2014-11-14T14:50:42-06:00 2013-12-31 420714325 MCGLADREY LLP 801 NICOLLET MALL SUITE 1100 MINNEAPOLIS MN 55402 990 2013-01-01 520284053 MUNICIPAL EMPLOYEES CREDIT UNION OF BALTIMORE INC MUNI 4107528313 7 E REDWOOD STREET BALTIMORE MD 21202 NATALIE J WOOMER VP/CONTROLLER 4107528313 2014-11-13 1 GERALD B KISSELL P00092658 6123324300 2013 2015-11-30 17:44:51Z MECU OF BALTIMORE INC GARY J MARTIN 7 E REDWOOD STREET BALTIMORE MD 21202 233187702 0 X WWW.MECU.COM X 1936 MD MECU IS A CREDIT UNION WHICH PROVIDES A FULL ARRAY OF FINANCIAL SERVICES TO ITS MEMBER OWNERS. 12 12 376 0 441609 -54517 0 0 59713519 59184565 9294651 9658298 0 3463460 69008170 72306323 181214 302887 13984081 13082543 21815965 21576785 0 0 0 28457931 30929824 64439191 65892039 4568979 6414284 1195519510 1228233601 1068028787 1109001629 127490723 119231972 X TO PROVIDE HIGH QUALITY FINANCIAL SERVICES TO OUR MEMBERS AND OUTSTANDING SERVICE TO OUR COMMUNITIES THROUGH SOUND MANAGEMENT AND INNOVATION. 0 0 MECU MAKES A VARIETY OF TYPES OF LOANS TO ITS MEMBERS INCLUDING MORTGAGE, HOME EQUITY, VEHICLE, CREDIT CARD AND UNSECURED LOANS AT VERY COMPETITIVE INTEREST RATES. THERE WERE 55,091 OUTSTANDING LOANS TOTALING $738.7 MILLION AT 12/31/13. IN 2013, MECU REFUNDED $1.6 MILLION OF THE INTEREST THAT ITS MEMBERS PAID ON LOANS DURING THE YEAR. IT WAS THE 32ND CONSECUTIVE YEAR THAT MECU HAS RETURNED MONEY TO ITS MEMBERS IN THE FORM OF A LOAN INTEREST REBATE. MECU PROVIDES ITS 106,600 MEMBERS WITH THE MEANS TO SAVE MONEY. MECU OFFERS SHARE SAVINGS, CHECKING, CERTIFICATES OF DEPOSIT, IRA, EDUCATIONAL SAVINGS AND MONEY MARKET ACCOUNTS. IN ADDITIONAL TO PAYING VERY COMPETITIVE DIVIDEND AND INTEREST RATES ON ITS SAVINGS PRODUCTS, MECU HAS ALSO PAID AN EXTRAORDINARY DIVIDEND TO ITS MEMBERS FOR THE LAST 32 CONSECUTIVE YEARS. MECU PAID $1.4 MILLION IN EXTRAORDINARY DIVIDENDS TO ITS MEMBERS IN 2013. IN 2013, MECU WON THE LOUISE HERRING PHILOSOPHY IN ACTION AWARD, THE DESJARDINS ADULT FINANCIAL EDUCATION AWARD AND THE DORA MAXWELL SOCIAL RESPONSIBILITY COMMUNITY SERVICE AWARD. MECU STRIVES TO OFFER PRODUCTS AND SERVICES DESIGNED TO IMPROVE THE ECONOMIC AND SOCIAL WELL BEING OF ALL MEMBERS FROM ALL SOCIAL-ECONOMIC BACKGROUNDS. MECU'S FIELD OF MEMBERSHIP DRAWS FROM BALTIMORE CITY, AN AREA THAT QUALIFIES AS AN UNDERSERVED/INVESTMENT AREA AS DEFINED BY THE NCUA. MECU IS COMMITTED TO MEMBER FINANCIAL EDUCATION. SOME OF THE PROGRAMS THAT MECU PROVIDES INCLUDE: DISCOUNTED MORTGAGE RATES THROUGH FIRST TIME HOMEBUYER'S PROGRAMS AND BUY IN BALTIMORE LOANS, HOME BUYERS' WORKSHOPS, CREDIT