2017-11-14T17:18:04-06:00 2016-12-31 410746749 CLIFTONLARSONALLEN LLP PO BOX 217 AUSTIN MN 55912 990 2016-01-01 390827305 MARINE CREDIT UNION MARI 6087911543 811 MONITOR STREET LA CROSSE WI 54603 BILL JAMES CFO 6087911543 2017-11-13 1 KAREN GRIES P00078514 5074347000 67.137.57.251 2017-11-13 15:20:59 CS P 9484E6C550CEFEA19C9729386319D1474AD693AD C43F11DC38FDB773C4BD4FBCA7AA9CEFA61E85E3 2016 2018-03-14 21:41:22Z SHAWN HANSON 811 MONITOR STREET LA CROSSE WI 54603 58580716 0 2157 X WWW.MARINECU.COM X CU 1949 WI WE WILL SERVE MORE OF THE UNDERSERVED WITH PRODUCTS, SERVICE, TIME AND GIVING. 7 6 560 6 419792 -21222 0 0 45757237 53663880 2186509 2268297 70636 0 48014382 55932177 0 0 1169690 1378875 23616619 28136710 0 0 0 13802680 16723790 38588989 46239375 9425393 9692802 625381681 689785890 559418609 614162153 65963072 75623737 WE WILL SERVE MORE OF THE UNDERSERVED WITH PRODUCTS, SERVICE, TIME AND GIVING. WE WILL INCREASE THE NUMBER AND PERCENTAGE OF CUSTOMERS AVAILING THEMSELVES OF A VARIETY OF HIGH QUALITY SERVICES. 0 0 DEPOSIT TAKING - MARINE CREDIT UNION ACTS AS A FINANCIAL INTERMEDIARY IN EACH OF THE COMMUNITIES IT SERVES. EACH OF OUR 60,203 MEMBERS HAS AT LEAST ONE SAVINGS ACCOUNT AND THESE MEMBERS HAVE OVER 40,152 CHECKING ACCOUNTS WITH MARINE. WE OFTEN PROVIDE THESE SERVICES AT A LOWER COST THAN WHAT WOULD OTHERWISE BE AVAILABLE. WE PROTECT OVER $420,244,618 OF INSURED FUNDS ON BEHALF OF OUR DEPOSITORS. CONSUMER LENDING - MARINE CREDIT UNION IS A FULL SERVICE CONSUMER LENDING INSTITUTION. IN 2016 WE GRANTED OVER 16,750 CONSUMER LOANS FOR A TOTAL OF OVER $180,948,562. THESE LOANS ARE USED BY OUR BORROWERS TO CONSOLIDATE DEBT, PURCHASE GOODS SUCH AS AUTOMOBILES AND RECREATIONAL VEHICLES AND TO FINANCE CONTINUING EDUCATION EXPENSES. THE TOTAL CONSUMER LOAN PORTFOLIO IS GREATER THAN $218,737,494. MORTGAGE LENDING - MARINE CREDIT UNION IS AN INTEGRAL PART OF THE COMMUNITIES WE SERVE BY PROVIDING OVER 1,177 LOANS TOTALING OVER $116,018,115. THESE LOANS ARE USED BY BORROWERS TO PURCHASE, REFINANCE OR IMPROVE THEIR HOMES. CURRENT MORTGAGE LOANS OUTSTANDING EXCEED $296,221,301. 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 1 1 1 0 1 13635 0 1 560 1 1 1 0 0 0 0 0 X 7 6 0 0 0 0 1 1 1 1 0 0 0 0 1 0 0 1 1 1 1 0 X BILL JAMES 6087911543 811 MONITOR STREET LA CROSSE WI 54603 TOM KNOTHE CHAIRMAN 10.00 0.00 X X 12000 0 0 WILLIAM SACIA VICE CHAIRMAN 1.00 0.00 X X 0 0 0 ROBERT WOLF TREASURER 1.00 0.00 X X 0 0 0 ROBERT CARNEY SECRETARY 1.00 0.00 X X 0 0 0 MARK REED DIRECTOR 1.00 0.00 X 0 0 0 STEVE ROSS DIRECTOR 1.00 0.00 X 0 0 0 RICHARD SWANTZ DIRECTOR 1.00 0.00 X 0 0 0 SHAWN L HANSON PRESIDENT/CEO 40.00 