2013-11-15T10:00:21-06:00 2012-12-31 420714325 MCGLADREY LLP 801 NICOLLET MALL SUITE 1100 MINNEAPOLIS MN 55402 990 2012-01-01 941189841 SCHOOLS FINANCIAL CREDIT UNION SCHO 9165695400 1485 RESPONSE ROAD NO 126 SACRAMENTO CA 95815 JAMES JORDAN 9165695400 2013-10-25 1 GERALD B KISSELL P00092658 6123324300 2012 2016-02-25 16:41:14Z JAMES JORDAN 1485 RESPONSE ROAD NO 126 SACRAMENTO CA 95815 93364542 0 X WWW.SCHOOLS.ORG X 1933 CA TO PROVIDE MEMBERS WITH BETTER VALUE AND OUTSTANDING SERVICE. 7 7 328 24 548666 -47279 0 0 50157491 46629430 9687760 10625215 0 274929 59845251 57529574 12650 12615 5507496 4098228 18091164 19398719 0 0 0 30656898 19884047 54268208 43393609 5577043 14135965 1326798786 1405824884 1212999467 1270740136 113799319 135084748 X TO PROMOTE THRIFT AND SAVING AMONG MEMBERS, TO CREATE A SOURCE OF CREDIT FOR MEMBERS AT INTEREST RATES SET BY THE BOARD OF DIRECTORS, AND TO PROVIDE MEMBERS WITH AN OPPORTUNITY TO USE AND CONTROL THEIR MONEY ON A DEMOCRATIC BASIS IN ORDER TO IMPROVE THEIR ECONOMIC AND SOCIAL CONDITIONS. 0 0 SCHOOLS FINANCIAL CREDIT UNION (SFCU) IS A MEMBER-OWNED, NOT-FOR-PROFIT FINANCIAL COOPERATIVE DEDICATED TO SERVING THE FINANCIAL NEEDS OF ITS MEMBERS. ITS PURPOSE IS TO BE THE PRIMARY FINANCIAL INSTITUTION FOR COMMUNITY MEMBERS IN ITS SERVICE AREA. ITS MISSION IS TO PROVIDE MEMBERS WITH BETTER VALUE AND OUTSTANDING SERVICE. AS OF DECEMBER 31, 2012, SFCU HAD ELEVEN BRANCHES, 111,515 MEMBERS, TOTAL ASSETS OF $1,405,824,884, TOTAL OUTSTANDING LOANS OF $621,895,081, AND TOTAL DEPOSITS OF $1,260,878,541. SFCU FOSTERS A CULTURE OF "PEOPLE HELPING PEOPLE" THROUGHOUT THE ORGANIZATION, AND ITS INTERACTION WITH MEMBERS EPITOMIZES THE STANDARDS OF ETHICAL BEHAVIOR. SFCU TREATS ALL MEMBERS WITH RESPECT AND DIGNITY AND PROVIDES SERVICES TO SAVERS AND BORROWERS IN A DEMOCRATIC FASHION. SFCU OFFERS ITS MEMBERS AN ECONOMIC ADVANTAGE COMBINED WITH COURTEOUS, COMPETENT AND TIMELY SERVICE. IT VALUES OPEN, HONEST, TWO-WAY COMMUNICATION WITH ITS MEMBERS. SFCU SOLICITS INPUT FROM ITS MEMBERS TO FACILITATE COMMUNICATION AND TO MEASURE SERVICE QUALITY.SFCU IS COMMITTED TO CONSTANTLY IMPROVING ITS OVERALL OPERATIONAL EFFICIENCY, ITS SERVICE DELIVERY CONVENIENCE AND THE LEVEL OF PROFESSIONAL SERVICE IT PROVIDES TO ITS MEMBERS. IT MEETS ITS MEMBERS' EXPECTATIONS FOR PRICE ADVANTAGE, QUALITY SERVICE AND CONVENIENCE BY REMAINING FINANCIALLY STRONG AND VIABLE.SFCU COMMUNICATES ITS SERVICES IN A MEANINGFUL WAY SO THAT MEMBERS, POTENTIAL MEMBERS, LEGISLATORS, REGULATORS AND THE COMMUNITY-AT-LARGE UNDERSTAND AND APPRECIATE THE UNIQUE ROLE THAT MEMBER-OWNED FINANCIAL COOPERATIVES PLAY IN THEIR LIVES. ITS COMMITMENT TO MEMBERS IS CONSISTENT WITH ITS PRINCIPLES OF "FOR SERVICE, NOT FOR PROFIT, NOT FOR CHARITY" AND ITS PHILOSOPHY OF "PEOPLE HELPING PEOPLE". THIS COMMITMENT REPRESENTS THE SOUND BUSINESS PRACTICES THAT ENSURE THE FINANCIAL STRENGTH OF SFCU FOR ITS MEMBERS. 