Annual Report
2020 Message to the Membership
The year of 2019 was an exciting and successful year for both First U.S. and for our members. As a not-for-profit financial institution, owned by you, our members, we’re pleased to report that we remain safe and sound, well capitalized and a preferred alternative to big banks. Our strong growth during the year is evidence of your much appreciated support. It is a result of above average organic growth and included welcoming the members of McClatchy Employees Credit Union. For over 83 years, we’ve been dedicated to bringing you more value to enhance your life and we strive to remain “Big Enough to Serve, but yet Small Enough to Care”.
One of the biggest ways we help members is by making low-cost loans. Helping members reduce debt and save money is one way we fulfill our mission. During the year, we welcomed over 3,750 new members, consumers and businesses. We made over $93 million in loans to members, everything from Credit Cards to First Mortgages and Business Loans. We were pleased to be able to save members thousands of dollars on loans of all kinds, making life more affordable.
We encourage regular savings to ensure that all of our members have a safety net for unexpected emergencies or the necessary funds to reach a goal. We continue to offer some of the best rates available to all levels of savers, including Certificate Specials, Metal Money Markets and now the new reverse-tier $mart Start Money Market that currently earns as much as 3% APY.
In 2019 we paid almost twice the dividends to members when compared to 2018. Payroll deduction or automatic transfer is a painless way to Pay Yourself First. We also established over 1,800 new checking relationships and saved members thousands more in fees.
In 2020, we have a number of projects planned to provide an enhanced member experience, new ways to reduce the cost of your debt and increase the yield on your savings. We’re introducing our amazing Cash Rewards Visa® Credit Card that earns up to 3% cash back automatically deposited into your savings and never charges an annual fee. We also have plans to expand our First Time Home Buyer options. Whether visiting a branch, logging on to Home Banking, calling our Service Center or using our Mobile Banking app, we’re here for you with the technology you need, making it easier for you to get things done. As we grow together, we strive to gain efficiencies so that we keep credit union costs low and, every year, we also look for ways to expand our involvement in the communities we serve.
As a financial cooperative, you own this credit union, not stockholders. We continue to vow to put you first. Your satisfaction is our number one priority and, as always, we pledge to bring you more value and we strive to deliver it with the personal service you deserve. On behalf of our volunteers and staff, thank you for your business.

Carol M. Hauck
President & Chief Executive Officer

Brian W. Doyle
Board Chairman
Supervisory Committee Report
The responsibility of the Supervisory Committee, who are elected by the membership, is to ensure the sound operation of First U.S.
In 2019, the Supervisory Committee engaged the accounting firm RSM US, LLP to conduct the annual certified audit. First U.S. continues to be well managed, financially sound and in compliance with generally accepted accounting principles.
Due to the diligence of officials, management and staff, the credit union remains in excellent condition, having met all regulatory requirements.
We encourage our members to be involved by offering suggestions and comments so that we can continue to improve our service to you. Your support and confidence in 2019 are appreciated, and we look forward to ongoing success in 2020.

Charles B. Johnson, Jr.
Supervisory Committee Chairman
Statement of Condition
Year Ended December 31, 2019
Assets | 2019 | 2018 |
---|---|---|
Loans to Members | 251,955,349 | 238,924,328 |
Less Allowance | (1,831,663) | (1,229,902) |
Cash | 1,988,393 | 2,339,618 |
Investments | 128,324,501 | 105,660,171 |
Fixed Assets | 3,497,116 | 3,271,202 |
Other Assets | 25,473,322 | 23,057,418 |
Total Assets | $409,407,018 | $372,022,835 |
Liabilities and Equity | 2019 | 2018 |
---|---|---|
Other Liabilities | 2,851,638 | 3,245,705 |
Accrued Dividends | 178,209 | 118,387 |
Total Shares | 357,383,267 | 325,960,084 |
Regular Reserves | 6,496,396 | 6,496,396 |
Equity Acquired in Merger | 6,646,733 | 4,679,739 |
Gain (Loss) on Securities | 539,935 | (312,328) |
Undivided Earnings | 35,310,840 | 31,834,852 |
Total Liabilities & Equity | $409,407,018 | $372,022,835 |
Statement of Income
Year Ended December 31, 2019
Income | 2019 | 2018 |
---|---|---|
Interest on Loans | 10,903,943 | 9,666,272 |
Income from Investments | 2,707,423 | 2,257,173 |
Other Operating Income | 3,155,203 | 2,991,658 |
Total Revenue | $16,766,569 | $14,915,103 |
Expenses | 2019 | 2018 |
---|---|---|
Employee Comp./Benefits | 5,768,596 | 5,542,815 |
Travel & Conferences | 166,429 | 140,192 |
Association Dues | 45,259 | 43,658 |
Office Occupancy | 591,184 | 551,218 |
Office Operations | 2,010,498 | 1,984,109 |
Advertising & Promotions | 382,533 | 319,536 |
Loan Servicing | 730,350 | 692,045 |
Professional & Outside Services | 535,301 | 462,763 |
Provision for Loan Losses | 1,197,738 | 499,100 |
Other Operating Expenses | 90,289 | 243,670 |
Total Operating Expenses | $11,518,177 | $10,479,106 |
Totals | 2019 | 2018 |
---|---|---|
Net Income Before Dividends | 5,248,392 | 4,435,997 |
Less Dividend on Shares | 1,818,799 | 1,008,730 |
Net After Dividends | $3,429,593 | $3,427,267 |
Non-Operating Income | 2019 | 2018 |
---|---|---|
NCUSIF/Corporate Stabilization | 0 | 0 |
Gain (Loss) on Assets & Investments | (32) | 155 |
Gain (Loss) Sale of Real Estate | 1,551 | 1 |
Non-Operating Income (Expense) | 44,877 | 206,108 |
Net Income | $3,475,989 | $3,633,531 |