2021
Redwood Credit Union
Annual Report
Table of Contents
01.
Message from the Board Chair
05.
How We Innovated
02.
Awards
03.
How We Partnered
04.
Message from the President & CEO
06.
How We Shared the Love
07.
Message from the Audit & Enterprise Risk Committee Chair
08.
2021
Financials
09.
Board of Directors
Message from the Board Chair
We began 2021 with optimism that the pandemic would soon end and we’d be able to return to a new version of normal life. While that didn’t happen as we had hoped, I’m proud to say that Redwood Credit Union continued to be there for our Members, team members, and communities in all the ways you’ve come to expect. And that’s what differentiates us as a financial cooperative. We collectively work together to improve people’s financial lives and build up the communities in which we live, no matter what.
As Chair of your volunteer Board of Directors, I’m pleased to say 2021 was a strong year for your Credit Union. Our financial strength and tenacity allowed us to navigate the ever-changing environment around us while meeting the evolving needs of our Members and communities.
READ MORE
Honored to be Recognized
2021 Best-in-State Credit Union
403,262
Members served
8th
largest credit union in California
(out of 279)
37th
largest credit union in the United States
(out of 5,048)
How We Partnered
In Our Communities
Podcast
In the first episode of the series, they discuss SchoolsRule Marin, a program RCU has donated more than $413,000 dollars to since partnering with them in 2014 (more than $62,000 in 2021 alone) through a percentage of Member debit and credit card purchases made in Marin County.
Business
Redwood Credit Union works with chambers of commerce throughout our field of membership to support local businesses. One popular event was the Winter Lights outdoor ice rink, attracting people to shop downtown Santa Rosa. Assisting business Members in acquiring loan forgiveness through the Paycheck Protection program (PPP) was also an area of focus for RCU.
Nonprofits
We continue to identify and support organizations and events that serve the most vital needs of our beautiful and unique communities. In Lake, Mendocino, Napa, and San Francisco counties, we partner with 10,000 Degrees—a nationally recognized leader in supporting students from low-income backgrounds to go through college and beyond. We support Compass Family Services in San Francisco.
Redwood Credit Union Community Fund (RCUCF)
116
community organizations supported
$4,113,785
in community giving to local nonprofits and organizations
How We Innovated
We redesigned redwoodcu.org to deliver a digital experience that parallels the exceptional service provided in our branches and call center.
We improved our online fraud and security center to make it easier to dispute a fraudulent transaction online and through the mobile app.
Members can get a quote for auto, home, or renters insurance and schedule a virtual appointment with their agent.
Business Members can now easily apply for loans online. Visit the page for details.
Members now have the ability to provide instructions for their maturing certificates in mobile and online banking.
Not all money-moving apps offer the ability to send funds from the desktop, but RCUpay does. Members don’t have to be mobile users to send money to friends and family—for free.
Members can now open and close IRA and HSA accounts online and make contributions or withdrawals to the accounts via online and mobile banking.
New and Remodeled Facilities
How We Shared the Love
Financial Education & Wellness
Team Members in the Community
RCU hosted Shred-a-Thons in Mendocino, Napa, Marin, and Sonoma counties. Team members were proud to bring back these impactful events in ways that were safe for them and our communities. Highlights include:
Shred-a-Thons
14,428
business Members served
29,088,075
mobile logins
2021 FINANCIALS
2021 Financial Statement
277
vehicles purchased by RCU Auto Services to help people “trade up”
$2.07 billion
in first mortgage loans funded
BOARD OF DIRECTORS
Debra Watts
Board Member
Volunteer since 1976
Judy Herrerias-James
Board Vice Chair
Volunteer since 2013
Rod Dole
Board Chair
Volunteer since 1978
David Imoto
Committee Member Volunteer since 1989
Robert Eyler
Board Secretary
Volunteer since 2009
Jim Olmsted
Board Treasurer
Volunteer since 1993
Lisa Wittke Schaffner
Board Member
Volunteer since 2012
M. Christina Rivera
Board Member
Volunteer since 2014
David Gouin
Board Member
Volunteer since 2008
Jeri Hansen
Board Member
Volunteer since 2020
To help our communities, we provided more than 4 million dollars, including grants and sponsorships, to support more than 100 local organizations so they could continue to provide vital services to people during the pandemic.
We were honored to be recognized by our communities and our industry, with RCU receiving more than 30 awards throughout the year. We were again named by Forbes magazine as a top ten Best-in-State credit union, ranking 2nd overall in California, based on a nationwide survey of consumers about their banking relationships.
As we look back on Redwood Credit Union’s success in 2021, a major part of the equation was you, our Members. Your trust, support and participation is what allows us to continue to passionately serve the best interests of our Members, team members, and communities every day, and we thank you.
