2018-11-13T15:03:05-06:00 2017-12-31 350921680 CROWE LLP 225 West Wacker Drive Suite 2600 Chicago IL 606061224 990 2017-01-01 380703992 Arbor Financial Credit Union ARBO 2693756702 1551 South 9th Street Kalamazoo MI 490099327 Earle Shelner II VP - Finance 2018-11-13 true Nicole Bencik P00756195 3128997000 2017 2019-02-21 02:37:17Z Julie Blitchok 1551 South 9th Street Kalamazoo MI 490099327 69535740 false X www.arborfcu.org X 1935 MI THE CREDIT UNION'S OPERATIONS INCLUDE HOLDING DEPOSITS FOR AND MAKING LOANS TO INDIVIDUALS WHO WORK OR RESIDE WITHIN A SPECIFIC AREA AND GROUP IN THE STATE OF MICHIGAN. 6 6 170 9 217546 -64568 0 0 23699578 25083300 754955 2056470 749063 606352 25203596 27746122 24000 24000 0 9970338 9883945 0 0 12041494 13497182 22035832 23405127 3167764 4340995 479181965 523721267 435489370 475642572 43692595 48078695 THE CREDIT UNION'S OPERATIONS INCLUDE HOLDING DEPOSITS FOR AND MAKING LOANS TO INDIVIDUALS WHO WORK OR RESIDE WITHIN A SPECIFIC AREA AND GROUP IN THE STATE OF MICHIGAN. false false ALLOWING MEMBERS ACCESS TO CREDIT THROUGH OUR CREDIT CARD PROGRAM. ALLOWING MEMBERS DIRECT ACCESS TO THEIR CHECKING ACCOUNT AT MERCHANTS THROUGH OUR DEBIT CARD PROGRAM. ALLOWING MEMBERS ACCESS TO OVER 21,000 ATMS THROUGHOUT THE US THROUGH OUR ATM NETWORKING PROGRAM. 0 false false false false false false false true false true false false false true true true false false false false false false false false false false false true true false true false false false false false false false false false false false false true 12702 0 true 170 true true true false false false false false X 6 6 false false false false true true true true true false false false true true true true true true true false X Earle Shelner II 2695443471 1551 S 9th Street Kalamazoo MI 49009 X David Aubry Chairman 2.0 X X 0 0 0 Richard Cahow Vice-Chairman 2.0 X X 0 0 0 Arthur Parker Treasurer 2.0 X X 0 0 0 Barbara Winter Secretary 2.0 X X 0 0 0 Kimberly Rohr Director 2.0 X 0 0 0 Jeff Powless Director 2.0 X 0 0 0 Robert Goodwin Director (Partial year) 2.0 X 0 0 0 Julie Blitchok President/CEO 50.0 X 440915 0 46916 Earle Shelner II VP Finance 50.0 X 173885 0 44020 Arlene Horton VP Human Resources 50.0 X 150656 0 33013 Kenneth Leonard VP Commercial & Private Banking 50.0 X 195020 0 51397 Tamara Phelps VP Operations 50.0 X 151955 0 34842 Jeffrey Deshane VP Loan Services 50.0 X 140340 0 41635 Ryan Reffitt Director of Commercial Lending 40.0 X 174750 0 18985 Christine E Camp VP Marketing 50.0 X 133912 0 41729 1561433 0 312537 8 false true false GLAS ASSOCIATES INC 6339 STADIUM DR KALAMAZOO MI 49009 Construction 2327922 FISERV 75 REMITTANCE DRIVE DEPT 1649 CHICAGO IL 60197 CORE SYSTEM PROCESSOR 1498172 FIS PO BOX 4535 CAROL STREAM IL 60197 CREDIT CARD PROCESSOR 1005045 VANTIV 8500 GOVERNORS HILL DR SYMMES TOWNSHIP OH 45249 DEBIT CARD PROCESSOR 864221 SIGNART INC 5757 EAST CORK ST KALAMAZOO MI 49048 Signage Design & Installation 185263 11 X 0 0 0 0 0 0 0 0 INCOME ON MEMBER LOANS 522100 17009899 17009899 0 0 FEES AND CHARGES 522100 8073401 8032689 40712 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 25083300 1040950 0 0 1040950 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 11854718 30950420 11787055 30002563 67663 947857 1015520 0 0 1015520 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 MISCELLANEOUS INCOME 522100 153236 113475 39761 0 WEALTH MANAGEMENT INCOME 523930 42476 0 42476 0 WARRANTY