Mission Statement First Community Credit Union 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-helping-people.�
#Believe
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#Together
Table of Contents Table of Contents
1
Strength of a City
2-3
Message from the CEO and the Chairman of the Board
4
Credit Committee Report and Audit Committee Report
5
Statement of Financial Condition
6
Comparative Operating Statement
7
Financial Graphs and Distribution of Loans
8
Lending and Commercial Services
9
Branch Operations and Technology
10 - 11
Community and Texans
12 - 13
Board of Directors and Executive Management
14
Credit Union Management
15
First Investment and Retirement Planning Center
16
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#Strengt Harvey. What defines a city? Is it disaster and destruction or is it the community the rallies together and refuses to let a storm with the magnitude of Harvey win? The cars totaled. Pure devastation hit Houston but as the nation watched this disaster unfold, they also saw a great spirit, perseverance and the true meaning of community. help people pay for a hotel, pay insurance deductibles or other immediate needs. In addition, we waived fees for over 5,000 people, skipped loan payments for over and begin the repair process. Overall, we helped 13,000+ families. We are proud to call ourselves Houstonians and our goal is to continue to find ways to build a
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thofaCity Strength of a City is what held Houston together during the devastation of Harvey. Three days of downpour, 30+ inches of rain, 185,000 homes lost and over 500,000 First Community Credit Union is proud to be a part of Houston. We knew we had to help and jumped into action by offering low rate storm relief loans to immediately 7,000 people and posted payroll, mobile deposits and other electronic transactions during these horrific three days. Employees stepped up to help clean out houses stronger community. We are #StrongerTogether.
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A Message from the CEO
“Strong” proved to be a pivotal word for Southeast Texas in 2017. Weather made a powerful impact on our city but Texans and, specifically, Houstonians proved that we are Houston Strong. First Community Credit Union was proud to be a vital resource during Hurricane Harvey and the out-of-character weather that played havoc on our city. Houston personified to the world the credit union philosophy of “people-helping-people” during the floods in August. You can still see it today with neighbors helping each other in the arduous rebuilding process. The restoration and rebuild will take many years but our members know they can depend on First Community Credit Union to be with them each step of the way to help them get back to normal. At First Community, we are always looking to provide the right combination of products and services our members need. They are increasingly coming to us through online and mobile channels as 24/7 access is a growing environment of choice. In 2017, we opened our Bunker Hill location and remodeled several branches to make our members in-person experience more comfortable. Strong continues to describe not only Houston but it describes First Community Credit Union too. In 2017, we saw consistent growth to $1,357 Billion in assets for an 8.70% increase over 2016. We owe our success not only to our board of directors, management team and staff but mainly our members for trusting us with their financial needs. They know we’ll be here when they need us. We look forward to 2018 being another successful year!
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A Report from the Chairman
On behalf of the Board of First Community Credit Union, we thank our members for placing their trust and confidence in us. What a historic year 2017 was for Houston as the city endured Harvey. Through it all, Houston and First Community remained strong together.
Robert Schumacher
First Community Credit Union’s membership increased to 125,229 members while assets grew by 8.70% ending the year at $1,357 Billion. Our gross loans grew 3.92%. The breakdown of our loan portfolio can be found on page 9 of this report.
Chairman of the Board Community was the theme of 2017 and FCCU truly exemplified the philosophy of “people-helping-people”. During
and after Harvey, we stepped up to help our communities in the most trying times our city has faced. First Community provided relief for over 13,000 families. Storm Relief loans, skip-a-pays, refunded fees and mortgage payment extensions are just a few ways we provided support to our community and our members. Employees of First Community also stepped up to help clean up, donate and distribute supplies through their local organizations. In addition, we donated over $100,000 to schools, charities and community organizations and continued our tradition of awarding scholarships to deserving students entering college. The Board is committed to supporting our community. We are honored to serve our fellow credit union members and we look forward to continuing to make a First-Rate difference in our members’ lives in 2018.
