People
Helping People
Successfully Navigating a Challenging Year
2020 Annual Report
Serving our members well is SLFCU’s highest priority,
whether they have chosen us for their personal financial
needs or to help them run and grow their business. This
focus became more important than ever in 2020, as
many SLFCU members faced new challenges due to the
COVID-19 pandemic.
Your credit union was prepared to help members during
this uncertain time by offering temporary relief of loan
payments, waiving penalties for early term certificate
withdrawals, and increasing credit limits. We are proud
to have processed more than $14 million in Payroll
Protection Program (PPP) loans for business members.
And while we’ve always given back to our communities
through fundraisers and donations, those efforts took on
a special urgency in 2020.
SLFCU’s organizational values are a guiding light in our
interactions with our members. In a difficult year, we
have persevered, adapted, and continued to serve, all the
while armed with good humor, masks, and an ocean of
hand sanitizer.
Brighter days are ahead. SLFCU has looked out for our
members’ financial well-being for 72 years now, and
will continue to do so. We are spending prudently and
making smart investments, and our balance sheet is very
strong. We are excited to expand our offerings in 2021.
We are humbled that Forbes recognized us as New
Mexico’s #1 Credit Union again in 2020, and that
Albuquerque Business First judged us as a Best Place to
Work. These awards reflect positively on the quality of
our institution for our members, and on the efforts of
our high-performing employees.
A joint message from Robert and Chuck
Robert Chavez,
President and ceo
Chuck Maheras,
Board Chairperson
Brighter days are
ahead. SLFCU has
looked out for our
members’ financial
well-being for
72 years now, and
will continue
to do so."
People helping people
"
1
In a challenging year, business members turned to us for
new loans and loan payment deferrals. Although SLFCU
processed 482 commercial loans valued at $121 million,
including many construction loans, the most gratifying
way we helped our members was through the Paycheck
Protection Program (PPP) – a loan program created by
the U.S. Congress to help businesses bridge financial gaps
caused by COVID-19 restrictions.
Andrew Jaynes, SLFCU’s Senior VP and Chief Credit Officer,
notes that in 2020, SLFCU processed 312 PPP loans at a
value of almost $15 million, and helped members navigate
loan forgiveness applications. “Each PPP loan represents
a unique business owner story,” says Andrew. “They’re
wrestling with questions like, ‘How do I stay in business
when I have no customers? Which of my long-time
employees do I lay off to conserve cash? What bills can I pay
with my dwindling funds?’. We responded quickly to help
ease their burdens and continued a close and caring touch
throughout the process.”
Brad Jones, CEO of Corinthian Real Estate, Inc. in Houston,
Texas, used his deferred SLFCU loan payments to ease
the burdens for most of his 25 small business tenants in
Albuquerque. When SLFCU granted pandemic-related
payment deferrals on those properties, Brad, in turn, offered
his tenants 100% of the deferred funds as rent abatements.
“I asked them, ‘Where are you with your finances, and what
can we do together?’” says Brad. “I also told these struggling
entrepreneurs all deferred rent would be forgiven, as a way
to help preserve their businesses.”
Brad adds, “The accommodation and teamwork of SLFCU’s
Dan Cover and Casey Bresnahan helped keep our tenants’
businesses alive during this challenging time. I have other
lenders for multiple properties, but no other financer was as
understanding, cooperative, and supportive as SLFCU!”
Supporting Businesses
During the Pandemic
I have other
lenders for multiple
properties, but no
other financer was
as understanding,
cooperative, and
supportive as SLFCU!"
– Brad Jones, CEO of
Corinthian Real Estate, Inc.
BUSINESS LOANS by
the numbers:
"
Andrew Jaynes, Senior VP and Chief Credit Officer
It was very frightening
to fill in all the PPP
paperwork. If you want to
feel part of a team and have
someone backing you up as a
business owner, then SLFCU
is a great place to be.”
