2017 Annual Report. For The... MOMENTS. You Share. FUTURES DREAMS. You Secure. You Achieve.

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1 2017 Annual Report For The... MOMENTS You Secure. You Achieve. You Share. FUTURES DREAMS

2 2017 HIGHLIGHTS New Branches. We successfully opened 2 new branches with innovative Live Tellers. These simplified and renovated branches were retrofitted to grow with industry trends that will support our members banking futures. Hyatt Regency Member Event Growing Stronger. Nuvision added 2 new branch locations: Mission Hills, CA and Cheyenne, WY. Future plans are on the horizon to find opportunities of growth in other states to further new member growth and financial opportunities for our membership. Added Advantage. Our loyalty program has saved members thousands of dollars on auto loans, mortgages and access to better rates and lower fees. This loyalty program gives members an opportunity to enter into unique giveaways. Carrie Patrick was able to experience a once in a lifetime trip to the Superbowl through our Added Advantage loyalty program. Added Advantage Superbowl Winners Building Community. Nuvision has always proudly honored and supported our military. This commitment manifested in 2017 in many ways from giving away gas and serving military families breakfast on Veterans Day to providing the financial means for homeless veterans to secure long-term shelter. We also partnered with ten local high schools to create pathways to student success through our Essay Challenge, financial literacy workshops, and inspirational presentations by career role models and mentors. 01 ANNUAL REPORT 2017

3 Message From STEVE VOGEDING Chairman of the Board And ROGER BALLARD Chief Executive Officer Steve Vogeding Roger Ballard 2017 MEMBER MESSAGE As we look back on the year 2017, we would like to extend our appreciation to our over 92,000 loyal members who have contributed to our many successes. Because of you, our valued member, we remain committed to growth and improving our services and products to help you with the life you build. At Nuvision, we believe people want somebody they can talk to when making important financial decisions... someone they trust, someone they respect and someone who listens to their needs. Relating to our members comes naturally because after all, we are members ourselves. Nuvision team-members take the time to have conversations, provide trustworthy advice, and offer competitive rates. Nuvision is unique in that we value conversations with our members... conversations that matter to help you with the life you build. Nuvision s passion and commitment to enhance members lives will achieve best in class member experiences. In 2017 we introduced some important enhancements to improve member experiences such as the ability to make a loan payment on home banking from external accounts, improved Debit and ATM PIN processes with immediate access to a personalized PIN by phone. Debit card dispute/fraud claims are now expedited so that members are no longer required to sign forms for domestic dispute. Faxing and/or branch visits are no longer necessary. We are happy to announce that members may now choose any 2 months (that are not consecutive) to skip a qualifying loan payment. Expanding Member Services marked the launch of our innovative Added Advantage Loyalty program, which rewards participating Nuvision members with substantial financial benefits. Added Advantage members receive rate increases on certificates of deposit, lower auto loan rates and cash-back incentives on auto and mortgage loans. This year Nuvision conducted several in-depth educational seminars to help members prepare for buying, selling or investing in the current housing market. These seminars were such a success, we plan to host more in Orange and LA counties in 2018 so stay tuned. American FCU Merger & Unified People s FCU Merger. We welcomed two credit unions into the Nuvision family in 2017! We have our new Mission Hills Branch and we were legally merged with Unified People s from Cheyenne, Wyoming in December. Also, in early 2018 we merged with First Cheyenne Federal Credit Union, in Cheyenne, Wyoming. We are very excited about future possibilities to further expand out of state. Broadening Our Base. We are planning on growing more memberships and financial assets through merging with other credit unions in the coming year. The opportunities are great in our western states. We are strategically analyzing more areas of operation, bringing all of our members optimum security and convenience. Expanding Brand Identity. We introduced our new brand publicly through creative and catchy radio ads, launching an updated and friendlier website, and hosted memorable and relevant events to help build financial knowledge in the areas of real estate and investments. ANNUAL REPORT

4 2017 SUCCESSES LOAN GROWTH Loans grew to over $1.2 billion in 2017 ASSET GROWTH Assets grew to more than $1.5 billion in 2017 Mater Dei High School Essay Challenge Workshop TECHNOLOGY ENHANCEMENT Enhanced mobile loan platform & new account applications Make loan payments through external accounts Members can now choose any two non-consecutive months out of the year to skip a qualified loan payment Economic Outlook Member Event IMPROVED PROCESSES Toll free number allows members to personalize a PIN vs receiving generic PIN through mail Members can now immediately dispute a domestic debit card claim for an improved, faster resolution 03 ANNUAL REPORT 2017