0.00 X 504292 0 28038 GARLAND KOCH CFO (LEFT 2016) 40.00 0.00 X 306304 0 16675 BILL JAMES CFO 40.00 0.00 X 94966 0 6272 TIM CRUCIANI EXECUTIVE VICE PRESIDENT 40.00 0.00 X 311688 0 28072 ADAM KEER COO 40.00 0.00 X 286834 0 50757 WILLIAM SCHIRMER CHIEF HUMAN RESOURCE OFFICER 40.00 0.00 X 185847 0 25984 KENNETH BROSSMAN SENIOR VP REGIONAL MANAGER 40.00 0.00 X 166248 0 30953 JASON COBB SENIOR VP OF OPERATIONS 40.00 0.00 X 207508 0 23630 JOHN GARTEN CLS PRESIDENT (LEFT 2016) 0.00 40.00 X 0 206321 19253 TROY MOEN VICE PRESIDENT OF OPERATIONS 40.00 0.00 X 162646 0 32231 GREGG MASHACK DIRECTOR OF PORTFOLIO MORTGAGE LENDING 40.00 0.00 X 150596 0 25407 GERALD CANON DISTRICT MANAGER 40.00 0.00 X 163904 0 24525 LISA DEML SENIOR VP ADMINISTRATION 40.00 0.00 X 162282 0 21966 2715115 206321 333763 26 0 1 0 MDT 30230 ORCHARD LAKE ROAD FARMINGTON HILLS MI 58334 CORE SYSTEM AND SUPPORT 1129149 3RT NETWORKS 3600 HWY 157 SUITE 2015 LA CROSSE WI 54601 IT CONSULTING 384847 FISERV 255 FISERV DRIVE BROOKFIELD WI 53045 GENERAL LEDGER SYSTEM AND SUPPORT 336060 TRANSUNION PO BOX 99506 CHICAGO IL 606939506 CREDIT REPORTS 260913 CORNERSTONE ADVISORS 7272 E INDIAN SCHOOL RD SUITE 40 SCOTTSDALE AZ 85251 CONSULTING 237722 6 LOAN INTEREST 522100 38055850 38055850 FEE INCOME 522100 15471615 15052080 419535 OTHER OPERATING INCOME 522100 136415 136415 53663880 764346 257 764089 2928617 1223873 2497139 151400 431478 1072473 1503951 1503951 55932177 53244345 419792 2268040 1378875 2286068 20385194 523137 3268710 1673601 62683 120132 3250802 466787 1994140 1721031 911468 554075 1387906 PROVISION FOR LOAN LOSS 3627230 LOAN SERVICING EXPENSE 1297367 MISCELLANEOUS OPERATING 1270623 MEMBER INSURANCE EXPENS 59546 46239375 84462019 85458245 17016456 10001926 9750000 16879271 452314663 516054562 28099295 28370410 33993113 16279393 16851432 17713720 8418303 7800664 8469513 7507092 625381681 689785890 8039160 6525372 14155 138644851 176964000 412734598 430658626 559418609 614162153 X 0 0 0 0 65963072 75623737 65963072 75623737 625381681 689785890 X 9692802 -32137 X 0 1 X 1 0 1 0 1054711 4428 1050283 1 X 3264987 3264987 18615633 7097364 11518269 514677 464377 50300 11275255 8717652 2557603 322561 322561 17713720 SHARE DRAFTS 85334900 REGULAR SHARES 126184128 MONEY MARKET SHARES 107405839 IRA/KEOGH ACCOUNT 7696052 SHARE CERTIFICATES 104037707 430658626 X PART IV, LINE 1B: MCU SERVICES SECONDARY MARKET LOANS FOR FHLB/MPF XTRA PROGRAM PART IV, LINE 2B: ESCROW ACCOUNTS WERE HELD AT BORROWER LEVEL FOR TAXES AND INSURANCE PART X, LINE 2: THE CREDIT UNION IS EXEMPT, UNDER INTERNAL REVENUE CODE SECTION 501(C)(14), FROM FEDERAL AND STATE INCOME TAXES. CERTAIN