Annual Report
2024 Message to the Membership
To the vibrant community of First U.S., we extend a heartfelt welcome! We hope this message finds you in good health and high spirits. As we reflect on the dynamic landscape of the past year, we are thrilled to share with you the remarkable journey of First U.S. throughout 2023 in our Annual Report.
This past year marked a significant chapter in our history as we welcomed a new era of leadership. “I’m excited to welcome Shonna Shearson as our new President and CEO,” said Jamie Gomes, First U.S. Chairman of the Board. “Shonna is a trusted and growth-oriented leader with extensive management experience in the credit union industry.”
“As the newly appointed President and CEO, I am honored to serve you alongside three esteemed individuals who have recently joined our Board of Directors: Vasantha Eswara, Celeste Martinez, and Stephen Serfozo,” said Shonna Shearson. “Together, with our tenured board members and team, we are dedicated to steering First U.S. towards new heights of success and service to our valued members.”
At the heart of our organization is a legacy that spans over 85 years, built on the principle of making a difference in our communities with financial services that help our members enhance their lives. Your trust and loyalty have been the pillars of our strength, enabling us to adapt and thrive through various economic climates. Rest assured, we remain steadfast in our commitment to your financial well-being, and we are poised for sustained growth and stability.
Despite the challenges posed by the economic landscape, First U.S. has exhibited operational strength that is nothing short of commendable. We are pleased to report noteworthy lending growth of over 7% year-over-year, with particular highlights in auto loans and our GoGreen initiatives. This success is a testament to the resilience of our community and the collective effort of our dedicated team.
The coming year will be a canvas for us to paint our mission vividly, and we cannot wait. We aim to not only meet but exceed your expectations, ensuring that our business processes are both efficient and scalable to accommodate future growth. This proactive approach is fundamental to serving our amazing community and boldly illustrating our vision of “Growing Together.”
In the spirit of “Growing Together,” we invite you to explore our 2023 Annual Report, which encapsulates the achievements, challenges, and aspirations that define our journey. Your feedback and insights are invaluable, and we encourage you to share your thoughts as we embark on this exciting path forward.
Thank you for your continued trust and partnership. Together, we will shape a prosperous future for First U.S. and its members.
Wishing you a year of abundance and success!
Shonna Shearson
President & Chief Executive Officer
Jamie Gomes
Board Chairman
Audit Committee Report
The responsibility of the Audit Committee is to ensure the sound operation of First U.S. In 2023, the Audit 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. The Credit Union remains in excellent condition, having met all regulatory requirements.
Member comments and suggestions are welcome. Your support and confidence in 2023 are appreciated, and we look forward to ongoing success in 2024.
Audit Committee of the Board of Directors
Stephen Serfozo, Chairman
Karen McDougal
Celeste Martinez
Stephen Serfozo
Audit Committee Chairman
Statement of Condition
Year Ended December 31, 2023
| Assets | 2023 | 2022 |
|---|---|---|
| Loans to Members | 346,106,401 | 322,932,303 |
| Less Allowance | (4,092,222) | (2,237,914) |
| Cash | 2,875,972 | 2,185,876 |
| Investments | 159,577,910 | 187,342,815 |
| Fixed Assets | 3,074,311 | 3,114,466 |
| Other Assets | 28,353,077 | 28,205,311 |
| Total Assets | $535,895,449 | $541,542,857 |
| Liabilities and Equity | 2023 | 2022 |
|---|---|---|
| Other Liabilities | 4,075,705 | 14,445,320 |
| Accrued Dividends | 115,639 | 182,746 |
| Total Shares | 478,890,466 | 478,276,952 |
| Regular Reserves | 6,496,396 | 6,496,396 |
| Equity Acquired in Merger | 6,646,733 | 6,646,733 |
| Gain (Loss) on Securities | (8,382,066) | (11,272,114) |
| Undivided Earnings | 48,052,576 | 46,766,825 |
| Total Liabilities & Equity | $535,895,449 | $541,542,857 |
Statement of Income
Year Ended December 31, 2023
| Income | 2023 | 2022 |
|---|---|---|
| Interest on Loans | 14,290,473 | 11,240,390 |
| Income from Investments | 4,102,050 | 3,128,312 |
| Other Operating Income | 3,498,362 | 3,622,383 |
| Total Revenue | $21,890,885 | $17,991,085 |
| Expenses | 2023 | 2022 |
|---|---|---|
| Employee Comp./Benefits | 7,460,164 | 6,540,093 |
| Travel & Conferences | 233,691 | 150,258 |
| Association Dues | 54,007 | 50,865 |
| Office Occupancy | 757,488 | 693,573 |
| Office Operations | 3,128,545 | 2,577,844 |
| Advertising & Promotions | 413,893 | 372,336 |
| Loan Servicing | 1,124,648 | 846,617 |
| Professional & Outside Services | 615,747 | 615,044 |
| Provision for Loan Losses | 1,433,021 | 727,960 |
| Other Operating Expenses | 256,685 | 147,608 |
| Total Operating Expenses | $15,477,889 | $12,722,198 |
| Totals | 2023 | 2022 |
|---|---|---|
| Net Income Before Dividends | 6,412,996 | 5,268,887 |
| Less Dividend on Shares | 4,472,985 | 1,341,323 |
| Net After Dividends | $1,940,011 | $3,927,564 |
| Non-Operating Income | 2023 | 2022 |
|---|---|---|
| NCUSIF/Corporate Stabilization | 0 | 0 |
| Gain (Loss) on Assets & Investments | (208,228) | (16) |
| Gain (Loss) Sale of Real Estate | 623,927 | 0 |
| Gain (Loss) on Sale of Repo Asset | (77,319) | |
| Non-Operating Income (Expense) | 383,899 | 0 |
| Net Income | $2,662,290 | $3,927,548 |
Meet Our New Board Members
Vasantha Eswara - Secretary
“Being on the board of First U.S. in Sacramento is a privilege and is incredibly rewarding! It’s a chance to make a real difference in our community’s financial health. Every decision we make is to help our members achieve their dreams.”
Celeste Martinez - Director
“I’m excited and proud to be a part of First U.S., a credit union that strives every day to make a positive difference in the lives of its members.”
Stephen Serfozo - Director
“I continue to be impressed by how focused First U.S. is towards both their members and employees. Now, as a member of our Board of Directors, I’m honored to participate in creating a strong and innovative vision for our future.”