DON JOHALVice-PresidentElected to board 2017

SANJIV GARGDirectorElected to board 2017

ED KOLODZIEJSecretaryElected to board 1997

DIANNE LEE SOUSADirectorElected to board 2012

FIER TULLEKENDirectorElected to board 2002

ED PLEZIADirectorElected to board 1992

APEE PANCHHIVice-PresidentElected to board 2016

BOARD OF DIRECTORS2018 ANNUAL REPORT

MISSION, VISION, VALUES ...................................... 2NEW ROADS AHEAD ............................................... 3HIGHLIGHTS .............................................................. 4THE NUMBERS ......................................................... 5WHAT A YEAR IT’S BEEN ........................................ 6SCHOLARSHIPS ........................................................ 7JEANS FOR GREENS ............................................... 8OUR PEOPLE ............................................................. 9COMMUNITY IMPACT .............................................. 10FAREWELL TO GORD .............................................. 11BEST WISHES FROM ECU ...................................... 12MEET OUR EXECUTIVES ......................................... 13PRESIDENT’S REPORT ............................................ 14BOARD OF DIRECTORS ........................................... 15MOVING FORWARD ................................................. 16FINANCIAL REPORT ................................................ 17

TABLE OF CONTENTS

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MISSION

VISION

VALUES

Achieve excellence in providing quality financial and related services in anticipation of, and in response to, the changing needs of our members, in a manner that benefits all.

To be a vibrant organization that creates prosperity while delivering value to its stakeholders.

PEOPLEThe members who trust us with their financial success.

STRENGTHProviding growth and opportunity through exceptional services and products.

VALUESThe guiding principles that underscore our dedication to our members, making the Entegra experience comfortable, convenient and profitable.

INTEGRITYTo operate with integrity and respect resulting in attentive, solution focused banking innovations.

NEW ROADS AHEADIt has been a year of change for Entegra with the formation of a new Executive Team, the expansion of our Wealth Management Division, and our community engagement is continuing to evolve and expand; further strengthening our commitment to the communities we belong to.

New members and employees mean an ever stronger support network that allows us to provide better solutions for our members. With change comes new opportunity, but the focus on member needs will always remain our top priority as we strive to provide an outstanding financial experience for our members.

As we embark on this new journey, we will continue to preserve the values that make up the foundation of our Credit Union. We are dedicated to helping our members reach their financial goals as the growth and development of our Credit Union is a reflection of the financial growth of our members.

At Entegra, we belong together.

HIGHLIGHTS

15,750 members

$779 million assets under administration

59 Years of service

$

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THE NUMBERS

+5.96%Assets

+5.65%Loans

+2.24%Deposits

2017$632,680,292

2018$670,402,741

2017$557,725,171

2018$589,243,833

2017$560,898,139

2018$573,443,054

New COOAnnounced

RRSP & TFSAonline apps & contributions

available

New CFOAnnounced

WHAT A YEAR IT’S BEEN

Now offering Square

Jeans for Greens

program initiated

New e-Transfer

features added

Entegra Visa introduced

E-documents now available

Enhanced Mobile sitelaunched

Implicity hits 2,900 members

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SCHOLARSHIPS

COLLÈGE JEANNE-SAUVÉ

Two scholarships awarded at $500 each

Samantha GeeversMaria Charach

GARDEN CITYCOLLEGIATE

Two scholarships awarded at $500 each

Simrandeep PawarPatricia Lledo

RIVER EASTCOLLEGIATE

One scholarship awarded at $1,000

Sara Pazerniuk

At Entegra, we recognize the value that post-secondary education brings to the growth and development of our youth. Each year we are proud to provide $1,000 to each of our surrounding school divisions to award to their graduating students. In 2018, five students were awarded the Entegra Credit Union Scholarship to assist them in their first year of post-secondary education.

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Entegra employees are getting casual for a cause to raise funds and awareness for local charities through our new corporate initiative, Jeans for Greens.

