2017-11-15T07:41:14-06:00 2016-12-31 420714325 RSM US LLP 801 NICOLLET MALL SUITE 1100 MINNEAPOLIS MN 55402 990 2016-01-01 520284053 MUNICIPAL EMPLOYEES CREDIT UNION OF BALTIMORE INC MUNI 4107528313 ONE SOUTH STREET BALTIMORE MD 21202 NATALIE J WOOMER VP ACCOUNTING AND CONTROLLER 4107528313 2017-11-14 1 GERALD B KISSELL P00092658 6123324300 108.171.131.186 2017-11-14 12:29:08 CS P 01563F10D6676BDC9B96404AA3206AA292B808E6 5AB5DFEC54AF030231DDAA57F2AFD57D98013E0B 2016 2017-02-10 21:41:12Z MECU OF BALTIMORE INC JOHN HAMILTON ONE SOUTH STREET BALTIMORE MD 21202 190268398 0 X WWW.MECU.COM X 1936 MD MECU IS A CREDIT UNION WHICH PROVIDES A FULL ARRAY OF FINANCIAL SERVICES TO ITS MEMBER OWNERS. 10 10 384 0 481738 -113408 0 0 56175575 57685056 6194202 6660155 0 0 62369777 64345211 217686 290312 8342510 6339418 22503744 23759802 0 0 0 29012631 29384124 60076571 59773656 2293206 4571555 1182373984 1165151476 1056130553 1034688714 126243431 130462762 X TO PROVIDE HIGH QUALITY FINANCIAL SERVICES TO OUR MEMBERS AND OUTSTANDING SERVICE TO OUR COMMUNITIES THROUGH SOUND MANAGEMENT AND INNOVATION. 0 0 MECU MAKES A VARIETY OF TYPES OF LOANS INCLUDING MORTGAGE, HOME EQUITY, VEHICLE, CREDIT CARD AND UNSECURED LOANS AT VERY COMPETITIVE INTEREST RATES. THERE WERE 54,409 OUTSTANDING LOANS TOTALING $766 MILLION AT 12/31/16. IN 2016, MECU REFUNDED $1.3 MILLION OF THE INTEREST THAT ITS MEMBERS PAID ON LOANS DURING THE YEAR. IT WAS THE 35TH CONSECUTIVE YEAR THAT MECU HAS RETURNED MONEY TO ITS MEMBERS IN THE FORM OF A LOAN INTEREST REBATE. MECU PROVIDES ITS 114,000 MEMBERS WITH THE MEANS TO SAVE MONEY. MECU OFFERS SHARE SAVINGS, CHECKING, CERTIFICATES OF DEPOSIT, IRA AND MONEY MARKET ACCOUNTS. IN ADDITION TO PAYING VERY COMPETITIVE DIVIDEND AND INTEREST RATES ON ITS SAVINGS PRODUCTS, MECU ALSO PAID AN EXTRAORDINARY DIVIDEND TO ITS MEMBERS FOR THE LAST 35 CONSECUTIVE YEARS. MECU PAID $1.2 MILLION IN EXTRAORDINARY DIVIDENDS TO ITS MEMBERS IN 2016. MECU STRIVES TO OFFER PRODUCTS AND SERVICES DESIGNED TO IMPROVE THE ECONOMIC AND SOCIAL WELL BEING OF ALL MEMBERS FROM ALL SOCIAL-ECONOMIC BACKGROUNDS. MECU'S FIELD OF MEMBERSHIP DRAWS FROM BALTIMORE CITY, AN AREA THAT QUALIFIES AS AN UNDERSERVED/INVESTMENT AREA AS DEFINED BY THE NCUA. MECU IS COMMITTED TO MEMBER FINANCIAL EDUCATION. SOME OF THE PROGRAMS THAT MECU PROVIDES INCLUDE: DISCOUNTED MORTGAGE RATES THROUGH FIRST-TIME HOMEBUYER'S PROGRAMS AND BUY IN BALTIMORE LOANS, HOME BUYERS' WORKSHOPS, CREDIT REPAIR WORKSHOPS, BASICS OF MONEY MANAGEMENT; NEW EMPLOYEE