2017-11-07T11:04:21-06:00 2016-12-31 390758449 Wipfli LLP PO Box 8010 Wausau WI 544028010 990 2016-01-01 390945701 CoVantage Credit Union COVA 7156274336 723 6th Avenue PO Box 107 Antigo WI 544090107 DOUG ANDERSON Cheif Financial Officer 7156274336 2017-11-06 1 Mary A Coates CPA P00134220 7158453111 2017-11-06 50.50.56.238 2017-11-06 11:07:17 CS P DA39A3EE5E6B4B0D3255BFEF95601890AFD80709 41ABCD53C4B0AAEE285E84ABDCCA064939346133 2016 2018-03-14 21:41:22Z Douglas Anderson 723 6th Avenue PO Box 107 Antigo WI 544090107 162454353 0 2157 X WWW.COVANTAGECU.ORG X 1953 WI A COOPERATIVE, NONPROFIT CORPORATION, INCORPORATED UNDER WISCONSIN STATE LAW TO ENCOURAGE THRIFT AMONG ITS MEMBERS, CREATE A SOURCE OF CREDIT AT A FAIR AND REASONABLE COST, AND PROVIDE OPPORTUNITY FOR ITS MEMBERS TO IMPROVE THEIR ECONOMIC AND SOCIAL CONDITIONS. 9 9 403 0 56683 0 0 0 49529667 55472547 1694646 2894353 164020 189803 51388333 58556703 149483 351209 0 0 16739355 18276927 0 0 0 19984167 24646318 36873005 43274454 14515328 15282249 1238473925 1366110547 1097750805 1210747327 140723120 155363220 A COOPERATIVE, NONPROFIT CORPORATION, INCORPORATED UNDER WISCONSIN STATE LAW TO ENCOURAGE THRIFT AMONG ITS MEMBERS, CREATE A SOURCE OF CREDIT AT A FAIR AND REASONABLE COST, AND PROVIDE OPPORTUNITY FOR ITS MEMBERS TO IMPROVE THEIR ECONOMIC AND SOCIAL CONDITIONS. 0 0 COVANTAGE HAS 92,824 MEMBERS, AND FOR THOSE LOOKING TO SAVE, COVANTAGE STRIVES TO PAY DIVIDEND RATES THAT ARE ABOVE MARKET RATES, EVEN IN THESE FLAT ECONOMIC RATE ENVIRONMENT. AS OF DECEMBER 31, 2016, COVANTAGE WAS PAYING AN ANNUAL PERCENTAGE RATE OF 0.40% ON REGULAR SHARE ACCOUNTS WHEN MANY OTHER FINANCIALS CONTINUED TO SIGNIFICANTLY DROP THEIR RATES AS THE ECONOMIC CONDITIONS CONTINUED TO DETERIORATE. OUR MINIMUM BALANCE OF ONLY $10 CONTINUED TO BE MAINTAINED, WHICH HELPED MANY MEMBERS IN TIMES OF HARDSHIP. MEMBERS WERE NOT ONLY ABLE TO RECEIVE THE BENEFIT OF HIGHER THAN AVERAGE RATES DURING POOR ECONOMIC CONDITIONS, BUT COVANTAGE STILL REWARDED MEMBERS WITH AN ADDITIONAL $2,552,452 IN PATRONAGE PAYMENTS IN 2016. COVANTAGE CONTINUES TO OFFER COST-FRIENDLY PRODUCTS TO OUR MEMBERS. WE NOT ONLY DO THIS THROUGH OUR COMPETITIVE RATES, BUT ALSO BY GOING ABOVE AND BEYOND TO HELP THOSE IN NEED. WE CONTINUE TO OFFER COST-FRIENDLY OPTIONS TO PAYDAY LENDERS SUCH AS KWIK CASH OVERDRAFT PROTECTION LOANS WITH NO SERVICE CHARGE OR TRANSFER FEE, COURTESY PAY CHECKING ACCOUNT SERVICES ALSO WITHOUT HEFTY FEES, IN ADDITION TO REWARD CREDIT CARDS WITH VERY COMPETITIVE INTEREST RATES. OTHER LOW-COST OPTIONS INCLUDE OUR OWN PAYDAY ADVANCE LOANS IN ADDITION TO SHARE-SECURED CREDIT CARDS AND OTHER CREDIT BUILDER LOANS FOR THOSE MEMBERS THAT NEED TO REBUILD CREDIT. FOR THOSE LOOKING FOR HOME OWNERSHIP, COVANTAGE ALSO OFFERS ITS COVANTAGE CREATES HOMES MORTGAGE PROGRAM TO HELP THOSE THAT MIGHT NEED ASSISTANCE WITH A DOWN PAYMENT OR NEEDED HOME REPAIRS. COVANTAGE ALSO STRIVES TO SUPPORT FINANCIAL LITERACY, INCLUDING PROVIDING ACCEL CREDIT COUNSELING AS A FREE SERVICE TO OUR MEMBERS TO ASSIST WITH BUDGETING, UNDERSTANDING CREDIT REPORTS, MONEY MANAGEMENT, AND DEBT REPAYMENT. THIS FREE SERVICE SAVES MEMBERS $25-$50 PER MONTH THAT IS COMMONLY CHARGED BY OTHER CREDIT COUNSELING AGENCIES. IN ADDITION, COVANTAGE OFFERS COMMUNITY EDUCATION EVENTS AND PROMOTES FINANCIAL LITERACY TO STUDENTS THROUGH KIDZ CREDIT UNIONS OPERATED THROUGH LOCAL MIDDLE SCHOOLS. 