2023-11-15T11:44:06-06:00 2022-12-31 420714325 RSM US LLP 4650 EAST 53RD STREET DAVENPORT IA 528073479 990 2022-01-01 941439553 VALLEY FIRST CREDIT UNION VALL 2095498500 1005 W ORANGEBURG AVENUE MODESTO CA 95350 TODD MCCOY CHIEF FINANCIAL OFFICER 2095498500 2023-11-14 1 TODD MCCOY 999009999 0 JENIFER L CHASE P01306883 5638884000 2023-11-14 2 AAL1 IAL1 2022 2023-04-26 12:10:37Z KATHRYN DAVIS 1005 W ORANGEBURG AVENUE MODESTO CA 95350 41583133 0 X WWW.VALLEYFIRSTCU.ORG X 1956 CA PROVIDE SUPERIOR SERVICE TO OUR MEMBERS AND COMMUNITY 7 7 201 12 114722 0 0 0 32695866 37053937 801717 3051516 0 0 33497583 40105453 177444 94642 0 0 10813382 12712230 0 0 0 14353022 17929136 25343848 30736008 8153735 9369445 895204166 964187226 817121086 888224752 78083080 75962474 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 IS LESS STRINGENT, LOAN RATES ARE LOWER, AND A HIGHER LEVEL OF LOAN COVERAGE IS PROVIDED. AS OF 12/31/2022, THE CREDIT UNION HAD $730,849,349 IN OUTSTANDING LOAN BALANCES AND MORE THAN 80,000 MEMBERS. AS A COMMUNITY DEVELOPMENT FINANCIAL INSTITUTION, 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. IN 2022, WE RECEIVED THE LOW-INCOME DESIGNATION, WHICH EXPANDS ACCESS TO CAPITAL FOR SMALL BUSINESSES AND OTHERS WHO HAVE BEEN UNDERSERVED IN LOW-INCOME COMMUNITIES. 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 BORROWERS. VALLEY FIRST CREDIT UNION (THE CREDIT UNION )PROVIDES SAVINGS ACCOUNT PRODUCTS THAT ARE OF GREATER BENEFIT TO MEMBERS AS COMPARED TO COMPETITORS. VALLEY FIRST CREDIT UNION PAYS HIGHER DIVIDEND RATES FOR COMPARABLE SAVINGS PRODUCTS. AT 12/31/2022 THE CREDIT UNION HAD OVER 90,000 SHARE ACCOUNTS WITH BALANCES TOTALING MORE THAN $795,000,000. IN 2022, WE GAVE BACK MORE THAN $431,000 IN VARIOUS FINANCIAL PRODUCTS TO OUR MEMBERS. WE EXPANDED OUR SMALL BUSINESS BANKING PROGRAM WITH NEW PRODUCTS AND SERVICES TO HELP FILL A MUCH-NEEDED CREDIT GAP IN OUR COMMUNITY. VALLEY FIRST CREDIT UNION ALSO OPENED A SMALL BUSINESS DEVELOPMENT CENTER IN OUR TURLOCK BRANCH TO CONNECT LOCAL ENTREPRENEURS WITH RESOURCES. THE CREDIT UNION ALSO PROVIDED FINANCIAL EDUCATION TO 2,571 PEOPLE IN OUR COMMUNITY. VALLEY FIRST CREDIT UNION PROVIDES CHECKING ACCOUNT PRODUCTS THAT ARE OF GREATER BENEFIT TO MEMBERS, AS COMPARED TO ITS COMPETITORS. SEVERAL TYPES OF CHECKING ACCOUNTS ARE OFFERED, FROM FREE CHECKING TO OUR PURPLE CHECKING PRODUCT, WHICH PROVIDES MEMBERS THE ABILITY TO HAVE NO SERVICE FEES, ATM REIMBURSEMENTS AND OFFERS CASH BACK ON PURCHASES. VALLEY FIRST CREDIT UNION LAUNCHED SMALL DOLLAR LOANS (PURPLE ADVANCE AND QUICK LOANS) TO HELP MEMBERS AVOID GOING TO CHECK CASHERS AND PAYDAY LENDERS. EMPLOYEES OF THE CREDIT UNION DONATED 1,115 HOURS VOLUNTEERING AT LOCAL NON-PROFIT ORGANIZATIONS, AND THE CREDIT UNION DONATED OVER $97,000 TO THOSE NON-PROFITS, AS WELL. 0 0 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 6642 0 1 201 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 X TODD MCCOY 2095498500 1005 W ORANGEBURG AVENUE MODESTO CA 95350 FRED CRUZ VICE CHAIR 2.00 X X 0 0 0 PATRICK DODD FORMER TREASURER 1.00 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 AND CHIEF EXECUTIVE OFFICER 50.00 X 592931 0 42957 TODD MCCOY CHIEF FINANCIAL OFFICER 50.00 X 202821 0 25959 PAUL EMANUELS VP LENDING 50.00 X 193667 0 33025 COURTNAY LYNCH VP PEOPLE AND CULTURE 50.00 X 182397 0 28569 CHRIS HEWITT VP OPERATIONS AND DIGITAL STRATEGY 50.00 X 194134 0 38954 BYRON MILLER VP TECHNOLOGY 50.00 X 191454 0 38334 CHRIS BRAUN VP PAYMENTS 50.00 X 193158 0 36128 RAYMOND MCCASLIN VP COMMERCIAL BANKING 50.00 X 122284 0 12038 1872846 0 255964 8 0 1 0 JACK HENRY & ASSOCIATES INC PO BOX 609 MONETT MT 65708 CORE SYSTEM 1127458 PRESIDIO NETWORKED SOLUTIONS GROUP LLC 12100 SUNSET HILLS ROAD SUITE 300 RESTON