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Report to Membership 2021

To our members,

We are emerging from the second year of COVID-19, which affected us all in different but profound ways. Everyone at BECU has learned so much during this time as we listened to stories from you—our members—and found new ways of working with one another. We continued to evolve in how we serve our membership and our communities, remaining focused on our purpose: As a cooperative, we bring people together to improve the financial well-being of our members and their communities.

Since our founding in 1935 during the Great Depression, we're no stranger to tough times. We've supported members through the difficulties of war, inflation and challenging personal circumstances, always dedicated to our "People Helping People" philosophy. We've also helped members through baby booms, thriving stock markets, the dawn of technology and more. No matter what, we're relentlessly focused on your financial well-being, the safety and soundness of the cooperative and giving back to the communities we call home.

BECU is now helping even more people, serving over 1.3 million member-owners across the Pacific Northwest and the country, up 4.5% in 2021. We welcomed over 109,500 new members last year. And as the pandemic accelerated virtual access, more members—more than 17,600 in total—joined the credit union via our website, BECU.org.

Along with our membership, member deposits kept growing, setting new records for the second year in a row. New loans reached unprecedented levels exceeding our expectations and we've been able to keep our operating expenses as planned. Thanks to this solid financial footing, our teams can help members navigate this constantly changing economic environment. In fact, BECU members earned and saved an estimated $322.7 million—an average of $245 per member—in the form of better rates and lower fees when compared to an average bank.

We're proud to see our overall efforts making positive impacts, as shown by our 2021 BECU Member Financial Survey. BECU members reported feeling financially healthier in 2021 than 2020 and at higher percentages than national averages. Additionally, more of you felt like you can manage a budget, save for a rainy day and save even more for important financial milestones, such as a down payment on a home, college tuition or retirement.

Our 2021 annual report highlights our efforts from the past year, including new initiatives demonstrating how we responsibly manage the money you entrust with us. Some of you joined BECU because we are member-owned and share our profits amongst our members by providing better rates and fewer-to-no fees. Others joined to help support the communities we live in, knowing we give a greater percentage to philanthropic and educational efforts than the standard financial institution.

A leading BECU value is "Do the Right Thing." In 2021, we made additional strides in our journey toward becoming a more inclusive, equitable organization. We increased philanthropic giving and introduced employee and leadership councils to develop new structures and programs embedding equity and inclusion into everything we do. Employees, members and the community all benefit from having access to financial services while feeling included, fairly treated and set up to thrive.

We're rooted in our foundation while growing through our purpose. These difficult times have made us more robust, more unified, and increasingly dedicated to you and our goal of improving the financial well-being of those around us. At BECU, we look forward to a more hopeful future while bringing the lessons of the past with us. We're honored to be on this journey with you.

Debra Somberg, Chair, BECU Board of Directors

Benson Porter, President & Chief Executive Officer

Continue to other sections of our 2021 Annual Report:

II. BECU + COMMUNITY

III. BECU + CREW

IV. BY THE NUMBERS

I. BECU + YOU

While 2021 wasn't easy for anyone, our members' resourcefulness continued to serve as our inspiration. Our purpose guided us forward, while our strong financial position enabled us to help members. As a cooperative, we bring people together based on shared values and goals. We are proud to do so while aspiring to improve our members' and communities' financial well-being.

Finding Fundamental Strengths

The strength of a cooperative is directly tied to the level of engagement of our members and the ability to attract new members. Over the course of 2021, BECU members increased their deposit and loan activity and grew our membership. We're glad you put your trust in BECU services, and please keep recommending us to family, friends—and basically, anyone you like a lot.

Whether allowance-saving kids, mom 'n' pop shops, or young people buying a first home, we delight in new members. Our membership in 2021 grew by 4.5%. We welcomed more than 109,500 members and 11,600 business members. We now have a little over 1.3 million BECU members and over 68,600 business members.

This year, more of you entered as members and applied for loans through BECU's virtual doorways. Over 17,600 members joined using online tools, a growth of 21.2% from 2020. In 2021, members received more than $1 billion in loans by applying online at BECU.org for a 60% year-over-year growth.

Our members saw BECU as a trusted partner for savings and new deposits. The credit union now holds assets of $30.2 billion, around a 12.7% increase since 2020. For the second year, deposits increased significantly and ended up 16% over 2020 to $26.1 billion.

Our Field of Membership defines who can join BECU. At this point, that's anyone living, working, worshipping, or going to school in Washington state and residents of 10 Idaho counties and 11 Oregon counties. But we don't like leaving anyone behind when it comes to our great rates and service. So, say "Hi" to Oregon's Deschutes County, our newest membership region and home to Bend, a regional powerhouse for powder and fun in the sun.

