2024-11-08T17:35:04-06:00 2023-12-31 410746749 CLIFTONLARSONALLEN LLP 20 EAST THOMAS ROAD SUITE 2300 PHOENIX AZ 85012 990 2023-01-01 951585409 SOUTHLAND CREDIT UNION SOUT 5628626831 10701 LOS ALAMITOS BLVD LOS ALAMITOS CA 90720 THOMAS LENT PRESIDENT/CEO 5628626831 2024-11-07 1 0 MELISSA HANGSLEBEN P02087031 6022662248 2024-11-07 2023 2024-10-15 13:58:12Z THOMAS LENT 10701 LOS ALAMITOS BLVD LOS ALAMITOS CA 90720 51589558 0 X WWW.SOUTHLANDCU.ORG X 1936 CA WE ARE DEDICATED TO PROVIDING OUR MEMBERS WITH EXCEPTIONAL, COMPREHENSIVE, AND INNOVATIVE FINANCIAL SOLUTIONS, DELIVERED WITH UNIQUELY PERSONAL SOUTHLAND SERVICE. 9 9 196 12 93074 0 0 0 34683253 43601931 5271516 7987627 18776 0 39973545 51589558 0 0 2535330 10309254 17130348 17971081 0 0 0 15330351 19585485 34996029 47865820 4977516 3723738 1085641771 1151348506 1019139187 1081033318 66502584 70315188 WE ARE DEDICATED TO PROVIDING OUR MEMBERS WITH EXCEPTIONAL, COMPREHENSIVE, AND INNOVATIVE FINANCIAL SOLUTIONS, DELIVERED WITH UNIQUELY PERSONAL SOUTHLAND SERVICE. 0 0 PROVIDED LOW COST LOANS AND HIGH-YIELD DEPOSIT OPTIONS FOR OUR MEMBERSHIP. EDUCATED OUR MEMBERSHIP TO ENSURE FINANCIAL LITERACY AND SECURITY. DURING 2023, 19,504 LOANS WERE GRANTED AND SERVICES WERE PROVIDED TO 64,822 MEMBERS. 0 0 1 0 0 0 0 0 0 1 0 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 1 1 0 0 1 16681 0 1 196 1 1 1 0 0 0 0 0 0 0 X 9 9 0 0 1 0 1 1 1 1 0 0 1 1 0 1 1 1 1 1 1 1 0 CA X CHRISTOPHER BURNS 5628626831 10701 LOS ALAMITOS BLVD LOS ALAMITOS CA 90720 BRAD SILCOX CHAIRMAN 1.00 X X 0 0 0 BECKY COOL VICE CHAIRMAN 1.00 X X 0 0 0 TOM WILLINGHAM SECRETARY/TREASURER 1.00 X X 0 0 0 ANGELA AVERY DIRECTOR 1.00 X 0 0 0 WALTER FINNIGAN DIRECTOR 1.00 X 0 0 0 JUSTIN LAIRD DIRECTOR 1.00 X 0 0 0 ANNIE PEREZ DIRECTOR 1.00 X 0 0 0 MEGAN HISZPANSKI DIRECTOR 1.00 X 0 0 0 JOSE MANZANO DIRECTOR 1.00 X 0 0 0 THOMAS LENT PRESIDENT/CEO 40.00 X 574296 0 64817 RENE LEJAY EVP/COO 40.00 X 350213 0 37188 CHRISTOPHER BURNS SVP/CFO 40.00 X 321233 0 34785 MATTHEW HERRICK SVP SALES & MARKETING 40.00 X 283961 0 39067 CURTIS BANNOCK VP/CIO 40.00 X 244954 0 31094 PATTY JIMENEZ VP LENDING 40.00 X 239369 0 27524 BERTRAND VILLAVERT VP CONTROLLER 40.00 X 241405 0 34458 BARBARA BANNISTER VP HUMAN RESOURCES 40.00 X 240797 0 23979 2496228 0 292912 41 0 1 0 DIEBOLD 5995 MAYFAIR ROAD NORTH CANTON OH 44720 ATM SERVICING 720333 ALKAMI 5601 GRANITE PARKWAY SUITE 120 PLANO TX 75024 DIGITAL BANKING SOLUTIONS 603209 REDESIGN 2629 MANHATTAN AVE SUITE 307 HERMOSA BEACH CA 90254 DISASTER RECOVERY 515869 JACK HENRY & ASSOCIATES 663 W HIGHWAY 60 PO BOX 807 MONETT MO 657088215 CORE INFORMATION PROCESSING SOLUTIONS 455622 PROMENADE PROPERTIES III LLC 525 SANTA MONICA BLVD SANTA