2019

ANNUAL REPORT

Building the Foundation for Future Growth and Enhanced Member Service

2019 was a pivotal year for ILWU Federal Credit Union. In addition to experiencing a remarkable increase in deposits, loans, and membership, we also forged ahead with several major initiatives that will ensure the Credit Union’s future strength and stability, while focusing our commitment to our members and the ILWU Community.

In 2019, we saw tremendous growth in assets. Deposits rose by 9.00% to more than $254 million and our assets grew significantly by 9.72% to just under $292 million. The Credit Union finished the year with a Return on Assets (ROA) of 0.95% and a Net Worth of 11.61%, which is strong in comparison to our peers and is well above the federal regulators’ well-capitalized threshold of 7.00%. Our total loans increased 16% to more than $219 million. We loaned more money to our members (in the form of auto loans, credit cards, personal loans, and real estate loans) than any other year in ILWU Federal Credit Union history!

Thank you for referring your union brothers and sisters and family members to ILWU Federal Credit Union. More than 2,000 people joined the Credit Union in 2019, making this the largest year of membership growth we have ever experienced! A thriving membership keeps our pricing and product offerings competitive, so you keep receiving great rates and products that match your lifestyle.

In June, ILWU Federal Credit Union relocated its headquarters to Long Beach, California. This larger, state of the art facility allowed us to create a better work environment for our staff, expand our Call Center, and establish back office operations and improved technology to provide more efficiencies, so we can better serve our members now and in the future.

A full-service branch and ATM opened in late August at our new headquarters location. This Long Beach Branch benefits over 5,000 members who live in the surrounding areas. We held a Grand Opening Celebration in November, so members and union officials could tour the new branch and headquarters and see the impact this facility will have on improved member service and future growth.

Another major milestone achieved in 2019, was our successful conversion from a state chartered to a federally chartered credit union. Our members supported the change and voted to approve the new charter in July and the change became official in September. Converting to a federal charter solidified our commitment to serving the members of the ILWU and gives us the opportunity to serve ILWU Locals in other states on the west coast, including Alaska and Hawaii, upon request. This charter conversion was the best option to continue providing our members with the best service from a strong and safe credit union for years to come. On behalf of the Board of Directors, we thank you for supporting this proposal.

As a result of our charter change, members of Local 142 Hawaii Longshore Division became eligible to join ILWU Federal Credit Union. We were thrilled to welcome our ILWU brothers and sisters in Hawaii into our Credit Union family. In September, we opened a small office at Local 142 to serve our new members and we are excited to announce we will have a new, full-service Honolulu Branch in the Summer of 2020. Aloha Local 142! We are honored to have the opportunity to serve you.

In 2019, we continued to offer products and services to help our members save more of their hard-earned dollars. We rolled out several Certificate of Deposit promotions, including a new Flexible CD, so members can maximize their savings. Our low-rate auto loan pre-approvals and credit card balance transfer offers assisted members with easy lending solutions which helped keep their loan payments affordable. ILWU Federal Credit Union saw members increase their use of our Platinum CARGO Rewards VISA credit cards earning more than one million points on purchases made in 2019. Members have been redeeming their points for cash back, travel, gift cards, merchandise, or donating to ILWU sponsored charities.

CHAIRMAN AND PRESIDENT REPORT

New Headquarters and Long Beach Branch

Pete Ciaramitaro Board Chairman

Ralph Ruiz President/CEO

We are honored to announce that ILWU Federal Credit Union has once again earned a 5-Star Superior rating in all four quarters of 2019 from Bauer Financial, an independent organization that analyzes the strength of financial institutions nationwide. A 5-Star rating indicates that ILWU Federal Credit Union is one of the strongest financial institutions in the nation, excelling in areas such as capital, loan quality, profitability and more. This affirms that your Credit Union continues to be a safe and secure place for your investing and borrowing needs.

As we look forward to 2020 and the new decade ahead, we will continue to develop and enhance products and services to best serve our members’ financial needs. In 2020, we will be creating more access points for our members with expanded Call Center hours, additional ATM locations, and a new full-service branch opening in Honolulu, Hawaii. We plan on upgrading our technology platforms such as online and mobile banking to create an easier and more robust digital experience for our members. We will also update the software for our ATMs and data systems to ensure your information is protected.

