2019-10-23T08:58:27-05:00 2018-12-31 382492570 DOEREN MAYHEW 12060 S W 129TH COURT STE 201 MIAMI FL 331864582 990 2018-01-01 381686050 CREDIT UNIONS CHARTERED IN THE STATE OF MICHIGAN CRED 2693829845 550 S RIVERVIEW DRIVE PARCHMENT MI 49004 JEFF FIELDER EVP OF FINANCE 8442384228 2019-10-17 1 DOUGLAS J ORTH P01076394 3052328272 64.95.240.2 2019-10-17 17:40:44 ED P DA39A3EE5E6B4B0D3255BFEF95601890AFD80709 A7DB26C3BB201601930FCFA0C4651552B54C26A2 2018 2019-02-21 02:37:17Z ADVIA CREDIT UNION CHERYL KONCSOL 550 S RIVERVIEW DRIVE PARCHMENT MI 49004 104212623 0 X WWW.ADVIACU.ORG X 1935 MI TO PROVIDE FINANCIAL ADVANTAGES TO OUR MEMBERS THROUGH THE OFFERING OF A FULL RANGE OF FINANCIAL PRODUCTS AND SERVICES. 7 7 702 10 330065 75211 0 0 89164382 98634642 3904838 4661891 233874 0 93303094 103296533 0 0 0 0 30813215 38898656 0 0 0 49780823 55163909 80594038 94062565 12709056 9233968 1683958871 1749022744 1515981099 1572754678 167977772 176268066 PROVIDE COMPETITIVE DEPOSIT AND LOAN PRODUCTS TO OUR MEMBERSHIP BASE. 0 0 TO PROVIDE FINANCIAL ADVANTAGES TO OUR MEMBERS THROUGH THE OFFERING OF A FULL RANGE OF FINANCIAL PRODUCTS AND SERVICES. 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 48432 0 1 702 1 1 1 0 0 0 0 0 1 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 JEFF FIELDER 2693829845 550 S RIVERVIEW DRIVE PARCHMENT MI 49004 MARTY DOORN CHAIRMAN/BOD 1.00 X 0 0 0 JULIE BIRMAN DIRECTOR/BOD 1.00 X 0 0 0 DANIELLE STREED TREASURER/BOD 1.00 X 0 0 0 NICOLE KALMBACH V. CHAIR/BOD 1.00 X 0 0 0 MIKE SEGAL DIRECTOR 1.00 X 0 0 0 DONNA KALMETA SECRETARY/BOD 1.00 X 7553 0 0 RICH SEIM DIRECTOR 1.00 X 0 0 0 CHERYL KONCSOL PRESIDENT/CEO 40.00 X 1176291 0 82552 JEFFREY FIELDER EVP OF FINANCE 40.00 X 286320 0 92316 KRISTIN MARSCHNER EVP OF RISK MANAGE 40.00 X 348879 0 83133 RAYMOND BLACK EVP OF MEMBER SERVICE & MA 40.00 X 251799 0 72112 TIMOTHY MERWIN EVP OF LENDING 40.00 X 235334 0 71004 LINDEN BUCK II VP OF INDIRECT RELATIONSHI 40.00 X 185098 0 26421 THOMAS OEHLER VP OF COMMERCIAL LENDING 40.00 X 227390 0 45181 STEVEN KLITZING REGIONAL VICE PRESIDNET 40.00 X 215925 0 33811 MARION BRENNER VP OF BRANCH EXPERIENCE SU 40.00 X 193254 0 29367 JAMES HOUSTON REGIONAL VICE PRESIDNET 40.00 X 190245 0 19259 3318088 0 555156 37 0 1 0 JAMES AND MATTHEW COMPANY 2 SHAKER RD STE D220 SHIRLEY MA 01464 MARKETING & PRINTING EXP 1672070 JACK HENRY & ASSOCIATES INC PO BOX 609 MONETT MO 65708 SOFTWARE PROVIDER 1242327 COMMERCIAL CONTRACTORS 16745 COMSTOCK STREET GRAND HAVEN MI 49417 