2018-11-15T14:13:22-06:00 2017-12-31 420714325 RSM US LLP 201 N HARRISON STREET SUITE 300 DAVENPORT IA 528011999 990 2017-01-01 366068452 VIBRANT CREDIT UNION VIBR 8003235109 P O BOX 1550 MOLINE IL 61265 TERRY BISHOP CHIEF FINANCIAL OFFICER 8003235109 2018-11-15 1 JENIFER L CHASE P01306883 5638884000 108.171.130.188 2018-11-15 10:39:49 CS P 9598185BFD222D4044500E25553BC2F67B4977B8 67070C4ADE543D19EF7CF6BC4D96443E429CECB7 2017 2019-02-21 02:37:17Z MATTHEW MCCOMBS P O BOX 1550 MOLINE IL 61265 33274787 0 3149 X WWW.VIBRANTCREDITUNION.ORG X 1935 IL WORKING TOGETHER TO IMPROVE THE ECONOMIC WELL-BEING AND QUALITY OF LIFE FOR ALL MEMBERS THROUGH EXCELLENT SERVICE. 9 8 293 9 1303228 16434 0 0 18160616 20946486 4038473 1699762 8977276 10403786 31176365 33050034 27958 12550 0 0 11527018 12527057 0 0 0 13511303 17053593 25066279 29593200 6110086 3456834 581503822 653229100 521574806 585969653 59929016 67259447 WORKING TOGETHER TO IMPROVE THE ECONOMIC WELL-BEING AND QUALITY OF LIFE FOR ALL MEMBERS THROUGH EXCELLENT SERVICE. 0 0 PROVIDE CONSIDERABLE LOANS TO MEMBERS. TOTAL NUMBER OF CONSUMER AND MORTGAGE LOANS OUTSTANDING WAS 39,765. PROVIDED DEPOSITORY SERVICES TO APPROXIMATELY 50,337 MEMBERS. PROVIDED CREDIT CARD SERVICES TO APPROXIMATELY 13,725 MEMBERS. 0 0 0 0 0 0 0 1 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 1 0 0 0 1 8412 0 1 293 1 1 1 0 0 0 0 0 X 9 8 0 0 0 0 1 1 0 1 1 0 0 1 1 1 1 1 1 1 0 0 X MATTHEW MCCOMBS PRESIDENTCHIEF OPERATING OFFICER 8003235109 1900 52ND AVENUE MOLINE IL 612661550 TERRY BRAHM DIRECTOR 1.00 X 0 0 0 JULIE GERMERAAD JAMES VICE CHAIRMAN 1.00 X X 0 0 0 NICK KREMER DIRECTOR 1.00 X 0 0 0 MATTHEW MCCOMBS PRESIDENT/CHIEF EXECUTIVE OFFICER 40.00 X X 373319 0 41600 BRENT PETERSON DIRECTOR 1.00 X 0 0 0 TIM SCARLETT DIRECTOR 1.00 X 0 0 0 ZACK SOTTOS DIRECTOR 1.00 X 0 0 0 NICK TARPEIN SECRETARY/TREASURER 1.00 X X 0 0 0 TERESA VANDYKE CHAIRMAN 1.00 X X 0 0 0 RYAN SOEDT FORMER CHIEF FINANCIAL OFFICER 40.00 X 150016 0 6556 STEVE DUCEY CHIEF EXPERIENCE OFFICER 40.00 X 227406 0 35305 SHELLEY GROVES CHIEF LOAN OFFICER 40.00 X 157115 0 8377 JOSEPH AGOSTINELLI VP OF PRODUCT DEVELOPMENT 40.00 X 115469 0 27341 WILLIAM CERWIN VP OF CREDIT UNION SERVICES 40.00 X 167794 0 34786 STEVE MCATEE CHIEF INFORMATION OFFICER 40.00 X 139570 0 22643 AARON OHLENSEHLE CUSO PRESIDENT 40.00 X 150427 0 28583 JON SEXTON CHIEF COMPLIANCE OFFICER 40.00 X 142051 0 33118 1623167 0 238309 11 0 1 0 APPRAISAL LINX INC 501 DUANE STREET GLEN ELLYN IL 60137 REAL ESTATE APPRAISALS 395215 CLOUDBAKERS LLC 600 W VAN BUREN STREET CHICAGO IL 60607 SOFTWARE DEVELOPMENT 276350 WINDSTREAM PO BOX 9001013 LOUISVILLE KY 40290 TELECOMMUNICATIONS 204127 PARAGON COMMERCIAL INTERIORS INC 210 EMERSON PL