2017 Community Impact Report

Y-12 Federal Credit Union began in

1950 as the vision of a small group of

employees at the Union Carbide Y-12

Plant. From that modest beginning,

we now serve over 117,000 members

as a full service financial institution.

Y-12 FCU is a federally-chartered,

member-owned, not for profit

financial cooperative, dedicated to

transforming the lives of our members

and communities. Membership is open

to businesses and individuals that live,

work, worship, or attend school in our

8 county service area.

Who We Are

Anderson

Blount

Campbell

Knox

Loudon

Roane

Sevier

Union

Total Assets $1.2 Billion Membership 117,000+ Employees 273

Member Of:

Y-12 Federal Credit Union will be an innovative financial

partner, transforming the lives of

our members and communities by

developing lasting relationships

while delivering WOW

experiences.

ImpactingOur

Members

Our mission is to be a financial partner and to transform the lives of our members. We believe that means in all phases of their lives. So, we design products to serve members who are just starting out or who may need a little more assistance.

First Time Auto BuyersWith our First Time Auto Buyer Program, members receive competitive rates, manageable terms and the opportunity to begin establishing a strong credit history. Members can qualify based on length of employment and income, even with very little credit history. In addition, we provide helpful tips to make the car buying and car financing process easy.

100% Mortgage FinancingWe can finance up to 100% of the appraised value for approved mortgages, allowing individuals or families just starting out to get into a home without a huge down payment.

Opportunity Checking AccountSometimes life throws you a curve ball and when it does we think you deserve a second chance. Members who do not qualify for our traditional checking accounts may be offered an Opportunity Checking account. For a small monthly fee, they receive a checking account and debit card. Beyond easy access to their money, this account provides members the opportunity to re-establish themselves as dependable account holders. This account is eligible for upgrading to any other checking account after just a few months of positive account history.

Financial CounselingMembers may request an appointment, free of charge, with ourcertified financial counselor. These sessions can be used to establish a budget, learn good spending and saving habits, or to develop a plan to reduce debt. Many members take advantage of this service each year making a positive impact in their financial lives.

We recruit, hire, and develop a top-notch team in order to deliver exceptional service to our members. Y-12 FCU spends hundreds of thousands of dollars per year on employee development including training opportunities, conferences and tuition reimbursement.

ImpactingOur

Employees

We believe it is our responsibility to give back to the members and communities who contribute to our success. It’s so important that we made transforming our communities part of our purpose statement.

Volunteer HoursY-12 Federal Credit Union gives each employee 16 hours of paid time for volunteering with qualified 501c3 organizations.

Our employees donated approximately 800 hours last year to a variety of worthy organizations, truly making a difference in their local communities.

Some of the organizations served were:

• Coats for Our Community• The Love Kitchen• Second Harvest Food Bank• Boys & Girls Clubs• East Tennessee Kidney Foundation• Safe Space of East Tennessee

ImpactingOur

Communities

We believe it’s never too early to improve your financial literacy.That’s why we have an entire department dedicated to Education Services.

School BranchesIn 2010, Y-12 FCU partnered with two schools to open our first student-run branches. With the opening of 2 new branches in 2017 at Powell High School and Hardin Valley Academy, this program has grown to include 9 high schools and 3 middle schools. Thousands of students have had the opportunity to open credit union accounts, to learn about establishing good financial habits, and many have gained hands-on experience working as volunteer Member Service Consultants.

Student InternsSince 2010, over 25 student interns have been hired to work in Y-12 FCU branches. Additionally, several of these interns have gone on to become full or part-time Y-12 FCU employees.

Bill T. Hicks ScholarshipIn 2010, Y-12 Federal Credit Union introduced the Bill T. Hicks Scholarship. This award is named for Bill T. Hicks, former Y-12 FCU Board Chair and educator in the Oak Ridge School System. This award recognizes the achievement of student members graduating from high school.

Over $40,000 has been awarded to date.

Summer and After-School ProgramsWhen school is not in session, our Education Services team is still going strong. They work with organizations such as Boys & Girls Club and Junior Achievement in camps, classrooms, or wherever there is an opportunity to provide financial literacy lessons.

Impacting Our

Students

The Y-12 Gives Foundation celebrated its launch on July 17, 2017 and has provided grants for the following organizations.

