1 | STANDARDS OF ETHICAL CONDUCT

Published quarterly by: Parsons Federal Credit Union 100 West Walnut Street Pasadena, CA 91124

For questions or comments about

this newsletter, please contact:

marketing@parsonsfcu.com 626.440.7000 • 800.765.4527

www.parsonsfcu.orgMailing address: P.O. Box 90667 Pasadena, CA 91109-0667

4 | Parsons Federal Credit Union

Thank you to everyone who attended our annual meeting on May 17th. 2017 was truly a year to

commemorate, as it proved to be

the most successful year for Parsons

Federal Credit Union on many

levels. Much of this success is due

to listening to you, our members,

and delivering on our mission to

“make life’s journey easier.” During

the meeting, we reflected on the

accomplishments throughout the

past year and shared the direction

of the credit union for the remainder of 2018. We also introduced our Annual

Report, which is a concise narrative that includes financial reports, events that

took place this past year, products that were introduced, and much more. The

annual meeting is an important aspect of what makes credit unions unique.

We look forward to listening to the feedback of our members and identifying areas where we can serve you better and improve your member experience.

WALNUTSTREETJOURNAL

July 2018

People Helping People: WorleyParsons Breath of Life + Ronald McDonald Walk for Kids

SEE MORE INSIDE

PAGE

04

President/CEO Letter

Building Relationships 02

PAGE

Four Benefits of Student Loan Refinancing in 2018

PAGE

03

ANNUAL MEETING 2018

Your savings are insured up to $500,000 through a combination of federal insurance by the National Credit Union Administration, a U.S. government agency, and private insurance by American Share Insurance.

PEOPLE HELPING PEOPLE: WORLEYPARSONS BREATH OF LIFE + RONALD MCDONALD WALK FOR KIDS

Being involved in the community is at the root of our cooperative philosophy, and this year we were super excited to lead by example and help those in need. In April, we returned to the Ronald McDonald Walk for Kids in Pasadena for the second year in a row. The Walk for Kids received great enthusiasm among our staff: over 500 walkers marched together on April 22nd to show their support. We had great success raising money for this worthy cause; in fact, Parsons Corporation donated $5,000 to our team. Thank you, Parsons!

On May 4th, we attended the 21st Annual Breath of Life Golf Tournament, hosted by WorleyParsons in Cypress, Texas. The tournament was held at the Blackhorse Golf Club. Parsons Federal Credit Union was the lunch sponsor for over 300 golfers that day and was presented with a recognition award during dinner along with other sponsors, such as the WorleyParsons Foundation, ARC Document Solutions, and Turkish Airlines. This event was in support of the Cystic Fibrosis Foundation, and proceeds were used to support its mission to find a cure for cystic fibrosis and improve the quality of life for those living with the disease.

We had great success raising money for this worthy cause; in fact, Parsons Corporation donated $5,000 to our team. Thank you, Parsons!

Uniquely par tnering to make life’s journey easier.

STANDARDS OF ETHICAL CONDUCT | 4

If you find that you are unsatisfied with your current student loan repayment strategy, refinancing your student loans could help you get better control of your financial situation. Below are four key benefits of refinancing your student loans that you may want to consider in 2018:

1. LOWER YOUR INTEREST RATEWhen you refinance student loans, you basically consolidate them into a single loan with a new interest rate, new terms, and a different monthly payment amount. Depending on your debt-to-income ratio and your credit score, you could qualify for some attractive, low-interest rates that might compete with your current lender. For example, Parsons Federal Credit Union offers competitive and flexible rates through our student refinancing program. A lower interest rate on a loan that has the same repayment term will save you money, as it charges less interest and will reduce monthly payments. It’s important to first figure out the current interest rate of your outstanding loans. Then you can use tools, such as a student loan refinancing calculator, to determine if refinancing your loan is the best option for you. Depending on your situation, consider adding a cosigner to your application to reduce risk in the eyes of the lender and to receive a better interest rate.

