2023 Annual Member Report

BUILDING A BRIGHTER FUTURE

On behalf of our FirstLight Team and volunteers, we are pleased to provide our 2023 Annual Report. As we re ect on our journey, we are reminded of the unwavering support and trust you have placed in us, and we extend our sincerest thanks for your continued membership.

Our mission is simple yet profound: “Improve Lives. Achieve Dreams”. It is at the heart of everything we do, guiding our decisions and actions each day because we are more than a nancial institution—investing in you and our community.

We invite you to learn more about our efforts in 2023 and as always, encourage your feedback to help us build a brighter future for you and your family. FirstLight Team and Volunteers.

Federally Insured by NCUA

MEET THE TEAM

EXECUTIVE MANAGEMENT TEAM

Margie Salazar President/CEO

BOARD OF DIRECTORS

Jaime Barceleau I Board Chairperson

Renee Jimenez I Board Vice Chairperson

Joshua Orozco I Treasurer

Barbara Walker I Secretary

Jaime Medina I Board Member

Miguel Cheng-Guajardo I Board Member

Michael Hoskins I Board Member

SENIOR MANAGEMENT

Grace Munoz I SVP Talent Management

Anthony T. Walker I SVP Marketing & Community Impact

Joe Arvizu I VP Administration

Andy Atkinson I VP Payment and Digital Strategy

Scott Heck I VP Business Services

Jesus Huerta I VP Enterprise Risk Management

William Kishton I VP Mortgage

Tim Morse I VP Information Technology

Jesus Nevarez I VP Consumer Lending

Theresa Rivas I VP Retail

Carmen Sanchez I VP Virtual Delivery

SUPERVISORY COMMITTEE

Sylvia Duarte I Chairperson

Gilbert Andujo I Supervisory Member

Enrique Bernal I Supervisory Member

Marcia Heller I Supervisory Member

Richard Holt I Supervisory Member

ADVISORY BOARD

Carlos Guzman I Advisory Associate

DID YOU KNOW?

Luna answered 17,577 member web chats, handled 11,177 mobile chats and received 518,213 chats through our contact center in 2023.

Judy DeHaro Chief Lending Of cer

Jim Huff Chief Retail Of cer

Tim Vilter Chief Financial Of cer

Juan Gonzalez Chief Information Of cer

MEMBERS AND COMMUNITY FIRST A MESSAGE FROM MARGIE SALAZAR AND JAIME BARCELEAU

Let us start with a simple thank you. Thank you for the opportunity to serve our great communities—from El Paso and the Fort Bliss military installation to Las Cruces. Through the engagement and support of over 100,000 active members, along with our volunteer board and 350+ employee members who are privileged to serve you, FirstLight continues to lead the way in member service, innovation, nancial performance, and community impact.

Through unprecedented economic challenges, FirstLight continued to deliver with strong asset growth, earnings, and bene ts to our membership—making strategic investments to improve our member service platforms to expand member convenience and member access—that included our branch engagement transformation. In 2023, we began to modernize ve traditional locations to branch engagement centers, balancing the latest technology with personalized service through universal and virtual agents. We were presented with many challenges in both the building and execution of this new delivery channel. We apologize for the inconvenience that you may have experienced through this transition. Our commitment to leveraging these new engagement centers to improve member experience, convenience and access is unwavering. We have extended hours for our virtual agents from 8am to 8pm and we’re providing pathways for employees to become certi ed nancial counselors to elevate their ability to help you reach your nancial goals.

As a leading credit union in the borderland, our team and volunteers remain steadfast with our mission to “Improve lives and Achieve dreams.” We remain committed to improve our processes and systems and make meaningful investments in programs, tools, and people that deliver secure, fast, and frictionless solutions for our members—whenever, wherever, or however you wish to engage with us.

Notable achievements in 2023:

Granted 17,810 loans for $395,293,63. 14.97% were real time emergency loans helping members in their time of need.

Margie Salazar President & CEO

Introduced Zelle to bring our members a fast and easy way to send and receive money, processing over 70,000 transactions for nearly $11 million.

