2ND QUARTER NEWSLETTER • JULY 2013

1 Message from the Chairman | Teens: Understand Your Summer Paycheck 2 Message from the COO |

Summertime Drive to Safety | Community Photos 3 Advertising 4 Share Rates | 2013 Holiday Schedule |

Member Center Locations & Contact | Other CU Services | ATM Locations

Buenas yan Hafa Adai,

As we enter the second half of the year, I want to thank our staff and management for the accomplishments achieved in the first and second quarter. In January, we launched Guam’s only free interest-bearing checking account, undoubtedly the most beneficial checking account on island with zero fees or minimum balance requirements. In February, we announced new, lower rates on personal and auto loans, which were some of the lowest on the island.

April was a busy month as our staff and volunteers put together this year’s Annual Election and Membership Meeting. May was an exciting month as we sent a lucky member and a friend to Hollywood, California to watch the American Idol finale as part of a checking promotion with Fox6. We also launched Coast Online, bringing our members’ online banking experience to a whole new level with a new look and upgraded features.

To close off the exciting accomplishments of the first half of the year, I’m proud to announce that Coast360 Federal Credit Union was rated “A” by Kroll Bond Ratings for the first and second quarters of 2013. Kroll Bond Rating Agency is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Organization. This rating indicates that your credit union is in strong financial condition being well-capitalized, liquid and profitable.

As you can see in our accomplishments thus far, the staff and management of Coast360 continue to work keeping our “member helping member” philosophy at the forefront. I am honored to serve as your Chairman of the Board and look forward to our continuing success this year.

Si Yu’os Ma’ase,

Paul Leon GuerreroChairman of the Board

Teens: Understand Your Summer PaycheckEver wonder what happens to the money in your paychecks from your summer job? You'll soon find out that you're not the only one who has claims on what you earn!

Example: You work 25 hours over a two-week pay period. Your pay is $8.24 an hour. You figure you should see $206 on your paycheck, right?

Sort of. But not in your pocket. There's a big difference between gross income—or your hourly rate times the hours you work—and net income, or the money you put in your pocket—your take home pay.

Your gross income is reduced by deductions. Look at your pay stub—the earnings statement—attached to your check. It includes:

• Your identification information • The dates of the pay period • Your gross income • All your deductions, which include taxes and FICA • Your net income

You can't control all the factors that lead to paycheck deductions, but you can do two things to raise your pay, one for now and one for later:

For now—Keep your eyes open for opportunities to take on more responsibility. Your boss may show appreciation for your enthusiasm by promoting you. Even if that doesn't happen, you are building a good work ethic and developing skills that could lead to better pay in your next job.For later—Make smart decisions about your education. Staying in school increases your chance of earning more money in life. Take the same attitude to school that you take to work: Show up on time, do your job, and be polite.

As you look to future classes, look for ways to earn extra credit, take advanced placement courses, form relationships with your teachers, and volunteer for school events. All of these can "pay off" with good grades, possible career experience, and excellent letters of recommendation for college.

Want more money now? Save some. Coast360 offers an absolutely free checking account. With a Coast360 checking account, there are no hidden fees or minimum balance requirements. You can also consider growing your money with Coast360’s Club Savings account. With one of the highest earning rates in the market, you’re able to get the most out of your money. Call 477-8736 for more information.

Message from the

CHAIRMAN

Hafa Adai!

It is an honor and privilege to relay this quarter’s CEO message while Mr. Northey takes his well-deserved leave.

The highlight of our credit union’s second quarter activities, as always, was our Annual Membership Meeting and Election of Board Members. This year’s results welcomed Angelita P. Mendiola as the newest member to our Board of Directors. We also welcomed back John Taitano and Vicente Concepcion. Thank you to our staff and volunteers who planned and executed this year’s events. Your diligence and teamwork were clearly evident by the smooth processes experienced at each of our centers throughout the day. And thank you to all our members for participating in the election process, as this democratic process is one of the key values that set credit unions apart from banks and other financial institutions. Your continuous loyalty and contributions to our credit union are primary factors in the success of our credit union.

It has also been an exciting second quarter for credit union operations as well. On May 9th, we launched Coast Online, our new online banking platform, which now provides members with a vast menu of convenient features, all totally free. Members are now able to open subaccounts; make and schedule future, one-time, and/or recurring member-to-member transfers; pay bills online via Coast ePay, our bill pay solution; transfer funds to other financial institutions via ACH channels; pay loans, including mortgage loans online; and manage your finances with Coast ePlan, our budgeting tool that integrates and displays your bank accounts all in one screen. Along with our launch of Coast Online, we rebranded and enhanced our eServices product line – Coast by Phone (automated phone banking), Coast ePay (bill payment), Coast ePlan (budgeting tool). Enroll now, and experience effortless and convenient banking with Coast Online.

We’ve kicked off the summer with our Sizzling Summer Loan at 4.99%APR, one of the lowest rates on the island today. Whether your plans for the summer include taking a vacation, renovating your home, or consolidating your loans, the Sizzling Summer Loan can help get you started. Visit our centers and apply today.