REPAIR WORKSHOPS, BASICS OF MONEY MANAGEMENT, NEW EMPLOYEE AND PRE-RETIREMENT WORKSHOPS AND FREE CREDIT COUNSELING SERVICES THROUGH ACCEL, A GREENPATH, INC. AFFILIATE. MECU ALSO HAS TWO STUDENT-RUN BRANCHES AT HIGH SCHOOLS. ALSO, MECU HAS BEEN CERTIFIED AS A COMMUNITY DEVELOPMENT CREDIT UNION. MECU ACTIVELY PARTICIPATES IN COMMUNITY OUTREACH PROJECTS. SOME OF THE PROGRAMS THAT MECU PARTICIPATED IN DURING 2013 WERE HABITAT FOR HUMANITY, JUNIOR ACHIEVEMENT, MEALS ON WHEELS, PARTNERSHIPS WITH 9 ELEMENTARY SCHOOLS, ADOPTING FAMILIES FOR THE HOLIDAYS, THE SALVATION ARMY ANGEL TREE, A MARYLAND PUBLIC TELEVISION TELETHON, CREDIT UNIONS FOR KIDS, DONATED OVER 6,000 BOOKS TO BALTIMORE CITY SCHOOL CHILDREN, HELD A GOLF TOURNAMENT TO RAISE MONEY FOR THE MECU FOUNDATION, THREW A PARTY FOR THE RESIDENTS AT A NURSING HOME, HELD A BLOOD DRIVE AND FED PEOPLE IN NEED AT OUR DAILY BREAD. MECU ALSO WALKED IN THE ADA AND CYSTIC FIBROSIS WALK-A-THONS. 0 0 0 0 0 0 0 1 0 1 1 0 1 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 39397 0 1 376 1 1 1 0 0 0 0 0 X 12 12 0 0 1 0 1 1 1 1 1 0 1 1 1 1 1 1 1 1 1 1 0 X NATALIE J WOOMER 4107528313 7 E REDWOOD STREET BALTIMORE MD 21202 HERMAN WILLIAMS JR CHAIR 2.00 X X 19400 0 0 ERNEST GLINKA VICE CHAIR 1.60 X X 20200 0 0 GARY MCLHINNEY SECRETARY 1.50 X X 19200 0 0 LORRETTA JOHNSON DIRECTOR 0.70 X 7400 0 0 JOHN WALKER III DIRECTOR 1.40 X 15000 0 0 G LOUISE GREEN DIRECTOR 1.00 X 10400 0 0 CHARMAINE THOMAS DIRECTOR 1.30 X 13600 0 0 A SOULA LAMBROPOULOS DIRECTOR 1.50 X 15200 0 0 BENJAMIN MELI JR DIRECTOR 1.50 X 16000 0 0 KALIOPE PARTHEMOS DIRECTOR 0.30 X 3600 0 0 PEGGY PEACOCK DIRECTOR 1.40 X 14400 0 0 ROMAN CLARK SR DIRECTOR 1.60 X 16400 0 0 BERT HASH JR PRESIDENT AND CEO 50.00 X 594297 0 233728 ADRIAN JOHNSON SENIOR VP AND CFO 45.00 X 181130 0 25022 ANDREW PATAKI EXECUTIVE VP AND COO 45.00 X 650847 0 75464 GARY MARTIN SENIOR VP OF LENDING 45.00 X 188935 0 42018 KATHY DAY SHELTON SR VP CALL CENTER & E-COMMERCE 45.00 X 168078 0 45480 PATRICIA ROBERTS VP OF BRANCH OPERATIONS 45.00 X 148615 0 43396 FRANK G RICHTER JR VP OF OPERATIONS 45.00 X 492276 0 10752 ALAN GRIFFITHS VP OF INFORMATION SYSTEMS 45.00 X 285577 0 29013 NATALIE WOOMER VP AND CONTROLLER 45.00 X 142531 0 27837 LAURIE S RUSH VP OF MARKETING 45.00 X 131074 0 7120 3154160 0 539830 15 0 1 0 FIDELITY NATIONAL INFORMATION SERVICES PO BOX 4535 CAROL STREAM IL 60197 DATA PROCESSOR/BILL PAYER 1920280 PSCU FINANCIAL SERVICES 560 CARILLON PARKWAY ST PETERSBERG FL 33716 CREDIT AND DEBIT CARD PROCESSOR 1645696 FISERV 75 REMITTANCE DRIVE