FIRS T COMM U N I YT
E x P e C t A t IONS
AnNualRepoRt 2022
EXCEEDING
PuRpose StAtemeNt
To empower our members so they can reach their financial goals
TABLE OF CO ntEnts
CHAIRMAN’S REPORT & CEO MESSAGE
BOARD OF DIRECTORS & EXECUTIVE MANAGEMENT
CREDIT COMMITTEE & AUDIT COMMITTEE REPORTS
FINANCIAL GROWTH & DISTRIBUTION OF LOANS
CREDIT UNION MANAGEMENT
STATEMENT OF FINANCIAL CONDITION
FCCU IN YOUR COMMUNITY
COMPARATIVE OPERATING STATEMENT
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PG7 PG8 PG3 PG4 PG5
CREDIT COMMITTEE RepoRt FINANCIAL GRowTh
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.
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.
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%.
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.
We are honored that you place your trust in us to find the loan that fits you and your family.
AUDIT COMMITTEE 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.
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.
ASSETS
GROSS LOANS
DISTRIBUTION OF Loans
AUTO - NEW: 19.34% | USED: 26.06%
REAL ESTATE - 31.43%
COMMERCIAL - 12.78%
UNSECURED - 8.42%
OTHER - 1.97%
firs t community 2022 ANNUAL REPORT | PAGE 3
Marty mIRacle CHAIRMAN, CREDIT COMMITTEE
Dr . SteveN walkeR CHAIRMAN, AUDIT COMMITTEE
2018 2018 2018 2019 2019 2019 2020 2020 2020 2021 2021 2021 2022 2022 2022 $1.423 B $1.541 B $1.792 B $1.965 B $2.224 B
$1.099 B $1.159 B $1.128 B $1.264 B $1.653 B 152,145
129,910 133,785 136,616 142,875
MEMBERSHIP
CREDIT CARD LOANS $689,003,996 AUTO LEASES AUTO LOANS REAL ESTATE LOANS OTHER LOANS COMMERCIAL LOANS $61,493,293 $71,061,016 $519,557,752 $100,520,089 $211,232,501
END OF YEAR BREAKDOWN OF OUR LOAN PORTFOLIO BY LOAN TYPE
STATEMENT OF FInAncial ConditioN
Assets 2022 2021 CASH $46,402,151 $130,213,343 INVESTMENTS AVAILABLE FOR SALE 405,150,528 478,743,856 HELD TO MATURITY 0 0 OTHER INVESTMENTS 12,861,000 7,729,300 LOANS TO MEMBERS, NET 1,656,543,452 1,262,833,468 ACCRUED INTEREST RECEIVABLE INVESTMENT 583,455 531,054 LOANS 4,682,286 3,391,329 OTHER RECEIVABLES 5,558,800 5,134,398 PREPAID AND OTHER ASSETS 18,832,250 4,380,075 PROPERTY AND EQUIPMENT 57,156,323 55,630,833 NCUSIF DEPOSIT 16,729,122 15,927,115 TOTAL ASSETS $2,224,499,367 $1,964,514,771 lIABIlities and members equity 2022 2021 LIABILITIES MEMBERS’ SHARE ACCOUNTS $1,829,147,059 $1,768,803,364 ACCOUNTS PAYABLE 19,507,548 4,126,352 ACCRUED LIABILITIES 223,909,337 17,630,134 TOTAL LIABILITIES $2,072,563,944 $1,790,559,850 MEMBERS’ EQUITY REGULAR RESERVES 0 13,213,020 UNDIVIDED EARNINGS 198,111,780 164,632,908 APPROPRIATED UNDIVIDED EARNINGS 0 0 ACCUMULATED OTHER COMPREHENSIVE GAIN/LOSS -46,176,357 -3,891,007 TOTAL MEMBERS’ EQUITY $151,935,423 $173,954,921 TOTAL LIABILITIES & MEMBERS' EQUITY $2,224,499,367 $1,964,514,771 firs t community 2022 ANNUAL REPORT | PAGE 4
COMPARATIVE opeRatiNg stAteMent 2022 2021
INTEREST INCOME INTEREST ON LOANS TO MEMBERS $56,941,033 $46,841,126 INTEREST ON INVESTMENTS & CASH EQUIVALENTS 6.752,000 5,581,112 TOTAL INTEREST INCOME $63,693,033 $52,422,238 INTEREST EXPENSE MEMBERS’ SHARE & SAVINGS ACCOUNTS 11,171,559 6,084,163 NET INTEREST INCOME 52,521,474 $46,338,075 PROVISION FOR LOAN LOSSES 753,829 -456,615 NET INTEREST INCOME AFTER PROVISIONS FOR LOAN LOSSES $51,767,645 $46,794,690 NON-INTEREST INCOME FEES & SERVICE CHARGES 26,326,549 23,205,496 OTHER NON-INTEREST INCOME 8,399,066 6,697,711 TOTAL NON-INTEREST INCOME $34,725,615 $29,903,207 NON-INTEREST EXPENSE 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 OTHER -2,357 -1,610,857 TOTAL NON-INTEREST EXPENSE $66,227,408 $58,799,819 NET INCOME $20,265,852 $17,898,078 firs t community 2022 ANNUAL REPORT | PAGE 5
BOARD OF diRectoRs EXECUTIVE ManageMent &
DOUGlAS WIlCHeR Marty Miracle
CHAIRMAN
Term Expires: March 2023
ScoTt ClAntoN Julie eiseNhaueR
VICE CHAIRMAN
Term Expires: March 2025
TREASURER
Term Expires: March 2023
SECRETARY
Term Expires: March 2024
RobeRt ScHuMacheR
BOARD MEMBER
Term Expires: March 2025
BOARD MEMBER
Term Expires: March 2024
BOARD MEMBER
Term Expires: March 2023
In 2022, board member compensation totaled $104,250. In 2023, board member compensation is estimated to equal $108,000.
tj tijeRina KeitH DoMingUe Rito GaRza RandAl WaRd
PRESIDENT & CHIEF EXECUTIVE OFFICER
CHIEF FINANCIAL OFFICER CHIEF INFORMATION OFFICER
CHIEF LENDING OFFICER
JeNnifeR KilGoRe ArthUr GORdOn
CHIEF OPERATIONS OFFICER
CHIEF RETAIL OFFICER
Dr. sTeveN wAlKer SAlly MoseLeyfirs t community 2022 ANNUAL REPORT | PAGE 6
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.
Make an eVen laRger coMmuNity iMpact .
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.
firs t community 2022 ANNUAL REPORT | PAGE 8
Looking ahead to 2023, First Community will continue to increase our community engagement to
“
If you want to be outstanding, stop meeting expectations & start exceeding them.”
Your financial partner for life.
NMLS #217251