SUITE 300 DAVENPORT IA 52801 CONSTRUCTION 164472 IT SAVVY LLC PO BOX 3296 GLEN ELLYN IL 60138 IT CONSULTING 111606 5 LOANS INTEREST 522100 19375681 19375681 LOAN FEES 522100 1144501 1144501 ATM FEES 522100 426304 304558 121746 20946486 915731 915731 1008784 224753 784031 784031 784031 CHECKING FEE INCOME 522200 3479058 3479058 OVERDRAFT CHARGES 522100 2623508 2623508 VISA CHARGE INCOME 522200 911505 911505 3389715 2208233 1181482 10403786 33050034 30047044 1303228 1699762 X 12550 999694 8801164 317964 1591699 816536 125399 210044 353480 491487 2223399 1170456 216250 68762 346532 1600437 155445 UNRELATED BUSINESS INCO 2586 DIVIDENDS PAID TO MEMBE 2515613 PROVISION FOR LOAN LOSS 2231498 SERVICE CHARGES & VISA 1996685 3345520 29593200 83206032 71464533 370617 351821 451912415 527755153 732695 4597433 33205211 13368682 19188447 19836529 26093616 29223631 581503822 653229100 57504169 49960189 542776 816654 463527861 535192810 521574806 585969653 X 0 0 0 0 59929016 67259447 59929016 67259447 581503822 653229100 X 3456834 3873597 X X 0 1 X 1 0 0 1 X 3522623 3522623 21440583 7262122 14178461 7414408 5572329 1842079 827597 534231 293366 19836529 MEMBER DEPOSIT ACCOUNTS 535192810 535192810 X PART IV, LINE 2B: VIBRANT CREDIT UNION COLLECTS AMOUNTS FROM MEMBERS WITH REAL ESTATE LOANS EACH MONTH VIA THEIR CONTRACTUAL PAYMENT SCHEDULE. THESE FUNDS ARE HELD IN ESCROW UNTIL THEY NEED TO BE DISBURSED IN ACCORDANCE WITH THE ESCROW INSTRUCTIONS FOR EACH MEMBER. AMOUNTS HELD IN ESCROW ARE FOR PROPERTY TAXES AND HOMEOWNER'S INSURANCE. PART X, LINE 2: THE CREDIT UNION IS EXEMPT FROM INCOME TAXES UNDER PROVISIONS OF THE INTERNAL REVENUE CODE AND STATES OF ILLINOIS AND IOWA TAX LAWS. MANAGEMENT HAS EVALUATED THE CREDIT UNION'S TAX POSITIONS AND CONCLUDED THAT THEY HAVE TAKEN NO UNCERTAIN TAX POSITIONS THAT WOULD REQUIRE ADJUSTMENTS TO THE FINANCIAL STATEMENTS. GENERALLY, THE CREDIT UNION IS NO LONGER SUBJECT TO U.S. FEDERAL OR STATE AND LOCAL INCOME TAX EXAMINATIONS BY TAX AUTHORITIES FOR YEARS BEFORE 2014. THE CREDIT UNION IS EXEMPT FROM MOST FEDERAL, STATE AND LOCAL INCOME TAXES UNDER THE PROVISIONS OF THE INTERNAL REVENUE CODE AND STATE TAX LAWS. THE CREDIT UNION IS A STATE-CHARTERED CREDIT UNION AS 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. ALTHOUGH THESE TAMS HAVE NO PRECEDENTIAL VALUE, THEY SET FORTH THE IRS' POSITION THAT CERTAIN SOURCES OF INCOME ARE NOT RELATED TO THE EXEMPT PURPOSE OF A STATE-CHARTERED CREDIT UNION AND ARE SUBJECT TO UNRELATED BUSINESS INCOME TAX (UBIT). HOWEVER, COURT CASES HAVE RULED IN FAVOR OF CREDIT UNIONS AND CONCLUDED THAT THE SALE OF CERTAIN INSURANCE PRODUCTS AND THE SALE OF FINANCIAL PRODUCTS AND SERVICES TO MEMBERS ARE EXEMPT FROM