2017-11-13T11:10:24-06:00 2016-12-31 382492570 DOEREN MAYHEW 305 WEST BIG BEAVER ROAD TROY MI 48084 990 2016-01-01 381418001 1199 CORNERSTONE COMMUNITY FINANCIAL CREDIT UNION 1199 2483409310 2955 UNIVERSITY DRIVE AUBURN HILLS MI 48326 HEIDI KASSAB CEO 2483409310 2017-11-13 1 JOSEPH ZITO CPA P00648440 2482443000 50.235.194.18 2017-11-13 12:09:56 ES P 062293E64DF58CF8D35332F263D6456F83B37FCF 062293E64DF58CF8D35332F263D6456F83B37FCF 2016 2017-02-10 21:41:12Z HEIDI KASSAB 2955 UNIVERSITY DR AUBURN HILLS MI 48326 13763979 0 1359 X WWW.CCFINANCIAL.COM X 1951 MI WE ARE COMMITTED TO BEING A LEADING COMMUNITY-FOCUSED CREDIT UNION THAT IS THE CORNERSTONE TO HELPING MEMBERS ACHIEVE THEIR FINANCIAL GOALS. 7 7 99 8 27568 -36234 0 0 13593655 13613175 121453 123236 1515831 27568 15230939 13763979 0 0 0 0 4046919 4219164 0 0 0 7694433 8267760 11741352 12486924 3489587 1277055 262087430 272282111 230814526 239622346 31272904 32659765 WE ARE COMMITTED TO BEING A LEADING COMMUNITY-FOCUSED CREDIT UNION THAT IS THE CORNERSTONE TO HELPING MEMBERS ACHIEVE THEIR FINANCIAL GOALS. 0 0 PROVIDED OVER 52,000 LOANS TO OUR MEMBERS TOTALING OVER $94 MILLION. OPENED OVER 3,900 NEW MEMBER ACCOUNTS. INCREASED MEMBER SHARE BALANCES BY $7.8 MILLION. 0 0 0 0 0 0 0 0 0 1 0 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 3670 0 1 99 1 1 1 0 0 0 0 0 X 7 7 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 X DAVID BRANDT 2483731438 2955 UNIVERSITY DRIVE AUBURN HILLS MI 48326 LEO MOSES CHAIRMAN 10.00 X 0 0 0 TIM MCGLINCHEY VICE CHAIRMAN 5.00 X 0 0 0 RICHARD MACKIE TREASURER 5.00 X 0 0 0 CHRIS BAKER SECRETARY 5.00 X 0 0 0 MELVIN LEE DIRECTOR 5.00 X 0 0 0 TIM GREEN DIRECTOR 5.00 X 0 0 0 JOHN ELSE DIRECTOR 5.00 X 0 0 0 HEIDI KASSAB CEO 40.00 X 323314 0 30530 RICHARD MILLER CFO 40.00 X 63283 0 11052 DAVID BRANDT CFO 40.00 X 72646 0 5804 CHRIS MANGENO VP LENDING AND COLLECTIONS 40.00 X 114698 0 19527 TONYA DUPREE VP RETAIL DELIVER 40.00 X 114402 0 1126 688343 0 68039 3 0 1 0 APCOR CONSTRUCTION AND DEVELOPMENT 22316 HARPER AVE ST CLAIR SHORES MI 48080 BRANCH GENERAL CONTRACTOR 612175 VISA PO BOX 4521 CAROL STREAM IL 601974251 CREDIT/DEBIT CARD SERVICES 321753 JACK HENRY AND ASSOCIATES PO BOX 609 MONET MO 65708 CORE DATA PROCESSOR 188788 CO-OP FINANCIAL SERVICES 9692 HAVEN AVE RANCHO CUCAMONGA CA 91730 SHARED BRANCHING/ATM NETWORK 169323 US SIGNAL 201 IONIA AVE SW GRAND RAPIDS MI 49503 IT SERVICES 141820 10 LOAN INCOME 522100 9821454 9821454 FEE INCOME 522100 3791721 3791721 13613175 123236 123236 NON-MEMBER ATM FEES 525990 24902 24902 FINANCIAL SERVICES INCOME 525990 2183 2183 INSURANCE 524298 483 483 27568 13763979 13613175 27568 123236 X 506629 2751597 142856 529691 288391 111351 77691 19685 663799 502559 707545 467831 85616 11951 