SALES 524298 94597 0 94597 0 316043 316043 0 0 606352 27746122 25472106 217546 2056470 0 24000 0 0 1395739 0 0 0 0 5921088 489573 1523799 553746 90002 44540 0 0 0 0 0 0 0 637314 1153776 1522710 0 749452 14119 0 383879 2541414 50598 835977 126205 VISA AND OTHER MASTERCARD EXP 1258312 PROVISION FOR LOAN LOSS 1382240 LOAN SERVICING EXPENSE 1004701 ATM EXPENSES 565322 1136621 0 0 0 23405127 0 0 0 0 3608682 3522706 44892062 41030980 0 0 0 0 3872047 3852916 0 0 360506687 410578081 0 0 474291 380106 23047308 5721092 14620765 17326216 26774978 24963827 3222300 3788800 0 0 0 21210153 18277635 479181965 523721267 6036456 6817852 0 0 0 0 0 0 1754380 2114873 0 0 45750000 54750000 0 0 381948534 411959847 435489370 475642572 0 0 0 0 0 0 X 0 0 0 0 43692595 48078695 43692595 48078695 479181965 523721267 4340995 45105 0 0 0 0 X false true X true false false true X 3476809 3476809 13557077 2462347 11094730 127933 127933 0 5423852 3130812 2293040 461637 461637 17326216 MEMBER SHARES AND SAVINGS ACCOUNTS 411959847 411959847 X 27746122 0 0 0 0 0 27746122 0 0 0 27746122 23405127 0 0 0 0 0 23405127 0 0 0 23405127 Schedule D, Part IV, Line 2b Explanation of escrow agreement Arbor has an escrow custodial account set up for each of our investors. We are a service-retained organization, which collects the escrow funds, performs escrow analysis, and disburses funds to appropriate tax and/or insurance authorities. Schedule D, Part X, Line 2 FIN 48 (ASC 740) footnote THE CREDIT UNION IS EXEMPT, BY STATUTE, FROM FEDERAL 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 PURPOSE. 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. THE INTERNAL REVENUE SERVICE ("IRS") ISSUED A SERIES OF TECHNICAL ADVISE 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 INCOME TAX FILINGS ARE SUBJECT TO AUDIT BY VARIOUS TAXING AUTHORITIES AND OPEN TAX PERIODS INCLUDE 2014-2017. true SCHOLARSHIPS 21 24000 Schedule I, Part III, Column (a) Type of Grant or Assistance Scholarships are awarded to high school seniors who have been members of the credit union for at least one year and demonstrate academic achievement, community involvement and financial need. Schedule I, Part I, Line 2 Procedures for monitoring use of grant funds. THE CREDIT UNION CHOOSES SCHOLARSHIP RECIPIENTS BASED ON CERTAIN CRITERIA AND KEEPS SUPPORTING DOCUMENTS FOR THEIR DECISIONS. X true true X X X X X false true false Julie Blitchok President/CEO 296796 0 81685 0 62434 0 22329 0 24587 0 487831 0 0 0 Earle Shelner II VP Finance 145246 0 28030 0 609 0 18038 0 25982 0 217905 0 0 0 Arlene Horton VP Human Resources 124203 0 24396 0 2057 0 12016 0 20997 0 183669 0 0 0 Kenneth Leonard VP Commercial & Private Banking 150344 0 44326 0 350 0 16109 0 35288 0 246417 0 0 0 Tamara Phelps VP Operations 125003 0 26197 0 755 0 15405 0 19437 0 186797 0 0 0 Jeffrey Deshane VP Loan Services 116090 0 23696 0 554 0 15049 0 26586 0 181975 0 0 0 Ryan Reffitt Director of Commercial Lending 75000 0 99641 0 109 0 17475 0 1510 0 193735 0 0 0 Christine E Camp VP Marketing 111077 0 22361 0 474 0 8206 0 33523 0 175641 0 0 0 Schedule J, Part I, Line 1a Travel for companions Non-Taxable Travel & Food for spouse at Doeren Mayhew Conference - David Aubry Non-Taxable Travel & Food for spouse at Doeren Mayhew Conference -Joni LaPointe Schedule J, Part I, Line 4b Supplemental nonqualified retirement plan Julie Blitchok, CEO, participates in a split dollar life insurance plan. Premiums