2015-11-11T07:58:42-06:00 2014-12-31 420714325 RSM US LLP 801 NICOLLET MALL SUITE 1100 MINNEAPOLIS MN 55402 990 2014-01-01 520284053 MUNICIPAL EMPLOYEES CREDIT UNION OF BALTIMORE INC MUNI 4107528313 7 E REDWOOD STREET BALTIMORE MD 21202 NATALIE J WOOMER VP/CONTROLLER 4107528313 2015-11-09 1 GERALD B KISSELL P00092658 6123324300 2014 2016-02-25 16:41:14Z MECU OF BALTIMORE INC JOHN HAMILTON 7 E REDWOOD STREET BALTIMORE MD 21202 252407179 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. 12 12 398 0 494745 -24705 0 0 59184565 62393667 9658298 6990274 3463460 0 72306323 69383941 302887 183328 13082543 10319790 21576785 23452463 0 0 0 30929824 31228882 65892039 65184463 6414284 4199478 1228233601 1214980053 1109001629 1085981430 119231972 128998623 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 55,921 OUTSTANDING LOANS TOTALING $698.8 MILLION AT 12/31/14. IN 2014, MECU REFUNDED $1.88 MILLION OF THE INTEREST THAT ITS MEMBERS PAID ON LOANS DURING THE YEAR. IT WAS THE 33RD CONSECUTIVE YEAR THAT MECU HAS RETURNED MONEY TO ITS MEMBERS IN THE FORM OF A LOAN INTEREST REBATE. MECU PROVIDES ITS 111,633 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 33 CONSECUTIVE YEARS. MECU PAID $1.6 MILLION IN EXTRAORDINARY DIVIDENDS TO ITS MEMBERS IN 2014. IN 2014, MECU WON THE LOUISE HERRING PHILOSOPHY IN ACTION MEMBER SERVICE AWARD, THE DESJARDINS ADULT FINANCIAL EDUCATION AWARD AND THE DORA MAXWELL SOCIAL RESPONSIBILITY COMMUNITY SERVICE AWARD. 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 2014 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 6,200 BOOKS TO BALTIMORE CITY SCHOOL CHILDREN, HELD 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, CREDIT REPAIR AND YOUNG ADULT FINANCIAL GROWTH. 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 32678 0 1 398 1 1 1 0 0 0 0 0 X 12 12 0 0 0 0 1 1 1 1 1 0 1 1 1 1 1 1 1 1 1 1 0 X NATALIE J WOOMER 4107528313 7 E REDWOOD STREET BALTIMORE MD 21202 HERMAN WILLIAMS JR CHAIR 2.00 X X 27792 0 0 ERNEST GLINKA VICE CHAIR 2.00 X X 26892 0 0 GARY MCLHINNEY SECRETARY 1.50 X X 21992 0 0 LORRETTA JOHNSON DIRECTOR 1.00 X 12100 0 0 JOHN WALKER III DIRECTOR 1.50 X 18400 0 0 G LOUISE GREEN DIRECTOR 1.50 X 17400 0 0 CHARMAINE THOMAS DIRECTOR 1.50 X 18400 0 0 A SOULA LAMBROPOULOS DIRECTOR 1.50 X 22700 0 0 BENJAMIN MELI JR DIRECTOR 1.50 X 19800 0 0 KALIOPE PARTHEMOS DIRECTOR 0.50 X 3400 0 0 PEGGY PEACOCK DIRECTOR 1.50 X 22900 0 0 ROMAN CLARK SR DIRECTOR 1.50 X 19300 0 0 DEBORAH MOORE-CARTER DIRECTOR 1.50 X 15650 0 0 BERT HASH JR CEO (RETIRED IN AUGUST 2014) 50.00 X 3001705 0 21257 ADRIAN JOHNSON SENIOR VP AND CFO 45.00 X 187804 0 23708 GARY MARTIN SR VP LENDING(JAN-JULY)/CEO(AUG-DEC) 45.00 X 272225 0 42056 KATHY DAY SHELTON SR VP AND COO 45.00 X 175168 0 48052 PATRICIA ROBERTS SR VP OF BRANCH OPERATIONS 45.00 X 156026 0 45080 JOHN HAMILTON VP OF LENDING 45.00 X 229549 0 46886 NATALIE WOOMER VP AND CONTROLLER 45.00 X 145232 0 27636 LAURIE S RUSH VP OF MARKETING 45.00 X 143343 0 41720 DENISE JONES-FRASIER VP OF OPERATIONS 45.00 X 140206 0 29158 CHRISTOPHER LUMLEY VP OF MIS 45.00 X 135115 0 53137 SHEILA LAWSON VP OF BUSINESS SERVICES 45.00 X 126650 0 39705 4959749 0 418395 17 0 1 0 PSCU 560 CARILLON PARKWAY ST PETERSBERG FL 33716 DEBIT/CREDIT CARD PROCESSOR 2487563 FIS PO BOX 4535 CAROL STREAM IL 60197 DATA PROCESSOR/BILL PAYER 1846146 FISERV 75 REMITTANCE DRIVE SUITE 6962 CHICAGO IL 60675 MEMBER STMT MAILING & ACCOUNTING SOFTWAR 1137684 M&T BANK 1 MT PLAZA 10TH FLOOR BUFFALO NY 14203 MEMBER ATM ACCESS & CORRESPONDENT BANK 547721 LENDING SOLUTIONS 2200 POINT BLVD SUITE 110 ELGIN IL 60123 LENDING CALL CENTER 543472 22 INTEREST ON LOANS TO MEMBERS 522100 44269745 44269745 SERVICE CHARGES AND OTHER FEES 522100 9756363 9651283 105080 OTHER NONINTEREST INCOME 522100 8367559 7977894 389665 62393667 6621593 6621593 183391919 183023238 368681 368681 368681 69383941 61898922 494745 6990274 183328 10319790 4508185 12001336 