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 71 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 2019, the credit union set new records for membership, deposits, loans, net worth, assets, and net income. At year end, assets totaled $8.336 billion with net worth of $791.8 million, and the credit union membership totaled 678,527.

Better than Banking

In terms of financial performance, 2019 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 455 million transactions and 92,827 new loans totaling over $6.605 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 2019 was $122.82 million, an approximate return of $181 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 $706,060 to non-profit organizations in more than 50 distinct communities. Employees separately donated over $28,034 to the United Way in 2019. Charitable contributions weren’t limited to the credit union and its employees; credit union members donated over $93,500 to local food banks in the annual “Cash for Cans” food drive and an additional $51,300 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 co-operative mission of the credit union, Alaska USA employees in Alaska, Arizona, California, and Washington also volunteered more than 2,980 hours supporting organizations they are passionate about.

As financial security is a cornerstone of a strong society, 1,135 school-aged children took part in Alaska USA financial literacy courses, and 1,079 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.


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 74 branches, which includes eight financial centers in four states as well as a 24/7/365 contact center.

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 21 years. In 2019, 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 several separate communities that we serve, including the four largest market areas in Alaska.

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 72nd year of operation will be another year of success in serving members’ financial needs.

We want to thank the membership for their seven-plus 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 2019.

Bobby W. Alexander

Ronald E. Lee

Geri M. Wacker

Kent B. Berthiaume

Richard F. Hawley

Lorran J. Skinner

RaeDene K. Turner

Geoff Lundfelt


1st Vice Chairman

2nd Vice Chairman





President and CEO

Commitment to Members

"Loans are much more than an investment for the credit union, they’re a commitment to a legacy of faith in members going back more than 70 years.”


Wayne Bailey, Executive Vice President and CXO

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.


As more and more members take their financial lives online, the internet and social media have become essential platforms to immerse members in both financial education and the multitude of ways that being part of a credit union benefits them. In 2019, the Alaska USA Learning Center published 29 new articles on a variety of topics raging from small business funding and savings tips, to safeguarding personal information and retirement planning.


Alaska USA’s social media presence has emerged as a vital tool to maintain communication with members. In 2019, saw an 8% increase in website visitors from social media outlets, thanks in large part to campaigns encouraging members to to interact with both the credit union and fellow members by sharing financial wellness tips, and to follow Alaska USA to stay informed about products, services, and events.

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Better than Banking

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

14,025 / 2.11%

Increase oVER prior year-end



$685.59 / 8.96%

Increase in millions over prior year-end




Increase over prior year-end balances




Amount per member

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 2019, Alaska USA employees raised $28,034 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.


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 2019.

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 2019, Alaska USA employees volunteered to coach over 2,215 students through real life scenarios and events to prepare them for the future.


The government shutdown, which was referenced in the 2018 annual report, continued into the first quarter of 2019 and created financial hardship for many members. The credit union responded by offering financial support in the form of loan payment assistance and extensions, waiving or adjusting certain fees, and special signature loans to help affected members through the shutdown.

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, 2019, and that the credit union operates and is managed on a sound basis, in accordance with current federal regulations.

Craig S. Wood

Catherine M. Woods

John K. Hogue

Thomas E. Holder

Sarah M. Warrington






Consolidated Statements
of Financial Condition

December 31, 2019 and 2018
(Dollars in thousands)
2019 2018
Cash and due from financial institutions $ 115,961 $123,691
Interest bearing deposits in other financial institutions 95,709 93,517
Securities purchased under agreement to resell 390,000 395,404
Total cash and cash equivalents 601,670 612,612
Investment securities available for sale 699,441 324,947
Member Loans

