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Purpose Statement To empower our members so they can reach their financial goals
TABLE OF
CONTENTS 0 PG. 2
CHAIRMAN’S REPORT & CEO MESSAGE
0 PG. 3
CREDIT COMMITTEE & AUDIT COMMITTEE REPORTS FINANCIAL GROWTH & DISTRIBUTION OF LOANS
0 PG. 4
STATEMENT OF FINANCIAL CONDITION
0 PG. 5
COMPARATIVE OPERATING STATEMENT
0 PG. 6
BOARD OF DIRECTORS & EXECUTIVE MANAGEMENT
0 PG. 7
CREDIT UNION MANAGEMENT
0 PG. 8
RETIREMENTS & IN MEMORIAM
I I I I I I I
0 PG. 10 FCCU IN YOUR COMMUNITY
I
A REPORT FROM THE CHAIRMAN
From the beginning, it has been top of mind for the credit union to remember where we came from, the successes we experienced and the growth we have been so fortunate to achieve. We are continuously striving to improve the member experience and remain on the cutting edge of technology. We established video chat with members to create an in-person channel to walk through signing loan documents and to answer any questions members may have. While we may connect via a personal video teller or an online chat; these connections are similar to a face time or an instant chat with family and friends. First Community’s membership increased to an impressive 142,875 members and assets grew by 9.6% to end the year at $1.96 Billion. Member loan rates were some of the lowest rates in the market to support members in achieving their financial goals. Ultimately, we ended the year at $1.26 Billion in gross loans. The breakdown of our loan portfolio on the bottom of page 3.
FCCU 2021 ANNUAL REPORT
With a continued focus on enhancements for our members’ lives, we looked at banking through the lens of the consumer to simplify banking. First Community leads the way as a high-tech, high-touch credit union, offering an array of digital services with the latest security to ensure members have access to the technology they need. As we all know, technology is not a one-and-done situation. We are committed to staying ahead of the curve on technological changes, and securing your finances is our number one priority.
PG. 2
On behalf of the Board of First Community, we thank our members for trusting us with their finances. We remain committed to supporting our members and community while ensuring we continue to be financially strong.
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Doug Wilcher Our commitment to community remained strong as represented by our executive team who pour their time into an organization they are Chairman of the Board passionate about, serving on the board of a community organization. We donated over $100,000 to support local communities as well as we supported charities, including the American Heart Association, the National Multiple Sclerosis Society, Spindletop Charities, Children’s Miracle Network, local food banks and more. In addition, we once again awarded seven high school seniors with a scholarship to assist with their college/university education.
A MESSAGE FROM THE CEO
As I took the helm as CEO of First Community, it was important to reflect on the solid history that First Community has built over 67+ years. In 1954, a couple of educators in Spring Branch ISD saw the importance and value of having a credit union. These visionaries began the credit union to help their co-workers obtain an all-important loan and have a safe place to secure and grow their money while providing a larger purpose of being a part-owner of the credit union. Growing from assets of $2,214 in 1954 to ending 2021 at $1.96 Billion in assets tells a story of perseverance, a community working together to support each other and ultimately reaching exponential success. We remain humble and remember where we came from; after all, our future growth reflects our strong history. 2021 was a tremendously successful year thanks to a strong leadership team and employees’ dedication. We enhanced innovation to reach our members in new ways, and expanding our services was at the forefront.
TJ Tijerina
President/CEO
Banking is not just transactional; it is personal. Every financial journey is unique and our experienced team provides well-rounded guidance and knowledge customized for each situation to empower members to achieve their financial goals. We commit ourselves to members’ successes and are privileged to be your financial partner for life. Education is a staple in life; the more we share our knowledge, the stronger we all will be. Whether members are in their financial journey from building credit, building wealth, preparing for retirement and everything in between, we believe all members can achieve financial success; we’ll be by your side to walk with you through this journey. With strong roots in our community, our increased involvement and reach this year made a more considerable impact, one we will continue in the future. I am proud to share that all Executive Vice Presidents work with a charity of their choice in the Houston community, supporting the fight against hunger, giving to underprivileged children, donating time to mentor children, working with those with Autism, and so much more. Our employees give their time and donate to support the American Heart Walk, the MS 150, Children’s Miracle Network and numerous organizations they volunteer at on their own time. Together, we all build a stronger community. We thank our members for choosing First Community and are privileged to empower our members so they can achieve their financial goals. As we look to 2022, we will maintain a sound financial position by staying true to our core values. I thank the Board of Directors for their support. As an engaged board of directors with a passionate executive leadership team, First Community is well-positioned for expansion in the Houston community and beyond.
