2018-11-21T09:26:00-06:00 2017-12-31 420714325 RSM US LLP 801 NICOLLET MALL SUITE 1100 MINNEAPOLIS MN 55402 990 2017-01-01 953442691 PREMIER AMERICA CREDIT UNION PREM 8187724021 19867 PRAIRIE STREET CHATSWORTH CA 91311 BRAD CUNNINGHAM SVP/CFO 8187724021 2018-11-21 1 GERALD B KISSELL P00092658 6123324300 108.171.131.188 2018-11-21 09:24:05 CS P BAAA55F19712D57DA335EB0D2886131656817A04 C0F43978DBA0C0105C9EC865D2B1B55C6AA9D490 2017 2019-02-21 02:37:17Z RODOLFO J PEREIRA 19867 PRAIRIE STREET CHATSWORTH CA 91311 87157037 0 1526 X WWW.PREMIERAMERICA.COM X 1957 CA A COOPERATIVE ORGANIZED FOR THE PURPOSE OF PROMOTING THRIFT AND SAVINGS AMONGST ITS MEMBERS. 9 9 396 14 916242 -51353 0 0 77662192 80701656 5452204 5992832 265 207319 83114661 86901807 81137 125764 11121642 13170092 27295602 28502688 0 0 0 22839149 23699411 61337530 65497955 21777131 21403852 2289454177 2467069812 2056875946 2213463521 232578231 253606291 X A COOPERATIVE ORGANIZED FOR THE PURPOSE OF PROMOTING THRIFT AND SAVINGS AMONGST ITS MEMBERS, CREATING A SOURCE OF CREDIT FOR THEM AT RATES OF INTEREST SET BY THE BOARD OF DIRECTORS, AND PROVIDING AN OPPORTUNITY FOR THEM TO USE AND CONTROL THEIR OWN MONEY ON A DEMOCRATIC BASIS IN ORDER TO IMPROVE THEIR ECONOMIC AND SOCIAL CONDITIONS. AS A COOPERATIVE, PREMIER AMERICA CREDIT UNION CONDUCTS ITS BUSINESS FOR THE MUTUAL BENEFIT AND GENERAL WELFARE OF ITS MEMBERS WITH THE EARNINGS, SAVINGS, BENEFITS, OR SERVICES OF THE CREDIT UNION BEING DISTRIBUTED TO ITS MEMBERS AS PATRONS. 0 0 THE CREDIT UNION ENCOURAGED AND PROMOTED SAVINGS AND ACQUIRED 10,547 NEW MEMBERS IN 2017. TOTAL MEMBERSHIP STOOD AT 103,878 AS OF DECEMBER 31, 2017 WHILE DEPOSIT BALANCES GREW BY $153 MILLION COMPARED TO THE PREVIOUS YEAR, AND THE ORGANIZATION CONTINUED TO PAY MEMBERS FAVORABLE DIVIDEND RATES ON THEIR SAVINGS. THE CREDIT UNION MET MORTGAGE NEEDS OF FIRST TIME HOME BUYERS AND REFINANCING NEEDS OF EXISTING HOMEOWNERS, ALLOWING THEM TO TAKE ADVANTAGE OF LOWER INTEREST RATES. LOWER INTEREST RATES WERE MADE POSSIBLE BY BEING A FNMA MORTGAGE LOAN SELLER AND SERVICER. DURING THE YEAR, THE ORGANIZATION GRANTED 617 REAL ESTATE LOANS AND HOME EQUITY LINES OF CREDIT TOTALING $373 MILLION TO ITS MEMBERS. THE CREDIT UNION IS COMMITTED TO HELPING STRENGTHEN THE COMMUNITIES THAT ITS MEMBERS CALL HOME. IN 2017, THE CREDIT UNION PROVIDED EDUCATIONAL INFORMATION ON SAVINGS, CONSUMER LOANS AND RETIREMENT PRODUCTS AND SERVICES, AND HOSTED 26 WORKSHOPS ATTENDED BY 555 MEMBERS, ON SUCH TOPICS AS HOME BUYING, CAR BUYING, TRUST & ESTATE PLANNING, UNDERSTANDING SOCIAL SECURITY, AND LONG TERM CARE. CREDIT UNION EMPLOYEES ACTIVELY SUPPORTED COMMUNITY INVOLVEMENT BY PARTICIPATING IN LOCAL EVENTS THAT PROMOTED CHARITABLE CAUSES SUCH AS THE AMERICAN CANCER SOCIETY, FOOD SHARE OF VENTURA COUNTY, HOSPICE OF THE CONEJO, SPECIAL OLYMPICS, CHILDRENS MIRACLE NETWORK OF HOSPITALS, TO NAME A FEW. IN 2017, THE CREDIT UNION SPONSORED 41 SUCH COMMUNITY EVENTS THAT ENCOMPASSED ALMOST 60,000 ATTENDEES. 0 0 1 0 0 0 0 0 0 1 0 0 0 1 1 1 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 0 0 1 57126 0 1 396 1 1 1 0 0 0 0 0 X 9 9 0 0 0 0 1 1 1 1 1 0 1 1 1 1 1 1 1 1 1 1 0 CA X LINDA MARQUEZ 8187724021 19867 PRAIRIE STREET CHATSWORTH CA 91311 JOHN M MERLO PRESIDENT & CEO (RETIRED 4/30/17) 40.00 X X 707110 0 28279 LARRY COLSON CHAIR 1.00 X X 950 0 0 WILLIAM COLE VICE CHAIR 1.00 X X 935 0 0 GARY HOLMEN SECRETARY/TREASURER 1.00 X X 1454 0 0 JOHN DE VERE JR DIRECTOR 1.00 X 0 0 0 KURT FORD DIRECTOR 1.00 X 0 0 0 ERIC GOLDNER DIRECTOR 1.00 X 39 0 0 S LAWRENCE HOKE DIRECTOR (RETIRED 9/30/17) 1.00 X 0 0 0 LARRY MARTIN DIRECTOR 1.00 X 1117 0 0 ROGER LUBIG DIRECTOR 1.00 X 1901 0 0 JOANN KLONOWSKI DIRECTOR (EFFECTIVE 10/1/17) 1.00 X 0 0 0 RODOLFO PEREIRA PRESIDENT & CEO 40.00 X 409383 0 27151 W BRAD CUNNINGHAM SENIOR VP, CFO 40.00 X 379599 0 272875 MARJORIE MCNAUGHT SENIOR VP, LOAN ADMINISTRATION 40.00 X 584932 0 1258312 DONNA MCNEELY SENIOR VP, MEMBER EXPERIENCE 40.00 X 380706 0 223356 TONI DANIELS SENIOR VP, OPERATIONS ADMINISTRATION 40.00 X 337994 0 195260 GLEN CHRZAS SENIOR VP, SYSTEMS & TECHNOLOGY 40.00 X 327227 0 164969 MARIANNE BLITSCH DIRECTOR, COMMUNITY RELATIONS 40.00 X 284886 0 422247 THOMAS NEUHAUS DIRECTOR OF COMMUNITY RELATIONS 40.00 X 224663 0 315664 JAMES GLYNN DIRECTOR FOR COMMUNITY RELATIONS 40.00 X 180011 0 248324 KELLY KARREN FINANCIAL ADVISOR 40.00 X 214641 0 25588 JASON DEREK LEE FINANCIAL ADVISOR 40.00 X 189926 0 26358 4227474 0 3208383 37 0 1 0 NTR CONSTRUCTION CO 7500 TOPANGA CANYON BLVD 2ND FLR CANOGA PARK CA 91303 OFFICE AND BRANCH REMODELS 1148051 MENEMSHA DEVELOPMENT GROUP INC DBA MENE 20521 EARL ST TORRENCE CA 90503 HOUSTON BRANCH BUILD OUT 489627 FINANCIAL STATEMENT SERVICE INC 3300 SOUTH FAIRVIEW ST SANTA ANA CA 92704 STATEMENT PRINTING/MAILING 468006 STARNET DATA DESIGN INC 2659 TOWNSGATE RD STE 227 WESTLAKE CA 91361 PHONE/IT EQUIPMENT AND SERVICE/MAINTENAN 405996 CAM SERVICES 5664 SELMARAINE DR CULVER CITY CA 90230 CLEANING/JANITORIAL SERVICES 373299 26 INCOME FROM MEMBER LOANS 522100 68299132 