2017-11-15T07:57:49-06:00 2016-12-31 420714325 RSM US LLP 801 NICOLLET MALL SUITE 1100 MINNEAPOLIS MN 55402 990 2016-01-01 953442691 PREMIER AMERICA CREDIT UNION PREM 8187724021 19867 PRAIRIE STREET CHATSWORTH CA 91311 BRAD CUNNINGHAM SVP/CFO 8187724021 2017-11-13 1 GERALD B KISSELL P00092658 6123324300 108.171.131.187 2017-11-13 08:13:58 CS P 01563F10D6676BDC9B96404AA3206AA292B808E6 5AB5DFEC54AF030231DDAA57F2AFD57D98013E0B 2016 2017-02-10 21:41:12Z JOHN MERLO 19867 PRAIRIE STREET CHATSWORTH CA 91311 117026809 0 1526 X WWW.PREMIERAMERICA.COM X 1957 CA A COOPERATIVE ORGANIZED FOR THE PURPOSE OF PROMOTING THRIFT AND SAVINGS AMONGST ITS MEMBERS. 11 10 365 14 868220 -108140 0 0 69069751 77662192 3998141 5452204 310290 265 73378182 83114661 0 81137 9355790 11121642 27899819 27295602 0 0 0 21249526 22839149 58505135 61337530 14873047 21777131 2147511074 2289454177 1936758969 2056875946 210752105 232578231 X A COOPERATIVE ORGANIZED FOR THE PURPOSE OF PROMOTING THRIFT AND SAVINGS AMONGST ITS MEMBERS, CREATING A SOURCE OF CREDIT FOR THEM AT RATES OF INTEREST SET BY THE BOARD OF DIRECTORS, AND PROVIDING AN OPPORTUNITY FOR THEM TO USE AND CONTROL THEIR OWN MONEY ON A DEMOCRATIC BASIS IN ORDER TO IMPROVE THEIR ECONOMIC AND SOCIAL CONDITIONS. AS A COOPERATIVE, PREMIER AMERICA CREDIT UNION CONDUCTS ITS BUSINESS FOR THE MUTUAL BENEFIT AND GENERAL WELFARE OF ITS MEMBERS WITH THE EARNINGS, SAVINGS, BENEFITS, OR SERVICES OF THE CREDIT UNION BEING DISTRIBUTED TO ITS MEMBERS AS PATRONS. 0 0 THE CREDIT UNION ENCOURAGED AND PROMOTED SAVINGS AND ACQUIRED 8,492 NEW MEMBERS IN 2016. TOTAL MEMBERSHIP STOOD AT 99,138 AS OF DECEMBER 31, 2016 WHILE DEPOSIT BALANCES GREW BY $125 MILLION COMPARED TO THE PREVIOUS YEAR, AND THE ORGANIZATION CONTINUED TO PAY MEMBERS FAVORABLE DIVIDEND RATES ON THEIR SAVINGS. THE CREDIT UNION MET MORTGAGE NEEDS OF FIRST TIME HOME BUYERS AND REFINANCING NEEDS OF EXISTING HOMEOWNERS, ALLOWING THEM TO TAKE ADVANTAGE OF LOWER INTEREST RATES. LOWER INTEREST RATES WERE MADE POSSIBLE BY BEING A FNMA MORTGAGE LOAN SELLER AND SERVICER. DURING THE YEAR, THE ORGANIZATION GRANTED 348 REAL ESTATE LOANS AND HOME EQUITY LINES OF CREDIT TOTALING $423 MILLION TO ITS MEMBERS. PREMIER AMERICA CU PROVIDED EDUCATIONAL INFORMATION ON DEPOSIT AND LOAN PRODUCTS AND SERVICES AND HOSTED 42 WORKSHOPS ATTENDED BY 578 MEMBERS, ON SUCH TOPICS AS LONG TERM CARE PLANNING, LIFE INSURANCE, TRUST AND ESTATE PLANNING, USING APPLE DEVICES FOR MOBILE BANKING, FIRST TIME HOME BUYING, SOCIAL SECURITY AND RETIREMENT, ONLINE BANKING AND FINANCIAL LITERACY. THE ORGANIZATION PARTICIPATED IN OR SPONSORED 63 COMMUNITY OUTREACH EVENTS AND CHARITABLE ACTIVITIES THAT REACHED APPROXIMATELY 90,000 PARTICIPANTS. 