2017-11-15T14:58:31-06:00 2016-12-31 910189318 Moss Adams LLP 101 Second Street Suite 900 San Francisco CA 94105 990 2016-01-01 942600376 KeyPoint Credit Union KEYP 4087314100 2805 Bowers Avenue Santa Clara CA 95051 Timothy Green CFO 4087314100 2017-11-13 1 Wendy Campos P00448102 4159561500 2017-11-09 67.185.34.108 2017-11-13 12:51:45 PS P DA39A3EE5E6B4B0D3255BFEF95601890AFD80709 86B92690DBA53B450090ACE3D4C990CC6A999576 2016 2021-01-29 14:40:06Z T BRADFORD CANFIELD 2805 Bowers Avenue Santa Clara CA 95051 130789222 0 X www.kpcu.com X 1979 CA A COOPERATIVE, ORGANIZED FOR THE PURPOSE OF PROMOTING THRIFT AND SAVINGS AMONG ITS MEMBERS. 9 9 244 12 1925556 -126935 0 0 38015192 39626008 4014265 5115993 -62420 -26784 41967037 44715217 5000 23675 0 0 18696822 17895592 0 0 0 16955199 18695134 35657021 36614401 6310016 8100816 1007159964 1070888231 923123725 980552795 84036239 90335436 X See Schedule O 0 0 ACCOMPLISHMENT OF EXCELLENT LOAN SERVICES TO MEMBERS AND LOAN PORTFOLIO GROWTH THROUGH THE ORIGINATION OF CONSUMER AND MORTGAGE LOANS. ACCOMPLISHMENT OF TARGET GOALS IN MEMBER GROWTH (ACQUISITION OF NEW MEMBERS). MEMBER SATISFACTION IN CONNECTION WITH SERVICES PERTAINING TO CHECKING/SAVINGS ACCOUNTS, ATTRACTIVE CD RATES, IRA AND MONEY MARKET ACCOUNTS. 0 0 1 0 0 0 0 1 0 1 0 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 1 0 1 0 1 0 0 0 0 0 0 0 0 0 1 1 0 0 1 16567 0 1 244 1 1 1 0 0 0 0 0 X 9 9 0 0 0 0 1 1 1 1 1 0 0 0 1 1 1 1 1 1 1 1 1 CA X TIMOTHY GREEN 4087314118 2805 BOWERS AVE SANTA CLARA CA 95051 Adam Corkins Board Member 5.00 X 0 0 0 Gregory Eby Board Member 5.00 X 0 0 0 Robert Lerner Board Member 5.00 X 0 0 0 Keith Stattenfield Board Member 5.00 X 0 0 0 Bunninder Falak Board Member 5.00 X 0 0 0 Gary Garcia Board Member 5.00 X 0 0 0 Baljinder Sandhu Treasurer/Secretary 5.00 X X 0 0 0 John Tom Chairperson 5.00 X X 0 0 0 Dinesh Bettadapur Vice Chairperson 5.00 X X 0 0 0 Ted Canfield President/Chief Executive Officer 55.00 0.10 X 503418 0 210186 Samuel Tuohey Chief Operating Officer 55.00 0.10 X 285716 0 26387 Timothy Green Chief Finance Officer 55.00 X 268664 0 20300 Faye Nabhani Chief Lending Officer (through 6/18/16) 55.00 X 180925 0 19556 Vi Luu Chief Lending Officer 55.00 X 73634 0 9467 Anthony Vitale Chief Information Officer 55.00 X 205434 0 30112 Ajay Kumar Chief Information Officer (through 2/5/16) 55.00 X 57095 0 2892 LeeAnne Giblin SVP Human Resources 55.00 X 229183 0 19389 Douglas Schrock VP Finance 55.00 0.10 X 198835 0 24429 Steven Weiler SVP Commercial Banking 55.00 X 254536 0 15633 Tisha Hartman VP Retail Lending 55.00 X 212123 0 16917 Lawrence Scoffield VP Corporate Admin 55.00 X 183213 0 23427 Victor Smilgys VP IT Eservices 55.00 X 169533 0 29326 Arie Elkins VP IT Infrastructure 55.00 X 116378 0 33174 Kathy Chen VP Retail Operations 55.00 X 160059 0 27572 Phuoc Ngo Network Managaer 55.00 X 148655 0 11422 Jeff