The Board of Directors' and President's Report

Since it was chartered in 1948, Alaska USA’s mission has been to provide financial services to members, affordably, conveniently and professionally. Throughout the credit union’s 70 years of operations, it has remained true to its original purpose of providing members a safe place to save and earn highly competitive rates on savings and, at the same time, an available source of low-cost credit.

In 2018, the credit union set new records for membership, deposits, loans, net worth, assets, and net income. At year end, assets totaled $7.65 billion with net worth of $720.6 million, and the credit union membership totaled 664,502.

Better than Banking

In terms of financial performance, 2018 was one of the most successful years in the credit union’s history. At the same time, the credit union expanded and enhanced services and processed a record 387 million transactions and 101,971 new loans totaling over $3.9 billion. The majority of this loan volume was consumer loans as the credit union continued to expand its market presence in Arizona, Washington and the high desert region of Southern California.

As a member-owned cooperative, Alaska USA transfers value to members by providing services more cost effectively than other financial organizations. To measure the credit union’s success in this regard, the value transferred is rigorously calculated based on the dollar benefit Alaska USA members receive from higher rates on deposits, lower loan rates, and lower fees compared to those of competing banking institutions. We are pleased to report that this value transfer to members in 2018 was $131.43 million, an approximate return of $198 per member.

People Helping People

In addition to returning profits back to the members, Alaska USA is committed to serving the communities in which members live, work and attend school. Through corporate giving and community support programs, Alaska USA contributed nearly $750,000 to non-profit organizations in more than 50 distinct communities, and employees separately donated over $38,000 to the United Way in 2018. Charitable contributions weren’t limited to the credit union and its employees; credit union members donated over $70,000 to local food banks in the annual “Cash for Cans” food drive, and an additional $53,000 to the Alaska USA Foundation, an organization that directly funds needs-based services to children, veterans, and active duty members of the armed services. While financial support of non-profit organizations is incredibly important to the cooperative mission of the credit union, Alaska USA employees in Alaska, Arizona, California, and Washington also volunteered more than 1,500 hours supporting organizations they are passionate about.

As financial security is a cornerstone of a strong society, we focused on providing financial literacy courses to over 1,700 school-aged children, and nearly 3,000 high school students participated in financial reality fairs presented by credit union staff. Lastly, we hosted numerous retirement, Social Security, and Medicare seminars ensuring members are financially prepared for major life events.

Right Where You Belong

In terms of service, numerous enhancements were made during the year to make the credit union more convenient for members. At year end, the credit union operated 75 branches, which includes nine financial centers in four states as well as a 24/7/365 contact center. Additionally, planning was completed on a new financial center in Renton, Washington. Finally, several enhancements were made that improved electronic and mobile account password security and a new feature was introduced that allows members to control when their Visa® debit and credit cards can be used.

Another way the credit union measures its success in serving members is to conduct regular surveys asking members their opinion about the level of service the credit union provides. This member service survey has been conducted each month for the last 20 years. In 2018, the survey responses revealed the highest levels of member service satisfaction ever recorded. In addition, the credit union was again selected by consumers as the favorite financial institution in ten separate communities, including the four largest market areas in Alaska. Also, mortgage operations received several first place awards as the best mortgage company and the credit union business and commercial lending program was honored once again by receiving an award recognizing it for providing the largest number of small business loans in Alaska.

Strength in Members ®

On November 30, South Central Alaska communities were heavily impacted by a 7.1 earthquake. Thankfully, there were no fatalities. The credit union quickly acted to ensure the safety of employees while simultaneously ensuring members everywhere could continue accessing their accounts without interruption. This real world test of the credit union’s disaster planning proved that we have incredibly resilient business continuity and that we have the capabilities to serve members no matter what happens.

