2024-11-12T15:12:04-06:00 2023-12-31 420714325 RSM US LLP 4650 EAST 53RD STREET DAVENPORT IA 528073479 990 2023-01-01 941439553 VALLEY FIRST CREDIT UNION VALL 2095498500 1005 W ORANGEBURG AVENUE MODESTO CA 95350 MARY ROBERTS CHIEF FINANCIAL OFFICER 2095498500 2024-11-12 1 0 JENIFER L CHASE P01306883 5638884000 2024-11-12 2023 2024-10-15 13:58:12Z KATHRYN DAVIS 1005 W ORANGEBURG AVENUE MODESTO CA 95350 57260903 0 X WWW.VALLEYFIRSTCU.ORG X 1949 CA PROVIDE SUPERIOR SERVICE TO OUR MEMBERS AND COMMUNITY 7 7 208 12 203368 0 0 3239444 37053937 49781547 3051516 4165506 0 0 40105453 57186497 94642 208176 0 0 12712230 15157228 0 0 0 17929136 32406365 30736008 47771769 9369445 9414728 964187226 1019297447 888224752 935538521 75962474 83758926 X WORKING TOGETHER TO PROVIDE SUPERIOR SERVICE FOR OUR MEMBERS AND COMMUNITY 0 0 AS A STATE-CHARTERED CREDIT UNION, VALLEY FIRST CREDIT UNION (THE CREDIT UNION) PROVIDES LOANS TO MEMBERS AT REDUCED INTEREST RATES AS COMPARED TO COMPETITORS. IN GENERAL, THE CREDIT CRITERIA ARE LESS STRINGENT, LOAN RATES ARE LOWER, AND A HIGHER LEVEL OF LOAN COVERAGE IS PROVIDED. AS OF 12/31/2023, THE CREDIT UNION HAD $744.7 MILLION IN OUTSTANDING LOAN BALANCES AND MORE THAN 78,000 MEMBERS. AS A COMMUNITY DEVELOPMENT FINANCIAL INSTITUTION AND A LOW INCOME DESIGNATED CREDIT UNION, VALLEY FIRST CREDIT UNION IS CHARGED WITH GENERATING ECONOMIC GROWTH AND OPPORTUNITY IN ECONOMICALLY DISADVANTAGED COMMUNITIES WITH PROGRAMS THAT INJECT NEW SOURCES OF CAPITAL INTO NEIGHBORHOODS THAT LACK ACCESS TO FINANCING. MORE THAN 60% OF OUR LOANS ARE DONE IN COMMUNITIES WHERE MORE THAN HALF OF THE HOUSEHOLDS HAVE INCOMES BELOW 60% OF THE AREA INCOME OR THE POVERTY RATE IS AT 25% OR HIGHER. 45% OF OUR TOTAL LOAN PORTFOLIO IS TO HISPANIC/LATINO BORROWERS. AT THE CORE OF OUR MISSION LIES A FIRM BELIEF IN PRIORITIZING PEOPLE OVER PROFITS AND GIVING BACK TO OUR COMMUNITIES. IN 2023, VALLEY FIRST PROVIDED OVER $201.0 MILLION IN FINANCING FOR OUR COMMUNITY, INCLUDING OVER $21.0 MILLION IN AFFORDABLE HOME LOANS FOR FAMILIES. 60% OF OUR SBA FUNDING WAS PROVIDED TO MINORITY AND WOMEN-OWNED BUSINESSES AND WE GENERATED $3.3 MILLION IN ECONOMIC DEVELOPMENT WITHIN OUR COMMUNITIES AS A RESULT OF OUR LENDING EFFORTS. VALLEY FIRST CREDIT UNION (THE CREDIT UNION) PROVIDES A SAFE PLACE FOR OUR COMMUNITY TO SAVE THEIR MONEY VIA A VARIETY OF SAVINGS AND INVESTMENT PRODUCTS/SERVICES. WE PAY HIGHER DIVIDEND RATES THAN OUR COMPETITORS AND OFFER MANY SHORT AND LONG-TERM SAVINGS OPTIONS. AT 12/31/23, THE CREDIT UNION HAD 141,281 SHARE ACCOUNTS WITH BALANCES TOTALING OVER $780,109,602. IN 2023, WE GAVE BACK $5,035,620 IN MEMBER