2020-05-11T16:02:22-07:00 2019-12-31 990 2019-01-01 626039479 EASTMAN CREDIT UNION EAST 4232298200 PO BOX 1989 KINGSPORT TN 37662 Kelly Price President/CEO 4232298200 2020-05-12 67.237.211.5 2019 2020-09-23 17:36:50Z EASTMAN CREDIT UNION PO Box 1989 Kingsport TN 37662 252931903 0 X WWW.ECU.ORG X 1934 TN OPERATED DURING 2019 AS A STATE CHARTERED CREDIT UNION WHOSE PURPOSE IS TO BE THE PREFERRED FINANCIAL INSTITUTION IN THE COMMUNITIES WE SERVE BY PROVIDING FINANCIAL PRODUCTS AND SERVICES WHICH ADD VALUE TO MEMBERS, GUIDED BY CREDIT UNION CO-OPERATIVE VALUES AND SERVICE EXCELLENCE EXPECTATIONS. 8 7 923 18 419581 0 0 0 209232646 242024672 7399254 8871726 209915 209908 216841815 251106306 0 0 0 0 57008871 61364379 0 0 0 98596100 120426496 155604971 181790875 61236844 69315431 4530156863 5099588309 3946228546 4446344784 583928317 653243525 OPERATED DURING 2019 AS A STATE CHARTERED CREDIT UNION WHOSE PURPOSE IS TO BE THE PREFERRED FINANCIAL INSTITUTION IN THE COMMUNITIES WE SERVE BY PROVIDING FINANCIAL PRODUCTS AND SERVICES WHICH ADD VALUE TO MEMBERS, GUIDED BY CREDIT UNION CO-OPERATIVE VALUES AND SERVICE EXCELLENCE EXPECTATIONS. 0 0 Operated during 2019 as a state chartered mutually owned credit union that promoted thrift by maintaining accounts and issuing shares resulting in superior value. Served 241,567 members with a variety of deposit products totaling $4,379,124,148 Operated during 2019 as a state chartered mutually owned credit union that made loans to its members at reasonable rates of interest. Maintained a loan portfolio composed of Consumer, Mortgage, Home Equity, VISA and Member Business Loans that totaled $4,431,897,175. Invested any surplus not required for loans to exercise those functions described in the law of the State of Tennessee authorizing the organization of credit unions thereby furnishing other cooperative financial services to members. 0 0 0 0 0 0 1 0 0 0 0 1 0 1 0 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 361863 0 1 923 1 1 1 0 0 0 0 0 1 0 X 8 7 0 0 0 0 1 1 1 1 1 0 1 1 1 1 1 1 1 1 1 1 1 1 X TAMMIE MCCULLOUGH 4235787401 2021 MEADOWVIEW LANE KINGSPORT TN 37660 JEFF W ANDERSON BOARD OF DIRECTORS 2 0 X 0 0 0 STEVE G CRAWFORD BOARD OF DIRECTORS 2 0 X 0 0 0 E WAYNE KIRK CHAIRMAN, BOARD OF DIRECTORS 5 0 X 753 0 0 KYLE P MACIONE BOARD OF DIRECTORS 2 0 X 0 0 0 JENNIFER L STEWART SECRETARY/TREASURER BOARD OF DIRECTORS 2 0 X 0 0 0 NORRIS P SNEED VICE CHAIRMAN BOARD OF DIRECTORS 3 0 X 0 0 0 JENNIFER N WOLFE BOARD OF DIRECTORS 3 0 X 635 0 0 OLAN O JONES JR BOARD OF DIRECTORS/PRESIDENT/CEO 40 0 X X 1166625 0 262620 KELLY PRICE EXECUTIVE VICE PRESIDENT 40 0 X 474863 0 157800 DARRELL DINSMORE VP/INFORMATION TECHNOLOGY 40 0 X 361819 0 135051 TAMMY LATTURE VP/MEMBER SERVICE LENDING 40 0 X 351147 0 210201 DEBRA BRIDWELL SVP/MARKETING AND FACILITIES 40 0 X 317920 0 121039 TONJA FISH VP/CHIEF FINANCIAL OFFICER 40 0 X 342630 0 124832 MATT WIMBERLEY VP/LEGAL SVCS/GENERAL COUNSEL 40 0 X 258910 0 43314 JEREMIAH LOUNDS VICE PRESIDENT, OPERATIONS 40 0 X 220539 0 39581 MARK MILLWOOD VP HUMAN RESOURCES 40 0 X 211522 0 36566 THOMAS KENNEDY DIRECTOR BUSINESS SERVICES 40 0 X 211639 0 45205 ROBINETTE WILKERSON CONTROLLER 40 0 X 204816 0 40383 DOLLY LINKOUS DIRECTOR MORTGAGE LENDING 40 0 X 191149 0 79199 LINDA COX DIRECTOR FACILITIES 40 0 X 187338 0 63665 DEBORAH BYERS REGIONAL DIRECTOR 40 0 X 175020 0 66454 4677325 0 1425910 73 0 1 0 WILSON WORLEY MOORE GAMBLE & STOUT PC 2021 MEADOWVIEW LANE KINGSPORT TN 37662 LEGAL SERVICES 200726 