Annual Report 2022

2021 ANNUAL REPORT

MISSION PURPOSE
BUILD BETTER LIVES THROUGH EXCEED MEMBERS’ AND TEAM MEMBERS’
EXCEPTIONAL MEMBER EXPECTATIONS, INSPIRING THEM TO ACHIEVE
EXPERIENCES, EVERY TIME THEIR FINANCIAL GOALS AND DREAMS

VALUES
EVERYBODY COUNTS,
EVERYBODY CARES,
EVERYBODY DELIVERS,
EVERY DAY

Membership is open to those who live, work, worship, or attend school in the counties of Los
Angeles, Orange, Riverside, and San Bernardino. For more information, visit CUSoCal.org.

1 CREDIT UNION OF SOUTHERN CALIFORNIA 2021 ANNUAL REPORT

JOINT REPORT OF THE
CHAIRPERSON AND PRESIDENT/CEO

In another year defned by the COVID-19 pandemic, 2021 was not without its challenges. It is crucial for
businesses to nimbly respond to these challenges to successfully navigate the everchanging pandemic
landscape. Last year showed us how truly resilient Credit Union of Southern California (CU SoCal) is, as well
as how understanding and supportive our valued Members are. During such times of uncertainty, our team
members and volunteers rallied together, pivoted when necessary, and delivered yet another year full of
major accomplishments, all while aiming to elevate the Member experience.

CU SoCal strives to be a fnancial institution you can count on. Last year was a testament to that efort. We
reached record numbers in key areas, and we did so while keeping the health of our Members and team
members as a top priority. Driven by our philosophy of ‘people helping people,’ we gave $558,000 to our
employee-inspired charity and other non-proft organizations. We grew our Membership by 6 percent. And,
we continued to approve loan payment forbearances to relieve some of the fnancial burden and improve
cash fow for Members adversely impacted by the pandemic. Our Members matter, and we want them to
know they can count on us.

An annual report is certainly about numbers, and we are pleased that 2021 was flled with positive ones. Take
note of the numbers, but read between the lines. You’ll discover a fnancial institution that involved itself in
communities and causes. A fnancial institution that was as interested in the character of the human being
as much as the credit score. A fnancial institution that empowered its Members with products and services
so they could reach their goals.

Our dedicated Board of Directors, Supervisory Committee, and CU SoCal team members are all committed to
our mission to Build Better Lives. Along with our Members, these are the people responsible for our success.
We are sincerely thankful for all of them.

Robyn Bjorklund Dave Gunderson
Board Chairperson President/CEO

CREDIT UNION OF SOUTHERN CALIFORNIA 2021 ANNUAL REPORT 2

Distributed 2021 HIGHLIGHTS

$16 million CU SoCal’s mission is to Build Better Lives® Through Exceptional Member Experiences,
Every Time, and this mission guides our every move. As technology and Member
to Members in direct preferences always evolve, so too do our marketing initiatives, products, and services. It
fnancial benefts1 is our aim to continually adapt to accommodate the needs of our Members. With that in
mind, last year we bolstered the digital experience and leveraged data to deliver optimized
$273 messaging to better achieve our core mission. Our eforts to enhance the Member
experience were refected in 2021’s numbers.
Average annual savings per
Member household1 Some of the year’s fnancial highlights are listed below.

Members earned At year end:

$4.1 million n Our Membership increased by 6%, and we ended the year with more than 130,000
total Members.
in dividends
n Our total loans increased by 6%.
n Our assets topped $2.25 billion.
n Our net worth ratio was 11.35%, exceeding the industry standard where 7% is

considered “well capitalized.”
n Our net income totaled $22.4 million—topping our all-time record in 2019.
n Our return on assets reached 1.03%.
n We earned a superior 5-star fnancial stability rating from BauerFinancial.
n Successfully merged Federal Employees West Federal Credit Union into CU SoCal.
n Our Members earned $16 million in direct fnancial benefts.1
n Our Members earned $4.1 million in dividends.
n Our Members saved $10.7 million on lower interest rates on loans.1
n Members received an average of $273 in household savings.1

1 Source: Credit Union National Association Membership Benefits Report, June 2020 - June 2021.

3 CREDIT UNION OF SOUTHERN CALIFORNIA 2021 ANNUAL REPORT

A BETTER FINANCIAL FUTURE 57

CU SoCal is a diferent kind of fnancial institution: one owned by you, working Free fnancial education
for you. We’re proud to provide you with the products, services, expert advice, classes and webinars
guidance, and tools you need to brighten your fnancial future. We’re here to
talk to you. Not sell to you. We want to hear your story, and we want to make Members saved nearly
your fnancial journey a fruitful one.
$10.7 million
Members can achieve their fnancial goals faster with a full array of fnancial
information, resources, and one-on-one coaching. Members have access to on lower interest rates on loans
certifed fnancial counselors for expert coaching on topics including budgeting,
debt management, and understanding credit scores. In 2021, we ofered more Mamber Care Center ranked
than 200 online resources, including short videos, blogs, and online modules, as
well as 57 free and in-person workshops, lunch-and-learn events, seminars, and Best-In-Class
webinars to enrich Members’ fnancial knowledge.
for Net Promoter Score (NPS)
EXCEPTIONAL MEMBER EXPERIENCES in asset size and nationwide

Our staf is instilled with a deep and genuine desire to serve and an unwavering categories
commitment to do the right thing. This is our culture. This is our DNA. This
is what sets us apart from the myriad of fnancial institutions coveting your
business. For us, it’s not enough to go the extra mile if the extra mile doesn’t
help us get you to your destination. We will go the extra mile and more.