Alaska USA has a 70-year history and proud record of serving members and helping them during both good and bad economic times. This commitment was fulfilled when on December 22, the Federal Government shut down nine executive departments, affecting nearly one-fourth of government activities. The result was over 800,000 federal employees were either furloughed or were required to work without being paid. Alaska USA stepped in and we are pleased to report that the credit union was able to support nearly 1,000 members through the government shutdown. We offered payment deferrals on existing loans and a special paycheck relief loan with a 0% interest rate and delayed first payment to assure members had peace of mind. In total, we were able to assist members in keeping over $15 million in existing loans current and providing almost $500,000 in paycheck relief loans to members during that uncertain time.

We are confident that Alaska USA’s experience, sound business philosophies and practices, and strong financial foundation position the credit union well to meet the many challenges and opportunities that lie ahead. We are certain that Alaska USA’s 71st year of operation will be another year of success in serving members’ financial needs.

We want to thank the membership for their nearly seven decades of support and participation in the credit union. We also want to congratulate and thank the volunteer officials and all the employees for their service to members and contributions to Alaska USA in 2018.

Bobby W. Alexander

Ronald E. Lee

Geri M. Wacker

Gary L. Sholly

Kent B. Berthiaume

Richard F. Hawley

Lorran J. Skinner

Geoff Lundfelt


1st Vice Chairman

2nd Vice Chairman





President and CEO

Alaska USA Through the Years

1948 – 1959: A community comes together

In 1948, 15 civil service personnel pool their personal savings to form a credit union. It’s operated entirely by volunteers for the first 11 years.

1975 – 1983: A legacy of firsts

Alaska USA becomes the first credit union in the nation to make a 30-year mortgage loan, and establishes the Alaska Option Services Corporation; the first shared Electronic Funds Transfer network in Alaska to provide ATM services.

1986 – 1995: Expanding member services

Alaska USA Insurance Brokers is added to the suite of member services provided by the credit union, and online account access becomes available as more and more members start accessing the internet.

2003: Giving back

The Alaska USA Foundation is established to raise funds for charitable organizations that provide needs-based services to children, veterans, and active duty members of the armed services and their families. By 2018, Foundation donations to community non-profits totaled nearly $2 million.

2009 – 2014: Spreading out

Alaska USA brings it’s not-for-profit model to San Bernardino County, California, receives a Washington Community Charter, and opens it’s first branch in Glendale, Arizona, as membership surpasses 500,000.

2018: A milestone 70 years in the making

Alaska USA opens its Operations Center in Glendale, Arizona. This state-of-the-art facility houses card services, collections, consumer lending, item processing, contact center, mortgage operations, personnel offices, and regional branch administration in an ideal geographic location.

Better than Banking

Alaska USA reinvests in members, providing better products and services for less.

21,751 / 3.38%

Increase of members prior year-end



$419.19 / 5.80%

Increase in millions over prior year-end




Increase over prior year-end balances




Amount paid per member

Commitment to Members

“The best investment we can make is a loan to a member. It’s the reason the credit union was founded, and it will be what carries us into the future.”

Wayne Bailey, Chief Lending Officer

As a financial institution, Alaska USA thrives when members find financial success. The credit union helps members achieve financial wellbeing through a comprehensive portfolio of products and services, thoughtful, skilled, and well-trained professionals, and by ensuring members receive services for less than they might elsewhere.

Alaska USA prides itself on a knowledgeable employee workforce. Across the organization Alaska USA has accredited financial advisors and insurance brokers who are experts in all facets of the coverage they research for members, experienced mortgage loan originators with Certified Military Housing certification, and a dynamic executive staff with years of experience in working directly with members.

We Are Where You Are

The benefits of Alaska USA membership follow you wherever you go.









Commitment to Community

Healthy communities benefit everyone. Alaska USA’s commitments extend beyond members and into the communities we serve. Through financial donations and volunteerism, Alaska USA supports a wide variety of charitable organizations and non-profits.

Armed Services YMCA

Alaska USA honors its deep military roots by supporting organizations like the Armed Services YMCA, which provides specialized programs and services focused on building resilient military families that can thrive under the immense challenges they face.

