2014-10-10T12:59:34-05:00 2013-12-31 741699466 FITTS ROBERTS & CO PC 5718 WESTHEIMER SUITE 800 HOUSTON TX 77057 990 2013-01-01 741260543 TEXAS DOW ECU TEXA 3615809129 1001 FM 2004 LAKE JACKSON TX 77566 RHONDA KLEINECKE SVP & CFO 3615809129 2014-10-09 1 ROSE KAY PARKER CPA P00177405 7132605230 2014-10-09 2013 2015-11-30 17:44:51Z RHONDA KLEINECKE 1001 FM 2004 LAKE JACKSON TX 77566 153107104 0 X WWW.TDECU.ORG X 1955 TX INCREASE ECONOMIC WELL-BEING OF OUR MEMBERS THROUGH NOT-FOR-PROFIT, COOPERATIVE FINANCIAL SERVICES. 10 10 891 0 3603802 -4066682 0 0 141444985 152699284 -234808 330321 797978 -108727 142008155 152920878 0 0 0 0 43611909 48071864 0 0 0 76295846 76199112 119907755 124270976 22100400 28649902 1981022369 2163885036 1817138132 1970473843 163884237 193411193 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 186,000 MEMBERS. TDECU CURRENTLY HAS 40 MEMBER SERVICE LOCATIONS, 3 INSURANCE LOCATIONS, 6 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 44337 0 1 891 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 0 1 1 1 0 X X RHONDA L KLEINECKE SVP CFO 8008391154 1001 FM 2004 LAKE JACKSON TX 77566 DAN BUCHE DIRECTOR 4.00 X 29400 0 0 GEORGE HORNBACK DIRECTOR 4.00 X 16081 0 0 PEGGY MILTENBERGER DIRECTOR 4.00 X 16200 0 0 DAVID OZUNA DIRECTOR 4.00 X 17000 0 0 DICK SMITH DIRECTOR 4.00 X 30467 0 0 MARCUS STEPHENSON DIRECTOR 4.00 X 13950 0 0 MIKE TRACY DIRECTOR 4.00 X 16075 0 0 ED ZINGLEMAN DIRECTOR 4.00 X 13775 0 0 ED SPEED DIRECTOR 4.00 X 25666 0 0 JACK ANTONINI DIRECTOR 4.00 X 5200 0 0 ROLAND HENDRICKS DIRECTOR 4.00 X 18850 0 0 FRANK COE DIRECTOR 4.00 X 9775 0 0 EILEEN CAMPBELL DIRECTOR 4.00 X 6400 0 0 ROBERT BALDWIN DIRECTOR 4.00 X 5200 0 0 STEPHANIE SHERRODD PRESIDENT & CEO 40.00 X 630424 0 18850 MILTON STEVENS SENIOR VP & CIO 40.00 X 299170 0 22830 ROBERT LOCKETT III SENIOR VP & CSO 40.00 X 374614 0 14556 RHONDA KLEINECKE SENIOR VP & CFO 40.00 X 305444 0 22811 CHARLES SMITH SENIOR VP & CLO 40.00 X 208966 0 21340 COURTLAND CROUCHET SENIOR VP & CRO 40.00 X 176735 0 21946 EDWARD BIRDSONG PRESIDENT - TDECU RE 40.00 X 376400 0 25474 LUCILLA HENDERSON VP- COMMUNITY RELATIONS 40.00 X 180280 0 22879 JEFFREY CALLAN VP-RETAIL WEALTH MGMT 40.00 X 198417 0 19510 SHAMIK DARU VP & CONTROLLER 40.00 X 185544 0 14556 GARY LANIER VP-RETAIL LANDING 40.00 X 190806 0 22937 TANGY NAPIER VP-RETAIL DELIVERY 40.00 X 176379 0 15474 VANDI THERIOT VP-TALENT SERVICES 40.00 X 181360 0 17256 WESLEY WOLF PRESIDENT-INS AGENCY 40.00 X 284649 0 22538 BONITA TUCKER VP-SERVICE OPERATIONS 40.00 X 165613 0 21096 TAMMIE BELL REAL ESTATE AGENT 40.00 X 233012 0 23902 BETHANY DAVIS FINANCIAL ADVISOR 40.00 X 316684 0 24140 CHARLES MAGUIRE VP-COMMUNITY RELATIONS 40.00 X 193387 0 21699 ROBYN COCHRAN PRODUCING REGIONAL SALES MANAGER 40.00 X 275904 0 24076 JANICE ARIZMENDI OPERATIONS ANALYST 40.00 X 215809 0 24078 5393636 0 421948 47 0 1 0 HOUSTON REMODELING INC 1903 STONEGROVE CT PEARLAND TX 77581 CONSTRUCTION 601371 SEIZE THE WORLD INC 450 GEARY ST SUITE 100 SAN FRANCISCO CA 94102 CONSULTING SERVICES AND COACHING 546505 BURTON CONSTRUCTION COMPANY 10550 WESTPARK DRIVE HOUSTON TX 77042 CONSTRUCTION 491853 KELLY SERVICES INC PO BOX 530437 ATLANTA GA 30353 STAFFING PROVIDER 337241 REYNOLDS SMITH AND HILLS INC PO BOX 4850 JACKSONVILLE FL 32256 SCHEMATIC DESIGN & DEVELOPMENT 280045 12 INTEREST ON LOANS 522100 106893710 106893710 FEE INCOME 522100 38335423 36996161 1339262 OTHER OPERATING INCOME 522100 7470151 5092461 2377690 152699284 259098 259098 257449 112944 73282 144505 -73282 71223 71223 MANAGEMENT FEE 522100 3525 3525 CENTURY OAK TITLE, LLC 522100 -112252 -113150 898 -108727 152920878 148985857 3603802 331219 4462888 31499669 841860 8536087 2731360 483502 162278 6055365 