EDWARDS 2020 ANNUAL REPORT

ROY MACKINNON | PRESIDENT/CEO We began 2020 with two primary strategic goals: a major computer system upgrade to correct the problems of our previous system conversion in 2018 and the completion of construction of our new Palmdale location which began in 2019. Coming off the near record setting financial performance of 2019, we launched our annual debt consolidation promotion in the first quarter. Not long after we first heard about COVID. In March, COVID was declared a pandemic and hit with a vengeance. Before anyone saw it coming, the State and our Nation were in a lockdown/stay at home situation. Few people could have understood the ramifications at the time, but now we know it was the beginning of the “worst of times.” The economy took a nosedive as too did our lending. With most of the nation staying home, spending dried up, with the exception of the occasional trip to the market. The Fed cut rates and the credit union’s investments experienced deep declines in their returns. All of this together and combined with some expenses we could not amortize related to the Palmdale Project impacted our income significantly resulting in a net loss for 2020 of $198,279. After we began to open back up, business in general was slow to return but we did do our best to deliver good member service, albeit with masks required, sneeze guards in place and gallons of hand sanitizer available. We continued to make auto, personal and RV loans throughout 2020 and by the end of summer, many members were taking advantage of our low-rate home loans to refinance their existing home loan. Beginning in early summer we also began six months of intensive staff training for our computer system upgrade. And while it required many long hours from all staff, especially our senior management team, I’m pleased to share that our upgrade on December 7 th was a near perfect as possible. Yes, there were a few items that needed our attention but overall, the upgrade was uneventful. FOR EDWARDS FEDERAL CREDIT UNION, 2020 WAS PERHAPS BEST SUMMED UP MUCH THE SAME WAY CHARLES DICKENS OPENED HIS CLASSIC 1859 NOVEL, A TALE OF TWO CITIES — IT WAS THE BEST OF TIMES, IT WAS THE WORST OF TIMES. And amongst everything else going on in the world in 2020, COVID also impacted our new Palmdale building project. The economic slowdown delayed everything from lighting to windows and even exterior finishes. While our intent was to open in late December, multiple delays kept pushing our opening back. But with perhaps just a wee bit of luck, we were finally able to open on March 17th, 2021. The numerous photos in this report share a bit of the building process but by virtually all accounts, members love the new location and we have had a very positive response to the Celebrating Our Antelope Valley mural. If you haven’t visited us yet, the mural is worth the trip. Although there are still lingering effects to the economy from the pandemic, business at the credit union, both in Palmdale and on the Edwards Air Force base is returning to normal. In fact, in just the first few months of 2021, we are starting to see growth in products and service at both locations. WITH OUR TWO MAIN STRATEGIC INITIATIVES FOR 2020 NOW BEHIND US, WE ARE TRULY READY FOR OUR “BEST OF TIMES.” MILES OF CABLE and thousands of parts most of which will never be seen except in photos like this. AMELLOWYELLOW — Multiple layers of insulation and yellow Denzglass board ensure a highly energy efficient building. IT’S NOT OFTEN we can take advantage of signage some 300 feet in length…but we certainly did so here. SOME SERIOUS ELECTRICAL CABLING was laid into this 5-foot-deep trench that runs from the building to the drive thru ATM island.