How to Become a Successful Manager

BUILDING

ON

vision:

Your partner of choice

for financial success

mission:

Working together to exceed

members’ expectations

CONTENTS

Chairman and President’s Report ...Pages 1-3

Supervisory Committee Report ...Page 4

Financial Information ...Pages 5-6

Board of Directors ...Page 7

Management Team ...Page 7

Langley Branch Locations ...Page 8

General Information ...Page 8

2014 ANNUAL REPORT

vision:

Your partner of choice

for financial success

mission:

Working together to exceed

members’ expectations

C H A I R M A N A N D P R E S I D E N T ’ S R E P O R T

2014 YEAR IN REVIEW

As the title of our annual report suggests, this was a year that we were Building On Success that had been achieved in the past. We are pleased to report that 2014 was another positive year at Langley for our members and the Credit Union. Products and services were expanded, pricing improved, convenience and access to your Credit Union was enhanced, and service levels were strengthened.

Our Vision has not wavered as we continue to be Your Partner of Choice for Financial Success. Our Mission is singularly focused on Working Together to Exceed Members’ Expectations while we deliver The Langley Experience in every member interaction … Make It Easy, Make A Difference and Do The Right Thing.

FINANCIAL SUCCESS

Langley’s financials continue to be a source of strength for the organization despite the low rate environment. We finished the year with $1.93 billion in assets which was right on plan, grew deposits to $1.53 billion, surpassed the billion

dollar mark in loans for the first time in our history by increasing loans 37% to $1.28 billion. This achievement resulted in a loan to share ratio that rose to 84% by year end, meaning that we have effectively loaned out 84 cents of every dollar on deposit at Langley.

PRODUCT AND SERVICE GROWTH

Our dedicated team of Langley professionals proudly served over 209,000 members, as over

25,000 new members joined the credit union during the year. Our team was and will always be committed to listening carefully to your needs in order to provide solutions that met or exceeded your expectations, while exploring ways to save you money on the products and services that you use every day. As a result of those interactions, we saw steady increases in members utilizing more of our products and services, including a 9% increase in Checking Accounts and

16% growth in the number of members who used Online Banking.

In 2014, Langley Financial Services

(LFS) experienced another successful year. We helped more members plan for their financial future by helping them with their tax, investment and insurance needs.

LENDING SUCCESS

When it comes to loans, members responded in record numbers again this year as we continued to build on our success, telling members and non-members that … We’re Langley, and We’re Lending. Langley now has a network of 235 auto dealer relationships resulting in $749.3 million in member auto loan balances at year end. That translated into over 23,000 auto loans to our members in 2014, a remarkable achievement. We originated over $60 million in mortgages in 2014, helping more than 480 members in the process. We also originated over $60 million in home equity loans and lines of credit, assisting over 1,120 members in the process.

Member Business Loan balances increased by $15 million as we focused on increasing lending

“

Langley’s financials continue to be a source of strength for the organization

“

When it comes to loans, members responded in record numbers again this year

LINDA Member since 2007 BOB Member since 2001 AMANDA Member since 2014 ABUDU Member since 2010 Page 1

at Langley. We took the proactive step to transition all of our credit cards to VISA to deploy the latest EMV security chip technology that helps protect members from fraud. In an effort to make it easier for members to make their loan payments, we also introduced our new Payment Center which allowed online payments to be made electronically from other financial institutions.

Continuing our commitment to member education, our employees conducted a series of well-received Online Banking seminars that helped members learn the basics of home banking including the use of Online Bill Payment. We also hosted the College Bound series for high school juniors and seniors and their parents along with a long-term care seminar that explored the financial issues members should be aware of when faced with decisions about care for their loved ones. Based on the positive feedback received during the year on all of these sessions, we plan on offering these seminars and some new educational topics in 2015.

NEW BRANCHES AND ACCESS TO LANGLEY

In January, we made the difficult decision to close the Coast Guard branch as the volume of activity no longer could support the need for a full-service branch. In July, the Stoneybrook branch moved into

a new freestanding building which features two drive-thru lanes, two ATMs and offices for five member

service staff. The Warwick branch was relocated in mid-September. This new storefront branch features a full-service ATM and six financial service offices. Feedback on this relocated branch has been positive, and members have told us that they find the new location to be more conveniently located with ample parking and easier access.

