Whatcom Educational Credit Union

OUR MISSION IS TO MAKE A MEANINGFUL DIFFERENCE IN THE LIVES OF OUR MEMBERS.

LOAN PORTFOLIO (CREDIT CARDS, AUTO, PERSONAL AND OTHER TYPES):LOANS TO MEMBERS INCREASED BY 9.4%, OR $140.5 MILLION FROM 2020 TO 2021. LENDING WAS STRONG, WITH RECORD-SETTING MONTHS CULMINATING INTO A RECORDSETTING YEAR. WECU ORIGINATED $796.58 MILLION IN 2021. THE OVERALL IMPACT IS TREMENDOUS FOR OUR MEMBERS AND THE COMMUNITY AT LARGE. IN MANY CASES, THE FINANCING DECREASED MEMBERS' MONTHLY AND ANNUAL DEBT OBLIGATIONS, PROVIDED AFFORDABLE TRANSPORTATION AND HOUSING, AND CONSOLIDATED DEBT. THE INCREASE IN CONSUMER LENDING PRODUCTS IS NOTEWORTHY. ALL OTHER CONSUMER LOAN ORIGINATIONS INCREASED FROM $54.84 MILLION IN 2020 TO $84.69 MILLION IN 2021, REPRESENTING A 39.78%, OR $21.82 MILLION, INCREASE IN PRODUCTION.DESPITE THE MUCH-LAUDED ECONOMIC STRENGTH THROUGH THE PANDEMIC RECOVERY, THERE WERE STILL CHALLENGES. IN PARTICULAR, THE SUPPLY CHAIN ISSUES PRESENTED CHALLENGES WITH SUPPLY TO ORIGINATE LOANS THROUGH THE INDIRECT CHANNEL. MANY DEALERS HAD LITTLE TO NO INVENTORY. THIS IS A TESTAMENT TO WECU'S INDIRECT TEAM, AS THEY FOCUSED PRIMARILY ON RELATIONSHIPS WITH DEALERS TO MAINTAIN OPPORTUNITY. THE INCREASE IN ORIGINATIONS FROM 2020 TO 2021 WAS A RESULT OF CREATIVITY AND RESOLVE.CONSUMER REAL ESTATE, ON THE OTHER HAND, HAD DIFFERENT CHALLENGES. AS WECU WAS TRYING TO PUT THE LARGE CASH BALANCE TO WORK, THE CONSUMER REAL ESTATE TEAM HAD TO AGGRESSIVELY PURSUE EFFICIENCIES IN PROCESS TO MANAGE SUSTAINED VOLUMES. THE TOTAL DOLLAR AMOUNT OF LOANS FUNDED WAS LIFTED BECAUSE THE AVERAGE LOAN AMOUNT INCREASED FROM $200.93 THOUSAND TO $241.26 THOUSAND FROM 2020 TO 2021. IN ADDITION, THE NUMBER OF LOANS ORIGINATED INCREASED BY 13.74%, OR 181 LOANS FROM 2020 TO 2021. WECU ASSISTED 1,498 MEMBERS WITH THEIR REAL ESTATE BORROWING NEEDS.

DEPOSITS AND LIQUIDITY:DEPOSITS INCREASED SIGNIFICANTLY FOR THE SECOND YEAR IN A ROW. TOTAL DEPOSITS INCREASED BY 18.4%, OR $333.99 MILLION IN 2021. THE RESULTING LIQUIDITY POSITION IS EXCELLENT FROM A LIQUIDITY RISK STANDPOINT, BUT AS HIGHLIGHTED PREVIOUSLY, IT HAS AN ADVERSE EFFECT ON THE NET INTEREST MARGIN. IN 2021, 72.62% OR $241.01 MILLION OF THE DEPOSIT GROWTH WAS ATTRIBUTED TO MEMBERS WITH BALANCES OVER $500 THOUSAND OR MORE ON DEPOSIT WITH WECU. MANAGEMENT WILL CONTINUE TO MONITOR DEPOSIT ACTIVITY AND MAINTAIN A BALANCE SHEET STRUCTURED TO MITIGATE THE RISK OF A RAPID CHANGE IN MEMBER BEHAVIOR AS IT RELATES TO HOLDING DEPOSITS.

COMMUNITY INVOLVEMENT:WHILE TECHNICALLY NOT A CHARTERED SERVICE, WECU IS COMMITTED TO COMMUNITY SERVICE AND PROVIDES SUPPORT TO A LARGE NUMBER OF LOCAL EDUCATIONAL, HEALTH AND COMMUNITY CONCERNS.IN 2021, HELPING MEMBERS AND THE COMMUNITY AT LARGE THROUGH THE CONTINUED PANDEMIC WAS STILL A PRIMARY FOCUS. THIS WAS DEMONSTRATED THROUGH SEVERAL ACTIVITIES THROUGHOUT THE YEAR. UNEMPLOYMENT FIGURES WERE IMPROVING BUT NOT RAPIDLY, AND CONSUMER SPENDING WAS STILL SPUTTERING. AS THE YEAR PROGRESSED, THE PENT-UP DESIRE FOR CONSUMERS TO TRAVEL, SHOP, EAT AT RESTAURANTS, AND RECREATE RESULTED IN POSITIVE ECONOMIC ACTIVITY. THE HOUSING MARKET CONTINUED TO REACH NEW HIGHS CREATING OPPORTUNITIES FOR NEW DEVELOPMENTS AND HOME REMODELS.THE BUSINESS BANKING TEAM HAD ANOTHER BANNER YEAR. AFTER FUNDING 920 PAYCHECK PROTECTION PROGRAM (PPP) LOANS FOR OVER $36 MILLION IN 2020, THE PROGRAM WAS RENEWED IN 2021, RESULTING IN 360 LOANS FOR $11.45 MILLION. THESE NEW LOANS WERE ORIGINATED WHILE SIMULTANEOUSLY WORKING THROUGH THE FORGIVENESS PROCESS OF ALL 1,280 LOANS. IN ADDITION TO THIS, THE TEAM WAS ABLE TO FUND $170 MILLION IN LOANS WHILE FINDING CREATIVE WAYS TO MAINTAIN VALUABLE BUSINESS RELATIONSHIPS IN A HIGHLY COMPETITIVE MARKET.