60 Years of
Celebrating Milestones 2014 Annual Report Federally Insured by the NCUA
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.�
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Table of Contents Message from Chairman
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Message from President/CEO
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Statement of Financial Condition
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Comparative Operating Statement
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Financial Graphs
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Audit Committee Report
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Credit Committee Report
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60th Anniversary - History of FCCU 10 Real Estate Services
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Business Services
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Branch Operations
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Houston Area Locations
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Board of Directors and Senior Management
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Credit Union and Branch Management
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FCCU in Your Community 16 HOUSTON TeXANS Partnership
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A MESSAGE FROM THE CHAIRMAN OF THE BOARD It gives me great pleasure to report that First Community Credit Union performed well in 2014. As you will see throughout this report, we connected with our members and community leaving our stamp of excellence as we made a first-rate difference. In April 2014, we opened our 18th branch location on the campus of Technip’s U.S. Headquarters. While this is a restricted location, it serves members at multiple organizations that are housed on that campus. It is our second location to have Interactive Teller Machines as the primary source for doing teller transactions. In 2014 our membership grew to 109,294 members for an increase of 5.99%. Recognizing our great rates and financing options, many of those members also selected a loan product for a new or used vehicle, debt consolidation or to expand their lifestyle. We reviewed 70,119 applications for consumer loans. Gross loans for 2014 increased by 17.46% to end the year at $798.74 million. A complete breakdown by loan type is available in the Credit Committee Report on page 9. We are proud of our continuous positive impact on the communities we serve as this is a priority to the Board of Directors and management of the credit union. We continued our partnership with the Houston Texans as the Official Credit Union, brought financial education programs to schools and supported various charities alongside our members who gave so generously. By exercising sound business and service strategies, we will help our members navigate the life-cycle challenges we all face through the benefits of membership. We are well positioned to assist members with budgeting, buying, retiring and saving now and in the future. We look forward to the opportunities 2015 brings and stand ready to assist our members by making a first-rate financial difference in their lives.
Douglas Wilcher Chairman of the Board
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A MESSAGE FROM THE PRESIDENT AND CEO Sixty years ago the employees of Spring Branch Independent School District came together with a goal to build a safe and sound financial option for the employees. I’m proud to be a part of that history and continue to set new goals to expand our future. As our membership grows, so do our assets, which indicates that our members are taking full advantage of the products and services we have to offer. We ended 2014 with 109,294 members and assets of $1.071 billion, for an increase of 8.64% over the prior year. As Chairman Wilcher indicated, we had a stellar year in loan growth and our delinquencies remained low at 0.47%. This tells me that our members value the competitive rates we offer and that they have a strong commitment to honoring their financial obligations with FCCU. As a strong, sustainable and efficient financial institution, we are confident in our ability to meet all of our members’ financial needs. Convenience is important to all of us and we want to ensure that our members have resources to bring that convenience right to them. In 2014 we continued to improve the technology options for our members so that banking can be done anytime, anywhere. As we look ahead to 2015, we will continue to focus on people first - members, employees and our local communities. On behalf of the Board of Directors, Management and Staff, our commitment to our membership is to: • Grow responsibly, while listening and responding to member needs • Explore innovative product/service solutions to enhance their financial lives • Develop our staff and board so they can confidently serve the members We appreciate each and every member for being a part of the First Community Credit Union family and we look forward to a successful 2015!
