By John B. Lund, President and Chief Executive Officer

Each spring, America First members gather to elect a volunteer Board of Directors to lead our credit union, renew our bond, and honor our legacy as a not-for-profit cooperative. The Board provides us with strategic guidance, ensuring our ongoing safety, soundness, and ability to deliver relevant financial value.

The process takes place at the annual meeting, which this year was held on April 18, 2017 in Ogden, Utah. Joining us were local officials, as well as credit union & industry representatives.

Kenlon W. Reeve, acting Chair of the Board Election Nominations Committee, oversaw the balloting, during which the membership chose James G. Wendler, Linda K. Carver, and Gil A. Miller to serve three-year terms. The Board subsequently maintained internal leadership roles, with Mr. Wendler as Chairman, Mrs. Carver as Vice Chair, and Mr. Reeve having the Secretary position.

Mr. Miller, a certified public & forensic accountant from Salt Lake City, is new to our Board and we welcome him. He has extensive expertise and experience. I look forward to working with him and his fellow volunteers as we embrace the challenges and opportunities that lie ahead.

I would also like to personally extend my deepest gratitude to long-serving Board member Edwin G. Cline for his remarkable 42 years of dedicated service to America First. Ed is a gentleman in every sense of the word, and has made a significant contribution to the success of our credit union. His dear sweetheart Linda is also an outstanding individual and a friend to America First, as well as all who know her. Ed and Linda will be missed, but not forgotten.

Those on the Board give tremendously of their time and talents, without compensation, to benefit the credit union. They are truly dedicated to improving the financial health of every member and we are fortunate they are part of our team.

Our Loan Review and Supervisory Committees are also comprised of volunteers delivering much-needed services to the membership. The Loan Review Committee functions as an independent appeals avenue for members initially denied financing. The Supervisory Committee works with internal and external auditors to ensure fiscal and regulatory safety & soundness.

During his Chairman’s message, Mr. Wendler noted how many companies, including financial institutions, limit themselves by not seeking better ways to better meet the needs of those they serve. “We at America First are fueled by imagination, the desire to grow responsibly, and the knowledge that the ability to move beyond existing realms is not only preferable but necessary in a changing world,†he said.

Indeed, it’s a privilege to report that the strength, stability, innovative spirit, commitment to fiscal discipline, and lasting qualities of America First are in abundance. We are well positioned for a vibrant future and I am proud to be part this credit union. Together, we strive every day to help you, our valued members, save money, simplify your busy lives, and reach your unique financial objectives. It is our desire to develop and maintain a lifelong relationship with you and you families.

By John B. Lund, President & Chief Executive Officer

Dear members,

It’s my privilege to thank you for your membership, loyalty, and confidence in America First. I’m also grateful for the opportunity to present an annual report of the credit union’s performance & initiatives. Our volunteer and employee team strives for excellence each and every day, remaining passionate about developing and delivering superior financial services. We experienced another outstanding year and are well-positioned for a bright and vibrant future.

As we look forward in an ever-changing industry, I often ask myself why I would choose America First as my primary financial institution. Many benefits come to mind, but there are four core issues that shape how and what we provide to members: relevance, differentiation, sustainability and heart.

Relevance —To be relevant, something must have meaning or value given its position, situation, and circumstances. Last fall, my wife and I were fortunate to spend some relaxing time in Hawaii. While playing golf, a couple named Bruce & Jen approached, motioned to the logo on my shirt, and proudly said they were members of America First. Bruce explained that he joined many years ago while stationed at Hill Air Force Base in Ogden, Utah. Although they had lived all over the world, they always maintained their membership, saying the credit union continued to serve them well, helping them achieve their financial goals in each stage of life and regardless of their location.

Differentiation—The marketplace is cluttered with endless offers, gimmicks and, at times, predatory propositions. We, however, work diligently to develop trust and lasting relationships, helping members keep more of their money, simplify their busy lives, and reach their unique objectives.

We are proud of our convenient and meaningful products & services, such as free checking, free bill pay, free Visa® debit cards, and free 24/7 account management through our award-winning online and mobile applications. Free credit scores accompany our checking accounts. We foster robust dialogue and communication with secure email, social media, contact center, and live chat channels. Members can also take advantage of our top-tier savings vehicles, including money market, IRA, health savings & certificate accounts, investments, insurance, and trust services. America First is an industry leader in home loans, auto and RV financing, and merchant card services, as well as business services that include loans, checking and Visa. Members can also take advantage of free financial counseling, educational seminars, and document shredding events throughout the year.

Our Visa cards are truly outstanding. In addition to no annual fees, the lowest possible rates, free personalization and many other features, our cash-back option pays members 1.5% on all purchases. Participants earn extra rebates & discounts with our merchant-funded ABC Deals program, bringing members thousands of real dollars every year. Further, recognizing the prevalence of fraud and personal data compromises in today’s digital world, we now provide free identity theft recovery plans to members and their immediate families with Visa credit accounts. Recovery service is also available for purchase at significant discounts of up to more than 75% for those without our credit cards. This is an amazing differentiating benefit, as other institutions charge $25 to $50 per month for similar or even inferior services.

