2022 Annual Report

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AnNual RepoRt

NIT

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EXCEEDING

E x P e C tA t I O N S

PuRpose StAtemeNt To empower our members so they can reach their financial goals

TABLE OF

COntEnts PG 2

CHAIRMAN’S REPORT & CEO MESSAGE

PG 6

BOARD OF DIRECTORS & EXECUTIVE MANAGEMENT

PG 3

CRE DIT COMMITTEE & AUDIT COMMITTEE REPORTS FINANCIAL GROWTH & DISTRIBUTION OF LOANS

PG 7

CREDIT UNION MANAGEMENT

PG 4

STA TEMENT OF FINANCIAL CONDITION

PG 8

FCCU IN YOUR COMMUNITY

PG 5

COMPARATIVE OPERATING STATEMENT

firs t community

RepoRt

Whether financing online, in-branch, or at a dealership, our team remains committed to our member service throughout the entire loan process. Over the year, as rates began to rise, we are proud that our rates remained competitive, supporting our members’ efforts to secure loans that fit their needs.

ASSETS

Dr.SteveN walkeR CHAI RMA N, A UD IT CO MM IT T E E

As a state-chartered credit union, FCCU has additional reviews of our lending and accounting practices by the Texas Credit Union Department (TCUD) 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.

2022

2021

2020

2022

152,145

142,875

136,616

133,785

129,910

2018 2019

2020

$1.653 B

$1.264 B

$1.128 B

2018 2019

2021

MEMBERSHIP

Loans

AUTO - NEW: 19.34% | USED: 26.06% REAL ESTATE - 31.43%

RepoRt

Based on an in-depth independent audit of the operations of First Community Credit Union, the CPA firm of Doeren Mayhew, CPAs and Advisors concluded that, in their opinion, the financial position of FCCU, the operations and cash flow for the year ending December 31, 2022, conforms with generally accepted accounting principles and practices.

GROSS LOANS

DISTRIBUTION OF

We are honored that you place your trust in us to find the loan that fits you and your family.

AUDIT COMMITTEE

$1.159 B

$2.224 B

$1.099 B

$1.792 B

$1.541 B

$1.965 B

2022

No one could have predicted our stellar year, defying odds and exceeding expectations! Loan officers reviewed 60,905 applications for auto loans, credit cards, personal loans and real estate loans. FCCU funded a recordhigh $737.50 million and closed the year with a loan portfolio of $1.65 billion, a phenomenal increase of 30.8%.

2021

CHAI RMA N, CRE D IT CO MM IT T E E

2020

Marty mIRacle

Our field of membership expansion up to the Dallas/Fort Worth area allowed us to introduce First Community to 22 new counties in Texas. Members in our new counties quickly experienced what sets First Community apart, from our competitive products to our first-rate service. Welcoming the Dallas/Fort Worth area to the First Community family is an achievement and we look forward to continuing to expand our footprint in the next year and beyond.

$1.423 B

The core responsibility of the Credit Committee is reviewing the credit union's lending policies and practices. Not knowing what the year would hold for our members and community, we remained dedicated to support our members with their lending needs.