The concept is simple; Entegra employees donate $1.00 each week in exchange for wearing jeans to work on Fridays. Quarterly, Entegra donates all the funds raised to a charity or local organization that is selected and voted upon by staff, with Entegra matching all contributions.

In Q4 of 2018, $2,666.10 was donated to Winnipeg Harvest to help those in need during the holiday season.

JEANS FOR GREENS

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OUR PEOPLE

84% of staff volunteered at a community event

12 staff members were recognized in 2018 for their contributions based on 5, 10, 15, & 20 years of service

At Entegra we understand that people - on both sides of the counter - are our most important resource. Our dedicated employees work together towards a common goal of providing an outstanding financial experience for our members.

$2,300 was personally raised by ECU staff members

130 combined years of service from our 2018 service award recipients

$43,857.54 spent on training and employee development

97% of staff completed training courses in 2018

5YEARS

10YEARS

15YEARS

20YEARS

10

360 volunteer hours $38,540.75 donated to local charities and organizations

14,400 bottles of water distrubuted at community events

IN 2018 ENTEGRA WAS ABLE TO SUPPORT OUR COMMUNITIES THROUGH:

FAREWELL TO GORD

After 21 years, the time has come to bid farewell to our CEO and leader, Gordon Kirkwood. Gordon’s tenure with Entegra Credit Union dates back to 1997 when he became the CFO of then, Holy Spirit Credit Union. His role as CFO quickly transitioned when he was promoted to CEO in 1998. Under his leadership and guidance, Entegra has grown from a one-branch organization and $74 million in assets under administration to four branches, an online division, and over $779 million in assets under administration.

During Gordon’s tenure as CEO, Entegra experienced a period of significant financial growth. Gordon orchestrated a rebrand from Holy Spirit Credit Union to Entegra and launched an online division, Implicity Financial. Gordon Kirkwood has had an immeasurable impact on Entegra and has been instrumental to the growth that Entegra has experienced over the years.

Gordon's career in the credit union system spans over four decades. He joined Astra Credit Union in 1977 as a teller and has since held almost every position imaginable within the credit union system with experience primarily in Finance and IT. Gordon has transitioned through the credit union system with stops at Cooperators/Cambrian Credit Union, Credit Union Central of Manitoba, and Assiniboine Credit Union, before finally ending his journey at Holy Spirit/Entegra Credit Union.

It is with great pleasure that the Board, management, and staff thank Gordon for the past 21 years and wish him all the very best in his retirement.

GORDON KIRKWOODCHIEF EXECUTIVE OFFICER

BEST WISHES FROM ECU

I think it says a lot about you as a person and as a CEO that I, a teller, am saddened by this news. I hope you see just how big of an impact you have had on this Credit Union and all of its employees, from executives to front line staff. I wish you a wonderful retirement!

“”While we look forward to a challenging and hopefully fulfilling future, one thing

I know for sure is that our past cannot and will not be duplicated again. Sincere thanks and a very heartfelt appreciation to who you are and all you have done for us.

FELICIA BORGES, MSR

“”DARREN DOBSON, DIRECTOR BRANCH OPERATIONS

I remember one of the MSRs at St. Anne’s commenting on how Gord was out shoveling the snow from our walkways. They couldn’t believe a CEO would do that, but I informed them that Gord would be one of the most humble people that they would ever encounter.

“

” BONITA KASTES, BRANCH MANAGER

It has been a privilege to work with you. We have been very lucky to have such a great and understanding leader. “ ”CANDACE DRYBURGH, ADMINISTRATION MANAGER

It’s been an absolute pleasure to work under Gord’s guidance and as everybody knows, we are where we are all because of his brilliant leadership. “ ”JASBIR BHOGAL, COMMERCIAL CREDIT OFFICER

You have been so instrumental in all the positive changes from Holy Spirit to Entegra. It was a pleasure working with you and an honour.“ ”JANINA MISLOWE, INTERNAL AUDITOR

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Ernie is a CPA/CGA with a number of years’ experience working in the credit union system in Ontario. He spent four years as Vice-President of Finance and four years as President & CEO of Northern Lights Credit Union, now Alterna Savings. After successfully leading Northern Lights Credit Union through a merger, Ernie left the credit union system and took on the role of Chief Administrative Officer for the City of Dryden where he had worked until joining the Entegra team in April of 2018.

