2015-11-16T09:53:11-06:00 2014-12-31 390758449 WIPFLI LLP PO BOX 8010 WAUSAU WI 544028010 990 2014-01-01 390945701 COVANTAGE CREDIT UNION COVA 7156274336 723 6TH AVENUE PO BOX 107 ANTIGO WI 544090107 DOUG ANDERSON CHEIF FINANCIAL OFFICER 7156274336 2015-11-10 1 MARY A COATES CPA P00134220 7158453111 2015-11-10 2014 2016-02-25 16:41:14Z DOUGLAS ANDERSON 723 6TH AVENUE PO BOX 107 ANTIGO WI 544090107 47116542 0 2157 X WWW.COVANTAGECU.ORG X 1953 WI A COOPERATIVE, NONPROFIT CORPORATION, INCORPORATED UNDER WISCONSIN STATE LAW TO ENCOURAGE THRIFT AMONG ITS MEMBERS, CREATE A SOURCE OF CREDIT AT A FAIR AND REASONABLE COST, AND PROVIDE OPPORTUNITY FOR ITS MEMBERS TO IMPROVE THEIR ECONOMIC AND SOCIAL CONDITIONS. 10 10 392 0 37677 -12412 0 0 43652563 43743206 1090094 1393500 146788 150187 44889445 45286893 161892 123063 0 0 13293035 15108424 0 0 0 20969028 19576336 34423955 34807823 10465490 10479070 1091201777 1127705215 975502853 1001043780 115698924 126661435 A COOPERATIVE, NONPROFIT CORPORATION, INCORPORATED UNDER WISCONSIN STATE LAW TO ENCOURAGE THRIFT AMONG ITS MEMBERS, CREATE A SOURCE OF CREDIT AT A FAIR AND REASONABLE COST, AND PROVIDE OPPORTUNITY FOR ITS MEMBERS TO IMPROVE THEIR ECONOMIC AND SOCIAL CONDITIONS. 0 0 COVANTAGE HAS 83,141 MEMBERS, AND FOR THOSE LOOKING TO SAVE, COVANTAGE STRIVES TO PAY DIVIDEND RATES THAT ARE ABOVE MARKET RATES, EVEN IN THESE TOUGH ECONOMIC TIMES. AS OF DECEMBER 31, 2014, COVANTAGE WAS PAYING AN ANNUAL PERCENTAGE RATE OF 0.40% ON REGULAR SHARE ACCOUNTS WHEN MANY OTHER FINANCIALS CONTINUED TO SIGNIFICANTLY DROP THEIR RATES AS THE ECONOMIC CONDITIONS CONTINUED TO DETERIORATE. OUR MINIMUM BALANCE OF ONLY $10 CONTINUED TO BE MAINTAINED, WHICH HELPED MANY MEMBERS IN TIMES OF HARDSHIP. MEMBERS WERE NOT ONLY ABLE TO RECEIVE THE BENEFIT OF HIGHER THAN AVERAGE RATES DURING POOR ECONOMIC CONDITIONS, BUT COVANTAGE STILL REWARDED MEMBERS WITH AN ADDITIONAL $1,727,821 IN PATRONAGE PAYMENTS IN 2014. COVANTAGE CONTINUES TO OFFER COST-FRIENDLY PRODUCTS TO OUR MEMBERS. WE NOT ONLY DO THIS THROUGH OUR COMPETITIVE RATES, BUT ALSO BY GOING ABOVE AND BEYOND TO HELP THOSE IN NEED. WE CONTINUE TO OFFER COST-FRIENDLY OPTIONS TO PAYDAY LENDERS SUCH AS KWIK CASH OVERDRAFT PROTECTION LOANS WITH NO SERVICE CHARGE OR TRANSFER FEE, COURTESY PAY CHECKING ACCOUNT SERVICES ALSO WITHOUT HEFTY FEES, IN ADDITION TO CREDIT CARDS WITH A FIXED LOW RATE OF 7.95%. OTHER LOW-COST OPTIONS INCLUDE OUR OWN PAYDAY ADVANCE LOANS IN ADDITION TO SHARE-SECURED CREDIT CARDS FOR THOSE MEMBERS THAT MAY NEED TO REBUILD CREDIT. COVANTAGE ALSO STRIVES TO SUPPORT