2024-05-10T16:21:23-05:00 2023-12-31 410746749 CLIFTONLARSONALLEN LLP 109 N MAIN STREET SUITE 200 AUSTIN MN 55912 990 2023-01-01 410429399 FIRST ALLIANCE CREDIT UNION FIRS 5072880330 300 N MAIN STREET STEWARTVILLE MN 55976 BRENT REMPE PRESIDENT/CEO 5072880330 2024-05-09 1 BRENT REMPE 999009999 0 TANYA MEDGAARDEN P01717240 5074347000 2024-05-06 0 AAL1 IAL1 2023 2023-04-26 12:10:37Z BRENT REMPE 300 N MAIN STREET STEWARTVILLE MN 55976 20683191 0 X WWW.FIRSTALLIANCECU.COM X CREDIT UNION 1932 MN FIRST ALLIANCE CREDIT UNION PLACES MEMBERS' NEEDS FIRST BY PROVIDING COMPASSION, GUIDANCE, AND RESOURCES TO PROMOTE THEIR FINANCIAL WELL-BEING. 7 7 84 11 13506 0 0 0 15656491 19578655 864916 1074031 0 0 16521407 20652686 0 0 507004 2458462 6353129 6389485 0 0 0 7927722 9278970 14787855 18126917 1733552 2525769 288094542 282573969 262855469 255468805 25239073 27105164 WE PLACE OUR MEMBERS' NEEDS FIRST BY PROVIDING COMPASSION, GUIDANCE, AND RESOURCES TO PROMOTE THEIR FINANCIAL WELL-BEING. AS A FINANCIAL COOPERATIVE ALL INCOME IS USED TO PAY OPERATING EXPENSES OR RETURNED TO MEMBERS IN THE FORM OF DIVIDENDS OR SERVICES. 0 0 PAY INTEREST AND DIVIDENDS ON AMOUNTS DEPOSITED BY MEMBERS. PROVIDE CHECKING AND CASH HANDLING SERVICES TO MEMBERS. PROVIDE RESIDENTIAL MORTGAGE, HOME IMPROVEMENT, COMMERCIAL, AND OTHER MISC. LOANS TO MEMBERS. 0 0 0 0 0 0 0 0 0 1 0 0 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 1 8146 0 1 84 1 1 1 0 0 0 0 0 0 0 X 7 7 0 0 0 0 1 1 1 1 1 1 1 1 0 1 1 1 1 1 1 1 0 X BRENT REMPE PRESIDENTCEO 5072880330 300 N MAIN STREET STEWARTVILLE MN 55976 RAWHI SAID DIRECTOR 1.40 X 2332 0 0 RUSSELL HESS SECRETARY/DIRECTOR 1.10 X X 2713 0 0 ROBERTA OLSON DIRECTOR 2.10 X 3348 0 0 JANE DRENNAN DIRECTOR 3.30 X 5151 0 0 THERESA HORNBERG CHAIR/DIRECTOR 4.50 X X 6991 0 0 ALAN MICHAEL DEBOLT VICE CHAIR/DIRECTOR 1.10 X X 1686 0 0 JULIAN CURRIE DIRECTOR 1.20 X 1616 0 0 MIKE ROSEK EMERITUS PRESIDENT/CEO 50.00 X 408493 0 71395 MARK HETTINGER EVP/COO 50.00 X 66964 0 13421 DAVID SCHOUTEN SVP/CIO 50.00 X 72474 0 15421 BRENT REMPE PRESIDENT/CEO 50.00 X 129264 0 17153 VALERIE MATHIAS SVP FINANCE/CFO 50.00 X 207730 0 70960 CHRISTINE JENSEN CONTROLLER 40.00 X 108075 0 30074 JEREMIAH HALLORAN DIRECTOR OF DIGITAL SERVICES 40.00 X 113034 0 45741 LISETT COMAI-LEGRAND DIRECTOR OF RETAIL & MBR EXPER 40.00 X 128665 0 33875 ANDREA ALLEN DIRECTOR OF LENDING 40.00 X 118569 0 46100 NANCY HUBER DIRECTOR OF HUMAN RESOURCES 40.00 X 115636 0 19446 1492741 0 363586 8 0 1 0 FISERV 255 FISERV DR BROOKFIELD WI 53045 CORE DATA PROCESSOR 1666830 TOWNSQUARE MEDIA ROCHESTER 122 4TH ST SW ROCHESTER MN 55902 MEDIA ADVERTISING PROVIDER 183286 TECHNOLOGY CONSULTING GROUP 3850 PONDEROSA ROAD