Fall 2021

Uniquely partnering to

make lifersquos journey easier

C O N T E N T S

02 The housing market is

beginning to stabilize but does

that mean it is a good time to

buy Read our analysis

03 See whatrsquos ahead for the credit union including our new office in Centreville and an exciting electric vehicle promotion

04 Read the first edition of our new trivia section called Did You Know with 10 fun facts about money

Fall is a time to reflect on the past year and begin thinking about the year ahead Your Board of Directors met with the Executive Team for our first in-person annual planning session since 2019 this month where we reviewed our results over the past five years and noted the tremendous response we are getting with the changes we have made I am happy to share that while our peer credit

unions are seeing a decline in membership we continue to grow at an average of 6 per year As we look ahead into 2022 we are reviewing and assessing all opportunities to ensure that we have the scale and capabilities to serve you well into the future September marked our 46th year of serving our members and their families Thank you for your continued confidence in us and promoting us to your friends and family

ldquoBecause of COVIDrdquo In our world today that phrase seems to be the answer to all questions asked when it comes to lack of service product availability and cost increases Unfortunately that is the same phrase that we are hearing regarding the delays in delivering our new Centreville officersquos furniture (see page 3 for more informa-tion) Our renovations are complete and we are excited to have another grand opening celebration But we need furniture In the interim our member service representa-tives continue taking your phone calls and serving you from the existing location

Thank you for being member-owners

Sincerely

Ray CrousePresidentCEO Parsons Federal Credit Union

PresidentCEO Message

We are excited to announce Allen H Gharapetian joining Parsons FCU as our new Vice President of Marketing Allen will be responsible for our overall marketing

strategy and oversee all marketing and communication activities designed to enhance the experiences of both members and employees

ldquoAllen comes to us with a strong executive management background in consumer marketing product innovation and business developmentrdquo stated Ray Crouse PresidentCEO of Parsons Federal Credit Union ldquoWe believe that Allenrsquos experience knowledge and impressive track record will have a critically positive impact on our efforts to identify and develop new opportunities and expand our reachrdquo

Allen brings over 20 years of marketing and business experience focused in high-tech high-touch industries including software Software as a Solution (SaaS) Human Machine Interface (HMI) intellectual property and personal electronics Prior to joining Parsons FCU Allen has held senior executive marketing roles at public and private companies such as Clarion Faurecia Electronics SRS Labs Targus Group Memorex and Yamaha Electronics

Allen holds a Master of Business Administration from the prestigious Thunderbird School of Global Management at Arizona State University (ASU) Phoenix Arizona He is an avid World Traveler and is a modern classic car enthusiast amp collector

A New Executive Joins Our Team

Tumultuous TimesFor nearly 18 months the housing market has been among the hottest in

the nations history The pandemic has been fueling the market with the sudden shift to remote work and pandemic-induced low mortgage rates Add in a demographic wave of first-time homebuyers rushing to the market and an uncharacteristic cautiousness by existing home owners deciding to delay selling and moving to their next homes and itrsquos not difficult to realize why the median home list price has appreciated by 23 since the start of the pandemic

However as life begins to slowly return to a version of the pre-pandemic normal a good deal of the exuberance that fueled the market has finally left the market Since bottoming out early this year housing inventory is up 30 as some homebuyers start to balk at record prices and more sellers are listing perhaps concerned about losing out on big gains In addition the fear that central bankers may raise interest rates sooner than expected and the end of federal pandemic protections programs such as the mortgage forbearance program are contributing to the downturn

A Balanced ForecastWhile home prices are not expected to fall were headed for slower growth

Between CoreLogic forecasting a conservative 27 appreciation and Freddie Mac projecting a loftier home price growth of 53 in 2022 the bustle of the pandemic-era housing market is gone But how can home prices keep rising after posting such large gains It all comes down to supply and demand Wersquore in the middle of the five-year period during which the largest chunk of millennials those born between 1989 and 1993 are hitting their thirties the age when first-time home buying really kicks into gear Meanwhile housing supply is simply outmatched Thanks to the 2008 housing bust homebuilders have not been building aggressively enough to meet the needs of this demographic wave As a result the US is now under-built by around 4 million homes according to a recent analysis by Freddie Mac

