2021
Annual report A Year of Resilience
Table of
Contents A Message from the Chairman and President/CEO
01
Meet the Team
03
Minutes of the 66th Annual Member’s Meeting
05
Supervisory Committee Chair Report
07
FirstLight Community Foundation
08
2021 Highlights
09
2021 Financials
11
A Message from the
Chairman and President/CEO THANK YOU FOR YOUR MEMBERSHIP AT FIRSTLIGHT. WE ARE COMMITTED TO IMPROVING LIVES SO YOU CAN ACHIEVE YOUR DREAMS.
KARL MURPHY
On behalf of our volunteers and hard-working team members, we are pleased to share your community-based cooperative had a tremendous year. Our assets grew to $1.39 billion, serving over 107,000 members in the El Paso, Fort Bliss, and Las Cruces communities through our ten convenient locations and virtual live video banking agents. And even better, we implemented new services to support our mission, vision, and working mantra of ‘more than a financial institution’.
Making it Easy & Convenient to do business with us After implementing in a virtual platform to conduct business with “Live” Video Agents in 2020, we invested in an online appointment portal enabling members to schedule meetings at a convenient branch location. In addition, the credit union: Opened a self-service microbranch at Texas Tech Health Science Center—El Paso to serve the students, staff, and administrators. Partnered with two agencies to survey (or text) members to solicit feedback on their branch or transaction experience. This information assists with process and service improvements. Conducted member journey mapping, interviewing members on their experience with account opening and applying for a loan to elevate member experience.
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We always want to have our members’ best interests in mind, offering solutions that simply make your lives better. In 2021, the credit union: Introduced Card Controls, empowering FirstLight cardholders to turn “on” or “off” when not using, set limits on spending, and decline transactions outside your preferred settings to protect from fraud. Through the FirstLight Rewards Program, redeemed $456,294 to members in the form of cash back, loan rate reductions, ATM reimbursements, and fee refunds. Recognized and voted “Best of the Border” Credit Union.
JAIME BARCELEAU
Trusted Financial Partner
Community Leader FIRSTLIGHT WANTS TO BE AN ACTIVE CONTRIBUTOR IN THE COMMUNITIES WE SERVE. WE WANT TO BE MORE THAN A FINANCIAL INSTITUTION. Participated in 87 community development and financial wellness trainings with areas schools, universities, civic, and non-profit groups. Through our FirstLight Giving Program,$1.00 is given to local food banks for every funded loan. FirstLight ultimately donated $14,175—having an impact of 141,750 meals to local families. The FirstLight Community Foundation awarded $15,000 to 19 scholarship recipients. The Foundation raised just over $100,000 from employee contributions, community donations, t-shirt sales, and our Inaugural Golf Classic. Partnerships with the USO and Fort Bliss, Texas Tech Health Science Center—El Paso, and New Mexico State University. As FirstLight moves into 2022, thoughtful investments will be made to enhance the financial wellness of our membership and community. Beyond new partnerships with Western Technical College and UTEP’s Banking Academy, FirstLight will continue to invest in new services—from small dollar programs to artificial intelligence platforms. We will also be assessing our branch structure, evaluating current and new branch locations to better meet your on-the-go needs. All in an effort to elevate your experience. Again, thank you for your membership.
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Meet the Executive Management Team
Karl T Murphy
Judy DeHaro
Margie Salazar
PRESIDENT/CEO
CHIEF LENDING OFFICER
CHIEF FINANCIAL OFFICER
Board of Directors
Jaime Barceleau
Renee Jimenez
Gilbert Tijerina
VICE CHAIR
TREASURER
CHAIRMAN
Carlos Guzman
Miguel Cheng-Guajardo
Joshua Orozco
Barbara Walker
SECRETARY
BOARD MEMBER
BOARD MEMBER
BOARD MEMBER
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Team Senior Vice Presidents
Aaron Beldner
Jim Huff
CHIEF INFORMATION OFFICER
CHIEF RETAIL OFFICER
Grace Munoz
Anthony T. Walker SENIOR VICE PRESIDENT OF MARKETING AND COMMUNITY IMPACT
SENIOR VICE PRESIDENT OF TALENT MANAGEMENT
Vice Presidents
Rick Divina VICE PRESIDENT OF ACCOUNTING
Joe Arvizu VICE PRESIDENT OF ADMINISTRATION
Scott Heck
William Kishton
Andy Atkinson
VICE PRESIDENT OF BUSINESS SERVICES
VICE PRESIDENT OF CONSUMER LENDING
VICE PRESIDENT OF ELECTRONIC SERVICES
Tim Morse
Addy Reeves
Carmen Sanchez
Michael Mehring
VICE PRESIDENT OF INFORMATION TECHNOLOGY
VICE PRESIDENT OF MORTGAGES
VICE PRESIDENT OF RETAIL
VICE PRESIDENT OF RISK MANAGEMENT
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Minutes of the 66th Annual Member’s Meeting
FirstLight Federal Credit Union PLACE: Virtual Meeting via ZOOM DATE: Wednesday, May 19, 2021 TIME: 5:00 p.m. I.
