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T
Board of Directors and Executive Management
4
Message from the Chairman of the Board and President/CEO
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Statement of Financial Condition
6
Comparative Operating Statement
7
Credit Committee Report and Audit Committee Report
8
Financial Graphs
9
Lending Solutions
10
First Community Credit Union
Commercial Services
11
Branch Operations
12
is dedicated to providing the members of the community sound financial services in a personal, professional manner. The credit union is committed to the philosophy of “people-helpingpeople.�
Technology
13
FCCU in YOUR Community
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Houston Texans Partnership
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Credit Union Management
18
First Investment and Retirement Planning Center
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ission
Statement
able of Contents
3
B
A
oard of Directors
Report from the Chairman
On behalf of the Board of First Community Credit
Sally Moseley
Robert Schumacher
Douglas Wilcher
Julie Eisenhauer
Chairman
Vice Chairman
Secretary
Treasurer
Term Expires: March 2018
Term Expires: March 2017
Term Expires: March 2019
Term Expires: March 2018
E
Arlie Beckendorf
Rob Hauck
Director
Director
Director
Term Expires: March 2017
Term Expires: March 2019
First Community Credit Union’s membership increased to 120,801 members - a net growth of 5%. Assets grew by 8% ending the year at $1.249 Billion and our gross loans grew a healthy 11%. The breakdown of our loans can be found on page 9 of this report. Our connections within the communities and the school districts we serve has impacted thousands of people living in Harris, Ft. Bend and Montgomery Counties. We donated $100,000 to schools, charities and community organizations. Plus with the addition of six more recipients of our annual college scholarship program, we have contributed more than $125,000 over the past few years to higher education.
Jerald Till
Term Expires: March 2017
Union, we thank our members for placing their trust and confidence in us. What a dynamic year 2016 was as we hit new milestones, expanded our technology, attracted new members and made a difference in the communities we serve.
xecutive Management
The Board is committed to assessing opportunities and making all decisions for the benefit of our members and the credit union as a whole. It is our pleasure to continue to serve our fellow credit union members in 2017.
Sally Moseley Chairman of the Board
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Ron Downing
Cheryl McCullough
Keith Domingue
Rito Garza
TJ Tijerina
Don Mozingo
President and Chief Executive Officer
Chief Development Officer
Chief Financial Officer
Chief Information Officer
Chief Operations Officer
Chief Lending Officer
A
Message from the CEO
T
here is nothing quite as satisfying as reporting on our annual results when they are positive and filled with strong financials. First Community Credit Union had a remarkable year in 2016 attaining $1 Billion in loan growth with competitive rates and excellent service. As technology takes center stage, we have added a special section to this annual report that can be found on page 13. The strides we are making in technology continue to focus on our members’ experience in branches or on the go. Conveniences such as new features in Online Banking, Mobile Deposits and text fraud alerts for debit and credit cards save members time and money. Plus individualized text alerts that are set up by the member provide a strong financial solution to safeguard their funds. At First Community Credit Union, we continue to focus on our members’ Safety, Service and Convenience. Safety by continuing to stay up-to-date ensuring that our ATMs, branches, ITMs and online services are secure when our members conduct their financial transactions. Service by providing the most up-to-date tools offered with our ever-increasing technology, while still offering the personal service that over the past 62 years has made us a success together. Convenience to be available to our members 24 hours a day. We appreciate each and every member for being a part of the First Community Credit Union family and we look forward to a successful 2017!
