2013-11-14T08:43:02-06:00 2012-12-31 420714325 MCGLADREY LLP 801 NICOLLET MALL SUITE 1100 MINNEAPOLIS MN 55402 990 2012-01-01 941287157 COAST CENTRAL CREDIT UNION COAS 7074458801 2650 HARRISON AVENUE EUREKA CA 95501 JAMES SESSA 7074458801 2013-11-08 1 GERALD B KISSELL P00092658 6123324300 2012 2016-02-25 16:41:14Z DEAN CHRISTENSEN 2650 HARRISON AVENUE EUREKA CA 95501 35584715 0 X WWW.COASTCCU.ORG X 1950 CA PROVIDING FINANCIAL SERVICES TO MEMBERS. 9 9 221 12 52651 -113552 0 0 29800785 28722717 7026574 6829844 25677 32154 36853036 35584715 90819 90237 8360865 6457759 11493773 12055795 0 0 0 11859672 10988723 31805129 29592514 5047907 5992201 929601413 971774769 826291249 861539281 103310164 110235488 COAST CENTRAL CREDIT UNION'S MISSION IS TO BE THE PRIMARY FINANCIAL INSTITUTION FOR MEMBERS BY PROVIDING HIGH QUALITY FINANCIAL SERVICES AT COMPETITIVELY FAVORABLE RATES CONSISTENT WITH MAINTAINING FINANCIAL STRENGTH. 0 0 COAST CENTRAL PROVIDES A RANGE OF DEPOSIT SERVICES TO ITS APPROXIMATELY 60,300 MEMBERS. THESE INCLUDE SAVINGS, CHECKING, MONEY MARKET, AND SAVINGS CERTIFICATE ACCOUNTS. SERVICES CAN BE ACCESSED THROUGH OUR 12 MEMBER SERVICES BRANCHES, ONLINE, BY PHONE, OR THROUGH A LARGE NETWORK OF ATMS. WE OFFER MANY DIFFERENT LOAN PRODUCTS. THESE INCLUDE CREDIT CARDS; CONSUMER PERSONAL, AUTO, AND RV LOANS; REAL ESTATE PURCHASE, REFINANCE, AND HOME EQUITY LINES-OF-CREDIT; AND, MEMBER BUSINESS LOANS. LOAN DECISIONS ARE MADE LOCALLY, WITH KNOWLEDGE OF LOCAL CONDITIONS AND THE CREDIT UNION MEMBERS THEMSELVES. COAST CENTRAL IS ACTIVE IN SUPPORTING MANY LOCAL EVENTS AND CHARITIES. DONATIONS ARE MADE FOR SCHOLARSHIPS TO LOCAL HIGH SCHOOL GRADUATES, AND COMMUNITY PROJECTS, EACH YEAR. 0 0 1 0 0 0 0 1 0 1 1 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 11703 0 1 221 1 1 1 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 CA X JAMES SESSA 7074431138 2650 HARRISON AVENUE EUREKA CA 95501 RONALD RUDEBOCK 2.00 X X 775 0 0 PATRICIA BROWN 2.00 X X 0 0 0 ROBERT GEARHEART 2.00 X X 0 0 0 JOYCE JURY 2.00 X X 0 0 0 DIANE LEIKER 1.00 X 0 0 0 JOHN GLADDING 1.00 X 0 0 0 DENISE JONES 1.00 X 1091 0 0 BRENDAN MCKENNY 1.00 X 0 0 0 KELLY WALSH 1.00 X 0 0 0 DEAN CHRISTENSEN 40.00 X 5341681 0 60962 JAMES SESSA 40.00 X 319402 0 52438 DEAN CHARLTON 40.00 X 205273 0 40725 GLENN POWELL 40.00 X 213627 0 42642 LINDA COHEN 40.00 X 144903 0 25624 DENNIS HUNTER 40.00 X 175439 0 37450 ANN JADRO-BETTIGA 40.00 X 138842 0 23818 6541033 0 283659 9 0 1 0 COX RASMUSSEN & CO 2830 F ST EUREKA CA 95501 MARKETING SERVICES 493395 INFO IMAGE 141 JEFFERSON DR MENLO PARK CA 94025 STATEMENT PROCESSING 413375 HARLAND FINANCIAL PO BOX 535120 ATLANTA GA 30353 DATA PROCESSING 357107 VELOCITY 1710 DAWSON ST WILMINGTON NC 28403 DEBIT CARD REWARDS 295527 CDW PO BOX 75723 CHICAGO IL 60675 COMPUTER PRODUCTS/SERVICES 253689 