The first six months have been exciting for the credit union and we look forward to the second half of this year with you, our valued members. There is more in store as we work to nurture our relationships with you to provide quality products and exceptional service.

Together We Thrive!

Un Dangkulu Na Si Yu’us Ma'åse',

Monica L. PidoChief Operations Officer & Acting CEO

■ Coast360 donates $2000 to support Sanctuary Inc.’s Youthfest 2013.

■ Coast360 teaches students how to save at this year’s Youth for Youth at the Hyatt.

■ Opening new accounts for students at UOG Charter Day.

■ Coast360 donates $4000 to the American Cancer Society as this year’s Onsite Activities sponsor.

No season drives home the importance of auto safety more than summer--prime time for driving and for road construction. Add the variables of intense heat and sudden rainstorms, and you’ve got greater potential for hazardous driving conditions.

Of course, you can’t control traffic, road repairs, or the weather, but there’s plenty you can do--with your car, its occupants, as well as your trip preparation--that can contribute to safe summer driving.

The VehicleYou can prevent many breakdowns by taking your vehicle to a qualified mechanic in advance. It’s also wise to give the car a check up at least once yourself before your trip. Pay particular attention to:

* Tires--Check for proper inflation, excessive or uneven wear, and the condition of the spare.* Fluids--Top off the levels and check occasionally. * Belts and hoses--Watch for signs of wear. * Battery--Test it.* Brakes--Get them inspected .* Emergency kit--Pack a flashlight, jumper cables, first-aid kit, blanket, extra water, mobile phone, and warning devices.* Wipers--Replace blades that don’t clear the windshield.* Headlights, taillights, brake lights, signal lights that they work.

The Driver and PassengersThe objective is to make everyone comfortable and secure so that the driver can focus on driving. Specific considerations:

* Rest--Make sure the driver(s) will be alert. * Restraints--Buckle up everyone; place children in appropriate seats in the back (http://www.seatcheck.org).* Minimize distractions--Bring games, books, music, and snacks to occupy younger travelers; let a passenger navigate and use the cell phone.* Keep hydrated--Drink plenty of water.* Take breaks--Stop every couple of hours to refresh everyone, refuel, check the oil, and get more water.

The ConditionsAnticipation plays a key role in safety. That’s why it pays to call ahead, use the internet, or check with an auto club such as AAA (aaa.com) to find out about traffic and road closures (fhwa.dot.gov/trafficinfo), and weather (nws.noaa.gov) scenarios into which you’ll be driving.

For updates while you travel, tune your car radio to a station that provides regular weather and traffic reports. And if you can’t avoid such conditions, be mindful of how to drive in them. Some tips:

* Construction--Slow down and expect sudden stops, obey signs and signals, and watch out for construction workers and equipment.* Rainstorms--Slow down and increase following distances, use windshield wipers, defrosters, low-beam headlights, and avoid standing water. (nsc.org/safety_road) * Traffic--Maintain safe speeds and following distances, avoid others’ blind spots, use your signals, and keep calm.

No matter where your travel plans might lead you, Coast360 Federal Credit Union can help.

Message from the

COO Summertime Drive to Safety

Your savings federally insured to at least $250,000 and backed by the full faith and credit of the UnitedStates Government. National Credit Union Administration, a U.S. Government agency. The insurancelimit was permanently increased to $250,000 per individual depositor on September 17, 2010.

ACH (transfer funds to any financial institution) Free!

Member-to-Member Transfers Free!

Check Imaging Free!

Coast ePay (bill pay)* Free!

Coast ePlan (money management tool) Free!

Enroll today! Call 477.8736 for more information.

*Checking account required.

Coast Online Another convenient way for our members to bank.

*APY (Annual Percentage Yield) for Christmas Club is 1.25% and is subject to change without notice. Yields are effective December 24, 2012. Penalty will be assessed for early withdrawals. Other restrictions apply. Must maintain $5 minimum in CU Savings account. Call for more details.

Your savings federally insured to at least $250,000 and backed by the full faith and credit of the UnitedStates Government. National Credit Union Administration, a U.S. Government agency. The insurancelimit was permanently increased to $250,000 per individual depositor on September 17, 2010.

We make savings easy.

It may seem hard to save money these days, but it doesn’t have to be. We’ll show you how easy it is to put money away when you sign up for a Coast360 Christmas Club Account.

Call or visit any of our convenient Member Centers today.

Year-round enrollmentFunds available in OctoberNo monthly feesEarn high yields$5 Minimum opening deposit

Some restrictions may apply.

Your savings federally insured to at least $250,000 and backed by the full faith and credit of the UnitedStates Government. National Credit Union Administration, a U.S. Government agency. The insurancelimit was permanently increased to $250,000 per individual depositor on September 17, 2010.

■ Up to $25,000■ No processing fee■ Terms up to 60 months■ Decision within 24 hours

*(APR) Annual Percentage Rate as of February 1, 2013. Terms up to 60 months. Rates and conditions are determined by the Asset and Liability Committee (ALCO) and are subject to change without notice. Subject to credit approval. Other terms and conditions may apply.

