2021-10-14T15:31:20-05:00 2020-12-31 350921680 CROWE LLP 225 West Wacker Drive Suite 2600 Chicago IL 606061224 990 2020-01-01 390671465 University of Wisconsin Credit Union UNIV 6082325000 3500 University Ave Madison WI 53705 Brad Mcclain Exec VP/CFO 2021-10-14 true Brad Mcclain 999009999 Diane Brown P01578407 3128997000 2020 2022-09-23 18:48:47Z UW Credit Union Paul Kundert 3500 University Ave Madison WI 53705 1775050769 false X www.uwcu.org X 1931 WI The University of Wisconsin Credit Union is a federally insured financial institution that provides consumer financial products and services to meet the money management goals of its members. 9 9 1076 18 2636345 0 0 0 154127432 159211200 23685106 58193643 -13689 277135 177798849 217681978 1357300 2344712 0 53000969 65098398 0 0 0 80885329 98673498 135243598 166116608 42555251 51565370 3331480865 4205781575 2999685373 3808937047 331795492 396844528 The mission of University of Wisconsin Credit Union (UWCU) is to encourage thrift among its members, to create a source of credit at a fair and reasonable rate of interest, to provide an opportunity for its members to improve their economic and social conditions and to perform the functions and exercise the powers designated for credit unions under applicable law. false false UWCU is one of Wisconsin's fastest-growing home purchase financing lenders and is among the top mortgage lenders in Wisconsin. UWCU assisted over 10,000 households who purchased or refinanced homes. UWCU continued to be a top educational lender in 2020 and offered both fixed and variable rate Private Student Loans. UWCU refinanced nearly $20 million in student loans, lowering members' rates. In 2020, UWCU welcomed 32,268 new members and opened 25,588 new checking accounts. The Credit Union's honest and straightforward business practices continue to drive membership and relationship growth. At the end of 2020, UWCU served over 293,000 members and nearly 227,000 checking accounts. UWCU continues to focus on delivering financial services in a trustworthy manner. UWCU continues to provide credit consultation services, which is a free service that benefits any member. Members can meet with a financial specialist to review their credit report, better understand their credit score, or research options to lower rates on existing loans. UWCU offers a student loan refinance product which allows members to refinance multiple loans into one with a low rate and one easy payment. UWCU offers low-limit, low-rate credit cards for young adults to help them build their credit responsibly, and affordable no annual fee secured credit cards for members who need to repair their credit. UWCU offers an overdraft line-of-credit protection with no annual fee. Members have free access to their credit scores through Web Branch. 0 false false false false false false true false true false false false true true true false false false false false false false false false false true false true false false false false false false false false false false false false false false true 103535 0 true 1076 true true true false false false false false false false X 9 9 false false false false true true true true true false true true true true true true true true false false false X Brad McClain 6082325000 3500 University Avenue Madison WI 53705 Jeffrey Russell Director - Vice Chair 3.0 X X 900 0 0 Kelly Wilson Director - Secretary 3.0 X X 900 0 0 Marion Brown Director - Treasurer 3.0 X X 900 0 0 Steven Rick Director - Chair 3.0 X X 900 0 0 Michael Carr Director 2.0 X 900 0 0 Michael Collins Director 2.0 X 900 0 0 Phyllis King Director 2.0 X 450 0 0 Shenita BrokenBurr Director 2.0 X 900 0 0 Terry Warfield Director 3.0 X 900 0 0 Brad McClain Exec VP/CFO 45.0 X 424089 0 51334 Jonathan Bundy CLO/Asst. Corp. Secretary 45.0 X 280122 0 52091 Paul Kundert President/CEO 45.0 X 868440 0 363320 Amy Kriebs VP of Member Sales & Service (Partial Starting June 2020) 45.0 X 157410 0 