8 INTEREST ON LOANS 522100 20989435 20989435 DEPOSIT & LOAN SERVICE INCOME 522100 5828630 5828630 ATM & MISC SERVICE INCOME 522100 1904652 1852001 52651 28722717 6763572 6763572 13037 0 13037 13037 13037 66272 0 66272 66272 66272 MISC OTHER INCOME 522100 19117 19117 19117 35584715 28689183 52651 6842881 65237 25000 6457759 5776349 2649123 1769323 1176757 684243 9070 72000 1174599 900250 1569754 1084509 1004819 217724 3045399 519674 100800 ALL OTHER EXPENSES 640104 PROVISION FOR LOAN LOSS 418454 OTHER PROFESSIONAL FEES 111174 DUES & SUBSCRIPTIONS 98509 21884 29592514 47461036 73657457 1239134 1199133 409331398 422461838 703274 682177 16832690 7877855 9380923 8954835 452747150 455559748 8738498 9259581 929601413 971774769 6182696 3291742 238825 342195 78491099 70157469 741378629 787747875 826291249 861539281 X 0 0 0 0 103310164 110235488 103310164 110235488 929601413 971774769 5992201 933123 0 X 0 1 X 1 0 5000 0 5000 5000 1 CALIFORNIA CREDIT UNION LEAGUE PO BOX 51476 ONTARIO CA 91761 942329967 5000 ORGANIZATIONS DIRECT AND INDIRECT POLITICAL CAMPAIGN ACTIVITIES: PART I-A, LINE 1: COAST CENTRAL CREDIT UNION CONTRIBUTES TO THE CALIFORNIA CREDIT UNION LEAGUE PAC, WHICH MAKES ISSUES AFFECTING CREDIT UNIONS KNOWN TO STAFF AND MEMBERS. 0 1 X 973859 973859 8102449 2327276 5775173 1087606 547624 539982 1991711 1550329 441382 4677065 3452626 1224439 8954835 SECURITIES AVAILABLE FOR SALE 422289575 F FHLB STOCK 6342600 F FHLB DAILY 178687 F CORPORATE INVESTMENTS 192886 F SIMPLE CD DEPOSITS 26556000 C 455559748 ACCRUED INTEREST PAYABLE 352673 WORK IN PROCESS 1258296 SHARES 786136906 787747875 PART IV, LINE 2B: THE CREDIT UNION ACTS AS CUSTODIAN ON BEHALF OF ITS MEMBER'S ESCROWED FUNDS; WHICH ARE UTILIZED TO PAY TAXES AND INSURANCE ON BEHALF OF ITS MEMBERS. 1 TRINITY COUNTY LIFE SUPPORT 610 WASHINGTON ST WEAVERVILLE CA 96093 680304811 501(C)(3) 21550 EMERGENCY MEDICAL EQUIPMENT ARCATA HOUSE 1005 11TH ST ARCATA CA 95521 943163269 501(C)(3) 6316 HOMELESS HOUSING GREATER RURAL RESCUE SOCIETY PO BOX 1159 12701 HWY 96 HOOPA CA 95546 383791237 501(C)(3) 8055 ANIMAL RESCUE FACILITY FRIENDS OF THE DUNES PO BOX 186 ARCATA CA 95518 680373871 501(C)(3) 4845 WILDLIFE EXHIBIT ARCATA POLICE DEPT 736 F ST ARCATA CA 95521 942186507 24471 AUTOMATED LICENSE PLATE READER 5 COLLEGE SCHOLARSHIPS 27 25000 PROCEDURE FOR MONITORING GRANTS IN THE U.S.: PART I, LINE 2: SCHEDULE I, PART I, LINE 2: THE MARKETING DEPT APPROVES PAYMENT OF GRANT EXPENSES TO ORGANIZATIONS AND THE ADMINISTRATION APPROVES SCHOLARSHIPS. FUNDS ARE SENT DIRECTLY TO THE FINANCIAL AID OFFICES OF THE COLLEGES THE STUDENTS WILL BE ATTENDING. IF THE STUDENTS DO NOT ACTUALLY ENROLL, THE FUNDS ARE RETURNED TO US. ORGANIZATIONS PROVIDE A PACKET OF BACKGROUND INFORMATION ABOUT THEIR SERVICE/ORGANIZATION WHEN APPLYING FOR A GRANT. THE