– Anja Bladergroen,
co-owner of Blades’ Bistro
Anja and Kevin Bladergroen, owners of Blades’ Bistro in Placitas, NM
"
Total dollar amount of business loans
originated in 2020
$20,543,633
commercial
loans opened
in 2020
482
ppp loans
processed
in 2020
32
SLFCU by the numbers:
total NUMBER OF
Members
5,70
Membership
growth in 2020
5.85%
total dollar amount in assets
$3,09,27,000
32
In 2020, SLFCU continued with our commitment to raise
$200,000 over the next few years on behalf of the New
Mexico Credit Unions Connected Academy (NMCUCA) to
endow a fund to provide a long-term teaching position at
UNM Children’s Hospital through the Mimbres School.
Together, SLFCU employees, members, and community
partners raised $121,418 between July 1, 2019 and
December 31, 2020.
Monica Garcia-Roach, Lead Special Educator at UNM
Mimbres School, says, “We have 19 students enrolled
from K-12th grade, but that’s not all! In our first year,
we helped more than 80 patients and their siblings
complete 3,000 classwork assignments and activities.
Our students gain socialization skills, help each other
with homework, and form friendships that transcend
long absences.”
“The devotion of the UNMCH students to academics
is amazing!” says Jeremy P. Abshire, Superintendent
and Principal at UNM Mimbres School. “I’ve been an
educator for more than 20 years, but I’ve never seen
students like these. They know how learning can be a
distraction from the discomfort, enable pathways to true
friendship, and provide hope for a beer future.”
Monica adds, “I’m fortunate to be their teacher. They’ve
taught me about the value of life and how important
effective communication skills are in a virtual world.
This is not just a school, and the students are not just
classmates – we are family. I’m so grateful to SLFCU and
the other credit unions who fund the NMCUCA program
and make all of this possible.”
Visit slfcu.org/NMCUCA to learn more about this cause.
Education Provides Hope
for Sick Children
The students are
not just classmates – we
are family. I’m so grateful
to SLFCU and the other
credit unions who fund
the NMCUCA program and
make all of this possible."
– Monica Garcia-Roach,
Lead Special Educator
"
Monica Garcia-Roach, Lead Special Educator at UNM Mimbres School AND
Jeremy P. Abshire, Superintendent and Principal
SCHOLARSHIPs by the numbers:
awarded to SLFCU student
members through OUR
scholarships since 1994
$58,700
Winning this
scholarship
helped me pay
for the nursing
textbooks I
needed not only
to graduate, but
to also have as
references during
my career as a
nurse. My goal is
not just to receive
a degree, but to
learn how to be a
good nurse."
– Abigail Kalinowski,
2020 scholarship winner
"
scholarship
recipients
since 1994
232
Early in 2020, SLFCU identified several non-profit
organizations in our New Mexico and California
communities to receive grants and donations. Lile did
we know the difference these decisions would make as
the year progressed. “While SLFCU has always donated
to worthy organizations, philanthropy remained in
the front of our thoughts and actions as the pandemic
progressed,” says Melissa Stock, VP of Marketing. “We
strove to thoughtfully choose organizations that we
viewed as doing the most good within their communities
and those who perhaps were being underappreciated,”
she adds.
Including Meals on Wheels, the Native American Relief
Fund, Habitat for Humanity, Toys for Tots, the Boys and
Girls Ranch, the California Fire Foundation, and the
Tri-Valley Food Pantry, by the end of the year SLFCU had
given nearly $100,000 to over 31 organizations – more
than it has ever given in a single year. “And don’t forget
the 250 Thanksgiving turkeys we collected for local
food banks through employee and member donations
in partnership with Sandia National Laboratories, too!”
emphasizes Melissa. “All of this giving was made possible
by our amazingly generous members and employees. We
will be forever grateful.”