PRODUCTS AND SERVICES PROVIDED BY SELECT STATE CHARTERED CREDIT UNIONS HAVE BEEN DEEMED BY THE INTERNAL REVENUE SERVICE (IRS), IN TECHNICAL ADVICE MEMORANDUMS (TAMS) RELEASED IN 2007, TO BE UNRELATED TO THE SPECIFIC ENTITY'S EXEMPT PURPOSE. AS PRESENTED IN THE TECHNICAL ADVICE MEMORANDUMS THE NET TAXABLE INCOME FROM THESE PRODUCTS AND SERVICES WOULD BE SUBJECT TO INCOME TAXES. CREDIT UNIONS HAVE LITIGATED AGAINST THE IRS POSITIONS NOTED IN THE TAMS AND HAVE BEEN SUCCESSFUL IN HAVING COURTS DECLARE IN 2009 AND 2010 THAT REVENUE FROM INSURANCE PRODUCTS SOLD TO MEMBERS, HELPING THEM PROTECT THEIR FINANCIAL WELL-BEING, QUALIFIES AS EXEMPT PURPOSE INCOME, CONTRARY TO THE IRS POSITION IN THE TAMS. THE CREDIT UNION WILL BE FILING ITS TAX RETURNS FOR CALENDAR YEAR 2016, AND HAS FILED ITS TAX RETURNS FOR CALENDAR YEAR 2015 FOR ACTIVITIES DEEMED TAXABLE AND HAS A NET OPERATING LOSS CARRYFORWARD AS OF THE 2016 CALENDAR YEAR. THE TAXING AUTHORITIES HAVE THE ABILITY TO ASSESS TAXES, PENALTIES AND INTEREST FOR ANY YEARS FOR WHICH NO TAX RETURN WAS FILED. IN THE OPINION OF MANAGEMENT, ANY LIABILITY RESULTING FROM TAXING AUTHORITIES IMPOSING INCOME TAXES ON THE NET TAXABLE INCOME FROM ACTIVITIES POTENTIALLY DEEMED TO BE UNRELATED TO THE CREDIT UNION'S EXEMPT PURPOSE IS NOT EXPECTED TO HAVE A MATERIAL EFFECT ON THE CREDIT UNION'S CONSOLIDATED FINANCIAL POSITION OR RESULTS OF OPERATIONS. THE CREDIT UNION EVALUATED ITS TAX POSITIONS AND DETERMINED NO UNCERTAIN TAX POSITIONS EXIST AS OF DECEMBER 31, 2016 AND 2015. THE CREDIT UNION'S 2013 AND SUBSEQUENT TAX YEARS ARE OPEN FOR EXAMINATION BY FEDERAL TAXING AUTHORITIES, AND 2012 AND SUBSEQUENT TAX YEARS ARE OPEN FOR EXAMINATION BY STATE TAXING AUTHORITIES. EARNINGS AND LOSSES FROM THE CUSO'S, ORGANIZED LLC'S, FLOW AT THE ENTITY LEVEL THROUGH TO THE CREDIT UNION AND, THEREFORE, ARE NOT SUBJECT TO FEDERAL AND STATE INCOME TAXES. X 1 0 X X X X X 1 0 0 SHAWN L HANSON PRESIDENT/CEO 392672 0 99225 0 12395 0 9000 0 19038 0 532330 0 0 0 GARLAND KOCH CFO (LEFT 2016) 202831 0 74000 0 29473 0 12000 0 4675 0 322979 0 0 0 TIM CRUCIANI EXECUTIVE VICE PRESIDENT 227526 0 75500 0 8662 0 10065 0 18007 0 339760 0 0 0 ADAM KEER COO 215930 0 63600 0 7304 0 27000 0 23757 0 337591 0 0 0 WILLIAM SCHIRMER CHIEF HUMAN RESOURCE OFFICER 140850 0 42900 0 2097 0 2611 0 23373 0 211831 0 0 0 KENNETH BROSSMAN SENIOR VP REGIONAL MANAGER 129574 0 34650 0 2024 0 8503 0 22450 0 197201 0 0 0 JASON COBB SENIOR VP OF OPERATIONS 127515 0 37953 0 42040 0 6702 0 16928 0 231138 0 0 0 JOHN GARTEN CLS PRESIDENT (LEFT 2016) 0 84246 0 44100 0 77975 0 6268 0 12985 0 225574 0 0 TROY MOEN VICE PRESIDENT OF OPERATIONS 