2017-11-20T14:39:08-06:00 2016-12-31 420714325 RSM US LLP 201 N HARRISON STREET SUITE 300 DAVENPORT IA 528011999 990 2016-01-01 366068452 VIBRANT CREDIT UNION VIBR 8003235109 P O BOX 1550 MOLINE IL 61265 RYAN SOEDT CHIEF FINANCIAL OFFICER 8003235109 2017-11-20 1 JOHN J ROMANO P00227323 5638884000 108.171.130.189 2017-11-20 14:38:33 CS P B876A155820338ED437F0CF2305A406FA7BE98CD B876A155820338ED437F0CF2305A406FA7BE98CD 2016 2017-02-10 21:41:12Z MATTHEW MCCOMBS P O BOX 1550 MOLINE IL 61265 31634969 0 3149 X WWW.VIBRANTCREDITUNION.ORG X 1935 IL WORKING TOGETHER TO IMPROVE THE ECONOMIC WELL-BEING AND QUALITY OF LIFE FOR ALL MEMBERS THROUGH EXCELLENT SERVICE. 8 7 221 8 1108431 0 0 0 17180444 18160616 1665010 4038473 7875703 8977276 26721157 31176365 23780 27958 0 0 9288774 11527018 0 0 0 15195000 13511303 24507554 25066279 2213603 6110086 545846879 581503822 492739921 521574806 53106958 59929016 WORKING TOGETHER TO IMPROVE THE ECONOMIC WELL-BEING AND QUALITY OF LIFE FOR ALL MEMBERS THROUGH EXCELLENT SERVICE. 0 0 PROVIDE CONSIDERABLE LOANS TO MEMBERS. TOTAL NUMBER OF CONSUMER AND MORTGAGE LOANS OUTSTANDING WAS 33,034. PROVIDED DEPOSITORY SERVICES TO APPROXIMATELY 38,978 MEMBERS. PROVIDED CREDIT CARD SERVICES TO APPROXIMATELY 13,552 MEMBERS. 0 0 0 0 0 0 0 1 0 1 0 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 1 0 0 0 1 37670 0 1 221 1 1 1 0 0 0 0 0 X 8 7 0 0 0 0 1 1 0 1 1 0 0 1 1 1 1 1 1 1 0 0 X MATTHEW MCCOMBS PRESIDENTCHIEF OPERATING OFFICER 8003235109 1900 52ND AVENUE MOLINE IL 612661550 TERRY BRAHM DIRECTOR 1.00 X 0 0 0 MIKE FRYER FORMER DIRECTOR 1.00 X 0 0 0 JULIE GERMERAAD JAMES VICE CHAIRMAN 1.00 X X 0 0 0 NICK KREMER DIRECTOR 1.00 X 0 0 0 MATTHEW MCCOMBS PRESIDENT/CHIEF EXECUTIVE OFFICER 40.00 X X 441465 0 39890 BRENT PETERSON DIRECTOR 1.00 X 0 0 0 ZACK SOTTOS DIRECTOR 1.00 X 0 0 0 NICK TARPEIN SECRETARY/TREASURER 1.00 X X 0 0 0 TERESA VANDYKE CHAIRMAN 1.00 X X 0 0 0 RYAN SOEDT CHIEF FINANCIAL OFFICER 40.00 X 118614 0 7652 STEVE DUCEY CHIEF EXPERIENCE OFFICER 40.00 X 322499 0 33782 SHELLEY GROVES CHIEF LOAN OFFICER 40.00 X 123995 0 8825 STEVE MCATEE CHIEF INFORMATION OFFICER 40.00 X 137645 0 28970 AARON OHLENSEHLE CUSO PRESIDENT 40.00 X 147332 0 24460 JON SEXTON CHIEF COMPLIANCE OFFICER 40.00 X 107192 0 31315 1398742 0 174894 7 0 1 0 CLOUD BAKERS 641 W LAKE SUITE 301 CHICAGO IL 60661 COMPUTER SUPPORT DEVELOPMENT 268320 DIEBOLD 1295 STATE STREET SPRINGFIELD MA 01111 SOFTWARE 232272 EVER GREEN LANDSCAPING ASSOCIATES 6924 ROUTE 150 COAL VALLEY IL 61240 LANDSCAPING 226130 WINDSTREAM PO BOX 9001013 LOUISVILLE KY 40201 TELECOMMUNICATIONS 197397 TRI-STATE SIDING 5216 SHERIDAN STREET SUITE 130 DAVENPORT IA 52806 BUILDING IMPROVEMENT 193800 21 LOANS INTEREST 522100 16889001 16889001 LOAN FEES 522100 1009507 1009507 ATM FEES 522100 262108 131772 130336 18160616 716337 716337 3780740 458604 3322136 3322136 3322136 CHECKING FEE INCOME 522200 2515638 2515638 OVERDRAFT CHARGES 522100 2089450 2089450 VISA CHARGE INCOME 522200 869827 869827 3502361 2524266 978095 8977276 31176365 26029461 1108431 4038473 27958 746129 8088116 402504 1548915 741354 27585 175125 853282 414931 1638966 948378 116980 74221 193058 1406355 178101 DIVIDENDS PAID TO