0 0 0 0 0 0 0 0 0 1 0 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 1 1 1 1 0 1 39418 0 1 403 1 1 1 0 0 0 0 0 0 0 0 0 X 9 9 0 0 0 0 1 1 1 1 1 0 0 1 1 0 0 1 1 1 1 0 X CHARLIE ZANAYED PRESIDENTCEO 7156274336 723 SIXTH AVE ANTIGO WI 54409 CHARLES DALLAS DIRECTOR 2.00 0.00 X 3250 0 0 BOB LAMOVEC DIRECTOR 2.00 0.00 X 2750 0 0 ROBERT MACINTOSH DIRECTOR 2.00 0.00 X 3250 0 0 Dwight Nelson DIRECTOR (Thru February) 2.00 0.00 X 500 0 0 PAUL PAYANT DIRECTOR 2.00 0.00 X 3250 0 0 SUSAN THORSHEIM DIRECTOR 2.00 0.00 X 3250 0 0 janeLLE MARKGRAF creDIT COMMITTEE 2.00 0.00 X 3250 0 0 MATT KOLLING CHAIRPERSON 3.00 0.00 X X 3250 0 0 LEE SILER VICE-CHAIRPERSON 2.00 0.00 X X 3250 0 0 KAREN NOVAK TREASURER 2.00 0.00 X X 3250 0 0 EUGENE SHAWANO SECRETARY 2.00 0.00 X X 3250 0 0 BRIAN PRUNTY CEO 40.00 0.00 X 499770 0 40918 CHARLES ZANAYED President 40.00 1.00 X 251837 0 39037 DOUGLAS ANDERSON CHIEF FINANCIAL OFFICER 40.00 3.00 X 203947 0 30719 ROBERT VAN ABEL CHIEF INFORMATION OFFICER 40.00 0.00 X 183754 0 30159 STEVE WILDER CHIEF COMMERCIAL OFFICER 40.00 0.00 X 189401 0 22397 SHERRY AULIK SVP ADMINISTRATIVE OFFICER 40.00 3.00 X 183556 0 33493 STACY BOUCHE CHIEF MORTGAGE LENDING OFF 40.00 0.00 X 124964 0 28611 Brett Lee Chief Retail Officer 40.00 0.00 X 59640 0 6900 Brian Millar VP Member Solutions 40.00 0.00 X 122848 0 22118 BRYAN ERMELING VP SOUTHERN REGION 40.00 0.00 X 109228 0 23094 RHONDA NORRBOM VP COMMERCIAL LENDING 40.00 0.00 X 107529 0 27303 Vicki Perrot VP Chief Consumer Lending Officer 40.00 0.00 X 105466 0 22780 Dan Hanson VP COMMERCIAL LENDING 40.00 0.00 X 103844 0 8859 2278284 0 336388 12 0 1 0 0 INTEREST ON LOANS 522100 41895520 41895520 CREDIT AND DEBIT CARD INTERCHANGE 522200 5400504 5353905 46599 SERVICE FEES 522100 5075935 5065851 10084 OTHER INCOME 524298 1695975 1695975 CUNA INSURANCE INCOME 522100 1404613 1404613 55472547 2718003 2718003 126004 126004 63799 0 63799 63799 63799 102451000 1623000 102204497 1693153 246503 -70153 176350 -70153 246503 58556703 55409510 56683 3090510 351209 1961601 11127964 894946 3177785 1114631 99989 167831 9371 868882 1553682 807889 1794913 238508 132123 11 2062508 361305 DIVIDENDS PAID ON MEMBE 7764858 PROVISION FOR LOAN LOSS 3408332 LOAN SERVICING EXPENSE 3323902 2052214 43274454 7765822 8523641 26265618 41792330 40435 256682 961135288 1055740338 884838 1089159 40660154 12203853 26777787 28456301 157227424 156629049 34470000 48135000 23906713 25488047 1238473925 1366110547 4626974 5111001 1093123831 1205636326 1097750805 1210747327 X 0 0 0 0 140723120 155363220 140723120 155363220 1238473925 1366110547 X 15282249 -619426 -22723 X X 0 1 X 1 0 4839653 4839653 25720128 6561571 19158557 10100373 5642282 4458091 28456301 SHARE DRAFTS 173992741 REGULAR SHARES 333142673 MONEY MARKET SHARES 339454456 SHARE CERTIFICATES 234679401 IRA/KEOUGH ACCOUNTS 111646371 