MONICA CA 90401 PROPERTY MANAGEMENT 423183 25 INTEREST INCOME ON LOANS 522100 36650952 36650952 FEES AND CHARGES 522100 4108117 4060195 47922 INTERCHANGE INCOME 522100 1709512 1709512 OTHER OPERATING INCOME 522100 1133350 1088198 45152 43601931 7987627 7987627 51589558 43508857 93074 7987627 10309254 1382532 13141197 913245 1504249 1029858 199668 174857 6977 908909 1699063 1605091 1687361 1686987 530238 3144863 1572864 237573 PROVISION FOR LOAN LOSS 3476416 LOAN SERVICING 1416088 ATM EXPENSES 977719 DUES & SUBSCRIPTIONS 150678 110133 47865820 9854749 6952595 58317912 89483035 659373 749241 12060174 12500018 726923382 785115002 1738629 2074125 36708474 20151988 16666332 16556486 219547406 200943796 5863490 5848279 822498 822498 33187826 30303431 1085641771 1151348506 8475499 10099321 90900000 90900000 919763688 980033997 1019139187 1081033318 X 0 0 0 0 66502584 70315188 66502584 70315188 1085641771 1151348506 X 3723738 2976947 -2888081 X X 0 1 X 1 0 6977 0 0 6977 6977 1 CALIFORNIA CREDIT UNION LEAGUE 2855 E GUASTI ROAD SUITE 202 ONTARIO CA 917611249 940357265 6977 PART I-A, LINE 1: CONTRIBUTION TO POLITICAL ORGANIZATION. 6094020 6094020 14002755 6360325 7642430 1387870 1375506 12364 14539954 12416157 2123797 683875 683875 16556486 MEMBERS' SHARES AND SAVINGS ACCOUNTS 978614348 RIGHT-OF-USE LEASE LIABILITY 1419649 980033997 X PART X, LINE 2: THE CREDIT UNION IS EXEMPT FROM MOST FEDERAL AND STATE INCOME TAXES, UNDER INTERNAL REVENUE CODE 501(C)(14). THE CREDIT UNION HAS FILED TAX RETURNS IN THE PAST FOR ACTIVITIES IT HAS DEEMED TAXABLE AND HAS A MINIMAL NET OPERATING LOSS CARRYFORWARD. 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 LIABILITY RESULTING FROM TAXING AUTHORITIES IMPOSING INCOME TAXES ON THE NET TAXABLE INCOME FROM ACTIVITIES POTENTIALLY DEEMED TO BE UNRELATED TO THE CREDIT UNION'S EXEMPT PURPOSE IS NOT EXPECTED TO HAVE A MATERIAL AFFECT ON THE CREDIT UNION'S FINANCIAL POSITION OR RESULTS OF OPERATIONS. THE CREDIT UNION EVALUATED ITS TAX POSITIONS AND DETERMINED NO UNCERTAIN TAX POSITIONS EXIST AS OF DECEMBER 31, 2023 AND 2022. THE CREDIT UNION'S 2020 THROUGH 2022 TAX YEARS ARE OPEN FOR EXAMINATION BY FEDERAL AND STATE TAXING AUTHORITIES. X X 1 1 X X X X X 0 1 0 THOMAS LENT PRESIDENT/CEO 471844 0 85048 0 17404 0 26400 0 38417 0 639113 0 0 0 RENE LEJAY EVP/COO 290839 0 55724 0 3650 0 26400 0 10788 0 387401 0 0 0 CHRISTOPHER BURNS SVP/CFO 267255 0 51206 0 2772 0 25798 0 8987 0 356018 0 0 0 MATTHEW HERRICK SVP SALES & MARKETING 235813 0 45182 0 2966 0 23476 0 15591 0 323028 0 0 0 CURTIS BANNOCK VP/CIO 201082 0 38527 0 5345 0 15408 0 15686 0 276048 0 0 0 BERTRAND VILLAVERT VP CONTROLLER 201828 0 39527 0 50 0 20181 0 14277 0 275863 0 0 0 PATTY