2013-11-12T16:15:01-06:00 2012-12-31 420714325 MCGLADREY LLP 201 N HARRISON STREET SUITE 300 DAVENPORT IA 528011999 990 2012-01-01 366068452 DHCU COMMUNITY CREDIT UNION DHCU 3097967544 P O BOX 1550 MOLINE IL 61265 TERRY BRAHM 3097967544 2013-11-05 1 JOHN J ROMANO P00227323 5638884000 2012 2016-03-07 17:11:31Z TERRY BRAHM P O BOX 1550 MOLINE IL 61265 27479733 0 3149 X WWW.DHCU.ORG X 1935 IL WORKING TOGETHER TO IMPROVE THE ECONOMIC WELL-BEING AND QUALITY OF LIFE FOR ALL MEMBERS THROUGH EXCELLENT SERVICE. 9 1 152 9 92497 -39770 0 0 15084653 16279122 2351676 1997768 6116006 7090955 23552335 25367845 52182 41541 0 0 7039089 8189554 0 0 0 13897893 13311751 20989164 21542846 2563171 3824999 437165945 452822858 395941334 407807880 41224611 45014978 WORKING TOGETHER TO IMPROVE THE ECONOMIC WELL-BEING AND QUALITY OF LIFE FOR ALL MEMBERS THROUGH EXCELLENT SERVICE. 0 0 PROVIDE CONSIDERABLE LOANS TO MEMBERS. TOTAL NUMBER OF CONSUMER AND MORTGAGE LOANS OUTSTANDING WAS 17,392. PROVIDED DEPOSITORY SERVICES TO APPROXIMATELY 40,352 MEMBERS. PROVIDED CREDIT CARD SERVICES TO APPROXIMATELY 10,414 MEMBERS. 0 0 0 0 0 0 0 0 0 1 0 0 0 1 1 0 0 0 0 0 0 0 0 0 0 0 1 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 1 14745 0 1 152 1 1 1 0 0 0 0 0 X 9 1 0 0 0 0 1 1 0 1 1 0 0 1 1 1 1 1 1 1 0 0 X TERRY BRAHM CEO 3097967544 1900 52ND AVENUE MOLINE IL 612661550 ROBERT GOMEZ 1.00 X 0 0 0 STEVE KRATZBERG 1.00 X X 0 0 0 TERESA VANDYKE 1.00 X X 0 0 0 ROBERT JECKS 1.00 X 0 0 0 VINCENT PAPISH JR 1.00 X 0 0 0 WILLIAM LAUPER 1.00 X 0 0 0 JULIE GERMERAAD JAMES 1.00 X X 0 0 0 STEVE DUCEY 1.00 X 0 0 0 WILLIAM RON TRICE 1.00 X 0 0 0 NATHAN SONDGEROTH 1.00 X 0 0 0 BRENT PETERSEN 1.00 X 0 0 0 TERRY BRAHM 40.00 X 352489 0 162721 KEVIN PIEPER 40.00 X 180457 0 27233 JAY ENGLAND 40.00 X 180107 0 35518 MATTHEW MCCOMBS 40.00 X 300845 0 26654 DENISE CAROTHERS 40.00 X 114617 0 11007 JUDY TEMPLE 40.00 X 101910 0 15904 1230425 0 279037 6 0 1 0 CENTENNIAL CONTRACTORS 1505 46TH AVENUE MOLINE IL 61265 CONSTRUCTION 1826498 REFINERY DESIGN COMPANY 2001 ALTA VISTA STREET DUBUQUE IA 52001 MARKETING & DESIGN 524028 WEST MAINTENANCE 4235 KENNEDY DRIVE STE 2 EAST MOLINE IL 61244 BUILDING MAINTENANCE 366798 DIEBOLD INC PO BOX 643543 PITTSBURGH PA 15264 ATM & DRIVE UP LANE SERVICES 269784 DATAMAIL 747 EAST WHITCOMB AVENUE MADISON HEIGHTS MI 48071 STATEMENT PROCESSING 217812 10 LOANS INTEREST 522100 14910833 14910833 LOAN FEES 522100 726159 726159 ATM FEES 522100 642130 549633 92497 16279122 341916 341916 3767740 2111888 1655852 1655852 1655852 OVERDRAFT CHARGES 522100 2380674 2380674 DEBIT CARD INCOME 522200 1758965 1758965 VISA CHARGE INCOME 522200 793141 793141 2158175 2158175 7090955 25367845 23277580 92497 1997768 X 41541 1266024 5018260 269529 1191895 443846 149064 293315 1487737 562037 571617 804023 33727 97571 32 1099269 161100 DIVIDENDS PAID TO MEMBE 