35582 Anne Norman SVP and Chief Marketing Officer 45.0 X 246353 0 47181 David Mickelson VP Member Service Operations & Card Programs 45.0 X 228887 0 27773 Eric Bangerter VP of E-Commerce 45.0 X 235085 0 31130 Julio Rios Vice President of Mortgage Lending 45.0 X 378371 0 44011 Lee Wiersma Exec VP/CHRO (Partial to July 2020) 45.0 X 218907 0 36767 Mike Long Exec VP/CCO (Partial to Sept 2020) 45.0 X 309936 0 43194 Pam Peterson SVP/CHRO 45.0 X 214216 0 44283 Rob Van Nevel Exec VP & COO 45.0 X 393157 0 38279 Ashley Bergren Mortgage Loan Officer 47.0 X 382320 0 22533 Jeremy Leibfried Mortgage Loan Officer 50.0 X 392374 0 27194 Rachel Solt Mortgage Loan Officer 57.0 X 404854 0 42726 Renee Bosnjak Mortgage Loan Officerr 51.0 X 451301 0 18658 Richard McKinley Mortgage Loan Officer 53.0 X 427747 0 44884 6021219 0 970940 114 false true false ADAMS OUTDOOR ADVERTISING 102 East Badger Rd Madison WI 53713 ADVERTISING 574504 Adrenaline LLC 195 New Hampshire Ave Portsmouth NH 03801 Consulting 383085 Adam Albrecht The Weaponary 1661 N Water St 206 Milwaukee WI 53202 Consulting 348329 Quality Mortgage Services LLC 216 Centerview Dr Bldg 7 Suite 280 Brentwood TN 37027 File Review Services 205660 Darnieder & Sosnay 735 N Water Street Milwaukee WI 53202 Legal Services 202716 9 0 Interest on Loans 522100 110805909 110805909 Card and ATM Interchange 522100 28229911 28052974 176937 Service Charges and Fees 522100 5352564 5352564 Loan Servicing Fees 522100 9139442 9139442 Investment and insurance services 523930 5683374 3223966 2459408 0 0 0 0 159211200 5406486 5406486 695836 418701 277135 0 277135 277135 1609737247 1556950090 0 52787157 52787157 52787157 0 0 0 0 0 217681978 209362012 2636345 5683621 2344712 4777568 48918399 3796026 3752642 3853763 0 258529 506924 0 0 0 1238156 7115108 5269177 6321039 0 5146206 65050 0 297842 11969444 0 6030054 385822 loan servicing expense 23168534 loan loss provision 21741193 card processing expense 5993632 fraud forgery losses 704742 2462046 166116608 34265367 30865155 412055800 946093388 0 0 5470770 8598682 0 0 0 0 2499466072 2829833567 0 0 37120520 42708325 174922449 49922365 104245577 125000084 0 209565133 182046171 0 29291626 40636203 3331480865 4205781575 35267538 47219202 0 0 6539701 6963458 0 0 10844539 14860341 0 0 200000000 204000000 2747033595 3535894046 2999685373 3808937047 X 331795492 396844528 331795492 396844528 3331480865 4205781575 X 51565370 2883920 0 0 0 10599746 X false true X true false false true X 0 24475046 24475046 0 89222762 22066728 67156034 0 2942294 2284258 658036 0 27227304 18244271 8983033 0 31055043 7327108 23727935 125000084 Member Deposits 3523226588 Outstanding Cashiers Checks 12667458 3535894046 X 194989788 0 0 0 -22692190 -22692190 217681978 0 0 217681978 132824672 -33291936 -33291936 166116608 0 0 166116608 Schedule D, Part IV, Line 2b Explanation of escrow agreement The Credit Union maintains real estate escrow accounts used to pay members' real estate taxes and insurance. Schedule D, Part X, Line 2 FIN 48 (ASC 740) footnote The Credit Union is exempt, by statute, from federal and state income taxes. The Credit Union does, however, pay sales tax, property tax, payroll taxes, and federal and state income tax on unrelated business activities. The Internal Revenue Service (IRS) and certain taxing authorities are evaluating what, if any, products and services provided by state chartered credit unions or their credit union service organizations 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 issued certain technical advice memorandums identifying certain activities as being subject to UBIT. 