2023-11-16T14:43:24+00:00 2022-12-31 350921680 CROWE LLP 9600 Brownsboro Road Suite 400 Louisville KY 402413902 990 2022-07-01 860101004 Arizona Financial Credit Union ARIZ 6026831160 333 N 44TH STREET Phoenix AZ 85008 Travis Fonnesbeck SVP & Chief Financial Officer 6026831160 2023-11-16 true Travis Fonnesbeck 999009999 false Kim Scifres P01316095 5023263996 2022 2023-04-26 12:10:37Z X X Amy Hysell 333 N 44TH STREET Phoenix AZ 85008 80017866 false X www.arizonafinancial.org X 2022 AZ The purpose of Arizona Financial Credit Union shall be to promote thrift and to provide credit to its members. 9 9 785 4743792 877470 0 64339105 13861816 1816945 0 80017866 6218 0 33267468 0 0 31550662 64824348 0 15193518 0 3171193266 0 2928964231 0 242229035 The purpose of Arizona Financial Credit Union shall be to promote thrift and to provide credit to its members. false false ARIZONA FINANCIAL CREDIT UNION (AZFCU) IS A STATE CHARTERED COOPERATIVE ASSOCIATION ORGANIZED FOR THE PURPOSE OF PROMOTING THRIFT AMONG AND CREATING A SOURCE OF CREDIT FOR ITS MEMBERS. THE CREDIT UNION PROVIDES MORTGAGE, VEHICLE AND OTHER CONSUMER and commercial LOANS TO ITS MEMBERS. THE CREDIT UNION ALSO OFFERS A VARIETY OF ACCOUNTS FOR MEMBERS TO TRANSACT AND SAVE, INCLUDING SHARE DRAFT ACCOUNTS AND SHARE CERTIFICATES. AS A MEMBER-OWNED ORGANIZATION, THE CREDIT UNION STRIVES TO PROVIDE COMPETITIVE INTEREST AND DIVIDEND RATES TO ITS MEMBERS AND CONVENIENT WAYS FOR MEMBERS TO ACCESS THEIR ACCOUNTS, INCLUDING ONLINE AND MOBILE BANKING AND SHARED BRANCHING SERVICES. OVER 158,804 MEMBERS ARE SERVED BY AZFCU. AZFCU OFFERS CREDIT LIFE AND DISABILITY INSURANCE TO ITS MEMBERS WHEN THEY FINANCE A VEHICLE OR OPEN A CREDIT CARD. THIS INSURANCE WOULD PAY OFF THE LOAN IN THE CASE OF A DEATH OR DISABILITY. AZFCU OFFERS AUTO WARRANTIES AT FAIR PRICES TO ITS MEMBERS. THESE WARRANTIES ARE COMPREHENSIVE AND HELP WITH THE COSTS OF REPAIR OF THE VEHICLE. 0 false false false false false false true false true false false true true false false false false false false false false false false false false false false true false false false false false false false false false false true false false false true 44825 0 true 785 true true true false false false false false false false X 9 9 true false false false true true false true false false true true true true false false true true true true true false X Travis Fonnesbeck 6026831160 333 N 44TH STREET Phoenix AZ 85008 David Albertson Board Vice chairperson 1.0 X X 1974 0 0 Libby Bissa Board Secretary 1.0 X X 21949 0 0 William Greene Board Chairperson 1.0 X X 1092 0 0 Zeek Ojeh Board Treasurer 1.0 X X 5492 0 0 Cathleen Gleason Board Member 1.0 X 9773 0 0 Jennifer Genga Board Member 1.0 X 0 0 0 Kelvin Smith Board Member 1.0 X 0 0 0 Roy Levenda Board Member 1.0 X 878 0 0 Timothy Black Board Member 1.0 X 13319 0 0 Ronald Westad CEO 40.0 X 526533 0 161565 Travis Fonnesbeck SVP & CFO 40.0 X 141431 0 18199 Amy Hysell President 40.0 X 233733 0 52157 Chad Forkenbrock EVP & Chief Operating Officer 40.0 X 162882 0 51081 Gregory Thorell SVP Residential Lending 40.0 X 210760 0 20270 Jason Paprocki EVP & Chief Strategy Officer 40.0 X 220680 0 43991 Juan Ruiz Sr. Director Employee Experience 40.0 X 157566 0 29929 Michael Thorell Arizona Market President & Chief Lending Officer 40.0 X 215195 0 21649 Travis Merrell SVP & Chief Credit Officer 40.0 X 159484 0 16940 William Randall Gaston SVP Commercial Lending 40.0 X 206094 0 17210 Diane Hank General Counsel & Chief Compliance Officer 40.0 X 154328 0 10964 Jared Shintaku VP & Director of Government Guarantee Lending 40.0 X 143655 0 14788 Melissa Gullotta Brown SVP Member Services 40.0 X 141546 0 50069 Randall Shipman SVP & Chief Information Officer 40.0 X 145122 0 24521 Ryan West Investment Representative 40.0 X 154091 0 15788 Scott Willits Commercial Loan Officer 40.0 X 169169 0 14594 3196746 0 563715 24 false true false Mark A Kirkorsky pc PO Box 25287 Tempe AZ 85385 Credit Collections 450720 MFP Capital 1239 Anderson Road Clawson MI 48017 Professional Services 365600 DBSI 6950 W Morelos Place Suite 1 Chandler AZ 85226 