FCCU 2024 Annual Report_web

2024 ANNUAL REPORT

TABLE OF CONTENTS

1 2024 Round Up & Chairman’s Report 2 A Message from the CEO 3 Financial Growth & Distribution of Loans Credit & Audit Committee Reports

4

First Community Cares Foundation

5

Community Report

6

Statement of Financial Condition

7

Comparative Operating Statement

8

Board of Directors & Executive Management

CHAIRMAN’S REPORT While 2024 was a year of growth and technological advancement for First Community, our focus on the credit union’s financial success always remained our main goal. The goals we achieved Marty Miracle this year would not have been Chairman of the Board possible without our members who remind us of our why.

We continuously strive to enhance the member experience through technological improvements as our members’ needs grow and evolve. This year we took a monumental step with a major technology upgrade conducted in September.

This technological enhancement enables First Community to serve our members more efficiently today and in the future.

In 2024, membership increased to 170,139 and assets grew by 2.2%, ending the year at $2.56 billion.

Our leadership team worked hard to ensure lending and deposit rates remained competitive. With that, we were able to end the year at $1.952 billion in lending, an increase of 0.76%. View the breakdown of our loan portfolio on page 3.

From the First Community Board of Directors, we thank our members for trusting us to empower them to achieve their financial goals. We will remain steadfast in our commitment to our community, our staff and our members, while ensuring we continue to be financially sound.

2024 ROUND UP

70TH ANNIVERSARY

TECHNOLOGY UPGRADE

BEST OF THE BEST CREDIT UNION IN HOUSTON

NEW - RESEARCH FOREST LOCATION OPENS

$38,780,364 DIVIDENDS PAID

FIRST COMMUNITY CREDIT UNION | 2024 ANNUAL REPORT | PG 1

A MESSAGE FROM THE CEO Through strength and perseverance, First Community Credit Union has served its community for 70 years. This remarkable milestone would not have been possible without the dedication of those who came before and the members we continue to serve. Working for our members has been a great passion, not just for me, but for the many employees over the years and the perseverance has paid dividends. This credit union has grown to $2.56 billion in assets with over 170,000 members across Texas. We continue to enhance our offerings and grow along with our membership. We are with you on this journey.

Throughout 2024, we remained resilient, prioritizing our members, and delivering exceptional member service. 2024 brought many opportunities for growth along the way, and as we reflect, we are proud of all we accomplished. We President/CEO continued our commitment to our members success by staying ahead of the curve in advancing technologies and consistently providing high touch personalized service while ensuring the safety and security of your finances as our top priority.

TJ Tijerina

In 2024, we were voted Best Credit Union for the second year in a row by the Houston Chronicle. We continued our ongoing partnership with the Houston Livestock Show and Rodeo™ as the Official Carnival Sponsor and are proud to be the first credit union in Texas to complete a securitization. We were also proud to support the Southern Texas Region Junior PGA program, a truly unique partnership that will benefit many.

We transitioned the in-store location in The Woodlands to a new free-standing branch location, Research Forest. Through our enhanced location, this state-of-the-art branch allows us to continue providing top-notch financial services in this growing community.

We concluded Q3 with a comprehensive technology upgrade that enhanced the banking experience for both members and our staff.

While upgrading and improving our systems was a demanding feat, we persevered to ensure a seamless transition for all. Our project team spent thousands of hours going above and beyond their normal duties during this time, and we are thankful for their hard work and dedication. As your financial needs grow and evolve, this project ensures our technological structure continues to exceed your expectations now and in the future.

Our team showed an unwavering dedication to our core values and our “people helping people” spirit supporting our members from the Greater Houston to DFW areas. I want to thank each First Community team member for being part of our success; it takes us all working together to provide exceptional service to our members and make a difference in their lives.

As we deepen our roots in the state of Texas, and in the communities we serve, we continue to build on the 70 years of growth and success. Together, we empower our members to achieve their financial goals.

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

PG 2 | 2024 ANNUAL REPORT | FIRST COMMUNITY CREDIT UNION

First Community held strong in supporting our members with their lending needs. We are pleased that we have been able to offer competitive rates while supporting our members’ efforts to secure loans that best fit their needs. Loan officers reviewed 47,424 applications for auto loans, credit cards, personal loans and real estate loans.

Additionally, we funded $751.46 million in loans. We concluded the year with a loan portfolio of $1,951,728,576, an increase of 0.76%.

