2017 Annual Report. Celebrating 65 years. Federally insured by NCUA.

Transcription

1 2017 Annual Report Celebrating 65 years Federally insured by NCUA.

2 President s Message Steve Kenny President & CEO A commitment to our vision. Since the founding of our credit union 65 years ago in 1952, we ve worked toward our vision of being the most trusted, respected and sought-after financial institution, providing innovative solutions and support for our employees, members, and communities we serve. Columbia Credit Union now serves nearly one out of every three households in Clark County and more than 90,000 members has been a year of hard work, measurable growth and outstanding service. Celebrating our growth and service. I m happy to report that in 2017 we crossed the bridge to open our first new branch in Oregon. Our Buckman branch in Southeast Portland is a great addition to our 12 Clark County branches and provides additional convenience and service to our members. Our credit union continues to safely and solidly operate with year-end capital (or net worth) at 11.71% which is well above the industry standard. Our assets grew 6.8% in 2017, bringing total assets to $1.312 billion. During the year, deposits and loans grew too. We added $57.9 million in deposits and loans grew 14.7% ending the year at $1.083 billion including provision for loan loss. 2

3 Technology increases convenience. With a focus on advancing technology to make life better for our members, we accomplished many great things in We introduced an enhanced Business Online Banking platform, replaced the ATM at our Cascade Park branch, and added CardValet and ClickSWITCH. If a member misplaces their debit card, they can use the CardValet app to turn the card off from their smart phone. With the online tool ClickSWITCH, members easily convert their direct deposits and bill payments from another financial institution to Columbia Credit Union. Making life better in the year ahead. We re upgrading a few more ATMs in 2018 and celebrating our second branch in Battle Ground at the busy intersection of SR-503 and Scotton Way. Our Scotton Landing branch features safe deposit boxes, two drive-up lanes and a third lane for night deposit and ATM convenience. Speaking of convenience, in 2018 we re adding a loan production office in downtown Portland. Several of our commercial lenders, their support staff, and treasury services will office here. This space s conference room and hoteling will make it easy a one-stop shop for area businesses, on both sides of the river, to partner with Columbia CU. Looking forward, we ll continue to seek growth opportunities to expand our market, while creating partnerships with organizations that support our local community. We ll continue to provide our members with services they need by focusing on the needs of working families, their children and their businesses. In 2018, we ll also continue to offer affordable borrowing solutions for consumer, mortgage and business needs was a successful year of growth, giving back, and preparing for the future. Thanks to our directors and staff for all their hard work in helping the credit union build on a strong foundation to reach new levels of success. And, special thanks to our members for their continued support of Columbia Credit Union. 3

4 Chair s Report Al Schauer Board Chair A dedicated and focused team Columbia Credit Union is a top performing financial cooperative guided by its management and Board of Directors to serve our members and support our communities. I m honored to serve as part of this strong and dedicated team, as the Board Chair. I ve been a Columbia CU member since 1979 and I m proud to be part of an institution that s financially healthy and focuses on important core values: ethics, members, cooperation, innovation, education and community. Adapting to our members needs. Much of Columbia CU s strength is demonstrated in its ability to adapt to our members diverse and evolving needs. Online banking, mobile banking and bill pay are just a few of the important services that help enhance the member experience, with fast, easy and convenient digital service delivery. We work to ensure the products and services offered are relevant to our members and we continue to provide outstanding personal member service through our 13 community branches, member service call center, online & mobile chat feature and even a few questions are answered through social media connections, like Facebook! 4

5 Financial strength and achievements. Columbia CU s financial strength and high levels of member, employee and community satisfaction are celebrated with the awards Columbia CU received in 2017: The Columbian s 2017 Best of Clark County (Credit Union and Financial Services) Vancouver Business Journal s 2017 Best in Business Bauer Financial s Star Rating DepositAccounts.com s Top 200 Healthiest Credit Unions in America (A+ Health Rating) Weiss Ratings Recommended Rating Clark College Foundation s 2017 Presidential Award Portland Business Journal s 2017 Corporate Philanthropy Award Peter Barron Stark s Best of the Best Award for Workplace Excellence As we look ahead, Columbia Credit Union will continue to grow and evolve to meet the needs of our members. We ll always remain focused on our institution s mission, vision and core values. 5