MALABAR FL 32950 TECHNOLOGY PRODUCTS AND SERVICES 138000 MERIDIANLINK 1600 SUNFLOWER AVE COSTA MESA CA 92626 LENDING SOFTWARE PROVIDER 125736 MOSAIC CHRYSLER DODGE JEEP RAM ZUMBROTA 1900 ROSCOE AVE ZUMBROTA MN 55992 INDIRECT DEALER 110783 7 INTEREST ON LOANS 522100 13701099 13701099 MEMBER SERVICE FEES 522100 5411403 5397897 13506 CREDIT CARD INCOME 522210 346987 346987 LOAN INCOME AND FEES 522100 119166 119166 19578655 922582 922582 181954 30505 151449 151449 151449 20652686 19565149 13506 1074031 2458462 1097112 3653484 38361 1248729 351799 94547 89076 2760 447914 632271 443713 1152525 559974 73711 269284 497015 68915 860190 110334 ATM EXP 1400339 PROVISION FOR CREDIT LO 1102712 LENDING EXP 892234 CREDIT CARD EXP 252102 329354 18126917 8802707 6397175 13808185 14215371 694473 1737455 28684 20000 215112506 222053669 605420 667956 12491287 4361374 11704725 8129913 26383539 20616611 279726 279726 10674577 8456093 288094542 282573969 17037406 10992683 245818063 244476122 262855469 255468805 X 0 0 0 0 25239073 27105164 25239073 27105164 288094542 282573969 X 2525769 63590 -723268 X X 0 0 0 1052127 1052127 6310947 1345923 4965024 3974486 2202758 1771728 1153727 812693 341034 8129913 MEMBER DEPOSITS 244476122 244476122 X PART X, LINE 2: AS ALLOWED BY STATE REGULATORY AUTHORITIES, THE AUDIT IS DONE AS OF MARCH 31. THE REPORTING PERIOD FOR THE AUDIT, THEREFORE, DOES NOT MATCH THE REPORTING PERIOD FOR THE 990. PER FOOTNOTE 1 IN THE CREDIT UNION'S MARCH 31, 2023 FINANCIAL STATEMENTS, THE CREDIT UNION IS EXEMPT FROM FEDERAL AND STATE INCOME TAXES. ACCORDINGLY, NO INCOME TAX PROVISION HAS BEEN RECORDED ON THE ACCOMPANYING FINANCIAL STATEMENTS. DEFERRED TAX ASSETS AND LIABILITIES ARE RECOGNIZED IF IT IS MORE LIKELY THAN NOT, BASED ON THE TECHNICAL MERITS, THAT THE TAX POSITION WILL BE REALIZED OR SUSTAINED UPON EXAMINATION. THE TERM MORE LIKELY THAN NOT MEANS A LIKELIHOOD OF MORE THAN 50 PERCENT. THE TERMS EXAMINED AND UPON EXAMINATION ALSO INCLUDE RESOLUTION OF THE RELATED APPEALS OR LITIGATION PROCESSES, IF ANY. A TAX POSITION THAT MEETS THE MORE-LIKELY-THAN-NOT RECOGNITION THRESHOLD IS INITIALLY AND SUBSEQUENTLY MEASURED AS THE LARGEST AMOUNT OF TAX BENEFIT OR LIABILITY THAT HAS A GREATER THAN 50 PERCENT LIKELIHOOD OF BEING REALIZED UPON SETTLEMENT WITH A TAXING AUTHORITY THAT HAS FULL KNOWLEDGE OF ALL RELEVANT INFORMATION. THE DETERMINATION OF WHETHER OR NOT A TAX POSITION HAS MET THE MORE-LIKELY-THAN-NOT RECOGNITION THRESHOLD CONSIDERS THE FACTS, CIRCUMSTANCES, AND INFORMATION AVAILABLE AT THE REPORTING DATE AND IS SUBJECT TO MANAGEMENT'S JUDGMENT. THE CREDIT UNION HAD NO UNRECOGNIZED TAX POSITIONS AS OF MARCH 31, 2023 AND 2022. THE CREDIT UNION