2016-11-09T09:55:48-06:00 2015-12-31 410746749 CLIFTONLARSONALLEN LLP PO BOX 217 AUSTIN MN 55912 990 2015-01-01 741951016 FIRST SERVICE CREDIT UNION FIRS 7136768944 9621 W SAM HOUSTON PARKWAY N HOUSTON TX 77064 JANA HEATON CHIEF FINANCIAL OFFICER 7136768944 2016-11-03 1 SHERRI WESSELS P00888088 5074347000 2016-11-03 2015 2017-02-10 21:41:12Z DAVID BLEAZARD 9621 W SAM HOUSTON PARKWAY N HOUSTON TX 77064 50842704 0 X WWW.FSCU.COM X CU 1977 TX FIRST SERVICE CREDIT UNION IS A COOPERATIVE CREDIT UNION THAT PROVIDES FINANCIAL PRODUCTS AND SERVICES TO MEMBERS. 10 10 229 10 689314 0 0 0 28171310 38328355 1950600 3302494 0 0 30121910 41630849 0 0 2206642 2802155 9929413 12740661 0 0 0 12384283 18036482 24520338 33579298 5601572 8051551 533714836 597616458 484100062 539653316 49614774 57963142 FIRST SERVICE CREDIT UNION IS A COOPERATIVE CREDIT UNION THAT PROVIDES FINANCIAL PRODUCTS AND SERVICES TO MEMBERS. 0 0 FIRST SERVICE CREDIT UNION OFFERS SAVINGS ACCOUNTS TO MEMBERS OF ALL AGES THAT PAY DIVIDENDS ON A MONTHLY BASIS. WE HAD APPROXIMATELY 57,104 MEMBER-OWNED SAVINGS ACCOUNTS AS OF DECEMBER 31, 2015. MEMBERS CAN ACCESS THEIR SAVINGS ACCOUNTS THROUGH OUR BRANCH NETWORK, INCLUDING OUR NATIONWIDE SHARED BRANCHING NETWORK. MEMBERS CAN ALSO ACCESS THEIR SAVINGS ACCOUNTS VIA HOME BANKING, TELEPHONE, MOBILE DEVICES AND ATMS. WE ALSO OFFER SPECIAL SAVINGS ACCOUNTS FOR CHILDREN AND TEENAGERS TO ENCOURAGE THE DEVELOPMENT OF CONSISTENT SAVINGS HABITS. FIRST SERVICE CREDIT UNION OFFERS CHECKING ACCOUNTS FOR OUR MEMBERS. SOME OF OUR CHECKING ACCOUNTS PAY DIVIDENDS ON A MONTHLY BASIS. CHECKING ACCOUNTS CAN BE ACCESSED THROUGH OUR BRANCH NETWORK AND A NATIONWIDE SHARED BRANCHING NETWORK. MEMBERS CAN ALSO ACCESS THEIR CHECKING ACCOUNTS VIA HOME BANKING, TELEPHONE, MOBILE DEVICES AND ATMS. MEMBERS CAN ALSO PAY BILLS ONLINE USING OUR FREE BILL PAY SERVICE. FIRST SERVICE CREDIT UNION PROVIDES LOANS TO MEMBERS FOR A VARIETY OF LOAN TYPES SUCH AS NEW AND USED AUTOS, UNSECURED, BOAT, MOTORCYCLE, RECREATIONAL, AND REAL ESTATE AT VERY COMPETITIVE RATES WITH NO PRE-PAYMENT PENALTIES. 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 0 0 0 0 0 0 0 0 0 1 0 0 0 1 12969 0 1 229 1 1 1 0 0 0 0 0 X 10 10 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 X JANA HEATON CFO 7136768944 9621 W SAM HOUSTON PARKWAY N HOUSTON TX 77064 GARY GODWIN CHAIR 1.00 X X 0 0 0 JANET HILL VICE CHAIR 1.00 X X 0 0 0 JAMES HARKRIDER DIRECTOR 1.00 X 0 0 0 KOURTNEY CALHOUN DIRECTOR 1.00 X 0 0 0 PAUL LOVE DIRECTOR 1.00 X 0 0 0 JACK BARTELL DIRECTOR 1.00 X 0 0 0 DOUG ESMOND TREASURER 1.00 X X 0 0 0 DAVID ITZ DIRECTOR 1.00 X 0 0 0 MERV SWAN DIRECTOR 1.00 X 0 0 0 WAYNE TAYLOR SECRETARY 1.00 X X 0 0 0 DAVID BLEAZARD PRESIDENT/CEO 50.00 X 417386 0 45196 JANA HEATON CFO 50.00 X 154814 0 21007 DEBRA LITTLE CLO 50.00 X 150178 0 20488 MIKE MCWETHY COO 50.00 X 