WELCOME AND CALL TO ORDER
The meeting was called to order and the members were welcomed by Mr. Jaime Barceleau, Chairman of the Board of Directors at 5:00 p.m. Mr. Karl Murphy, President/CEO presented the invocation and the Pledge of Allegiance.
II.
APPOINTMENTS The meeting was conducted in adherence with Robert’s Rules of Order. Ms. Pat Aguilera was appointed as recording secretary.
III.
INTRODUCTIONS Mr. Barceleau introduced the current members of the Board of Directors and the Supervisory Committee, thanking them for their service to FirstLight Federal Credit Union as volunteers. Mr. Murphy thanked the Board and Supervisory Committee volunteers for their service to the credit union and introduced the Executive Officers of the credit union.
V.
QUORUM Mr. Barceleau confirmed 44 members present on behalf of Ms. Sylvia Duarte, Treasurer of the Board of Directors.
VI.
PRESENTATION OF OFFICIAL REPORTS Minutes The minutes of the 65th Annual Meeting were presented. Motion to approve and accept the minutes of May 14, 2020 as written was made by Phillip Laing and seconded by Dianne Grant. Motion carried. None opposed. Official Reports and Financials Mr. Barceleau noted the official reports presented in the 2020 annual report including the chairman and president’s report, the supervisory committee’s report, and the financial statements. He then asked Mr. Murphy to provide an update of credit union operations to the members.
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Mr. Murphy thanked the members for their valued membership and support of the credit union. He also commended staff for their dedicated effort to make 2020 a successful year. Mr. Murphy then provided an update on the current status of the credit union. Mr. Murphy discussed the challenges the credit union had to continue serving the members of the credit union during COVID. He discussed the purpose of the Credit Union being to Improve Lives and Achieve Dreams – those of Members, Employees and the Community. Mr. Murphy stated that changes will result in a brighter future. Some of the strategies and programs that the Credit Union has endeavored throughout 2020 and 2021 were: • • • • • • • • •
Video banking Texting solution Contactless cards for greater security and convenience Appointment software Interest relief programs Emergency loan programs Skip-a-payments – over 9,692 Over 400 paycheck protection loans for small businesses at $21.5 million in loans. New programs included Credit Rebuilder program, Fresh Start Spending Accounts for those with checking account challenges.
The Credit Union is continuing to keep the financial health and security the top priority of the Credit Union. The Credit Union is adopting member friendly technology to ensure the Credit Union can meet current and future needs, including Journey Mapping to make business easier for members. The Credit Union continues to look for state of the art technology and expand locations. The Credit Union has committed to recognize diversity, equity and inclusion in its communities of El Paso, Fort Bliss, and Las Cruces. The Credit Union is more than a financial institution; it is a community partner. One of the programs implemented includes $1 to El Pasoan’s Fighting Hunger Food Bank for every loan funded to amount to over $1 million in the next few years. Mr. Murphy thanked the members for their membership to FirstLight Federal Credit Union, a cooperative where everyone benefits from its existence, with a brighter future in store. A motion was made by Anthony Walker and seconded by Dianne Grant to accept all reports as written. Motion carried. None opposed.
VII.
ELECTION RESULTS
There were seven candidates nominated for the Board from the membership, and there was a total of 985 valid ballots received from the membership. The following were the results of the votes cast: Candidate Renee Jimenez Barbara Walker Jaime Barceleau Marcia Heller Ruben Garcia Jaime Medina Enrique (Rick) Bernal III
Number of Votes
Percent of Total Votes
569 432 401 327 323 318 313
21.21% 16.10% 14.95% 12.19% 12.04% 11.85% 11.67%
There being three open positions for the board, Ms. Renee Jimenez, Ms. Barbara Walker, and Mr. Jaime Barceleau were elected for a three-year term.
VIII.
EMPLOYEES OF THE YEAR
Mr. Barceleau recognized the two employees of the year. He congratulated the member service employee of the year, Andrew Vallejo from Mortgage Services, and Luis Marquez from information Technology for his outstanding support to fellow staff members.
IX.
ADJOURNMENT Mr. Barceleau announced the conclusion of the 66th Annual Meeting of the FirstLight Federal Credit Union. Motion to accept adjournment of the meeting was made by Thania Johnson and seconded by Humberto Caudillo. Motion carried. None opposed. There being no further business, the meeting adjourned at 5:21 p.m.