We’re committed to our Members, and that commitment can be seen in every
product and service we introduce and digital upgrade we make, and extends
to how we answer Member calls. In 2021, 70 percent of all calls to our Member
Care Center were answered within 60 seconds and by a live person—not a
recording. In addition, our Member Care Center ranked Best-In-Class in asset
size and nationwide categories. Members value that commitment, which is
evident in the results of our Member survey scores. We ended the year with
a strong 74% Net Promoter Score, which placed us between the 85th-90th
percentile for Member loyalty. Members also scored us with a high 9.22 out of
10 when asked if “CU SoCal provides quality service.” Members also responded
with a positive 9.04 out of 10 rating when asked if “CU SoCal makes conducting
business easy.”

CREDIT UNION OF SOUTHERN CALIFORNIA 2021 ANNUAL REPORT 4

5-star CONTINUED COMMUNITY COMMITMENT

superior rating Giving back to the communities we serve has always been a core focus of CU SoCal.
In 2021, our team continued that community commitment with volunteer work and
by BauerFinancial donations to support our charity, CU SoCal’s Helping Hands, as well as hundreds of
other charitable initiatives serving noble causes.
$558,000 Highlights include:
n Team members and their families enthusiastically volunteered 120 hours to
donated to CU SoCal
Helping Hands and other local schools and charities.
non-proft organizations n Donated $558,000 to various charities, including CU SoCal’s Helping Hands.

120 hours ENHANCING THE MONEY MANAGING EXPERIENCE

volunteered in our communities We believe our Members should be able to do their banking whenever and
by CU SoCal team members however they want. In 2021, we added a new branch in Fontana and continued
and loved ones to enhance the online experience for our Members.
Highlights include:
n Launched Credit Score and More, a new Digital Banking feature that provides

Members free access to their credit report and score, along with guidance to
manage their score and special credit ofers from CU SoCal.
n Launched an online appointment setting feature, providing time-saving
convenience to Members when they visit a branch.
n Successfully launched the More Than a Grand in Your Hand (MTAG) loan,
a $1,500 personal loan with no credit check that helped thousands of
Members get emergency cash quickly.
n Moved our current El Monte branch to a new location.
n Added nearly 100 blogs to our blog section, which now features more than
125 educational blogs.

5 CREDIT UNION OF SOUTHERN CALIFORNIA 2021 ANNUAL REPORT

2022 VISION $260

Our 2022 vision is clear: deepen relationships, enhance experiences, and exceed Average annual interest saved
expectations. We will continue to focus on your valuable feedback to make your fnancing a $30,000 car
experiences with us streamlined, seamless, and easy. for 60 months1

Plans include: Quality Service

n Overhauling our website (CUSoCal.org) in order to provide a more 9.22/10
comprehensive, streamlined service to our Members.
among the highest rated
n Launching new text and video platforms to communicate new products,
services, and account notifcations directly to Members.

n Launching new software to allow enhanced communication between
Members and the Member Care Center, which will include use of
screensharing for on-screen guidance.

n Introducing credit card ofers, which includes ramping up Dream Points
incentives.

Increased Membership by

6%

from prior year

CREDIT UNION OF SOUTHERN CALIFORNIA 2021 ANNUAL REPORT 6

BOARD OF DIRECTORS

Credit Union of Southern California’s Board of Directors
generously volunteer time throughout the year to ensure the
continued strength, security, and value of your credit union.
ROW 1 (L-R):
Robyn Bjorklund, Board Chairperson
Elizabeth Camp
Christopher George

ROW 2:
Paul Moore
Dona Moseley
John Rosenberger

ROW 3:
Christopher Stone
Connie Zappone
Dawnna Lawrence, Corporate Advisory Board Member

ROW 4:
Gil Rodriguez, Corporate Advisory Board Member

In loving memory of John Smith. John joined CU SoCal’s
Board of Directors when the credit union partnered with
Pacifc Community Credit Union (PCCU) in 2017, after
serving on PCCU’s board since 2014. John was a valued
volunteer in the credit union movement and dedicated
more than two decades to the cause.

7 CREDIT UNION OF SOUTHERN CALIFORNIA 2021 ANNUAL REPORT

SUPERVISORY COMMITTEE

The Supervisory Committee members ROW 1 (L-R):
volunteer their time and expertise. They meet Judy Miller, Chairperson
regularly to review fnancial statements along
with internal and external audit reports and Greg Kelley
controls. Their task is to ensure that Credit
Union of Southern California is both fscally ROW 2:
sound and efectively serving the many Ed Paul
diferent fnancial needs of its Members. Bob Toohey

The certifed public accounting frm of Turner, ROW 3:
Warren, Hwang & Conrad was engaged to David Yamashita
perform the annual audit for the fscal year Rosie Robinson,
ending June 30, 2021. Supervisory Committee
Advisory Member
After reviewing the audit report, along
with other reports and records, it was the
unanimous opinion of the Supervisory
Committee that Credit Union of Southern
California is fnancially solid and being
operated in a safe and sound manner.