Through the FirstLight Rewards Program members earn points for everyday transactions and in 2023 redeemed over $3 million in rewards.

Raised over $140,000 through our Community Foundation to support student scholarships and nancial literacy efforts.

Awarded $35,000 in student scholarships to area students. Through our FirstLight Giving Program, donated more than $17,000 to mitigate food insecurity with local food banks.

We are proud to lead a community-based organization rooted locally. We are committed to improving the nancial well-being for the underbanked and underserved, our active and retired military, our students, and our small businesses. Thank you for your continued membership. Together, we will improve lives and achieve dreams.

Jaime Barceleau Board Chairperson

SUPERVISORY COMMITTEE REPORT

The Supervisory Committee oversees the protection of members’ funds and ensures policies and procedures safeguard member assets, including the accuracy of nancial records in accordance with laws and regulations. The committee consists of member representatives who focus on the integrity of FirstLight Federal Credit Union’s nancial reporting, compliance with federal regulations, and protection or members’ assets. The appointed committee accomplishes these objectives by collaborating with and monitoring FirstLight’s Internal Audit Team to ensure policies are followed to monitor and mitigate operational risk and enhance the nancial integrity of the credit union and assets of its valued members.

The Supervisory Committee is comprised of ve volunteer members appointed by the Board of Directors who carry out their work in accordance with the credit union’s bylaws and the internal audit charter. Working in an independent manner, the committee follows an audit plan that emphasizes testing of internal controls and assuring compliance with applicable laws, rules, and accounting practices. And as a member-owned cooperative, the Supervisory Committee oversees member inquiries or concerns raised by members and prepares reports, as appropriate.

All audits, reviews, and examinations conducting during the period conclude that your credit union remains nancially sound, is well-managed, and operating in compliance with federal laws, regulations, and policies. It is the opinion of your Supervisory Committee that the credit unions policies and procedures, as well as management’s practices, are sound. Such opinion is abased upon the Supervisory Committee internal audits, independent external audit, and the NCUA examination report.

The Supervisory Committee members are all volunteers and serve without compensation. Committee members include:

Sylvia Duarte, Chairperson

Gilbert Andujo, Supervisory Member

Enrique Bernal, Supervieory Member

Marcia Heller, Supervisory Member

Richard Holt, Supervisory Member

I would like to express my appreciation to the committee members who volunteer their time, as well as their broad skills and knowledge to support the credit union. Moreover, my gratitude to the internal audit department, board of directors, management, and staff, for their continued cooperation and assistance.

Sylvia Duarte Chairperson / Secretary

COMMUNITY IMPACT

SERVING LOCAL SINCE 1955.

$17,810 IN DONATIONS

FINANCIAL LITERACY WORKSHOPS

Across El Paso, TX & Las Cruces, NM. Over 3,700 participants & 85 volunteers.

$1.5 B IN ASSETS

Through FirstLight Giving Program, whereby for every funded loan, a $1 goes to local foodbanks. Through this initiative, we support both the El Pasoans Fighting Hunger and Casa de Peregrinos Food Banks.

300

BACKPACKS

300 backpacks were donated to Segundo Barrio kids, Las Cruces Migrant Program/Jardin de Los Ninos.

50,000+

COMMUNITY MEMBERS REACHED Via Business Development Outreach, & Community Engagement Events.

107,260

Sylvia Duarte Chairperson / Secretary

CREDIT UNION MEMBERS

Our commitment to improving lives, supporting businesses, and driving economic growth remains unwavering.

DID YOU KNOW?

FirstLight has earned the CDFI, Low-Income, and Minority Depository Institution Designations for our ability to provide safe, affordable nancial services to members and communities who are often unserved or underserved by nancial institutions.

3rd Annual FirstLight Community Foundation Golf Classic

Our 3rd Annual FirstLight Community Foundation Golf Classic was a great success and we were able to raise scholarship funds for local students in the El Paso and Las Cruces communities. Thank you to all our sponsors, golf players, volunteers and community members for helping us raise $137,000 for our Community Foundation!