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to businesses in Hampton Roads. This strategy allowed us to maintain our #1 position in Small Business Administration (SBA) lending among credit unions in the greater Hampton Roads region. In June, Langley was awarded a top Credit Union award by the Richmond District Office of the Small Business Administration for our lending efforts to small businesses, a proud accomplishment. Our initiatives to educate business owners about government guaranteed financing and our partnership with small businesses in our community has now firmly established Langley as one of the most active SBA lenders among credit unions in Virginia.

Langley’s members have embraced our three variable-rate VISA credit cards through a series of money-saving promotions including low rate balance transfers, valuable rewards, and cash back opportunities. We saw balances increase by $24 million, a 30% jump, resulting in total credit card balances of $104 million at the end of the year.

SUCCESSFUL PROJECTS AND MILESTONES

In 2014, we completed many exciting organizational projects designed to benefit members and make it easier to do business with Langley. We wanted to make it easier to join the Credit Union, make it simpler to add deposit and loan products, and improve our overall lineup to be more competitively priced.

In early 2014, we rolled out our newly enhanced Active Rewards relationship program which included more benefits for members who had deeper relationships with the Credit Union. In the fall, we implemented an Online Account Opening system for new members that made the joining process faster and easier. We continued our staff training designed to save members’ money and add to their relationships

“

We completed many

exciting organizational projects designed to benefit members

“

We proudly opened the doors of our third Southside location in early March 2015

GERSON Member since 2004 MIKE Member since 1976 REINETTE Member since 2012 CHRISTINE Member since 1982 Page 2

After a long search, a new branch location was chosen in the Virginia Beach area and is conveniently located in the Marketplace at Hilltop shopping center at First Colonial and Laskin Roads. Construction began in October and we proudly opened the doors of our third Southside location in early March 2015. The Contact Center call volume increased significantly in 2014; as a result we have hired additional staff to ensure we maintain our service level. The Contact Center was relocated to City Center in Newport News. This new location allows for future expansion and

growth for this critical member communication channel.

CHARITABLE GIVING/

LANGLEY FOR FAMILIES FOUNDATION

Langley remains deeply committed to

continuing our long legacy of giving back to the communities where we do business. In 2014, Langley donated more than $350,000 back to the community in the form of donations to non-profit organizations in Hampton Roads. Another proud contribution was made through volunteerism, as the entire senior management team and many other members of

the management team began serving on local non-profit boards.

In addition, we established the Langley for Families Foundation, a charitable 501c(3) organization. The foundation was introduced to the community with a Visit With Santa event during Hollydazzle in Newport News. We launched the Foundation’s new website, www.langleyforfamilies.org and look forward to holding many new fundraising events in 2015.

PLANS FOR 2015

Our 2015 plans are in motion and we have many exciting initiatives underway to improve the ease of doing business with us. During the year ahead, we will introduce a new Online Banking system, improving the online and mobile banking experience. We will also reissue our debit cards to include the new EMV chip to enhance security and fraud protection. We also plan to implement an online IRA Information Center to better meet your needs. We’re proud to say that your Credit Union has never been stronger and we are excited about delivering even more convenience for our members in 2015. On behalf of the entire Langley team, we are honored to serve you.

3 |

William E. Griffith Jr.

Chairman, Board of Directors Thomas K. RyanPresident/CEO

“

Langley donated more than $350,000 back to the community

VIRGIE Member since 1980 JARRED Member since 2014 LARRY Member since 1978 EVELYN Member since 1975 Page 3

S U P E R V I S O R Y C O M M I T T E E R E P O R T

S

upervisory Committee members are appointed by the Langley Federal Credit Union Board of Directors. The Supervisory Committee’s tasks include ensuring the security of your Credit Union, protecting your assets, and maintaining compliance with the governing directives established by the National Credit Union Administration (NCUA). The Board of Directors and Management maintain a system of internal controls designed to ensure that assets are safeguarded against loss or unauthorized use. Management reviews daily reports to ensure all transactions are recorded properly and in a timely manner in the accounting system, and also maintains an intricate computer system which provides state-of-the-art services related to money management.