0 0 0 0 0 0 0 1 0 1 1 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 1 38471 0 1 328 1 1 1 0 0 0 0 0 X 7 7 0 0 0 0 1 1 1 1 1 0 1 1 1 1 1 1 1 1 1 1 0 CA X TIM MARRIOTT 9165695400 1485 RESPONSE ROAD SUITE 126 SACRAMENTO CA 95815 EUGENE J HOUGHTON JR 1.00 X X 0 0 0 RONALD E KRAMNIC 1.00 X X 0 0 0 MARIE B SMITH 1.00 X X 0 0 0 GLORIA L ROSS 1.00 X X 0 0 0 EMILIO MARTINEZ 1.00 X 0 0 0 THERESA MATISTA 1.00 X 0 0 0 DOLORES BLEEKMAN 1.00 X 0 0 0 JAMES JORDAN 40.00 X 572492 0 616829 TIMOTHY MARRIOTT 40.00 X 239865 0 132338 ERIC LINDSTROM 40.00 X 197881 0 42566 CHERYL HARRIS 40.00 X 195371 0 36607 MELINDA BROWNING 40.00 X 203512 0 24870 ROY WORLEY 40.00 X 158161 0 24046 LISA MACKAY 40.00 X 157755 0 13442 SANDRA PHARES 40.00 X 134338 0 20143 TOM KUANG 40.00 X 137289 0 11854 1996664 0 922695 18 0 1 0 RUBICON PROPERTY MANAGEMENT 3300 DOUGLAS BLVD SUITE 369 ROSEVILLE CA 95661 PROPERTY MANAGEMENT 387842 DIEBOLD INC 5995 MAYFAIR ROAD NORTH CANTON OH 44720 ATM SERVICING 315910 WORKFLOW ONE 220 E MONUMENT AVE DAYTON OH 45402 PRINTING & IMAGE PROCESSING 296890 EXPERIAN 475 ANTON BLVD COSTA MESA CA 92626 CREDIT REPORTING 145605 PRINTING BY DESIGN PO BOX 103 RESCUE CA 95672 PRINTING 137139 8 LOAN INTEREST INCOME 522100 31390901 31390901 FEE & SERVICE CHARGE INCOME 522100 13570048 13320869 249179 OTHER INCOME 522100 1668481 1368994 299487 46629430 9850226 9850226 1059897 784968 274929 274929 274929 35824989 35050000 774989 774989 774989 57529574 46080764 548666 10900144 6350 6265 4098228 2033948 13629460 398339 2164885 1172087 244433 79000 61017 587429 1395830 2852594 2059112 100898 146834 23 1368454 430610 OUTSIDE SERVICERS 5637285 PROVISION FOR LOAN LOSS 2050000 NCUSIF STABILIZATION AS 1172933 DUES & EXAM FEES 217097 1480498 43393609 45208918 98696914 1000000 1000000 599452125 613238758 1465224 855604 56918437 33267201 24151522 23651236 591551362 630661145 63969635 37721227 1326798786 1405824884 9215705 9027258 563064 834337 1203220698 1260878541 1212999467 1270740136 X 0 0 0 0 113799319 135084748 113799319 135084748 1326798786 1405824884 14135965 7149464 0 X 0 1 X 1 0 0 1 X 5464509 5464509 26749486 12825567 13923919 2833282 2586085 247197 21871160 17855549 4015611 23651236 HELD TO MATURITY 237857532 C AVAILABLE FOR SALE SECURITIES 392803613 F 630661145 MEMBER SHARES 1260878541 1260878541 X PART IV, LINE 2B: THE ESCROW ACCOUNTS HOLD AMOUNTS COLLECTED WITH THE MEMBERS' MORTGAGE PAYMENTS THAT ARE TO BE USED TO PAY THOSE MEMBERS' HOMEOWNERS' INSURANCE PREMIUMS AND PROPERTY TAXES WHEN DUE. DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X, LINE 2: FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011, MANAGEMENT HAS DETERMINED THAT THERE ARE NO MATERIAL UNCERTAIN TAX POSITIONS. 