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 credit unions were granted non-taxable status. The tax liability recorded by the Credit Union as of December 31, 2020 and 2019 attributed to unrelated business activities was not material. A tax position will be recognized as a benefit only if it is "more likely than not" that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized will be the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the "more likely than not" test, no tax benefit will be recorded. There is no accrual necessary at year-end 2020 and 2019. The Credit Union recognizes interest and/or penalties related to income tax matters in the operations section of the consolidated statement of income. No interest or penalties were incurred during 2020 and 2019. Schedule D, Part XI, Line 2(d) Other revenues in audited financial statements not in form 990 Mortgage Market Hedging Valuation - 10599746 Provision for Loan Loss - -21741193 Interest Expense - -11969444 Rental Expenses - 418701 Schedule D, Part XI, Line 4(b) Other revenues in form 990 not in audited financial statements Rental Expenses - Schedule D, Part XII, Line 2(d) Other expenses in audited financial statements not in form 990 Provision for Loan Loss - -21741193 Interest Expense - -11969444 Rental Expenses - 418701 true Community Shares of Wisconsin 612 West Main St Madison WI 53703 391172378 501(C)(3) 27140 0 N/A N/A Community Outreach Madison Community Foundation 111 N Fairchild St Madison WI 537032830 396038248 501(C)(3) 200000 0 N/A N/A Community OUtreach Madison Region Economic Partnership 455 Science Dr Madison WI 53711 711015136 501(C)(3) 10000 0 N/A N/A Community Outreach United Way of Dane County 2059 Atwood Ave Madison WI 53704 390817532 501(C)(3) 1415545 0 N/A N/A Community Outreach United Way of Greater Milwaukee and Waukesha County Inc 225 West Vine St Milwaukee WI 53212 390806190 501(C)(3) 600432 0 N/A N/A Community Outreach University of Wisconsin Foundation 1848 University Ave Madison WI 537264090 390743975 501(C)(3) 61000 0 N/A N/A Community Outreach The UWM Foundation Inc 1440 East North Ave Milwaukee WI 53202 237337744 501(C)(3) 11000 0 N/A N/A Community Outreach 7 0 Schedule I, Part I, Line 2 Procedures for monitoring use of grant funds. UWCU contributes to organizations that are tax exempt organizations. UWCU contributes to support the general operations of these organizations. X true true X X X X X false true false Paul Kundert President/CEO 599747 0 243200 0 25493 0 328264 0 35056 0 1231760 0 0 0 Brad McClain Exec VP/CFO 271272 0 116629 0 36188 0 25450 0 25884 0 475423 0 0 0 Jonathan Bundy CLO/Asst. Corp. Secretary 179400 0 79836 0 20886 0 23835 0 28256 0 332213 0 0 0 Rob Van Nevel Exec VP & COO 255883 0 104318 0 32956 0 24721 0 13558 0 431436 0 0 0 Julio Rios Vice President of Mortgage Lending 148405 0 203072 0 26894 0 17050 0 26961 0 422382 0 0 0 Mike Long Exec VP/CCO (Partial to Sept 2020) 186381 0 98462 0 25093 0 25371 0 17823 0 353130 0 0 0 Anne Norman SVP and Chief Marketing Officer 179569 0 65433 0 1351 0 20732 0 26449 0 293534 0 0 0 Eric Bangerter VP of E-Commerce 187481 0 40137 0 7467 0 19973 0 11157 0 266215 0 0 0 Pam Peterson SVP/CHRO 171458 0 33222 0 9536 0 16416 0 27867 0 258499 0 0 0 David Mickelson VP Member Service Operations & Card Programs 165429 0 40107 0 23351 0 17806 0 9967 0 256660 0 0 0 Lee Wiersma Exec VP/CHRO (Partial to July 2020) 113761 0 82967 0 22179 0 20237 0 16530 0 255674 0 0 0 Amy Kriebs VP of Member Sales & Service (Partial Starting June 2020) 126919 0 21464 0 9027 0 12438 0 23144 0 192992 0 0 0 Richard McKinley Mortgage Loan Officer 91753 0 334011 0 1983 0 18100 0 26784 0 472631 0 0 0 Renee Bosnjak Mortgage Loan Officerr 75723 0 375420 0 158 0 12924 0 5734 0 469959 0 0 0 Rachel Solt Mortgage Loan Officer 73049 0 331745 0 60 0 16380 0 26346 0 447580 0 0 0 Jeremy Leibfried Mortgage Loan Officer 69380 0 322936 0 58 0 11137 0 16057 0 419568 0 0 0 Ashley Bergren Mortgage Loan Officer 66233 0 316039 0 48 0 14753 0 7780 0 404853 0 0 0 Schedule J, Part I, Line 1a Travel for companions AS PRESCRIBED IN THE BOARD GOVERNANCE POLICY, TO PROVIDE FOR THE DEVELOPMENT OF MEMBER ELECTED BOARD MEMBERS, AND BUILD THEIR KNOWLEDGE TO SERVE EFFECTIVELY, EACH DIRECTOR IS EXPECTED TO SEEK OUT EDUCATIONAL AND DEVELOPMENT CONFERENCES