2018-05-08T14:00:54-05:00 2017-12-31 350921680 CROWE HORWATH LLP 400 Capitol Mall Suite 1400 Sacramento CA 958144434 990 2017-01-01 941179501 Safe Credit Union SAFE 9169797233 2295 Iron Point Rd Suite 100 Folsom CA 956308765 Chris Harris EVP/CFO 2018-05-08 true Nicole Bencik P00756195 9164411000 2017 2022-09-23 18:48:47Z David F Roughton 2295 Iron Point Rd Suite 100 Folsom CA 956308765 124805240 false X www.safecu.org X 1940 CA Safe Credit Union's mission is to help members improve their financial well-being, provide excellent service, and ensure a financially sound credit union. 13 13 795 16 928727 -443018 0 0 103093185 115461167 8645722 6015653 2653848 3328420 114392755 124805240 297329 362107 6773710 7728422 51852172 53662669 0 0 0 43928324 42845248 102851535 104598446 11541220 20206794 2502656736 2699113126 2273488975 2451136024 229167761 247977102 Safe Credit Union's mission is to help members improve their financial well-being, provide excellent service, and ensure a financially sound credit union. false false SAFE HAS SERVED THE SACRAMENTO AREA SINCE 1940, AND NOW HAS MEMBERSHIP SPANNING 13 COUNTIES IN NORTHERN CALIFORNIA. SAFE HAS 22 BRANCHES IN FOUR OF THESE COUNTIES: SACRAMENTO, PLACER, YOLO AND CONTRA COSTA. SAFE SERVES APPROXIMATELY 219,000 MEMBERS. SAFE OFFERS DEPOSITORY, LENDING AND OTHER FINANCIAL PRODUCTS AND SERVICES TO HELP ITS MEMBERS IMPROVE THEIR FINANCIAL WELL-BEING. AS A NONPROFIT, SAFE IS ABLE TO DELIVER BENEFITS TO ITS MEMBERSHIP THROUGH LOWER LOAN RATES AND HIGHER DEPOSIT RATES. IN ADDITION, SAFE MEMBERS ENJOY THE FOLLOWING BENEFITS: ACCESS TO 25,000 ATMS NATIONWIDE, ACCESS TO 2,500 SHARED BRANCH LOCATIONS NATIONWIDE, ABILITY TO PERFORM POINT-OF-SALE (POS) TRANSACTIONS, FREE ONLINE BANKING AND BILL PAY, FINANCIAL MANAGEMENT TOOLS AND EARLY PAYDAY WITH DIRECT DEPOSIT. SAFE OFFERS A VARIETY OF DEPOSIT PRODUCTS INCLUDING SAVINGS, CHECKING, MONEY MARKET, CERTIFICATE, RETIREMENT, BUSINESS , HOLIDAY CLUB AND YOUTH ACCOUNTS. DEPOSITS ARE FEDERALLY INSURED TO AT LEAST $250,000 AND BACKED BY THE FULL FAITH AND CREDIT OF THE UNITED STATES GOVERNMENT. SAFE'S DEPOSIT RATES ARE EVERY COMPETITIVE WITH THE MARKET AND ARE TYPICALLY HIGHER THAN BANKS. SAFE FEATURES BOTH LOW AND NO-COST CHECKING PRODUCTS AS WELL AS THOSE WITH HIGHER DIVIDEND RATES. MEMBERS CAN TRANSFER FUNDS FROM ONE DEPOSIT PRODUCT OR ACCOUNT TO ANOTHER QUICKLY AND SEAMLESSLY THROUGH OUR ONLINE, MOBILE, AND TELEPHONE BANKING SYSTEMS. SAFE OFFERS A VARIETY OF LOW-RATE PRODUCTS TO HELP MEMBERS WITH THEIR FINANCING NEEDS. AVAILABLE LOAN PRODUCTS INCLUDE AUTO LOANS, REAL ESTATE MORTGAGE LOANS, HOME EQUITY LINES OF CREDIT, HOME IMPROVEMENT LOANS, VISA CREDIT CARDS, SMALL BUSINESS LOANS, STUDENT LOANS, AND OTHER SECURED AND UNSECURED LOANS. 0 false false true false false false false true false true true false true true true true false false false false false false false false false false true true true false false false false false false false false false false false false false false true 38400 0 true 795 true true true false false false false false X 13 13 false false false false true true true true true false true true true true true true true true true true false CA X Chris Harris 9169797233 2295 Iron Point Rd Suite 100 Folsom CA 95630 Terrrance Tremelling Chairperson 15.0 X X 3314 0 0 Phillip Meserve 1st Vice Chairperson 13.0 X X 2874 0 0 James Hopp 2nd Vice Chairperson 7.0 X X 1432 0 0 Kathern Gaskins Treasurer 8.0 X X 3889 0 0 James Jefferson Secretary 12.0 X X 3606 0 0 Ronald Seaman Director 8.0 X 4079 0 0 Herb Long Director 12.0 X 0 0 0 Sarabjit Dahyia Director 2.0 X 0 0 0 Alice Perez Director 1.0 X 624 0 0 Rick Blumenfeld Director 5.0 X 0 0 0 Dylan Gottfried Director 4.0 X 0 0 0 Robert Logue Director 10.0 X 1206 0 0 John Quattrin Director 12.0 X 0 0 0 David Roughton President/CEO 40.0 X 704000 0 40180 Chris Harris SVP/CFO 40.0 X 419886 0 30696 James Allen SVP/COO 40.0 X 425476 0 