SUITE 6962 CHICAGO IL 60675 STATEMENT MAILING, G/L & RECONCILIATION 1146618 M&T BANK 1 MT PLAZA 10TH FLOOR BUFFALO NY 14203 MEMBER ATM ACCESS & CORRESPONDENT BANK 571652 LENDING SOLUTIONS 2200 POINT BLVD SUITE 110 ELGIN IL 60123 LENDING CALL CENTER 511160 28 INTEREST ON LOANS TO MEMBERS 522100 42988455 42988455 SERVICE CHARGES AND OTHER FEES 522100 9623570 9521113 102457 OTHER NONINTEREST INCOME 522100 6572540 6233388 339152 59184565 7894065 7894065 162645612 160881379 1764233 1764233 1764233 BARGAIN PURCHASE GAIN 522100 3463460 3463460 3463460 72306323 62206416 441609 9658298 302887 13082543 2375799 13363013 1658322 3024036 1155615 147876 50000 436919 2077572 2231921 2128667 2147151 712353 1114455 1167636 266667 PROVISION FOR LOAN LOSS 8525807 ATM/DEBIT CARD EXPENSE 2994842 LOAN SERVICING EXPENSE 2635303 MEMBER STATEMENT EXPENS 947800 3344855 65892039 13454556 14571623 18527457 11633633 6296046 1298916 649728813 725505915 570075 841387 18266997 12968785 3688804 5298212 447769792 404597405 363428 55483967 64123082 1195519510 1228233601 15000979 16576502 63347 229847 1052964461 1092195280 1068028787 1109001629 X 0 0 0 0 127490723 119231972 127490723 119231972 1195519510 1228233601 6414284 -14673035 0 X 0 1 X 1 0 0 1 X 2015800 87041 1928759 5345943 4279443 1066500 10905254 8602301 2302953 5298212 AVAILABLE FOR SALE SECURITIES 350638316 F HELD-TO-MATURITY 53959089 C 404597405 ACCRUED INTEREST RECEIVABLE 7303902 NCUSIF DEPOSIT 10270757 CASH SURRENDER VALUE OF LIFE INSURANCE 37731570 OTHER ASSETS 8816853 64123082 MEMBERS' SHARES AND SAVINGS 1038666139 BORROWED FUNDS 53529141 1092195280 X 72306323 0 72306323 0 72306323 65892039 0 65892039 0 65892039 PART IV, LINE 2B: WE HAVE ESCROW FOR TWO SITUATIONS. WE HAVE $172,063 IN ESCROW THAT WE COLLECTED FROM BUSINESSES FOR THEIR REAL ESTATE LOANS WITH MECU. THEY MAKE ESCROW PAYMENTS TO MECU THAT IS USED TO PAY CERTAIN BILLS FOR THEM SUCH AS THEIR REAL ESTATE TAXES AND INSURANCE ON THE PROPERTY. WE ALSO HAVE $57,784 IN ESCROW FOR SITUATIONS WHERE IT CANNOT BE DETERMINED WHO OWNS THE LAND OR WHO GROUND RENT SHOULD BE PAID TO AT MORTGAGE SETTLEMENT SO THE BUYER IS REQUIRED TO PAY 5 YEARS WORTH OF GROUND RENT AT SETTLEMENT. MECU HOLDS THESE FUNDS IN ESCROW TO PAY GROUND RENT ON BEHALF OF THE MEMBER AND IF THE SITUATION IS NOT RESOLVED AFTER 5 YEARS, THE MONEY GOES BACK TO THE MEMBER. PART X, LINE 2: MANAGEMENT EVALUATED THE CREDIT UNION'S TAX POSITIONS AND CONCLUDED THAT THE CREDIT UNION HAD TAKEN NO UNCERTAIN TAX POSITIONS THAT REQUIRE ADJUSTMENT TO THE FINANCIAL STATEMENTS TO