FINANCIAL LITERACY, INCLUDING PROVIDING ACCEL CREDIT COUNSELING AS A FREE SERVICE TO OUR MEMBERS TO ASSIST WITH BUDGETING, UNDERSTANDING CREDIT REPORTS, MONEY MANAGEMENT, AND DEBT REPAYMENT. THIS FREE SERVICE SAVES MEMBERS $25-$50 PER MONTH THAT IS COMMONLY CHARGED BY OTHER CREDIT COUNSELING AGENCIES. IN ADDITION, COVANTAGE OFFERS COMMUNITY EDUCATION EVENTS AND PROMOTES FINANCIAL LITERACY TO STUDENTS THROUGH KIDZ CREDIT UNIONS OPERATED THROUGH LOCAL MIDDLE SCHOOLS. 0 0 0 0 0 0 0 0 0 1 0 0 0 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 1 0 0 0 1 40857 0 1 392 1 1 1 0 0 0 0 0 0 0 0 0 X 10 10 0 0 0 0 1 1 1 1 1 0 0 1 1 0 0 1 1 1 1 0 X BRIAN PRUNTY PRESIDENTCEO 7156274336 723 SIXTH AVE ANTIGO WI 54409 CHARLES DALLAS DIRECTOR 2.00 X 2950 0 0 JENNIFER GRETZINGER DIRECTOR 2.00 X 2950 0 0 MATT KOLLING DIRECTOR 2.00 X 2500 0 0 SUSAN THORSHEIM DIRECTOR 2.00 X 1250 0 0 LEE SILER DIRECTOR 2.00 X 1000 0 0 DAVID VISSER DIRECTOR (THRU FEBRUARY) 2.00 X 450 0 0 JANELLE MARKGRAF CREDIT COMMITTEE 2.00 X 2950 0 0 DWIGHT NELSON SECRETARY 2.00 X X 2950 0 0 KAREN NOVAK TREASURER 2.00 X X 2950 0 0 ROBERT MACINTOSH VICE-CHAIRPERSON 2.00 X X 2950 0 0 PAUL PAYANT CHAIRPERSON 3.00 X X 2950 0 0 BRIAN PRUNTY PRESIDENT/CEO 40.00 X 388677 0 38209 DOUGLAS ANDERSON CHIEF FINANCIAL OFFICER 40.00 X 170517 0 27092 ROBERT VAN ABEL CHIEF INFORMATION OFFICER 40.00 X 158581 0 29897 STEVE WILDER CHIEF COMMERCIAL OFFICER 40.00 X 158533 0 20652 SHERRY AULIK SVP ADMINISTRATIVE OFFICER 40.00 X 148349 0 28632 STACY BOUCHE CHIEF MORTGAGE LENDING OFFICER 40.00 X 106204 0 21373 BRYAN ERMELING VP SOUTHERN REGION 40.00 X 96876 0 20589 CHARLES ZANAYED SVP CHIEF RETAIL OFFICER 40.00 X 147611 0 28437 1401198 0 214881 7 0 1 0 0 INTEREST ON LOANS 522100 35857099 35857099 CREDIT AND DEBIT CARD INTERCHANGE 522200 4080339 4048816 31523 SERVICE FEES 522100 2872298 2866144 6154 CUNA INSURANCE INCOME 522100 839489 839489 OTHER INCOME 524298 93981 93981 43743206 1505732 1505732 107423 107423 42764 0 42764 42764 42764 1717417 1829649 -112232 -112232 -112232 45286893 43855716 37677 1393500 123063 1616079 9837404 585427 2172420 897094 78578 133801 1415 1036375 1443869 801561 1360195 223802 141242 4 1690774 454541 DIVIDENDS PAID ON MEMBE 6141592 LOAN SERVICING EXPENSE 2740939 PROVISION FOR LOAN LOSS 1712000 SERVICE CONTRACT EXPENS 1366925 248723 34807823 8503716 10264973 41141949 32504203 23345 38075 790801480 868416664 767075 1032727 34027684 10868359 20623803 23159325 150351948 135269541 56832000 34896936 22156461 22122771 1091201777 1127705215 2990604 3531500 972512249 997512280 