0 0 1 0 0 0 0 0 0 1 0 0 0 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 52799 0 1 365 1 1 1 0 0 0 0 0 X 11 10 0 0 0 0 1 1 1 1 1 0 1 1 1 1 1 1 1 1 1 1 0 CA X LINDA MARQUEZ 8187724021 19867 PRAIRIE STREET CHATSWORTH CA 91311 JOHN M MERLO PRESIDENT & CEO 40.00 X X 7300376 0 38566 LARRY COLSON CHAIR 1.00 X X 2021 0 0 WILLIAM COLE VICE CHAIR 1.00 X X 1543 0 0 GARY HOLMEN SECRETARY/TREASURER 1.00 X X 1739 0 0 JAMES ANDERSEN DIRECTOR 1.00 X 835 0 0 JOHN DE VERE JR DIRECTOR 1.00 X 2073 0 0 KURT FORD DIRECTOR 1.00 X 871 0 0 ERIC GOLDNER DIRECTOR 1.00 X 1979 0 0 S LAWRENCE HOKE DIRECTOR 1.00 X 0 0 0 LARRY MARTIN DIRECTOR 1.00 X 1601 0 0 ROGER LUBIG DIRECTOR 1.00 X 1585 0 0 W BRAD CUNNINGHAM SENIOR VP, CFO 40.00 X 373250 0 238507 MARJORIE MCNAUGHT SENIOR VP, LENDING & COLLECTIONS 40.00 X 3054054 0 880888 DONNA MCNEELY SENIOR VP, INVESTMENTS & INSURANCE SERVICES 40.00 X 370858 0 183080 TONI DANIELS SENIOR VP, ADMINISTRATION 40.00 X 327295 0 166922 GLEN CHRZAS SENIOR VP, SYSTEMS & TECHNOLOGY 40.00 X 276581 0 90491 MARIANNE BLITSCH DIRECTOR, COMMUNITY RELATIONS 40.00 X 290306 0 411622 KIRK JOSEPH BOWREN DIRECTOR OF SPONSOR RELATIONS 40.00 X 246962 0 13199 THOMAS NEUHAUS DIRECTOR OF COMMUNITY RELATIONS 40.00 X 238014 0 307304 JAMES RITTER VP, COMMERCIAL LOAN SERVICES 40.00 X 196421 0 34132 JAMES GLYNN DIRECTOR FOR COMMUNITY RELATIONS 40.00 X 192666 0 241161 12881030 0 2605872 26 0 1 0 NTR CONSTRUCTION CO 7500 TOPANGA CANYON BLVD 2ND FLR CANOGA PARK CA 91303 OFFICE AND BRANCH REMODELS 2047651 ROYAL STAFFING AGENCY 14011 VENTURA BLVD 214-W SHERMAN OAKS CA 91423 TEMPORARY EMPLOYEES 572301 STARNET DATA DESIGN INC 2659 TOWNSGATE RD STE 227 WESTLAKE CA 91361 PHONE & IT EQUIPMENT/NETWORK SERVICE & M 543321 FINANCIAL STATEMENT SERVICE INC 3300 SOUTH FAIRVIEW ST SANTA ANA CA 92704 STATEMENT PRINTING/MAILING 508104 XO COMMUNICATIONS SERVICES LLC 13865 SUNRISE VALLEY DR HERNDON VA 20171 DISASTER RECOVERY SERVICES/HOTSITE 398469 25 INCOME FROM MEMBER LOANS 522100 61410724 61410724 SERVICE CHARGES & OTHER FEES 522100 5352000 5132655 219345 INTERCHANGE INCOME 522100 4361300 4361300 PROVISION FOR LOAN LOSS