2017-11-15T17:25:01-06:00 2016-12-31 420714325 RSM US LLP 515 S FLOWER STREET 41ST FLOOR LOS ANGELES CA 90071 990 2016-01-01 951184903 SAN DIEGO COUNTY CREDIT UNION SAND 8777322848 6545 SEQUENCE DRIVE SAN DIEGO CA 92121 ASHLEE MICALE CFO 8777322848 2017-11-14 1 JAMES P SWEENEY P01263012 2133304800 108.171.131.186 2017-11-14 10:12:15 PS P 55EACC757510CB90ED481CCF86EA6B65F7DFD797 DD997115FD3B9DC77B2D784617AB5F2F1AA6F3F5 2016 2017-02-10 21:41:12Z TERESA HALLECK 6545 SEQUENCE DRIVE SAN DIEGO CA 92121 287255782 0 X WWW.SDCCU.COM X 1938 CA STATE CHARTERED CREDIT UNION PROVIDING FINANCIAL SERVICES TO MEMBERS 11 10 1010 11 2863419 -2158406 0 0 215807492 240055613 25442635 29049212 9811255 18150957 251061382 287255782 0 0 0 0 61345254 64242326 0 0 0 101829797 116874319 163175051 181116645 87886331 106139137 7169792526 7901403748 6176187887 6801660054 993604639 1099743694 A NOT-FOR-PROFIT CREDIT UNION WHOLLY OWNED BY ITS MEMBERS 0 0 PROVIDE LOAN PRODUCTS AND SERVICES TO MEMBERSHIP PROVIDE DEPOSIT PRODUCTS AND SERVICES TO MEMBERSHIP PROVIDE OTHER FINANCIAL SERVICES TO MEMBERSHIP 0 0 0 0 0 0 0 0 0 1 0 1 0 1 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 74402 0 1 1010 1 1 1 0 0 0 0 0 X 11 10 0 0 0 0 1 1 1 1 1 0 1 1 0 1 1 1 0 1 1 1 0 CA AZ X MS ASHLEE MICALE CFO 8777322848 6545 SEQUENCE DRIVE SAN DIEGO CA 92121 ILAN AWERBUCH DIRECTOR 1.00 X 1986 0 0 PATRICIA HONEYCUTT DIRECTOR 1.00 X 0 0 0 RICHARD COLLINS DIRECTOR 1.00 X 0 0 0 STEVE REUEL DIRECTOR 1.00 X 8997 0 0 SHIRLEY JACKSON DIRECTOR 1.00 X 0 0 0 LAURIE LEVENSON DIRECTOR 1.00 X 696 0 0 CHRISTOPHER HART DIRECTOR 1.00 X 0 0 0 LINDE HOTCHKISS DIRECTOR 1.00 X 0 0 0 KEN VAN RIPER DIRECTOR 1.00 X 0 0 0 HEATHER BENJAMIN DIRECTOR 1.00 X 0 0 0 TERESA HALLECK CEO & PRESIDENT 40.00 X X 1231055 0 1734741 ASHLEE N MICALE EXECUTIVE VP & CFO 40.00 X 372388 0 39435 CHITRAPHOL T VONGSAWAD COO 40.00 X 461842 0 135165 HEATHER E MOSHIER EXECUTIVE VP - IT 40.00 X 374267 0 230993 DALE TURNER EVP - REAL ESTATE 40.00 X 349557 0 31007 NATHAN S SCHMIDT EVP - MARKETING & BUSINESS 40.00 X 304862 0 39764 MICHELLE PAGNI EVP - HUMAN RESOURCES 40.00 X 320185 0 52331 PATRICK COSGROVE EVP - CONSUMER LENDING 40.00 X 336518 0 49577 PATRICIA ZERVIC SVP, REAL ESTATE 40.00 X 227690 0 16752 MICHAEL CORPUZ SVP, BUSINESS LENDING 40.00 X 239318 0 17195 BRADLEY BATES DIRECTOR OF INTERNAL AUDIT 40.00 X 227854 0 20201 CAROLYN KISSICK SVP, OPS & CARD SERVIES 40.00 X 236586 0 15877 MARC A MATHEWS VP - BUSINESS LOAN ORIGINA 40.00 X 312408 0 13500 ROD CALVAO FORMER DIRECTOR & CEO 1.00 X 425000 0 -3787446 5431209 0 -1390908 16 1 1 0 SHEPPARD MULLIN RICHTER & HAMPTON LLP 333 SOUTH HOPE ST 43RD FL LA CA 90071 LEGAL SERVICES 3676209 NETWORK VIGILACE LLC 12121 SCRIPPS SUMMIT DRIVE