975502853 1001043780 X 0 0 0 0 115698924 126661435 115698924 126661435 1091201777 1127705215 X 10479070 452214 31227 X X 0 1 X 1 0 4413768 4413768 20454038 5039856 15414182 9159878 5828503 3331375 23159325 SHARE DRAFTS 134389422 REGULAR SHARES 266619707 MONEY MARKET SHARES 288033948 SHARE CERTIFICATES 192767285 IRA/KEOUGH ACCOUNTS 104665650 OTHER SHARES 8532118 NONMEMBER DEPOSITS 2504150 997512280 X 45739107 452214 452214 45286893 0 45286893 34810264 2441 2441 34807823 0 34807823 PART X, LINE 2: THE CREDIT UNION HAS FILED TAX RETURNS IN THE PAST FOR ACTIVITIES THEY HAVE 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 FINANCIAL POSITION OR RESULTS OF OPERATIONS. THE CREDIT UNION EVALUATED ITS TAX POSITIONS AND DETERMINED NO UNCERTAIN TAX POSITIONS EXIST AS OF DECEMBER 31, 2014. THE CREDIT UNION'S 2010 THROUGH 2013 TAX YEARS ARE OPEN FOR EXAMINATION BY FEDERAL AND STATE TAXING AUTHORITIES. PART XII, LINE 2D - OTHER ADJUSTMENTS: TRANSITION PROPERTIES, LLC 2,441. 1 SHAWANO COUNTRY VISION 1263 S MAIN STREET SHAWANO WI 54166 390741103 501(C)(6) 10000 GENERAL SUPPORT 0 1 PART I, LINE 2: THE ORGANIZATION MONITORS THE USE OF THEIR GRANT FUNDS CLOSELY. 1 X X X X 0 0 0 BRIAN PRUNTY PRESIDENT/CEO 380938 0 7739 0 0 0 20480 0 17729 0 426886 0 0 0 DOUGLAS ANDERSON CHIEF FINANCIAL OFFICER 166960 0 3557 0 0 0 14120 0 12972 0 197609 0 0 0 ROBERT VAN ABEL CHIEF INFORMATION OFFICER 155190 0 3391 0 0 0 13419 0 16478 0 188478 0 0 0 STEVE WILDER CHIEF COMMERCIAL OFFICER 155285 0 3248 0 0 0 12400 0 8252 0 179185 0 0 0 SHERRY AULIK SVP ADMINISTRATIVE OFFICER 145280 0 3069 0 0 0 12228 0 16404 0 176981 0 0 0 CHARLES ZANAYED SVP CHIEF RETAIL OFFICER 144613 0 2998 0 0 0 12048 0 16389 0 176048 0 0 0 FORM 990, PART VI, SECTION A, LINE 6 COVANTAGE CREDIT UNION IS OWNED AND OPERATED BY ITS 83,141 MEMBERS AND A VOLUNTEER BOARD OF DIRECTORS. A SAVINGS ACCOUNT WITH A MINIMAL $10 DEPOSIT MEETS THE REQUIREMENT OF BEING A MEMBER-OWNER JUST AS LONG AS THEY MEET ONE OF THE OTHER MEMBERSHIP REQUIREMENTS SUCH AS RESIDING IN THE CHARTERED AREA, A FAMILY MEMBER IS ALREADY A MEMBER, ARE A MEMBER OF SERVO FS COOPERATIVE IN ANTIGO, OR ARE A STUDENT/ALUMNI OF A POST-SECONDARY SCHOOL IN MARATHON COUNTY. OUR MEMBER-OWNERS BENEFIT FROM BELONGING TO COVANTAGE THROUGH LOWER LOAN RATES, HIGHER SAVINGS RATES, FEWER FEES, IN ADDITION TO THE INTRODUCTION OF NEW PRODUCTS AND OTHER INCENTIVES. FORM 990, PART VI, SECTION A, LINE 7A THE BOARD OF DIRECTORS ARE ELECTED BY THE MEMBERSHIP UTILIZING THEIR ONE VOTE PER MEMBER. FORM 990, PART VI, SECTION A, LINE 7B THE MEMBERS WOULD NEED TO APPROVE