Rod Dole
Chair, Board of Directors
2021 Energy Star Certification
Energy Star
Best Company to Do Business with in Sonoma County
NorthBay biz
Best Credit Union
in Marin
Pacific Sun
Best Credit Union
in the North Bay
NorthBay biz
Best Credit Union
in Sonoma and
Napa counties
Bohemian
Readers' Choice
Best Credit Union
Marin IJ
People’s Choice Best Credit Union
Petaluma Argus-Courier
People’s Choice
Best in Four Categories
Sonoma Index-Tribune
Best Bank/Credit Union and Best Financial Services Firm
Napa Valley Register
Readers’ Choice Best Credit Union
The Press Democrat
Best Place to Work
in the North Bay
North Bay Business Journal
RCU is ranked 2nd overall in California, based on a nationwide survey of consumers about their banking relationships.
–Brett Martinez
RCU achieved a score of 97 on the EPA’s 1 to 100 scale, meaning we met their strict energy performance standards, outperforming 97% of similar buildings nationwide.
9th time winning!
5 consecutive years!
14th time winning!
9 consecutive years in both counties!
5 consecutive years!
10 consecutive years!
16 consecutive years!
10 consecutive years!
Best Bank/Credit Union in Napa Valley Register’s first-ever readers’ poll!
For financial institution, insurance agent, financial planner, and mortgage broker.
RCUCF
Even with a milder fire season, two communities in RCU’s field of membership were significantly impacted by wildfires and 86 families lost their primary homes in the Cache and Hopkins fires. RCUCF gave $63,500 to offer immediate relief to our Members and neighbors in Lake and Mendocino counties. The support made a huge difference to people trying to rebuild their lives.
Community Resilience
Clearlake Council Members Russ Cremer and Dirk Slooten receive an RCUCF check from Lower Lake Branch Manager Becky Perez to build a storage unit to hold emergency supplies. When the Cache Fire occurred, there was no place to store much-needed supplies. As a result, we pivoted to solve this greater community need in partnership with the City of Clearlake.
Message from the President & CEO
As a local financial cooperative, our purpose has always been to provide a safe, stable, and trusted place for people to take care of their finances—no matter what. While the pandemic continued to affect the world in 2021, it was especially difficult for us in Northern California as many of our local communities were still recovering from several years of devastating wildfires, evacuations, rolling power outages, and floods. Yet through it all, RCU remained a constant in providing resources, service, and support to our communities.
With a focus on supporting financial and emotional resilience in a time of great change, we created a series of free, online resources, including targeted student wellness videos to help kids of all ages cope with stress during challenging times.
READ MORE
Business Loans
RCUpay
IRAs & HSAs
Members can access their payment cards digitally in the mobile app. If a card gets lost or stolen, this offers quick access to new card details.
Replacement Cards
Fraud & Security
New Insurance Website
New RCU Website
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Maturing Certificates
Napa
Napa administrative offices are on track to open summer 2022. This location will allow us to continue to grow to meet the increasing demand for our services, including a full-service branch, DMV services, and added space for our expanding workforce.
RCU Auto Services
RCU Auto Services remodeled its dealership to offer contemporary spaces to meet and tablets for a better purchasing experience. Or customers can complete their entire car-buying experience online.
Novato
*
*Insurance products are not deposits of Redwood Credit Union and are not protected by the NCUA. They are not an obligation of or guaranteed by Redwood Credit Union and may be subject to risk. Any insurance required as a condition of an extension of credit by Redwood Credit Union need not be purchased from Redwood Credit Union and may be purchased from an agent or an insurance company of the Member’s choice. RCU Insurance Services is a Redwood Credit Union company. Business conducted with RCU Insurance Services is separate and distinct from any business conducted with Redwood Credit Union. License no. OD91054.
**Non-deposit investment products and services are offered through CUSO Financial Services, L.P. (“CFS”), a registered broker-dealer (Member FINRA/SIPC) and SEC Registered Investment Advisor. Products offered through CFS: are not NCUA/NCUSIF or otherwise federally insured, are not guarantees or obligations of the credit union, and may involve investment risk including possible loss of principal. Investment Representatives are registered through CFS. The credit union has contracted with CFS to make non-deposit investment products and services available to credit union members.
Free Online Resources
Bilingual Outreach
We partnered with the Latino community to provide financial education in Spanish. Napa branch manager Mario Gutierrez is helping bridge the language barrier, offering access to information in Latino communities. For his achievements, he received North Bay Business Journal’s Latino Business Leadership Award.
Student Wellness Videos
To support financial and emotional resilience in a time of great change, we created a series of free, online resources. And of course, we stepped up to work with Members one on one. Watch this video to see how we helped one Member lower her monthly payments.