AND PRE-RETIREMENT WORKSHOPS AND FREE CREDIT COUNSELING SERVICES THROUGH ACCEL, A GREENPATH, INC. AFFILIATE. MECU ALSO HAS TWO STUDENT-RUN BRANCHES AT HIGH SCHOOLS. MECU ACTIVELY PARTICIPATES IN COMMUNITY OUTREACH PROJECTS. SOME OF THE PROGRAMS THAT MECU PARTICIPATED IN DURING 2016 WERE JUNIOR ACHIEVEMENT, MEALS ON WHEELS, CHRISTOPHER'S PLACE, PARTNERSHIPS WITH 9 ELEMENTARY SCHOOLS, ADOPTING FAMILIES FOR THE HOLIDAYS, THE SALVATION ARMY ANGEL TREE, A MARYLAND PUBLIC TELEVISION TELETHON, CREDIT UNIONS FOR KIDS, DONATED OVER 6,000 BOOKS TO BALTIMORE CITY SCHOOL CHILDREN, HELD A GOLF TOURNAMENT TO RAISE MONEY FOR THE MECU FOUNDATION, THREW A PARTY FOR THE RESIDENTS AT A NURSING HOME, WORKED AT THE MARYLAND FOOD BANK AND FED PEOPLE IN NEED AT OUR DAILY BREAD. MECU ALSO WALKED IN THE ADA AND CYSTIC FIBROSIS WALK-A-THONS. IN ADDITION, MECU PROVIDED GRANTS TO BALTIMORE NEIGHBORHOODS FOR THE PURPOSE OF PRODUCING SPECIAL EVENTS. 0 0 0 0 0 0 0 1 0 1 1 0 1 1 1 1 0 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 31004 0 1 384 1 1 1 0 0 0 0 0 X 10 10 0 0 0 0 1 1 1 1 1 0 1 1 1 1 1 1 1 1 1 1 0 X NATALIE J WOOMER 4107528313 ONE SOUTH STREET BALTIMORE MD 21202 HERMAN WILLIAMS JR CHAIR 2.00 X X 26600 0 0 ROMAN CLARK SR VICE CHAIR 2.00 X X 24958 0 0 GARY MCLHINNEY SECRETARY 2.00 X X 25400 0 0 G LOUISE GREEN TREASURER 2.00 X X 27600 0 0 JOHN WALKER III DIRECTOR 1.50 X 15500 0 0 BENJAMIN MELI JR DIRECTOR 1.50 X 24300 0 0 KALIOPE PARTHEMOS DIRECTOR 0.50 X 8400 0 0 PEGGY PEACOCK DIRECTOR 1.50 X 18900 0 0 ERNEST GLINKA DIRECTOR 1.50 X 22042 0 0 DEBORAH MOORE-CARTER DIRECTOR 1.50 X 19800 0 0 LORETTA JOHNSON DIRECTOR 1.00 X 12000 0 0 JOHN HAMILTON CEO 50.00 X 455118 0 53526 ADRIAN JOHNSON SENIOR VP AND CFO 45.00 X 206023 0 27948 KATHY DAY SHELTON SR VP AND COO 45.00 X 186291 0 51377 PATRICIA ROBERTS SR VP OF BRANCH OPERATIONS 45.00 X 167017 0 50230 RICHARD SMITH VICE PRESIDENT OF LENDING 45.00 X 144678 0 7175 NATALIE WOOMER VP OF ACCOUNTING AND CONTROLLER 45.00 X 156090 0 28984 DENISE JONES-FRASIER VP OF OPERATIONS 45.00 X 129458 0 30805 CHRISTOPHER LUMLEY VP OF INFORMATION SERVICES 45.00 X 151753 0 57712 MICHELLE WILLIAMS VP OF HUMAN RESOURCES 45.00 X 142849 0 31739 1964777 0 339496 19 0 1 0 PSCU 560 CARILLON PARKWAY ST PETERSBERG FL 33716 DEBIT/CREDIT CARD PROCESSOR 2770275 FIS PO BOX 4535 CAROL STREAM IL 60197 DATA PROCESSOR/BILL PAYER 1877867 LENDING SOLUTIONS 2200 POINT BLVD SUITE 110 ELGIN IL 60123 LENDING CALL CENTER 629552 DOCUTRUST SERVICES INC PO BOX 771048 ORLANDO FL 328771048 