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Supervisory Committee
Chair Report
The FirstLight Federal Credit Union Supervisory Committee oversees the protection of members’ funds and ensures policies and procedures safeguard assets. The Committee also oversees the accuracy of financial records, in accordance with laws and regulation. Protecting the welfare of the Credit Union and its members with fraud being so prevalent during these trying times, also requires a heightened level of technical oversight. The Supervisory Committee ensures that the Credit Union implements cyber security solutions that protect against evolving threats. Your Supervisory Committee is comprised of four volunteer members appointed by the Board of Directors. The Committee oversees the internal audit function which conducts internal audits and carries out its work in an independent manner, subject to the Credit Union By-Laws and the Internal Audit Charter. Our audit plan emphasizes testing internal controls and assuring compliance with applicable laws, rules, and accounting practices. We also oversee inquiries to address any issues raised by members and prepare reports, as appropriate. During the year, the Supervisory Committee engaged the accounting firm of CliftonLarsonAllen, LLP for the 12-month period ending June 30, 2021. All of the audits, reviews, and examinations conducted during the period conclude that your Credit Union remains financially sound, is well-managed, and operates in compliance with federal laws, regulations, and policies. It is the opinion of your Supervisory Committee that the Credit Union’s policies and procedures, as well as Management’s practices, are sound. Such opinion is based upon Supervisory Committee internal audits, the independent external audit, and the NCUA examination report.
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Sylvia Duarte
Supervisory Committee Chair We encourage members to join in this effort by ensuring their account information is secure at all times and credit union staff is available to help you in that endeavor. The Supervisory Committee members are all volunteers and serve without compensation. Committee members are: Sylvia Duarte, Chairman Ralph Adame Gilbert Andujo Richard Holt Jaime Medina I express my appreciation to the members of the Supervisory Committee who volunteer their time, bringing their broad skills and knowledge to the Committee. Also, my appreciation goes to the Internal Audit Department, Board of Directors, management, and staff for their continued cooperation and assistance.
FirstLight
Community Foundation We Cultivate. We Collaborate. We Empower. The FirstLight Community Foundation was established by FirstLight Federal Credit Union to support the educational efforts and journey of students in the greater El Paso, Fort Bliss, and Las Cruces communities. The Foundation is supported by volunteers, employees of FirstLight Federal Credit Union, and generous donations from the community. Our foundation believes we have a social responsibility to elevate financial literacy/education efforts in our communities. We strive to inspire social change, find new and alternative ways to promote financial education, and work with schools and nonprofits alike.
Medina JaimeJaime Barceleau
BOARD MEMBER BOARD CHAIRMAN
Murphy Jaime Karl Barceleau BOARD MEMBER
Scholarships
for 2021
Carlos Guzman Jaime Barceleau BOARD MEMBER
Mica Short Jaime BarceBOARD MEMBER leau
Miguel Cheng-Guajardo BOARD MEMBER
Inaugural FirstLight Community Foundation Golf Classic
dollars $15,000 Total awarded
19 439
Scholarships awarded Total Submissions
The FirstLight Community Foundation continues to grow and the impact on our communities becomes even greater.
On October 22, 2021, we had the honor of hosting our Inaugural FirstLight Community Foundation Golf Classic. This signature annual event was brought to life by people who all shared a common goal to raise scholarship funds for local students in the El Paso, Fort Bliss, and Las Cruces Communities. Through the efforts of our sponsors, volunteers, and all other participants, we are happy to announced we raised a grand total of:
$80,690.00 Hope to see everyone on October 28th, 2022 for our 2nd Annual FirstLight Community Foundation Golf Classic!
Don’t miss out! Registration is now open! Scan the QR or visit https://bit.ly/GOLF_2022 8
2021 Highlights
Timeline of the Year JANUARY 2021
FIRSTLIGHT GIVING
We are More Than a Financial Institution! FirstLight gifts $1.00 on every funded loan to the El Pasoan’s Fighting Hunger Food Bank. $14, 175 or 141,750 meals to local families.
MARCH 2021
MARCH 2021
TEXAS TECH PARTNERSHIP & MICROBRANCH OPENING
Gifted funds to support scholarships, Red Raider food pantry and educational events for area kids.
SHRED DAY EL PASO
Hosted 1st Community Shred Day Event allowing members to shred sensitive documents and give back to the community by donating blood and providing foods for the El Pasoans Fighting Hunger Food Bank.
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OCTOBER 2021
BEST OF THE BORDER WINNERS
FirstLight received the “Best of the Border—Credit Union” designation for 2021 facilitated by the El Paso Times.
JULY 2021
USO DEPLOYMENT EVENT
FirstLight and the USO provided over 200 soldiers with care packages and a warm meal before deployment to their next mission.