ORGANIZATIONS ARE LOCAL SO THE CREDIT UNION IS AWARE OF HOW THE FUNDS ARE USED. X X X 1 1 X X X 0 1 0 DEAN CHRISTENSEN 467614 0 405625 0 4468442 0 37500 0 23462 0 5402643 0 3606766 0 JAMES SESSA 233323 0 67520 0 18559 0 37500 0 14938 0 371840 0 0 0 DEAN CHARLTON 168523 0 36750 0 0 0 30791 0 9934 0 245998 0 0 0 GLENN POWELL 174437 0 39190 0 0 0 32044 0 10598 0 256269 0 0 0 LINDA COHEN 142383 0 2520 0 0 0 16264 0 9360 0 170527 0 0 0 DENNIS HUNTER 144179 0 31260 0 0 0 26316 0 11134 0 212889 0 0 0 ANN JADRO-BETTIGA 122762 0 16080 0 0 0 13884 0 9934 0 162660 0 0 0 PART I, LINE 1A TRAVEL: BOARD MEMBERS CAN TAKE A GUEST ON UP TO TWO CONFERENCES PER YEAR. THE GUEST EXPENSES PAID BY THE CREDIT UNION SHOULD BE REPORTED AS TAXABLE INCOME BY THE BOARD MEMBER. MEMBERSHIP DUES: THE CREDIT UNION PAYS FOR MANAGEMENT EMPLOYEES' DUES TO SERVICE CLUBS SUCH AS ROTARY, KIWANIS, ETC., FOR EDUCATIONAL, NETWORKING, AND COMMUNITY SERVICE PURPOSES. PART I, LINE 4B DEAN CHRISTENSEN PARTICIPATED IN A NON-QUALIFIED 457F RETIREMENT PLAN. DURING 2012, THE PLAN ENDED AND A FINAL PAYMENT WAS MADE OF $4,006,785. THE VALUE OF THE SERP PAYOUT AT 12/31/2011 AS REPORTED IN SCHEDULE J, PART II, COLUMN F WAS $3,606,766. SUPPLEMENTAL INFORMATION PART III COMPENSATION RELATED DISCLOSURES COAST CENTRAL CREDIT UNION RETAINED MCGLADREY, A NATIONAL ACCOUNTING AND CONSULTING FIRM, IN 2010 TO CONDUCT A COMPREHENSIVE STUDY OF THE REASONABLENESS OF THE TOTAL COMPENSATION PACKAGE PROVIDED TO THE PRESIDENT AND CEO, DEAN CHRISTENSEN. THE STUDY CONTEMPLATED ALL FORMS OF ECONOMIC BENEFIT WHICH WERE BENCHMARKED AGAINST APPROPRIATE COMPARABLE DATA. THE STUDY CONCLUDED THAT THE TOTAL ECONOMIC BENEFIT PROVIDED TO THE PRESIDENT/CEO IS REASONABLE. SINCE 2010 HIS ANNUAL COMPENSATION INCREASES HAVE BEEN IN LINE WITH CREDIT UNION INDUSTRY SALARY SURVEYS FOR CEOS OF COMPARABLE SIZE CREDIT UNIONS. EXPLANATION OF VARIOUS FORMS OF ECONOMIC BENEFIT PROVIDED TO KEY PERSONS OF COAST CENTRAL IS PROVIDED BELOW. SCHEDULE J EXPLANATION OF "BONUS AND INCENTIVE COMPENSATION" THE CREDIT UNION HAS TWO PRIMARY INCENTIVE COMPENSATION PLANS, AN ANNUAL INCENTIVE COMPENSATION PLAN THAT ALL EMPLOYEES ARE ELIGIBLE FOR AND A LONG-TERM DEFERRED INCENTIVE COMPENSATION PLAN FOR ELIGIBLE SENIOR MANAGEMENT. GOALS ARE ESTABLISHED BY THE CREDIT UNION FOR EACH OF THESE PLANS TO PROVIDE INCENTIVE AND REWARDS TO EMPLOYEES FOR ACHIEVING RESULTS THAT IMPROVE AND STRENGTHEN THE CREDIT UNION. THE GOALS ARE ESTABLISHED FOR EACH OF THESE PLANS AT THE BEGINNING OF THE INCENTIVE PLAN PERIOD. FOR THE ANNUAL PLAN,PAYOUTS ARE MADE TO PARTICIPANTS BASED UPON ACHIEVEMENT OF THE ANNUAL GOALS. FOR THE LONG-TERM DEFERRED PLAN, THE GOALS MUST BE ACHIEVED OVER A THREE YEAR PERIOD FOR THE PARTICIPANT TO EARN A PAYOUT UNDER THE PLAN. THE PRESIDENT/CEO EARNED A PAYOUT FROM TWO OTHER