2014-08-13T08:18:44-05:00 2013-12-31 420714325 MCGLADREY LLP 801 NICOLLET MALL SUITE 1100 MINNEAPOLIS MN 55402 990 2013-01-01 361163912 GREAT LAKES CREDIT UNION GREA 8475787000 2525 GREEN BAY ROAD NORTH CHICAGO IL 60064 VIKKI KAISER SVP/CFO 8475787000 2014-08-12 1 GERALD B KISSELL P00092658 6123324300 2013 2015-11-30 17:44:51Z VIKKI KAISER 2525 GREEN BAY ROAD NORTH CHICAGO IL 60064 84133671 0 X WWW.GLCU.ORG X 1938 IL THE PRIMARY EXEMPT PURPOSE OF GREAT LAKES CREDIT UNION (GLCU) IS TO PROVIDE LOANS, SAVINGS ACCOUNTS, AND OTHER FINANCIAL SERVICES THAT PROMOTE THE FINANCIAL PROSPERITY OF OUR 56,430 MEMBERS. 9 9 252 9 0 0 0 0 24406416 27785793 3784693 3847540 30261 262002 28221370 31895335 0 0 0 2799346 10050583 13335024 0 0 0 17578134 15062732 27628717 31197102 592653 698233 525732943 643753161 468484081 583836464 57248862 59916697 THE PRIMARY EXEMPT PURPOSE OF GREAT LAKES CREDIT UNION (GLCU) IS TO PROVIDE LOANS, SAVINGS ACCOUNTS, AND OTHER FINANCIAL SERVICES THAT PROMOTE THE FINANCIAL PROSPERITY OF OUR 56,430 MEMBERS. 0 0 LOANS ARE GRANTED TO INDIVIDUALS WHO ARE MEMBERS IN GOOD STANDING WITH THE CREDIT UNION AND WHO QUALIFY FOR SUCH LOANS. FOR 2013, GLCU PROVIDED THE FOLLOWING LOANS:- 367 MORTGAGES TOTALING $72,101,589- 2,198 VEHICLE LOANS TOTALING $33,763,419- 9,966 CONSUMER LOANS TOTALING $34,266,440 ATM/DEBIT CARDS AND CHECK CARDS ARE AVAILABLE TO MEMBERS WHO APPLY FOR ELECTRONIC ACCESS TO THEIR ACCOUNTS FOR DEPOSIT AND WITHDRAWAL OF FUNDS AND ACCOUNT INFORMATION. VARIOUS TYPES OF CHECKING ACCOUNTS ARE OFFERED TO MEMBERS, SOME WITH NO MONTHLY SERVICE FEE. VARIOUS INSURANCE PRODUCTS ARE OFFERED TO MEMBERS. TYPES OF PRODUCTS OFFERED INCLUDE CREDIT LIFE, CREDIT DISABILITY, MECHANICAL BREAKDOWN PROTECTION (MBP), AND FINANCIAL GAP PROTECTION. 0 0 1 0 0 0 0 1 0 1 0 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 1 0 0 0 0 1 0 0 0 1 X 16705 0 1 252 1 1 0 0 0 0 0 0 X 9 9 0 0 0 0 1 1 1 1 1 0 1 1 1 1 1 1 1 1 1 1 0 X KAMIL SAKICI 8475787000 2525 GREEN BAY ROAD NORTH CHICAGO IL 60064 JAMES FABRIE CHAIR 5.00 X X 0 0 0 R LEE PIEKARZ VICE CHAIR 5.00 X X 0 0 0 BERTINE A NIXON SECRETARY 5.00 X X 0 0 0 STEPHEN PARK TREASURER 5.00 X X 0 0 0 DANIEL M DOYLE DIRECTOR 5.00 X 0 0 0 ROBERT GREEN DIRECTOR 5.00 X 0 0 0 JAMES E MARCH DIRECTOR 5.00 X 0 0 0 PATRICE PRICE DIRECTOR 5.00 X 0 0 0 JAMES A RHOADES DIRECTOR 5.00 X 0 0 0 SHIRLEY M SOLBERG DIRECTOR 5.00 X 0 0 0 VIKKI KAISER PRESIDENT/CEO 40.00 X 406252 0 32655 KAMIL SAKICI SVP - CFO 40.00 X 242960 0 39873 LORRAINE KOST SVP - ADMINISTRATION 40.00 X 185335 0 29214 KEVIN BOGAC SVP - INFO SYSTEMS/OPERATIONS 40.00 X 193692 0 1023 RICH EDWARDS SVP - LENDING 40.00 X 206983 0 7603 YVONNE