On the Horizon
As a financial cooperative, Northwest Community Credit Union is all about the strength of the whole. We believe in connections that lift barriers and create support for members who need access to financial services.
A message from John D. Iglesias, President and CEO of Northwest Community Credit Union
Manifesting ideas in the present builds a path to the future. Each of us utilizes this principle in personal or family saving and spending. For the credit union as a partner in member financial well-being, creating ongoing high value for members is our commitment.
A competitive financial market inspired us to innovate to create that value. Our leadership and Board of Directors recognized several opportunities in 2021 to create economic strength on the horizon for the entire membership, including expanding our small business program; refreshing our first-time homebuyer program; and achieving certification as a Community Development Financial Institution (CDFI). Stepping boldly into our future, NWCU also developed the Premier Service Center model, crafted to capture digital reach, new services, and the surprise and delight of new members.
We launched the first Premier Service Center pilot in the Financial Suite of the Support Center (Eugene Downtown, May 2021) and then took a leap of faith to build a new Premier Service Center in the Cedar Hills Crossing location in Beaverton, Oregon (September 2021).
With the aesthetic of a private office, and enhanced digital capability, the Premier Service Centers are just one more way we provide members options that aren’t one-size-fits-all, but are customized to their unique needs.
A message from David Rainwater, Northwest Community Credit Union Board Chair
UNPRECEDENTED GROWTH: NWCU experienced growth of $235 million in assets in 2021. This large deposit influx supported a $177.6 million increase in NWCU’s loan portfolio and a $197 million investment portfolio increase. NWCU also captured $4.8 million of Non-Operating Income from investment and fixed asset sales gains. These factors yielded a Return on Average Assets of 1.08%, with a low Operating Expense Ratio of 2.77%. This positive growth outpaced lending and investment activities, producing a Net Worth Ratio of 9.11%. NWCU projected earnings on loans and investments are not expected to fully address the additional asset growth until 2022.
IMPROVED ECONOMIC OUTLOOK: In late 2020, as many lost income, financial institutions set aside reserves for anticipated loan losses. As 2021 progressed, loan losses did not occur in every community. NWCU significantly reduced its estimated loan loss reserve by approximately $5 million. This reversal of loan loss provision assisted NWCU in realizing a record net income of $18 million by year’s end. This strong financial position allowed the credit union to reward employee advancement, and offer a paid self-care day off. NWCU also made a five-year commitment to the Imagination Library in Lane County.
Message from the Supervisory Committee
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 completed its audit and has issued an unqualified (clean) auditor’s opinion on the financial statements for the year ending December 31, 2021. In addition, Moss Adams did not note any material internal control deficiencies or major issues during its fieldwork.
The Internal Auditor reviewed the membership records, 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 NWCU Board of Directors.
2021 Financials
Balance sheet totals as of December 31, 2021:
| Assets
|
|
|---|---|
| Loans (Net)
|
$1,163,003,493
|
| Cash
|
$248,945,440
|
| Investments
|
$276,304,946
|
| Land and Buildings (Net)
|
$38,711,550
|
| National Credit Union Share Insurance Fund
|
$13,604,780 |
| Other Assets
|
$42,355,049
|
|
Total Assets
|
$1,782,925,258
|
| Liabilities and Equity
|
|
|---|---|
| Deposits
|
$1,603,448,440
|
| Borrowings
|
- |
| Other Liabilities
|
$17,082,347
|
| Member Equity
|
$165,316,153
|
| Unrealized Gain/Loss on Investments
|
-$2,921,682 |
|
Total Liabilities and Equity
|
$1,782,925,258 |
Income Statement: 12-Month Period Ending December 31, 2021
| Income
|
|
|---|---|
| Interest on Loans
|
$46,391,724
|
| Income from Investments
|
$2,521,224
|
| Other Income
|
$18,282,131 |
|
$67,195,079
|
|
| Expenses
|
|
|---|---|
| Compensation and Benefits
|
$25,431,582
|
| Operations
|
$14,027,193
|
| Occupancy
|
$3,852,193
|
| Provision for Loan Losses
|
-$777,885 |
| Marketing
|
$1,312,120
|
| Interest on Deposits
|
$5,290,105
|
|
$49,135,625
|
|
| Net Income | $18,059,454 |
|---|