TJ Tijerina, President & CEO, First Community Credit Union (FCCU)

Invest: spoke with TJ Tijerina, president and CEO of First Community Credit Union (FCCU), about Houston’s economic growth, the credit union’s new headquarters, and its expanding role in business banking. The conversation highlighted the organization’s education roots, consultative branch model, and partnerships designed to develop talent and strengthen the community. “Small business is the backbone of our economy,” Tijerina said.

What changes are affecting credit unions and their members across Greater Houston?

There is tremendous opportunity in the Houston market right now. Over the past five to six years, our organization has experienced dramatic growth as we grow alongside the Houston community. Much of this growth has been driven by individuals and families relocating to this area to take advantage of the economic opportunities available here. As a financial institution, we are committed to supporting people on their journey, whether relocating, opening new accounts, purchasing a home, or leveraging our financial solutions to empower them to achieve their financial goals. We are here to be a trusted financial partner, helping members build stronger financial futures and contributing to the continued growth of Houston to become even stronger in the marketplace.

What are First Community Credit Union’s priorities following the purchase of its new headquarters?

Our new headquarters demonstrates our confidence in Texas and Houston as the place where we want to remain headquartered. We are not moving outside this city because we see the growth coming to the market and want to be part of it. We started here in 1954 and have seen Houston change, but what excites us most is its future. This investment signals that we are here to stay.

Looking ahead, our focus will be on strengthening and expanding relationships with community partners, including school districts, universities, healthcare organizations, and other local institutions. Houston is home to a world-renowned medical center, creating unique opportunities to collaborate with hospitals and healthcare providers, delivering financial services to support employees, patients, and the larger community while helping drive economic growth throughout the region. 

Which sectors are driving demand for financial services, and where do you see growth opportunities?

The energy industry is a cornerstone of Houston’s economy and continues to experience growth, innovation, and opportunity here. Education is particularly important to us because it is the root of our foundation as an educators’ credit union. Supporting educators and educational institutions is a key part of who we are. Our goal is to help teachers, schools, colleges, and universities continue their important work of developing the talent that companies will need to grow and thrive. Because of our roots, we believe we are in a unique position to support this mission. We are deepening our longstanding relationships with school districts and other education partners to help them prepare the talent of the future.

What are consumers and businesses telling you about the economy and lending environment?

Houston has been resilient, but people are still feeling the impact of economic uncertainty. Inflation experienced across the country has moderated from its peak, which is encouraging. Although inflation is now growing at a more manageable pace, prices have increased significantly and remain high. While wages have grown, they have not always kept pace with the rising cost of living. 

We are now beginning to see wages rise faster than inflation, which is encouraging. Over time, it should make conditions a little easier; however, adjustments take time, and many people are adjusting to a higher-cost environment. During periods of uncertainty, consumers tend to be more cautious about assuming new debt, making a major purchase, or replacing a vehicle.

Housing is another significant factor. With the strong population growth, housing inventory struggled to keep up with demand, resulting in home prices increasing significantly. Mortgage rates then increased. Historically, while today’s mortgage rates are not unusually high, many people entered the market during a period when rates of 2.5% to 3% were available. While these rates were extraordinary, they reset expectations. As consumers continue to adjust and become more comfortable with interest rates in the 5% to 7% range, I believe we will see increased housing activity.
Houston’s long-term fundamentals remain strong, giving us confidence in the region’s future and in the financial well-being of the communities we serve.

How is First Community positioning itself amid consolidation and greater competition?

Texas, and Houston in particular, has experienced considerable merger and acquisition activity over the last 24 months. Both banking and credit union industries are in a period of consolidation, and I believe that trend will continue over the next five to 10 years as institutions seek greater scale, efficiency, and the ability to invest in technology.

Credit unions have a unique opportunity because consumer perceptions are changing. Historically, many people viewed credit unions as institutions for personal banking that served employees of specific companies only. Today, we are community-based and have expanded our field of membership over the years to serve members across Texas. More importantly, businesses are discovering the value credit unions bring to serve business members effectively.

