2014-11-17T09:12:57-06:00 2013-12-31 410746749 CLIFTONLARSONALLEN LLP PO BOX 217 AUSTIN MN 55912 990 2013-01-01 390230585 SUMMIT CREDIT UNION SUMM 6082435000 PO BOX 8046 MADISON WI 537088046 KEITH PETERSON CFO 6082435000 2014-11-10 1 LOWELL FOSTER P00001022 5074347000 2013 2015-11-30 17:44:51Z KIM SPONEM PO BOX 8046 MADISON WI 537088046 100066230 0 X WWW.SUMMITCREDITUNION.COM X CU 1935 WI IMPROVE MEMBERS' FINANCIAL LIVES TO HELP THEM REACH THEIR DREAMS. 9 9 557 9 -208556 -429304 0 0 96308867 89376769 9279681 7249851 0 61709 105588548 96688329 0 156051 9450875 6778900 28808378 28150319 0 0 0 35820969 33998923 74080222 69084193 31508326 27604136 1886824377 1955509180 1695399695 1739747505 191424682 215761675 A COOPERATIVE, NONPROFIT CORPORATION, INCORPORATED UNDER WISCONSIN STATE LAW TO ENCOURAGE THRIFT AMONG ITS MEMBERS, CREATE A SOURCE OF CREDIT AT A FAIR AND REASONABLE COST, AND PROVIDE AN OPPORTUNITY FOR ITS MEMBERS TO IMPROVE THEIR ECONOMIC AND SOCIAL CONDITIONS. 0 0 SUMMIT SERVED OVER 135,000 MEMBERS IN 2013. THE CREDIT UNION CONTINUED TO OFFER ATTRACTIVE RATES ON VARIOUS SAVING AND LENDING PRODUCTS TO HELP MEMBERS IMPROVE THEIR FINANCIAL POSITION. LOANS GREW 12% DURING 2013. SUMMIT CREATED AND SUPPORTS THE STAR CREDIT UNION, SERVING MEMBERS OF THE MADISON BOYS AND GIRLS CLUB WITH FINANCIAL EDUCATION AND SERVICES, AND WE OPERATE BRANCHES IN TWO HIGH SCHOOLS TO SERVE STUDENTS. WE OFFER ADDITIONAL FINANCIAL EDUCATION SESSIONS IN THE COMMUNITIES WE SERVE. WE SUPPORT NUMEROUS COMMUNITY ORGANIZATIONS, INCLUDING UNITED WAY, SECOND HARVEST FOODBANK, SUNSHINE PLACE, JUVENILE DIABETES RESEARCH FOUNDATION, AND COMMONWEALTH DEVELOPMENT. 0 0 0 0 0 0 0 1 0 1 1 0 0 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 60268 0 1 557 1 1 1 0 0 0 0 0 X 9 9 0 0 0 0 1 1 1 1 1 0 0 0 1 1 1 1 1 1 1 0 X X KEITH PETERSON 6082435000 PO BOX 8046 MADISON WI 537088046 DENISE SAUEY CHAIR 4.00 X 0 0 0 MIKE O'BRIEN VICE CHAIR 4.00 X 0 0 0 MIKE SCHENK TREASURER 4.00 X 0 0 0 JOHN LITSCHER SECRETARY 4.00 X 0 0 0 STEFANIE NORVAISAS DIRECTOR 2.00 X 0 0 0 SUE RACINE DIRECTOR 2.00 X 0 0 0 DAVE RESZEL DIRECTOR 2.00 X 0 0 0 BOB LINDER DIRECTOR 2.00 X 0 0 0 MARY TURKE DIRECTOR 2.00 X 0 0 0 KIM SPONEM CEO/PRESIDENT 50.00 X 602713 0 31073 KEITH PETERSON CFO 50.00 X 397040 0 38935 REBECCA GEROTHANAS SVP 50.00 X 196198 0 34335 JOANNE BELANGER SVP MARKETING 50.00 X 171993 0 17356 DANIEL MILBRANDT CHIEF LENDING OFFICER 50.00 X 171828 0 15553 CHRISTOPHER HEFTER VP IT 50.00 X 161491 0 33889 DONALD GRIFFIN MORTGAGE LOAN OFFICER 50.00 X 155805 0 17884 MARY BYRD MORTGAGE LOAN OFFICER 40.00 X 145066 0 31588 CHRISTINE HAROLDSON VP MORTGAGE LENDING 40.00 X 143966 0 31185 JEREMY EPPLER VP RISK MANAGEMENT 40.00 X 146692 0 17330 TIMOTHY GREENE MORTGAGE LOAN OFFICER 40.00 X 143658 0 30018 ADAM