When measuring success, Kohler Credit Union looks to our members. We don’t measure our success solely on the numbers on our financial statements…we reflect on how well we helped our members. YOU are the reason we exist and the reason we provide the world-class service you deserve.

As a not-for-profit, financial cooperative, our way of doing business is different—our members come first, we care about our community, and our values lead our strategic vision. We look for new and different ways to provide the products and services that help you achieve your financial goals and fulfill your dreams.

2013 marked Kohler Credit Union’s 75th year dedicated to serving our member’s needs and supporting the communities we serve. We were able to enrich the lives of others in a number of ways:

• Launched My Money Manager—A free, online cash-flow management and budgeting tool that helps you keep track of ALL your finances…not just accounts at Kohler Credit Union. • Introduced two new mortgage products—Paid-in-10, a 10-year mortgage with low closing costs; and a First-Time Home-Buyer Program, that helps the dream of home ownership come true. • Enhanced member service—A new function on the credit union website provides you access to a

database of information to help answer any questions you may have 24 hours a day, 7 days a week. • Steadfast in our community outreach—Provided volunteers for Love Bowls; donated a chest freezer to the Sheboygan Falls Food Pantry; rang bells during the holiday season for Salvation Army; sponsored local events such as the Sheboygan County Fair, Grafton Blues Festival, Gus Macker, Junior Achievement’s Business Challenge, and many more.

And as we venture into a new year, we will also venture into a new community. With the opening of a new branch in Mequon at the end of 2014, we look forward to welcoming our new neighbors into the Kohler Credit Union family.

Thank you for believing in us through your loyalty and trust...we believe in you as valued members of Kohler Credit Union.

A Letter to our Members...

Anthony J. Klockow President/CEO

Chris Lacey Board of Directors, Chairman

Our Board of Directors...lead•er•ship | lēdər SHip | nounorganizing a group of people to achieve a common goal

Our Board of Directors—nine elected volunteers who dedicate their time and talents to serve the credit union—participate in the development of Kohler Credit Union’s goals by helping set a strategic vision, financial framework and operational infrastructure. Through their guidance and support, we can offer competitive and innovative products and services. We are thankful for their commitment and belief in the credit union experience.

loy•al•ty |´loiəltē | nouna feeling of strong support for someone or something

Our members are much more than customers…they’re co-owners in an association of people—not of dollars—where each member-owner has a vote. Your voice makes a difference at Kohler Credit Union and fulfilling your financial dreams and goals is our priority. We understand that we are here to help improve the quality of life for our members.

Our member-owners can rely on Kohler Credit Union for all facets of life...from a young couple looking to purchase their first home, to a family looking for a bigger home; from a child opening their first savings account, to a retiree needing investment services; from a small business just starting out, to an established firm looking to expand.

“The staff is always friendly and very accommodating. It’s nice to go to a financial institution that is professional and wants your business. Keep up the good work!”

— Jean

“Debbie and the Kohler Credit Union staff have provided my family with the utmost respect and service during my injury situation. The care and willingness to make any adjustments until this all passes has been great. Thank you.”

— George

“You’re the best financial institution I’ve ever dealt with…so enjoyable to deal with local people. Everyone I’ve dealt with is friendly and helpful—from the drive-thru to the tellers, receptionists, loan personnel, and those I’ve dealt with on the phone. Thank you for the excellent service!”

— Karen

“This institution is the greatest one I have ever had the pleasure of working with. Always courteous and helpful! Thank you Taylor Branch. I’ll remain a lifelong member.”

— Roger

“All of your employees have been very friendly and courteous. I am glad I switched my business account to your credit union.”

— Ken

Our Member-Owners...

ded•i•ca•tion | dedi´kāSHən | noundevoting time and energy to something that really matters

One of the keys to Kohler Credit Union’s success is our team of exemplary employees who work diligently to help others. They understand and support the credit union’s vision and embrace the values of the organization. Serving our members, and serving them well, is our number one priority. Creating positive experiences, whether visiting in person, by phone, or online…that’s how our employees set us apart.

phil•an•throp•ic | filən´THräpik | nounhaving or showing a concern for the welfare of others

Not only is Kohler Credit Union deeply rooted in the philosophy of “people helping people,” we empower our employees to reach out—both as individuals and as a corporate culture—to assist and support causes and organizations that are most meaningful to them. Because of this, you’ll feel a true sense of volunteerism at Kohler Credit Union. Collectively, our employees have proudly volunteered 3,494 hours in 2013. The following page shows a listing of organizations that were supported by the help of our staff.

Our Employees and Community...