Y-12 FCU Gives FoundationIn July of 2017, Y-12 FCU introduced the Y-12 FCU Gives Foundation to extend our mission of “people helping people” into the philanthropic realm of charitable giving and support. The goal of the foundation is to partner with nonprofit organizations in the communities we serve who share our core values. The primary areas of focus for the foundation are:• Education• Health & Wellness• Responding to emerging community needs

The Y-12 FCU Gives Foundation celebrated its launch on 7/17/17 by extending grants to The American Cancer Society for the Making Strides Against Breast Cancer event, and to Harbours Gate. Since then, additional grant requests have been received and will continue to be awarded on a quarterly basis. We are excited about the opportunity to work more closely with local non-profits to increase our impact in the communities we serve. Continue reading for a description of the worthy organizations we were able to assist in 2017.

Making Strides Against Breast CancerMaking Strides Against Breast Cancer is the largest network of breast cancer awareness events in the nation, uniting 300 communities to finish the fight. Every breast cancer walk and event is an incredible and inspiring opportunity to honor those who have battled breast cancer, raise awareness about what we can do to reduce our breast cancer risk, and raise money to help the American Cancer Society fight the disease with research, information and services, and access to mammograms for women who need them.

Community Health of East TennesseeCommunity Health of East Tennessee, Inc. is a local agency providing health, education, social and community services for Campbell and surrounding counties. For many people their services are “hope” for getting help where there has been despair.

Ridgeview Behavioral Health ServicesRidgeview is committed to providing high quality behavioral health services through prevention, treatment of mental illness & Substance abuse, and support to improve the overall health, well-being, recovery, and hope of the people they serve.

ImpactingArea

Organizations

Free Medical Clinic of Oak RidgeFree Medical Clinic provides no-charge primary care and wellness services to low-income, uninsured residents of Anderson, Morgan and Roane counties who otherwise would not have access to the medical care they need.

Greenwood School Education FoundationThe mission of the Greenwood School Education Foundation is to promote education, preserve the heritage of the African American community, and support the development of the historical Greenwood School in Kingston, TN. Their goal is to restore and renovate the Greenwood School building, which was given to the Roane County NAACP by the Roane County Commission in 2014, so it can be used as a community center.

Harbours GateHarbors Gate was officially formed in the Spring of 2012. Their mission is to serve local communities in need as a ‘neighborhood peace corps’. They work with the residents of each community, developing leaders who can help change and improve the lives of others in need.

Oak Ridge Computer Science GirlsOak Ridge Computer Science Girls is a 501(c) (3) nonprofit corporation whose mission is to inspire middle school girls in East Tennessee to actively explore the possibilities of technology to empower their future careers. They are organizing coding and technology workshops for Middle School girls in the Oak Ridge area.

Senior SmilesSenior Smiles is a Blount County Community Action program which provides senior adult trips to the doctor and grocery for seniors who can no longer drive. Blount County Community Action has served the local community since 1965 and provides help to the most vulnerable citizens. Through utility assistance they infuse over a million dollars annually to local utility providers, assist with emergency dental care and supply hundreds of pounds of food to those in need with Commodity distribution. Low Income Healing Assistance Program (LIHEAP) helps many keep the lights on; the Office on Aging educates senior adults about Medicare.

Little Ponderosa Zoo and RescueLittle Ponderosa Zoo and Rescue is a nonprofit organization that rescues exotic animals from across the United States. 98% of their animals are rescues, and they work diligently to provide a safe, loving, forever home for these animals. On December 4, 2017 , Little Ponderosa suffered a devastating fire. They lost several animals, as well as the entire main building and its extensive contents. We were pleased to be able to respond to this emerging community need.

Y-12 Federal Credit Union was recognized with the following awards in 2017.

Best Credit UnionClinton Courier Reader’s Choice Award

Best Credit UnionLafollette Press Reader’s Choice Award

Collaboration & Innovation AwardNational Association of Credit Union Service Organizations

Excellence in Lending AwardCredit Union National Association

Gail Martin Champion of Hope AwardAnderson County Schools

Awards

As financial cooperatives, credit unions recognize the value in combining our resources for the greater good. We are proud of the many achievements made by partnering with fellow credit unions or other partners.

7 Insurance & 7 Title ORNL FCU and Y-12 FCU formed 7 Insurance and 7 Title in 2015. The creation of the two companies allows the credit unions to offer the best title services and insurance products to help fulfill the needs of members.In 2017, the credit unions were recognized with the Collaboration and Innovation Award by the National Association of Credit Union Service Organizations (NACUSO). The award recognizes excellence in collaboration through use of the Credit Union Service Organization (CUSO) model.

Credit Unions CareIn 2016, several area credit unions began meeting to identify opportunities for community collaboration. Recognizing that we are stronger together, this group was a major sponsor for the 2016 and 2017 Fantasy of Trees. The event has raised more than $7 million for East Tennessee Children’s Hospital in its 30 year tenure. In addition to financial support, the credit unions provided many volunteers who worked shifts throughout the event. CU Cares meets on a regular basis planning and organizing their upcoming community projects.

