2020-01-31T16:24:28-06:00 2018-12-31 BDO USA LLP 100 PARK AVENUE NEW YORK NY 100175001 990 2018-01-01 131726048 NEW YORK STATE CHARTERED CREDIT UNIONS - PROGRESSIVE CREDIT UNION % JOHN MASULLO NEWY 2126958900 131 WEST 33RD STREET 7TH FLOOR NEW YORK NY 10001 BRENT DANN SVP/CAO 2126958900 2020-01-31 true Paul Hammerschmidt P01384178 2128858000 24.98.146.212 26308920200315000004 2020-01-31 P 48C336AAB7D1DE8463E223BE15B361E384766368 7650403D266B766C333176AE000A8E3E9E2A92DE 2018 2020-11-19 02:30:22Z X PROGRESSIVE CREDIT UNION JAMES SCHENCK 131 WEST 33RD STREET 7TH FL NEW YORK NY 10001 47341579 false 9217 X www.penfed.org X 1918 NY PROGRESSIVE CREDIT UNION IS CHARTERED UNDER THE NEW YORK BANKING LAW. THE ORGANIZATION IS A COOPERATIVE INSTITUTION & EXISTS FOR THE FINANCIAL SRVCS. BENEFIT OF ITS MEMBERS. X 5 4 47 4 0 39759 0 0 19409091 15558890 160275 6750092 0 0 19569366 22308982 0 0 0 0 6480236 6774211 0 0 0 110267450 153333122 116747686 160107333 -97178320 -137798351 469028562 0 376365772 0 92662790 0 X PROGRESSIVE CREDIT UNION IS CHARTERED UNDER THE NEW YORK BANKING LAW. THE ORGANIZATION IS A COOPERATIVE INSTITUTION AND EXISTS FOR THE FINANCIAL SERVICES BENEFIT OF ITS MEMBERS. false true PROGRESSIVE CREDIT UNION RECEIVED ITS CHARTER IN 1918 FROM THE STATE OF NEW YORK. AT DECEMBER 31, 2018 IT HAD 2,821 MEMBERS HAVING APPROXIMATELY $242,052,000 IN SHARES, SHARE DRAFTS AND SHARE CERTIFICATES ON DEPOSIT WITH THE CREDIT UNION. IN 2018 THE CREDIT UNION GRANTED APPROXIMATELY $19,788,000 IN NEW LOANS, WHICH INCLUDED LOANS FOR THE PURCHASE OF PREVIOUSLY FORECLOSED TAXI MEDALLIONS IN NEW YORK, NEWARK, CHICAGO PHILADELPHIA, ATLANTA, MIAMI, AND BOSTON, AND THE MODIFICATION OF EXISTING TAXI MEDALLION LOANS. THE CREDIT UNION ALSO GRANTS LOANS TO FINANCE COMMERCIAL PROPERTIES AND RESIDENTIAL MORTGAGES. 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 false false true false false false false false false false false true false true true true false false true X 0 0 47 true true true false false false false false true false X 5 4 false false false false true true true true true false false false true true true true true true false false X JOHN MASULLO 9177935169 131 WEST 33RD STREET 7TH FLOOR NEW YORK NY 10001 X ROBERT A FAMILANT CEO/TREASURER 37.5 0.0 X X 1927411 0 42160 JOEL SLOMON PRESIDENT 1.0 0.0 X X 0 0 0 GERALD SHULMAN VICE PRESIDENT 1.0 0.0 X X 0 0 0 DEBORAH CHASSEN SECRETARY 1.0 0.0 X X 0 0 0 BRIAN WORKMAN DIRECTOR 1.0 0.0 X 0 0 0 ROCCO SABINO FROM 118 CHIEF FINANCIAL OFFICER 37.5 0.0 X 164904 0 0 MARK ENTIN FROM 118 CHIEF OPERATING OFFICER 37.5 0.0 X 231730 0 0 EMILY OAMI SENIOR ADVISOR 37.5 0.0 X 185077 0 30695 RITA RYAN CHIEF LENDING OFFICER 37.5 0.0 X 170950 0 1532 JOSEPH ANCONA CHIEF CREDIT OFFICER 37.5 0.0 X 198762 0 21623 DAVID KOSHERS GENERAL COUNSEL 37.5 0.0 X 163942 0 13167 LUKE PARRIS DIRECTOR OF LENDING/PART. 37.5 0.0 X 136907 0 20123 JOHN MASULLO SENIOR ACCOUNTANT 37.5 0.0 X 125363 0 14559 DWAYNE LEVERETT DIR., COMMERICAL REAL ESTATE 37.5 0.0 X 124962 0 15041 3430008 0 158900 16 false true false CU ANSWERS 600 28TH STREET SE SUITE 100 GRAND RAPIDS MI 49546 IT SYSTEMS PROVIDER 279176 BDO USA LLP 100 PARK AVENUE NEW YORK NY 10017 AUDIT & TAX 201652 PRYOR CASHMAN 7 TIMES SQUARE NEW YORK NY 10036 LEGAL 197184 CULLEN AND DYCKMAN LLP 100 QUENTIN ROOSEVELT BOULEVARD GARDEN CITY NY 11530 LEGAL 185533 HACKETT FEINBERG PC 155 FEDERAL STREET BOSTON MA 02110 LEGAL 177797 11 0 INTEREST ON LOANS TO MEMBERS 522100 14462733 14462733 LOAN AND DEPOSIT TRANSACTION FEES 522100 1096157 1096157 15558890 1356122 1356122 0 0 0 0 0 14476922 15949645 14645952 10386645 -169030 5563000 5393970 5393970 0 0 0 0 0 0 0 0 0 0 22308982 