DIVIDENDS AND $706,758 IN VARIOUS MEMBER INCENTIVES AND REWARDS AS A RESULT OF BANKING WITH US. WE ALSO WAIVED ALL FEES ON SMALL BUSINESS DEPOSIT PRODUCTS AS A WAY TO HELP OUT OUR SMALL BUSINESS COMMUNITY STILL RECOVERING FROM THE IMPACT OF COVID-19. VALLEY FIRST CREDIT UNION (THE CREDIT UNION) INVESTS SIGNIFICANT TIME AND RESOURCES TO HELP THE COMMUNITIES WE SERVE THRIVE THROUGH FINANCIAL, EDUCATIONAL, AND VOLUNTEER SUPPORT. IN 2023, THE CREDIT UNION PROVIDED FINANCIAL EDUCATION TO 4,131 MEMBERS OF OUR COMMUNITY AND REACHED OVER 300 SCHOOL-AGED CHILDREN WITH ITS YOUTH FINANCIAL EDUCATION PROGRAMS. THE CREDIT UNION ALSO PROVIDED FREE CERTIFIED FINANCIAL COUNSELOR SERVICES THAT FOCUSED ON PERSONAL FINANCE FOR THE FIRST TIME IN 2023. HELPING OUR MEMBERS MAKE SMART FINANCIAL CHOICES WITH ONLINE AND IN-PERSON SUPPORT RESULTED IN HELPING 8,891 MEMBERS MAKE AN INFORMED LOAN DECISION, 1,850 MEMBERS NAVIGATE A LOAN DEFERRAL, AND 6,613 MEMBERS INCREASE THEIR CREDIT SCORE. 0 1 1 0 0 0 0 0 0 1 1 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 1 0 1 0 1 0 0 1 0 0 0 0 0 0 0 0 0 1 8485 0 1 208 1 1 1 0 0 0 0 0 0 0 X 7 7 0 0 0 0 1 1 0 1 0 0 0 1 1 1 1 1 1 1 1 0 CA X MARY ROBERTS 2095498500 1005 W ORANGEBURG AVENUE MODESTO CA 95350 FRED CRUZ VICE CHAIR 2.00 X X 0 0 0 PATTI GILLIHAN SECRETARY AND TREASURER 2.00 X X 0 0 0 GARY HALL DIRECTOR 1.00 X 0 0 0 TOM KANE DIRECTOR 2.00 X 0 0 0 CHRIS PETERSON CHAIR 2.00 X X 0 0 0 JOHN SCHNEIDER DIRECTOR 2.00 X 0 0 0 TAMRA SPADE DIRECTOR 1.00 X 0 0 0 KATHRYN DAVIS PRESIDENT & CEO 50.00 X 661885 0 62421 TODD MCCOY CHIEF FINANCIAL OFFICER 45.00 X 212464 0 33554 COURTNAY LYNCH VP, PEOPLE & CULTURE 50.00 X 176756 0 32949 CHRIS HEWITT VP, OPS & DIGITAL STRATEGY 45.00 X 212041 0 38927 PAUL EMANUELS VP, LENDING 45.00 X 195993 0 18990 ANDREA BROOKS CHIEF RISK OFFICER 50.00 X 197619 0 33152 CHRIS BRAUN VP, PAYMENTS 45.00 X 211274 0 42876 BYRON MILLER VP, TECHNOLOGY 45.00 X 206014 0 32710 RAYMOND MCCASLIN VP, COMMERCIAL BANKING 45.00 X 172829 0 31265 UNJI FROMMOETHELYDO SR NETWORK ENGINEER 40.00 X 130179 0 15570 2377054 0 342414 13 0 1 0 PRESIDIO NETWORKED SOLUTIONS GROUP LLC 12100 SUNSET HILLS ROAD SUITE 300 RESTON VA 20190 INTEL PROCESSOR, DATA MIGRATION 1458535 Q2 SOFTWARE INC 10355 PECAN PARK BOULEVARD AUSTIN TX 78729 HOME BANKING 806238 JACK HENRY & ASSOCIATES INC PO BOX 609 MONETT MO 65708 CORE SYSTEM 763741 FINANCIAL TECH SOLUTIONS INTERNATIONAL ( 406 EAST HUNTINGTON DRIVE SUITE 10 MOROVIA CA 91016 ATM AND BRANCH SERVICES 695801 CHRISTIE POWELL 7652 BRIDGEVIEW DR SACRAMENTO CA 95831 ADMIN BUILDING REMODEL 156000 32 3239444 3239444 INTEREST FROM LOANS 522100 37456776 37456776 