Ron Downing President/CEO
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S
C
tatement of Financial Condition Assets Cash
omparative Operating Statement
2016
2015
$33,838,684
$23,286,598
Investment Available for Sale
161,291,099
0
0
4,453,900
4,488,397
1,016,027,866
912,577,569
442,496
385,113
2,635,301
2,393,420
Other Receivables
4,989,216
4,830,107
Prepaid and Other Assets
6,384,327
6,365,806
Property and Equipment
26,028,109
26,283,545
NCUSIF Deposit
10,207,013
9,480,170
$1,248,760,929
$1,151,381,824
2016
2015
Other Investments Loans to Members, net Accrued Interest Receivable Investments Loans
TOTAL ASSETS
Liabilities and Members’ Equity Liabilities Members’ Share Accounts
$1,115,623,774
$1,035,639,218
Accounts Payable
7,052,868
7,447,398
Accrued Liabilities
21,435,510
13,789,019
TOTAL LIABILITIES
$1,056,875,635
Regular Reserves
13,213,020
13,213,020
Undivided Earnings
92,769,507
82,253,721
0
0
(1,333,750)
(960,552)
Members’ Equity
Accumulated Other Comprehensive Gain/Loss
TOTAL MEMBERS’ EQUITY 6
TOTAL LIABILITY AND MEMBERS’ EQUITY
Interest on Investments and Cash Equivalents
TOTAL INTEREST INCOME
$37,122,386
$34,472,622
2,717,788
2,621,447
39,840,174
37,094,069
4,550,288
3,779,370
35,289,886
33,314,699
5,250,500
4,306,436
$30,039,386
$29,008,263
Interest Expense Members’ Share and Savings Accounts
NET INTEREST INCOME Provisions for Loan Losses
NET-INTEREST INCOME AFTER PROVISIONS FOR LOAN LOSSES Non-Interest Income Fees and Service Charges
18,308,968
17,081,663
Other Non-interest Income
3,626,347
3,201,521
21,935,315
20,283,184
Compensation and Benefits
21,313,398
22,588,961
Office Operating Costs
18,271,989
17,462,746
1,873,529
2,143,005
NCUA Premium Assessment
0
0
Other
0
0
Other-than-Temporary Impairment on Investments
0
0
41,458,916
42,194,712
$10,515,785
$7,096,735
TOTAL NON-INTEREST INCOME Non-Interest Expense
$1,144,112,152
Appropriated Undivided Earnings
2015
Interest Income Interest on Loans to Members
143,754,017
Held to Maturity
2016
Education and Promotion
TOTAL NON-INTEREST EXPENSE $104,648,777
$94,506,189
$1,248,760,929
$1,151,381,824
NET INCOME
7
C
F
redit Committee Report
Reviewing the lending policies and practices is the core responsibility of the Credit Committee. During 2016, the credit union experienced a net 11.47% growth in our lending portfolio as rates remained very competitive across the board. Our loan officers reviewed 68,471 applications for auto loans, credit cards, personal loans and real estate loans. FCCU funded $375.32 million and closed 2016 with a loan portfolio of $1,014.5 Billion. Below is the breakdown by loan type:
• Credit Card Loans • Direct Auto Loans • Indirect Auto Loans • Real Estate Loans • Other Loans • Commercial Loans
$ 54,164,297 $ 219,694,678 $ 332,738,513 $ 196,799,349 $ 76,584,353 $ 134,474,146
As a strong financial institution, we welcome our members reaching out to FCCU for the loans they need to build a better financial life. The credit union was built on helping our members. Lending is just one way we do that. When you have a financial need, we encourage you to reap the rewards of very competitive rates, online application and closing process and the security and peace of mind that you are working with a credit union you know and trust. Douglas Wilcher Chairman, Credit Committee
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A
inancial Graphs
Assets
udit Committee Report
2012 2013 2014 2015 2016
Membership 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 the cash flow for the year ending December 31, 2016, conforms with generally accepted accounting principles and practices. As a state chartered credit union, FCCU has additional reviews of our accounting practices by the Credit Union Department for the State of Texas. Texas State Examiners, in their annual audit, found First Community Credit Union sound in both policy and practice. As such, FCCU continues to be federally insured by the National Credit Union Administration (NCUA). Jerald Till Chairman, Audit Committee
Gross Loans M - Millions B - Billions
D
$910.0
115,415 109,294 $1,151.4 103,122 93,907 2012 2013 2014 2015 2016
$914.4 M $985.8 M $680.0 $1,071.5 M $1,151.3 M $553.4 $1,248.8 B $496.6 93,907 103,122 109,294 115,415 120,801
2012 2013 2014 2015 2016
$553.4 M $680.0 M $798.7 M $910.0 M $1,014.5 B
Assets Membership istribution of Loans (millions)
C 13.26% O Distribution of Loans Loans M 2.87% M UNSECURED E 10.01% R NEW USED C I A 27.24% 27.22% L
OTHER
9
L
Commercial Services
ending Solutions
FCCU has been in the commercial lending business for more than 10 years with industry experts ready to discuss the needs of Houston’s businesses. Lending money for land, industrial sites, medical facilities, hotel space and retail space have led the way as we support local business owners.