SLFCU Responds With
Record Year of Giving Back
54
In 2020, people began to see their home as more than
just a place to live – it became their office, schoolroom,
entertainment venue, and shelter during a national
health crisis. Fueled by incredible interest rates, home
sales spiked across the U.S. as families realized they
needed more space.
Following these national trends, SLFCU members
financed new homes with us or refinanced their current
loans in record numbers. We recorded more than $222.45
million in new home loan originations in 2020.
Our Mortgage team worked tirelessly to assist members
in their pursuit of the American dream, helping many
renters to open the door to home ownership. First-time
buyers took advantage of SLFCU’s great rates and program
for first-timers that offers a low 3% down payment with
no private mortgage insurance requirement.
To make their homes more enjoyable and functional
(maybe to get that home office or gym into shape), many
members also did a cash-out loan refinance to get ready
cash for remodeling, repairs, and other improvements.
“Although 2020 was a year of change and challenges for
many, our members know that one thing will always be
true: SLFCU is there for them,” says Diane Kapuranis,
Vice President of Lending. “Members can count on us for
unsurpassed service, value, and convenience for all of
their financial needs.”
Home Loans: Record Growth
SLFCU has been a reliable
financial institution for me
and my family since 1980.
They've provided mortgages,
construction loans, business
accounts, and personal
accounts flawlessly over the
years and the service has
remained top notch."
– SLFCU Member
As the global pandemic unfolded, 2020 posed many new
challenges to healthcare and business communities.
Healthcare workers fought COVID-19 on the front lines
while small businesses struggled to navigate closures and
limitations on how they conducted their business. SLFCU
quickly recognized the difficulties both communities
were experiencing. To show our support, SLFCU
commissioned food deliveries from some of our partner
companies in the restaurant industry.
Warm breakfast burritos and nutritious sandwiches were
delivered to local emergency rooms, testing facilities, and
community clinics throughout the Albuquerque, NM and
Livermore, CA areas.
Our deliveries to Presbyterian Healthcare Services,
Lovelace Hospitals, First Choice Healthcare clinics,
TriCore Reference Laboratories, and Albuquerque
Ambulance first responders allowed SLFCU to show
our immense gratitude to healthcare heroes while also
supporting several of our business members. More than
that, it allowed us to put into action our value of people
helping people.
“SLFCU’s order literally saved my month,” says Mark
Roerick, owner of The Yeller Sub. “They came to the
rescue when they asked us to make lunches for all of the
First Choice Healthcare clinics and offices.”
And for Jimmy Daskalos, owner of El Patron Restaurant,
the support meant more than just help for his business.
“It means so much to see SLFCU giving back in such a
personal way,” he says. “As a member, it feels great to be a
part of it.”
GRATITUDE DELIVERED
Diane Kapuranis, Vice President of lending
SLFCU’s order literally
saved my month. They
came to the rescue when
they asked us to make
lunches for all of the
First Choice Healthcare
clinics and offices."
– Mark Roerick,
owner of The Yeller Sub
"
Mark and rosie roerick, owners of the yeller sub in albuquerque, nm
"
HOME loans by the numbers:
Total dollar amount of home loans
originated in 2020
$222,453,957
76
This year has presented unique operational opportunities,
as well as a chance to expand SLFCU’s physical and
philanthropic footprint.
In early 2020, many members and employees began
working from home. Although SLFCU closed its branch
lobbies from March through May, we continued to offer
every product and service through online and mobile
banking, branch drive-ups, and back office business
units. Our Contact Center really answered the call this
year, interacting with 30 percent more members while
reducing wait times to less than two minutes on average.
In addition to the pending merger with Animas Credit
Union in the Farmington, New Mexico area, we also began
the planning and construction of new branch locations.
Our Jefferson branch will move across the street to a
much larger location, which will also be a hub of our
business lending team and many other services. I am also
happy to share we are acquiring a North Valley branch
in Albuquerque at 1100 Rio Grande Blvd. NW, very near
Interstate 40. We estimate it will be open for service in
late 2021.
