KBR Heritage Federal Credit Union

Statement of Changes in Retained Equity December 31, 2019 Balance January 1, 2019 Year to Date Net Income Transfers to Statutory Reserve Balance December 31, 2019 Undivided Earnings $9,301,938 660,389 -0- $9,962,327 Statement of Cash Flows December 31, 2019 Increase or (Decrease) in Cash and Cash Equivalents Cash Flows from Operating Activities: Net income Adjustments for Non-Cash Operating Activities: Depreciation and Amortization of Fixed Assets and Leasehold Improvements Net Net Increase in Accrued Interest on Loans and Investments Net Increase in Accounts Receivable and Other Non-Cash Assets Net Increase in Drafts Payable Net Decrease in Dividends Payable Net Decrease in Other Liabilities Net Cash Provided by Operating Activities Cash Flows from Investment Activities: Net Increase in Loans Net Decrease in Investments Net Increase in Fixed Assets and Leasehold Improvements Net Decrease in NCUA Share Insurance Capitalization Deposit Net Increase in Cash Surrender Value of Credit Union Owned Life Insurance Policies Net Cash Provided by Investment Activities Cash Flows from Financing Activities: Net Decrease in Shares Net Increase in Share Drafts Net Decrease in Certificates Net Cash Used by Financing Activities Net Decrease in Cash and Cash Equivalents Cash or Cash Equivalents at Beginning of Year Cash or Cash Equivalents at End of Year Statutory Reserve $2,248,621 -0- $2,248,621 $660,389 9,641 (31,584) (205,938) 53,370 (1) (40,405) $445,472 $(1,167,322) 3,474,431 (20,691) 63,788 (67,259) $2,282,947 $(3,944,963) 1,111,459 (52,881) $(2,886,385) $(157,966) $11,527,521 $11,369,555 December 31, 2019 Assets: Loans, Net of Allowance for Loan Losses of $340,513 Cash and Cash Equivalents Investments Accrued Interest on Loans and Investments Furniture, Equipment & Leasehold Improvements Less: Accumulated Depreciation and Amortization NCUA Share Insurance Capitalization Deposit Cash Surrender Value of Credit Union Owned Life Insurance Policies Other Assets Total Assets Liabilities: Dividends Payable Drafts Payable Other Accounts Payable and Accrued Liabilities Total Liabilities Equity: Shares Share Drafts Certificates Statutory Reserve Undivided Earnings Total Equity Total Liabilities and Equity S TAT E M E N T O F F I N A N C I A L C O N D I T I O N $25,192,278 11,369,555 41,692,131 228,771 609,609 (588,304) 679,798 2,888,210 241,712 $82,313,760 $29 246,358 100,082 $346,469 $55,361,024 13,848,766 546,553 2,248,621 9,962,327 $81,967,291 $82,313,760 Statement of Income Year Ended December 31, 2019 Income from Loans Income from Credit Cards Income from Real Estate Loans Income from Investments Other Income Total Operating Revenue Compensation and Benefits Educational and Promotional Loan Servicing Provision for Loan Losses Professional Services Office Operating Expense Other Operating Expense Total Operating Expense Increase in Cash Surrender Value of Credit Union Owned Life Insurance Policies Net Income Before Dividends Dividends Net Income $774,867 191,667 193,543 1,185,105 143,015 $2,488,197 $651,211 50,541 103,356 219,300 357,520 155,364 140,245 $1,677,537 $67,260 $877,920 217,531 $660,389

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