WIXLIB

2 0 1 6 I M PAC T R E P O R T

WELCOME TO THE SUNRISE BANKS’2 0 1 6 I M PAC T R E P O R TOur mission at Sunrise Banks is to be:The most innovative bank empowering the underserved to achieve.With this mission in mind, I’m often asked what itmeans to innovate in the banking industry.For us, it’s not just something we say; it’s part ofhow we do business. We continue to evaluate andimprove upon our internal innovation process –aptly named “The Dream Accelerator”—becausethat’s what we aim to do – grow the dreams of ourcommunity and its residents. This process allowsus to cultivate and nurture new initiatives.The results of this process continue to grow thisyear with innovative products and programsincluding our Open Door Grants, New Markets TaxCredit lending, TrueConnect, and North4Good.At the same time, we continue our 30 year historyof serving diverse and underserved communitiesof Minneapolis and Saint Paul, and continue tooffer products and services that not only meetcustomer needs, but also create meaningfulimpact in our community.Together, we are strengthening the community;together we are multiplying our impact.David ReilingSunrise Banks CEO

The most innovative bank empowering the underserved to achieve.WHO WE ARE2 0 1 6 S U N R I S E I M PAC T R E P O R TEMPLOYEE DEMOGRAPHICSENVIRONMENTOUR BRANCHES662%21.5%32%FEMALEMINORITYL I V I N G I N LO WA N D - M O D E R AT E - I N C O M ECOMMUNITIESSUNNY AWARD WINNERRe t a i l B r a n ch Loca t i on sFour (66.7%) are located in low- and moderate-income census tracts.All Sunrise Banks locations areaccessible by public transportation.Al AlexanderEach year, Sunrise hosts the Sunny Awards to recognize an employee who most exhibitsthe Sunrise 10X Values – Creating a Caring Culture of Achievement.Over 49,000 square feet or 63% ofcompany facilities are LEED certified.

A F F I L I AT I O N SB CORP SCORE 143Sunrise Banks continues to be a Certified B Corp ! B Corps use thepower of business to solve social and environmental problems.As a B Corp, Sunrise continues to meet rigorous standards of socialand environmental performance, accountability, and transparency. Sunrise’s score is well above the median score for ordinary businessesof 51 points and above the median score for B Corps of 97 points. In 2016, Sunrise scored in the top 10% of all Certified B Corps for overall socialand environmental impact and was named to the Best for the World honoree list. Today, there are over 2,000 Certified B Corps across 50 countries and 130 industries.CDFI(COMMUNITY DEVELOPMENT FINANCIAL INSTITUTION)ONLY CDFI BANK IN MINNESOTA One of 124 CDFI Banks NationallyCDFIs are mission-driven financial institutions dedicated to community development and provide financialproducts and services to meet the needs of economically disadvantaged individuals within underservedcommunities. Sunrise Banks is a member of the Opportunity Finance Network, the leading national networkof CDFIs. Members offer responsible financial products and services in all types of communities across theUnited States. Sunrise is also a member of the Community Development Banker’s Association, the nationaltrade association of community development bankers. CDBA is the voice and champion of banks with amission of serving low-and moderate-income communities.Over 96 million of loans (60% of all loans) originated in our CDFI Investment Area.Sunrise continues to be a member of the Global Alliancefor Banking on Values (GABV). GABV is a network of theworld’s leading sustainable banks that use finance todeliver sustainable development for underserved people,communities, and the environment.PUBLIC BENEFIT CORPORATIONBenefit corporations have a corporate purpose to create a material positive impacton society and the environment, have expanded the fiduciary duty of their directorsto include consideration of stakeholder interests, and are required to report on theiroverall social and environmental performance.University Financial Corp, GBC, the holding company for Sunrise Banks N.A., is a legally-incorporatedbenefit corporation in the state of Minnesota. A benefit corporation is a corporation that has voluntarilymet the highest standards of corporate purpose, accountability, and transparency.GABV fundamental pillars of sustainable banking:2 0 1 6 S U N R I S E I M PAC T R E P O R T

MISSION-FOCUSED PRODUCTS2 0 1 6 S U N R I S E I M PAC T R E P O R TOVERALL LOAN PORTFOLIOAS OF 12/31/16APPROXIMATELY 12 MILLIONAMERICANS USE PAYDAY LOANS ANNUALLYSpending on average 520 in interest in fees to repeatedly borrow an average of 375 in credit.*2014 Pew Charitable Trust*SMALL BUSINESSESTrueConnect is a lower-cost, responsibly-structured loan designedto be an alternative to expensive payday loans. 145.6 millionOTHER BUSINESS/REAL ESTATE 301 millionECONOMIC DEVELOPMENT 50 millionOver 132 millionis designated to theCOMMUNITY SERVICES 28.8 millionIMPACT DEPOSIT FUNDThe Impact Deposit Fund (IDF) allows any deposit accountto be used for positive change in our community. IDF fundsare leveraged to make loans that benefit our community,such as affordable housing development, community services,economic development, and small business lending.CONSTRUCTION 22.9 millionAFFORDABLE HOUSING 10.5 SSGROCERYEDUCATIONRELIGIOUS INSTITUTIONS 2.6 million 3.6 million 5 million 5.6 million 6.4 million 7.5 million 8.9 million

