2020-11-16T09:46:23-06:00 2019-12-31 382492570 DOEREN MAYHEW 305 WEST BIG BEAVER ROAD TROY MI 48084 990 2019-01-01 381418001 1199 CORNERSTONE COMMUNITY FINANCIAL CREDIT UNION 1199 2483409310 2955 UNIVERSITY DRIVE AUBURN HILLS MI 48326 HEIDI KASSAB CEO 2483409310 2020-11-13 1 JOSEPH ZITO CPA P00648440 2482443000 2020-11-08 104.11.88.150 2020-11-13 14:45:24 ES P DA39A3EE5E6B4B0D3255BFEF95601890AFD80709 B2EFC313AB4EEA4760135470907D022D8B217834 2019 2021-04-22 16:20:28Z HEIDI KASSAB 2955 UNIVERSITY DR AUBURN HILLS MI 48326 16149680 0 1359 X WWW.CCFINANCIAL.COM X 1951 MI WE ARE COMMITTED TO BEING A LEADING COMMUNITY-FOCUSED CREDIT UNION THAT IS THE CORNERSTONE TO HELPING MEMBERS ACHIEVE THEIR FINANCIAL GOALS. 7 7 95 8 20286 -58430 0 0 14456984 15662944 276700 466450 20098 20286 14753782 16149680 0 0 0 0 4984811 5431954 0 0 0 7727903 9218177 12712714 14650131 2041068 1499549 284138924 288188015 247457285 250006827 36681639 38181188 REVOLUTIONIZE THE SERVICE EXPERIENCE FULFILLING THE CHANGING NEEDS OF MEMBERS AND OUR COMMUNITIES. 0 0 PROVIDED OVER $90 MILLION IN LOANS TO OUR MEMBERS. INCREASED MEMBER DEPOSITS BY $5.6 MILLION. OPENED OVER 2,700 NEW ACCOUNTS. 0 0 0 0 0 0 0 0 0 1 0 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 1 4999 0 1 95 1 1 1 0 0 0 0 0 0 0 X 7 7 0 0 0 0 1 1 1 1 1 0 0 0 1 1 1 1 1 1 1 0 X BETH WIELGAT 2483731438 2955 UNIVERSITY DRIVE AUBURN HILLS MI 48326 LEO MOSES CHAIRMAN 10.00 X 0 0 0 TIM MCGLINCHEY VICE CHAIRMAN 5.00 X 0 0 0 DAVID WOODWARD DIRECTOR 5.00 X 0 0 0 CHRIS BAKER TREASURER 5.00 X 0 0 0 MELVIN LEE DIRECTOR 5.00 X 0 0 0 TIM GREEN SECRETARY 5.00 X 0 0 0 JOHN ELSE DIRECTOR 5.00 X 0 0 0 BRIAN BEAUMONT DIRECTOR 5.00 X 0 0 0 HEIDI KASSAB PRESIDENT/CEO 40.00 X 354340 0 34433 BETH WIELGAT CFO 40.00 X 129604 0 12466 CHRIS MANGENO VP OF LENDING AND COLLECTI 40.00 X 152659 0 23399 TONYA DUPREE VP RETAIL DELIVERY 40.00 X 130191 0 11317 DAVE SHOSEY VP OF IT 40.00 X 131190 0 21981 STEVE FLORES VP OF OPERATIONS 40.00 X 120418 0 20611 JENNIFER BLEAU VP OF MARKETING 40.00 X 100325 0 20770 1118727 0 144977 7 0 1 0 BROGAN AND PARTNERS 800 N OLD WOODWARD AVE STE 100 BIRMINGHAM MI 48009 ADVERTISING 553250 JACK HENRY AND ASSOCIATES INC PO BOX 609 MONETT MO 65708 CORE PROCESSING SYSTEM 489709 RUDOLPH LIBBE INC 6494 LATCHA RD WALBRIDGE OH 434659738 CONSTRUCTION 451983 VISA PO BOX 4521 CAROL STREAM IL 60197 CREDIT/DEBIT CARD PROCESSING 317052 MARQUIS SOFTWARE SOLUTIONS INC PO BOX 660919 DALLAS TX 752660919 CUSTOMER MANAGEMENT 196239 10 LOAN INCOME 522100 11501321 11501321 FEE INCOME 522100 4161623 4161623 15662944 466450 466450 NON-MEMBER ATM FEES 900099 20286 20286 20286 16149680 15662944 20286 466450 X 530843 3820212 254907 486517 339475 15592 71064 4480 1025003 449694 719041 537536 107700 10850 2293879 28666 611252 180252 PROVISION FOR LOAN LOSS 1064000 DEBIT/CREDIT CARD EXPEN 762761 LOAN SERVICING EXPENSE 674235 MISCELLANEOUS EXPENSES 186628 475544 14650131 1791399 1913529 16570983 11056158 744264 1047197 4750000 5078501 243646905 252483523 769193 648801 19284142 8466759 9565082 10817383 507470 410247 1535300 1435300 49547 34386 4208781 3262990 284138924 288188015 1515278 1456338 16000000 13000000 229942007 235550489 247457285 250006827 X 0 0 0 0 36681639 38181188 36681639 38181188 284138924 288188015 1499549 0 X X 0 1 X 1 0 2663939 2663939 9452280 2724622 6727658 142483 139879 2604 5824501 5003286 821215 1200939 598972 601967 10817383 MEMBER SHARES 235550489 235550489 X 16149680 0 16149680 0 16149680 14650131 0 14650131 0 14650131 PART X, LINE 2: CORNERSTONE COMMUNITY FINANCIAL CREDIT UNION IS EXEMPT, BY STATUTE, FROM FEDERAL INCOME TAXES