2021

$1.965 B

2022

$2.224 B

2023

$2.507 B

2024

$2.563 B

2020

136,616

2021

142,875

2022

152,145

2023

158,593

2024

170,139

GROSS LOANS

In 2024, we continued to fulfill our mission, providing first-rate service and competitive products to our members across Houston, Dallas and Fort Worth. Our team remains committed to providing extraordinary Doug Wilcher Chairman, Credit Committee member service while assisting our members with their lending needs. We look forward to helping more members than ever across the counties we serve in the state of Texas.

ASSETS

The responsibility of the Credit Committee is to ensure core lending policies and practices are followed.

FINANCIAL GROWTH

MEMBERSHIP

CREDIT COMMITTEE REPORT

2020

$1.128 B

2021

$1.264 B

2022

$1.653 B

2023

$1.944 B

2024

$1.952 B

DISTRIBUTION OF LOANS

AUDIT COMMITTEE REPORT AUTO - NEW: 20.33% | USED: 26.34%

An in-depth independent audit of the operations of First Community Credit Union by the CPA firm of Doeren Mayhew, CPAs and Advisors is in progress for the year ending December 31, 2024. Audited financials are anticipated to be provided on our website around May 2025.

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.

REAL ESTATE - 32.34% COMMERCIAL - 12.26% UNSECURED - 4.29%

OTHER - 4.44%

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

$83,709,103

AUTO LOANS AUTO LEASES

$80,014,920

$631,052,786

REAL ESTATE LOANS OTHER LOANS COMMERCIAL LOANS

$831,056,943

$86,628,744 $239,266,080

FIRST COMMUNITY CREDIT UNION | 2024 ANNUAL REPORT | PG 3

FIRST COMMUNITY CARES FOUNDATION

First Community Cares Foundation, established by First Community Credit Union, was founded in 2022. Since its launch, the Foundation has continued to support students and families through an annual scholarship program awarding college and trade school scholarships to high school graduates.

In 2024, the Foundation hosted its inaugural golf tournament hailing support from our partners who joined us to support our foundation. As a result, the Foundation earned/raised more funding to assist us in increasing our scholarship program and helping even more worthy organizations and school districts make our community better day in and day out.

Additionally, the Foundation supported Cy-Hope in their ongoing efforts to provide food for children and their families, as well as their initiative to raise funds to award scholarships to students. First Community Cares Foundation pledged over $200,000 to organizations focused on education, families, children, veterans and health awareness.

Through supporting various charitable organizations, we were able to make a lasting impact in the lives of our community by providing the resources needed.

PG 4 | 2024 ANNUAL REPORT | FIRST COMMUNITY CREDIT UNION

COMMUNITY REPORT

Giving back to the communities we serve is ingrained into the foundation of First Community. In 2024, First Community pledged over $150,000 to the community. Additionally, First Community donated $275,000 to the First Community Cares Foundation. We continued to support numerous organizations that prioritize “People Helping People.”

These organizations support and elevate our communities further so together, we achieve an optimal community for all to prosper and thrive.

Each year, we are thrilled to continue our partnership with the Houston Livestock Show and Rodeo™ as the Official Carnival Sponsor, Spindletop Community Impact Partners, the American Heart Association and more, while always aiming to increase our reach in the community. First Community takes great pride in remaining rooted in education by supporting local school districts and students. In 2024, we also were proud to support the STPGA Junior Golf Program as a Patron Sponsor supporting lifelong golfers and their scholarship program. Our Stars in the Classroom (SITC) program is an active showcase of that, as its core focus is to honor teachers who go above and beyond to make an impact on their students’ lives. In honor of each winning teacher, a donation of $500 is awarded to their respective school district.

Our executive team’s continued dedication to serving on the board at multiple community organizations speaks to the core of who we are at First Community. Community is a pillar we stand on and our staff poured in 336.50 hours of their time volunteering in the community. Our entire team maintained their commitment to the many community organizations we serve and we look forward to making an even larger impact in 2025.