AND OPPORTUNITIES FOR THIS PURPOSE. DIRECTORS ARE ENCOURAGED TO PARTICIPATE IN AT LEAST ONE EDUCATIONAL CONFERENCE EVERY TWO YEARS. CONSISTENT WITH THE GUIDANCE OF THE NATIONAL CREDIT UNION ADMINISTRATION AND TO ENCOURAGE DIRECTORS TO TAKE PERSONAL TIME TO ATTEND EDUCATIONAL AND DEVELOPMENTAL MEETINGS, DIRECTORS AS A COURTESY MAY BE REIMBURSED FOR THE REASONABLE COSTS OF THEIR TRAVEL AND ATTENDANCE INCLUDING A GUEST, WHO MAY ACCOMPANY THEM ON CREDIT UNION RELATED TRAVEL. WHILE THE NATIONAL CREDIT UNION ADMINISTRATION HAS INDICATED IN LETTER 05-FCU-02 THAT THEY DO NOT CONSIDER GUEST TRAVEL TO BE COMPENSATION TO DIRECTORS, FOR TAX REPORTING PURPOSES THE CREDIT UNION DOES ISSUE FORM 1099-MISC RELATED TO GUEST TRAVEL. FOR 2020, THE CREDIT UNION DID NOT PAY FOR ANY COMPANION TRAVEL . Schedule J, Part I, Line 4b Supplemental nonqualified retirement plan The Board established a Deferred Compensation Plan for the President. The plan is designed to compensate for benefits not eligible under the 401(k) plan as a result of limitations imposed by the IRS on the allowable contributions, as well as to provide a long-term incentive for sustained performance. Total contributions to the plan in 2020 were $302,814. The President did not vest in any of the plan contributions in 2020 resulting in taxable income. Cumulative deferred compensation payable to the President is a general creditor obligation of the Credit Union. Future disbursements (if any) of the cumulative deferred compensation payable are contingent on the conditions established by the plan. Form 990, Part VI, Line 15b PROCESS TO ESTABLISH COMPENSATION - OFFICERS & KEY EMPLOYEES THE CHIEF EXECUTIVE OFFICER OF THE CREDIT UNION APPROVES THE COMPENSATION OF ALL SUBORDINATE OFFICERS OF THE CREDIT UNION. CONSISTENT WITH ALL OTHER CREDIT UNION EMPLOYEE POSITIONS, THE CREDIT UNION FOLLOWS A COMPENSATION SYSTEM THAT ASSIGNS A POSITION GRADE AND SALARY RANGE FOR EACH POSITION. AT LEAST BIENNIALLY, INDEPENDENT BENCHMARK DATA FROM AT LEAST TWO SOURCES IS OBTAINED. BASED ON THE MEDIAN OF THE BLENDED BENCHMARKS, POSITIONS ARE ASSIGNED TO A SALARY GRADE. FOR SUBORDINATE OFFICERS, COMPENSATION ADJUSTMENTS CAN BE MADE BY THE CHIEF EXECUTIVE OFFICER BASED ON INDIVIDUAL PERFORMANCE WITHIN THE CONFINES OF THE ESTABLISHED SALARY GRADE. ALL EMPLOYEES OF THE CREDIT UNION, INCLUDING THE OFFICERS SUBORDINATE TO THE CHIEF EXECUTIVE OFFICER, ARE ELIGIBLE TO RECEIVE BASE PAY AS WELL AS A VARIABLE PAY BONUS BASED ON THE ATTAINMENT OF ORGANIZATIONAL GOALS AND INDIVIDUAL PERFORMANCE, WHICH INCLUDE MEMBER SATISFACTION, AND FINANCIAL STEWARDSHIP. THE VARIABLE PAY POTENTIAL BONUS POOL FUNDS ARE APPROVED BY THE BOARD OF DIRECTORS. EMPLOYEES, INCLUDING OFFICERS SUBORDINATE TO THE CHIEF EXECUTIVE OFFICER, PARTICIPATE IN THE BONUS POOL BASED ON THEIR INDIVIDUAL PERFORMANCE AND SALARY GRADE. THE OFFICERS SUBORDINATE TO THE CHIEF EXECUTIVE OFFICER RECEIVE THE SAME LIFE, MEDICAL, AND DENTAL INSURANCE, AND 401(K) BENEFITS THAT ARE AVAILABLE TO ALL FULL-TIME EMPLOYEES OF THE CREDIT UNION. Form 990, Part VI, Line 15a PROCESS TO ESTABLISH COMPENSATION OF TOP MANAGEMENT OFFICIAL As provided by the bylaws, the President is the chief executive officer and the top management official. The President serves at the pleasure of the Board of Directors. As prescribed by the bylaws the Board of Directors sets the compensation of the President. The Board has executed a formal employment agreement with the President, which provides that either party may terminate the agreement at any time. Per the terms of the contract, biennially the Board sets the compensation of the President using independently obtained data to benchmark the market value of the position, which was last undertaken in 2018. All employees of the Credit Union, including the President, are eligible to receive a base pay as well as a variable pay bonus based on the attainment of organizational goals, which include member satisfaction