RECOVERY 522100 3050000 3050000 INVESTMENT BROKERAGE COMMISSIONS 523000 1981250 1981250 1506918 858043 648875 77662192 4968479 4968479 128512 128247 265 265 265 31443188 2824438 31356730 2427171 86458 397267 483725 483725 83114661 76793972 868220 5452469 81137 11121642 12468624 9250591 14995 4069292 1492100 474948 319636 175950 1520660 7472198 3257029 203773 2582154 284265 5500 389284 7193 1645789 193341 LOAN PROCESSING EXPENSE 2349410 CORE DEPOSIT PREMIUM AM 1052153 GOODWILL AMORTIZATION 122960 782906 61337530 350225661 265953759 4627843 4508332 1475128906 1710185671 2301586 2856929 31667424 14854237 17933826 16813187 203216800 223732400 54000936 29428657 8872170 7697056 31203346 28278186 2147511074 2289454177 23363952 18165791 1913395017 2038710155 1936758969 2056875946 X 0 0 0 0 210752105 232578231 210752105 232578231 2147511074 2289454177 21777131 48995 0 X 0 1 X 1 0 5500 5500 5500 1 JACQUI IRWIN FOR STATE ASSEMBLY PO BOX 378 CAMARILLO CA 93010 4000 CHRISTY SMITH FOR STATE ASSEMBLY 24307 MAGIC MOUNTAIN PARKWAY 304 VALENCIA CA 91355 500 ROBERTH HERTZBERG FOR SENATE 1100 O STREET 200 SACRAMENTO CA 95814 1000 PART I-A, LINE 1: THE CREDIT UNION MAKES CONTRIBUTIONS TO SUPPORT CANDIDATES OR POLITICAL ACTION COMMITTEES PROMOTING CREDIT UNION CAUSES. 3731592 3731592 13834761 6792543 7042218 5847788 2823824 3023964 8253283 5237870 3015413 16813187 MEMBERS' SHARES 2038710155 2038710155 X 80064661 0 80064661 3050000 3050000 83114661 58287530 0 58287530 3050000 3050000 61337530 PART X, LINE 2: AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2016 AND 2015, MANAGEMENT HAS DETERMINED THAT THERE ARE NO MATERIAL UNCERTAIN TAX POSITIONS REQUIRING RECOGNITION IN THE FINANCIAL STATEMENTS. PART XI, LINE 4B - OTHER ADJUSTMENTS: RECOVERY OF PROVISION FOR LOAN LOSS 3,050,000. PART XII, LINE 4B - OTHER ADJUSTMENTS: RECOVERY OF PROVISION FOR LOAN LOSS 3,050,000. 1 AMERICAN CANCER SOCIETY 50 N HILL STE 200 PASADENA CA 91106 131788491 501(C)(3) 7250 GENERAL SUPPORT AND RELAY FOR LIFE SPONSORSHIP CHILDREN'S MIRACLE NETWORK HOSPITALS 205 WEST 700 SOUTH SALT LAKE CITY UT 84101 870387205 501(C)(3) 15000 GENERAL SUPPORT HABITAT FOR HUMANITY OF SAN FERNANDOSANTA CLARITA VALLEYS 21031 VENTURA BLVD 610 WOODLAND HILLS CA 91364 954290935 501(C)(3) 11000 GENERAL SUPPORT 3 PART I, LINE 2: GRANTS ARE GIVEN TO ORGANIZATIONS BASED ON CREDIT UNION INDUSTRY RELATIONSHIPS AND COMMUNITY RELEVANCE IN THE FORM OF