America First is fortunate to operate one of the region’s largest branch networks, with 121 locations and more planned for 2017. This presence sets us apart, but perhaps the most important distinction we have as a credit union is our continual focus on service levels. Our loyalty, retention, product utilization, and net promoter scores are among the country’s best, yet we always endeavor to improve.

Sustainability—Maintaining integrity is crucial to any sustaining organization, especially in the financial services sector. The economy has its cycles, life has its ups and downs, but you can rest assured that integrity in all facets is constant at America First.

We take pride in being fiscally sound and independently rated among the best credit unions in the nation. We closed the year with $844 million in capital, up 10.41%. Our net worth ratio was 11.32%, far above the 7% mark that is considered well capitalized by the National Credit Union Administration. We received an unqualified opinion from an external auditing firm regarding our 2015 financial statements, and expect another unqualified rating when the 2016 official review is complete.

Assets increased by 14.41% and were above $8 billion. Our return-on-assets ended the year at a strong 1.17%. Membership continued growing at a healthy pace, finishing at nearly 819,000. Deposits increased more than $926 million, up 14.75%. Our year-to-date loan growth was 16.37%, netting $835 million. Our loan delinquency rate was a low .79% and the allowance for loan & lease loss was more than adequate to absorb any portfolio deficiencies.

New offices opened in Summerlin, Nevada; Santa Clara, Washington Fields, Jeremy Ranch, Traverse Mountain, and West Point, Utah; Boise, Idaho; Tempe, Arizona; and our new Innovation Center debuted in Salt Lake City.

Heart—The people-helping-people philosophy of America First is strong, deeply rooted, and has remained a guiding principle since our founding in 1939. We feel that being a conscientious corporate citizen is paramount to our relevance. We will continue working with our schools, communities, and organizations that foster the greater good to make a meaningful difference. Examples of these efforts include supporting food drives, conducting our Warm the Soles of Kids campaign, contributing to the 100% For Kids Credit Union Education Foundation, making grants through our charitable foundation, supporting children’s hospitals, providing scholarships, and assisting many other worthy causes. Further, our team donates thousands of personal hours to service outreach.

My deepest thanks are extended to our volunteers and staff; their commitment to the membership, whether serving you directly or indirectly, is unrivaled. Most importantly, I express my utmost appreciation to you, our valued members. It is our desire to develop and maintain a lifelong relationship with you and your family.

 

By Glen Olpin, Senior Vice President/Chief Economist

Each new year gives us the opportunity to reflect on the financial trends & conditions that have affected the membership over the past 12 months, as well as forecast how these economic factors will impact our operations going forward.

We expect a strengthening national economy this year, improving somewhat from what we experienced in 2016. A recent survey indicates most America First members have a wait-and-see attitude toward economic growth. Only 27% of respondents see an improvement coming, compared with over 30% a year ago. However, since the resolution of the U.S. presidential election, we have seen the stock market accelerate, confidence soar, and small businesses demonstrate higher levels of optimism.

Benchmark interest rates edged up slightly during 2016, and we forecast two to three additional quarter-percent increases throughout the year as the American economy gains momentum.

Utah’s 3.1% unemployment rate is well below the national average of 4.7%. The state also ranks among national leaders in job growth. Nevada’s labor markets were greatly improved, with unemployment levels falling to 5.2%. A large percentage of our members believe their personal employment situations will get better this year.

Consumer spending has expanded, resulting in sustained overall economic growth, even without significant increases in personal income. National retail sales grew more than 4% in 2016.

Personal credit saw faster than 6% growth for the year, while at America First, loan demand has been significant and is expected to continue into the future. Due largely to units moved in December of 2016, new auto sales set an annual industry record. Demand is expected to ease slightly during 2017. As it does, we expect dealer incentives to continue playing a key role in sales growth.

Inflation stayed low, but increasing home values & sales have created strong market conditions. We expect continued housing and construction growth during 2017, even as interest rates rise moderately.

While public uncertainty has to a large extent faded, questions remain regarding fiscal spending, regulatory reform, tax code changes, trade relations, and other issues. Ongoing expectations for positive changes in Washington will likely buoy the economy as it expands.

Regardless of the larger economic environment, all of us at America First are committed to providing you with service excellence, delivering high-quality financial products & services, and establishing lasting relationships of trust.

We appreciate the confidence you’ve placed in your credit union and thank you for your membership.

By John B. Lund, President and Chief Executive Officer

I am pleased to report that 2016 was another outstanding year. Your credit union remains safe, strong, well respected, and positioned for a bright and vibrant future.

To be part of a truly outstanding organization and team–that has among its core principles the mission to improve the financial well-being of its members, as well as the communities in which we live and work–is extremely gratifying. We strive to create meaningful relationships by providing relevant and affordable financial solutions for individuals, families, and businesses.

Significant milestones we reached include surpassing $8 billion in assets, growing to over 800,000 members, and opening new locations in Arizona and Idaho. America First is the 11^th largest credit union in the nation in terms of assets and 7^th most substantial in membership. While size provides critical mass necessary for a complex and changing world, I believe our growth and success reflects the fact that we offer consistent value, convenience, and high levels of service.

