Annual Report 2019

Making life better for 100,000 members in the Pacific Northwest.

Federally insured by NCUA.

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In 2019, Columbia Credit Union reached a membership milestone of over 100,000 Northwest

neighbors. As a community-minded financial cooperative, everything we do is for the member

first. And every member has a story.

With 100,000 members, there are 100,000 stories to tell. Meet some of the faces of

Columbia Credit Union.

pg. 06 Marsh Family, 2nd & 3rd generation members

pg. 10 Rosie Patterson, owner of Franko’s Dog Grooming

pg. 14 Gary & Shirley Gross, owners of Ethereal Meads

Serving 100,000 members in the Pacific Northwest

Check out more member love at columbiacu.org/100k-members

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A Commitment to our Vision.

Since the founding of our credit union 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 over 100,000 members. This has been a year of hard work, measurable growth,

and outstanding service.

Celebrating our growth and service.

I’m happy to report that in 2019 we reached $1.7 billion in assets while expanding on almost

every aspect of our member service. We launched a brand new, mobile-first website, revamped

our consumer credit card program and introduced business credit cards for the first time, and

officially opened our Portland Commercial Center in the heart of downtown.

Our organization continues to safely and solidly operate, with year-end capital (or net worth) at

11.12%, which is well above the industry standard. In addition, we saw our assets grow 12% in

2019 while our total loans grew 8.68%.

Technology increases convenience.

With a focus on expanding technological capabilities to make life better for our members, we

made many great advancements in 2019. In addition to launching a mobile-first website, we

added our credit cards to Apple, Google, and Samsung Pay’s mobile wallets. Our credit cards

also joined our debit cards on the CardValet app to provide extra layers of security to our

members.

President’s Message

Steve Kenny President & CEO

Making life better in the year ahead.

Looking forward, we have another exciting year of innovation in store. We’ll continue to improve

life for our business members with SBA Express lending and more online banking options. We’ll

begin offering telephone interpreter services to more specifically address our members’ needs

and we’ll expand our local footprint with a new branch in Ridgefield, WA.

In the year ahead, we’ll continue to seek growth opportunities to expand our market while

creating partnerships with organizations that support our local community. 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, as always, a special thanks to our membership

for their continued support of Columbia Credit Union.

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“Life has changed dramatically since the addition of Jackson to our family. Columbia Credit Union’s

digital banking options have made our lives better by allowing us more time with each other.”

Watch the video at columbiacu.org/100k-members

Meet the Marsh Family

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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 experienced and dedicated team, and 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. Mobile wallet, remote deposit, and online mortgage applications are

important services enhancing the member experience with digital convenience.

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 14 community

branches, member service call center, website live chat feature, and social media networks.

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WE RECOMMEND ALL5 AND 4-STAR INSTITUTIONS

Chair’s Report

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 2019:

• The Columbian’s 2019 Best of Clark County (Credit Union and Financial Services)

• Vancouver Business Journal’s 2019 Best in Business

• Bauer Financial’s 2019 5-Star Rating

• DepositAccounts.com’s Top 200 Healthiest Credit Unions in America

• Weiss’ “Recommended” Rating

• Forbes’ 2019 Best-in-State Credit Unions

• Portland Business Journal’s 2019 Corporate Philanthropy Award

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.

Kelly Love Board Chair

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“Franko’s Dog Grooming has been serving the community for 34 years. Columbia CU was able to

secure the loans to help me purchase it from my grandmother. Now we can continue serving this

community for at least another 30 years.” - Rosie Patterson, Owner of Franko’s Dog Grooming

Watch the video at columbiacu.org/100k-members

Welcome to Franko’s Dog Grooming

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Community Support

Columbia Credit Union is dedicated to actively supporting events and causes that strengthen

the neighborhoods where our members and employees live, work, and play. In addition to

building partnerships and financial giving, our management team gives their time to help make

life better across our community.

Our Community Commitment

1,332ManagementVolunteer Hours

+ $383kDonated

$7.7 MillionRaised for Community Organizations

=70Nonprofits

+

Making Life Better for Northwest Families.

• KPTV Toy Drive helps 140 nonprofit organizations serve over 100,000 local children and families.

• Meals on Wheels serves 1.3 million meals to homebound seniors in Multnomah, Washington and

Clark County.

• Boys and Girls Clubs of Southwest Washington supports over 3,000 youth coming from

disadvantaged circumstances.

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“Starting a business can be kind of a scary venture. We believe in supporting local and it’s just so

clear that’s what Columbia Credit Union does too.” - Gary & Shirley Gross

Watch the video at columbiacu.org/100k-members

Making Ethereal Meads

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Net Lending Line Growth

2018: $1.513 Billion in Assets

2019: $1.702 Billion in Assets

BusinessHomeConsumer

$756.8 Million

$798.0 Million

$282.2 Million

$347.6 Million

$230.9 Million

$237.6 Million

Loans Loans Loans

12%increase over 2018

Follow us. We’re fun.

