2011-11-15T14:23:33-06:00 2010-12-31 TURNER WARREN HWANG & CONRAD ACCTCY 100 NORTH FIRST ST STE 202 BURBANK CA 91502 990 2010-01-01 951682200 ARROWHEAD CENTRAL CREDIT UNION ARRO 9093796572 PO BOX 735 SAN BERNARDINO CA 92402 JASON M HOWARD 9093796832 2011-11-14 1 VALENTINO CREUS CPA 8189549700 2010 2016-03-07 17:11:31Z JASON M HOWARD PO BOX 735 SAN BERNARDINO CA 92402 84533036 0 X WWW.ARROWHEADCU.ORG X CREDIT UNION 1949 CA A COOPERATIVE, ORGANIZED FOR THE PURPOSE OF PROMOTING THRIFT AND SAVINGS AMONG ITS MEMBERS. 1 1 540 0 993428 -1443497 0 0 36838301 83283232 59909122 -831747 1075790 720013 97823213 83171498 0 0 0 0 29898191 21245378 0 0 0 114997940 65508464 144896131 86753842 -47072918 -3582344 843172779 680446929 820548313 660909136 22624466 19537793 X A COOPERATIVE, ORGANIZED FOR THE PURPOSE OF PROMOTING THRIFT AND SAVINGS AMONG ITS MEMBERS, CREATING A SOURCE OF CREDIT FOR THEM AT RATES OF INTEREST SET BY THE BOARD OF DIRECTORS, AND PROVIDING AN OPPORTUNITY FOR THEM TO USE AND CONTROL THEIR OWN MONEY ON A DEMOCRATIC BASIS IN ORDER TO IMPROVE THEIR ECONOMIC AND SOCIAL CONDITIONS. AS A COOPERATIVE, ARROWHEAD CENTRAL CREDIT UNION CONDUCTS ITS BUSINESS FOR THE MUTUAL BENEFIT AND GENERAL WELFARE OF ITS MEMBERS WITH THE EARNINGS, SAVINGS, BENEFITS, OR SERVICES OF THE CREDIT UNION BEING DISTRIBUTED TO ITS MEMBERS AS PATRONS. 0 0 FINANCIAL SERVICES TO SOUTHERN CALIFORNIA - AT DECEMBER 31, 2010 WE HAD 132,932 MEMBERS, 33,573 LOANS, AND 188,597 SHARE ACCOUNTS. 0 0 0 0 0 0 0 0 0 1 0 1 0 1 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 1 1 0 0 1 20853 0 1 540 1 1 1 0 0 0 0 0 0 0 X 1 1 0 1 0 0 1 1 1 1 1 0 1 1 0 1 1 1 1 1 1 1 0 CA X JASON M HOWARD 9093796832 550 EAST HOSPITALITY LANE STE 200 SAN BERNARDINO CA 92408 LARRY SHARP 40.00 X 276548 0 12988 DANIEL MARCIANTE 40.00 X 143078 0 11248 JASON HOWARD 40.00 X 7653 0 0 VAUGHN BOOK 40.00 X 212955 0 6268 NANCY HANNAH 40.00 X 158678 0 0 RONALD SKAGGS 40.00 X 151061 0 9749 ELSA MONTES 40.00 X 134414 0 5076 AARON BITRAN 40.00 X 123446 0 4137 MAX ARBOLIDA 40.00 X 122740 0 4524 1330573 0 53990 16 0 1 0 SOLOMON GRINDLE SILVERMAN & WINTRINGER 12651 HIGH BLUFF DRIVE SUITE 300 SAN DIEGO CA 92130 LEGAL 375000 ONLINE RESOURCES PO BOX 630139 BALTIMORE MD 21263 MEMBER ONLINE SVCS 329000 DIEBOLD PO BOX 643543 PITTSBURGH PA 15264 ATM MAINTENANCE 264000 JACK HENRY & ASSOCIATES PO BOX 503328 ST LOUIS MO 63150 CORE SYSTEM 240000 4 INTEREST ON LOANS 522100 46461901 46461901 FEE INCOME 522100 27320984 26327556 993428 OTHER OPERATING INCOME 522100 9500347 9500347 83283232 529791 529791 720013 720013 720013 720013 1361538 -1361538 -1361538 -1361538 83171498 82178070 993428 0 1330573 16428683 689962 1256956 1539204 624640 91180 1260355 317627 9644931 1274581 4345109 