2014-10-28T11:19:38-05:00 2013-12-31 410746749 CLIFTONLARSONALLEN LLP PO BOX 217 AUSTIN MN 55912 990 2013-01-01 741951016 FIRST SERVICE CREDIT UNION FIRS 7136768944 9621 W SAM HOUSTON PARKWAY N HOUSTON TX 77064 JANA HEATON CHIEF FINANCIAL OFFICER 7136768944 2014-10-17 1 LOWELL FOSTER P00001022 5074347000 2014-10-17 2013 2015-11-30 17:44:51Z DAVID BLEAZARD 9621 W SAM HOUSTON PARKWAY N HOUSTON TX 77064 51936154 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. 11 11 176 11 378249 -62894 0 0 20833993 23431207 999148 1768922 0 0 21833141 25200129 0 0 1459262 1475942 7546775 9178962 0 0 0 9069396 11360714 18075433 22015618 3757708 3184511 329075326 467547841 299281387 425859429 29793939 41688412 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 48,768 MEMBER-OWNED SAVINGS ACCOUNTS AS OF DECEMBER 31, 2013. 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 9078 0 1 176 1 1 1 0 0 0 0 0 X 11 11 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 DAVID ITZ CHAIR 1.00 X X 0 0 0 GARY GODWIN VICE CHAIR 1.00 X X 0 0 0 JANET HILL SECRETARY 1.00 X X 0 0 0 PAUL LOVE TREASURER 1.00 X X 0 0 0 JACK BARTELL DIRECTOR 1.00 X 0 0 0 DOUG ESMOND DIRECTOR 1.00 X 0 0 0 JAMES HARKRIDER DIRECTOR 1.00 X 0 0 0 THOMAS SMITH 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 KOURTNEY CALHEUN DIRECTOR 1.00 X 0 0 0 DAVID BLEAZARD PRESIDENT/CEO 50.00 X 331404 0 39135 JANA HEATON CFO 50.00 X 124830 0 18559 DEBRA LITTLE CLO 50.00 X 135311 0 18435 JERRY SHRODE EXECUTIVE DIRECTOR 50.00 X 191729 0 34709 MIKE MCWETHY COO 50.00 X 160336 0 29924 MICHAEL W ALEXANDER FINANCIAL ADVISOR 50.00 X 143891 0 3655 FRANK HALSTEAD CIO 50.00 X 135750 0 16460 1223251 0 160877 8 0 1 0 AMERICAN SERVICE GROUP PO BOX 3400 CONROE TX 77305 WARRANTY 1082550 SEEBRIDGE MEDIA 707 WEST RD HOUSTON TX 77038 MARKETING 323735 ARROW CUSTOM HOMES PO BOX 495 KATY TX 77492 OFFICE IMPROVEMENT 274950 COMCAST PO BOX 37601 PHILADELPHIA PA 191010601 INTERNET SERVICE 237387 JACK HENRY AND ASSOCIATES PO BOX 609 MONETT MO 657088215 ACCOUNTING SOFTWARE SUPPORT 236244 14 LOAN INTEREST 522100 14660872 14660872 OTHER FEES & CHARGES 522100 8770335 8392086 378249 23431207 1570696 1570696 26934251 26736025 198226 198226 198226 25200129 23052958 378249 1768922 1475942 513928 6974746 406379 766381 517528 136593 142211 42906 1911457 996142 2556119 745169 241119 414 881916 PROVISION FOR LOAN LOSS 1904260 LOAN SERVICING EXPENSE 698861 OTHER EXPENSES 408746 SECURITY EXPENSE 371046 323755 22015618 6923847 8664859 158546 2531680 247190162 292778566 624703 718326 19674772 9085064 10264005 10589708 44831916 132085181 9828579 6999115 9253568 13180406 329075326 467547841 6546850 9803238 83732 91263 292650805 415964928 299281387 425859429 X 0 0 0 0 29793939 41688412 29793939 41688412 329075326 467547841 X 3184511 -3705802 12415764 X X 0 1 X 1 0 0 1 X 1605632 1605632 8778622 1642842 7135780 334895 283285 51610 8557124 7158937 1398187 398499 398499 10589708 MEMBER SHARES AND CDS 415964928 415964928 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 2013 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, 2013 AND 2012. THE CREDIT UNION'S 2010 THROUGH 2013 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 243321 0 0 0 88083 0 25080 0 14055 0 370539 0 0 0 DEBRA LITTLE CLO 118445 0 16866 0 0 0 13160 0 5275 0 153746 0 0 0 JERRY SHRODE EXECUTIVE DIRECTOR 189504 0 2225 0 0 0 20545 0 14164 0 226438 0 0 0 MIKE MCWETHY COO 139997 0 20339 0 0 0 16161 0 13763 0 190260 0 0 0 FRANK HALSTEAD CIO 129039 0 6711 0 0 0 3568 0 12892 0 152210 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 DISTRIBTIONS DURING 2013. 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 ORGANIZATIONS'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 VI, SECTION B, LINE 14 THE CREDIT UNION DOES HAVE A FORMAL WRITTEN POLICY FOR DOCUMENT RETENTION AND DESTRUCTION. THE GENERAL RETENTION POLICY IS 10 YEARS. IF DOCUMENTS ARE RETAINED ELECTRONICALLY THE RETENTION PERIOD IS INDEFINITE. FORM 990, PART XI, LINE 9: EQUITY ACQUIRED BY ACQUISITION 12,613,990. RECLASS ADJUSTMENT FOR NET RALIZED GAINS ON AFS INVESTMENTS -198,226. FORM 990, PART XII, LINE 2C: THIS PROCESS HAS NOT CHANGED SINCE FROM 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 -23689 1476310 FIRST SERVICE CREDIT UNION