Providing loans to our members in a financially sound manner is our main focus. Whether car ownership, home ownership, improving their cash flow or simply making a first-rate difference in their financial lives, we pride ourselves on making it an easy lending process, anywhere, anytime. Below is an illustration of the number of loans outstanding by type demonstrating how deeply we impact our members’ lives. Technology has made applying and funding for a loan faster and more convenient. Be sure to download our Mobile app for Apple or Android and Think First® for your next financial need.
The Commercial Loan Portfolio increased by 26.65% in 2016 closing at $134.47 million dollars. We stand ready to be your business lender of choice!
Business Accounts
Business Visa®
Lending Solutions
Electronic Services
Merchant Services
ACH Payroll Services
A ut o L o a n 28,045
Cred it C 24,3 ar
d
O
60
9,0
Lo a n s er th 88
7, 6
l
40
e Loan
n Lo a
Hom
1,759
Per s o na 10
Don Mozingo Executive Vice President Chief Lending Officer
11
B
T
2016 Conveniences
echnology
ranch Operations
4.4k
1.3k
Followers Predictions 10 years ago were that branches would soon be obsolete and yet we continue to see a slight increase in the number of transactions performed in a branch. Our teller staff processed over 1.9 million transactions over our 18 branch network marking a record high. Members have discovered the ease and convenience of mobile deposits as we processed 117,648 mobile deposits in 2016. Financial Service Representatives (FSR) are available to assist walk-in members or for those that make an appointment online through our website. While this feature is unusual in a banking environment, it is added convenience as we know our members’ time is valuable. Making an appointment limits or eliminates the wait and allows the FSR to prepare for the member’s visit. In 2016 we also expanded our footprint with the opening of Aliana Branch (pictured above) inside the new HEB located at 10161 W. Grand Pkwy South in Richmond. This branch has the latest technology for teller services which is incorporated in each new branch footprint - an Interactive Teller Machine (ITM). Lobby staff are available onsite to assist members in account opening, member questions and lending needs. We also officially established an eBranch to support online account opening and the online lending process from end to end. Apply online, close online. What could be easier?
Technology that makes interacting with the member and their finances is constantly on our radar. We find and implement solutions through integration of systems, workflow efficiencies and information security. Through our social media channels, we are able to provide another way to communicate with our members. Continue to look for us on social channels @FirstCommCU.
Online Banking Members
87,181 eStatement Members
42,179
Alerts
Mobile Deposits
117,648
We continue to evaluate our branch network and the members that use First Community Credit Union to provide the best convenience and experience for our members. Online or in person, we make a first-rate financial difference in our members’ lives!
Mobile Banking Users TJ Tijerina
12
Followers
Executive Vice President Chief Operations Officer
29,736
17,286
Rito Garza Executive Vice President Chief Information Officer
13
Youth Month
Community
#FCCUin
First Community Credit Union has long been an advocate of working with schools, chambers and charitable organizations for the purpose of giving back and making a difference. In 2016, the credit union financially supported 75 causes plus many more that received in-kind donations.
Tomb a
ll Afte r Hou rs
FCCU supported our community causes with: • a team of riders in the MS150 which raised funds for Multiple Sclerosis. The credit union underwrote the team and we collected donations from staff, members and the community in support of this cause.
50
MS 1
• our annual Summer Survival Food Drive feeding hungry families during the summer break from school. These donations are delivered to local food pantries that are in close proximity to the branch where the donations were made. Financial donations are also made to each of the pantries we serve. • Operation Stocking Stuffer in partnership with the Houston Fire Department. This program provides toys, bikes and books to children in need at Christmas. Over 9,000 children received gifts due to our members’ generosity who otherwise would have gone without at the holiday season.
uts
Sco Girl
• scholarships to deserving students to assist in the financial needs for college. • various donations to events, fairs and school associations that promoted the growth of our youth such as YMCA, youth league sports and other academic endeavours.
