2021
ANNUAL REPORT H A R VA R D U N I V E R S I T Y E M P L O Y E E S C R E D I T U N I O N
2021 Highlights 10.8%
$1.038
ASSET GROWTH
TOTAL ASSETS
billion
2021
New Heights $196.8
+10%
CHECKING ACCOUNT BALANCES Millions
When the books closed for the month ending September 30, 2021, HUECU’s Assets were $1,013,494,008. This marked the first time that our institution officially surpassed $1 billion in assets!
$844.5
DEPOSIT ACCOUNT BALANCES
Millions
18
NEWLY CREATED POSITIONS
16
PROMOTIONS
1
YEAR END 2021
HUECU ANNUAL REPORT
+12%
New Products & Services
While not quite “normal,” the improved sense of stability in 2021 allowed HUECU to forge ahead on the mission to provide an exceptional banking experience for our members. We developed new products that return more value to members.
CREDIT CARD
CHECKING
LOAN PRODUCT
Introduced the Platinum Rewards+ credit card, offering 1.5% cash back on all purchases.
Launched Smart Rewards checking accounts, with choice of premium interest or cash back benefits.
Added boat and RV loans to our vehicle loan offerings in response to increased member demand.
MORTGAGE
ZELLE®
FICO ® SCORES
Expanded home lending footprint to provide mortgages to members in all New England states.
Introduced Zelle® , the industry leading P2P platform, to enhance our members’ digital experience.
Began offering free FICO® Scores for all members integrated into our Mobile and Online Banking platforms.
2021
2
Report from the Chairman & CEO
George White Chairman of the Board
Craig Leonard President & CEO
A Y E A R OF R E S I L I E N C E & G ROW T H
to-person payment platform. We also introduced
In 2021, as all of us continued to adjust to the re-
free FICO® score access for all members within our
verberating effects of the global pandemic, HUECU
Online Banking interface and HUECU Mobile App.
renewed our focus on helping members meet their financial goals amidst these changing times. The legacy of trust between the Credit Union and the community we serve propelled our sixth consecutive year of double-digit asset growth: taking us above the $1 billion mark for the first time, and enabling us to extend more value to our members who remain at the heart of everything we do.
R E T U R N I N G VA LU E T O M E M B E R S HUECU’s growth and prosperity allows us to give back more rewards to our members: returning the value they’ve invested in the Credit Union. This year we introduced a new Rewards+ credit card with generous cash back benefits for cardholders. In addition, we launched Smart Rewards Checking products to offer cash back on debit payments or
A DA P T I N G W I T H OP T I M I S M
premium interest on checking account balances –
While we’ve all been challenged to rethink our
two great benefits that aren’t commonly extended
understanding of “normal,” the improved sense
to checking account holders.
of stability in 2021 allowed HUECU to forge ahead
3
on our mission to provide an exceptional banking
N E W B OR ROW I N G OP P ORT U N I T I E S
experience for members. Like many within our
As our members shifted their habits, HUECU intro-
community, we learned to adapt to new ways of
duced enhancements to our loan programs to meet
working, living, and connecting. With optimism
their changing financial needs; underpinned by our
and resilience, we found creative ways to overcome
long-standing commitment to banking products
the challenges and enhance our members’ financial
with low rates and simple design, that are easy to
lives in brand new ways.
understand and use.
As an ever-increasing share of member busi-
This year we saw an increase in member purchase
ness is conducted through digital channels, we’ve
activity on boats and RVs, so in response, HUECU
continued to add new features and functionality
launched a new boat and RV loan product to give
to our Online and Mobile Banking platforms. In
members more ways to finance their adventures.
2021 HUECU launched a partnership with Zelle®
Our membership has also become more geographi-
to provide members a seamless way to send and
cally diverse, prompting a 2021 expansion of the
receive money with the industry’s leading person-
HUECU mortgage footprint. Now wherever they re-
HUECU ANNUAL REPORT
side in New England, members have access to straightforward, hassle-free home loans.