5 Report From JIM MEYER Treasurer And LARRY BERTINO Supervisory Chairman Jim Meyer In Memoriam Lawrence Eugene Bertino TREASURER S REPORT It is my pleasure to present to the membership Nuvision Credit Union s Treasurer s report. Financial highlights as of December 31, 2017: Assets grew to more than $1.5 billion Total loans increased over 13.4% to $1.2 billion Member shares increased almost 6.3% to $1.3 billion We will continue finding opportunities to invest resources in the products and services needed by you, our members. In addition, as the market leads us, we will invest in innovative solutions to serve you best. Our purpose is to create the best banking relationships with our members based on shared values and true collaboration. Larry Bertino Lawrence Eugene Bertino passed away at his home on April 26, 2018 at the age of 86. He worked for Boeing Aircraft and graduated from UCLA and attended Loyola Law School. For a time he practiced law then eventually returned to Boeing Aircraft until his retirement. Mr. Bertino volunteered for the credit union for 15 years, most recently serving as Chairman of the Supervisory Committee. SUPERVISORY REPORT The Supervisory Committee evaluates the soundness of Nuvision Credit Union s operations and activities, ensuring that management implements sound internal controls and maintains practices and procedures that adhere to standard accounting principles. Supervisory Committee s responsibilities include: Protection of members funds and interests Safeguarding of assets Compliant in regulations, policies and procedures Reliability of financial records The Committee meets regularly to review and discuss internal controls as well as auditing matters. RSM US LLP, Nuvision s independent auditor performs an annual financial audit and issues certified financial statements as they relate to the overall financial condition of Nuvision Credit Union. We are pleased to share our conclusion that Nuvision Credit Union has adequate financial controls and is financially sound. ANNUAL REPORT

6 Statements of FINANCIAL 12/31/2017 Assets 12/31/2016 Cash and Cash Equivalents... $ 56,221,364 $ 81,148,003 Investments: Condition Available for sale ,962, ,167,758 Trading... 18,584,850 15,804,862 Other... 10,355,280 8,393,400 Loans, net... 1,198,033,021 1,055,079,875 Loans held for sale... 1,570, ,000 Accrued interest receivable... 3,965,822 3,662,222 Premises and equipment, net... 13,782,398 11,869,644 National Credit Union Share Insurance Fund (NCUSIF) deposit... 12,720,084 11,669,103 Goodwill... 3,765,728 3,765,728 Other Assets... 24,892,831 19,593,463 Total Assets... $ 1,561,854,034 $ 1,456,939,058 Liabilities and Members Equity Liabilities: Members shares... $ 1,325,994,291 $ 1,247,300,981 Borrowed funds... 31,000,000 31,000,000 Accrued expenses and other liabilities... 19,452,939 15,518,350 Total Liabilities... 1,376,447,230 1,293,819,331 Commitments and contingencies Members Equity: Retained Earnings ,549, ,879,189 Fair Value of Capital Acquired through Mergers... 53,060,033 41,268,235 Accumulated other comprehensive loss... (4,202,829) (4,027,697) Total Members Equity ,406, ,119,727 Essay Challenge Participant & Mentor Total Liabilities and Members Equity... $ 1,561,854,034 $ 1,456,939, ANNUAL REPORT 2017

7 Statements of INCOME Interest income: 12/31/ /31/2016 Loans... $ 51,629,282 $ 46,357,712 Investments and cash equivalents... 7,469,927 5,800,599 Total Interest Income... 59,099,209 52,158,311 Interest expense: Members shares... 7,209,774 6,206,743 Borrowed funds , ,333 Total Interest Expense... 8,193,725 6,652,076 Net Interest Income... 50,905,484 45,506,235 Veterans Day Volunteer Cadet Provision for loan losses... 6,865,633 4,828,721 Net Interest Income After Provision for Loan Losses... 44,039,851 40,677,514 Noninterest income: Nonsufficient funds fees... 2,958,004 3,131,002 Interchange income... 3,268,871 3,062,339 Service charges and other fees... 2,898,632 2,714,809 Gain on sale of loans... 1,924,172 2,108,365 Other... 2,564,472 1,674,464 Total Noninterest Income... 13,614,151 12,690,979 Noninterest expense: Salaries and benefits... 23,603,567 23,307,191 Operations... 20,667,912 17,549,608 Occupancy... 2,712,113 2,603,370 Total Noninterest Expense... 46,983,592 43,460,169 Net Income... $ 10,670,410 $ 9,908,324 ANNUAL REPORT