MEMBER STATEMENT PRINTING & MAILING 591893 CO-OP FINANCIAL SERVICES 9692 HAVEN AVE RANCHO CUCAMONGA CA 91730 ATM NETWORK, SHARED BRANCHING, REMOTE DE 510852 19 INTEREST ON LOANS TO MEMBERS 522100 38848427 38848427 SERVICE CHARGES AND OTHER FEES 522100 14908653 14808368 100285 OTHER NONINTEREST INCOME 522100 3927976 3546523 381453 57685056 6372615 6372615 125992578 218149 125551044 372143 441534 -153994 287540 287540 64345211 57203318 481738 6660155 290312 6339418 1431371 15880535 2749245 2451117 1247534 283109 180786 365205 1182964 2311200 2392037 2965264 494416 283093 1517102 256114 PROVISION FOR LOAN LOSS 6914023 ATM/DEBIT CARD EXPENSE 4312711 LOAN SERVICING EXPENSE 2887841 MEMBER STATEMENT EXPENS 847935 2190324 59773656 17950210 12303813 34308159 22396896 5903807 14041730 642918793 753337078 1081934 1070081 21250477 10251913 5463522 10998564 415300921 289668826 237880 185020 59208758 61149468 1182373984 1165151476 12575405 16801290 295301 198013 1043259847 1017689411 1056130553 1034688714 X 0 0 0 0 126243431 130462762 126243431 130462762 1182373984 1165151476 X 4571555 89310 -441534 X 0 1 X 1 0 0 1 X 3001341 402726 2598615 6397456 2400588 3996868 11851680 7448599 4403081 10998564 AVAILABLE FOR SALE SECURITIES 284221826 F CERTIFICATES OF DEPOSIT 5447000 C 289668826 ACCRUED INTEREST RECEIVABLE 2817246 NCUSIF DEPOSIT 9771492 CASH SURRENDER VALUE OF LIFE INSURANCE 39663160 OTHER ASSETS 8104612 LOANS AVAILABLE-FOR-SALE 792958 61149468 MEMBERS' SHARES AND SAVINGS 1000722785 BORROWED FUNDS 15172771 CAPITAL LEASE OBLIGATION 1793855 1017689411 X 64499205 0 64499205 -153994 -153994 64345211 59927650 153994 153994 59773656 0 59773656 PART IV, LINE 2B: MECU HAS ESCROW FOR TWO SITUATIONS. 1 - $140,393 IN ESCROW THAT HAS BEEN COLLECTED FROM BUSINESSES FOR THEIR REAL ESTATE LOANS WITH MECU. THEY MAKE ESCROW PAYMENTS TO MECU THAT ARE USED TO PAY CERTAIN BILLS FOR THEM SUCH AS THEIR REAL ESTATE TAXES AND INSURANCE ON THE PROPERTY. 2 - $57,620 IN ESCROW FOR SITUATIONS WHERE IT CANNOT BE DETERMINED WHO OWNS THE LAND OR WHO GROUND RENT SHOULD BE PAID TO AT MORTGAGE SETTLEMENT, SO THE BUYER IS REQUIRED TO PAY 5 YEARS WORTH OF GROUND RENT AT SETTLEMENT. MECU HOLDS THESE FUNDS IN ESCROW TO PAY GROUND RENT ON BEHALF OF THE MEMBER AND IF THE SITUATION IS NOT RESOLVED AFTER 5 YEARS, THE MONEY GOES BACK TO THE MEMBER. PART X, LINE 2: MANAGEMENT HAS ASSESSED THE CREDIT UNION'S ACTIVITIES AND ANY POTENTIAL FEDERAL OR STATE INCOME TAX LIABILITY AND DETERMINED THAT THE CREDIT UNION HAS NO UNCERTAIN TAX