2023 ANNUAL REPORT
Read our Annual Report to learn more about the path we took in 2023 and what’s on the Horizon for 2024! The statements, figures and information provided here are current as of January 1, 2024 and reflect the fiscal year of 2023.
Table of Contents
Letter From the CEO
To our valued members:
The past year was quite challenging for the financial industry as a whole. We emerged from the pandemic facing rapid interest rate hikes and the significant impacts of rising inflation. Our thoughts turn to you, our members, affected by these same factors in a myriad of ways. Here at Horizon, we have remained true to our principles of maintaining a strong financial position and utilizing our resources to respond to your evolving needs. Our tagline, “Your Path, Our Purpose,” guides strategies, drives decisions and prioritizes resource investments. When coupled alongside the not-for-profit cooperative model of credit unions, it is evident what sets us apart from so many other financial institutions.
As of year-end 2023, Horizon has grown to over $2 billion in assets and now serves 112,000 members. Capital is in excess of $240M million or a ratio of 11.5% of assets which is significantly higher than regulatory requirements of 7%. In other words, your credit union is well positioned to weather turbulence while continuing to invest in services to meet the changing needs of our membership.
During the past year these investments included branch renovations with added technology and deploying numerous service enhancements to the growing digital channel. The deployment of new business checking and savings accounts augmented our digital offerings in the commercial space. An additional achievement was the creation of a Loan Solutions Center with loan agents dedicated to handling incoming calls and digital applications. These are just a few examples of our continuous focus on improving your experience and adjusting to a rapidly evolving financial environment.
Lastly, I am proud to report the Horizon Credit Union family continues to demonstrate their care and focus for giving back to the communities we serve. Targeting health, hunger and education, Team Horizon achieved an annual record 10,067 volunteer hours of service while partnering with 276 organizations with a similar focus. We also delivered 13,500 hours of financial education, impacting over 5,000 individuals. As you can see, our team has a passion for service!
On behalf of the entire Horizon Credit Union team, including the Board of Directors, Supervisory Committee, and employee group, thank you for the honor of partnering with you on your journey and trusting us with your financial needs.
CEO
Report from the Board of Directors Chair
The past few years rendered unprecedented challenges for financial institutions, including Horizon Credit Union. With the close of 2023, I am once again very proud of the Horizon team. They worked tirelessly to position your credit union in a solid financial position with strong capital to address the new challenges going into 2024. Please read Jeff Adams’s CEO letter for more details.
I believe a driving force behind our success and ability to meet challenges head on is our culture. It is intentional as demonstrated by the team attitude and collaboration we possess among our CEO, management, employees, vendors, Board of Directors and Supervisory Committee. Many of our dedicated employees and volunteers have 10, 20, 30 plus years of service with Horizon. As always, our commitment is to provide you, our members, with the most positive experience possible each and every time.
Another commitment we share is giving back to the communities where we serve. In 2023 our employees and volunteers achieved a new record providing over 10,000 volunteer hours to 276 organizations and charities. There’s a saying that giving fills the soul of the giver. This is evident by the endless smiles I see on our volunteers’ faces.
In conclusion, I want to express my sincere appreciation to our Board of Directors and Supervisory Committee whose goal is to keep Horizon strong and serve our membership to the best of our abilities. Being an election year in 2024, the challenges will be many, but I assure you I have the utmost confidence in our team.
Chair
Board of Directors
Steve Sharon ………………………………………………………………… Chair
Mike Butler …………………………………………………….. 1st Vice Chair
Mark Lodine ………………………………………………….. 2nd Vice Chair
Pat Fitzgerald ……………………………………… Secretary/Treasurer
Darin Burrell ……………………………………………………………… Director
Pat Marler ………………………………………………………………… Director
Tom Diluzio ………………………………………………………………. Director
Bernie Korth …………………………………………….. Director Emeritus
Renn Salo ………………………………………………. Associate Director
Jim Jopson ……………………………………………. Associate Director
Board of Directors
Steve Sharon ………………………………………….. Chair
Mike Butler ………………………………… 1st Vice Chair
Mark Lodine ………………………………. 2nd Vice Chair
Pat Fitzgerald …………………….. Secretary/Treasurer
Darin Burrell ………………………………………. Director
Pat Marler …………………………………………. Director
Tom Diluzio ……………………………………….. Director
Bernie Korth ………………………….. Director Emeritus
Renn Salo ……………………………. Associate Director
Jim Jopson ………………………….. Associate Director
Board of Directors
Steve Sharon
Chair
Mike Butler
1st Vice Chair
Mark Lodine
2nd Vice Chair
Pat Fitzgerald
Secretary/Treasurer
Darin Burrell
Director
Pat Marler
Director
Tom Diluzio
Director
Bernie Korth
Director Emeritus
Renn Salo
Associate Director
Jim Jopson
Associate Director
Report from the Supervisory Committee Chair
The Supervisory Committee is a volunteer committee responsible for reviewing the financial operations of the credit union in accordance with the regulatory procedures established by the Washington Department of Financial Institutions (DFI), the National Credit Union Administration (NCUA) and the credit union’s policies to safeguard members’ assets and assure you are provided the quality service you deserve.
