2018-11-06T14:28:20-06:00 2017-12-31 420714325 RSM US LLP 1861 INTERNATIONAL DRIVE SUITE 400 MCLEAN VA 22102 990 2017-01-01 951184903 SAN DIEGO COUNTY CREDIT UNION SAND 8777322848 6545 SEQUENCE DRIVE SAN DIEGO CA 92121 ASHLEE MICALE CFO 8777322848 2018-11-06 1 YONG ZHANG CPA P01249785 7033366400 66.98.98.15 2018-11-06 08:57:00 ES P B7298F6847743AAC78CC1472ADD4E07D17DA476A 5BB3B986E96693C9FA12ABDB8E5DE88F5CFF60A5 2017 2019-02-21 02:37:17Z TERESA HALLECK 6545 SEQUENCE DRIVE SAN DIEGO CA 92121 303231691 0 X WWW.SDCCU.COM X 1938 CA STATE CHARTERED CREDIT UNION PROVIDING FINANCIAL SERVICES TO MEMBERS 10 9 1027 9 2758149 -2775141 0 0 240055613 257046621 29049212 39740508 18150957 6444562 287255782 303231691 0 0 0 0 64242326 59069036 0 0 0 116874319 142668425 181116645 201737461 106139137 101494230 7901403748 8262116445 6801660054 7060879199 1099743694 1201237246 A NOT-FOR-PROFIT CREDIT UNION WHOLLY OWNED BY ITS MEMBERS 0 0 PROVIDE LOAN PRODUCTS AND SERVICES TO MEMBERSHIP PROVIDE DEPOSIT PRODUCTS AND SERVICES TO MEMBERSHIP PROVIDE OTHER FINANCIAL SERVICES TO MEMBERSHIP 0 0 1 0 0 0 0 0 0 1 0 1 0 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 76522 0 1 1027 1 1 1 0 0 0 0 0 X 10 9 0 0 0 0 1 1 1 1 1 0 1 1 0 1 1 1 0 1 1 1 0 CA AZ X MS ASHLEE MICALE CFO 8777322848 6545 SEQUENCE DRIVE SAN DIEGO CA 92121 ILAN AWERBUCH DIRECTOR 1.00 X 5633 0 0 PATRICIA HONEYCUTT DIRECTOR 1.00 X 0 0 0 RICHARD COLLINS DIRECTOR 1.00 X 772 0 0 STEVE REUEL DIRECTOR 1.00 X 2893 0 0 SHIRLEY JACKSON DIRECTOR 1.00 X 0 0 0 LAURIE LEVENSON DIRECTOR 1.00 X 965 0 0 CHRISTOPHER HART DIRECTOR 1.00 X 485 0 0 KEN VAN RIPER DIRECTOR 1.00 X 486 0 0 HEATHER BENJAMIN DIRECTOR 1.00 X 401 0 0 TERESA HALLECK CEO & PRESIDENT 40.00 X X 1379304 0 1842315 CHITRAPHOL T VONGSAWAD COO 40.00 X 460321 0 146314 ASHLEE N MICALE EXECUTIVE VP & CFO 40.00 X 437192 0 72821 DALE CHRISTOPHER TURNER EVP, CHIEF SALES AND SERVICE OFFICER 40.00 X 406444 0 36354 PATRICK M COSGROVE EVP, CHIEF LENDING OFFICER 40.00 X 399735 0 96401 CAROLYN KISSICK EVP, OPERATIONS & ENTERPRISE RISK MANAGEMENT 40.00 X 356061 0 19472 MICHELLE PAGNI EVP, HUMAN RESOURCES 40.00 X 352553 0 79468 NATHAN S SCHMIDT EVP, BRAND STRATEGY AND DIGITAL CHANNELS 40.00 X 348877 0 43802 HEATHER E MOSHIER EVP, IT 40.00 X 451104 0 -275219 PATRICIA J ZERVIC SR. VP, REAL ESTATE-MLO 40.00 X 294577 0 8115 OSWALD FERNANDEZ MICLAT CORE SYSTEMS OPERATIONS ANALYST 40.00 X 324941 0 26113 MARC A MATHEWS VP, BUSINESS LOAN ORIGINATIONS 40.00 X 288118 0 13535 MICHAEL WAYNE CORPUZ SR. VP, BUSINESS LENDING 40.00 X 256503 0 19027 