2366842 SERVICE CHARGES & VISA 1285353 PROVISION FOR LOAN LOSS 1237250 ATM EXPENSE 839906 2322908 21542846 92473554 62513057 1925468 1765262 301548631 344044364 3054098 2329207 26538734 8057871 14795782 18480863 9812574 7663173 13555838 16026932 437165945 452822858 6190753 6301601 389750581 401506279 395941334 407807880 X 0 0 0 0 41224611 45014978 41224611 45014978 437165945 452822858 3824999 -34632 0 X X 0 0 0 3120959 3120959 15982681 3104320 12878361 6776958 4638229 2138729 658136 315322 342814 18480863 MEMBER DEPOSIT ACCOUNTS 406350797 EFTS -4844518 401506279 X DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X, LINE 2: THE CREDIT UNION IS EXEMPT FROM INCOME TAXES UNDER PROVISIONS OF THE INTERNAL REVENUE CODE AND STATES OF ILLINOIS AND IOWA TAX LAWS. MANAGEMENT HAS EVALUATED THE CREDIT UNION'S TAX POSITIONS AND CONCLUDED THAT THEY HAVE TAKEN NO UNCERTAIN TAX POSITIONS THAT WOULD REQUIRE ADJUSTMENTS TO THE FINANCIAL STATEMENTS. GENERALLY, THE CREDIT UNION IS NO LONGER SUBJECT TO U.S. FEDERAL OR STATE AND LOCAL INCOME TAX EXAMINATIONS BY TAX AUTHORITIES FOR YEARS BEFORE 2009. THE CREDIT UNION IS A STATE-CHARTERED CREDIT UNION AS 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. ALTHOUGH THESE TAMS HAVE NO PRECEDENTIAL VALUE, THEY SET FORTH THE IRS' POSITION THAT CERTAIN SOURCES OF INCOME ARE NOT RELATED TO THE EXEMPT PURPOSE OF A STATE-CHARTERED CREDIT UNION AND ARE SUBJECT TO UNRELATED BUSINESS INCOME TAX (UBIT). HOWEVER, COURT CASES HAVE RULED IN FAVOR OF CREDIT UNIONS AND CONCLUDED THAT THE SALE OF INSURANCE PRODUCTS AND THE SALE OF FINANCIAL PRODUCTS AND SERVICES TO MEMBERS ARE EXEMPT FROM UNRELATED BUSINESS INCOME TAX. IN LIGHT OF THE TAMS AND COURT CASES, 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 OPERATION. THE CREDIT UNION FILED AN INCOME TAX RETURN FOR ITS UNRELATED BUSINESS INCOME BEGINNING WITH TAX YEAR ENDED DECEMBER 31, 2009. HOWEVER, THE TAXING AUTHORITIES HAVE THE ABILITY TO ASSESS TAXES, PENALTIES AND INTEREST FOR ANY YEARS FOR WHICH NO TAX RETURN WAS FILED. VARIOUS LEGAL CLAIMS ALSO ARISE FROM TIME TO TIME IN THE NORMAL COURSE OF BUSINESS WHICH, IN THE OPINION OF MANAGEMENT, WILL HAVE NO MATERIAL EFFECT ON THE CREDIT UNION'S FINANCIAL STATEMENTS. 1 REVITALIZE & DEVELOP EAST MOLINE INC 1523 8TH STREET EAST MOLINE IL 61244 363815927 501(C)(3) 5000 GENERAL SUPPORT UNITED WAY OF THE QUAD CITIES 3247 EAST 35TH STREET COURT DAVENPORT IA 52807 362725960 501(C)(3) 11533 GENERAL SUPPORT 2 0 PROCEDURE FOR MONITORING GRANTS IN THE U.S.: PART I, LINE 2: SCHEDULE I, PART I, LINE 2: THE ORGANIZATION ISSUES ALL FUNDS DIRECTLY TO THE RECIPIENT ORGANIZATION FOR USE AT THEIR DISCRETION OR TO THE APPLICABLE EDUCATIONAL INSTITUTION FOR APPLICATION TO THE STUDENT'S ACCOUNT. X X 1 1 X X X 0 1 0 TERRY BRAHM 279895 0 53714 0 18880 0 146162 0 16559 0 515210 0 0 0 KEVIN PIEPER 