2019-11-13T16:12:09-06:00 2018-12-31 382492570 DOEREN MAYHEW 305 WEST BIG BEAVER ROAD TROY MI 48084 990 2018-01-01 381418001 1199 CORNERSTONE COMMUNITY FINANCIAL CREDIT UNION 1199 2483409310 2955 UNIVERSITY DRIVE AUBURN HILLS MI 48326 HEIDI KASSAB CEO 2483409310 2019-11-12 1 JOSEPH ZITO CPA P00648440 2482443000 64.95.240.2 2019-11-12 09:12:34 ES P DA39A3EE5E6B4B0D3255BFEF95601890AFD80709 A7DB26C3BB201601930FCFA0C4651552B54C26A2 2018 2020-03-31 21:24:44Z HEIDI KASSAB 2955 UNIVERSITY DR AUBURN HILLS MI 48326 14753782 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 96 8 20098 -41909 0 0 12872177 14456984 205428 276700 24611 20098 13102216 14753782 0 0 0 0 4260027 4984811 0 0 0 6923752 7727903 11183779 12712714 1918437 2041068 269342427 284138924 234701856 247457285 34640571 36681639 REVOLUTIONIZE THE SERVICE EXPERIENCE FULFILLING THE CHANGING NEEDS OF MEMBERS AND OUR COMMUNITIES. 0 0 PROVIDED OVER $84 MILLION IN LOANS TO OUR MEMBERS. INCREASED MEMBER SHARE BALANCES BY $5.8 MILLION OPENED OVER 2,800 NEW MEMBER 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 4350 0 1 96 1 1 1 0 0 0 0 0 0 0 X 7 7 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 0 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 CEO 40.00 X 317653 0 22955 DAVID BRANDT CFO 40.00 X 75050 0 3412 BETH WIELGAT CFO 40.00 X 61385 0 2148 CHRIS MANGENO VP OF LENDING AND COLLECTI 40.00 X 130958 0 17034 TONYA DUPREE VP RETAIL DELIVERY 40.00 X 127844 0 5541 DAVE SHOSEY VP OF IT 40.00 X 115426 0 16373 STEVE FLORES VP OF OPERATIONS 40.00 X 103983 0 15535 932299 0 82998 5 0 1 0 JACK HENRY AND ASSOCIATES PO BOX 609 MONETT MO 65708 CORE SOFTWARE 432035 APCOR CONSTRUCTION & DEVELOPMENT 22316 HARPER AVE ST CLAIR SHORES MI 48080 BRANCH CONSTRUCTION 355256 VISA PO BOX 4521 CAROL STREAM IL 60197 CREDIT CARD PROCESSING 300585 MARQUIS SOFTWARE SOLUTIONS INC PO BOX 660919 DALLAS TX 752660919 CUSTOMER MANAGEMENT SYSTEM 136400 US SIGNAL 201 IONIA AVE SW GRAND RAPIDS MI 49503 DATA LINES 131635 11 LOAN INCOME 522100 10294080 10294080 FEE INCOME 522100 4162904 4162904 14456984 276700 276700 NON-MEMBER ATM FEES 900099 20098 20098 20098 14753782 14456984 20098 276700 X 482603 3528539 223916 435754 313999 19320 81000 7531 857320 430946 617760 516617 99700 11462 1823041 47837 624481 177908 DEBIT/CREDIT CARD EXPEN 832216 LOAN SERVICING EXPENSE 689730 PROVISION FOR LOAN LOSS 288891 MAINTENANCE 182413 419730 12712714 1794598 1791399 10690723 16570983 1093154 744264 4887206 4750000 233304097 243646905 619399 769193 17380626 7815544 9602390 9565082 1232339 507470 2708800 1535300 64709 49547 3345012 4208781 269342427 284138924 2576669 1515278 8000000 16000000 224125187 229942007 234701856 247457285 X 0 0 0 0 34640571 36681639 34640571 36681639 269342427 284138924 2041068 0 X X 0 1 X 1 0 2043939 2043939 8562938 2536028 6026910 142483 139879 2604 5493572 4695187 798385 1137694 444450 693244 9565082 MEMBER SHARES 229942007 229942007 X 14753782 0 14753782 0 14753782 12712714 0 12712714 0 12712714 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, 2018. X 1 1 X X X X X 1 1 0 HEIDI KASSAB CEO 280114 0 37539 0 0 0 11205 0 11750 0 340608 0 0 0 PART I, LINES 4A-B DAVID BRANDT, RECEIVED SEVERANCE IN THE AMOUNT OF $11,770 DURING 2018. 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 PARTICIPANTS. 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 4750000 0 1 1 4750000 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 WILL BE SUBMITTED TO THE BOARD OF DIRECTORS FOR REVIEW 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 15A 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 24E ATM EXPENSES 159,351. MISCELLANEOUS EXPENSES 142,697. EDUCATION AND TRAINING 117,682. 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.