SAN DIEGO CA 60673 SOFTWARE 1552052 VACO LA JOLLA LLC 5410 MARYLAND WAY STE 460 BRENTWOOD TN 37027 TEMPORARY STAFFING SERVICES 1369573 ALLIED UNIVERSAL SECURITY SERVICES PO BOX 31001-2374 PASADENA CA 91110 SECURITY SERVICES 821712 MICROSOFT LICENSING GP 1950 N STEMMONDS FWY SUITE 5010 DALLAS TX 75207 SOFTWARE 564563 39 INTEREST INCOME 522100 184654565 184654565 FEE INCOME 522200 55401048 52537629 2863419 240055613 26210124 26210124 2839088 0 2839088 2839088 2839088 OTHER INCOME 522100 13260084 13260084 MEMBER INVESTMENT SERVICES 522100 2043485 2043485 PROVISION FOR LOANS 522100 1488908 1488908 1358480 1358480 18150957 287255782 255343151 2863419 29049212 6075362 46207313 1826431 6074089 4059131 3955599 731024 16560465 11820306 4252371 12283749 422958 37162056 10240172 1867138 LOAN PROCESSING EXPENSE 7527322 COMPUTER MAINTENANCE 5674617 EQUIPMENT EXPENSE 2485901 PROPERTY TAXES 1004604 886037 181116645 473388666 710638666 4974572970 5770398142 5067552 5346940 134615511 77899757 54654276 56715754 1434860997 1164171068 227248065 194133178 7169792526 7901403748 39209850 54262112 6136978037 6747397942 6176187887 6801660054 X 0 0 0 0 993604639 1099743694 993604639 1099743694 7169792526 7901403748 106139137 -82 0 X 0 1 X 1 0 12718959 12718959 36935201 19497827 17437374 16724530 8677290 8047240 65745303 49724640 16020663 2491518 2491518 56715754 GOVERNMENT INVESTMENTS 139265 F GOVERNMENT INVESTMENTS 823531803 C FHLB OF SAN FRANCISCO 40500000 F REPO AGREEMENTS INVESTMENT 300000000 F 1164171068 MEMBERS' SHARES 6447397942 CALIFORNIA TREASURY DEPOSITS 300000000 6747397942 X 287255782 0 287255782 0 287255782 181116645 0 181116645 0 181116645 PART X, LINE 2: THE CREDIT UNION IS A STATE-CHARTERED CREDIT UNION DESCRIBED IN INTERNAL REVENUE CODE (IRC) SECTION 501(C)(14). AS SUCH, THE CREDIT UNION IS EXEMPT FROM FEDERAL TAXATION OF INCOME DERIVED FROM THE PERFORMANCE OF ACTIVITIES THAT ARE IN FURTHERANCE OF ITS EXEMPT PURPOSES. HOWEVER, IRC SECTION 511 IMPOSES A TAX ON THE UNRELATED BUSINESS INCOME (AS DEFINED IN SECTION 512) DERIVED BY STATE-CHARTERED CREDIT UNIONS. MANY STATES HAVE SIMILAR LAWS. THE SPECIFIC APPLICATION OF SECTION 512 TO THE VARIOUS ACTIVITIES CONDUCTED BY STATE-CHARTERED CREDIT UNIONS HAS BEEN AT ISSUE FOR MANY YEARS. DURING 2007 THE INTERNAL REVENUE SERVICE (IRS) ISSUED A SERIES OF TECHNICAL ADVICE MEMORANDA (TAM) TO A NUMBER OF STATE-CHARTERED CREDIT UNIONS LOCATED THROUGHOUT THE COUNTRY. IN THESE TAMS, THE IRS RULED CERTAIN PRODUCTS AND SERVICES TO BE SUBJECT TO TAXATION AS UNRELATED BUSINESS INCOME. IN LIGHT OF THE TAMS, THE CREDIT UNION HAS ASSESSED ITS ACTIVITIES AND ANY POTENTIAL FEDERAL OR STATE INCOME TAX LIABILITY. MANAGEMENT HAS DETERMINED THAT NO LIABILITY EXISTS