2019-11-14T14:22:53-06:00 2018-12-31 420714325 RSM US LLP 801 NICOLLET MALL WEST TOWER STE 1100 MINNEAPOLIS MN 554022526 990 2018-01-01 410788273 CENTRICITY CREDIT UNION CENT 2187402281 4477 LAVAQUE RD HERMANTOWN MN 55811 CONSTANCE CARTER CFO 2187402281 2019-11-12 1 KACIE MCEWEN P01599614 6123324300 66.98.98.3 2019-11-12 12:47:07 CS P DA39A3EE5E6B4B0D3255BFEF95601890AFD80709 B56786F7D21A8F39D00ED83C272556B8DDCB8C36 2018 2020-03-31 21:24:44Z DOUGLAS RALSTON 4477 LAVAQUE RD HERMANTOWN MN 55811 9000635 0 X WWW.CENTRICITY.ORG X 1943 MN THE PRINCIPLES AND BELIEFS GUIDING OUR CREDIT UNION AS WE PURSUE OUR PURPOSE TO FOCUS ON CREATING AND BUILDING REAL RELATIONSHIPS, EXCEEDING EXPECTATIONS, ENCOURAGE AND EDUCATE MEMBERS ON THE USE OF TECHNOLOGY AND UNDERSTANDING AND SERVING THE FINANCIAL NEEDS OF OUR MEMBERS AND WORK TO PROVIDE SOLUTIONS WHEN LIFE HAPPENS. 7 7 84 12 24425 6554 0 0 4088665 8491618 213734 488423 0 6000 4302399 8986041 0 0 105280 500531 1161689 2555637 0 0 0 2650497 4548981 3917466 7605149 384933 1380892 139210370 149402069 123870101 132622091 15340269 16779978 X WITH LOCATIONS IN HERMANTOWN, DULUTH, AND SUPERIOR, WE ARE A FINANCIAL INSTITUTION OF PEOPLE HELPING PEOPLE. WE CARE ABOUT THE COMMUNITIES WE SERVE AND LOVE GIVING OUR MEMBERS THE FINANCIAL EDUCATION THEY NEED TO THRIVE AND ENCOURAGE SAVING TO BUILD ECONOMIC SECURITY FOR THEMSELVES AND THEIR FAMILIES. AT ALL LEVELS OF OUR OPERATION, WE ARE DEDICATED TO PROVIDING OUTSTANDING MEMBER SERVICE. 0 0 CREDIT UNION BANKING SERVICE PROGRAMS:THE CREDIT UNION OFFERS A FULL RANGE OF BANKING SERVICES TO THE MEMBERS. AS OF 12/31/18 OUR MEMBERS HAD $130,735,563 ON DEPOSIT IN INSURED ACCOUNTS IN THE CREDIT UNION. THE CREDIT UNION HAD $68,891,424 IN SAVINGS ACCOUNTS, $27,014,304, IN CHECKING ACCOUNTS, $19,208,957, IN MONEY MARKET, AND $12,240,182, CERTIFICATES OF DEPOSIT. THE AVERAGE RATE OF RETURN ON SAVINGS ACCOUNTS AT YEAR END WAS .15%. MONEY MARKET ACCOUNTS EARNED AN AVERAGE OF .30% AT YEAR END. NON-IRA CERTIFICATES EARNED 1.75% AT YEAR END. THE CREDIT UNION BEGAN THE YEAR WITH 16,664 MEMBERS AND ENDED THE YEAR WITH 16,491 FOR A DECREASE OF 173 MEMBERS. CREDIT UNION LENDING:THE CREDIT UNION EXISTS TO PROVIDE LOANS TO ITS MEMBERS AT RATES AND TERMS NOT AVAILABLE TO OUR FIELD OF MEMBERSHIP THROUGH BANKS OR OTHER FINANCIAL INSTITUTIONS. THE LARGEST PORTION OF OUR LENDING IS MADE UP OF USED VEHICLE LOANS. THE CREDIT UNION HAD $41,303,137 IN USED AUTO LOANS OUTSTANDING AT DECEMBER 31, 2018. USED AUTO LOANS REPRESENT 36.62% OF ALL OUTSTANDING LOANS AT DECEMBER 31, 2018. THE CREDIT UNION HAD $10,284,985 IN OUTSTANDING FIRST HOME LOANS AS OF 12/31/18. THEY REPRESENT 9.02% OF OUR LOAN PORTFOLIO AND 6.88% OF OUR TOTAL ASSETS. THE AVERAGE OFFERRING RATE AT DECEMBER 31, 2018 FOR FIRST MORGAGE LOANS WAS 4.75%. THE TOTAL LOAN PORTFOLIO INCREASED $16,018,593 DURING 2018. THE DELINQUENCY RATIO FOR THE PORTFOLIO AT YEAR END WAS .87%. 