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2018 Message to the Membership

2018 was another excellent year for First U.S. and our membership. We’re pleased to report that we remain safe and sound, well capitalized and a preferred alternative to big banks. For over 80 years, as a not-for-profit financial institution, we’ve been dedicated to bringing you more value that will enhance your life and we strive to remain "Big Enough to Serve, Small Enough to Care".

While 2018 was another big year for making loans to members, it also brought some higher rates on savings as the economy improved. We made more than 2,700 loans to members totaling almost $90 million and ranging from VISAs to First Mortgages and Business Loans. We also welcomed over 3,200 new members, consumers and businesses. Due to relatively low rates we were able to save members thousands on loans of all kinds, making life more affordable. We established over 1,700 new checking relationships and saved members thousands in fees. Although savings rates remain low, we offer some of the best rates available, particularly on Certificate Specials and our exclusive Metal Money Markets.

Important 2018 projects reflected our continued commitment to providing help to members in need. We offered unsurpassed support to federal members affected by the federal furloughs by providing 0% loans for delayed pay and loan extensions. We were one of the few, perhaps the only financial institution that provided this level of assistance and allowed new federal employees to take advantage of these programs. We also stepped up to help members affected by the Camp Fire. During the year we made more updates to our website, improved mobile banking and enhanced cybersecurity, making transactions more convenient, efficient and secure. Whether visiting a branch, logging on to Home Banking, calling our Phone 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. In partnership with energy companies across the state, we launched our new Residential Energy Efficiency Loan (REEL) program, making a difference for members by helping improve energy efficiency and reducing energy expenses with low-cost loans for upgrades like new windows, energy-smart appliances and heating/cooling systems. We also introduced a very popular new member car buying concierge service that takes the pain out of buying or leasing a new or used vehicle and, as usual, you can be approved on the spot.

In 2019, 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 advocate for regular savings at any level to ensure that all of our members have the safety net that savings provides for unexpected emergencies. Regular savings by payroll transfer or automatic deposit is a painless way to Pay Yourself First. As we grow together, we are able 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 cooperative, we vow to continue to put you first, and we thank you for your patronage. Because your satisfaction is our number one priority, we pledge to bring you more value, and as always, we strive to deliver it with the personal service you deserve. On behalf of the entire First U.S. team of volunteers and staff, thank you for your business.

photo of Carol Hauck

Carol M. Hauck
President & Chief Executive Officer

photo of Brian Doyle

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 2018, long-time Supervisory Committee member Alan Stroppini retired, and Karen McDougal filled the vacant position.

Also in 2018, 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 2018 are appreciated, and we look forward to ongoing success in 2019.

photo of Charles B. Johnson, Jr.

Charles B. Johnson Jr.
Supervisory Committee Chairman

Statement of Condition

Year Ended December 31, 2018

Assets 2018 2017
Loans to Members 238,924,328 217,555,645
Less Allowance (1,229,902) (1,034,822)
Cash 2,339,618 1,992,749
Investments 105,660,171 122,364,541
Fixed Assets 3,271,202 3,411,335
Other Assets 23,057,418 19,944,585
Total Assets $372,022,835 $364,234,033
Liabilities and Equity 2018 2017
Other Liabilities 3,245,705 2,271,570
Accrued Dividends 118,387 65,500
Total Shares 325,960,084 322,948,956
Regular Reserves 6,496,396 6,496,396
Equity Acquired in Merger 4,679,739 4,679,739
Gain (Loss) on Securities (312,328) (429,449)
Undivided Earnings 31,834,852 28,201,321
Total Liabilities & Equity $372,022,835 $364,234,033

Statement of Income

Year Ended December 31, 2018

Income 2018 2017
Interest on Loans 9,666,272 8,579,870
Income from Investments 2,257,173 2,164,730
Other Operating Income 2,991,658 3,021,531
Total $14,915,103 $13,766,131
Expenses 2018 2017
Employee Comp./Benefits 5,542,815 5,244,504
Travel & Conferences 140,192 96,628
Association Dues 43,658 43,065
Office Occupancy 551,218 560,311
Office Operations 1,984,109 2,035,246
Advertising & Promotions 319,536 340,932
Loan Servicing 692,045 897,854
Professional & Outside Services 462,763 383,010
Provision for Loan Losses 499,100 330,693
Other Operating Expenses 243,670 365,108
Total Operating Expenses $10,479,106 $10,297,351
Totals 2018 2017
Net Income Before Dividends 4,435,997 3,468,780
Less Dividends on Shares 1,008,730 701,529
Net After Dividends $3,427,267 $2,767,251
Non-Operating Income 2018 2017
NCUSIF/Corporate Stabilization 0 0
Gain (Loss) on Assets/Investments 155 (15)
Gain (Loss) on Sale of Real Estate 1 78,354
Non-Operating Income (Expense) 206,108 (7,500)
Net Income $3,633,531 $2,838,090