1. Presenting: Board Orientation Your Credit Union Date of Orientation Location of Orientation

2. Section 1 Overview of the Credit Union Movement

3. Overview of the Credit Union Movement Nonprofit Financial Institutions in a For-Profit Industry Member-Owned Financial cooperatives organized to help members achieve their financial goals (not make a profit for shareholders) A Proud Tradition “Not for profit, not for charity, but for service” Governance Board of directors elected by members, not shareholders

4. Overview of the Credit Union Movement History of Credit Unions Founded in Europe in 1800s as “people’s banks” First formed in North America as an alternative to loan sharks for working-class people Credit unions chartered to serve narrowly defined fields of membership (workplace, profession or trade, community, association, church) Federal Credit Union Act became law in 1934 National Credit Union Administration created to 1970 to charter and supervise federal credit unions

5. Overview of the Credit Union Movement History of Credit Unions (cont.) Credit unions were founded to “make the system work better for more people. … The founders of credit unionism … stressed participation by all members. The goal, then, was economic democracy through self-help.” --J. Carroll Moody and Gilbert C. Fite, The Credit Union Movement: Origins and Development, 1850-1970

6. Overview of the Credit Union Movement Credit Unions Today Many serve wider fields of membership through select employer groups (SEGs) and community charters Consolidation means fewer, but financially stronger, credit unions Full-service financial institutions Committed to “people helping people” through financial education and member advocacy Heavily regulated to protect members’ assets and organizational safety and soundness

7. Section 2 About the Credit Union

8. About the Credit Union Mission Your mission statement here.

9. About the Credit Union Vision Your vision statement here.

10. About the Credit Union History (Example) 1950:Founded by employees of XYZ Paper Mill. 1955:Served 600 workers; staffed by volunteers. 1967:Opened office at mill; hired first manager. 1982:Merged with credit union serving nearby mill to form Mill Valley Federal Credit Union. 1996:4 branches in operation, serving 7,000 mill workers and their families in three-county area. 2005:Obtained community charter, $38 million in assets, serving 6,800 members, 15 full-time and 4 part-time staff, 5 branches (including one worksite and one in-store) (Sample)

11. About the Credit Union Products and Services Full-Service Financial Institution Share savings and certificates Share draft accounts with direct deposit Debit, credit and ATM cards New and used auto loans Home equity loans Mortgages in partnership with Mortgage Pros, Inc. Special accounts for children and teens (Sample)

12. About the Organization (Sample) Helping Members Achieve Their Financial Goals Convenient Access 5 branches and ATM access through network Online account access and bill-pay Automated phone service Commitment to Education Financial literacy programs in local schools Home-buyer education workshops Financial counseling Referrals to investment counseling for retirement planning

13. About the Credit Union By the Numbers Current number of members Assets Current number of employees Key financial indicators, ratios and trends (perhaps presented in comparison to industry average)

14. About the Credit Union Strategic Goals Develop branch-based member recruitment. Train and incent branch managers to lead recruitment efforts of prospective members within a 5-mile radius Open 25 new share draft accounts per month at each branch Recruit five new SEGs within each branch territory Position credit union as member-friendly mortgage alternative. Provide referral packets to area real estate offices Offer home-buyer workshops to SEG groups Partner with local community groups to promote affordable mortgage to first-time home buyers (Sample)

15. About the Organization Strategic Goals, cont. Increase membership in 18-34 age group. Launch “noon-hour branches” at three high schools, staffed by students and offered in conjunction with financial literacy curriculum. Package free share draft accounts with debit cards and no-fee ATM access and low-cost computer/book loans to college students Introduce low-cost used car loans with low down payment requirements for first-time car buyers Streamline operations to offer best possible rates. Assess potential of check imaging to reduce processing costs. Introduce incentives to steer members to e-statements and online account access. (Sample)

16. About the Credit Union Structure Credit Union Staff (revise chart to include CU titles) (Sample)

17. About the Credit Union Community Partnerships Sponsors, SEGs 75 SEGs and counting Branch on XYZ campus Homebuyer education program offered through Mill Valley Community Association Support for Local Schools and Community Groups Sponsor financial literacy programs in local schools Cosponsor annual Run to Save the River (Sample)

18. Section 3 About the Board

19. About the Board Board Structure Board Officers Frank Navaro, board chair Stella Jarvis, vice chair Gretta Smith, treasurer Jeffrey Marx, secretary (Sample)

20. About the Board Board Structure Committees Executive committee, Stella Jarvis, chair Governance committee, Jan Johnson, chair Executive compensation committee, Charlie Preston, chair (Sample)

21. About the Board Board Structure Task Forces Annual membership meeting, Jeffrey Marx, chair Community/new member outreach, Gretta Smith, chair (Sample)

22. About the Board Board Operations Board Composition and Recruitment 9 directors Three-year terms Three consecutive term maximum service Governance committee leads recruitment and nominating process (Sample)

23. About the Board Board Consultants Legal counsel, Peter Nunez, Esq. Auditor, Valerie Lourdes, CPA Strategic planning facilitator, Sylvia Grant (Sample)

24. About the Board Reading List Bylaws Board policies Board biographies Prior year’s annual audit Budget Annual report Strategic plan (Sample)

25. About the Board Board Calendar Board meetings / dates Annual membership meeting / dates Chief executive performance evaluation / date Annual strategic planning retreat / date Annual audit / date (Sample)

26. Section 4 Board Roles and Responsibilities

27. Board Roles and Responsibilities Board Function Organizational Governance Authority Accountability

28. Board Roles and Responsibilities Key Roles of the Board Set Organizational Direction Provide Oversight Ensure Safety and Soundness

29. Board Roles and Responsibilities Board Role Set Organizational Direction Responsibilities: ▪ Participate in regular strategic planning ▪ Determine organization’s mission ▪ Set the vision for the future ▪ Establish organizational values ▪ Set major goals and develop strategies ▪ Approve operational or annual plans

30. Board Roles and Responsibilities Board Role Ensure Necessary Resources Responsibilities: ▪ Hire capable executive leadership ▪ Ensure adequate financial resources ▪ Promote positive public image ▪ Ensure the presence of a capable and responsible board

31. Board Roles and Responsibilities Board Role Provide Oversight Responsibilities: ▪ Oversee financial management ▪ Minimize exposure to risk ▪ Measure progress on strategic plan ▪ Monitor and evaluate programs and services ▪ Provide legal and moral oversight ▪ Evaluate the chief executive (annually) ▪ Evaluate itself (every two to three years)

32. Board Roles and Responsibilities Individual Director Responsibilities Act in Accordance with Legal Standards Duty of Care ▪ Stay informed and ask questions Duty of Loyalty ▪ Show undivided allegiance to credit union’s welfare Duty of Obedience ▪ Stay faithful to the credit union’s mission

33. Board Roles and Responsibilities Individual Director Responsibilities Participate in the governance of the organization Work on committees and task forces Volunteer services to the credit union outside of board work Serve as ambassador to the member community