1 SACRAMENTO FOOD BANK AND FAMILY SERVICES 3333 3RD AVENUE SACRAMENTO CA 95817 943315566 501(C)(3) 4000 2350 ACTUAL COST BOTTLED WATER RUN TO FEED THE HUNGRY 1 NEWS 10 TEACHER OF THE YEAR 1 5000 65 ACTUAL COST SPORTS BAG, MUG, NOTEPADS, PENS, PENCILS, HAND SANITIZER, CHAPSTICK, MINTS, CLIPS NEWS 10 TEACHER OF THE MONTH 12 300 900 ACTUAL COST SPORTS BAG, MUG, NOTEPADS, PENS, PENCILS, HAND SANITIZER, CHAPSTICK, MINTS, CLIPS PROCEDURE FOR MONITORING GRANTS IN THE U.S.: PART I, LINE 2: SCHEDULE I, PART I, LINE 2: THE CREDIT UNION DOES NOT MONITOR THE USE OF THE GRANT FUNDS. X X X 0 1 0 JAMES JORDAN 462552 0 0 0 109940 0 597380 0 19449 0 1189321 0 0 0 TIMOTHY MARRIOTT 220284 0 7761 0 11820 0 114262 0 18076 0 372203 0 0 0 ERIC LINDSTROM 185489 0 7012 0 5380 0 28543 0 14023 0 240447 0 0 0 CHERYL HARRIS 173000 0 6035 0 16336 0 29745 0 6862 0 231978 0 0 0 MELINDA BROWNING 2995 0 6011 0 194506 0 6637 0 18233 0 228382 0 0 0 ROY WORLEY 142984 0 5778 0 9399 0 5816 0 18230 0 182207 0 0 0 LISA MACKAY 148997 0 5514 0 3244 0 5464 0 7978 0 171197 0 0 0 SANDRA PHARES 123037 0 5001 0 6300 0 4830 0 15313 0 154481 0 0 0 PART I, LINE 4B THE CREDIT UNION HAS A NONQUALIFIED DEFERRED COMPENSATION PLAN IN PLACE FOR CERTAIN EXECUTIVES AS DESCRIBED IN SECTION 457(F). THE PAYOUT CALCULATIONS ARE PERFORMED UPON RETIREMENT AND BASED ON COMPENSATORY AMOUNTS CALCULATED PER A FORMULA APPROACH TAKING INTO ACCOUNT THE PRIOR FIVE YEARS COMPENSATION AMOUNTS. AMOUNTS ACCRUED UNDER SUCH PLAN ARE PROPERLY REFLECTED IN PART VII, COLUMN F AND IN SCHEDULE J, PART II, COLUMN C. ADDITIONAL TERMS AND CONDITIONS OF SUCH PLAN ARE AVAILABLE TO THE IRS UPON REQUEST. 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 THE EXECUTIVE COMMITTEE WILL REVIEW THE DRAFT OF THE FORM 990. THE COMPLETED FORM 990 WILL BE PROVIDED TO THE BOARD OF DIRECTORS PRIOR TO FILING. FORM 990, PART VI, SECTION B, LINE 12C THE CREDIT UNION HAS A WRITTEN CONFLICT OF INTEREST POLICY AND AN ANNUAL STATEMENT REGARDING CONFLICT OF INTEREST POLICY ("STATEMENT"). THE STATEMENT REQUIRES THE SIGNATORY TO ANNUALLY AFFIRM THAT HE/SHE HAS RECEIVED, READ, AND UNDERSTOOD THE CONFLICT OF INTEREST POLICY AND AGREES TO COMPLY WITH THE POLICY. THE STATEMENT ASKS A SERIES OF QUESTIONS DESIGNED TO REVEAL ANY POTENTIAL CONFLICTS OF INTEREST. THE SIGNATORY MUST EXPLAIN ANY POTENTIAL CONFLICTS OF INTEREST ON THE STATEMENT. THE MEMBERS OF THE BOARD OF DIRECTORS AND THE SUPERVISORY COMMITTEE, AS WELL AS THE CEO AND ALL OF THE VICE PRESIDENTS, MUST SIGN THE STATEMENT EACH YEAR. THE EXECUTIVE DEPARTMENT MAINTAINS A RECURRING EVENTS LIST TO ENSURE THAT THE ANNUAL STATEMENT REGARDING CONFLICT OF INTEREST POLICY IS SIGNED EVERY YEAR BY THE PERTINENT INDIVIDUALS. FORM 990, PART VI, SECTION B, LINE 15 PRESIDENT/CEO: THE EXECUTIVE COMMITTEE IS RESPONSIBLE FOR THE CEO'S SIX-MONTH INTERIM REVIEWS WITH A MORE FORMAL REVIEW BY THE BOARD OF DIRECTORS ANNUALLY. EACH DECEMBER, THE EXECUTIVE COMMITTEE PRESENTS TO THE BOARD OF DIRECTORS A RECOMMENDATION FOR THE PRESIDENT/CEO'S INTERIM MERIT RATING. THIS RECOMMENDATION WILL BE BASED ON THE PRESIDENT/CEO'S RESULTS DURING THE PRECEDING SIX MONTHS AND WILL