Better Banking For All G#

2016Annual ReportBetter banking for allGenerations

22 branches throughout SouthernCalifornia, serving nearly 200,000members.Financial Highlights(Dollars In Thousands)20162015IncreaseAssets 3,192,447 3,007,8156.1%Members’ Shares 2,592,467 2,363,2469.7%Loans 1,899,830 1,688,20412.5%

Better banking isn’t achieved in a year, or evenin a decade – it’s built upon generations ofcontinuous improvements to our products and44,535members enrolledin Wescom ExpressViewservices, commitment to communities, andattention to member service.In 2016, we increased our membership,855 new social mediafollowersenhanced accessibility, heightened our brandawareness, and recorded growth in loans byfocusing on our founding objective of 1.9billionpeople helping people.in loansto membersIn the following pages, you’ll learn howWescom continues to grow as a financialinstitution while offering products and services12,983for every stage of our members’ lives.new members1

We’re pleased to inform you that Wescom turned in a positive performance, posting net earnings of more than 22 million in 2016.This performance can be attributed to several key factors including enhanced security, increased involvement inour communities, and loan growth.Keeping our members’ account information safe is our priority, which is why we added new Account Alerts to helpmembers keep track of their finances and issued chip cards to improve the security of members’ transactions andhelp prevent fraudulent activity. In 2016 we reported a 47 percent decrease in the number of Check Cards andCredit Cards affected by external data breaches.In 2016 we helped more members qualify for Signature Membership by adding the “Student” and “Length ofMembership” relationships, which recognize members in various stages of life. Based on these additions, and anoverall deepening of relationships with our members, we recorded a seven percent increase in the number ofSignature Members. Our continuous efforts to add value to the overall member experience was validated by ourmembers’ feedback through our Member Experience Survey, which produced a score of 84 percent. This score isbased on an average of six categories reflecting the member’s experience with us including Net Promoter Score(a widely used measure of members who say they would recommend Wescom to others), experience, convenience,expectations, individual value, and comparative value.As technology becomes more and more integrated in our members’ everyday lives, we continued to streamlinetheir mobile and online banking experience with us to remain competitive in today’s market. In 2016 we completedupgrades to our Wescom Mobile Banking Apps: Wescom Express View for Apple devices, which allows membersto quickly check their account balances and recent history without logging in, and fingerprint login for Android devices. Additionally, we made eStatements available on the Mobile Banking Apps and introduced a simplified wayto access mortgage eStatements in eBranch.Connecting with our communities continued to be at the forefront of how we engage with potential new members. Asthe Official Financial Institution for UCLA Athletics and the Rose Bowl Stadium, and through our increased deploymentof Big Blue – the Wescom Mobile Branch – and participation in more than 50 unique community events, we were ableto increase brand awareness and help more communities throughout Southern California experience the Wescomdifference. This contributed to a more than six percent increase in new members.We also saw loan growth in 2016 as we offered lending options to fit members’ needs and budgets, hostedseminars to help our members better understand the lending options available to them, and maintained competitiveinterest rates. These factors helped more members choose Wescom for all aspects of their lending needs includingauto, home, and lines of credit. We were pleased to record an 18 percent increase in auto loans and a 19 percentincrease in first mortgages.As we continue to serve our members in 2017, we will not only think about how our products and services willbenefit them now, but also how their relationships with us will strengthen our membership for years to come. Throughincreased focus on all generations of members, additional financial education resources to guide all membersthrough their financial journey with us, and heightened commitment to our communities, we look forward to a yearof building stronger relationships and investing in the future of Wescom.Virginia C. PanossianChairman2Darren WilliamsPresident/CEO

We’re pleased toinform you thatWescom turned ina positiveperformance,posting netearnings of morethan 22 millionin 2016.Assets 2.80’14 3.01 3.19Members’Shares ’15’16 2.59 2.36 1.90 2.19’14Loans 1.69 1.51’15’16’14’15’163

Serving Memberson the Roadof LifeIn 2016, we realized that keeping Wescomcompetitive and relevant in today’s advancingfinancial industry is necessary to continueserving members of all generations for years tocome. Whether it’s a new member, a memberwith multiple accounts, or a long-term memberlooking for financial services, we help servemembers in every aspect of their financial life.4

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Expanding theBanking ExperienceOur MembersRecommend Us Wescom received a significantlyhigher Net Promoter Score – a widelyused measure of members who saythey would recommend others toWescom – than both credit unionsand banks.*WescomStrength in Signature MembershipIn 2016, we recognized memberswho are beginning their financialjourney with us, honored ourlong-term members, and deepenedour financial relationships throughexpanded accessibility, whichhelped us achieve a seven percentincrease in Signature Membership.85%125,793112,862117,15861% Credit UnionsBanks35%*Samples reflect the first quarter of 2016and are provided by Member Loyalty Group.’14’15’16Every Experience CountsTo better measure how our engagement withmembers reflects their experience when using ourvarious service channels, we utilize our MemberExperience Survey, which is based on an averageof six categories. After the first full year ofrecording results, our Member Experience Scorecalculated to 84 percent.Member Experience Score84%Net Promoter ScoreExperienceConvenienceExpectationsComparative ValueIndividual Value6

