Frontwave Briefing | First Quarter 2019

Briefing Frontwave Credit Union Member Newsletter | First Quarter 2019

Not just because of low loan rates. Or low fees. They bank here because we help them get stuff done. We help make things possible. We’re the place to get started, and the place to kick it into high gear. To launch something great, and to pursue big goals. We do it with one hundred percent commitment. And zero percent excuses. This isn’t just empty talk. We have a long and proud track record of doing right by our members. We started back in 1952. Then, we were known as Camp Pendleton Federal Credit Union, and we served the financial needs of Marines, sailors, and civilian employees living in Southern California. Since then, we’ve changed our name a few times, most recently, to Frontwave Credit Union. But the name on our buildings isn’t as important as the focus of our mission. Over nearly 70 years, we’ve evolved from serving military personnel to welcoming over 87,000 members worldwide, with 14 branch locations and international ATM access. Everyone living or working in San Diego, Riverside and San Bernardino counties is now eligible to join. One thing that hasn’t changed — not even a little — is our commitment to the financial success of our members. And their future. We take this responsibility seriously. Because our value, and values, run deep. We fight for our members. Because we’re Frontwave. And we got you.

Dream big. We got you. SM Welcome to our first newsletter as Frontwave Credit Union! You know, the first thing people think when they see a new sign above the door is that you either went out of business or got bought out. We are here to tell you that in our case, neither of these is true. We decided to get real with who we are and what we stand for. We are determined to communicate these values to our members and the communities we serve in a way that reflects who we are and why we’re here. There aren’t many communities like this one. One foot in the Pacific, the other in the desert. Home to the world’s greatest fighting forces — and a community of blue-collar fighters. People working every day for their family, their friends, their community. Working to carve out a better life for themselves in a patch of California that’s more focused on authenticity than image. More substance than show. Our members spend their days working. And their free time playing. They plan. They grow. They fight for what’s important. And when they bank, they bank here.

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Briefing frontwavecu.com

First Quarter 2019

and implement numerous impactful projects – as one team. They performed beautifully – especially when things were going wrong. No panic, no blame, no temper tantrums, no whining… Nope, none of that! Instead, it was, “Let’s figure this out and get it fixed.” And they got it done. Every time! Did you know that we have 52 great folks working in our Member Solution Center that answered over 20,000 phone calls from Members in November? I gotta tell you, that is not an easy job. I mean, let’s face it – if someone’s taking the time to call, they’re doing so because there’s a problem that needs to be fixed, they have a question on one of hundreds of different topics or they are ticked off about something. These folks handle those calls all-day, every-day. Yesterday I was in the Member Solution Center chatting with the folks there and just observing how they are caring for our Members. I was amazed! Of the more than 30 folks I observed, every one of them was dealing with a different topic. One was helping a travelling Member find a nearby shared branch. Another was explaining the services we have available to Members impacted by the government shutdown. And yet another was walking a Member through her first check deposit via our mobile banking application. But what really caught my eye was that, through it all, whether they were taking a loan application, solving a persnickety problem or addressing a Member’s frustration – they were smiling! They genuinely care about our Members and their financial well-being and they absolutely LOVE helping them get stuff done! I was so damn proud I started getting all teary-eyed and had to skedaddle out of there before anyone noticed! We are blessed with over 280 incredible employees who are totally committed to make Frontwave Credit Union the best place you ever banked and help you make your financial dreams come true. Will every effort go as smooth as a baby’s bottom? Probably not. Will we make mistakes? I’m afraid so. Will we make it right? You bet we will! Because we’re Frontwave Credit Union and we got you!

Annual Meeting

Join us Wednesday, March 27, 2019 at 5 pm at Frontwave Headquarters to hear about the state of the credit union from our Board of Directors and to review the annual report. All Frontwave members are invited to attend.

Bill Birnie, President/CEO It’s always interesting… You know, as we meet with friends and colleague’s, maybe over dinner or a cold beer, and reflect on the year past. Whenever I’m asked what kind of year did the credit union have in 2018, I typically respond with something like, “It was OK. You know -same-o, same-o… We did pretty well, I guess”… NOT! Holy smokes! Just look at all that was accomplished in 2018! • Launched a new mortgage servicing platform in January • Opened the Pacific Plaza Branch in May • Launched new Mobile and Online banking platforms in May • Opened the Wildomar Branch in August • Opened the Escondido Branch in November, and… • Launched our new name and brand! Yup! We got a lotta stuff done and almost all of it was without incident or drama. Yea, I said “almost”… As many of you know, we ran into some challenges with our mobile banking platform in November and, despite our best efforts, it took a little longer than we wanted to get all the issues resolved. Again, I offer my deepest apologies for the inconvenience you suffered and I thank you for your patience and understanding. I had the opportunity this past year to watch our team strategize, plan, negotiate, communicate, coordinate, Notes from the CEO

Frontwave Headquarters 1278 Rocky Point Drive Oceanside, CA 92056

Board of Directors Election Eligible Members with a valid email address on file will receive an email with an electronic ballot link on February 22, 2019 . Members may request a paper ballot by calling 952.974.2339 or emailing [email protected] no later than February 25, 2019 . Electronic and paper voting will close on March 22, 2019 . We encourage you to make a difference by casting your vote! Updated Fees & Charges Not to worry, none have been added in 2019, only removed! How do we keep our fees so low? It’s all part of a grand plan. Frontwave Credit Union isn’t a regular business. We’re a member- based cooperative that operates on a not-for-profit basis. Once we cover our overhead, all earnings are funneled back to members in the form of higher savings rates, lower loan costs, and -- yep, that’s right -- reduced fees. The handful of dollars you save here and there adds up to a lot more money in your pocket. To view the most up to date list of fees visit frontwavecu.com/banking-fees

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Local Lowdown

Running for a Cause Frontwave is a proud sponsor and supporter of the Red Nose Run, a holiday dog-friendly 5K & 3K fun run/walk that benefits the Semper Fi Fund and Fresh Start Surgical Gifts. Since 2017, the 27th year, The Red Nose Run has raised over $327,000 for these amazing charities. Frontwave executives put on their red coats and running shoes to participate this year, the 28th annual Red Nose Run! Spirit of Giving In the spirit of Holiday Giving, Frontwave’s employees supported a local foundation; Brother Benno’s by donating food and supplies. The goal of the Brother Benno Foundation is to ensure no one in our area goes hungry, without shelter or clothing, and most importantly, that no one goes without someone to care for him or her. USO BBQ Frontwave leaders had a great time as they proudly served a BBQ lunch to over 600 Marines at the USO San Diego.