For 65 years, ILWU Federal Credit Union has been proudly serving the ILWU Community. We would like to thank our members, employees, management, and volunteers, for your continued support in the success and growth of our Credit Union. Together, we are building an organization that is making a difference for ILWU Members and their families.

Thank you for your loyalty and your trust in us.

The Supervisory Committee is comprised of volunteers who make sure that member assets are managed properly through sound financial policies, procedures, and controls. The Committee is tasked with overseeing the annual financial statement audit from a licensed, independent auditor to ensure that the Credit Union’s financial statements comply with Generally Accepted Accounting Principles and fairly represent the financial condition of ILWU Federal Credit Union.

This year, the Supervisory Committee hired the independent certified public accounting firm of CliftonLarsonAllen to audit the Credit Union’s financial statements. The Supervisory Committee also employs Mainsail Trim to perform periodic internal audits throughout the year. We are pleased to report that the 2019 annual audit was completed successfully, and ILWU Federal Credit Union’s financial statements were certified as fairly and appropriately presented, and in accordance with Generally Accepted Accounting Principles.

As Chairman, I would like to thank the Supervisory Committee for managing this important task in the best interest of our members. On behalf of the Supervisory Committee, I would like to thank the Board of Directors, management team, and staff for their ongoing commitment to the Credit Union. As a result of their efforts, the membership can rest assured that their accounts are safe, sound, and secure.

COMPARATIVE INCOME STATEMENT

Interest on Loans

Interest on Investments

Other Income

TOTAL INCOME

Operating Expenses

Provision for Loan Loss

Member Dividends

Interest on Borrowed Funds

NCUSIF Stabilization Expense

Total Expenses

NET INCOME

For the 12 months ending December 31

9,909,621

983,901

5,316,843

$16,210,365

11,165,226

577,351

1,281,860

5,404

-

$13,029,841

$3,180,524

12/31/2019 12/31/2018

For the 12 months ending December 31

COMPARATIVE STATEMENT OF FINANCIAL CONDITION

7,384,245

46,917,464

188,681,789

(997,930)

8,729,786

15,365,498

$266,080,852

233,512,770

1,792,221

$235,304,991

1,362,883

29,905,251

(492,273)

$30,775,861

$266,080,852

Cash

Investments

Loans

Allowance for Loan Loss

Fixed Assets

Other Assets

TOTAL ASSETS

Member Deposits

Other Liabilities

Total Liabilities

Regular Reserve

Undivided Earnings

Unrealized Gain/(Loss)

Total Equity

TOTAL LIABILITIES + EQUITY

12/31/2018

11,441,021

1,162,760

5,230,784

$17,834,565

12,368,683

782,466

2,041,689

2,665

-

$15,195,503

$2,639,062

Armando PorrasChairman, Supervisory Committee

12/31/2019

9,492,671

33,661,842

219,739,695

(1,250,650)

13,958,023

16,345,002

$291,946,583

254,626,486

3,263,863

$257,890,349

1,362,883

32,544,313

149,038

$34,056,234

$291,946,583

SUPERVISORY COMMITTEE REPORT 2019 FINANCIAL STATEMENT

• Alex’s Lemonade Stand Foundation for Childhood Cancer

• Axe ALS Fundraiser

• BALMA Scholarship Program

• Boys & Girls Club of Los Angeles Harbor

• California State University, Dominguez Hills Labor Studies Department

• Dana Middle School

• Harry Bridges Project

• House of Ruth

• ILWU Ladies Auxiliary 8

• ILWU Pensioners

• ILWU Alcohol and Drug Recovery Program

• ILWU Local 13, 63, 94, Pensioners and ILWUCU High School Scholarship Program

• Inlakech Cultural Arts Center

• Lend a Hand Foundation

• Port of L.A. High School Softball and Baseball Teams

• Port of L.A. High School Scholarship Fund

• San Pedro Packages for Patriots

• Port of Los Angeles Fleet Week

• San Pedro Pirate Booster Scholarship Fund

• Shakespeare by the Sea

• Sons & Daughters of Pearl Harbor Survivors

• TEL HI (Telegraph Hill) Neighborhood Center

• That’s Right, Safety First

• Toberman Neighborhood Center

• Top Sail Youth Program

• Union Women in Solidarity

• World Class Youth Foundation

• Wounded Warrior Homes

GIVING BACK IN 2019 COMMUNITY INVOLVEMENT

ILWU Federal Credit Union Proudly Supports These Organizations

ILWU Federal Credit Union proudly supports the causes that are important to our Union brothers and sisters. In 2019, we generously donated to many organizations and schools that impact the communities where our members live and work.