G R o wTh

FINANCIAL

2018 2019

CREDIT COMMITTEE

COMMERCIAL - 12.78% UNSECURED - 8.42% OTHER - 1.97%

END OF YEAR BREAKDOWN OF OUR LOAN PORTFOLIO BY LOAN TYPE CREDIT CARD LOANS

$71,061,016

AUTO LOANS AUTO LEASES

$689,003,996 $61,493,293

REAL ESTATE LOANS OTHER LOANS COMMERCIAL LOANS

2022 ANNUAL REPORT | PAGE 3

$519,557,752 $100,520,089 $211,232,501

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STATEMENT OF

FInAncial ConditioN Assets CASH

2022

2021

$46,402,151

$130,213,343

INVESTMENTS AVAILABLE FOR SALE HELD TO MATURITY OTHER INVESTMENTS LOANS TO MEMBERS, NET

lIABIlities and members equity

$1,768,803,364

478,743,856

0

0

ACCOUNTS PAYABLE

19,507,548

4,126,352

12,861,000

7,729,300

ACCRUED LIABILITIES

223,909,337

17,630,134

1,656,543,452

1,262,833,468

MEMBERS’ SHARE ACCOUNTS

TOTAL LIABILITIES

$2,072,563,944 $1,790,559,850

MEMBERS’ EQUITY 531,054

REGULAR RESERVES

4,682,286

3,391,329

UNDIVIDED EARNINGS

OTHER RECEIVABLES

5,558,800

5,134,398

PREPAID AND OTHER ASSETS

18,832,250

4,380,075

APPROPRIATED UNDIVIDED EARNINGS

PROPERTY AND EQUIPMENT

57,156,323

55,630,833

NCUSIF DEPOSIT

16,729,122

15,927,115

$2,224,499,367

$1,964,514,771

TOTAL ASSETS

$1,829,147,059

405,150,528

583,455

LOANS

2021

LIABILITIES

ACCRUED INTEREST RECEIVABLE INVESTMENT

2022

ACCUMULATED OTHER COMPREHENSIVE GAIN/LOSS TOTAL MEMBERS’ EQUITY TOTAL LIABILITIES & MEMBERS' EQUITY

2022 ANNUAL REPORT | PAGE 4

0

13,213,020

198,111,780

164,632,908

0

0

-46,176,357

-3,891,007

$151,935,423

$173,954,921

$2,224,499,367

$1,964,514,771

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COMPARATIVE

o p e R a t i N g s tA t e M e n t 2022

2021

$56,941,033

$46,841,126

6.752,000

5,581,112

$63,693,033

$52,422,238

11,171,559

6,084,163

52,521,474

$46,338,075

753,829

-456,615

$51,767,645

$46,794,690

FEES & SERVICE CHARGES

26,326,549

23,205,496

OTHER NON-INTEREST INCOME

8,399,066

6,697,711

$34,725,615

$29,903,207

COMPENSATION & BENEFITS

30,802,179

29,661,338

OFFICE OPERATING COSTS

30,937,233

27,263,795

EDUCATION & PROMOTION

4,490,353

3,485,543

-2,357

-1,610,857

TOTAL NON-INTEREST EXPENSE

$66,227,408

$58,799,819

NET INCOME

$20,265,852

$17,898,078

INTEREST INCOME INTEREST ON LOANS TO MEMBERS INTEREST ON INVESTMENTS & CASH EQUIVALENTS TOTAL INTEREST INCOME INTEREST EXPENSE MEMBERS’ SHARE & SAVINGS ACCOUNTS NET INTEREST INCOME PROVISION FOR LOAN LOSSES NET INTEREST INCOME AFTER PROVISIONS FOR LOAN LOSSES NON-INTEREST INCOME

TOTAL NON-INTEREST INCOME NON-INTEREST EXPENSE

OTHER

2022 ANNUAL REPORT | PAGE 5

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BOARD OF

d i R e cto R s

& ManageMent EXECUTIVE

DOUGlAS WIlCHeR

Marty Miracle

ScoTt ClAntoN

CHAIRMAN

VICE CHAIRMAN

TREASURER

Term Expires: March 2023

Term Expires: March 2025

RobeRt ScHuMacheR BOARD MEMBER

Term Expires: March 2025

Julie eiseNhaueR

Term Expires: March 2023

SECRETARY

Term Expires: March 2024

SAlly MoseLey

Dr. sTeveN wAlKer

Term Expires: March 2024

Term Expires: March 2023

BOARD MEMBER

BOARD MEMBER

In 2022, board member compensation totaled $104,250. In 2023, board member compensation is estimated to equal $108,000.

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PRESIDENT & CHIEF EXECUTIVE OFFICER

KeitH DoMingUe

CHIEF FINANCIAL OFFICER

Rito GaRza

CHIEF INFORMATION OFFICER

RandAl WaRd

CHIEF LENDING OFFICER

2022 ANNUAL REPORT | PAGE 6

JeNnifeR KilGoRe

CHIEF OPERATIONS OFFICER

ArthUr GORdOn CHIEF RETAIL OFFICER

firs t community

CoMmuNity First Community pledged over $250,000 to the community and continued to support our local food pantries, the American Heart Association and the National Multiple Sclerosis Society, as well as numerous local organizations. We proudly supported many organizations focused on education, families, children, veterans and health awareness, helping them further their missions. Our executive team continued serving on boards at multiple community organizations. Our employees rose to the occasion, giving 226 hours of volunteer time to make a difference.

We entered into a partnership with the Houston Livestock Show and Rodeo™, expanding our footprint in the community while remaining true to our roots in education. Partnering with Spindletop Community Impact Partners, an organization dedicated to the betterment of children, we supported them throughout the year, including collaborating together for our annual holiday toy drive. In addition, we supported Cy-Hope and their efforts to provide food for school children and their families, along with their initiative to raise funds to provide scholarships for students. .

Stars in the Classroom (SITC) honors amazing teachers and the impact they have on their students every day. It is our honor to celebrate deserving teachers for their selfless dedication. Donations of $500 were made to winning teacher’s school districts in their honor. Through our annual scholarship program, we continued our tradition of awarding college scholarships to high school graduates.

Looking ahead to 2023, First Community will continue to increase our community engagement to

Ma k e an eV e n laR ge r coMmu N ity i M pa ct .

First Community Credit Union has established the First Community Cares Foundation. First Community Cares is a continuation of the rich history of supporting community needs. We care about the communities where we live and work. First Community Credit Union is inspired by the members we serve and recognize our roots in school districts, giving us a heart for education.

This commitment has grown and transformed into the First Community Cares Foundation. Giving back to benefit and engage our communities is how we demonstrate this care. We are excited to expand our reach in the community through our foundation.

2022 ANNUAL REPORT | PAGE 8

“If you want to be outstanding, stop meeting expectations & start exceeding them.”

Your financial partner for life.

NMLS #217251