We helped many of our most vulnerable neighbors
this past year through donations to organizations such
as Meals on Wheels, the Barre Foundation, the Rio
Grande Food Project, and many more. Overall, SLFCU
made $100,000 in grants to New Mexico and California
organizations, in addition to $50,000 pledged by our
employees to the United Way. I thank every member and
employee for their generosity as we exemplify “people
helping people.”
operations: meeting our
members’ needs
SLFCU’s generous grant
gave us the necessary funds
to provide meals to clients
who were on our waiting list.
Thank you for helping us
provide food and friendship
to those that need it most.”
– Shauna Frost,
Executive Director of Meals on
Wheels of Albuquerque
Rick Anderson, Executive vice president and coo
The banking experience
was excellent. The tellers
were personable and friendly
and their focus on customer
safety during this pandemic
was A+. They made sure I
was taken care of from the
moment I walked in the
door. Excellent job!"
– SLFCU Member
Caleb Funchess, Financial services officer, and Monique Chino, teller
lead, pose next to A sign outlining new branch procedures
SLFCU WAS
NAMED BY
FORBES AS
THE # CREDIT
UNION IN NEW
MEXICO IN 2020.
SLFCU WAS
SELECTED AS A
BEST PLACE TO
WORK in 2020 BY
ALBUQUERQUE
BUSINESS FIRST.
Did you know that as a member, your immediate family
and those living in your household are eligible to apply
to join Sandia Laboratory Federal Credit Union? Joining
SLFCU is one of the smartest ways you can share the
benefits of financial health with the people you love.
Our low interest rates, no or low fees, opportunities for
financial education through webinars and seminars, and
a truly member-focused business model are just a few
reasons to share being an SLFCU member. Best yet, if you
retired from an SLFCU partner organization, you can still
pass along the benefits of membership.
We’d be honored to be a part of your family’s legacy.
To learn more, visit slfcu.org/WhoCanJoin.
Share the Legacy of SLFCU
Membership
"
"
98
A message from Rick
Assets
in millions of dollars
Loans
in millions of dollars
Shares
in millions of dollars
Reserve Ratio
percent of assets
2020 Finances
2020 2019
Total Assets $3,109,127,000 $2,634,465,000
Loans 1,450,040,000 1,436,277,000
Investments 1,463,465,000 1,018,050,000
Members' Share Accounts 2,754,014,000 2,324,915,000
Reserves and Undivided Earnings 327,036,000 303,751,000
Gross Income 93,735,000 92,945,000
Dividends Earned by Members Including Special Dividends 18,432,000 37,182,000
Dividends Earned by Members Excluding Special Dividends 18,432,000 17,182,000
Net Income Including Special Dividends 23,285,000 5,094,000
Net Income Excluding Special Dividends 23,285,000 25,094,000
Total Reserves to Assets 10.5% 11.5%
2020 Financial Highlights
Sandia Laboratory Federal Credit Union exists to provide a
tailored array of convenient services to satisfy the financial
needs of our members and to provide these services with
the highest possible level of technical and operational
efficiency while keeping a close and caring touch with our
members and employees.
More than 1,000 companies in the Albuquerque area and
the Bay Area of California make Sandia Laboratory Federal
Credit Union a valuable part of their employee benefits
package. And that value comes at no cost to employer
or employee. Chartered in 1948, SLFCU is a full-service,
government-insured, member-owned financial institution
dedicated to the financial success of our members.
Employees of our partner companies regard their eligibility
to join and use SLFCU services as a special benefit provided
by their company.
For more information about company eligibility, please call
505.293.0500 or 800.947.5328, or visit slfcu.org/WhoCanJoin.