150149 0 26348 0 3960 0 10674 0 16559 0 207690 0 0 0 JAY ENGLAND 150039 0 26348 0 3720 0 18959 0 16559 0 215625 0 0 0 MATTHEW MCCOMBS 270513 0 22500 0 7832 0 10095 0 16559 0 327499 0 0 0 PART I, LINE 1A DHCU PROVIDES THE FOLLOWING TO INDIVIDUALS REPORTED IN PART VII, SECTION A, LINE 1A: TRAVEL FOR COMPANIONS: THIS BENEFIT IS OFFERED TO TOP MANAGEMENT OFFICIALS OF THE ORGANIZATION, AND THE DOLLAR AMOUNT OF THE BENEFIT IS NOT INCLUDED IN REPORTABLE COMPENSATION FOR THE PARTICIPATING INDIVIDUALS. THREE INDIVIDUALS RECEIVED THIS BENEFIT IN 2012. HEALTH CLUB DUES: THIS BENEFIT IS OFFERED TO THE TOP MANAGEMENT OFFICIALS OF THE ORGANIZATION. THE DUES ARE INCLUDED IN THE REPORTABLE COMPENSATION FOR THE PARTICIPATING INDIVIDUALS. FOUR INDIVIDUALS RECEIVED THIS BENEFIT IN 2012. PART I, LINE 4B PART I, LINE 4B: THE FOLLOWING INDIVIDUALS PARTICIPATED IN A 457(F) PLAN IN 2012 SPONSORED BY DHCU: TERRY BRAHM - $132,458, JAY ENGLAND - $8,285, AND DENISE CAROTHERS - $4,068. THE DOLLAR AMOUNT REPRESENTS THE CURRENT YEAR CONTRIBUTION MADE BY DHCU ON BEHALF OF THE INDIVIDUALS TO THE PLAN IN 2012. STEVE KRATZBERG MORTGAGE X 205000 185081 0 1 1 TERESA VANDYKE MORTGAGE X 120500 106752 0 1 1 WILLIAM RON TRICE VEHICLE X 9000 3666 0 1 1 WILLIAM RON TRICE VEHICLE X 18957 16775 0 1 1 ROBERT GOMEZ HOME ADVANTAGE X 24000 16373 0 1 1 JULIE GERMERAAD JAMES MORTGAGE X 153000 145665 0 1 1 JULIE GERMERAAD JAMES MORTGAGE - BUSINESS X 104000 98918 0 1 1 DENISE CAROTHERS HOME EQUITY X 120000 68743 0 1 1 DENISE CAROTHERS VEHICLE X 38687 21449 0 1 1 KEVIN PIEPER MORTGAGE X 224500 179834 0 1 1 KEVIN PIEPER HOME EQUITY X 41800 37593 0 1 1 KEVIN PIEPER HOME EQUITY X 75000 69372 0 1 1 TERRY BRAHM VEHICLE X 65000 40367 0 1 1 TERRY BRAHM HOME EQUITY X 35127 33925 0 1 1 MATTHEW MCCOMBS VEHICLE X 40000 37927 0 1 1 MATTHEW MCCOMBS MORTGAGE X 429300 418686 0 1 1 JAY ENGLAND VEHICLE X 38375 30160 0 1 1 JAY ENGLAND VEHICLE X 15136 13195 0 1 1 STEVE DUCEY VEHICLE X 22303 19991 0 1 1 NATHAN SONDGEROTH VEHICLE X 21600 17792 0 1 1 BRENT PETERSON VEHICLE X 26866 19326 0 1 1 BRENT PETERSON MORTGAGE X 195000 183672 0 1 1 1765262 FORM 990, PART VI, SECTION A, LINE 6 DHCU HAS MEMBERS THAT HAVE THE RIGHT TO ELECT THE MEMBERS OF THE GOVERNING BODY. FORM 990, PART VI, SECTION A, LINE 7A DHCU HAS MEMBERS THAT HAVE THE RIGHT TO ELECT THE MEMBERS OF THE GOVERNING BODY. FORM 990, PART VI, SECTION B, LINE 11 MCGLADREY LLP, THE ACCOUNTING FIRM PREPARING THE 990 TAX RETURN FOR DHCU, WILL PRESENT THE FINAL FORM 990 TO THE BOARD OF DIRECTORS AND PROVIDE AN OVERVIEW OF THE INFORMATION REPORTED PRIOR TO THE FILING OF THE 990. FORM 990, PART VI, SECTION B, LINE 12C EXECUTIVES, MANAGERS, AND EMPLOYEES MUST AVOID ANY CONFLICTS OF INTEREST BETWEEN THEMSELVES AND DHCU. SPECIFICALLY, NO EXECUTIVE, MANAGER, OR EMPLOYEE SHALL MAKE ANY INVESTMENT, ACCEPT ANY POSITION OR