Aana Commercial Real Estate Sales Manager 55.00 X 168858 0 13432 Dash McElroy Core System Manager 55.00 X 159854 0 32277 Kevin Armstrong Director Consumer Lending 55.00 X 152046 0 21451 Shiou-lin Chen Director Financial Reporting 55.00 0.13 X 148765 0 16358 Helen Grays Former SVP Business Development 55.00 X 136145 0 2960 4013069 0 606667 35 1 1 0 FISERV 455 WINDING BROOK DRIVE GLASTONBURY CT 06033 CORE SYSTEM SERVICING 1021894 DIEBOLD GLOBAL FINANCE CORPORATION 5995 MAYFAIR ROAD PO BOX 3077 NORTH Canton OH 44750 ATM SERVICING 603749 CU COOPERATIVE SYSTEMS INC 9692 HAVEN AVENUE RANCHO CUCAMONGA CA 91730 DEBIT/CREDIT CARD NETWORK SERVICING 555890 VISA DPS FILE NO 73583 PO BOX 60000 SAN FRANCISCO CA 94160 DEBIT/CREDIT CARD SERVICING 547765 Agile Fusion Corporation 4900 Hopyard Rd Ste 100 Pleasanton CA 94588 Mobile Banking Service 392088 20 Interest on Loans 522100 30395323 30395323 FEE INCOME 522100 4239420 4024507 214913 Gain on Sale of Loans 522100 2621504 2621504 OTHER OPERATING INCOME 522100 2369761 2132688 237073 39626008 4864398 1500354 3364044 86325600 86069791 4214 255809 -4214 251595 251595 Joint Venture K-1 Income 522291 -26784 -26784 -26784 44715217 39174022 1925556 3615639 23675 3607511 11027938 439023 1620180 1200940 101577 108714 3379477 604868 1287375 1109073 2078146 40957 445133 3389484 1775292 PROVISION FOR LOAN LOSS 1542000 LOAN SERVICING 1014329 ATM EXPENSE 795458 PROVISION FOR TAXES 1588 1021663 36614401 11416654 9085725 13227599 33604572 1597773 1397084 832711555 859992816 4179367 4553829 34892306 19190824 15607875 15701482 95720949 109364268 21020701 23391608 11677491 13796847 1007159964 1070888231 17397726 16199259 26202 15270 419943 415620 36000000 70000000 869279854 893922646 923123725 980552795 X 0 0 0 0 84036239 90335436 84036239 90335436 1007159964 1070888231 X 8100816 -1842316 40697 X 0 1 X 1 0 5049 0 5049 5049 1 CALIFORNIA CREDIT UNION LEAGUE - PAC 2855 E GUASTI ROAD ONTARIO CA 91761 940357265 5049 Part I-A, Line 1: Political Action Committee Contribution to the California Credit Union League 0 1 X 6000000 6000000 8106931 3318825 4788106 2807927 1703754 1104173 17977448 14168245 3809203 15701482 MEMBERS' SHARES 893297752 OTHER MISCELLANEOUS LIABILITIES 624894 893922646 X Part IV, Line 2b: Custodial accounts for FHLB program loan servicer and escrow account related to hazard insurance and property tax on mortgage loan properties. Part X, Line 2: Income taxes - The Credit Union is exempt by statute from federal and state income taxes, except for taxes on unrelated business income, as further discussed in Note 11. The Credit Union's wholly owned subsidiaries are taxable entities, and income taxes related to subsidiaries for 2016 and 2015 were not material to the consolidated financial statements and are included in other operating expenses in the accompanying consolidated statements of income. Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 740-10-65, Income Taxes, provides guidance for how uncertain tax positions should be recognized, measured, disclosed, and presented in the consolidated 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 of being 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 tax expenses and liabilities in the current year. For the years ended December 31, 2016 and 2015, management has determined that there are no material uncertain tax positions and, accordingly, has not recorded a liability for the payment of interest or penalties. 1 Keypoint Foundation 2805 Bowers Ave Santa Clara CA 95051 473954329 501(C)(3) 15000 Benevolent grant to cover expenses for deceased child of employee 1 Part I, Line 2: The grant funds are approved by the CFO and CEO of the organization before being disbursed to the related tax exempt organization (KeyPoint Foundation). The organization is related to the Credit Union and therefore all funds are used in the U.S. X X 1 1 X X 1 1 0 Ted Canfield President/Chief Executive Officer 396657 0 78760 0 28001 0 180634 0 29552 0 713604 0 0 0 Samuel Tuohey Chief Operating Officer 244895 0 27947 0 12874 0 10662 0 15725 0 312103 0 0 0 Timothy Green Chief Finance Officer 233987 0 26558 0 8119 0 10286 0 10014 0 288964 0 0 0 Faye Nabhani Chief Lending Officer (through 6/18/ 99355 0 26514 0 55056 0 7391 0 12165 0 200481 0 0 0 Anthony Vitale Chief Information Officer 197025 0 0 0 8409 0 8363 0 21749 0 235546 0 0 0 LeeAnne Giblin SVP Human Resources 196521 0 24348 0 8314 0 8703 0 10686 0 248572 0 0 0 Douglas Schrock VP Finance 165385 0 20342 0 13108 0 7168 0 17261 0 223264 0 0 0 Steven Weiler SVP Commercial Banking 139200 0 114163 0 1173 0 7642 0 7991 0 270169 0 0 0 Tisha Hartman VP Retail Lending 175530 0 28625 0 7968 0 7757 0 9160 0 229040 0 0 0 Lawrence Scoffield VP Corporate Admin 157038 0 19233 0 6942 0 7796 0 15631 0 206640 0 0 0 Victor Smilgys VP IT Eservices 144645 0 15151 0 9737 0 7020 0 22306 0 198859 0 0 0 Kathy Chen VP Retail Operations 144613 0 15000 0 446 0 19917 0 7655 0 187631 0 0 0 Phuoc Ngo Network Managaer 125250 0 14898 0 8507 0 3870 0 7552 0 160077 0 0 0 Jeff Aana Commercial Real Estate Sales Manager 102460 0 65813 0 585 0 4835 0 8597 0 182290 0 0 0 Dash McElroy Core System Manager 131034 0 16972 0 11848 0 4503 0 27774 0 192131 0 0 0 Kevin Armstrong Director Consumer Lending 126843 0 12517 0 12686 0 6013 0 15438 0 173497 0 0 0 Shiou-lin Chen Director Financial Reporting 130090 0 16287 0 2388 0 6165 0 10193 0 165123 0 0 0 Helen Grays Former SVP Business Development 0 0 29813 0 106332 0 2960 0 0 0 139105 0 0 0 Part I, Line 1a HOUSING ALLOWANCE OF $6,000 WAS PAID TO DOUGLAS SCHROCK IN 2016 AND TREATED AS TAXABLE COMPENSATION TO HIM. HEALTH CLUB DUES ARE PAID FOR SEVERAL OFFICERS AND ARE TREATED AS TAXABLE COMPENSATION FOR ANY PERSONAL USE. Part I, Line 4b: The Credit Union has a Supplemental Executive Retirement Plan ("SERP"). The SERP is an unfunded retirement plan, with participation limited to executives selected by the Credit Union's Board of Directors. The purpose of the SERP is to encourage continued service by certain executives by providing enhanced retirement benefits. Accordingly, the executives who participate in the SERP will receive accumulated SERP benefits only at retirement. The current participant is Ted Canfield and the amount contributed in 2016 was $180,634. Part I, Line 4a: Helen Grays, former officer, received severance payment in the current year in the amount of $106,332, and Ajay Kumar, departed February of the current year, received severance payment in the amount of $18,462. VI LUU Officer 1st Mortgage X 397000 397000 0 1 1 ARIE C ELKINS Officer 1st Mortgage X 625000 594639 0 1 1 ARIE C ELKINS Officer Auto Loan X 38944 26172 0 1 1 ARIE C ELKINS Officer HELOC X 30000 14306 0 1 1 LAWRENCE D SCOFIELD Officer HELOC X 200000 74907 0 1 1 LAWRENCE D SCOFIELD Officer 1st Mortgage X 110000 108920 0 1 1 TISHA D HARTMAN Officer Unsecured X 8000 24998 0 1 1 TISHA D HARTMAN Officer Auto Loan X 22000 15040 0 1 1 TISHA D HARTMAN Officer Auto Loan X 39577 37408 0 1 1 VICTOR SMILGYS Officer Auto Loan X 14406 7800 0 1 1 VICTOR SMILGYS Officer Auto Loan X 28782 28320 0 1 1 ANTHONY VITALE Officer Auto Loan X 74502 67574 0 1 1 1397084 FORM 990, PART III, LINE 1, description of organization mission: KEYPOINT CREDIT UNION IS A COOPERATIVE, ORGANIZED FOR THE PURPOSE OF PROMOTING THRIFT AND SAVINGS AMONG ITS MEMBERS, CREATING A SOURCE OF CREDIT FOR THEM AT COMPETITIVE RATES OF INTEREST, 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, KEYPOINT CREDIT UNION CONDUCTS ITS BUSINESS FOR THE MUTUAL BENEFIT AND GENERAL WELFARE OF ITS MEMBERS WITH THE EARNINGS, SAVINGS, BENEFIT, OR SERVICE OF THE CREDIT UNION BEING DISTRIBUTED TO ITS MEMBERS AS PATRONS. Form 990, Part VI, Section A, line 6 KEYPOINT CREDIT UNION IS A COOPERATIVE FINANCIAL INSTITUTION THAT IS OWNED AND CONTROLLED BY ITS MEMBERS, AND OPERATED FOR THE PURPOSE OF PROMOTING THRIFT AND SAVINGS TO ITS MEMBERS. THE CREDIT UNION DOES NOT HAVE STOCKHOLDERS. Form 990, Part VI, Section A, line 7a THE GOVERNING BOARD OF KEYPOINT CREDIT UNION IS COMPRISED OF VOLUNTEER MEMBERS WHO ARE DIRECTLY ELECTED BY ITS MEMBERS. EACH MEMBER OF THE GOVERNING BOARD SERVES FOR A PERIOD OF THREE YEARS AND UNTIL THEIR SUCCESSORS SHALL HAVE BEEN ELECTED. Form 990, Part VI, Section A, line 7b AT THE END OF EACH TERM OF THE BOARD MEMBERS, ELECTIONS ARE HELD AND BOARD MEMBERS ARE VOTED BY THE MEMBERS OF THE CREDIT UNION PURSUANT TO ITS BY-LAWS. MEMBER VOTES ARE ALSO REQUIRED TO RATIFY DECISIONS DEALING WITH REORGANIZATIONS AS IN THE CASE OF MERGER OR DISSOLUTION. Form 990, Part VI, Section B, line 11b A COPY OF THE 990 IS MADE AVAILABLE TO BOARD