2023 Annual Report

2 0 ANNUA L 2 3 REP ORT

E M P O W E R

P U R P O S E

S T A T E M E N T

To empower our members so they can achieve their financial goals.

2 Chairman’s Report & CEO Message Committee & Audit Committee Reports 3 Credit Financial Growth & Distribution of Loans

TABLE O F

CONTENTS

4 Statement of Financial Condition 5 Comparative Operating Statement 6 Board of Directors & Executive Management 7 Credit Union Management 8 FCCU In Your Community

A REPORT FROM THE CHAIRMAN

CREDIT COMMITTEE REPORT

Last year presented us with many great accomplishments and challenges alike. While First Community was triumphant in navigating the ebbs and flows throughout the year, it is our members who inspire and keep us motivated to exceed our goals.

The vital responsibility of the Credit Committee is to review the credit union’s lending policies and practices.

In 2023, we continued to provide first-rate service and competitive lending products to our members across the Houston and Dallas/Fort Worth areas. Whether you’re financing online, in-branch or at a dealership, our team remains committed to exhibiting exceptional member service throughout every step of the loan process. We look forward to the growth ahead as we continue to expand our footprint in the coming years.

Marty Miracle

Chairman, Credit Committee

On behalf of the First Community Board of Directors, we thank our members for trusting us with their finances and allowing us to empower them to achieve their financial goals. We remain committed to supporting our members and community while ensuring we remain financially sound today and beyond.

We are proud that our rates continue to remain competitive and support our members’ efforts to secure loans that fit their needs through every life stage.

AUDIT COMMITTEE REPORT

A REPORT FROM THE CEO

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, 2023, conforms with generally accepted accounting principles and practices.

As we approach 70 years of service, First Community continues to focus on empowering the families, individuals, and communities we serve each day. In 2023, we experienced exceptional growth and remained steadfast in our commitment to helping members achieve their financial goals.

Dr. Steven Walker

Chairman, Audit Committee

Our leadership team strived to maintain low lending rates while increasing deposit rates in a constantly fluctuating market.

We focused on maximizing members’ gains, enhancing our technologies and digital services, forging new partnerships and continuing to nurture community relationships.

In 2023, we welcomed three new offerings to better serve our members. We introduced RenoFi to help streamline the home renovation process. Our Trust and Will product provides our members peace of mind while making future-planning hassle-free.

Lastly, Retirement Simplified, a retirement-planning resource, shows members where they stand as they prepare for retirement.

Through various charitable endeavors, First Community continues to be an impactful organization in our community and we are honored to serve as your financial institution. I thank our members for trusting First Community with their finances. As your financial partner for life, our mission is to empower our members with the tools and opportunities needed to build wealth and stability for the future. I also want to thank our board of directors, as well as executive leadership, for their unwavering commitment to our members and am excited about our 2024 initiatives.

ASSETS

First Community experienced a banner year having assisted 9,732 members obtain the resources needed to purchase a vehicle or supplement their income with a personal loan. In addition, $157 million was funded in mortgage loans, helping members become homeowners. We ended the year with 158,593 members and reached $2.507 billion in assets, further illustrating our ongoing strength as your financial institution. In addition, as of December 31st, United Savers Trust Credit Union merged into First Community.

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.

DISTRIBUTION OF LOANS

FINANCIAL GROWTH 2019 2020

$1.541 B

2021

OTHER - 5.03%

$2.507 B

END OF YEAR BREAKDOWN OF OUR LOAN PORTFOLIO BY LOAN TYPE 133,785

2020

136,616

2023

UNSECURED - 4.13%

$2.224 B

2019

2022

REAL ESTATE - 30.58% COMMERCIAL - 12.14%

$1.965 B

2022

2021

AUTO - NEW: 20.65% | USED: 27.47%

$1.792 B

2023

MEMBERSHIP

TJ Tijerina

President/CEO

With increasing interest rates, inflation, market uncertainty and more, families across the nation faced challenging times. Through it all, our support and dedication to helping our members navigate these turbulent times did not falter. We are grateful for the outstanding First Community team and their continuous demonstration of resilience and concern as they exceeded our members’ expectations.

Always expecting the unexpected, we held strong in our dedication to supporting our members with their lending needs despite market and rate fluctuations. As a result, we experienced an impressive year that allowed us to provide the needed funds to improve the lives of our members and their families. Loan officers reviewed 90,020 applications for auto loans, credit cards, personal loans and real estate loans. Additionally, we funded a new record-high of $696.01 million in loans. We concluded the year with a loan portfolio of $1.944 billion, a remarkable increase of 17.64%.

142,875 152,145 158,593

GROSS LOANS

Doug Wilcher

Chairman of the Board

Founded upon the principle of “people helping people,” First Community did just that in 2023. From increasing our reach in the community through partnerships such as the Houston Livestock Show and Rodeo™, to supporting families, children, education initiatives, veterans and many more charitable organizations, community is and will always hold the utmost importance to our executive team and staff.

