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HONOLULU FEDERAL CREDIT UNION ANNUAL REPORTHOCU P.O. Box 235862 Honolulu, Hawaii 96823 808-777-JOIN (5646) Toll-Free 1-800 -524-2261
2020 will be remembered as one of the greatest life-changing moments in modern history.We imagine that most people were affected by COVID-19—the mask and social distancingmandates, children taking lessons from home, closures of our favorite stores and restaurants,mass unemployment, and, in some cases, the passing of loved ones. Yet we persisted.Like many other companies, the pandemic was thrust upon HOCU with no tried-and-testedprocesses to fall back on. Therefore, management immediately focused on four key areasas our response strategy:1. PRESERVE MEMBER SERVICES. Although we needed to adjust our operations by closingtwo branches and reducing hours, we intended to remain open for our members. Since noone knew what would happen or how long the crisis would last, HOCU needed to be therock that you relied upon.2. PROTECT OUR MEMBERS AND STAFF. We immediately instituted rules that helped protecteveryone from the virus—social distancing in our lobbies, the availability of hand sanitizers,constant cleaning, kupuna hours—and to do our part in preventing the spread.C H R I S TO P H E R J AYMARK MUNEMITSU3. KEEP OUR EMPLOYEES WORKING. Our employees are the foundation of our success,and many of them had to concern themselves with the events in their personal lives that werecausing them stress. Therefore, to continue providing service to our members, we made thedecision to keep everyone working and relieve the additional burden of making ends meet.4. SERVICE TO OTHERS. At the outset of the pandemic many financial institutions began toCHAIRMAN AND PRESIDENTrestrict access to their members only. HOCU, as part of a shared branching network,continued to allow members of other credit unions to use our branches. In addition to beingconvenient for these individuals, we felt that it was important to help small credit unions byserving their members. HOCU was one of five credit unions asked by the City and Countyof Honolulu to participate in its Small Business Relief and Recovery Fund; collectively wedisbursed 170 million in funds to businesses impacted by the pandemic and supported ourlocal economy.This year, HOCU is celebrating our 84th annual meeting, albeit in a virtual format. Regardlessof whether we can meet in person or continue these preventative measures, one thing hasremained constant—our goal to continue to serve you. We’ve evolved to help members navigatethis new normal and continue reaching their financial goals. Mahalo for your membership inHOCU and look forward to our continued partnership.C H R I S T O P H E R JAYMARK MUNEMITSUChairman, Board of DirectorsPresident/CEO
We’ve evolvedto help membersnavigate thisnew normaland continuereaching theirfinancial go als.
TREASURER’SFor the first time in HOCU’s history, totalassets grew to over 300 million. Here aresome of the financial highlights for 2020: Assets increased 33,231,510 or 12.35% Loans decreased 3,782,704 or -2.00% Shares increased 30,960,985 or 13.14% Net income for 2020 was 1,690,349 Net worth to asset ratio 11.26%HOCU remained strong with ourcommitment to our membership andcommunity during 2020. During thepandemic, the credit union implementedsafety protocols to help our employeesand members stay safe. We also waivedcertain fees, modified loans, and deferredpayments to help members with theirfinancial needs. HOCU also help distributegrants under the city’s Small BusinessRecovery and Relief Fund program.Looking ahead at 2021, we are projectingto have another successful year, andcontinue to grow which will enable usto provide new products and services.We would like to thank you for yourcontinued support and really appreciateyour patronage over the years.LY D I A K AU H ASecretary/TreasurerBOARD OF