6 2017 Member Connections Remote Deposits Made: 74,333 transactions totaling $33,377,336 Call Center Calls: 190,976 Online Chats: 5,691 Branch Transactions: 1,447,740 ATM Transactions: 60,797 Deposits 478,326 Withdrawals Facebook Followers: 16,200 (at year-end) 6

7 Asset Growth 2016: $1.229 Billion in Assets 2017: $1.312 Billion in Assets 6.8% increase Lending Line Growth Consumer Home $545.4 million $626.0 million $220.9 million $242.3 million Business $211.5 million $177.2 million

8 Columbia Credit Union is proud to celebrate 65 years of serving our members and communities. We ve come a long way since our beginning in 1952 as SP&S Federal Credit Union, serving railway employees out of the Treasurer s basement. By 2017, we gained more than 91,000 members, had more than $1.3 billion in assets, and expanded to 12 branches in Clark County, Washington plus one in Portland, Oregon. Throughout our history, some things have stayed the same, like our commitment to our core values of being member driven and community minded. We ve always focused on making life better and supporting the health and well-being of the neighborhoods where our members live and work. 8

9 Our Community Commitment Since our founding 65 years ago, the communities we serve have been very good to us. And, we ve made a point of returning that favor. Being community-minded is one of our core values. This means we strive to be a socially responsible organization and help strengthen the neighborhoods where our members and employees live, work and play. Our commitment is more than giving financial support. In addition to building partnerships with local organizations, our management team also gives their time to help make life better. + 1,521 Management Volunteer Hours Spreading holiday cheer to residents at a local retirement center. Family fun at Vancouver s Downtown Pedals. + $312k Donated 80 Nonprofits = Collecting food for the hungry. Community Service Awards: Honoring local veterans and military personnel during Heroes Night. Clark College Foundation s 2017 Presidential Award Portland Business Journal s 2017 Corporate Philanthropy Award Foundation for Vancouver Public School s Honorary Community Champion $6.3 Million Raised by & for Community Organizations 9

