2019-11-04T18:52:08-06:00 2018-12-31 382492570 DOEREN MAYHEW 12060 S W 129TH COURT STE 201 MIAMI FL 331864582 990 2018-01-01 951585409 SOUTHLAND CREDIT UNION SOUT 5628626831 10701 LOS ALAMITOS BLVD LOS ALAMITOS CA 90720 THOMAS LENT PRESIDENT/CEO 5628626831 2019-11-04 1 DOUGLAS J ORTH P01076394 3052328272 104.11.88.150 2019-11-04 18:31:22 ES P DA39A3EE5E6B4B0D3255BFEF95601890AFD80709 A7DB26C3BB201601930FCFA0C4651552B54C26A2 2018 2020-01-14 16:20:31Z THOMAS LENT 10701 LOS ALAMITOS BLVD LOS ALAMITOS CA 90720 33489368 0 X WWW.SOUTHLANDCU.ORG X 1936 CA WE ARE DEDICATED TO PROVIDING OUR MEMBERS WITH EXCEPTIONAL, COMPREHENSIVE, AND INNOVATIVE FINANCIAL SOLUTIONS, DELIVERED WITH UNIQUELY PERSONAL SOUTHLAND SERVICE. 9 9 173 12 83262 0 0 0 27699288 30837925 2910654 2609230 1200586 42213 31810528 33489368 0 0 0 0 13960636 13819928 0 0 0 16794961 16753372 30755597 30573300 1054931 2916068 741913433 748924441 658071775 662080434 83841658 86844007 WE ARE DEDICATED TO PROVIDING OUR MEMBERS WITH EXCEPTIONAL, COMPREHENSIVE, AND INNOVATIVE FINANCIAL SOLUTIONS, DELIVERED WITH UNIQUELY PERSONAL SOUTHLAND SERVICE. 0 0 PROVIDED LOW COST LOANS AND HIGH-YIELD DEPOSIT OPTIONS FOR OUR MEMBERSHIP. EDUCATED OUR MEMBERSHIP TO ENSURE FINANCIAL LITERACY AND SECURITY. DURING 2018, 14,259 LOANS WERE GRANTED AND SERVICES WERE PROVIDED TO 62,014 MEMBERS. 0 0 0 0 0 0 0 0 0 1 0 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 1 1 0 0 1 13829 0 1 173 1 1 1 0 0 0 0 0 1 0 X 9 9 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 CA X CHRISTOPHER BURNS 5629368757 10701 LOS ALAMITOS BLVD LOS ALAMITOS CA 90720 WALTER FINNIGAN DIRECTOR 1.00 X 0 0 0 ANNIE PEREZ DIRECTOR 1.00 X 0 0 0 ANGELA AVERY CHAIRMAN 1.00 X 0 0 0 DOLORES ARRIOLA DIRECTOR 1.00 X 0 0 0 ROBERT HALE DIRECTOR 1.00 X 0 0 0 BRAD SILCOX SECRETARY/TREASURER 1.00 X 0 0 0 JOSE MANZANO V. CHAIRMAN 1.00 X 0 0 0 BECKY COOL DIRECTOR 1.00 X 0 0 0 MARGARET TOLLNER DIRECTOR 1.00 X 0 0 0 THOMAS LENT CEO 40.00 X 382436 0 163760 RENE LEJAY COO 40.00 X 249703 0 115023 CHRISTOPHER BURNS CFO 40.00 X 239429 0 21226 MATTHEW HERRICK VP SALES & MARKETING 40.00 X 216599 0 21484 CURT BANNOCK VP CIO 40.00 X 170170 0 15976 PATTY JIMENEZ VP OF LENDING 40.00 X 180191 0 17348 TINA FUGELSANG SVP HARBOR OPERATIONS 40.00 X 1236214 0 95953 BERTRAND VILLAVERT VP CONTROLLER 40.00 X 170501 0 21671 2845243 0 472441 25 0 1 0 NEXT VENTURE INC 560 RIVERSIDE DRIVE GLENDALE CA 91204 GENERAL CONSTRUCTION 782435 DIEBOLD 5995 MAYFAIR ROAD NORTH CANTON OH 44720 ATM EQUIPMENT AND MAINTENANCE 588667 JACK HENRY & ASSOCIATES 663 W HIGHWAY 60 MONETT MO 657088215 CORE SYSTEM PROCESSING 398047 PROMENADE PROPERTIES III LLC 525 SANTA MONICA BLVD SANTA MONICA CA 90401 PROPERTY MANAGEMENT 336968 FISERV