2016-11-14T12:37:38-06:00 2015-12-31 420714325 RSM US LLP 801 NICOLLET MALL SUITE 1100 MINNEAPOLIS MN 55402 990 2015-01-01 520284053 MUNICIPAL EMPLOYEES CREDIT UNION OF BALTIMORE INC MUNI 4107528313 ONE SOUTH STREET BALTIMORE MD 21202 NATALIE J WOOMER VP/CONTROLLER 4107528313 2016-11-11 1 GERALD B KISSELL P00092658 6123324300 2015 2017-02-10 21:41:12Z X MECU OF BALTIMORE INC JOHN HAMILTON ONE SOUTH STREET BALTIMORE MD 21202 190740542 0 X WWW.MECU.COM X 1936 MD MECU IS A CREDIT UNION WHICH PROVIDES A FULL ARRAY OF FINANCIAL SERVICES TO ITS MEMBER OWNERS. 11 11 405 0 467296 -110555 0 0 62393667 56175575 6990274 6194202 0 0 69383941 62369777 183328 217686 10319790 8342510 23452463 22503744 0 0 0 31228882 29012631 65184463 60076571 4199478 2293206 1214980053 1182373984 1085981430 1056130553 128998623 126243431 X TO PROVIDE HIGH QUALITY FINANCIAL SERVICES TO OUR MEMBERS AND OUTSTANDING SERVICE TO OUR COMMUNITIES THROUGH SOUND MANAGEMENT AND INNOVATION. 0 0 MECU MAKES A VARIETY OF TYPES OF LOANS TO ITS MEMBERS INCLUDING MORTGAGE, HOME EQUITY, VEHICLE, CREDIT CARD AND UNSECURED LOANS AT VERY COMPETITIVE INTEREST RATES. THERE WERE 51,082 OUTSTANDING LOANS TOTALING $655.5 MILLION AT 12/31/15. IN 2015, MECU REFUNDED $1.34 MILLION OF THE INTEREST THAT ITS MEMBERS PAID ON LOANS DURING THE YEAR. IT WAS THE 34TH CONSECUTIVE YEAR THAT MECU HAS RETURNED MONEY TO ITS MEMBERS IN THE FORM OF A LOAN INTEREST REBATE. MECU PROVIDES ITS 113,089 MEMBERS WITH THE MEANS TO SAVE MONEY. MECU OFFERS SHARE SAVINGS, CHECKING, CERTIFICATES OF DEPOSIT, IRA, EDUCATIONAL SAVINGS AND MONEY MARKET ACCOUNTS. IN ADDITION TO PAYING VERY COMPETITIVE DIVIDEND AND INTEREST RATES ON ITS SAVINGS PRODUCTS, MECU HAS ALSO PAID AN EXTRAORDINARY DIVIDEND TO ITS MEMBERS FOR THE LAST 34 CONSECUTIVE YEARS. MECU PAID $1.16 MILLION IN EXTRAORDINARY DIVIDENDS TO ITS MEMBERS IN 2015. MECU STRIVES TO OFFER PRODUCTS AND SERVICES DESIGNED TO IMPROVE THE ECONOMIC AND SOCIAL WELL BEING OF ALL MEMBERS FROM ALL SOCIAL-ECONOMIC BACKGROUNDS. MECU'S FIELD OF MEMBERSHIP DRAWS FROM BALTIMORE CITY, AN AREA THAT QUALIFIES AS AN UNDERSERVED INVESTMENT AREA AS DEFINED BY THE NCUA. MECU IS COMMITTED TO MEMBER FINANCIAL EDUCATION. SOME OF THE PROGRAMS THAT MECU PROVIDES INCLUDE: DISCOUNTED MORTGAGE RATES THROUGH FIRST-TIME HOMEBUYER'S PROGRAMS AND BUY IN BALTIMORE LOANS, HOME BUYERS' WORKSHOPS, CREDIT REPAIR WORKSHOPS, BASICS OF MONEY MANAGEMENT; NEW EMPLOYEE AND PRE-RETIREMENT WORKSHOPS AND FREE CREDIT COUNSELING SERVICES THROUGH ACCEL, A GREENPATH, INC. AFFILIATE. MECU ALSO HAS TWO STUDENT-RUN BRANCHES AT HIGH SCHOOLS. MECU ACTIVELY PARTICIPATES IN COMMUNITY OUTREACH PROJECTS. SOME OF THE PROGRAMS THAT MECU PARTICIPATED IN