Mission Statement. Vision Statement

Mission Statement

California Credit Union serves the educational community, providing our members with sound financial resources and convenient, personalized services.

Vision Statement

Be the premier education credit union, providing our members with outstanding services and sound financial resources.

Report of the Chairman of the Board

and the President & CEO

California Credit Union enjoyed robust growth across many aspects of our institution as we celebrated our 80th year of serving the education community. CCU was able to recognize substantial recovery in 2013 with the intensity of the past several years’ economic hardships waning. As the economy gradually improved, so did consumer confidence and employment opportunities across the southland. Consumer spending and the market for credit cards, mortgages and auto loans grew to meet pent-up demand. These factors provided the foundation on which the Credit Union was able to build such a positive year. $7.9 million net income was contributed to our capital reserves while a strong net worth ratio of 10.5% was maintained.

2013 proved to be one of our strongest years on record for loan production, with over $434 million being produced. CCU’s ability to accept and service a high volume of loans was greatly improved by the implementation of Meridian Link. This sophisticated software allows members to apply for loans and complete the entire loan process from home. Meridian Link was also an essential tool for branch staff, helping them assess and serve each member’s loan needs better. In particular, our Real Estate Lending department financed 736 loans for a total of over $230 million. Such growth means CCU was able to help more members buy a home or make their existing mortgage more affordable.

Other enhancements were made in 2013, paving the way for improved member services today and in the future. Mobile Apps were introduced and Online Banking upgraded, giving us the ability to add more digital banking services down the road so that the Credit Union can better adapt to the ever-changing e-banking marketplace. An email marketing platform was also rolled out, providing CCU an instant and cost-effective means of communicating with members.

The past year saw the launch of the Pay Card – a joint effort with LAUSD payroll services to provide District employees with an alternative to paper paychecks. The Pay Card is a reusable debit card that is automatically loaded with an employee’s pay each pay period. The employee can then use the Pay Card similarly to a debit card – swiping the card for groceries, withdrawing cash at an ATM or making purchases online. Over 1000 LAUSD employees have already taken advantage of this fantastic partnership and enrolled in the Pay Card.

As in years past, CCU was proud to support the wider education community by participating in various community events. The “Bite of Reality” financial education program was put on at Glendale’s Hoover High School in partnership with the California and Nevada Credit Union League. This three day program teaches young high school students about budgeting and managing a checking account. CCU continued to help students and teachers achieve their goals through our 8th annual Student Scholarship and our spring and fall Teacher Grant program. In addition, we again sponsored the LAUSD Academic Decathlon and Superintendent’s Meeting, Los Angeles Office of Education’s Teacher of the Year awards as well as many other events throughout the year.

Even though the economy has not fully recovered from the Great Recession, it is on its way with continued growth forecasted for 2014, with housing constructions, consumer spending and auto sales expected to strengthen further. California Credit Union is poised to capitalize on this positive outlook for another successful year ahead. It is a pleasure and a privilege to serve our members and we thank you for your continued trust and support.

Sincerely,

Walton Greene Ronald L. McDaniel

Chairman, Board of Directors President and CEO

Supervisory Committee Report

It is the primary responsibility of the Supervisory Committee to work with federal and state agencies, as well as your Credit Union’s internal and external auditors, to review and report on the financial position of the Credit Union.

Based upon the Supervisory Committee’s on-going oversight activities, and upon review of the results of the 2013 financial audits and confirmation of member accounts, it is my pleasure to report that California Credit Union continues to be a financially and operationally sound institution.

With positive exam results from our regulators and a positive audit from our independent accounting firm, I can say without a doubt, in addition to its laudable operating performance, your Credit Union remains committed to ethical business practices, honesty, and financial integrity that is evident at every level.

E. Ted Fujimoto

Financial Statements

STATEMENTS OF FINANCIAL CONDITION

For the Years ended December 31 (In Thousands) 2013 2012

Assets

Cash and cash equivalents $87,980 $186,912

Investments

Securities available for sale, at fair value 300,393 210,801

Other 6,288 6,134

Loans held for sale 4,029 5,872

Loans receivable, net of allowance for loan losses 698,773 587,069

Accrued interest receivable 2,938 2,543

Property and equipment, net of accumulated depreciation 39,336 40,047

National Credit Union Share Insurance Fund deposit 9,469 9,539

Other assets 24,766 19,812

Total Assets $1,173,972 $1,068,729

Liabilities And Members’ Equity Liabilities:

Members’ shares $978,613 $955,862

Borrowed Funds 75,000 —

Accrued and other liabilities 17,400 24,315

Total Liabilities 1,071,013 980,177

Commitments and contingent liabilities — —

Members’ equity, substantially restricted:

Regular reserve 16,459 16,459

Undivided earnings 106,816 98,933

Accumulated other comprehensive loss (20,316) (26,840)

Total members’ equity 102,959 88,552

Total Liabilities and Members’ Equity $1,173,972 $1,068,729

STATEMENTS OF INCOME

For the Years Ended December 31 (In Thousands) 2013 2012

Interest Income:

Cash balances $323 $523

Loans receivable 31,671 33,057

Investments 2,363 1,160

Total Interest Income 34,357 34,740

Interest Expense:

