As a credit union, we're here for our local community. Providing the best financial services, education and customer service is just the start! You can catch us all throughout our 7-county footprint: foodbanks, parades, fairs, chili cook-offs, and more. We don't just talk the talk, we walk the walk!
Take a look through our 2025 Annual Report to see what we've been up to and how we've be doing the past year.
As we formally say farewell to 2025 and move forward in 2026, I want to take a moment to reflect on what has been of notable growth for Community First Credit Union. The past year brought meaningful progress on our key initiatives, culminating in the successful execution of our welcoming of new members in southern Humboldt County and the completion of the merger of Vocality Community Credit Union with Community First.
Despite a complex and volatile operating environment, we delivered strong financial performance and continued to build a stronger and more resilient credit union for the future. None of this would have been possible without the dedication of our team and the continued trust of our members.
The Economic Landscape and Industry Outlook
Heading into 2025, expectations for interest rate cuts were modest. While we anticipated modest movement, the Federal Reserve ultimately implemented three rate cuts totaling 75 basis points late in the year. While these actions steepened the yield curve and resulted in a more normalized shape, the changes were more pronounced in the short to intermediate sections of the curve.
Short-term rates declined more meaningfully, while longer-term rates that impact mortgage financing costs dipped more modestly. Mortgage activity continued to face headwinds driven by affordability challenges, elevated home prices, and inventory. These dynamics remain largely unchanged as we enter 2026.
Auto lending faced similar affordability pressures. While rates improved slightly, vehicle prices and related costs of ownership remain at historically high levels. Longer auto loan terms have become more prevalent, reflecting the broader affordability challenge faced by consumers. Inflation moderated modestly during the year, while unemployment increased slightly, leaving monetary policymakers in a difficult position as they balance economic growth with price stability. Ongoing geopolitical tensions and fiscal policy uncertainty continue to contribute to a highly volatile operating environment.
In this environment, our approach remains consistent. Stay disciplined, continue to invest in our members and communities, prudently manage the balance sheet, and focus on long- term value for our members.
2025 Financial Performance
2025 was a strong year financially for Community First Credit Union. We ended the year with total assets of approximately $915 million and net income of $4.83 million. Return on Assets finished at 0.56%, significantly exceeding our original budget expectations. Net interest income performed well above plan, driven by strategic asset deployment.
We made substantial progress in rebalancing the loan portfolio, reducing our concentration in auto loans from 56.8% at the end of 2024 to 43% at the end of 2025, while increasing diversification across other lending categories.
Funding costs improved over the course of the year as deposit pricing normalized. Non-interest income improved to $8.7 million and operating expenses finished right on plan at $35 million despite one-time non-recurring costs associated with the merger. Importantly, our regulatory capital position strengthened significantly, improving to 9.73%, enhancing our fiscal durability for the future.
Overall, 2025 was a year of strong growth and disciplined financial execution.
Strategic Highlights and Execution
Beyond financial performance, the most significant milestone for 2025 was the successful completion of the merger of Vocality Community Credit Union with Community First. This was a complex undertaking that required rigorous coordination across the entire organization.
The integration was executed very adeptly and seamlessly due to the outstanding work of our team. The benefits of greater scale, expanded membership, and broader geographic reach in the North Bay are already evident.
I’ll note a few of the other key initiatives we completed in 2025:
Additionally, we increased our commitment to community impact, including record charitable contributions to support local philanthropy in our communities.
These efforts reflect a continued commitment to building a stronger credit union for our members and communities.
Looking Ahead to 2026 and Beyond
As we move forward in 2026, the operating environment remains highly volatile and uncertain due to a number of factors, including heightened domestic and geo-political tension. Community First will continue to focus our commitment on our members and communities as a trusted local cooperative in the North Bay.
I’ll note some of the key initiatives we have planned for 2026.
Closing
As we look forward, I want to thank our team members for their hard work and commitment, our Board and Supervisory Committee for their leadership, and most of all our members for their continued trust in Community First. Your trust allows us to remain “Here For Good” and “Here for You” and all the communities we call home.
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2025 saw the official date of the Community First Credit Union and Vocality Community Credit Union merger, with accounts officially merging systems on June 1. This merger represents more than just growth; it’s a powerful step forward that unites two credit unions committed to enhancing member experience, expanding services, and maximizing community impact.
The addition of Vocality Community Credit Union bolstered CFCU's membership to over 70,000, with total assets now nearing $1 billion! This positions Community First in the top 11% of largest credit unions across the nation. Along with our new CFCU members, we've also gained 2 new branches and new counties, Trinity and Humboldt, to expand our reach to, as well as 30+ talented team members.
As we grow, we remain committed to providing our communities with the best service, products, and tech, while prioritizing the community involvement and cooperative spirit that has always defined Community First Credit Union.
As a credit union, we're here for our local community. Providing the best financial services, education and customer service is just the start!
Giving Tuesday is a global movement held the Tuesday after Thanksgiving that encourages communities to show their generosity through donations, volunteering, and overall support for charitable causes worldwide.
While the holidays should be a time of joy and shared meals, many in our community face food insecurity. This past Giving Tuesday, Community First partnered with Redwood Empire Food Bank to raise $400,000 to provide meals to those in need, with CFCU donating $50,000 in matching funds.
Fall 2025 marked CFCU's 11th annual Discovery Day! This company-wide event gives all 180+ team members across our 7-county footprint a chance to come together and contribute to our community.
This Discovery Day we decided to shake things up and took our gathering a little farther north, all the way to Ridgewood Ranch in Mendocino County. Not just the final resting place of legendary racehorse Seabiscuit, Ridgewood Ranch is a place for community meals, learning, and sharing. It houses a therapeutic riding center, School of Adaptive Agriculture, Golden Rule Garden, children's school, and vast pastures--with a 1000 acre parcel as a conservation easement.
Community First had the opportunity to learn about this historic ranch and assist them prepare for their Harvest Festival Fundraiser by processing and prepping produce.
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Community First was founded back in 1959 by a group of teachers who were denied loans from the traditional 'big banks'. We continue to honor our roots by supporting students and educators across our 7-county footprint. In addition to the special loans we provide for prospective administrators and teachers alongside the North Coast School of Education and Sonoma County Office of Education, we also sponsor the Sonoma County Office of Education's Teacher of the Year Award.
Community First also offers graduating seniors the opportunity to apply for the Arlene Colombini and Girl Effect scholarships in the spring.
Total Loans to Our Members
In Loans to Our Members
Average Loans Per Month
Agriculture is a big part of Northern California, and not just the grapes! We're proud to help young farmers in our community get their start with our Youth Agriculture Loans! These loans are not only a great product to help young farmers get their start, but a tool to help students learn about making a business plan, budgeting, and the ins and outs of borrowing money. In 2025, we funded 101 Youth Agriculture Loans, totaling $215,332.27. Since we started this program back in 2014, we've funded over 1,300 Youth Agriculture Loans totaling over $2.3 million!
Sponsored Community Events
Donated to Local Organizations
Awarded to local students and educators
After a successful launch in 2023, our Community First Digital Banking team continues to make improvements and additions to your Digital Banking platform. With enhanced security, financial planning tools, and in-app loan applications, we're enhancing the banking capabilities you have in the palm of your hand!
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