2. REDUCE YOUR MONTHLY PAYMENTMany student loan refinancing programs offer flexible terms of repayment that allow you to pay off your loan as quickly as possible or keep your monthly payments as low as possible. Keeping your monthly payment as low as possible could give you the freedom to allocate your income to other expenses, such as rent or groceries. To illustrate this, consider the following example: If you are $30,000 in debt at a 5% interest rate, on a 5-year term, you'd pay $566 per month. But if you

were able to lengthen your repayment term from 5 years to 10 years, you'd only be paying $318 each month. Keep in mind that a longer payment term can mean more interest paid over time, even when the rate is lower. So it’s important to pay attention to the total cost of the loan and allocate more money to your loans when your finances allow it. Check with your lender to make sure there is no prepayment penalty.

3. SECURE A FIXED INTEREST RATEWhen you refinance your student loans, you’ll have to decide between a variable and fixed interest rate. A fixed interest rate means the rate never changes over the life of your loan. Obtaining a fixed-rate loan can help you predict how much you’ll pay in interest and can keep your interest payments at manageable levels. On the other hand, a variable interest rate can rise and fall with market conditions. There are pros and cons to both variable and fixed rates, and much of it depends on your risk tolerance, so make sure you evaluate both rate types when making a decision.

4. SIMPLIFY YOUR PAYMENTSDid you know that your federal and private student loans can be sold to other lenders at any time? That’s right. While the basics of your loan – such as the interest rate and repayment term – will not change, this can cause a serious headache staying on top of your loan repayment. Student loan refinancing allows you to combine multiple student loans into one debt which is makes it easier for you to organize, track and repay. If you no longer want to deal with multiple student loans with various terms, research what’s offered to you in terms of your student loan refinancing options. There’s a chance you could be saving money and a big headache.

2 | Parsons Federal Credit Union Parsons Federal Credit Union | 3

FOUR BENEFITS OF STUDENT LOAN REFINANCING IN 2018

2 | Parsons Federal Credit Union

BUILDING RELATIONSHIPS We are excited to announce that the credit union is growing and that new relationships are being built on the foundation of serving our members! As many of you already know, we have expanded our membership to include the east and west annex buildings on the Parsons Pasadena campus. In April, we hosted a table day for these individuals, where we shared the benefits of joining Parsons Federal Credit Union. We took this opportunity to give away various swag items and cupcakes, and even funded membership accounts that were opened that day! It was a great event, full of energy and excitement. We are looking forward to strengthening these relationships and making life’s journey easier for these members and their families.

In the months of May and June, our CEO and executive development coordinator traveled around the country to visit offices of Parsons, WorleyParsons, and other affiliates. We would like to thank the Irvine, Texas, Virginia, and New York branches for welcoming us with open arms. It was a wonderful opportunity to meet with employees and share the benefits that Parsons Federal Credit Union has to offer. We will be doing more site visits in the future, so when you see us, please come say hello!

PRESIDENT/CEO LETTERI hope everyone’s summer is off to a great start. In our last newsletter, we discussed our ongoing technology review. I am happy to report we have selected a best-in-class technology provider, and we will soon begin our conversion process. This new technology solution will bring a host of new features, which is an essential

part of our ongoing effort to improve the overall performance and user experience for our members. Our online banking, bill payment, mobile banking, and person-to-person funds transfer will change during the 1st quarter of 2019.

Choosing the best technology solution is vital for us in continuing our journey to provide products and services that you deserve.

During the conversion, we will provide you with essential timelines and information regarding the process. Therefore, it is necessary that we have your most current contact information. Please review your membership details, and let us know if any updates are required. Our Member Services representatives will also be reaching out to you as needed.

Looking back, 2017 was the year of empowering you as true member-owners. At your request, we implemented three significant initiatives: an in-depth technology review, a money market account, and a student loan refinancing program.

Thank you for your continued loyalty.

Have a great summer!

Sincerely,

Ray CrousePresident/CEOParsons Federal Credit Union

Ray CrouseIt’s graduation season, and many of you are well on your way to reaping the benefits of the hard work you put into those years

attending college. For those who acquired a pretty penny in student loan debt, seeing the benefits of your degree might take

a little longer than expected. Most student loan programs give a 6-month grace period, but as this comes to an end, many are

left with the reality that their student debt is going to be around for a while, eating away at their monthly income.