126652 3277328 1990951 1956112 PROV FOR LOAN LOSSES 36163714 MISC OPERATING EXPENSES 2418329 LOAN SERVICING EXPENSE 1930784 OPERATING FEES 86171 86753842 119954486 117858700 463268 424805 1402202 990935 38944306 24739381 18956050 14204925 18402345 17752306 663559941 509724258 20434487 19491000 843172779 680446929 8464668 19741593 812083645 641167543 820548313 660909136 X 0 0 0 0 22624466 19537793 22624466 19537793 843172779 680446929 X -3582344 495671 X X 0 1 1 X 0 6398602 6398602 9863889 4134819 5729070 2481885 2353468 128417 16853147 15275246 1577901 3346783 2975848 370935 14204925 ALL OTHER INVESTMENT 5268324 F NET LOANS TO MEMBERS 500819334 F FEDERAL HOME LOAN BANK STOCK 3636600 F 509724258 BORROWED FUNDS 2207959 MEMBERS' SHARE & SAVINGS ACCOUNTS 638959584 641167543 DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X: FASB ASC 740-10-65, INCOME TAXES, PROVIDES GUIDANCE FOR HOW UNCERTAIN TAX POSITIONS SHOULD BE RECOGNIZED, MEASURED, DISCLOSED AND PRESENTED IN THE FINANCIAL STATEMENTS. THIS REQUIRES THE EVALUATION OF TAX POSITIONS TAKEN OR EXPECTED TO BE TAKEN IN THE COURSE OF PREPARING THE CREDIT UNION'S TAX RETURNS TO DETERMINE WHETHER THE TAX POSITIONS ARE "MORE-LIKELY-THAN-NOT" OF BEING SUSTAINED "WHEN CHALLENGED" OR "WHEN EXAMINED" BY THE APPLICABLE TAX AUTHORITY. TAX POSITIONS NOT DEEMED TO MEET THE MORE-LIKELY-THAN-NOT THRESHOLD WOULD BE RECORDED AS A TAX EXPENSE AND LIABILITY IN THE CURRENT YEAR. AT DECEMBER 31, 2010, MANAGEMENT HAS DETERMINED THAT THERE ARE NO MATERIAL UNCERTAIN TAX POSITIONS. THE CREDIT UNION IS NOT SUBJECT TO EXAMINATION BY U.S. FEDERAL AND STATE TAX AUTHORITIES FOR TAX YEARS BEFORE 2006. FOR THE YEAR ENDED DECEMBER 31, 2010, THE CREDIT UNION HAS NO UNCERTAIN TAX POSITIONS, AND ACCORDINGLY, HAS NOT RECORDED A LIABILITY FOR THE PAYMENT OF INTEREST OR PENALTIES. THE CREDIT UNION IS SUBJECT TO AND PAYS ALL STATE AND CITY TAXES ON GOODS AND SERVICES PURCHASED BY THE CREDIT UNION. X X 1 1 X X X 0 0 0 LARRY SHARP 271965 0 0 0 4583 0 0 0 12988 0 289536 0 0 0 DANIEL MARCIANTE 139802 0 0 0 3276 0 0 0 11248 0 154326 0 0 0 VAUGHN BOOK 209675 0 0 0 3280 0 0 0 6268 0 219223 0 0 0 NANCY HANNAH 158678 0 0 0 0 0 0 0 0 0 158678 0 0 0 RONALD SKAGGS 151061 0 0 0 0 0 0 0 9749 0 160810 0 0 0 NANCY HANNAH 1ST MORTGAGE X 410400 177795 0 1 1 NANCY HANNAH 2ND MORTGAGE X 50000 35012 0 1 1 ELSA MONTES 1ST MORTGAGE X 250000 211998 0 1 1 424805 FORM 990, PART VI, SECTION A, LINE 3 AND FORM 990, PART I, LINE 6: CONSERVATORSHIP: EFFECTIVE JUNE 25, 2010, IN ACCORDANCE WITH THE FEDERAL CREDIT UNION ACT, THE NCUA BOARD PLACED THE CREDIT UNION UNDER CONSERVATORSHIP AND APPOINTED ITSELF AS CONSERVATOR. UPON ITS APPOINTMENT, THE CONSERVATOR IMMEDIATELY SUCCEEDED TO ALL RIGHTS, TITLES, POWERS AND