INCENTIVE PLANS PROVIDED BY THE CREDIT UNION. ONE, A LONG-TERM PLAN ESTABLISHED IN 1997 REQUIRED THE ACHIEVEMENT OF A GOAL TO BE MET OVER MANY YEARS. THE SECOND, A RETENTION INCENTIVE REQUIRED THE PRESIDENT/CEO TO PROVIDE CONTINUOUS SERVICE THROUGH A SPECIFIED DATE. ALTHOUGH THE AMOUNTS REPORTED ON THE W-2 AND SCHEDULE J IS PROPERLY REPORTED FOR THE YEAR, IT IS IMPORTANT TO NOTE THAT THESE MEMBERS OF THE SENIOR MANAGEMENT TEAM ARE ALL LONG-SERVING EXECUTIVES AND THE INCENTIVES EARNED PROVIDE REWARDS FOR THEIR MANY YEARS OF SERVICE, NOT ONLY THE CURRENT YEAR. YEARS OF SERVICE FOR THOSE EXCEEDING TEN YEARS ARE AS FOLLOWS: DEAN CHRISTENSEN, 23 YEARS; JAMES SESSA, 31 YEARS; DEAN CHARLTON, 25 YEARS; GLENN POWELL,32 YEARS; DENNIS HUNTER, 17 YEARS. INCLUDED IN THE PRESIDENT/CEO COMPENSATION, AS REPORTED ON THE W-2 AND SCHEDULE J, IS $405,625 WHICH REFLECTS COMPENSATION FOR SERVICES RENDERED BY THE PRESIDENT/CEO DURING THE PERIOD OF 1989 THROUGH 2012. INCLUDED IN THE SVP OF ADMINISTRATION/CFO'S COMPENSATION, AS REPORTED ON THE W-2 AND SCHEDULE J, IS $67,520 WHICH REFLECTS COMPENSATION FOR SERVICES RENDERED BY THE SVP OF ADMINISTRATION/CFO DURING THE PERIOD OF 1981 THROUGH 2012. INCLUDED IN THE VP OF MEMBER LOAN SERVICES, AS REPORTED ON THE W-2 AND SCHEDULE J, IS $36,750 WHICH REFLECTS COMPENSATION FOR SERVICES RENDERED BY THE VP OF MEMBER LOAN SERVICES DURING THE PERIOD OF 1987 THROUGH 2012. INCLUDED IN THE VP OF INFORMATION SYSTEMS COMPENSATION, AS REPORTED ON THE W-2 AND SCHEDULE J, IS $39,190 WHICH REFLECTS COMPENSATION FOR SERVICES RENDERED BY THE VP OF INFORMATION SYSTEMS DURING THE PERIOD OF 1980 THROUGH 2012. INCLUDED IN THE VP OF MARKETING COMPENSATION, AS REPORTED ON THE W-2 AND SCHEDULE J, IS $31,260, WHICH REFLECTS COMPENSATION FOR SERVICES RENDERED BY THE VP OF MARKETING DURING THE PERIOD OF 1995 THROUGH 2012. SCHEDULE J EXPLANATION OF "OTHER REPORTABLE COMPENSATION" THE CREDIT UNION HAS ESTABLISHED A 401K RETIREMENT PLAN FOR ALL ELIGIBLE EMPLOYEES. IT HAS ALSO PUT IN PLACE OTHER PLANS AND FUNDING PAYMENTS TO PROVIDE A REASONABLE TARGETED RETIREMENT BENEFIT FOR HIGHER PAID EMPLOYEES BECAUSE OF THE LIMITATIONS UNDER QUALIFIED PLANS SUCH AS OUR 401K PLAN, WHICH CREATES A REVERSE DISCRIMINATION EFFECT. THE CREDIT UNION PROVIDES IN LIEU PAYMENTS TO AN INDIVIDUAL ONCE THE QUALIFIED LIMIT IS REACHED EQUAL TO WHAT OTHERWISE WOULD HAVE BEEN CONTRIBUTED TO THE PLAN IF NOT FOR THE LIMITATION. THE CREDIT UNION HAS ALSO ESTABLISHED, TO HELP REACH THE TARGETED RETIREMENT BENEFIT, A SPLIT DOLLAR LIFE PLAN AND A SUPPLEMENTAL RETIREMENT PLAN FOR THE BENEFIT OF THE PRESIDENT/CEO. UNDER IRS REGULATION THE SPLIT DOLLAR LIFE PLAN TRIGGERS TAXABLE IMPUTED INTEREST THAT IS ADDED TO THE W-2 OF THE EXECUTIVE WITH NO CASH BEING PAID TO THE EXECUTIVE. THE CREDIT UNION PROVIDES AN ASSISTANCE