DURING 2015 WERE JUNIOR ACHIEVEMENT, MEALS ON WHEELS, CHRISTOPHER'S PLACE, PARTNERSHIPS WITH 9 ELEMENTARY SCHOOLS, ADOPTING FAMILIES FOR THE HOLIDAYS, THE SALVATION ARMY ANGEL TREE, A MARYLAND PUBLIC TELEVISION TELETHON, CREDIT UNIONS FOR KIDS, DONATED OVER 5,900 BOOKS TO BALTIMORE CITY SCHOOL CHILDREN, PARTICIPATED IN HELPING TO RUN A GOLF TOURNAMENT TO RAISE MONEY FOR THE MECU FOUNDATION, THREW A PARTY FOR THE RESIDENTS AT A NURSING HOME, WORKED AT THE MARYLAND FOOD BANK AND FED PEOPLE IN NEED AT OUR DAILY BREAD. MECU ALSO WALKED IN THE ADA AND CYSTIC FIBROSIS WALK-A-THONS AND HELD FREE WORKSHOPS ON TOPICS SUCH AS HOME BUYING AND CREDIT REPAIR. IN ADDITION, MECU PROVIDED GRANTS TO BALTIMORE NEIGHBORHOODS FOR THE PURPOSE OF PRODUCING SPECIAL EVENTS. 0 0 0 0 0 0 0 1 0 1 1 0 1 1 1 1 0 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 26755 0 1 405 1 1 1 0 0 0 0 0 X 11 11 0 0 1 0 1 1 1 1 1 0 1 1 1 1 1 1 1 1 1 1 0 X NATALIE J WOOMER 4107528313 ONE SOUTH STREET BALTIMORE MD 21202 HERMAN WILLIAMS JR CHAIR 2.00 X X 27500 0 0 ERNEST GLINKA VICE CHAIR 2.00 X X 32300 0 0 GARY MCLHINNEY SECRETARY 1.50 X X 22100 0 0 G LOUISE GREEN TREASURER 1.50 X X 19500 0 0 LORRETTA JOHNSON DIRECTOR 1.00 X 12000 0 0 JOHN WALKER III DIRECTOR 1.00 X 13500 0 0 CHARMAINE THOMAS DIRECTOR 1.50 X 16900 0 0 DEBORAH MOORE-CARTER DIRECTOR 1.50 X 21000 0 0 BENJAMIN MELI JR DIRECTOR 1.50 X 22500 0 0 KALIOPE PARTHEMOS DIRECTOR 0.50 X 4200 0 0 PEGGY PEACOCK DIRECTOR 1.50 X 22200 0 0 ROMAN CLARK SR DIRECTOR 1.50 X 22500 0 0 GARY MARTIN CEO (JAN-MAY) 50.00 X 414235 0 16275 JOHN HAMILTON CEO (JUNE-DEC)/SENIOR VP LENDING 50.00 X 305501 0 44740 ADRIAN JOHNSON SENIOR VP AND CFO 45.00 X 195154 0 27107 KATHY DAY SHELTON SR VP AND COO 45.00 X 183037 0 48623 PATRICIA ROBERTS SR VP OF BRANCH OPERATIONS 45.00 X 158537 0 46052 NATALIE WOOMER VP OF ACCOUNTING AND CONTROLLER 45.00 X 149290 0 27969 LAURIE S RUSH VP OF MARKETING 45.00 X 145402 0 42348 DENISE JONES-FRASIER VP OF OPERATIONS 45.00 X 120700 0 30538 CHRISTOPHER LUMLEY VP OF INFORMATION SERVICES 45.00 X 140509 0 55646 MICHELLE WILLIAMS VP OF HUMAN RESOURCES 45.00 X 137313 0 31428 ANDREW PATAKI FORMER KEY EMPLOYEE 0.00 X 137050 0 0 2322928 0 370726 12 1 1 0 PSCU 560 CARILLON PARKWAY ST PETERSBERG FL 33716 DEBIT/CREDIT CARD PROCESSOR 2704201 FIS PO BOX 4535 CAROL STREAM IL 60197 DATA PROCESSOR/BILL PAYER 1660460 FISERV 75 REMITTANCE DRIVE SUITE 6962 CHICAGO IL 60675 MEMBER STMT MAILING & ACCOUNTING SOFTWAR 1043001 LENDING SOLUTIONS 2200 POINT BLVD SUITE 110 ELGIN IL 60123 LENDING CALL CENTER 582354 CO-OP FINANCIAL SERVICES 9692 HAVEN AVE RANCHO CUCAMONGA CA 91730 SHARED BRANCHING, REMOTE DEPOSITS, ELECT 510852 21 INTEREST ON LOANS TO MEMBERS 522100 