KUHN

"WE WILL CONTINUE TO LISTEN TO OUR MEMBERS, INNOVATE WITH NEW AND IMPROVED PRODUCTS AND DELIVER EXCEPTIONAL SERVICE."

This year, we welcomed our new CEO, Bob McKay. Selected by the Board of Directors, Bob McKay replaces Dave Osborn who led the Credit Union with great success for 23 years. Bob comes to the Credit Union with over 20 years of experience in the industry. Since 1995, he was Executive Vice President and Chief Operating Officer of Baxter Credit Union. He also serves on many credit union industry boards including Member Loyalty Group, CUNA Lending Council and the American Credit Union Mortgage Association. With this experience and his vision for the future, he is an ideal fit as our new CEO, and he is committed to serve our members now and in the future.

Once again, we have delivered on our promise: Assist members with financial needs and goals; Build sustaining relationships; and Support the communities we serve, and we ended 2015, with a strong net worth and respectable net income that approximated $7 million. Today, we have over 120,000 members with $1.5 billion in assets, and 30 branch offices around the United States.

To serve our expanded membership, we opened a new branch in St. Louis Hills, relocated from Hampton Avenue.

In 2016, we will open a new branch in Ellisville, MO, a western suburb of St. Louis. In addition, we understand that many of our members prefer to conduct business from the comforts of their home or office so we will continue to enhance our mobile and online options.

On behalf of the Credit Union Board of Directors, Management, and Staff, thank you for the continued trust that you place in us for all your financial needs. In the continually changing financial world, we will continue to listen to our members, innovate with new and improved products, and deliver exceptional service to you and your family.

Sincerely,

Fred Kuhn Chairman of the Board of Directors

ASSIST MEMBERS WITH FINANCIAL NEEDS AND

OUR PROMISE GOALS BUILD SUSTAINING RELATIONSHIPS SUPPORT THE COMMUNITIES WE SERVE

CINDY BUSINESS DEVELOPMENT MANAGER

"THE CREDIT UNION GIVES ME GREAT OPPORTUNITIES FOR GROWTH THROUGH TRAINING AND MENTORSHIP."

120,000

MEMBERS

30 BRANCH OFFICES

$ 1.5

BILLION IN ASSETS

KURT MEMBER LOHR DISTRIBUTING CO

AWARDED TOP PLACES TO WORK AWARD BY ST. LOUIS POST-DISPATCH

BORIS PERSONAL SERVICE

COUNSELOR

TYLER & RAMONA MEMBERS

BUSINESS CLIENTS

MAUREEN MEMBER ANHEUSER-BUSCH INBEV

"WHAT I ENJOY MOST ABOUT WORKING AT THE CREDIT UNION IS THE WAY WE DO OUR BEST TO TREAT EACH OTHER AND OUR MEMBERS AS FAMILY."

CREDIT REVIEW REPORT

CLINTON LAUGHLIN

Each year, your Credit Union builds on its successes of expanding the range of high-quality loan products and services, and helping members manage their assets to achieve their financial goals. Our outstanding loan programs have highly competitive rates, and our channels of delivery are member-friendly, making it convenient to obtain a loan for any need or dream, whether it's for a vacation, car, education, home or for a new or expanded business.

In 2015, your Credit Union's branch loans grew more than $60 million exceeding the budgeted amount while mortgage loans increased 60% over 2014. Our teams prudently manage and grow these assets to benefit all Credit Union members. We are pleased that we are able to help our members fulfill their objectives at every life stage.

In 2016, we will introduce a new interest only Home Equity Loan that offers flexibility and opportunity for our members. Also we will introduce new E-signature technology that will result in an even more efficient loan experience. Please consider your Credit Union when thinking about purchasing a home or a car, taking a vacation, expanding your business or financing an education. You will appreciate the ease and convenience of our competitive interest rates and loan programs. Thank you for allowing us to serve you in 2015, and we look forward to new programs for you, your family, and your business in 2016.

Sincerely,

Clinton Laughlin Chairman of the Credit Review

"THE CREDIT UNION SUPPORTS THE COMMUNITIES WE SERVE THROUGH MANY VOLUNTEER AND OUTREACH OPPORTUNITIES."