CASH AND EVENT SPONSORSHIPS. UNDER THE PAY IT FORWARD PROGRAM OF THE CREDIT UNION, CASH DONATIONS OF $250 EACH ARE GIVEN TO LOCAL NON-PROFIT CHARITABLE ORGANIZATIONS NOMINATED BY CREDIT UNION MEMBERS. GRANTS EXCEEDING $250 ARE GIVEN ONLY TO WELL-KNOWN ESTABLISHED CHARITABLE ORGANIZATIONS WHOSE ACTIVITIES ARE COMMON KNOWLEDGE AND RECOGNIZED IN THE COMMUNITY SUCH AS THE AMERICAN CANCER SOCIETY, CHILDREN'S MIRACLE NETWORK HOSPITALS, HABITAT FOR HUMANITY, GIRLS AND BOYS SCOUTS OF AMERICA LOCAL TROOPS, AMERICAN RED CROSS, AND OTHER SIMILAR ORGANIZATIONS. X X X 1 1 X X X 1 1 0 JOHN M MERLO PRESIDENT & CEO 606020 0 260644 0 6433712 0 13250 0 25721 0 7339347 0 0 0 W BRAD CUNNINGHAM SENIOR VP, CFO 281550 0 91700 0 0 0 232226 0 9635 0 615111 0 213692 0 MARJORIE MCNAUGHT SENIOR VP, LENDING & COLLECTIONS 396610 0 142860 0 2514584 0 869314 0 11979 0 3935347 0 416000 0 DONNA MCNEELY SENIOR VP, INVESTMENTS & INSURANCE S 279014 0 91844 0 0 0 183080 0 1345 0 555283 0 165976 0 TONI DANIELS SENIOR VP, ADMINISTRATION 245942 0 81353 0 0 0 161458 0 5820 0 494573 0 144474 0 GLEN CHRZAS SENIOR VP, SYSTEMS & TECHNOLOGY 221804 0 54777 0 0 0 71333 0 19486 0 367400 0 55540 0 MARIANNE BLITSCH DIRECTOR, COMMUNITY RELATIONS 290306 0 0 0 0 0 401834 0 10117 0 702257 0 391742 0 KIRK JOSEPH BOWREN DIRECTOR OF SPONSOR RELATIONS 146962 0 0 0 100000 0 12329 0 1041 0 260332 0 0 0 THOMAS NEUHAUS DIRECTOR OF COMMUNITY RELATIONS 238014 0 0 0 0 0 285769 0 21802 0 545585 0 274294 0 JAMES RITTER VP, COMMERCIAL LOAN SERVICES 196421 0 0 0 0 0 0 0 35532 0 231953 0 0 0 JAMES GLYNN DIRECTOR FOR COMMUNITY RELATIONS 192666 0 0 0 0 0 217077 0 24318 0 434061 0 207814 0 PART I, LINE 1A FIRST CLASS TRAVEL - THE CREDIT UNION WILL PAY FOR FIRST CLASS TRAVEL ONLY WHEN FLYING TIME FOR A PARTICULAR FLIGHT IS FIVE HOURS OR MORE. TRAVEL FOR COMPANIONS - THE CREDIT UNION WILL PAY FOR THE SPOUSE OR ONE COMPANION'S PLANE FARE FOR OUT OF TOWN OFFICIAL TRAVELS (CONFERENCES), HOTEL ACCOMODATIONS (SHARED ROOM) AND MEALS. A 1099-MISC IS FILED WHEN THE TOTAL EXPENSES INCURRED FOR THE COMPANION REACHES THE REPORTABLE AMOUNT. TAX INDEMNIFICATION AND GROSS UP PAYMENTS - THE CREDIT UNION GROSSES UP FOR TAX ON CERTAIN NON-CASH BENEFITS REPORTED IN THE RECIPIENT'S W-2. PART I, LINES 4A-B KIRK BOWREN WAS SEPARATED FROM THE CREDIT UNION AS PART OF A MERGER AGREEMENT IN 2016 AND RECEIVED A $100,000 SEVERANCE PAYMENT. THE FOLLOWING INDIVIDUALS PARTICIPATED