PO BOX 80123 CITY OF INDUSTRY CA 91716 PAYMENT SOLUTIONS 319505 21 INTEREST INCOME ON LOANS 522100 22186700 22186700 FEES/CHARGES/OTHER 522100 8567963 8567963 NON-MEMBER ATM INCOME 900099 61608 61608 INSURANCE SALES 524298 21654 21654 30837925 2609230 2609230 42213 0 42213 42213 42213 33489368 33406106 83262 0 X 1171577 8003776 956932 2858180 829463 552962 117037 257007 322815 837332 877301 1376528 832378 242934 34850 2768199 199652 1039488 99664 PROVISION FOR LOAN LOSS 2999000 LOAN SERVICING 798103 VISA/CHECK CARD FEES 666394 MISCELLANEOUS 660314 2071414 30573300 7143221 6151905 53002083 33434292 3750071 1578411 2620918 11829525 503793196 539322822 1662568 1626813 23357572 12368406 11056421 10989166 104519840 85952042 20693779 23384201 2211805 1742334 31459531 32912930 741913433 748924441 8515331 9034613 10000000 649556444 643045821 658071775 662080434 X 0 0 0 0 83841658 86844007 83841658 86844007 741913433 748924441 2916068 86281 0 X X 0 1 X 1 0 3335898 3335898 10249164 4409817 5839347 1463135 909315 553820 8309375 7049274 1260101 10989166 SHARE DRAFTS 144931275 SHARES/ESCROWS 233205364 MONEY MARKET 124636335 IRA SHARES 7648649 CERTIFICATES OF DEPOSIT 132624198 643045821 X 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 FINANCIAL ACCOUNTING STANDARDS BOARD (FASB) ACCOUNTING STANDARDS BOARD (ASC) CLARIFIES ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES REPORTED IN THE CONSOLIDATED 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 CONSOLIDATED FINANCIAL STATEMENTS. ADDITIONALLY, NO INTEREST AND PENALTIES HAVE BEEN RECORDED IN THE ACCOMPANYING CONSOLIDATED FINANCIAL STATEMENTS RELATED TO UNCERTAIN TAX POSITIONS. CURRENTLY, THE 2017, 2016, AND 2015 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 X 0 1 0 THOMAS LENT CEO 310658 0 49595 0 22183 0 143814 0 19946 0 546196 0 0 0 RENE LEJAY COO 227902 0 21701 0 100 0 104814 0 10209 0 364726 0 0 0 CHRISTOPHER BURNS CFO 219329 0 20000 0 100 0 14477 0 6749 0 260655 0 0 0 MATTHEW HERRICK VP SALES & MARKETING 191048 0 17501 0 8050 0 13253 0 8231 0 238083 0 0 0 CURT BANNOCK VP CIO 161649 0 6391 0 2130 0 5491 0 10485 0 186146 0 0 0 PATTY JIMENEZ VP OF LENDING 165895 0 14196 0 100 0 10872 0 6476 0 197539 0 0 0 TINA FUGELSANG SVP HARBOR OPERATIONS 194633 0 11481 0 1030100 0 94563 0 1390 0 1332167 0 0 0 BERTRAND VILLAVERT VP CONTROLLER 154609 0 15792 0 100 0 10918 0 10753 0 192172 0 0 0 PART I, LINE 4B CREDIT UNION EXECUTIVES, FERRIS FOSTER (FORMER CEO), THOMAS LENT, TINA FUGELSANG, AND RENE LEJAY PARTICIPATE IN A NONQUALIFIED RETIREMENT PLAN. THE CREDIT UNION RECOGNIZED BENEFIT EXPENSES FOR THREE EXECUTIVES DURING 2018. THE 2018 BENEFIT EXPENSES BY EXECUTIVE WERE AS FOLLOWS: RENE LEJAY $89,069; THOMAS LENT $127,314; TINA