Additional highlights of 2016 include:

• We opened new locations in Santa Clara, Washington, Jeremy Ranch, and Traverse Mountain, Utah; Summerlin, Nevada; Boise, Idaho; and Phoenix, Arizona.
• Our first-of-its-kind Innovation Center debuted in Salt Lake’s City Creek Center, showcasing and giving members the opportunity to test and evaluate new technologies and services.
• Superior service scores & measurements continue to be very strong and are among the best in the nation.
• We improved call center systems, resulting in dramatic wait time reduction.
• We received outstanding ratings and reviews from our external auditors and our federal regulator.
• Member-selected personal identification numbers were made available.
• A new & free identity theft recovery service was offered to those who use America First Visa® credit cards. This is in addition to our Card Guard® mobile security app that provides real-time credit and debit card control.
• EMV chip-enabled Visa cards were issued for an extra layer of protection.
• Our Visa cash-back cards featured a higher rebate level and we enhanced the free ABC Dealsâ„¢ program.
• New and improved loan and deposit services for business account holders were delivered.
• We were again recognized as the number-one auto lender in Utah & the top credit union auto lender in Nevada.
• Our tradition of being your premier provider of electronic services continued.
• We developed engaging social media initiatives and demonstrated solid results.
• Many educational programs for students and teachers in our schools were undertaken.
• Our dedication to making significant outreach efforts to the communities we serve was evident, including the donation of time, means, and goods to those in need or those who require a helping hand.

As we look forward, you can be certain that America First will remain committed in our resolve to bring you the very best in financial services. I hope 2017 is a year of peace, productivity, and positive outcomes for you and those you love. Thank you for supporting America First Credit Union. We look forward to a lifelong relationship.

By John B. Lund, President and Chief Executive Officer

During my youth, the holidays and Christmas were modest, yet memorable times. It is a meaningful life lesson for me in reflecting back that I remember very few specific gifts. However, the inspiring sights, the wonderful scents, the delicious foods, and the fun I had with friends and family are precious, vivid recollections that stay with me to this day.

When she was preparing for the season, my mother made fantastic meals that would be enjoyed not just at one sitting, but for days thereafter. My favorites included macaroni & shrimp salad, three-bean salad, ham, rolls, cheeses, and her fabulous potato salad. Her date nut loaf was a much-anticipated dessert.

My dad enjoyed decorating our home, both inside and out. Creating this festive atmosphere in the outdoors was a big project that took considerable time. And I’m sure his having to keep after me to help slowed down our progress. When complete, the site was absolutely beautiful, especially after a fresh storm, with the lights showing through the snow and reflecting off the icicles.

To enhance the holidays even further, he built an outdoor speaker system so that passersby could listen to Christmas music. He played vinyl records on our hi-fi stereo from greats such as Bing Crosby, Nat King Cole, Frank Sinatra, Perry Como, the Andrews Sisters, Johnny Mathis & Andy Williams. I treasure these wonderful classics to this day.

All of my parents’ efforts to make these occasions special were put forth in the spirit of love and selflessness. In the process, long-term relationships and precious memories were developed and strengthened.

It’s truly the positive connection with others that enriches our lives in a relevant and enduring manner. While the relationships we at America First have with you as members can’t be quite this intimate, we do strive to make our services personal, meaningful, and lasting.

On behalf of our entire team of volunteers and staff, we wish you a merry Christmas and a happy new year. Please remember to pick up your free 2017 calendar at any of our branches. We thank you for your membership and look forward to a lifelong relationship in serving you and your family.

By John B. Lund, President & Chief Executive Officer

On a recent visit to one of the country’s larger cities, I arrived several hours prior to my first meeting. With the extra time, I decided to go for a walk/run in an effort to get my daily steps in.

As I headed down the street, I came upon a small park with a three-lane, quarter-mile track around the perimeter, which made it the ideal place to exercise without having to deal with traffic, etc.

During my first lap, I noticed an older gentleman pushing a young man in a wheelchair who was mentally & physically disabled. The two were softly conversing, with the boy smiling and clearly pleased to have the company. On another turn, I saw the man massaging the shoulders and neck of his younger companion. The next time around, the gentleman had moved to a location offering a different view. This heartfelt interaction between the two continued the entire hour I spent at the park.

By himself, this young man couldn’t experience the basic joys of life many of us take for granted. Yet this kind gentleman intuitively perceived how he could help the boy savor this valuable time outside on beautiful warm afternoon.

As I made my way around and around the track, time seemed to pass much more quickly as I forgot about my minor aches and pain by focusing on the beautiful act of service I saw. I felt a powerful sense of gratitude toward this gentleman. It was inspirational witnessing such thoughtful and tender service. This motivated me to think a little bit less about myself and to be more sensitive to the needs of others.

During November, we celebrate Veterans’ Day and Thanksgiving. Hopefully, we can all pause to recognize and openly thank those who have served this country and those who are now defending our freedom all over the world. Gratitude is a simple yet powerful force for good and we can always be generous in displaying it.

I hope each of you has a wonderful season. We appreciate your membership in and loyalty to America First. We look forward to a lifetime relationship.

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