PELLETTER MORTGAGE LOAN OFFICER 40.00 X 140006 0 29656 DENISE O'HARA FORMER SVP HR & OD 0.00 X 142428 0 18714 2718884 0 347516 31 1 1 0 JH FINDORFF & SON INC 330 S BEDFORD ST MADISON WI 53703 CONSTRUCTION CONTRACTOR 3512556 JACK HENRY & ASSOCIATES INC PO BOX 609 MONETT MO 65708 INFORMATION SYSTEM 2675519 DART APPRAISALCOM INC 2600 W BIG BEAVER RD TROY MI 48084 LOAN APPRAISALS 1091722 US DEPARTMENT OF EDUCATION PO BOX 979066 ST LOUIS MO 63197 STUDENT LOANS 931781 FISERV PO BOX 979 BROOKFIELD WI 53008 DATA PROCESSING AND SUPPORT 613591 42 LOAN INTEREST 900099 58905404 58905404 OTHER OPERATING INCOME 900099 15906804 15906804 FEES & SERVICE CHGS 522100 14564561 14475333 89228 89376769 7840030 -297784 8137814 2787722 3377901 -590179 -590179 -590179 OTHER NON-OPERATING INCOME 900099 61709 61709 61709 96688329 89349250 -208556 7547635 156051 6778900 2046093 19567357 1675431 3228920 1632518 505931 322140 1854559 10197488 138595 1799339 408449 531013 3905222 15035 PROVISION FOR LOAN LOSS 6600000 LOAN SERVICING EXPENSE 4061316 CORPORATE FUND ASSESSME 1251025 MISC. OPERATING EXPENSE 1240813 1167998 69084193 58470773 20932549 8714550 15716812 1215006 527318 1213122098 1361930046 687547 1346298 75710911 27197380 44586796 48513531 526441274 473740405 0 372727 33586333 32429494 1886824377 1955509180 25051305 23804297 421152 14649 68436893 46951539 1601490345 1668977020 1695399695 1739747505 X 0 0 0 0 191424682 215761675 191424682 215761675 1886824377 1955509180 X 27604136 -6333776 3066633 X X 0 1 X 1 0 0 1 X 9177370 9177370 43982726 13989716 29993010 2306234 1163414 1142820 19746127 12044250 7701877 498454 498454 48513531 AVAILABLE FOR SALE INVESTMENTS 439874904 F LOANS HELD FOR SALE 3891270 F OTHER INVESTMENTS 29974231 F 473740405 MEMBER SHARES AND DEPOSITS 1668977020 1668977020 X 97216802 0 97216802 -528473 -528473 96688329 69612667 528474 528474 69084193 0 69084193 PART IV, LINE 2B: THE CREDIT UNION ACTS AS A CUSTODIAN FOR AMOUNTS IN ESCROW FOR LOANS TO 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. 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 ADOPTED THE INCOME TAX STANDARD FOR UNCERTAIN TAX POSITIONS. AS A RESULT, 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 SUBSEQUENT TAX YEARS ARE OPEN FOR EXAMINATION BY FEDERAL AND STATE TAXING AUTHORITIES. PART XI, LINE 4B - OTHER ADJUSTMENTS: LOSS ON DISPOSITION OF FIXED ASSETS (EXPENSE SHOWN IN REVENUE) -590,179. OTHER NON-OPERATING INCOME (REVENUE SHOWN IN EXPENSE) 61,706. PART XII, LINE 2D - OTHER ADJUSTMENTS: LOSS ON DISPOSITION OF FIXED ASSETS (EXPENSE SHOWN IN REVENUE) 590,179. OTHER NON-OPERATING INCOME (REVENUE SHOWN IN EXPENSE) -61,705. 