2016-03-25T13:22:29-05:00 2015-07-01 410746749 CLIFTONLARSONALLEN LLP PO BOX 217 AUSTIN MN 55912 990 2015-01-01 410683383 LAKE STATE CREDIT UNION LAKE 2184854444 301 ELM AVENUE MOOSE LAKE MN 55767 RICK BORCHARDT CFO 2184854444 2016-03-25 1 TANYA MEDGAARDEN P01717240 5074347000 2016-03-22 2015 2016-09-27 15:27:22Z X TAMMY HEIKKINEN MEMBERS COOPERATIVE CU 952 WOODLAND AVE DULUTH MN 55803 6161044 0 X HTTP://LAKESTATECU.COM X CU 1939 MN THE CREDIT UNION IS A NONPROFIT, COOPERATIVE FINANCIAL INSTITUTION. IT IS OWNED AND RUN BY ITS MEMBERS AND ORGANIZED TO SERVE AND PROVIDE THEIR MEMBERS WITH A SAFE PLACE TO SAVE AND BORROW AT REASONABLE RATES. MEMBERS POOL THEIR FUNDS TO MAKE LOANS TO ONE ANOTHER. THE VOLUNTEER BOARD THAT RUNS EACH CREDIT UNION IS ELECTED BY THE MEMBERS. X 6 6 0 20 27417 14945 0 0 9152660 4753745 273407 231415 36835 0 9462902 4985160 0 0 919390 446709 4273740 2272991 0 0 0 4258891 2073708 9452021 4793408 10881 191752 190105451 0 170082154 0 20023297 0 X THE CREDIT UNION IS A NONPROFIT, COOPERATIVE FINANCIAL INSTITUTION. IT IS OWNED AND RUN BY ITS MEMBERS AND ORGANIZED TO SERVE AND PROVIDE THEIR MEMBERS WITH A SAFE PLACE TO SAVE AND BORROW AT REASONABLE RATES. MEMBERS POOL THEIR FUNDS TO MAKE LOANS TO ONE ANOTHER. THE VOLUNTEER BOARD THAT RUNS EACH CREDIT UNION IS ELECTED BY THE MEMBERS. 0 1 THE CREDIT UNION PROVIDES A VARIETY OF LENDING SERVICES TO OUR MEMBERSHIP. THE CREDIT UNION HAD 10,189 LOANS OUTSTANDING FOR $132,836,995 AS OF JUNE 30, 2015. THE CREDIT UNION PROVIDES A VARIETY OF DEPOSITORY SERVICES TO OUR MEMBERSHIP. THE CREDIT UNION HAD 43,191 MEMBER ACCOUNTS WITH DEPOSITS OF $172,908,674 AS OF JUNE 30, 2015. 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 1 0 0 0 1 1 0 0 0 0 0 X 6 6 0 0 1 0 1 1 1 1 1 1 0 1 1 1 1 0 0 1 1 0 X RICK BORCHARDT CFO 2184854444 301 ELM AVENUE MOOSE LAKE MN 55767 DIANNE CARLSON DIRECTOR 1.00 X 0 0 0 TIM CAROLINE DIRECTOR 1.00 X 0 0 0 LEE ELLEN OLSON DIRECTOR 1.00 X 0 0 0 JOHN GILBERT DIRECTOR 1.00 X 0 0 0 KAREN JOHNSON DIRECTOR 1.00 X 0 0 0 JERRY TELKER DIRECTOR 1.00 X 0 0 0 TIMOTHY J SMITH PRESIDENT/CEO 40.00 X 91882 0 17812 FREDERICK BORCHARDT SVP/CFO 40.00 X 66139 0 7440 158021 0 25252 0 0 0 0 CU ANSWERS 6000 28TH ST SE SUITE 100 GRAND RAPIDS MI 49546 CORE PROCESSING 205696 FISERV 75 REMITTANCE DRIVE SUITE 6959 CHICAGO IL 60675 DEBIT CARD PROCESSING 160967 2 LOAN INTEREST 522100 3481288 3481288 FEE INCOME 522100 653776 636304 17472 OTHER OPERATING INCOME 522100 618681 608736 9945 4753745 214469 214469 1192830 1175884 16946 16946 16946 4985160 4726328 27417 231415 446709 183273 1671851 73166 195667 149034 300131 99576 389069 373607 28695 LOAN SERVICE EXPENSE 539651 LOAN LOSS PROVISION 204000 MISCELLANEOUS EXPENSE 135900 OPERATING FEES 3079 4793408 0 2487958 0 0 0 0 0 128945018 0 0 801161 0 0 4150347 0 0 50217725 0 0 0 3503242 0 190105451 0 1219463 168862691 170082154 0 X 0 0 0 0 20023297 0 20023297 0 190105451 0 X 