OCTOBER 2021
INAUGURAL FIRSTLIGHT COMMUNITY FOUNDATION GOLF CLASSIC
Hosted our Inaugural FirstLight Community Foundation Golf Classic. We raised a grand total of $80K for scholarships that day!
$1.39 billion in assets 107,000 members NOVEMBER 2021
SHRED DAY LAS CRUCES
Hosted 2nd Community Shred Day Event benefitting Las Cruces community and local charity Casa de Peregrinos.
NOVEMBER 2021
MILITARY APPRECIATION FOOTBALL GAME NMSU
We were proud sponsors of the NMSU Military Appreciation Game Day! Thank you to all our members of our Armed Forces!
DECEMBER 2021
YOUNG PROFESSIONAL DONATIONS
Assisted the EL Paso Chapter of Credit Union Young Professionals with a new toy drive for refugee children.
DECEMBER 2021
LAS CRUCES PUBLIC SCHOOLS (LCPS)WISH UPON A STAR ANGEL TREE
Collected warm clothing and gifts for 102 migrant families living in Las Cruces.
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2021 Financial Statements
Consolidated Statement of Financial Condition As of December 31, 2021 2021
2020
92,451,753
167,335,067
147,630,604
126,012,473
1,419,486
1,095,911
1,063,222,822
940,778,592
Premises and equipment, net of depreciation
39,724,404
39,959,130
Other assets
51,542,088
44,841,137
Total Assets
1,395,991,157
1,320,022,310
1,258,106,934
1,195,537,880
-
-
98,782
195,573
-
-
12,480,663
11,414,986
1,270,686,379
1,207,148,439
Regular reserve
5,996,720
5,996,720
Unrealized G/L on investments
(1,917,687)
107,148
Undivided earnings
121,225,745
106,770,003
Total Members’ Equity
125,304,778
112,873,871
Cash and cash equivalents Investments Loans held-for-sale Loans to members, net of allowance for loan losses
Liabilities and Members' Equity Liabilities Members’ share accounts Non member deposits Accrued interest payable Borrowed funds Accrued expenses and other liabilities Total Liabilities
Members' Equity
Total Liabilities and Members’ Equity
1,395,991,157
1,320,022,310
This financial data presented in this Annual Report as of December 31, 2021 is unaudited, however, the CPA firm of CliftonLarsonAllen conducted an audit at the credit union as of June 30, 2021.
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2021 Financial Statements
Consolidated Statement of Operations As of December 31, 2021 2021
2020
47,363,503
46,713,220
2,214,766
2,049,492
49,578,269
48,762,712
4,063,025
7,506,177
277,744
105,117
4,340,769
7,611,294
45,237,500
41,151,418
3,217,171
7,895,540
42,020,329
33,255,878
Fees and charges
10,007,086
8,944,331
Other operating/non-operating income
14,094,621
12,912,259
Total Non-Interest Income
24,101,707
21,856,590
Compensation and benefits
26,793,571
25,119,414
Other expense
24,872,723
21,948,837
Total Non-Interest Expense
51,666,294
47,068,251
Net Income
14,455,742
8,044,217
Interest Income Interest on loans to members Interest on investments and cash equivalents Total Interest Income
Interest Expense Dividends on Members’ share accounts Interest on borrowed funds Total Interest Expense Net Interest Income
Provision for Loan Losses Net interest income after provision for loan losses
Non-interest Income
Non-Interest Expense
Consolidated Statement of Members’ Equity As of December 31, 2021
Balance - December 31, 2020
Regular Reserves
Undivided Earnings
Accumulated Other Comprehensive Income (Loss)
Total
5,996,721
106,770,004
107,147
112,873,872
14,455,742
-
14,455,742
-
(2,024,835)
(2,024,835)
121,225,746
(1,917,688)
125,304,779
Net Income Other Comprehensive Income Balance - December 31, 2021
5,996,721
This financial data presented in this Annual Report as of December 31, 2021 is unaudited, however, the CPA firm of CliftonLarsonAllen conducted an audit at the credit union as of June 30, 2021.
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Kenworthy Branch 9993 Kenworthy Stv East Fort Bliss Branch 20727 Constitution Ave
Zaragoza Branch 2200 N Zaragoza Rd
Pike Branch 1635 Pike Rd
North Desert Branch 5050 N. Desert Blvd William Beaumont Medical Center Branch 5005 N. Piedras St
Texas Tech Virtual Branch 137 Rick Francis St.
Follow us! @FirstLightFCU
Lee Trevino Branch 1555 N. Lee Trevino Dr
Del Rey Branch 3105 Del Rey Blvd
Lohman Branch 3791 E. Loman Ave Foster Branch 300 East Foster Rd
FirstLightFCU.org 800.351.1670