BENEFITS, PARTICIPATE IN ANY TRANSACTION OR BUSINESS ARRANGEMENT OR OTHERWISE ACT IN A MANNER THAT CREATES OR APPEARS TO CREATE A CONFLICT OF INTEREST WITH DHCU UNLESS SUCH PERSON MAKES FULL DISCLOSURE OF ALL FACTS AND CIRCUMSTANCES TO, AND OBTAINS THE PRIOR WRITTEN APPROVAL OF THE VICE PRESIDENT OF HUMAN RESOURCES. ADDITIONALLY, DHCU REQUIRES ALL INTERESTED PERSONS DICLOSE ANNUALLY ANY RELATIONSHIP THAT COULD GIVE RISE TO A CONFLICT. FORM 990, PART VI, SECTION B, LINE 15A IN JANUARY THE EXECUTIVE COMMITTEE COMPLETES THE PRESIDENT/CEO'S ANNUAL REVIEW BASED ON TWO SECTIONS: 1. OBJECTIVE FACTORS BASED ON DHCU'S FINANCIAL PERFORMANCE, AND 2. SUBJECTIVE FACTORS BASED ON HOW THE EXECUTIVE COMMITTEE FEELS THE PRESIDENT/CEO HAS PERFORMED THE DUTIES AND RESPONSIBILITIES OF HIS POSITION. THIS PROCESS RESULTS IN A SUMMARY SCORE THAT IS APPLIED TO A SALARY RANGE TABLE THAT DETERMINES THE YEAR END BONUS PERCENTAGE AND ANNUAL BASE PAY INCREASE OF THE PRESIDENT/CEO. THE ENTIRE PROGRAM WAS DEVELOPED BY BAUSCHKE AND ASSOCIATES. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION'S GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS ARE NOT MADE AVAILABLE TO THE PUBLIC. ALL OTHER FUNCTIONAL EXPENSES FORM 990, PART IX, LINE 24E NCUSIF EXPENSE: TOTAL EXPENSES 361,321. MISCELLANEOUS EXPENSE: TOTAL EXPENSES 336,380. BILL PAYER EXPENSE: TOTAL EXPENSES 240,803. DATA PROCESSING EXPENSE: TOTAL EXPENSES 217,812. PICK YOUR PERK: TOTAL EXPENSES 194,331. MORTGAGE EXPENSE: TOTAL EXPENSES 193,207. REAL ESTATE TAX SERVICE: TOTAL EXPENSES 87,216. FORECLOSED REAL ESTATE EXPENSE: TOTAL EXPENSES 85,758. SUPERVISION EXPENSE: TOTAL EXPENSES 81,816. CONSUMER CREDIT REPORT EXPENSE: TOTAL EXPENSES 78,469. LOAN RECORDING FEE EXPENSE: TOTAL EXPENSES 77,029. LEAGUE DUES & OTHER EXPENSES: TOTAL EXPENSES 76,069. EDUCATION EXPENSE: TOTAL EXPENSES 57,798. EQUIPMENT RENTAL & MAINTENANCE EXPENSE: TOTAL EXPENSES 54,276. CHECK LOSS EXPENSE: TOTAL EXPENSES 35,409. ILLINOIS SALES TAX EXPENSE: TOTAL EXPENSES 33,583. FINANCIAL PLANNING EXPENSE: TOTAL EXPENSES 26,067. CHEX SYSTEM/SCREENING EXPENSE: TOTAL EXPENSES 25,849. FREE CHECK EXPENSE: TOTAL EXPENSES 25,397. SUBSCRIPTIONS & PUBLICATIONS EXPENSE: TOTAL EXPENSES 17,994. SAVINGS WRITE OFF EXPENSE: TOTAL EXPENSES 6,164. DHCU ERROR EXPENSE: TOTAL EXPENSES 3,940. BROKERS FEE EXPENSE: TOTAL EXPENSES 2,820. VEHICLES IN LIQUIDATION EXPENSE: TOTAL EXPENSES 2,081. CASH OVER(SHORT) EXPENSE: TOTAL EXPENSES 829. DEBT PROTECTION: TOTAL EXPENSES 230. PASSPORT BILLING: TOTAL EXPENSES 203. I-PAY EXPENSES: TOTAL EXPENSES 57. FORM 990, PART IV, LINE 12A & PART XII, LINE 2B & 2D THE ORGANIZATION'S FINANCIAL STATEMENTS ARE AUDITED ON A SEPARATE BASIS BY AN INDEPENDENT ACCOUNTANT. HOWEVER, THE STATEMENTS ARE AUDITED ON A FISCAL YEAR-END OF MARCH 31, 2013 WHILE THE ORGANIZATION'S TAX YEAR-END IS DECEMBER 31, 2012.