2017-10-23T16:49:50-05:00 2016-12-31 431592217 J TENBRINK & ASSOCIATES 11272 S RIDGEVIEW RD OLATHE KS 66061 990 2016-01-01 480625190 AZURA CREDIT UNION AZUR 7852335556 PO BOX 1128 TOPEKA KS 666011128 RONALD BARON CFO 7852335556 2017-10-23 1 P00638199 9138946214 97.87.82.114 2017-10-23 16:49:40 CD P F833D4313777CB96842A8180D2DBFCFD1CED2197 F833D4313777CB96842A8180D2DBFCFD1CED2197 2016 2021-01-29 14:40:06Z GREG WINKLER PO BOX 1128 TOPEKA KS 666011128 19289212 0 X WWW.AZURACU.COM X 1974 KS AZURA IS ENHANCING LIVES BY DELIVERING INNOVATIVE FINANCIAL SERVICE, EDUCATION, AND VALUE THROUGH PERSONAL AND COMMUNITY ENGAGEMENT. 13 13 154 20 127429 -45011 0 0 7516392 15438416 2365441 2685672 47302 132847 9929135 18256935 1500 1500 55684 6500 3727986 6146550 0 0 0 5393098 9477358 9178268 15631908 750867 2625027 269124004 473326741 242360338 425478253 26763666 47848488 X AZURA IS ENHANCING LIVES BY DELIVERING INNOVATIVE FINANCIAL SERVICE, EDUCATION, AND VALUE THROUGH PERSONAL AND COMMUNITY ENGAGEMENT. 1 0 PROVIDES FINANCIAL AND FINANCIALLY RELATED SERVICES TO 46,940 MEMBERS. PROVIDES A SOURCE OF CREDIT TO MEMBERS AT A FAIR AND REASONABLE RATE OF INTEREST. AS OF DECEMBER 31, 2016, THERE WERE 23,396 LOANS TO MEMBERS OUTSTANDING TOTALING $263,282,072. PAID DIVIDENDS ON MEMBER DEPOSITS TOTALING $1,631,776 FOR THE YEAR. 0 0 0 0 0 0 0 0 0 1 1 0 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 0 1 0 0 1 13788 0 1 154 1 1 1 0 0 0 0 0 X 13 13 0 0 1 0 1 1 1 1 1 0 1 1 0 1 1 1 1 1 1 1 1 1 X DAVID LINDERMAN 7852335556 610 SW 10TH AVENUE TOPEKA KS 66612 JIM FROWNFELTER CHAIRMAN 2.00 X 0 0 0 BOBB COLLIE VICE CHAIRMAN 2.00 X 0 0 0 SHIRLEY MARTIN TREASURER 2.00 X 0 0 0 DONALD FRICK SECRETARY 2.00 X 0 0 0 ROBERT BALSTERS DIRECTOR 2.00 X 0 0 0 MARCIA DECHAND DIRECTOR 2.00 X 0 0 0 BRAD DEITER DIRECTOR 2.00 X 0 0 0 TERRY HEIDNER DIRECTOR 2.00 X 0 0 0 SHERYL LONGHOFER DIRECTOR 2.00 X 0 0 0 RANDY PACHOSA DIRECTOR 2.00 X 0 0 0 GELENE SAVAGE DIRECTOR 2.00 X 0 0 0 BRYAN VARGAS DIRECTOR 2.00 X 0 0 0 CLARDY VINSON DIRECTOR 2.00 X 0 0 0 GREG WINKLER CEO 40.00 X 153520 0 33981 RONALD BARON CFO 40.00 X 86083 0 11331 LISA BROWN CAO 40.00 X 79260 0 14112 BRENTT MOON CIO 40.00 X 121507 0 16852 VICKIE HURT CEO (PRE-MERGE) 40.00 X 187674 0 167878 GARY COLCHER INVESTMENTS 20.00 X 484154 0 8592 1112198 0 252746 4 0 1 0 0 INTEREST ON LOANS 522100 9406552 9406552 FEES & OTHER INCOME 522100 5906379 5904435 1944 NON-MEMBER ATM FEES 522100 98755 98755 WARRANTY SALES 522100 25050 25050 OTHER INSURANCE 522100 1680 1680 15438416 2695629 2695629 132847 132847 1022320 1032277 -9957 -9957 -9957 18256935 18129506 127429 0 1500 6500 872198 4239391 247726 433962 353273 3144 128225 6000 195766 441185 3140113 342381 506554 84037 1120734 110670 MEMBER DIVIDENDS 1631776 LOAN SERVICING 895672 PROVISION FOR LOAN LOSS 655097 ASSOCIATION DUES 57276 158728 15631908 4350778 3332686 26790354 28821128 280122 148337 91141153 268264866 539165 1458559 14158719 5046932 5002894 9111787 137964167 152742924 3055371 9446454 269124004 473326741 2302461 5289879 240057877 420188374 242360338 425478253 X 0 0 0 0 26763666 