2011-11-09T09:55:32-06:00 2010-12-31 RSM MCGLADREY INC 201 N HARRISON STREET SUITE 300 DAVENPORT IA 528011999 990 2010-01-01 366068452 DHCU COMMUNITY CREDIT UNION DHCU 3097967544 P O BOX 1550 MOLINE IL 61265 TERRY BRAHM 3097967544 2011-11-04 1 JOHN J ROMANO 5638884000 2010 2016-03-07 17:11:31Z TERRY BRAHM P O BOX 1550 MOLINE IL 61265 24427295 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 2 128 9 72178 -15403 0 0 15881097 15494976 1244801 2550718 5863297 5836493 22989195 23882187 52613 37200 0 0 6375591 6651514 0 0 0 15723911 14797310 22152115 21486024 837080 2396163 425674744 436146349 388909905 397209434 36764839 38936915 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 CONSUMER AND MORTGAGE LOANS PROVIDED WERE 11,850. PROVIDED DEPOSITORY SERVICES TO APPROXIMATELY 37,039 MEMBERS. PROVIDED CREDIT CARD SERVICES TO APPROXIMATELY 9,170 MEMBERS. 0 0 0 0 0 0 0 0 0 1 1 0 1 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 0 1 11879 0 1 128 1 1 1 0 0 0 0 0 0 0 X 9 2 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 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 WILLIAM RON TRICE 1.00 X 0 0 0 VINCENT PAPISH JR 1.00 X 0 0 0 FLOYD MITTON 1.00 X 0 0 0 WILLIAM LAUPER 1.00 X 0 0 0 JULIE GERMERAAD 1.00 X 0 0 0 TERRY BRAHM 40.00 X 319015 0 39296 KEVIN PIEPER 40.00 X 169804 0 30283 JAY ENGLAND 40.00 X 172711 0 24033 DEE CAROTHERS 40.00 X 109343 0 10612 770873 0 104224 4 0 1 0 JACK HENRY & ASSOCIATES INC PO BOX 503328 ST LOUIS MO 63150 INFORMATION TECHNOLOGY SERVICES 169680 DCS JANITORIAL SERVICES INC PO BOX 741 COLONA IL 61241 JANITORIAL SERVICES 111874 GARDA CL GREAT LAKES INC DEPT 3100-190 LOS ANGELES CA 90084 FINANCIAL SERVICES 103179 SNYDER PARK NELSON & SCHWIEBERT 1600 4TH AVENUE STE 200 ROCK ISLAND IL 61201 LEGAL SERVICES 102296 4 LOANS INTEREST 522100 14369728 14369728 ATM FEES 522100 574491 502313 72178 LOAN FEES 522100 550757 550757 15494976 1775143 1775143 1320683 545108 775575 775575 775575 OVERDRAFT CHARGES 522100 2599700 2599700 DEBIT CARD INCOME 522200 1359162 1359162 VISA CHARGE INCOME 522200 746845 746845 1130786 1130786 5836493 23882187 21259291 72178 2550718 33200 4000 770873 4239205 234512 1053541 353383 132039 63245 2500 6750 768205 380436 342441 383639 9929 52809 7155 963562 132743 DIVIDENDS PAID TO MEMBE 5570563 PROVISION FOR LOAN LOSS 1208856 NCUSIF EXPENSE 981134 SERVICE CHARGES & VISA 840321 ATM EXPENSE 477419 2473564 21486024 33675071 30337157 917032 1354429 251485157 248409083 2359248 2453413 21405515 6071273 15888377 15334242 79051696 99109535 42298163 39148490 425674744 436146349 5566077 4360792 383343828 392848642 388909905 397209434 X 0 0 0 0 36764839 38936915 36764839 38936915 425674744 436146349 X 2396163 -224087 X X 0 0 0 2187730 2187730 13175810 2165278 11010532 5551591 3678434 1873157 490384 227561 262823 15334242 GOVERNMENT SECURITIES 99109535 F 99109535 OTHER ASSETS 4864 INTEREST RECEIVABLE 860254 MORTGAGE BACKS 20129428 LOANS HELD FOR SALE 1298800 OTHER REAL ESTATE OWNED 530889 VEHICLES IN