Annual Report - 30 June 2021

Annual

Report

2021

Logan Community Financial Services Limited

Community Bank

Beenleigh, Browns Plains, Loganholme

and Springwood

ABN 88 101 148 430

Contents

Chair's report	2
Bendigo and Adelaide Bank report	3
Directors' report	4
Auditor's independence declaration	12
Financial statements	13
Notes to the financial statements	17
Directors' declaration	37
Independent audit report	38
NSX report	43

Annual Report Logan Community Financial Services Limited 1

Chair's report

For year ending 30 June 2021

I prefaced this year in speaking to our team by saying that there should be "optimism for our business, tempered with caution". We have been there for one another throughout the tumult of the unpredictable backdrop we currently live in.

As a company, we

still confront the challenges of this period by stepping up, protecting our people and placing a focus on the elements of the business that we can control. We keep the doors open in the face of difficulties that we have all become far too familiar with, and we continue to provide service to our community far in excess of what our industry peers do. I remind those that know, and enlighten those that don't, that the relationship our customers enjoy with the Bendigo Bank network is one not found with other names in our banking landscape. It is something we should all we proud of together, and please join me in sharing this with your family, friends, acquaintances and even business contacts and clients. This relationship that I speak of is far more than the simple act of "banking with Bendigo". It is entrusting us with stewardship of taking this association and turning it into meaningful impact at a real grassroots level.

The margins in our industry, and I have spoken on this in years prior, continue to be at historically low levels. This places great emphasis on us being vigilant on operations both in branch and within our respective community. It is not without some considerable pride that we look at our business and state that we have shown great resilience in being able to produce the financial results that we have this year. Our profit

of $344,354 this year is brought about through a combination of existing and new business, working in counterpoint to that which we lose through general retirement of loans that we are seeing in this economic environment, along with the fact that we have worked hard to manage our expenses even against the general inflationary pressures that still remain. I give this background to you all in order that you visualise our path forward as one that will reflect future rewards based on these tough days of the present.

What does all this mean to your Community Bank company?

It means that we have grown the book past the

$500 million mark only to see some attrition in a rapidly selling property market, and overall maintain a healthy outlook as we project ourselves into the year, and years ahead. It has seen us keep close scrutiny on the community investments that we have been involved in. Our major sponsorship with Logan Basketball is a testament to the value of great relationships, and we thank them as much for their support as they often thank us for what we contribute; may we both continue to prosper in this regard. We placed further funds aside in the Community Enterprise Foundation™ in the amount of $75,000 this past year, in order that we are well placed to react to great need in time when it

is appropriate.

As we have always done, we support a range of groups and organisations across our local area and broader region. We continue to do so with your help as our supporters, shareholders and customers as together we help change lives, and save lives, simply by banking with us (profit-for-purpose). As a network, home loans are building skate and sports parks, hospital wings and classrooms. Personal loans, business banking and credit cards are funding ambulances, mental health initiatives and disabled and aged care services.

Much of what we report here simply starts by you choosing to be part of this journey, and on that note I am compelled to remind you not to forget the importance of your local branch and its team. Under the leadership of Trudy Hill, our team is to be commended, and you could start this by walking through the door in your local branch when time allows, and have that "local conversation" about what more we can assist you with. If you want to keep it local, then you need to support it local.

Jason Luckhardt

Chair

Logan Community Financial Service Ltd

2 Annual Report Logan Community Financial Services Limited

Bendigo and Adelaide Bank report

For year ending 30 June 2021

On behalf of Bendigo and Adelaide Bank, thank you! As a shareholder of your local Community Bank company, you are playing an important role in supporting your community.

It has been a tumultuous year for every community across Australia, and across the world. For our business, recognition that banking is an essential service has meant that we've kept the doors open, albeit with conditions that none of us could ever imagine having to work with.

Face masks, perspex screens, signed documents to cross state borders, checking in customers with QR codes and ensuring hand sanitiser stations are filled aren't what you would expect as a bank employee.

Then there's the fact that while communities have been, and continue to go in and out of lockdown, digital and online banking has become the norm.

So, what does that mean for Bendigo Bank and the Community Bank that you are invested in both as a shareholder, and a customer?

What we're seeing is that your Community Bank is still as important, if not more so, than when you first invested as a shareholder. If the pandemic has taught us anything, it has taught us the importance

of place, of our local community, our local economy, our community-based organisations, the importance of social connection and the importance of your local Community Enterprise - your Community Bank in providing, leadership, support, and assistance in these difficult times.

As we continue to adapt to this rapidly changing world one thing that continues to be important to us all is supporting each another and our strong sense of community.

Your continued support as a shareholder is essential to the success of your local community. Thank you for continuing to back your Community Bank company and your community.

Collin Brady

Head of Community Development

Annual Report Logan Community Financial Services Limited 3

Directors' report

For the financial year ended 30 June 2021

The directors present their report together with the financial statements of the company for the financial year ended 30 June 2021.

Directors

The directors of the company who held office during the financial year and to the date of this report are:

Jason Paul Luckhardt

Non-executive director

Occupation: National Franchise Manager

Qualifications, experience and expertise: Licensed Real Estate Agent. Licensed Auctioneer. Diploma of Business (Marketing). Member REIQ. Member of Australian Institute of Company Directors. REIQ Commercial & Industrial Committee Board Member, Member of Griffith University (Logan Campus) Development Advisory Board.

Special responsibilities: Board Chair, Member of Governance, Audit & Human Resources Committee.

Interest in shares: 5,250 ordinary shares

Brett Blair Raguse

Non-executive director

Occupation: Company Director - Strategem P/L & MiCasa Realty Holdings Pty Ltd

Qualifications, experience and expertise: BA AdvocT (Hons); Cert IV Real Estate Practice; JP Qualified; Former Member of Parliament of Australia; Chair of Federal Parliamentary Standing Committee on Parliamentary Privilege and Members Interests; Former President of two Chambers of Commerce; Past President and Executive Member of multiple community organisations; Former State and Federal Government Ministerial Adviser; Business Adviser, Teacher; Lecturer.

Special responsibilities: Company Secretary and Member of Governance, Audit & Human Resources Committee

Interest in shares: 13,300 ordinary shares

Robert Leslie Herriott

Non-executive director

Occupation: Retired

Qualifications, experience and expertise: Retired from 30+ years in the financial services & commercial banking sector. During the last 20 years involved in various management positions within Metway and Suncorp Commercial Banking including past Director of Suncorp Subsidiary "Medical Commercial Finance" MCF. Rotarian for 15 + years Rotary Club of Logan, including 2 years as President also holding various other board positions including Treasurer, International Services and Vocational Services.

Special responsibilities: Chair Governance, Audit & Human Resources and Member of Marketing and Community Projects Committee.

Interest in shares: 3,250 ordinary shares

4 Annual Report Logan Community Financial Services Limited