2014
Annual & Community
Report
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Shared
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Lives
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COMMUNITY
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graduating
Because we were founded by public employees, service to others is at the core of WSECU’s
identity and values. Helping you achieve your vision of success remains our highest priority and
our deepest calling.
Yet WSECU is more than your financial services partner. We are also a neighbor, employer,
community hub…we’re a network of dedicated employees and connected members that extends
across the state. Because of these additional roles, we have a stake in making Washington the
best place to live that it can be. In fact, it’s not just a stake we have; we believe it’s an obligation
to do our fair share.
So in 2014 we challenged ourselves to invest more in the communities we serve and set a goal
to build toward giving back four percent of net income to community partners. This year we
made significant strides in enhancing our community giving program and are on our way. Through
partnerships with nonprofits and other agencies, WSECU places emphasis on four key community
giving pillars: Education, Self Sufficiency, Public Employees & Assets and Small Business &
Entrepreneurship. These areas fit a credit union with a heartbeat from public service and a
commitment to every individual’s potential to succeed.
In this report, you’ll find our traditional year-end financial information that tells a story about the
strength of the cooperative led so well by our dedicated Board of Directors. We’re also excited to
tell you more about the ways we gave back and deepened community ties.
Take a look at our expanded community report. We know that together, we can take care of today
and grow for tomorrow. That’s true for your financial success and that’s true for creating shared
prosperity for all.
Kevin Foster-Keddie
President & CEO
BOARD OF DIRECTORS
Our Community Partners Share Their Thoughts
Banking Cooperatively
“ With your support,
“
[WSECU is]
part of the GEAR UP
partnership family, providing
critical training and information
to the 27 low-income school
districts across the state.
United Way is then able
to touch so many lives
in our community
and Whitman County.
”
”
GEAR UP
It’s been my privilege to serve as Board Chair for WSECU this past year. Like you, I’m a member and proud of my
connection with this credit union. Individually we reflect the breadth and diversity of public service employees, retirees
and families. Together, we are WSECU – a membership that banks together so we can do more together.
United Way
of Pullman
“ WSECU is
You’ll see that 2014 was a strong year for the credit union by many measures. As a member-owned cooperative, more
than the numbers, we define success by how we enhance the value of your membership and help you meet your financial
needs and goals.
“ WSECU is
part of our success.
It’s hard to run a non-profit
and without partners
like WSECU,
it wouldn’t work.
”
”
always there for us.
Washington State
Parks Foundation
Enterprise for Equity
We know convenience is especially important. We strive to be where you need us, when you need us. We’re placing more
emphasis on how we deliver great service in our branches and on mobile and other digital devices. In 2014 we began
offering online account opening. We also piloted instant card issuing in our branches. This allows you to open an account
and walk out the door the same day with a new debit or credit card in hand.
The attention on technology is also about improving security for your accounts and financial information. Behind the
scenes, we made significant investments in technology infrastructure to assure systems run smoothly for you and to
enhance the security of your data and accounts.
Even as we enjoyed strong member growth following the opening our field of membership, we continue to retain a
special focus on public employees. Last year we welcomed new members following a merger with Central Washington
University Federal Credit Union, which served the school’s faculty and staff. Soon after, we opened our newest and 19th
branch on the university campus in Ellensburg. New and longtime members are excited at this expanded presence in the
region.
On behalf of the Board of Directors, I am pleased to present to you this annual report. Thanks for making the choice to
bank cooperatively and for your membership with WSECU.
Doug Mah
2014 Chair
Doug Mah
Chair
Ginny Dale, Vice Chair
Marcus Glasper, Secretary
Tracy Guerin
Randy Hodgins
Rita Koontz
Fred Olson
Mike Stevenson
Carole J. Washburn
SUPPORTING
WASHINGTON
a vibrant
by
investing in
Measuring Give-Back Success
.95%
Leading Financial Institutions Worldwide*
1.9% WSECU in 2014
4%
WSECU’s Ultimate Goal
How the 1.9%
was
distributed
Education
Other
Self Sufficiency
Public Employees & Assets
Small Business & Entrepreneurship
*Median total cash giving as a percentage of pre-tax profit for financial institutions ~ CECP, in
association with The Conference Board Giving in Numbers: 2014 Edition
EDUCATION
SELF SUFFICIENCY
We believe in the power of a good education.
Partnerships with those who give a helping hand to educate our youth is a centerpiece of our community commitment.
We’re dedicated to helping people move forward
on the road to stability in their lives as well as their finances.
give
back
$168,616
give
back
$57,720
Examples of associations and regions these funds supported:
Examples of community non-profits and regions these funds supported:
Hands On Children’s Museum (Olympia)
South Seattle Community College
Centralia College
Junior Achievement (Yakima)
4-H Youth Development Program (Pullman)
United Way of Pullman
FISH Food Bank (Ellensburg)
Alternatives to Violence in the Palouse
Everett Food Bank
Senior Services for South Sound (Olympia)
PUBLIC EMPLOYEES & ASSETS
SMALL BUSINESS & ENTREPRENEURSHIP
We were founded by public employees and supporting events that are close to their hearts and
enhancing the state’s public treasures is a natural fit with our history of serving public employees.