24368 Faye Nabhani SVP/CCO 40.0 X 375528 0 28808 David Pope SVP, IT & Facilities 40.0 X 433201 0 32334 Brandi Schaefer Sr. Mortgage Officer 40.0 X 463377 0 24050 William Erb Mortgage Sales Team Lead 40.0 X 387464 0 40183 Ken Getz VP Business Development 40.0 X 298659 0 39007 Jeffrey Impey SAFE Wealth Advisor 40.0 X 281911 0 37175 Virginia Wade SVP, HR 40.0 X 270758 0 25333 4081284 0 322134 85 false true false DIGITAL INSIGHT PO BOX 740641 Los Angeles CA 90074 Online Banking Services 2050981 KIMMEL CONSTRUCTION 10 Main Ave Sacramento CA 95838 Construction 1647820 NCR CORPORATION 14181 Collections Ctr Drive Chicago IL 60693 ATM & Online Banking Services 1336929 RUNYON SALTZMAN AND EINHORN INC 2020 L ST Sacramento CA 95811 Public Relations/Marketing 1164834 INFOIMAGE 141 JEFFERSON DRIVE Menlo Park CA 94025 Statement Services 998000 64 X 0 Interest on loans to members 522100 68861790 68861790 0 0 ATM and debit card fees 522100 18417459 17964613 452846 0 Account service fees 522100 15168696 15168696 0 0 Loan fees 522100 5115911 5115911 0 0 Net gain on sale of loans 522100 3926658 3926658 0 0 3970653 3944767 25886 0 115461167 6015653 0 0 6015653 0 0 0 0 0 0 0 0 358227 0 0 0 358227 0 358227 0 0 358227 0 0 0 0 0 0 0 0 0 0 Other non-interest income 522100 2520198 1642413 0 877785 Shared Branch Fees 522100 449995 0 449995 0 0 0 0 0 2970193 124805240 116624848 928727 7251665 352107 10000 7728422 2535501 38081347 3087609 6297524 3660688 299695 240004 2666359 0 0 0 2879413 4965347 11577409 4217627 423171 472929 221320 4274706 228394 Provision for Loan Losses 5097871 Loan Servicing Expense 3240366 2040637 0 0 0 104598446 0 0 0 140397188 117714216 0 0 0 0 0 0 1788043671 2172085717 0 0 93462416 40198113 52488356 53264303 0 390637188 202024443 0 14255849 14061877 116834484 139962570 2502656736 2699113126 25958834 32336480 0 0 0 3320000 3483000 40000000 0 2244210141 2375316544 2273488975 2451136024 0 0 0 X 0 0 229167761 247977102 229167761 247977102 2502656736 2699113126 20206794 -1397453 0 X false true X true false 14595 14595 14595 true Schedule C, Part I-A, Line 1 Description of Political Activities SAFE IS A COMMUNITY-BASED CREDIT UNION THAT HAS SIGNIFICANT INTERFACE WITH THE LOCAL, STATE, AND FEDERAL GOVERNMENT OFFICIALS AND ENTITIES. WE PARTICIPATE IN THE POLITICAL PROCESS SO WE HAVE AN OPPORTUNITY TO PROVIDE INPUT ON LEGISLATION THAT AFFECTS CREDIT UNIONS. true 735579274 99909751 106249207 729239818 true X 0 10022969 10022969 0 45959938 11193542 34766396 0 3359578 3069134 290444 0 34119931 25935437 8184494 0 0 0 0 53264303 OTHER INVESTMENTS AVAILABLE FOR SALES SECURITIES Available for Sale Securities Other Investments Available for Sale Securities Other Investments Available for Sale Securities 191185672 F Other Investments 10838771 F 202024443 Loans held for sale Accrued interest receivable Share insurance deposits Other assets Loans held for sale 29072364 Accrued interest receivable 5567160 Share insurance deposits 23245367 Other assets 82077679 139962570 Member share accounts Public unit shares Member share accounts Public unit shares Member share accounts 2350250926 Public unit shares 25065618 2375316544 X 123407787 -1397453 0 -1397453 124805240 0 0 124805240 104598446 0 0 104598446 0 0 104598446 Schedule D, Part IV, Line 1b Agent, trustee, custodian, or other intermediary arrangement The credit union serves as custodian for assets which are not included on the balance sheet. Schedule D, Part IV, Line 2b Explanation of escrow agreement The credit union holds funds in escrow to pay real estate taxes and insurance on behalf of its mortgage loan members. Schedule D, Part X, Line 2 FIN 48 (ASC 740) footnote The Credit Union is exempt, by statute, from federal income taxes. 