2018-10-01T19:00:08-05:00 2017-12-31 350921680 CROWE LLP 225 West Wacker Drive Suite 2600 Chicago IL 606061224 990 2017-01-01 390671465 University of Wisconsin Credit Union UNIV 6082325000 3500 University Ave Madison WI 53705 Brad Mcclain Exec VP/CFO 2018-10-01 true Nicole Bencik P00756195 3128997000 2017 2018-06-14 16:35:46Z UW Credit Union Paul Kundert 3500 University Ave Madison WI 53705 521934414 false X www.uwcu.org X 1931 WI The University of Wisconsin Credit Union is a federally insured financial institution that provides customized financial products and services to meet the money management goals of its members. 9 9 653 19 2709607 -423857 0 0 99491741 112051310 18436314 15622020 -31680 -30845 117896375 127642485 431510 732161 0 0 37333516 40547844 0 0 0 48151659 52622265 85916685 93902270 31979690 33740215 2331001922 2560045203 2113946636 2306590071 217055286 253455132 The mission of University of Wisconsin Credit Union (UWCU) is to encourage thrift among its members, to create a source of credit at a fair and reasonable rate of interest, to provide an opportunity for its members to improve their economic and social conditions and to perform the functions and exercise the powers designated for credit unions under the applicable law. false false UWCU is one of Wisconsin's fastest-growing home purchase financing lenders and falls within the top ten in Wisconsin among all mortgage lenders. UWCU assisted over 3,300 households who purchased or refinanced homes. The credit union continues to be a resource for first time home buyers offering educational seminars to potential home buyers and a $1,000 closing costs offer for first time home buyers. UWCU continued to be a top educational lender in 2017 and offered both fixed and variable rate Private Student Loans. UWCU refinanced over $29 million in student loans, lowering members' rates. In 2017, UWCU welcomed 29,893 new members and opened 11,842 net new checking accounts. The Credit Union's honest and straightforward business practices continue to drive membership and relationship growth. At the end of 2017, UWCU served over 239,700 members and just over 189,300 checking accounts. In addition to checking services, members also continue to place deposits with the Credit Union with average savings balances at nearly $9,300 per member. UWCU continues to focus on delivering financial services in a trustworthy manner. UWCU continues to provide credit consultation services which is a free service that benefits any member. Members can meet with a financial specialist to review their credit report, better understand their credit score, or research options to lower rates on existing loans. UWCU offers a consolidated student loan which allows members to refinance multiple loans into one with a low rate and one easy payment. UWCU offers low-limit, low-rate credit cards for young adults to help them build their credit responsibly, and affordable no annual fee secured credit cards for members who need to repair their credit. UWCU offers an overdraft line-of-credit protection with no annual fee. Members have free access to their credit scores through Web Branch. 