RECOGNIZED NO INTEREST OR PENALTIES ON THE UNDERPAYMENT OF INCOME TAXES DURING THE YEARS ENDED MARCH 31, 2023 AND 2022, AND HAD NO ACCRUED INTEREST OR PENALTIES ON THE STATEMENT OF FINANCIAL CONDITION AS OF MARCH 31, 2023 AND 2022. THE CREDIT UNION HAS NO TAX POSITIONS FOR WHICH IT IS REASONABLY POSSIBLE THAT THE TOTAL AMOUNTS OF UNRECOGNIZED TAX BENEFITS WILL SIGNIFICANTLY INCREASE DURING THE NEXT TWELVE MONTHS. THE INTERNAL REVENUE SERVICE (IRS) AND CERTAIN STATE TAXING AUTHORITIES ARE CURRENTLY REVISITING WHAT, IF ANY, PRODUCTS AND SERVICES PROVIDED BY STATE CHARTERED CREDIT UNIONS ARE SUBJECT TO UNRELATED BUSINESS INCOME TAX (UBIT). THERE IS CURRENTLY VERY LITTLE GUIDANCE IN THE IRS CODE ON WHAT ACTIVITIES SHOULD BE SUBJECT TO UBIT. THE IRS HAS INDICATED THAT THEY ARE STUDYING THE ISSUE AND MAY ISSUE ADDITIONAL GUIDANCE. AS A RESULT, AT THIS TIME THERE IS UNCERTAINTY REGARDING WHETHER STATE CHARTERED CREDIT UNIONS SHOULD PAY INCOME TAX ON CERTAIN TYPES OF NET TAXABLE INCOME FROM ACTIVITIES THAT MAY BE CONSIDERED BY TAXING AUTHORITIES AS UNRELATED TO THE PURPOSE FOR WHICH THE CREDIT UNION WAS GRANTED NON-TAXABLE STATUS. THE CREDIT UNION HAS NOT FILED ANY TAX RETURNS IN THE PAST SHOWING THESE ACTIVITIES AS POTENTIAL TAXABLE ACTIVITIES. THE TAXING AUTHORITIES HAVE THE ABILITY TO ASSESS TAXES, PENALTIES AND INTEREST FOR ANY YEARS FOR WHICH NO TAX RETURN WAS FILED. IN THE OPINION OF MANAGEMENT, ANY LIBILITY RESULTING FROM TAXING AUTHORITIES IMPOSING INCOME TAXES ON THE NET TAXABLE INCOME FROM ACTIVITIES DEEMED TO BE UNRELATED TO THE CREDIT UNION'S NON-TAXABLE STATUS IS NOT EXPECTED TO HAVE A MATERIAL EFFECT ON THE CREDIT UNION'S FINANCIAL POSITION OR RESULTS OF OPERATIONS. X X X X 0 1 0 MIKE ROSEK EMERITUS PRESIDENT/CEO 291897 0 20000 0 96596 0 45438 0 25957 0 479888 0 66817 0 VALERIE MATHIAS SVP FINANCE/CFO 186721 0 21009 0 0 0 45121 0 25839 0 278690 0 0 0 ANDREA ALLEN DIRECTOR OF LENDING 108306 0 10263 0 0 0 7343 0 38757 0 164669 0 0 0 LISETT COMAI-LEGRAND DIRECTOR OF RETAIL & MBR EXPER 118201 0 10464 0 0 0 8036 0 25839 0 162540 0 0 0 JEREMIAH HALLORAN DIRECTOR OF DIGITAL SERVICES 103814 0 9220 0 0 0 7020 0 38721 0 158775 0 0 0 PART I, LINE 4B THE FOLLOWING INDIVIDUALS PARTICIPATED IN THE 457(F) PLANS OFFERED BY THE CREDIT UNION: MIKE ROSEK, EMERITUS PRESIDENT/CEO 457(F) - ACCRUED $29,780 - DISTRIBUTION $96,596 VALERIE MATHIAS, SVP FINANCE/CFO 457(F) - ACCRUED $32,573 VALERIE MATHIAS CFO LOC X 10000 10000 0 1 1 BRENT REMPE CEO LOC X 10000 10000 0 1 1 20000 FORM 990, PART VI, SECTION A, LINE 6 FIRST ALLIANCE CREDIT UNION IS A MEMBER OWNED COOPERATIVE. FORM 990, PART VI, SECTION A, LINE 7A THE GOVERNING BOARD, CONSISTING OF SEVEN