COMPLY WITH THE PROVISIONS OF FASB ASC 740-10, ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES. 1 BALTIMORE OFFICE OF PROMOTIONS AND ARTS 10 E BALTIMORE ST 10TH FLOOR BALTIMORE MD 21202 900091850 501(C)3 75000 PROVIDE GRANTS FOR BALTIMORE NEIGHBORHOOD EVENTS. AFRICAN AMERICAN CREDIT UNION COALITION PO BOX 1612 SHREVEPORT LA 71165 571091138 501(C)3 30000 TO INCREASE THE STRENGTH OF THE CREDIT UNION MOVEMENT. THE CREDIT UNION FOUNDATION OF MD & DC 8975 GUILFORD ROAD SUITE 190 COLUMBIA MD 21046 521749045 501(C)3 30000 SUPPORT CREDIT UNIONS AND THE COMMUNITIES THAT THEY SERVE. WORLDWIDE FOUNDATION FOR CREDIT UNIONS 5710 MINERAL POINT RD MADISON WI 53705 396093210 501(C)3 7000 IMPLEMENT DEVELOPMENT PROGRAMS FOR WORLD'S WORKING POOR. VILLAGE LEARNING PLACE 2521 SAINT PAUL STREET BALTIMORE MD 21218 522109848 501(C)3 6660 LIBRARY BALTIMORE CASH CAMPAIGN 217 E REDWOOD ST STE 1500 BALTIMORE MD 21202 522278450 501(C)3 7350 PROVIDES FREE TAX PREPARATION AND ASSET BUILDING SERVICES TO LOW INCOME PEOPLE. CREDIT UNION MIRACLE DAY INC PO BOX 27637 WASHINGTON DC 20038 522341329 501(C)3 10000 CHILDREN'S MIRACLE NETWORK HOSPITALS 7 0 PART I, LINE 2: MECU HAS A COMMITTEE THAT MEETS AND DETERMINES WHAT CHARITABLE CONTRIBUTIONS WILL BE MADE. THE COMMITTEE SELECTS 501(C)(3), PUBLIC CHARITIES, THAT BENEFIT THE CREDIT UNION MOVEMENT AND THE BALTIMORE COMMUNITY. X X X X 0 1 0 BERT HASH JR PRESIDENT AND CEO 524819 0 50000 0 19478 0 227208 0 6520 0 828025 0 0 0 ADRIAN JOHNSON SENIOR VP AND CFO 170440 0 10000 0 690 0 17701 0 7321 0 206152 0 0 0 ANDREW PATAKI EXECUTIVE VP AND COO 291988 0 20000 0 338859 0 60528 0 14936 0 726311 0 258208 0 GARY MARTIN SENIOR VP OF LENDING 176955 0 10000 0 1980 0 42018 0 0 0 230953 0 0 0 KATHY DAY SHELTON SR VP CALL CENTER & E-COMMERCE 157349 0 10000 0 729 0 24546 0 20934 0 213558 0 0 0 PATRICIA ROBERTS VP OF BRANCH OPERATIONS 137486 0 10000 0 1129 0 30120 0 13276 0 192011 0 0 0 FRANK G RICHTER JR VP OF OPERATIONS 59713 0 0 0 432563 0 1938 0 8814 0 503028 0 117048 0 ALAN GRIFFITHS VP OF INFORMATION SYSTEMS 45294 0 0 0 240283 0 26229 0 2784 0 314590 0 154186 0 NATALIE WOOMER VP AND CONTROLLER 134931 0 7000 0 600 0 21317 0 6520 0 170368 0 0 0 PART I, LINE 4B THE FOLLOWING INDIVIDUALS PARTICIPATED IN A NON-QUALIFIED RETIREMENT PLAN AND ALL COMPENSATION HAS BEEN PROPERLY REPORTED IN PART VII AND SCHEDULE J: ANDREW PATAKI - $319,381 DISBURSED IN 2013 FRANK RICHTER - $399,609 DISBURSED IN 2013 ALAN GRIFFITHS - $239,586 DISBURSED IN 2013 BERT HASH, JR. - NO DISBURSEMENT IN 2013 ADRIAN JOHNSON - NO DISBURSEMENT