JIMENEZ VP LENDING 200997 0 38322 0 50 0 19317 0 8207 0 266893 0 0 0 BARBARA BANNISTER VP HUMAN RESOURCES 90098 0 32731 0 117968 0 18715 0 5264 0 264776 0 0 0 PART I, LINE 1A TRAVEL EXPENSES FOR BOARD AND SUPERVISORY MEMBERS ARE PAID BY THE CREDIT UNION AND INCLUDED IN TAXABLE COMPENSATION. KEY EMPLOYEES ARE ELIGIBLE FOR HEALTH CLUB DUES PROVIDED BY THE CREDIT UNION. PART I, LINE 3 THE CREDIT UNION HAS A NONQUALIFIED DEFERRED COMPENSATION PLAN, SECTION 457(F), FOR CERTAIN MEMBERS OF MANAGEMENT. THERE WERE NO DISTRIBUTIONS FROM THE PLAN OR CONTRIBUTIONS TO THE PLAN DURING CALENDAR 2023. ADDITIONALLY, THE CREDIT UNION PROVIDES SUPPLEMENTAL RETIREMENT BENEFITS TO THOMAS LENT, CHRISTOPHER BURNS, RENE LEJAY, AND MATTHEW HERRICK, THROUGH AN ARRANGEMENT REFERRED TO AS A "COLLATERAL ASSIGNED SPLIT DOLLAR". AT SPECIFIED TIMES, THE PARTICIPANTS MAY BORROW FUNDS FROM THE CASH SURRENDER VALUE OF THE UNDERLYING LIFE INSURANCE POLICY TO SUPPLEMENT RETIREMENT INCOME. THESE DRAWS ARE TAX-FREE FOR THE PARTICIPANTS. UPON THE PARTICIPANT'S DEATH, THE CREDIT UNION RECOVERS ITS PREMIUMS PLUS INTEREST, PLUS KEY-PERSON INSURANCE PROCEEDS. THOMAS LENT PRESIDENT/CEO SPLIT DOLLAR LIFE INSURANCE X 6450000 6980400 0 1 1 RENE LEJAY EVP/COO SPLIT DOLLAR LIFE INSURANCE X 1500000 1625158 0 1 1 CHRISTOPHER BURNS SVP/CFO SPLIT DOLLAR LIFE INSURANCE X 2100000 2055583 0 1 1 MATTHEW HERRICK SVP SALE & MARKETING SPLIT DOLLAR LIFE INSURANCE X 1900000 1838877 0 1 1 12500018 SCHEDULE L, PART II THE CREDIT UNION PROVIDES SUPPLEMENTAL RETIREMENT BENEFITS THROUGH AN ARRANGEMENT REFERRED TO AS A "COLLATERAL ASSIGNED SPLIT DOLLAR". ALTHOUGH THE IRS REQUIRES REPORTING IN PART II AS A LOAN TO AN INTERESTED PARTY, THIS IS NOT AN ACTUAL LOAN. THERE IS NO TRANSFER OF FUNDS TO THE PARTICIPANTS NOR AN OBLIGATION TO REPAY THE FUNDS. INSTEAD THE CREDIT UNION RECOVERS ANY OUTLAYS, PLUS INTEREST, FROM THE UNDERLYING POLICY. THAT IS, THE CREDIT UNION DEPOSITS FUNDS DIRECTLY INTO A LIFE INSURANCE POLICY TO ENSURE REPAYMENT. AT SPECIFIED TIMES, THE PARTICIPANTS MAY BORROW FUNDS FROM THE CASH SURRENDER VALUE OF THE POLICY TO SUPPLEMENT RETIREMENT INCOME. THE BORROWINGS ARE MONITORED TO ENSURE THE POLICY WILL PAY A DEATH BENEFIT AT LEAST SUFFICIENT TO COVER THE CREDIT UNION'S OUTLAYS PLUS INTEREST. ANY REMAINING DEATH BENEFITS ARE DIVIDED BETWEEN THE CREDIT UNION AND THE PARTICIPANT'S BENEFICIARIES AS AGREED UPON. FORM 990, PART VI, SECTION A, LINE 4 THE BYLAWS WERE UPDATED DURING 2023. THE CHANGES TO THE BYLAWS WERE AS FOLLOWS - - UPDATED THE PROCESS FOR EXPELLING MEMBERS UNDER CALIFORNIA LAW, AS WELL AS THE PROCESS FOR DEALING WITH INACTIVITY. - MODERNIZATIONS TO COMBAT A TREND IN INTERPRETATIONS FROM THE DFPI