Peanut Butter Drive Frontwave’ s Fire Mountain branch led the credit union in a Peanut Butter Drive this October. 376 pounds of peanut butter was donated to the The Jacobs & Cushman San Diego Food Bank in their campaign to scare away hunger for families in North County San Diego this October. Frontwave’ s own Electronic Funds Transfer Department also raised $250 for the Foodbank with Honeydukes, a Harry Potter themed

Candy Store, open to Frontwave Employees on Halloween day. Moonlight Youth Theatre

Frontwave is a proud supporter of the arts in our community. This holiday season our friends with the Moonlight Youth Theatre spread holiday cheer for our members by giving a wonderful performance at Frontwave’s headquarters in Oceanside.

Upcoming Financial Workshops Social Security & Your Retirement Workshop This no-cost, no-obligation 60-minute workshop will answer your Social

Saving to Achieve Your Dreams When we say Dream big, we mean it. Our partners from GreenPath Financial will walk you through the steps you can take to not only set yourself up for financial stability but also how to make your dreams a reality. When: February 19, 2019 @ 5:30 pm Where: Frontwave RDO Branch 1278 Rocky Point Drive Oceanside, CA 92056

Wills & Trusts Workshop We never want to think about it, but we should all be prepared for the inevitable. Let us help you prepare your family for life’s toughest transition. You can do this, and we will be there to help you.

Security questions and discuss routes you can take to help get the most out of your benefits. When: January 22, 2019 @ 5:30 pm Where: Frontwave RDO Branch 1278 Rocky Point Drive Oceanside, CA 92056

When: March 26, 2019 @ 6:00 pm Where: Frontwave Wildomar Branch 36290 Hidden Springs Road Wildomar, CA 92595 For more details and to RSVP visit frontwavecu.com/workshops

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Privacy Notice Terms & Conditions Important Notices

We’ve got over 5,000 branches on our family tree.

As a Frontwave member, you can access your accounts coast to coast at any credit union that’s part of the CO-OP Shared Branch network. 30,000 Fee-Free ATMs That’s more than most of the biggest banks. And it includes selected locations where you shop, like 7-Eleven, Circle K, Costco, Dunkin Donuts, and Rite-Aid. Visit frontwavecu.com/locations or on the locations tab on your Frontwave mobile app to find the fee-free ATM nearest you!

5,000+ Shared Branch Locations Feel right at home when you visit participating credit union branches across all 50 states. It’s a free service for easy access to your money wherever you go. To find the Frontwave or Shared Branch nearest you, visit frontwavecu.com/locations or on the locations tab on your Frontwave mobile app!

Frontwave’s Terms and Conditions Disclosure has important updates. To receive a copy of the Privacy Policy or Terms and Condtions: • Visit us online: frontwavecu.com/disclosures • Request by mail: Frontwave Credit Union Attn: Audit & Compliance Dept. 1278 Rocky Point Drive, Oceanside, CA 92056 • Or request by phone: 800.736.4500

Escondido Branch Now Open.

Now that we’ve finished unpacking and upgrading all our tech, we’re ready to show off our new digs in Escondido. So, next time you’re in the area be sure to stop by. Christina and her crew look forward to showing you all the swanky new ways this branch is set up to serve you. 1645 S. Centre City Parkway, Ste.B Escondido, CA 92025

UPCOMING HOLIDAYS PMCU will be closed in observance of the following holidays this quarter: Independence Day Tuesday, July 4 Labor Day Monday, September 4 Express Line, Internet Banking, Mobile Banking, and ATM service will be available as usual. Frontwave will be closed in observance of the following holidays this quarter: New Year’s Day Tuesday, January 1 Martin Luther King Jr. Day Monday, January 21 President’s Day Monday, February 18 Express Line, Online Banking, Mobile Banking, and ATM service will be available as usual.

CONTACT US Express Line 1-800-829-7676 Member Solution Center 80 .829.76 .631.870 or 800.736.4500 Mon-Fri: 7am – 6pm, Sat: 9am – 4pm l 80 .234.699 80 .CAR.SALES 877.337. 399 Frontwave I vestment Services , .439.6960 Frontwave Insurance Services, LLC .788.0820 760-631-8700 or 1-800-736-4500 Mon-Fri: 7am – 6pm, Sat: 9am – 4pm Autoland 1-800-234-6999 Enterprise Car Sales 1-800-CAR-SALES GreenPath Financial Wellness 1-877-337-3399 Pacific Marine Financial Group Kathy Chesney, 760-439-6960 PMCU Insurance Services, LLC 844-788-0820

STATISTICAL REPORT as of May 31, 2017 Members: 78,933 Assets: $ 776,462,710 Total Shares: $ 656,312,713 Loans Outstanding: $ 512,461,453 November 30, 2018 : 8 , 0 : 828,647,137 : 708,734,302

i : $ 545,908,967

Federally Insured by NCUA Federally Insured by NCUA

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