47848488 26763666 47848488 269124004 473326741 X 2625027 -979394 19439189 X 0 1 X 1 0 1828879 1828879 8073863 1740203 6333660 533587 513940 19647 3710244 2780643 929601 12146 12146 0 9111787 HTM-FED AGENCY SEC 17500000 C SERP PLAN INVST-LIFE INS 5836198 C CAPITOL CUSO, LLC 1102834 C MEMBERS MORT SVCS, LLC 50000 C CROCO CUSO, LLC 17313 C HTM-MORTGAGE BACKED SEC 28342787 C HTM-MUNICIPAL BONDS 1007269 C FHLB CLASS A STOCK 470300 C FHLB CLASS B STOCK 3200 C AFS-MORTGAGE BACKED SEC 93921173 F AFS-FED AGENCY SEC 3989800 F AFS-BANK NOTES 502050 F 152742924 MEMBER SHARE DEPOSITS 420188374 420188374 X PART X, LINE 2: THE CREDIT UNION IS EXEMPT FROM FEDERAL INCOME TAXES UNDER SECTION 501(C)(14) OF THE INTERNAL REVENUE CODE, EXCEPT FOR ANY UNRELATED BUSINESS INCOME TAX. THE CREDIT UNION ACCOUNTS FOR UNCERTAINTY IN INCOME TAXES IN ACCORDANCE WITH ASC 740-10-25, WHICH ADDRESSES THE DETERMINATION OF WHETHER TAX BENEFITS CLAIMED OR EXPECTED TO BE CLAIMED ON A TAX RETURN, SHOULD BE RECORDED IN THE FINANCIAL STATEMENTS. UNDER THIS GUIDANCE, THE CREDIT UNION MAY RECOGNIZE THE TAX BENEFITS FROM AN UNCERTAIN TAX POSITION ONLY IF IT IS MORE LIKELY-THAN-NOT THAT THE TAX POSITION WILL BE SUSTAINED ON EXAMINATION BY TAXING AUTHORITIES BASED ON THE TECHNICAL MERITS OF THE POSITION. THE TAX BENEFITS RECOGNIZED IN THE FINANCIAL STATEMENTS FROM SUCH A POSITION ARE MEASURED BASED ON THE LARGEST BENEFIT THAT HAS A GREATER THAN 50 PERCENT LIKELIHOOD OF BEING REALIZED UPON ULTIMATE SETTLEMENT. THE GUIDANCE ON ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES ALSO ADDRESSES DERECOGNITION, CLASSIFICATION, INTEREST AND PENALTIES ON INCOME TAXES, AND ACCOUNTING INTERIM PERIODS. THIS STANDARD DID NOT HAVE AN IMPACT ON THE FINANCIAL STATEMENTS, AND THE CREDIT UNION DOES NOT HAVE ANY UNCERTAIN TAX POSITIONS. WITH FEW EXCEPTIONS, THE CREDIT UNION IS NO LONGER SUBJECT TO FEDERAL OR STATE AND LOCAL INCOME TAX EXAMINATIONS BY AUTHORITIES FOR YEARS BEFORE 2013. X 1 0 X X X 0 1 0 GREG WINKLER CEO 152055 0 1300 0 165 0 16209 0 17772 0 187501 0 0 0 VICKIE HURT CEO (PRE-MERGE) 172014 0 0 0 15660 0 143133 0 24745 0 355552 0 0 0 GARY COLCHER INVESTMENTS 24269 0 0 0 459885 0 2215 0 6377 0 492746 0 384677 0 PART I, LINE 1A PURSUANT TO THE APPLICABLE WRITTEN AGREEMENT, GARY COLCHER'S LUMP SUM SERP DISTRIBUTION WAS GROSSED-UP FOR TAXES. THE FULL AMOUNT WAS INCLUDED IN HIS W-2 WAGES. PART I, LINE 3 THE BOARD OF DIRECTORS REVIEWS AND APPROVES THE CEO'S COMPENSATION PURSUANT TO A SIGNED EMPLOYMENT CONTRACT. COMPEASE SOFTWARE IS USED IN THIS PROCESS FOR PEER COMPARISON. PART I, LINE 4B THE CREDIT UNION MAINTAINS SUPPLEMENTAL EXECUTIVE RETIREMENT PLANS (SERP) FOR KEY SENIOR EXECUTIVES IF THEY REMAIN EMPLOYED BY THE CREDIT UNION FOR A SPECIFIED PERIOD OF TIME. THE ESTIMATED LIABILITY UNDER THE AGREEMENTS IS BEING ACCRUED AS DEFINED IN THE PLANS OVER THE REMAINING YEARS OF SERVICE. THE CONTRIBUTIONS INTO THE PLANS ARE ACCRUED AND FUNDED ON A CURRENT BASIS. THE APPLICABLE EXECUTIVES AND AMOUNTS EXPENSED IN 2016 ARE LISTED BELOW: VICKIE HURT, PRESIDENT/CEO - $126,212 GARY COLCHER, INVESTMENTS - $39,441 