Frontwave Credit Union's 2025 Annual Report
Frontwave Credit Union belongs to its Members. The Board of Directors serves with that responsibility front and center, acting as stewards of what Members have built together and guardians of the Credit Union’s long-term strength. This past year brought growth, change, and moments that demanded clear judgment. Through it all, the Board remained focused on what matters most: making decisions that strengthen Frontwave today while delivering lasting value for the Members we proudly serve. Financial Performance Frontwave delivered strong financial results through prudent management, strategic decision making, and a commitment to providing meaningful value to our Members. We strengthened our financial position with a record net income of $10.7 million in 2025 while maintaining a well-capitalized net worth ratio of 8.91% following the purchase and acquisition of Community Valley Bank. Assets increased to $1.7 billion, demonstrating strong growth alongside an ongoing dedication to financial stability. We remain focused on driving efficiency while also investing in infrastructure and technology to deliver a better experience for our Members.
After careful review, the Board approved the acquisition and integration of Community Valley Bank. This decision expanded our field of membership into Imperial Valley and strengthened our ability to serve Members, expand business banking services and support communities across the region. By increasing our scale and service capabilities, Frontwave is better positioned to support local businesses, strengthen local economies, and meet the evolving needs of the Members who rely on us every day. Strategic Expansion to Better Serve Members
Delivering Value Through Member-Focused Offerings
Strong governance turns strategy into everyday value. The Board’s role is to ensure those offerings solve real problems, protect Members’ money and make banking easier. Over the past year, we approved capital investments in enhanced fraud protection, improved membership and loan application system, improved communication with text, chat, and webchat, the replacement of our entire fleet of ATMs, and delivered more value and protection with our Elite and Elite Plus Checking accounts. This disciplined approach allows Frontwave to deliver value Members can see and feel while safeguarding the shared assets entrusted to the Credit Union.
Preparedness and Reliability Under Pressure
Members expect their Credit Union to remain steady when conditions become uncertain. During periods of disruption, Frontwave met that expectation with preparation, speed, and reliability. When the federal government shutdown disrupted pay for military and federal employee Members, Frontwave acted quickly. More than $50 million was advanced to over 33,000 service members and Department of Defense civilian employees to help cover everyday needs. This response reflected financial strength, advanced planning, and an unwavering commitment to the people we serve when it mattered most. It also reflects Frontwave’s military roots and its long-standing responsibility to support those who serve. The Board expects this level of readiness and remains focused on ensuring Frontwave can respond effectively whenever Members need support.
Joshua Tree National Park
2025 Leaders
Glamis Dunes
Sally Arnett Director
Amanda Cook Treasurer
Ann Regan Secretary
Brian Sutton Vice Chairman
Gary Greving Chairman
Community Responsibility as a Cooperative Standard Community responsibility is central to the cooperative model, and at Frontwave, it extends far beyond financial services. Frontwave Give360 is the Credit Union’s unified approach to community investment, designed to turn collective support into measurable, lasting local impact. Backed by extraordinary support from Members, employees, partners, and community organizations, Frontwave Give360 reflects how Frontwave shows up beyond banking and lives its cooperative mission. Over the past year, the program addressed a wide range of community needs, from food and hygiene insecurity to emergency relief and nonprofit partnerships. The breadth and reach of these efforts are a source of pride for the Board and demonstrate what is possible when a cooperative community comes together with shared purpose. The Board applies the same oversight, discipline, and accountability to Frontwave Give360 as it does to all major decisions. This ensures community investment remains responsible, sustainable, and aligned with Frontwave’s long-term strength while delivering meaningful benefits across the communities we serve.
Our Commitment to Members
Looking ahead, the Board remains focused on protecting trust, maintaining financial strength, and guiding Frontwave through growth that is responsible, disciplined, and Member-first. We will continue to govern with transparency and care, ensuring Frontwave remains a strong, reliable Credit Union for years to come. On behalf of the Board of Directors, thank you for the trust you place in Frontwave Credit Union. We take that responsibility seriously and work every day to earn it.
