2020-10-09T13:30:24-05:00 2019-12-31 350921680 CROWE LLP 225 West Wacker Drive Suite 2600 Chicago IL 606061224 990 2019-01-01 390671465 University of Wisconsin Credit Union UNIV 6082325000 3500 University Ave Madison WI 53705 Brad Mcclain Exec VP/CFO 2020-10-09 true Mallory Fairless P01321579 3128997000 2019 2021-04-22 16:20:28Z UW Credit Union Paul Kundert 3500 University Ave Madison WI 53705 833136810 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 9 950 18 2598265 -614922 0 0 135052497 154127432 15838949 23685106 -19331 -13689 150872115 177798849 462888 1357300 0 0 45925675 53000969 0 0 0 66426077 80885329 112814640 135243598 38057475 42555251 2819644184 3331480865 2535111587 2999685373 284532597 331795492 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 falls within the top ten in Wisconsin among all mortgage lenders. UWCU assisted over 4,000 households who purchased or refinanced homes. The credit union continues to be a resource for first time home buyers offering educational seminars to potential home buyers. UWCU continued to be a top educational lender in 2019 and offered both fixed and variable rate Private Student Loans. UWCU refinanced over $27 million in student loans, lowering members' rates. In 2019, UWCU welcomed 36,274 new members and opened 26,568 new checking accounts. The Credit Union's honest and straightforward business practices continue to drive membership and relationship growth. At the end of 2019, UWCU served over 278,000 members and over 214,000 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 true 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 96993 0 true 950 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 - Secretary 3.0 X X 1785 0 0 Kelly Wilson Director - Treasurer 3.0 X X 900 0 0 Marion Brown Director-Vice Chair 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 680 0 0 Shenita BrokenBurr Director 2.0 X 900 0 0 Terry Warfield Director (Partial starting June 2019) 3.0 X 0 0 0 Yvonne Evers Director (Partial to April 2019) 2.0 X 1896 0 0 Brad McClain Exec VP/CFO 45.0 X 400125 0 46409 Jonathan Bundy CLO/Asst. Corp. Secretary 45.0 X 253901 0 51285 Paul Kundert President/CEO 45.0 X 751771 0 324992 Anne Norman SVP and CMO 45.0 X 202107 0 48936 David Mickelson Vice President of Member Service Operations and Card Programs 45.0 X 207657 0 27706 Eric Bangerter VP of E-Commerce 45.0 X 208883 0 38343 Jason Feist VP Member Sales and Services 45.0 X 197881 0 15566 Julio Rios Vice President of Mortgage Lending 45.0 X 237532 0 48076 Lee Wiersma Exec VP/CHRO 45.0 X 273231 0 43830 Mike Long Exec VP/CCO 45.0 X 321211 0 52125 Rob Van Nevel Exec VP & CMSO 45.0 X 334613 0 38713 Greg Yelk Vice President of Information Technology 45.0 X 231977 0 47524 Jeremy Marshall Financial Consultant II 45.0 X 205520 0 34270 Richard McKinley Mortgage Loan Officer 54.0 X 238587 0 38882 Teodor Trandafir Director of Investment Services 45.0 X 244201 0 50132 Will Hamielec Mortgage Loan Officer 44.0 X 199749 0 10903 4518707 0 917692 84 false true false ADAMS OUTDOOR ADVERTISING 102 East Badger Rd Madison WI 53713 ADVERTISING 599785 Adrenaline LLC 195 New Hampshire Ave Portsmouth NH 03801 Consulting 584648 Adam Albrecht The Weaponary 1661 N Water St 206 Milwaukee WI 53202 Consulting 403093 ENCORE ONE LLC 124 N 121st Street Wauwatosa WI 53226 JANITORIAL SERVICES 390120 Wisconsin Sign and Graphics LLC 109 Hotel St Brooklyn WI 53521 Signage and Grapics 372547 10 0 Interest on Loans 522100 108342779 108342779 Card and ATM Interchange 522100 27320625 27040392 280233 Service Charges and Fees 522100 6247272 6247272 Loan Servicing Fees 522100 7252103 7252103 Investment and insurance services 523930 3712420 1394388 2318032 1252233 1252233 0 0 154127432 11306522 11306522 138272 151961 -13689 0 -13689 -13689 667564584 655186000 0 12378584 12378584 12378584 0 0 0 0 0 0 0 177798849 163907751 2598265 11292833 1357300 0 0 0 4134654 0 0 0 0 38666398 3519804 3411894 3268219 0 168210 500817 0 0 0 955961 0 0 0 7436209 5267301 4950971 0 4419304 221774 0 490120 14795802 0 4541990 373622 loan servicing expense 17136935 card processing expense 6944148 Loan Loss provision 9917872 fraud forgery losses 830330 1933963 0 0 0 135243598 0 0 0 0 31670559 34265367 169034619 412055800 0 0 2075819 5470770 0 0 0 0 2192926883 2499466072 0 0 18416437 37120520 146580721 42335144 74276125 104245577 0 0 269898875 209565133 0 0 61344867 29291626 2819644184 3331480865 31423297 35267538 0 0 5495302 6539701 0 0 11883742 10844539 0 0 30000000 200000000 0 2456309246 2747033595 2535111587 2999685373 0 0 X 0 0 284532597 331795492 284532597 331795492 2819644184 3331480865 X 42555251 2010737 0 0 0 2696907 X false true X true false false true X 0 23149662 23149662 0 80814777 18960618 61854159 0 2878794 2040812 837982 0 24163481 15372214 8791267 0 15574007 5961500 9612507 104245577 Agency Backed Securities 200565133 F Federal Home Loan Bank Chicago Stock 9000000 C 209565133 Member Deposits 2735975515 Outstanding Cashiers Checks 11058080 2747033595 X 155934043 0 0 0 -22016767 -22016767 177950810 -151961 -151961 177798849 110681885 -24713674 -24713674 135395559 -151961 -151961 135243598 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, 2019 and 2018 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 2019 and 2018. 