2018-11-21T09:26:00-06:00 2017-12-31 420714325 RSM US LLP 801 NICOLLET MALL SUITE 1100 MINNEAPOLIS MN 55402 990 2017-07-01 410788273 CENTRICITY CREDIT UNION CENT 2187402281 4477 LAVAQUE ROAD HERMANTOWN MN 55811 CONSTANCE CARTER CFO 2187402281 2018-11-21 1 GERALD B KISSELL P00092658 6123324300 108.171.131.188 2018-11-21 09:23:21 CS P BAAA55F19712D57DA335EB0D2886131656817A04 C0F43978DBA0C0105C9EC865D2B1B55C6AA9D490 2017 2019-02-21 02:37:17Z X DOUGLAS RALSTON 4477 LAVAQUE ROAD HERMANTOWN MN 55811 4306104 0 X WWW.CENTRICITY.ORG X 1943 MN THE PRINCIPLES AND BELIEFS GUIDING OUR CREDIT UNION AS WE PURSUE OUR PURPOSE TO FOCUS ON CREATING AND BUILDING REAL RELATIONSHIPS, EXCEEDING EXPECTATIONS, ENCOURAGE AND EDUCATE MEMBERS ON THE USE OF TECHNOLOGY AND UNDERSTANDING AND SERVING THE FINANCIAL NEEDS OF OUR MEMBERS AND WORK TO PROVIDE SOLUTIONS WHEN LIFE HAPPENS. 7 7 72 10 8944 0 0 4088665 213734 0 4302399 0 105280 1161689 0 0 2650497 3917466 384933 140285343 139210370 125362024 123870101 14923319 15340269 X WITH LOCATIONS IN HERMANTOWN, DULUTH, AND SUPERIOR, WE ARE A FINANCIAL INSTITUTION OF PEOPLE HELPING PEOPLE. WE CARE ABOUT THE COMMUNITIES WE SERVE AND LOVE GIVING OUR MEMBERS THE FINANCIAL EDUCATION THEY NEED TO THRIVE AND ENCOURAGE SAVING TO BUILD ECONOMIC SECURITY FOR THEMSELVES AND THEIR FAMILIES. AT ALL LEVELS OF OUR OPERATION, WE ARE DEDICATED TO PROVIDING OUTSTANDING MEMBER SERVICE. 0 0 CREDIT UNION BANKING SERVICE PROGRAMS:THE CREDIT UNION OFFERS A FULL RANGE OF BANKING SERVICES TO THE MEMBERS. AS OF 12/31/17 OUR MEMBERS HAD $123,208,591 ON DEPOSIT IN INSURED ACCOUNTS IN THE CREDIT UNION. THE CREDIT UNION HAD $64,905,361 IN SAVINGS ACCOUNTS, $24,845,713, IN CHECKING ACCOUNTS, $18,738,680, IN MONEY MARKET, AND $11,544,562, CERTIFICATES OF DEPOSIT. THE AVERAGE RATE OF RETURN ON SAVINGS ACCOUNTS AT YEAR END WAS .10 %. MONEY MARKET ACCOUNTS EARNED AN AVERAGE OF .15% AT YEAR END. NON-IRA CERTIFICATES EARNED 1.05% AT YEAR END. THE CREDIT UNION BEGAN THE YEAR WITH 16,491 MEMBERS AND ENDED THE YEAR WITH 16,664 FOR A INCREASE OF 173 NEW MEMBERS. CREDIT UNION LENDING:THE CREDIT UNION EXISTS TO PROVIDE LOANS TO ITS MEMBERS AT RATES AND TERMS NOT AVAILABLE TO OUR FIELD OF MEMBERSHIP THROUGH BANKS OR OTHER FINANCIAL INSTITUTIONS. THE LARGEST PORTION OF OUR LENDING IS MADE UP OF USED VEHICLE LOANS. THE CREDIT UNION HAD $33,375.492 IN USED AUTO LOANS OUTSTANDING AT DECEMBER 31, 2017. USED AUTO LOANS REPRESENT 34.49% OF ALL OUTSTANDING LOANS AT DECEMBER 31, 2017. THE CREDIT UNION HAD $7,560,206 IN OUTSTANDING FIRST HOME LOANS AS OF 12/31/17. THEY REPRESENT 7.7% OF OUR LOAN PORTFOLIO AND 5.43% OF OUR TOTAL ASSETS. THE AVERAGE OFFERRING RATE AT DECEMBER 31 2017 FOR FIRST MORGAGE LOANS WAS 4.13%. THE TOTAL LOAN PORTFOLIO INCREASED $4,678,498 DURING 2017. THE DELINQUENCY RATIO FOR THE PORTFOLIO AT YEAR END WAS .50%. 