1 AMERICAN HEART ASSOCIATION 2850 DAIRY DRIVE STE 300 MADISON WI 53718 135613797 501(C)(3) 15834 SPONSOR OF PASSION COMMITTEE ASSET BUILDERS OF AMERICA 1213 NORTH SHERMAN AVE 195 MADISON WI 53704 392005260 501(C)(3) 10000 SPONSOR-MADISON MILLIONAIRES CLUB COMMITMENT AND SPONSORSHIP OF FINANCIAL LITERACY PROGRAMMING FOR STUDENTS EDGEWOOD COLLEGE 1255 DEMING WAY MADISON WI 53717 390806202 501(C)(3) 12500 SCU BUSINESS ENDOWMENT FUND AND BONNER SCHOLARS PROGRAM HABITAT FOR HUMANITY 1014 FIEDLER LANE 29 MADISON WI 53713 391592769 501(C)(3) 15000 SPONSORSHIP OF CMG-SCU HOUSE SECOND HARVEST FOOD BANK OF SO WI 2802 DAIRY DRIVE MADISON WI 53718 391490691 501(C)(3) 7600 SHARE YOUR HOLIDAYS SPONSORSHIP COMMUNITY SCHOOLS-YMCA 1470 DON SIMON DR SUN PRAIRIE WI 53590 390806253 501(C)(3) 10000 COMMUNITY SCHOOLS DOMESTICE ABUSE INTERVENTION PO BOX 1761 MADISON WI 53701 391268238 501(C)(3) 10100 SPONSOR OF INDEPENDENCE LUNCHEON WAUNAKEE NEIGHBORHOOD CONNECTION 215 S CENTURY AVE 316 WAUNAKEE WI 53597 611513411 501(C)(3) 10000 FACILITY SUPPORT COMMON WEALTH DEVELOPMENT 1501 WILLIAMSON ST MADISON WI 53703 391323500 501(C)(3) 10000 SUPPORT EARN$AVE PROGRAM AND YOUTH PROGRAM SUPPORT 9 PART I, LINE 2: THE CU DOES MAINTAIN RECORDS TO SUBSTANTIATE THE AMOUNTS, THE GRANTEES' ELIGIBILITY, AND THE SELECTION CRITERIA. THE GRANTS ARE NOT CONTINGENT ON THE FUNDS BEING USED FOR A PARTICULAR PROJECT OR THEY MUST BE RETURNED, SO THE CU DOES NOT MONITOR HOW A PARTICULAR DONATION WAS USED. RECIPIENTS ARE TYPICALLY 501(C)(3) ORGANIZATIONS. X 1 1 X X X X 0 1 0 KIM SPONEM CEO/PRESIDENT 450407 0 136154 0 16152 0 25500 0 5573 0 633786 0 0 0 KEITH PETERSON CFO 164037 0 30663 0 202340 0 20069 0 18866 0 435975 0 0 0 REBECCA GEROTHANAS SVP 161221 0 30540 0 4437 0 15649 0 18686 0 230533 0 0 0 JOANNE BELANGER SVP MARKETING 132291 0 25 0 39677 0 3231 0 14125 0 189349 0 0 0 DANIEL MILBRANDT CHIEF LENDING OFFICER 144323 0 24245 0 3260 0 14078 0 1475 0 187381 0 0 0 CHRISTOPHER HEFTER VP IT 132831 0 24345 0 4315 0 16071 0 17818 0 195380 0 0 0 DONALD GRIFFIN MORTGAGE LOAN OFFICER 48820 0 8033 0 98952 0 15588 0 2296 0 173689 0 0 0 MARY BYRD MORTGAGE LOAN OFFICER 39591 0 4447 0 101028 0 14779 0 16809 0 176654 0 0 0 CHRISTINE HAROLDSON VP MORTGAGE LENDING 95091 0 16833 0 32042 0 14610 0 16575 0 175151 0 0 0 JEREMY EPPLER VP RISK MANAGEMENT 122848 0 21166 0 2678 0 14625 0 2705 0 164022 0 0 0 TIMOTHY GREENE MORTGAGE LOAN OFFICER 37081 0 4473 0 102104 0 14508 0 15510 0 173676 0 0 0 ADAM PELLETTER MORTGAGE LOAN OFFICER 47349 0 3752 0 88905 0 14146 0 15510 0 169662 0 0 0 DENISE O'HARA FORMER SVP HR & OD 112709 0 26319 0 3400 0 12643 0 6071 0 161142 0 0 0 PART I, LINE 1A KIM SPONEM - HEALTH/SOCIAL CLUB $10,810 PART I, LINE 4B KEITH PETERSON - 457F PAYMENT - $199,422 FORM 990, PART VI, SECTION A, LINE 6 THE CREDIT UNION IS COMPRISED OF A SINGLE CLASS OF APPROXIMATELY 139,000 MEMBER-OWNERS, EACH OF WHICH HAS EQUAL RIGHTS IN OWNERSHIP, GOVERNANCE