2015-11-16T08:11:28-06:00 2014-12-31 741699466 FITTS ROBERTS & CO PC 5718 WESTHEIMER SUITE 800 HOUSTON TX 77057 990 2014-01-01 741260543 TEXAS DOW ECU TEXA 3615809629 1001 FM 2004 LAKE JACKSON TX 77566 RHONDA KLEINECKE SVP & CFO 3615809629 2015-11-04 1 ROSE KAY PARKER CPA P00177405 7132605230 2015-10-07 2014 2016-04-25 22:37:26Z RHONDA KLEINECKE 1001 FM 2004 LAKE JACKSON TX 77566 160173345 0 X WWW.TDECU.ORG X 1955 TX INCREASE ECONOMIC WELL-BEING OF OUR MEMBERS THROUGH NOT-FOR-PROFIT, COOPERATIVE FINANCIAL SERVICES. 10 10 905 0 2251143 -4130140 0 0 152699284 159322545 330321 361065 -108727 -275585 152920878 159408025 0 0 0 0 48071864 52314129 0 0 0 76199112 89684815 124270976 141998944 28649902 17409081 2163885036 2429349528 1970473843 2217993557 193411193 211355971 INCREASE ECONOMIC WELL-BEING OF OUR MEMBERS THROUGH NOT-FOR-PROFIT, COOPERATIVE FINANCIAL SERVICES. 0 0 TDECU IS A NOT-FOR-PROFIT FINANCIAL COOPERATIVE WITH MORE THAN 203,128 MEMBERS. TDECU CURRENTLY HAS 42 MEMBER SERVICE LOCATIONS, 4 INSURANCE LOCATIONS, 5 TITLE LOCATIONS, AND OFFERS A COMPLETE SELECTION OF CONVENIENT AND COMPETITIVE PRODUCTS AND SERVICES. 0 0 0 0 0 0 0 1 0 1 0 0 0 1 0 1 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 1 X 67197 0 1 905 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 X 10 10 0 0 0 0 1 1 0 1 1 0 1 1 0 1 1 1 1 1 1 1 0 X X RHONDA L KLEINECKE SVP CFO 3615809629 1001 FM 2004 LAKE JACKSON TX 77566 DAN BUCHE DIRECTOR 4.00 X 41521 0 0 GEORGE HORNBACK DIRECTOR 4.00 X 22097 750 0 PEGGY MILTENBERGER DIRECTOR 4.00 X 24375 0 0 DAVID OZUNA DIRECTOR 4.00 X 21000 750 0 DICK SMITH DIRECTOR 4.00 X 43539 0 0 MARCUS STEPHENSON DIRECTOR 4.00 X 10875 0 0 MIKE TRACY DIRECTOR 4.00 X 20972 0 0 ED ZINGLEMAN DIRECTOR 4.00 X 21486 0 0 ED SPEED DIRECTOR 4.00 X 37373 0 0 JACK ANTONINI DIRECTOR 4.00 X 13484 0 0 ROLAND HENDRICKS DIRECTOR 4.00 X 29625 0 0 FRANK COE DIRECTOR 4.00 X 17625 0 0 EILEEN CAMPBELL DIRECTOR 4.00 X 20250 0 0 ROBERT BALDWIN DIRECTOR 4.00 X 16748 0 0 MILTON STEVENS SENIOR VP & CIO 40.00 X X 310269 0 20095 STEPHANIE SHERRODD PRESIDENT & CEO 40.00 X 676736 0 20095 ROBERT LOCKETT III SENIOR VP & CSO 40.00 X 442420 0 2330 RHONDA KLEINECKE SENIOR VP & CFO 40.00 X 338887 0 20095 CHARLES SMITH SENIOR VP & CLO 40.00 X 282010 0 16038 COURTLAND CROUCHET SENIOR VP & CRO 40.00 X 265884 0 19698 EDWARD BIRDSONG PRESIDENT - TDECU RE 40.00 X 247496 0 18448 LUCILLA