IN 2013 GARY MARTIN - NO DISBURSEMENT IN 2013 KATHY DAY SHELTON - NO DISBURSEMENT IN 2013 PATRICIA ROBERTS - NO DISBURSEMENT IN 2013 NATALIE WOOMER - NO DISBURSEMENT IN 2013 LAURIE RUSH - NO DISBURSEMENT IN 2013 MICHELLE WILLIAMS - NO DISBURSEMENT IN 2013 FORM 990, PART VI, SECTION A, LINE 4 UNDER ARTICLE II, SECTION 1, M, MECU ADDED TO THE GROUPS THAT QUALIFY FOR MEMBERSHIP IN THE MUNICIPAL EMPLOYEES CREDIT UNION OF BALTIMORE, INC.: "MEMBERS, VOLUNTEERS AND EMPLOYEES OF THE AMERICAN CONSUMER COUNCILS." 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 ORGANIZATION'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 NATALIE WOOMER, VP OF ACCOUNTING AND CONTROLLER, REVIEWS THE COMPLETED FORM 990 IN DETAIL BEFORE IT IS SENT TO THE IRS. THE TAX RETURN IS ALSO GIVEN TO ALL BOARD MEMBERS AND THE CEO FOR THEIR REVIEW BEFORE THE FORM IS FILED WITH THE IRS. FORM 990, PART VI, SECTION B, LINE 12C AT THE BEGINNING OF EACH YEAR, EACH BOARD DIRECTOR, MECU EMPLOYEE AND SUPERVISORY AND CREDIT COMMITTEE MEMBER IS REQUIRED TO COMPLETE A CONFLICT OF INTEREST QUESTIONNAIRE. THE RESPONSES ARE REVIEWED BY MECU'S HUMAN RESOURCE DEPARTMENT TO VERIFY THAT EVERYONE IS IN COMPLIANCE WITH MECU'S CONFLICT OF INTEREST POLICY. FORM 990, PART VI, SECTION B, LINE 15 THE CEO AND OTHER TOP MANAGEMENT OFFICIALS RECEIVE AN ANNUAL PERFORMANCE REVIEW. BASED ON PERFORMANCE, THE EMPLOYEE MAY RECEIVE A MERIT INCREASE. COMPENSATION DATA FROM A COUPLE OF SOURCES IS REVIEWED TO DETERMINE THE EMPLOYEE'S SALARY. THESE SOURCES INCLUDE CREDIT UNION SALARY SURVEYS FROM CUES AND CUNA. FOR KEY EMPLOYEES OTHER THAN THE CEO, THE PERFORMANCE REVIEW DOCUMENT IS SIGNED BY THE CORRESPONDING DEPARTMENT HEAD AND THE VICE-PRESIDENT OF HUMAN RESOURCES. THE CEO'S EVALUATION IS CONDUCTED BY THE BOARD OF DIRECTORS EACH YEAR IN JANUARY AND IS BASED ON THE FOUR (4) FOLLOWING CRITERIA: FINANCIAL PERFORMANCE, STRATEGIC GOALS AND OBJECTIVES, EVALUATIONS COMPLETED BY THE BOARD MEMBERS AND COMMUNITY, INDUSTRY AND CIVIC INVOLVEMENT. THE CEO MEETS WITH THE BOARD TO DISCUSS HIS PERFORMANCE. THE BOARD VOTES ON ANY MERIT INCREASE AND/OR BONUS. A NEW CONTRACT IS SIGNED EACH YEAR REFLECTING HIS SALARY AND THE EXPECTATIONS OF THE POSITION. THE CONTRACT IS SIGNED BY THE BOARD CHAIR, BOARD SECRETARY AND THE CEO. FORM 990, PART VI, SECTION C, LINE 19 FINANCIAL STATEMENTS, CONFLICT OF INTEREST POLICY AND GOVERNING DOCUMENTS ARE AVAILABLE UPON REQUEST FOR THE SAME PERIOD OF DISCLOSURE AS SET FORTH IN SECTION 6104(D). THE AUDITED FINANCIAL STATEMENTS ARE POSTED ON MECU'S WEBSITE.