BE STATED IN TERMS OF THE STANDARD SCHOOLS' PERFORMANCE CATEGORIES. EACH JUNE, THE EXECUTIVE COMMITTEE PRESENTS TO THE BOARD OF DIRECTORS A RECOMMENDATION FOR THE PRESIDENT/CEO'S ANNUAL MERIT RATING. THIS RECOMMENDATION WILL BE BASED ON THE PRESIDENT/CEO'S ANNUAL RESULTS AND WILL BE STATED IN TERMS OF THE STANDARD SCHOOLS' PERFORMANCE CATEGORIES. IN CONJUNCTION WITH THE MERIT RATING, THE EXECUTIVE COMMITTEE RECOMMENDS A SALARY INCREASE BASED ON THE CURRENT SCHOOLS' MERIT RATING CHART. THE BOARD OF DIRECTORS WILL ESTABLISH THE AMOUNT OF THE SALARY INCREASE (IF ANY) THAT WILL BE GRANTED TO THE PRESIDENT/CEO. THE MIDPOINT SALARY FOR THE PRESIDENT/CEO IS ESTABLISHED ANNUALLY BY CONSULTING THE TOP 25 HR EXECUTIVES' CEO SALARY SURVEY, THE EXECUTIVE COMPENSATION SOLUTIONS' (ECS) SUMMIT ROUND TABLE CEO COMPENSATION SURVEY, AND THE REWARD STRATEGIES GROUP'S (RSG) COMPENSATION SURVEY OF BILLION-DOLLAR CREDIT UNION CEOS. BASED ON THE RESULTS OF THESE SURVEYS, THE EXECUTIVE COMMITTEE WILL RECOMMEND A MIDPOINT ADJUSTMENT TO THE BOARD OF DIRECTORS, IF NECESSARY. THIS MIDPOINT IS EQUAL TO THE MEDIAN OF THE TOTAL CASH COMPENSATION SHOWN IN THE ABOVE MENTIONED SURVEYS. THE SCHOOLS' SALARY RANGE WILL EXTEND FROM 80% OF THE ESTABLISHED MIDPOINT TO 120% OF THAT MIDPOINT. OTHER OFFICERS AND KEY EMPLOYEES: THE PRESIDENT/CEO COMPLETES ANNUAL REVIEWS OF THE OTHER OFFICERS AND KEY EMPLOYEES. THE ANNUAL RESULTS OF THESE EMPLOYEES ARE EVALUATED IN TERMS OF THE STANDARD SCHOOLS' PERFORMANCE CATEGORIES. THE MIDPOINT SALARY FOR THESE EMPLOYEES IS ESTABLISHED ANNUALLY BY CONSULTING THE TOP 25 HR EXECUTIVES' SALARY SURVEY AND THE EXECUTIVE COMPENSATION SOLUTIONS' (ECS) SUMMIT ROUND TABLE COMPENSATION SURVEY. BASED ON THE RESULTS OF THESE SURVEYS, THE EXECUTIVE COMMITTEE WILL RECOMMEND A MIDPOINT ADJUSTMENT TO THE BOARD OF DIRECTORS, IF NECESSARY. THIS MIDPOINT IS APPROXIMATELY EQUAL TO THE MEDIAN FOR EACH EMPLOYEE'S RESPECTIVE POSITION AS SHOWN IN THE ABOVE MENTIONED SURVEYS. THE SCHOOLS' SALARY RANGE WILL EXTEND FROM 80% OF THE ESTABLISHED MIDPOINT TO 120% OF THAT MIDPOINT. FORM 990, PART VI, SECTION C, LINE 19 CREDIT UNION GOVERNING DOCUMENTS AND CONFLICT OF INTEREST POLICIES ARE AVAILABLE TO THE PUBLIC UPON REQUEST. THE CREDIT UNION ALSO PUBLISHES A BROCHURE WHICH DESCRIBES THE WAY IT CONDUCTS ITS BUSINESS. THE CREDIT UNION'S ANNUAL REPORTS CAN BE VIEWED ON ITS WEBSITE. THE BALANCE SHEET AND INCOME STATEMENT FOR THE MOST RECENTLY COMPLETED MONTH ARE POSTED IN EACH BRANCH. WE FILE A QUARTERLY 5300 REPORT WITH NCUA AND THE CALIFORNIA DEPARTMENT OF FINANCIAL INSTITUTIONS. SCHOOLS FINANCIAL SERVICES CORPORATION 1485 RESPONSE ROAD SUITE 126 SACRAMENTO CA 95815 680389013 INVESTMENT CONSULTING CA SCHOOLS FINANCIAL CREDIT UNION C 125543 145444 1.00000 1 0 0 0 0 0 0 0 0 0 1 0 0 0 0 1 0 1 0 0 SCHOOLS FINANCIAL SERVICES CORPORATION O 88191 ACTUAL AMOUNT SCHOOLS FINANCIAL SERVICES CORPORATION Q 150987 ACTUAL AMOUNT