Judy Miller, Chairperson
Supervisory Committee

CREDIT UNION OF SOUTHERN CALIFORNIA 2021 ANNUAL REPORT 8

AT DECEMBER 31,

2021 2020 FINANCIAL STATEMENTS

ASSETS $ 257,669,119 $ 138,075,213 ASSETS
Cash and cash equivalents 711,226,652 678,344,497
Investments 2021 $2,246,765,154
Loans to Members 1,207,202,215 1,137,596,786 2020 $2,020,459,917
Allowance for loan losses (11,433,117) (12,819,746) 2019 $1,680,021,723
Fixed assets 24,788,635 26,128,772 2018 $1,485,094,224
Other assets 57,311,650 53,134,395 2017 $1,408,135,586
2016 $1,173,870,077
Total assets $2,246,765,154 $2,020,459,917

LIABILITIES AND MEMBERS’ EQUITY $1,986,952,900 $ 1,740,014,296 INCOME
Members’ share accounts 25,000,000 45,000,000 2021 $90,560,812
Notes payable 22,062,592 20,325,546 2020 $94,039,451
Other liabilities 212,749,662 2019 $86,215,255
Members’ equity 215,120,075 2018 $73,332,209
$2,246,765,154 2017 $66,609,511
Total liabilities and Members’ equity $ 2,020,459,917 2016 $61,428,228

YEARS ENDED DECEMBER 31,

2021 2020

INTEREST INCOME $ 51,129,853 $ 49,438,878 EXPENSES
Interest on loans 10,983,217 12,828,963 2021 $64,033,111
Interest on investments 62,113,070 62,267,841 2020 $69,583,391
2019 $62,806,195
Total interest income 4,140,787 5,743,441 2018 $57,445,539
682,463 1,857,873 2017 $51,648,413
INTEREST EXPENSE 4,823,250 7,601,314 2016 $45,746,568
Members’ share accounts
Borrowed funds 57,289,820 54,666,527

Total interest expense 732,495 7,820,390

NET INTEREST INCOME DIVIDENDS TO MEMBERS

PROVISION FOR LOAN LOSSES 56,557,325 46,846,137 2021 $4,140,787

NET INTEREST INCOME AFTER 2020 $5,743,441
PROVISION FOR LOAN LOSSES
2019 $4,432,572
NON-INTEREST INCOME
Fees and charges 10,121,828 9,881,961 2018 $2,913,580
Interchange and other income 15,900,621 15,213,468
Gain on bargain acquisition 2017 $2,278,947
of a credit union 189,293 —
Realized and unrealized gains 2016 $2,135,671
on investments 1,263,567 6,485,240
Gain on sale of fixed assets 972,433 190,941 REGULATORY NET WORTH
2021 $255,032,959
Total non-interest income 28,447,742 31,771,610 2020 $232,401,436
2019 $213,688,817
NON-INTEREST EXPENSE 36,875,916 34,555,705 2018 $191,888,144
Compensation and benefits 7,881,565 6,960,394 2017 $178,915,054
Office operations 5,193,953 4,614,531 2016 $145,950,788
Office occupancy
Other 12,666,719 13,774,498
62,618,153 59,905,128
Total non-interest expense $ 22,386,914 $ 18,712,619

NET INCOME

9 CREDIT UNION OF SOUTHERN CALIFORNIA 2021 ANNUAL REPORT

BUILDING
BETTER
LIVES

Our industry is flled with
people who can count.
At CU SoCal, you’ll fnd
people you can count on.

CREDIT UNION OF SOUTHERN CALIFORNIA 2021 ANNUAL REPORT 10

MEMBER CARE CENTER FEDERALLY
INSURED
562.698.8326 | 866 CU SoCal (866.287.6225) toll-free BY NCUA
Monday–Friday: 9 am–6 pm | Saturday: 9 am–1 pm

BRANCHES

Alhambra | Anaheim | Brea | City of Industry | Costa Mesa | Covina
El Monte | Fontana | Fullerton | Garden Grove
La Habra | Laguna Niguel | Los Angeles | Ontario | Orange
Pico Rivera | Pomona | Whittier

MAIL

P.O. Box 76000
Anaheim, CA 92809

EMAIL

[email protected]

WEBSITE

CUSoCal.org

MOBILE BANKING

Download free Mobile Banking app at CUSoCal.org

FREE ATMs & SHARED BRANCHES

Text | 91989 with your zip code (ATMs only)
Download free app | CUSoCal.org
Visit | CUSoCal.org

Alhambra | Anaheim | Brea | City of Industry | Costa Mesa | Covina | El Monte | Fontana | Fullerton | Garden Grove
La Habra | Laguna Niguel | Los Angeles | Ontario | Orange | Pico Rivera | Pomona | Whittier