Dream Big. We Got You. Gary Greving
Chairman of the Board Frontwave Credit Union
Peter Drozdoff Director
Trevor Gates Associate Director
Michael Brigagliano Director
Mike Naylor Director
Gerald Polyascko Director
Sound financial stewardship is essential to a cooperative credit union. The Treasurer’s role is to oversee how Frontwave manages resources, balances risk, and maintains financial strength through changing conditions. In 2025, Frontwave operated in an economy shaped by higher interest rates and changing financial conditions. The cost of borrowing was higher than in recent years, prompting some Members and businesses to delay major purchases and loans. Rather than chasing short-term gains, the Credit Union focused on careful decision-making, managing expenses and investing responsibly. This approach allowed Frontwave to continue supporting Members while protecting long-term financial stability.
Throughout the year, Frontwave made deliberate choices about where to grow and where to hold steady. Higher interest rates slowed demand in some lending areas, but the Credit Union continued to responsibly grow its loan portfolio, maintaining strong credit quality and liquidity. Loan growth reached 26.9%, reflecting steady and sustainable expansion. Expense discipline remained a priority. Frontwave reduced operating expenses while continuing to invest in areas that improve service, strengthen security and support long-term efficiency. This balance preserved financial flexibility without sacrificing the experience Members expect. As a result of this disciplined approach, Frontwave delivered solid financial results in 2025. Total assets grew to $1.7 billion, a 20.7% increase, while total deposits ended the year at $1.44 billion, up 30.1%. Net income totaled $10,671,031, and the Credit Union closed the year with a Net Worth Ratio of 8.91%, remaining well capitalized under regulatory standards. Excluding the Community Valley Bank acquisition, the Net Worth Ratio would have been 10.8%, reflecting the continued strength of Frontwave’s core operations. Strong capitalization protects deposits, supports future growth and enables Frontwave to continue offering competitive rates and services. Members directly shared in this performance. In 2025, Frontwave returned $15,479,860 through dividends, reinforcing the cooperative value of shared success.
Taken together, these results reflect an institution that remains financially sound, carefully managed and focused on long-term stability. The Treasurer and Board remain committed to prudent oversight, transparency and accountability to ensure Frontwave continues to serve Members well into the future. On behalf of the Board of Directors, thank you for the trust you place in Frontwave Credit Union. Safeguarding the institution's financial health and the resources entrusted to it remains our highest responsibility. Amanda Cook Treasurer +5.32% TOTAL MEMEBRSHIP +20.61% TOTAL ASSETS +9.01% TOTAL INCOME
Oceanside Pier
2025 Financial Statements * *
12/31/25 179,119,135 1,042,280,756 62,748,550 113,476,308 (12,418,416) 272,391,003 12,402,229 29,549,294 1,699,548,959 1,443,894,247 52,045,544 99,372,819 (15,605,979) 119,842,328 1,699,548,959 56,081,106 9,349,133 31,664,179 97,094,418 (27,982,336) (27,178,794) (3,072,485) 1,141,445 (6,784,755) 33,217,493 (22,546,462) 10,671,031
12/31/24 120,887,531 778,479,337 61,605,884 120,355,353 (7,714,340) 299,000,822 11,094,747 25,389,465 1,409,098,797 1,109,827,517 52,046,020 88,701,808 (28,734,047) 187,257,500 1,409,098,797 48,256,059 12,781,157 28,030,076 89,067,292 (26,015,998) (24,980,437) (3,153,693) 4,292,720 (6,137,875) 33,072,009 (25,814,960) 7,257,050
Assets Cash, prepaids, receivables & other assets Regular loans to members Visa ® loans to members Purchased loans Less allowances for loan losses Investments NCUA Share Insurance Fund Fixed assets (net) Total Assets Liabilities and Equity Shares of members Reserves Undivided earnings Unrealized gain/(loss) on AFS Investments Other liabilities Total Liabilities & Equity Profit and Loss Analysis Interest from loans Interest from investments Other income Total Income Compensation & benefit expenses Office operating costs Education and promotion Other non-operating income/(expense)
$
$
$
$
$
$ $
Provision for loan losses Available for dividends Less dividends paid Net Income
$
Members 2022 2023 2024 2025
2022 2023 2024 2025 $1,700 $1,430 $1,359 $1,409 Assets (in millions)
124,372 122,555 125,171
131,835
Loans (in millions)
$1,203 $1,086 $1,110 Shares (in millions)
2022 2023 2024 2025
$944 $941 $960
2022 2023 2024 2025
$1,444
$1,219
Capital (in millions)
Net Income (in millions)
$151 $133 $131 $141
$10.67 $4.24 $5.58 $7.26
2022 2023 2024 2025
2022 2023 2024 2025
*This information has been derived from the Credit Union’s annual unaudited financial statements.