IN A NONQUALIFIED RETIREMENT PLAN: JOHN M. MERLO MARJORIE MCNAUGHT W. BRAD CUNNINGHAM TONI DANIELS DONNA MCNEELY GLEN CHRZAS MARIANNE BLITSCH THOMAS NEUHAUS JAMES GLYNN THE FOLLOWING INDIVIDUALS RECEIVED A 457(F) DISTRIBUTION IN 2016: JOHN MERLO - $6,399,393 MARJORIE MCNAUGHT - $2,494,874 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 THE DRAFT FORM 990 PREPARED BY THE TAX ACCOUNTANT IS REVIEWED BY SENIOR MANAGEMENT IN THE FOLLOWING ORDER: VP/CONTROLLER, SVP/CHIEF FINANCIAL OFFICER, PRESIDENT AND CHIEF EXECUTIVE OFFICER, AND FINALLY, THE BOARD OF DIRECTORS. QUESTIONS, COMMENTS AND CORRECTIONS ARE ADDRESSED AT EACH STAGE OF THE REVIEW BEFORE THE FINAL REPORT IS FILED BY THE TAX PREPARER FOR THE CREDIT UNION. FORM 990, PART VI, SECTION B, LINE 12C THE CONFLICT OF INTEREST POLICY IS CONTAINED IN THE CODE OF RESPONSIBILITY AND ETHICS THAT EACH EMPLOYEE IS REQUIRED, ANNUALLY, TO ACKNOWLEDGE. VIA WRITTEN POLICY, ALL EMPLOYEES AND OFFICIALS ARE MADE AWARE OF THE CREDIT UNION'S COMPLIANCE REQUIREMENTS INCLUDING, BUT NOT LIMITED TO, THE CONFLICTS OF INTEREST POLICY. STANDARD CREDIT UNION PROCEDURES AND REQUIREMENTS ARE CONSISTENTLY APPLIED TO ANY BUSINESS TRANSACTION BY DIRECTORS, OFFICERS, AND EMPLOYEES. IF A DECISION IS REQUIRED REGARDING A BUSINESS TRANSACTION THAT COULD POTENTIALLY RISE TO A PERCEPTION OF A CONFLICT OF INTEREST, THE INVOLVED PARTY WILL RECUSE HIM OR HERSELF FROM DISCUSSION AND REVIEW OF THE TRANSACTION. TRANSACTIONS INVOLVING INDIVIDUAL ACCOUNTS ARE MONITORED BY THE INTERNAL AUDITOR ON A REGULAR BASIS. FORM 990, PART VI, SECTION B, LINE 15 EXTENSIVE ANNUAL SURVEYS ARE CONDUCTED FOR KEY POSITIONS IN THE CREDIT UNION INCLUDING, BUT NOT LIMITED TO, TOP MANAGEMENT AND KEY EMPLOYEES. THESE SURVEYS ARE PROVIDED BY PROFESSIONAL COMPENSATION ANALYSTS WHO WORK DIRECTLY WITH DATA WITHIN THE FINANCIAL INDUSTRY FIELD. THESE SURVEYS PROVIDE TOTAL COMPENSATION INFORMATION THAT RANGES FROM BROAD MACRO ISSUES TO SPECIFIC ELEMENTS OF TOTAL COMPENSATION STRUCTURES. FORM 990, PART VI, SECTION C, LINE 19 UNAUDITED FINANCIAL STATEMENTS ARE POSTED MONTHLY IN ALL BRANCHES. THE ANNUAL REPORT CONTAINING AUDITED FINANCIAL STATEMENTS IS AVAILABLE AT THE CREDIT UNION'S WEBSITE AND DISTRIBUTED TO ATTENDING MEMBERS DURING ANNUAL MEETINGS. GOVERNING DOCUMENTS AND CONFLICT OF INTEREST POLICY ARE AVAILABLE UPON REQUEST FOR THE SAME PERIOD OF DISCLOSURE AS SET FORTH IN SECTION 6104(D).