DIRECTORSSUPERVISORY COMMITTEEIn accordance with the requirements ofthe National Credit Union Administration,an audit of Honolulu Federal Credit Union’sfinancial statements for the period endingDecember 2019 was conducted byKobayashi, Kanetoku, Doi, Lum & Yasuda,CPAs, LLC, which rendered a cleanopinion. The audit for the period endingDecember 2020 has begun and copies ofthe audit will be available upon request.A L B E R T PA N GChairman, Supervisory CommitteeChristopher JayCHAIRMANLydia Kauha Sandra Ng Warren NakamuraWyman Au Dudley KuboSUPERVISORY COM MIT TEEAlbert PangCHAIRMANColin ChungAnnie FletcherMarilyn WongSENIOR M ANAGEMENTMark MunemitsuRoss InouyeP R E S I D E N T/C E OSENIOR VICE PRESIDENT
D EC E M B E R 31, 2 019 & 2 02 0Balance SheetFINANCIALA S S E T S (in thousands)20192020LoansAllowance for Loan LossCashBank & S&L InvestmentsOther InvestmentsFixed AssetsAccrued IncomeOther 10302,341TOTAL ASSETSLIABILITY & EQUITYAccounts Payable & LiabilitiesNotes PayableDividends PayableSharesRegular ReservesUndivided EarningsUnrealized Loss in Long Term InvestmentsTOTAL LIABILTY & EQUITYHOCU FINANCIAL R 6,5323,50430,537646269,110302,341Statement of Income and ExpensesI N C O M E (in thousands)20192020-5.48%Interest on LoansIncome from InvestmentsOther L INCOME10,79311,5540.36%2.86%20192020% CHANGEAverage yieldon loans4.56%4.31%Average yieldon investments2.27%Average yield0.35%paid on depositsEXPENSE20192020Salaries & BenefitsOffice Occupancy and OperationsProfessional and OutsideLoan ServicingProvision for Loan LossOther 698TOTAL er Non-Operating Gains and LossesNET INCOME
AND SERVICESMEMBER ACCOUNTSShare Savings AccountsKasasa Saver AccountsClassic Share Draft AccountsKasasa Checking Accounts with RewardsATM CardsVISA Debit Check CardsMoney MarketShare Certificate AccountsSuper Share Certificate AccountsJumbo Share Certificate AccountsIndividual Retirement Accounts (IRAs)Holiday Club AccountsLOANS AND MORTGAGESAuto LoansAuto Green LoansSolar Green LoansPhotovoltaic Green LoansShare Secured LoansSignature (Personal) LoansBill Consolidation LoansVISA Rewards Credit CardsHome Equity Lines of CreditFixed Rate Home Equity LoansFirst Mortgage LoansSecond Mortgage LoansCONVENIENT SERVICESNextGen ATM with Shared BranchingIn-Lobby Teller (ILT) with Shared BranchingMobile Banking24-Hour Online BankingPopmoney Personal Payment ServiceOnline Bill Payment ServiceOnline Check Imaging24-Hour Apply for Loans OnlineCO-OP Shared Branch & ATM NetworkPayroll Deduction & Direct Deposit ServicesVA LU E P RO D U C T S A N D S E RV I C E SFinancial Planning AccidentalDeath & Dismemberment InsuranceDebt ProtectionWire Transfer ServiceAutoSMART Online Auto Buying ResourceGuaranteed Asset Protection (GAP Plus)Mechanical Repair CoverageAmerican Express Travelers ChequesSafe Deposit BoxesNotary Public ServicesMedallion Signature Guarantee ServicesBUSINESS ACCOUNTS& OTHER SERVICESBusiness Share Savings AccountsBusiness Money Market AccountsBusiness Checking AccountsVISA Debit Check CardsMobile BankingAutomated Teller Machines (ATMs)Safe Deposit BoxesNotary Public ServicesSignature Guarantee ServicesWire Transfer ServiceBusiness CertificatesM O ‘I L I ‘I L I B R A N C H2305 South Beretania StreetHonolulu, Hawaii 96826FEDERAL BUILDING BRANCHPrince Kuhio Federal Building300 Ala Moana Blvd., #1-137Honolulu, Hawaii 96850AIRPORT BR ANCHHonolulu Main Post Office3600 Aolele StreetHonolulu, Hawaii 96820TRIPLER BR ANCHTripler Army Medical CenterOceanside, VA HeadquartersE-Wing, Room 1-C100Honolulu, Hawaii 96819E WA B R A N C H91-1717B Fort Weaver RoadEwa Beach, Hawaii 96706
300 Ala Moana Blvd., #1-137 Honolulu, Hawaii 96850 AIRPORT BRANCH Honolulu Main Post Office 3600 Aolele Street Honolulu, Hawaii 96820 TRIPLER BRANCH Tripler Army Medical Center Oceanside, VA Headquarters E-Wing, Room 1-C100 Honolulu, Hawaii 96819 EWA BRANCH 91-1717B Fort Weaver Road Ewa Beach, Hawaii 96706
