Annual Report 2011
Federally insured by NCUA.
Table Of Contents
Board Of Directors 3
Chair’s Report 4
President’s Report 5
Treasurer’s Report 6
Supervisory Committee’s Report 7
Year In Review 10
Coming In 2012 14
In The Community 16
Member Services 18
Branch Locations 21
Anywhere access with sdccu.com,
SDCCU mobile deposit and mobile banking.
2011 Board Of Directors
President & CEO
an Diego County Credit Union is proud to offer Southern Californians a better banking option. When we
Rod Calvao Steven C. Reuel
say that SDCCU® is better banking you can trust, we mean it. SDCCU is committed to offering the best Chair Vice Chair
in financial products from our FREE checking with eStatements to our state-of-the-art sdccu.com and
mobile banking services. We strive to help our members better understand and manage their finances through
free financial education seminars hosted by local financial expert George Chamberlin and online videos that
include tips on saving money, buying your first home and more.
Better banking means more than better rates and lower fees for our members; it also means giving back to Allan Shaw Ilan Awerbuch
the communities we serve. SDCCU is proud to support over 75 charitable organizations throughout Southern Treasurer
California, including the Make-A-Wish Foundation® of San Diego, the Multiple Sclerosis Society, Rady Children’s
Hospital and the San Diego Blood Bank.
Richard Collins Shirley Jackson
sdccu.comOur Mission Statement Provide sound financial Peggyanne Chuck White
services to our members any G. Smith
where, any way, any time.
2 sdccu.com Annual Report 2011 3
etter banking you can trust is a way of life at his year was an outstanding year for San Diego County
San Diego County Credit Union. From exceptional Credit Union and its members. While the big banks
service provided by our front-end staff to exciting were adding new fees and getting negative publicity
new eServices to ensuring our rates and fees are low and in the media, SDCCU delivered on our mission of providing
competitive, all of the employees at SDCCU know that their sound financial services to our members, any where, any way,
goal is to provide better banking for our members. These any time. We achieved this by providing low or no fees on our
practices have allowed SDCCU’s member base to grow over 6 products and ensuring that members have more convenient
percent in 2011 to 225,362 members and to reach over $5.45 access to their money than any major bank! Additionally,
billion in assets. San Diego County Credit Union remains the SDCCU continued to offer free BALANCE SM financial counseling
largest locally-owned financial institution in San Diego and is and member education seminars with acclaimed speakers, like
now the 11th largest credit union in the country. San Diego area financial expert George Chamberlin, to ensure
that our members have the resources they need to make wise
This year, SDCCU was not only voted BEST Credit Union for the financial decisions.
12th year straight, we were also voted BEST Financial Planner,
BEST Home Loan Provider and BEST Place To Work. Thank you SDCCU renamed our ‘myChecking account’ to ‘FREE checking
to all of our members and community members that have with eStatements’ to more appropriately highlight that
recognized the contributions SDCCU is making in daily SDCCU has a free checking product that is truly free! The FREE
lives and who voted for us in the San Diego Union-Tribune checking with eStatements account is free of monthly service
Readers Poll. SDCCU was also honored with our second Better charges, free of monthly debit card fees and offers free access
Business Bureau® (BBB®) of San Diego Torch Award for to online bill pay plus the 28,000 ATMs in the CO-OP Network.
Marketplace Ethics. This convenience is coupled with our newest addition to
mobile banking—SDCCU Mobile Deposit. SDCCU Mobile
In line with our mission statement, SDCCU expanded our Deposit gives members the ability to deposit a check from
mobile banking offerings to allow more users convenient their smartphone. By highlighting our convenient access and
Chair’s Report account access. Mobile banking is now offered as a web-based free services in the market, SDCCU continues to be top-of-
solution, through SMS texting and as an app for iPhone®, mind for those looking for an alternative to their big bank.