MEMBE 2215161 SERVICE CHARGES & VISA 1445979 MISCELLANEOUS EXPENSE 790106 PROVISION FOR LOAN LOSS 720050 2313025 25066279 69094597 83206032 546467 370617 431363493 451912415 327578 732695 30294811 11106364 18660329 19188447 25854415 26093616 545846879 581503822 53521431 57504169 518472 542776 438700018 463527861 492739921 521574806 X 0 0 0 0 53106958 59929016 53106958 59929016 545846879 581503822 X 6110086 711972 X X 0 1 X 1 0 0 1 X 3383434 3383434 19643129 5765231 13877898 6476687 4898052 1578635 791561 443081 348480 19188447 MEMBER DEPOSIT ACCOUNTS 463527861 463527861 X PART IV, LINE 2B: VIBRANT CREDIT UNION COLLECTS AMOUNTS FROM MEMBERS WITH REAL ESTATE LOANS EACH MONTH VIA THEIR CONTRACTUAL PAYMENT SCHEDULE. THESE FUNDS ARE HELD IN ESCROW UNTIL THEY NEED TO BE DISBURSED IN ACCORDANCE WITH THE ESCROW INSTRUCTIONS FOR EACH MEMBER. AMOUNTS HELD IN ESCROW ARE FOR PROPERTY TAXES AND HOMEOWNER'S INSURANCE. PART X, LINE 2: THE CREDIT UNION IS EXEMPT FROM INCOME TAXES UNDER PROVISIONS OF THE INTERNAL REVENUE CODE AND STATES OF ILLINOIS AND IOWA TAX LAWS. MANAGEMENT HAS EVALUATED THE CREDIT UNION'S TAX POSITIONS AND CONCLUDED THAT THEY HAVE TAKEN NO UNCERTAIN TAX POSITIONS THAT WOULD REQUIRE ADJUSTMENTS TO THE FINANCIAL STATEMENTS. GENERALLY, THE CREDIT UNION IS NO LONGER SUBJECT TO U.S. FEDERAL OR STATE AND LOCAL INCOME TAX EXAMINATIONS BY TAX AUTHORITIES FOR YEARS BEFORE 2013. THE CREDIT UNION IS EXEMPT FROM MOST FEDERAL, STATE AND LOCAL INCOME TAXES UNDER THE PROVISIONS OF THE INTERNAL REVENUE CODE AND STATE TAX LAWS. THE CREDIT UNION IS A STATE-CHARTERED CREDIT UNION AS 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 AN ISSUE FOR MANY YEARS. IN 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. ALTHOUGH THESE TAMS HAVE NO PRECEDENTIAL VALUE, THEY SET FORTH THE IRS' POSITION THAT CERTAIN SOURCES OF INCOME ARE NOT RELATED TO THE EXEMPT PURPOSE OF A STATE-CHARTERED CREDIT UNION AND ARE SUBJECT TO UNRELATED BUSINESS INCOME TAX (UBIT). HOWEVER, COURT CASES HAVE RULED IN FAVOR OF CREDIT UNIONS AND CONCLUDED THAT THE SALE OF CERTAIN INSURANCE PRODUCTS AND THE SALE OF FINANCIAL PRODUCTS AND SERVICES TO MEMBERS ARE EXEMPT FROM UNRELATED BUSINESS INCOME TAX. IN LIGHT OF THE TAMS AND COURT CASES, THE CREDIT UNION HAS ASSESSED ITS ACTIVITIES AND ANY POTENTIAL FEDERAL OR STATE INCOME TAX LIABILITY. IN THE OPINION OF MANAGEMENT, ANY LIABILITY ARISING FROM FEDERAL OR STATE TAXATION OF ACTIVITIES DEEMED TO BE UNRELATED TO ITS EXEMPT PURPOSE IS NOT EXPECTED TO HAVE A MATERIAL EFFECT ON THE CREDIT UNION'S FINANCIAL CONDITION OR RESULTS OF OPERATION. THE CREDIT UNION BEGAN FILING INCOME TAX RETURNS FOR ITS UNRELATED BUSINESS INCOME BEGINNING WITH TAX YEAR ENDED DECEMBER 31, 2009. HOWEVER, THE TAXING AUTHORITIES HAVE THE ABILITY TO ASSESS TAXES, PENALTIES AND INTEREST FOR ANY YEARS PRIOR TO 2009 FOR WHICH NO TAX RETURN WAS FILED. X X 1 1 X X X 0 0 0 MATTHEW MCCOMBS PRESIDENT/CHIEF EXECUTIVE OFFICER 295508 0 137806 0 8151 0 18000 0 21890 0 481355 0 0 0 STEVE DUCEY CHIEF EXPERIENCE OFFICER 174005 0 148017 0 477 0 12836 0 20946 0 356281 0 0 0 STEVE MCATEE CHIEF INFORMATION OFFICER 130557 0 6325 0 763 0 8442 0 20528 0 166615 0 0 0 AARON OHLENSEHLE