2022 ANNUAL REPORT
Members tell Forbes: NWCU is the #1 Credit Union in Oregon
In Forbes Magazine’s 2022 annual ranking of the Best-In-State Banks and Credit Unions, Northwest Community Credit Union is the number-one ranked credit union in Oregon!
Members can be proud of this ranking—we’re in a select group of credit unions. Of the 5,400 credit unions nationwide, only 3.4% were recognized by consumers as stand-outs in service performance.
Forbes and market research firm Statistica ranked credit unions and banks nationally, using customer survey data, scoring overall recommendations, satisfaction, and five additional service factors (trust, terms and conditions, branch services, digital services, and financial advice).
Read more in the full report: The Best Banks and Credit Unions In Every State 2022.
I am deeply thankful to members for choosing us. We celebrated with displays on inbranch screens and billboards and staff recognition surprises. I could not be prouder of our teams, as they consistently bring a personal touch to financial services.
The Forbes ranking also set the stage for our first public announcement (July 2022) of a proposed strategic and collaborative merger with TwinStar Credit Union of Lacey, WA. Unusual for credit unions of our size and performance—TwinStar CU also consistently ranks as a leader in Washington credit unions—the plan to merge is designed to leverage TwinStar and Northwest’s exemplary services. These first plans took shape in 2022; Northwest members will vote in 2023, following regulatory approval.
John D. Iglesias President & Chief Executive Officer (CEO)
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Positioned Well for the Changing Economy
STRONG LOAN GROWTH—NWCU experienced strong loan growth in 2022, with the loan portfolio increasing by $254 million over the prior year. This growth assisted the Credit Union to deploy excess liquidity which had built up during the pandemic. These factors yielded a Return on Average Assets of 0.77%, with a low Operating Expense Ratio of 2.82%. The increase in interest income and operational efficiencies allowed NWCU to maintain a low operating cost which produced a Net Worth Ratio of 9.92%. NWCU earnings on loans and investments are projected to increase in 2023 by approximately 28% which will increase net income by approximately 4.5%.
THE HIGH INFLATION AND HIGH-RATE ECONOMY—In
April 2022, the Federal Reserve started its rate hike campaign to combat inflation. NWCU aggressively repriced both lending and deposit products to control interest rate risk while remaining competitive. At year-end, interest rates were at a twenty-year high. This high yield environment allowed the Credit Union to realize an additional $6 million in interest income from loans and investments with a net income of $13.9 million, $2.7 million over our budgeted net income. This income allowed NWCU to make additional contributions to our local communities and positioned us well for 2023 and any economic challenges ahead.
David Rainwater Board Chair
3 INCOME STATEMENT: 12-MONTH PERIOD ENDING DECEMBER 31, 2022 *UNAUDITED FINANCIALS ASSETS Loans (Net) 1,419,680,074 Cash 73,896,166 Investments 220,760,514 Land and Buildings (Net) 33,074,038 National Credit Union Share Insurance Fund 14,862,154 Other Assets 43,836,914 TOTAL ASSETS $ 1,806,109,861 LIABILITIES Deposits 1,558,704,701 Borrowings 65,000,000 Other Liabilities 21,893,638 NET WORTH Member Equity 179,195,791 Unrealized Gain/Loss on Investments (18,684,269) TOTAL LIABILITIES/EQUITY $ 1,806,109,861 INCOME Interest on Loans 54,304,865 Income from Investments 5,597,917 Other Income 13,417,173 $ 73,319,955 EXPENSES Compensation and Benefits 29,237,893 Operations 15,419,520 Occupancy 3,462,062 Provision for Loan Losses 3,523,355 Marketing 1,737,635 Interest on Deposits 5,694,325 Interest on Borrowed Money 357,917 $ 59,432,708 NET INCOME $ 13,887,248 $850,000,000 $1,050,000,000 $1,250,000,000 $1,450,000,000 $1,650,000,000 $1,850,000,000 $2,050,000,000 2018 2019 2020 2021 2022 Total Assets $$200,000,000 $400,000,000 $600,000,000 $800,000,000 $1,000,000,000 $1,200,000,000 $1,400,000,000 $1,600,000,000 $1,800,000,000 2018 2019 2020 2021 2022 Total Deposits $85,000,000 $95,000,000 $105,000,000 $115,000,000 $125,000,000 $135,000,000 $145,000,000 $155,000,000 $165,000,000 2018 2019 2020 2021 2022 Total Net Worth $750,000,000 $850,000,000 $950,000,000 $1,050,000,000 $1,150,000,000 $1,250,000,000 $1,350,000,000 $1,450,000,000 $1,550,000,000 2018 2019 2020 2021 2022 Total Loans BALANCE SHEET AS OF DECEMBER 31, 2022 *UNAUDITED FINANCIALS
“NWCU aggressively repriced both lending and deposit products to control interest rate risk while remaining competitive.”