POSITIONS THAT QUALIFY FOR EITHER RECOGNITION OR DISCLOSURE IN THE CONSOLIDATED FINANCIAL STATEMENTS. ADDITIONALLY, NO INTEREST AND PENALTIES HAVE BEEN RECORDED IN THE ACCOMPANYING CONSOLIDATED FINANCIAL STATEMENTS RELATED TO UNCERTAIN TAX POSITIONS. CURRENTLY, THE 2015, 2014, AND 2013 FEDERAL INCOME TAX RETURNS ARE OPEN FOR EXAMINATION BY THE IRS. THE FILING YEARS OPEN FOR EXAMINATION BY THE STATE, IF APPLICABLE, MAY BE EQUAL TO, GREATER THAN OR LESS THAN THE YEARS OPEN FOR EXAMINATION BY THE IRS. PART XI, LINE 4B - OTHER ADJUSTMENTS: LOSS ON SALE OF FIXED ASSETS RECLASSED FROM EXPENSES -153,994. PART XII, LINE 2D - OTHER ADJUSTMENTS: LOSS ON SALE OF FIXED ASSETS RECLASSED FROM EXPENSES 153,994. 1 AFRICAN AMERICAN CREDIT UNION COALITION PO BOX 392136 SNELLVILLE GA 30039 571091138 501(C)3 25000 TO INCREASE THE STRENGTH OF THE CREDIT UNION MOVEMENT. THE CREDIT UNION FOUNDATION OF MD & DC 8975 GUILFORD ROAD SUITE 190 COLUMBIA MD 21046 521749045 501(C)3 30850 SUPPORT CREDIT UNIONS AND THE COMMUNITIES THAT THEY SERVE. BALTIMORE OFFICE OF PROMOTION AND THE ARTS 10 E BALTIMORE ST 10TH FLOOR BALTIMORE MD 21202 900091850 501(C)3 100000 PROVIDE GRANTS FOR BALTIMORE CITY NEIGHBORHOODS. MECU FOUNDATION ONE SOUTH ST BALTIMORE MD 21202 261113703 501(C)3 10450 FURTHER EDUCATION OPPORTUNITIES IN BALTIMORE METRO AREA. BALTIMORE CASH CAMPAIGN 217 E REDWOOD ST SUITE 1500 BALTIMORE MD 21202 522278450 501(C)3 8000 PROMOTE FINANCIAL STABILITY FOR WORKING FAMILIES. MARYLAND CHAPTER OF CYSTIC FIBROSIS FOUNDATION 10626 YORK RD SUITE A COCKEYSVILLE MD 21030 131930701 501(C)3 10000 SEARCH FOR A CURE FOR CYSTIC FIBROSIS. 6 PART I, LINE 2: MECU HAS A COMMITTEE THAT MEETS AND DETERMINES WHAT CHARITABLE CONTRIBUTIONS WILL BE MADE. THE COMMITTEE SELECTS 501(C)3, PUBLIC CHARITIES, THAT BENEFIT THE CREDIT UNION MOVEMENT AND THE BALTIMORE COMMUNITY. X X X 1 1 0 JOHN HAMILTON CEO 398828 0 50000 0 6290 0 44630 0 11568 0 511316 0 0 0 ADRIAN JOHNSON SENIOR VP AND CFO 196733 0 8000 0 1290 0 19263 0 10670 0 235956 0 0 0 KATHY DAY SHELTON SR VP AND COO 177001 0 8000 0 1290 0 28453 0 24819 0 239563 0 0 0 PATRICIA ROBERTS SR VP OF BRANCH OPERATIONS 157037 0 8000 0 1980 0 35261 0 16759 0 219037 0 0 0 RICHARD SMITH VICE PRESIDENT OF LENDING 138568 0 4125 0 1985 0 2097 0 6818 0 153593 0 0 0 NATALIE WOOMER VP OF ACCOUNTING AND CONTROLLER 149341 0 5500 0 1249 0 21342 0 9779 0 187211 0 0 0 DENISE JONES-FRASIER VP OF OPERATIONS 122981 0 5500 0 977 0 30805 0 2214 0 162477 0 0 0 CHRISTOPHER LUMLEY VP OF INFORMATION SERVICES 