BRADLEY W BATES SR. VP, INTERNAL AUDIT 40.00 X 241136 0 29472 6008501 0 2157990 108 0 1 0 SHEPPARD MULLIN RICHTER & HAMPTON LLP 333 SOUTH HOPE ST 43RD FL LOS ANGELES CA 90071 LEGAL SERVICES 1633431 ALLIED UNIVERSAL SECURITY SERVICES PO BOX 31001-2374 PASADENA CA 91110 SECURITY SERVICES 1191097 VACO LA JOLLA LLC 5410 MARYLAND WAY STE 460 BRENTWOOD TN 37027 TEMPORARY STAFFING SERVICES 742494 MICROSOFT CORPORATION 1950 N STEMMONDS FWY SUITE 5010 DALLAS TX 75207 SOFTWARE 648032 MORTGAGE CADENCE LLC PO BOX 28662 CHICAGO IL 60673 SOFTWARE 518201 44 INTEREST INCOME 522100 196232459 196232459 FEE INCOME 522100 60814162 58056013 2758149 257046621 39445745 39445745 294763 0 294763 294763 294763 OTHER INCOME 522100 4411493 4411493 MEMBER INVESTMENT SERVICES 522100 2033069 2033069 6444562 303231691 260733034 2758149 39740508 6653320 41535784 1127887 5542296 4209749 1704664 742967 8321529 14295848 4019526 6634664 17377620 973300 46882495 10517278 662173 LOAN PROCESSING EXPENSE 11997280 OTHER OPERATING EXPENSE 9571880 PROVISION FOR LOAN LOSS 3625000 FRAUD LOSS 2540425 2801776 201737461 710638666 361702951 5770398142 6371205961 5346940 4971955 142321965 88269159 56715754 54052806 1164171068 1226839731 194133178 243343041 7901403748 8262116445 54262112 62515360 6747397942 6998363839 6801660054 7060879199 X 0 0 0 0 1099743694 1201237246 1099743694 1201237246 7901403748 8262116445 101494230 -678 0 X 0 1 X 1 0 15000 0 15000 15000 1 CA CREDIT UNION LEAGUE 2855 E GUASTI RD STE 600 ONTARIO CA 91761 940357265 15000 PART I-A, LINE 1: SDCCU HAD A $15K POLITICAL ACTION COMMITTEE CONTRIBUTION TO THE CA CREDIT UNION LEAGUE IN DECEMBER 2017. 12718959 12718959 39421354 20953358 18467996 18666937 10955300 7711637 71447332 56360501 15086831 67383 67383 54052806 GOVERNMENT INVESTMENTS 116967 F GOVERNMENT INVESTMENTS 886222764 C FHLB OF SAN FRANCISCO 40500000 F REPO AGREEMENTS INVESTMENT 300000000 F 1226839731 MEMBERS' SHARES 6698363839 CALIFORNIA TREASURY DEPOSITS 300000000 6998363839 X 303231691 0 303231691 0 303231691 201737461 0 201737461 0 201737461 PART X, LINE 2: 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, 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 AT ISSUE FOR MANY YEARS. DURING 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. IN LIGHT OF THE TAMS, THE CREDIT UNION HAS ASSESSED ITS ACTIVITIES AND ANY POTENTIAL FEDERAL OR STATE INCOME TAX LIABILITY. MANAGEMENT HAS DETERMINED THAT NO LIABILITY EXISTS FROM FEDERAL OR STATE TAXATION OF ACTIVITIES DEEMED TO BE UNRELATED TO ITS EXEMPT PURPOSE. 