Count On Us

Whether from Sequim, Spokane or Salem, we welcome your thoughts and questions, and are here to help. Stop in and chat—we love to talk money.

Ways You Counted on Us in 2021:

Our members signal their customer loyalty and experiences via Net Promoter Scores (NPS). To gather NPS, we asked members: "How likely is it that you would recommend our company/product/service to a friend or colleague?" A score of 50% or more is considered excellent. In 2021, we earned an average NPS of 68.85%, well-above averages in the financial industry.

More Money for Members

We're here to improve the financial well-being of our members and their communities. That's why BECU returns profits to members and rewards good financial habits.

Return to Member

Like other financial institutions, it is important to make a profit. Unlike many other institutions, we return a significant amount of those profits to you—not stockholders—in the form of better rates and lower fees. This allows you to keep more cash for saving, spending and investing in your future and community. In 2021, compared to an average bank, BECU members earned and saved an estimated $322.7 million—averaging $245 in each member's wallet.

Our Reprice Program demonstrates how we reward good financial habits. More than 48,000 members saved an estimated $2.2 million last year by improving their credit scores or financial practices. The program automatically lowers a member’s loan rate if their credit score improved over the last year and if they are not already paying the lowest rates.

Member Assistance Relief Programs

In 2021, more than 2,100 payment relief actions helped ease member pandemic impacts by waiving fees and offering deferred payments for members with a balance of $35.3 million.

BECU's efforts to increase and sustain your financial well-being seem to be paying off. In our second annual BECU Member Financial Survey, respondents said they're financially healthier in 2021 at a rate higher than the national average. More BECU members indicated they're saving, too. As a result, our members said they could pursue financial plans and prepare for an emergency or big purchase. Well done.

Building Financial Fitness

Getting fit takes ongoing commitment. We empower members with the necessary financial equipment and coaching you need to go farther and faster.

BECU coached, educated and encouraged 13,100 community and BECU members last year through free programs improving financial well-being today and into the future. More than 1,000 members spoke with trained BECU specialists for a free, confidential Financial Health Check. Members reviewed accounts and personal goals and set up automatic payments and saving transfers to stave off fees, repay debt faster and build rainy-day funds.

GreenPath Financial Wellness provided free one-on-one financial counseling to BECU members. More than 3,700 members used GreenPath Credit and Debt Counseling services, including members who enrolled in debt management plans to repay over $5.4 million in debt.

My counselor with GreenPath Financial Services was wonderful! They gave me hope and treated me with respect and never made me feel bad about my situation.” —BECU Member

We focus on financial health year-round, but from October 4 to November 12, 2021, our Fall Financial Health Campaign spotlighted products and programs to achieve money wellness. Nearly 29,000 members signed up or applied for programs such as financial counseling, a Financial Health Check, no-fee 12-year fixed mortgage refinancing and automated savings.

Spotlight: 2021 Financial Health Month

Our 2021 Financial Health Month didn't just help members, but their communities, too. As a result of the campaign's success, BECU donated $10,000 to the following five nonprofit organizations to support financial literacy and well-being:

  • SNAP (Spokane Neighborhood Action Partners): For financial literacy, women's entrepreneurial, affordable housing and workforce development programs
  • Housing Hope/HopeWorks (Snohomish County): Affordable housing and workforce development programs
  • Business Impact NW (King County): Entrepreneurial programs for women, veteran and minority-owned business owners
  • Trident United Way (South Carolina): Financial wellness programs
  • Opportunity Council (Whatcom County): Financial literacy and affordable housing programs

New Tools

We're not content to rest. We're constantly tweaking, innovating and improving our tools, services and products to serve you better. Here are new features rolled out in 2021:

If you're familiar with the envelope budgeting system, we're testing a new BECU Envelopes digital tool. This tool helps members build emergency funds or save for that new car or home. BECU Envelopes help organize member savings into differently named digital containers. Members can create up to 12 envelopes, each dedicated to an individual savings goal within their BECU savings or Money Market accounts. A team of employees across the credit union is improving the tool based upon member feedback (so far, so good!). We hope to launch Envelopes to all members later this year.

Our team is constantly working to improve the online and mobile experience and members’ suggestions drive many improvements. All in all, our goal is to make it easier for you to bank with us digitally. Mobile app enhancements include adding pending debit transactions, making “Make a Payment Now” available and displaying more credit card payment information, including due dates and minimum payment amounts. For additional security, we introduced automated fraud alerts.

Next time you use Messenger in Online Banking, you may meet our upgraded Virtual Assistant, a new member of the BECU team. The Virtual Assistant helps members get support 24 hours a day, seven days a week, for questions like: How do I set up direct deposit? Which branch is closest to me? Which credit card is best for me?