UNDER CALIFORNIA CORPORATIONS CODE 7331, REGARDING LOAN OR DEPOSIT SPECIAL TREATMENT OFFERED OR MARKETED TO LIMITED SEGMENTS OF THE MEMBERSHIP. - MODERNIZATIONS THAT PROVIDE THE FULL SCOPE OF RULES FROM THE CORPORATIONS CODE FOR NOTICE AND RECORD DATES FOR MEMBER MEETINGS. - MODERNIZATIONS THAT CAN SERVE TO CONTROL CHAOS AT MEMBER MEETINGS, INCLUDING RESTRICTIONS ON HOW NEW BUSINESS CAN BE BROUGHT BEFORE A MEMBER MEETING. - SECTION 407(D): INCLUDES THE SPECIFICS OF CORPORATIONS CODE 20 AND 21 TO ENSURE THAT THE WHOLE "PLAYBOOK" FOR ELECTRONIC COMMUNICATION IS CONTAINED IN THE BYLAWS WITHOUT REFERENCE TO THE CODE. - MODERNIZATIONS TO RESOLVE SITUATIONS IN THE NOMINATIONS PROCESS THAT SOMETIMES ARISE AS A RESULT OF AMBIGUITIES IN THE LEGACY LANGUAGE REGARDING THE CLOSE OF NOMINATIONS. ALSO UPDATED TO ALLOW FLEXIBILITY IN THE DATE THE ANNUAL MEETING IS HELD IN MARCH. - UPDATED TO PROVIDE QUALIFICATIONS FOR DIRECTORS, SUCH AS REMAINING BONDABLE, TO ALLOW FOR MORE STREAMLINED REMOVAL IN THE EVENT OF A PROBLEMATIC DIRECTOR. - UPDATED TO INCLUDE THE ALLOWANCE IN CALIFORNIA LAW FOR THE BOARD TO MEET NO LESS FREQUENTLY THAN QUARTERLY; THE BOARD IS NO LONGER REQUIRED TO MEET EACH CALENDAR MONTH. THIS CREATES FLEXIBILITY IN GOVERNANCE PROCESSES. - UPDATED TO ALIGN WITH CHANGES TO ARTICLE III AND THE SCOPE OF THE LAW BY REMOVING EXTRANEOUSLY LISTED DUTIES. - REORGANIZED AND CLARIFIED AS TO THE REQUIREMENTS ON THE TREASURER AS OPPOSED TO THE CEO, AS WELL AS THE SECRETARY. REVISIONS HELP CLARIFY THE ROLE OF THE BOARD TREASURER AS OPPOSED TO THE CFO. - ADDED QUALIFICATIONS FOR THE SUPERVISORY COMMITTEE. ALSO REVISED TO SPECIFY THE REQUIREMENT FOR THE SUPERVISORY COMMITTEE TO CONSIST OF AN ODD NUMBER OF MEMBERS. - IMPROVED TO ALLOW FOR AN ASSISTANT CREDIT MANAGER POSITION SO THAT LOANS TO OFFICIALS CAN BE APPROVED WHEN THE REGULAR CREDIT MANAGER IS UNAVAILABLE OR ON VACATION. - CONTAINS RIGHTS FOR MEMBERS IN EXCESS OF THE RIGHTS UNDER LAW, AND WHICH MAY CONFLICT SIGNIFICANTLY WITH PRIVACY RIGHTS FOR OTHER MEMBERS. - ADDED FOR EMERGENCY BYLAWS TO ADDRESS LINES OF SUCCESSION, EMERGENCY ACTION, QUORUM AND TERMINATION. FORM 990, PART VI, SECTION A, LINE 6 THE CREDIT UNION IS A COOPERATIVE FINANCIAL INSTITUTION THAT IS OWNED AND CONTROLLED BY ITS MEMBERS. PARTICIPATION IN THIS CREDIT UNION IS LIMITED TO THOSE WHO QUALIFY FOR MEMBERSHIP AS DEFINED IN THE CREDIT UNION'S CHARTER AND BYLAWS. THIS GENERALLY CONSISTS OF THOSE WHO LIVE, WORK, WORSHIP, OR GO TO SCHOOL IN ORANGE COUNTY AND LOS ANGELES COUNTY, CALIFORNIA, AND OTHER SELECT EMPLOYEE GROUPS WHO HAVE PETITIONED FOR MEMBERSHIP. IN ADDITION TO A REGULARLY QUALIFIED MEMBER, THE SPOUSE OF A MEMBER, THE BLOOD OR ADOPTIVE