Expansion
Banking
Community - Foundation
Education
CREDIT COMMITTEE REPORT
AUDIT COMMITTEE REPORT
The core responsibility of the Credit Committee is reviewing the credit union’s lending policies and practices. We looked at our lending process and simplified the loan process providing increased efficiency and a seamless experience for our members. We added loan specialists to all lending areas to further streamline the process, facilitating quick decisions and faster funding to help members in a timely manner. Loan officers reviewed 45,467 applications for auto loans, credit cards, personal loans and real estate loans. FCCU funded $515.42 Million and closed the year with a loan portfolio of $1.264 Billion.
Based on an in-depth independent audit of the operations of First Community Credit Union, the CPA firm of OCM & Co., CPAs and Advisors: A Doeren Mayhew Firm concluded that, in their opinion, the financial position of FCCU, the operations and cash flow for the year ending December 31, 2021, conforms with generally accepted accounting principles and practices.
Marty Miracle
Chairman, Credit Committee
ASSETS
DISTRIBUTION OF LOANS
2017 2018
$1.355 B
2019
$1.792 B
2021
GROSS LOANS
2019
2020 2021
• • • • •
$1.541 B
2020
2017 2018
I AUTO - NEW: 17.20% | USED: 24.97% I REAL ESTATE - 32.83% I COMMERCIAL - 13.20% I UNSECURED - 9.07% I OTHER - 2.74% I
$1.423 B
$1.965 B
$1.054 B $1.099 B $1.159 B $1.128 B $1.264 B
END OF YEAR BREAKDOWN OF OUR LOAN PORTFOLIO BY LOAN TYPE
MEMBERSHIP
2017 2018
2019
2020 2021
125,229 129,910 133,785 136,616 142,875
CREDIT CARD LOANS
$62,042,181
AUTO LOANS AUTO LEASES
$484,479,660 $48,510,821
REAL ESTATE LOANS OTHER LOANS COMMERCIAL LOANS
$414,930,023 $87,175,682 $166,869,531
FCCU 2021 ANNUAL REPORT
FINANCIAL GROWTH
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As families searched for a new home, houses proved to be limited. Striving to find the right financing option for members, through our real estate programs, FCCU was able to help 719 families find their forever home. No matter what your lending need is, we are honored to help you achieve your financial goals and will find the right loan that fits you.
PG. 3
Supporting members with competitive rates and a fast loan process is our priority. From application to closing online, for most loans, we’re able to respect everyone’s busy lives. Whether finalizing your auto financing online or at the dealership, we are here to get you into the new auto you desire.
As a state-chartered credit union, Sally Moseley FCCU has additional reviews of our Chairman, Audit Committee lending and accounting practices by the Texas Credit Union Department and by Federal Examiners with the National Credit Union Administration (NCUA). In their annual audit, Texas State Examiners and NCUA Examiners found First Community sound in both policy and practice.
STATEMENT OF FINANCIAL CONDITION ASSETS
$130,213,343
2020
$247,161,172
Investments Available for Sale Held to Maturity Other Investments Loans to Members, net
2021
2020
Members’ Share Accounts $1,768,803,364
$1,602,644,446
Liabilities
478,743,856
339,447,060
Accounts Payable
4,126,352
3,310,397
0
0
Accrued Liabilities
17,630,134
20,448,463
7,729,300
1,727,700
$1,790,559,850
$1,626,403,306
1,262,833,468
1,123,847,303
13,213,020
13,213,020
164,632,908
146,734,829
0
0
-3,891,007
5,748,079
$173,954,921
$165,695,928
$1,964,514,771
$1,792,099,234
Accrued Interest Receivable
Total Liabilities Members’ Equity Regular Reserves
531,054
741,026
3,391,329
3,621,403
Other Receivables
5,134,398
6,060,887
Prepaid and Other Assets
4,380,075
4,564,339
55,630,833
50,719,422
Total Members’ Equity
15,927,115
14,208,922
$1,964,514,771
$1,792,099,234
TOTAL LIABILITIES & MEMBERS’ EQUITY
Investment
Undivided Earnings
PG. 4
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FCCU 2021 ANNUAL REPORT
Cash
2021
