Member Information Session – March 2014

WELCOME Tomo Matesic – Board Chair

Objectives To provide members with information on the partnership discussions between Mainstreet and Lambton Financial Credit Unions To discuss the potential benefits of a combined credit union Take your questions and receive your feedback

AMALGAMATION OVERVIEW Janet Grantham – President and CEO

Amalgamation The Boards of Directors of Mainstreet Credit Union and Lambton Financial Credit Union have entered in to an agreement to amalgamate our credit unions as of May 31, 2014

Guiding Principles Merger must create tangible value and benefit to our members Staff will be our champions and must see the benefits for the members, the credit union and themselves We will retain our skilled and valued staff Build a future credit union based on mutual gains – creation not a negotiation

Strategic Challenges Local and global economic environment Economies of scale - cost of investing in new products and services Financial margin Increasing regulatory requirements Having enough resources to deliver on our promises New membership More competition in the marketplace

Ontario Credit Union System 164 credit unions in credit unions in mergers have already been announced in 2014 Mainstreet is 19 th largest in Ontario New Mainstreet will be 15 th largest in Ontario

Rationale The merger will create new economies of scale that will drive enhanced profitability and the ability to invest in expanded services that all credit unions require, such as: data management banking systems enhanced products and services networks compliance oversight aligns with our current strategic plan

Overview of Lambton Financial 5 branches – all in the Sarnia area 60 employees $210 million in assets $30 million commercial loan portfolio $60 million mutual fund portfolio More liquid than Mainstreet

Comparison As at December 31, 2013MainstreetLambton Members13,3008,000 Residential Mortgages54.68%53.55% Commercial and Agriculture Loans 25.82%14.93% Mutual Funds$22.5 Million$60 Million Registered Deposits35.93%23.62% Retained earnings4.33%7.62% Capital6.71%8.22% Return on assets*.19%.46% Delinquency.77%.39% Efficiency ratio91.75%88.31% Liquidity9.04%14.29% *.29% before merger costs for Mainstreet

Branch Locations

Governance 6 board members from each original credit union will continue on to new board Tomo Matesic will be Vice-Chair 3 committees -Audit -Governance -Risk and Human Resources Governance Review within three years

Leadership Janet Grantham President and Chief Executive Officer Bob Ferris Executive Vice President - Strategy & Operations Shawn Bustin Executive Vice President - Sales & Member Service

Benefits to Members Increased lending limits Access to more branches – 13 versus 8 Better able to… -Manage the risks in an increasingly competitive and complex market -Provide enhanced levels of specialized expertise by reallocating resources -Deliver more responsive advisory services -Provide greater returns to members and our communities

Financial Benefits for Members Projected MainstreetProjected New Mainstreet Return on Assets Capital Efficiency

New Mainstreet Projections 2013 Yearend Combined 2018 Yearend Combined Increase or Decrease Assets$542,675,000$688,759, % Capital7.18%7.40%0.22% Efficiency Ratio89.26%77.68%-11.58% Return on Assets0.26%0.51%0.25% Incremental Financial Benefit Annually $1,400,000$1.4 million annually

Benefits for Staff No jobs will be lost No branch closures Increased opportunities for employees Minimal change at Senior Management level Will benefit from what we learned this past year No banking system conversion

Vision The new Mainstreet will… Have strong relationships with our members Retain a strong local presence in each of our communities Be nimble and responsive to local needs Employ and retain exceptional staff who are committed to investing in our members and our communities

Annual General and Special Member Meetings April 7:00pm Mount Brydges Community Center

QUESTIONS? For more information or further questions

THANK YOU