HENDERSON VP- COMMUNITY RELATIONS 40.00 X 174670 0 16744 AMBRISH SUNDARAM VP - INFORMATION SYSTEMS 40.00 X 220004 0 13449 SHAMIK DARU VP & CONTROLLER 40.00 X 193157 0 16831 GARY LANIER VP-RETAIL LANDING 40.00 X 186401 0 17145 TANGY NAPIER VP-RETAIL DELIVERY 40.00 X 206260 0 14313 VANDI THERIOT VP-TALENT SERVICES 40.00 X 205195 0 12394 WESLEY WOLFF PRESIDENT-INS AGENCY 40.00 X 259452 0 17821 BONITA TUCKER VP-SERVICE OPERATIONS 40.00 X 191669 0 15278 ANDREW WAYMAN VP - CTO 40.00 X 190009 0 8467 PAUL O'MALLEY VP - ECOMMERCE 40.00 X 179083 0 15900 JASON SCHNEIDER VP - FINANCE 40.00 X 150877 0 15238 TAMMIE BELL REAL ESTATE AGENT 40.00 X 286931 0 18284 RYAN BIRDSONG REAL ESTATE AGENT 40.00 X 205285 0 15872 KENNETH MCGEHEE REAL ESTATE AGENT 40.00 X 186885 0 16241 ROBYN COCHRAN WEALTH ADVISOR 40.00 X 223499 0 9319 JAMES BOLAND INSURANCE AGENT - PRODUCER 40.00 X 168540 0 13122 6132589 1500 353217 32 0 1 0 BURTON CONSTRUCTION COMPANY 10550 WESTPARK DRIVE HOUSTON TX 77042 CONSTRUCTION 2241185 SEIZE THE WORLD INC 450 GEARY ST SUITE 100 SAN FRANCISCO CA 94102 CONSULTING SERVICES AND COACHING 353648 LOCKE LORD BISSELL & LIDDELL LLP PO BOX 201072 HOUSTON TX 77216 ATTORNEY LEGAL FEES 333702 KELLY SERVICES INC PO BOX 530437 ATLANTA GA 30353 STAFFING PROVIDER 263206 CHRISTIAN SMITH & JEWELL LLP 2302 FANNIN SUITE 500 HOUSTON TX 77002 ATTORNEY LEGAL FEES 221522 12 INTEREST ON LOANS 522100 108394967 108394967 FEE INCOME 522100 41327187 39946740 1380447 OTHER OPERATING INCOME 522100 9600391 8430234 1170157 159322545 320560 320560 76278 729547 80358 684962 -4080 44585 40505 40505 LOAN, LLC 522100 23375 23375 CENTURY OAK TITLE, LLC 522100 -298960 -299461 501 -275585 159408025 156795316 2251143 361566 5000858 35163993 1130546 7969285 3049447 661658 388128 6199372 6607897 8415726 7549025 1580051 49350 13988440 6355636 1009980 OTHER SERVICE FEES 18919967 PROVISION FOR LOAN LOSS 15538001 LOAN SERVICING EXPENSE 2421584 141998944 X 12027341 13151068 140234409 110030837 14128622 26539678 1902070856 2160887582 99645391 46010403 48347256 53634988 360714 285014 4944930 18950507 41770908 45869854 2163885036 2429349528 11080061 27618090 394061 424768 5602739 6383986 130168546 130171758 1823228436 2053394955 1970473843 2217993557 X 0 0 0 0 193411193 211355971 193411193 211355971 2163885036 2429349528 X 17409081 5963 529734 X X 0 1 X 1 0 0 1 X 7023113 7023113 35369039 9393525 