15558890 6750092 0 0 0 0 2754459 0 2916639 719028 365862 18223 422129 1853720 237693 0 0 14126 777846 45953 73862 282786 0 1226832 29438 0 7470 6722588 0 208092 77885 ALLOWANCE FOR LOAN LOSSES 108739877 VAL LOSS ON FORECLOSED ASSET 16004596 VAL LOSS ON REC. FROM SALE 0 OF FORECLOSED ASSETS 14700537 1907692 160107333 0 0 0 0 0 38958686 0 0 0 0 0 13435000 0 0 0 0 0 0 0 0 0 10709506 0 139900 0 0 0 0 0 0 0 405785470 0 469028562 0 2494087 0 0 0 0 0 0 0 0 0 0 0 84000000 0 0 0 289871685 0 376365772 0 X 0 0 0 0 92662790 0 92662790 0 469028562 0 X -137798351 45135561 X X false true X true false 22308982 22308982 22308982 160107333 160107333 160107333 X X X false false false ROBERT A FAMILANT CEO/TREASURER 1927411 0 0 0 0 0 2855 0 39305 0 1969571 0 0 0 ROCCO SABINO FROM 118 CHIEF FINANCIAL OFFICER 164904 0 0 0 0 0 0 0 0 0 164904 0 0 0 MARK ENTIN FROM 118 CHIEF OPERATING OFFICER 231730 0 0 0 0 0 0 0 0 0 231730 0 0 0 EMILY OAMI SENIOR ADVISOR 173077 0 12000 0 0 0 6729 0 23966 0 215772 0 0 0 RITA RYAN CHIEF LENDING OFFICER 170950 0 0 0 0 0 1317 0 215 0 172482 0 0 0 JOSEPH ANCONA CHIEF CREDIT OFFICER 198762 0 0 0 0 0 7950 0 13673 0 220385 0 0 0 DAVID KOSHERS GENERAL COUNSEL 163942 0 0 0 0 0 5738 0 7429 0 177109 0 0 0 LUKE PARRIS DIRECTOR OF LENDING/PART. 126923 0 9984 0 0 0 5077 0 15046 0 157030 0 0 0 Cash and cash equivalents 2018-12-31 38505759 See Part III 530197038 Pentagon Federal Credit Union 2930 Eisenhower Ave Alexandria VA 22314 501(C)(1) Federal Home Loan Bank of NY Stock 2018-12-31 112500 See Part III 530197038 Pentagon Federal Credit Union 2930 Eisenhower Ave Alexandria VA 22314 501(C)(1) Foreclosed assets 2018-12-31 5628854 See Part III 530197038 Pentagon Federal Credit Union 2930 Eisenhower Ave Alexandria VA 22314 501(C)(1) Loans to members, net 2018-12-31 216179905 See Part III 530197038 Pentagon Federal Credit Union 2930 Eisenhower Ave Alexandria VA 22314 501(C)(1) Accrued interest receivable 2018-12-31 1580773 See Part III 530197038 Pentagon Federal Credit Union 2930 Eisenhower Ave Alexandria VA 22314 501(C)(1) Premises and equipment, net 2018-12-31 3642979 See Part III 530197038 Pentagon Federal Credit Union 2930 Eisenhower Ave Alexandria VA 22314 501(C)(1) NCUSIF deposit 2018-12-31 2102646 See Part III 530197038 Pentagon Federal Credit Union 2930 Eisenhower Ave Alexandria VA 22314 501(C)(1) Rec. from split-dollar life insurance 2018-12-31 13435000 See Part III 530197038 Pentagon Federal Credit Union 2930 Eisenhower Ave Alexandria VA 22314 501(C)(1) Rec. from sales of foreclosed assets 2018-12-31 5474806 See Part III 530197038 Pentagon Federal Credit Union 2930 Eisenhower Ave Alexandria VA 22314 501(C)(1) Net pension asset 2018-12-31 3380362 See Part III 530197038 Pentagon Federal Credit Union 2930 Eisenhower Ave Alexandria VA 22314 501(C)(1) Other assets 2018-12-31 1058761 See Part III 530197038 Pentagon Federal Credit Union 2930 Eisenhower Ave Alexandria VA 22314 501(C)(1) Members accounts 2018-12-31 -242051043 See Part III 530197038 Pentagon Federal Credit Union 2930 Eisenhower Ave Alexandria VA 22314 501(C)(1) Accounts payable and accrued expenses 2018-12-31 -3055209 See Part III 530197038 Pentagon Federal Credit Union 2930 Eisenhower Ave Alexandria VA 22314 501(C)(1) Accrued int. pay. on other borrowed fund 2018-12-31 -36587 See Part III 530197038 Pentagon Federal Credit Union 2930 Eisenhower Ave Alexandria VA 22314 501(C)(1) Other borrowed funds 2018-12-31 -85100000 See Part III 530197038 Pentagon Federal Credit Union 2930 Eisenhower Ave Alexandria VA 22314 501(C)(1) Deferred revenue and other liabilities 2018-12-31 -5804550 See Part III 530197038 Pentagon Federal Credit Union 2930 Eisenhower