Literacy Leads to Financial Skills
$150k $250k $15k
Youth Asset Building with DevNW
To help fund youth financial literacy programs tailored for those with economic barriers, NWCU pledged $150,000 over 3 years to DevNW, beginning in 2022. The gift supports the development of existing and new partnerships with youth-serving agencies throughout Lane, Linn, Benton, Lincoln, Marion, Polk and Clackamas Counties.
> Learn more.
For Every Student, a Library. Imagination Library Birth - Age 5, Lane Co.
In the first year of NWCU support for expansion with Eugene Public Library Foundation, Lane County partners grew—Dolly’s books and an invite to join the program now go into New Baby baskets in Lane County hospitals.
> Learn more
NWCU partners with Springfield Public Schools and the Springfield Public Library to provide families living outside city limits with a library card and access to independent reading and study.
> Learn more
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12,489
teachers awarded students impacted funded to schools Oregon counties impacted
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Project
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Marci Griffiths’ Bear Creek Elementary School youth bring personal style to global music with their own Djembe [jem-bay] Drums.
“For almost 17 years, Mr. Frost has been a dedicated teacher at SHS who has championed the cause of appreciating and honoring diversity within our community. Through this visionary leadership, he has encouraged and inspired fellow teachers to follow suit in promoting underrepresented achievers in our school hallways, thus creating an atmosphere of inclusivity and acceptance. As a result, our students are not only cognizant of diversity but also knowledgeable about it. They are encouraged to see themselves as worthy contributors to the US and world achievements, paving the way for a better future.”
~ José da Silva, Springfield HS PrincipalWe make continued strides to improve our communities through support and partnership. No one knows this more than Springfield High School teacher David Frost. David is proud of Springfield High School as the district’s most ethnically diverse high school. For heritage months and holidays, he encourages students to study marginalized groups. David used the NWCU mini-grant to purchase a digital display frame, so changing the content for each of his lessons is easier.
“Not only has the whole school been able to experience the djembe drums as a class in music, but teachers are asking to use them in smaller groups. Recognizing the benefits of drumming for all learners, our music equipment is here for all teachers and learners in the school if they should need it.”
~ Marci Griffiths, Bear Creek Elementary School
It’s safe to say that NWCU strives to serve our communities for generations. And one of the best things that helps us achieve that goal is partnering with community educators like Marci Griffiths of Bear Creek Elementary School in Bend. She won an NWCU mini-grant that she used to purchase ten djembe (pronounced: jem-bay) drums. Marci advocates the connection between music and learning as it applies to the developing brain. The drums were a big hit among her students. NWCU focuses on facilitating education, and teachers like Marci Griffiths make it all the easier.
“I absolutely love teaching students how to save lives,” said Bremont. “Every semester I have between 60-75 students take Community Health and it’s the one class where, year after year, students come back and tell me that they used what I taught them, or the skills and certifications helped them get a job.”
~ Tamara Bremont, Redmond Proficiency AcademySupporting safety education builds community well-being. That’s why it’s our honor to work with Tamara Bremont of Redmond Proficiency Academy. Tamara Bremont, a health and early education instructor, requested a full-body CPT manikin mini-grant. The manikin is used to help train students in life savings techniques like first aid, choking, severe bleeding, recovery positions, and more. This grant was crucial in replacing Tamara’s older manikins that were missing parts. It’s worth noting that Tamara has been certified via the Red Cross for almost 36 years. Also worth noting is that the manikin was named Brad, much to the delight of the students.
“These mini-grants are life changing for my students and me as a teacher and make me want to keep teaching because of your generous support.”
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~ David Frost, Social Studies Teacher Springfield High School.
NWCU’s language initiatives: Spanish & Korean
NWCU.com in Spanish!