TOOLCASE LLC 23 INVERNESS WAY NO 165 ENGLWOOD CO 80112 DATABASE ADMINISTRATION AND MONITORING 153500 MARK S HANOR 1524 BRIDGEWATER LANE SUITE 103 KINGSPORT TN 37662 LEGAL SERVICES 104022 MOSS ADAMS LLP 999 THIRD AVENUE SUITE 3300 SEATTLE WA 981044019 AUDIT SERVICES 102000 4 0 0 0 0 0 0 0 0 Loan Interest 522100 199750214 199750214 0 0 Fee and Other Operating Income 522100 40919807 40500226 419581 0 Other Income 522100 1354651 1354651 0 0 0 0 0 0 242024672 9141805 9141805 0 0 0 0 0 0 0 0 0 0 209908 0 0 0 209908 0 209908 0 0 209908 152171 1403347 169161 1656436 -16990 -253089 -270079 -270079 0 0 0 0 251106306 250476817 419581 209908 0 0 0 0 4836979 0 39530054 3623643 9718387 3655316 0 252269 97450 0 0 0 271112 2771150 8861170 6791180 0 3819831 208619 0 485060 64767673 0 5108324 0 Provision For Loan Loss 11800000 Deposit Services 11955366 Lending Services 3237292 181790875 0 0 0 27891127 29346207 357348509 453905183 0 0 0 0 0 0 0 0 3962091742 4431897175 0 0 19924706 21658049 127277421 49577895 65236227 77699526 0 0 0 0 43414228 23201787 0 0 54250324 61880382 4530156863 5099588309 59501877 59790109 0 0 0 0 0 0 6153005 7430527 0 0 0 0 0 0 3880573664 4379124148 3946228546 4446344784 X 0 0 0 0 583928317 653243525 583928317 653243525 4530156863 5099588309 X 69315431 1314 0 0 557137 -558674 X 1 1 X 1 0 1000 0 0 1000 1000 1 Tennessee Credit Union League PAC PO Box 21550 Chattanooga TN 37424 462728395 1000 0 Schedule C, Part I-A, Line 1 Eastman Credit Union contributes $250 per quarter to the Tennessee Credit Union League PAC. 0 1 X 0 19585345 19585345 0 71466580 24065351 47401229 0 2519782 1845783 673999 0 32037645 23666761 8370884 0 1668069 0 1668069 77699526 0 State Chartered Credit Union Deposits 4379124148 4379124148 X Schedule D, Part IV, Line 2b ECU maintains escrow accounts on the loans in the mortgage portfolio for payment of property taxes and homeowner's insurance. The accounts are treated as other deposit accounts and earn interest at the regular share account rate as long as the escrow balance is positive. Amounts are deposited monthly and payments are made as necessary during the year. Escrows are "trued" once a year to prevent excess or correct short-falls. Schedule D, Part X, Line 2 Income taxes - The Credit Union is exempt, by statute, from federal income taxes. Management of the Credit Union believes there was no unrelated business income tax (UBIT) for the years ended December 31, 2019 or 2018. However, the Credit Union may be subject to UBIT as there is uncertainty regarding whether the Credit Union should pay income taxes on certain types of net taxable income from activities as further discussed in Note 9. It is the Credit Union's policy to record any penalties or interest arising from federal or state taxes as a component of noninterest expense. The Credit Union files exempt organization and unrelated business income tax returns with the federal jurisdiction. Note 9 - The Internal Revenue Service (IRS) and certain state taxing authorities are currently revisiting what, if any, products and services provided by credit unions are subject to UBIT. There is currently very little guidance in the IRC on what activities should be subject to UBIT. The IRS has indicated they are studying the issue and may issue additional guidance. As a result, at this time there is uncertainty regarding whether the Credit Union 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 the Credit Union was granted nontaxable status. The Credit Union has filed