3838596 6512643 4984875 1627552 43682 14142372 5107521 985784 OTHER SERVICE FEES 17641170 PROVISION FOR LOAN LOSS 11859117 LOAN SERVICING EXPENSE 1991065 LOSSES ON OREO PROPERTY 763590 124270976 36497994 12027341 148345003 140234409 10279167 14128622 1702358995 1902070856 89130241 40782985 35202624 48347256 12941123 360714 3478620 4944930 31918843 41770908 1981022369 2163885036 12826120 11080061 394061 5913304 5602739 165414566 130168546 1632984142 1823228436 1817138132 1970473843 X 0 0 0 0 163884237 193411193 163884237 193411193 1981022369 2163885036 X 28649902 5309 871745 X X 0 1 X 1 0 0 1 X 7708075 7708075 31832858 8071330 23761528 7353359 3711011 3642348 38170238 29000644 9169594 4065711 4065711 48347256 MEMBERS' SHARES AND SAVINGS ACCOUNTS 1823228436 1823228436 X 154680996 1831341 1831341 152849655 71223 71223 152920878 126085143 1819477 1819477 124265666 5310 5310 124270976 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 K-1 ACTIVITIES FROM CENTURY OAKS TITLE, LLC ASSOCIATED INSURANCE ADVISORS, INC - GROSS REVENUE PART XI, LINE 4B - OTHER ADJUSTMENTS: (GAIN) LOSS ON DISPOSITION OF ASSETS ROUNDING PART XII, LINE 2D - OTHER ADJUSTMENTS: GAIN (LOSS) ON DISPOSITION OF ASSETS CENTURY OAKS TITLE, LLC - TOTAL EXPENSES ASSOCIATED INSURANCE ADVISORS, INC - TOTAL EXPENSES PART XII, LINE 4B - OTHER ADJUSTMENTS: UNREALIZED GAIN ON SECURITIES ROUNDING X X X X 1 1 X X X X X 0 1 0 STEPHANIE SHERRODD PRESIDENT & CEO 430000 0 170000 0 30424 0 4294 0 14556 0 649274 0 0 0 MILTON STEVENS SENIOR VP & CIO 229231 0 63000 0 6939 0 8274 0 14556 0 322000 0 0 0 ROBERT LOCKETT III SENIOR VP & CSO 234615 0 105000 0 34999 0 0 0 14556 0 389170 0 0 0 RHONDA KLEINECKE SENIOR VP & CFO 229231 0 63000 0 13213 0 8255 0 14556 0 328255 0 0 0 CHARLES SMITH SENIOR VP & CLO 177692 0 26700 0 4574 0 5866 0 15474 0 230306 0 0 0 COURTLAND CROUCHET SENIOR VP & CRO 153035 0 23700 0 0 0 6472 0 15474 0 198681 0 0 0 EDWARD BIRDSONG PRESIDENT - TDECU RE 192500 0 0 0 183900 0 10000 0 15474 0 401874 0 0 0 LUCILLA HENDERSON VP- COMMUNITY RELATIONS 159011 0 19100 0 2169 0 7405 0 15474 0 203159 0 0 0 JEFFREY CALLAN VP-RETAIL WEALTH MGMT 150000 0 0 0 48417 0 4036 0 15474 0 217927 0 0 0 SHAMIK DARU VP & CONTROLLER 165000 0 13200 0 7344 0 0 0 14556 0 200100 0 0 0 GARY LANIER VP-RETAIL LANDING 164231 0 24750 0 1825 0 7463 0 15474 0 213743 0 0 0 TANGY NAPIER VP-RETAIL DELIVERY 157165 0 11850 0 7364 0 0 0 15474 0 191853 0 0 0 VANDI THERIOT VP-TALENT SERVICES 157456 0 23700 0 204 0 2700 0 14556 0 198616 0 0 0 WESLEY WOLF PRESIDENT-INS AGENCY 200000 0 83307 0 1342 0 7982 0 14556 0 307187 0 0 0 BONITA TUCKER VP-SERVICE OPERATIONS 138852 0 21000 0 5761 0 6540 0 14556 0 186709 0 0 0 TAMMIE BELL REAL ESTATE AGENT 0 0 0 0 233012 0 9346 0 14556 0 256914 0 0 0 BETHANY DAVIS FINANCIAL ADVISOR 27692 0 0 0 288992 0 8666 0 15474 0 340824 0 0 0 CHARLES MAGUIRE VP-COMMUNITY RELATIONS 183927 0 0 0 9460 0 6225 0 15474 0 215086 0 0 0 ROBYN COCHRAN PRODUCING REGIONAL SALES MANAGER 27692 0 0 0 248212 0 8602 0 15474 0 299980 0 0 0 JANICE ARIZMENDI OPERATIONS ANALYST 93499 0 0 0 122310 0 8604 0 15474 0 239887 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, LINE 4B 457(F) PLAN 2013 PURCHASE PAYMENTS: STEPHANIE SHERRODD $270,000 RHONDA L. KLEINECKE $100,000 ROBERT S. LOCKETT III $100,000 MILTON E. STEVENS $100,000 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 IN TDECU'S BANK SECRECY ACT 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 SENIOR MANAGEMENT TEAM. 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 XI, LINE 9: ASSOCIATED INSURANCE ADVISORS, INC EQUITY 871,752. ROUNDING -7. 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. 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