UNRELATED BUSINESS INCOME TAX. IN LIGHT OF THE TAMS AND COURT CASES, 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 OPERATION. THE CREDIT UNION BEGAN FILING INCOME TAX RETURNS FOR ITS UNRELATED BUSINESS INCOME BEGINNING WITH TAX YEAR ENDED DECEMBER 31, 2009. HOWEVER, THE TAXING AUTHORITIES HAVE THE ABILITY TO ASSESS TAXES, PENALTIES AND INTEREST FOR ANY YEARS PRIOR TO 2009 FOR WHICH NO TAX RETURN WAS FILED. X X 1 1 X X X 0 0 0 MATTHEW MCCOMBS PRESIDENT/CHIEF EXECUTIVE OFFICER 303797 0 60750 0 8772 0 17145 0 24455 0 414919 0 0 0 RYAN SOEDT FORMER CHIEF FINANCIAL OFFICER 126598 0 23200 0 218 0 6500 0 56 0 156572 0 0 0 STEVE DUCEY CHIEF EXPERIENCE OFFICER 179893 0 36575 0 10938 0 10850 0 24455 0 262711 0 0 0 SHELLEY GROVES CHIEF LOAN OFFICER 131750 0 24775 0 590 0 8321 0 56 0 165492 0 0 0 WILLIAM CERWIN VP OF CREDIT UNION SERVICES 113989 0 52177 0 1628 0 10331 0 24455 0 202580 0 0 0 STEVE MCATEE CHIEF INFORMATION OFFICER 111997 0 27080 0 493 0 7062 0 15581 0 162213 0 0 0 AARON OHLENSEHLE CUSO PRESIDENT 124016 0 26000 0 411 0 6622 0 21961 0 179010 0 0 0 JON SEXTON CHIEF COMPLIANCE OFFICER 117194 0 24602 0 255 0 8857 0 24261 0 175169 0 0 0 PART I, LINE 1A VIBRANT CREDIT UNION PROVIDES THE FOLLOWING TO INDIVIDUALS REPORTED IN PART VII, SECTION A, LINE 1A: TRAVEL FOR COMPANIONS: THIS BENEFIT IS OFFERED TO THE TOP MANAGEMENT OFFICIAL OF THE ORGANIZATION, AND THE DOLLAR AMOUNT OF THE BENEFIT IS NOT INCLUDED IN REPORTABLE COMPENSATION FOR THE PARTICIPATING INDIVIDUAL. ONE OFFICER RECEIVED THIS BENEFIT IN 2017. HEALTH CLUB DUES: THIS BENEFIT IS OFFERED TO THE TOP MANAGEMENT OFFICIAL OF THE ORGANIZATION. THE DUES ARE INCLUDED IN THE REPORTABLE COMPENSATION FOR THE PARTICIPATING INDIVIDUAL. ONE OFFICER RECEIVED THIS BENEFIT IN 2017. MATTHEW MCCOMBS OFFICER MORTGAGE X 429300 351821 0 1 1 351821 FORM 990, PART VI, SECTION A, LINE 6 VIBRANT CREDIT UNION HAS MEMBERS THAT HAVE THE RIGHT TO ELECT THE MEMBERS OF THE GOVERNING BODY. FORM 990, PART VI, SECTION A, LINE 7A VIBRANT CREDIT UNION HAS MEMBERS THAT HAVE THE RIGHT TO ELECT THE MEMBERS OF THE GOVERNING BODY. FORM 990, PART VI, SECTION B, LINE 11B RSM US LLP, THE ACCOUNTING FIRM PREPARING THE 990 TAX RETURN FOR VIBRANT CREDIT UNION, WILL PRESENT THE FINAL FORM 990 TO THE BOARD OF DIRECTORS AND PROVIDE AN OVERVIEW OF THE INFORMATION REPORTED SHORTLY AFTER THE FILING OF THE 990. FORM 990, PART VI, SECTION B, LINE 12C EXECUTIVES, MANAGERS, AND EMPLOYEES MUST AVOID ANY CONFLICTS OF INTEREST BETWEEN THEMSELVES AND VIBRANT CREDIT UNION. SPECIFICALLY, NO EXECUTIVE, MANAGER, OR EMPLOYEE SHALL MAKE ANY INVESTMENT, ACCEPT ANY POSITION OR BENEFITS, PARTICIPATE IN ANY TRANSACTION OR BUSINESS ARRANGEMENT OR OTHERWISE ACT IN A MANNER THAT