10 65 Years of Convenience Making Life Better in Portland In 2017, we crossed the bridge over the Columbia River and opened our first Oregon branch in the Buckman neighborhood of SE Portland. As part our pledge to be a great neighbor, we committed to give up to $50,000 to five local nonprofit organizations that participated in our $50k Buckman Giveaway. Albertina Kerr provides services for children, families and adults In 2017, Columbia Credit Union proudly celebrated our 65th year of service. We have a long history of putting members first and making life better in the communities we serve. SP&S Federal Credit Union was created in We officially became Columbia Credit Union in 1975, and membership opened up to anyone who lived or worked in Vancouver, Washington. In 1980, we opened our first branch at Tower Mall. In 2002, our charter expanded to serve all of Washington and in 2016, our service area expanded into Oregon s Clackamas, Marion, Multnomah and Washington Counties. We now have 13 branches. Family members living or working in these communities, as well as businesses, are eligible for membership. At Columbia Credit Union, we ve always been focused on providing our members with the financial products and services they need to succeed. In 1976, we were the first credit union on the West Coast to offer checking accounts. We began offering IRAs to our members in 1974, added CDs in 1978, and Money Markets in We offered VISA Credit Cards in 1984, the same year our first ATMs were installed at our Downtown, Tower Mall and Hazel Dell branches. Over the years, advancements in technology have made great changes to banking. Financial transactions used to be conducted in-person at a branch during banking hours. Today, our members can also use their computers and mobile devices to bank, make that Columbia anywhere, anytime it s convenient for them. Assistance is available by phone, or online & mobile chat. Keeping our digital services secure and current, and adding new app features is a routine part of the great service we provide our members. These are exciting times for Columbia Credit Union as we reflect upon our past 65 years of service and look forward to a future of continued growth and success. We ve been putting members first since 1952 and will continue to do so. facing mental health challenges and developmental disabilities. Buckman Arts Focus Elementary School helps ensure our children continue to get the rich and diverse education they deserve. Feral Cats Coalition of Oregon provides a low-cost spay and neuter program and has helped over 85,000 cats. Meals on Wheels People delivers nutritious meals to those in need because no senior should go hungry or experience social isolation. Willamette Riverkeeper helps protect our mighty Willamette River and its habitat so it s safe for fishing and recreation. 1952: SP&S Federal Credit Union Charter 7942 was organized to serve railway employees. 1958: The CU moves from the treasurer s basement to its first office. BNFC 1972: The CU changes its name to BN Federal Credit Union and had 8 employees. 1974: IRAs are first offered to members. 1975: The CU expands to a community charter and membership opens to anyone who lives or works in Vancouver & Jantzen Beach/ Hayden Island. We re now called Columbia Community Credit Union. 1976: We re the first CU on the West Coast to offer checking accounts. 1978: Certificate Accounts first offered to members. 1980: Our second branch opens in Tower Mall. 1982: Money Market Accounts are first offered to members. 1983: Hazel Dell branch opens. 1984: Visa Credit Cards are first offered to members. 1984: Our first ATMs are installed at our Downtown, Tower Mall and Hazel Dell branches. 1986: Cascade Park branch opens. 1987: Orchards branch opens. $100 MILLION 1990: We reach $100 million in total assets. 1990: Salmon Creek branch opens. 1992: Fourth Plain and EastRidge branches open. 1993: Cascade Park branch relocates. 1996: We move into the newly completed Operations Center building. 1998: Our charter expands to serve all of Clark County. 1999: Hazel Dell branch relocated. 2000: Battle Ground branch opens. 2002: Our charter is expanded to serve all of Washington and Riverstone branch opens. 2003: Ridgefield branch opens. 2004: Added Business Online Banking. 2006: We reach $700 million in assets. $700 MILLION 2008: Washougal branch opens and Tower Mall branch relocates to Grand Central. 2013: Operations Center remodel and expansion project is completed. $1 BILLION 2015: We reach $1 billion in assets. 2016: Our Oregon service area expands. 2017: We exceed $1 billion in loans and open our Buckman Branch, our first branch in Portland.

11 Statement of Financial Condition (shown in thousands) Assets Current Assets Cash and Cash Equivalents $85,645 $104,079 Securities - Trading Securities - Available-for-Sale 103, ,312 Other Investments 2,727 1,360 Loans Held-for-Sale 3, Loans, Net 1,071, ,697 Accrued Interest Receivable 2,990 2,561 Foreclosed Assets Premises and Equipment, Net 24,488 26,580 NCUSIF (National Credit Union Share Insurance Fund) Deposit 10,439 9,526 Other Assets 6,885 4,853 Total Assets $1,312,193 $1,229,367 Liabilities & Members Equity Liabilities Members Deposit Accounts $1,113,175 $1,055,277 Borrowed Funds 30,000 - Accrued Expenses and Other Liabilities 16,696 32,602 Total Liabilities 1,159,871 1,087,879 Members Equity Regular Reserves 11,039 11,039 Undivided Earnings 142, ,200 Accumulated Other Comprehensive Loss (1,324) (1,751) Total Members Equity 152, ,488 Total Liabilities and Members Equity S1,312,193 S1,229,367 12