Kids Day

Alaska USA is the primary sponsor of Kids Day, an annual event focused on family fun and celebrating youth. 80 youth-serving organizations provide no-cost programs and a day of fun activities, including free access to the Alaska Zoo courtesy of Alaska USA.

United Way

In 2018, Alaska USA employees raised more than $38,000 to benefit the United Way. Funds were used to help families become financially stable, to prepare kids for future success in life and work, and to connect families with affordable healthcare options.

Children’s Miracle Network

Contributions from Alaska USA helped fill the financial gap in funding for some of the more than 10 million sick and injured children that visited a children’s hospital in 2018.

Financial Reality Fairs

Financial education begins with a strong foundation in personal finance and budgeting. Alaska USA provides Financial Education programs and supports the credit union community’s Get Real Financial Reality Fairs to help youth participants understand how short-term financial choices can have long-term implications. In 2018, Alaska USA employees volunteered to coach over 4,700 students through real life scenarios and events to prepare them for the future.

Financial Education

Alaska USA launched an online Financial Learning Center to offer members and prospective members valuable financial wisdom and familiarize them with Alaska USA’s broad suite of products through compelling educational content. An integrated marketing campaign was developed to introduce the Financial Learning Center through branch advertising, online advertising, and social media engagement. The Learning Center features a suite of more than two-dozen educational articles demonstrating members how to save, grow, and manage their money.

It’s About Community

Supporting the people and organizations that are passionately dedicated to improving our communities.







Supervisory Committee Report

The credit union’s Supervisory Committee is comprised of five volunteer members who function as the credit union’s audit committee. It is the Committee’s responsibility to ensure that internal controls are effectively maintained; accounting records and reports are promptly prepared and accurately reflect the results of operations; the operation of the credit union is in accordance with the policies and procedures established by the Board of Directors; and member account inquiries are promptly and fairly considered. Your Supervisory Committee has fulfilled these responsibilities during the past year as follows:

  • Retained Crowe Horwath, a certified public accounting firm, to conduct the credit union’s annual audit;

  • Worked with the credit union’s Internal Audit department to ensure that internal controls were maintained;

  • Responded directly to members with account inquiries;

  • Completed a random sample verification of member account balances and of closed accounts through direct correspondence; and

  • Met regularly, and as required, to consider matters that were within the Supervisory Committee’s area of responsibility.

It is our opinion that the enclosed financial statements fairly and accurately reflect the financial condition of Alaska USA Federal Credit Union on December 31, 2018, and that the credit union operates and is managed on a sound basis, in accordance with current federal regulations.

RaeDene K. Turner

Craig S. Wood

Thomas E. Holder

Willard Lacy

Catherine M. Woods






Consolidated Statements
of Financial Condition

December 31, 2018 and 2017
(Dollars in thousands)
2018 2017
Cash and due from financial institutions $123,691 $128,034
Interest bearing deposits in other financial institutions 93,517 137,608
Securities purchased under agreement to resell 395,404 212,608
Total cash and cash equivalents 612,612 478,250
Investment securities available for sale 324,947 332,942
Member Loans
Loans to members, net of allowance of $49,579 and $48,203
as of December 31, 2018 and 2017 6,195,684 5,875,288
Real estate loans held for sale 80,179 120,063
6,275,863 5,995,351
Deposit in National Credit Union Share Insurance Fund 62,605 57,034
Federal Home Loan Bank stock, at cost 8,677 7,978
Accrued interest receivable 19,755 14,909
Other receivables 13,747 10,604
Premises and equipment, net 192,292 183,466
Assets acquired in liquidation of loans, net 5,047 6,220
Goodwill and intangible assets, net 6,410 6,964
Mortgage servicing rights 43,977 40,724
Net pension asset 67,552 79,215
Other assets 16,606 17,240
Total assets $7,650,090 $7,230,897
Members’ share accounts $6,957,234 $6,564,364
Accrued expenses and accounts payable 117,143 136,428
Total liabilities 7,074,377 6,700,792
Members’ equity
Statutory reserves 42,658 42,658
Undivided earnings 677,898 624,823
Accumulated other comprehensive loss (144,843) (137,376)
Total members’ equity 575,713 530,105
Total liabilities and members’ equity $7,650,090 $7,230,897