PAYMENT TO THE EXECUTIVE TO OFFSET THE INCOME TAXES DUE BECAUSE OF THE IMPUTED INTEREST. THE SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN PROVIDES FOR ANNUAL CONTRIBUTIONS TO THE PLAN BY THE CREDIT UNION AND ANNUAL PAYMENTS TO THE EXECUTIVE WITH A FINAL PAYMENT FROM THE PLAN AT THE TARGETED RETIREMENT DATE, WHICH WAS REACHED IN 2012. INCLUDED IN THE PRESIDENT/CEO'S COMPENSATION AS REPORTED ON THE W-2 AND SCHEDULE J, IS $4,468,442 OF "OTHER COMPENSATION" WHICH INCLUDES $4,249,334 OF BENEFIT ATTRIBUTABLE TO THE RETIREMENT PLANS DESCRIBED ABOVE; $4,006,785 OF THAT WAS ATTRIBUTABLE TO THE SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN WHICH ENDED IN 2012 AND REQUIRED A FINAL PAYOUT OF THE ACCUMULATED BENEFIT; $195,494 OF "OTHER COMPENSATION" WAS ATTRIBUTABLE TO THE PAYOUT OF ACCUMULATED UNUSED LEAVE TIME. THOUGH AMOUNTS ATTRIBUTABLE TO THESE BENEFITS IS PROPERLY REFLECTED IN THE PRESIDENT'S W-2 FOR 2012, ONLY A SMALL PORTION OF THIS AMOUNT REFLECTS COMPENSATION FOR SERVICES RENDERED IN 2012, WHILE THE MAJORITY OF THIS AMOUNT REFLECTS COMPENSATION FOR SERVICES RENDERED BY THE PRESIDENT DURING THE PERIOD 1989 THROUGH 2012. IN 2010 COAST CENTRAL CREDIT UNION ATTACHED TO ITS 990 FILING A "SPLIT DOLLAR NONRECOURSE LOAN REPRESENTATION". THE 2012 FORM 990 DOES NOT ALLOW PDF ATTACHMENTS TO BE INCLUDED WITH THE ELECTRONICALLY FILED FORM 990, WITH THE EXCEPTION OF SPECIFIC ATTACHMENTS REQUIRED BY THE IRS. COAST CENTRAL CREDIT UNION HAS AN E-FILE REQUIREMENT AND CANNOT PAPER FILE UNLESS REQUIRED TO DO SO BY THE IRS. IF A PAPER COPY OF THE RETURN IS FILED WHEN IT IS NOT REQUIRED THE IRS MAY CONSIDER THE RETURN AS NOT TIMELY FILED; THEREFORE THE "SPLIT DOLLAR NONRECOURSE LOAN REPRESENTATION" IS AVAILABLE 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 ACCOUNTING DEPARTMENT PREPARES THE INFORMATION WHICH IS THEN REVIEWED BY SENIOR MANAGEMENT. A COPY OF FORM 990 WILL BE PRESENTED TO THE BOARD PRIOR TO FILING. FORM 990, PART VI, SECTION B, LINE 12C THE CREDIT UNION HAS A CONFLICT OF INTEREST POLICY FOR ITS STAFF, OFFICIALS, AND THE BOARD OF DIRECTORS. CONFLICT OF INTEREST BY EMPLOYEES WHEN HANDLING MEMBER ACCOUNTS IS MONITORED BY THE COMPUTER SYSTEM. BOARD MEMBERS CANNOT VOTE ON MATTERS WHERE THERE IS A CONFLICT OF INTEREST. FORM 990, PART VI, SECTION B, LINE 15 ANNUALLY DURING THE BUDGET PROCESS, THE BOARD OF DIRECTORS REVIEWS AND APPROVES THE COMPENSATION RANGES FOR EACH POSITION. THESE RANGES ARE DEVELOPED BY THE HUMAN RESOURCES DEPARTMENT USING COMPARABLE DATA SPECIFIC TO THE CREDIT UNION INDUSTRY. THE CEO SALARY IS BY CONTRACT AND REVIEWED AND APPROVED BY THE BOARD OF DIRECTORS. FORM 990, PART VI, SECTION C, LINE 19 FINANCIAL STATEMENTS ARE POSTED IN THE LOBBIES OF ALL OFFICES. ALL OTHER REQUESTS MUST BE PRESENTED IN WRITING TO THE BOARD OF DIRECTORS.