2015-08-14T08:28:39-05:00 2014-12-31 410746749 CLIFTONLARSONALLEN LLP PO BOX 217 AUSTIN MN 55912 990 2014-01-01 741951016 FIRST SERVICE CREDIT UNION FIRS 7136768944 9621 W SAM HOUSTON PARKWAY N HOUSTON TX 77064 JANA HEATON CHIEF FINANCIAL OFFICER 7136768944 2015-08-13 1 SCOTT A FELTEN P00001026 5074347000 2015-08-13 2014 2016-03-07 17:11:31Z DAVID BLEAZARD 9621 W SAM HOUSTON PARKWAY N HOUSTON TX 77064 60452542 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 10 182 10 570778 0 0 0 23431207 28171310 1768922 1950600 0 0 25200129 30121910 0 0 1475942 2206642 9178962 9929413 0 0 0 11360714 12384283 22015618 24520338 3184511 5601572 467547841 533714836 425859429 484100062 41688412 49614774 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 52,232 MEMBER-OWNED SAVINGS ACCOUNTS AS OF DECEMBER 31, 2014. 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 11458 0 1 182 0 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 SECRETARY 1.00 X X 0 0 0 KOURTNEY CALHOUN TREASURER 1.00 X X 0 0 0 PAUL LOVE DIRECTOR 1.00 X 0 0 0 JACK BARTELL DIRECTOR 1.00 X 0 0 0 DOUG ESMOND DIRECTOR 1.00 X 0 0 0 DAVID ITZ DIRECTOR 1.00 X 0 0 0 MERV SWAN DIRECTOR 1.00 X 0 0 0 WAYNE TAYLOR DIRECTOR 1.00 X 0 0 0 DAVID BLEAZARD PRESIDENT/CEO 50.00 X 364532 0 47100 JANA HEATON CFO 50.00 X 144159 0 21544 DEBRA LITTLE CLO 50.00 X 141835 0 21397 MIKE MCWETHY COO 50.00 X 182053 0 39128 FRANK HALSTEAD CIO 50.00 X 155938 0 33067 MICHAEL ALEXANDER FINANCIAL ADVISOR 50.00 X 134200 0 3701 DEBBIE WASHINGTON BRANCH MANAGER 50.00 X 100363 0 17206 1223080 0 183143 8 0 1 0 AMERICAN SERVICE GROUP PO BOX 3400 CONROE TX 77305 WARRANTY 2164108 SLI GROUP INC 10200 KATY FREEWAY HOUSTON TX 77043 HOME OFFICE REMODEL/RENOVATION 412905 MERIDIAN CONSTRUCTORS LLC 6105 BRITTMOORE ROAD SUITE B HOUSTON TX 77041 TUNNNEL BRANCH RENOVATION 354094 LEVEL 5 LLC 2018 POWERS FERRY RD SE SUITE 750 ATLANTA GA 30339 NEW BRANCH DESIGN DEVELOPMENT 272637 COMCAST PO BOX 37601 PHILADELPHIA PA 19101 COMMUNICATION CHARGES 268323 19 LOAN INTEREST 522100 18078378 18078378 OTHER FEES & CHARGES 522100 10092932 9522154 570778 28171310 1874495 1874495 30400778 5959 30324873 5759 75905 200 76105 76105 30121910 27600532 570778 1950600 2206642 577335 7486922 473571 783955 607630 106253 163562 55604 2120599 1137765 2706325 749199 248230 828123 PROVISION FOR LOAN LOSS 2794330 LOAN SERVICING EXPENSE 835621 SECURITY EXPENSE 438375 OTHER EXPENSES 159746 40551 24520338 8664859 26660370 2531680 986103 292778566 370662859 718326 559765 23871658 8048406 10589708 15823252 132085181 101118654 6999115 4297966 13180406 13605867 467547841 533714836 9803238 12295939 91263 476210 415964928 471327913 425859429 484100062 X 0 0 0 0 41688412 49614774 41688412 49614774 467547841 533714836 X 5601572 2400695 -75905 X X 0 1 X 1 0 0 1 X 3227716 3227716 9604628 1903020 7701608 334895 297482 37413 7537541 5847904 1689637 3166878 3166878 15823252 MEMBER SHARES AND CDS 471327913 471327913 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 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 AND 2013. THE CREDIT UNION'S 2011 THROUGH 2014 TAX YEARS ARE OPEN FOR EXAMINATION BY FEDERAL AND STATE TAXING AUTHORITIES. THE INCOME FROM THE CUSO, 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 261584 0 102442 0 506 0 26356 0 20744 0 411632 0 0 0 JANA HEATON CFO 124432 0 19449 0 278 0 14056 0 7488 0 165703 0 0 0 DEBRA LITTLE CLO 122002 0 18907 0 926 0 13925 0 7472 0 163232 0 0 0 MIKE MCWETHY COO 157458 0 24289 0 306 0 18385 0 20743 0 221181 0 0 0 FRANK HALSTEAD CIO 133178 0 22760 0 0 0 14146 0 18921 0 189005 0 0 0 PART I, LINE 1A GOLF CLUB MEMBERSHIP IS PROVIDED FOR THE CEO THAT IS USED PRIMARILY FOR BUSINESS USE, BUT THE CLUB ACCESS IS AVAILABLE FOR PERSONAL USE. THE PORTION USED FOR PERSONAL USE IS TAXED TO THE CEO. PART I, LINE 4B DAVID BLEAZARD, PRESIDENT/CEO AND MIKE MCWETHY, COO PARTICIPATED IN NON-QUALIFIED RETIREMENT PLANS. THERE WERE NO DISTRIBUTIONS DURING 2014. DAVID BLEAZARD - GOLF CLUB MEMBERSHIP - 9,561 - INCLUDED IN TAXABLE INCOME DAVID BLEAZARD - PERSONAL USE OF COMPANY VEHICLE - $9,369 - INCLUDED IN TAXABLE INCOME 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 -75,905. FORM 990, PART XII, LINE 2C: THE PROCESS HAS NOT CHANGED SINCE 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 77064 2155014 FIRST SERVICE CREDIT UNION