KERRI ROBERTSONKerri Robertson, MMCCU, CFP, C.I.M., P.Mgr., C.Mgr. is passionate about co-operatives and has worked in the credit union sector for over 20 years. Prior to Entegra she worked for nine years at CUMIS, a trusted insurance partner to credit unions, six years of which were spent as a Director for Western Canada where she was responsible for driving talent management. Preceding CUMIS, Kerri was a Branch Manager for Assante Financial Management, responsible for successfully leading the advisor and support team in sales, operations and compliance. She also worked in two credit unions for over a decade in a variety of wealth and lending roles with various teams. Kerri has dedicated herself to lifelong learning. Most recently she completed her Masters of Management of Credit Unions and Co-operatives (MMCCU) through Saint Mary’s University. She holds her Certified Financial Planning (CFP), Professional Managers (P.Mgr.) and Certificate in Management (CIM) designations.

CHIEF OPERATIONS OFFICER

ERNIE REMILLARDCHIEF FINANCIAL OFFICER

AS YOUR BOARD OF DIRECTORS, it is our role to provide input and leadership to Entegra’s Executive Management Team, ensuring the day-to-day business conducted by Entegra is in line with the mission, vision, and values of our Credit Union. Our members lie at the core of our values, so when setting the strategic direction for 2018, we have worked to ensure that Entegra is effectively managed for the long-term benefit of our members, reinvesting our profits back into the credit union and the communities we belong to.

This past year was a year of change for Entegra. We welcomed two new executives to our team, CFO Ernie Remillard and COO Kerri Robertson, while saying goodbye to our long-time leader Gordon Kirkwood. We implemented new software systems to help increase organizational efficiencies, expanded our Wealth Management Division to better address the needs of our members, and increased our focus on employee training and development.

In 2018, 97% of our staff members completed personal development training through seminars and courses, providing them with increased knowledge and tools to better serve our members. In addition, 84% of our staff volunteered their time to support a variety of community initiatives, proving Entegra is dedicated to strengthening our impact on the communities we serve.

PRESIDENT’S REPORT

Continued member loyalty has helped us to achieve the steady growth we saw throughout 2018. In the reporting year, our assets finished just over $670 million, an increase of 5.96% over 2017. We increased member loans by 5.65% and grew our member deposits by 2.24%. Meanwhile, our net income before dividends finished the year at $1,817,588, an improvement of 57.38% over 2017 results. Implicity Financial continues to shine amidst frequently emerging competition in a competitive online market.

Understanding that the financial landscape is always changing, Entegra is dedicated to providing better solutions for our members. In 2018 we enhanced our product and service offering through the launch of our new Visa credit card suite, the introduction of Square mobile payment solutions, and through user enhancements to Interac e-Transfers, including Autodeposit and Request Money feature.

As we live in a predominantly digital world, we understand the importance of offering new channels for our members to conduct their day-to-day business. In 2018, Entegra made several enhancements to our digital banking platform. We launched online applications for all registered products as well as the functionality for members to complete RRSP and TFSA contributions directly from online banking. Heading into 2019, we will continue our focus on simplifying the member experience, which includes the introduction of online account opening for new and existing members.

At Entegra, we truly believe that people on both sides of the counter are our most important resource. I would like to thank our dedicated employees, management team, and Board of Directors for their unwavering commitment. But most importantly, we would like to thank our members for continuing to choose Entegra as your financial partner.

APEE PANCHHIPRESIDENT

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DON JOHALVice-PresidentElected to board 2017

SANJIV GARGDirectorElected to board 2017

ED KOLODZIEJSecretaryElected to board 1997

DIANE LEE SOUSADirectorElected to board 2012

FIER TULLEKENDirectorElected to board 2002

ED PLEZIADirectorElected to board 1992

APEE PANCHHIPresidentElected to board 2016

BOARD OF DIRECTORS

MOVING FORWARD

ACCOUNT OPENING SOFTWARE

In early 2019, Entegra will be launching a state-of-the-art digital account opening platform to serve members anytime, anywhere. From existing members opening up additional accounts to new members opening an account for the first time, it can now all be done in a matter of minutes on mobile, tablet, or desktop computer, without leaving the comfort of your own home.