When members opt to use Bill Discovery, BECU finds billers through a network search or optional soft pull of your credit report, which doesn't impact credit scores. Members can automatically add a biller’s information to their Bill Payment account from the search results. Bill Discovery saves time and makes healthier financial habits even more effortless.

BECU Visa credit cardholders can now view both completed and pending credit card transactions in Online Banking, which can help members better manage their budgets and avoid accidentally going over their credit limit.

We're always finding a way to make financial access more accessible. Our new braille and raised, embossed credit cards for sight-impaired members—for both consumer and business accounts were some of the first among regional banks and credit unions. In addition, after a fresh redesign, our online Money Manager tool meets the needs of our blind and visually impaired members.

A simple phone call can lead to a great new BECU tool. One day last year, BECU Employee Jeanie S. followed up with a member who had called asking, “Can BECU produce a Braille credit card?” She describes it as an "Aha!" moment.

Our vendor partner PSCU produced embossed, raised print Braille cards in response. These cards provide additional independence to blind and visually impaired members. As it happens, the member with the great question has deep BECU roots. Her grandmother was a BECU member going back to World War II, when she worked on the Boeing factory floor. The takeaway: We want to hear your questions and suggestions—you just never know what may be available as a result.

New Services

Creating an accessible approach to money is baked into everything we do—it's just who we are. Here are new BECU services designed to increase ease.

We expanded our loan payment window from 12 to 27 days, simplifying the process for early member loan payments. This new time window allows members to make convenient and budget-friendly payments before the due date, reducing late and misapplied payments. Small change, big member-experience payoff.

We piloted newly expanded access to BECU essential member banking services for people that have been unable to join BECU in the past. More than 3,700 people joined BECU as a result, and we hope to use what we've learned for more accessible products and programs in the future.

Secured credit cards help build credit or re-establish credit history. A secured credit card looks and works like a regular credit card but requires a cash security deposit. The lender holds the deposit to ensure repayment. This year, we changed secured credit card cash limits and deposit requirements. Now, BECU members can start or improve a credit history with as little as $250.

Creating an Inclusive BECU

We are committed to ensuring an equitable experience for our employees, members and communities. This includes supporting the financial well-being of all—with a focus on addressing financial and racial disparities adversely impacting Black, Indigenous and People of Color (BIPOC) communities.

We aim to embed equity and inclusion into every aspect of the way we operate by building structures that look to not only change internal policies and practices, but externally to create more access and inclusion for our members and community. In 2021, we developed councils, policies and programs to advance our equity commitments for employees, members and community.

Learning Together. In addition to recognizing history heritage months, we introduced ways for employees and members to learn from community leaders internally and externally. Topics included understanding racial and economic disparities impacting diverse communities and celebrating the accomplishments of key financial leaders throughout history.

We celebrated 10 Black Financial Leaders for their contributions in our industry during Black History Month and heard from four female leaders about increasing opportunities for women and working toward an equitable future during Women’s History Month. In June, we joined other credit unions in recognizing Juneteenth as an official credit union holiday.

At the 2021 BECU annual Member Summit, “Decolonizing Wealth” author Edgar Villanueva described money's role in the racial justice healing and recovery process.

Equity In Action. In December, we launched a partnership with the Intentionalist for our “Equity in Action: It's On Us" initiative to encourage spending and investment in BIPOC-owned small businesses. Through this initiative, BECU opened tabs at 10 local restaurants, cafes and shops in our service area, so members and employees could drop in and try a tasty treat on us. During our History Heritage months in 2022, watch for more opportunities to try a treat on BECU’s tab, developed with Intentionalist.com, a site focused on supporting local small businesses and diverse owners.

Embracing Respect: We reinforced our 2020 Member Code of Conduct to create a safe, courteous environment for members and employees alike.

Key Partnerships

BECU partners with institutions, organizations and nonprofits sharing our values. We seek out deals and discounts for members and offer members additional ways to give back. The bottom line: Whether you support the Seahawks or Storm, Cougars or Huskies, we support you.

In November 2021, BECU started supporting Gonzaga University's men’s and women’s basketball programs with in-arena signage, giveaways and a booth to promote the credit union.

As the Official Credit Union of the Seattle Seahawks, BECU offers members a booth in Touchdown City to promote the credit union, the chance to win VIP packages and more perks—including the Seahawks Debit Mastercard.

As the Official Credit Union of the Seattle Storm, we donated $1,000 for every 50 Storm assists during games through Seattle Storm's Force4Change, a social justice campaign. Collectively, we helped raise $10,000 for Young Women Empowered (Y-WE), a Seattle-area mentorship-based program serving diverse young women ages 13-26.

BECU sponsors various University of Washington and Washington State University scholarships for BECU members and year-round student activities that promote diversity, community and inclusion, including financial education for student athletes.

