2017ANNUAL REPORT

Federally insured by NCUA.

exceptional service. Our members’ deposits exceeded $10 billion and we granted $4.3 billion in loans including auto and home as well as credit card purchases. In fact, we provided $13.5 million in credit card cash rebates directly to our members. In addition our members saved, on average, more than $2,000 in closing costs on their home loans.

These results provide a solid foundation for continued expansion and enable the credit union to invest in the communities we serve. We delivered on our commitment to improving the financial well-being of Californians and their diverse communities by providing scholarships for deserving students, donations to food banks, and support for victims of natural disasters. Also, in July, we announced a $1 million contribution over a three year period to reduce homelessness among youth and young adults in Sacramento.

Golden 1 Credit Union continued our growth trajectory in an increasingly competitive market for financial services by staying true to our core values of service excellence, respect, integrity, and financial stability. We place our members at the center of everything that we do, helping hard-working people reach their financial goals through lower loan rates, no to low fees, and competitive returns on savings. In 2017, we continued to invest in people and technology to enhance member service. Our membership grew to 922,000 and assets reached $11.5 billion, which ranks Golden 1 as the sixth largest credit union in the United States. This significant growth, coupled with a robust net capital position of $1.31 billion, underscores our long-term financial strength and stability.

As California’s leading credit union, Golden 1 delivered on our mission of delivering financial solutions with value, convenience, and

The future of Golden 1 Credit Union, our valued membership, and our community is bright. Together, we can accomplish more than any one of us can alone. We are Stronger Together!

Ting Lan SunChair

Craig L. BrownSecretary/Treasurer

Donna A. BlandPresident and Chief Executive Officer

ANNUAL REPORT OFTHE BOARD OF DIRECTORS

ANNUAL REPORT OF THE SUPERVISORY COMMITTEE

One of the core values of Golden 1 Credit Union is financial stability. We strive to ensure that Golden 1 members can rely on our financial strength and security. With this in mind, the Supervisory Committee is responsible for ensuring that Credit Union policies and procedures adequately protect our members’ interests. We are also responsible for providing reasonable assurance that the regulations, policies, and procedures that govern the institution are properly followed and for providing an annual report on the Credit Union’s financial condition and the results of its operations.

The Committee is assisted in carrying out its responsibilities by our Audit Services Department. The Credit Union is also periodically examined by regulatory agencies, such as the California Department of Business Oversight and the National Credit Union Administration.

We retained the services of the independent accounting firm of Moss Adams LLP, Certified Public Accountants, to perform an audit of the Credit Union’s financial statements as of and for the years ended December 31, 2017 and December 31, 2016. In their opinion, the balance sheets and related statements of income present fairly, in all material respects, the financial position and results of operations for Golden 1 Credit Union in conformity with generally accepted accounting principles.

We wish to express our appreciation to the Board of Directors, management, and staff for their continued support.

Respectfully submitted,

Supervisory Committee

L to R, Timothy Bryan/Chair, Carol A. Nelson, Michael Dendorfer, Diana Emanavin, Kevin Chan

2016

$7,327,621,227 35,482,125

(40,832,441) 7,322,270,911

147,749,233 462,093,461

1,512,381,743 542,879,408 397,680,249 73,335,180

158,998,792 $10,617,388,977

$2,073,713,049 5,588,916,665 1,610,606,363 9,273,236,077

2,304,551

120,128,138 9,395,668,766

78,110,584 1,145,755,874

(2,146,247) $10,617,388,977

ASSETSLoans to members

Net deferred loan costsLess allowance for loan losses

CashInterest-bearing deposits and other investments

Investment securities available for saleInvestment securities held to maturity

Payroll deduction/ACH receivableProperty and equipment, net

Other assets

LIABILITIES & EQUITYMembers’ shares:

Regular sharesChecking and money market accounts

Certificates of deposit

Share dividends payableOther liabilities

Members’ equity:Appropriated retained earnings

Unappropriated retained earningsAccumulated other comprehensive loss

2017

$8,121,992,450 39,657,119

(51,313,682) 8,110,335,887

155,135,401 767,141,272

1,485,893,603321,290,387399,459,145 75,111,416

172,393,713 $11,486,760,824

$2,433,688,164 5,904,236,967 1,687,155,644

10,025,080,775

2,611,164159,927,263

10,187,619,202

78,110,584 1,235,612,536

(14,581,498) $11,486,760,824

BALANCESHEETSDECEMBER 31,2017 AND 2016

STATEMENTS OF INCOMEYEARS ENDEDDECEMBER 31,2017 AND 2016

2016

$242,858,278 14,305,549 36,618,284

293,782,111

27,562,104 5,625,688

260,594,319

22,334,535 238,259,784

26,483,089 4,469,346 5,081,719 6,421,775

65,011,139 107,467,068

117,532,497 89,103,469 19,420,837 19,614,033

430,704 8,249,347

254,350,887

$91,375,965

INTEREST INCOMELoans

Interest-bearing deposits and other investmentsInvestment securities

INTEREST EXPENSEDividends on members’ shares

Other interestNet interest income

Provision for loan lossesNet interest income after provision for loan losses

NON-INTEREST INCOMEChecking accounts fee incomeVisa® fee income, net of rebate

Loan fee incomeGain on sale of investments, loans, and other real estate owned

Other revenues

NON-INTEREST EXPENSECompensation and benefits

OperationsData processing

Occupancy(Gain) loss on sale of assets

Other

Net Income

2017

$281,684,200 32,741,476 30,313,619

344,739,295

29,169,192 18,982,024

296,588,079

45,995,056 250,593,023

30,398,865 4,863,134 5,705,254 6,070,432

63,882,869 110,920,554

129,981,977 93,921,324 18,937,279 20,867,936

(2,691)7,951,090

271,656,915

$89,856,662

Our Stronger Together philosophy provides the foundation for our Corporate Giving programs. We believe our success is inextricably linked with improved quality of life in the communities we serve.

In 2017, the credit union contributed more than $945,000 to causes such as scholarship programs, food banks, and help for the homeless. We also provided disaster relief for victims of the devastating California wildfires.

In addition, we announced a $1 million donation over three years to support a center for homeless youth and young adults in downtown Sacramento. The program provides food and shelter along with prevention programs to help youth avoid becoming chronically homeless adults.

Golden 1 employees logged hundreds of volunteer hours in their communities, supporting youth and family initiatives, coordinating and participating in fundraisers, and serving on nonprofit boards.

We also hosted 47 nonprofit organizations at Sacramento Kings games, concerts, and special events in the Community Suite at Golden 1 Center. In all, more than 750 people enjoyed this memorable experience.

Finally, 2017 saw the launch of our Financial Wellness Center, a suite of online tools, learning lab modules, and other resources to educate consumers about personal finance.

Golden 1 is proud to invest in California’s communities, making us all Stronger Together.

COMMUNITY

Golden 1 Credit Union is a caring community partner and leader, giving back to communities and organizations that make a positive impact on the people we serve. We strive to increase educational opportunity, strengthen financial well-being, and make our communities great.

HISTORY BRANCHES

1933Eleven state employees meet in Sacramento as the Board of Directors of the newly formed California State Employees’ Credit Union #1 (CSECU #1).

1934Membership reaches 131.

1950Membership grows to 4,565.

1952 Assets reach $1 million.

1961 CSECU #1 staff move into first permanent office and administrative headquarters in the State Employees building at 1108 O Street.

1977Assets reach $100 million. Name of Credit Union is changed to Golden 1 Credit Union.

1982 Membership grows to more than 100,000. Assets reach $225 million. First seven automated teller machines (ATMs) go into service.

1990Total of 21 branches are open statewide. Assets reach $820 million.

1992Assets reach more than $1 billion. Membership stands at 215,000.

1994Assets grow to almost $1.56 billion. Membership is more than 274,000, and the Credit Union now has 44 branches statewide.

1998Assets reach more than $2.33 billion. Website is launched. The Credit Union now has 50 full-service branches, five non-teller branches, and 210 ATMs.

2000Membership grows to more than 400,000. Assets reach $3.1 billion.

2004Membership grows to more than 600,000. Assets reach $5.4 billion.

2007A total of 74 branches are open statewide. Elected into the Sacramento Metro Chamber of Commerce Business Hall of Fame.

2009 Assets reach more than $7.6 billion. New products debut—Mobile and Text Banking. The Credit Union now has 83 branches. Now able to serve all who live or work in 34 of California’s 58 counties

2011Mobile Deposit is launched, and “No-Envelope” ATMs are introduced. Golden 1 wins several awards for community outreach.

2012Golden 1 launches a new college scholarship program for members and their dependents.

201380th anniversary. Assets reach more than $8 billion. The Credit Union awards $368,000 in grants to support literacy and foster youth. Golden 1 recognized as “Best Bank or Credit Union” in several communities.

2014Golden 1 launches its “Stronger Together” brand campaign. A special, one-time $18 million Member Giveback program is distributed. Membership grows to more than 700,000.

2015Golden 1 expands charter in Southern California to now serve 38 counties. Obtains naming rights to Golden 1 Center. Upgrades every Golden 1 debit and credit card with chip technology.

2016Assets reach more than $10 billion. Membership grows to over 800,000 strong. Golden 1 Center debuts as the most technologically advanced arena in the world.

2017Golden 1 launches the Financial Wellness Center, an online financial education portal designed to improve the financial well-being of people throughout California. Golden 1 receives “Best of” awards in many of our local communities.