WEALTH MANAGEMENT

As part of our mission to provide our members with the best possible products and sound financial advice, we are excited to announce the expansion of our current wealth management team to include an Investment Specialist. Partnered with Aviso Wealth Inc., Entegra’s wealth management team offers a comprehensive selection of products and services including mutual funds, investment planning, and insurance solutions.

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FINANCIAL REPORTFOR THE YEAR ENDING DECEMBER 2018

WINNIPEG, MANITOBAMarch 18, 2019 CHARTERED PROFESSIONAL ACCOUNTANTS

To the Members of Entegra Credit Union Limited:

The summary consolidated financial statements, which comprise the summary consolidated statement of financial position as atDecember 31, 2018, and the summary consolidated statements of net income and comprehensive income and changes in members'equity for the year then ended, and related notes, are derived from the audited consolidated financial statements of Entegra Credit UnionLimited (the "Credit Union") for the year ended December 31, 2018.

Summary Consolidated Financial Statements

The summary consolidated financial statements do not contain all the disclosures required by International Financial ReportingStandards. Reading the summary consolidated financial statements and the auditor's report thereon, therefore, is not a substitute forreading the audited consolidated financial statements and the auditor's report thereon.

The Audited Consolidated Financial Statements and Our Report Thereon

We expressed an unmodified audit opinion on the audited consolidated financial statements in our report dated March 18, 2019.

Management’s Responsibility for the Summary Consolidated Financial Statements

Management is responsible for the preparation of the summary consolidated financial statements on the basis described in Note 1 to the summary consolidated financial statements.

Auditor's Responsibility

Our responsibility is to express an opinion on whether the summary consolidated financial statements are a fair summary of the auditedconsolidated financial statements based on our procedures, which were conducted in accordance with Canadian Auditing Standards(CAS) 810, Engagements to Report on Summary Financial Statements.

REPORT OF THE INDEPEDENT AUDITOR ON THESUMMARY CONSOLIDATED FINANCIAL STATEMENTS

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SUMMARY CONSOLIDATED STATEMENT OF FINANCIAL POSITION

APPROVED ON BEHALF OF THE BOARD OF DIRECTORS

signed “Apee Panchhi” , Director

signed “Ed Kolodziej” , Director

A FULL SET OF AUDITED FINANCIAL STATEMENTS IS AVAILABLE FROM THE CREDIT UNION

2018 2017

ASSETS

Funds on hand and on deposit 8,542,943 7,725,793

Investments 54,875,553 48,363,349

Members’ loans 589,243,833 557,725,171

Income tax recoverable -- 59,681

Other assets 1,145,322 1,678,468

Property, equipment and intangible assets 16,595,090 17,127,830

670,402,741 632,680,292

LIABILITIES

Members’ savings and deposits 573,443,054 560,898,139

Accounts payable and other liabilities 5,903,815 7,283,786

Securitization liabilities 50,092,704 24,954,350

Income tax payable 112,610 --

Deferred income tax liability 450,000 303,000

630,002,183 593,439,275

MEMBERS’ EQUITY

Members’ shares 9,878,280 10,216,925

Retained surplus 30,522,278 29,024,092

40,400,558 39,241,017

670,402,741 632,680,292

ENTEGRA CREDIT UNION AS AT DECEMBER 31, 2018

SUMMARY CONSOLIDATED STATEMENT OF NET INCOME AND COMPREHENSIVE INCOMEENTEGRA CREDIT UNION FOR THE YEAR ENDED DECEMBER 31, 2018