The Supervisory Committee includes the following volunteers: Chair Bob Lochmiller and committee members Gail Gudgel, Brian Eldred, and Kathleen Cooper. Vanessa Gartz, CIA, Director of Internal Audit, manages the internal audit department and reports independently to this committee.
Our annual financial statement audit was conducted by the certified public accounting firm Hauser Jones & Sas. The annual audit covers a review of internal controls, audit evidence and financial accounting support. Audited financial statements were issued and a report submitted to the Supervisory Committee.
This year’s report concluded that for the period ending December 31, 2023, the financial position, operations, cash flows and subsequent financial statements are in all material respects presented fairly in conformity with GAAP. Throughout the year our Internal Audit Department performs audit procedures on selected areas of the credit union. Our regulators, the DFI and the NCUA, also perform annual safety and soundness examinations. The Supervisory Committee reviews all audits and examinations conducted throughout the year to make sure the Board of Directors and management respond to recommendations made.
The Supervisory Committee is committed to ensuring the line of communication remains open to our member-owners, so you continue to receive the highest quality service. If any member has any concerns or issues, a letter should be sent to the following address: Horizon Credit Union Supervisory Committee, P.O. Box 6, Spokane Valley, WA 99037-9901. The Supervisory Committee will review your correspondence and respond.
Chair
Supervisory Committee
Bob Lochmiller ………………………………………………………. Chair
Gail Gudgel ………………………………………………………… Member
Brian Eldred ……………………………………………………….. Member
Kathleen Cooper ……………………………………………….. Member
Supervisory Committee
Bob Lochmiller ……………………………………… Chair
Gail Gudgel ………………………………………. Member
Brian Eldred ……………………………………… Member
Kathleen Cooper ……………………………….. Member
Supervisory Committee
Bob Lochmiller
Chair
Gail Gudgel
Member
Brian Eldred
Member
Kathleen Cooper
Member
HZCU GO-GIVERS
We supported 255 organizations
Need a helping hand? How about 908 of them!
400+ employees volunteered for GGG
That’s 1,600 hours for Go Give Grow day!
We hosted 13,500
hours of financial education
5,400 individuals were helped!
HZCU EMPLOYEES DONATED
FOR COMMUNITY SPIRIT DAYS!
Together with corporate matching, $22,841 was given directly to 36 members experiencing extreme hardship.
2023 Income Statement
(In thousands of dollars)
| INCOME | 2023 | 2022 |
|---|---|---|
| Loan Interest Income | 82,470 | 65,973 |
| Investment Interest Income | 13,417 | 4,147 |
| Other Income | 14,225 | 13,241 |
| Total Operating Income | 110,112 | 83,361 |
| EXPENSE | 2023 | 2022 |
|---|---|---|
| Operating Expenses | 69,156 | 61,292 |
| Interest on Borrowed Funds | 154 | 1,198 |
| Provision for Loan Loss Expense | 5,278 | 1,954 |
| Total Operating Expense | 74,588 | 64,444 |
| Income from Operations | 35,524 | 18,917 |
| Non-Operating Gain (Loss) | (1,105) | (1,331) |
| Dividend Expense | 28,775 | 5,517 |
| Net Income | 5,644 | 12,069 |
2023 Balance Sheet
(In thousands of dollars)
| Balance Sheet | 2023 | 2022 |
|---|---|---|
| Loans to Members | 1,708,926 | 1,648,401 |
| Allowance for Loan Loss | (9,300) | (5,044) |
| Net Loans to Members | 1,699,626 | 1,643,357 |
| Cash & Receivables | 42,634 | 59,380 |
| Investments | 199,163 | 265,014 |
| Other Assets | 113,854 | 109,230 |
| Total Assets | 2,055,277 | 2,076,981 |
| Other Liabilities | 25,884 | 41,696 |
| Deposits | 1,788,938 | 1,797,532 |
| Total Capital | 240,455 | 237,753 |
| Total Liabilities & Capital | 2,055,277 | 2,076,981 |
About Horizon
Our journey began as a partnership of metal workers at Kaiser Aluminum in Spokane, Washington in 1947. As we moved forward on our path and our members grew and gained financial security, people saw the benefit of coming together.
From highway workers to educators to health care professionals and forestry workers we’ve come together as Horizon Credit Union. We’re here to provide you with the expanded access and services of a regional credit union and friendly, authentic advice tailored to you – by people like you – no matter which part of the northwest you call home.