CREATES OR APPEARS TO CREATE A CONFLICT OF INTEREST WITH VIBRANT CREDIT UNION UNLESS SUCH PERSON MAKES FULL DISCLOSURE OF ALL FACTS AND CIRCUMSTANCES TO, AND OBTAINS THE PRIOR WRITTEN APPROVAL OF THE VICE PRESIDENT OF HUMAN RESOURCES. ADDITIONALLY, VIBRANT CREDIT UNION REQUIRES ALL INTERESTED PERSONS DISCLOSE ANNUALLY ANY RELATIONSHIP THAT COULD GIVE RISE TO A CONFLICT. FORM 990, PART VI, SECTION B, LINE 15A IN JANUARY THE EXECUTIVE COMMITTEE COMPLETES THE PRESIDENT/CEO'S ANNUAL REVIEW BASED ON TWO SECTIONS: 1. OBJECTIVE FACTORS BASED ON VIBRANT CREDIT UNION'S FINANCIAL PERFORMANCE, AND 2. SUBJECTIVE FACTORS BASED ON HOW THE EXECUTIVE COMMITTEE FEELS THE PRESIDENT/CEO HAS PERFORMED THE DUTIES AND RESPONSIBILITIES OF HIS POSITION. THIS PROCESS RESULTS IN A SUMMARY SCORE THAT IS APPLIED TO A SALARY RANGE TABLE THAT DETERMINES THE YEAR END BONUS PERCENTAGE AND ANNUAL BASE PAY INCREASE OF THE PRESIDENT/CEO. THE ENTIRE PROGRAM WAS DEVELOPED BY BAUSCHKE AND ASSOCIATES. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION'S GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS ARE NOT MADE AVAILABLE TO THE PUBLIC. FORM 990, PART IX, LINE 24E MISCELLANEOUS EXPENSE 1,342,204. MORTGAGE EXPENSE 404,582. DATA PROCESSING EXPENSE 343,438. ATM EXPENSE 249,989. FORECLOSED REAL ESTATE EXPENSE 229,108. BILL PAYER EXPENSE 159,458. EDUCATION EXPENSE 149,564. PROVISION FOR OVERDRAFT EXPENSE 87,132. SUPERVISION EXPENSE 78,789. LEAGUE DUES & OTHER EXPENSES 70,783. CASHBACK CHECKING EXPENSE 57,347. SUBSCRIPTIONS & PUBLICATIONS EXPENSE 54,777. CONSUMER CREDIT REPORT EXPENSE 49,032. LOAN RECORDING FEE EXPENSE 22,415. VIBRANT ERROR EXPENSE 20,224. FREE CHECK EXPENSE 16,311. EQUIPMENT RENTAL & MAINTENANCE EXPENSE 12,587. FINANCIAL PLANNING EXPENSE 6,816. REAL ESTATE TAX SERVICE 3,570. CASH OVER(SHORT) EXPENSE 2,930. VEHICLES IN LIQUIDATION EXPENSE 1,935. IRS TAX EXPENSE 1,011. CHEX SYSTEM/SCREENING EXPENSE 878. CHECK LOSS EXPENSE 807. I-PAY EXPENSES -8. PROPERTY CONDITION REPORT -94. DECONVERSION EXPENSE -20,065. FORM 990, PART XI, LINE 9: EQUITY ACQUIRED IN FIRST ILLINOIS CREDIT UNION MERGER 1,666,400. EQUITY ACQUIRED IN INTEGRUS CREDIT UNION MERGER 1,161,997. EQUITY ACQUIRED IN ELECTRIC ENERGY INC EMPLOYEE CREDIT UNION MERGER 244,196. EQUITY ACQUIRED IN DEKALB COUNTY CREDIT UNION MERGER 411,156. OTHER COMPREHENSIVE INCOME 389,848. FORM 990, PART XII, LINE 2C: THE ORGANIZATION'S FINANCIAL STATEMENTS ARE AUDITED ON A CONSOLIDATED BASIS BY AN INDEPENDENT ACCOUNTANT. FOR TAX YEAR 2017, THE ORGANIZATION'S FINANCIAL STATEMENTS ARE REPORTED ON A CALENDAR YEAR BASIS. YOUR INSURANCE SERVICES LLC 1900 52ND AVE MOLINE IL 61265 472114951 INSURANCE SERVICES IL -40662 332231 VIBRANT CREDIT UNION