MISSION-FOCUSED PRODUCTS2 0 1 6 S U N R I S E I M PAC T R E P O R TCREDIT BUILDERNEW MARKET TAX CREDITSSunrise Banks received a 70 million New Markets Tax Creditallocation award from the 2015-2016 award round.In 2016, 215 new Credit Builderloans were opened, with anaverage loan size of 767.Sunrise offers a Credit Builder Program, a combinationloan and savings program that may help participantsestablish a good payment history, which is animportant step to building a better credit score.The purpose of the New Markets Tax Credit (NMTC) Program is to spur newor increased investments into low-income communities.Sunrise has fully deployedits 2014 NMTC allocation of 38 millionHighlighted project:800 W BroadwayAwarded Novogradac’sQLICI of the Year(Metro Category)MORTGAGEPROJECT SUMMARY:Sunrise provided financing for Sherman Associates’ 800 W Broadway project in one of the most distressedareas of Minneapolis. The project is transforming a vacant, blighted urban building into a mixed-usedfacility which will not only create jobs, but also provide critical services to a community comprised of 85%minority residents and with a 52.5% poverty rate.The space will be rehabilitated into office and retail space and will house a Workforce Center, MinneapolisPublic Schools, NorthPoint Health, and retail spaces. The overall mission of the project is to increase thecommunity’s access to employment, education, and health care.Sunrise believes that homeownership should be an option for all families in Minnesota.And that is why we’ve created a variety of mortgage programs in 2016 to help homebuyers.Sunrise helped 12 families purchasetheir first home in 2016.Open Door Credits are available to qualifyinghomebuyers, which provide closing costassistance. In 2016, Sunrise provided over 30,000 in Open Door Credits.

G I V I N G B AC K2 0 1 6 S U N R I S E I M PAC T R E P O R TSUNRISE BANKS GIVES A MINIMUM OF2% NET INCOME PER YEAR THROUGHCORPORATE DONATIONS ANDSPONSORSHIPSPAY-IT FORWARDANNUAL CAMPAIGNSunrise Banks continued its annualPay-it-Forward campaign, whereeach employee is given 25 togive back to an individual, family,or group in need.Sunrise staff volunteered8,100 hours in 2016Approximately 40 hours per employee.EMPLOYEE DRIVESThrough Sunrise employee drivesin 2016, employees donated over4,000 food items to Second HarvestHeartland, over 2,900 food items toGroveland Emergency Food Shelf,over 300 back-to-school items toTesfa International School, andover 100 warm clothing items to theWilder Foundation.PERK UP THE GIVINGSunrise Banks’ Como Avenue branchhas a coffee bar in the lobby andall sales from the coffee bar aredonated to a neighborhood nonprofitorganization each month. In 2016,this resulted in 6,218 in donations.FRASER PARTNERSHIP/PLAY THERAPYSunrise partnered with the nonprofitorganization Fraser, who is Minnesota’slargest and most experienced providerof autism services.Sunrise employees created over180 bags of playdough to be usedto support children’ in Fraser’stherapy programs.SUNRISE CHARITABLEGIVING WEEKDuring the bank’s annual CharitableGiving Week, employees gaveapproximately 16,500 to supportnonprofit organizations.

G I V I N G B AC K2 0 1 6 S U N R I S E I M PAC T R E P O R TSUNRISE’S NEW INITIATIVENorth4Good North4Good is a new type of volunteer program aimed at helpingindividuals and other businesses make connections with nonprofitsfrom around the Twin Cities. This isn’t your typical volunteer program;we are people using volunteerism as a force for change.OVER-THE-MOONGIVINGSunrise sponsored a speed volunteeractivity at TedX Minneapolis andparticipants created over 200 bagsof “moon sand”, another sensory toyused in Fraser’s programming.Through our first North4Good initiative, over 50 volunteersof all ages designed and wrote 886 holiday cards for theHoliday Mail for Heroes project with the American Red Cross.The North4Good website will launch in early 2017, featuringevent stories, non-profits, and more volunteer opportunities.BEDRACE FOR BRIDGING20 Sunrise employees participatedin the Bedrace for Bridging event, inwhich employees raced down BuckHill on mattresses and raised fundsfor Bridging.YOUTHLINK VIDEOSunrise Banks partnered with thenonprofit organization YouthLink totell their story with an impactful video.SOCIAL MEDIA CONTESTSunrise held its second annual socialmedia contest, donating 5,000for three nonprofit organizations:Avenues for Homeless Youth,YouthFarm, and Cookie Cart. Theorganizations each received afinancial donation and also receivedsignificant exposure via social mediaincluding Facebook and Twitter.PLAYWORKS KICKBALLTOURNAMENTKIDS HOLIDAY PARTY30 Sunrise employees participatedin the Playworks Kickballtournament, which raised fundsfor the nonprofit Playworks.Sunrise Banks Arcade locationhosted a Kids Holiday Party, whereover 60 children were able to pickout and wrap gifts for their siblings.

G I V I N G B AC K - W E LC O M E H O M E2 0 1 6 S U N R I S E I M PAC T R E P O R TIN 2016, SUNRISE EMBARKED ON A JOURNEYTO “WELCOME HOME” A LOCAL FAMILYin partnership with Twin Cities Habitat for Humanity10750WEEKSVOLUNTEERSCollected over 77,000IN DONATIONS FROM PARTNERS CUSTOMERS FAMILY & FRIENDSSunrise contributed 42,000 for the build.

AC C O M P L I S H M E N T SSUNRISE PRESIDENTNICHOL BECKSTRAND– Honored as 2016 Outstanding Women in Banking– Named to Smartest People in Payments List2 0 1 6 S U N R I S E I M PAC T R E P O R TSUNRISE CEO DAVID REILING– Top Thought Leader by Trust Across America– 2016 Most Admired CEO– Honored at 2016 Progress MN AwardsGOLD WINNER2016 AMCP MARCOM AWARDSVideo titled “From Homeless to Hopeful”about local nonprofit YouthLinkAll Sunrise Banks locations areaccessible by public transportation.HONORABLE MENTION2016 PR Daily Corporate Social Responsibility Awardsfor 2015 Impact Report