38008562 38008562 SERVICE CHARGES AND OTHER FEES 522100 10213415 10114002 99413 OTHER NONINTEREST INCOME 522100 7953598 7585715 367883 56175575 6168344 6168344 127525266 871357 127106823 1263942 418443 -392585 25858 25858 62369777 55708279 467296 6194202 217686 8342510 1683774 14867481 1656964 3079069 1216456 321333 92627 479654 2030291 2453871 2061721 2408524 479407 501566 1307748 268733 PROVISION FOR LOAN LOSS 5524114 ATM/DEBIT CARD EXPENSE 3977882 LOAN SERVICING EXPENSE 3127577 MEMBER STATEMENT EXPENS 908982 3068601 60076571 19573325 17950210 47656068 34308159 19619286 5903807 684767308 642918793 808658 1081934 18697476 13233954 4933968 5463522 373631260 415300921 297350 237880 63692830 59208758 1214980053 1182373984 12399256 12575405 237099 295301 1073345075 1043259847 1085981430 1056130553 X 0 0 0 0 128998623 126243431 128998623 126243431 1214980053 1182373984 2293206 -1475082 -3573316 0 X 0 1 X 1 0 0 1 X 3000478 257785 2742693 5264663 4571253 693410 10432335 8404916 2027419 5463522 AVAILABLE FOR SALE SECURITIES 383872246 F HELD-TO-MATURITY 25981675 C CERTIFICATES OF DEPOSIT 5447000 C 415300921 ACCRUED INTEREST RECEIVABLE 2916950 NCUSIF DEPOSIT 9850306 CASH SURRENDER VALUE OF LIFE INSURANCE 38638137 OTHER ASSETS 7199764 LOANS AVAILABLE-FOR-SALE 603601 59208758 MEMBERS' SHARES AND SAVINGS 1018466647 BORROWED FUNDS 24793200 1043259847 X 62762362 0 62762362 -392585 -392585 62369777 60469156 392585 392585 60076571 0 60076571 PART IV, LINE 2B: WE HAVE ESCROW FOR TWO SITUATIONS. WE HAVE $235,481 IN ESCROW THAT WE COLLECTED FROM BUSINESSES FOR THEIR REAL ESTATE LOANS WITH MECU. THEY MAKE ESCROW PAYMENTS TO MECU THAT IS USED TO PAY CERTAIN BILLS FOR THEM SUCH AS THEIR REAL ESTATE TAXES AND INSURANCE ON THE PROPERTY. WE ALSO HAVE $59,820 IN ESCROW FOR SITUATIONS WHERE IT CANNOT BE DETERMINED WHO OWNS THE LAND OR WHO GROUND RENT SHOULD BE PAID TO AT MORTGAGE SETTLEMENT, SO THE BUYER IS REQUIRED TO PAY 5 YEARS WORTH OF GROUND RENT AT SETTLEMENT. MECU HOLDS THESE FUNDS IN ESCROW TO PAY GROUND RENT ON BEHALF OF THE MEMBER AND IF THE SITUATION IS NOT RESOLVED AFTER 5 YEARS, THE MONEY GOES BACK TO THE MEMBER. PART X, LINE 2: MANAGEMENT EVALUATED THE CREDIT UNION'S TAX POSITIONS AND CONCLUDED THAT THE CREDIT UNION HAD TAKEN NO UNCERTAIN TAX POSITIONS THAT REQUIRE ADJUSTMENT TO THE FINANCIAL STATEMENTS TO COMPLY WITH THE PROVISIONS OF FASB ASC 740-10, ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES. PART XI, LINE 4B - OTHER ADJUSTMENTS: LOSS ON SALE OF FIXED ASSETS RECLASSED FROM EXPENSES -392,585. PART XII, LINE 2D - OTHER ADJUSTMENTS: LOSS ON SALE OF FIXED ASSETS RECLASSED FROM EXPENSES 392,585. 