To learn more about the FirstLight Community Foundation, visit www.FirstLightCommunityFoundation.org.

40 VOLUNTEERS TEAMWORK MAKES THE DREAM WORK!

162 REGISTERED GOLFERS HOPE YOU ALL PLAY AGAIN NEXT YEAR!

47 SPONSORS THANK YOU FOR YOUR GENEROSITY!

$137,057.00 FUNDS RAISED

In 2023, FirstLight Federal Credit Union was named Best Credit Union and Best Mortgage Lender by the Mesilla Valley Community Choice Awards. STRATEGIC

MINUTES OF THE 68th ANNUAL MEETING

OF THE FIRSTLIGHT FEDERAL CREDIT UNION

WELCOME AND CALL TO ORDER

Mr. Barceleau welcomed members of FirstLight Federal Credit Union and introduced a short video of 2022 achievements. He thanked members for their support following the video and encouraged them to follow FirstLight Federal Credit Union on social media platforms.

Ms. Judy Deharo, Chief of Lending, presented the invocation and the Pledge of Allegiance. The meeting was called to order by Mr. Jaime Barceleau, Chairman of the Board of Directors at 10:45 a.m.

II. APPOINTMENTS

The meeting was conducted in adherence with Robert’s Rules of Order. Ms. Adriana Muñiz was appointed as recording secretary.

III. INTRODUCTIONS

Mr. Barceleau introduced the current members of the Board of Directors, Supervisory Committee and Advisory Board and thanked the volunteers for their service to FirstLight Federal Credit Union. He also extended recognition to Karl Murphy, former CEO, for 38 years of service to FirstLight Federal Credit Union. Mr. Barceleau then introduced the new FirstLight Federal Credit Union President/CEO, Margie Salazar.

Ms. Salazar thanked the Board and Supervisory Committee and Advisory Board volunteers for their service to the Credit Union and introduced the Executive Of cers and Senior Management Team of the Credit Union.

IV. QUORUM

Mr.

Minutes

The minutes of the 67th Annual Meeting were presented.

A motion to approve and accept the minutes of May 18, 2022, as written, was made by Mark Thomas Bray and seconded by Andrea Desarmier. Motion carried. None opposed.

Of cial Reports and Financials

Mr. Barceleau noted the of cial reports presented in the 2022 annual report, including the chairman and president’s report, the supervisory committee’s report, and the nancial statements.

A motion was made by Kendra Bray and seconded by Barbara Alali to accept all reports as written. Motion carried. None opposed.

Mr. Barceleau then asked Ms. Salazar to provide an update of Credit Union operations to the members.

Ms. Salazar thanked the members for their valued membership and support of the Credit Union. She shared her journey to becoming CEO and some of 2022’s accomplishments, along with plans for 2023 and beyond. She highlighted that the credit union had a strong year with loan growth of $134M, deposit growth of $45M and the addition of 10,590 new members.

Ms. Salazar reassured the members that the credit union remains a strong and well capitalized nancial institution in light of the recent bank failures. She stated that the credit union is more than a nancial institution and has a mission to Improve the lives and achieve the dreams of our members. The credit union reaches out to the communities it serves in El Paso, Ft. Bliss and Las Cruces to exercise its mission along with a commitment to improving the member experience. In 2022, the credit union upgraded the automated phone system and introduced Luna (an interactive voice response system) and introduced chat and remote deposits for business members.

Barceleau con rmed 150 members present on behalf of Mr. Carlos Guzman, Treasurer of the Board of Directors.

V. PRESENTATION OF OFICIAL REPORTS

Ms. Salazar stressed that most importantly the credit union invested in cutting edge technology to modernize the branches. The goal is to combine interactive technology with the human touch and create engagement centers that enable staff to focus on the nancial wellness of the members. She shared that interactive teller and video employees will soon be available to assist members 8:00 am to 8:00 pm Monday through Friday and 9:00am to 3:00 pm on Saturdays increasing the accessibility to members. Staff will continue to be available in person to assist members and new branches will have community rooms that will be available to local organizations free of charge.