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 purposes. However, the Credit Union is subject to unrelated business income tax. FASB Codification Topic 740, Income Taxes, provides guidance for how uncertain tax positions should be recognized, measured, disclosed and presented in the financial statements. This requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Credit Union's tax returns to determine whether the tax positions are more likely than not to be sustained "when challenged" or "when examined" by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax expense and liability in the current year. For the years ended December 31, 2017 and 2016, management has determined that there are no material uncertain tax positions. true Aerospace Museum of California 3200 Freedom Park Dr McClellan CA 95662 942831253 501(c)(3) 25000 Sponsorship and support of community-related programs and fundraisers Education Foundation for Aerospace PO Box 2326 Citrus Heights CA 95610 431988851 501(c)(3) 10000 Support for AFA Wings of Hope scholarships and educational events Align Capital Region 1410 Ethan Way Sacramento CA 95825 680287387 501(c)(3) 25000 Support for the Capital Region's efforts to align people, programs, and resources to improve the community. American Heart Association PO Box 50085 Prescott AZ 86304 135613797 501(c)(3) 25000 Support for Heart Stroke Ball and distribution of CPR kits to five local schools Folsom Economic Development Corporation 200 Wool Street Folsom CA 95630 680377492 501(c)(3) 10000 Support for the economic development within the City of Folsom Impact Foundry 2031 K Street Sacramento CA 95811 680173440 501(c)(3) 6000 Support for What IF conference KVIE 2030 W El Camino Ave Sacramento CA 95833 941421463 501(c)(3) 32500 Annual sponsorship of View Finder event and educational television programming support Mercy Foundation 3400 Data Drive Rancho Cordova CA 95670 237072762 501(c)(3) 10912 Support for the memory care wing of the Mercy McMahon Terrace Redwood Credit Union 3033 Clevand Ave Santa Rosa CA 95403 941244186 501(c)(14) 20000 Support for fire victims in Northern California communities Sacramento County Office of Education PO Box 269003 Sacramento CA 95826 946002536 Sacramento County 11000 Support of local high school scholarships Serotonin Surge Charities 1955 Cowell Blvd Davis CA 95618 680411254 501(c)(3) 12500 Sponsorship for Spring Surge event and medical clinics in Sacramento Sutter Medical Center Foundation 2800 L Street Sacramento CA 95816 942788906 501(c)(3) 12000 Support of foundation and Sophie's Place program The First Tee of Greater Sacramento 3649 Fulton Ave Sacramento CA 95821 680023502 501(c)(3) 10000 Support for program which teaches children the principles/values of life through golf UC Davis Medical School 4900 Broadway Ste 115 Sacramento CA 95820 946036494 501(c)(3) 40000 Sponsorship of UC Davis medical student scholarships, mini-medical school, and palliative care fellowship 13 1 STUDENT SCHOLARSHIPS 10 10000 Schedule I, Part I, Line 2 Procedures for monitoring use of grant funds. Community donations and contributions are reviewed and approved by SAFE's executive management prior to disbursement. All donations and contributions are reported to Safe's board of directors on a monthly basis for their review and approval. X X true true X X X false true false David Roughton President/CEO 440585 0 1704 0 261711 0 21400 0 18780 0 744180 0 0 0 Chris Harris SVP/CFO 300063 0 44822 0 75001 0 21312 0 9384 0 450582 0 0 0 James Allen SVP/COO 215477 0 114165 0 95834 0 21304 0 3064 0 449844 0 0 0 Faye Nabhani SVP/CCO 253795 0 18400 0 103333 0 14125 0 14683 0 404336 0 0 0 David Pope SVP, IT & Facilities 165358 0 122641 0 145202 0 20634 0 11700 0 465535 0 0 0 Brandi Schaefer Sr. Mortgage Officer 461982 0 1395 0 0 0 21042 0 3008 0 487427 0 0 0 William Erb Mortgage Sales Team Lead 386464 0 1000 0 0 0 21400 0 18783 0 427647 0 0 0 Ken Getz VP Business Development 183609 0 115050 0 0 0 21098 0 17909 0 337666 0 0 0 Jeffrey Impey SAFE Wealth Advisor 280911 0 1000 0 0 0 23114 0 14061 0 319086 0 0 0 Virginia Wade SVP, HR 198615 0 