Mission Statement. Vision Statement

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3 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.

4 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 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 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.

5 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 Chairman, Board of Directors Ronald L. McDaniel 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 Chairman, Supervisory Committee

6 Financial Statements STATEMENTS OF FINANCIAL CONDITION For the Years ended December 31 (In Thousands) Assets Cash and cash equivalents $87,980 $186,912 Investments Securities available for sale, at fair value 300, ,801 Other 6,288 6,134 Loans held for sale 4,029 5,872 Loans receivable, net of allowance for loan losses 698, ,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, ,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, data unaudited, as presented

7 STATEMENTS OF INCOME For the Years Ended December 31 (In Thousands) 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 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 Other 17,623 15,684 Total Non-Interest Expense 48,963 45,373 Net Income (Loss) $7,883 $(6,370) 2013 data unaudited, as presented

8 Products & Services 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 * 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. Not NCUA Insured Not Credit Union Guaranteed May Lose Value

9 Branch Locations Branch Locations Beaudry Branch (LAUSD Headquarters) 333 S. Beaudry Ave., (Beaudry & 3rd) Los Angeles, CA Carson Branch 633 East University Dr. (University & Avalon) Carson, CA Covina Branch 800 S. Barranca Ave. (Barranca & Workman) Covina, CA Downey Branch (LACOE Campus) 9300 East Imperial Hwy. (Imperial & Ardis) Downey, CA Glendale Branch 701 North Brand Blvd. (Brand & 134 Fwy.) Glendale, CA Inglewood Branch 3550 West Century Blvd. (Century & Yukon) Inglewood, CA North Hills Branch 9026 Woodley Ave. (Woodley & Nordhoff) North Hills, CA Pasadena Branch 95 South Lake Ave. (Lake & Green) Pasadena, CA Rosenell Terrace Branch 420 North Rosenell Terrace (Temple & Alvarado) Los Angeles, CA Valencia Branch Valencia Blvd., (Valencia & Magic Mountain) Santa Clarita, CA Torrance Branch Hawthorne Blvd. (Hawthorne & 227th) Torrance, CA West Los Angeles Branch 2215 Westwood Blvd. (Olympic & Westwood) Los Angeles, CA North Hollywood Branch Camarillo St. (Camarillo & Tujunga) North Hollywood, CA 91602

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

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