Design Services 359145 Diebold Incorporated PO Box 643543 Pittsburgh AL 15264 ATM Services 280293 PSCU Incorporated 560 Carillon Parkway St Petersburg FL 33716 After hours customer service 273200 18 0 INTEREST ON LOANS 522291 33238417 33238417 FEES AND SERVICE CHARGES 522130 10394939 10232224 162715 Interchange Revenue 522130 14846826 14846826 Insurance 524143 5671298 1090221 4581077 Warranty Income 524128 187625 187625 0 0 0 0 64339105 13861816 13861816 0 0 0 0 OTHER INCOME 522130 1816945 1816945 0 0 0 0 1816945 80017866 61412258 4743792 13861816 6218 2303300 24616770 1064804 3607825 1674769 283329 99515 1158282 1549553 1413191 4228007 1704024 292694 2797943 2695506 202684 Debit and ATM Processing Fees 6002878 Loan Servicing Expense 4481388 Loan Losses 3267466 1374202 64824348 67705527 56883149 0 0 1678498651 88686862 38850598 49836264 984604598 0 22816430 0 15786075 125455188 0 169607384 0 3171193266 46692752 0 0 2882271479 0 2928964231 X 242229035 0 242229035 0 3171193266 X 15193518 227035517 X false true X true false false true X 13407234 13407234 51880953 23136588 28744365 1604601 1444708 159893 21427267 14269302 7157965 366807 366807 49836264 Accrued Income Receivable 9508256 Operating Lease right -of-use assets 3003313 NCUSIF Deposit 26353805 CSV Life Insurance Policies 75003425 Other Assets 55077489 Loans held for sale 661096 169607384 Operating Lease Liabilities 3092340 Members' share accounts 2879179139 2882271479 Schedule D, Part IV, Line 2b Explanation of escrow agreement ESCROW ACCOUNTS ARE HELD TEMPORARILY FOR CURRENT CUSTOMERS ENGAGED IN LOAN ACTIVITY. X X true true X X X false true false Ronald Westad CEO 520442 0 0 0 6091 0 159564 0 2001 0 688098 0 0 0 Travis Fonnesbeck SVP & CFO 115019 0 18933 0 7479 0 12341 0 5858 0 159630 0 0 0 Amy Hysell President 206903 0 22043 0 4787 0 50371 0 1786 0 285890 0 0 0 Jason Paprocki EVP & Chief Strategy Officer 184128 0 22440 0 14112 0 40082 0 3909 0 264671 0 0 0 Michael Thorell Arizona Market President & Chief Lending Officer 180208 0 24534 0 10453 0 15825 0 5824 0 236844 0 0 0 Gregory Thorell SVP Residential Lending 161647 0 25834 0 23279 0 14095 0 6175 0 231030 0 0 0 William Randall Gaston SVP Commercial Lending 165102 0 21722 0 19270 0 11286 0 5924 0 223304 0 0 0 Chad Forkenbrock EVP & Chief Operating Officer 139068 0 18114 0 5700 0 47172 0 3909 0 213963 0 0 0 Juan Ruiz Sr. Director Employee Experience 136981 0 20231 0 354 0 25852 0 4077 0 187495 0 0 0 Travis Merrell SVP & Chief Credit Officer 135505 0 16825 0 7154 0 10692 0 6248 0 176424 0 0 0 Melissa Gullotta Brown SVP Member Services 113967 0 19324 0 8255 0 43966 0 6103 0 191615 0 0 0 Scott Willits Commercial Loan Officer 168355 0 0 0 814 0 8462 0 6132 0 183763 0 0 0 Ryan West Investment Representative 152555 0 0 0 1536 0 9460 0 6328 0 169879 0 0 0 Randall Shipman SVP & Chief Information Officer 125731 0 18869 0 522 0 23489 0 1032 0 169643 0 0 0 Diane Hank General Counsel & Chief Compliance Officer 133256 0 20835 0 237 0 6808 0 4156 0 165292 0 0 0 Jared Shintaku VP & Director of Government Guarantee Lending 139891 0 0 0 3764 0 8820 0 5968 0 158443 0 0 0 Schedule J, Part I, Line 1a Travel for companions Arizona Financial Credit Union (AFCU) allows a companion to join each director or executive leadership team member on business travel. The companions are expected to participate in the networking events and represent AFCU. The travel expenses are treated as taxable compensation. Schedule J, Part I, Line 1a Tax indemnification and gross-up payments A tax gross-up was paid by AFCU to Ronald Westad. The fair value was included in his annual taxable income. Schedule J, Part I, Line 4b Supplemental nonqualified retirement plan Arizona Financial Credit Union (AFCU) provides a supplemental nonqualified retirement plan for executives. The organization makes annual contributions to the plan. Contributions to the plan for 2022 are as follows: Ronald Westad: $159,564 Amy Hysell: $33,835 Jason Paprocki: $29,284 Michael James Thorell: $5,558 Gregory Thorell: $6,168 William Randall Gaston: $5,340 Chad Forkenbrock: $35,449 Travis Merrell: $4,932 