25975514 7580346 4228809 3351537 41532891 32388069 9144822 8140002 8140002 53634988 MEMBERS' SHARES AND SAVINGS ACCOUNTS 2053394955 2053394955 X 161645761 2278242 2278242 159367519 40506 40506 159408025 145194174 3237619 3237619 141956555 42389 42389 141998944 PART IV, LINE 1B: CUSTODIAL FUNDS IN ESCROW REPRESENT PAYMENTS FOR PRINCIPAL AND INTEREST, AS WELL AS FOR TAXES AND INSURANCE. THESE AMOUNTS ARE HELD IN ESCROW, WITH A CORRESPONDING LIABILITY RECORDED UNTIL THE DATE THAT SUCH FUNDS ARE RELEASED BY THE CREDIT UNION FOR THEIR INTENDED PURPOSE. THE AUDITED FINANCIAL STATEMENT OFFSETS THE ESCROW AND AGENCY FUNDS BY THE AMOUNT OF THE SEGREGATED SPECIAL BANK ACCOUNTS AND EXCLUDES THOSE ACCOUNTS FROM CORPORATE ASSETS. THIS RETURN INCLUDES THE SEGREGATED CASH ACCOUNTS IN FORM 990, PART X ON LINES 1 AND 2 AND DISCLOSES THE ESCROW ACCOUNT BALANCES ON LINE 21. PART IV, LINE 2B: CUSTODIAL FUNDS IN ESCROW REPRESENT PAYMENTS FOR PRINCIPAL AND INTEREST, AS WELL AS FOR TAXES AND INSURANCE. THESE AMOUNTS ARE HELD IN ESCROW, WITH A CORRESPONDING LIABILITY RECORDED UNTIL THE DATE THAT SUCH FUNDS ARE RELEASED BY THE CREDIT UNION FOR THEIR INTENDED PURPOSE. THE AUDITED FINANCIAL STATEMENT OFFSETS THE ESCROW AND AGENCY FUNDS BY THE AMOUNT OF THE SEGREGATED SPECIAL BANK ACCOUNTS AND EXCLUDES THOSE ACCOUNTS FROM CORPORATE ASSETS. THIS RETURN INCLUDES THE SEGREGATED CASH ACCOUNTS IN FORM 990, PART X ON LINES 1 AND 2 AND DISCLOSES THE ESCROW ACCOUNT BALANCES ON LINE 21. PART X, LINE 2: THE CREDIT UNION IS EXEMPT, BY STATUTE, FROM FEDERAL AND STATE INCOME TAXES. TEXAS DOW EMPLOYEES CREDIT UNION IS A STATE-CHARTERED CREDIT UNION DESCRIBED IN INTERNAL REVENUE CODE ("IRC") SECTION 501(C)(14). AS SUCH, THE CREDIT UNION IS EXEMPT FROM FEDERAL TAXATION OF INCOME DERIVED FROM THE PERFORMANCE OF ACTIVITIES THAT ARE IN FURTHERANCE OF ITS EXEMPT PURPOSES. HOWEVER, IRC SECTION 511 IMPOSES A TAX ON THE UNRELATED BUSINESS INCOME (AS DEFINED IN SECTION 512) DERIVED BY STATE-CHARTERED CREDIT UNIONS. MANY STATES HAVE SIMILAR LAWS. THE SPECIFIC APPLICATION OF SECTION 512 TO THE VARIOUS ACTIVITIES CONDUCTED BY STATE-CHARTERED CREDIT UNIONS HAS BEEN AN ISSUE FOR MANY YEARS. IN 2007, THE INTERNAL REVENUE SERVICE ("IRS") ISSUED A SERIES OF TECHNICAL ADVICE MEMORANDA ("TAM") TO A NUMBER OF STATE-CHARTERED CREDIT UNIONS LOCATED THROUGHOUT THE COUNTRY. IN THESE TAMS, THE IRS RULED