Ron Downing President/CEO
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STATEMENT OF FINANCIAL CONDITION ASSETS
2013
Cash Investments: Available for Sale Held to Maturity
$29,108,423
$23,490,412
182,328,090 0
219,407,516 0
Other Investments
9,388,341
9,359,441
802,725,601
683,951,528
493,456 2,229,975 4,609,116 5,923,760 25,814,180 8,848,292
548,760 2,072,865 4,197,846 7,912,291 26,616,888 8,244,748
$1,071,469,235
$985,802,295
2014
2013
$970,502,014 5,601,689 7,721,427
$893,330,721 6,049,766 7,781,171
$983,825,130
$907,161,658
13,213,020 70,604,696 4,552,291 (725,902)
13,213,020 62,829,009 4,552,291 (1,953,683)
$87,644,105
$78,640,637
$1,071,469,235
$985,802,295
Loans to Members, net Accrued Interest Receivable Investments Loans Other Receivables Prepaid and Other Assets Property and Equipment NCUSIF Deposit
TOTAL ASSETS LIABILITIES AND MEMBERS’ EQUITY Liabilities Members' Share Accounts Accounts Payable Accrued Liabilities
TOTAL LIABILITIES Members' Equity Regular Reserves Undivided Earnings Appropriated Undivided Earnings Accumulated Other Comprehensive Gain/Loss
TOTAL MEMBERS' EQUITY TOTAL LIABILITIES AND MEMBERS' EQUITY 6
2014
COMPARATIVE OPERATING STATEMENT 2014
2013
$31,891,651
$28,657,001
2,873,898
3,260,596
$34,765,549
$31,917,597
3,788,994
3,996,771
30,976,549
27,920,826
3,290,128
1,661,000
$27,686,427
$26,259,826
15,358,176 3,141,581
15,054,334 2,948,342
$18,499,757
$18,002,676
20,325,535 15,476,166 2,608,796 0 0 0
19,345,675 14,643,726 2,346,743 659,580 0 0
$38,410,497
$36,995,724
$7,775,687
$7,266,778
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 Provision for Loan Losses
NET INTEREST INCOME AFTER PROVISION 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
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FINANCIAL GRAPHS ASSETS (millions) $751.7
2010
$824.7
2011
$914.4
2012
$985.8
2013
$1,071.5
2014
MEMBERSHIP 82,788
2010
86,227
2011
93,907
2012
103,122
2013
109,294
2014
GROSS LOANS (millions) $431.9
2010
$496.6
2011
$553.4
2012
$680.0
2013
$798.7
2014
DISTRIBUTION OF LOANS
New Auto 32.78%
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Used Auto 30.36%
Commercial 11.74%
Real Estate 13.78%
Unsecured 9.85%
Other Loans 1.49%
AUDIT COMMITTEE REPORT
CREDIT COMMITTEE REPORT
Based on an in-depth independent audit of the
The purpose of the Credit Committee is to ensure core lending policies and practices are followed. During 2014, the credit union experienced sound growth in our lending portfolio as our rates stayed extremely competitive across the board.
operations of First Community Credit Union, the CPA firm of Orth, Chakler, Murnane, and Company concluded that in their opinion, the financial position of FCCU, the operations and the cash flow for the year ending December 31, 2014, conforms with generally accepted accounting principles and practices. As a state chartered credit union, FCCU is additionally subject to a review by state examiners. First Community Credit Union has been found sound in both policy and practice during this annual audit. As such, FCCU continues to be Federally Insured by the National Credit Union Administration (NCUA). Sally Moseley Chairman, Audit Committee
2014 was a strong year in lending. Collectively our Loan Officers reviewed more than 70,000 lending applications; of which, we funded $369.53 million throughout 2014. At the close of business on 12/31/14, our Gross Loans stood at $798.74 million. Below is the breakdown by loan type: • • • • • •
Credit Card Loans Direct Auto Loans Indirect Auto Loans Real Estate Loans Other Loans Commercial Loans
$ 46,068,526 $ 183,408,193 $ 320,933,920 $ 110,071,473 $ 44,476,455 $ 93,776,446
When members are in need of financing, we encourage them to think of their credit union first. Competitive rates, an online application and closing process, as well as, quick closings are great reasons to turn to FCCU whenever the need arises in 2015. Bob Schumacher Chairman, Credit Committee
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OUR 60TH ANNIVERSARY THE HISTORY OF FCCU
1954 Spring Branch School District Employees Credit Union Chartered
1990 FCCU introduces Credit Cards
1984 FCCU becomes first CU in the Greater Houston Area to introduce ATMs
2009 Mobile Account Access introduced
2011 Texans Partnership
FCC
1980 Checking Accounts introduced 1983 Charter Expansion to include Alief ISD Employees and Families
obil
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2013 Montgomery County Expansion 2001 Fort Bend County Expansion
1988 FCCU granted Community Charter Expansion to the Greater Houston Area
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UM
2014 FCCU 60th Anniversary
2011 Apple app introduced
Thank you for your support towards our success!
REAL ESTATE SERVICES
COMMERCIAL SERVICES
There were 75,319 single-family home closings in Houston in 2014 according to Houston Association of REALTORS (HAR).” This record year led to 3,104 home loan requests at FCCU of which 1,733 were approved.
Small businesses are a growing sector of our financial portfolio. We have all recognized how small businesses help grow the U.S. economy and FCCU is pleased to partner with more than 3,200 small businesses around the Greater Houston Area.