Expanding member servicesNew consumer and business products make their debut.

2018

2019

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Liabilities 2019 2018Members’ Share & Savings Accounts $1,498,765 $1,306,710

Borrowed Funds – 25,000

Accrued Expenses & Other Liabilities 13,542 13,115

Total Liabilities 1,512,307 1,344,825

Members’ EquityRegular Reserves 11,039 11,039

Undivided Earnings 178,126 158,827Accumulated Other Comprehensive Loss 99 (1,836)

Total Members’ Equity 189,264 168,030

Total Liabilities & Members’ Equity $1,701,571 $1,512,855

Current Assets 2019 2018Cash and Cash Equivalents $206,116 $114,712

Securities – Available-for-Sale 69,075 83,845

Other Investments 1,868 2,627

Loans Held-for-Sale 1,778 3,024

Loans, Net 1,371,769 1,260,742

Accrued Interest Receivable 3,909 3,525

Premises & Equipment, Net 25,476 25,173 NCUSIF (National Credit Union Share Insurance Fund) Deposit 13,158 11,922

Other Assets 8,422 7,285

Total Assets $1,701,571 $1,512,855

Statement of Financial Condition(shown in thousands)

Assets

Liabilities & Members’ Equity

Interest Income 2019 2018

Interest & Fees on Loans to Members $60,643 $49,845

Securities, Interest Bearing Deposits

& Cash Equivalents 4,709 3,038

Total Interest Income 65,352 52,883

Interest ExpenseMembers’ Deposit Accounts 9,502 3,651

Borrowed Funds 2 13

Total Interest Expense 9,504 3,664

Net Interest Income 55,848 49,219

Provision for Loan Losses 5,762 5,562

Net Interest Income After Provision

for Loan Losses 50,086 43,657

Noninterest IncomeFees & Service Charges 5,470 4,972

Wealth Management Income 1,576 1,219

Gain on Sale of Loans Held-for-Sale 2,000 1,781

ATM Income 7,399 7,191

Net Gain on Sale of Securities

Available-for-Sale - -

Net Loss on Sale of Premises and Equipment (1) (149)

Net Gain (Loss) on Sale of Foreclosed Assets - (13)

Misc. Operating Income 2,180 2,665

Total Noninterest Income 18,624 17,666

Noninterest ExpenseGeneral & Administrative

Employee Compensation & Benefits 25,892 22,894

Staff and Official Expense 946 901

Office Occupancy 2,998 2,767

Office Operations 4,480 4,526

Computer & Electronic Services 7,608 7,527

Marketing 1,908 1,876

Loan Servicing 2,299 2,238

Professional Services 2,302 1,397

Other Operating Expenses 978 977

Total NonInterest Expense 49,411 45,103

Net Income $19,299 $16,220

Statement of Income

(shown in thousands)

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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 2019.

As a state-chartered credit union, Columbia CU is bound by Chapter 31.12 of the Revised Code

of Washington (RCW). The Committee duties are enumerated in this Chapter. In accordance

with RCW 31.12.335, 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.

The audit firm of CliftonLarsonAllen LLP was retained to perform the annual audit of Columbia

CU’s financial statements for the fiscal year ending December 31, 2019. The audit determined that

Columbia CU’s financial statements fairly present the financial condition of the Credit Union.

Supervisory Committee’s Report

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 co-

sourcing partners, provides an additional layer of review through internal audits and reviews.

Qualifying 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 2019

audited financial statements are available from Allan, upon request.

Dick Thompson Supervisory Committee Chair

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President’s Message

Board of Directors

Supervisory Committee

Senior Management

Max Ault*Roy Johnson*Kelly LoveJulianna Marler*

Judith L. ChipmanDave DumasTony Jackson

Steve KennyPresident/Chief Executive Officer

Colleen BocciaSVP/Chief Marketing Officer

Michael FloreaSVP/Chief Data Officer

Carol McCaulley*SVP/Chief Human Resource Officer/Legal Counsel

Mark MichaelsSVP/Chief Information Officer

Larry PaulsonEric SawyerAl SchauerAlishia Topper*

Paul Montague, IIIRichard Thompson

Lynn V. Valenter*Joseph Vance*Carol Van NattaMarci White-Stumpf

Lindsey SalvestrinSVP/Chief Operating Officer

Allan SiegelSVP/Chief Financial Officer

Wendy SmithSVP/Chief Risk Officer

Marc TimmSVP/Chief Lending Officer

*Served partial year

2019 LeadershipOur special thanks to the Marsh Family, Rosie Patterson, Gary and Shirley Gross, and all those

who have participated in our 100,000 Member Appreciation campaign in 2019.

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

360.891.4000 WA | 503.285.4521 OR | ColumbiaCU.org

Every story makes a difference. What’s yours?Let us know!

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@columbia_cu

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