Redwood Credit Union posted a jump of about $20 million in net income in 2018, an increase that also corresponded with gains in net interest income.
The credit union also increased its overall assets over 2017, according to its annual report. Redwood’s net income clocked in at $87.2 million at the end of 2018, up 29.0%, or roughly $20 million, from $67.6 million at the end of 2017. Net interest income climbed 23.7% to $143.4 million from $115.9 million during the same period.
Total assets held by the credit union increased 9.2% to $4.4 billion from $4.029 billion from the end of 2017 through the end of 2018.
Redwood’s Chief Financial and Risk Officer Ron Felder said the growth was not unusual year over year for the credit union and could be attributed to member and deposit growth, both hovering around 9%, as well as an 18% increase in the number of loans written. He said the increase in assets was driven mostly by the increase in deposits.
“It’s not only just from loans, it’s how much our members overall are using the credit union’s products and services and I think that’s what translating to the bottom line increase in net income year over year,” Felder said of the source of the income growth.
He also noted part of the year over year success was thanks to investments in technology and improving branches.
“We’re taking the earnings and returning them back to members whether that’s lower fees, better rates,” he said.
In a statement released with the results, President and CEO Brett Martinez highlighted Redwood’s purchase of real estate in Napa to expand back office operations as well as the remodeling of the North Dutton Avenue branch in Santa Rosa. He noted the credit union’s plans to add new branches in American Canyon in Napa County and Lower Lake in the Clear Lake region.
“We continue to update our mobile and online apps to make it faster and easier to do your banking, wherever you are,” Martinez said.
Redwood said it had 329,000 members at the end of 2018, making it the eighth largest credit union in California and donated over 6,000 hours in volunteer time.