A technical assistance award from the U.S. Department of the Treasury’s Community Development Financial Institutions Fund (CDFI Fund) supported translating disclosures and contracting with a translation website vendor to mirror NWCU.com in Spanish. NWCU also took first steps in a strategy to support member services, including the use of:
+ member surveys in Spanish
+ portable translators (Pocketalk)
+ creating a referral system for employees to support member service in Spanish.
Korean Partnerships:
In addition to philanthropy support for the Korean Society of Oregon, in 2022, we engaged with 17 Korean organizations and participated in more than 30 Korean events.
Our support for Korean audiences also includes providing some direct second language services to Koreanspeaking members and participating in the Global Bridges exchange with NACUFOK, the National Credit Union Federation of Korea. NWCU hosted visiting administrators from South Korea in May and invited local and state officials to the reception,
which included a public reading of the state’s proclamation recognizing the month of May as Asian American and Pacific Islander Heritage Month. A group of NWCU representatives also visited South Korean credit unions in early November 2022 (photo above).
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Umpqua Strong
NWCU is a title sponsor of the Umpqua Strong 5k in Roseburg, OR. In 2022, the 5k garnered 252 participants and raised $15,250 for donations. NWCU staff come from as far away as Portland to participate, proud to bring team spirit to this event annually.
Gala de Oro
NWCU supports Gala de Oro, which in turn supports Latino immigrants’ transition to life in the U.S. with financial support, translations, and legal assistance. It’s hosted by the Latino Community Association of Central Oregon.
Lemonade Day Celebrate Trade
NWCU and the Oregon Consular Corps partner to build economic vitality. Celebrate Trade supports scholarships at five universities to develop future leaders in foreign consular service. Learn more.
In 2022, NWCU, in partnership with Grants Pass and Josephine County’s Chamber of Commerce, helped 163 kids own their own lemonade stand. This event helps kids learn business skills and financial literacy.
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Supervision + Leadership
The Supervisory Committee is a group of appointed members who serve a vital role as trustees providing oversight in the interest of Northwest Community Credit Union (NWCU) members. The committee is responsible for making sure that the credit union’s financial records are in order and internal controls are in place to protect the assets of the credit union and its members. During the year, the committee retained Moss Adams, LLP to conduct the annual financial statement audit of NWCU.
Moss Adams is currently performing an audit of NWCU’s 2022 financial statements. The Supervisory Committee expects Moss Adams will issue an unqualified (clean) auditor’s opinion on the financial statements for the year ending December 31, 2022, as in previous years. In addition, the Committee does not anticipate Moss Adams will note any material internal control deficiencies or significant findings during its fieldwork.
The Internal Auditor reviewed the membership records, certain accounts and other areas as directed by the committee to ensure that adequate internal controls are established and maintained to safeguard the credit union’s assets. NWCU Internal Audit did not report any significant weakness in internal controls or other areas covered during its internal audits.
As the credit union continues to grow, we look forward to another successful year and would like to express our appreciation to the dedicated employees, management, and Board of Directors of Northwest Community Credit Union.
Chair — Cathi McNutt Supervisory Committee Supervisory Committee Members: Cathi McNutt, Supervisory Committee Chair; Kristen Rutherford, Supervisory Committee Secretary; Robert Erick, Supervisory Committee Member; Kyrria Martinez, Supervisory Committee Member John D. Iglesias President & Chief Executive Officer (CEO) Cheryl Crow Chief Credit Officer Kendo Santos Chief Risk Officer Alan Pitcher Chief Information Officer Jeffrey Yoder Chief Financial Officer Ken Myhra Chief Payments Officer David Rainwater Board Chair Thomas Pettus-Czar Vice Chair Brad Anderson Board Secretary Barb Blackmore Board Director Richard Leung Board Director Barry Houk Board Director Executive Leadership Team Board of Directors Sarah Means Board Director Darcy Phillips Board Director Jon Ruiz Board Director Sid Leiken Associate Board Member Cathi McNutt Supervisory Committee Chair Kristen Rutherford Supervisory Committee Secretary Robert Erick Supervisory Committee Member Kyrria Martinez Supervisory Committee Member9
Supervisory Committee Members
545 E 8th Avenue, Eugene, OR 97401 NWCU.com