68299132 SERVICE CHARGES & OTHER FEES 522100 5229168 4991219 237949 INTERCHANGE INCOME 522100 4582577 4582577 INVESTMENT BROKERAGE COMMISSIONS 523000 1861772 1861772 729007 50714 678293 80701656 5733626 5733626 361842 255230 106612 106612 106612 259206 0 259206 259206 259206 GAIN ON SERP 900099 100707 100707 100707 86901807 79785414 916242 6200151 125764 13170092 4081862 18876182 2264824 1747698 1532122 375719 351352 126016 1896528 6989785 3501698 201443 2649131 319365 10000 329982 11047 1956478 212536 LOAN PROCESSING EXPENSE 2712417 CORE DEPOSIT PREMIUM AM 1007117 PROVISION FOR LOAN LOSS 200000 GOODWILL AMORTIZATION 122960 725837 65497955 265953759 262818956 4508332 5609654 1710185671 1957498064 2856929 3281766 32197423 16507035 16813187 15690388 223732400 169331000 29428657 15041516 7697056 6566980 28278186 31231488 2289454177 2467069812 18165791 21482913 2038710155 2191980608 2056875946 2213463521 X 0 0 0 0 232578231 253606291 232578231 253606291 2289454177 2467069812 21403852 -375792 0 X 0 1 X 1 0 10000 10000 10000 1 CALIFORNIA NEVADA CREDIT UNION PAC 1201 K ST SUITE 105C SACRAMENTO CA 95814 942329967 10000 PART I-A, LINE 1: THE CREDIT UNION MAKES CONTRIBUTIONS TO SUPPORT CANDIDATES OR POLITICAL ACTION COMMITTEES PROMOTING CREDIT UNION CAUSES. 3731592 3731592 14895061 7252945 7642116 5727029 3525459 2201570 7843741 5728631 2115110 15690388 MEMBERS' SHARES 2191980608 2191980608 X 86801100 0 86801100 100707 100707 86901807 65397248 -100707 -100707 65497955 0 65497955 PART X, LINE 2: AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2017 AND 2016, MANAGEMENT HAS DETERMINED THAT THERE ARE NO MATERIAL UNCERTAIN TAX POSITIONS REQUIRING RECOGNITION IN THE FINANCIAL STATEMENTS. PART XI, LINE 4B - OTHER ADJUSTMENTS: SERP MARKET GAIN RECLASSIED TO REVENUE 100,707. PART XII, LINE 2D - OTHER ADJUSTMENTS: SERP MARKET GAIN RECLASSIED TO REVENUE -100,707. 1 CHILDREN'S MIRACLE NETWORK HOSPITALS 205 WEST 700 SOUTH SALT LAKE CITY UT 84101 870387205 501(C)(3) 15500 GENERAL SUPPORT VENTURA COUNTY COUNCIL BOYS SCOUT OF AMERICA 509 E DAILY DRIVE CAMARILLO CA 93010 951716783 501(C)(3) 7500 GENERAL SUPPORT CASA PACIFICA 1722 LEWIS RD CAMARILLO CA 93012 770195022 501(C)(3) 7500 GENERAL SUPPORT NORTHRIDGE HOSPITAL FOUNDATION-CENTER FOR ASSAULT TREATMENT SERVICES 18300 ROSCOE BLVD NORTHRIDGE CA 91328 237444901 501(C)(3) 5848 GENERAL SUPPORT NATIONAL CREDIT UNION FOUNDATION INC 5710 MINERAL POINT ROAD MADISON WI 53705 391383650 501(C)(3) 5000 GENERAL DISASTER RELIEF FUND PREMIER AMERICA CREDIT