Member Information Session – March 2014

2. Member Information Session – March 2014

3. Tomo Matesic – Board Chair WELCOME

4. Objectives • To provide members with information on the partnership discussions between Mainstreet and Lambton Financial Credit Unions • To discuss the potential benefits of a combined credit union • Take your questions and receive your feedback

5. Janet Grantham – President and CEO Amalgamation Overview

6. Amalgamation The Boards of Directors of Mainstreet Credit Union and Lambton Financial Credit Union have entered in to an agreement to amalgamate our credit unions as of May 31, 2014

7. Guiding Principles • Merger must create tangible value and benefit to our members • Staff will be our champions and must see the benefits for the members, the credit union and themselves • We will retain our skilled and valued staff • Build a future credit union based on mutual gains – creation not a negotiation

8. Strategic Challenges • Local and global economic environment • Economies of scale - cost of investing in new products and services • Financial margin • Increasing regulatory requirements • Having enough resources to deliver on our promises • New membership • More competition in the marketplace

9. 164 credit unions in 2008 105 credit unions in 2013 6 mergers have already been announced in 2014 Mainstreet is 19th largest in Ontario New Mainstreet will be 15th largest in Ontario Ontario Credit Union System

10. Rationale The merger will create new economies of scale that will drive enhanced profitability and the ability to invest in expanded services that all credit unions require, such as: • data management • banking systems • enhanced products and services • networks • compliance oversight • aligns with our current strategic plan

11. Overview of Lambton Financial • 5 branches – all in the Sarnia area • 60 employees • $210 million in assets • $30 million commercial loan portfolio • $60 million mutual fund portfolio • More liquid than Mainstreet

12. Comparison *.29% before merger costs for Mainstreet

13. Branch Locations

14. Governance • 6 board members from each original credit union will continue on to new board • Tomo Matesic will be Vice-Chair • 3 committees -Audit -Governance -Risk and Human Resources • Governance Review within three years

15. Leadership Janet Grantham President and Chief Executive Officer Bob Ferris Executive Vice President - Strategy & Operations Shawn Bustin Executive Vice President - Sales & Member Service

16. Benefits to Members • Increased lending limits • Access to more branches – 13 versus 8 • Better able to… • Manage the risks in an increasingly competitive and complex market • Provide enhanced levels of specialized expertise by reallocating resources • Deliver more responsive advisory services • Provide greater returns to members and our communities

17. Financial Benefits for Members

18. New Mainstreet Projections

19. Benefits for Staff • No jobs will be lost • No branch closures • Increased opportunities for employees • Minimal change at Senior Management level • Will benefit from what we learned this past year • No banking system conversion

20. Vision The new Mainstreet will… • Have strong relationships with our members • Retain a strong local presence in each of our communities • Be nimble and responsive to local needs • Employ and retain exceptional staff who are committed to investing in our members and our communities

21. Annual General and Special Member Meetings April 28 @ 7:00pm Mount Brydges Community Center

22. For more information or further questions www.cupartnership.ca Questions?

23. Thank you