Cheryl McCullough Executive Vice President Chief Development Officer
Our First Community staff volunteers in numerous ways throughout the communities we serve. We are proud to be an organization that gives back and has the support of our members to be able to accomplish these goals.
ay
D eat r T le
12 Days of Christmas Winner
ac
Mir
Red Ranger Christmas P arty
Food Drive
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YMCA
Toy Drive
Scholarships
Red Nose Day
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H
ouston Texans Partnership m
a Progr O R TO Making a difference is a focus of First Community Credit Union. For the sixth year, FCCU partnered with the Houston Texans to honor ten teachers that make a difference in the classroom. These ten teachers were selected from the 390 teachers that were nominated by a student. The student wrote a short paragraph on why they felt the teacher should be recognized as going above and beyond. Our company spokesman, Houston Texans Linebacker, Brian Cushing (#56), or his teammate, Linebacker, Brian Peters (#52) surprised each of these teachers in their classroom. We will continue this program in 2017 and will begin accepting nominations in the fall.
om
eC
th s in
r
Sta
Draft Party
We also sponsored the TORO Shoots for the STAAR program by sending our friend TORO out to 50 elementary schools with his program. TORO meets with third, fourth and fifth grade students and shines a positive light on the importance of doing well on the STAAR test and some ideas on how to best prepare for the challenge. We have over 8,200 members that have the exclusive FCCU Texans Checking account and debit card. Texans Checking members are automatically entered to win autographed merchandise, home game tickets, VIP events and much more. They joined the winning Texans Checking team exclusively at First Community Credit Union.
GO TEXANS!
r e Winne m a G G I B
sro s a l
ner
s Din n a x IP Te
Stars in the Cla ssroom Banqu et
V
Training Day
ay Field D
Stars in the Classroom
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Aliana Ribbon Cutting
Aliana Ribbon Cutting
Field Day
Game Day Giveaway
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S
enior Management
V
Tricia Smith Randal Ward Nancy Trennel Velsie Borja Arthur Gordon
Accounting Lending Marketing Operations Operations
ice Presidents
B
18
Mark Palomo Matt Smith Stefanie Addis Patrick Thomas Jill Vinson Robbie Henegar Katie Rigby Michael Hosen Jon Hartman Jody Kohlmaier George Cheairs Karon McMahan
Asset Recovery Audit & Compliance Call Center Commercial Lending Consumer Lending Fraud Management Human Resources & Staff Development Indirect Lending Information Technology Product Management Real Estate Special Services
First Investment and Retirement Planning Center First Investment and Retirement Planning Center (FIRPC) Provided by First Community Credit Union, the FIRPC investment program allows our members to diversify their assets through various investment options. Many members have realized FIRPC is a program available to them as a member and it serves as an important tool to assist them with their financial strategies that ultimately impacts their future. Supported by CUNA Brokerage Services, Inc. (CBSI), these funds are separate from deposits held by First Community Credit Union.* Members may schedule a no-cost, no obligation appointment with an advisor by calling 281.856.5644. Our Financial Advisors look forward to discussing your needs with you on any of these topics: • Retirement Planning • Asset Allocation • Mutual Funds • College Funding 529 Plans
• Annuities • Stocks, Bonds, Trusts • Life, Disability or Long-Term Care Insurance
Brian Turpen, CFP® Financial Advisor
ranch Vice Presidents Alex Samoilov DeAndre Massey John Littler Andrew Meese Joy Gonzalez Julie Scott John Littler Diego Daza Taylor Borja Juan Alatorre Logan Motter Larry Pugh Kelly Fay Lana Huff Jamie Drohan Mark Vinson Chris Gagne
Aliana Alief Barker Cypress Champions Copperfield eBranch Fairfield Fry Road Katy Market Sam Houston Sienna Plantation Spring Branch Spring Market Sugar Land Technip Tomball The Woodlands
Sergio Garza Vice President, Wealth Management
*Securities sold, advisory services offered through CUNA Brokerage Services, Inc. (CBSI), member FINRA/SIPC, a registered broker/ dealer and investment advisor. CBSI is under contract with the financial institution to make securities available to members. Not NCUA/NCUSIF/FDIC insured, May Lose Value, No Financial Institution Guarantee. Not a deposit of any financial institution. CUNA Brokerage Services, Inc., is a registered broker/dealer in all fifty states of the United States of America. The CFP® certification marks are not affiliated with CUNA Brokerage Services, Inc. FR-1735423.1-0317-0419
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