First Community Credit Union was pleased to help many members achieve home ownership with very competitive rates and experienced lenders to guide them through the process. Real Estate Services funded $61.32 million in real estate loans in 2014. This represents an increase in the overall real estate loan portfolio of 39.91% to close the year at $80.83 million. The home equity and home improvement loans were also up in 2014 by 14.21% as members used their equity as a financial solution. From The Woodlands to Sienna Plantation, we provide First Mortgage, Home Equity Loans, Home Equity Lines of Credit, Home Improvement Loans, Jumbo and Construction loans. Plus, we provide express service to close many real estate loans in less than 30 days.
During 2014, we funded $29.28 million in new business loans. This brought the total business loan portfolio to $93.78 million at the close of 2014. This represents an increase of 3.4% for the business loan portfolio. In 2015, we are expanding our business services with a business online banking platform that incorporates payroll services, wires and other features at a very affordable cost. We encourage business owners to think of FCCU as their small business banker for all their financial needs. Come, let’s grow and impact our communities together.
Mario Goncalves Vice President, Commercial Lending
Starting the conversation is easy. Our online lending application, found at FCCU.org/HomeLoans, is the first step in getting setup with a professional lender to answer all your questions. Steven O’Brien Vice President, Real Estate Services 11
BRANCH OPERATIONS Serving the members is at the heart of branch operations. On any given day hundreds of transactions are processed, loans are booked and questions are answered by the front line staff - our ambassadors stationed in the hub of the credit union. The tellers processed 1.83 million in person financial transactions and 50,188 mobile deposits in 2014. Financial Service Representatives assisted members with new memberships and the opening of 8,575 new checking accounts. These same FSRs also serviced our members various lending needs. The Member Service Representatives answered general questions as well as provides specific account needs such as issuing a new debit or credit card, change of address or wire transfers. The work of this staff reached beyond the walls and into the community as they accepted financial donations for charity, hosted the annual candy sale to support the credit union movement and collected the non-perishable goods for our annual food drive. As you can see branches continue to be a hub of activity that support members in every aspect. While many members prefer to do all transactions without stepping foot into a branch location, it does bring peace of mind knowing our branch staff is ready to assist with any financial need.
Velsie Borja Senior Vice President, Operations
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CONVENIENT HOUSTON AREA LOCATIONS Spring Branch
Cinco Ranch
9100 Westview Houston, TX 77055
23120 Cinco Ranch Blvd. Katy, TX 77494
3200 S. Dairy Ashford Houston, TX 77082
6711 S. Fry Rd. Katy, TX 77494
15260 FM 529 Houston, TX 77095
9125 W. Sam Houston Pkwy. N. Houston, TX 77064
10300 Louetta, Suite 100 Houston, TX 77070
24224 Northwest Freeway Cypress, TX 77429
28850 Tomball Parkway Tomball, TX 77375
12222 Cypress N. Houston Houston, TX 77070
3400 Hwy. 6 South Sugar Land, TX 77478
1705 Fry Road Katy, TX 77449
Alief
Copperfield - Corporate Office
Champions
Tomball
Sugar Land
Grand Parkway - HEB
25675 Nelson Way Katy, TX 77494
Spring Market - HEB 2121 FM 2920 Spring, TX 77388
Sam Houston - Kroger
Barker Cypress - HEB
Jones North - Kroger
Fry Road - Kroger
Katy Market - HEB
Sienna Plantation - HEB 8900 Hwy. 6 Missouri City, TX 77459
Fairfield - HEB
28550 Northwest Freeway Cypress, TX 77433
The Woodlands - HEB 3601 FM 1488 The Woodlands, TX 77384
Technip
11740 Katy Freeway Houston, TX 77079
ACCESS WHEREVER YOU ARE
www.FCCU.org
Mobile Banking
55,000+ FREE ATMs
Nationwide Network
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BOARD OF DIRECTORS
Douglas Wilcher
Sally Moseley
Chairman
Vice Chairman
Rob Hauck
Term Expires: March 2015
Term Expires: March 2017
Secretary
Term Expires: March 2015
Term Expires: March 2017
Julie Eisenhauer
Arlie Beckendorf
Robert Schumacher
Director
Director
Term Expires: March 2017
Treasurer
Jerald Till Director
Term Expires: March 2016
Term Expires: March 2016
SENIOR MANAGEMENT
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Ron Downing
Cheryl McCullough
Keith Domingue
Rito Garza
TJ Tijerina
Don Mozingo
President/Chief Executive Officer
EVP/Chief Development Officer
EVP/Chief Financial Officer
EVP/Chief Information Officer
EVP/Chief Operating Officer
EVP/Chief Lending Officer
CREDIT UNION MANAGEMENT Sr. Sr. Sr. Sr.