FEES & CHARGES 522100 6482102 6278734 203368 MERCHANT CARD & OTHER NETWORK INC 522100 3912073 3912073 OTHER NONINTEREST INCOME 522100 1930596 1930596 49781547 4165892 4165892 74020 74406 -386 -386 -386 57186497 49578179 203368 4165506 208176 1645980 44063 9654140 831256 2112250 869539 182629 360716 2563508 1443386 2709200 2664688 1682868 329064 2557994 142974 DIVIDENDS PAID TO MEMBE 10258067 PROVISION FOR LOAN LOSS 6445734 LOAN/BANKING SERVICES 910934 ASSOCIATION DUES 81033 73570 47771769 13610938 42520324 20085013 33523309 1862756 15719779 12400045 12478200 718449303 734651567 2339266 2579765 39874403 24615254 13419673 15259149 152907988 145921542 29112244 16643812 964187226 1019297447 12371389 16006798 81000000 118000000 794853363 801531723 888224752 935538521 X 0 0 0 0 75962474 83758926 75962474 83758926 964187226 1019297447 X 9414728 1656974 -3275250 X X 0 1 X 1 0 RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 8539 8539 8539 1 CALIFORNIA CREDIT UNION LEAGUE 1201 K STREET SUITE 1050 SACRAMENTO CA 95814 910357265 8539 0 PART I-A, LINE 1: VALLEY FIRST CREDIT UNION MAKES FINANCIAL CONTRIBUTIONS TO CALIFORNIA CREDIT UNION LEAGUE PAC TO SUPPORT CREDIT UNION ISSUES. 1754982 1754982 6384240 3124900 3259340 10016554 6665870 3350684 20728701 14824484 5904217 989926 989926 15259149 AVAILABLE FOR SALE SECURITIES 134991604 F HELD-TO-MATURITY DEBT SECURITIES 6494000 F OTHER SECURITIES 4435938 F 145921542 MEMBER SHARES 801531723 801531723 X 57186497 0 57186497 0 57186497 47771769 0 47771769 0 47771769 PART X, LINE 2: VALLEY FIRST CREDIT UNION (THE CREDIT UNION) IS EXEMPT, BY STATUTE, FROM FEDERAL INCOME TAXES. FASB ASC TOPIC 740, INCOME TAXES, PROVIDES GUIDANCE FOR HOW UNCERTAIN TAX POSITIONS SHOULD BE RECOGNIZED, MEASURED, DISCLOSED AND PRESENTED IN THE FINANCIAL STATEMENTS. THIS REQUIRES THE EVALUATION OF TAX POSITIONS TAKEN OR EXPECTED TO BE TAKEN BY THE CREDIT UNION, WHICH DETERMINE WHETHER THE TAX POSITIONS ARE MORE LIKELY THAN NOT TO BE SUSTAINED "WHEN CHALLENGED OR "WHEN EXAMINED" BY THE APPLICABLE TAX AUTHORITY. TAX POSITIONS NOT DEEMED TO MEET THE MORE-LIKELY-THAN-NOT THRESHOLD WOULD BE RECORDED AS TAX EXPENSE AND LIABILITY IN THE CURRENT YEAR. AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022, MANAGEMENT HAD DETERMINED THAT THERE WERE NO MATERIAL UNCERTAIN TAX POSITIONS REQUIRING RECOGNITION IN THE FINANCIAL STATEMENTS. 