0 0 0 0 0 0 0 0 0 1 1 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 2581 0 1 84 1 1 1 0 0 0 0 0 0 0 X 7 7 0 0 0 0 1 1 1 1 1 0 1 1 0 1 1 1 1 1 1 0 0 X CONSTANCE CARTER 2187297733 4477 LAVAQUE ROAD HERMANTOWN MN 55811 LEONARD LUOMA CHAIR 2.00 X X 0 0 0 MARGARET TAYLOR VICE CHAIR 2.00 X X 0 0 0 STEPHEN MORGAN SECRETARY 2.00 X X 0 0 0 PATRICIA HENDRICKSON BOARD MEMBER 2.00 X 0 0 0 RENEE MCADAMIS BOARD MEMBER 2.00 X 0 0 0 MARK THORSTEN BOARD MEMBER 2.00 X 0 0 0 GAYLE WAHNER BOARD MEMBER 2.00 X 0 0 0 SCOTT LUNDGREN CEO/TREASURER (UNTIL 5/21/18) 40.00 X 72831 0 3864 DOUGLAS RALSTON CEO/TREASURER (AS OF 5/22/18) 40.00 X 235551 0 66618 CONSTANCE CARTER CFO 40.00 X 92369 0 40673 400751 0 111155 1 0 1 0 FISERV 75 REMITTANCE DRIVE SUITE 1649 CHICAGO IL 60675 CORE SOFTWARE AND OTHER SERVICE SOFTWARE 1156963 COMPUDYNE 1524 EAST 37TH ST HIBBING MN 55746 IT SERVICES 205326 TELEGRETE 4111 MACKENZIE COURT NE SUITE 100 ST MICHAEL MN 55376 BUILDING MAINTENANCE SERVICES 140506 3 INCOME FROM MEMBER LOA 522100 5732144 5732144 NON-INTEREST INCOME 522100 2759474 2735049 24425 8491618 503017 503017 6000 0 6000 6000 6000 14594 -14594 -14594 -14594 8986041 8467193 24425 494423 X 500531 514809 1624777 57925 193639 164487 140506 19175 49388 816452 221921 219247 627095 222140 35038 14631 228295 31266 PROVISION FOR LOAN LOSS 681271 LOAN SERVICING EXPENSES 538167 ATM EXPENSES 414382 COLLECTION EXPENSES 91960 198047 7605149 8980836 6392916 1744 3969 96663416 112642144 433522 555622 7140537 2783724 4331239 4356813 26052364 22699793 2747249 2750812 139210370 149402069 661510 1886528 123208591 130735563 123870101 132622091 X 0 0 0 0 15340269 16779978 15340269 16779978 139210370 149402069 1380892 58817 0 X 0 1 X 1 0 621712 621712 5089072 1733999 3355073 2639 2639 0 1427114 1047086 380028 4356813 FIRST EMPIRE INVESTMENTS 4259976 F CERTIFICATE OF DEPOSITS 15385820 C INVESTMENT IN CORPORATE CENTRAL 419852 C OTHER INVESTMENTS 2419545 F INVESTMENT IN FEDERAL HOME LOAN BANK 197100 C CUSO INVESTMENT 17500 C 22699793 MEMBERS' SHARES 130735563 130735563 X X 0 1 0 DOUGLAS RALSTON CEO/TREASURER (AS OF 5/22/18) 107367 0 2920 0 125264 0 54766 0 13237 0 303554 0 0 0 PART I, LINE 4B CONSTANCE CARTER, CFO, AND DOUGLAS RALSTON, CEO, BOTH PARTICIPATED IN NONQUALIFIED RETIREMENT PLANS. CONSTANCE RECEIVED NO DISBURSEMENTS IN 2018. DOUGLAS RECEIVED A DISBURSEMENT OF $125,000. FORM 990, PART VI, SECTION A, LINE 6 THE CREDIT UNION'S MEMBERS HAVE RIGHTS TO ELECT THE MEMBERS OF THE GOVERNING BODY. THE CREDIT UNION'S MEMBERS ALSO RECEIVE A SHARE OF THE ORGANIZATION'S PROFITS IN THE FORM OF CASH DIVIDENDS. FORM 990, PART VI, SECTION A, LINE 7A MEMBERS OF THE CREDIT UNION HAVE THE RIGHT TO ELECT ONE OR MORE MEMBERS OF THE ORGANIZATION'S GOVERNING BODY, WHETHER PERIODICALLY, OR AS VACANCIES ARISE, OR OTHERWISE. 