0 false false false false false false false true false true true false false true true false true false false false false false false false false false true false true false false false false false false false false false false true false false false true 74223 0 true 653 true true true false false false false false X 9 9 false false false false true true true true true false false true true true true true true false false false X Brad McClain 6082325000 3500 University Avenue Madison WI 53705 Yvonne Evers Director-Chair 3.0 X X 900 0 0 Steven Rick Director-Vice Chair 3.0 X X 900 0 0 Marion Brown Director-Secretary 3.0 X X 900 0 0 Kelly Wilson Director - Treasurer 2.0 X X 900 0 0 Jeffrey Russell Director 2.0 X 900 0 0 Phyllis King Director 2.0 X 0 0 0 Frank Humphrey Director 2.0 X 900 0 0 Shenita BrokenBurr Director 2.0 X 900 0 0 Ernest Hanson Director (Partial to December 2017) 3.0 X 900 0 0 Michael Carr DIRECTOR (PARTIAL - START DEC 2017) 2.0 X 0 0 0 Brad McClain Exec VP/CFO 50.0 X 373736 0 46077 Jonathan Bundy CLO/Asst. Corp. Secretary 50.0 X 214164 0 36137 Paul Kundert President/CEO 50.0 X 725941 0 261458 Jason Feist VP Member Services 50.0 X 188715 0 19287 Lee Wiersma Exec VP/CHRO 50.0 X 263646 0 34533 Greg Yelk Vice President of Information Technology 50.0 X 226164 0 42987 Julio Rios Vice President of Mortgage Lending 50.0 X 220281 0 39893 Mike Long Exec VP/CCO 50.0 X 324523 0 44810 Rob Van Nevel Senior VP & CMSO 50.0 X 292565 0 27175 Eric Bangerter VP of E-Commerce and Internet Services 50.0 X 205073 0 35847 Glen Spaeth VP & Controller 50.0 X 192880 0 41978 David Mickelson Vice President of Member Service Operations and Card Programs 50.0 X 184354 0 18032 Lisa Girdharry SENIOR VP AND CMO (partial year) 50.0 X 189440 0 27647 James Hoppe Mortgage Lending Sales Manager 50.0 X 179941 0 14517 Ryan Boney Mortgage Loan Officer 44.5 X 186464 0 27722 Chad LaFlash Associate Vice President of Membersship Services 50.0 X 166436 0 25378 Jeremy Marshall Financial Advisor II 44.0 X 178915 0 33296 Teodor Trandafir Director of Investment Services 50.0 X 199419 0 30122 4519857 0 806896 55 false true false ADAMS OUTDOOR ADVERTISING PO BOX 809140 CHICAGO IL 606809140 ADVERTISING 317180 MICHAEL BEST & FRIEDRICH LLP 100 E WISCONSIN AVE MILWAUKEE WI 53202 LEGAL SERVICES 132434 Darnieder & Sosnay 735 N Water Street Milwaukee WI 53202 Legal Services 123458 ENCORE ONE LLC 124 N 121st Street Wauwatosa WI 53226 JANITORIAL SERVICES 115866 Dove Capital Partners LLC 219 Borders Rd Avon CO 81620 Consultant 110500 7 X 0 0 0 0 0 0 0 0 Interest on Loans 522100 72657173 72657173 0 0 Card and ATM Interchange 524298 23646557 23280029 366528 0 Service Charges and Fees 522100 5654390 5654390 0 0 Loan Servicing Fees 522100 6264158 5751260 512898 0 Investment and insurance services 525100 3135674 1305493 1830181 0 693358 693358 0 0 112051310 9041765 0 0 9041765 0 0 0 0 0 0 0 0 121761 0 152606 0 -30845 0 -30845 0 0 -30845 3013650 397705928 3007733 391131590 5917 6574338 6580255 6574338 0 5917 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 127642485 115916041 2709607 9016837 732161 0 0 0 4284543 0 0 0 0 28893787 2235052 2684188 2450274 0 171858 489334 0 0 0 699048 0 0 0 3929959 4874943 3779732 0 3623953 353579 0 0 2443567 0 3503940 311952 loan servicing expense 13813015 card processing expense 6071395 Loan Loss provision 6650895 fraud forgery losses 472604 1432491 0 0 0 93902270 0 0 0 36969469 39685940 293270281 137248144 0 0 3659181 3398322 0 0 0 1512523948 1830765351 0 0 17921026 18454729 110320372 47591018 59326552 62729354 47468034 44896090 298875210 354675213 0 0 0 60988221 68192060 2331001922 2560045203 34412167 36678579 0 0 5969362 6195373 0 0 9133631 9383812 0 0 0 30000000 0 0 2064431476 2224332307 2113946636 2306590071 0 0 0 0 0 0 X 0 0 0 0 217055286 253455132 217055286 253455132 2331001922 2560045203 X 33740215 -876770 0 0 0 3536401 X false true X true false false true X 16170616 16170616 49754676 14903467 34851209 2649608 1804354 845254 21334379 16245965 5088414 20411093 14637232 5773861 62729354 Agency Backed Securities 351539813 F Federal Home Loan Bank Chicago Stock 3135400 C 354675213 0 Member Deposits 2215829488 Outstanding Cashiers Checks 8502819 2224332307 X Schedule D, Part IV, Line 