COMMUNITY
S O C I A L R E S P ON S I B I L I T Y HUECU takes seriously our commitment to be a socially responsible actor for our members, our employees, and the community at large. In 2021, recognizing the unprecedented financial impact of COVID for many households, we bolstered our offering of free Financial Wellness education. HUECU hosted
DEETTA JONES We partnered with DeEtta Jones and Associates in August 2021 to enhance our workplace diversity, equity and inclusion efforts.
70 personal finance webinars, and we launched FICO® Scores within Online Banking to give members easier access to essential information about their credit. This year was also an important opportunity to continue the momentum of 2020 in terms of fighting for diversity and inclusion. Intent on learning from the experts and holding ourselves accountable, in August HUECU partnered with DeEtta Jones and Associates – a minority- and woman-owned management consulting
CHARITABLE GIVING We increased our charitable giving, making $225,000 in donations to a variety of community organizations.
and training firm – to make new inroads for diversity, equity and inclusion within the HUECU workplace. N E W M I L E S T ON E S Steady strides forward amidst the stabilizing conditions of 2021 supported HUECU to end the year with a strong financial performance. Our sixth consecutive year of double-digit asset growth propelled us over the $1 billion mark for the first time. As always, this success
FINANCIAL LITERACY OUTREACH We presented more than 70 Personal Finance events, promoting critical financial skills within our communities.
would not be possible without the trust and commitment of our members; and as we move forward, HUECU remains steadfast in our promise to reward that loyalty with exceptional member value and experience. S A LU T I N G T H E H U E C U T E A M It would be impossible to capture the talent and dedication of HUECU employees in just a few words, but suffice to say that our people are, without a doubt, the Credit Union’s most important asset. This year, our teams once again exhibited unparalleled perseverance and drive in pursuit of bringing HUECU members the
PBHA AWARD We received the Summer Urban Program (SUP) Champion award in April 2021 during the Phillip Brooks Housing Association’s (PBHA) Annual SUP Auction. HUECU was recognized as a partner whose support has been instrumental in making SUP possible.
best possible financial experience. To our staff and to our volunteer board: Thank you truly for all you do.
2021
4
Report from the Treasurer
John T. Litchen Treasurer
The Credit Union continued to perform strongly, posting another year of solid earnings. Assets increased by 10.8%, with a yearend total of $1.038 billion.
Positive growth was realized in many areas of the Credit Union, including loans and deposits. Loan quality remained high within all loan product segments. As reflected in the unaudited financial statements, the Credit Union continues to be a well-capitalized, financially strong institution where members can feel confident saving and borrowing. The Board, management and staff are to be commended for their contributions to our success.
LOANS OVER 5 YEARS In millions
DEPOSITS OVER 5 YEARS In millions $900
$900
$800
$800
$700
$700
$600
$600
$500
$500
$400
$400
$300
$300
$200
$200
$100
$100 2017
2018
2019
2020
2021
CHECKING
2%
2020
24%
MONEY Markets
36%
HUECU ANNUAL REPORT
4%
2%
Credit cards
DEPOSIT DISTRIBUTION
2021
Second Mortgages
4%
SHARES
5
2019
Auto loans
ira s
Certificates
2018
2%
23%
14%
2017
OTHER
LOAN DISTRIBUTION
22%
STUDENT LOANS
65%
First Mortgages
Statement of Condition
Selected Data in millions
2020
2021
Cash & Cash Equivalents
90.5
82.7
Investments
57.3
88.0
761.4
839.2
Property & Equipment, net
3.6
3.8
National Credit Union Share Insurance Fund Deposit
6.4
7.3
Other Assets
17.6
17.0
936.8
1,038.0
Members’ Shares
752.1
844.6
Borrowed Funds
90.2
90.6
Accrued Expenses & Other Liabilities
14.4
15.1
856.8
950.2
Retained Earnings, Substantially Restricted
79.3
88.4
Accumulated Other Comprehensive Income
0.7
-0.6
80.0
87.8
936.8
1,038.0
2020
2021
Interest Income from Loans & Investments
32.6
33.0
Interest Expense for Members’ Accounts & Borrowed Funds
-5.6
-3.9
Loan Loss Provision
-3.9
-1.9
Net Interest Income After Provision
23.0
27.2
Other Income
10.5
9.7
-25.5
-27.8
8.0
9.1
ASSETS
Loans to Members, net
Total Assets
LIABILITIES & MEMBERS’ EQUITY Liabilities
Total Liabilities Members’ Equity
Total Members’ Equity Total Liabilities & Members’ Equity
Statement of Income
Selected Data in millions
INTEREST INCOME
Operating Expenses
Net Income
2021
6
Report from the Audit Committee
Dee Dee Chen Committee Chair
The Audit Committee is composed of five Directors dedicated to ensuring that the Credit Union’s actions are held to the highest standards of integrity and value. Throughout 2021, the Committee met regularly to
Reimbursements to Board Directors, including
review the monthly financial statements and au-
other general expenses associated with Board
dit reports, as well as to discuss other operational
meetings, conferences, trainings, committee
topics of interest. We are assisted in our efforts
meetings and planning sessions within 2021
by external firms that provide audit support of the
totaled $10,710. No reimbursable expenses to
Credit Union’s finances and internal controls. Wolf
members of the Audit Committee and Credit
& Company, P.C., audits our financial statements.