1 AFRICAN AMERICAN CREDIT UNION COALITION PO BOX 1612 SHREVEPORT LA 71165 571091138 501(C)3 30000 TO INCREASE THE STRENGTH OF THE CREDIT UNION MOVEMENT. THE CREDIT UNION FOUNDATION OF MD & DC 8975 GUILFORD ROAD SUITE 190 COLUMBIA MD 21046 521749045 501(C)3 30000 SUPPORT CREDIT UNIONS AND THE COMMUNITIES THAT THEY SERVE. BALTIMORE OFFICE OF PROMOTION AND THE ARTS 10 E BALTIMORE ST 10TH FLOOR BALTIMORE MD 21202 900091850 501(C)3 50000 PROVIDE GRANTS FOR BALTIMORE CITY NEIGHBORHOODS. VILLAGE LEARNING PLACE 2521 SAINT PAUL STREET BALTIMORE MD 21218 522109848 501(C)3 7000 LIBRARY CREDIT UNION MIRACLE DAY INC PO BOX 27637 WASHINGTON DC 20038 522341329 501(C)3 6000 CHILDREN'S MIRACLE NETWORK HOSPITALS 5 PART I, LINE 2: MECU HAS A COMMITTEE THAT MEETS AND DETERMINES WHAT CHARITABLE CONTRIBUTIONS WILL BE MADE. THE COMMITTEE SELECTS 501(C)3, PUBLIC CHARITIES, THAT BENEFIT THE CREDIT UNION MOVEMENT AND THE BALTIMORE COMMUNITY. X X X 0 1 0 GARY MARTIN CEO (JAN-MAY) 409667 0 0 0 4568 0 16275 0 703 0 431213 0 0 0 JOHN HAMILTON CEO (JUNE-DEC)/SENIOR VP LENDING 304157 0 0 0 1344 0 36754 0 10452 0 352707 0 0 0 ADRIAN JOHNSON SENIOR VP AND CFO 185864 0 8000 0 1290 0 18771 0 10090 0 224015 0 0 0 KATHY DAY SHELTON SR VP AND COO 174347 0 8000 0 690 0 27607 0 22762 0 233406 0 0 0 PATRICIA ROBERTS SR VP OF BRANCH OPERATIONS 149247 0 8000 0 1290 0 31665 0 16031 0 206233 0 0 0 NATALIE WOOMER VP OF ACCOUNTING AND CONTROLLER 143139 0 5500 0 651 0 20916 0 9063 0 179269 0 0 0 LAURIE S RUSH VP OF MARKETING 138720 0 5500 0 1182 0 25996 0 18318 0 189716 0 0 0 DENISE JONES-FRASIER VP OF OPERATIONS 114278 0 5500 0 922 0 30538 0 2118 0 153356 0 0 0 CHRISTOPHER LUMLEY VP OF INFORMATION SERVICES 134604 0 5500 0 405 0 32995 0 24961 0 198465 0 0 0 MICHELLE WILLIAMS VP OF HUMAN RESOURCES 131244 0 5500 0 569 0 24592 0 9037 0 170942 0 0 0 ANDREW PATAKI FORMER KEY EMPLOYEE 137050 0 0 0 0 0 0 0 0 0 137050 0 0 0 PART I, LINE 4B THE FOLLOWING INDIVIDUALS PARTICIPATED IN A NON-QUALIFIED RETIREMENT PLAN AND ALL COMPENSATION HAS BEEN PROPERLY REPORTED IN PART VII AND SCHEDULE J: ADRIAN JOHNSON - NO DISBURSEMENT IN 2015 JOHN HAMILTON - NO DISBURSEMENT IN 2015 KATHY DAY SHELTON - NO DISBURSEMENT IN 2015 PATRICIA ROBERTS - NO DISBURSEMENT IN 2015 NATALIE WOOMER - NO DISBURSEMENT IN 2015 LAURIE RUSH - NO DISBURSEMENT IN 2015 DENISE JONES-FRASIER - NO DISBURSEMENT IN 2015 CHRISTOPHER LUMLEY - NO DISBURSEMENT IN 2015 MICHELLE WILLIAMS - NO DISBURSEMENT IN 2015 FORM 990, PART VI, SECTION A, LINE 4 THE GOVERNING DOCUMENTS WERE AMENDED SO THE TREASUER IS NOW ONE OF THE VOTING MEMBERS OF THE BOARD OF DIRECTORS. PREVIOULSY THE PRESIDENT & CEO WAS ALSO THE TREASURER OF MECU. THERE WAS ALSO A CHANGE TO THE FIELD OF MEMBERSHIP DEFINITION. PREVIOUSLY IT WAS "MEMBERSHIP SHALL ALSO INCLUDE VOLUNTEERS AND EMPLOYEES OF ANY EMPLOYER, INCLUDING THEIR AFFILIATES AND SUBSIDIARIES, WITH LESS THAN 750 EMPLOYEES LOCATED WITHIN A FIVE (5) MILE RADIUS OF ANY BRANCH OF THIS CREDIT UNION SUBJECT TO FINANCIAL INSTITUTIONS ARTICLE 6-303 (B) COMMON BOND MEMBERSHIP FIELDS - SMALL GROUPS." THE FIVE (5) MILE RADIUS WAS CHANGED TO A TWENTY (20) MILE RADIUS. 