FIRST COMMUNITY CREDIT UNION | 2024 ANNUAL REPORT | PG 5

STATEMENT OF FINANCIAL CONDITION

ASSETS Cash

2024

$112,817,288

2023

$60,584,367

LIABILITIES & MEMBERS' EQUITY

2024

2023

$1,989,588,305

$1,926,801,757

Liabilities

Investments

Members’ Share Accounts

Available for Sale

346,176,746

364,518,953

Held to maturity

0

0

Accounts Payable

4,664,084

20,827,281

17,743,745

16,829,100

Accrued Liabilities

387,240,874

395,077,473

1,945,406,012

1,940,245,088

$2,381,493,263

$2,342,706,511

Undivided Earnings

215,020,402

203,191,920

Accumulated Other Comprehensive Gain/Loss

-32,992,995

-37,913,650

$182,027,406

$165,278,270

$2,563,520,669

$2,507,984,781

Other investments Loans to Members, net

Total Liabilities Members’ Equity

Accrued Interest Receivable Investment

733,069

558,081

Loans

7,323,541

7,046,405

Other Receivables

6,854,346

6,591,903

Prepaid and Other Assets

22,723,755

16,127,208

Property and Equipment

85,786,866

78,288,532

NCUSIF Deposit

17,955,301

17,195,144

TOTAL ASSETS

$2,563,520,669

$2,507,984,781

PG 6 | 2024 ANNUAL REPORT | FIRST COMMUNITY CREDIT UNION

Total Members’ Equity TOTAL LIABILITIES & MEMBERS' EQUITY

COMPARATIVE OPERATING STATEMENT

2024

2023

$103,642,780

$88,110,321

27,631,169

21,072,964

$131,273,949

$109,183,285

Borrowed Funds

25,707,975

21,802,609

Members’ Share & Savings Accounts

38,780,365

28,677,624

$66,785,609

$58,703,052

10,791,496

7,982,417

$55,994,113

$50,720,635

Fees & Service Charges

26,901,904

26,683,926

Other Non-Interest Income

9,649,351

7,614,632

$36,551,255

$34,298,558

Compensation & Benefits

35,009,118

33,150,893

Office Operating Costs

40,661,284

35,527,766

Education & Promotion

4,531,095

4,543,059

515,413

-31,542

Total Non-Interest Expense

$80,716,910

$73,190,176

NET INCOME

$11,828,460

$11,829,017

Interest Income Interest on Loans to Members Interest on Investments & Cash Equivalents Total Interest Income Interest Expense

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

FIRST COMMUNITY CREDIT UNION | 2024 ANNUAL REPORT | PG 7

BOARD OF DIRECTORS AND EXECUTIVE MANAGEMENT

Marty Miracle

Sally Moseley

Dr. Steven Walker

Julie Eisenhauer

Term Expires: March 2025

Term Expires: March 2027

Term Expires: March 2026

Term Expires: March 2027

Chairman of the Board

Vice Chairman

Treasurer

Secretary

Robert Schumacher

Scott Clanton

Doug Wilcher

Term Expires: March 2025

Term Expires: March 2026

Term Expires: March 2026

Board Member

Board Member

Board Member

In 2024, board member compensation totaled $108,000. In 2025, board member compensation is estimated to equal $108,000.

TJ Tijerina

President & Chief Executive Officer

Keith Domingue Edgar Barraza Chief Financial Officer

Chief Financial Officer

Rito Garza

Chief Information Security Officer

Randal Ward Chief Lending Officer

Jennifer Kilgore Arthur Gordon Sravan Vinjamuri Chief Operations Officer

Chief Retail Officer

Chief Technology Officer

Katie Rigby

Chief Human Resources Officer

Notable Changes in Management: EVP/CISO retired. EVP/CFO was hired. SVP, Accounting resigned and a new SVP, Accounting was hired. SVP, Engineering was hired. VP, Consumer Lending retired and a new VP, Consumer Lending was hired. VP, Marketing resigned and a new VP, Marketing was hired. VP, Compliance resigned and a new VP, Compliance was hired. VP, Card Services resigned and a new VP, Card Services was hired. VP, Accounting resigned. VP, Floating Manager retired. Floating Manager was promoted to VP, Floating Branch Manager. VP, Special Services transitioned to Internal Auditor. Branch VP resigned and Branch AVP was promoted to Branch VP. Five Branch VPs transitioned to other branches.

PG 8 | 2024 ANNUAL REPORT | FIRST COMMUNITY CREDIT UNION

MAKING A FIRST-RATE FINANCIAL DIFFERENCE

in our members lives’

Your financial partner for life.

NMLS #217251