Ave Alexandria VA 22314 501(C)(1) false true false false true true true true false PART I, LINE 1, COLUMN (D): See response to Form 990, Part I, Line 2 and Part III, Line 3 and Part XI, Line 9 (reported in Schedule O) for details concerning NEW YORK STATE CHARTERED CREDIT UNIONS - PROGRESSIVE CREDIT UNION MERGER WITH PENTAGON FEDERAL CREDIT UNION FOUNDATION ("PENFED"). A valuation of NEW YORK STATE CHARTERED CREDIT UNIONS - PROGRESSIVE CREDIT UNION was performed by third-party valuation specialists. The report indicates that the following factors were utilized to determine FMV of the medallion loan portfolio and all other assets and liabilities transferred to PenFed. In applying the Discounted Cash Flow Method, Fair Value was based on the present value of the expected cash flows. The process involved the following steps: 1. Monthly principal and/or interest cash flows were projected based on the contractual terms of the loans, including both maturity and contractual amortization. 2. Charge-offs and losses were calculated based on the estimated medallion values. 3. A discount rate was developed based on the relative risk of the cash flows, taking into account loan type, liquidity risk, maturity of loans, servicing costs, and a required return on capital. 4. The monthly principal and interest cash flows were discounted to present value and aggregated to arrive at the calculated value of the loans. Discount rates were estimated using the "build-up" method, which considers the funding costs, a market participants required rate of return on equity capital, plus adjustments reflecting servicing costs and a liquidity premium. The discount rate used to analyze the fair value of the loans considered the following: 1. Cost of Funds Rate Baseline rate reflecting a market participants alternative funding costs incurred to fund the loans. 2. Capital Charge Charge calculated based on the return on capital required for a market-participant acquirer investing in a loan portfolio. 3. Servicing Costs Costs representing a market participants servicing costs for distressed loans (based on previous valuation experience). 4. Variability/Liquidity Premium Systematic measure of the risk inherent in holding lower grade credit. PART I, LINE 2B: Upon the merger of Progressive Credit Union ("PCU") with Pentagon Federal Credit Union ("PenFed"), the following former PCU employees became employed by PenFed: NAME AND POSITION: 1) EMILY OAMI, SENIOR ADVISOR 2) FREDERICK KNODEL, DIRECTOR OF TAXI MEDALLION LENDING 3) JOESPH ANCONA, CHIEF CREDIT OFFICER 4) MARK ENTIN, CHIEF OPERATING OFFICER 5) ROBERT FAMILIANT, TREASURER/CHIEF EXECUTIVE OFFICER 6) ROCCO SABINO, CHIEF FINANCIAL OFFICER FORM 990, PART I, LINE 7B AND PART V, LINE 3A: FORM 990-T WAS FILED EXCLUSIVELY TO REPORT QUALIFIED TRANSPORTATION AND PARKING FRINGE BENEFITS, AND ANY ON-PREMISES ATHLETIC FACILITIES UNDER SECTION 512(A)(7). THE REPORTING ORGANIZATION IS AWAITING GUIDANCE FROM IRS BEFORE FILING 2018 AMENDED FORM 990-T TO REQUEST REFUND OF UNRELATED BUSINESS INCOME TAX PURSUANT TO H.R. 1865 THAT RETROACTIVELY REPEALED THE UNRELATED BUSINESS INCOME TAX ON QUALIFIED TRANSPORTATION FRINGE BENEFITS/PARKING UNDER INTERNAL REVENUE CODE SECTION 512(A)(7). FORM 990, PART VI, SECTION A, LINE 6: The reporting organization has an open charter to admit members and include all account holders. FORM 990, PART VI, SECTION A, LINE 7A: Each member is entitled to one vote for selection of appointment of Board of Directors. FORM 990, PART VI, SECTION A, LINE 7B: The members are required to approve changes to the reporting organization's bylaws. FORM 990, PART VI, SECTION B, LINE 11B: Form 990 