DECISIONS SUCH AS CHANGE OF NAME OR A MERGER DECISION. FORM 990, PART VI, SECTION B, LINE 11 THE BOARD OF DIRECTORS WAS PRESENTED WITH A COPY OF FORM 990 AT A MONTHLY BOARD MEETING, WHICH ALLOW THEM TO REVIEW IT PRIOR TO FILING WITH THE INTERNAL REVENUE SERVICE. FORM 990, PART VI, SECTION B, LINE 12 ALL EMPLOYEES, IN ADDITION TO DIRECTORS AND CREDIT COMMITTEE MEMBERS. NO DIRECTOR IS ALLOWED TO BECOME AN EMPLOYEE, OR VICE-VERSA, WHILE EITHER EMPLOYED OR SERVICING ON THE BOARD, OR WITHIN ONE YEAR AFTER THEIR TERMINATION/ENDING OF BOARD TERM. IN REGARDS TO LENDING, ALL EMPLOYEE LOANS ARE REVIEWED TO ENSURE NO CONFLICTS OF INTEREST HAVE OCCURRED WITHIN THE TRANSACTION. ANY POTENTIAL CONFLICTS ARE REPORTED TO THE BOARD FOR REVIEW. ANY POTENTIAL CONFLICTS ARE REVIEWED BY THE SVP COMMERCIAL LENDING AND THEN REPORTED TO THE BOARD OF DIRECTORS. SHOULD A CONFLICT OF INTEREST ARISE, IT WOULD BE ACTED UPON ON A CASE-BY-CASE MATTER, WITH APPROPRIATE REPERCUSSIONS TAKEN AS FOUND APPROPRIATE BY COVANTAGE CU. FORM 990, PART VI, SECTION B, LINE 15 THE PROCESS OF DETERMINING COMPENSATION FOR OFFICERS INCLUDING DOUG ANDERSON, STEVE WILDER, ROBERT VAN ABEL, SHERRY AULIK, STACY BOUCHE, BRYAN ERMELING, CHARLES ZANAYED AND BRIAN PRUNTY (ALSO CEO), INCLUDE AN ANNUAL COMPARABILITY SURVEY BASED OFF OF DATA FROM OTHER CREDIT UNIONS OF SIMILAR ASSET SIZE TO COVANTAGE. THIS DATA IS USED TO CREATE AN INDUSTRY AVERAGE FOR EACH POSITION. THE MIDPOINT OF OUR PAYGRADE IS TARGETED TO BE COMPARABLE TO THAT INDUSTRY AVERAGE. THESE SURVEYS ARE COMPLETED ANNUALLY, BEGINNING IN SEPTEMBER/OCTOBER. THE NEW SALARY AMOUNTS ARE THEN APPROVED BY THE BOARD IN NOVEMBER FOR THE UPCOMING YEAR. SALARIES ARE THEN ADJUSTED ON EACH INDIVIDUAL'S ANNUAL REVIEW DATE. FOR THOSE INDIVIDUALS LISTED, THIS PROCESS WAS LAST COMPLETED IN 2013 FOR THE 2014 CALENDAR YEAR. FORM 990, PART VI, SECTION C, LINE 19 COVANTAGE CREDIT UNION MAKES ITS GOVERNING DOCUMENTS, IN ADDITION TO ITS CONFLICT OF INTEREST POLICY, AVAILABLE TO THE PUBLIC UPON REQUEST. FINANCIAL STATEMENTS ARE AVAILABLE BY VIEWING THE NCUA 5300 CALL REPORT OR BY OBTAINING AN ANNUAL STATEMENT BROCHURE AVAILABLE IN THE LOBBIES OF ALL COVANTAGE CREDIT UNION BRANCHES. FORM 990, PART XI, LINE 9: OTHER COMPREHENSIVE INCOME 33,668. TRANSITION PROPERTIES - CONSOLIDATED STATEMENT -2,441. FORM 990, PART XII, LINE 2C: NO CHANGE IN THE PROCESS FROM THE PRIOR YEAR. TRANSITION PROPERTIES LLC 723 6TH AVENUE PO BOX 107 ANTIGO WI 544090107 461713416 OWN AND MANAGE OTHER REAL ESTATE OWNED BY COVANTAGE CREDIT UNION. WI -2441 3139 COVANTAGE CREDIT UNION