paid on behalf of the executive is treated as a loan. The outstanding loan balance as of 12/31/17 is $3,852,916. Julie Blitchok CEO Split Dollar Life Insurance Treated As Loan X 4480403 3852916 false true true 3852916 Form 990, Part I, Line 1 Description of Organization Mission: Work or reside within a specific area and group in the State of Michigan. Form 990, Part VI, Line 1a Delegate broad authority to a committee The personnel committee is the same as the full board with different leadership & has the authority to act on behalf of the board. Form 990, Part VI, Line 6 Classes of members or stockholders EVERY INDIVIDUAL THAT HAS AN ACCOUNT WITH THE CREDIT UNION IS CONSIDERED A MEMBER. Form 990, Part VI, Line 7a Members or stockholders electing members of governing body AS A CREDIT UNION, WE HAVE A MEMBERSHIP THAT HAS THE AUTHORITY TO VOTE FOR THE BOARD OF DIRECTORS ON AN ANNUAL BASIS. WE ARE REQUIRED TO HOLD AN ANNUAL MEETING, WHERE THE MEMBERSHIP CAN VOTE FOR THE BOARD OF DIRECTORS UP FOR NOMINATION. Form 990, Part VI, Line 7b Decisions requiring approval by members or stockholders THE DECISIONS ARE APPROVED AT THE ANNUAL MEETING. THEY ALSO CAN REVIEW THE MONTHLY AND YEAR TO DATE FINANCIAL STATEMENTS THAT ARE REQUIRED TO BE POSTED IN THE LOBBY. AS FOR DAY TO DAY DECISIONS, THEY DO NOT OVERSEE OR APPROVE ACTIONS. Form 990, Part VI, Line 11b Review of form 990 by governing body A COPY WILL BE PROVIDED FOR THE BOARD OF DIRECTORS TO REVIEW AT A REGULAR SCHEDULED BOARD MEETING. INDIVIDUAL COPIES WILL NOT BE HANDED OUT TO EACH BOARD MEMBER. Form 990, Part VI, Line 12c Conflict of interest policy ALL DIRECTORS AND EMPLOYEES ARE REQUIRED TO SIGN A POLICY STATEMENT ANNUALLY AND TO SUBMIT CHANGES DURING THE YEAR. If there is a conflict of interest with an employee, it is brought up through HR and noted in the file. If there is a conflict of interest with an executive it is noted with both HR and the CEO to be kept in their file, and they would no longer be permitted to sign any contracts. Form 990, Part VI, Line 15a Process to establish compensation of top management official WE UTILIZE AN OUTSIDE CONSULTANT, AS WELL AS INDUSTRY PUBLICATIONS TO SET THE RANGES OF ALL INDIVIDUALS PAID AT THE CREDIT UNION. ALL SALARY RANGES FOR ALL EMPLOYEES ARE APPROVED BY THE BOARD OF DIRECTORS AT A REGULARLY SCHEDULED MEETING. This meeting was last performed in December 2017. This process is documented in executive committee minutes. Form 990, Part VI, Line 15b Process to establish compensation of other employees WE UTILIZE AN OUTSIDE CONSULTANT, AS WELL AS INDUSTRY PUBLICATIONS TO SET THE RANGES OF ALL INDIVIDUALS PAID AT THE CREDIT UNION. ALL SALARY RANGES FOR ALL EMPLOYEES ARE APPROVED BY THE BOARD OF DIRECTORS AT A REGULARLY SCHEDULED MEETING. This meeting was last performed in December 2017. This process is documented in executive committee minutes. Form 990, Part VI, Line 19 Required documents available to the public THE CREDIT UNIONS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS ARE MADE AVAILABLE TO THE PUBLIC UPON REQUEST. Form 990, Part VIII, Line 11d Other Miscellaneous Revenue Life Insurance Income - Total Revenue: 316043, Related or Exempt Function Revenue: 316043, Unrelated Business Revenue: , Revenue Excluded from Tax Under Sections 512, 513, or 514: ; Form 990, Part XII, Line 2c There was no change in the oversight process or selection process during the tax year.