BAILEY VP - MARKETING/PLANNING 40.00 X 135255 0 36805 CARL SORGATZ VICE PRESIDENT 40.00 X 127439 0 27455 PHILIP LAGIGLIA DIRECTOR OF MORTGAGES 40.00 X 157769 0 24309 1655685 0 198937 8 0 1 0 JACK HENRY & ASSOCIATES INC PO BOX 609 MONETT MO 65708 SOFTWARE 839263 EFRAIM CARLSON AND SON INC 14052 PENTRONELLA DR STE 105 LIBERTYVILLE IL 60048 GENERAL CONTRACTOR 308888 CDW DIRECT LLC PO BOX 75723 CHICAGO IL 60675 HARDWARE 281020 AAA AUTO CLUB SOUTH INC 1515 N WESTSHORE BLVD TAMPA FL 33607 DEALER RELATIONSHIP 227354 MERIDIAN IT INC PO BOX 33950 CHICAGO IL 60694 NETWORK SUPPORT 184858 8 INTEREST ON LOANS 522100 20218326 20218326 SERVICE FEE INCOME 522100 3719857 3719857 ATM/CREDIT CARD SERVICES 522100 2957622 2957622 FEE/OTHER MISC INCOME 522100 889988 889988 27785793 1434545 1434545 132177 67424 64753 64753 64753 54583907 52170912 2412995 2412995 2412995 GAIN FROM BARGIN PURCHASE (MERGER 522100 197249 197249 197249 31895335 27983042 0 3912293 2799346 1373756 9185717 393240 1575047 807264 310363 147592 9139 405457 1054617 867234 1157373 224888 527915 1715516 576081 PROVISION FOR LOAN LOSS 3530618 LOAN SERVICING 1792851 INSURANCE PREMIUM ASSES 430516 ATM NETWORK FEES 235474 2077098 31197102 36637750 47775251 6919427 28580614 332081331 403150390 534553 528559 36613707 14812545 16355327 21801162 119385016 115028357 2288851 4063684 804594 1399196 10726094 21425948 525732943 643753161 2708884 5060113 1895302 2442759 17650000 8600000 446229895 567733592 468484081 583836464 X 0 0 0 0 57248862 59916697 57248862 59916697 525732943 643753161 X 698233 -1962862 3932464 X 0 1 X 1 0 1550 1550 1550 1 CREDIT UNION POLITICAL ACTION COMMITTEE 1807 W DIEHL ROAD 3107 NAPERVILLE IL 60566 363092340 1550 PART I-A, LINE 1: THE ORGANIZATION MAKES POLITICAL EXPENDITURES FOR THE PURPOSE OF SUPPORTING THE CREDIT UNION POLITICAL ACTION COMMITTEE. 0 1 X 554823 7874768 8429591 16359585 6018871 10340714 8457957 6215459 2242498 3366574 2578215 788359 21801162 MEMBERS' SHARES 557733592 INVESTMENTS TRADED BUT NOT SETTLED 10000000 567733592 X 31962759 0 31962759 -67424 -67424 31895335 31264526 67424 67424 31197102 0 31197102 PART IV, LINE 2B: ESCROW ACCOUNTS ARE HELD TEMPORARILY FOR CURRENT CUSTOMERS ENGAGED IN LOAN ACTIVITY. PART X, LINE 2: THE CREDIT UNION IS EXEMPT, BY STATUTE, FROM FEDERAL AND STATE INCOME TAXES. THE CUSO IS SUBJECT TO FEDERAL AND STATE INCOME TAXES. THE CREDIT UNION DID NOT INCUR ANY UNRELATED BUSINESS INCOME TAX IN 2013 AND 2012. THE INTERNAL REVENUE SERVICE ("IRS") AND CERTAIN STATE TAXING AUTHORITIES ARE REVISITING WHAT, IF ANY, PRODUCTS AND SERVICES PROVIDED BY STATE CHARTERED CREDIT UNIONS OR THEIR CREDIT UNION SERVICE ORGANIZATIONS