Rod Calvao Teresa Halleck
Android ™ and BlackBerry® phones. Our brand new SDCCU
Mobile Deposit app allows users to skip a trip to the branch or Additionally, many of our ATMs have been upgraded to
ATM by depositing a check right from their smartphone. That accept deposits without envelopes and to return an image of Directors and employees of SDCCU will continue to
225,362 really is any where, any time access. of the deposited item conveniently on the receipt. The new work diligently and make prudent decisions so we can
machines also dispense $1, $5 and $20 bills. New consumer continue to provide you with better banking you can
178,776 Seeing the achievements SDCCU has realized this year adds to loan products including a 5/5 ARM home loan and low-rate trust. I’m very optimistic about 2012 and I look forward
the anticipation for what will come in 2012. I look forward to SDCCU Cash Rewards Visa® with no cash back limits, were also to another year of positive growth and success at San
additional product releases, enhanced services and helping launched in 2011 to provide additional benefits and rewards Diego County Credit Union.
new and existing members manage their financial lives. to our members.
The growth that SDCCU realized during 2011 is beneficial to
our members and the overall organization, and preserved our
spot as San Diego’s largest locally-owned financial institution.
Chair Thank you for the trust that you put in us every day. The Board President & CEO
Number of Primary Members
4 sdccu.com Annual Report 2011 5
an Diego County Credit Union has closed the books on he Supervisory Committee at San Diego County
another outstanding year. SDCCU remained financially Credit Union ensures that an independent audit is
sound through the economic challenges in recent performed annually and the account balances of the
years and 2011 has really shown our success. We have seen membership are verified. The Committee is also responsible for
tremendous member growth, a decrease in loan losses and ensuring policies and procedures exist to adequately protect
positive operating results. credit union resources, for providing reasonable assurance
that governing regulations and policies and procedures are
Better banking you can trust means making prudent loan properly followed, and ensuring that the financial statements
decisions that are in the best interest of the credit union’s reflect the credit union’s results of operation. To carry out
member base. SDCCU continued to offer our members these responsibilities, the Committee is made up of three
historically low home loan rates and very competitive auto volunteer members who independently evaluate the strength
loan rates. Our discerning lending practices and low loan rates and soundness of SDCCU’s operations and activities.
brought in over $1.3 billion in new loans. A 6 percent increase
in members to over 225,000 and the fact that members are The Committee works with internal auditors, the Board of
saving more money boosted total assets to over $5.45 billion. Directors, the President & CEO and employees of SDCCU
to ensure that the assets are safeguarded by upholding
As always, the SDCCU Board of Directors and senior applicable regulatory policies and procedures. The Supervisory
management team maintained prudent practices to ensure Committee retained the services of McGladrey & Pullen, LLP,
that SDCCU remains well-capitalized. SDCCU ended 2011 a national CPA firm, to perform an audit of the credit union’s
with a net worth to total assets ratio of 11.94 percent. This financial statements. The accounting firm of McGladrey &
ratio, established by the National Credit Union Administration Pullen, LLP, performs an annual audit of the credit union’s
(NCUA), sets the regulatory standard for the minimum financial statements to ensure they represent fairly, in
allowable capital level for “well-capitalized credit unions” at all material respects, the financial position and results of
7 percent. SDCCU continued to exceed the NCUA’s minimum operations of San Diego County Credit Union in conformity
Treasurer’s Report level, proving we truly do provide better banking you can trust. with U.S. Generally Accepted Accounting Principles.
Our commitment to better banking means that the Board of We wish to express our appreciation to the Board of Directors,
Directors will continue to ensure that SDCCU is making smart management and staff for their continued cooperation. Patricia Honeycutt
financial decisions that will maintain our position as San Diego’s
BEST Credit Union. Thank you for the trust you place in SDCCU 49,269
year after year. We look forward to being your financial partner
for years to come.