Committee occurred. All Board Director expenses
Internal audits continued to receive significant at-
and reimbursements were made in compliance
tention during 2021. Healy & Healy, our partnered firm, performed internal audits throughout the
with the regulations of the National Credit Union Administration and the Massachusetts Division of
year to test Credit Union procedures and con-
Banks.
trols in branch operations, wire transfers, deposit
The Committee wishes to thank the Credit Union
operations, mortgage and student loans, among
management for their cooperation, support and
other areas. The Committee reviewed their find-
assistance throughout the year.
ings and management’s responses and continues to actively work with management on suggested areas to strengthen our processes and mitigate risk.
COMMITTEE MEMBERS
Dee Dee Chen
Susan Simon
April Edrington
George White
Harman Kaur
7
HUECU ANNUAL REPORT
Officers
Craig Leonard
Tom Montilli
Katie Armstrong
President & CEO
EVP, Chief Experience
SVP, Chief Financial
John Degnan SVP, Operations
Amy Murphy Associate Director of Human Resources
Officer
Peter Buchanan SVP, Real Estate Lending
Officer
Board of Directors
George White Chairman
Jeremiah Murphy Vice Chair
John Lichten Treasurer
Mary Straub Clerk
Dennis Campbell
Since 1999
Since 2003
Since 1992
Since 2004
Dee Dee Chen
Ann Dexter
April D. Edrington
Karrie Ford
Harman Kaur
Since 2015
Since 2015
Since 2016
Since 2014
Since 2021
Thomas Lucey
Jason Luke
Gonzalo Muñoz Sanz
Susan G. Simon
Shahar Ziv
Since 2006
Since 2014
Since 2021
Since 2017
Since 2016
Since 2013
2021
8
Thank You We would like to thank all of our partner organizations for their continued support and participation in the Credit Union. OUR PARTNERS The Harvard University Employees Credit Union is proud to offer our services to the employees, students and alumni of Harvard University, Harvard teaching hospitals and affiliated organizations. American Repertory Theater
Harvard University
Beth Israel Deaconess Medical Center
Lesley University
Boston Children’s Hospital
Massachusetts Eye and Ear Infirmary
Brigham and Women’s Hospital
Mass General Brigham
Cambridge Health Alliance
Massachusetts General Hospital
The Coop
Massachusetts Mental Health Center
Dana Farber Cancer Institute
Medical Academic and Scientific Community Organization
Dumbarton Oaks Research Library GBH Boston
MGH Institute of Health Professions
Harvard Business Publishing
Mount Auburn Hospital
Harvard Management Company
Shriners Children’s Boston
Harvard Pilgrim Health Care
Spaulding Rehabilitation Hospital
Visit HUECU.ORG for the full list of affiliated organizations.
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HUECU ANNUAL REPORT
2021
10
Not a bank. A benefit.
617.495.4460 huecu@harvard.edu @myHUECU
H U EC U.ORG
OU R M I S S ION
Enhance our members’ lives by providing trustworthy products that are easy to understand, easy to use and best suited to meet their financial needs.
Your savings are federally insured to at least $250,000 and backed by the full faith and credit of the United States Government.