ARE SUBJECT TO UNRELATED BUSINESS INCOME TAX ("UBIT"). THERE IS CURRENTLY VERY LITTLE GUIDANCE IN THE IRS CODE ON WHAT ACTIVITIES SHOULD BE SUBJECT TO UBIT. THE IRS HAS ISSUED CERTAIN TECHNICAL ADVICE MEMORANDUMS IDENTIFYING CERTAIN ACTIVITIES AS BEING SUBJECT TO UBIT. AS A RESULT, AT THIS TIME THERE IS UNCERTAINTY REGARDING WHETHER STATE CHARTERED CREDIT UNIONS SHOULD PAY INCOME TAX ON CERTAIN TYPES OF NET TAXABLE INCOME FROM ACTIVITIES THAT MAY BE CONSIDERED BY TAXING AUTHORITIES AS UNRELATED TO THE PURPOSE FOR WHICH CREDIT UNIONS WERE GRANTED NON-TAXABLE STATUS. IN THE OPINION OF MANAGEMENT, ANY LIABILITY RESULTING FROM TAXING AUTHORITIES IMPOSING INCOME TAXES ON THE NET TAXABLE INCOME FROM ACTIVITIES DEEMED UNRELATED TO THE CREDIT UNION'S NON-TAXABLE STATUS IS NOT EXPECTED TO HAVE A MATERIAL EFFECT ON FINANCIAL POSITION OR RESULTS OF OPERATIONS. A TAX POSITION WILL BE RECOGNIZED AS A BENEFIT ONLY IF IT IS "MORE LIKELY THAN NOT" THAT THE TAX POSITION WOULD BE SUSTAINED IN A TAX EXAMINATION, WITH A TAX EXAMINATION BEING PRESUMED TO OCCUR. THE AMOUNT RECOGNIZED WILL BE THE LARGEST AMOUNT OF TAX BENEFIT THAT IS GREATER THAN 50% LIKELY OF BEING REALIZED ON EXAMINATION. FOR TAX POSITIONS NOT MEETING THE "MORE LIKELY THAN NOT" TEST, NO TAX BENEFIT WILL BE RECORDED. PART XI, LINE 4B - OTHER ADJUSTMENTS: RENTAL EXPENSES REPORTED AS REVENUE -67,424. PART XII, LINE 2D - OTHER ADJUSTMENTS: RENTAL EXPENSES REPORTED AS REVENUE 67,424. X 1 1 X X 0 1 0 VIKKI KAISER PRESIDENT/CEO 300275 0 65000 0 40977 0 7650 0 25005 0 438907 0 0 0 KAMIL SAKICI SVP - CFO 183834 0 32000 0 27126 0 6690 0 33183 0 282833 0 0 0 LORRAINE KOST SVP - ADMINISTRATION 137481 0 22000 0 25854 0 4765 0 24449 0 214549 0 0 0 KEVIN BOGAC SVP - INFO SYSTEMS/OPERATIONS 150769 0 20000 0 22923 0 0 0 1023 0 194715 0 0 0 RICH EDWARDS SVP - LENDING 152019 0 30000 0 24964 0 6149 0 1454 0 214586 0 0 0 YVONNE BAILEY VP - MARKETING/PLANNING 100310 0 15000 0 19945 0 4325 0 32480 0 172060 0 0 0 CARL SORGATZ VICE PRESIDENT 118462 0 0 0 8977 0 3849 0 23606 0 154894 0 0 0 PHILIP LAGIGLIA DIRECTOR OF MORTGAGES 104390 0 46002 0 7377 0 4786 0 19523 0 182078 0 0 0 PART I, LINE 1A GREAT LAKES CREDIT UNION ALLOWS A COMPANION TO JOIN EACH DIRECTOR OR SENIOR MANAGEMENT MEMBER ON ONE BUSINESS TRAVEL A YEAR. THE COMPANIONS ARE EXPECTED TO PARTICIPATE IN THE NETWORKING EVENTS AND REPRESENT GLCU. THE TRAVEL EXPENSES ARE CURRENTLY NOT TREATED AS TAXABLE COMPENSATION. PART I, LINE 4B THE ORGANIZATION HAS A 457(F) PLAN FOR ITS CEO, VIKKI KAISER. THERE WAS NO AMOUNT PAID OUT TO THE CEO DURING THE YEAR. BUSINESS PARTNERS LLC SEE PART V 107718 SEE PART V 0 FORM 990, SCHEDULE L, PART IV, LINE 1, COLUMNS (B) AND (D) (B) RELATIONSHIP BETWEEN INTERESTED PERSON AND THE CREDIT UNION: SAKICI & KAISER ARE GLCU OFFICERS & ALSO BOARD MEMBERS OF BUSINESS PARTNERS.