1 CENTRAL VALLEY HISPANIC CHAMBER OF COMMERCE PO BOX 3113 MODESTO CA 95353 943327906 501(C)(6) 8000 0 GENERAL SUPPORT CITY MINISTRY NETWORK 820 H STREET 2 MODESTO CA 95354 260100683 501(C)(3) 17500 0 GENERAL SUPPORT CLOVIS RODEO ASSOCIATION PO BOX 445 CLOVIS CA 93613 454149661 501(C)(3) 5200 0 GENERAL SUPPORT OPPORTUNITY STANISLAUS 1625 I STREET MODESTO CA 95354 205186517 501(C)(3) 25000 0 GENERAL SUPPORT TRACY CITY CENTER ASSOCIATION 17 E 6TH STREET TRACY CA 95376 371605304 501(C)(3) 15000 0 GENERAL SUPPORT MODESTO CHILDRENS MUSEUM 928 11ST STREET MODESTO CA 95354 842442152 501(C)(3) 50000 0 GENERAL SUPPORT STANISLAUS COMMUNITY FOUNDATION 100 SYCAMORE AVE 200 MODESTO CA 95354 680483054 501(C)(3) 6000 0 GENERAL SUPPORT UNITED WAY OF STANISLAUS COUNTY PO BOX 3066 MODESTO CA 95353 941212129 501(C)(3) 5753 0 GENERAL SUPPORT 7 1 PART I, LINE 2: VALLEY FIRST CREDIT UNION ISSUES FUNDS TO ORGANIZATIONS TO BE USED AT THEIR DISCRETION. X 1 1 X X X X 0 0 0 KATHRYN DAVIS PRESIDENT & CEO 498462 0 142600 0 20823 0 30000 0 32421 0 724306 0 0 0 CHRIS BRAUN VP, PAYMENTS 187711 0 22734 0 829 0 10314 0 32562 0 254150 0 0 0 CHRIS HEWITT VP, OPS & DIGITAL STRATEGY 172890 0 32348 0 6803 0 9164 0 29763 0 250968 0 0 0 TODD MCCOY CHIEF FINANCIAL OFFICER 201799 0 10000 0 665 0 10690 0 22864 0 246018 0 0 0 BYRON MILLER VP, TECHNOLOGY 177681 0 22539 0 5794 0 0 0 32710 0 238724 0 0 0 ANDREA BROOKS CHIEF RISK OFFICER 189329 0 110 0 8180 0 9833 0 23319 0 230771 0 0 0 PAUL EMANUELS VP, LENDING 166860 0 22430 0 6703 0 9715 0 9275 0 214983 0 0 0 COURTNAY LYNCH VP, PEOPLE & CULTURE 151243 0 22205 0 3308 0 8171 0 24778 0 209705 0 0 0 RAYMOND MCCASLIN VP, COMMERCIAL BANKING 149316 0 16788 0 6725 0 1813 0 29452 0 204094 0 0 0 PART I, LINE 1A IN 2023, VALLEY FIRST CREDIT UNION PROVIDED SOCIAL CLUB DUES TO KATHRYN DAVIS TO DISCUSS ISSUES WITH MEMBERS, STAFF, AND PEERS. THE AMOUNTS PAID FOR SOCIAL DUES ARE NOT INCLUDED IN REPORTABLE COMPENSATION. KATHRYN DAVIS OFFICER COLLATERAL ASSIGNED SPLIT-DOLLAR LIFE INSURANCE POLICY X 12300000 12478200 0 1 1 12478200 KYLE HEWITT FAMILY MEMBER OF CHRIS HEWITT 44063 COMPENSATION 0 FORM 990, PART VI, SECTION A, LINE 6 VALLEY FIRST CREDIT UNION HAS MEMBERS AS SPECIFIED IN ITS BYLAWS. FORM 990, PART VI, SECTION A, LINE 7A VALLEY FIRST CREDIT UNION MEMBERS HAVE THE POWER TO ELECT THE MEMBERS OF THE GOVERNING BODY. FORM 990, PART VI, SECTION A, LINE 8B VALLEY FIRST CREDIT UNION DOES NOT HAVE COMMITTEES WITH AUTHORITY TO ACT ON BEHALF OF THE GOVERNING BODY. FORM 990, PART VI, SECTION B, LINE 11B THE COMPLETED FORM 990 IS REVIEWED BY THE CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER. A COPY IS ALSO PROVIDED TO THE BOARD OF DIRECTORS PRIOR TO FILING WITH THE INTERNAL REVENUE SERVICE. FORM 990, PART VI, SECTION B, LINE 12C VALLEY FIRST CREDIT UNION'S CONFLICT OF INTEREST POLICY IS DIRECTED AT THE VALLEY FIRST CREDIT UNION BOARD OF DIRECTORS, SUPERVISORY