2018Annual Meeting

Rich HarrisPresident/Treasurer

• Financial Update• Strategic Philosophy• New Tax laws impact Real Estate• Satisfaction of CEFCU Members

CEFCU continues to be in outstanding condition in all

categories of financial performance!

2017 Year-End Outcomes

Assets: $1,608,911,972 6.03% Member Loans: $437,156,584 7.05% Investments: $1,100,572,956 7.08% Shares: $1,446,086,598 6.12% Net Worth: $159,736,698 7.44% Member Accounts: 36,319 1.78%

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

2013 2014 2015 2016 2017

Milli

ons

Shares Loans Assets

Year-End Assets, Shares, and Loans

Assets = $1.609 Billion Dollars at 2017 Year-end

United States Credit Union’s Greater Than $1 Billion in Assets

CEFCU Ranks as the 157th largest as of September 30 , 2017

CU’s < $1 B5,474

CU’s > $1 B287

Dividends39%

Expenses34%

Capital27%

2017 Distribution of IncomeAverage Dividends as % of Income for credit union’s over $1B is 10.75%

Net Worth (Capital) is Solid & Strong

$159.7 Million at 2017 Year-end

$120.0$129.2

$139.4$148.6

$159.7

$0.0

$20.0

$40.0

$60.0

$80.0

$100.0

$120.0

$140.0

$160.0

$180.0

2013 2014 2015 2016 2017

Net Worth (Capital)(in millions)

Solid & Secure Capital…

Backed by NCUA Federal Government Deposit Insurance!

CEFCUInvestments continue to be

of the highest quality and safety

Entire securities portfolio has either the direct or implied backing of the U.S. Government

MISSIONCEFCU provides superior value with

unsurpassed service through selected financial products while

maintaining our tradition of stability, security, and trust.

“Who we are”

St

SuperiorValue

SelectedFinancialProducts

UnsurpassedService

Stability, Security, Trust

Strategic Philosophy

MEMBERS FIRSTWe always place the best interests and welfare of our members first.

FINANCIAL STRENGTHWe never compromise the financial strength and security of the organization.

ETHICSWe conduct all activities with honesty and integrity.

We promote the well-being of our members, volunteers, and employees.IMPORTANCE OF PEOPLE

CORE VALUES

Strategy is Focused on:• The Essentials of our Mission Statement• Caltech Community• Low Cost Competitive Advantage• Higher Dividends, Lower Loan Rates, Low

or No Fees

37 Nobel PrizeWinners

PrestigiousScientific Minds

PreeminentExperts on Earthquakes

Surpassing all others · Distinguished · Greatest ·Leading · Foremost · Best · Finest

Outer Space& Beyond

The Tax Cuts and Jobs ActMajor Real Estate Tax Law Provisions

Affecting Homeowners in 2018

** Consult Your Tax Professional **• Reduces the limit on deductible mortgage debt to $750,000

for new loans taken out after 12/14/17• Current loans of up to $1 million are grandfathered• Homeowners may refinance mortgage debt that existed on

12/14/17 (same balance no cash out) up to $1 million and still deduct the interest

• Repeals the deduction for interest paid on Home Equity debt through 12/31/25

• Interest may still be deductible on HE loans, in some cases, if the proceeds are used to acquire, build, or substantially improve the residence.

Summary May2013Aug2014

Aug2015

Aug2016

Aug2017

Satisfied 97.8% 98.8% 98.2% 98.3% 98.8%

Dissatisfied 2.2% 1.2% 1.8% 1.7% 1.1%

2017 Member Satisfaction

The quality index is an average of the scores achieved in the 7 service quality questions. (Scores closest to 1 are best.)

Treated with respect Knowledgeable Staff Accurate Transaction

Able to access e-Commerce Phones easy to use Calls handled well Problems solved

Quality Service Index

0.98

1.00

1.02

1.04

1.06

1.08

1.10

1.12

1.14

1.16

2013 2014 2015 2016 2017

1.15 1.151.13

1.04

1.14

Quality Service Index

Would you recommend CEFCU to a friend, colleague, or family member?

YES = PROMOTER

Net Promoter Score

All Members can be divided into 3 categories:

Detractors – Unhappy members who sully our reputation and will switch to another competitor in an instant.

Passives – Satisfied but unenthusiastic members who can easily be wooed by the competition.

Promoters – Loyal enthusiasts who keep using CEFCU and urge their friends, colleagues, and family members to do the same.

“The Ultimate Question: Driving Good Profits and True Growth” By Fred Reichheld

Would you recommend CEFCU to a friend, colleague, or family member?

CEFCU members were asked to answer the question using a scale of 1 to 10. Members who answer with a 9 or 10 are Promoters. Members who answer with a 7 or 8 are Passives. Members who answer with a 1 through 6 are Detractors.

71.6%

75.6%74.0% 74.6% 74.4%

76.3%

60%

70%

80%

2012 2013 2014 2015 2016 2017

Net Promoter Score = % of Promoters minus % of Detractors

CEFCU Net Promoter Score

Our Members Continue to be the Source of our Success!!

THANK YOU !!

We look forward to a bright and positive 2018 and beyond!

Slide Number 1Slide Number 2Slide Number 3CEFCU continues to be in outstanding condition in all categories of financial performance!2017 Year-End OutcomesSlide Number 6Slide Number 7Slide Number 8Slide Number 9Slide Number 10CEFCU�Investments continue to be of the highest quality and safetyMISSIONSlide Number 13MEMBERS FIRSTStrategy is Focused on:Slide Number 16The Tax Cuts and Jobs Act** Consult Your Tax Professional **2017 Member SatisfactionQuality Service IndexQuality Service IndexWould you recommend CEFCU to a friend, colleague, or family member?All Members can be divided into 3 categories:Would you recommend CEFCU to a friend, colleague, or family member?Slide Number 25Slide Number 26Slide Number 27