DIRECTORS, ARE ELECTED BY THE MEMBERSHIP BASE. FORM 990, PART VI, SECTION A, LINE 7B ANY INTERIM APPOINTMENT OF DIRECTORS MUST BE RATIFIED BY THE MEMBERSHIP AT THE NEXT ANNUAL MEETING. ANY AMENDMENTS TO THE BYLAWS MUST BE RATIFIED BY THE MEMBERSHIP AT THE NEXT ANNUAL MEETING. FORM 990, PART VI, SECTION B, LINE 11B THE SVP FINANCE/CFO COORDINATES PREPARATION OF THE FORM 990 ANNUALLY, AND IT IS REVIEWED BY THE PRESIDENT/CEO FOR ACCURACY AND COMPLETENESS PRIOR TO TRANSMISSION. FORM 990, PART VI, SECTION B, LINE 12C THE CONFLICT OF INTEREST POLICY SHALL BE REVIEWED AND REAFFIRMED ANNUALLY BY THE CREDIT UNION BOARD OF DIRECTORS AT ITS ORGANIZATIONAL MEETING. EVIDENCE OF THE REVIEW AND AFFIRMATION SHALL BE ENTERED IN THE MINUTES. ADDITIONALLY, EACH DIRECTOR OF THE CREDIT UNION BOARD SHALL, ON AN ANNUAL BASIS, DISCLOSE ANY POTENTIAL CONFLICTS OF INTEREST HE OR SHE MAY HAVE BY EXECUTING A CONFLICT DISCLOSURE AND CODE OF CONDUCT AFFIRMATION. COPIES OF THE EXECUTED FORMS SHALL BE RETAINED IN THE DIRECTOR'S FOLDER. A DIRECTOR OF THE CREDIT UNION BOARD SHALL NOT ENGAGE IN THE DISCUSSION OF ANY MATTER IN WHICH HE OR SHE HAS A CONFLICT OF INTEREST. A DIRECTOR OF THE CREDIT UNION BOARD SHALL NOT VOTE ON ANY MATTER IN WHICH HE OR SHE HAS A CONFLICT OF INTEREST. THE AUTHORIZATION, APPROVAL OR RATIFICATION OF ANY MATTER IN WHICH A DIRECTOR OF THE CREDIT UNION BOARD HAS A CONFLICT OF INTEREST MUST BE MADE BY A MAJORITY VOTE OF THE CREDIT UNION DIRECTORS PRESENT, EXCLUDING THE INTERESTED DIRECTOR(S). THE INTERESTED DIRECTOR(S) SHALL NOT BE COUNTED FOR PURPOSES OF ESTABLISHING A MAJORITY OR DETERMINING THE PRESENCE OF A QUORUM. THE MINUTES SHALL REFLECT ALL ABSTENTIONS BY THE CREDIT UNION DIRECTOR(S). FORM 990, PART VI, SECTION B, LINE 15 THE PERSONNEL COMMITTEE REVIEWS AND APPROVES OFFICER COMPENSATION ANNUALLY. INCREASES ARE BASED, IN PART, ON INDUSTRY COMPARABILITY DATA. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION MAKES ITS GOVERNING DOCUMENTS AND CONFLICT OF INTEREST POLICY AVAILABLE TO THE PUBLIC UPON DEMAND. SUMMARY FINANCIAL STATEMENTS ARE POSTED IN EACH BRANCH LOBBY MONTHLY AND IN AN ANNUAL REPORT TO THE MEMBERSHIP. FORM 990, PART VII CONTACT ADDRESSES FOR OFFICERS, DIRECTORS, ETC MIKE ROSEK - 3323 TURNBERRY LN SE, ROCHESTER, MN 55904-6774. MARK HETTINGER - 66 PACKARD RD, ORANGE, MA 01364-9766. DAVID SCHOUTEN - 2201 FOX VALLEY DR SW, ROCHESTER, MN 55902-3463. FORM 990, PART XI, LINE 9: CECL ADOPTION -723,268. FORM 990 PART XII LINE 2B THE FINANCIAL STATEMENTS FOR FIRST ALLIANCE CREDIT UNION ARE AUDITED BASED ON A FISCAL YEAR ENDING MARCH 31. IRS FORM 990 PART XII LINE 2B HAS BEEN ANSWERED NO BECAUSE THE 990 IS PREPARED BASED ON A CALENDAR YEAR.