PRIVILEGES OF THE CREDIT UNION, AND OF ANY MEMBER, OFFICER, OR DIRECTOR WITH RESPECT TO THE CREDIT UNION AND ITS ASSETS AND BEGAN CONDUCTING ALL BUSINESS OF THE CREDIT UNION. THE NCUA BOARD APPOINTED A PRINCIPAL AGENT AND SEVERAL SUB-AGENTS. IN ADDITION, THE CONSERVATOR HAS APPOINTED A CHIEF EXECUTIVE OFFICER AND OTHER MANAGEMENT TO CONDUCT DAY-TO-DAY OPERATIONS. THE CONSERVATORSHIP HAS NO SPECIFIC TERMINATION DATE, AND THERE ARE NO ASSURANCES AS TO WHEN OR HOW IT WILL BE TERMINATED OR WHAT THE CREDIT UNION'S BUSINESS STRUCTURE WILL BE FOLLOWING THE CONSERVATORSHIP. MEMBERS HAVE RECEIVED ASSURANCE FROM THE PRINCIPAL AGENT THAT THE SAFETY OF SAVINGS AND CUSTOMARY ARRAY OF SERVICES WILL NOT BE AFFECTED. MAINTAINING CONTINUED NORMAL OPERATIONS OF ALL CORE SERVICES IS A PARAMOUNT OBJECTIVE. MANAGEMENT IS ACTIVELY OPERATING UNDER A STRATEGIC PLAN TO RESTORE THE NET WORTH OF THE CREDIT UNION. FORM 990, PART VI, SECTION A, LINE 6 ARROWHEAD CENTRAL CREDIT UNION IS A COOPERATIVE FINANCIAL INSTITUTION THAT IS OWNED AND CONTROLLED BY ITS MEMBERS, AND OPERATED FOR THE PURPOSE OF PROMOTING THRIFT AND SAVINGS TO ITS MEMBERS. ARROWHEAD CENTRAL CREDIT UNION DOES NOT HAVE STOCKHOLDERS. FORM 990, PART VI, SECTION A, LINE 7A THE GOVERNING BOARD OF ARROWHEAD CENTRAL CREDIT UNION OF ARROWHEAD CENTRAL CREDIT UNION IS COMPRISED OF VOLUNTEER MEMBERS WHO ARE DIRECTLY ELECTED BY ITS MEMBERS. EACH MEMBER OF THE GOVERNING BOARD SERVES FOR A PERIOD AS PRESCRIBED BY OUR BY-LAWS. AS OF JUNE 25, 2010, ARROWHEAD CENTRAL CREDIT UNION IS UNDER CONSERVATORSHIP BY THE NCUA. PURSUANT TO THE CONSERVATORSHIP, THE BOARD MEMBERS WERE REMOVED AND REPLACED BY A SINGLE AGENT ACTING ON BEHALF OF THE NCUA. FORM 990, PART VI, SECTION A, LINE 7B AT THE END OF EACH TERM OF THE BOARD MEMBERS, ELECTIONS ARE HELD AND BOARD MEMBERS ARE VOTED BY THE MEMBERS OF THE CREDIT UNION PURSUANT TO ITS BY-LAWS. MEMBER VOTES ARE ALSO REQUIRED TO RATIFY DECISIONS DEALING WITH REORGANIZATIONS AS IN THE CASE OF MERGER OR DISSOLUTION. AS OF JUNE 25, 2010, ARROWHEAD CENTRAL CREDIT UNION IS UNDER CONSERVATORSHIP BY THE NCUA. PURSUANT TO THE CONSERVATORSHIP, THE BOARD MEMBERS WERE REMOVED AND REPLACED BY A SINGLE AGENT ACTING ON BEHALF OF THE NCUA. FORM 990, PART VI, SECTION B, LINE 11 THE RETURN PREPARER E-MAILS A DRAFT OF THE FORM 990 TO THE ORGANIZATION'S CONTROLLER FOR HIS REVIEW. THE CONTROLLER AND ANY DESIGNATED INDIVIDUAL(S) REVIEW THE DRAFT AND PRESENT ANY QUESTIONS, COMMENTS, OR CORRECTIONS TO THE RETURN PREPARER. UPON SATISFACTORY COMPLETION OF THE FORM 990, THE ORGANIZATION'S AUTHORIZED INDIVIDUAL SIGNS THE APPROPRIATE SIGNATURE FORM(S) TO AUTHORIZE THE ELECTRONIC FILING OF THE RETURN. A COPY OF THE FORM 990, AS FILED, IS PROVIDED BY THE RETURN PREPARER