BOARD OF DIRECTORS Fred Kuhn, Chairman Ron Kraus, Vice Chairman Mark Harris, Secretary/Treasurer Michael Chapman, Andrew Dierkes, James Fugel, Jeffrey Knapper, Sara Stobbs, Brock Tuffli

BOARD ASSOCIATES Clinton Laughlin, Julia Mize, Beth Rickmann

BOARD EMERITUS Charles R. Klauke

CREDIT REVIEW Clinton Laughlin, Chairman Andrew Dierkes, James Fugel, Mark Harris, Julia Mize, Beth Rickmann

SUPERVISORY COMMITTEE Mark Harris, Chairman Charles R. Klauke, Clinton Laughlin, Julia Mize

MANAGEMENT Robert McKay Chief Executive Officer Pier Y. Alsup Senior Vice President of Marketing & Communications Michael Dougherty Senior Vice President of Lending Ronald Kampwerth Senior Vice President of Finance Adrianne Thompson Senior Vice President of Human Resources

SUPERVISORY COMMITTEE REPORT

MARK HARRIS

Anheuser-Busch Employees' Credit Union (and its Divisions) remain strong and accountable. The Supervisory Committee is responsible for monitoring management practices to safeguard members' assets, overseeing the accuracy of financial statements, and ensuring the fair presentation of the Credit Union's financial condition. The committee provides an oversight role for the Board, the internal audit department, Credit Union management, and the external auditor (BKD LLP). The internal audit department evaluates internal financial controls and determines compliance with policies and regulations. After careful review, BKD LLP expresses an opinion on the Credit Union's financial statement, based on accepted auditing practices. In addition, State and Federal representatives conduct routine examinations of the Credit Union.

This committee met with BKD LLP, the internal audit department, and Credit Union management throughout 2015 to review financial information and audit results. We are pleased to report that the Credit Union is operating as intended for the benefit of its members. Thank you for your continued trust, and we look forward to serving you in 2016.

Sincerely,

Mark Harris Chairman of the Supervisory Committee

2015 FINANCIAL STATEMENT

ASSETS

Loans to members Less allowance for loan losses Net Loans Investments Interest bearing deposits Cash and due from banks Property and equipment Share insurance deposit Federal Home Loan Bank stock Interest receivable Other Assets TOTAL ASSETS

LIABILITIES AND MEMBERS' EQUITY

Shares and other savings accounts Long term debt Other liabilities Total Liabilities Regular reserves Undivided earnings Accumulated other comprehensive loss Total Member's Equity TOTAL LIABILITIES AND MEMBERS' EQUITY

INCOME

Interest on loans to members Interest on investments and interest bearing deposits Total Interest Income Dividend and interest expense Net Interest Income Service fees and other income GROSS INCOME

EXPENSES

Provision for loan losses Salaries and employee benefits Net occupancy expense Equipment expenses Data processing expense Professional services Advertising and promotion Postage, printing and office supplies Telephone Insurance expense Credit card expenses Net loan expenses ATM expenses Termination of defined benefit plan Other expenses Total Expenses NET INCOME

DECEMBER 31, 2015

$ 1,239,953,689 (13,144,212)

1,226,809,477 157,555,055 74,956,643 12,712,015 44,161,149 12,651,081 2,338,100 4,504,598 16,830,869

$ 1,552,518,987

$ 1,370,678,311 15,000,000 10,415,340

1,396,093,651 2,491,284

155,887,694 (1,953,642) 156,425,336 $ 1,552,518,987

YEAR ENDED DECEMBER 31, 2015

$ 55,208,396 3,113,401

58,321,797 6,797,518

51,524,279 21,970,267 $ 73,494,546

$ 10,725,000 25,338,572 3,352,825 2,023,190 3,488,481 1,390,810 1,248,446 993,900 1,095,347 862,223 3,288,487 3,504,299 480,562 3,431,449 5,394,765 66,618,356 $ 6,876,190

2014

$ 1,179,824,543 (14,567,592)

1,165,256,951 146,822,484 43,358,884 12,391,848 43,092,187 11,907,299 2,495,100 4,345,309 18,695,718

$ 1,448,365,780

$ 1,272,494,361 20,000,000 11,430,544

1,303,924,905 513,402

149,011,504 (5,084,031) 144,440,875 $ 1,448,365,780

2014

$ 54,360,101 3,304,819

57,664,920 6,909,697

50,755,223 17,974,681 $ 68,729,904

$ 12,162,500 23,551,323 3,046,848 1,703,227 3,270,912 1,088,777 1,264,347 1,264,221 760,944 969,158 3,156,044 3,338,946 514,769 4,890,596 60,982,612 $ 7,747,292

LOCATIONS

TO SERVE OUR EXPANDED MEMBERSHIP, WE OPENED A NEW BRANCH IN ST. LOUIS HILLS.