142818 0 8500 0 435 0 34034 0 25871 0 211658 0 0 0 MICHELLE WILLIAMS VP OF HUMAN RESOURCES 136763 0 5500 0 586 0 24554 0 14720 0 182123 0 0 0 PART I, LINES 4A-B THE FOLLOWING INDIVIDUALS PARTICIPATED IN A NON-QUALIFIED RETIREMENT PLAN AND ALL COMPENSATION HAS BEEN PROPERLY REPORTED IN PART VII AND SCHEDULE J: ADRIAN JOHNSON - NO DISBURSEMENT IN 2016 JOHN HAMILTON - NO DISBURSEMENT IN 2016 KATHY DAY SHELTON - NO DISBURSEMENT IN 2016 PATRICIA ROBERTS - NO DISBURSEMENT IN 2016 NATALIE WOOMER - NO DISBURSEMENT IN 2016 DENISE JONES-FRASIER - NO DISBURSEMENT IN 2016 CHRISTOPHER LUMLEY - NO DISBURSEMENT IN 2016 MICHELLE WILLIAMS - NO DISBURSEMENT IN 2016 JOHN WALKER RECEIVED $11,000 IN SEVERANCE PAY IN 2016. 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 NATALIE WOOMER, VP OF ACCOUNTING AND CONTROLLER, REVIEWS THE COMPLETED FORM 990 IN DETAIL. SHE THEN GIVES THE TAX RETURN TO ALL BOARD MEMBERS AND THE CEO FOR THEIR REVIEW BEFORE THE TAX RETURN IS FILED. FORM 990, PART VI, SECTION B, LINE 12C AT THE BEGINNING OF EACH YEAR, EACH BOARD DIRECTOR, MECU EMPLOYEE AND SUPERVISORY AND CREDIT COMMITTEE MEMBER IS REQUIRED TO COMPLETE A CONFLICT OF INTEREST QUESTIONNAIRE. THE RESPONSES ARE REVIEWED BY MECU'S HUMAN RESOURCES DEPARTMENT TO VERIFY THAT EVERYONE IS IN COMPLIANCE WITH MECU'S CONFLICT OF INTEREST POLICY. FORM 990, PART VI, SECTION B, LINE 15 THE CEO AND OTHER TOP MANAGEMENT OFFICIALS RECEIVE AN ANNUAL PERFORMANCE REVIEW. BASED ON PERFORMANCE, THE EMPLOYEE MAY RECEIVE A MERIT INCREASE. COMPENSATION DATA FROM A COUPLE OF SOURCES IS REVIEWED TO DETERMINE THE EMPLOYEE'S SALARY. THESE SOURCES INCLUDE CREDIT UNION SALARY SURVEYS FROM CUES AND CUNA. FOR KEY EMPLOYEES OTHER THAN THE CEO, THE PERFORMANCE REVIEW DOCUMENT IS SIGNED BY THE CORRESPONDING DEPARTMENT HEAD AND THE VICE PRESIDENT OF HUMAN RESOURCES. THE CEO'S EVALUATION IS CONDUCTED BY THE BOARD OF DIRECTORS EACH YEAR AND IS BASED ON THE FOUR (4) FOLLOWING CRITERIA: FINANCIAL PERFORMANCE, STRATEGIC GOALS AND OBJECTIVES, EVALUATIONS COMPLETED BY THE BOARD MEMBERS AND COMMUNITY, INDUSTRY AND CIVIC INVOLVEMENT. THE CEO MEETS WITH THE BOARD TO DISCUSS HIS PERFORMANCE. THE BOARD VOTES ON ANY MERIT INCREASE AND/OR BONUS. A NEW CONTRACT IS SIGNED EACH YEAR REFLECTING HIS SALARY AND THE EXPECTATIONS OF THE POSITION. THE CONTRACT IS SIGNED BY THE BOARD CHAIR, BOARD SECRETARY, AND THE CEO. 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, PART XI, LINE 9: ADJUSTMENT FOR REALIZED GAINS ON INVESTMENT INCLUDED IN NET INCOME -441,534.