UNION MAKING A DIFFERENCE FOUNDATION 19867 PRAIRIE ST CHATSWORTH CA 91311 820914788 501(C)(3) 5972 2017 CALIFORNIA WILDFIRES AND HURRICANE HARVEY RELIEF MATCHING FUNDS ADVENTURE BROTHERS LLC DBA OXNARD GUERREROS FC C/O TY OTTO 110 S A ST OXNARD CA 93030 814639068 5000 COMMUNITY SOCCER TEAM SPONSORSHIPS 6 1 PART I, LINE 2: GRANTS ARE GIVEN TO ORGANIZATIONS BASED ON CREDIT UNION INDUSTRY RELATIONSHIPS AND COMMUNITY RELEVANCE IN THE FORM OF CASH AND EVENT SPONSORSHIPS. UNDER THE PAY IT FORWARD PROGRAM OF THE CREDIT UNION, CASH DONATIONS OF $250 EACH ARE GIVEN TO LOCAL NON-PROFIT CHARITABLE ORGANIZATIONS NOMINATED BY CREDIT UNION MEMBERS. GRANTS EXCEEDING $250 ARE GIVEN ONLY TO WELL-KNOWN ESTABLISHED CHARITABLE ORGANIZATIONS WHOSE ACTIVITIES ARE COMMON KNOWLEDGE AND RECOGNIZED IN THE COMMUNITY SUCH AS THE AMERICAN CANCER SOCIETY, CHILDREN'S MIRACLE NETWORK HOSPITALS, HABITAT FOR HUMANITY, GIRLS AND BOYS SCOUTS OF AMERICA LOCAL TROOPS, AMERICAN RED CROSS, AND OTHER SIMILAR ORGANIZATIONS. X X X 1 1 X X X 0 1 0 JOHN M MERLO PRESIDENT & CEO (RETIRED 4/30/17) 369330 0 280471 0 57309 0 14742 0 13942 0 735794 0 0 0 RODOLFO PEREIRA PRESIDENT & CEO 405730 0 0 0 3653 0 0 0 27403 0 436786 0 0 0 W BRAD CUNNINGHAM SENIOR VP, CFO 284166 0 95433 0 0 0 267187 0 6066 0 652852 0 0 0 MARJORIE MCNAUGHT SENIOR VP, LOAN ADMINISTRATION 413775 0 148677 0 22480 0 1243659 0 15032 0 1843623 0 0 0 DONNA MCNEELY SENIOR VP, MEMBER EXPERIENCE 285484 0 95222 0 0 0 223356 0 378 0 604440 0 0 0 TONI DANIELS SENIOR VP, OPERATIONS ADMINISTRATION 253328 0 84666 0 0 0 182748 0 12865 0 533607 0 0 0 GLEN CHRZAS SENIOR VP, SYSTEMS & TECHNOLOGY 244053 0 83174 0 0 0 147339 0 17966 0 492532 0 0 0 MARIANNE BLITSCH DIRECTOR, COMMUNITY RELATIONS 284886 0 0 0 0 0 409718 0 12893 0 707497 0 0 0 THOMAS NEUHAUS DIRECTOR OF COMMUNITY RELATIONS 224663 0 0 0 0 0 288103 0 27856 0 540622 0 0 0 JAMES GLYNN DIRECTOR FOR COMMUNITY RELATIONS 180011 0 0 0 0 0 219210 0 29372 0 428593 0 0 0 KELLY KARREN FINANCIAL ADVISOR 214641 0 0 0 0 0 13060 0 12620 0 240321 0 0 0 JASON DEREK LEE FINANCIAL ADVISOR 189926 0 0 0 0 0 8727 0 17722 0 216375 0 0 0 PART I, LINE 1A FIRST CLASS TRAVEL - THE CREDIT UNION WILL PAY FOR FIRST CLASS TRAVEL ONLY WHEN FLYING TIME FOR A PARTICULAR FLIGHT IS FIVE HOURS OR MORE. TRAVEL FOR COMPANIONS - THE CREDIT UNION WILL PAY FOR THE SPOUSE OR ONE COMPANION'S PLANE FARE FOR OUT OF TOWN OFFICIAL TRAVELS (CONFERENCES), HOTEL ACCOMODATIONS (SHARED ROOM) AND MEALS. A 1099-MISC IS FILED WHEN THE TOTAL EXPENSES INCURRED FOR