BUILDING CONTRACTORS 1223015 Q2 E BANKING PO BOX 205970 DALLAS TX 75320 SOFTWARE PROVIDER 1034924 LENDING SOLUTIONS CONSULTING 2200 POINT BLVD ELGIN IL 60123 LENDING SERVICES 953381 40 INCOME FROM LOANS 522100 69806017 69806017 FEES AND CHARGES 522100 14737092 14737092 OTHER INCOME 522100 13761468 13761468 NON-MEMBER ATM FEE INCOME 900099 330065 330065 98634642 4471380 4471380 1106601 916090 190511 190511 190511 103296533 98495088 330065 4471380 X 2707293 27742647 2271322 4065018 2112376 299462 436932 67821 42051 245825 2488280 8102343 3515987 2608425 677054 13648017 89731 3337021 277611 PROVISION FOR LOAN LOSS 9372861 ATM EXPENSES 3270591 DEBIT/CREDIT CARD EXPEN 2766325 LOAN SERVICING 2101253 1816319 94062565 17056505 20755157 48498949 90794313 2932904 8571565 9683317 1368899779 1397015845 2634156 2287721 46197339 17241380 28843403 28955959 105696911 114141751 63013095 42406176 18463102 17339016 22281406 22710585 1683958871 1749022744 16783530 19291076 107096340 60300000 1392101229 1493163602 1515981099 1572754678 X 0 0 0 0 167977772 176268066 167977772 176268066 1683958871 1749022744 9233968 -943674 0 X X 0 1 X 1 0 6182167 6182167 21992731 5786680 16206051 924799 217632 707167 17097642 11237068 5860574 28955959 SAVINGS AND CLUB 291419593 MONEY MARKET 426713220 SHARE DRAFT 337752326 CERTIFICATES 400180338 IRA CERTIFICATES 37098125 1493163602 X 103296533 0 103296533 0 103296533 94062565 0 94062565 0 94062565 PART X, LINE 2: THE CREDIT UNION IS EXEMPT FROM MOST FEDERAL, STATE, AND LOCAL TAXES UNDER THE PROVISIONS OF THE INTERNAL REVENUE CODE AND STATE TAX LAWS. THE INCOME TAXES TOPIC OF THE FASB ASC CLARIFIES ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES REPORTED IN THE FINANCIAL STATEMENTS. THE INTERPRETATION PROVIDES CRITERIA FOR ASSESSMENT OF INDIVIDUAL TAX POSITIONS AND A PROCESS FOR RECOGNITION AND MEASUREMENT OF UNCERTAIN TAX POSITIONS. TAX POSITIONS ARE EVALUATED ON WHETHER THEY MEET THE "MORE LIKELY THAN NOT" STANDARD FOR SUSTAINABILITY UPON EXAMINATION BY TAX AUTHORITIES. THE CREDIT UNION IS A STATE-CHARTERED CREDIT UNION AS DEFINED 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 DIRECTLY RELATED TO ITS EXEMPT PURPOSES. HOWEVER, IRC SECTION 511 IMPOSES A TAX ON THE UNRELATED BUSINESS INCOME (UBI) DERIVED BY STATE-CHARTERED CREDIT UNIONS. BEGINNING IN MARCH 2008, THE INTERNAL REVENUE SERVICE (IRS) RELEASED TECHNICAL ADVICE MEMORANDUMS (TAMS) TO SPECIFIC STATE-CHARTERED CREDIT UNIONS SPECIFYING THE REVENUE SOURCES SUBJECT TO