2019-11-14T11:59:56-07:00 2018-12-31 BKD LLP 201 N Illinois Street Indianapolis IN 46204 990 2018-01-01 350702986 Teachers Credit Union TEAC 5742328012 110 South Main Street South Bend IN 46601 Todd Brown SVP & CFO 5742328012 2019-11-15 1 Michael Summers P00838533 3173834000 2019-11-01 204.156.123.26 2018 2020-03-31 21:24:44Z Paul A Marsh 110 S Main Street South Bend IN 46601 152467177 0 X www.tcunet.com X 1931 IN State Chartered Credit Union 10 1 868 0 4980969 617404 0 0 130954307 144634305 6625453 6184000 914155 1012801 138493915 151831106 87349 117792 0 0 49869466 52433437 0 0 0 71078951 79916109 121035766 132467338 17458149 19363768 3127095775 3171131618 2866515124 2893307206 260580651 277824412 State Chartered Credit Union 0 0 In 2018, Teachers Credit Union (TCU) continued to provide a superior member experience by offering competitive deposit rates and making sensible loans to its membership. At 2018 year-end, TCU operated 54 locations and over 85 ATMs, allowing members a greater choice in products, services, and locations. TCU eService applications offered members better access to their accounts through Internet Banking, Bill Pay, and Mobile Banking at competitive costs. TCU continued growing its Financial Empowerment Program for its membership to improve the financial literacy of members. The Financial Empowerment Program had 237 teachers enrolled at 164 schools by the end of 2018. TCU also saw strong loan growth and strong growth in membership, surpassing 300,000 members. 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 1 1 1 0 0 0 0 0 0 0 0 0 1 0 1 0 1 0 1 1 0 0 0 0 0 1 1 1 1 0 1 90966 0 1 868 1 1 1 0 0 0 0 0 1 0 X 10 1 0 0 0 0 1 1 0 1 1 0 1 1 1 1 1 1 1 1 1 1 1 1 X Paul Marsh 5742328012 110 South Main Street South Bend IN 46601 X Vince Henderson Chairman 5 1 X X 48878 0 6041 William Hojnacki Vice-Chairman (ended 04/2018) 5 1 X X 18800 0 2071 David Sage Vice Chairman 5 1 X X 45384 0 10094 Shirley Golichowski Secretary 5 1 X X 38900 0 6852 Jim Dubois Board Member 5 1 X 37400 0 4776 Thea Kelly Board Member 5 1 X 35000 0 4683 Diane Maas Board Member 5 1 X 40766 0 4784 John Myers Board Member 5 1 X 38904 0 5913 Roger Thornton Board Member 5 1 X 38600 0 6324 Jackie Morales Board Member 5.00 1 X 0 0 0 Paul Marsh CEO 45 1 X X 1025815 0 43541 Todd Brown SVP Chief Financial Officer 45 1 X 424501 0 34383 Louise M Arsenault SVP General Counsel and CCO 45 1 X 402128 0 35145 Daniel Rousseve SVP Chief Information Officer 45 1 X 338867 0 36756 Chad Douglass SVP Chief Lending Officer 45 1 X 255653 0 42835 Dawn Lara SVP Operations Administration 45 1 X 202063 0 17455 Nicole Alcorn Chief Member Experience Officer 45 1 X 184641 0 27267 Waylon Peterson President TCU Investment Services 45 0 X 305941 0 44329 Randall Tarter Financial Planner 45 0 X 310182 0 30813 Daniel Woodhouse Financial Planner 45 0 X 274514 0 30150 Jeneen Crane AVP TCU Investment Services 45 0 X 236569 0 28425 Paul Schaefer Financial Planner 45 0 X 204639 0 36499 4508145 0 459136 45 0 1 0 StreetLinks Lender Solutions LLC 2114 Central Street Suite 600 Kansas City MO 64108 Mortgage 921840 Holladay Construction Group LLC 227 South Main Street Suite 200 South Bend IN 46601 Construction 345405 Krieg Devault 4101 Edison Lakes Parkway Mishawaka IN 46545 Legal 292626 BKD LLP PO Box 44998 Indianapolis IN 46244 Audit and Accounting 243354 Thorne Grodnik LLP 420 Lincolnway West Mishawaka IN 46544 Legal 169263 8 0 Loan Income 522130 98329869 98329869 0 0 Fee Income 522100 21232042 20699474 532568 0 Other Operating Income 525990 20792553 20792553 0 0 Insurance Agency 524210 4279841 0 4279841 0 0 0 0 0 144634305 6416581 6416581 0 0 0 0 0 0 0 0 0 0 192295 0 131551 0 60744 0 60744 -40616 101360 0 0 271939 504520 0 -504520 271939 -232581 -232581 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Management Fees 541200 67200 0 67200 0 Shared Branching 561439 884857 884857 0 0 0 0 0 0 952057 151831106 146850137 4980969 0 117792 0 0 0 3465220 0 35097620 3102173 7882708 2885716 0 671860 346306 0 0 2940 3075260 3349800 3763681 7508035 0 5662541 322848 0 1242378 22764425 748145 5980858 538728 CU Service Dept/Loan Servicing 12634835 Provision for Loan Loss 8450662 Franchise Tax