Consolidated Statements of Income

Years Ended December 31, 2018 and 2017
(Dollars in thousands)
2018 2017
Interest income
Interest and fees on member loans $242,507 $217,945
Interest on investment securities 11,343 9,444
Other interest income 9,089 6,952
262,939 234,341
Interest expense
Dividends on members’ shares 38,876 28,729
Borrowings 1,689 3,793
40,565 35,522
Net interest income 222,374 201,819
Provision for loan losses 32,940 45,370
Net interest income after provision for loan losses 189,434 156,448
Noninterest income
Interchange fees 44,534 40,162
Other fees and charges 41,937 43,967
Net gain on sale of real estate loans 22,828 27,037
Other 29,164 27,842
Total noninterest income 138,463 139,008
Noninterest expense
Compensation and benefits 166,396 166,113
Office operations 27,936 25,447
Office occupancy 22,224 27,382
Other 53,266 49,970
Total noninterest expense 274,822 268,912
Net income $53,075 $26,544

2018 Executive Staff

Geoff Lundfelt

President and CEO

Wayne Bailey

Chief Lending Officer

Mike Brady

Chief Information Officer

John Cassidy

Chief Financial Officer

Tom Newins

Chief Operations Officer

Rachel Norman

Chief Administration Officer

Cory Schwab

Chief Risk Officer

Dave Hamilton

Executive Director, Business & Commercial Services

Scott Hansen

Executive Director, Consumer Lending

Steve Larson

Executive Director, Mortgage & Real Estate Lending

Julia Niziolek

Executive Director, Insurance & Investment Services

Chris Brown

Senior Vice President, Special Credits

Scott Chertkow

Senior Vice President, IM Applications

Shannon Conley

Senior Vice President, Branch Administration

Jessica Graham

Senior Vice President, General Counsel

Nelson Lowe

Senior Vice President, Treasury

Rochelle Marshall

Senior Vice President, Marketing

Dan McCue

Senior Vice President, Corporate Relations

Phenie Miller

Senior Vice President, Member Service Center

Tod Miller

Senior Vice President, Indirect Consumer Lending

Elizabeth Pavlas

Senior Vice President, Operations

Troy Shelden

Senior Vice President, Accounting

Brian Spink

Senior Vice President, Internal Audit

Bob Thompson

Senior Vice President, Corporate Properties & Supply

Marci Aguayo

Vice President, Branch Administration, SW Region

Michelle Bradshaw

Vice President, Applications, Glendale Data Center

Vilma Chavez

Vice President, Commercial Services Administration

John Collins

Vice President, Mortgage Operations

Joe Crosson

Vice President, Direct Consumer Lending

Mendy Daugherty

Vice President, Operations Center

Leisa DeYarmon

Vice President, Special Credits Collections

Holli Frenchik

Vice President, Consumer Loan Administration

Cindy Fry

Vice President, Branch Administration, PNW Region

June Gardner

Vice President, Operations

Clinton Hess

Vice President, Financial Analysis

Doug Horner

Vice President, IM Operations

Brenda Lind

Vice President, Personnel

Stephanie Maxwell

Vice President, Digital Channels

Robert McNaughton

Vice President, Business & Commercial Lending

Julie Moore

Vice President, Mortgage Administration & Compliance

Athar Nazir

Vice President, Special Credits Operations

Sharlyn Ruyan

Vice President, Member Service Center

Jayson Schmett

Vice President, Secondary Marketing

David Vanzant

Vice President, Enterprise Security

Sonya Watkins

Vice President, Branch Administration, AK Region

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