At Western Washington University (WWU), we alleviate financial hardship with the Student Emergency Fund collaboration. We also fund five $2,000 BECU Inclusiveness in Education scholarships (with preference given to students demonstrating a commitment to diversity, equity and inclusion) and support the development of WWU College of Business and Economics' financial literacy program. At Eastern Washington University, we support the BECU Black Entrepreneur Opportunity Fellows Program.

In 2021, BECU joined PCC Community Markets' Partner Program to provide co-op members with financial education, a new-member bonus and special offers on credit cards, HELOC loans and mortgages.

We have a lot in common with one of Seattle's favorite radio stations, KEXP. For starters, they're listener-powered and we're member-powered. And now, we've got one of the best collaborations going. You helped us drum up $273,000 in donations for KEXP through transactions from the more than 100,000 branded tape-cassette replica debit cards. That's music to our ears.

BECU loves our Oregon members, so we found an organization as passionate about Portland as we are. In 2021, BECU became an official sponsor of the Portland Timbers soccer club and their Timbers Army. Next time you’re at Portland's Providence Park, look for the BECU sign and LED field signage. BECU partners with the Timbers to improve Portland metro K-5 PE program equipment through their Champions of Play initiative.

BECU and the University of Washington's CoMotion provide support, mentorship, and incubation space to startups selected for the year-long FinTech Incubator program. Winners for 2021:

  • Bumper: An app to create accessible, engaging long-term investing for Gen Z teenagers. With just $1 and an adult account sponsor, teens learn about finance, the stock market and investing through hundreds of interactive educational mini-modules.
  • Joola: Members create or join an existing co-savings group with this app. Every group member makes an equal contribution, with one member receiving a lump sum after every cycle. The co-savings group ends when everyone receives payouts.
  • Pay Your Tuition: Connects families with innovative tech-based college-funding solutions, including private microloans, crowdfunding and work gigs. PYT students are near graduation and need a small amount of additional help after exhausting other options.
  • Stack: Teaching teens how to responsibly invest with crypto by introducing them to the app platform through their family. Built at the cross-section of video game culture and financial education, Stack tailored the user experience to be approachable at the beginning of anyone’s financial journey.

Advocating for You

We regularly work with local, state and federal legislators, advocating on issues important to our membership and organization.

Alongside regulators and policymakers, BECU helps create a financial services environment fair to credit unions and our members. We advocate on issues like protecting consumer data, providing access to homeownership and affordable housing and preserving the credit union tax preferences that help us return profits to members.

In 2021, BECU built better government relations by engaging with elected officials and key partners beyond the credit union movement. We shared our not-for-profit financial cooperative's intrinsic value, ensured equitable business and market opportunity leading to growth, and increased banking service access, as more consumers choose to call credit unions home.

Business and BECU

BECU membership supports local, small and family-owned businesses in our communities. Our banking, merchant and lending services assist our 68,600+ business members in growing their shops and factories, boutiques and businesses, and we’re focused on financing solutions to our region’s housing crisis.

We helped 38,000 LLCs, corporations, and partnerships enroll in our new Business Online Banking platform, with products such as a customizable banking dashboard, business bill pay and entitlement management, which authorizes technology access.

More businesses stayed open and more employees remained on the job, thanks to the U.S. Small Business Administration's Paycheck Protection Program (PPP). We funded 2,500 PPP loans for a total of 70.6 million. Each loan—averaging around $28,800—kept 7,800 jobs on the payroll last year.

I want to thank you for all the effort you and the rest of BECU have put into our PPP experience. You have made a terrifying experience throughout the pandemic much more tolerable for our company, and all of our employees.” —Luke Baugh, Executive Director of Triad River Tours, Minimalist Rafting with Expert Guides in Washington State and BECU Business Member

Our expanded Affordable Housing Loan Program funded more than $19 million in loans and helped create 340+ affordable housing units. The program provides commercial refinancing and rehabilitation loans for leased multi-family units serving low-income tenants (up to 60% area median income) and/or workforce housing tenants (those earning approximately 80%–125% area median income). For example, we helped Bellwether Housing refinance two large apartment buildings in Seattle's South Lake Union area, providing funding to rehabilitate and update 121 affordable housing units.

Additionally, BECU’s Social Investments Program supports nonprofit organizations meeting housing needs in Puget Sound. One example: The 2021 groundbreaking at 686-unit Solera Complex, a mixed-income property in the Renton Highlands. Townhomes, rental apartments, childcare, and retail space will construct an exciting new community. The complex is financed through the Evergreen Impact Housing Fund (EIHF), a public-private collaboration between BECU, four area credit unions, and The Seattle Foundation.

Continue to the next section:

Read other sections of the 2021 Annual Report:

III. BECU + CREW

IV. BECU By the Numbers

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