CERTAIN PRODUCTS AND SERVICES TO BE SUBJECT TO TAXATION AS UNRELATED BUSINESS INCOME. IN LIGHT OF THE TAMS, THE CREDIT UNION HAS ASSESSED ITS ACTIVITIES AND ANY POTENTIAL FEDERAL OR STATE INCOME TAX LIABILITY. IN THE OPINION OF MANAGEMENT, ANY LIABILITY ARISING FROM FEDERAL OR STATE TAXATION OF ACTIVITIES DEEMED TO BE UNRELATED TO ITS EXEMPT PURPOSE IS NOT EXPECTED TO HAVE A MATERIAL EFFECT ON THE CREDIT UNION'S FINANCIAL CONDITION OR RESULTS OF OPERATIONS. PART XI, LINE 2D - OTHER ADJUSTMENTS: CENTURY OAKS TITLE, LLC - GROSS REVENUE 1,979,282. K-1 ACTIVITIES FROM CENTURY OAKS TITLE, LLC 298,960. PART XI, LINE 4B - OTHER ADJUSTMENTS: GAIN/LOSS ON DISPOSITION OF ASSETS 40,505. ROUNDING 1. PART XII, LINE 2D - OTHER ADJUSTMENTS: CENTURY OAKS TITLE, LLC - TOTAL EXPENSES 3,203,359. MISCELLANEOUS ADJUSTMENT 34,260. PART XII, LINE 4B - OTHER ADJUSTMENTS: NET CHANGE IN UNREALIZED GAINS ON SECURITIES 1,884. GAIN/LOSS ON DISPOSITION OF ASSETS 40,505. X X X X 1 1 X X X X X 1 1 0 MILTON STEVENS SENIOR VP & CIO 238654 0 69000 0 2615 0 10000 0 10095 0 330364 0 0 0 STEPHANIE SHERRODD PRESIDENT & CEO 483077 0 175000 0 18659 0 10000 0 10095 0 696831 0 0 0 ROBERT LOCKETT III SENIOR VP & CSO 54231 0 0 0 388189 0 0 0 2330 0 444750 0 0 0 RHONDA KLEINECKE SENIOR VP & CFO 248269 0 73600 0 17018 0 10000 0 10095 0 358982 0 0 0 CHARLES SMITH SENIOR VP & CLO 204923 0 60520 0 16567 0 6295 0 9743 0 298048 0 0 0 COURTLAND CROUCHET SENIOR VP & CRO 212341 0 47400 0 6143 0 10000 0 9698 0 285582 0 0 0 EDWARD BIRDSONG PRESIDENT - TDECU RE 150000 0 0 0 97496 0 9219 0 9229 0 265944 0 0 0 LUCILLA HENDERSON VP- COMMUNITY RELATIONS 159011 0 12721 0 2938 0 7304 0 9440 0 191414 0 0 0 AMBRISH SUNDARAM VP - INFORMATION SYSTEMS 130135 0 12720 0 77149 0 5786 0 7663 0 233453 0 0 0 SHAMIK DARU VP & CONTROLLER 165000 0 24750 0 3407 0 7067 0 9764 0 209988 0 0 0 GARY LANIER VP-RETAIL LANDING 165000 0 8250 0 13151 0 7661 0 9484 0 203546 0 0 0 TANGY NAPIER VP-RETAIL DELIVERY 165385 0 35550 0 5325 0 4540 0 9773 0 220573 0 0 0 VANDI THERIOT VP-TALENT SERVICES 168154 0 35550 0 1491 0 2600 0 9794 0 217589 0 0 0 WESLEY WOLFF PRESIDENT-INS AGENCY 200000 0 40000 0 19452 0 7815 0 10006 0 277273 0 0 0 BONITA TUCKER VP-SERVICE OPERATIONS 150075 0 28000 0 13594 0 6634 0 8644 0 206947 0 0 0 ANDREW WAYMAN VP - CTO 165385 0 0 0 24624 0 0 0 8467 0 198476 0 0 0 PAUL O'MALLEY VP - ECOMMERCE 151068 0 22660 0 5355 