2018 2017

INTEREST

Interest from members’ loans 20,672,517 19,215,305

Investment income 1,666,366 1,116,530

22,338,883 20,331,835

COST OF FUNDS

Interest paid on members’ savings and deposits 11,785,307 10,756,558

Other interest expense 790,188 294,905

12,575,495 11,051,463

FINANCIAL MARGIN 9,763,388 9,280,372

OPERATING EXPENSES

Administration 2,476,062 2,592,365

Member security 507,986 517,259

Occupancy 1,593,158 1,614,097

Organizational 353,515 367,873

Personnel 5,317,721 5,615,350

GROSS OPERATING EXPENSES 10,248,442 10,706,944

Other income (3,229,769) (3,269,881)

NET OPERATING EXPENSES 7,018,673 7,437,063

INCOME FROM OPERATIONS BEFORE PROVISION FOR LOAN LOSSES AND INCOME TAXES 2,744,715 1,843,309

Provision for loan losses (403,127) (440,420)

INCOME BEFORE PROVISION FOR INCOME TAXES 2,341,588 1,402,889

Current 377,000 265,000

Deferred 147,000 (17,000)

PROVISION FOR INCOME TAXES 524,000 248,000

NET INCOME AND COMPREHENSIVE INCOME FOR THE YEAR 1,817,588 1,154,889

A FULL SET OF AUDITED FINANCIAL STATEMENTS IS AVAILABLE FROM THE CREDIT UNION 20

SUMMARY CONSOLIDATED STATEMENT OF CHANGES IN MEMBERS' EQUITY

A FULL SET OF AUDITED FINANCIAL STATEMENTS IS AVAILABLE FROM THE CREDIT UNION

ENTEGRA CREDIT UNION FOR THE YEAR ENDED DECEMBER 31, 2018

MEMBERS’

SHARES

RETAINED

SURPLUS

TOTAL

MEMBERS'

EQUITY

BALANCE, DECEMBER 31, 2016 11,027,975 28,154,722 39,182,697

Net income and comprehensive income for the year -- 1,154,889 1,154,889

Dividends declared, net of tax recovery of $50,000 -- (285,519) (285,519)

Issuance of member shares 180,078 -- 180,078

Redemption of member shares (991,128) -- (991,128)

BALANCE, DECEMBER 31, 2017 10,216,925 29,024,092 39,241,017

Net income and comprehensive income for the year -- 1,817,588 1,817,588

Dividends declared, net of tax recovery of $55,000 -- (319,402) (319,402)

Issuance of member shares 782,726 -- 782,726

Redemption of member shares (1,121,371) -- (1,121,371)

BALANCE, DECEMBER 31, 2018 9,878,280 30,522,278 40,400,558

NOTES TO THE SUMMARY CONSOLIDATED FINANCIAL STATEMENTS

A FULL SET OF AUDITED FINANCIAL STATEMENTS IS AVAILABLE FROM THE CREDIT UNION

ENTEGRA CREDIT UNION FOR THE YEAR ENDED DECEMBER 31, 2018

1. Basis of the summary consolidated financial statements

Management has prepared the summary consolidated financial statements from the Credit Union’s December 31, 2018, audited consolidated financial statements which can be obtained at the Credit Union. The cash flow statement and detailed notes included in the audited consolidated financial statements are not included in these summary consolidated financial statements.

2. Compliance with minimum capital and liquidity requirements

The Credit Union is in compliance with the capital and liquidity reserve requirements at December 31, 2018, established by the Regulations to The Credit Unions and Caisses Populaires Act of Manitoba.

Readers of the summary consolidated financial statements are advised that in order to appropriately interpret the Credit Union’s capital and liquidity, the reader must refer to the audited consolidated financial statements and notes for the year ended December 31, 2018, which contain the information detailing the calculation.

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Disraeli Branch121 Disraeli FreewayWinnipeg, MBCanada R3B 2Z5

Gateway Branch1105 Gateway RoadWinnipeg, MBCanada R2G 0A5

Jefferson Branch1335 Jefferson AvenueWinnipeg, MBCanada R2P 1S7

St. Anne’s Branch540 St. Anne’s RoadWinnipeg, MBCanada R2M 5R7

www.entegra.ca