In response to rising concern around student mental health, we produced four free videos to help children, youth, and their support networks identify and successfully manage their emotions. We also produced a video called “Self-Care and Stress Management” to provide wellness resources for adults.
Message from the Audit & Enterprise Risk Committee Chair
As the Chair of your Audit & Enterprise Risk Committee, it’s my pleasure to report that Redwood Credit Union continues to deliver strong financial performance. That is thanks, in no small part, to the vision and dedication of your Credit Union’s leadership team, and the loyalty and participation of our Members.
The results of our annual opinion audit, conducted by an independent certified public accounting firm, concluded that Redwood Credit Union continues to be a model of financial strength and stability. Our industry regulator, the National Credit Union Administration, and our state regulator, the Department of Financial Protection and Innovation, also confirmed these findings in their 2021 audit. Additionally, Bauer Financial once again gave RCU its highest 5-star rating for financial strength.
READ MORE
7,382
Members served by online chat
Johnathan Logan
Associate Board Member
Volunteer since 2021
Greg McGuirk
Emeritus Board Member Volunteer since 1980
Dave Imoto
Committee Member
Volunteer since 1989
Lisa Wittke Schaffner
Committee Member
Volunteer since 2012
M. Christina Rivera
Committee Secretary
Volunteer since 2014
Johnathan Logan
Committee Member
Volunteer since 2021
Judy Herrerias-James
Committee Chair
Volunteer since 2013
AUDIT & ENTERPRISE RISK COMMITTEE
RCU SERVICES GROUP BOARD OF DIRECTORS
Jim Olmsted
Board Member
Volunteer since 1993
Judy Herrerias-James
Board Secretary
Volunteer since 2013
Gina Carter
Board Vice Chair
Volunteer since 2015
Brett Martinez
Board Member
serving Members since 2002
Debra Watts
Board Chair
Volunteer since 1976
While many institutions temporarily or permanently closed their doors and reduced staffing during the pandemic, RCU remained available and dedicated to our Members and communities. We kept our branches open to serve in a safe and secure way, we answered the phones while improving wait times, and we added more features to our online, mobile, and convenience services to enhance your banking experience. All this wasn’t easy, but it’s a testament to the passion we have to serve you, the dedication of our team, and their desire to help you achieve your financial goals.
Among the other enhancements we made last year was the remodel of our Novato branch for improved access and service. We also made updates to our auto dealership, RCU Auto Services, to provide a more personalized auto buying experience, including the ability to complete your purchase online. And we introduced a new website for RCU Insurance Services, allowing you to get quick quotes for all your insurance needs and the ability to access your policies in our mobile app. This report provides more details on these programs, our financial performance, and more.
For such a challenging year, I’m proud of all we were able to accomplish. Additionally, I would like to acknowledge that none of it would have been possible without the passion and dedication of our hardworking team and our volunteer Board of Directors. RCU is one of only seven North Bay companies to be named Best Place to Work for 16 consecutive years. This is the award I’m most proud of every year, because providing our team with a job they love means they can give you exceptional service, support, and solutions, every day.
We truly appreciate your trust and loyalty, and your support for your Credit Union. We’re honored to serve your financial needs and help you achieve your dreams.
Brett Martinez
President & CEO
We understand the importance of having a safe and trusted place where you can save, borrow, and conduct your financial business. We’re committed to ensuring your Credit Union remains strong and financially healthy so you can have peace of mind. On behalf of your Audit & Enterprise Risk Committee, it’s an honor to serve you.
Judy Herrerias-James
Audit & Enterprise Risk Committee Chair
Forbes
• 3,100 people served
• $9,400 raised for local nonprofits
• 71,000 lbs. of documents destroyed
• 28,500 lbs. of e-waste diverted
Assets
Deposits
Equity
Loans
Membership
December 31, 2021
New & Upgraded Technology
We began 2021 with optimism that the pandemic would soon end and we’d be able to return to a new version of normal life. While that didn’t happen as we had hoped, I’m proud to say that Redwood Credit Union continued to be there for our Members, team members, and communities in all the ways you’ve come to expect. And that’s what differentiates us as a financial cooperative. We collectively work together to improve people’s financial lives and build up the communities in which we live, no matter what.
As Chair of your volunteer Board of Directors, I’m pleased to say 2021 was a strong year for your Credit Union. Our financial strength and tenacity allowed us to navigate the ever-changing environment around us while meeting the evolving needs of our Members and communities.
Compass Family Services helps families who are experiencing homelessness in becoming stably housed, emotionally and physically healthy, and economically self-sufficient. In Napa, we assist Buckelew Programs in helping people with serious mental illness who are homeless or at risk of homelessness to live as independently as possible. These are just some of our many nonprofit partners. Click here to view more 2021 grant recipients.