28209 0 43934 0 17954 0 7379 0 296091 0 0 0 Schedule J, Part I, Line 1b POLICY ON REIMBURSEMENT THE BUSINESS PURPOSE OF THIS MEMBERSHIP IS TO FACILITATE EVENTS FOR THE CREDIT UNION'S CEO AND BUSINESS ASSOCIATES. MEMBERSHIP DUES ARE INVOICED DIRECTLY TO SAFE ON A MONTHLY BASIS AND APPROVED IN ACCORDANCE WITH COMPANY EXPENSE POLICIES. EXPENSES FOR TRAVEL COMPANIONS OF THE BOARD OF DIRECTORS ARE SUBJECT TO THE SAME EXPENSE REIMBURSEMENT POLICY AS IS THE BOARD AND ORGANIZATION'S EMPLOYEES. Schedule J, Part I, Line 1a Travel for companions Benefits to interested persons includes travel-related expenses for the spouses of the Board Directors who are attending credit union and financial services industry conferences or events. The following directors received this benefit and were issued a 1099-Misc: 1. Ronald Seaman - $4,079 2. Phillip Meserve - $2,874 3. Terrance Tremelling - $3,314 4. Kathern Gaskins - $3,889 5. James Jefferson - $3,606 6. James Hopp - $1,432 7. Robert Logue - $1,206 8. Alice Perez - $624 Schedule J, Part I, Line 1a Health or social club dues or initiation fees SAFE pays the membership dues to a local country club for its CEO for business development. This amount was not treated as taxable income. Schedule J, Part I, Line 4b Supplemental nonqualified retirement plan 1. The credit union's President/CEO, David Roughton, has a SERP in which the credit union pays a retirement benefit to the executive if certain requirements are met. The retirement benefit is treated as annual compensation, which is subject to income tax and is included in Other Reportable Compensation in Schedule J, Part II. The annual amount paid in 2017 is $243,510. 2. The credit union's SVP/CFO, Chris Harris, has a SERP in which the credit union pays a retirement benefit to the executive if certain requirements are met. The retirement benefit is treated as annual compensation, which is subject to income tax and is included in Other Reportable Compensation in Schedule J, Part II. The annual amount paid in 2017 is $75,001. 3. The credit union's SVP/IT & Facilities, David Pope, has a SERP in which the credit union pays a retirement benefit to the executive if certain requirements are met. The retirement benefit is treated as annual compensation, which is subject to income tax and is included in Other Reportable Compensation in Schedule J, Part II. The annual amount paid in 2017 is $145,202. 4. The credit union's SVP/CCO, Faye Nabhani, has a SERP in which the credit union pays a retirement benefit to the executive if certain requirements are met. The retirement benefit is treated as annual compensation, which is subject to income tax and is included in Other Reportable Compensation in Schedule J, Part II. The annual amount paid in 2017 is $103,333. 5. The credit union's SVP, HR, Virginia Wade, has a SERP in which the credit union pays a retirement benefit to the executive if certain requirements are met. The retirement benefit is treated as annual compensation, which is subject to income tax and is included in Other Reportable Compensation in Schedule J, Part II. The annual amount paid in 2017 is $43,934. 6. The credit union's SVP, COO, James Allen, has a SERP in which the credit union pays a retirement benefit to the executive if certain requirements are met. The retirement benefit is treated as annual compensation, which is subject to income tax and is included in Other Reportable Compensation in Schedule J, Part II. The annual amount paid in 2017 is $95,834. Form 990, Part III, Line 4d OTHER PROGRAM SERVICES FINANCIAL PLANNING SERVICES, INSURANCE PRODUCTS AND THE PARTICIPATION IN MANY COMMUNITY-RELATED EVENTS AND SUPPORT OF NON-PROFIT ORGANIZATIONS. Form 990, Part VI, Line 6 Classes of members or stockholders 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 on deposits. Form 990, Part VI, Line 7a Members or stockholders electing members of governing body 