Members’ shares 2,098 2,767

Borrowed funds 13 —

Total Interest Expense 2,111 2,767

Net Interest Income: 32,246 31,973

(Reversal) Provision for Loan Losses: (6,335) 9,778

Net Interest Income After Provision for Loan Losses: 38,581 22,195

Non-Interest Income:

Member fees and service charges 8,052 8,318

Service income and other 6,410 5,279

Net gain on sale of loans 2,358 1,606

Net gain on sale of investments 132 355

Net real estate rental income 1,313 1,250

Total Non-Interest Income 18,265 16,808

Non-Interest Expense:

Compensation and benefits 24,996 24,020

Office occupancy 5,586 4,763

NCUSIF corporate credit union stabilization fund assessment 758 906

Other 17,623 15,684

Total Non-Interest Expense 48,963 45,373

Net Income (Loss) $7,883 $(6,370)

Not NCUA Insured Not Credit Union Guaranteed May Lose Value

* Financial Planning and Investment Services only: Securities offered through LPL Financial, member FINRA/SIPC. Insurance products offered through LPL Financial or its licensed affiliates. California Credit Union and CCU Investment Services are not registered broker/dealer(s) and are not affiliates of LPL Financial.

Checking And Savings

Checking Accounts Savings Accounts Money Market Accounts

Individual Retirement Accounts (IRAs) Share Certificates

Consumer Loans

Auto, RV, Boat or Personal Watercraft Loans Visa® _{Credit Cards}

Visa® _{Traditional/Rewards}

School Rewards Personal/Signature Loans

Overdraft Lines of Credit (Share Protection) Share Secured Loans

Real Estate Loans

Mortgages

Adjustable Rate Mortgages (ARMs) Hybrid ARMs

Standard ARMs Interest Only

Fixed Rate and Refinancing Home Equity Loans

Home Equity Lines of Credit Interest Rate Protection

Services

Free Online Banking Free Online Bill Pay Mobile and Text Banking ATM & Debit Cards Overdraft Protection TouchTone Teller Direct Deposit Payroll Deduction EZ-Connect

New and Used Auto Buying Services Insurance (Home, Auto, AD&D) School Employee Program

Financial Planning and Investment Services*

Business Banking

Basic Business Checking Premium Business Checking Business Analysis Checking Money Market Accounts Savings Accounts Savings Certificates Business Lending Real Estate Working Capital Lines of Credit

Corporate Credit Cards Telephone Transfers Wire Transfers Online Banking

Cash Management Services Remote Deposit Image Capture

Products & Services

Branch Locations

Covina Branch

800 S. Barranca Ave. (Barranca & Workman) Covina, CA 91723

Downey Branch (LACOE Campus)

9300 East Imperial Hwy. (Imperial & Ardis)

Downey, CA 90242

Glendale Branch

701 North Brand Blvd. (Brand & 134 Fwy.) Glendale, CA 91203

Inglewood Branch

3550 West Century Blvd. (Century & Yukon)

Inglewood, CA 90303

North Hollywood Branch

11331 Camarillo St. (Camarillo & Tujunga)

North Hollywood, CA 91602

North Hills Branch

9026 Woodley Ave. (Woodley & Nordhoff) North Hills, CA 91343

Pasadena Branch

95 South Lake Ave. (Lake & Green) Pasadena, CA 91101

Rosenell Terrace Branch

420 North Rosenell Terrace (Temple & Alvarado) Los Angeles, CA 90026

Valencia Branch

23630 Valencia Blvd., (Valencia & Magic Mountain) Santa Clarita, CA 91355

Torrance Branch

22733 Hawthorne Blvd. (Hawthorne & 227th) Torrance, CA 90505

West Los Angeles Branch

2215 Westwood Blvd. (Olympic & Westwood) Los Angeles, CA 90064

Board of Directors Mr. Walton Greene Chairman Ms. Surviva Mendoza Vice-Chairman Mr. Victor Hanson Secretary/Treasurer Mr. James Figueroa Director Mr. Mario Florio Director Dr. Frances Nakano Director Mr. Fredric Nigro Director Supervisory Committee Mr. E. Ted Fujimoto Chairman Ms. Marcia Wade Secretary Ms. Pamela Fees Committee Member Mr. Guilbert Hentschke Committee Member Mr. Lawrence Serot Committee Member

The Honorable Scott J. Svonkin

Committee Member

Mr. Micah Ali

Committee Member

Top row, left to right: Fredric Nigro, Victor Hanson, Frances Nakano, and James Figueroa Seated: Surviva Mendoza and Walton Greene (Not pictured: Mario Florio)

Top row, left to right: Pamela Fees, Guilbert Hentschke, and Lawrence Serot Seated: E. Ted Fujimoto and Marcia Wade (Not pictured: Scott Svonkin, Micah Ali)

Senior Management Team

Ronald L. McDaniel

President/Chief Executive Officer

John Bretthauer

EVP/Chief Operating Officer

Patrick Carey

EVP/General Counsel/Chief Administrative Officer

Mark Lovewell

EVP/Chief Financial Officer

Ron Stratman