While some large financial institutions have moved to a more transactional approach with small and medium-sized businesses, credit unions have leaned into that market and continue to emphasize relationships and personalized service. Business members who have worked with credit unions for commercial banking increasingly value this partnership and collaboration.

How are technology and AI changing your operations and branch strategy?

AI and technology are changing rapidly. At this point, it is no longer a question of whether we want to use AI; we must embrace it. The focus is on how we embrace it thoughtfully and strategically. We consider how AI can streamline back-office and administrative work so our teams can devote more time to relationships, conversations, education, and consultation.

People are comfortable using technology for transactions and want those functions to operate seamlessly in the background. When they need to determine how to grow a business, secure capital, or transition a company to the next generation, they want to have a conversation with a person.

We began rethinking and changing our branch strategy 15 years ago. While branches remain an important part of our service model, branches are not disappearing, but how members use them has changed dramatically. Our branches are now consultative rather than transactional. Members visit us to discuss major life and business decisions, whether saving for college or retirement, transitioning a business, or securing the liquidity needed for growth.

How are you developing the workforce needed for this consultative model?

As the financial services industry continues to evolve, we intentionally transformed how we develop and support our employees, providing them with the tools to become experts and consultants. Instead of concentrating primarily on opening accounts, we equip our team members with the knowledge and tools to serve as trusted advisors. Our frontline staff is trained to help members create a budget, understand a credit report, and improve their financial health. We believe the greatest value we can provide is helping individuals and families gain the confidence and knowledge they need to achieve their financial goals. We have pivoted toward financial expertise and literacy rather than simply facilitating transactions.

Developing the next generation of talent is equally important, and we have partnered with universities to build our talent pipeline. Every summer, we welcome 12 to 24 interns from various universities to work across every department, not just accounting or marketing. This approach allows students to learn about our business and culture while experiencing the work they may pursue professionally. This arrangement allows students to understand what a financial services career involves before graduating. In addition, it allows us to learn from them. Our university partnerships and internship program have become an important pipeline for future talent.

How does the credit union determine where it can make the greatest community impact?

We believe that strong organizations can only exist within strong communities. Every member of our executive team is actively involved with nonprofit organizations, and employees receive two days each year to volunteer with a nonprofit of their choice. In addition, our leaders and managers participate in group volunteer activities several times a year. Community involvement is part of our culture.

When selecting areas of focus, we return to our education roots and prioritize students and children. Our support ranges from youth financial literacy to funding organizations that help at-risk children. We do not try to reinvent the wheel; we provide resources to organizations already doing valuable work.

The First Community Cares Foundation has its own board composed of community members who help us identify organizations that need funding. We currently award up to 12 scholarships annually to support students in their university or trade school educational journey. We are also working with partners such as Lone Star College and Sam Houston State University to expand educational opportunities even further. One initiative we are particularly excited about is the development of a full college scholarship for an at-risk student connected to one of the charitable organizations we support. Our goal is simple: remove financial barriers so students can focus on learning, growing, and reaching their full potential. 

What gives you confidence in Houston’s economic outlook?

One of the strongest indicators of a community’s future is whether people are choosing to move there. We live in a highly mobile society, and people relocate to places where they can find opportunity. Houston continues to attract people from across the country, and that sustained population growth is a powerful vote of confidence for our future. As a result, net migration remains one of the key indicators we monitor because it reflects both the strength and long-term potential of our market. 

The housing market could gain considerable momentum if mortgage rates decline by approximately 50 basis points to 1 percentage point. Lower rates may encourage homeowners to sell, move, and upgrade, which would increase available inventory for other buyers. Houston has room to grow, and new neighborhoods have helped add supply, but we also need turnover in existing inventory for the mortgage market to reach its full potential.

We are incredibly optimistic about Houston’s future and have continued to invest in that opportunity. This is our home, and we view it as our long-term future. 

Small businesses are the backbone of our economy. They create jobs, drive innovation, and strengthen local communities. Credit unions play a significant role in helping those businesses start, grow, and succeed, contributing to the continued prosperity of Houston and the broader Texas economy.