2518764 3184554 1239624 214103 52000 462024 2214566 2399428 2307404 2438443 581007 917048 1327766 265720 PROVISION FOR LOAN LOSS 8248063 ATM/DEBIT CARD EXPENSE 3541353 LOAN SERVICING EXPENSE 3207412 MEMBER STATEMENT EXPENS 1017702 2034843 65184463 14571623 19573325 11633633 47656068 1298916 19619286 725505915 684767308 841387 808658 19259378 14325410 5298212 4933968 404597405 373631260 363428 297350 64123082 63692830 1228233601 1214980053 16576502 12399256 229847 237099 1092195280 1073345075 1109001629 1085981430 X 0 0 0 0 119231972 128998623 119231972 128998623 1228233601 1214980053 4199478 5567173 0 X 0 1 X 1 0 0 1 X 2183238 162047 2021191 5374543 4656956 717587 11701597 9506407 2195190 4933968 AVAILABLE FOR SALE SECURITIES 333657989 F HELD-TO-MATURITY 39973271 C 373631260 ACCRUED INTEREST RECEIVABLE 7814587 NCUSIF DEPOSIT 10019823 CASH SURRENDER VALUE OF LIFE INSURANCE 37897402 OTHER ASSETS 7576122 LOANS AVAILABLE-FOR-SALE 384896 63692830 MEMBERS' SHARES AND SAVINGS 1035183092 BORROWED FUNDS 38161983 1073345075 X 69383941 0 69383941 0 69383941 65184463 0 65184463 0 65184463 PART IV, LINE 2B: MECU HOLDS ESCROW FUNDS FOR TWO SITUATIONS. $174,560 IN ESCROW WAS 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. MECU ALSO HAS $62,539 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. 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. WORLDWIDE FOUNDATION FOR CREDIT UNIONS 5710 MINERAL POINT RD MADISON WI 53705 396093210 501(C)3 7000 IMPLEMENT DEVELOPMENT PROGRAMS FOR WORLD'S WORKING POOR. VILLAGE LEARNING PLACE 2521 SAINT PAUL STREET BALTIMORE MD 21218 522109848 501(C)3 6700 LIBRARY BALTIMORE CASH CAMPAIGN 217 E REDWOOD ST STE 1500 BALTIMORE MD 21202 522278450 501(C)3 7500 PROVIDES FREE TAX PREPARATION AND ASSET BUILDING SERVICES TO LOW INCOME PEOPLE. THE 6TH BRANCH 2400 BOSTON ST SUITE 102 BALTIMORE MD 21224 272516396 501(C)3 8500 USES VETERNS TO EXECUTE COMMUNITY SERVICE INITIATIVES. 6 0 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 X 1 1 0 BERT HASH JR CEO (RETIRED IN AUGUST 2014) 373516 0 60000 0 2568189 0 17222 0 6039 0 3024966 0 1548611 0 ADRIAN JOHNSON SENIOR VP AND CFO 179114 0 8000 0 690 0 15428 0 10326 0 213558 0 0 0 GARY MARTIN SR VP LENDING(JAN-JULY)/CEO(AUG-DEC) 270169 0 0 0 2056 0 42056 0 2544 0 316825 0 0 0 KATHY DAY SHELTON SR VP AND COO 166448 0 8000 0 720 0 26295 0 23462 0 224925 0 0 0 PATRICIA ROBERTS SR VP OF BRANCH OPERATIONS 146764 0 8000 0 1262 0 30802 0 16173 0 203001 0 0 0 JOHN HAMILTON VP OF LENDING 147672 0 80600 0 1277 0 38966 0 9667 0 278182 0 0 0 NATALIE WOOMER VP AND CONTROLLER 138988 0 5600 0 644 0 20641 0 9179 0 175052 0 0 0 LAURIE S RUSH VP OF MARKETING 137136 0 5600 0 607 0 25093 0 18797 0 187233 0 0 0 DENISE JONES-FRASIER VP OF OPERATIONS 108729 0 30600 0 877 0 29158 0 1381 0 170745 0 0 0 CHRISTOPHER LUMLEY VP OF MIS 129135 0 5600 0 380 0 30787 0 24708 0 190610 0 0 0 SHEILA LAWSON VP OF BUSINESS SERVICES 100203 0 25600 0 847 0 32710 0 8419 0 167779 0 0 0 PART I, LINES 4A-B A. SOULA LAMBROPOULOS RECEIVED A SEVERANCE PAYMENT IN THE AMOUNT OF $14,000 IN 2014. THE FOLLOWING INDIVIDUALS PARTICIPATED IN A NON-QUALIFIED RETIREMENT PLAN AND ALL COMPENSATION HAS BEEN PROPERLY REPORTED IN PART VII AND SCHEDULE J: BERT HASH, JR. - $2,556,951 DISBURSED IN 2014 ADRIAN JOHNSON - NO DISBURSEMENT IN 2014 GARY MARTIN - NO DISBURSEMENT IN 2014 KATHY DAY SHELTON - NO DISBURSEMENT IN 2014 PATRICIA ROBERTS - NO DISBURSEMENT IN 2014 NATALIE WOOMER - NO DISBURSEMENT IN 2014 LAURIE RUSH - NO DISBURSEMENT IN 2014 JOHN HAMILTON - NO DISBURSEMENT IN 2014 DENISE JONES-FRASIER - NO DISBURSEMENT IN 2014 CHRISTOPHER LUMLEY - NO DISBURSEMENT IN 2014 SHEILA LAWSON - NO DISBURSEMENT IN 2014 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 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 RESOURCE 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 IN JANUARY 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).