0 0 1 0 0 0 0 0 0 1 1 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1737 0 1 72 1 1 1 0 0 0 0 0 X 7 7 0 0 0 0 1 1 1 1 1 0 1 1 0 1 1 1 1 1 1 1 0 MN X CONSTANCE CARTER 2187297733 4477 LAVAQUE ROAD HERMANTOWN MN 55811 LEONARD LUOMA BOARD CHAIR 2.00 X X 0 0 0 MARGARET TAYLOR BOARD VICE CHAIR 2.00 X X 0 0 0 STEPHEN MORGAN BOARD SECRETARY 2.00 X X 0 0 0 PATRICIA HENDRICKSON BOARD MEMBER 2.00 X 0 0 0 RENEE MCADAMIS BOARD MEMBER 2.00 X 0 0 0 MARK THORSTEN BOARD MEMBER 2.00 X 0 0 0 GAYLE WAHNER BOARD MEMBER 2.00 X 0 0 0 SCOTT LUNDGREN CEO 40.00 X 142078 0 9519 CONSTANCE CARTER CFO 40.00 X 86702 0 39270 228780 0 48789 1 0 1 0 FISERV 75 REMITTANCE DRIVE SUITE 1649 CHICAGO IL 60675 CORE SOFTWARE AND OTHER SERVICE SOFTWARE 1075924 KRAUS-ANDERSON CONSTRUCTION CO 8625 RENDOVA STREET NE PO 158 CIRLCE PINES MN 55014 GENERAL CONTRACTOR SERVICES 207673 COMPUDYNE 1524 EAST 37TH ST HIBBING MN 55746 IT SERVICES 148417 ALLIED SOLUTIONS 1320 CITY CENTER DRIVE STE 300 CARMEL IN 46032 INSURANCE AND PRODUCT SERVICES 133483 TELEGRETE 4111 MACKENZIE COURT NE SUITE 100 ST MICHAEL MN 55376 BUILDING MAINTENANCE SERVICES 108024 5 INCOME FROM MEMBER LOA 522100 2649526 2649526 NON-INTEREST INCOME 522100 1439139 1430195 8944 4088665 217439 217439 3705 -3705 -3705 -3705 4302399 4079721 8944 213734 105280 134989 813062 44637 97893 71108 35332 335063 91120 94136 306456 298307 10139 29710 177590 17778 PROVISION FOR LOAN LOSS 676622 LOAN SERVICING EXPENSES 228682 COLLECTION EXPENSES 86200 263362 3917466 9035670 8980836 8521 1744 336420 373422 97251074 96663416 521242 433522 6892998 2561759 4427336 4331239 27002622 26052364 1702458 2373827 140285343 139210370 703006 661510 124659018 123208591 125362024 123870101 X 0 0 0 0 14923319 15340269 14923319 15340269 140285343 139210370 384933 32017 0 X 0 1 X 1 0 1000 1000 1000 1 MINNESOTA CREDIT UNION NETWORK - ADVOCACY FUND 555 WABASHA STREET N SUITE 200 ST PAUL MN 55102 1000 PART I-A, LINE 1: THE CREDIT UNION MAKES CONTRIBUTIONS TO THE MINNESOTA CREDIT UNION NETWORK TO SUPPORT CREDIT UNION ISSUES AND LEGISLATION. 