The housing market regardless has become more stable thanks to these fundamental economic forces starting to become relevant again So if you are thinking of buying your first house or getting ready to move to a new home the next 6 months will probably be a good time to act Rates are still at historic lows housing supply is improving sellers are more motivated to sell and the pandemic era anomalies are waning So act now and get pre-approved for a mortgage loan by calling one of our montage specialists today at (800) 765-4527 We are here and always happy to help you anytime and anywhere as you go through your lifersquos journey

Stability Returns to the Housing Market

We are excited to announce Allen H Gharapetian joining Parsons FCU as our new Vice President of Marketing Allen will be responsible for our overall marketing

strategy and oversee all marketing and communication activities designed to enhance the experiences of both members and employees

ldquoAllen comes to us with a strong executive management background in consumer marketing product innovation and business developmentrdquo stated Ray Crouse PresidentCEO of Parsons Federal Credit Union ldquoWe believe that Allenrsquos experience knowledge and impressive track record will have a critically positive impact on our efforts to identify and develop new opportunities and expand our reachrdquo

Allen brings over 20 years of marketing and business experience focused in high-tech high-touch industries including software Software as a Solution (SaaS) Human Machine Interface (HMI) intellectual property and personal electronics Prior to joining Parsons FCU Allen has held senior executive marketing roles at public and private companies such as Clarion Faurecia Electronics SRS Labs Targus Group Memorex and Yamaha Electronics

Allen holds a Master of Business Administration from the prestigious Thunderbird School of Global Management at Arizona State University (ASU) Phoenix Arizona He is an avid World Traveler and is a modern classic car enthusiast amp collector

A New Executive Joins Our Team

Tumultuous TimesFor nearly 18 months the housing market has been among the hottest in

the nations history The pandemic has been fueling the market with the sudden shift to remote work and pandemic-induced low mortgage rates Add in a demographic wave of first-time homebuyers rushing to the market and an uncharacteristic cautiousness by existing home owners deciding to delay selling and moving to their next homes and itrsquos not difficult to realize why the median home list price has appreciated by 23 since the start of the pandemic

However as life begins to slowly return to a version of the pre-pandemic normal a good deal of the exuberance that fueled the market has finally left the market Since bottoming out early this year housing inventory is up 30 as some homebuyers start to balk at record prices and more sellers are listing perhaps concerned about losing out on big gains In addition the fear that central bankers may raise interest rates sooner than expected and the end of federal pandemic protections programs such as the mortgage forbearance program are contributing to the downturn

A Balanced ForecastWhile home prices are not expected to fall were headed for slower growth

Between CoreLogic forecasting a conservative 27 appreciation and Freddie Mac projecting a loftier home price growth of 53 in 2022 the bustle of the pandemic-era housing market is gone But how can home prices keep rising after posting such large gains It all comes down to supply and demand Wersquore in the middle of the five-year period during which the largest chunk of millennials those born between 1989 and 1993 are hitting their thirties the age when first-time home buying really kicks into gear Meanwhile housing supply is simply outmatched Thanks to the 2008 housing bust homebuilders have not been building aggressively enough to meet the needs of this demographic wave As a result the US is now under-built by around 4 million homes according to a recent analysis by Freddie Mac

The housing market regardless has become more stable thanks to these fundamental economic forces starting to become relevant again So if you are thinking of buying your first house or getting ready to move to a new home the next 6 months will probably be a good time to act Rates are still at historic lows housing supply is improving sellers are more motivated to sell and the pandemic era anomalies are waning So act now and get pre-approved for a mortgage loan by calling one of our montage specialists today at (800) 765-4527 We are here and always happy to help you anytime and anywhere as you go through your lifersquos journey

Stability Returns to the Housing Market

Are You Ready For Electric Vehicles We AreA New Market

As of December 2020 IEA (International Energy Agency) estimates that more than 10-million electric vehicles (EV) were sold globally since the first generation of modern electric cars hit the market a decade ago Currently the US EV market lags behind Europe with EV sales growing 81 in US in 2019 then staggering by 39 in 2020 due to the impact of the pandemic and the discontinuation of some of the Federal and State EV incentives

According to myevcom nearly 80 of all new electric cars sold new in 2020 were leased compared to 30 for regular all-gas vehicles The main reason for the higher lease rate on EVs is the fact that they are generally more expensive than gas vehicles sometimes by as much as 30 Smaller payments when leasing a vehicle and in case of EVs aided significantly by state and federal incentives (claimed directly by the dealers and applied to the down payment when leasing) have made leasing EVs very attractive However the Federal incentives have morphed now into less attractive tax credits (for those who qualify) and to claim state incentives multiple new qualification factors must be met making them harder to claim not just by dealers but also by individuals Good news though is that the EV manufacturing costs are continuously dropping which will translate to improved affordability