STANDARDS OF ETHICAL CONDUCT | 4

If you find that you are unsatisfied with your current student loan repayment strategy, refinancing your student loans could help you get better control of your financial situation. Below are four key benefits of refinancing your student loans that you may want to consider in 2018:

1. LOWER YOUR INTEREST RATEWhen you refinance student loans, you basically consolidate them into a single loan with a new interest rate, new terms, and a different monthly payment amount. Depending on your debt-to-income ratio and your credit score, you could qualify for some attractive, low-interest rates that might compete with your current lender. For example, Parsons Federal Credit Union offers competitive and flexible rates through our student refinancing program. A lower interest rate on a loan that has the same repayment term will save you money, as it charges less interest and will reduce monthly payments. It’s important to first figure out the current interest rate of your outstanding loans. Then you can use tools, such as a student loan refinancing calculator, to determine if refinancing your loan is the best option for you. Depending on your situation, consider adding a cosigner to your application to reduce risk in the eyes of the lender and to receive a better interest rate.

2. REDUCE YOUR MONTHLY PAYMENTMany student loan refinancing programs offer flexible terms of repayment that allow you to pay off your loan as quickly as possible or keep your monthly payments as low as possible. Keeping your monthly payment as low as possible could give you the freedom to allocate your income to other expenses, such as rent or groceries. To illustrate this, consider the following example: If you are $30,000 in debt at a 5% interest rate, on a 5-year term, you'd pay $566 per month. But if you

were able to lengthen your repayment term from 5 years to 10 years, you'd only be paying $318 each month. Keep in mind that a longer payment term can mean more interest paid over time, even when the rate is lower. So it’s important to pay attention to the total cost of the loan and allocate more money to your loans when your finances allow it. Check with your lender to make sure there is no prepayment penalty.

3. SECURE A FIXED INTEREST RATEWhen you refinance your student loans, you’ll have to decide between a variable and fixed interest rate. A fixed interest rate means the rate never changes over the life of your loan. Obtaining a fixed-rate loan can help you predict how much you’ll pay in interest and can keep your interest payments at manageable levels. On the other hand, a variable interest rate can rise and fall with market conditions. There are pros and cons to both variable and fixed rates, and much of it depends on your risk tolerance, so make sure you evaluate both rate types when making a decision.

4. SIMPLIFY YOUR PAYMENTSDid you know that your federal and private student loans can be sold to other lenders at any time? That’s right. While the basics of your loan – such as the interest rate and repayment term – will not change, this can cause a serious headache staying on top of your loan repayment. Student loan refinancing allows you to combine multiple student loans into one debt which is makes it easier for you to organize, track and repay. If you no longer want to deal with multiple student loans with various terms, research what’s offered to you in terms of your student loan refinancing options. There’s a chance you could be saving money and a big headache.

2 | Parsons Federal Credit Union Parsons Federal Credit Union | 3

FOUR BENEFITS OF STUDENT LOAN REFINANCING IN 2018

2 | Parsons Federal Credit Union

BUILDING RELATIONSHIPS We are excited to announce that the credit union is growing and that new relationships are being built on the foundation of serving our members! As many of you already know, we have expanded our membership to include the east and west annex buildings on the Parsons Pasadena campus. In April, we hosted a table day for these individuals, where we shared the benefits of joining Parsons Federal Credit Union. We took this opportunity to give away various swag items and cupcakes, and even funded membership accounts that were opened that day! It was a great event, full of energy and excitement. We are looking forward to strengthening these relationships and making life’s journey easier for these members and their families.

In the months of May and June, our CEO and executive development coordinator traveled around the country to visit offices of Parsons, WorleyParsons, and other affiliates. We would like to thank the Irvine, Texas, Virginia, and New York branches for welcoming us with open arms. It was a wonderful opportunity to meet with employees and share the benefits that Parsons Federal Credit Union has to offer. We will be doing more site visits in the future, so when you see us, please come say hello!

