2019 annual report

65 years of safety + soundness

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65 years of safety and soundness

For 65 years, we’ve promised to keep your money Safe and Sound. Thanks to your constant support, we’re keeping our promise—and then some. Our loyal members enjoy easy access to their money and our focus to help improve their spending power.

It’s your money. We’ve always given our members quick, easy access to their hard-earned cash. No delay, no hassle.

As you know, FCCU is better than a bank. That’s why we pay you more in dividends than banks and other credit unions.

In 2019, shareholders earned a loyalty dividend of $2,539,288.45. You’ve shown us your loyalty, and we’ve always loved returning the favor.

we put our money where our mouth is

access your money anytime

Dividends—You earned ’em!

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65 years of safety and soundness

Unite with your community

Our loyal members are the reasonfor FCCU’s success. And our successmeans your success. You trusted us with your hard-earned cash and we provided over $62,000,000 in loans in 2019.

Our local community has collabo-rated with us since our inception. By coming together with a common goal of building our financial future, we can all prosper.

From the friendly voices you hear on the phone to the Member Service Representatives who greet you when you walk in, our staff is dedicated to meeting your needs and helping you achieve your financial goals.

our members our partners our personnel

65 years of safety and soundness

Financial Center Credit Union is committed to providing credit where credit is due so that we can return true value to our mem-ber/shareholders all while maintaining the credit union’s safety and soundness.

For 65 years, Financial Center Credit Union has operated under six core values: accountability, simplicity, egalitarian, family, fun, and safety and soundness. Under these six principles, the credit union continues to thrive as an institution where member/shareholders can count on the diligence of FCCU’s stewardship and guidance on the trajectory of the cooperative.

we take our mission seriously

core values

our mission

accountabilitysimplicity egalitarianfamilyfunsafety + soundness

65 years of safety and soundness

In 2019 we enrolled more members with myBURT, providing round-the-clock access to their funds. While keeping our safety and security focus, Financial Center also continued to place a high priority on bringing member/shareholders return on their investment in 2019. This was demonstrated when we paid more than any local competitor, once again offering the highest return on savings throughout San Joaquin County. We also continued to provide members with the financing they needed to see their dreams come true. In fact, we were able to grant 5,712 loans, giving our shareholders credit where credit was due.

FCCU is a second-generation credit union, and we are always preparing for the next generation and beyond. We’ll continue to provide you with the banking services you need, and we encourage you to keep banking on us.

As you continue to utilize our products and services, we will continue to give back to our cooperative and the greater community. When you choose to partner with us, you help the Credit Union thrive. It is because of that support that your family, friends, and community will always be taken care of at Financial Center Credit Union.

May 21st at 6:00PMMain Office 18 S. Center St. in Stockton

building a better future

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65 years of safety and soundness

We have always prided ourselves in fueling our local economy. In 2019, we gave back to our local community with over $150,000 in direct donations.

Making access to money easy and fun for our members and our community—that’s what makes FCCU better than a bank.

We keep your money safe—because you earned it! You know you can count on us. After all, we’ve been doing our thing for 65 years. Cha-ching!

fostering community

the bottom line

65 years of safety and soundness

Financial Center Credit Union remained safe and strong while reinvesting over $150,000 in our community throughout 2019. We kept our focus on our member/ shareholders, providing the service and support that was needed to keep money safe, all while providing the benefits that come with banking local. It was our goal to get you the money you need while providing a trusted spot for your hard earned savings.

Safety was in the forefront of our actions throughout the year. We sought to keep your deposits safe through efficient operations and smart decision making, and the results show that we accomplished that goal. We retain nearly 19.84% in capital and reserves, putting us once again in the 99th percentile of large credit unions in the United States, according to data collected by the NCUA. This feat was recognized by three independent bank research firms: Bauer Financial, BankRate. com, and DepositAccounts.com. Bauer Financial once again awarded Financial Center their 5 star rating, marking the 26th consecutive year of earning their highest marks. BankRate. com also continued to rank FCCU among the safest credit unions based in San Joaquin County. The third was DepositAccounts.com, which awarded an A+ mark

to the Credit Union, ranking us in the top 25 of all financial institutions among all credit unions in the US who received the top mark. Financial Center has not only accomplished its member mission over the years; it has also made an impact on the greater community. We take pride in these efforts, investing time in training our staff and acquiring the audit services of independent firms to ensure we are doing all that we can to keep your money safe.

The Board of Directors sincerely thanks you for continuing to bank with the Credit Union. Your continued trust and investment in the cooperative is the true indicator of the success of our actions, and it’s through this support that we are able to make your fellow member/shareholders’ dreams come true. We look forward to the continuation of our focus on safety and soundness in 2020.

For 65 years, we’ve put you and your family first—and we’ll continue to do so in the future.

Michael P. DuffyPresident & CEO

Manuel LopezChairman of the Board

a message from the president and our board

65 years of safety and soundness

records and deemed Financial Center stable and secure for future growth. The 2019 McGladrey & Pullen CPA audit and our 26th consecutive year of Bauer 5-star rating substantiated Financial Center’s exceptional fiscal soundness.

This positive outcome is a direct result of the Board of Directors’ and President/CEO’s stellar leadership and vigilant management. We also thank our volunteers, management, and staff for their commitment to service and accuracy. This commitment helps the Credit Union to prosper and maintain financial soundness for its member/shareholders.

Edward Figueroa Chairman

Every year, Financial Center Credit Union’s Audit Committee is trusted with the important task of overseeing the Credit Union’s records and accounting policies. The Committee works closely with Financial Center Credit Union’s staff and the Board of Directors to ensure policies and procedures are properly implemented.

We are pleased to report that your funds at Financial Center are safe, and your Credit Union is financially poised and prepared for future progress. As an additional safety measure, the Audit Committee, with the enlisted help of an independent accounting firm, conducted a meticulous evaluation of our

Supervisory report

65 years of safety and soundness

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ls2017 2018 2019

IncomeInterest on Loans 11,347,896 10,910,615 9,865,999

Interest on VISA 1,665,632 1,686,683 1,707,797

Investment Income 4,166,027 6,353,702 7,288,399

Miscellaneous 5,587,731 5,630,046 5,738,129

Total Income 22,767,286 24,581,046 24,600,325

ExpenseDividends 1,911,435 1,999,109 2,002,252

Net Extraordinary Dividends 1,650,014 2,163,402 1,783,475

Other Expenses 15,622,191 15,702,714 17,319,908

Total Operating Expense 19,183,639 19,865,225 21,105,634

AssetsLoans 173,352,850 167,871,745 158,411,213

Cash & Investments 297,233,052 315,623,667 346,962,580

Furniture & Equipment 902,822 709,081 990,696

Land & Building 7,071,576 6,696,466 6,664,540

Other Assets 5,470,186 5,716,864 5,864,114

Total Assets 484,030,485 496,617,823 518,893,143

Liabilities & Members’ EquityMember Shares 379,399,808 390,847,618 402,649,762

Other Liabilities 11,553,621 10,211,796 11,447,659

Reserves 17,228,135 14,708,919 19,795,641

Undivided Earnings 75,848,921 80,849,490 85,000,080

Total Liabilities/Equity 484,030,485 496,617,823 518,893,143