and financial stewardship. The President receives the same life, medical, disability, and dental insurance, and 401(K) benefits that are available to all full-time employees of the Credit Union. The President is provided with other benefits which include a supplemental disability insurance policy and an automobile allowance. The Board of Directors' deliberations and determinations regarding compensation are recorded on a timely basis in the minutes of their meetings. Form 990, Part VI, Line 1a Delegate broad authority to a committee The University of Wisconsin Credit Union DELEGATEs broad AUTHORITY to act on behalf of the full Board TO AN EXECUTIVE COMMITTEE CONSISTING OF four Board members including THE BOARD CHAIR, Vice Chair, Secretary and Treasurer. Form 990, Part VI, Line 6 Classes of members or stockholders All members of the Credit Union are given one vote in election of board members, or the approval of significant decisions, without preference to the amount of funds they have on deposit with the credit union. Form 990, Part VI, Line 7a Members or stockholders electing members of governing body The University of Wisconsin Credit Union is a member owned cooperative business organization, governed by a nine member Board of Directors. The Board is comprised of active members of the Credit Union who are selected by the membership through a democratic election process. Form 990, Part VI, Line 7b Decisions requiring approval by members or stockholders At any membership meeting, members may submit a petition in advance to allow a majority of the members present to direct the board to consider policies proposed by the members, or reconsider any decision of the directors, officers, or committees OR TO AMEND THE BYLAWS. Furthermore, the members must approve of any consolidations or mergers when it results in a change of membership. Form 990, Part VI, Line 11b Review of form 990 by governing body The CEO, CFO and Controller perform a thorough review of the draft form 990 prior to the full board review. A draft copy of the form 990 is provided to the audit committee and the paid tax preparer presents excerpts from the return. A final copy of the return is provided to the full board prior to filing the return with the IRS. Form 990, Part VI, Line 12c Conflict of interest policy Board members, officers and employees are required to annually disclose any conflicts of interests they may have with the organization. The Chief Legal Officer reviews each policy statement signed by these individuals to determine if any conflicts have occurred and need to be brought to the attention of the Board. If a conflict arises, the respective board member will abstain him/herself from any related discussion, vote or similar action on the matter. Form 990, Part VI, Line 19 Required documents available to the public The organization's governing documents and financial statements are available on the credit union's public website. The conflict of interest policy is available to employees of the credit union on the internal intranet and is required to be reviewed and signed by them annually; the conflict of interest policy is not available to the public. Form 990, Part VII, Section A, Line 1a, Column (D) Board compensation policy As a convenience to UW Credit Union, and to minimize the Credit Union's administrative burden related to processing and paying incidental out-of-pocket expenses such as telephone, local mileage, parking, copying, postage, and supplies associated with duties of the Board Director positions, the Board has implemented a policy of per diem reimbursement of expense. Directors are reimbursed $75 per month for an annual total of $900 per Director. Alternatively, the Directors have the option to forego the per diem method and be reimbursed under the accountable reimbursement method. Form 990, Part XI, Line 9 Other changes in net assets or fund balances Mortgage Market Hedging Valuation - 10599746;