FUGELSANG $78,063. THE 2018 CASH DISTRIBUTION ARE AS FOLLOWS: TINA FUGELSANG $1,030,000. ADDITIONALLY, THE CREDIT UNION PROVIDES SUPPLEMENTAL RETIREMENT BENEFITS TO THOMAS LENT, CHRISTOPHER BURNS, RENE LEJAY, AND MATTHEW HERRICK, 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. THOMAS LENT CEO TO FUND LIFE INSURANCE POLICY X 6450000 6388201 0 1 1 RENE LEJAY COO TO FUND LIFE INSURANCE POLICY X 1500000 1441324 0 1 1 CHRISTOPHER BURNS CFO TO FUND LIFE INSURANCE POLICY X 2100000 2100000 0 1 1 MATTHEW HERRICK SVP MARKETING TO FUND LIFE INSURANCE POLICY X 1900000 1900000 0 1 1 11829525 SCHEDULE 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 FUND 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 IS A COOPERATIVE FINANCIAL INSTITUTION THAT IS OWNED AND CONTROLLED BY ITS MEMBERS. FORM 990, PART VI, SECTION A, LINE 7A EACH BOARD MEMBER AND SUPERVISORY COMMITTEE MEMBER SERVES A 3 YEAR TERM, AND IS NOMINATED AND ELECTED BY THE MEMBERSHIP. 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. ON JANUARY 1, 2017, 100 PERCENT OF THE ASSETS AND LIABILITIES OF HARBOR FEDERAL CREDIT UNION WERE MERGED WITH SOUTHLAND CREDIT UNION. THE BUSINESS COMBINATION WAS A MUTUAL AGREEMENT BETWEEN SOUTHLAND CREDIT UNION AND HARBOR FEDERAL CREDIT UNION IN ORDER TO ENHANCE THE AVAILABILITY AND QUALITY OF SERVICES FOR BOTH FIELDS OF MEMBERSHIP. FORM 990, PART VI, SECTION B, LINE 11B THE FORM 990 IS PRESENTED TO THE SUPERVISORY COMMITTEE TO BE REPORTED TO THE BOARD BEFORE FILING. FORM 990, PART VI, SECTION B, LINE 12C MANAGEMENT IS RESPONSIBLE FOR ENFORCING ALL CONFLICT OF INTEREST POLICIES. PERIODIC REVIEWS ARE COMPLETED BY INTERNAL AUDITORS WHO REPORT THEIR FINDINGS TO THE SUPERVISORY COMMITTEE. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD FORMS AN EXECUTIVE COMPENSATION COMMITTEE WHICH SOLICITS A REVIEW FROM INDEPENDENT SOURCES AS WELL AS COMPARBILITY DATA. THIS COMMITTEE PROVIDES A RECOMMENDATION TO THE FULL BOARD TO APPROVE THE CEO'S SALARY. OTHER MANAGEMENT SALARIES ARE DETERMINED USING COMPARATIVES AND 3RD PARTY RECOMMENDATIONS. FORM 990, PART VI, SECTION C, LINE 19 ALL PUBLIC DOCUMENTS AND FINANCIALS ARE EITHER POSTED IN THE BRANCHES, AVAILABLE UPON REQUEST, OR BOTH. FORM 990, PART IX, LINE 24E MAINTENANCE AND REPAIRS 447,649. ATM FEES 354,296. CHARGE-OFF 340,314. MEMBER STATEMENTS 224,332. SHARE BRANCHING 196,158. LIFE INSURANCE (SD) 159,642. TRAINING/EDUCATION ACTIVITIES 139,833. ELECTRONIC BILL PAY 113,913. BUSINESS DEVELOPMENT 95,277. 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. SCFCU SERVICES INC 10701 LOS ALAMITOS BLVD LOS ALAMITOS CA 90720 954489756 INSURANCE CA SOUTHLAND CREDIT UNION C 2072 1.00000 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0