SUPPORTING THE UNION LOCAL EVENTS

• Bloody Thursday Picnics and Festivities

• Harry Bridges Memorial Statue Unveiling

• Harry Bridges Institute Working Class Women’s Luncheon

• ILWU Annual Labor Day Breakfast

• ILWU International Convention and Caucus

• ILWU Walk the Coast Poker Tournament and Port of Hueneme Casino Night

• ILWU Local 6 Member Appreciation Day

• ILWU Local 18 Family Picnic

• ILWU Alcohol and Drug Recovery Program Picnic

• ILWU Annual Feed the Community

• ILWU Holiday Toy Drive

• ILWU Local 142 State Softball Tournament

• ILWU Pensioners Holiday Luncheons

• ILWU Local Holiday Parties

• Iron Sharpens Iron

• Pensioners Convention

• That’s Right, Safety First Golf Tournament

• Tri-Party Golf Tournament

ILWU Federal Credit Union contributed to several ILWU International and Local events, programs, and celebrations in 2019. We donated money, employee volunteers, food, prizes, and giveaways to help support a variety of ILWU Local and community events.

The Credit Union team also supported the various Locals by attending Membership Meetings, Casual Orientations, Elevations, Pensioners’ Meetings, and support rallies.

Board of Directors

Supervisory Committee Executive TeamRalph Ruiz, President/CEORod Jacobs, Vice President of TechnologyPete Koeppen, Vice President of LendingKimberly Mathis, Vice President of OperationsDevric Thomas, Vice President of FinanceRobert York, Vice President of Marketing & Business Development

GRAND OPENING CELEBRATION VOLUNTEERS & LEADERSHIP

ILWU Federal Credit Union hosted a Grand Opening event celebrating the new Headquarters and Long Beach Branch with members, ILWU officials, local officials and pensioners, on a rainy day in November. Guests enjoyed a taco lunch, toured the building, and won some great prizes!

We were thrilled so many came to enjoy the festivities and to see how our new headquarters will benefit our members and enhance the overall member service experience.

Sixto Rodriguez, Former Board MemberSixto was a member of ILWU Credit Union for 59 years and served on the Board of Directors for 17 years, from 1989-2006. Sixto was a great Credit Union advocate and volunteer. Even after serving on our Board, he attended almost every Annual Meeting and Credit Union event. It was always a pleasure seeing Sixto and hearing stories from back in the day.

Sixto passed away on March 13, 2020. We were honored and privileged to have his leadership, experience, and friendship for so many years. He will be dearly missed.

IN MEMORIAM

Robert BrooksVice Chairman

Victor GallardoSecretary

Ralph RuizTreasurer

Pete CiaramitaroChairman

Armando PorrasChairman

John CastanhoMember

James HaukeMember

Daniel MirandaBoard Member

Daniel ImbagliazzoBoard Member

Curtis CarterBoard Member

Rasheeda Marsh, Oakland Member Services RepresentativeRasheeda joined the ILWU Credit Union family as a Member Service Representative at our Oakland Branch in 2017. She was a great employee who was always willing to step up and assist wherever needed. Rasheeda was a valuable team member and we are forever grateful to her for her service. She had a vibrant personality and helped serve so many of our members.

Rasheeda passed away on February 23, 2020. We are thankful for the opportunity we had to know and work with Rasheeda. She will be dearly missed and fondly remembered.

Coming Soon in 2020...New Hawaii Branch!

Honolulu, Hawaii

Proudly Serving the Financial Needs of the ILWU Community.

Wilmington Branch 1134 North Avalon BlvdWilmington, CA 90744

Oakland Branch95 Linden Street, Suite 12

Oakland, CA 94607

LOCATIONS

San Pedro Branch 860 North Western Avenue

San Pedro, CA 90732

BALMA Office400 North Point Street

San Francisco, CA 94133

Long Beach Headquarters3447 Atlantic Avenue

Long Beach, CA 90807

Office at Local 142451 Atkinson DriveHonolulu, HI 96814

866-4ILWUCU (866.445.9828) www.ilwucu.org

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