2b Explanation of escrow agreement The Credit Union maintains real estate escrow accounts used to pay members' real estate taxes and insurance. Schedule D, Part X, Line 2 FIN 48 (ASC 740) footnote The Credit Union is exempt, by statute, from federal and state income taxes. The Credit Union does, however, pay sales tax, property tax, payroll taxes, and federal and state income tax on unrelated business activities. The Internal Revenue Service (IRS) and certain taxing authorities are evaluating what, if any, products and services provided by state chartered credit unions or their credit union service organizations are subject to unrelated business income tax (UBIT). There is currently very little guidance in the IRS Code on what activities should be subject to UBIT. The IRS has issued certain technical advice memorandums identifying certain activities as being subject to UBIT. As a result, at this time there is uncertainty regarding whether state chartered credit unions should pay income tax on certain types of net taxable income from activities that may be considered by taxing authorities as unrelated to the purpose for which credit unions were granted non-taxable status. The tax liability recorded by the Credit Union as of December 31, 2017 and 2016 attributed to unrelated business activities was not material. A tax position will be recognized as a benefit only if it is "more likely than not" that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized will be the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the "more likely than not" test, no tax benefit will be recorded. There is no accrual necessary at year-end 2017 and 2016. The Credit Union recognizes interest and/or penalties related to income tax matters in the operations section of the consolidated statement of income. No interest or penalties were incurred during 2017 and 2016. true University of Wisconsin Foundation 1848 University Ave Madison WI 537088860 390743975 501(C)(3) 183000 0 N/A N/A COMMUNITY OUTREACH, SCHOLARSHIPS Madison Community Foundation 111 North Fairchild St Suite 260 Madison WI 53703 396038248 501(C)(3) 175000 0 N/A N/A COMMUNITY OUTREACH UWM Foundation Inc 1440 E NORTH AVENUE MILWAUKEE WI 53202 237337744 501(C)(3) 44000 0 N/A N/A COMMUNITY OUTREACH, SCHOLARSHIPS United Way of Dane County Inc 2059 Atwood Ave Madison WI 53704 390817532 501(C)(3) 65993 0 N/A N/A COMMUNITY OUTREACH University of Wisconsin Milwaukee 2033 E Hartford Ave Milwaukee WI 53201 391805963 University of WI 20000 0 N/A N/A COMMUNITY OUTREACH, SCHOLARSHIPS Community Shares of Wisconsin 612 W Main St Ste 200 Madison WI 53703 391172378 501(C)(3) 12718 0 N/A N/A Community Outreach Friends of University of Wisconsin Hospital and Clinics 635 Science Dr Suite 150 Madison WI 53711 510137187 501(C)(3) 10500 0 N/A N/A COMMUNITY OUTREACH UW Whitewater Foundation Inc 800 W Main St Whitewater WI 531901709 396081189 501(C)(3) 10000 0 N/A N/A COMMUNITY OUTREACH, SCHOLARSHIPS UW Green Bay Foundation Inc 2420 Nicolet Dr Green Bay WI 54311 451600858 501(C)(3) 10000 0 N/A N/A COMMUNITY OUTREACH, SCHOLARSHIPS 9 0 Schedule I, Part I, Line 2 Procedures for monitoring use of grant funds. UWCU contributes to organizations that are tax exempt organizations. There is no formal monitoring of grant funds as UWCU contributes to support the general operations of these organizations. X false true false Brad McClain Exec VP/CFO 249930 0 92850 0 30956 0 18979 0 27098 0 419813 0 0 0 Jonathan Bundy CLO/Asst. Corp. Secretary 168137 0 34595 0 11432 0 13512 0 22625 0 250301 0 0 0 Paul Kundert President/CEO 539393 0 165000 0 21548 0 242842 0 18616 0 987399 0 0 0 Jason Feist VP Member Services 151695 0 28908 0 8112 0 