AND VOTING RIGHTS AT THE ANNUAL MEETINGS, WITH THE EXCEPTION OF THE MEMBER-OWNERS WHO ARE ELECTED TO THE BOARD OF DIRECTORS. FORM 990, PART VI, SECTION A, LINE 7A THE MEMBER-OWNERS OF THE CREDIT UNION HAVE THE AUTHORITY TO ELECT THE MEMBERS OF THE BOARD OF DIRECTORS FOR THREE-YEAR TERMS ON A ROTATING BASIS. CANDIDATES ARE ELECTED BY A SIMPLE PLURALITY VOTE. FORM 990, PART VI, SECTION A, LINE 7B THE BY-LAWS MAY BE AMENDED, ALTERED OR REPEALED IN ANY MANNER NOT INCONSISTENT WITH APPLICABLE LAW BY A MAJORITY VOTE OF THE BOARD AT ANY DULY CONVENED MEETING OF THE BOARD. THESE BY-LAWS MAY BE AMENDED BY THREE-FOURTHS MAJORITY VOTE OF THE MEMBERS PRESENT AT ANY ANNUAL OR SPECIAL MEETING OF THE MEMBERS, IF ALL NOTICE AND OTHER REQUIREMENTS APPLICABLE TO AMENDMENT OF THESE BY-LAWS ARE SATISFIED. NO AMENDMENT, ALTERATION, OR REPEAL OF THESE BYLAWS SHALL BECOME EFFECTIVE UNTIL FILED WITH AND APPROVAL BY THE OFFICE OF CREDIT UNIONS. MEMBERS ALSO VOTE ON APPROVAL OF A NAME CHANGE. FORM 990, PART VI, SECTION B, LINE 11 THE FORM 990 IS REVIEWED BY THE VP-RISK MANAGEMENT AND CFO PRIOR TO FILING. IF THERE IS UNCERTAINTY ABOUT A RESPONSE, THEY WILL CONSULT WITH THE APPROPRIATE SUBJECT MATTER EXPERT. FORM 990, PART VI, SECTION B, LINE 12C ALL EMPLOYEES AND VOLUNTEERS ARE COVERED BY THE CONFLICT OF INTEREST POLICY, WHICH PROHIBITS ENGAGING IN TRANSACTIONS WITH PARTIES WHERE A CONFLICT EXISTS. ALL STAFF RECEIVE ANNUAL TRAINING ON CONFLICT OF INTEREST AND ARE REQUIRED TO RE-READ THE DOCUMENT ANNUALLY. THE CORE SYSTEM ALSO PROHIBITS EMPLOYEES FROM COMPLETING TRANSACTIONS ON ACCOUNTS THAT CONTAIN THEIR SOCIAL SECURITY NUMBER OR ADDRESS. VARIOUS MONTHLY FRAUD MONITORING REPORTS ARE REVIEWED BY RISK MANAGEMENT. POTENTIAL CONFLICTS ARE DISCUSSED WITH THE VP RISK MANAGEMENT AND FACILITIES, AND ESCALATED TO THE SVP HR AND ORGANIZATIONAL DEVELOPMENT, CFO, AND CEO/PRESIDENT AS NEEDED. FORM 990, PART VI, SECTION B, LINE 15 ALL POSITIONS ARE CLASSIFIED WITHIN SALARY BANDS. EACH YEAR, ALL SALARY BANDS ARE REVIEWED AND MAY BE ADJUSTED TO REFLECT JOB MARKET CHANGES TO ENSURE THAT POSITIONS ARE CLASSIFIED APPROPRIATELY. EVERY TWO TO THREE YEARS ALL POSITIONS ARE RE-EVALUATED USING MULTIPLE EXTERNAL RESOURCES IN THIS PROCESS. THE CEO'S COMPENSATION IS REVIEWED BY THE BOARD EACH YEAR AND MULTIPLE SOURCES ARE USED. FORM 990, PART VI, SECTION C, LINE 19 GOVERNING DOCUMENTS ARE PROVIDED TO MEMBERS UPON REQUEST. FINANCIAL STATEMENTS ARE PRESENTED IN THE ANNUAL REPORT AND AVAILABLE FOR DOWNLOAD FROM NCUA. FORM 990, PART XI, LINE 9: NET CHANGE IN DEFINED BENEFIT OBLIGATIONS -65,531. RECLASSIFICATION FOR IMPAIRMENT CREDIT LOSSES INCLUDED IN NET INCOME 49,852. EQUITY ACQUIRED BY ACQUISITION 3,082,312. FORM 990, PART XII, LINE 2C: THE PROCESS HAS NOT CHANGED FROM THE PRIOR YEAR.