Federally insured by NCUA.

Annual Report 2018

President’s Message

A commitment to our Vision.

Since the founding of our credit union in 1952, we’ve worked toward our vision of being the

most trusted, respected and sought-after financial institution, providing innovative solutions

and support for our employees, members and communities we serve. Columbia Credit Union

now serves nearly one out of every three households in Clark County and more than 98,000

members. 2018 has been a year of hard work, measurable growth and outstanding service.

Celebrating our growth and service.

I’m happy to report that in 2018 we reached $1.5 billion in assets while expanding on almost

every aspect of our member service. We opened a Scotton Landing branch in Battle Ground, a

Portland Commercial Center in the heart of downtown and installed new ATMs at four of our 13

Clark County branches.

Our organization continues to safely and solidly operate, with year-end capital (or net worth) at

11.23%, which is well above the industry standard. In addition, we saw our assets grow 15.3% in

2018 while our loans grew 17.5%.

Technology increases convenience.

With a focus on advancing technology to make life better for our members, we accomplished

many great things in 2018. We launched our Mobile Wallet capabilities with Apple, Google

and Samsung Pay. We also introduced a new online mortgage application, new account

applications through Online and Mobile Banking and real-time mobile deposit for consumers

and businesses.Steve Kenny President & CEO

Making life better in the year ahead.

Looking forward, we have another exciting year of innovation in store. We’ll overhaul our credit

card options for consumers and businesses. We’ll also undergo a complete redesign of our

website, giving members a modern, mobile-first online experience. In the year ahead, we’ll

continue to seek growth opportunities to expand our convenience while creating partnerships

with organizations that support our local community.

2018 was a successful year of growth, giving back and planning for the future. Thanks to

our directors and staff for all their hard work in helping the credit union build on a strong

foundation to reach new levels of success. And, special thanks to our membership for their

continued support of Columbia Credit Union. In the coming year, we look forward to

achieving membership of 100,000 for the first time in the history of

our financial cooperative.

Chair’s ReportA dedicated and focused team.

Columbia Credit Union is a top performing financial cooperative guided by its management

and Board of Directors to serve our members and support our communities. I’m honored to

serve as part of this strong and dedicated team. I’ve been a Columbia CU member since 2009

and I’m proud to be part of an institution that’s financially healthy and focuses on important

core values: ethics, members, cooperation, innovation, education and community.

Adapting to our members’ needs.

Much of Columbia CU’s strength is demonstrated in its ability to adapt to our members’ diverse

and evolving needs. Mobile wallet, remote deposit and online mortgage applications are

important services enhancing the member experience with digital convenience.

We work to ensure the products and services offered are relevant to our members and we

continue to provide outstanding personal service through our 14 community branches,

member service call center, website chat feature and social media networks.

WE A

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ZE BANKS & CREDIT UNIONS ...VERY CAREFULLY

www.bauerfinancial.com

WE RECOMMEND ALL5 AND 4-STAR INSTITUTIONS

Financial strength and achievements.

Columbia CU’s financial strength and high levels of member, employee and community

satisfaction are celebrated with the awards Columbia CU received in 2018:

• The Columbian’s 2018 Best of Clark County (Credit Union and Financial Services)

• Vancouver Business Journal’s 2018 Best in Business

• Bauer Financial’s 2018 5-Star Rating

• DepositAccounts.com’s Top 200 Healthiest Credit Unions in America (A+ Rating)

• Weiss Ratings’ “Recommended” Rating

• Forbes’ 2018 Best-in-State Credit Unions

• Portland Business Journal’s 2018 Corporate Philanthropy Award

• The Oregonian’s 2018 Top Workplaces

As we look ahead, Columbia Credit Union will continue to grow and

evolve to meet the needs of our members. We’ll always remain

focused on our institution’s mission, vision and core values.

Alishia Topper Board Chair

2018

Columbia Credit Union is dedicated to actively supporting events and causes that

strengthen the neighborhoods where our members and employees live, work and

play. In addition to building partnerships and financial giving, our management

team also gives their time to help make life better across our community.

Our Community Commitment

Follow us. We’re fun.

Making Life Better for Northwest Families.

• The KPTV Toy Drive helped 142 non-profit organizations serve over 100,000 children and families.

• Donated $22,600 to assist organizations serving Veterans in the Portland and Vancouver metro areas.

• Helped Share reach more than 22,000 children experiencing food insecurity.

1,409ManagementVolunteer Hours

+ $324kDonated

$6.6 MillionRaised for Community Organizations

=68Nonprofits

+

Community Support

35%

27%

14%

18%

6%

Individuals & Families

Education

Sustainability

Business/Industry

Health

Mobile Deposits Made

84,421Totaling

$40,498,686

Member Service Calls

174,393

Online Chats

5,704

Branch Transactions

1,421,5902018

2017

Net Lending Line Growth

2017: $1.312 Billion in Assets

2018: $1.513 Billion in Assets

Member Connections

BusinessHomeConsumer

$626.0 Million

$756.8 Million

$242.3 Million

$282.2 Million

$211.5 Million

$230.9 Million

Loans Loans Loans

15.3%increase over 2017

Expanding our digital footprint• Reaching nearly 20k social network users

• New Account: Instagram! Follow us @columbia_cu

• Over 2.6 million website visits

Interest Income 2018 2017

Interest & Fees on Loans to Members $49,845 $39,033

Securities, Interest Bearing Deposits

& Cash Equivalents 3,038 2,895

Total Interest Income 52,883 41,928

Interest ExpenseMembers’ Deposit Accounts 3,651 1,241

Borrowed Funds 13 17

Total Interest Expense 3,664 1,258

Net Interest Income 49,219 40,670

Provision for Loan Losses 5,562 4,618

Net Interest Income After Provision

for Loan Losses 43,657 36,052

Noninterest IncomeFees & Service Charges 4,972 4,956

Wealth Management Income 1,219 1,122

Gain on Sale of Loans Held-for-Sale 2,153 2,315

ATM Income 6,642 6,075

Net Gain on Sale of Securities

Available-for-Sale - 21

Net Loss on Sale of Premises and Equipment (149) (91)