Number of Internet Branch Users Number of Bill Payer Plus™ Users
6 sdccu.com Annual Report 2011 7
Consolidated Statement of Financial Condition Consolidated Statement of Income and Comprehensive Income
December 31, 2011 (unaudited) December 31, 2011 (unaudited)
Personal Loans 1%
ASSETS INTEREST INCOME
Cash and cash equivalents $ 1,137,322,126 8% Interest on loans and leases to members $ 167,090,912
Credit Cards Fixed Rate 9%
Investments 4% Real Estate Loans Interest on investments and cash equivalents 11,807,461
Available-for-sale 335,748 $ 178,898,373
EquityLines Money Market
Held-to-maturity 1,033,537,811 9% 39% Checking
Other investments 25,000,000 Dividends on members’ shares $ 33,265,313
Vehicle Loans Adjustable Rate
Loans and leases to members, net 3,087,511,664 12% Real Estate Loans
Interest on borrowed funds 2,927,538
26% Certi cates
Loans held for sale 19,964,313 Business Loans
Accrued interest receivable 15,231,447
NET INTEREST INCOME $ 142,705,522
Property and equipment, net 49,679,344
PROVISION FOR LOAN AND LEASE LOSSES 25,084,840
National Credit Union Share DISTRIbuTION Of lOAN PORTfOlIO DISTRIbuTION Of DEPOSIT PORTfOlIO
Insurance Fund deposit 43,066,215
NET INTEREST INCOME AFTER PROVISION
$4,658 FOR LOAN AND LEASE LOSSES 117,620,682
Other assets 47,830,082 $5,459
Total Assets $5,459,478,750 NON–INTEREST INCOME
Fees and other income 44,279,511
LIABILITIES AND MEMBERS’ EqUITY $1,678 $1,494 GENERAL AND ADMINISTRATIVE ExPENSES
Salaries and benefits $ 37,410,901
Members’ shares $ 4,658,463,923
Other general and administrative expenses 16,468,866
Borrowed funds 125,000,000
Professional and outside services 11,328,892
Accrued expenses and other liabilities 24,121,086 2006 2006 NCUSIF & corporate stabilization assessments 10,766,554
Total Liabilities $4,807,585,009 Occupancy 9,886,639
ASSETS ($ IN mIllIONS) DEPOSITS ($ IN mIllIONS)
Marketing, promotional and dues 6,625,476
Commitments and contingent liabilities
28 Loan processing 2,957,627
$3,199 $ 95,444,955
Members’ Equity $2,776
NET INCOME $ 66,455,238
Retained earnings, 17
substantially restricted $ 651,884,651
Accumulated other $1,157 OTHER COMPREHENSIVE INCOME
comprehensive income 9,090
Unrealized holding losses on investments
Total Members’ Equity $ 651,893,741 classified as available-for-sale (163,254)
Comprehensive Income $ 66,291,984
Total Liabilities and Members’ Equity $ 5,459,478,750 2011 2011
GROSS lOANS ($ IN mIllIONS) NumbER Of bRANCHES
8 sdccu.com Annual Report 2011 9
Year In Review
San Diego County Credit Union had a tremendous year in 2011. SDCCU experienced solid member
growth and enhanced product and service offerings. San Diegans again expressed that SDCCU is
better banking you can trust by voting SDCCU BEST Credit Union for the 12th year straight in the
San Diego Union-Tribune Readers Poll.
A record setting number of new members made the switch to SDCCU during the last few months
of 2011. Many, inspired by the social media-driven Bank Transfer Day, closed their accounts with
the big banks and opened new accounts at San Diego County Credit Union both in-branch and via
sdccu.com. Members were invited to post photos of themselves shredding their big bank debit
card to SDCCU’s Facebook page for a chance to win $1,000. The number of new checking accounts
opened during the first week of November was almost three times the per-day average of new
accounts for the entire year of 2010. SDCCU concluded the year with 225,362 total members.
In addition to substantial member growth, SDCCU also increased its assets over the $5 billion mark
to $5.45 billion! This positions SDCCU as the 11th largest credit union in the United States and the
fourth largest in California. SDCCU provides a competitive advantage to its members by offering
low fees and highly competitive rates.