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Ron Downing President/CEO
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Credit Committee Report Reviewing the lending policies and practices is the core responsibility of the Credit Committee. During 2017, the credit union experienced a net 3.92% growth in our lending portfolio as rates remained very competitive across all loan types. Our loan officers reviewed 61,072 applications for auto loans, credit cards, personal loans and real estate loans. FCCU funded $366.34 Million and closed 2017 with a loan portfolio of $1,053.8 Billion.
Douglas Wilcher As a strong financial institution, we welcome our members to reach out to FCCU for the loans they Chairman, Credit Committee need to build their financial success. First Community stepped up during disasters to help members find their way again with storm relief loans at deeply discounted rates and with our Visa Rewards Credit Card with a 0% intro rate to cut the interest for the first six months. Numerous members also benefited from our skip-a-pay program that allowed them to use their funds on other expenses.
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When you have a financial need, we encourage you to reap the rewards of very competitive rates, our online application and closing process as well as peace of mind that you can trust First Community to be there for you.
Audit Committee Report 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, 2017, conforms with generally accepted accounting principles and practices.
#Strength
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).
Arlie Beckendorf Chairman, Audit Committee
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S Assets
Cash
Statement of Financial Condition
#Growth
2017
2016
$104,899,782
$33,838,684
Investment
Available for Sale Held to Maturity Other Investments Loans to Members, net
Liabilities and Members’ Equity
Accounts Payable
8,505,185
7,052,868
0
0
Accrued Liabilities
27,080,824
21,435,510
4,511,600
4,453,900
1,053,853,064
1,016,027,866
$1,239,347,395
$1,144,112,152
13,213,020
13,213,020
106,119,203
92,769,507
0
0
(1,338,598)
(1,333,750)
$117,993,625
$104,648,777
$1,357,341,020
$1,248,760,929
TOTAL LIABILITIES Members’ Equity Regular Reserves
3,468,284
2,635,301
Undivided Earnings
Other Receivables
5,044,563
4,989,216
Appropriated Undivided Earnings
Prepaid and Other Assets
8,251,750
6,384,327
Accumulated Other Comprehensive
Property and Equipment
27,725,303
26,028,109
NCUSIF Deposit
10,697,838
10,207,013
$1,357,341,020
$1,248,760,929
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$1,115,623,774
143,754,017
442,496
TOTAL ASSETS
$1,203,761,386
138,604,614
284,222
Loans
2016
Liabilities Members’ Share Accounts
Accrued Interest Receivable Investments
2017
Gain/Loss
TOTAL MEMBERS’ EQUITY TOTAL LIABILITY AND MEMBERS’ EQUITY
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Comparative Operating Statement Interest Income Interest on Loans to Members Interest on Investments and Cash Equivalents
TOTAL INTEREST INCOME 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 Other Non-interest Income
TOTAL NON-INTEREST INCOME Non-Interest Expense Compensation and Benefits Office Operating Costs Education and Promotion NCUA Premium Assessment Other Other-than-Temporary Impairment on Investments
TOTAL NON-INTEREST EXPENSE NET INCOME
2017
2016
$41,174,856 3,332,123
$37,122,386 2,717,788
44,506,979
39,840,174
5,796,822
4,550,288
38,710,157
35,289,886
5,187,000
5,250,500
$33,523,157
$30,039,386
18,852,204 3,647,622
18,308,968 3,626,347
22,499,826
21,935,315
21,816,766 18,214,379 2,642,142 0 0 0
21,313,398 17,769,732 2,375,786 0 0 0
42,673,287
41,458,916
$13,349,696
$10,515,785
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Financial Graphs Assets
Membership
2013 2014 2015 2016 2017
Gross Loans 93,907 103,122 109,294 115,415 125,229
New
Used
23.57%
Com m e r c ial
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$985.8 M $1,071.5 M $1,151.3 M $1,248.8 B $1,357.3 B
2013 2014 2015 2016 2017
29.76%
Auto 13.93%
R e a l
2013 2014 2015 2016 2017
Estate 21.77%
Other 3.21%
$553.4 M $680.0 M $798.7 M $910.0 M $1,053.8 B
UNSECURED 10.77%
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Distribution of Loans
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Lending Solutions 2017 proved to be a challenging year for many of our members and FCCU is proud to be a trusted resource when our members need loans. We were able to assist our members that were affected by Harvey by offering storm relief loans at deeply discounted rates. Additionally, we offered a 0% introduction rate on our Visa Rewards Credit Card to help alleviate the burden of interest for 6 months and give them more time to get back on their feet.