Vice Vice Vice Vice
Vice Vice Vice Vice Vice Vice Vice Vice Vice Vice Vice Vice
President President President President
President President President President President President President President President President President President
– – – – – – – – – – – –
– – – –
Accounting Lending Marketing & Business Development Operations
Audit & Compliance Asset Recovery Business Development Call Center Commercial Lending Consumer Lending Human Resources Indirect Lending Information Technology Real Estate Special Services Staff Development
Tricia Smith Randal Ward Nancy Trennel Velsie Borja Matt Smith Mark Palomo Melinda Storrs Stefanie Addis Mario Goncalves Jill Vinson Katie Rigby Michael Hosen Jon Hartman Steven O’Brien Karon McMahan Jody Kohlmaier
BRANCH MANAGEMENT Vice Vice Vice Vice Vice Vice Vice Vice Vice Vice Vice Vice Vice Vice Vice Vice Vice Vice Vice
President President President President President President President President President President President President President President President President President President President
– – – – – – – – – – – – – – – – – – –
Alief Barker Cypress Champions Cinco Ranch Copperfield Fry Road Fairfield Jones North Grand Parkway Katy Market Sam Houston Sienna Plantation Spring Branch Spring Market Sugar Land Technip Tomball The Woodlands Branch Operations/Float Team
Joy Gonzales Melissa Walls Jamie Drohan Eric Peterson Arthur Gordon Kim Lemex Andrew Meese Andrew Meese Alex Barrero Alex Samoilov Ed Dobranich DeAndre Massey Larry Pugh Kelly Fay Lana Huff John Littler Mark Vinson Chris Gagne Yesi Gonzales
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#FCCUinYOURcommunity Community is more than just a part of our name. It’s a part of who we are and what we do to give back. During 2014 the FCCU staff and members participated in the following events to raise awareness, support a charity or bring a smile: • Muscular Dystrophy Association Walk • Annual Summer Survival Food Drive supporting community food banks • Candy Sale to support the efforts of the Cornerstone Credit Union League with Credit Union Advocacy • Pink on Parade to raise funds for Breast Cancer Awareness • Operation Stocking Stuffer, in partnership with the Houston Fire Department, to provide toys for needy children at Christmas Beyond these major events, we connected with many schools in the districts we serve with donations and financial literacy, supported our local Chambers of Commerce and answered many other requests for assistance at various community organizations. We brought shred trucks to each of our traditional branches during 2014 to provide a safe method for deposing of personal documents and also to help with recycle initiatives. Throughout all of this, we want our local communities to think of us as a partner for them as well as for the small businesses they serve.
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HOUSTON TeXANS
PARTNERSHIP
Partnering with a like-minded organization like the Houston Texans has been good for the members and good for the community. Our joint efforts to make a difference in education and honor the teachers that go above and beyond for their students is at the center of this partnership. We honored 10 teachers during the 2014 football season through our Stars in the Classroom Program. What a delight to have more entries than ever before and to see how many teachers are stepping up with passion for education and their students. It was a difficult year to choose simply because we had so many great entries. Our First Community Credit Union Spokesman, Linebacker, Brian Cushing (#56) and his teammates DeVier Posey, Jerrell Powe and Tim Jamison visited the classrooms of our winning teachers. These visits with an NFL Football Player bring fun and an important message to the students and teachers they honor. Additionally, TORO headed out to 50 elementary schools sponsored by FCCU to bring some fun to third, fourth and fifth graders and shine a spotlight on the importance of the STAAR test. These programs will continue in 2015. 1,128 new Texans Checking members were added in 2014 to not only reap the rewards of membership but automatically get entered to win one of the weekly prizes we give away. Autographed footballs and jerseys, experiential events such as the VIP tent at training camp and trips to away games including the BIG game all are met with the same response, “I’ve never won anything in my life!” We will be cheering on the Houston Texans in 2015 and we hope you will join the 6,000+ other fans that already have Texans Checking as a part of their financial plans.
GO TEXANS!
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