As SDCCU’s member base grew in 2011, so did the line of products and services. Holding true to its
mission statement, SDCCU expanded its mobile offerings to ensure that more members are able to
access their accounts any where, any time. In addition to a mobile banking app for iPhones®, SDCCU
now offers apps for Android™ and BlackBerry® phones, SMS text and web-based mobile banking that
can be accessed by any mobile phone with Internet access. The enhanced mobile banking app now
enables users to select their bill payment date, giving them more control of their finances. SDCCU
was very excited to launch SDCCU Mobile Deposit in late 2011. This new cutting-edge service
allows members to deposit a check by taking a picture of it with a smartphone. It’s as easy as Check.
The SDCCU eServices team is constantly working to make our Internet Branch online banking the
BEST. This year, SDCCU added the ability for members to view eStatements all the way back to
March 2008. This makes researching past finances easier and more convenient. To help ease the
concerns of members that need to get their payment made right away, overnight payments were
added to Bill Payer Plus™.
To simplify the new account process, SDCCU launched a new account application that allowed new
members to complete the account opening process entirely online at sdccu.com, without having
to set foot in a branch. Existing members were also given the ability to open additional checking,
savings, money market and certificate accounts online through Internet Branch online banking. Your financial partner
SDCCU was recognized by the community with various awards throughout 2011. The San Diego for important life events.
Union-Tribune Readers Poll honored SDCCU as BEST Credit Union, BEST Financial Planner, BEST Home
Loan Provider and BEST Place To Work. San Diego CityBeat also named SDCCU BEST Credit Union
10 sdccu.com Annual Report 2011 13
Year In Review Continued...
again this year. SDCCU was included in SD Metro magazine’s list of San Diego’s Most Trusted Brands
and the San Diego Ad Club’s Top 100 Brands Of The Past 100 Years. The Cybersecurity Award that
was given to SDCCU by ESET® North America is another reason SDCCU truly is better banking you
SDCCU was additionally honored in 2011 with a second Better Business Bureau of San Diego Torch
Award for Marketplace Ethics. The BBB Torch Awards are presented to businesses and organizations
that maintain a solid commitment to conducting their business practices in an ethical fashion. The
BBB has been a symbol of trust and ethics for 100 years and SDCCU is honored to be recognized by
this esteemed organization.
The home loan rates SDCCU offered throughout 2011 were at historic lows. SDCCU members were
able to take advantage of low rates on new home purchases and to refinance existing home loans.
To better serve the needs of its members, SDCCU launched a 5/5 adjustable rate home loan that
provides the flexibility of an adjustable rate with added stability. Through competitive loan programs,
SDCCU was able to help many members get into their dream homes. Thanks in part to this, SDCCU
was again voted BEST Home Loan Provider in the San Diego Union-Tribune Readers Poll.
While the auto industry has been affected by the current economic situation, SDCCU continued to
offer low-rate auto loans and leases. SDCCU members have combined SDCCU’s low rates with great
prices by purchasing their cars through the many low rate car sales and our convenient Auto Express
Sales & Leasing service. Over 675 members were assisted by SDCCU’s Auto Express Sales & Leasing
service during 2011.
To the delight of many members, SDCCU launched the new SDCCU Cash Rewards Visa platinum credit
card. This new reward program allows cardholders to earn unlimited cash rewards on all qualified
purchases with no annual fee. To make it easy, the cash rewards earned are posted to the member’s
account monthly. Unlike some big bank rewards programs, SDCCU Cash Rewards doesn’t have any
hoops to jump through.
The popular Check Card Overdraft Service was enhanced to include ATM and PIN-based transactions
in addition to signature-based transactions. This allows enrolled members to shop with peace of
mind, knowing that their transactions may be approved even in the event of a budgeting oversight.
SDCCU launched the official Facebook and Twitter pages this year, giving members yet another way
to stay in contact with their financial institution. This is a great way for members and the community
to learn about community events, new products and prize giveaways. Just a few short months after
launching, the SDCCU Facebook page had garnered over 1,000 ‘fans’ .
Easy auto buying with This overview serves as a sampling of the numerous enhancements made by SDCCU to improve the
Auto Express Sales & Leasing. banking experience of our members. SDCCU is always looking for new and exciting products and
services that facilitate a better banking experience.