0 7247 0 8653 0 194983 0 0 0 JASON SCHNEIDER VP - FINANCE 126923 0 18750 0 5204 0 6045 0 9193 0 166115 0 0 0 TAMMIE BELL REAL ESTATE AGENT 378 0 0 0 286553 0 10000 0 8284 0 305215 0 0 0 RYAN BIRDSONG REAL ESTATE AGENT 58 0 0 0 205227 0 8205 0 7667 0 221157 0 0 0 KENNETH MCGEHEE REAL ESTATE AGENT 58 0 0 0 186827 0 7426 0 8815 0 203126 0 0 0 ROBYN COCHRAN WEALTH ADVISOR 17192 0 0 0 206307 0 4452 0 4867 0 232818 0 0 0 JAMES BOLAND INSURANCE AGENT - PRODUCER 138933 0 0 0 29607 0 3951 0 9171 0 181662 0 0 0 PART I, LINE 1B THE ORGANIZATION GROSSED UP PAYMENTS THAT ARE OUT OF THE ORDINARY (E.G. BONUSES, RELOCATION, ETC.) SO THAT THE PAYMENT WILL BE TAX-NEUTRAL TO THE RECIPIENT. ONLY ONE EMPLOYEE REQUIRED TO BE LISTED ON THIS FORM HAD A COUNTRY CLUB MEMBERSHIP THAT WAS SUBSIDIZED. THE EMPLOYEE IS NO LONGER EMPLOYED BY THE ORGANIZATION. THE ORGANIZATION HAS A POLICY FOR EXPENSE REIMBURSEMENTS AND REQUIRES RECEIPTS AND PROOF OF EXPENSES PRIOR TO REIMBURSING. PART I, LINES 4A-B 2014 SEVERANCE PAYMENTS: ROBERT S. LOCKETT III $189,808 AMBRISH SUNDARAM $ 82,680 457(F) PLAN 2014 PURCHASE PAYMENTS: STEPHANIE SHERRODD $125,250 RHONDA L. KLEINECKE $ 35,486 MILTON E. STEVENS $ 33,880 FORM 990, PART V, LINE 3B FORM 990-T WILL BE FILED AT THE SAME TIME AS FORM 990. FORM 990, PART VI, SECTION A, LINE 6 ALL MEMBERS HAVE THE RIGHT TO PARTICIPATE IN THE ELECTION OF THE GOVERNING BODY. MEMBERS DO NOT HAVE THE RIGHT TO APPROVE SIGNIFICANT DECISIONS OF THE GOVERNING BODY. ALL MEMBERS RECEIVE A SHARE OF THE ORGANIZATION'S NET ASSETS UPON DISSOLUTION. FORM 990, PART VI, SECTION A, LINE 7A MEMBERS ELECT THE BOARD OF DIRECTORS BY THE USE OF ELECTRONIC DEVICE, ABSENTEE BALLOT OR MAIL BALLOT. FORM 990, PART VI, SECTION B, LINE 11 THE TAX RETURN WILL BE REVIEWED BY THE SVP/CFO AND CONTROLLER. FORM 990, PART VI, SECTION B, LINE 12C ALL OFFICERS, DIRECTORS AND MANAGERS MUST REPORT ANNUAL ACKNOWLEDGEMENT OF ANY POTENTIAL CONFLICT OF INTEREST AS INDICATED BY TDECU'S BUSINESS ETHICS POLICY. FORM 990, PART VI, SECTION B, LINE 15 THE COMPENSATION PROCESS FOR THE CEO INCLUDES A COMPENSATION REVIEW THAT IS CONDUCTED BY AN OUTSIDE CONSULTANT USING EXTERNAL MARKET DATA. THE RESULTS ARE SUBMITTED TO A COMPENSATION COMMITTEE THAT THEN REVIEWS AND RECOMMENDS PAY ADJUSTMENTS BASED ON MARKET AND CEO PERFORMANCE. THE COMPENSATION COMMMITTEE IS COMPRISED OF BOARD MEMBERS. THE COMPENSATION