LIABILITIES & MEMBERS’ EQUITY
Loans
Property and Equipment NCUSIF Deposit
TOTAL ASSETS
Appropriated Undivided Earnings Accumulated Other Comprehensive Gain/Loss
COMPARATIVE OPERATING STATEMENT Interest Income
Interest on Loans to Members
Interest on Investments & Cash Equivalents Total Interest Income Members’ Share & Savings Accounts
Net Interest Income After Provisions for Loan Losses
Non-Interest Income
Fees & Service Charges
Other Non-Interest Income Total Non-Interest Income Non-Interest Expense
Compensation & Benefits Office Operating Costs
Education & Promotion
NCUA Premium Assessment Other
$48,439,330
$52,422,238
$53,264,981
6,084,163
10,861,202
$46,338,075
$42,403,779
-456,615
5,057,000
5,581,112
4,825,651
$46,794,690
$37,346,779
23,205,496
19,378,321
$29,903,207
$25,022,942
29,661,338
24,868,839
3,485,543
3,613,158
6,697,711
27,263,795
0
5,644,621
23,295,156 0
-1,610,857
-553,915
Total Non-Interest Expense
$58,799,819
$51,223,238
NET INCOME
$17,898,078
$11,146,483
FCCU 2021 ANNUAL REPORT
Provision for Loan Losses
$46,841,126
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Net Interest Income
2020
PG. 5
Interest Expense
2021
DOUGLAS WILCHER
MARTY MIRACLE
JULIE EISENHAUER
SALLY MOSELEY
Term Expires: March 2023
Term Expires: March 2022
Term Expires: March 2024
Term Expires: March 2024
Vice Chairman
Secretary
Treasurer
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Chairman
DR. STEVEN WALKER
SCOTT CLANTON
ROBERT SCHUMACHER
PG. 6
FCCU 2021 ANNUAL REPORT
BOARD OF DIRECTORS and EXECUTIVE MANAGEMENT
Term Expires: March 2022
Term Expires: March 2022
Term Expires: March 2022
Director
Director
Director
In 2021, board member compensation totaled $89,000. In 2022, board member compensation is estimated to equal $108,000.
TJ TIJERINA President & Chief Executive Officer
KEITH DOMINGUE Chief Financial Officer
RITO GARZA Chief Information Officer
JENNIFER KILGORE Chief Operating Officer
RANDAL WARD Chief Lending Officer
NANCY TRENNEL Chief Marketing Officer
SENIOR MANAGEMENT TRICIA SMITH LARRY HOOK LANCE MORGAN KATIE RIGBY JON HARTMAN LEE STRICKHOUSER
AMBER MAGEE VELSIE BORJA ARTHUR GORDON ALEX SAMOILOV GEORGE CHEAIRS
ACCOUNTING COMMERCIAL LENDING COMPLIANCE & LEGAL COUNSEL HUMAN RESOURCES INFORMATION TECHNOLOGY LENDING
MARKETING & MEMBER EXPERIENCE OPERATIONS OPERATIONS OPERATIONS REAL ESTATE
MARK VINSON
CAREY RIVERA
MARIBETH WAYNE
STEVE GREGG
AUDIT
DARRELL STORRS
CALL CENTER
CARD SERVICES
COMMERCIAL LENDING COMPLIANCE
ROBBIE HENEGAR JESSE ROCHA
BRYAN PERKOLA
STEPHEN MARTIN
CONSUMER LENDING
ENTERPRISE RISK MANAGEMENT
FACILITIES & CONSTRUCTION MANAGEMENT
FRAUD MANAGEMENT
INDIRECT LENDING
JODY KOHLMAIER
KARON MCMAHAN
SABRINA ATKINSON
NETWORK & INFRASTRUCTURE PRODUCT MANAGEMENT SPECIAL SERVICES
STAFF DEVELOPMENT
INFORMATION SECURITY
BRANCH VICE PRESIDENTS DENISE FARNON
KIM LEMEX
ERIC VASQUEZ
DANIEL FERNANDEZ LOGAN MOTTER DIEGO DAZA
ALIANA ALIEF
BARKER CYPRESS BUNKER HILL
CHAMPIONS
CINCO RANCH
DOROTEO ROMAN DEANDRE MASSEY ERIC VASQUEZ CHRIS GAGNE
TAYLOR BORJA
COPPERFIELD EBRANCH FAIRFIELD ITM
KATY MARKET
MARCELO SAUCEDA DANIEL FERNANDEZ
DENISE FARNON JOY STUART
MATTHEW STATON
MORTON RANCH SAM HOUSTON SIENNA
SPRING BRANCH SPRING MARKET
LANA HUFF
JAMIE DROHAN
EVERETT DONEGAN
ELIZABETH POPPOWITZ ANUM BECKER
CEO, EVP/CLO, one Board Member retired and one Board Member passed away. Two new Board Members were appointed to the Board of Directors. COO was promoted to CEO. SVP, Business Development and Project Manager was promoted to EVP/COO. SVP, Lending was promoted to EVP/CLO and a new SVP, Lending was hired. VP, ITM was promoted to SVP, Operations. VP, Real Estate was promoted to SVP, Real Estate. VP, Commercial Lending was promoted to SVP, Commercial Lending. VP, Call Center and two Branch VPs resigned and two new Branch VPs were hired or promoted. AVP, Call Center was promoted to VP, Call Center.