CUSO PRESIDENT 117876 0 29000 0 456 0 4221 0 20239 0 171792 0 0 0 PART I, LINE 1A VIBRANT CREDIT UNION PROVIDES THE FOLLOWING TO INDIVIDUALS REPORTED IN PART VII, SECTION A, LINE 1A: TRAVEL FOR COMPANIONS: THIS BENEFIT IS OFFERED TO THE TOP MANAGEMENT OFFICIAL OF THE ORGANIZATION, AND THE DOLLAR AMOUNT OF THE BENEFIT IS NOT INCLUDED IN REPORTABLE COMPENSATION FOR THE PARTICIPATING INDIVIDUAL. ONE OFFICER RECEIVED THIS BENEFIT IN 2016. HEALTH CLUB DUES: THIS BENEFIT IS OFFERED TO THE TOP MANAGEMENT OFFICIAL OF THE ORGANIZATION. THE DUES ARE INCLUDED IN THE REPORTABLE COMPENSATION FOR THE PARTICIPATING INDIVIDUAL. ONE OFFICER RECEIVED THIS BENEFIT IN 2016. MATTHEW MCCOMBS OFFICER MORTGAGE X 429300 370617 0 1 1 370617 FORM 990, PART VI, SECTION A, LINE 6 VIBRANT CREDIT UNION HAS MEMBERS THAT HAVE THE RIGHT TO ELECT THE MEMBERS OF THE GOVERNING BODY. FORM 990, PART VI, SECTION A, LINE 7A VIBRANT CREDIT UNION HAS MEMBERS THAT HAVE THE RIGHT TO ELECT THE MEMBERS OF THE GOVERNING BODY. FORM 990, PART VI, SECTION B, LINE 11B RSM US LLP, THE ACCOUNTING FIRM PREPARING THE 990 TAX RETURN FOR VIBRANT CREDIT UNION, WILL PRESENT THE FINAL FORM 990 TO THE BOARD OF DIRECTORS AND PROVIDE AN OVERVIEW OF THE INFORMATION REPORTED SHORTLY AFTER THE FILING OF THE 990. FORM 990, PART VI, SECTION B, LINE 12C EXECUTIVES, MANAGERS, AND EMPLOYEES MUST AVOID ANY CONFLICTS OF INTEREST BETWEEN THEMSELVES AND VIBRANT CREDIT UNION. SPECIFICALLY, NO EXECUTIVE, MANAGER, OR EMPLOYEE SHALL MAKE ANY INVESTMENT, ACCEPT ANY POSITION OR BENEFITS, PARTICIPATE IN ANY TRANSACTION OR BUSINESS ARRANGEMENT OR OTHERWISE ACT IN A MANNER THAT CREATES OR APPEARS TO CREATE A CONFLICT OF INTEREST WITH VIBRANT CREDIT UNION UNLESS SUCH PERSON MAKES FULL DISCLOSURE OF ALL FACTS AND CIRCUMSTANCES TO, AND OBTAINS THE PRIOR WRITTEN APPROVAL OF THE VICE PRESIDENT OF HUMAN RESOURCES. ADDITIONALLY, VIBRANT CREDIT UNION REQUIRES ALL INTERESTED PERSONS DICLOSE ANNUALLY ANY RELATIONSHIP THAT COULD GIVE RISE TO A CONFLICT. FORM 990, PART VI, SECTION B, LINE 15A IN JANUARY THE EXECUTIVE COMMITTEE COMPLETES THE PRESIDENT/CEO'S ANNUAL REVIEW BASED ON TWO SECTIONS: 1. OBJECTIVE FACTORS BASED ON VIBRANT CREDIT UNION'S FINANCIAL PERFORMANCE, AND 2. SUBJECTIVE FACTORS BASED ON HOW THE EXECUTIVE COMMITTEE FEELS THE PRESIDENT/CEO HAS PERFORMED THE DUTIES AND RESPONSIBILITIES OF HIS POSITION. THIS PROCESS RESULTS IN A SUMMARY SCORE THAT IS APPLIED TO A SALARY RANGE TABLE THAT DETERMINES THE YEAR END BONUS PERCENTAGE AND ANNUAL BASE PAY INCREASE OF THE PRESIDENT/CEO. THE ENTIRE PROGRAM WAS DEVELOPED BY BAUSCHKE AND ASSOCIATES. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION'S GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS ARE NOT MADE AVAILABLE TO THE PUBLIC. FORM 990, PART XI, LINE 9: EQUITY ACQUIRED IN SALT CREEK CREDIT UNION MERGER 711,972. FORM 990, PART XII, LINE 2C: THE ORGANIZATION'S FINANCIAL STATEMENTS ARE AUDITED ON A CONSOLIDATED BASIS BY AN INDEPENDENT ACCOUNTANT. FOR TAX YEAR 2016, THE ORGANIZATION'S FINANCIAL STATEMENTS ARE REPORTED ON A CALENDAR YEAR BASIS. YOUR INSURANCE SERVICES LLC 1900 52ND AVE MOLINE IL 61265 472114951 INSURANCE SERVICES IL 61334 337595 VIBRANT CREDIT UNION