#Progress
By offering competitive rates, the ease of online applications and quick closing processes, we give our members peace of mind that their financial needs are our top priority – even during the storms of life. Below is the end of year breakdown of our portfolio by loan type: Credit Card Loans Direct Auto Loans Indirect Auto Loans Real Estate Loans Other Loans Commercial Loans
$ 58,983,798 $240,789,648 $289,761,560 $229,471,228 $ 88,301,693 $146,871,700
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Commercial and Business Services At First Community, we understand that commercial lending and account needs are different from personal financial needs. Our business services specialists take the time to learn about your business so they can connect you with the exact products and services you need to be successful. Our commercial lending and business services include financing for land and office space, retail or owner occupied space, equipment needs or debt consolidation. We also have a complete suite of business services including checking and savings accounts, business credit cards and ACH processing for direct deposit – all the tools to support your business operations. In 2017, our commercial lending portfolio increased by 9.22%, from $134.47 to $146.87 Million dollars. We are proud to be a resource for business owners in the Houston communities.
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B 10
Branch Operations So many things in our world revolve around a smart phone or other electronic devices these days. Banking is part of everyday life that can now be completed with the device you have at your fingertips. Whether depositing a check through Mobile Deposit or completing an application and opening an account online, members are using technology more and more for their banking needs. Mobile Deposits, made through the FCCU mobile app, experienced a surge with 146,536 mobile deposits made in 2017, an increase of 23.9%. Now more than ever, mobile deposits are a vital tool for members. When Harvey forced many Houstonians to evacuate their homes, our branch employees worked diligently behind the scenes to provide funds needed. Over 600 mobile deposits were posted during the three days that Harvey overstayed his welcome. Once the rain dried up, our operations team jumped in to start providing storm relief help. Over 1,200 Storm Relief Loans were funded so members could take the first step to get back to a normal life. In addition, representatives assisted 5,324 members with a request to waive fees. Our branch operation staff exemplified the philosophy of “people-helping-people� and members were beyond thankful. While technology drives much of this world, sometimes a human touch is needed. In 2017, FCCU opened our newest branch, Bunker Hill, located inside HEB at I-10 at Bunker Hill. Being an in-store location, we are able to provide extended hours for members in the Spring Branch area. Our goal is always to provide the locations and services you are looking for. What a unique year 2017 proved to be and through it all, First Community continues to be here for you, in-branch or online.
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Technology
Direct Deposit is the best way to have your paycheck deposited directly to your account. If your company does not offer direct deposit, make your deposit on-the-go with Mobile Deposits. Snap a picture of your check and submit within Mobile Banking. Mobile Deposits keep you on track even when you are onthe-go.
On-the-go banking is possible with text banking, our Mobile App, email and social media. If you need to send documents to FCCU, you can do that through a secure portal on our website. No matter what your need is, we are here for you.
Security is top of mind and technology puts debit and credit card security in your hands with the SecurLOCK Equip App. Get real-time alerts of card activity, set location based controls, be alerted to possible fraud right when it happens and more.
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Be alerted each time your card is swiped to detect fraud immediately when it happens.
Customize restrictions such as no purchases outside of the country and more.
SecurLock provides fraud text alerts when a transaction is out of the norm for you. You will receive a text showing the transaction and amount. If the transaction is correct, simply reply Y to confirm the transaction or reply N if this is fraud.
Technology allowed FCCU to communicate and assist members during the storm. 14,452 ACH deposits were processed remotely. 2,542 text messages were sent to members with closure information. Numerous members were assisted with their account through social media.