SUGAR LAND TECHNIP
TOMBALL
THE WOODLANDS 99N
FCCU 2021 ANNUAL REPORT
AMBER PIERCE
CHRIS NICHOLS
JILL VINSON
ASSET RECOVERY
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MARK PALOMO
PG. 7
VICE PRESIDENTS
FCCU 2021 ANNUAL REPORT | PG. 8
RON DOWNING
RETIREMENTS AND IN MEMORIAM
Ron Downing served as CEO of First Community Credit Union from 1977 – 2021, retiring after 43 years of dedicated service. Ron was instrumental in creating a first class financial institution growing the credit union to $1.9 Billion in assets. We thank Ron for his many years of service and for growing First Community to the third largest credit union in the Greater Houston Area.
PG. 9 |
ROB HAUCK
After 46 years of dedicated service, Arlie Beckendorf retired from our Board of Directors. Arlie has been an integral part of the board and FCCU, and will be greatly missed. Arlie began as one of the original board members of First Community and assisted in guiding the success of FCCU. Arlie’s vast knowledge of the credit union allowed him to mentor so many over the years. We thank Arlie for his selfless service and wish him the best.
Sadly, we lost our beloved Board Member, Rob Hauck, as a result of a tragic accident. Rob served as a board member from 2013 – 2021. Rob always had a friendly smile, took a personal interest in everyone he met, and cared for the members of First Community. Rob was a crucial member of the board of directors and is sorely missed.
FCCU 2021 ANNUAL REPORT
ARLIE BECKENDORF
FCCU IN YOUR COMMUNITY
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Continuing our passion of giving back, we connected with numerous new community organizations to expand our reach further. Partnering with the Barbara Bush Literacy Foundation’s My Home Library Program, we provided books to the entire fourth grade at a local school to encourage continued reading and knowledge building at home. In addition, we partnered with Spindletop Charities, an organization dedicated to the betterment of the children. Collaborating for our Annual Holiday Toy Drive, we donated over 800 toys to ensure kids had a gift to unwrap.
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Stars in the Classroom (SITC) honors the extraordinary impact that teachers have on our future generations day in and day out. We are proud to honor deserving teachers with well-deserved recognition for their excellence. A donation of $500 is made to the winning teacher’s school district in their honor. In addition, we continued awarding scholarships to high school graduates through our annual scholarship program to assist with their college/university education.
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As we continue supporting the community, we have established the First Community Cares Foundation to elevate our community s involvement to a new level. au Cl . rs
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PG. 10
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After the Winter Storm in February, we held blood drives to contribute to replenishing the blood supply that was lost at the Gulf Coast Regional Blood Center. Additionally, we donated $1,000 to Kids’ Meals that helped restock perishable items lost due to the major power crisis that was endured. FCCU pledged over $100,000 to the community and continued steadily supporting our local food pantries, the American Heart Association, and the National Multiple Sclerosis Society as well as numerous local organizations.
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FCCU 2021 ANNUAL REPORT
Together, we can do so much more. While this is true in all facets of life; it is even more true when we come together to give back to our community. We are proud of our deep community roots and are honored to support our community.
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$100,000 donated to support local communities
$2,000
donated to local school choirs
$15,000 donated to American Heart Association
in employee donations to charities
donated to Holiday Toy Drive with Spindletop
donated to Children’s Miracle Network
$6,000
$1,500
11
6
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1,300
donated to local food banks
to hold the Red Rangers Christmas Party
virtual seminars held including Annual Meeting
$3,000
deserving teachers honored through SITC
$5,000
Blood Drives held at FCCU branches
$1,500
meals packed and donated to Kids’ Meals
FCCU 2021 ANNUAL REPORT
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Our future growth is a reflection of our
strong history.
Your fiacial partner for life.