12 Statement of Income (shown in thousands) Interest Income Interest and Fees on Loans to Members $39,033 $36,180 Securities, Interest Bearing Deposits, and Cash Equivalents 2,895 2,854 Total Interest Income 41,928 39,034 Interest Expense Members Deposit Accounts 1,241 1,221 Borrowed Funds 17 - Total Interest Expense 1,258 1,221 Net Interest Income 40,670 37,813 Provision for Loan Losses 4,618 3,380 Net Interest Income After Provision for Loan Losses 36,052 34,433 Noninterest Income Fees and Service Charges 4,956 4,516 Wealth Management Income 1, Gain on Sale of Loans Held-for-Sale 2,315 3,554 ATM Income 6,075 5,770 Net Gain on Sale of Securities - Available-for-Sale Net Gain on Sale of Land Held-for-Sale Net Loss on Sale of Premises and Equipment (91) - Net Gain (Loss) on Sale of Foreclosed Assets 24 (59) Miscellaneous Operating Income 1,774 1,446 Total Noninterest Income 16,196 16,156 Noninterest Expense General and Administrative: Employee Compensation and Benefits 20,831 19,990 Staff and Official Expense Office Occupancy 2,567 2,489 Office Operations 4,243 4,258 Computer and Electronic Services 7,015 6,219 Marketing 1,872 1,432 Loan Servicing 2,005 2,024 Professional Services 1,735 2,141 Other Operating Expenses Total Noninterest Expense 41,841 40,043 Net Income $10,407 $10,546 13

13 Supervisory Committee s Report The Supervisory Committee (Committee) of Columbia Community Credit Union (Columbia CU or Credit Union) is comprised of five members elected by the membership to three-year terms. The Committee conducted regular meetings throughout Dick Thompson Supervisory Committee Chair As a state-chartered credit union, Columbia CU is bound by Chapter of the Revised Code of Washington (RCW). The Committee duties are enumerated in this Chapter. In accordance with RCW , the Committee must: a. Meet at least quarterly; b. Keep fully informed as to the financial condition of the Credit Union and the decisions of the Credit Union s Board; c. Perform or arrange for a complete annual audit of the Credit Union and a verification of its members accounts; and d. Report its findings and recommendations to the Board and make an annual report to members at each annual membership meeting. In addition, the Committee must comply with the applicable sections of Part 715 of National Credit Union Administration (NCUA) rules. 14

14 The audit firm of CliftonLarsenAllen, LLP was retained to perform the annual audit of Columbia CU s financial statements for the fiscal year ending December 31, The audit determined that Columbia CU s financial statements fairly present the financial condition of the Credit Union. In addition to carrying out its noted statutory duties, the Committee oversees the Internal Audit department in its broader audit function. The Department, in some cases through its audit cosourcing partners, provides an additional layer of review through internal audits and reviews. Qualified auditing and consulting firms are used for their expertise to review areas such as information technology security, business lending, home lending and compliance, to ensure a thorough, qualified audit or review and an objective internal audit process. As a result of these various audits and reviews, it s the opinion of the Supervisory Committee that the financial condition of Columbia CU is strong. The Committee believes the internal controls, policies and operations of the Credit Union are in compliance with all governmental regulations. The support and cooperation from management and staff has assisted the Committee in the performance of its duties and is greatly appreciated. Questions or comments regarding financial statements, audits and information in this Report should be directed to Allan Siegel, SVP Chief Financial Officer. Copies of Columbia CU s 2017 audited financial statements are available from Allan, upon request. 15

15 2017 Leadership Board of Directors Roy Johnson Kelly Love Paul Montague III* Larry Paulson Eric Sawyer* Al Schauer Supervisory Committee Dean Sutherland* Alisha Topper Lynn V. Valenter Carol Van Natta* Marci White-Stumpf Mona Ail* Judith Chipman Dave Dumas Tony Jackson Paul Montague III* Richard Thompson Senior Management Steve Kenny President/Chief Executive Officer Joey Rudisill SVP/Chief Information Officer Colleen Boccia SVP/Chief Marketing Officer Michael Florea SVP/Chief Data Officer Jeff Havener* SVP/Chief Lending Officer Carol McCaulley SVP/Chief Human Resource Officer/Legal Counsel Lindsey Salvestrin SVP/Chief Operating Officer Allan Siegel* SVP/Chief Financial Officer Wendy Smith SVP/Chief Risk Officer Marc Timm* SVP/Chief Lending Officer *Served partial year 16

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17 WA OR ColumbiaCU.org Live or work in Washington State or the Oregon community of Clackamas, Marion, Multnomah and Washington Counties? Join us.