By working and living in the communities we serve, we fully understand being locally grown. We believe
in creating shared prosperity by supporting programs and initiatives that foster a vibrant local economy.
give
back
$62,862
give
back
$35,700
Examples of associations statewide that these funds supported:
Examples of community non-profits and regions that these funds supported:
Washington State Parks
Public Service Recognition Week
LEAN Conference
Washington State Historical Society
Farmers Markets (Statewide)
Enterprise for Equity (Olympia)
SNAP Financial Access Spokane
Olympia Downtown Association
Spokane Community College
Beyond Member Service:
EMPLOYEES GIVE BACK
Giving back comes in many forms and our employees’ talent and time are
just as valuable a resource as our financial contributions. In 2014, WSECU
launched a new employee volunteerism program. The credit union
provides each full-time employee with eight hours of paid release time to
volunteer in their neighborhoods and communities.
2014
Employee
Participation
Our goal:
25%
Actual:
59%
Employees who used
the full benefit:
Supervisory Committee
WSECU’s five-member Supervisory Committee, elected by the membership, is charged with
overseeing the credit union’s financial safety and security. The members of the Supervisory
Committee oversee the work of the credit union’s Audit Services Department and engage
outside auditors for the annual financial audit. We review monthly financial statements,
internal audit and regulatory examination reports, and the annual financial audit results.
On behalf of the members of WSECU, we engaged the CPA firm of Orth, Chakler & Murnane
to perform the independent audit of the credit union’s consolidated financial statement.
The audit of the financials, for the year ending December 31, 2014, expressed an unqualified
opinion. An unqualified opinion means the financial condition, position, and operations of
WSECU are fairly presented in the financial statements. This is the best report to receive from
an external auditor.
A summary of the financials is provided on the following pages of this report. The complete
consolidated financial statement and the report of the independent CPA firm are available for
viewing at WSECU’s corporate office in Olympia, Washington.
Regards,
30%
Scott Henderson
2014 Chair
Scott Henderson
Chair
Most Popular Volunteer Venues:
Schools • Food Banks
WSECU high school Reality Fairs
Department of Natural Resource Lands
Number of hours donated:
Value of hours donated:
1,805
$61,352
Jeff Doyle
David Kuhn
Wendy Weeks
Yolanda R. Wilson
Assets
$250
ASSETS
millions
MEMBER EQUITY
millions
$2,000
ASSETS
$2,500
$200
$1,500
$150
2014
2013
Cash & Cash Equivalents
$31,095,845
33,083,628
Investments
344,104,111
513,531,608
1,721,562,188
1,257,363,218
6,364,398
5,648,148
Property & Equipment
80,072,039
81,434,627
Federal Share Insurance Fund Deposit
17,360,782
16,135,065
Loans to Members,
Net of the Allowance for Loan Losses
Accrued Interest Receivable
Prepaid and Other Assets
$1,000
$100
2014
2011
2012
2013
2009
2010
2011
2012
2013
2014
2009
2010
$50
$500
LIABILITIES &
MEMBER EQUITY
Total Assets
16,877,301
15,086,670
$2,217,436,664
$1,922,282,964
$1,823,159,681
$1,687,234,290
Liabilities
Members’ Shares
Accrued Expenses & Other Liabilities
165,436,341
32,042,266
1,988,596,022
1,719,276,556
228,840,642
203,006,408
$2,217,436,664
$1,922,282,964
$83,050,887
$64,026,305
4,464,761
5,680,832
87,515,648
69,707,137
5,251,080
4,926,274
82,264,568
64,780,863
(16,632,913)
(7,069,277)
65,631,655
57,711,586
41,976,642
42,805,349
Compensation & Employee Benefits
42,743,190
39,647,092
Office Operations
39,030,301
35,877,791
-
1,290,805
4,079,661
3,883,040
85,853,152
80,698,728
$21,755,145
$19,818,207
Total Liabilites
Equity
Members’ Equity & Reserves
Total Liabilities & Members’ Equity
Interest Income
$1,800
$2,000
DEPOSITS
$1,800
millions
$1,600
$1,600
$1,400
$1,400
$1,200
$1,200
$1,000
$1,000
$800
$800
$600
$600
$400
$400
Interest on Loans to Members
LOANS
Interest on Investments & Cash Equivalents
millions
STATEMENT OF INCOME
$2,000
$200
$200
Interest Expense
Members’ Share Accounts & Borrowed Funds
Net Interest Income
Provision for Loan Losses
Net Interest Income After Provision for Loan Losses
Non-Interest Income
Fees & Other Income
Non-Interest Expenses
2014
2011
2012
2013
2009
2010
2014
Federally Insured by NCUA
2009
2010
2011
2012
2013
Federal Insurance Premium Assessments
Occupancy
Net Income