and Federal Tax 274000 Equipment Maintenance 93635 2485172 132467338 0 0 0 39503605 45653023 61518916 80574380 0 0 7365499 15070404 10719980 10376762 0 0 2640496913 2610685348 162596 172455 38571146 36473572 119736838 68874809 51915356 50862029 210859042 150627276 0 0 44047454 45095426 5162876 4633206 16772392 120907737 3127095775 3171131618 12453502 13461089 0 0 0 0 0 0 0 0 0 0 369933145 196978655 2484128477 2682867462 2866515124 2893307206 X 0 0 0 0 260580651 277824412 260580651 277824412 3127095775 3171131618 X 19363768 -2290740 0 0 0 170733 X 0 1 X 1 0 0 9916746 9916746 0 55053397 23507617 31545780 0 3716891 2548432 1168459 0 51049804 42818760 8231044 0 0 0 0 50862029 0 Member Shares 2670633647 Cashier Checks 8002444 Other 4231371 2682867462 X 151751794 0 0 0 131551 131551 151620243 0 210863 210863 151831106 132388029 0 0 0 131551 131551 132256478 0 210860 210860 132467338 Schedule D, Part X, Line 2 Management has evaluated their income tax positions under guidance included in ASC740. Based on their review, management has not identified any material uncertain tax positions to be recorded or disclosed in the financial statements. Schedule D, Part XI, Line 2d Expenses related to rental properties are moved on the 990. These expenses reduce income by $131,551. Schedule D, Part XI, Line 4b CUSO administration fees of $210,863, which include TCU Insurance Agency and the rental expenses for CUSO buildings, are included in the expenses on the 990 but are moved for audit financial reporting purposes. Schedule D, Part XII, Line 2d Expenses related to rental properties are moved on the 990. These expenses reduce income by $131,551. Schedule D, Part XII, Line 4b CUSO administration fees of $210,860, which include TCU Insurance Agency and the rental expenses for CUSO buildings, are included in the expenses on the 990 but are moved for audit financial reporting purposes. 1 TCU Foundation 110 South Main Street South Bend IN 46601 351939838 501(c)(3) 117792 0 The grant is a set funding amount from Teachers Credit Union for community involvement on an annual basis. These funds are then contributed to qualified organizations based on the vision and bylaws of the TCU Foundation. 1 0 Schedule I, Part I, Line 2 TCU Foundation is a foundation set aside from Teachers Credit Union. This governing body abides by the bylaws for TCU Foundation and each donation is reviewed and agreed upon by the Board of Directors. X 1 1 X X X X X 0 1 0 Paul Marsh CEO 527885 0 487440 0 10490 0 32750 0 10791 0 1069356 0 0 0 Todd Brown SVP Chief Financial Officer 246242 0 177896 0 363 0 25646 0 8737 0 458884 0 0 0 Louise M Arsenault SVP General Counsel and CCO 236327 0 164836 0 965 0 30759 0 4386 0 437273 0 0 0 Daniel Rousseve SVP Chief Information Officer 207694 0 130995 0 178 0 26560 0 10196 0 375623 0 0 0 Waylon Peterson President TCU Investment Services 147221 0 158430 0 290 0 32503 0 11826 0 350270 0 0 0 Randall Tarter Financial Planner 36873 0 273309 0 0 0 26750 0 4063 0 340995 0 0 0 Daniel Woodhouse Financial Planner 33007 0 241507 0 0 0 22221 0 7929 0 304664 0 0 0 Chad Douglass SVP Chief Lending Officer 198856 0 56363 0 434 0 30948 0 11887 0 298488 0 0 0 Jeneen Crane AVP TCU Investment Services 58822 0 177728 0 19 0 24064 0 4361 0 264994 0 0 0 Paul Schaefer Financial Planner 32951 0 171688 0 0 0 30685 0 5814 0 241138 0 0 0 Dawn Lara SVP Operations Administration 103283 0 98637 0 143 0 12769 0 4686 0 219518 0 0 0 Nicole Alcorn Chief Member Experience Officer 158185 0 26326 0 130 0 23667 0 3600 0 211908 0 0 0 Schedule J, Part I, Line 1a When traveling for a corporate annual meeting, the spousal expenses are covered for the executive management. The travel is not included in compensation as it was incurred for the business purposes of Teachers Credit Union. Schedule J, Part I, Line 3 Teachers Credit Union uses an independent consulting firm to establish the amount of compensation for executive management. There is a written contract including the terms and agreement of the salary for the CEO. The agreement for the CEO is approved by the Board of Directors. Schedule J, Part I, Line 4 There is a SERP in place for the CEO of Teachers Credit Union. There