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 THE ORGANIZATION'S GOVERNING BODY. 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 NATALIE WOOMER, VP OF ACCOUNTING AND CONTROLLER, REVIEWS THE COMPLETED FORM 990 IN DETAIL. SHE THEN GIVES THE TAX RETURN TO ALL BOARD MEMBERS AND THE CEO FOR THEIR REVIEW BEFORE THE TAX RETURN IS FILED. FORM 990, PART VI, SECTION B, LINE 12C AT THE BEGINNING OF EACH YEAR, EACH BOARD DIRECTOR, MECU EMPLOYEE AND SUPERVISORY AND CREDIT COMMITTEE MEMBER IS REQUIRED TO COMPLETE A CONFLICT OF INTEREST QUESTIONNAIRE. THE RESPONSES ARE REVIEWED BY MECU'S HUMAN RESOURCES DEPARTMENT TO VERIFY THAT EVERYONE IS IN COMPLIANCE WITH MECU'S CONFLICT OF INTEREST POLICY. FORM 990, PART VI, SECTION B, LINE 15 THE CEO AND OTHER TOP MANAGEMENT OFFICIALS RECEIVE AN ANNUAL PERFORMANCE REVIEW. BASED ON PERFORMANCE, THE EMPLOYEE MAY RECEIVE A MERIT INCREASE. COMPENSATION DATA FROM A COUPLE OF SOURCES IS REVIEWED TO DETERMINE THE EMPLOYEE'S SALARY. THESE SOURCES INCLUDE CREDIT UNION SALARY SURVEYS FROM CUES AND CUNA. FOR KEY EMPLOYEES OTHER THAN THE CEO, THE PERFORMANCE REVIEW DOCUMENT IS SIGNED BY THE CORRESPONDING DEPARTMENT HEAD AND THE VICE PRESIDENT OF HUMAN RESOURCES. THE CEO'S EVALUATION IS CONDUCTED BY THE BOARD OF DIRECTORS EACH YEAR AND IS BASED ON THE FOUR (4) FOLLOWING CRITERIA: FINANCIAL PERFORMANCE, STRATEGIC GOALS AND OBJECTIVES, EVALUATIONS COMPLETED BY THE BOARD MEMBERS AND COMMUNITY, INDUSTRY AND CIVIC INVOLVEMENT. THE CEO MEETS WITH THE BOARD TO DISCUSS HIS PERFORMANCE. THE BOARD VOTES ON ANY MERIT INCREASE AND/OR BONUS. A NEW CONTRACT IS SIGNED EACH YEAR REFLECTING HIS SALARY AND THE EXPECTATIONS OF THE POSITION. THE CONTRACT IS SIGNED BY THE BOARD CHAIR, BOARD SECRETARY, AND THE CEO. FORM 990, PART VI, SECTION C, LINE 19 FINANCIAL STATEMENTS, CONFLICT OF INTEREST POLICY AND GOVERNING DOCUMENTS ARE AVAILABLE UPON REQUEST FOR THE SAME PERIOD OF DISCLOSURE AS SET FORTH IN SECTION 6104(D). FORM 990, PART VII ANDREW PATAKI WAS A SENIOR VP AND COO PRIOR TO HIS RETIREMENT IN 2014. THE $137,050 REPORTED IN PART VII, COLUMN D WAS CONTRIBUTIONS BY MR. PATAKI TO HIS 457(B) RETIREMENT PLAN. THERE WAS NO EXPENSE TO MECU. DUE TO THE FORM 990 REPORTABLE COMPENSATION FILING THRESHOLD FOR FORMER KEY EMPLOYEES, MR. PATAKAI IS REPORTED ON THE 2015 FORM 990 AS A FORMER KEY EMPLOYEE.