Ms. Salazar empathized with the members and staff during the transition of the new engagement centers and thanked them for their patience and loyalty. She noted that the completion of the Kenworthy branch should be in early June with the others following closely behind. In addition, renovations will begin on the North Desert branch in July and construction will begin on a new branch in Horizon. She also introduced the addition of Zelle to the credit unions services and announced the team is working to expand the ATM/ITM network with new locations.

Ms. Salazar ended by saying that FirstLight Federal Credit Union exists because of its members, and is grateful for the opportunity to serve and elevate our community.

ELECTION RESULTS

Ms. Renee Jimenez, chair of the Nominating Committee, announced the results of the Board of Directors elections to ll the vacancies of two Board positions. The following were the results:

There being two open positions for the board, Mr. Joshua Orozco and Mr. Mike Hoskins were elected to the Board.

VII. EMPLOYEES OF THE YEAR

Mr. Barceleau recognized the two employees of the year. He congratulated the member service employee of the year, Jannet Sanchez from the North Desert Branch, and Maria De Jesus Ortiz-Frausto one of the Credit Union’s Business Development Of cers for their outstanding service to members and staff.

The Executive team answered questions from the members. Mr Huff addressed a question regarding naming a branch to honor Karl Murphy.

He noted that branches will remain the same to make it easier for members. The credit union has and will continue to honor Karl Murphy and his legacy for years to come. He answered another question regarding the time frame of the remodels. Mr. Huff stated that we are trying to get them completed as soon as possible and apologized for the inconvenience. The credit union is trying to get solutions to members as soon as possible. Another question answered was if cash transactions would still be available.

Mr. Huff stated yes and that self- service transactions will also still dispense cash and coins. He added that these machines are available after hours, so they are more accessible for members.

Mr. Gonzalez answered a question the credit unions involvement with nancial literacy with schools. He highlighted the credit union has partnered with several schools and school districts locally to hold nancial literacy classes for students.

Mr. Vilter addressed growth and expansion in the credit union. He noted that the plan is to grow internally with membership and then expand to other surrounding areas in the region.

Ms. Salazar made the announcement for the Member Advisory Counsel and extended the invitation to any member wishing to join. She asked that any interested members provide their contact information to the staff volunteers at the member meeting.

VII. ADJOURNMENT

Mr. Barceleau announced the conclusion of the 68th Annual Meeting of the FirstLight Federal Credit Union.

Motion to accept adjournment of the meeting was made by Andrea Desarmier and seconded by Kendra Bray. Motion carried. None opposed.

There being no further business, the meeting adjourned at 11:11 a.m.

VI.

FINANCIAL STATEMENTS

CONSOLIDATED STATEMENT OF FINANCIAL CONDITION

As of December 31, 2023

CONSOLIDATED STATEMENT OF OPERATIONS

CONSOLIDATED STATEMENT OF MEMBERS´ EQUITY

As of December 31, 2023

ENGAGEMENT CENTERS

TEXAS

East Fort Bliss Engagement Center 20727 Constitution Ave. El Paso, TX 79918

Kenworthy Engagement Center 9993 Kenworthy St. El Paso, TX 79924

Lee Trevino Engagement Center 1555 N. Lee Trevino Dr. El Paso, TX 79936

North Desert Engagement Center 5050 N. Desert Blvd. El Paso, TX 79912

Pike Engagement Center 1635 Pike Rd. El Paso, TX 79906

Texas Tech Engagement Center 137 Rick Francis St. El Paso, TX 79905

Zaragoza Engagement Center 2200 N Zaragoza Road El Paso, TX 79938

Mills Engagement Center 2200 N Zaragoza Road El Paso, TX 79938

Darrington Engagement Center COMING SOON

NEW MEXICO

Del Rey Engagement Center 3105 Del Rey Blvd. Las Cruces, NM 88012

Foster Engagement Center 300 East Foster Rd. Las Cruces, NM 88005

Lohman Engagement Center 3791 E. Lohman Ave. Las Cruces, NM 88011