St. Louis Main 1001 Lynch Street St. Louis, MO 63118 314-771-7700 Jennifer Duncan, Manager

Crestwood 9895 Watson Road Crestwood, MO 63126 314-835-2900 Marta Kasprzak, Manager

Creve Coeur 12395 Olive Blvd. Creve Coeur, MO 63141 314-720-7200 Mary Barry, Manager

Des Peres 2175 Barrett Station Road St. Louis, MO 63131 314-821-2442 Linda Rosso, Manager

Fenton 304 Summit Road Fenton, MO 63026 636-305-3900 Terri Eatherton, Manager

Florissant 1075 N. Lindbergh Florissant, MO 63031 314-972-5000 Samantha Knight, Manager

Jefferson County 1334 Jeffco Blvd. Arnold, MO 63010 636-282-7030 Kelly Guenther, Manager

O'Fallon 2531 Highway K O'Fallon, MO 63368 636-980-9800 Jennifer Begley, Manager

Shiloh 1153 Blue Springs Plaza Shiloh, IL 62269 618-628-4000 Paul Martin, Manager

South County 3805 Union Road St. Louis, MO 63125 314-894-3555 Janice Rea, Manager

South County 12988 Tesson Ferry Road St. Louis, MO 63128 314-467-1400 Azra Schmidt, Manager

South St. Louis 6600 Chippewa Street St. Louis, MO 63109 314-832-8500 Tiffany Jernigan, Manager

Purina Credit Union 901 Chouteau Avenue St. Louis, MO 63102 314-657-9600 Jennifer Duncan, Manager

Baldwinsville 2885 Belgium Road Baldwinsville, NY 13027 315-635-3487 Roxine Langdon, Manager

Cartersville 100 Busch Drive NE Cartersville, GA 30121 770-606-3240 Jeannie Watkins, Manager

Cedar Hill 725 E. Belt Line Road Cedar Hill, TX 75104 972-293-9506 Rosie Magallon, Manager

Columbus 690 Schrock Road Columbus, OH 43229 614-888-2299 Lori Holdren, Manager

Fairfield 2351 N. Watney Way, Ste. A Fairfield, CA 94533 707-429-0105 Elizabeth Valk, Manager

Fort Collins 1520 East Mulberry, Ste. 100 Fort Collins, CO 80524 970-221-4541 Kathleen van Boord, Manager

Houston 775 Gellhorn (in A-B complex) Houston, TX 77029 713-676-0939 Debbie Goddard, Manager

Jacksonville 155 Busch Drive Jacksonville, FL 32218 904-751-3335 Zonnetta Thomas, Manager

Los Angeles 16054 Roscoe Blvd. Van Nuys, CA 91406 818-779-1105 Jill Melton, Manager

Merrimack 302A Mound Court Merrimack, NH 03054 603-429-0434 Sherri Kehnast-Cuipa, Manager

Newark 200 US Highway 1 & 9 Newark, NJ 07114 973-824-7071 Linda Campanelli, Manager

Orlando 7007 Sea World Drive Orlando, FL 32821 407-370-2406 Julieta Urquiola, Manager

San Antonio 10500 Sea World Drive San Antonio, TX 78251 210-684-4811 Felipe Guzman, Manager

San Diego 500 Sea World Drive San Diego, CA 92109 619-225-3230 Teri Christensen, Manager

Tampa 3209 E. Busch Blvd. Tampa, FL 33612 813-985-8552 Bobbie Bertram, Manager

Williamsburg 243 McLaws Circle, Ste. 100 Williamsburg, VA 23185 757-253-3894 Tanisha Jones, Manager

Federally insured by NCUA. We do business in accordance with the Federal Fair Housing Law and the Equal Credit Opportunity Act. AnheuserBusch Employees' Credit Union (and its divisions) is an independent financial institution, chartered by the state of Missouri, which is owned and operated by its membership. The Credit Union is not a subsidiary of Anheuser-Busch Companies, Inc. or its divisions. NMLS #401252

ANHEUSER-BUSCH EMPLOYEES' CREDIT UNION

AMERICAN EAGLE CREDIT UNION

PURINA CREDIT UNION

1001 Lynch Street St. Louis, MO 63118 314-771-7700 877-325-CU4U (2848)

Loan-by-Phone 866-577-9223 CUE Phone (audio response) 314-771-0064 800-228-6755

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