4.99%APR*

As low as

SizzlingSummerLoan

Apply today! See any MemberRelations Associate for details.

Independence DayThursday, July 4, 2013

Liberation Day Sunday, July 21, 2013

(observed July 22)

Labor DayMonday, September 2, 2013

Maite Member Center450 Route 8

Maite, GU 96910

Harmon Member Center1757 Army Drive, Route 16

Suite 105/106Harmon, GU 96929

Tamuning Member CenterPaul’s Plaza

541 S. Marine Corps Drive,Suite 105

Tamuning, GU 96913

Call Center671.477.8736

Go Green, use our memberservice online!

■ Coast by PhoneCall 671.477.1148

Access to account 24/7■ Coast ePay

Pay all your bills online■ Coast Online

Click away and performthe banking services you

wish to complete■ Coast ePlan

Money management tool

For more information, visit ourwebsite at coast360fcu.com

2013 HOLIDAY SCHEDULE

MEMBER CENTERLOCATION & CONTACT

OTHER CU SERVICES

Circle K StoresAgat | Airport Road | Anigua | Barrigada | Dededo | Malojloj | Sinajana

Other LocationsTGIF, Tumon | The Plaza (Tumon) | Guam International Airport | Guam Memorial Hospital | Agana Shopping Center | Guam Community College | GPO | Micronesia Mall Food Court | Shell Chalan Pago | UOG Student Center | Hafa Adai Market | King’s Restaurant (Harmon) | Shared Branching Network*

*Visit our website for more information: coast360fcu.com

SHARE RATES

ATM LOCATIONS

Share Programs APY*

IRA Accounts

Share Programs APY*

CU Share Savings Minimum $5.00 required to establish account 0.30% Overdraft Protection (ODP) Savings 0.30%

CU Nothing Checking No minimum required to establish account 0.25%

CU Club Account (Tax and Christmas) Minimum $5.00 required to establish account 1.25%

CU Time Shares Minimum $500 required to establish account 3 months................................................................0.35% 6 months................................................................0.40% 9 months................................................................0.45% 12 months..............................................................0.50% 18 months..............................................................0.60% 24 months..............................................................0.65% 36 months..............................................................0.75% 48 months..............................................................0.95% 60 months..............................................................1.05%

CU Jumbo Time Shares Minimum $100,000 required to establish account 3 months................................................................0.45% 6 months................................................................0.80% 9 months................................................................0.90% 12 months..............................................................1.00% 18 months..............................................................1.10% 24 months..............................................................1.20% 36 months..............................................................1.30% 48 months..............................................................1.35% 60 months..............................................................1.45%

CU Money Fund Plus Minimum $2500 required to establish account $2,500.00 to $9,999.99..........................................0.25% $10,000.00 to $24,999.99......................................0.30% $25,000.00 to $49,999.99......................................0.35% $50,000.00 to $99,999.99......................................0.40% $100,000.00 and Over..........................................0.45%

*All rates are expressed as annual percentage Yields and are subject to change without notice. Yields are effective December 24, 2012. Minimum amount required to open the following accounts are: CU Time Shares $500.00, CU Jumbo Time Shares $100,000.00, IRA $25.00, CU Muney Fund Plus $2,500.00. Early withdrawal penalties apply. Applicable fees may reduce the earnings of the account. Products and services offered and available for qualified members.

LOAN PROGRAMS CU At Home**..............................................Now Available 1st Mortgage .......................................Now Available Construction.........................................Now Available Refinance ..............................................Now Availabe Home Equity.........................................Now Available Regular Loans...........................................as low as 4.99% Line of Credit..............................................as low as 8.99% Shared Secured Loans...........................as low as 2.00% above dividend rate Motorcycle Loans....................................as low as 7.99% New Auto Loans.......................................as low as 2.95% Used Auto Loans......................................as low as 4.50%

* APR - Annual Percentage Rate. Rate as of February 01, 2013. Financing for up to 84 months. 100% financing available only to approved buyers. Auto loans up to five model years or newer. Autos purchased within the last 6 months may be considered as New Auto. Rates and conditions are determined by Asset and Liability Committee (ALCO) and are subject to change without notice. Subject to credit approval. Certain restrictions apply. Call 477-8736 or contact us at www.coast360fcu.com. Direct deposit payment highly recommended.

** Specific loan programs may have qualifying areas such as income, credit,Ioan to value ratios, length of employment property type, etc. Rate and program guidelines are subject to change without notice. There is no guarantee that all loans meeting published guidelines will be approved. Certain restrictions may apply. Call 477-8736 for details.

IRA Traditional /ROTH/Coverdell ESA 0.30% 12 months..............................................................0.50% 24 months..............................................................0.65% 36 months..............................................................0.75% 48 months..............................................................0.95% 60 months..............................................................1.05%

IRA Jumbo Traditional /ROTH/Coverdell ESA 12 months..............................................................1.00% 24 months..............................................................1.20% 36 months..............................................................1.30% 48 months..............................................................1.35% 60 months..............................................................1.45%