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. X 1 1 X X X X 1 1 0 TERESA HALLECK CEO & PRESIDENT 801601 0 560000 0 17703 0 1832423 0 9892 0 3221619 0 0 0 CHITRAPHOL T VONGSAWAD COO 377541 0 75000 0 7780 0 130096 0 16218 0 606635 0 0 0 ASHLEE N MICALE EXECUTIVE VP & CFO 336647 0 100000 0 545 0 48284 0 24537 0 510013 0 0 0 DALE CHRISTOPHER TURNER EVP, CHIEF SALES AND SERVICE OFFICER 325938 0 80000 0 506 0 29620 0 6734 0 442798 0 0 0 PATRICK M COSGROVE EVP, CHIEF LENDING OFFICER 289258 0 110000 0 477 0 72919 0 23482 0 496136 0 0 0 CAROLYN KISSICK EVP, OPERATIONS & ENTERPRISE RISK MA 255631 0 100000 0 430 0 10800 0 8672 0 375533 0 0 0 MICHELLE PAGNI EVP, HUMAN RESOURCES 267142 0 85000 0 411 0 75055 0 4413 0 432021 0 0 0 NATHAN S SCHMIDT EVP, BRAND STRATEGY AND DIGITAL CHAN 263073 0 80000 0 5804 0 35937 0 7865 0 392679 0 0 0 HEATHER E MOSHIER EVP, IT 390400 0 55000 0 5704 0 -278319 0 3100 0 175885 0 0 0 PATRICIA J ZERVIC SR. VP, REAL ESTATE-MLO 125681 0 0 0 168896 0 4982 0 3133 0 302692 0 0 0 OSWALD FERNANDEZ MICLAT CORE SYSTEMS OPERATIONS ANALYST 322316 0 2500 0 125 0 10501 0 15612 0 351054 0 0 0 MARC A MATHEWS VP, BUSINESS LOAN ORIGINATIONS 122661 0 165269 0 188 0 5670 0 7865 0 301653 0 0 0 MICHAEL WAYNE CORPUZ SR. VP, BUSINESS LENDING 221153 0 35000 0 350 0 10355 0 8672 0 275530 0 0 0 BRADLEY W BATES SR. VP, INTERNAL AUDIT 210805 0 30000 0 331 0 9827 0 19645 0 270608 0 0 0 PART I, LINE 1A THE FOLLOWING DIRECTORS WERE PROVIDED BENEFITS AND REIMBURSEMENTS RELATING TO TRAVEL FOR COMPANIONS: ILAN AWERBUCH - $5,633 RICHARD COLLINS - $772 STEVE REUEL - $2,893 LAURIE LEVENSON - $965 CHRISTOPHER HART - $485 KEN VAN RIPER - $486 HEATHER BENJAMIN - $401 PART I, LINES 4A-B SCHEDULE J, PART I, LINE 4A: ONE EMPLOYEE WHICH RECEIVED A SEVERANCE PAYMENT FROM THE ORGANIZATION, PROPERLY REPORT HER RESPECTIVE COMPENSATION, ON FORM 990, PART VII AND SCHEDULE J, PART II. THE TERMS AND CONDITIONS OF THE AGREEMENT ARE CONFIDENTIAL AND CAN BE MADE AVAILABLE TO THE IRS UPON REQUEST. ALL AMOUNTS PAID DURING THE PERIOD COVERED BY THIS RETURN, ARE APPROPRIATELY INCLUDED IN FORM 990, PART VII, AND IN SCHEDULE J, PART II AS A PART OF REPORTABLE COMPENSATION REPORTED ON HER RESPECTIVE FORM W-2. SCHEDULE J, PART I, LINE 4B: SDCCU PROVIDES CERTAIN OFFICERS, DIRECTORS, KEY EMPLOYEES AND HIGHLY COMPENSATED EXECUTIVES WITH A SPLIT-DOLLAR SUPPLEMEMTAL EXECUTIVE RETIREMENT PLAN (SERP) TO AUGMENT RETIREMENT INCOME FOR THESE EMPLOYEES. AMOUNTS CREDITED TO PARTICIPANTS ARE EARNED ON AN ANNUAL BASIS AND BASED ON CERTAIN ACTUARIAL FACTORS. THE AMOUNTS