621712 621712 5048848 1592262 3456586 1222438 969497 252941 4331239 FIRST EMPIRE INVESTMENTS 6237815 F CERTIFICATE OF DEPOSITS 17076498 C INVESTMENT IN CORPORATE CENTRAL 177000 C OTHER INVESTMENTS 2378751 F INVESTMENT IN FEDERAL HOME LOAN BANK 164800 C CUSO INVESTMENT 17500 C 26052364 MEMBERS' SHARES 123208591 123208591 X X 0 1 0 SCOTT LUNDGREN CEO 130098 0 11980 0 0 0 7200 0 2643 0 151921 0 0 0 PART I, LINE 4B CONSTANCE CARTER, CFO, PARTICIPATED IN A NONQUALIFIED RETIREMENT PLAN. THERE WERE NO DISBURSEMENTS IN 2017 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 FORM 990 IS PREPARED BY AN INDEPENDENT ACCOUNTANT AND REVIWED BY THE CFO BEFORE FILING WITH THE IRS. THE FILED FORM 990 WILL BE PRESENTED TO THE BOARD OF DIRECTORS AT THE BOARD MEETING FOLLOWING THE FILING OF THE RETURN WITH THE IRS. FORM 990, PART VI, SECTION B, LINE 12C WHEN MATTERS PERTAINING TO THE SPECIFIC PERSONAL INTEREST OF A BOARD MEMBER ARE DISCUSSED, THE AFFECTED BOARD MEMBER OR MEMBERS WILL NOT ENGAGE IN THE DISCUSSION NOR PARTICIPATE IN THE VOTE AND THE MINUTES WILL SO STATE. IF MORE THAN ONE BOARD MEMBER IS INVOLVED IN MATTERS INVOLVING A CONFLICT OF INTEREST AND A VOTE IS CALLED, THE NUMBER VOTING MUST EXCEED THE QUORUM REQUIREMENTS FOR THE MEETING OR UNANIMOUS ACTION IS REQUIRED OF THE VOTING BOARD MEMBERS. ANY CREDIT UNION EMPLOYEE, DIRECTOR, OFFICER, OR SPOUSE WHO IS ASSOCIATED *WITH, OR HOLDS A MATERIAL** OWNERSHIP INTEREST IN ANOTHER FINANCIAL INSTITUTION, TRADES ASSOCIATION OR RELATED BUSINESS WILL FILE AN ANNUAL DISCLOSURE STATEMENT WITH THE PRESIDENT OR BOARD CHAIRMAN WITHIN 30 DAYS OF JANUARY 1, THE START OF EMPLOYMENT OR TAKING OFFICE. ANY APPARENT CONFLICT OF INTEREST DISCLOSED BY THE STATEMENT WILL BE RESOLVED BY THE PRESIDENT OR BOARD PERSONNEL COMMITTEE AND THE INDIVIDUAL. * AS A DIRECTOR, OFFICER OR EMPLOYEE ** DEFINED IN TERMS OF DOLLARS AS $5,000.00 OR MORE. NOTE: REPORTING MECHANISMS WILL INCLUDE: EMPLOYEES TO THE MANAGER, MANAGEMENT TO THE CHAIRMAN AND OTHERS TO THE SECRETARY OF THE BOARD. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF DIRECTORS APPROVES THE PRESIDENT'S COMPENSATION. THIS APPROVAL IS NOTED IN THE BOARD MINUTES. FORM 990, PART VI, SECTION C, LINE 19 FINANCIAL STATEMENTS, CONFLICT OF INTEREST POLICY AND GOVERNING DOCUMENTS ARE AVAILABLE UPON REQUEST FOR THE SAME PERIOD OF DISCLOSURE AS SET FORTH IN SECTION 6104(D). FORM 990 - SHORT YEAR INITIAL FORM 990 CENTRICTY CREDIT UNION CHANGED FROM A FEDERAL TO STATE CHARTER, EFFECTIVE JULY 1, 2017. THEREFORE THE CREDIT UNION IS FILING ITS INITIAL FORM 990 FOR THE SHORT PERIOD JULY 1 - DECEMBER 31, 2017.