15099 0 4188 0 208002 0 0 0 Lee Wiersma Exec VP/CHRO 170506 0 71287 0 21853 0 18855 0 15678 0 298179 0 0 0 Greg Yelk Vice President of Information Technology 176648 0 41382 0 8134 0 18524 0 24463 0 269151 0 0 0 Julio Rios Vice President of Mortgage Lending 152176 0 61988 0 6117 0 17465 0 22428 0 260174 0 0 0 Mike Long Exec VP/CCO 213822 0 106220 0 4481 0 22077 0 22733 0 369333 0 0 0 Rob Van Nevel Senior VP & CMSO 197203 0 73686 0 21676 0 19104 0 8071 0 319740 0 0 0 Eric Bangerter VP of E-Commerce and Internet Services 166717 0 31850 0 6506 0 16276 0 19571 0 240920 0 0 0 Glen Spaeth VP & Controller 142387 0 33594 0 16899 0 14981 0 26997 0 234858 0 0 0 David Mickelson Vice President of Member Service Operations and Card Programs 143975 0 19396 0 20983 0 12104 0 5928 0 202386 0 0 0 Lisa Girdharry SENIOR VP AND CMO (partial year) 128456 0 53426 0 7558 0 14225 0 13422 0 217087 0 18666 0 James Hoppe Mortgage Lending Sales Manager 86696 0 90876 0 2369 0 14350 0 167 0 194458 0 0 0 Ryan Boney Mortgage Loan Officer 50882 0 135151 0 431 0 7769 0 19953 0 214186 0 0 0 Chad LaFlash Associate Vice President of Membersship Services 136532 0 24505 0 5399 0 12051 0 13327 0 191814 0 0 0 Jeremy Marshall Financial Advisor II 29183 0 149695 0 37 0 6232 0 27064 0 212211 0 0 0 Teodor Trandafir Director of Investment Services 120831 0 77947 0 641 0 6719 0 23403 0 229541 0 0 0 Schedule J, Part I, Line 4b Supplemental nonqualified retirement plan The Board established a Deferred Compensation Plan for the President as allowed under the Internal Revenue Code 457(f). The plan is designed to compensate for benefits not eligible under the 401(k) plan as a result of limitations imposed by the IRS on the allowable contributions, as well as the provide a long-term incentive for sustained performance. As of December 31, 2017, the outstanding liability under the plan was $1,166,000. Cumulative deferred compensation payable to the President is a general creditor obligation of the Credit Union. Future disbursements (if any) of the cumulative deferred compensation payable are contingent on the conditions established by the plan. Form 990, Part VI, Line 15b PROCESS TO ESTABLISH COMPENSATION - OFFICERS & KEY EMPLOYEES THE CHIEF EXECUTIVE OFFICER OF THE CREDIT UNION APPROVES THE COMPENSATION OF ALL SUBORDINATE OFFICERS OF THE CREDIT UNION. CONSISTENT WITH ALL OTHER CREDIT UNION EMPLOYEE POSITIONS, THE CREDIT UNION FOLLOWS A COMPENSATION SYSTEM THAT ASSIGNS A POSITION GRADE AND SALARY RANGE FOR EACH POSITION. AT LEAST BI-ANNUALLY, INDEPENDENT BENCHMARK DATA FROM AT LEAST TWO SOURCES IS OBTAINED. BASED ON THE MEDIAN OF THE BLENDED BENCHMARKS, POSITIONS ARE ASSIGNED TO A SALARY GRADE. FOR SUBORDINATE OFFICERS, COMPENSATION ADJUSTMENTS CAN BE MADE BY THE CHIEF EXECUTIVE OFFICER BASED ON INDIVIDUAL PERFORMANCE WITHIN THE CONFINES OF THE ESTABLISHED SALARY GRADE. ALL EMPLOYEES OF THE CREDIT UNION, INCLUDING THE OFFICERS SUBORDINATE TO THE CHIEF EXECUTIVE OFFICER, ARE ELIGIBLE TO RECEIVE BASE PAY AS WELL AS A VARIABLE PAY BONUS BASED ON THE ATTAINMENT OF ORGANIZATIONAL GOALS AND INDIVIDUAL PERFORMANCE, WHICH INCLUDE MEMBER SATISFACTION, AND FINANCIAL STEWARDSHIP. THE VARIABLE PAY POTENTIAL BONUS POOL FUNDS ARE APPROVED BY THE BOARD OF DIRECTORS. EMPLOYEES, INCLUDING OFFICERS SUBORDINATE TO THE CHIEF EXECUTIVE OFFICER, PARTICIPATE IN THE BONUS POOL BASED ON THEIR INDIVIDUAL PERFORMANCE AND SALARY GRADE. THE OFFICERS SUBORDINATE TO THE CHIEF EXECUTIVE OFFICER RECEIVE THE SAME LIFE, MEDICAL, AND DENTAL INSURANCE, AND 401(K) BENEFITS THAT ARE AVAILABLE TO ALL FULL-TIME EMPLOYEES OF THE CREDIT UNION. Form 990, Part VI, Line 6 Classes of members or stockholders All members of the Credit Union