PROCESS OF LIQUIDATION 53430 EFTS 6572344 INVESTMENT IN FHLB OF CHICAGO 1610200 DELAYED PAYMENT - MBS 11549 COMPENSATING BALANCE - ESI 340000 PSCU CLEARING PREFUND ACCOUNT - VISA 170600 NCUSIF CAPITALIZATION DEPOSIT 3759132 EXECUTIVE BENEFIT PLAN ASSETS 3807000 39148490 MEMBER DEPOSIT ACCOUNTS 392848642 392848642 DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X: DHCU IS EXEMPT FROM INCOME TAXES UNDER PROVISIONS OF THE INTERNAL REVENUE CODE AND STATES OF ILLINOIS AND IOWA TAX LAWS. IN JUNE 2006, GUIDANCE WAS ISSUED THAT CLARIFIES THE ACCOUNTING AND DISCLOSURE FOR UNCERTAIN TAX POSITIONS AND HOW THEY SHOULD BE REFLECTED IN THE FINANCIAL STATEMENTS. DHCU ADOPTED THIS GUIDANCE ON APRIL 1, 2009, AND THERE WAS NO IMPACT ON THE FINANCIAL STATEMENTS UPON ADOPTION OR AS OF MARCH 31, 2010. WITH FEW EXCEPTIONS, DHCU IS NO LONGER SUBJECT TO U.S. FEDERAL OR STATE AND LOCAL INCOME TAX EXAMINATIONS BY TAX AUTHORITIES FOR YEARS BEFORE 2006. OVER THE PAST FEW YEARS, THE IRS HAS ISSUED A NUMBER OF TECHNICAL ADVICE MEMORANDUM (TAMS) TO STATE-CHARTERED CREDIT UNIONS ADDRESSING THE ISSUE OF WHETHER INCOME FROM CERTAIN ACTIVITIES THE CREDIT UNIONS ENGAGED IN WERE SUBJECT TO UNRELATED BUSINESS INCOME TAX. EXAMPLES OF INCOME THAT THE IRS CONSIDERS SUBJECT TO UNRELATED BUSINESS INCOME TAX INCLUDE INSURANCE PRODUCTS, SECURITIES AND INVESTMENT PRODUCTS, AND FEES FROM NONMEMBER ATM USAGE. TAMS ARE ISSUED BY THE IRS NATIONAL OFFICE, WHEN REQUESTED, IF THERE IS A DISAGREEMENT BETWEEN A TAXPAYER AND A REVENUE AGENT OR APPEAL'S OFFICER AS TO HOW TO INTERPRET AND APPLY THE INTERNAL REVENUE LAWS TO A SPECIFIC SET OF FACTS. 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). DHCU FILED AN INCOME TAX RETURN FOR ITS TAX YEAR ENDING 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. HOWEVER, RECENT COURT CASES HAVE RULED IN FAVOR OF CREDIT UNIONS AND CONLUDED THAT THE SALE OF INSURANCE PRODUCTS, AND THE SALE OF FINANCIAL PRODUCTS AND SERVICES TO MEMBERS IS EXEMPT FROM UNRELATED BUSINESS INCOME TAX. FURTHERMORE, THE RECENT COURT CASES SUGGEST THE IRS WOULD ONLY GO BACK SIX YEARS NOTWITHSTANDING THAT TAX RETURNS WERE NOT FILED FOR YEARS PRIOR. BASED ON THESE RECENT COURT CASES, MANAGEMENT DOES NOT BELIEVE THAT INCOME TAXES FROM ACTIVITIES DEEMED UNRELATED WOULD HAVE A MATERIAL EFFECT ON DHCU'S FINANCIAL POSITION OR RESULTS OF OPERATIONS. VARIOUS LEGAL CLAIMS ALSO ARISE FROM TIME TO TIME IN THE NORMAL COURSE OF BUSINESS WHICH, IN THE OPINION OF MANAGEMEMT, WILL HAVE NO MATERIAL EFFECT ON DHCU'S FINANCIAL STATEMENTS. 1 CITY OF EAST MOLINE 915 16TH AVENUE EAST MOLINE IL 61244 366005860 CITY OF EAST MOLINE 10000 CITY FIREWORKS DISPLAY - JULY 2010 UNITED WAY OF THE QUAD CITIES 3247 EAST 35TH STREET COURT DAVENPORT IA 52807 362725960 501(C)(3) 7769 GENERAL SUPPORT FAMILY MUSEUM 2900 LEARNING CAMPUS DRIVE BETTENDORF IA 52722 611508009 501(C)(3) 10800 WINTERFEST AND DINOSAUR EXHIBIT SPONSORSHIP 3 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 X 0 1 0 TERRY BRAHM 241399 0 50200 0 27416 0 18877 0 20419 0 358311 0 0 0 KEVIN PIEPER 138099 0 25335 0 6370 0 10017 0 20266 0 200087 0 0 0 JAY ENGLAND 138849 0 25335 0 8527 0 10017 0 14016 0 196744 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 THE PRESIDENT OF THE ORGANIZATION. THE ORGANIZATION INCLUDES THE AMOUNT IN REPORTABLE COMPENSATION OF THE PARTICIPATING INDIVIDUAL. 