14 sdccu.com Annual Report 2011 13
Coming In 2012
SDCCU will continue to provide better banking you can trust through enhanced convenience,
by continuing to offer low fees and by providing exceptional member service.
There are numerous projects on the horizon designed to maintain SDCCU’s position as a state-
of-the-art financial institution. Members can look forward to a comprehensive update to
sdccu.com, including Internet Branch online banking. The sdccu.com website will have a new
look and easier navigation so you can find just what you’re looking for even faster. Internet
Branch online banking will soon include a convenient dashboard so that members can see a
snapshot of important items like balances and most recent transactions. Business bill pay will
also be available for our business members, giving businesses more control over their billing
and invoicing processes.
SDCCU branches will be offering eReceipts to help us all continue in our efforts to go green.
Rather than taking a printed copy of a transaction receipt, members will be given the option
to have the receipt sent electronically to Internet Branch online banking where it can easily be
Account alerts will be upgraded to allow recipients to take immediate action on their
accounts. If a low balance alert is sent, members will be able to instantly respond with a
text to transfer money between their SDCCU savings and checking accounts.
The future of better banking looks remarkable as we work to bring our members added
convenience, accessibility and superior products.
Secure online access at sdccu.com.
14 sdccu.com Annual Report 2011 17
Walk MS Oceanside Branch Grand Opening
In The Community
etter banking extends into helping our communities be better places for everyone. SDCCU
has continued to serve as the presenting sponsor for events such as Walk MS, Shamu & You
Family Walk for Rady Children’s Hospital, the Chargers Blood Drive, and the San Diego County
Credit Union Poinsettia Bowl which benefits the Make-A-Wish Foundation of San Diego. Bike To Work Day iVIE Awards
SDCCU is proud to invest in its local communities and carefully selects a variety of causes and
services that support the needs of Southern California. SDCCU supports these organizations
through volunteerism, financial support and creating public awareness. Team SDCCU, a group of
volunteer employees, members and friends, raises money for and attends numerous events each year.
San Diego County Credit Union supports over 75 nonprofit organizations throughout San Diego,
Riverside and Orange counties each year. In 2011, SDCCU supported Susan G. Komen for the Cure ®,
the San Diego Chapter of the Leukemia & Lymphoma Society ®, Mothers Against Drunk Driving ®,
Women’s Resource Center, the Helen Woodward Animal Center and many more. Numerous fans
have ‘liked’ SDCCU on Facebook and ‘followed’ the credit union on Twitter to stay up-to-date on
these and other community events.
As SDCCU continues to grow, so does its community support. In addition, SDCCU looks forward to
continuing to help its local communities in the new year. Now that’s better banking you can trust.
Poinsettia Bowl Shamu & You Family Walk for Rady Children’s Hospital
16 sdccu.com Annual Report 2011 17
ACCOUNTS eSERVICES PAYMENT AND PRODUCT PROTECTION
• Certificates • eNotices & eTax Forms • Credit Life Protection
• Checking • eStatements • Credit Disability Protection
• IRAs – Traditional, Roth & Coverdell • External Transfers • Disability Payment Protection
• Money Market • Live Chat • Guaranteed Asset Protection
• Savings • Loan Applications • Life Payment Protection
• teenFIRST® • Mobile Banking • LoJack®
• New Account Application • Unemployment Payment Protection
ACCOUNT SERVICES • SDCCU® Mobile Deposit
• Check Card Overdraft Service • Online Banking ADDITIONAL PRODUCTS AND SERVICES
• Courtesy Clearing • Online Bill Pay • Auto Express Sales & Leasing1
• Direct Deposit • Personal Finance Manager • Educational Seminars
• Fly Miles Plus Reward Program
• Person-to-Person Payments • Financial Counseling
• myOwn Card Photo Visa®
• Telephone Banking • LPL Financial Investment Services2
• Overdraft Protection • Real Estate Services
• SDCCU Cash Rewards Visa® BUSINESS SERVICES • Safe Deposit Boxes
• Visa® Debit Cards • ADP Payroll Services
• TurboTax® OnlineSM
• Certificates • Visa® Gift Cards
VEHICLE LOANS AND LEASES • Checking • Visa® TravelMoney®
• Auto Leases • Commercial Real Estate Loans • Member Discount Program
• Motorcycle Loans • Equipment Loans
• New & Used Auto Loans • First Data® Merchant Card Services ACCESS
• Preferred Dealer Network • Money Market • 24/7 Online & Mobile Banking
• Recreational Sports Vehicle • Savings Access
Program Loans • SBA 504 Loans • 28 Full-Service Branch Locations
• RV/Boat Loans • Sweep Savings • Convenient Weekday Hours, with
Most Branches Open Saturday
• Vehicle Loans & Leases
From 9 a.m. to 4 p.m.