PROCESS FOR TOP MANAGEMENT INCLUDES A COMPENSATION REVIEW THAT IS CONDUCTED BY AN OUTSIDE CONSULTANT USING EXTERNAL MARKET DATA. THE RESULTS ARE SUBMITTED TO CEO AND SVPS FOR REVIEW AND RECOMMENDATIONS ON PAY ADJUSTMENTS BASED ON MARKET POSITION AND PERFORMANCE. AT RISK PAY IS REVIEWED AND APPROVED BY THE CEO. FORM 990, PART VI, SECTION C, LINE 19 MONTHLY FINANCIAL STATEMENTS ARE PUBLICLY DISPLAYED IN EACH BRANCH OFFICE. ARTICLES OF INCORPORATION AND BYLAWS ARE AVAILABLE UPON REQUEST BY ANY MEMBER. FORM 990, PART X, LINE 14 AND 17: DURING 2014, THE CREDIT UNION MADE AN IRREVOCABLE GIFT TO THE UNIVERSITY OF HOUSTON AND ENTERED INTO A MARKETING AGREEMENT WITH THE UNIVERSITY TOTALING $15,000,000. THESE AMOUNTS ARE PAYABLE OVER 10 YEARS. IN RECOGNITION OF THE GIFT, THE UNIVERSITY HAS PROVIDED THE CREDIT UNION WITH EXCLUSIVE NAMING RIGHTS TO ITS FOOTBALL STADIUM ALONG WITH ADDITIONAL SIGNAGE FOR THE PERIOD OF 10 YEARS. AS OF DECEMBER 31, 2014, THE UNAMORTIZED ASSET RELATING TO THE AGREEMENTS WAS $14,255,000 AND THE OUTSTANDING OBLIGATION REMAINING WAS $13,550,000. FORM 990, PART XI, LINE 9: ASSOCIATED INSURANCE ADVISORS, INC EQUITY 117,657. FMC TECHNOLOGIES FEDERAL CREDIT UNION MERGER 412,079. ROUNDING -2. FORM 990, PART XII, LINE 2C: THE PROCESS BY WHICH THE AUDIT COMMITTEE OVERSEES THE AUDIT OF THE FINANCIAL STATEMENTS AND THE SELECTION OF AN INDEPENDENT ACCOUNTANT DID NOT CHANGE FROM THE PRIOR YEAR. FORM 990, PART XI, LINE 9: EFFECTIVE JUNE 1, 2014, TDECU ENTERED INTO A MERGER AGREEMENT WITH FMC TECHNOLOGIES FEDERAL CREDIT UNION. TDECU INSURANCE AGENCY LLC 1001 FM 2004 LAKE JACKSON TX 77566 260901021 INSURANCE AGENCY TX 2703758 11821397 TDECU HOLDINGS LLC TDECU REAL ESTATE LLC 1001 FM 2004 LAKE JACKSON TX 77566 450957732 REAL ESTATE AGENCY TX -786373 275861 TDECU HOLDINGS LLC TDECU HOLDINGS LLC 1001 FM 2004 LAKE JACKSON TX 77566 453582513 HOLDING COMPANY TX 750844 11670890 TEXAS DOW ECU TDECU WEALTH ADVISORS LLC 1001 FM 2004 LAKE JACKSON TX 77566 453581914 MANAGEMENT TX 393587 13453 TEXAS DOW ECU LOAN ORIGINATION ACQUISITION NETWORK LLC 1001 FM 2004 LAKE JACKSON TX 77566 462758520 CONSULTING TX 10851 41056 TEXAS DOW ECU CENTURY OAKS TITLE LLC 1001 FM 2004 STE 100 LAKE JACKSON TX 77566 271363400 ESCROW & REAL ESTATE SETTLEMENT SERVICE TX TDECU HOLDINGS LLC UNRELATED -1224077 578294 0 1 0.96540 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0