Under the direction of the Supervisory Committee, the accounting firm of

CliftonLarsonAllen, LLP, performed an audit of the 2014 accounting records in accordance with generally accepted auditing standards. As added assurance that your assets are safeguarded, the NCUA conducted its annual examination and provided a report reflecting outstanding leadership and performance. Based on issued reports, and other examinations, Langley Federal Credit Union continues to provide a financially sound and operationally effective credit union.

During 2014, Langley grew significantly in loans, membership and checking accounts and greatly improved its performance relating to Loan-to-Share Ratio and Asset Quality. For example, during 2014 member loans grew by 37% to in excess of $1.2 billion and membership grew 12.1% to over 209,000. At the same

time, Langley remains well funded with a net worth ratio in excess of 12%. This growth is attributed to an aggressive Strategic Plan and the enthusiastic attitude of the Langley staff. Langley is performing very well.

SUPERVISORY COMMITTEE Paul V. Koehly

James M. Michael Jr. James R. Motley John H. Crumpler

Supervisory Committee Chairman

Page 4

Langley and its Supervisory Committee urge members to be diligent regarding the care and protection of debit and credit cards. Protect them from use by unauthorized personnel and review your accounts and statements often to detect and report unauthorized use. If you note questionable transactions, contact Langley’s Member Contact Center immediately. This action may prevent losses to you and the credit union.

Langley recognizes its responsibility to conduct business in accordance with the highest ethical standards. This responsibility is reflected in a comprehensive code of business conduct that, among other things, addresses potentially conflicting outside interests of employees and Board members and provides guidance as to the proper conduct of activities. Ongoing communications and review programs are designed to help ensure compliance with these standards.

The Supervisory Committee and Chief Executive Officer provide oversight to an Internal Audit Department, which reviews and monitors the credit union operations to ensure they comply with the applicable regulations, laws and credit union policies. We commend the Langley Board of Directors and the diligent staff for a job well done. It has been our pleasure to serve fellow member-owners of Langley Federal Credit Union.

Checking  $258 Savings  $312 Money Market  Accounts  $599 IRA Certificates  and  Certificates  $325 Money  Market  IRA  $35

39%

21%

21%

17%

2%

$1.529 Billion

Graph Amounts in Millions

Fixed Real Estate $182 Adjustable Real Estate $132 Personal/Other $65 Auto $749 Credit Cards $104 Business & Participation $53

59%

8%

10%

5%

14%

4%

$1.285 Billion Graph Amounts in Millions

F I N A N C I A L I N F O R M AT I O N

Total

Deposits:

$

1.529

Billion

Total Loans

Outstanding:

$

1.285

Billion

Page 5

$500 $600 $700 $800 $900 $1000 $1100 $1200 $1300 $1400 2010 2011 2012 2013 2014 $619 _$598.3 $713.4 $956 $1285 Total Loans (Millions)

$1.2 $1.25 $1.3 $1.35 $1.4 $1.45 $1.5 $1.55 2010 2011 2012 2013 2014 $1.387 $1.432 $1.492 $1.506 $1.529 Total Deposits (Billions) $1.5 $1.55 $1.6 $1.65 $1.7 $1.75 $1.8 $1.85 $1.9 $1.95 2010 2011 2012 2013 2014 $1.590 $1.652 $1.724 $1.840 $1.931 Total Assets (Billions)

Total Assets

(Billions)

Total Deposits

(Billions)

Total Loans

(Millions)

F I N A N C I A L I N F O R M AT I O N

Page 6 $500 $600 $700 $800 $900 $1000 $1100 $1200 $1300 $1400 2010 2011 2012 2013 2014 $619 _$598.3 $713.4 $956 $1285

Total Loans (Millions)

$1.5 $1.55 $1.6 $1.65 $1.7 $1.75 $1.8 $1.85 $1.9 $1.95 $2. 2010 2011 2012 2013 2014 $1.590 $1.652 $1.724 $1.840 $1.931

Total Assets (Billions)