tax returns in the past for certain potential taxable activities. In the opinion of management, any liability resulting from taxing authorities imposing income taxes on the net taxable income from activities deemed to be unrelated to the Credit Union's nontaxable status is not expected to have a material effect on the Credit Union's consolidated financial position or results of operations. X X 1 1 X X X X 0 0 0 OLAN O JONES JR BOARD OF DIRECTORS/PRESIDENT/CEO 743217 0 398490 0 24918 0 249800 0 12820 0 1429245 0 0 0 DEBRA BRIDWELL SVP/MARKETING AND FACILITIES 245239 0 67137 0 5544 0 111800 0 9239 0 438959 0 0 0 DARRELL DINSMORE VP/INFORMATION TECHNOLOGY 282029 0 77858 0 1932 0 119800 0 15251 0 496870 0 0 0 KELLY PRICE EXECUTIVE VICE PRESIDENT 347321 0 125610 0 1932 0 136800 0 21000 0 632663 0 0 0 MARK MILLWOOD VP HUMAN RESOURCES 177447 0 25704 0 8371 0 17776 0 18790 0 248088 0 0 0 TAMMY LATTURE VP/MEMBER SERVICE LENDING 266230 0 74805 0 10112 0 115800 0 94401 0 561348 0 0 0 MATT WIMBERLEY VP/LEGAL SVCS/GENERAL COUNSEL 203236 0 54834 0 840 0 21124 0 22190 0 302224 0 0 0 TONJA FISH VP/CHIEF FINANCIAL OFFICER 272749 0 67949 0 1932 0 115800 0 9032 0 467462 0 0 0 JEREMIAH LOUNDS VICE PRESIDENT, OPERATIONS 175085 0 44645 0 809 0 17391 0 22190 0 260120 0 0 0 THOMAS KENNEDY DIRECTOR BUSINESS SERVICES 174210 0 33892 0 3537 0 22015 0 23190 0 256844 0 0 0 ROBINETTE WILKERSON CONTROLLER 163194 0 31642 0 9980 0 22018 0 18365 0 245199 0 0 0 LINDA COX DIRECTOR FACILITIES 154041 0 28731 0 4566 0 57118 0 6547 0 251003 0 0 0 DOLLY LINKOUS DIRECTOR MORTGAGE LENDING 157388 0 30574 0 3187 0 60844 0 18355 0 270348 0 0 0 DEBORAH BYERS REGIONAL DIRECTOR 144717 0 27468 0 2835 0 53634 0 12820 0 241474 0 0 0 Schedule J, Part I, Line 1a The Credit Union's expense policy includes an accountable plan whereby business expenses are paid by the credit union and whereby any permissible travel for companions permitted by state and federal credit union regulations are included as income to the official on a Form 1099. Form 990, Part VI, Section A, Line 6 Eastman Credit Union is a member owned non-profit tax exempt corporation in which each member owns an equal share. Form 990, Part VI, Section A, Line 7a At the annual meeting of the members, Eastman Credit Union's members elect individuals from the Credit Union's membership to serve on the Board of Directors for three year terms. In the event there is a vacancy on the board, the directors may appoint an interim member to serve out the term of the vacant board position. Form 990, Part VI, Section A, Line 7b Eastman Credit Union's members have the right to vote, on a per capita basis, on dissolution of the Credit Union, merger with another Credit Union, expulsion of a member, conversion from a state to a federally chartered Credit Union, conversion to another type of financial institution, or to overrule a decision of the Credit Union's Board of Directors. Form 990, Part VI, Section B, Line 11b Eastman Credit Union's Form 990 is reviewed by ECU's CEO, CFO, General Counsel, VP of Human Resources, and Controller. A complete copy of this Form 990 was provided to all members of the ECU Board of Directors before filing the form. Form 990, Part VI, Section B, Line 12c Prior to employment all employees and officers of Eastman Credit union are required to disclose all potential conflicts of interest and must agree to update the disclosure in the event any conflicts arise subsequent to employment. Prior to serving on the Board of