Annual Report
2018 Message to the Membership
We're pleased to report that 2017 was an excellent year for First U.S. and our membership. We remain in a strong financial position, are well capitalized, and we continue to be 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.
In 2017, we welcomed 2,800 new members, consumers and businesses. We made 3,200 member loans that totaled over $74 million, doubling the number of vehicle loans made in 2016. Through lower rates, we saved members thousands on loans of all kinds, making life more affordable. We established over 1,890 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 Metal Money Markets.
Important 2017 projects included phase I of our website update, improved mobile banking and enhanced cyber security, making transactions more convenient and secure. An important part of our mobile banking app is the ability to do business conveniently from any device. This year we successfully rolled out Apple Pay, Android Pay and Samsung Pay to further expand convenience and provide you with more access to your money. Whether visiting a branch, logging on to Home Banking, calling our Phone Center or using our Mobile Banking app, we're here for you and dedicated to making it easy for you to do business with us. We also developed new abilities to instantly pre-approve you for more types of loans and expand point-of-sale approvals. Not only can you get approved at the dealer for cars and trucks, but now, you can also buy and finance RVs, boats and motorcycles on the spot.
In 2018, we continue to put you first. We're ready to roll out VA Mortgage Loans, and we expect to deploy a new Person-To-Person (P2P) capability via our mobile app. Managing your First U.S. VISA will be even easier with enhanced card controls through our mobile app. Soon we'll be able to utilize automatic calculations to show you how much you can save with First U.S. when you bring us business you may have elsewhere. Business owners, we can help you grow with a full array of business services that include Small Business Loans, SBA loans, commercial real estate and business VISAs. We pledge to bring you more value, and as always, we strive to deliver it with the personal service you deserve. Your satisfaction is our number one priority.
We hope you will continue to think of us first for all of your financial needs. We thank you for your patronage and trust. As a cooperative, we always appreciate your referrals. On behalf of the entire First U.S. team of volunteers and staff, it is a privilege to serve you.
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 2017, 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 2017 are appreciated and we look forward to ongoing success in 2018.
Charles B. Johnson Jr.
Supervisory Committee Chairman
Statement of Condition
Year Ended December 31, 2017
| Assets | 2017 | 2016 |
|---|---|---|
| Loans to Members | 217,555,645 | 192,890,913 |
| Less Allowance | (1,034,822) | (914,508) |
| Cash | 1,992,749 | 2,191,478 |
| Investments | 122,364,541 | 129,490,419 |
| Fixed Assets | 3,411,335 | 3,487,281 |
| Other Assets | 19,944,585 | 20,839,096 |
| Total Assets | $364,234,033 | $347,984,679 |
| Liabilities and Equity | 2017 | 2016 |
|---|---|---|
| Other Liabilities | 2,711,570 | 2,857,796 |
| Accrued Dividents | 65,500 | 55,585 |
| Total Shares | 322,948,956 | 308,621,229 |
| Regular Reserves | 6,496,396 | 6,496,396 |
| Equity Acquired in Merger | 4,679,739 | 4,679,739 |
| Gain (Loss) on Securities | (429,449) | (89,298) |
| Undivided Earnings | 28,291,321 | 25,363,232 |
| Total Liabilities & Equity | $364,234,033 | $347,984,679 |
Statement of Income
Year Ended December 31, 2017
| Income | 2017 | 2016 |
|---|---|---|
| Interest on Loans | 8,579,870 | 8,034,681 |
| Income from Investments | 2,164,730 | 1,566,282 |
| Other Operating Income | 3,021,531 | 2,909,117 |
| Total | $13,766,131 | $12,510,080 |
| Expenses | 2017 | 2016 |
|---|---|---|
| Employee Comp./Benefits | 5,244,504 | 4,991,822 |
| Travel & Conferences | 96,628 | 99,518 |
| Association Dues | 43,065 | 44,965 |
| Office Occupancy | 560,311 | 609,022 |
| Office Operations | 2,035,246 | 1,940,324 |
| Advertising & Promotions | 340,932 | 316,612 |
| Loan Servicing | 897,854 | 945,236 |
| Professional & Outside Services | 383,010 | 318,844 |
| Provision for Loan Losses | 330,693 | 121,807 |
| Other Operating Expenses | 365,108 | 63,009 |
| Total Operating Expenses | $10,297,351 | $9,451,159 |
| Totals | 2017 | 2016 |
|---|---|---|
| Net Income Before Dividends | 3,468,780 | 3,058,921 |
| Less Dividends on Shares | 701,529 | 654,930 |
| Net After Dividends | $2,767,251 | $2,403,991 |
| Non-Operating Income | 2017 | 2016 |
|---|---|---|
| Gain (Loss) on Assets/Investments | (15) | 1,678 |
| Gain (Loss) on Sale of Real Estate | 78,354 | 48,816 |
| Non-Operating Income (Expense) | (7,500) | (252,976) |
| Net Income | $2,838,090 | $2,201,509 |