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, Line 7b Decisions requiring approval by members or stockholders 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 and as outlined in the bylaws. Form 990, Part VI, Line 11b Review of form 990 by governing body Preparation of the Form 990 is coordinated through the company's Finance department and tax preparer. Information is requested from and gathered by several functional areas and executive management to assist in the completion of the Form. Throughout the process, questions are discussed with the tax preparer and resolutions are incorporated into the return as appropriate. Once completed, executive management reviews the form for accuracy and reasonableness. The completed form is then presented to the board of directors for their review prior to filing. Any questions or issues raised by the board are addressed and approved prior to submission to the IRS. Form 990, Part VI, Line 12c Conflict of interest policy Any instances of a conflict of interest that management becomes aware of is escalated to the Chief Human Resources Officer and the President/CEO. An investigation would be conducted to gather all the facts. Those facts would be used to determine the appropriate actions that are warranted. SAFE also has a formal process that provides employees a means of reporting any complaint or inappropriate activities directly to the Supervisory Committee or directly to our regulator, the California Department of Business Oversight. Lastly, SAFE's internal control structure is documented, reviewed and updated annually by management and tested by its external auditor. Internal controls are a vital part of helping to detect conflicts or inappropriate activity within the organization. Form 990, Part VI, Line 15a Process to establish compensation of top management official In 2017, our compensation consultant updated compensation ranges with current market data based on positions and grades, and adjustments were made as needed. This process affects all levels and positions within the organization. Further, executive compensation surveys are reviewed by the Chief Human Resources Officer and are used for comparison purposes to ensure that competitive, market based ranges are in place. For the CEO, compensation is reviewed by the Executive Committee of the Board and a CEO compensation salary survey is obtained and research is performed to ensure compensation levels are competitive. Form 990, Part VI, Line 15b Process to establish compensation of other employees In 2017, our compensation consultant updated compensation ranges with current market data based on positions and grades, and adjustments were made as needed. This process affects all levels and positions within the organization. Further, executive compensation surveys are reviewed by the Chief Human Resources Officer and are used for comparison purposes to ensure that competitive, market based ranges are in place. For the CEO, compensation is reviewed by the Executive Committee of the Board and a CEO compensation salary survey is obtained and research is performed to ensure compensation levels are competitive. Form 990, Part VI, Line 19 Required documents available to the public Governing documents and conflict of interest policies are not made available to the public. Annual reports containing financial results for the last two fiscal years are provided at annual meetings and are available electronically on SAFE's website. Complete audited financial statements are also provided on the company's website annually. Lastly, SAFE's regulatory 5300 call reports are filed quarterly and are available to the public via NCUA's website. Form 990, Part VIII, Line 2f Other Program Service Revenue Securities and insurance fees - Total Revenue: 3970653, Related or Exempt Function Revenue: 3944767, Unrelated Business Revenue: 25886, Revenue Excluded from Tax Under Sections 512, 513, or 514: 0;