Net Gain (Loss) on Sale of Foreclosed Assets (13) 24

Misc. Operating Income 2,842 1,774

Total Noninterest Income 17,666 16,196

Noninterest ExpenseGeneral & Administrative

Employee Compensation & Benefits 22,894 20,831

Staff and Official Expense 901 757

Office Occupancy 2,767 2,567

Office Operations 4,526 4,243

Computer & Electronic Services 7,527 7,015

Marketing 1,876 1,872

Loan Servicing 2,238 2,005

Professional Services 1,397 1,735

Other Operating Expenses 977 816

Total NonInterest Expense 45,103 41,841

Net Income $16,220 $10,407

Liabilities 2018 2017Members’ Share & Savings Accounts $1,306,710 $1,113,175Borrowed Funds 25,000 30,000

Accrued Expenses & Other Liabilities 13,115 16,696

Total Liabilities 1,344,825 1,159,871

Members’ EquityRegular Reserves 11,039 11,039

Undivided Earnings 158,827 142,607Accumulated Other Comprehensive Loss (1,836) (1,324)

Total Members’ Equity 168,030 152,322

Total Liabilities & Members’ Equity $1,512,855 $1,312,193

Current Assets 2018 2017Cash and Cash Equivalents $114,712 $85,645

Securities – Available-for-Sale 83,845 103,473

Other Investments 2,627 2,727

Loans Held-for-Sale 3,024 3,546

Loans, Net 1,260,742 1,071,955

Accrued Interest Receivable 3,525 2,990

Foreclosed Assets – 45

Premises & Equipment, Net 25,173 24,488 NCUSIF (National Credit Union Share Insurance Fund) Deposit 11,922 10,439

Other Assets 7,285 6,885

Total Assets $1,512,855 $1,312,193

Statement of Financial Condition(shown in thousands)

Assets

Liabilities & Members’ Equity

Statement of Income

(shown in thousands)

Supervisory Committee’s Report

The Supervisory Committee (Committee) of Columbia Community Credit Union (Columbia CU

or Credit Union) is comprised of five members elected by the membership to three-year terms.

The Committee conducted regular meetings throughout 2018.

As a state-chartered credit union, Columbia CU is bound by Chapter 31.12 of the Revised Code

of Washington (RCW). The Committee duties are enumerated in this Chapter. In accordance

with RCW 31.12.335, the Committee must:

a. Meet at least Quarterly;

b. Keep fully informed as to the financial condition of the Credit Union and the decisions of the Credit Union’s Board;

c. Perform or arrange for a complete annual audit of the Credit Union and a verification of its members’ accounts; and

d. Report its findings and recommendations to the Board and make an annual report to

members at each annual membership meeting.

In addition, the Committee must comply with the applicable sections of Part 715 of National

Credit Union Administration (NCUA) rules.

The audit firm of CliftonLarsonAllen LLP was retained to perform the annual audit of Columbia

CU’s financial statements for the fiscal year ending December 31, 2018. The audit determined that

Columbia CU’s financial statements fairly present the financial condition of the Credit Union.

In addition to carrying out its noted statutory duties, the Committee oversees the Internal Audit

department in its broader audit function. The Department, in some cases through its audit co-

sourcing partners, provides an additional layer of review through internal audits and reviews.

Qualifying auditing and consulting firms are used for their expertise to review areas such as

information technology security, business lending, home lending and compliance, to ensure a

thorough, qualified audit or review and an objective internal audit process.

As a result of these various audits and reviews, it’s the opinion of the Supervisory Committee that

the financial condition of Columbia CU is strong. The Committee believes the internal controls,

policies and operations of the Credit Union are in compliance with all governmental regulations.

The support and cooperation from management and staff has assisted the Committee in the

performance of its duties and is greatly appreciated.

Questions or comments regarding financial statements, audits and

information in this Report should be directed to Allan Siegel, SVP

Chief Financial Officer. Copies of Columbia CU’s 2018 audited

financial statements are available from Allan, upon request.

Dick Thompson Supervisory Committee Chair

Board of Directors

Supervisory Committee

Senior Management

Roy JohnsonKelly LoveLarry Paulson

Judith L. ChipmanDave DumasTony Jackson

Steve KennyPresident/Chief Executive Officer

Colleen BocciaSVP/Chief Marketing Officer

Michael FloreaSVP/Chief Data Officer

Carol McCaulleySVP/Chief Human Resource Officer/Legal Counsel

Mark Michaels*SVP/Chief Information Officer

Eric SawyerAl SchauerAlishia Topper

Paul Montague, IIIRichard Thompson

Lynn V. ValenterCarol Van NattaMarci White-Stumpf

Joey Rudisill*SVP/Chief Information Officer

Lindsey SalvestrinSVP/Chief Operating Officer

Allan SiegelSVP/Chief Financial Officer

Wendy SmithSVP/Chief Risk Officer

Marc TimmSVP/Chief Lending Officer

*Served partial year

2018 Leadership

Live or work in Washington State or the Oregon community of Clackamas, Marion, Multnomah and Washington Counties? Join us.

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