is reviewed by management prior to filing. FORM 990, PART VI, SECTION B, LINE 12C: The reporting organization's internal auditor annually reviews the completed conflict of interest response forms to identify and address potential insider transactions. FORM 990, PART VI, SECTION B, LINE 15A: The reporting organization obtains comparables which the Board of Directors utilizes in establishing compensation of the CEO/Treasurer. This is contemporaneously documented in the Board of Director's minutes. FORM 990, PART VI, SECTION C, LINE 19: THE ORGANIZATION MAKES ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC UPON REQUEST. FORM 990, PART XI, LINE 9: UNREALIZED NET ACTUARIAL PENSION LOSSES.................$(294,351) RECLASSIFICATION ADJUSTMENT FOR AMORTIZATION OF PRIOR SERVICE COST AND NET LOSS INCLUDED IN PENSION EXPENSE....................................$ 484,868 TRANSFER OF NET ASSETS TO PENFED CREDIT UNION..........44,945,044 TOTAL..................................................45,135,561 FORM 990, PART I, LINE 2 & PART III, LINE 3 & PART XI, LINE 9: On January 1, 2019, the New York State Chartered Credit Unions Progressive Credit Union completed a merger with Pentagon Federal Credit Union Foundation ("PenFed") under the applicable provisions of Accounting Standards Codification ("ASC") 805, "Business Combinations". The merger was approved by the NCUA as an emergency merger on November 29, 2018, whereby PenFed, upon merger and in consideration for the assets of the organization acquired the liabilities of the organization, and assumed the Credit Unions open field of membership charter for its exclusive use. The operations of the organization are included with PenFeds consolidated balances at the merger date. Under this guidance, the assets acquired and the liabilities assumed by PenFed are recorded at their respective fair values at the merger date. REASONABLE CAUSE EXPLANATION FOR A LATE-FILED RETURN: Progressive Credit Union ("PCU") was unable to timely file 2018 Form 990 as a result of significant delays in obtaining financial information and the issuance of audited financial statements. PCU filed Form 8868 to extend the filing deadline of Form 990 to November 15, 2019. As a result of the merger with Pentagon Federal Credit Union, PCU was required to obtain a valuation report required for its audited financial statements. The audited financial statements were issued December 30, 2019 because of additional audit procedures with the valuation report. The failure of PCU to file its final Form 990 was due to reasonable cause and not willful neglect. Additionally, PCU seeks penalty relief under Section 20.1.1 of the Internal Revenue Manual. It represents the following: 1. Progressive Credit Union didnt previously have penalties for the 3 tax years prior to the tax year in which they received a penalty. 2. Progressive Credit Union filed all currently required returns or filed an extension of time to file. 3. Progressive Credit Union has paid any tax due. (Note, Form 990 is an information return and has no tax liability.) Theres no need for Progressive Credit Union to take additional measures to help ensure timely filing of Form 990 as 2018 Form 990 is its final return. 3243 WINTON PLACE HOLDING CO LLC 131 WEST 33RD STREET 7TH FL NEW YORK NY 10001 PTY FORECLOSE NY 0 0 NA STERLING ROAD CLINTON LANE LLC 131 WEST 33RD STREET 7TH FL NEW YORK NY 10001 454778267 PTY FORECLOSE NY 0 0 NA 54 HAZARD AVENUE CORP 131 WEST 33RD STREET 7TH FLOOR NEW YORK NY 10001 PTY FORECLOSURE NY NA C 0 0 1.00000 false false false false false false false false false false false false false false true false false false false false