were no contributions made to the plan in 2018. Paul Marsh CEO Split Dollar Arrangement X 9800000 9863971 0 1 1 9863971 Kathleen Hojnacki Vice Chairman 118846 See Part V 0 Schedule L, Part IV In 2018, Kathleen Hojnacki received a payment of deceased William Hojnacki's deferred compensation in the amount of $103,846, all of which had been reported on prior year Form 990s on Part VII. She also received $15,000 of life insurance. The total combined amount of $118,846 was reported to her on Form 1099-MISC. Form 990, Part VI, Section A, Line 6 All members are considered equal and have one vote based on voting requirements. Form 990, Part VI, Section A, Line 7a Board members are elected based on the policy of the Credit Union and Board of Directors. Form 990, Part VI, Section B, Line 11b The 990 information used to prepare the tax return is gathered from within the Accounting Department. The return is compiled using an external accounting firm. The return is reviewed by the Chief Financial Officer and the Controller prior to review by the Board of Directors. Any changes to the tax return or in the instruction of the return are brought to the attention of the Board of Directors for review. Form 990, Part VI, Section B, Line 12c Teachers Credit Union reviews the conflict of interest policy annually with all members of the Board of Directors, Senior Executive Management, Vice Presidents, and Assistant Vice Presidents. All persons in these job classifications are required to complete a disclosure form with regard to accounts held, active loans, and any additional outside occupations. These documents are submitted for review to the Director of Administration. The policy includes steps to avoid conflict of interest and if changes occur regarding potential conflict of interest, it is the responsibility of the director, committee member, or the employee to report such changes to the proper channel. Form 990, Part VI, Section B, Line 15 An independent consulting agency is used to calculate and compare management's compensation. For the Chief Executive Officer, there is also a written contract stating a term and salary that must then be approved by the Board of Directors. Form 990, Part VI, Section C, Line 19 The governing documents of Teachers Credit Union are available upon request. Financial statements are available to the membership as presented in the annual report, which is published in the first quarter each year, or available upon request. Each year, management of Teachers Credit Union reviews the conflict of interest policy, and it is available to others upon request. Form 990, Part VII, Section A, Line 1a The estimated amount of other compensation for the Board of Directors is the reporting year's accrued expense for deferred compensation. The deferred compensation will be paid out to the board members upon retirement from the Board of Directors. Form 990, Part XI, Line 9 Membership Fees are a charge to become part of the membership at Teachers Credit Union. They are not treated as income rather are directly added to equity as ownership within the organization for each membership account that is opened during the year. TCU Agency LLC 110 South Main St South Bend IN 46601 300012071 Insurance Agency IN 4273931 12671598 Teachers Credit Union TCU Lending Agency LLC 110 South Main Street South Bend IN 46601 010867566 Indirect Lending Agency for Autos IN 226913 5003732 Teachers Credit Union TCU Foundation 110 South Main St South Bend IN 46601 351939838 Community funding authority IN 501 (C)3 Private Foundation Teachers Credit Union 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 TCU Foundation b 117792 The grant is a set funding amount from Teachers Credit Union for community involvement on an annual basis. These funds are then contributed to qualified organization based on the vision and bylaws of TCU Foundation. Schedule R, Part V, Line 2 Teachers Credit Union budget amounts based on the number of memberships within the Credit Union. These funds are allocated for community involvement and contributions for public relations. Unused funds throughout the year are transferred to TCU Foundation for additional community funding.