VA 20190 INTEL PROCESSOR, DATA MIGRATION 1094664 CHRISTIE POWELL 7652 BRIDGEVIEW DR SACRAMENTO CA 95831 ADMIN BUILDING REMODEL 831143 Q2 SOFTWARE INC 10355 PECAN PARK BOULEVARD AUSTIN TX 78729 HOME BANKING 681700 FINANCIAL TECH SOLUTIONS INTERNATIONAL ( 406 EAST HUNTINGTON DRIVE SUITE 10 MOROVIA CA 91016 ATM AND BRANCH SERVICES 656461 28 INTEREST FROM LOANS 522100 25394325 25394325 FEES & CHARGES 522100 6137949 6023227 114722 MERCHANT CARD & OTHER NETWORK INC 522100 3922355 3922355 OTHER NONINTEREST INCOME 522100 1599308 1599308 37053937 2731306 2731306 1797890 1477680 320210 320210 320210 40105453 36939215 114722 3051516 94642 1535412 40086 8442717 689092 1210494 794429 273980 244997 2409880 1269436 2262274 1794090 1698174 286824 2180210 130439 PROVISION FOR LOAN LOSS 2572436 DIVIDENDS PAID TO MEMBE 2073338 LOAN/BANKING SERVICES 593831 ASSOCIATION DUES 78567 60660 30736008 35459697 13610938 148611837 20085013 15240947 1862756 0 12400045 529532574 718449303 3078694 2339266 35533958 22114285 12094398 13419673 122822113 152907988 28363906 29112244 895204166 964187226 9568791 12371389 0 81000000 807552295 794853363 817121086 888224752 X 0 0 0 0 78083080 75962474 78083080 75962474 895204166 964187226 9369445 -11490051 0 X X 0 1 X 1 0 7535 7535 7535 0 CALIFORNIA CREDIT UNION LEAGUE 1201 K STREET SUITE 1050 SACRAMENTO CA 95814 910357265 7535 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 2986209 3398031 8931759 6157604 2774155 17684731 12970472 4714259 778246 778246 13419673 AVAILABLE FOR SALE SECURITIES 141851216 F HELD-TO-MATURITY DEBT SECURITIES 7241000 F OTHER SECURITIES 3815772 F 152907988 MEMBER SHARES 794853363 794853363 X 40105453 0 40105453 0 40105453 30736008 0 30736008 0 30736008 PART X, LINE 2: VALLEY FIRST 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, 2022 AND 2021, MANAGEMENT HAD DETERMINED THAT THERE WERE NO MATERIAL UNCERTAIN TAX POSITIONS REQUIRING RECOGNITION IN THE FINANCIAL STATEMENTS. 1 OPPORTUNITY STANISLAUS 1625 I STREET MODESTO CA 95350 205186517 501(C)(3) 34583 0 PROGRAM SUPPORT UNITED WAY OF STANISLAUS CO PO BOX 3066 MODESTO CA 95350 941212129 501(C)(3) 5169 0 SUPPORT OUR COMMUNITY THROUGH A PARTNERSHIP WITH UNITED WAY STANISLAUS COMMUNITY FOUNDATION 100 SYCAMORE AVE 200 MODESTO CA 95350 680483054 501(C)(3) 10000 0 PROGRAM AND ENDOWMENT SUPPORT 3 0 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 1 0 KATHRYN DAVIS PRESIDENT AND CHIEF EXECUTIVE OFFICE 493254 0 97335 0 2342 0 15250 0 27707 0 635888 0 0 0 CHRIS HEWITT VP OPERATIONS AND DIGITAL STRATEGY 168430 0 25000 0 704 0 8397 0 30557 0 233088 0 0 0 BYRON MILLER VP TECHNOLOGY 177934 0 13000 0 520 0 5627 0 32707 0 229788 0 0 0 CHRIS BRAUN VP PAYMENTS 184092 0 8500 0 566 0 8421 0 27707 0 229286 0 0 0 TODD MCCOY CHIEF FINANCIAL OFFICER 196908 0 5500 0 413 0 7203 0 18756 0 228780 0 0 0 PAUL EMANUELS VP LENDING 177285 0 15000 0 1382 0 24663 0 8362 0 226692 0 0 0 COURTNAY LYNCH VP PEOPLE AND CULTURE 158138 0 23000 0 1259 0 8040 0 20529 0 210966 0 0 0 PART I, LINE 1A IN 2022, 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. PART I, LINE 4B PAUL EMMANUELS, VP LENDING, BEGAN PARTICIPATING IN A SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN IN JULY 2007. THE TOTAL 2022 EMPLOYER CONTRIBUTIONS INTO THE PLAN ON BEHALF OF THE INDIVIDUAL IN THE AMOUNT OF $16,000 IS REPORTED AS DEFERRED COMPENSATION ON FORM 990, PART VII AND SCHEDULE J, PART II. KATHRYN DAVIS OFFICER COLLATERAL ASSIGNED SPLIT DOLLAR LIFE INSURANCE POLICY X 12300000 12400045 0 1 1 12400045 KYLE HEWITT FAMILY MEMBER OF CHRIS HEWITT 40086 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 2023. 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 XII, LINE 2C: THE OVERSIGHT AND SELECTION PROCESS HAS NOT CHANGED FROM THE PRIOR TAX YEAR.