ARE ALSO SUBJECT TO FORFEITURE IF CERTAIN EMPLOYMENT CONDITIONS AND VESTING PERIODS ARE NOT MET. FOR THE YEAR ENDING DECEMBER 31, 2017, THE INDIVIDUALS LISTED IN SCHEDULE J, PART II HAD AN AMOUNT RELATING TO THE SERP BENEFITS LISTED AS DEFERRED COMPENSATION LISTED IN COLUMN C: TERESA HALLECK - $1,821,623 CHITRAPHOL T. VONGSAWAD - $119,296 ASHLEE N. MICALE - $37,908 DALE CHRISTOPHER TURNER - $18,820 PATRICK M. COSGROVE - $62,119 MICHELLE PAGNI - $64,343 NATHAN S. SCHMIDT - $26,217 HEATHER E. MOSHIER - $-289,119 MARC A. MATHEWS - $-4,829 FORM 990, PART VI, SECTION A, LINE 6 THE CREDIT UNION IS A NOT-FOR-PROFIT ORGANIZATION MADE UP OF MEMBERS. FORM 990, PART VI, SECTION A, LINE 7A MEMBERS MAY ELECT ALL MEMBERS OF THE BOARD OF DIRECTORS AND THE SUPERVISORY COMMITTEE. MEMBERS MAY NOMINATE CANDIDATES FOR THE BOARD THROUGH A PETITION PROCESS SET FORTH IN THE BYLAWS. A NOMINATION COMMITTEE ALSO NOMINATES CANDIDATES. IF MEMBERS FAIL TO NOMINATE A CANDIDATE FOR AN OPEN BOARD POSITION, THEN THE NOMINATION COMMITTEE'S CANDIDATE MAY BE APPOINTED TO THE BOARD WITHOUT AN ELECTION. FORM 990, PART VI, SECTION A, LINE 7B CERTAIN DECISIONS MADE BY THE CREDIT UNION'S BOARD OF DIRECTORS ARE SUBJECT TO REGULATORY OR MEMBERSHIP APPROVAL. FORM 990, PART VI, SECTION B, LINE 11B THE FORM 990 IS REVIEWED BY THE CHIEF EXECUTIVE OFFICER ("CEO") AND CHIEF FINANCIAL OFFICER ("CFO"), WHO CONSULT WITH EXTERNAL CPA FIRMS AND LEGAL COUNSEL AS NEEDED TO ENSURE THE ACCURACY AND SUFFICIENCY OF ALL RESPONSES. FORM 990, PART VI, SECTION B, LINE 12C THERE ARE REGULAR COMPLIANCE REVIEWS BY THE CREDIT UNION'S COMPLIANCE OFFICER AND A THIRD (3RD) PARTY VENDOR WHICH ADDRESSES COMPLIANCE WITH ALL CREDIT UNION POLICIES. IN ADDITION, REGULATORS AND CPA'S MONITOR COMPLIANCE DURING THEIR PERIODIC AND ANNUAL AUDITS. FORM 990, PART VI, SECTION B, LINE 15 HUMAN RESOURCES PARTICIPATES IN SURVEYS AND PROVIDES COMPARABILITY DATA ON COMPENSATION FOR KEY OFFICERS TO THE CEO. OUTSIDE PROFESSIONALS ALSO VALIDATE THE COMPENSATION DATA ON A PERIODIC BASIS. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION MAKES ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC BY COMPLYING WITH THE PUBLIC DISCLOSURE REQUIREMENTS SET FORTH IN THE REGULATIONS FOR IRC SECTION 6104 AT 26 C.F.R. SECTION 301.604 FRESH START REAL ESTATE LLC 6545 SEQUENCE DRIVE SAN DIEGO CA 92121 452981200 REAL ESTATE CA 61863 422932 SAN DIEGO COUNTY CREDIT UNION SD FINANCIAL GROUP LLC 6545 SEQUENCE DRIVE SAN DIEGO CA 92121 452980994 E-COMMERCE - INACTIVE CA 0 0 SAN DIEGO COUNTY CREDIT UNION