Mission
Statement
A Valued Partner
For Employers
1110
Balance Sheet
Year Ended
December 31, 2020
(unaudited)
Year Ended
December 31, 2019
(audited)
ASSETS
Loans to Members $1,450,040,000 $1,436,277,000
Less: Allowance for Loan Losses (7,300,000) (5,583,000)
Cash and Cash Equivalents 94,027,000 94,701,000
Investments, Net of Mark to Market Adjustments 1,463,465,000 1,018,050,000
Accrued Interest Receivable 7,626,000 7,012,000
Building, Land and Equipment, Net 40,504,000 35,435,000
Deposit with NCUSIF 22,717,000 20,691,000
Other Assets 38,048,000 27,882,000
Total Assets $3,109,127,000 2,634,465,000
LIABILITIES AND MEMBERS' EQUITY
Accounts Payable and Other Liabilities 25,643,000 25,171,000
Total Liabilities 25,643,000 25,171,000
Members' Share Accounts 2,754,014,000 2,324,915,000
Reserves and Undivided Earnings
Regular Reserves 20,396,000 20,396,000
Undivided Earnings 306,640,000 283,355,000
Accumulated Other Comprehensive Income (Loss) 2,434,000 (19,372,000)
Total Liabilities and Members' Equity $3,109,127,000 2,634,465,000
Net Income
in millions of dollars
Sources
of Income
in millions of dollars
Distribution
of Income
in millions of dollars
Interest on Loans
Interest on Investments
Other Income
64.4%
20.5%
15.0%
Personnel
Undivided Earnings/Reserves Including Special Dividends
Operating/Non-operating Expense
Dividends to Members Including Special Dividends
31.5%
24.8%
20.3%
19.7%
* $10 Million Special Dividend Issued
** $20 Million Special Dividend Issued
2020 Finances
* **
Loan Loss Provision
3.8%
1312
Year Ended
December 31, 2020
(unaudited)
Year Ended
December 31, 2019
(audited)
OPERATING EXPENSES
Compensation and Employee Benefits 29,418,000 27,640,000
Office Occupancy 2,456,000 2,283,000
Office Operations 7,770,000 7,221,000
Professional and Outside Services 7,045,000 7,137,000
Educational and Promotional 581,000 566,000
Credit Card Rebates 962,000 1,025,000
Other 2,878,000 2,403,000
Total Operating Expenses 51,110,000 48,275,000
Operating Income 20,633,000 4,934,000
Non-operating Income (Expenses) 2,652,000 160,000
Net Income Including Special Dividends $23,285,000 5,094,000
Net Income Excluding Special Dividends $23,285,000 25,094,000
Income Statement
continued from page 14
Income Statement
Year Ended
December 31, 2020
(unaudited)
Year Ended
December 31, 2019
(audited)
INTEREST INCOME
Interest on Loans $60,414,000 $57,070,000
Interest on Investments 19,247,000 21,430,000
Total Interest Income 79,661,000 78,500,000
INTEREST EXPENSE
Members' Shares 18,432,000 37,182,000
Net Interest Income 61,229,000 41,318,000
Provision for Loan Losses 3,560,000 2,553,800
Net Interest Income After Provision for Loan Losses 57,669,000 38,764,200
NON
-
INTEREST INCOME
Interchange Income 7,488,000 7,678,000
Negative Balance Fees 2,231,000 3,302,000
Other Non-interest Income 4,355,000 3,465,000
Total Non-interest Income 14,074,000 14,445,000
Income Before Operating Expenses 71,743,000 53,209,200
continued on page 15
1514
Statistical and Comparative DataChanges in Financial Position
Year Ended
December 31, 2020
(unaudited)
Year Ended
December 31, 2019
(audited)
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income $23,285,000 5,094,000
Adjustments to Reconcile Net Earnings to Cash Flows from
Operating Activities:
Decrease (Increase) in Accrued Dividends Payable - -
Depreciation and Amortization 3,666,000 3,577,000