COMMITTEE, VALLEY FIRST CREDIT UNION VOLUNTEERS, AND EMPLOYEES. A CONFLICT OF INTEREST OCCURS WHEN A MEMBER'S PERSONAL INTEREST INTERFERES, OR APPEARS TO INTERFERE, WITH THE INTERESTS OF THE CREDIT UNION. IN CONNECTION WITH ANY POTENTIAL CONFLICT, THE BOARD, WITH THE ABSTENTION OR ABSENCE OF THE MEMBER, WILL DECIDE WHETHER THAT MEMBER MAY PARTICIPATE IN ANY REPORTING OR DISCUSSION ON THE ISSUE THAT GAVE RISE TO THE CONFLICT OF INTEREST. THE BOARD SHALL WITHHOLD ANY INFORMATION ON SUCH ISSUES FROM THE BOARD MATERIALS DISTRIBUTED TO THE APPLICABLE MEMBER AND TAKE ALL SUCH OTHER ACTION NECESSARY TO EFFECTUATE THIS POLICY. ALL DECISIONS REGARDING SUCH MATTERS REQUIRE THAT A QUORUM OF THE BOARD OF DIRECTORS BE PRESENT FOR RATIFICATION. ANY MEMBER WITH SUCH AN ACTUAL OR POTENTIAL CONFLICT OF INTEREST SHALL RECUSE HIMSELF OR HERSELF FROM ANY REPORTING, DISCUSSIONS, AND VOTE ON THE ISSUE THAT GAVE RISE TO THE CONFLICT AND, IF NECESSARY, FROM THE BOARD MEETING, OR APPLICABLE PART THEREOF. ON AN ANNUAL BASIS ALL DIRECTORS OR TRUSTEES, AND KEY EMPLOYEES ARE REQUIRED TO DISCLOSE INTERESTS THAT COULD GIVE RISE TO CONFLICTS BY SIGNING THE CONFLICT OF INTEREST POLICY. FORM 990, PART VI, SECTION B, LINE 15 VALLEY FIRST CREDIT UNION'S EXECUTIVE COMPENSATION COMMITTEE HAS RETAINED D. HILTON ASSOCIATES AS ITS COMPENSATION CONSULTANT TO ADVISE THE EXECUTIVE COMPENSATION COMMITTEE ON MARKET PRACTICES AND SPECIFIC CREDIT UNION POLICIES AND PROGRAMS. D. HILTON ASSOCIATES PERFORMS THE FOLLOWING ACTIVITIES IN DETERMINING CHIEF EXECUTIVE OFFICER AND OTHER KEY EMPLOYEES COMPENSATION OF THE ORGANIZATION. D. HILTON REPORTS DIRECTLY TO THE COMPENSATION COMMITTEE CHAIRMAN AND TAKES DIRECTION FROM THE COMMITTEE ON PRESIDENT/CHIEF EXECUTIVE OFFICER AND KEY EMPLOYEE EXECUTIVE COMPENSATION MATTERS. THE CONSULTANT'S WORK FOR THE COMMITTEE INCLUDES COMPARABLE COMPENSATION DATA ANALYSES, MARKET ASSESSMENTS, AND PREPARATION OF RELATED REPORTS. THE WORK DONE BY D. HILTON ASSOCIATES FOR THE COMMITTEE IS DOCUMENTED IN A FORMAL AGREEMENT THAT IS EXECUTED BY THE CONSULTANT AND THE COMMITTEE. THE LAST TIME THIS PROCESS OCCURRED WAS IN MARCH 2024. FORM 990, PART VI, SECTION C, LINE 19 VALLEY FIRST CREDIT UNION MAKES ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND AUDITED FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC UPON REQUEST IN THE SAME TIME AND MANNER AS OTHER DISCLOSURES REQUIRED UNDER INTERNAL REVENUE CODE SECTION 6104. FORM 990, PART XI, LINE 9: CURRENT EXPECTED CREDIT LOSS IMPLEMENTATION -3,275,250. FORM 990, PART XII, LINE 2C: THE OVERSIGHT AND SELECTION PROCESS HAS NOT CHANGED FROM THE PRIOR TAX YEAR.