Frontwave Give360 brings community support into action. Throughout the year, we partnered with local organizations, small businesses, and volunteers to meet real needs, keep resources local, and deliver measurable impact across the communities we serve.
Frontwave Foundation Hygiene for Humanity
ASYMCA Pendleton Pantry & Neighborhood Exchange
Built and delivered 13,000+ hygiene and comfort kits across the communities we serve.
Two on-base programs serve 840+ military families and deliver 20,000 lbs of food monthly.
Frontwave Pet Adoption Event
Shelter to Soldier Golf Tournament
Helped 70+ dogs and cats find homes, with $14,000 donated to 8 local rescues.
Supported this fundraiser, helping veterans and rescue dogs build life-changing bonds.
Rising Star Scholarships
Oceanside Museum of Art
Oceanside Chamber honors students for character, leadership, and perseverance.
Free year-round admission for military families, named Business Partner of the Year.
13k+ HYGIENE KITS CREATED 70+ PETS ADOPTED 70+ EVENTS SUPPORTED 100+ LOCAL BUSINESSES SUPPORTED
Hygiene kit distribution at Humanity Showers, Oceanside
Community Kickbacks
Oceanside Turkey Trot
Kept dollars local by rewarding Members for supporting neighborhood businesses.
Continued an 18-year tradition of support that brings neighbors together year after year.
Oceanside Leadership Academy
Depot Holiday Express
Helping develop future leaders to serve in a wide variety of capacities in our community.
Created joyful holiday moments and connections for military families at MCRD.
Military Night at Frontwave Arena
Military Night
Honored service by sponsoring Military Night with the Clippers, Sockers and Strike Force.
Hero of the Game
Frontwave Arena Tickets
Recognized everyday heroes with game-night honors, free tickets, and public appreciation.
Gave 5,500+ free tickets to the local community, including 4,000 for military and veterans.
Frontwave HQ, Rancho Del Oro
Supervisor Committee
The Supervisory Committee provides independent oversight to ensure Frontwave Credit Union operates safely, responsibly and in accordance with regulatory requirements. Our role is to safeguard assets, monitor internal controls and confirm that financial reporting accurately reflects the Credit Union’s condition. The Committee is composed of volunteer members who operate independently of management. We regularly review financial reporting, verify membership account balances and assess compliance with applicable laws, regulations and Board policies. We also oversee the work of independent auditors to ensure objective review and accountability.
Independent Audit and Financial Review
Ongoing Oversight and Accountability
In 2025, the Supervisory Committee engaged SingerLewak LLP, an independent certified public accounting firm, to audit Frontwave Credit Union’s financial statements. In their opinion, the financial statements present fairly, in all material respects, the financial position of the Credit Union as of December 31, 2025. The results of operations and cash flows for the year were found to be in conformity with Generally Accepted Accounting Principles (GAAP). The financial statements included in this Annual Report reflect activity from January through December 2025 and are unaudited. Based on our review and oversight, the Supervisory Committee is satisfied that these records accurately reflect the Credit Union’s financial condition and that Frontwave continues to operate with strong internal controls.
Beyond the annual audit, the Supervisory Committee conducts ongoing monitoring throughout the year. This work supports transparency, accountability and consistent adherence to regulatory standards and internal procedures.
Appreciation and Acknowledgment
The Supervisory Committee thanks the Board of Directors, executive leadership, management and staff for their cooperation and commitment to sound operations. We also thank the Members of Frontwave Credit Union for the trust and confidence they place in the institution.
Robert Ross Chairman, Supervisory Committee
ry e Report
$295K GIVEN BACK
TO OUR LOCAL COMMUNITIES
68,550 HOURS OF FINANCIAL EDUCATION TO OUR LOCAL COMMUNITIES 119,578 MARINE CONNECTIONS 200+ MILITARY & LOCAL ORGANIZATIONS SUPPORTED TO OUR LOCAL COMMUNITIES
800.736.4500 FRONTWAVECU.COM
Joshua Tree National Park
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