Provision for Loan Losses and Unfunded Loan Commitments 3,544,000 2,542,000
(Gain) Loss on the Sale of Investments/Fixed Assets/
Unrealized (Gains) Losses
(2,652,000) (159,000)
(Increase) Decrease in Accrued Interest Receivable (615,000) (182,000)
(Increase) Decrease in Prepaid Expenses and Other Assets (7,513,000) (2,484,000)
Increase (Decrease) in Accrued Expenses and Other Liabilities 22,278,000 20,871,000
Cash Flows from Operating Activities 41,993,000 29,259,000
CASH FLOWS FROM INVESTING/FINANCING ACTIVITIES
Decrease (Increase) in Loans to Members (15,590,000) (76,440,000)
Net Increase (Decrease) in Member Deposits 429,099,000 60,749,000
Net (Increase) Decrease in Investments (445,415,000) (32,489,000)
Increase in NCUSIF Deposit (2,026,000) (4,000)
Purchases of Premises and Equipment (8,736,000) (3,995,000)
Cash Flows from Investing/Financing Activities (42,668,000) (52,179,000)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
(675,000) (22,920,000)
Cash and Cash Equivalents, Beginning of Year 94,702,000 117,622,000
Cash and Cash Equivalents, End of Year $94,027,000 94,702,000
2020
SLFCU
2019
SLFCU
Average CU
With Assets of
$1 Billion or More
(September
2020)
Members 115,701 109,309 219,961
Assets $3,109,127,000 $2,634,465,000 3,456,467,000
Assets Per Member 26,872 24,101 15,714
Total Savings Per Member 23,803 21,269 13,348
Dollars Loaned Per Member 12,533 13,140 10,549
Operating Expenses (Less Provision
for Loan Losses) to Average Assets
1.8% 1.9% 2.88%
Employees Per Million Dollars of Assets 0.11 0.13 0.15
Total Reserves to Assets 10.5% 11.5% 10.4%
Loans Outstanding to Shares 52.7% 61.8% 79.0%
Loans Outstanding to Assets 46.6% 54.5% 67.1%
Delinquent Loans to Outstanding Loans 0.22% 0.25% 0.52%
Dividends to Gross Income Including Special Dividends 19.7% 40.0% 14.5%
Dividends to Gross Income Excluding Special Dividends 19.7% 18.5% 14.5%
*
*Data from the Credit Union National Association's September 30, 2020 Report
Chairperson: Aaron Lobato
Committee Members: Lesley Caldwell, Duff Lill, Angela Murdock, and Jenni Pandazis
The Supervisory Committee has retained the certified public accounting firm of Moss Adams LLP to conduct an independent
audit of SLFCU’s financial statements. At the completion of the audit, the full report will be available at the Credit Union’s
administrative office for review by the membership.
In addition, at the direction of the Supervisory Committee, both internal audit staff and independent audit firms are utilized to
evaluate and improve the effectiveness of the Credit Union’s risk management, internal control, and governance processes.
Supervisory Committee
1716
Federally Insured by NCUA
EQUAL HOUSING
LENDER
slfcu.org | 505.293.0500 | 800.947.5328 | P.O. Box 23040, Albuquerque, NM 87192
Juan Tabo
3707 Juan Tabo Boulevard NE
Albuquerque, NM 87111
Cottonwood
3740 Ellison Road NW
Albuquerque, NM 87114
Edgewood
1 Liberty Square Circle
Edgewood, NM 87015
Jefferson
7500 Jefferson Street NE, Suite 100
Albuquerque, NM 87109
Kirtland
Wyoming and I Street, KAFB
Albuquerque, NM 87117
Livermore Downtown
39 South Livermore Avenue, Suite 101
Livermore, CA 94550
Livermore East
7011 East Avenue
Livermore, CA 94550
Los Lunas
2700 Palmilla Road NW
Los Lunas, NM 87031
Paseo del Norte
8920 Holly Avenue NE
Albuquerque, NM 87122
Rio Rancho
1900 Wellspring Avenue SE
Rio Rancho, NM 87124
Tech Park
1301 Britt Street SE
Albuquerque, NM 87123
