VyStar expanded land, branches and philanthropic efforts in 2023 (Courtesy of the Jacksonville Business Journal) — VyStar Credit Union is growing at a steady a pace, according to annual report recently released.
Presented by CEO Brian Wolfburg, VyStar membership grew by 7% in 2023, up from 866,032 in 2022 to 926,588 in 2023. Not bad for a credit union founded in 1952 by 12 people with $60 combined at the Naval Air Station Jacksonville.
VyStar now manages about $13.6 billion in assets, down just over half a percent compared to $13.65 billion last year.
It added 1,700 new members and $11.2 million in assets with the Jan. 6, 2023, merger with First Coast Federal Credit Union.
While the credit union trimmed its fixed assets from 2022 by 23% (which included the one FCFCU branch, donated to a local nonprofit), VyStar acquired 20% more land and buildings in addition to 23% more cash and deposits. Much of this was interstate expansion.
VyStar now has seven branches in Georgia, including four in Metro Atlanta. This will rise to eight locations when Peachtree Corners opens on later this quarter.
There are now more than 80 full-service and 18 high school VyStar branches, according to VyStar Vice President High School Program Michael Rathjen.
New land and new membership meant a rise in interest and non-interest income and expenses.
VyStar’s net income dropped from $73 million to almost $24.5 million in 2023. This huge hit to income can be accounted for in a 100% rise in income expenses (interest payments) in a rising rate environment and an almost $37 million provision for loan/lease losses — a valuation allowance to account for non-performing loans and bankruptcies. This provision reflects a cross-industry trend of consumer credit deterioration.
Future interest income rose with a $56 million — 11.5% — rise in commercial loan origination in 2023. VyStar’s gross loans total $9.5 billion with $2 billion originated in 2023 toward mortgage, auto and home loans.
Though funded commercial loan originations declined by 20.7% in 2023 compared to 2022, VyStar still increased its business loans by $67 million. The credit union also now serves more than 60,000 small businesses.
According to VyStar’s community pillar, this includes a focus on funding underserved communities. This includes the Deb Store project in the Eastside, a Winn-Dixie in an Arlington area designated as a food desert and a total $181 million for 1,000 local businesses in economically depressed areas.
This aligns with the philanthropic VyStar Foundation’s 2023 launch. While VyStar Credit Union and VyStar Foundation are closely aligned, the two are separate legal entities. The VyStar Foundation funded several grants in 2023 to support non-profit organizations, the military and youth.
In addition, VyStar Credit Union employees donated over 32,000 volunteer hours.
VyStar has also donated more than $6.6 million to over 400 nonprofit organizations in Florida and Georgia in 2023. As community development financial institution, VyStar also awarded $740,000 to support equitable housing efforts in Northeast Florida.
Since the 2006 inception of VyStar’s Academy of Business High School Branch Program, VyStar has awarded $147,000 in scholarship funds. Since then, the credit union has provided over 2,000 paid internships and delivered financial education training to over 119,000 high school students.
“VyStar truly cares about the community,” company spokesperon Leigh Ann Rassler said. “I’ve always wanted to work somewhere that made a difference, and I couldn’t have found a better home than VyStar.”
Photo courtesy of Downtown Vision