$1.2 $1.25 $1.3 $1.35 $1.4 $1.45 $1.5 $1.55 $1.6 2010 2011 2012 2013 2014 $1.387 $1.432 $1.492 $1.506 $1.529

Total Deposits (Billions)

$1.5 $1.55 $1.6 $1.65 $1.7 $1.75 $1.8 $1.85 $1.9 $1.95 $2. 2010 2011 2012 2013 2014 $1.590 $1.652 $1.724 $1.840 $1.931

Total Assets (Billions)

$1.5 $1.55 $1.6 $1.65 $1.7 $1.75 $1.8 $1.85 $1.9 $1.95 $2.0 2010 2011 2012 2013 2014 $1.590 $1.652 $1.724 $1.840 $1.931

B O A R D O F D I R E C T O R S

(Standing, l-r) RICHARD A. BIEGE, Assistant Secretary; PETER A. MORLEY (CMSgt. USAF - Ret.), Director; BRUCE R. HOOGSTRATEN, Secretary; R. LESTER WINGROVE JR., Vice Chairman

(Sitting, l-r) EDWARD G. HENIFIN, Director; JOYCE M. WRIGHT, Director; WILLIAM E. GRIFFITH JR., Chairman Director Emeritus: GEORGE R. HAYES (not shown)

M A N A G E M E N T T E A M

TOM RYAN

President/Chief Executive Officer CURTIS BAKER

Senior Vice President/Lending GREG MANWEILER

Senior Vice President/Chief Financial Officer VICTOR PULIAFICO

Senior Vice President/Langley Financial Services DEB VOLLMER

Senior Vice President/Branch Services TAMMY GELLES

Vice President/Mortgage Lending

INGO HUEMER

Vice President/Risk Management MARILYN KUHN

Vice President/Human Resources MICHAEL McNABB

Vice President/Consumer Lending NATASHA MERZ

Vice President/Commercial Lending RANDY SALTZMAN

Vice President/Marketing FRANK WILLIAMS

Vice President/Chief Information Officer

G E N E R A L I N F O R M AT I O N

ABERDEEN 409 Aberdeen Road Hampton CHESAPEAKE SQUARE 2600 Taylor Road Chesapeake COLISEUM 1055 W. Mercury Boulevard Hampton DENBIGH 12644 Jefferson Avenue Newport News EAGLE HARBOR 13478 Carrollton Blvd. Unit A Carrollton HAYES 3140 George Washington Memorial Highway Hayes HILLTOP

741 First Colonial Road Suite 101

Virginia Beach

LANGLEY AIR FORCE BASE 157 Sweeney Boulevard Bldg. 467 Hampton NASA 2 Lindberg Way Bldg. 1310, LaRC Hampton OYSTER POINT 11742 Jefferson Avenue Newport News POQUOSON

415 Wythe Creek Road Poquoson STONEYBROOK 15631 Warwick Boulevard Newport News WARDS CORNER 7420 Granby Street Norfolk WARWICK 10844 Warwick Boulevard Suite 11, Newport News WILLIAMSBURG CITY 1222 Richmond Road Unit 16 Williamsburg WILLIAMSBURG NEW TOWN 5220 Monticello Avenue Williamsburg WILLOW OAKS 225 Fox Hill Road Suite D5, Hampton YORKTOWN 4822 George Washington Memorial Highway Grafton MAILING ADDRESS Langley Federal Credit Union

P.O. Box 120128 Newport News, VA 23612 ON THE WEB langleyfcu.org facebook.com/langleyfcu twitter.com/langleyfcu linkedin/company/langleyfcu CONTACT CENTER 757-827-5328 or 800-826-7490 TELEPHONE BANKING 757-827-9434 or 800-233-2819 PERSONAL LOANS 757-827-3279 or 800-588-3279 MORTGAGE LENDING 757-825-7108 or 800-826-7490 FAX: 757-873-3946 COMMERCIAL LENDING 757-224-4777 or 800-826-7490

Federally insured by the NCUA

L A N G L E Y B R A N C H L O C AT I O N S

New Stoneybrook Branch

New Warwick Branch New Hilltop Branch