160245 0 0 0 2401 0 8474 0 23757 0 194877 0 0 0 GREGG MASHACK DIRECTOR OF PORTFOLIO MORTGAGE LENDI 104345 0 37885 0 8366 0 7244 0 18163 0 176003 0 0 0 GERALD CANON DISTRICT MANAGER 111098 0 7250 0 45556 0 4566 0 19959 0 188429 0 0 0 LISA DEML SENIOR VP ADMINISTRATION 120155 0 35310 0 6817 0 7895 0 14071 0 184248 0 0 0 PART I, LINE 1A BILL JAMES, HOUSING ALLOWANCE: $6,400 - INCLUDED IN TAXABLE COMPENSATION GARLAND KOCH, HOUSING ALOWANCE: $11,200 - INCLUDED IN TAXABLE COMPENSATION PART I, LINE 4A GERALD CANON - SEVERANCE PAYMENT $28,442 JOHN GARTEN - SEVERANCE PAYMENT $76,000 SHAWN L HANSON PRESIDENT/CEO DEFERRED COMPENSATION PROGRAM TO PROMOTE EMPLOYEE RETENTION X 8216367 9118129 0 1 1 WILLIAM SCHIRMER CHIEF HUMAN RESOURCES OFFICER DEFERRED COMPENSATION PROGRAM TO PROMOTE EMPLOYEE RETENTION X 2200000 2360994 0 0 1 ADAM KEER CHIEF OPERATING OFFICER DEFERRED COMPENSATION PROGRAM TO PROMOTE EMPLOYEE RETENTION X 1576727 1689812 0 0 1 TIM CRUCIANI EXECUTIVE VICE PRESIDENT DEFERRED COMPENSATION PROGRAM TO PROMOTE EMPLOYEE RETENTION X 2200000 2324938 0 0 1 KEN BROSSMAN DISTRICT MANAGER - LA CROSSE DEFERRED COMPENSATION PROGRAM TO PROMOTE EMPLOYEE RETENTION X 550000 585349 0 0 1 JASON COBB SENIOR VICE PRESIDENT OF OPERATIONS DEFERRED COMPENSATION PROGRAM TO PROMOTE EMPLOYEE RETENTION X 800000 800049 0 0 1 16879271 FORM 990, PART VI, SECTION A, LINE 6 THE ORGANIZATION CONSISTS OF MEMBERS. TO BE A MEMBER, ONE MUST HAVE A SHARE/SAVINGS ACCOUNT. EACH MEMBER HAS ONE VOTE TO ELECT THE GOVERNING BODY (BOARD OF DIRECTORS). PARTICIPATION IN THIS CREDIT UNION IS LIMITED TO THOSE WHO QUALIFY FOR MEMBERSHIP AS DEFINED IN THE CREDIT UNION'S CHARTER AND BYLAWS. THIS GENERALLY CONSISTS OF BROWN, CALUMET, CHIPPEWA, COLUMBIA, CRAWFORD, DODGE, DUNN, EAU CLAIRE, GRANT, GREEN LAKE, FOND DU LAC, LA CROSSE, MANITOWOC, MARQUETTE, MILWAUKEE, OUTAGAMIE, OZAUKEE, SHEBOYGAN, VERNON, WASHINGTON, WAUKESHA, WAUSHARA, AND WINNEBAGO COUNTIES IN WISCONSIN; ALLAMAKEE, CLAYTON, DALLAS, FAYETTE, MUSCATINE, POLK, AND WINNESHIEK COUNTIES IN IOWA; FILLMORE, HOUSTON, OLMSTED, AND WINONA COUNTIES IN MINNESOTA; AND ROCK ISLAND COUNTY IN ILLINOIS AND OTHER SELECT EMPLOYEE GROUPS WHO HAVE PETITIONED FOR MEMBERSHIP. IN ADDITION TO A REGULARLY QUALIFIED MEMBER, THE SPOUSE OF A MEMBER, THE BLOOD OR ADOPTIVE RELATIVES OF EITHER THEM OR THEIR SPOUSES MAY BE MEMBERS. FORM 990, PART VI, SECTION A, LINE 7A THE BOARD OF DIRECTORS ARE ELECTED BY THE MEMBERSHIP UTILIZING THEIR ONE VOTE PER MEMBER. FORM 990, PART VI, SECTION A, LINE 7B THE MEMBERS WOULD NEED TO APPROVE DECISIONS SUCH AS CHANGE OF NAME OR A MERGER DECISION. FORM 990, PART VI, SECTION A, LINE 