The Future of CarsWith the above in mind the growth of the EV market will

most certainly continue in the foreseeable future powered by the new generationrsquos desire to do their part to improve

our planetrsquos health as well as attractive financial models that improve affordability after government incentives disappear Notably many carmakers have committed to introducing new EV models of their popular cars (such as Fordrsquos bestselling F150) while others such as Volvo Jaguar and Bentley have publicly stated that by the end of the decade will only be selling EVs The latter will be a significant catalyst to hasten the growth of the EV market

We believe that these factors along with the already large pool of pre-owned Battery Electric (BEV) and Plug-in Hybrids (PHEV) vehicles will translate to a higher number of EVs being ldquopurchasedrdquo versus ldquoleasedrdquo That will provide us with an opportunity to step in and help our members purchase EVs by offering them exclusively advantageous rates and terms

Member-Exclusive Offer

Parsons FCUrsquos special electric vehicle purchase program starting October 1 2021 offers our members

bull A limited introductory rate as low as$199 APR for the purchase of new andpre-owned BEV and PHEV models

bull Minimum financing term of 48-months

bull Financing available for all new andpre-owned EV and PHEV models listed onwwwfueleconomygov

Interested Please call us at (800) 765-4527 to learn more about the program today

APR=Annual Percentage Rate Click here to view full terms and conditions

The Countdown is OnWe are excited to share that our all-new branch office in Centerville VA is nearing completion In November we will be able to welcome new and existing members to our new facility To celebrate this milestone we have a few surprises lined-up including a sensational Grand Opening event Please stay tuned for more details in the weeks to come In the meantime our current Centerville branch remains open and ready to take care of all your needs

Log in to online bankingEnroll in online banking and log in at least once a month through your computer or mobile device

1Enroll in e-statementsWhen you open your account sign up to have your monthly account state-ment emailed to you

2Swipe your debit card 12xmonthCharge anything on your debit card - from your groceries to your gas tank fill-up to your coffee3

$

Earn 300 APY or 3 Cash Backin 3 Simple Steps With Kasasa

Earning high dividends and incredible perks like unlimited ATM fee refunds nationwide is as easy as 1-2-3 With Kasasa Cashreg and Kasasa Cash Backreg checking accounts members can save and spend how they want with no monthly balance fees amp no minimum balance requirements There are even no penalties for not qualifying Earning your rewards is easy just follow 3 simple steps

For questions or comments about this newsletter please contact marketingparsonsfcucom or call 8007654527

Published quarterly by Parsons Federal Credit Union PO Box 90667 Pasadena CA 91109-0667

Your savings are insured up to $500000 through a combination of federal insurance by the National Credit Union Administration a US government agency and private insurance by American Share Insurance

Did You Know Starting with this edition we plan to share with yousome fun facts and trivia to add to your knowledge This quarter wersquore focusing on money

1) The typical lifespan of a $1 bill is just 18 months whilethe lifespan of a $100 bill is close to 9 years

2) The US Secret Service was created in 1865 to fightcounterfeiting By the end of the Civil War 33-50 ofall US paper currency in circulation was counterfeitToday the most counterfeited denomination ofmoney is the $20 bill

3) Before the federal reserve in 1913 each bank printedits own money

4) More than half of lottery tickets sold are bought by 5of the population

5) More Monopoly money is printed in a given year thanmoney in the entire world

6) A penny costs more to manufacture than it is worthIt costs the government roughly $002 to make asingle penny

7) Rats like to eat money Notorious drug traffickerPablo Escobar had so much money in his ware-house that rats ate roughly $1 billion of the moneystored there

8) The average person has $56 of loose change intheir house On an unrelated note the averageallowance for a kid in America is $65

9) Only 8 of the worldrsquos currency is actual physicalmoney The majority of transactions are all donedigitally so no physical currency exchanges hands

10) There are over 16 million ATMs in the world Thereis even one in Antarctica

Source moneysmartguidescom

To learn more about the unique benefits of opening a Kasasa Checking account you can speak to a representative by calling (800) 765-4527 or visit our website at wwwparsonsfcuorgcheckingAPY = Annual Percentage Yield Terms and conditions apply Click here for more information