FROM FEDERAL OR STATE TAXATION OF ACTIVITIES DEEMED TO BE UNRELATED TO ITS EXEMPT PURPOSE. FASB CODIFICATION TOPIC 740, INCOME TAXES, PROVIDES GUIDANCE FOR HOW UNCERTAIN TAX POSITIONS SHOULD BE RECOGNIZED, MEASURED, DISCLOSED AND PRESENTED IN THE FINANCIAL STATEMENTS. THIS REQUIRES THE EVALUATION OF TAX POSITIONS TAKEN OR EXPECTED TO BE TAKEN IN THE COURSE OF PREPARING THE CREDIT UNION'S TAX RETURNS TO DETERMINE WHETHER THE TAX POSITIONS ARE MORE LIKELY THAN NOT TO BE SUSTAINED "WHEN CHALLENGED OR "WHEN EXAMINED" BY THE APPLICABLE TAX AUTHORITY. TAX POSITIONS NOT DEEMED TO MEET THE MORE-LIKELY-THAN-NOT THRESHOLD WOULD BE RECORDED AS A TAX EXPENSE AND LIABILITY IN THE CURRENT YEAR. FOR THE YEARS ENDED DECEMBER 31, 2016 AND 2015, MANAGEMENT HAS DETERMINED THAT THERE ARE NO MATERIAL UNCERTAIN TAX POSITIONS. X 1 1 X X X X 0 1 0 TERESA HALLECK CEO & PRESIDENT 768547 0 455440 0 7068 0 1727981 0 6760 0 2965796 0 0 0 ASHLEE N MICALE EXECUTIVE VP & CFO 317388 0 55000 0 0 0 31780 0 7655 0 411823 0 0 0 CHITRAPHOL T VONGSAWAD COO 361842 0 100000 0 0 0 114590 0 20575 0 597007 0 0 0 HEATHER E MOSHIER EXECUTIVE VP - IT 324267 0 50000 0 0 0 224337 0 6656 0 605260 0 0 0 DALE TURNER EVP - REAL ESTATE 299557 0 50000 0 0 0 25574 0 5433 0 380564 0 0 0 NATHAN S SCHMIDT EVP - MARKETING & BUSINESS 249862 0 55000 0 0 0 26202 0 13562 0 344626 0 0 0 MICHELLE PAGNI EVP - HUMAN RESOURCES 245185 0 75000 0 0 0 51207 0 1124 0 372516 0 0 0 PATRICK COSGROVE EVP - CONSUMER LENDING 236518 0 100000 0 0 0 33696 0 15881 0 386095 0 0 0 PATRICIA ZERVIC SVP, REAL ESTATE 217690 0 10000 0 0 0 9108 0 7644 0 244442 0 0 0 MICHAEL CORPUZ SVP, BUSINESS LENDING 209318 0 30000 0 0 0 9573 0 7622 0 256513 0 0 0 BRADLEY BATES DIRECTOR OF INTERNAL AUDIT 197854 0 30000 0 0 0 9106 0 11095 0 248055 0 0 0 CAROLYN KISSICK SVP, OPS & CARD SERVIES 196586 0 40000 0 0 0 9463 0 6414 0 252463 0 0 0 MARC A MATHEWS VP - BUSINESS LOAN ORIGINA 138004 0 174404 0 0 0 5544 0 7956 0 325908 0 0 0 ROD CALVAO FORMER DIRECTOR & CEO 0 0 0 0 425000 0 -3787446 0 0 0 -3362446 0 0 0 PART I, LINE 1A THE FOLLOWING DIRECTORS WERE PROVIDED BENEFITS AND REIMBURSEMENTS RELATING TO TRAVEL FOR COMPANIONS: ILAN AWERBUCH - $1,986 STEVE REUEL - $8,997 LAURIE LEVENSON - $696 THE FOLLOWING EMPLOYEES WERE PROVIDED BENEFITS AND REIMBURSEMENTS RELATING TO A CAR ALLOWANCE: CHITRAPHOL T. VONGSAWAD - $7,477 HEATHER E. MOSHIER - $5,400 NATHAN S. SCHMIDT - $5,400 PART I, LINE 4B SCHEDULE J, PART I, LINE 4B: SDCCU PROVIDES CERTAIN OFFICERS, DIRECTORS, KEY EMPLOYEES AND HIGHLY COMPENSATED EXECUTIVES WITH A SPLIT-DOLLAR SUPPLEMEMTAL EXECUTIVE RETIREMENT PLAN (SERP) TO AUGMENT RETIREMENT INCOME FOR THESE EMPLOYEES. AMOUNTS CREDITED TO PARTICIPANTS ARE EARNED ON AN ANNUAL BASIS AND