TO THE ORGANIZATION'S CEO OR OTHER DESIGNATED INDIVIDIUAL(S). FORM 990, PART VI, SECTION B, LINE 12C FOR DIRECTORS, THE VOLUNTEER CODE OF PERSONAL AND BUSINESS CONDUCT (POLICY 1.16) (12 PAGES) REQUIRES ANNUAL, AT A MINIMUM, WRITTEN ACKNOWLEDGEMENT AND DISCLOSURE OF POTENTIAL CONFLICTS OF INTEREST. FOR OFFICERS AND KEY EMPLOYEES, THE EMPLOYEE HANDBOOK, GENERAL POLICIES, CODE OF PERSONAL AND BUSINESS CONDUCT (13 PAGES) REQUIRES DISCLOSURE OF OUTSIDE INTERESTS WHENEVER AN ACTIVITY MAY BE CONTRARY TO THE BEST INTEREST OF THE CREDIT UNION. ALL EMPLOYEES ARE REQUIRED TO SIGN A WRITTEN ACKNOWLEDGEMENT OF THE RECEIPT OF THE CODE OF PERSONAL AND BUSINESS CONDUCT AND OF ANY SUBSEQUENT CHANGES THERTO. VIOLATIONS MAY SUBJECT THE EMPLOYEE TO DISCIPLINARY MEASURES, UP TO AND INCLUDING TERMINATION. FORM 990, PART VI, SECTION B, LINE 15 THE COMPENSATION COMMITTEE IS APPOINTED BY THE BOARD OF DIRECTORS. THE COMMITTEE GATHERS SALARY DATA AND OTHER DATA FROM OUTSIDE SOURCES. AFTER ANALYSIS AND REVIEW, THE COMMITTEE MAKES A SALARY RECOMMENDATION TO THE BOARD OF DIRECTORS. THE BOARD VOTES ON THE RECOMMENDATION, ALL OF WHICH IS DOCUMENTED IN NORMAL MEETING MINUTES. THE PRESIDENT ASSESSES THE PERFORMANCE OF THE OFFICERS AS MEASURED AGAINST ORGANIZATION METRICS WHICH MAY INCLUDE NET WORTH, EXPENSE RATIO, CAMEL RATING, AND ROA. MERIT INCREASES ARE ADMINISTERED IN ACCORDANCE WITH COMPENSATION GUIDELINES APPROVED BY THE BOARD OF DIRECTORS. FORM 990, PART VI, SECTION C, LINE 19 THE NCUA 5300 CALL REPORT IS AVAILABLE TO THE PUBLIC ON THE NCUA WEBSITE. THE CREDIT UNION'S FINANCIALS ARE POSTED AT EACH BRANCH LOCATION. ANY MEMBER MAY REQUEST TO SEE BOARD MEETING MINUTES. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 5: CHANGE IN ACCUMULATED OTHER COMPREHENSIVE INCOME 495,671. TOTAL TO FORM 990, PART XI, LINE 5: 495,671. FORM 990, PART XII, LINE 2C: THE ORGANIZATION HAS NOT CHANGED EITHER ITS OVERSIGHT PROCESS OR SELECTION PROCESS DURING THE TAX YEAR. MEMBERS BUSINESS SERVICES LLC 202 EAST AIRPORT DRIVE SAN BERNARDINO CA 92408 421562695 SERVICE BUREAU CA ARROWHEAD CENTRAL CREDIT UNION UNRELATED 3011758 1049787 0 1 0.73000 OCTARR CU VENTURES LLC 550 E HOSPITALITY DRIVE STE 200 SAN BERNARDINO CA 92408 421645486 FINANCIAL SERVICES CA ARROWHEAD CENTRAL CREDIT UNION UNRELATED 827901 6670419 0 1 0.50000 ARROWHEAD FINANCIAL GROUP INC AND SUBSIDIARIES 550 E HOSPITALITY LANE SAN BERNARDINO CA 92408 330082959 INSURANCE CA ARROWHEAD CENTRAL CREDIT UNION C 861779 1259924 1.00000 1 0 0 0 0 0 0 0 0 0 0 1 0 1 0 1 0 0 ARROWHEAD FINANCIAL GROUP P 659754 ACTUAL AMOUNT PAID MEMBERS BUSINESS SERVICES L 1573181 ACTUAL AMOUNT PAID MEMBERS BUSINESS SERVICES P 331749 ACTUAL AMOUNT PAID MEMBERS BUSINESS SERVICES A 74810 ACTUAL AMOUNT PAID