are given one vote in election of board members, or the approval of significant decisions, without preference to the amount of funds they have on deposit with the credit union. Form 990, Part VI, Line 7a Members or stockholders electing members of governing body The University of Wisconsin Credit Union is a member owned cooperative business organization, governed by a nine member Board of Directors. The Board is comprised of active members of the Credit Union who are selected by the membership through a democratic election process. Form 990, Part VI, Line 7b Decisions requiring approval by members or stockholders At any membership meeting, members may submit a petition in advance to allow a majority of the members present to direct the board to consider policies proposed by the members, or reconsider any decision of the directors, officers, or committees. Furthermore, the members must approve of any consolidations or mergers when it results in a change of membership. Form 990, Part VI, Line 11b Review of form 990 by governing body The CEO, CFO and Controller perform a thorough review of the draft form 990 prior to the full board review. A draft copy of the form 990 is provided to the audit committee and the paid tax preparer presents excerpts from the return. A final copy of the return is provided to the full board prior to filing the return with the IRS. Form 990, Part VI, Line 12c Conflict of interest policy Board members, officers and employees are required to annually disclose any conflicts of interests they may have with the organization. The Chief Legal Officer reviews each policy statement signed by these individuals to determine if any conflicts have occurred and need to be brought to the attention of the Board. If a conflict arises, the respective board member will abstain him/herself from any related discussion, vote or similar action on the matter. Form 990, Part VI, Line 19 Required documents available to the public The organization's governing documents and financial statements are available on the credit union's public website. The conflict of interest policy is available to employees of the credit union on the internal intranet and is required to be reviewed and signed by them annually; the conflict of interest policy is not available to the public. Form 990, Part VII, Section A, Line 1a, Column (D) Board compensation policy As a convenience to UW Credit Union, and to minimize the Credit Union's administrative burden related to processing and paying incidental out-of-pocket expenses such as telephone, local mileage, parking, copying, postage, and supplies associated with duties of the Board Director positions, the Board has implemented a policy of per diem reimbursement of expense. Directors are reimbursed $75 per month for an annual total of $900 per Director. Alternatively, the Directors have the option to forego the per diem method and be reimbursed under the accountable reimbursement method. Form 990, Part VIII, Line 2f Other Program Service Revenue Other Income - Total Revenue: 693358, Related or Exempt Function Revenue: 693358, Unrelated Business Revenue: 0, Revenue Excluded from Tax Under Sections 512, 513, or 514: 0; Form 990, Part XI, Line 9 Other changes in net assets or fund balances Mortgage Market Hedging Valuation - -407177; Valuation Allowance on Receivable from Trustee, Net - 3943578; FORM 990, PART XI, LINE 9 OTHER CHANGES IN NET ASSETS OR FUND BALANCES In 2014 UW Credit Union held a position in securities purchased under agreements to resell through Pennant Management, Inc. (Pennant), a subsidiary of U.S. Fiduciary, in United States Department of Agriculture (USDA) Rural Development Business and Industry