8 In The COMMUNITY NUVISION S ESSAY CHALLENGE Thomas Williams, former USC Trojan and NFL player and Domique Pacheco, Financial Professional Nuvision s 2nd Annual Essay Challenge Scholarship program launched in early This program, developed specifically for high school students, helps equip our youth for the financial ups and downs of the future and invites their individuality and one-on-one input and participation. Our workshops present real world experiences shared by our team of mentors who come from various professions such as Northrop Grumman Engineering, Boeing Executives, an Olympic Gold Medalist, and retired NFL players ESPN Interview Excerpt... I partnered with Nuvision because they provided me with a platform to reach out to the kids to teach them the importance of financial literacy. - Terrell Thomas, former USC Trojan and NFL player The Essay Challenge 1st Place winner, Chantel Hung wrote, Some of my favorite suggestions that I learned (at the Nuvision workshop) include the use of budgeting apps, starting an emergency fund, and setting up automatic transfers to a savings account. In addition to helping me build wealth, these three actions help simplify my life. Nuvision believes the financial life you build begins in our youth and that is why it is our continued goal to encourage financial literacy. NUVISION GIVES GAS AWAY AND HOSTS BREAKFAST FOR THE MILITARY Nuvision was recognized across media channels for their community reach to our military and was featured in these among other publications:...nuvision Credit Union will proudly donate $5,000 to Veterans First OC, and will provide breakfast and gas on Veterans Day for those who served and continue to serve our country......nuvision Credit Union will be providing free gas from 8:00 a.m. to 10:00 a.m. along with coffee and an Americana- style breakfast from 8:00 a.m. to 11:00 a.m. to veterans and active military to show its appreciation to those who have dedicated themselves to protecting our country....ex-police officer and USO performer Valentine from KBIG will make a guest appearance. 07 ANNUAL REPORT

9 NUVISION S 2017 COMMUNITY REACH January Essay Challenge Program Kicks Off February Orange County Varsity Academic Decathlon March Children s Miracle Network Wine Auction April Oxford Academy Business Expo Lakewood High School Mock Interviews Costa Mesa Police Explorers Booster Club Focus on Finance Presentation May California Paralyzed Veterans Association 3rd Annual Adaptive Sports Day Orange County Academic Junior Varsity Decathlon Memorial Day Military Gas Giveaway June Nuvision Beach Clean-Up Day Huntington Beach Council on Aging Annual Golf Tournament July Summer Science Camp Tesoro Youth Summer Program Mock Interviews and Job Fair August Nuvision Backpack Giveaway CHOC Walk October Member Shred Day Huntington Beach High School Career Day McKenna Claire Foundation Play It Forward Golf Tournament Sponsors Miss Huntington Beach Pageant Military Care Day November Veterans Day Military Breakfast and Gas Giveaway Toys For Tots Adopt-a-Family for Thanksgiving at Oak View Elementary December Adopt-a-Family for Christmas at Oak View Elementary Veterans Day Breakfast with radio talk show host Sean Valentine Essay Challenge Student Kick-Off Rally ANNUAL REPORT

10 Steve Vogeding Michael Donohue Jim Meyer Marykay Shelton John Cullum Robert Geraci Ted Humphrey Jim Le Pere Luchus Mack BOARD OF DIRECTORS EXECUTIVE OFFICERS SUPERVISORY COMMITTEE Steve Vogeding... Chairman Michael Donohue... Vice-Chair Jim Meyer... Treasurer Marykay Shelton... Secretary John Cullum... Director Robert Geraci... Director Ted Humphrey... Director Jim Le Pere... Director Luchus Mack... Director Roger Ballard... Chief Executive Officer Barbara Barry... Chief Member Experience Officer Cathy Dominguez... Chief Risk Officer Brian Hershfield... Chief Financial Officer Tamara Ortega... Chief People Development Officer Teri Rapp... Chief Credit Officer Larry Bertino... Chairman Doug Haigh Karen Sudyka Holly Williams Matt Woodruff 09 ANNUAL REPORT 2017

11 EVOLVING NUVISION CREDIT UNION FOR ALL HARD WORKING PEOPLE. Eighty years ago, right here in Orange County, a group of engineers at Douglas Aircraft got together to build something. And just like you d expect, they built it to last. Only this wasn t a plane. This was an idea. An idea to help each other achieve the life we all strive for. An idea built on unbreakable principles like trust, integrity and commitment. Working shoulder to shoulder, they came together to form Nuvision Credit Union to serve the community and provide a better way to bank. Today, Nuvision has grown to include hard working professionals from Southern California Gas Company, Andeavor and hardworking people from all over Southern California. And now, we are taking our first step towards bringing Nuvision s unique brand of Credit Union banking beyond our traditional footprint beginning with Wyoming in This is an exciting new chapter in our evolution but, it is still built on the original idea and tradition of people helping each other build a better life. 10 ANNUAL REPORT

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