UNRELATED BUSINESS INCOME TAX (UBIT). UBI MAY ALSO BE SUBJECT TO TAX IN CERTAIN STATES. MANAGEMENT HAS ASSESSED THE CREDIT UNION'S ACTIVITIES AND ANY POTENTIAL FEDERAL OR STATE INCOME TAX LIABILITY AND DETERMINED THAT THE CREDIT UNION HAS NO UNCERTAIN TAX POSITIONS THAT QUALIFY FOR EITHER RECOGNITION OR DISCLOSURE IN THE FINANCIAL STATEMENTS. ADDITIONALLY, NO INTEREST AND PENALTIES HAVE BEEN RECORDED IN THE ACCOMPANYING FINANCIAL STATEMENTS RELATED TO UNCERTAIN TAX POSITIONS. CURRENTLY, THE 2016, 2015, AND 2014 FEDERAL INCOME TAX RETURNS ARE OPEN FOR EXAMINATION BY THE IRS. THE FILING YEARS OPEN FOR EXAMINATION BY THE STATE, IF APPLICABLE, MAY BE EQUAL TO, GREATER THAN OR LESS THAN THE YEARS OPEN FOR EXAMINATION BY THE IRS. X X 1 1 X X X X 1 1 0 CHERYL KONCSOL PRESIDENT/CEO 569233 0 192939 0 414119 0 48509 0 34043 0 1258843 0 0 0 JEFFREY FIELDER EVP OF FINANCE 222440 0 55434 0 8446 0 61604 0 30712 0 378636 0 0 0 KRISTIN MARSCHNER EVP OF RISK MANAGE 205032 0 86650 0 57197 0 48900 0 34233 0 432012 0 0 0 RAYMOND BLACK EVP OF MEMBER SERVICE & MA 199039 0 47051 0 5709 0 54628 0 17484 0 323911 0 0 0 TIMOTHY MERWIN EVP OF LENDING 186673 0 41394 0 7267 0 51848 0 19156 0 306338 0 0 0 LINDEN BUCK II VP OF INDIRECT RELATIONSHI 110490 0 70630 0 3978 0 7209 0 19212 0 211519 0 0 0 THOMAS OEHLER VP OF COMMERCIAL LENDING 177246 0 46986 0 3158 0 11400 0 33781 0 272571 0 0 0 STEVEN KLITZING REGIONAL VICE PRESIDNET 167236 0 45794 0 2895 0 10197 0 23614 0 249736 0 0 0 MARION BRENNER VP OF BRANCH EXPERIENCE SU 139037 0 47712 0 6505 0 8782 0 20585 0 222621 0 0 0 JAMES HOUSTON REGIONAL VICE PRESIDNET 141001 0 47918 0 1326 0 8497 0 10762 0 209504 0 0 0 PART I, LINES 4A-B IN LATE 2018, KRISTIN MARSCHNER ANNOUNCED HER INTENTION TO SEVER HER EMPLOYMENT WITH THE CREDIT UNION IN EARLY 2019. IN ADVANCE OF HER DEPARTURE, SHE AGREED TO SURRENDERED HER SPLIT DOLLAR INSURANCE POLICY IN 2018 TO REPAY THE LOAN. TO HELP FACILITATE THIS TRANSACTION, THE ASSOCIATED LOAN INTEREST WAS FORGIVEN. THE CREDIT UNION INCREASED HER COMPENSATION BY $36,238 TO COVER THE TAX IMPLICATIONS OF THIS TRANSACTION. CERTAIN INDIVIDUALS FROM THE CREDIT UNION'S EXECUTIVE MANAGEMENT TEAM PARTICIPATE IN A SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN (SERP). DURING 2018, THE CREDIT UNION ACCCRUED FOR SERP BENEFITS FOR CHERYL DEBOER, JEFF FIELDER, KRISTIN MARSHNER, RAY BLACK, AND TIM MERWIN IN THE AMOUNTS OF $32,009, $51,718, $42,429, $42,170 AND $40,512, RESPECTIVELY. ADDITIONALLY, DURING 2018 THE