191752 -20215049 X 0 0 0 X X X 0 0 0 TIMOTHY J SMITH PRESIDENT/CEO 77905 0 13666 0 311 0 4780 0 13032 0 109694 0 0 0 FREDERICK BORCHARDT SVP/CFO 58875 0 6962 0 302 0 3329 0 4111 0 73579 0 0 0 EXPLANATION OF PART YEAR COMPENSATION AND BENEFITS PAID TO OFFICERS: TIMOTHY SMITH AND FREDERICK BORCHARDT WERE EMPLOYED BY LAKE STATE CREDIT UNION UNTIL ITS MERGER WITH MEMBERS COOPERATIVE CREDIT UNION ON JULY 1, 2015. THE COMPENSATION AND BENEFIT AMOUNTS REPORTED ON THE FORM 990 AND SCHEDULE J ARE THE AMOUNTS PAID TO THEM BY LAKE STATE CREDIT UNION FROM JANUARY 1, 2015 - JULY 1, 2015. LAKE STATE CREDIT UNION DID NOT FILE ANY W2S FOR 2015. MEMBERS COOPERATIVE CREDIT UNION FILED ALL OF THE W2S FOR THE WHOLE YEAR UNDER THEIR NAME AND EMPLOYER IDENTIFICATION NUMBER WHICH INCLUDED THE AMOUNTS FROM LAKE STATE CREDIT UNION FROM JANUARY 1, 2015 - JULY 1, 2015. CASH, SAVINGS, TEMPORARY INVESTMENTS 2015-07-01 2609550 BOOK VALUE 410195345 MEMBERS COOPERATIVE CREDIT UNION 101 14TH STREET CLOQUET MN 55720 501(C)(14) NOTES AND LOANS RECEIVABLE 2015-07-01 131061842 BOOK VALUE 410195345 MEMBERS COOPERATIVE CREDIT UNION 101 14TH STREET CLOQUET MN 55720 501(C)(14) PREPAID EXPENSES AND DEFERRED CHARGES 2015-07-01 421949 BOOK VALUE 410195345 MEMBERS COOPERATIVE CREDIT UNION 101 14TH STREET CLOQUET MN 55720 501(C)(14) LAND, BUILDINGS AND EQUIPMENT 2015-07-01 4030808 COST BASIS LESS ACCUMLATED DEPRECIATION 410195345 MEMBERS COOPERATIVE CREDIT UNION 101 14TH STREET CLOQUET MN 55720 501(C)(14) INVESTMENTS 2015-07-01 52426972 BOOK VALUE 410195345 MEMBERS COOPERATIVE CREDIT UNION 101 14TH STREET CLOQUET MN 55720 501(C)(14) OTHER ASSETS 2015-07-01 4215851 BOOK VALUE 410195345 MEMBERS COOPERATIVE CREDIT UNION 101 14TH STREET CLOQUET MN 55720 501(C)(14) 1 1 0 1 1 1 1 1 0 PART I, LINE 2E: PERSON(S) INVOLVED: JERRY TELKER, JOHN GILBERT, DIANE CARLSON, TIMOTHY SMITH, FREDERICK BORCHARDT PART I, LINE 2E: EXPLANATION OF INVOLVEMENT: THREE OF THE LAKE STATE CREDIT UNION'S BOARD OF DIRECTORS BECAME BOARD OF DIRECTORS FOR MEMBERS COOPERATIVE CREDIT UNION. THEY ARE JERRY TELKER, JOHN GILBERT AND DIANE CARLSON.ALL OF THE OFFICERS FROM LAKE STATE CREDIT UNION RETAINED THEIR EMPLOYMENT WITH MEMBERS COOPERATIVE CREDIT UNION.THE CHIEF EXECUTIVE OFFICER OF LAKE STATE CREDIT UNION (TIMOTHY SMITH) HAS BEEN OFFERED AND HAS AGREED TO A SEVERANCE PACKAGE WHEREBY HE WILL EXIT AND RETIRE EFFECTIVE DECEMBER 31, 2015. FORM 990, PART III, LINE 3 THE CREDIT UNION DISCONTINUED OPERATIONS AND MERGED WITH MEMBERS COOPERATIVE CREDIT UNION ON JULY 1, 2015. FORM 990, PART VI, SECTION A, LINE 4 LAKE STATE CREDIT UNION MERGED WITH MEMBERS COOPERATIVE CREDIT UNION EFFECTIVE JULY 1, 2015. FORM 990, PART VI, SECTION A, LINE 6 THE CREDIT UNION MEMBERSIP IS LIMITED TO ALL RESIDENTS LIVING IN CARLTON, CHISAGO, KANABEC, ISANTI, PINE, AITKIN, WASHINGTON, AND ST LOUIS COUNTIES, AND ALL MEMBERS OF THEIR IMMEDIATE FAMILIES REGARDLESS OF THEIR PLACE