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 FORM 990 IS PREPARED BY AN INDEPENDENT ACCOUNTANT AND REVIWED BY THE CFO BEFORE FILING WITH THE IRS. THE FILED FORM 990 WILL BE PRESENTED TO THE BOARD OF DIRECTORS AT THE BOARD MEETING FOLLOWING THE FILING OF THE RETURN WITH THE IRS. FORM 990, PART VI, SECTION B, LINE 12C WHEN MATTERS PERTAINING TO THE SPECIFIC PERSONAL INTEREST OF A BOARD MEMBER ARE DISCUSSED, THE AFFECTED BOARD MEMBER OR MEMBERS WILL NOT ENGAGE IN THE DISCUSSION NOR PARTICIPATE IN THE VOTE AND THE MINUTES WILL SO STATE. IF MORE THAN ONE BOARD MEMBER IS INVOLVED IN MATTERS INVOLVING A CONFLICT OF INTEREST AND A VOTE IS CALLED, THE NUMBER VOTING MUST EXCEED THE QUORUM REQUIREMENTS FOR THE MEETING OR UNANIMOUS ACTION IS REQUIRED OF THE VOTING BOARD MEMBERS. EXAMPLES OF CONFLICT OF INTEREST SITUATIONS WOULD BE ACTION TO REDUCE INTEREST ON THE OBLIGATION OF A RELATIVE, PURCHASE LAND FOR THE PURPOSE OF ERECTING A CREDIT UNION OFFICE WHERE THE LAND IS OWNED BY A DIRECTOR, OR SELL CASUALTY INSURANCE THROUGH THE CREDIT UNION WHEN A BOARD MEMBER IS AN AGENT. ANY CREDIT UNION EMPLOYEE, DIRECTOR, OFFICER, OR SPOUSE WHO IS ASSOCIATED *WITH, OR HOLD A MATERIAL** OWNERSHIP INTEREST IN ANOTHER FINANCIAL INSTITUTION, TRADES ASSOCIATION OR RELATED BUSINESS WILL FILE AN ANNUAL DISCLOSURE STATEMENT WITH THE PRESIDENT OR BOARD CHAIRMAN WITHIN 30 DAYS OF JANUARY 1, THE START OF EMPLOYMENT OR TAKING OFFICE. ANY APPARENT CONFLICT OF INTEREST DISCLOSED BY THE STATEMENT WILL BE RESOLVED BY THE PRESIDENT OR BOARD PERSONNEL COMMITTEE AND THE INDIVIDUAL. *AS A DIRECTOR, OFFICER OR EMPLOYEE **DEFINED IN TERMS OF DOLLARS AS $5,000.00 OR MORE. NOTE:REPORTING MECHANISMS WILL INCLUDE: EMPLOYEES TO THE MANAGER, MANAGEMENT TO THE CHAIRMAN AND OTHERS TO THE SECRETARY OF THE BOARD. FORM 990, PART VI, SECTION B, LINE 15A THE BOARD OF DIRECTORS APPROVES THE PRESIDENT'S COMPENSATION. THIS APPROVAL IS NOTED IN THE BOARD MINUTES. THE CREDIT UNION USES A THIRD PARTY VENDOR PAYSCALE TO SET COMPENSATION RANGES; INCLUDING FOR THE PRESIDENT. FORM 990, PART VI, SECTION C, LINE 19 FINANCIAL STATEMENTS, CONFLICT OF INTEREST POLICY AND GOVERNING DOCUMENTS ARE AVAILABLE UPON REQUEST FOR THE SAME PERIOD OF DISCLOSURE AS SET FORTH IN SECTION 6104(D). FORM 990, PART IX, LINE 11G DEBIT CARD EXPENSES 449,574. WEBSITE EXPENSES 8,250. MEMBERSHIP DUES 51,970. OTHER OUTSIDE SERVICES 306,658.