8B THE ORGANIZATION DOES NOT HAVE ANY COMMITTEES THAT HAVE AUTHORITY TO ACT ON BEHALF OF THE GOVERNING BODY. FORM 990, PART VI, SECTION B, LINE 11B THIS FORM 990 IS PREPARED BY A PUBLIC ACCOUNTING FIRM BASED ON INFORMATION SUBMITTED BY THE CREDIT UNION. AN INITIAL REVIEW OF THE FOR 990 IS PERFORMED BY THE CFO. ANY REVISIONS ARE REVIEWED AND APPROVED BY THE CFO PRIOR TO THE RETURN BEING FILED. FORM 990, PART VI, SECTION B, LINE 12 OFFICERS AND KEY EMPLOYEES ARE REQUIRED TO VERIFY THE EXISTENCE OF ANY CONFLICTS OF INTEREST ANNUALLY. THE ORGANIZATION DOES NOT MONITOR ITS DIRECTORS FURTHER AT THIS TIME. FORM 990, PART VI, SECTION B, LINE 15 CEO: THE BOARD OF DIRECTORS APPROVES COMPENSATION AS RECOMMENDED BY THE COMPENSATION COMMITTEE. BASE COMPENSATION IS TARGETED TO THAT OF PEER FINANCIAL INSTITUTIONS OF SIMILAR SIZE AND COMPLEXITY. INCENTIVE PAY AND BASE PAY INCREASES OR DECREASES ARE DRIVEN BY THE PERFORMANCE OF THE EXECUTIVE VERSUS PRE-DETERMINED GOALS AND OBJECTIVES WHICH ARE ALIGNED WITH THE MISSION AND STRATEGY OF THE ORGANIZATION. THE CEO IS GIVEN QUARTERLY AND ANNUAL PERFORMANCE EVALUATIONS WHICH FACTOR INTO COMPENSATION DISCUSSIONS. THIS PROCESS WAS MOST RECENTLY UNDERTAKEN IN 2016. OTHER OFFICERS AND KEY EMPLOYEES: BASE COMPENSATION IS DRIVEN BY MARKETPLACE TRENDS AND OTHER COMPETITIVE FACTORS. INCENTIVE PAY AND BASE PAY INCREASES ARE DRIVEN BY THE PERFORMANCE OF EACH EMPLOYEE VERSUS PRE-DETERMINED GOALS AND OBJECTIVES WHICH ARE ALIGNED WITH THE MISSION AND STRATEGY OF THE ORGANIZATION. ALL EMPLOYEES ARE EVALUATED AGAINST OBJECTIVE AND SUBJECTIVE CRITERIA ON A MONTHLY AND ANNUAL BASIS. THIS PROCESS WAS MOST RECENTLY UNDERTAKEN IN 2016. FORM 990, PART VI, SECTION C, LINE 19 BYLAWS ARE AVAILABLE UPON REQUEST AND ANNUAL FINANCIAL STATEMENTS ARE POSTED ON THE ORGANIZATION'S WEBSITE. FORM 990, PART XI, LINE 9: EQUITY ATTRIBUTABLE TO SALE OF NON-CONTROLLING INTEREST -126,337. EQUITY ATTRIBUTABLE TO NON-CONTROLLING INTEREST 49,810. EQUITY ATTRIBUTABLE TO AOCI 44,923. K- 1 INCOME/LOSS - MARINE INSURANCE SERVICES, LLC -533. ADVANTAGE FINANCIAL SERVICES LLC 127 WEST AVENUE NORTH LA CROSSE WI 54601 800018187 HOLDING COMPANY WI 323670 7946474 MARINE CREDIT UNION CONSUMER LOAN SERVICES LLC 811 MONITOR STREET LA CROSSE WI 54603 270191461 MORTGAGE UNDERWRITING AND SERVICING WI 961043 5040916 ADVANTAGE FINANCIAL SERVICE MARINE INSURANCE SERVICES 811 MONITOR STREET LA CROSSE WI 54603 263295091 INSURANCE AGENCY WI ADVANTAGE FINANCIAL SERVICES UNRELATED 945913 0 1 0.95000 1 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 1 0 0 MARINE INSURANCE SERVICES A 8000 FMV MARINE INSURANCE SERVICES Q 14325 FMV