OF RESIDENCE. FORM 990, PART VI, SECTION A, LINE 7A EACH YEAR 2 OR 3 MEMBERS OF OUR BOARD OF DIRECTORS ARE UP FOR ELECTION. OUR MEMBERS VOTE FOR THEM EACH YEAR. FORM 990, PART VI, SECTION A, LINE 7B OUR MEMBERSHIP HAD TO APPROVE OUR MERGER WITH MEMBERS COOPERATIVE CREDIT UNION. FORM 990, PART VI, SECTION B, LINE 11 THE BOARD OF LAKE STATE CREDIT UNION IS NO LONGER IN EXISTENCE AS IT MERGED WITH MEMBERS COOPERATIVE CREDIT UNION ON JULY 1, 2015. TAMMY HEIKKINEN WILL BE PROVIDED A COPY OF THE FORM 990 FOR REVIEW WITH MEMBERS COOPERATIVE'S OFFICERS AND BOARD MEMBERS. FORM 990, PART VI, SECTION B, LINE 12C ALL ETHIC STATEMENTS ARE REVIEWED BY THE PRESIDENT/CEO AND RESULTS REPORTED TO THE BOARD OF DIRECTORS. ANY EXCEPTIONS MUST BE APPROVED BY THE CEO AND BOARD OF DIRECTORS. THE ETHIC STATEMENTS ARE FILED IN THE HR MANAGER'S OFFICE FOR DOCUMENTATION AND REFERRAL PURPOSES. AT THIS TIME, THERE ARE NO KNOWN OR POTENTIAL CONFLICTS OF INTEREST TO MONITOR. FORM 990, PART VI, SECTION B, LINE 15 FOR 2015 COMPENSATION, BASED ON THE INFORMATION RECEIVED FROM THE SALARY REVIEW USING CUNA'S SALARY SURVEY AND MARKET TRENDS, AND AFTER CONSULTATION WITH NANCY GOSSELL, OUR HR ATTORNEY WE HAVE ON RETAINER, THE PRESIDENT/CEO, SVP-CFO, VP OF ACCOUNTING, AND HR MANAGER APPLIED A SALARY RANGE INCREASE OF 3% FOR THE OTHER MANAGEMENT POSITIONS AND THE REMAINING POSITIONS. THE MANAGEMENT AND OTHER POSITIONS RECEIVED THEIR PERFORMANCE REVIEWS FROM THEIR SUPERVISOR, USING THE SAME SALARY GUIDELINE FOR THE WAGE INCREASE BASED ON PERFORMANCE RATING AND WHERE THEY CURRENTLY FALL IN THE SALARY RANGE. FORM 990, PART VI, SECTION C, LINE 19 IF MEMBERS REQUEST THEM, FINANCIAL REPORTS ARE POSTED IN EACH OF OUR LOBBIES AND PUT IN OUR ANNUAL REPORT. HOWEVER, THE CREDIT UNION MERGED WITH MEMBERS COOPERATIVE CREDIT UNION ON JULY 1, 2015 SO THE ORGANIZATION IS NO LONGER IN EXISTENCE. PART VI, SECTION A, LINE 9 TIMOTHY J SMITH - 440 EAGLE DR, HERMANTOWN, MN 55811 FORM 990, PART XI, LINE 9: TRANSFER OF ASSETS TO MEMBERS COOP. CREDIT UNION DUE TO MERGER 07/01/15. -20,215,049. LATE FILING OF FORM 990 EXPLANATION LAKE STATE CREDIT UNION IS NO LONGER IN EXISTENCE AS IT WAS MERGED WITH MEMBERS COOPERATIVE CREDIT UNION ON JULY 1, 2015. THE FILING DUE DATE FOR THEIR FORM 990 HAS ALWAYS BEEN ON MAY 15TH. THEY ASSUMED THE DUE DATE FOR THEIR FINAL FORM 990 WAS MAY 15, 2016. THEY WERE NOT AWARE THAT WHEN THEY MERGED WITH MEMBERS COOPERATIVE CREDIT UNION ON JULY 1, 2015 THAT THE FORM 990 WAS DUE ON THE 15TH DAY OF THE FIFTH MONTH AFTER THE MERGER. UPON BECOMING AWARE OF THE DIFFERENT DUE DATE, THE CREDIT UNION ENGAGED THEIR ACCOUNTING FIRM TO PREPARE THE FILING AS SOON AS POSSIBLE. THE LATE FILING WAS TOTALLY UNINTENTIONAL ON THE CREDIT UNION'S PART. THEIR RETURNS HAVE ALWAYS BEEN FILED TIMELY IN THE PAST. THE CREDIT UNION RESPECTFULLY REQUESTS THE ABATEMENT OF ANY LATE FILING PENALTIES FOR THEIR FINAL YEAR ENDED JULY 1, 2015.