"My dad went with me to open a Youth Account with Wescom when Iwas young and I just kept banking with Wescom ever since. I alwaysgo to the La Habra Branch and my son loves to run and play with thepuzzles in the kids’ section, and I can always walk out with a smile!It's been 13 years of excellence with Wescom!"5.9% 96Saved annually by eachPlatinum and Signature Memberwith fee-free Checking**The savings shown is based on 12 monthsof the 8 monthly Checking Account servicefee, which is waived for Platinum SignatureMembers and Signature Members, NewChecking Accounts for the first 90 days,members age 18 through 22 who areactive eBranch users and who haveopted out of paper statements,Youth Accounts (members throughage 17), Members age 60 andolder, and Club and OrganizationAccounts.Increase in Apple App users8.9%Increase inAndroid App users47%New Chat hours oneBranch and our MobileBanking App for Apple devices.Monday through Fridayfrom 7 a.m. - 9 p.m.,Saturday from9 a.m. - 7 p.m.,Sunday closedOf new membersachieved SignatureMembership duringtheir New MemberPeriod (their first 90days since joiningWescom)Adriana StoutMember Since 2003Whittier, CA7

“As my life changed and evolved and matured, so did my relationshipwith the Credit Union. The same customer service that I receive,Wescom extends it to my sons and that speaks volumes to me.Whether it is about a loan, insurance, or homeownership – everysingle stage of life, I feel valued and I matter.”Increase of New MembersBy exposing the Wescom brand tonew audiences at community eventsthroughout Southern California, wehave seen a more thansix percent growth innew membership.12,98312,17911,727’14’15’163,820 Page Likes567 FollowersGrace Barraza, Member Since 1997, Tustin, CAZach Barraza (left), Member Since 2004Gabe Salcedo (right), Member Since 20018568 Followers

Commitment toOur CommunitiesConnecting and engaging with our communitiescontinued to be a priority for Wescom in 2016.Many of those connections were made possible bythe increased integration of the Wescom brand toall corners of our Southern California communities,which, in turn helped increase new membership.91The number of pitstops Big Blue madeat community eventsWescom is the Official FinancialInstitution of UCLA Athleticsand the Rose Bowl Stadium500,000 2individuals exposed to theWescom brand during Rose Bowland UCLA Athletics eventsLocations where Big Blueserved as a pop-up-branch Northridge Anaheim215 reviews120 high school studentsattended the Bite ofReality financialeducation workshop9

Providing Valueas a Full ServiceFinancial InstitutionOffering loan products and services for every stage of ourmembers’ lives is important when it comes to buildinglifelong relationships with them. In 2016, we helpedmembers take the necessary steps to buy a car, purchase ahome, secure their finances, and build better lives. Of members with aWescom Auto Loan haveWescom Auto Insurance Two car sales 236 cars sold Nearly 200 loansfunded for 4.2 millionAuto Loansin Millionsenjoyed the perks andbenefits of a WescomPlatinum Visa CreditCard in 2016 164 154 129 107’13 Of Wescom membersnew Wescom VisaCredit Cards openedin 2016’14’15’16New Mortgagesin Millions 417 328 268’1410’15’16

“My daughter encouraged me to open an account with Wescom and theATMs and online banking are what I enjoy the most. Opening my twoWescom Financial Services (WFS) accounts were easy and convenient.”Preparing Members forthe Road AheadAs our members continue to grow financially anddeepen their relationships with us, we continueto offer them the products and investmentservices they need through Wescom FinancialServices and Wescom Insurance Services. Assets under management withWescom Financial Services Increase in members witha Wescom InsuranceServices policy Home Equity Lines ofCredit fundedTrudy HiteMemberSince 2002Azusa, CA11

Investing in Our CommunitiesServing our members is our primary focus, but we strongly believe we have a responsibility to serveour communities as well. Since 1934, we’ve been serving members in Southern California with thephilosophy of “people helping people.” For the past 17 years, we have been partnering withcommunity organizations through our WeCare Foundation – a charitable, non-profit organizationfounded by Wescom employees to help those in need through donations and volunteerism. For thepast 10 years, we have participated in the National Multiple Sclerosis (MS) Society’s Bike MS Rideand have been the highest fundraising corporate team in recent years. We have also continued toeducate our members and the communities we serve by offering various financial educationseminars and workshops.Financial LiteracyBike MS 170,395 donated to the MS Society110 riders biked in the two-day, 100-mileBike MS ride from Irvine to San Diego62 financial literacyCommunityOutreach 190,110 donated to localcharities through our WeCareFoundation in 2016LocalOrganizations8 local charities 2 million donated toreceived quarterlydonationslocal charities since WeCarewas founded in 199952 local charities76% of Wescom employeesdonate to the WeCareFoundation12and education seminarshosted for membersand the communitiesin 2016received one-timedonations from WeCareRalph Bautista,Wescom Bike Team Member