The Future is Bright!

2017Annual Report

IntegritySafetyService Soundness

&Quality

Grow your future with us!

Vons Credit Union

Our New Brea Branch

Branching Out

Executive Report Board of Directors

Gary HammettChairman

Lori KuniokaDirector / Chair of Supervisory Committee

Warren FishSecretary

Dick GonzalesDirector

JoAnn MurdockDirector

Steve Weakley Donna SimpsonPresident / CEO EVP / COOBoard Treasurer

Senior ManagementHugo SanchezController

Financials

Independent Auditor’s Statement

Non-Interest Expense

Income and Expenses

Liabilities and Equity

Assets 2017

2016

In our opinion, the financial statements present fairly, in all material respects, the financial position of Vons Employees Federal Credit Union as of December 31, 2017 and 2016, and the results of its operations and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.

Richards and Associates - Certified Public Accountants

The Supervisory Committee is responsible for monitoring the financial safety and soundness of the Credit Union and ensuring compliance with various financial and regulatory requirements. In fulfilling these responsibilities, the Committee engaged an auditing firm specializing in credit unions to audit the financial statements as of December 31, 2017 and their opinion is stated above. In addition, the Committee met on a quarterly basis to review the internal audit reports.

Loans to Members

Allowance for loan losses Cash and cash equivalents

Investments

Property and equipment

Other assets

Total assets

Dividends payable

All other liabilities

Share accounts

Share checking and ultra accounts

Certificates Individual Retirement Accounts

Capital/Reserves

Total liabilities capital and reserves

Interest on loans

Investment income

Total interest income

Total interest expense on members’ accounts

Net interest income

Provision for loan loss

Net interest income after provision for loan losses

Service charges & other income

Gain on property and equipment

Gain on sale of investments

Total non-interest income

Compensation and benefits Office operations Other expenses

Loss on non-operating activities

Total non-interest expenses

Net Income

Supervisory Committee Statement

Lori Kunioka Steve Kay Debbi Navarro Miles KendallCommittee Chair

Vons Credit Union completed a record year in Assets in 2017, crossing over Half-a-Billion at $505 million‼ This is growth of over $20 million for the year. Loans also grew to a record $292 million, a significant increase of approximately $35 million, up 13.5%.

Strong real estate and auto loan volumes, combined with an improved U.S. and California economy, helped our members’ ability to borrow and pursue the American Dream. Capital or Equity, which are the reserves that protect your money, grew to over $107 million, or over 21% of Assets. This puts us in the top 1% of all credit unions for Safety and Soundness.

Our credit union again earned the top rating of 5-Stars from Bauer Financial and an “A+” from Weiss Ratings, which includes an elite group of 19 credit unions nationwide representing the top 0.3% of the industry! We are now the largest Grocery Industry Credit Union in the Western United States, with the goal of serving all Grocers in California, and beyond.

2017 was another exciting year of membership growth and outreach as we continued to visit our two key sponsors: Albertsons / Vons / Pavilions and SuperValu. We are also honored to continue to serve our local communities surrounding our Headquarters in El Monte.

I would like to personally thank our exemplary Board of Directors and Supervisory Committee, led by our Board Chairman, Gary Hammett. In addition, a big thank you to our wonderful staff who work every day to serve you, our Members‼

Jay LassiterVP Service / Payments /Data Marketing

Bill RiceVP Consumer Lending /Special Accounts

257,435,107

(2,155,573)

46,673,274

173,773,9482,491,3487,345,397

485,563,501

197,9147,655,669

115,534,90696,090,143

127,068,92938,224,311

100,791,629485,563,501

15,337,461

2,782,49918,119,9602,375,439

15,744,521

925,00014,819,521

9,123,907—

38,2999,162,206

9,267,8802,719,6546,154,880

727,57918,869,9935,111,734

292,217,624 (2,685,288)34,210,949

171,905,4452,035,8647,888,925

505,573,519

219,6526,725,915

121,316,982106,763,618126,418,79936,517,373

107,611,180505,573,519

16,808,4743,041,029

19,849,5032,564,753

17,284,7502,706,000

14,578,750

9,470,975—

(45,940)9,425,035

9,922,2462,750,532

6,157,616

(646,801)18,183,5935,820,192

163 182 202

387 407

430 4

53

($ in millions)

’00 ‘01 ’02 ‘03 ’04 ‘05 ’06 ‘07 ’08 ‘09 ’10 ‘11 ’12 ‘13 ’14 ‘15 ’16 ‘17

259

270 284

224 244

300 323

372

ASSETS

371

486

506

21

86 9

1 96

29

80

’00 ‘01 ’02 ‘03 ’04 ‘05 ’06 ‘07 ’08 ‘09 ’10 ‘11 ’12 ‘13 ’14 ‘15 ’16 ‘17

59

42

49

56

32 3

7

64

70 7

5($ in millions)EQUITY

25

101

108

†