HOME AND PERSONAL LOANS • Visa® Credit & Debit Cards
• Home Equity Loans • FREE Access to 28,000 Surcharge-
FREE CO-OP ATMs
• Home Equity Lines INSURANCE
• Home Loans • Accidental Death &
• Signature Loans Dismemberment Insurance
• Visa® Credit Cards • Mechanical Breakdown Insurance
Auto sale and brokerage services provided by SD Auto Sales/Leasing.
Securities and advisory services offered through LPL Financial, a Registered Investment Advisor,
member FINRA/SIPC. Insurance products offered through LPL Financial or its affiliates. San Diego County
Easy rewards with a SDCCU Visa.
Credit Union is not a registered broker/dealer, nor are they affiliated with LPL Financial.
Not NCUA Insured No Credit Union Guarantee May Lose Value
Federally insured by NCUA.
iPhone is a trademark of Apple, Inc. Android is a trademark of Google, Inc.
18 sdccu.com Annual Report 2011 21
SAN DIEGO COUNTY
Carlsbad Kearny Mesa Poway
2530 El Camino Real 5500 Overland Avenue 14099 Stowe Drive
Carlsbad, CA 92008 Suite 190 Poway, CA 92064
San Diego, CA 92123
Carmel Mountain San Diego
12330 Carmel Mountain Road La Jolla Colony/UC 5555 Mildred Street
Suite C-1 7708 Regents Road San Diego, CA 92110
San Diego, CA 92128 San Diego, CA 92122
Chula Vista La Mesa 790 West San Marcos Boulevard
303-1 H Street 8555 Fletcher Parkway San Marcos, CA 92078
Chula Vista, CA 91910 Suite 101
La Mesa, CA 91942 Santee
EastLake 286 Town Center Parkway
2280 Otay Lakes Road Mira Mesa Santee, CA 92071
Chula Vista, CA 91915 6705 Mira Mesa Boulevard
San Diego, CA 92121 Solana Beach
El Cajon 665 San Rodolfo Drive
312 West Main Street Mission Valley Suite 110
El Cajon, CA 92020 2245 Fenton Parkway Solana Beach, CA 92075
Encinitas San Diego, CA 92108 Sorrento Valley
501 North El Camino Real 10715 Sorrento Valley Road
Encinitas, CA 92024 Oceanside San Diego, CA 92121
625 College Boulevard
Escondido Oceanside, CA 92057 Torrey Pines
1600 South Escondido Boulevard 3366 North Torrey Pines Court
Escondido, CA 92025 Pacific Beach Suite 100
1650-A Garnet Avenue La Jolla, CA 92037
Escondido Civic Center San Diego, CA 92109
150 East Valley Parkway Vista
Escondido, CA 92025 Point Loma 1475 West Vista Way
1004 Rosecrans Street Vista, CA 92083
San Diego, CA 92106
Murrieta Temecula Temecula North
25165 Madison Avenue 31693 Temecula Parkway 29097 Overland Drive
Murrieta, CA 92562 Temecula, CA 92592 Temecula, CA 92591
Low home loan rates
32341 Golden Lantern
Laguna Niguel, CA 92677 (877) 732-2848
and no hidden fees.
22 sdccu.com Annual Report 2011 21
sdccu.com sdccu.com sdccu.com
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