PRESIDENT/CEO LETTERI hope everyone’s summer is off to a great start. In our last newsletter, we discussed our ongoing technology review. I am happy to report we have selected a best-in-class technology provider, and we will soon begin our conversion process. This new technology solution will bring a host of new features, which is an essential

part of our ongoing effort to improve the overall performance and user experience for our members. Our online banking, bill payment, mobile banking, and person-to-person funds transfer will change during the 1st quarter of 2019.

Choosing the best technology solution is vital for us in continuing our journey to provide products and services that you deserve.

During the conversion, we will provide you with essential timelines and information regarding the process. Therefore, it is necessary that we have your most current contact information. Please review your membership details, and let us know if any updates are required. Our Member Services representatives will also be reaching out to you as needed.

Looking back, 2017 was the year of empowering you as true member-owners. At your request, we implemented three significant initiatives: an in-depth technology review, a money market account, and a student loan refinancing program.

Thank you for your continued loyalty.

Have a great summer!

Sincerely,

Ray CrousePresident/CEOParsons Federal Credit Union

Ray CrouseIt’s graduation season, and many of you are well on your way to reaping the benefits of the hard work you put into those years

attending college. For those who acquired a pretty penny in student loan debt, seeing the benefits of your degree might take

a little longer than expected. Most student loan programs give a 6-month grace period, but as this comes to an end, many are

left with the reality that their student debt is going to be around for a while, eating away at their monthly income.

1 | STANDARDS OF ETHICAL CONDUCT

Published quarterly by: Parsons Federal Credit Union 100 West Walnut Street Pasadena, CA 91124

For questions or comments about

this newsletter, please contact:

marketing@parsonsfcu.com 626.440.7000 • 800.765.4527

www.parsonsfcu.orgMailing address: P.O. Box 90667 Pasadena, CA 91109-0667

4 | Parsons Federal Credit Union

Thank you to everyone who attended our annual meeting on May 17th. 2017 was truly a year to

commemorate, as it proved to be

the most successful year for Parsons

Federal Credit Union on many

levels. Much of this success is due

to listening to you, our members,

and delivering on our mission to

“make life’s journey easier.” During

the meeting, we reflected on the

accomplishments throughout the

past year and shared the direction

of the credit union for the remainder of 2018. We also introduced our Annual

Report, which is a concise narrative that includes financial reports, events that

took place this past year, products that were introduced, and much more. The

annual meeting is an important aspect of what makes credit unions unique.

We look forward to listening to the feedback of our members and identifying areas where we can serve you better and improve your member experience.

WALNUTSTREETJOURNAL

July 2018

People Helping People: WorleyParsons Breath of Life + Ronald McDonald Walk for Kids

SEE MORE INSIDE

PAGE

04

President/CEO Letter

Building Relationships 02

PAGE

Four Benefits of Student Loan Refinancing in 2018

PAGE

03

ANNUAL MEETING 2018

Your savings are insured up to $500,000 through a combination of federal insurance by the National Credit Union Administration, a U.S. government agency, and private insurance by American Share Insurance.

PEOPLE HELPING PEOPLE: WORLEYPARSONS BREATH OF LIFE + RONALD MCDONALD WALK FOR KIDS

Being involved in the community is at the root of our cooperative philosophy, and this year we were super excited to lead by example and help those in need. In April, we returned to the Ronald McDonald Walk for Kids in Pasadena for the second year in a row. The Walk for Kids received great enthusiasm among our staff: over 500 walkers marched together on April 22nd to show their support. We had great success raising money for this worthy cause; in fact, Parsons Corporation donated $5,000 to our team. Thank you, Parsons!

On May 4th, we attended the 21st Annual Breath of Life Golf Tournament, hosted by WorleyParsons in Cypress, Texas. The tournament was held at the Blackhorse Golf Club. Parsons Federal Credit Union was the lunch sponsor for over 300 golfers that day and was presented with a recognition award during dinner along with other sponsors, such as the WorleyParsons Foundation, ARC Document Solutions, and Turkish Airlines. This event was in support of the Cystic Fibrosis Foundation, and proceeds were used to support its mission to find a cure for cystic fibrosis and improve the quality of life for those living with the disease.

We had great success raising money for this worthy cause; in fact, Parsons Corporation donated $5,000 to our team. Thank you, Parsons!

Uniquely par tnering to make life’s journey easier.