Adell Sportsman ClubAlzheimer’s AssociationAmerican Cancer SocietyAppalachia Service ProjectBethany Lutheran Church - KohlerBethany Lutheran Church - ManitowocBig Brothers & Big Sisters - Sheboygan Co. Big Brothers & Big Sisters - Manitowoc Co.Blood CenterBoy Scout Troop 817Boys & Girls Club - Sheboygan Co.Cascade Fire DepartmentCascade First RespondersCascade Recreation DepartmentCedarburg Chamber of CommerceCedarburg/Grafton RotaryCentral High SchoolChildren’s Miracle NetworkCoastal ConnectionsConcordia GesangvereinCountry Kids BenefitCurrent - Green Bay Chamber of CommerceDivine Savior SchoolDucktona 500Eastern Shores Chapter of Credit UnionsElk’s Lodge #299Feed My Starving ChildrenFirst Reformed Church - OostburgFirst Reformed Church - Sheboygan FallsGoodstockGrace Lutheran ChurchGrafton Area Soccer ClubGrafton Blues FestivalGrafton Chamber of CommerceHabitat for Humanity - Ozaukee Co.Habitat for Humanity - Sheboygan Co.Hmong Mutual Assistance AssociationJunior Achievement Kiwanis Club of Greater SheboyganKohler Elementary School

Kohler High School Lake Country AcademyLakeland CollegeLakeshore Community Action ProgramLakeshore Technical CollegeLakeshore Weekend for KidsLove BowlsLutheran High SchoolMaking Spirits Bright Manitowoc Humane SocietyMarch of DimesMead Public LibraryMeals on Wheels Meisfelds Lakeshore WeekendMequon United SoccerMoney SmartMS WalkOur Lady of the Lakes ChurchPancreatic Cancer Action NetworkParkview Elementary School PlymouthPartners for Community DevelopmentPentecostals of Sheboygan CountyPine HavenPlymouth AFS ChapterPlymouth Chamber of CommercePlymouth Fine Arts Booster ClubPlymouth Football Booster ClubPlymouth Optimist ClubPlymouth PYAAPlymouth Safety PatrolPort Washington/Saukville School DistrictProject Angel HugsRAM WrestlingRandom Lake Athletic AssociationRandom Lake Chamber of CommerceRandom Lake High School Booster ClubReedsburg Chamber of Commerce Concert in the ParkRelay for Life

Salvation Army Saukville Chamber of CommerceSheboygan Area School DistrictSheboygan Area Youth Soccer AssociationSheboygan County Chamber of CommerceSheboygan County Chamber Leadership CommitteeSheboygan County FairSheboygan County Head StartSheboygan County Shelter CareSheboygan County United SoccerSheboygan JayceesSheboygan Liar’s ClubSheboygan North High SchoolSheboygan North High School AthleticsSheboygan Optimist ClubSheboygan Symphony Orchestra and Chorus St. Dominic ParishSt. John’s Church - KohlerSt. Mark Lutheran Church - Green BaySt. Paul Lutheran Church - Sheboygan FallsSt. Peter and Paul Parish - KielStars and Stripes Honor FlightStrawberry FestivalThe Gathering PlaceToys for TotsTour of America’s Dairyland Bike RaceTrinity Lutheran SchoolTurnPoint Pentecostal ChurchUnited WayUnited Way Planning and Allocation CommitteeWine and Harvest FestivalWings and WheelsWomen in ManagementYouth Apprentice Program

Our Employees and Community... (Continued)

qual•i•ty |´kwälətē | nouna high level of value or excellence

At Kohler Credit Union, we like to treat every day as an opportunity to help more members achieve their financial goals...and we’re dedicated to finding the right solution. Influenced by the high expectations of our members, Kohler Credit Union strives to provide innovative and quality products and services that make it convenient for our members to manage their finances. Our staff has expertise in all areas of the financial industry, from everyday banking needs to a multi-faceted financial future. We like to believe the combination of our staff, member service and products can help make dreams a closer reality, no matter how small or large.

ATM’sauto loans benefits plus®

business accountsbusiness loans “Call KCU”checking accounts christmas clubconstruction loansconsumer education • classroom presentations • fresh start programcredit cards • rewards programdebit cards • rewards programdebt consolidation loansdebt protectiondiscount tickets

estatementsgolden shares clubgreat rate guaranteeguaranteed asset protectionhealth savings accountshome equity line of credithome equity loansIRA’skwik cash loans legal servicelive chatlot loansmechanical breakdown protection members financial services • annuities • investments • life insurancemobile ATMmobile banking • downloadable app • text banking • mobile banking browsermoney marketsmoney orders mortgages notary online account accessonline bill pay overdraft protectionpopmoney® protection plusRV loans safe deposit boxes share accounts share certificatessignature loansstamps teller checks

membership

new mortgages(value shown in millions)

active online users active bill pay users

checking accounts

new auto loans(value shown in millions)

34,240

$30,938

10,939 4,746

18,577

2011

2011

2011 2011

2011

20112012

2012

2012 2012

2012

20122013

2013

2013 2013

2013

2013

35,357

$27,531

11,927 5,320

19,640

36,250

$40,801

12,804 5,847

20,751

$41,715

$44,325

$42,931

Our Products and Services...