MEMBERS WHO WISH TO HAVE A COPY OR REVIEW IT. A copy of the 990 is reviewed by the organization's director of financial reporting, VP of finance, and CFO before it is filed. Form 990, Part VI, Section B, line 12c PER THE CREDIT UNION'S CONFLICT OF INTEREST POLICY, DIRECTORS, VOLUNTEERS AND EMPLOYEES ARE REQUIRED TO DISCLOSE THEIR INTERESTS THAT COULD GIVE RISE TO CONFLICTS OF INTEREST. THE POLICY WAS MOST RECENTLY REVIEWED AND APPROVED BY THE BOARD OF DIRECTORS ON FEBRUARY 25, 2016. FOR THE ENFORCEMENT OF THE CONFLICT OF INTEREST POLICY, THE INTERNAL AUDITOR REVIEWS ACCOUNT ACTIVITY FOR ALL DIRECTORS, VOLUNTEERS, AND EMPLOYEES AND THEIR INTERESTS. IN ADDITION, THE ACCOUNTS PAYABLE SYSTEM IS REVIEWED TO ENSURE PROPRIETY OF ANY POTENTIAL CONFLICTS OF INTEREST AS APPLICABLE. THE CREDIT UNION ALSO MAINTAINS A POLICY THAT NO IMMEDIATE FAMILY MEMBERS OF THE BOARD OF DIRECTORS OR SUPERVISORY COMMITTEE MEMBERS MAY BECOME EMPLOYEES OF THE CREDIT UNION UNTIL TWO YEARS HAVE ELAPSED SINCE THEIR VOLUNTEER SERVICE WITH THE CREDIT UNION ENDED. THE CREDIT UNION DOES ALLOW DIRECTORS, VOLUNTEERS AND EMPLOYEES TO APPLY FOR LOANS THAT THE CREDIT UNION OFFERS TO ITS MEMBERSHIP. ALL LOAN APPLICATIONS FOR VICE-PRESIDENTS AND ABOVE, VOLUNTEERS AND BOARD MEMBERS REQUIRE THE APPROVAL OF THE BOARD OF DIRECTORS. DIRECTORS ARE RESTRICTED FROM PARTICIPATING IN THE DELIBERATIONS AND VOTING IN A TRANSACTION THAT PERTAINS TO THEM. Form 990, Part VI, Section B, line 15 THE COMPENSATION OF THE CEO IS DETERMINED BY THE COMPENSATION COMMITTEE OF THE CREDIT UNION. ALL VP POSITIONS AND ABOVE ARE REVIEWED FOR MARKET PLACE COMPENSATION AND SALARY RANGES ARE RECOMMENDED FOR ADJUSTMENT BASED ON SURVEY INFORMATION. THE CEO APPROVES THE RECOMMENDATION FOR SALARY STRUCTURE CHANGE. AFTER A PERFORMANCE REVIEW IS WRITTEN AND RATING IS DETERMINED, A MERIT INCREASE IS SET BY THE FORMULA OF WHERE THE INDIVIDUAL FALLS INTO THE RANGE AND PERFORMANCE LEVEL. THE RECOMMENDATION FOR MERIT INCREASE IS APPROVED OVERALL BY THE INDIVIDUAL DEPARTMENT VP OR EVP. THE OVERALL GROUP IS APPROVED BY THE CEO. An annual review of compensation is completed in April every year. Form 990, Part VI, Section C, line 19 Governing documents and conflict of interest policy are not made available to the public. Financial Statements are posted in the branch offices monthly. Form 990, Part XI, line 9: BOOK TO TAX DIFFERENCE IN INVESTMENT INCOME 40,697. KEYPOINT FOUNDATION 2805 BOWERS AVENUE SANTA CLARA CA 95051 473954329 Charitable Giving CA 501(c)(3) PF KEYPOINT CREDIT UNION 1 KEYPOINT FINANCIAL SERVICES INC 2805 Bowers Avenue Santa Clara CA 95051 770018330 Insurance CA KeyPoint Credit Union C 14430 589744 1.00000 1 Integrated Credit Union Services Inc 2805 Bowers Avenue Santa Clara CA 95051 943140652 Insurance CA KeyPoint Credit Union C 7967 1.00000 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0