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Consolidated Statement of Financial Condition (unaudited)
Assets
December 31, 2021
Loans to Members, Net of Allowance for Loan Losses
$4,695,291,615
Cash and Investments
2,526,027,703
National Credit Union Share Insurance Fund Deposit
56,104,877
Accrued Interest Receivable
16,664,146
Property and Equipment
100,807,037
Other Assets
35,264,665
Liabilities
Accrued Expenses and Other Liabilities
44,901,560
Members’ Shares
$6,588,960,503
Members’ Equity
Unrealized Gain on Available-for-Sale Investments
23,488
Realized Earnings
796,274,492
Interest Income
Interest on Investment and Cash Equivalents
4,079,002
Interest on Loans to Members
$175,825,680
Consolidated Statement of Operations (unaudited)
Cost of Funds
Interest on Borrowed Funds
0
Dividends on Members’ Shares
18,779,253
Net Interest Income
161,125,429
(Credit) Provision for Loan Losses
(3,688,805)
Net Interest Income after (Credit) Provision for Loan Losses
164,814,234
Non-Interest Income
72,849,404
Non-Interest Expense
135,033,511
Total Assets
$7,430,160,043
TOTAL LIABILITIES
$6,633,862,063
Total Members’ Equity
796,297,980
Total Interest Income
179,904,682
Total Liabilities and Members’ Equity
$7,430,160,043
Total Cost of Funds
18,779,253
Net Income
$102,630,127
Message from the Board Chair
Message from the President & CEO
As a local financial cooperative, our purpose has always been to provide a safe, stable, and trusted place for people to take care of their finances—no matter what. While the pandemic continued to affect the world in 2021, it was especially difficult for us in Northern California as many of our local communities were still recovering from several years of devastating wildfires, evacuations, rolling power outages, and floods. Yet through it all, RCU remained a constant in providing resources, service, and support to our communities.
With a focus on supporting financial and emotional resilience in a time of great change, we created a series of free, online resources, including targeted student wellness videos to help kids of all ages cope with stress during challenging times.
Message from the Audit & Enterprise Risk Committee Chair
As the Chair of your Audit & Enterprise Risk Committee, it’s my pleasure to report that Redwood Credit Union continues to deliver strong financial performance. That is thanks, in no small part, to the vision and dedication of your Credit Union’s leadership team, and the loyalty and participation of our Members.
The results of our annual opinion audit, conducted by an independent certified public accounting firm, concluded that Redwood Credit Union continues to be a model of financial strength and stability. Our industry regulator, the National Credit Union Administration, and our state regulator, the Department of Financial Protection and Innovation, also confirmed these findings in their 2021 audit. Additionally, Bauer Financial once again gave RCU its highest 5-star rating for financial strength.
Recognized for Our Service
RCUCF’s Board President, Cynthia Negri, received a Credit Union Rock Star award for her leadership in supporting the communities she loves through the Community Fund’s efforts.
To help our communities, we provided more than 4 million dollars, including grants and sponsorships, to support more than 100 local organizations so they could continue to provide vital services to people during the pandemic.
We were honored to be recognized by our communities and our industry, with RCU receiving more than 30 awards throughout the year. We were again named by Forbes magazine as a top ten Best-in-State credit union, ranking 2nd overall in California, based on a nationwide survey of consumers about their banking relationships.
As we look back on Redwood Credit Union’s success in 2021, a major part of the equation was you, our Members. Your trust, support and participation is what allows us to continue to passionately serve the best interests of our Members, team members, and communities every day, and we thank you.
Rod Dole
Chair, Board of Directors
We began 2021 with optimism that the pandemic would soon end and we’d be able to return to a new version of normal life. While that didn’t happen as we had hoped, I’m proud to say that Redwood Credit Union continued to be there for our Members, team members, and communities in all the ways you’ve come to expect. And that’s what differentiates us as a financial cooperative. We collectively work together to improve people’s financial lives and build up the communities in which we live, no matter what.
As Chair of your volunteer Board of Directors, I’m pleased to say 2021 was a strong year for your Credit Union. Our financial strength and tenacity allowed us to navigate the ever-changing environment around us while meeting the evolving needs of our Members and communities.
Message from the Board Chair
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And That’s Why We Partner!
RCU produced its first podcast called
The remodeled Novato branch gives Members a more spacious reception area, improved parking, an additional walk-up ATM, a new 24/7 drive-up ATM, and a dedicated office to assist Members with insurance and wealth management services.
**
Click on awards to reveal
Awards
AWARDS
ANNUAL MEETING VIDEO
09.
Annual Meeting Video