ON INCOME RELATED TO THE EXEMPT PURPOSE OF THE CREDIT UNION. THE CREDIT UNION IS A STATE-CHARTERED CREDIT UNION DESCRIBED IN INTERNAL REVENUE CODE ("IRC") SECTION 501(C)(14). AS SUCH, THE CREDIT UNION IS EXEMPT FROM FEDERAL TAXATION OF INCOME DERIVED FROM THE PERFORMANCE OF ACTIVITIES THAT ARE IN FURTHERANCE OF ITS EXEMPT PURPOSES. HOWEVER, IRC SECTION 511 IMPOSES A TAX ON THE UNRELATED BUSINESS INCOME (AS DEFINED IN SECTION 512) DERIVED BY STATE-CHARTERED CREDIT UNIONS. MANY STATES HAVE SIMILAR LAWS. THE SPECIFIC APPLICATION OF SECTION 512 TO THE VARIOUS ACTIVITIES CONDUCTED BY STATE-CHARTERED CREDIT UNIONS HAS BEEN AN ISSUE FOR MANY YEARS. IN 2007, THE INTERNAL REVENUE SERVICE ("IRS") ISSUED A SERIES OF TECHNICAL ADVICE MEMORANDA ("TAM") TO A NUMBER OF STATE-CHARTERED CREDIT UNIONS LOCATED THROUGHOUT THE COUNTRY. IN THESE TAMS, THE IRS RULED CERTAIN PRODUCTS AND SERVICES TO BE SUBJECT TO TAXATION AS UNRELATED BUSINESS INCOME. IN LIGHT OF THE TAMS, THE CREDIT UNION HAS ASSESSED ITS ACTIVITIES AND ANY POTENTIAL FEDERAL OR STATE INCOME TAX LIABILITY. IN THE OPINION OF MANAGEMENT, ANY LIABILITY ARISING FROM FEDERAL OR STATE TAXATION OF ACTIVITIES DEEMED TO BE UNRELATED TO ITS EXEMPT PURPOSE IS NOT EXPECTED TO HAVE A MATERIAL EFFECT ON THE CREDIT UNION'S FINANCIAL CONDITION OR RESULTS OF OPERATIONS. THE CREDIT UNION'S OPEN AUDIT PERIOD IS FOR THE THREE YEAR PERIOD ENDED DECEMBER 31, 2019. X 1 1 X X X X X 0 1 0 HEIDI KASSAB PRESIDENT/CEO 291315 0 63025 0 0 0 22329 0 12104 0 388773 0 0 0 CHRIS MANGENO VP OF LENDING AND COLLECTI 140000 0 12659 0 0 0 10833 0 12566 0 176058 0 0 0 DAVE SHOSEY VP OF IT 120000 0 11190 0 0 0 9415 0 12566 0 153171 0 0 0 PART I, LINE 4B THE CREDIT UNION PROVIDES SUPPLEMENTAL RETIREMENT BENEFITS TO THE CEO, HEIDI KASSAB THROUGH AN ARRANGEMENT REFERRED TO AS A "COLLATERAL ASSIGNED SPLIT DOLLAR." AT SPECIFIED TIMES, THE PARTICIPANT 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 PARTICIPANT. UPON THE PARTICIPANT'S DEATH THE CREDIT UNION RECOVERS ITS PREMIUMS PLUS INTEREST, PLUS KEY-PERSON INSURANCE PROCEEDS. HEIDI KASSAB PRESIDENT/CEO TO FUND SPLIT DOLLAR PLAN X 4750000 5078501 0 1 1 5078501 FORM 990, SCH 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 6 ALL ACCOUNT HOLDERS ARE REFERRED TO AS MEMBERS. FORM 990, PART VI, SECTION A, LINE 7A THE CREDIT UNION MEMBERSHIP ELECTS THE BOARD OF DIRECTORS WHICH GOVERN THE OPERATIONS OF THE CREDIT UNION. 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 B, LINE 11B THE FORM 990 IS PREPARED BY AN INDEPENDENT CPA FIRM AND REVIEWED BY MANAGEMENT PRIOR TO SUBMISSION. FORM 990, PART VI, SECTION B, LINE 12C ACCOUNT RELATIONSHIPS ARE MONITORED BY THE INTERNAL AUDITOR. ANY BUSINESS RELATIONSHIPS WOULD BE REVIEWED BY THE CEO OR CHAIRMAN AS APPLICABLE. FORM 990, PART VI, SECTION B, LINE 15 AN INDEPENDENT CONSULTANT IS USED IN THE REVIEW PROCESS OF THE CEO. THE BOARD REVIEWS THE REVIEW AND COMPENSATION LEVELS. ALL OTHER EMPLOYEES ARE REVIEWED BY THEIR SUPERVISOR AND REVIEWS ARE APPROVED BY THE CEO. FORM 990, PART VI, SECTION C, LINE 19 THE CREDIT UNION'S CONFLICT OF INTEREST POLICY AND GOVERNING DOCUMENTS ARE NOT MADE AVAILABLE TO THE PUBLIC. FINANCIAL STATEMENTS ARE AVAILABLE UPON REQUEST. FORM 990, PART IX, LINE 11G OTHER PROFESSIONAL FEES 4,480. FORM 990, PART IX, LINE 24E MAINTENANCE 184,367. ATM EXPENSES 178,211. EDUCATION AND TRAINING 112,966. FORM 990, PART XII, LINE 2C: THE ORGANIZATION HAS A COMMITTEE THAT ASSUMES RESPONSIBILITY FOR THE OVERSIGHT OF THE AUDIT OF ITS FINANCIAL STATEMENTS AND THE SELECTION OF AN INDEPENDENT ACCOUNTANT. THIS PROCESS HAS NOT CHANGED FROM PREVIOUS YEARS.