OTHER SHARES 10528282 NONMEMBER DEPOSITS 2192402 1205636326 X Part X, Line 2: The Credit Union has filed tax returns in the past for activities they have deemed taxable and has a minimal net operating loss carryforward as of the 2016 calendar year. The taxing authorities have the ability to assess taxes, penalties and interest for any years for which no tax return was filed. In the opinion of management, any liability resulting from taxing authorities imposing income taxes on the net taxable income from activities potentially deemed to be unrelated to the Credit Union's exempt purpose is not expected to have a material effect on the Credit Union's financial position or results of operations. The Credit Union evaluated its tax positions and determined no uncertain tax positions exist as of December 31, 2016. The Credit Union's 2012 through 2016 tax years are open for examination by federal and state taxing authorities. 1 Covantage Cares 723 6th Ave PO Box 107 Antigo WI 54409 811056981 501(c)(3) 192859 General Support SHAWANO COUNTRY VISION 1263 S Main St Shawano WI 54166 390741103 501(c)(6) 10000 General support Wausau Events 407 Grant St Wausau WI 54403 391612386 501(c)(3) 9000 General Support Wausau Central Wisconsin Convention & Visitors Bureau 219 Jefferson St Wausau WI 54403 391909766 501(c)(6) 7500 General Support United FCS 611 S 32nd Ave Wausau WI 54401 391979102 Government 8590 General Support Elcho Cross Country Ski PO Box 38 Elcho WI 54428 391678494 501(c)(3) 5000 General Support Community Health Foundation 112 E 5th Ave Antigo WI 54409 391304761 501(c)(3) 5000 General Support 5 2 Part I, Line 2: THE ORGANIZATION MONITORS THE USE OF THEIR GRANT FUNDS CLOSELY. X X X X 0 0 0 BRIAN PRUNTY CEO 455526 0 42520 0 1724 0 21027 0 19891 0 540688 0 0 0 CHARLES ZANAYED President 232812 0 18651 0 374 0 20418 0 18619 0 290874 0 0 0 DOUGLAS ANDERSON CHIEF FINANCIAL OFFICER 184313 0 18578 0 1056 0 16212 0 14507 0 234666 0 0 0 ROBERT VAN ABEL CHIEF INFORMATION OFFICER 164189 0 17191 0 2374 0 13776 0 16383 0 213913 0 0 0 STEVE WILDER CHIEF COMMERCIAL OFFICER 170892 0 16956 0 1553 0 13182 0 9215 0 211798 0 0 0 SHERRY AULIK SVP ADMINISTRATIVE OFFICER 166367 0 16383 0 806 0 14969 0 18524 0 217049 0 0 0 STACY BOUCHE CHIEF MORTGAGE LENDING OFF 113205 0 11535 0 224 0 10384 0 18227 0 153575 0 0 0 Form 990, Part VI, Section A, line 6 COVANTAGE CREDIT UNION IS OWNED AND OPERATED BY ITS 92,824 MEMBERS AND A VOLUNTEER BOARD OF DIRECTORS. A SAVINGS ACCOUNT WITH A MINIMAL $10 DEPOSIT MEETS THE REQUIREMENT OF BEING A MEMBER-OWNER JUST AS LONG AS THEY MEET ONE OF THE OTHER MEMBERSHIP REQUIREMENTS SUCH AS RESIDING IN THE CHARTERED AREA, A FAMILY MEMBER IS ALREADY A MEMBER, ARE A MEMBER OF SERVO FS COOPERATIVE IN ANTIGO, OR ARE A STUDENT/ALUMNI OF A POST-SECONDARY SCHOOL IN MARATHON COUNTY. OUR MEMBER-OWNERS BENEFIT FROM BELONGING TO COVANTAGE THROUGH LOWER LOAN RATES, HIGHER SAVINGS RATES, FEWER FEES, IN ADDITION TO THE INTRODUCTION OF NEW PRODUCTS AND OTHER INCENTIVES. Form 990, Part VI, Section A, line 7a THE BOARD OF DIRECTORS ARE ELECTED BY THE MEMBERSHIP UTILIZING THEIR ONE