(D) DESCRIPTION OF TRANSACTION: GLCU HAS A BUSINESS LOAN PARTICIPATION PROGRAM THROUGH BUSINESS PARTNERS, LLC. BUSINESS PARTNERS, LLC RETAINS A LOAN SERVICING FEE FOR SERVICES. FORM 990, PART V, LINE 3B GLCU GENERATES GROSS INCOME GREATER THAN $1,000 FROM NON-MEMBER ATM FEES. WHEN EXPENSES ARE ALLOCATED THE RESULT IS A NET LOSS; THEREFORE FORM 990-T HAS NOT BEEN FILED. FORM 990, PART VI, SECTION A, LINE 6 ALL MEMBERS OF GREAT LAKES CREDIT UNION ARE GIVEN ONE VOTE IN ELECTIONS WITHOUT PREFERENCE TO THE AMOUNT OF FUNDS THEY HAVE ON DEPOSIT WITH THE CREDIT UNION.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 GREAT LAKES CREDIT UNION IS A MEMBER OWNED COOPERATIVE BUSINESS ORGANIZATION, GOVERNED BY AN NINE-MEMBER BOARD OF DIRECTORS. THE BOARD IS COMPRISED OF ACTIVE MEMBERS OF THE CREDIT UNION WHO ARE SELECTED BY THE MEMRERSHIP THROUGH A DEMOCRATIC ELECTION PROCESS. 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 THE ORGANIZATION'S MANAGEMENT REVIEWS THE FORM 990 IN DETAIL WITH THEIR PAID TAX PREPARERS. SUBSEQUENT TO THIS REVIEW, A FULL COPY OF THE FORM 990 IS PROVIDED TO ALL MEMBERS OF THE GOVERNING BODY DURING THE ORGANIZATION'S BOARD MEETING PRIOR TO FILING WITH THE IRS. ANY BOARD MEMBERS NOT PRESENT AT THIS BOARD MEETING ARE SENT A PAPER OR ELECTRONIC COPY OF THE FORM 990 PRIOR TO FILING WITH THE IRS. FORM 990, PART VI, SECTION B, LINE 12C THE ORGANIZATION'S OFFICERS, DIRECTORS, TRUSTEES, AND KEY EMPLOYEES ARE REQUIRED TO ANNUALLY DISCLOSE ANY ACTUAL OR POTENTIAL CONFLICTS OF INTEREST THEY MAY HAVE WITH THE ORGANIZATION. THE CFO-EVP REVIEWS EACH POLICY STATEMENT SIGNED BY THESE INDIVIDUALS TO DETERMINE IF ANY CONFLICTS EXIST AND NEED TO BE BROUGHT TO THE ATTENTION OF THE BOARD. IF A CONFLICT ARISES, THE RESPECTIVE BOARD MEMBER WILL ABSTAIN FROM ANY RELATED DISCUSSION, VOTE OR SIMILAR ACTION ON THE MATTER. FORM 990, PART VI, SECTION B, LINE 15 BUILDING ON THE PROCESS WE BEGAN IN 2011 WITH CARDWELL ASSOCIATES, AND USING EXTERNAL SALARY DATA FROM CUES, THE BOARD REVIEWS PRESIDENT/CEO DATA FOR DETERMINING COMPENSATION AND PRESIDENT/CEO EXECUTIVE SALARY SURVEY DATA FOR EXECUTIVE SALARY DETERMINATION. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION'S GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY AND FINANCIAL STATEMENTS ARE AVAILABLE TO THE PUBLIC UPON REQUEST. FORM 990, PART XI, LINE 9: EQUITY ACQUIRED IN MERGER 3,932,464. GREAT LAKES CREDIT SERVICE ORGANIZATION 2525 GREEN BAY ROAD NORTH CHICAGO IL 60064 363429771 CREDIT UNION IL 0 97 GLCU