Loans to members, net of allowance for loan loss of $46,133

and $48,579 as of December 31, 2019 and 2018

6,454,834 6,195,684
Real estate loans held for sale 150,526 80,179
6,605,360 6,275,863
Deposit in National Credit Union Share Insurance Fund 66,394 62,605
Federal Home Loan Bank stock, at cost 9,180 8,677
Accrued interest receivable 22,350 19,755
Other receivables 8,454 13,747
Premises and equipment, net 186,280 192,292
Assets acquired in liquidation of loans, net 4,609 5,047
Goodwill and intangible assets, net 5,861 6,410
Mortgage servicing rights 46,888 43,977
Net pension asset 61,340 67,552
Other assets 17,862 16,606
Total assets $8,335,689 $7,650,090
Members’ share accounts $7,528,212 $6,957,234
Accrued expenses and accounts payable 135,656 117,143
Total liabilities 7,663,868 7,074,377
Members’ equity
Statutory reserves 42,658 42,658
Undivided earnings 749,149 677,898
Accumulated other comprehensive loss (119,986) (144,843)
Total members’ equity 671,821 575,713
Total liabilities and members’ equity 8,335,689 $7,650,090

Consolidated Statements of Income

Years Ended December 31, 2019 and 2018
(Dollars in thousands)
2019 2018
Interest income
Interest and fees on member loans $278,995 $242,507
Interest on investment securities 12,838 11,343
Other interest income 11,297 9,089
303,130 262,939
Interest expense
Dividends on members’ shares 56,121 38,876
Borrowings 1,710 1,689
57,831 40,565
Net interest income 245,299 222,374
Provision for loan losses 27,284 32,940
Net interest income after provision for loan losses 218,015 189,434
Noninterest income
Interchange fees 47,535 44,534
Other fees and charges 37,483 41,937
Net gain on sale of real estate loans 26,280 22,828
Net gain on sale of investments 4,725  
Other 29,153 29,164
Total noninterest income 145,176 138,463
Noninterest expense
Compensation and benefits 176,273 166,396
Office operations 53,507 27,936
Office occupancy 28,384 22,224
Other 31,033 53,266
Total noninterest expense 289,197 274,822
Net income 73,994 $53,075

2019 Executive Staff

Geoff Lundfelt

President and CEO

Wayne Bailey

Executive Vice President and CXO

Mike Brady

Chief Information Officer

John Cassidy

Chief Financial Officer

Jessica Graham

Chief Risk Officer/General Counsel

Scott Hansen

Chief Lending Officer

Tom Newins

Chief Operations Officer

Rachel Norman

Chief Administration Officer

Steve Larson

Executive Director, Mortgage & Real Estate Lending

Robert McNaughton

Executive Director, Business & Commercial Services

Julia Niziolek

Executive Director, Insurance & Investment Services

Elizabeth Pavlas

Executive Director, Retail Financial Services

Michelle Bradshaw

Senior Vice President, IM Governance

Chris Brown

Senior Vice President, Special Credits

Scott Chertkow

Senior Vice President, IM Applications

Shannon Conley

Senior Vice President, Branch Administration

Dan McCue

Senior Vice President, Corporate Relations

Phenie Miller

Senior Vice President, Member Service Center

Tod Miller

Senior Vice President, Consumer Lending

Maria Quick

Senior Vice President, Accounting and Treasury

Troy Shelden

Senior Vice President, Controller

Brian Spink

Senior Vice President, Internal Audit

Bob Thompson

Senior Vice President, Corporate Properties & Supply

Tim Woolston

Senior Vice President, Marketing

Marci Aguayo

Vice President, Branch Administration, SW Region

Vilma Chavez

Vice President, Commercial Services Administration

John Collins

Vice President, Mortgage Operations

Joe Crosson

Vice President, Direct Consumer Lending

Bryce Deeney

Vice President, Payments

Leisa DeYarmon

Vice President, Special Credits Collections

Holli Frenchik

Vice President, Consumer Loan Administration

Cindy Fry

Vice President, Branch Administration, PNW Region

Jeff Gregg

Vice President, Business and Commercial Lending

Clinton Hess

Vice President, Financial Analysis

Doug Horner

Vice President, IM Operations

Brenda Lind

Vice President, Personnel

Stephanie Maxwell

Vice President, Digital Channels

Julie Moore

Vice President, Mortgage Administration & Compliance

Laura Moore

Vice President, IM Applications

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

Victoria Worley

Vice President, Operations

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