GARY COLCHER RECIEVED A LUMP SUM DISTRIBUTION OF $455,444 IN 2016 (INCLUDING ESTIMATED TAXES) AND THE ENTIRE AMOUNT WAS INCLUDED IN HIS W-2 WAGES. NO AMOUNTS WERE PAID OUT TO VICKIE HURT RELATED TO HER SERP AGREEMENT IN 2016. FORM 990, PART III, LINE 2 EFFECTIVE MAY 1, 2016, THE MERGER BETWEEN QUEST CREDIT UNION AND EDUCATIONAL CREDIT UNION RESULTED IN NEW SERVICES FOR MEMBERS FROM BOTH CREDIT UNIONS. FORM 990, PART VI, SECTION A, LINE 4 EFFECTIVE MAY 1, 2016, EDUCATIONAL CREDIT UNION MERGED INTO QUEST CREDIT UNION AT WHICH TIME THE ORGANIZATION'S NAME WAS CHANGED FROM "QUEST CREDIT UNION" TO "AZURA CREDIT UNION." AN AMMENDMENT TO THE ARTICLES OF INCORPORATION WAS FILED WITH THE KANSAS SECRETARY OF STATE TO REFLECT THIS CHANGE. IN ADDITION, THE BYLAWS FOR THE NEW ORGANIZATION WERE CREATED AND APPROVED BY THE BOARD OF DIRECTORS AND THE KANSAS DEPARTMENT OF CREDIT UNIONS TO BE EFFECTIVE UPON THE MERGER DATE. FORM 990, PART VI, SECTION A, LINE 6 THE CREDIT UNION IS MUTUALLY OWNED BY MEMBERS. FORM 990, PART VI, SECTION A, LINE 7A THE BOARD OF DIRECTORS ARE ELECTED BY THE CREDIT UNION MEMBERS. FORM 990, PART VI, SECTION A, LINE 7B CERTAIN SIGNIFICANT CHANGES ARE SUBJECT TO APPROVAL BY THE CREDIT UNION MEMBERS. IN 2015, MEMBERS VOTED TO APPROVE THE BOARD'S RECOMMENDATION TO MERGE WITH EDUCATIONAL CREDIT UNION IN 2016. THE MERGER WAS COMPLETED MAY 1, 2016. FORM 990, PART VI, SECTION B, LINE 11B THE AVP OF ACCOUNTING PREPARES INFORMATION FOR THE FORM 990 AND THE CFO REVIEWS THAT INFORMATION PRIOR TO SUBMITTING IT TO THE OUTSIDE ACCOUNTING FIRM PREPARING THE RETURN. UPON COMPLETION, THE CFO REVIEWS AND APPROVES THE FORM 990 BEFORE FILING. FORM 990, PART VI, SECTION B, LINE 12C ON AN ANNUAL BASIS, KEY EMPLOYEES AND DIRECTORS REQUIRED TO REVIEW THE CONFLICT OF INTEREST POLICY, DISCLOSE ANY POTENTIAL CONFLICTS, AND SUBMIT A SIGNED STATEMENT TO THAT EFFECT. THESE STATEMENTS ARE MAINTAINED ON FILE AT THE CREDIT UNION. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF DIRECTORS REVIEWS AND APPROVES THE CEO'S COMPENSATION PURSUANT TO A SIGNED EMPLOYMENT CONTRACT. COMPENSATION FOR ALL OTHERS IS APPROVED BY THE CEO AND HUMAN RESOURCES. COMPEASE SOFTWARE IS USED IN THIS PROCESS FOR PEER COMPARISON. FORM 990, PART VI, SECTION C, LINE 19 FINANCIAL STATEMENTS ARE PRESENTED AT THE ANNUAL MEETING AND ARE AVAILABLE UPON WRITTEN REQUEST TO THE THE SUPERVISORY COMMITTEE. IN ADDITION, THE NCUA WEBSITE POSTS FINANCIAL INFORMATION AS PART OF THE QUARTERLY CALL REPORTS. OTHER DOCUMENTS, POLICIES, AND PROCEDURES ARE AVAILABLE UPON WRITTEN REQUEST. FORM 990, PART XI, LINE 9: NET ASSETS ACQUIRED IN MERGER 19,257,169. ADJUSTMENTS TO EQUITY ACQUIRED IN MERGER -200,094. UNREALIZED GAINS ACQUIRED THROUGH MERGER 372,157. OTHER ADJUSTMENTS FOR LOSSES REALIZED IN NET INCOME 9,957. CROCO CUSO LLC 610 SW 10TH AVENUE TOPEKA KS 66612 920192646 CREDIT UNION SERVICE ORGANIZATION KS AZURA CREDIT UNION RELATED -73381 17313 0 1 1.00000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 1 CROCO CUSO LLC P 182740 ACTUAL COST OF EXPENSES CROCO CUSO LLC S 411706 BOOK VALUE OF FIXED ASSETS