RELATIVES OF EITHER OF THEM AND THEIR SPOUSES MAY BE MEMBERS. FORM 990, PART VI, SECTION A, LINE 7A EACH BOARD MEMBER SERVES A 3 YEAR TERM AND IS NOMINATED AND ELECTED BY THE MEMBERSHIP. FORM 990, PART VI, SECTION A, LINE 7B MEMBERS OF THE CREDIT UNION HAVE THE RIGHT TO APPROVE THE GOVERNING BODY'S ELECTION AND REMOVAL OF MEMBERS OF THE GOVERNING BODY, AS WELL AS OTHER MATTERS THAT ARE SUBJECT TO THE APPROVAL OF MEMBERS OF THE CREDIT UNION AS THEY OCCUR. FORM 990, PART VI, SECTION A, LINE 8B THE CREDIT UNION DOES NOT HAVE ANY COMMITTEES THAT HAVE AUTHORITY TO ACT ON BEHALF OF THE GOVERNING BODY. FORM 990, PART VI, SECTION B, LINE 11B THE FORM 990 IS PREPARED BY THE ORGANIZATION'S PUBLIC ACCOUNTING FIRM BASED ON INFORMATION PROVIDED BY MANAGEMENT. ONCE THE DRAFT IS AVAILABLE, IT IS REVIEWED BY MANAGEMENT AND ANY CHANGES INCORPORATED INTO THE FILING. ONCE THIS DETAILED REVIEW IS COMPLETE, THE DRAFT OF THE FORM 990 IS PRESENTED TO THE SUPERVISORY COMMITTEE FOR THEIR REVIEW AND COMMENTS PRIOR TO FILING WITH THE IRS. FORM 990, PART VI, SECTION B, LINE 12C MANAGEMENT IS RESPONSIBLE FOR ENFORCING AND COMPLYING WITH THE CONFLICT OF INTEREST POLICY. ALL EMPLOYEES ARE REQUIRED TO AFFIRM THEIR COMPLIANCE WITH THE CONFLICT OF INTEREST POLICY THROUGH REVIEW AND SIGN OFF ON THE EMPLOYEE HANDBOOK WHICH IS RETAINED IN PERSONNEL FILES. PERIODIC REVIEWS ARE COMPLETED BY INTERNAL AUDITORS WHO REPORT THEIR FINDINGS TO THE SUPERVISORY COMMITTEE. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD FORMS AN EXECUTIVE COMPENSATION COMMITTEE WHICH SOLICITS A REVIEW FROM INDEPENDENT SOURCES AS WELL AS COMPARABILITY DATA. THIS COMMITTEE PROVIDES A RECOMMENDATION TO THE FULL BOARD TO APPROVE THE CEO'S SALARY. FINAL APPROVAL IS GIVEN BY THE BOARD AND APPROVED AT THE BOARD MEETING AND DOCUMENTED IN THE BOARD MINUTES. OTHER MANAGEMENT SALARIES ARE DETERMINED USING COMPARATIVES AND 3RD PARTY RECOMMENDATIONS. FINAL APPROVAL IS GIVEN BY THE CEO. THE BOARD IS NOTIFIED BY THE CEO AT THE BOARD MEETING. THE FINAL COMPENSATION DECISIONS ARE DOCUMENTED IN THE EMPLOYEE'S PERSONNEL FILE. FORM 990, PART VI, SECTION C, LINE 19 THE GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY AND FINANCIAL STATEMENTS ARE AVAILABLE TO THE PUBLIC UPON REQUEST. FORM 990, PART XI, LINE 9: CHANGE IN VALUE OF LIFE INSURANCE POLICIES 292,530. CUMULATIVE EFFECT OF CHANGE ING ACCOUNTING PRINCIPLE - ASC 326 -3,180,611. FORM 990, PART XII, LINE 2C: THE ORGANIZATION DID NOT CHANGE ITS OVERSIGHT OR SELECTION PROCESS DURING THE TAX YEAR. SCFCU SERVICES INC 10701 LOS ALAMITOS BLVD LOS ALAMITOS CA 90720 954489756 INSURANCE CA SOUTHLAND CREDIT UNION C 2220 1.00000 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0