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 2019 and 2018. Schedule D, Part XI, Line 2(d) Other revenues in audited financial statements not in form 990 MORTGAGE MARKET HEDGING VALUATION - 904349 VALUATION ALLOWANCE ON RECEIVABLE FROM TRUSTEE, NET - 1792558 PROVISION FOR LOAN LOSS - -9917872 INTEREST EXPENSE - -14795802 Schedule D, Part XI, Line 4(b) Other revenues in form 990 not in audited financial statements Rental Expenses - -151961 Schedule D, Part XII, Line 2(d) Other expenses in audited financial statements not in form 990 PROVISION FOR LOAN LOSS - -9917872 INTEREST EXPENSE - -14795802 Schedule D, Part XII, Line 4(b) Other expenses in form 990 not in audited financial statements Rental Expenses - -151961 true Boys and Girls Club of Milwaukee Inc 1558 N 6th St Miwaukee WI 53212 390806292 501(c)(3) 25000 0 N/A N/A Community Outreach Filene Research Institute 5910 Mineral Point Rd Madison WI 53705 391645910 501(C)(3) 250000 0 N/A N/A Community Outreach Madison Community Foundation 111 N Fairchild St Madison WI 537032830 396038248 501(C)(3) 550000 0 N/A N/A Community Outreach Madison College Foundation 3591 Anderson St Madison WI 53704 237265867 501(C)(3) 25000 0 N/A N/A Community Outreach Riverwest Food Pantry Inc 2610 N Martin Luther King Jr Dr Milwaukee WI 53212 463422131 501(C)(3) 25000 0 N/A N/A Community Outreach United Way of Dane County 2059 Atwood Ave Madison WI 53704 390817532 501(C)(3) 381640 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) 5062 0 N/A N/A Community Outreach University of Wisconsin Foundation 1848 University Ave Madison WI 537264090 390743975 501(C)(3) 53500 0 N/A N/A Community Outreach The UWM Foundation Inc 1440 East North Ave Milwaukee WI 53202 237337744 501(C)(3) 12000 0 N/A N/A Community Outreach Community Shares of Wisconsin 612 West Main St Madison WI 53703 391172378 501(C)(3) 16334 0 N/A N/A Community Outreach 10 0 Schedule I, Part I, Line 2 Procedures for monitoring use of grant funds. UWCU contributes to organizations that are tax exempt organizations. There is no formal monitoring of grant funds as UWCU contributes to support the general operations of these organizations. X true true X X X X X false true false Brad McClain Exec VP/CFO 267494 0 98813 0 33818 0 25828 0 20581 0 446534 0 0 0 Jonathan Bundy CLO/Asst. Corp. Secretary 167544 0 65971 0 20386 0 23625 0 27660 0 305186 0 0 0 Paul Kundert President/CEO 589014 0 137701 0 25056 0 291220 0 33772 0 1076763 0 0 0 Anne Norman SVP and CMO 162942 0 38046 0 1119 0 18321 0 30615 0 251043 0 0 0 Jason Feist VP Member Sales and Services 166716 0 23046 0 8119 0 9865 0 5701 0 213447 0 0 0 Lee Wiersma Exec VP/CHRO 180987 0 68839 0 23405 0 22280 0 21550 0 317061 0 0 0 Julio Rios Vice President of Mortgage Lending 158764 0 76510 0 2258 0 21457 0 26619 0 285608 0 0 0 Mike Long Exec VP/CCO 215163 0 80278 0 25770 0 26828 0 25297 0 373336 0 0 0 Rob Van Nevel Exec VP & CMSO 228593 0 81858 0 24162 0 24923 0 13790 0 373326 0 0 0 Eric Bangerter VP of E-Commerce 176465 0 25293 0 7125 0 18740 0 19603 0 247226 0 0 0 David Mickelson Vice President of Member Service Operations and Card Programs 156234 0 28910 0 22513 0 18049 0 9657 0 235363 0 0 0 Teodor Trandafir Director of Investment Services 132544 0 108114 0 3543 0 22518 0 27614 0 294333 0 0 0 Greg Yelk Vice President of Information Technology 188446 0 33777 0 9754 0 20430 0 27094 0 279501 0 0 0 Jeremy Marshall Financial Consultant II 35129 0 170349 0 42 0 6832 0 27438 0 239790 0 0 0 Richard McKinley Mortgage Loan Officer 79848 0 158512 0 227 0 12229 0 26653 0 277469 0 0 0 Will Hamielec Mortgage Loan Officer 52663 0 146094 0 992 0 9127 0 1776 0 210652 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 2019, THE TOTAL COMPANION TRAVEL PAID BY UWCU FOR ONE OF THEIR DIRECTORS WAS $6,577. 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 2019 were $260,995. The President did not vest in any of the plan contributions in 2019 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 BI-ANNUALLY, 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 annual value of these supplemental benefits included in Schedule J Part II is $15,918. 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 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. 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 VIII, Line 2f Other Program Service Revenue Other Income - Total Revenue: 1252233, Related or Exempt Function Revenue: 1252233, Unrelated Business Revenue: , Revenue Excluded from Tax Under Sections 512, 513, or 514: ; Form 990, Part XI, Line 9 Other changes in net assets or fund balances Mortgage Market Hedging Valuation - 904349; Valuation Allowance on Receivable from Trustee, Net - 1792558;