BASED ON CERTAIN ACTUARIAL FACTORS. THE AMOUNTS ARE ALSO SUBJECT TO FORFEITURE IF CERTAIN EMPLOYMENT CONDITIONS AND VESTING PERIODS ARE NOT MET. FOR THE YEAR ENDING DECEMBER 31, 2016, THE INDIVIDUALS LISTED IN SCHEDULE J, PART II HAD AN AMOUNT RELATING TO THE SERP BENEFITS LISTED AS DEFERRED COMPENSATION LISTED IN COLUMN C: TERESA HALLECK - $1,717,381 CHITRAPHOL T. VONGSAWAD - $103,990 HEATHER E. MOSHIER - $213,737 ASHLEE N. MICALE - $21,547 DALE C. TURNER - $15,046 NATHAN S. SCHMIDT - $16,458 MICHELLE PAGNI - $40,607 PATRICK M. COSGROVE - $23,096 MARC A. MATHEWS - $(5,150) ROD CALVAO - $(4,112,446) THE FOLLOWING INDIVIDUALS RECEIVED THE FOLLOWING SERP PAYMENTS REPORTABLE AS COMPENSATION: ROD CALVAO - $425,000 FORM 990, PART VI, SECTION A, LINE 6 THE CREDIT UNION IS A NOT-FOR-PROFIT ORGANIZATION MADE UP OF MEMBERS. FORM 990, PART VI, SECTION A, LINE 7A MEMBERS MAY ELECT ALL MEMBERS OF THE BOARD OF DIRECTORS AND THE SUPERVISORY COMMITTEE. MEMBERS MAY NOMINATE CANDIDATES FOR THE BOARD THROUGH A PETITION PROCESS SET FORTH IN THE BYLAWS. A NOMINATION COMMITTEE ALSO NOMINATES CANDIDATES. IF MEMBERS FAIL TO NOMINATE A CANDIDATE FOR AN OPEN BOARD POSITION, THEN THE NOMINATION COMMITTEE'S CANDIDATE MAY BE APPOINTED TO THE BOARD WITHOUT AN ELECTION. FORM 990, PART VI, SECTION A, LINE 7B CERTAIN DECISIONS MADE BY THE CREDIT UNION'S BOARD OF DIRECTORS ARE SUBJECT TO REGULATORY OR MEMBERSHIP APPROVAL. FORM 990, PART VI, SECTION B, LINE 11B THE FORM 990 IS REVIEWED BY THE CHIEF EXECUTIVE OFFICER ("CEO") AND CHIEF FINANCIAL OFFICER ("CFO"), WHO CONSULT WITH EXTERNAL CPA FIRMS AND LEGAL COUNSEL AS NEEDED TO ENSURE THE ACCURACY AND SUFFICIENCY OF ALL RESPONSES. FORM 990, PART VI, SECTION B, LINE 12C THERE ARE REGULAR COMPLIANCE REVIEWS BY THE CREDIT UNION'S COMPLIANCE OFFICER AND A THIRD (3RD) PARTY VENDOR WHICH ADDRESSES COMPLIANCE WITH ALL CREDIT UNION POLICIES. IN ADDITION, REGULATORS AND CPA'S MONITOR COMPLIANCE DURING THEIR PERIODIC AND ANNUAL AUDITS. FORM 990, PART VI, SECTION B, LINE 15 HUMAN RESOURCES PARTICIPATES IN SURVEYS AND PROVIDES COMPARABILITY DATA ON COMPENSATION FOR KEY OFFICERS TO THE CEO. OUTSIDE PROFESSIONALS ALSO VALIDATE THE COMPENSATION DATA ON A PERIODIC BASIS. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION MAKES ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC BY COMPLYING WITH THE PUBLIC DISCLOSURE REQUIREMENTS SET FORTH IN THE REGULATIONS FOR IRC SECTION 6104 AT 26 C.F.R. SECTION 301.604 FRESH START REAL ESTATE LLC 6545 SEQUENCE DRIVE SAN DIEGO CA 92121 452981200 REAL ESTATE CA 120000 415502 SAN DIEGO COUNTY CREDIT UNION SD FINANCIAL GROUP LLC 6545 SEQUENCE DRIVE SAN DIEGO CA 92121 452980994 E-COMMERCE - INACTIVE CA 0 0 SAN DIEGO COUNTY CREDIT UNION