Juan Ruiz: $14,852 Diane Hank: $2,755 Travis Fonnesbeck: $4,839 Randall Shipman: $15,977 There were no distributions made from the plan during 2022. Form 990, Part VI, Line 2 Family/business relationships amongst interested persons Michael Thorell and Gregory Thorell - Family relationship Form 990, Part VI, Line 6 Classes of members or stockholders Membership Eligibility AZFCU is chartered with the State of Arizona. Membership eligibility includes those who have a family or household member who is already a member of AZFCU those who are members of Local First Arizona and those who live, work, worship, attend school, or regularly conduct business in one of the following counties: Coconino, Gila, La Paz, Maricopa, Mahave, Navajo, Pima, Pinal, Yavapai, and Yuma. Voting Rights: Irrespective of the number of shares, no member has more than one vote. Application for Membership: Applications for membership from persons eligible for membership shall be signed by the applicant on forms approved by the board. Upon approval of an application by a membership officer and upon subscription to at least one share of this credit union and the payment of the initial installment, and the payment of a uniform entrance fee if required by the board, the applicant is admitted to membership. Form 990, Part VI, Line 8b Documentation of meetings held by committees of governing body There is no committee with authority to act on behalf of the governing body. Form 990, Part VI, Line 11b Review of form 990 by governing body The Form 990 is prepared and reviewed by Crowe LLP based on information provided by AZFCU management. The draft of the return is reviewed by management with any changes incorporated. Following management review the full 990 is provided to the board of directors for review and approval from the board of directors executive committee prior to filing with the IRS. Form 990, Part VI, Line 15a Process to establish compensation of top management official Regular salary reviews are conducted for the CEO utilizing the services of a third-party compensation consultant. Data from the Bureau of Labor Statistics and professional compensation organizations is used for comparative compensation purposes. All salary changes are based on organizational results as outlined in a performance review and is ultimately decided by the board of directors. This process was last approved by the board in December 2019. Form 990, Part VI, Line 15b Process to establish compensation of other employees An annual salary review is conducted for all employees, including officers and key employees using various market pricing tools and resources. Data from the Bureau of Labor statistics and professional compensation organizations is used for comparative compensation purposes. All salary changes are based on the results of competitive market data. Form 990, Part VI, Line 19 Required documents available to the public THE CREDIT UNION'S GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS ARE MADE AVAILABLE TO THE PUBLIC UPON REQUEST. Form 990, Part XI, Line 9 Other changes in net assets or fund balances Fund Balance on the date of conversion to STate chartered credit union - XXX-XX-XXXX; Form 990, Part VI, Line 12b and 12c Monitoring of Conflicts of Interest AZFcu's conflict of interest policies are outlined in its employee handbook. AZFCU regularly monitors conflicts and enforcement with the policy and intends to implement an annual reporting process in its first full year of becoming state chartered credit union under IRC SEction 501(c)(14). Form 990, Part IV, Line 12a Audited Financial Statements AZFCU obtained audited financial statements for the calendar year ending December 31, 2022. The tax reporting period for IRS Form 990 is for the short period July 1, 2022 to December 31, 2022. Arizona Federal Insurance Solutions LLC 333 N 44th Street Phoenix AZ 85008 203242545 Insurance AZ 5772737 21223273 Arizona Financial Credit Union Western States Financial Group LLC 333 N 44th Street Phoenix AZ AZ 85008 861020339 Auto-Buying Services AZ 192326 4808421 Arizona Financial Credit Union