CREDIT UNION PAID OUT $406,074 IN RETIREMENT BENEFITS TO THE PRESIDENT/CEO, A PORTION OF WHICH WAS ACCRUED FOR DURING THE PRIOR YEAR. THIS PAYOUT IS INCLUDED IN THE CEO'S 2018 W-2 COMPENSATION. ADDITIONALLY, THE CREDIT UNION PROVIDES SUPPLEMENTAL RETIREMENT BENEFITS TO THE CHERYL DEBOER, JEFF FIELDER, TIMOTHY MERWIN, AND RAY BLACK THROUGH AN ARRANGEMENT REFERRED TO AS A "COLLATERAL ASSIGNED SPLIT DOLLAR." AT SPECIFIED TIMES, THE PARTICIPANTS 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 PARTICIPANTS. UPON THE PARTICIPANT'S DEATH THE CREDIT UNION RECOVERS ITS PREMIUMS PLUS INTEREST, PLUS KEY-PERSON INSURANCE PROCEEDS. CHERYL DEBOER PRESIDENT & CEO TO FUND LIFE INSURANCE POLICY X 5400000 5858198 0 1 1 JEFF FIELDER EVP OF FINANCE TO FUND LIFE INSURANCE POLICY X 1450000 1573035 0 1 1 RAY BLACK EVP OF SALES AND MARKETING TO FUND LIFE INSURANCE POLICY X 1500000 1535512 0 1 1 TIM MERWIN EVP OF LENDING TO FUND LIFE INSURANCE POLICY X 700000 716572 0 1 1 9683317 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 THE CREDIT UNION HAS MEMBERS. FORM 990, PART VI, SECTION A, LINE 7A THE MEMBERS ARE ALLOWED TO ELECT DIRECTORS OF THE GOVERNING BODY. 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 990 IS PREPARED BY AN INDEPENDENT AND EXPERIENCED CPA FIRM. PRIOR TO FILING, THE FORM 990 IS REVIEWED BY THE CREDIT UNION'S CEO, EVP OF FINANCE, VP OF FINANCE & INTERNAL AUDIT MANAGER. ONCE REVIEWED AND APPROVED, FORM 990 IS FILED WITH THE IRS. MANAGEMENT THEN INFORMS THE CREDIT UNION'S BOARD THAT THE FORM 990 HAS BEEN COMPLETED AND FILED, MAKING IT AVAILABLE TO THEM UPON REQUEST. FORM 990, PART VI, SECTION B, LINE 12C CONFLICT OF INTEREST POLICY IS SIGNED EVERY YEAR AT THE ANNUAL MEETING. AT THE BEGINNING OF EVERY BOARD MEETING, BOARD MEMBERS ARE ASKED IF THERE ARE POTENTIAL OR ACTUAL CONFLICTS WITH ANY OF THE BOARD ITEMS. DIRECTORS ABSTAIN FROM ANY VOTING WHERE A CONFLICT EXISTS. FORM 990, PART VI, SECTION B, LINE 15 A COMMITTEE OF THE BOARD PREPARES A WRITTEN EVALUATION OF THE CEO AND OBTAINS COMPARABLE SURVEYS. FORM 990, PART VI, SECTION C, LINE 19 RECORDS ARE MADE AVAILABLE IN ACCORDANCE WITH THE MICHIGAN CREDIT UNION ACT AND NCUA RULES AND REGULATIONS. FORM 990, PART IX, LINE 24E OTHER OPERATING EXPENSES 997,021. MAINTENANCE 489,945. TRAINING/BUSINESS DEVELOPMENT 329,353. FORM 990, PART XII, LINE 2C THERE WERE NO CHANGES IN THE PROCESS OF THE COMMITTEE THAT ASSUMES RESPONSIBILITY OF THE OVERSIGHT OF THE AUDIT AND SELECTION OF THE INDEPENDENT AUDITOR.