Directors, all prospective board members are required to disclose all potential conflicts of interest. All employees and members of the Board of Directors are also required to complete an updated disclosure at least annually. It is the responsibility of the president or chair of the Board of Directors to determine the resolution of all actual or potential conflicts of interest. Members of the Board of Directors do not participate in the deliberations or voting on matters where an actual or apparent conflict of interest exists. Form 990, Part VI, Section B, Line 15 Eastman Credit Union annually participates in executive compensation surveys of reputable compensation consultants by providing current base and total compensation information of the ECU officers. The consulting groups focus on comparative compensation information within the Credit Union industry. As a result of participation, ECU receives data compilation reports and analyses from the studies conducted by these compensation experts. Ranking and comparative information for each relevant position is provided in both studies. ECU studies and utilizes peer group information relative to ECU's asset size as benchmark data. Eastman Credit Union works with consultants from each respective consulting firm to obtain special data cuts, clarifying information, and advice regarding matching of ECU positions to benchmark jobs, industry average increase in executive compensation, and other information related to executive base and total compensation factors. The Vice President of Human Resources provides a recap of compensation study information in a presentation format during a meeting of the Compensation Committee (subcommittee of the Board of Directors, chaired by the Board Chair). The compensation committee reviews the data and discusses and presents questions related to the information provided. When necessary, the VP of Human Resources will follow up with compensation consultants for additional information to be presented for discussion and consideration. The Compensation Committee approves an average salary increase for the CEO's direct reports and authorizes the CEO to award individual salary increases accordingly. Final awards are documented and signed by both the CEO and the chair of the Compensation Committee. This document is submitted to payroll via the VP of Human Resources. The Compensation Committee meets in executive session to further consider compensation data for the CEO. Final award is documented and signed as approved by the chair of the Compensation Committee. This document is submitted to payroll via the VP of Human Resources. Original documents are maintained on file in the Human Resources Department. Form 990, Part VI, Section C, Line 19 The governing documents and other records and policies of ECU are not generally made available to the public. ECU members are entitled to inspect certain records of the Credit Union after complying with the requirements of state law. Financial information is posted on ECU's website and published in the annual report. Form 990, Part XI, Line 9 Other changes in net assets and fund balances totaling ($558,674) consist of the following: Net defined benefit pension plan cost adjustments $305,405, net post retirement benefit plan cost adjustments ($306,942), and post retirement investment unrealized loss ($557,137). ECU Title Services LLC 201 S Wilcox Dr Kingsport TN 37660 464133177 Title and Escrow Services TN 80677 2822055 Eastman Credit Union