Dealer Donation DaysIn 2017, several local car dealers partnered with Y-12 Federal Credit Union to participate in Dealer Donation Days. Over 50 dealerships donated a portion of proceeds from each Y-12 FCU loan to a designated donation account. At the end of the 3-month period, the collected funds were matched by Y-12 FCU Gives Foundation, for a total of $10,000. Four local charities: Boys and Girls Club of the Smoky Mountains, Compassion Counseling, Newborns in Need and Second Harvest Food Bank received $2,500 each.

Credit Union OrganizationsY-12 FCU is a proud member of the Knoxville Area Chapter of Credit Unions, The Tennessee Credit Union League (TCUL), Credit Union National Association (CUNA), and the National Association of Federal Credit Unions (NAFCU).

ImpactingThrough

Collaboration

ImpactingLegislative Advocacy

Legislative Visits

Y-12 Federal Credit Union was honored to host a visit from Senator Ken Yager at our Roane County Branch on Tuesday, October 3, 2017. Officials from the Tennessee Credit Union League (TCUL), Y-12 credit union members, employees and other community representatives were on hand to meet with Yager.Credit union leaders enjoyed the opportunity to talk with Yager about important issues that directly impact members. Y-12 representatives shared with Senator Yager specific community initiatives such as the new Y-12 FCU Gives Foundation and other programs like in-school branches, where the goal is to teach financial literacy to students.

Lieutenant Governor Randy McNally visited Oak Ridge Corporate Headquarters on Monday, May 15, 2017. Officials from the Tennessee Credit Union League, Y-12 FCU members, employees and other community representatives were on hand to meet with McNally. Credit union leaders enjoyed the opportunity to talk with McNally about important issues that directly impact members —such as taxation, data breaches, and regulatory burdens.

Y-12 FCU Members Total CU Members

District 1: Phil Roe 3,751 290,320District 2: John Duncan 39,488 343,339District 3: Chuck Fleischmann 35,989 301,131District 4: Scott DesJarlais 486 238,723District 5: Jim Cooper 175 129,773District 6: Diane Black 617 119,704District 7: Marsha Blackburn 138 145,432District 8: David Kustoff 51 142,522District 9: Steve Cohen 29 157,824Total Members 80,724 1,868,768

Key personnel and board members regularly represent Y-12 Federal Credit Union at legislative conferences and forums — including the Credit Union National Association (CUNA), Governmental Affairs Conference and the National Association of Federally Insured Credit Unions (NAFCU) Congressional Caucus. These events provide opportunities to network with credit union peers throughout the country and learn more about issues most critical to credit unions. Y-12 FCU executives also meet with legislators to address the concerns regarding regulatory burden and understanding the impact the regulations have on credit unions and their members.

Y-12 FCU and the Knoxville Area Chapter of Credit Unions worked in conjunction with the Tennessee Credit Union League to host a Legislative Appreciation Dinner. The primary objective of the dinner was to honor our legislators. We truly appreciate their commitment to serve as advocates for their local credit unions and will continue to look for ways to collaborate with them to better serve our members.

Employees from Y-12 Federal Credit Union had the opportunity to meet with Representative Jason Zachary during the Knoxville Area Chapter of Credit Unions’ first legislative dinner.

LocationsAN DE R SON COU NT Y

501 Lafayette Drive, Oak Ridge, TN 37831

101 Crosspark Drive, Clinton, TN 37716

450 N. Charles Seivers Blvd., Clinton, TN 37716

B LO U NT CO U NT Y

624 W. Lamar Alexander Pkwy., Maryville, TN 37801

2901 Old Knoxville Hwy., Maryville, TN 37804

C AM PB E LL COU NT Y

2550 Jacksboro Pike, Jacksboro, TN 37757

1011 E. Central Ave., LaFollette, TN 37766

KN OX CO U NT Y

6640 Clinton Highway, Knoxville, TN 37912

9245 Kingston Pike, Knoxville, TN 37922

13128 Kingston Pike, Knoxville, TN 37934

2377 Cherahala Blvd., Knoxville, TN 37932

530 E. Emory Road, Powell, TN 37849

ROAN E CO U NT Y

1715 Roane State Hwy., Harriman, TN 37748

S E V I E R COU NT Y

1203 Dolly Parton Pkwy., Sevierville, TN 37862

www.y12fcu.org

CR2017

Federally Insured by NCUA