8727 El Camino Real ........................ Atascadero

2248 Grass Valley Highway ...................... Auburn

4106 California Avenue ..................... Bakersfield

4005 Manzanita Avenue .................... Carmichael

5901 Sunrise Blvd. ....................... Citrus Heights

239 West 2nd Street ................................. Chico

1030 Shaw Avenue ................................... Clovis

508 Second Street .................................... Davis

4311 Town Center Blvd. .............. El Dorado Hills

8469 Elk Grove Boulevard .................... Elk Grove

8405 Elk Grove Florin Rd. .................... Elk Grove

5050 Laguna Boulevard ....................... Elk Grove

9600 Bruceville Road .......................... Elk Grove

1380 Holiday Lane ................................ Fairfield

1117 East Bidwell Street ......................... Folsom

1860 Prairie City Road ............................ Folsom

5280 N. Jackson Ave. (CSUF) .................. Fresno

6040 N. Figarden Drive ........................... Fresno

2970 E. Nees Avenue .............................. Fresno

111 E. Shaw Avenue ............................... Fresno

8379 Church Street ................................... Gilroy

5676 Calle Real ....................................... Goleta

109 W. Eighth Street ............................. Hanford

339 Preston Avenue .................................... Ione

12120 Industry Boulevard ....................... Jackson

65 Lincoln Boulevard .............................. Lincoln

320 W. Fourth Street ........................ Los Angeles

1934 Howard Road ................................ Madera

2001 McHenry Avenue .......................... Modesto

1150 Imola Avenue ................................... Napa

40044 Highway 49 .............................. Oakhurst

111 Grand Ave. (Room 300) .................. Oakland

1495 Clay Street ................................... Oakland

2254 S. Euclid Avenue ............................ Ontario

128 Niblick Road ............................ Paso Robles

3966 Missouri Flat Road ..................... Placerville

11099 Olson Drive ..................... Rancho Cordova

1040 E. Cypress Avenue ........................ Redding

741 Pleasant Grove Blvd. ...................... Roseville

1701 Santa Clara Drive ......................... Roseville

4011 Woodcreek Oaks Blvd. .................. Roseville

670 J Street ......................................Sacramento

1108 O Street .................................. Sacramento

515 La Sierra Drive .......................... Sacramento

7770 College Town Dr. ...................... Sacramento

5337 Elkhorn Boulevard ................... Sacramento

1330 Florin Road ............................. Sacramento

4430 Florin Road ............................. Sacramento

2360 Stockton Blvd. ........................ Sacramento

2550 W. El Camino Ave. ................... Sacramento

3280 Arena Boulevard ...................... Sacramento

1301 Exposition Blvd. ...................... Sacramento

7465 Rush River Drive ..................... Sacramento

1109 L Street .................................. Sacramento

2120 K Street .................................. Sacramento

1326 Broadway ................................ Sacramento

1273 N. Davis Road ................................ Salinas

500 Golden Gate Ave. .................... San Francisco

500 Parnassus Avenue ................... San Francisco

185 Park Avenue .................................. San Jose

852 E. Foothill Blvd. .................. San Luis Obispo

1328 W. Hillsdale Blvd. ...................... San Mateo

850 W. March Lane .............................. Stockton

4321 Morada Lane ............................... Stockton

2942 Main Street ............................... Susanville

3202 W. Grant Line Road ............................ Tracy

2450 Geer Road ...................................... Turlock

196 Nut Tree Parkway .......................... Vacaville

766 Admiral Callaghan Lane ..................... Vallejo

772 Ikea Court ......................... West Sacramento

1801 E. Gibson Road .......................... Woodland

1282 Stabler Lane .............................. Yuba City

THE BOARD OF DIRECTORSAND CEO

MANAGEMENT

Paris D. ColemanVice Chair

Ting Lan SunChair

P. Craig CornettDirector

Craig L. BrownSecretary/Treasurer

James H. GomezDirector

Samantha LuiDirector

Aeisha MastagniDirector

Cassanndra H. B. JenningsDirector

John R. HarriganDirector

Keri L. ThomasDirector

Donna A. BlandPresident/CEO

Senior Vice Presidents

Douglas AguiarChief Marketing Officer

Greg BrownChief Lending Officer

Chad CarringtonSecurity, Technology Infrastructure, and Facilities

Jose DelgadoChief Retail Officer

Kathy FlynnService Operations

Elizabeth FreemanStrategic Planning and Chief Investment Officer

Allyson HillChief Financial Officer

Courtney LinnGeneral Counsel

George MyersChief Human Resources Officer

Vice Presidents

Walter Anasovitch, Collections and Subservicing Oversight

James Deas, Branch Channel Delivery

Diana Forti, Cards

Marlen Foster, Digital Channel Delivery

Joseph Harrison, Compliance Officer

Ryan Kelly, Audit Services

Ryan Little, Consumer Lending

Kyle Long, Corporate Strategy

Molly Mallinson, Integrated Solutions

Michael Popp, Home Loans

Paul Sidhu, Enterprise Application Services

Erica Taylor, Communications and Community Relations

John Tennant, Member Service Contact Center

Denise Zboralske, Finance

Donna A. BlandPresident and CEO

Executive Vice Presidents

Tom GenessyService Operations, Security, and Technology

Dustin LutonFinance, Risk and Administration

Richard MusciProducts and Delivery

P.O. Box 15966 • Sacramento, CA 95852-0966 • 1-877-GOLDEN 1 (1-877-465-3361) • golden1.com

Equal Housing Opportunity.