1539314 44264 475956 54855 PROVISION FOR LOAN LOSS 1430647 DEBIT/CREDIT EXPENSES 783502 LOAN SERVICING 707093 MAINTENANCE 208075 376026 12486924 1920998 2072122 17959827 7855550 1516330 1892347 217852147 236743731 592657 625966 16605736 6529911 7604860 10075825 9769430 8114597 1262600 1367800 94620 79870 3513961 3454303 262087430 272282111 1526822 2362682 13000000 10000000 216287704 227259664 230814526 239622346 X 0 0 0 0 31272904 32659765 31272904 32659765 262087430 272282111 1277055 109806 0 X X 0 1 X 1 0 2043939 2043939 8508226 2154409 6353817 142483 101071 41412 5222329 4027030 1195299 688759 247401 441358 10075825 MEMBER SHARES 227259664 227259664 X 13763979 0 13763979 0 13763979 12486924 0 12486924 0 12486924 PART X, LINE 2: CORNERSTONE COMMUNITY FINANCIAL CREDIT UNION IS EXEMPT, BY STATUTE, FROM FEDERAL INCOME TAXES ON INCOME RELATED TO THE EXEMPT PURPOSE OF THE CREDIT UNION. 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 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. IN LIGHT OF THE TAMS, 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 OPERATIONS. THE CREDIT UNION'S OPEN AUDIT PERIOD IS FOR THE THREE YEAR PERIOD ENDED DECEMBER 31, 2016. X 1 1 X X X X X 0 1 0 HEIDI KASSAB CEO 254691 0 68623 0 0 0 19617 0 10913 0 353844 0 0 0 PART I, LINE 4B HEIDI KASSAB PARTICIPATES IN A 457(F) PLAN. THERE WERE NO DISTRIBUTIONS DURING 2016. FORM 990, PART VI, SECTION A, LINE 6 ALL ACCOUNT HOLDERS ARE REFERRED TO AS MEMBERS. FORM 990, PART VI, SECTION A, LINE 7A THE CREDIT UNION MEMBERSHIP ELECTS THE BOARD OF DIRECTORS WHICH GOVERN THE OPERATIONS OF THE CREDIT UNION. 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 FORM 990 WILL BE SUBMITTED TO THE BOARD OF DIRECTORS FOR REVIEW PRIOR TO SUBMISSION. FORM 990, PART VI, SECTION B, LINE 12C ACCOUNT RELATIONSHIPS ARE MONITORED BY THE INTERNAL AUDITOR. ANY BUSINESS RELATIONSHIPS WOULD BE REVIEWED BY THE CEO OR CHAIRMAN AS APPLICABLE. FORM 990, PART VI, SECTION B, LINE 15 AN INDEPENDENT CONSULTANT IS USED IN THE REVIEW PROCESS OF THE CEO. THE BOARD REVIEWS THE REVIEW AND COMPENSATION LEVELS. ALL OTHER EMPLOYEES ARE REVIEWED BY THEIR SUPERVISOR AND REVIEWS ARE APPROVED BY THE CEO. FORM 990, PART VI, SECTION C, LINE 19 THE CREDIT UNION'S CONFLICT OF INTERESTT POLICY AND GOVERNING DOCUMENTS ARE NOT MADE AVAILABLE TO THE PUBLIC. FINANCIAL STATEMENTS ARE AVAILABLE UPON REQUEST. FORM 990, PART IX, LINE 24E ATM EXPENSES 181,048. MISCELLANEOUS EXPENSES 102,501. TRAINING/DEVELOPMENT/EDUCATION 92,477. FORM 990, PART XII, LINE 2C: THE ORGANIZATION HAS A COMMITTEE THAT ASSUMES RESPONSIBILITY FOR THE OVERSIGHT OF THE AUDIT OF ITS FINANCIAL STATEMENTS AND THE SELECTION OF AN INDEPENDENT ACCOUNTANT. THIS PROCESS HAS NOT CHANGED FROM PREVIOUS YEARS.