Our Financials...

LIABILITIES AND MEMBERS’ EQUITY

Liabilities

Members’ Share and Savings AccountsAccrued Expenses and Other LiabilitiesTotal Liabilities

Members’ EquityRegular ReservesUndivided EarningsAccumulated Other Comprehensive LossAcquired EquityTotal Members’ Equity

Total Liabilities and Members’ Equity

243,086,284

1,687,895244,774,179

4,449,57119,803,616

(548,077)85,261

23,790,371

268,564,550

236,409,095

1,610,398238,019,493

4,449,57117,777,633

(1,277,733)85,261

21,034,732

259,054,225

$

$

NON-INTEREST INCOMEService Charges and FeesGain on Sale of AssetsOther Non-Interest Income Total Non-Interest Income

NON-INTEREST EXPENSEGeneral and Administrative Employee Compensation and Benefits Office Occupancy and Operations Share Insurance Premium Other Operating ExpensesLoss on Impairment of Foreclosed AssetsLoss on Sale of Assets Total Non-Interest Expense

NET INCOME

3,207,62373,570

2,341,3195,622,512

5,863,2714,144,937

197,0231,486,162

--

11,691,393

2,025,983

3,642,026-

2,029,5335,671,559

5,801,4344,011,867

227,6031,881,466

17,48543,388

11,983,243

1,177,684$

ASSETS

Cash and Cash EquivalentsDeposits in Other Financial InstitutionsOther InvestmentsLoans Held-for-SaleLoans, NetAccrued Interest ReceivableForeclosed AssetsPremises and Equipment, NetNCUSIF DepositOther Assets

Total Assets

34,428,12313,869,000

5,449,9772,587,093

183,105,449699,887594,842

10,769,0612,395,8265,154,967

259,054,225

29,696,0149,537,0005,516,6501,069,958

199,830,973651,121148,200

10,911,5642,462,7868,740,284

268,564,550

$

$

2013 2012

Statements of Financial ConditionDecember 31, 2013 and 2012

INTEREST INCOME

LoansInterest Bearing Deposits Total Interest Income

INTEREST EXPENSEMembers’ Share and Savings Accounts

Net Interest Income

PROVISION FOR LOAN LOSSES Net Interest Income After Provision for Loan Losses

9,092,650442,894

9,535,544

901,676

8,633,868

1,144,500

7,489,368

8,605,216448,109

9,053,325

478,228

8,575,097

480,233

8,094,864

$

2013 2012

Statements of IncomeDecember 31, 2013 and 2012

Community

We are dedicated to enriching the commmunities we serve.

Members

We embrace the credit union cooperative spirit by delivering a broad range of superior and affordable financial services that meet the needs of our diverse membership.

Employees

We strive to become the employer of choice by encouraging individual initiative, promoting professional growth, and providing opportunities to make a real difference.

Integrity

We aspire to do business with integrity by practicing open and honest communication and by treating people with dignity and respect.

Mission

Building RelationshipsStrengthening CommunitiesFulfilling Dreams

Our Values and Mission...

We look forward to delivering the credit union experience and world-class service to a new community in 2014! Kohler Credit Union will open its Mequon Branch doors at the end of the year.

The goal behind the design of the new Mequon branch is to replicate the signature look and feel of Kohler Credit Union’s branded image while also keeping in mind the distinctive Mequon community landscape. With a non-traditional lobby and teller area, the open and inviting atmosphere will contribute to a memorable experience for all who visit. We look forward to meeting our new neighbors!

Mequon Branch...

Kohler Credit Union Senior Managers:

Anthony J. KlockowPresident / Chief Executive Officer

John EhmannSr. Vice President / Chief Financial Officer

Ken SackmannSr. Vice President / Chief Lending Officer

Phil ZastrowVice President - Business & Community Development

Sue VandermeuseVice President - Internal Audit & Compliance

Melissa DoebertDirector of Human Resources

Laura GabrielseDirector of Marketing

Mark HuehnsDirector of Information Systems & Technology

Andy KittelsonDirector of Business Services

Phone Numbers

920.459.2595 - Local 888.528.2595 - Toll Free 262.268.7240 - Saukville 262.375.2675 - Grafton

Websites

www.kohlercu.com www.bunnyslipperservices.com www.iwantacarloan.com

Branch Locations

850 Woodlake Road (Corporate Office) Kohler, WI 53044

831 S. Taylor Drive Sheboygan, WI 53081

905 S. Taylor Drive Sheboygan, WI 53081

724 Madison Avenue Howards Grove, WI 53083

2303 Eastern Avenue Plymouth, WI 53073

840 E. Green Bay Avenue Saukville, WI 53080

2550 Washington Street Grafton, WI 53024

Corporate Information...