2019 2020 2021

2022

2023

$1.159 B $1.128 B $1.264 B $1.653 B $1.944 B

CREDIT CARD LOANS

$80,312,674

AUTO LOANS AUTO LEASES

$859,113,153 $76,504,420

REAL ESTATE LOANS OTHER LOANS COMMERCIAL LOANS

$594,592,449 $97,735,043 $236,143,952

FIRST COMMUNITY CREDIT UNION | 2023 ANNUAL REPORT | PG 3

FIRST COMMUNITY CREDIT UNION | 2023 ANNUAL REPORT | PG 2

In 2023, membership increased to 158,593 and assets grew by 12.74% to end the year at $2.507 billion. With the help of our dedicated leadership team, lending and deposit rates remained competitive. As a result, we ended the year at $1.944 billion in lending, an increase of 17.64%. View the breakdown of our loan portfolio on page 3.

STAT E M E N T O F

C O M PA R AT I V E

ASSETS Cash

2023

$60,584,367

2022

$46,402,150

Available for Sale

364,518,953

405,150,528

Held to maturity

0

0

16,829,100

12,861,000

1,940,245,088

1,656,543,452

Loans to Members, net

2022

$1,926,801,757

$1,829,147,059

Accounts Payable

20,827,281

19,507,548

Accrued Liabilities

395,077,473

223,909,337

$2,342,706,511

$2,072,563,944

Members’ Share Accounts

Total Liabilities

558,081

583,455

2023

2022

Interest on Loans to Members

$88,110,321

$56,941,033

Interest on Investments & Cash Equivalents

21,072,964

6.752,000

$109,183,285

$63,693,033

Interest Income

Total Interest Income Interest Expense Borrowed Funds

21,802,609

Members’ Share & Savings Accounts

28,677,624

11,171,559

$58,703,052

$52,521,474

7,982,417

753,829

$50,720,635

$51,767,645

Fees & Service Charges

26,683,926

26,326,549

Other Non-Interest Income

7,614,632

8,399,066

$34,298,558

$34,725,615

Compensation & Benefits

33,150,893

30,802,179

Net Interest Income Provision for Loan Losses

Members’ Equity

Accrued Interest Receivable Investment

2023

Liabilities

Investments

Other investments

LIABILITIES & MEMBERS' EQUITY

O P E R AT I N G S TAT E M E N T

Undivided Earnings

203,191,920

198,111,780

Accumulated Other Comprehensive Gain/Loss

-37,913,650

-46,176,357

$165,278,270

$151,935,423

$2,507,984,781

$2,224,499,367

Net Interest Income After Provisions for Loan Losses Non-Interest Income

7,046,405

4,682,286

Other Receivables

6,591,903

5,558,800

Prepaid and Other Assets

16,127,208

18,832,250

Property and Equipment

78,288,532

57,156,323

NCUSIF Deposit

17,195,144

16,729,122

Office Operating Costs

35,527,766

30,937,233

TOTAL ASSETS

$2,507,984,781

$2,224,499,367

Education & Promotion

4,543,059

4,490,353

-31,542

-2,357

Total Non-Interest Expense

$73,190,176

$66,227,408

NET INCOME

$11,829,017

$20,265,852

Loans

Total Members’ Equity TOTAL LIABILITIES & MEMBERS' EQUITY

Total Non-Interest Income Non-Interest Expense

Other

FIRST COMMUNITY CREDIT UNION | 2023 ANNUAL REPORT | PG 5

FIRST COMMUNITY CREDIT UNION | 2023 ANNUAL REPORT | PG 4

FINANCIAL CONDITION

BOARD OF

DIRECTORS

AND

EXECUTIVE

SENIOR

MANAGEMENT

MANAGEMENT

TRICIA SMITH

ACCOUNTING

LARRY HOOK

COMMERCIAL LENDING

ALEX SAMOILOV

AMBER MAGEE

DIRECTOR OF MARKETING

VELSIE BORJA

FIRST COMMUNITY CREDIT UNION | 2023 ANNUAL REPORT | PG 6

Doug Wilcher

Marty Miracle

Dr. Steven Walker

Sally Moseley

Term Expires: March 2026

Term Expires: March 2025

Term Expires: March 2026

Term Expires: March 2024

Chairman of the Board

Vice Chairman

Treasurer

Julie Eisenhauer

Term Expires: March 2025

Term Expires: March 2026

Term Expires: March 2024

MARK PALOMO

ASSET RECOVERY

CHRIS NICHOLS

CALL CENTER

BRANDY ARIZA

FINANCIAL ADVISOR

CAREY RIVERA

COMMERCIAL LENDING

BRIAN TURPEN

FINANCIAL ADVISOR

CHRISTOPHER REILLY

FINANCIAL ADVISOR

ROBBIE HENEGAR

FRAUD MANAGEMENT

COMPLIANCE CONSUMER LENDING

President & Chief Executive Officer

Chief Financial Officer

Chief Information Security Officer

Randal Ward Chief Lending Officer

Jennifer Kilgore Chief Operations Officer

Arthur Gordon Chief Retail Officer

FACILITIES & CONSTRUCTION MANAGEMENT

JENNY LAU

HUMAN RESOURCES

INTERNAL AUDIT

JESSE ROCHA

INDIRECT LENDING

BRYAN PERKOLA ANGELA MCKEOWN

INFORMATION SECURITY MARKETING

STEPHEN MARTIN

NETWORK & INFRASTRUCTURE

JODY KOHLMAIER

PRODUCT MANAGEMENT

RICARDO BAEZA

REAL ESTATE OPERATIONS & SERVICING