222279 0 34643 FRANK HALSTEAD CIO 50.00 X 164663 0 27953 MICHAEL ALEXANDER INVESTMENT REPRESENTATIVE 50.00 X 143728 0 3613 JIANJUN BAI VP OF SYSTEMS DEVELOPMENT & HOST OPS 50.00 X 128858 0 14373 1381906 0 167273 14 0 1 0 AMERICAN SERVICE GROUP PO BOX 3400 CONROE TX 77305 WARRANTY 3115819 CORELATION INC 2878 CAMINO DEL RIO SOUTH SUITE 41 SAN DIEGO CA 92108 LICENSE OF NEW CORE SYSTEM 663807 COMPUTEK 9580 COMMERCE CENTER DRIVE RANCHO CUCAMONGA CA 91730 COMPUTER EQUIPMENT 583776 JACK HENRY & ASSOCIATES PO BOX 609 MONETT MO 65708 ACCOUNTING SOFTWARE SUPPORT 383273 COMCAST PO BOX 37601 PHILADELPHIA PA 19101 INTERNET SERVICE 294298 23 LOAN INTEREST 522100 23890530 23890530 OTHER FEES & CHARGES 522100 14437825 13748511 689314 38328355 1025523 1025523 11488826 9211855 2276971 2276971 2276971 41630849 37639041 689314 3302494 2802155 638403 9554486 552107 1179819 815846 86792 80980 25652 2723549 1352119 3087301 938154 281476 1041860 PROVISION FOR LOAN LOSS 6535000 LOAN SERVICING EXPENSE 1096360 SECURITY EXPENSE 541217 OTHER EXPENSES 195916 50106 33579298 26660370 40627805 986103 509846 370662859 443331692 559765 670879 29281730 8772767 15823252 20508963 101118654 67563849 4297966 2303417 13605867 22100007 533714836 597616458 12295939 11509359 476210 232625 471327913 527911332 484100062 539653316 X 0 0 0 0 49614774 57963142 49614774 57963142 533714836 597616458 X 8051551 297083 -266 X X 0 1 X 1 0 0 1 X 5614804 5614804 13091144 2227942 10863202 785522 346113 439409 8282098 6198712 2083386 1508162 1508162 20508963 MEMBER SHARES AND CDS 527911332 527911332 X PART IV, LINE 2B: THE CREDIT UNION HOLDS FUNDS IN ESCROW TO PAY TAXES AND INSURANCE ON BEHALF OF ITS MORTGAGE LOAN MEMBERS. PART X, LINE 2: THE CREDIT UNION IS EXEMPT, UNDER IRC 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 WELLBEING, QUALIFIES AS EXEMPT PURPOSE INCOME, CONTRARY TO THE IRS POSITION IN THE TAMS. THE CREDIT UNION HAS FILED TAX RETURNS IN THE PAST FOR ACTIVITIES IT HAS DEEMED TAXABLE AND HAS A MINIMAL NET OPERATING LOSS CARRYFORWARD AS OF THE 2014 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, 2015 AND 2014. THE CREDIT UNION'S 2012 THROUGH 2015 TAX YEARS ARE OPEN FOR EXAMINATION BY FEDERAL AND STATE TAXING AUTHORITIES. THE INCOME FROM THE CUSOS, ORGANIZED AS AN LLC, FLOWS THROUGH TO THE CREDIT UNION, AND THEREFORE IS NOT SUBJECT TO FEDERAL AND STATE INCOME TAXES. X 1 1 X X X X X 0 1 0 DAVID BLEAZARD PRESIDENT/CEO 312727 0 104659 0 0 0 30760 0 14436 0 462582 0 0 0 JANA HEATON CFO 136107 0 18707 0 0 0 15317 0 5690 0 175821 0 0 0 DEBRA LITTLE CLO 130972 0 19206 0 0 0 14816 0 5672 0 170666 0 0 0 MIKE MCWETHY COO 183676 0 38603 0 0 0 20318 0 14325 0 256922 0 0 0 FRANK HALSTEAD CIO 142965 0 21698 0 0 0 14855 0 13098 0 192616 0 0 0 PART I, LINE 1A DAVID BLEAZARD - GOLF CLUB MEMBERSHIP - $8,258 - INCLUDED IN TAXABLE INCOME DAVID BLEAZARD - PERSONAL USE OF COMPANY VEHICLE - $8,296 - INCLUDED IN TAXABLE INCOME PART I, LINE 4B DAVID BLEAZARD, PRESIDENT/CEO; MIKE MCWETHY, COO; JANA HEATON, CFO; AND DEBRA LITTLE, CLO PARTICIPATED IN NON-QUALIFIED RETIREMENT PLANS. THERE WERE NO DISTRIBUTIONS DURING 2015. FORM 990, PART VI, SECTION A, LINE 6 THE CREDIT UNION'S MEMBERS HAVE RIGHTS TO ELECT THE MEMBERS OF THE GOVERNING BODY. THE CREDIT UNION'S MEMBERS ALSO RECEIVE A SHARE OF THE ORGANIZATION'S PROFITS IN THE FORM OF CASH DIVIDENDS. FORM 990, PART VI, SECTION A, LINE 7A MEMBERS OF THE CREDIT UNION HAVE THE RIGHT TO ELECT ONE OR MORE MEMBERS OF THE ORGANIZATION'S GOVERNING BODY, WHETHER PERIODICALLY, OR AS VACANCIES ARISE, OR OTHERWISE. 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 11 FORM 990 IS REVIEWED BY THE CFO AND CEO, ALONG WITH THE BOARD OF DIRECTORS, PRIOR TO BEING FILED WITH THE IRS. FORM 990, PART VI, SECTION B, LINE 12C THE EMPLOYEE HANDBOOK CLEARLY DEFINES WHEN A CONFLICT OF INTEREST ARISES AND REQUIRES EACH EMPLOYEE TO MAKE PROMPT AND FULL DISCLOSURE TO THE PRESIDENT/CEO OF ANY SITUATION THAT MAY INVOLVE AN EXISTING OR A POTENTIAL CONFLICT OF INTEREST. EMPLOYEES SIGN AN ACKNOWLEDGEMENT ANNUALLY STATING THAT THEY WILL REPORT ANY CONFLICTS OF INTEREST. ADDITIONALLY, EMPLOYEES ARE ENCOURAGED TO GO TO THE COMPLIANCE OFFICER FOR CONFLICTS OF INTEREST. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD HIRES AN INDEPENDENT COMPENSATION CONSULTANT TO CONDUCT A MARKET RATE ANALYSIS OF THE TOTAL COMPENSATION PACKAGE FOR THE CEO/PRESIDENT OF THE CREDIT UNION. THE BOARD REVIEWS THE CONSULTANT'S FINDINGS, DETERMINES AND APPROVES THE COMPENSATION PACKAGE FOR THE CEO/PRESIDENT. WE CONDUCT COMPENSATION SURVEYS FOR OTHER OFFICERS AND KEY EMPLOYEES OF THE ORGANIZATION IN ORDER TO DETERMINE PAY INCREASES BASED ON THE LEVEL OF RESPONSIBILITY WITHIN THE CREDIT UNION AND INDIVIDUAL JOB PERFORMANCE. FORM 990, PART VI, SECTION C, LINE 19 DISCLOSED ON OUR WEBSITE (WWW.FSCU.COM) - THE FOLLOWING DOCUMENTS ARE AVAILABLE FOR MEMBERS TO REVIEW BY CONTACTING THE CREDIT UNION IN WRITING AND PROVIDING AN ADDRESS TO SEND THE REQUESTED INFORMATION: 1 - SUMMARY OF THE MOST RECENT ANNUAL AUDIT, 2 - BALANCE SHEET AND INCOME STATEMENT, 3 - IRS FORM 990, 4 - WRITTEN BOARD POLICY REGARDING ACCESS TO ARTICLES OF INCORPORATION, BY LAWS, RULES, GUIDELINES, BOARD POLICIES AND COPIES THEREOF. FORM 990, PART XI, LINE 9: RECLASSIFICATION FOR GAINS INCLUDED IN NET INCOME -266. FORM 990, PART XII, LINE 2C: THIS PROCESS HAS NOT CHANGED FROM THE PRIOR YEAR. FSCU MORTGAGE LLC DBA ECU MORTGAGE LLC 9621 W SAM HOUSTON PARKWAY N HOUSTON TX 77064 461770128 MORTGAGES HELD FOR SALE TX -148622 2561112 FIRST SERVICE CREDIT UNION ECU TECHNOLOGY LLC 9621 W SAM HOUSTON PARKWAY N HOUSTON TX 77064 475036601 APPLICATION SERVICE PROVIDERS TX 1502034 FIRST SERVICE CREDIT UNION