VOTE PER MEMBER. Form 990, Part VI, Section A, line 7b THE MEMBERS WOULD NEED TO APPROVE DECISIONS SUCH AS CHANGE OF NAME OR A MERGER DECISION. Form 990, Part VI, Section B, line 11b THE BOARD OF DIRECTORS IS PRESENTED WITH A COPY OF FORM 990 AT A MONTHLY BOARD MEETING, WHICH ALLOW THEM TO REVIEW IT PRIOR TO FILING WITH THE INTERNAL REVENUE SERVICE. Form 990, Part VI, Section B, line 12 All employees, in addition to directors and credit committee members. No director is allowed to become an employee, or vice-versa, while either employed or servicing on the board, or within one year after their termination/ending of board term. In regards to lending, all employee loans are reviewed to ensure no conflicts of interest have occurred within the transaction. Any potential conflicts are reported to the board for review. Any potential conflicts are reviewed by the SVP Commercial lending and then reported to the board of directors. Should a conflict of interest arise, it would be acted upon on a case-by-case matter, with appropriate repercussions taken as found appropriate by CoVantage CU. Form 990, Part VI, Section B, line 15 THE PROCESS OF DETERMINING COMPENSATION FOR OFFICERS INCLUDING DOUG ANDERSON, STEVE WILDER, ROBERT VAN ABEL, SHERRY AULIK, STACY BOUCHE, BRYAN ERMELING, CHARLES ZANAYED, BRIAN MILLAR, RHONDA NORRBOM, BICKI PERROT, DAN HANSON, MICHELE BRETTINGEN, KARLA HODGKINS, DANA WEIGEL, KATHERINE STEFFES, BRAD VAN DORF AND BRIAN PRUNTY (ALSO CEO), INCLUDE AN ANNUAL COMPARABILITY SURVEY BASED OFF OF DATA FROM OTHER CREDIT UNIONS OF SIMILAR ASSET SIZE TO COVANTAGE. THIS DATA IS USED TO CREATE AN INDUSTRY AVERAGE FOR EACH POSITION. THE MIDPOINT OF OUR PAYGRADE IS TARGETED TO BE COMPARABLE TO THAT INDUSTRY AVERAGE. THESE SURVEYS ARE COMPLETED ANNUALLY, BEGINNING IN SEPTEMBER/OCTOBER. THE NEW SALARY AMOUNTS ARE THEN APPROVED BY THE BOARD IN NOVEMBER FOR THE UPCOMING YEAR. SALARIES ARE THEN ADJUSTED ON EACH INDIVIDUAL'S ANNUAL REVIEW DATE. FOR THOSE INDIVIDUALS LISTED, THIS PROCESS WAS LAST COMPLETED IN 2014 FOR THE 2015 CALENDAR YEAR. Form 990, Part VI, Section C, line 19 COVANTAGE CREDIT UNION MAKES ITS GOVERNING DOCUMENTS, IN ADDITION TO ITS CONFLICT OF INTEREST POLICY, AVAILABLE TO THE PUBLIC UPON REQUEST. FINANCIAL STATEMENTS ARE AVAILABLE BY VIEWING THE NCUA 5300 CALL REPORT OR BY OBTAINING AN ANNUAL STATEMENT BROCHURE AVAILABLE IN THE LOBBIES OF ALL COVANTAGE CREDIT UNION BRANCHES. Form 990, Part XI, line 9: OTHER COMPREHENSIVE INCOME -148,649. Transition Properties - Consolidated Statement -1,258. Covantage Cares - Consolidated Statement 127,184. Form 990, Part XII, Line 2c: NO CHANGE IN THE PROCESS FROM THE PRIOR YEAR. Transition Properties LLC 723 6th Avenue PO Box 107 Antigo WI 544090107 461713416 Own and manage other real estate owned by CoVantage Credit Union. WI -1258 39739 CoVantage Credit Union Covantage Cares Foundation INc 723 6th Avenue PO Box 107 Antigo WI 544090107 811056981 Provide Financial Assistance to Individuals & Organizations WI 501(c)(3) Line 7 1 0 1 0 0 0 0 0 0 0 0 0 1 0 1 1 0 0 0 0 Covantage Cares Foundation Inc B 192859 Fair Market Value