THE COMPANION REACHES THE REPORTABLE AMOUNT. TAX INDEMNIFICATION AND GROSS UP PAYMENTS - THE CREDIT UNION GROSSES UP FOR TAX ON CERTAIN NON-CASH BENEFITS REPORTED IN THE RECIPIENT'S W-2. PART I, LINE 4B THE FOLLOWING INDIVIDUALS PARTICIPATED IN A NONQUALIFIED RETIREMENT PLAN: MARJORIE MCNAUGHT W. BRAD CUNNINGHAM TONI DANIELS DONNA MCNEELY GLEN CHRZAS MARIANNE BLITSCH THOMAS NEUHAUS JAMES GLYNN 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 THE DRAFT FORM 990 PREPARED BY THE TAX ACCOUNTANT IS REVIEWED BY SENIOR MANAGEMENT IN THE FOLLOWING ORDER: VP/CONTROLLER, SVP/CHIEF FINANCIAL OFFICER, PRESIDENT AND CHIEF EXECUTIVE OFFICER, AND FINALLY, THE BOARD OF DIRECTORS. QUESTIONS, COMMENTS AND CORRECTIONS ARE ADDRESSED AT EACH STAGE OF THE REVIEW BEFORE THE FINAL REPORT IS FILED BY THE TAX PREPARER FOR THE CREDIT UNION. FORM 990, PART VI, SECTION B, LINE 12C THE CONFLICT OF INTEREST POLICY IS CONTAINED IN THE CODE OF RESPONSIBILITY AND ETHICS THAT EACH EMPLOYEE IS REQUIRED, ANNUALLY, TO ACKNOWLEDGE. VIA WRITTEN POLICY, ALL EMPLOYEES AND OFFICIALS ARE MADE AWARE OF THE CREDIT UNION'S COMPLIANCE REQUIREMENTS INCLUDING, BUT NOT LIMITED TO, THE CONFLICTS OF INTEREST POLICY. STANDARD CREDIT UNION PROCEDURES AND REQUIREMENTS ARE CONSISTENTLY APPLIED TO ANY BUSINESS TRANSACTION BY DIRECTORS, OFFICERS, AND EMPLOYEES. IF A DECISION IS REQUIRED REGARDING A BUSINESS TRANSACTION THAT COULD POTENTIALLY RISE TO A PERCEPTION OF A CONFLICT OF INTEREST, THE INVOLVED PARTY WILL RECUSE HIM OR HERSELF FROM DISCUSSION AND REVIEW OF THE TRANSACTION. TRANSACTIONS INVOLVING INDIVIDUAL ACCOUNTS ARE MONITORED BY THE INTERNAL AUDITOR ON A REGULAR BASIS. FORM 990, PART VI, SECTION B, LINE 15 EXTENSIVE ANNUAL SURVEYS ARE CONDUCTED FOR KEY POSITIONS IN THE CREDIT UNION INCLUDING, BUT NOT LIMITED TO, TOP MANAGEMENT AND KEY EMPLOYEES. THESE SURVEYS ARE PROVIDED BY PROFESSIONAL COMPENSATION ANALYSTS WHO WORK DIRECTLY WITH DATA WITHIN THE FINANCIAL INDUSTRY FIELD. THESE SURVEYS PROVIDE TOTAL COMPENSATION INFORMATION THAT RANGES FROM BROAD MACRO ISSUES TO SPECIFIC ELEMENTS OF TOTAL COMPENSATION STRUCTURES. FORM 990, PART VI, SECTION C, LINE 19 UNAUDITED FINANCIAL STATEMENTS ARE POSTED MONTHLY IN ALL BRANCHES. THE ANNUAL REPORT CONTAINING AUDITED FINANCIAL STATEMENTS IS AVAILABLE AT THE CREDIT UNION'S WEBSITE AND DISTRIBUTED TO ATTENDING MEMBERS DURING ANNUAL MEETINGS. GOVERNING DOCUMENTS AND CONFLICT OF INTEREST POLICY ARE AVAILABLE UPON REQUEST FOR THE SAME PERIOD OF DISCLOSURE AS SET FORTH IN SECTION 6104(D).