DERIK WILCOX

REAL ESTATE PRODUCTION & SYSTEMS

KARON MCMAHAN ANDREW MEESE

SPECIAL SERVICES STAFF DEVELOPMENT

BRANCH VICE

PRESIDENTS DENISE FARNON

ALIANA

DOROTEO ROMAN

COPPERFIELD

MARCELO SAUCEDA

MORTON RANCH

EVERETT DONEGAN

ALIEF

DEANDRE MASSEY

EBRANCH

MATTHEW STATON

SAM HOUSTON

ELIZABETH POPOWITZ

THE WOODLANDS

BARKER CYPRESS

EVAN CARMONA

FAIRFIELD

DENISE FARNON

SIENNA

NICHOLAS OSBORNE

WESTPARK

DANIEL FERNANDEZ

BUNKER HILL

JAMIE DROHAN

FLOATING BRANCH

LOGAN MOTTER

CHAMPIONS

ALBERT COOK

CINCO RANCH

EVAN CARMONA

Rito Garza

DARRELL STORRS

DIRECTOR OF

KIM LEMEX

Keith Domingue

ENTERPRISE RISK MANAGEMENT

ACCOUNTING

Board Member

In 2023, board member compensation totaled $103,000. In 2024, board member compensation is estimated to equal $108,000.

TJ Tijerina

STEVE GREGG

HINA DARVESH

AMBER PIERCE

Board Member

REAL ESTATE

PRESIDENTS

JILL VINSON

Scott Clanton

RETAIL BRANCH OPERATIONS

VICE

MARIBETH WAYNE

Board Member

OPERATIONS

INFORMATION TECHNOLOGY

Secretary

Robert Schumacher

GEORGE CHEAIRS

GENERAL COUNSEL

LENDING

Sravan Vinjamuri Chief Technology Officer

Katie Rigby

Chief Human Resources Officer

CHRIS GAGNE DANIEL FERNANDEZ

TOMBALL

OLIVER LEE

SPRING BRANCH

VERONICA VILLALBA

USTCU

MANAGER

MATTHEW STATON

SPRING MARKET

VERONICA VILLALBA

99N

ITM

JOHN HARYANTO

SUGAR LAND

KATY MARKET

Notable Changes in Management: EVP/CIO transitioned to EVP/CISO. EVP/CTO was hired. SVP, Human Resources was promoted to EVP/CHRO. SVP, Information Technology resigned and a new SVP, Information Technology was hired. VP, Staff Development retired and AVP, Staff Development was promoted to VP, Staff Development. VP, Accounting was hired. VP, Marketing was hired. VP, Financial Advisor was hired. VP, Audit transitioned to VP, Director of Internal Audit. VP, Technip transitioned to VP, Floating Branch Manager. AVP, Human Resources was promoted to VP, Human Resources. Branch AVP was promoted to Branch VP. Two Branch VPs transitioned to other branches. Branch VP transitioned to AVP.

FIRST COMMUNITY CREDIT UNION | 2023 ANNUAL REPORT | PG 7

LANCE MORGAN WALTER WILKERSON

LEE STRICKHOUSER

FCCU IN YOUR

FIRST COMMUNITY CREDIT UNION | 2023 ANNUAL REPORT | PG 8

COMMUNITY In 2023, First Community pledged more than $140,000 to the community and continued to support numerous local school districts and organizations to provide educational support, empower families, children and all community members to thrive. Our executive team continued serving on boards at multiple community organizations, and our employees volunteered 331 hours of their time to make a difference.

We were thrilled to continue our partnership with the Houston Livestock Show and Rodeo™, Spindletop Community Impact Partners, the American Heart Association and more, while increasing our reach in the community. As always, First Community takes great pride in remaining true to our roots in education by supporting local schools and students in our community. Our Stars in the Classroom (SITC) program is a great example of that as its core focus is to honor teachers who go above and beyond to make an impact on their students’ lives through selfless dedication. In honor of each winning teacher, a $500 donation was awarded to their respective school district.

Helping people is at the core of who we are and what we do at First Community, and we look forward to

GR O WIN G O U R EF F ORT S EAC H PA SSIN G Y E A R AND BEYOND.

First Community Cares Foundation, established by First Community Credit Union, was introduced in 2022 and has continued to grow and thrive since its founding. In 2023, the Foundation pledged over $190,000 to organizations focused on education, families, children, veterans and health awareness, helping them amplify their missions. Providing resources to help high school graduates further their education through our scholarship program is a staple and we proudly awarded seven students a scholarship.

Through supporting various charitable organizations, we made a difference in many families, children, students, veterans and more providing the resources needed to help elevate them further.

Your financial partner for life.

NMLS #217251