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#Convenience Lost your card? Turn it off. Found your card? Turn it back on.
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#FCCUinYOU We build community by giving back. At First Community, we believe in giving back to the communities we serve. With a big heart for education, we work with the Credit Union of the Houston Texans, to honor ten teachers that made a difference in their classroom. These ten teachers were nominated by a student explaining classroom and FCCU donated $500 back to the winning teacher’s school district for a total of $5,000 going back to schools in our communities. We will continue this that is sponsored by FCCU. This program provides test-taking tips and the best ways to prepare for the challenge of the STAAR test so students can ace it! We’re proud to support organizations throughout the Greater Houston area through charitable donations and community outreach. FCCU donated over $100,000 Fire Department, awarding scholarships for college-bound students, Children’s Miracle Network events, building financial awareness and more. Building community
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URCommunity Houston Texans and other community groups to benefit Houston teachers and schools. For the seventh year, FCCU partnered with the Houston Texans, as the Official why they felt the teacher should be recognized as going above and beyond. Houston Texans Linebacker, Brian Peters (#52), surprised each of these teachers in their program in 2018 and will begin accepting nominations in the fall. Also, our friend TORO visited 50 schools with the TORO Shoots for the STAAR program to local charities from our Food Drive benefiting local food banks, our MS 150 team, our Annual Operation: Stocking Stuffer Toy Drive-in partnership with the Houston is our goal and we will continue this mission in 2018.
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Board of Directors and Executive Management
Robert Schumacher
Sally Moseley
Jerald Till
Chairman
Vice Chairman
Secretary
Term Expires: March 2019
Term Expires: March 2018
Treasurer
Term Expires: March 2019
Term Expires: March 2018
Arlie Beckendorf
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Rob Hauck
Julie Eisenhauer
Douglas Wilcher
Director
Director
Director
Term Expires: March 2020
Term Expires: March 2020
Term Expires: March 2020
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
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Senior Management Tricia Smith Jon Hartman Randal Ward Nancy Trennel Velsie Borja Arthur Gordon
Accounting Information Technology Lending Marketing Operations Operations
Branch Vice Presidents Alex Samoilov DeAndre Massey John Littler Diego Daza Andrew Meese Kim Lemex Joy Gonzalez Julie Scott John Littler Taylor Borja Juan Alatorre Logan Motter Larry Pugh Kelly Fay Lana Huff Jamie Drohan Mark Vinson Chris Gagne
Aliana Alief Barker Cypress Bunker Hill Champions Cinco Ranch Copperfield eBranch Fairfield Katy Market Sam Houston Sienna Plantation Spring Branch Spring Market Sugar Land Technip Tomball The Woodlands
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Vice Presidents Mark Palomo Matt Smith Jennifer Barker Stefanie Addis Patrick Thomas Jill Vinson Darrell Storrs Robbie Henegar Katie Rigby Michael Hosen Amber Magee Jody Kohlmaier George Cheairs Karon McMahan
Asset Recovery Audit & Compliance BD & Project Management Call Center Commercial Lending Consumer Lending Facilities Fraud Management Human Resources & Staff Development Indirect Lending Marketing Product Management Real Estate Special Services
#Leadership 15
First Investment and Retirement Planning Center At First Community, we make available the First Investment and Retirement Planning Center as a resource for our members’ investment and insurance needs. It’s never too early to start planning for retirement, college tuition for your children or to protect your family with life insurance. Let the investment team work with you to help set your goals and structure ways for you to reach them. You can schedule a no cost, no obligation appointment with one of the financial advisors by calling 281.856.5644. The program is provided by CUNA Brokerage Services, Inc. and is separate from deposits held by First Community Credit Union.
• Retirement Planning • Asset Allocation • Mutual Funds • College Funding 529 Plans
• Annuities • Stocks, Bonds, Trusts • Life, Disability or Long-Term Care Insurance
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-2054176.1-0318-0420
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#HoustonProud
Velum
#ThankYOUHouston
Making a First-Rate financial difference in our members’ lives!