guaranteed loans. Pennant is an SEC registered investment advisor. As of September 29, 2014, Pennant halted trading in its First Farmers Repurchase Agreement B Fund, and filed a complaint in United States District Court for the Northern District of Illinois Eastern Division claiming that the loans Pennant allegedly acquired from First Farmers Financial, LLC (First Farmers) were fraudulent. The USDA has acknowledged granting authority to First Farmers to originate and service USDA guaranteed loans; however, the USDA has denied the validity of guarantees with respect to the loans that Pennant purchased from First Farmers. On August 31, 2016 the Credit Union filed a complaint in the United States District Court for the Northern District of Florida Gainesville Division asserting the USDA's negligence caused the Credit Union harm. On September 18, 2017 The U.S. District Court entered a final judgement granting USDA's motion to dismiss action. The Credit Union filed an appeal to the U.S. Court of Appeals for the Eleventh Circuit on November 15, 2017. The matter remains pending before the U.S. Court of Appeals. The Court has appointed a receiver to manage and liquidate certain assets of First Farmers and other related entities and individuals in order to return funds to the investors. The Court appointed receiver took possession of certain assets which included commercial and residential real properties, loans receivable, cash, and other personal property. After evaluating an inventory of the assets in the possession of the court appointed receiver, the estimated liquidation value of such assets, and unresolved liens against such assets, UW Credit Union recorded a valuation allowance of $22,860,000 based on UW Credit Union's share of the estimated value of the recovery assets as reflected in its proportional share ownership of the First Farmers Repurchase Agreement B Fund. There was an insurance settlement outside of the receivership estate and adjustments to the asset and lien values in 2017. As a result UW Credit Union reduced the valuation allowance by $3,943,578. FORM 990, PART VI, LINE 15A PROCESS TO ESTABLISH COMPENSATION OF TOP MANAGEMENT OFFICIAL AS PROVIDED BY THE BYLAWS, THE PRESIDENT IS THE CHIEF EXECUTIVE OFFICER AND THE TOP MANAGEMENT OFFICIAL. THE PRESIDENT SERVES AT THE PLEASURE OF THE BOARD OF DIRECTORS. AS PRESCRIBED BY THE BYLAWS THE BOARD OF DIRECTORS SETS THE COMPENSATION OF THE PRESIDENT. THE BOARD HAS EXECUTED A FORMAL EMPLOYMENT AGREEMENT WITH THE PRESIDENT, WHICH PROVIDES THAT EITHER PARTY MAY TERMINATE THE AGREEMENT AT ANY TIME. PER THE TERMS OF THE CONTRACT, BIENNIALLY THE BOARD SETS THE COMPENSATION OF THE PRESIDENT USING INDEPENDENTLY OBTAINED DATA TO BENCHMARK THE MARKET VALUE OF THE POSITION, WHICH WAS LAST UNDERTAKEN IN 2015. All employees of the Credit Union, including the President, are eligible to receive a base pay as well as a variable pay bonus based on the attainment of organizational goals, which include member satisfaction and financial stewardship. The President receives the same life, medical, disability, and dental insurance, and 401(K) benefits that are available to all full-time employees of the Credit Union. The President is provided with other benefits which include a supplemental disability insurance policy and is provided an automobile allowance. The annual value of these supplemental benefits included in Schedule J Part II is $14,000. The Board of Directors' deliberations and determinations regarding compensation are recorded on a timely basis in the minutes of their meetings. CU CAMPUS RESOURCES LLC 3500 UNIVERSITY AVE MADISON WI 53705 272613828 CUSTOMIZED STUDENT LOAN PROGRAMS WI 780115 0 UWCU