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. PART I, LINE 4B PART I, LINE 4B: THE FOLLOWING INDIVIDUALS PARTICIPATED IN A 457(F) PLAN IN 2010 SPONSORED BY DHCU: TERRY BRAHM - $96,000, JAY ENGLAND - $8,364, 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 2010. STEVE KRATZBERG MORTGAGE X 205000 194401 0 1 1 TERESA VANDYKE MORTGAGE X 121000 109689 0 1 1 TERESA VANDYKE HOME IMPROVEMENT X 19000 11988 0 1 1 ROBERT GOMEZ 2004 CADILLAC X 31656 13709 0 1 1 WILLIAM LAUPER MORTGAGE X 63000 58390 0 1 1 JULIE GERMERAAD MORTGAGE X 153000 151779 0 1 1 JULIE GERMERAAD 2007 CHRYSLER X 16319 13579 0 1 1 VINCENT PAPISH 2010 FORD X 30239 9358 0 1 1 DEE CAROTHERS 2010 BUICK ENCLAVE X 38687 33512 0 1 1 KEVIN PIEPER MORTGAGE X 218558 201789 0 1 1 KEVIN PIEPER 2009 TOYOTA X 32054 24326 0 1 1 JAY ENGLAND 2002 LEXUS X 20263 6148 0 1 1 WILLIAM RON TRICE SHARE SECURED X 15181 13648 0 1 1 JULIE GERMERAAD BUSINESS MORTGAGE X 104000 102605 0 1 1 DEE CAROTHERS FIX EQUITY X 120000 34429 0 1 1 KEVIN PIEPER SIGNATURE X 6938 6426 0 1 1 KEVIN PIEPER SIGNATURE SPN X 36309 23893 0 1 1 KEVIN PIEPER HOME ADVANTAGE X 41800 41424 0 1 1 TERRY BRAHM 07 PORSCHE 911 X 65000 65000 0 1 1 CHERYL FRAME MORTGAGE X 240000 238336 0 1 1 1354429 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 RSM MCGLADREY, INC., 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 X, LINE 24F PASSPORT BILLING EXPENSE: TOTAL EXPENSES 462,755. EQUIPMENT RENTAL & MAINTENANCE EXPENSE: TOTAL EXPENSES 451,663. MISCELLANEOUS EXPENSE: TOTAL EXPENSES 244,442. BILL PAYER EXPENSE: TOTAL EXPENSES 239,001. DATA PROCESSING EXPENSE: TOTAL EXPENSES 230,044. REBATE EXPENSE: TOTAL EXPENSES 184,571. MORTGAGE EXPENSE: TOTAL EXPENSES 160,446. SUPERVISION EXPENSE: TOTAL EXPENSES 93,433. EDUCATION EXPENSE: TOTAL EXPENSES 86,789. FREE CHECK EXPENSE: TOTAL EXPENSES 82,946. LEAGUE DUES & OTHER EXPENSES: TOTAL EXPENSES 66,025. LOAN RECORDING FEE EXPENSE: TOTAL EXPENSES 58,094. CONSUMER CREDIT REPORT EXPENSE: TOTAL EXPENSES 49,656. REAL ESTATE TAX SERVICE: TOTAL EXPENSES 17,359. CHEX SYSTEM/SCREENING EXPENSE: TOTAL EXPENSES 14,307. SUBSCRIPTIONS & PUBLICATIONS EXPENSE: TOTAL EXPENSES 14,066. FINANCIAL PLANNING EXPENSE: TOTAL EXPENSES 7,865. ILLINOIS SALES TAX EXPENSE: TOTAL EXPENSES 4,537. BROKERS FEE EXPENSE: TOTAL EXPENSES 2,820. DHCU ERROR EXPENSE: TOTAL EXPENSES 2,698. SAVINGS WRITE OFF EXPENSE: TOTAL EXPENSES 1,156. CASH OVER(SHORT) EXPENSE: TOTAL EXPENSES -155. CHECK LOSS EXPENSE: TOTAL EXPENSES -954. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 5: NET UNREALIZED LOSSES ON INVESTMENTS: -224,087. 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, 2011 WHILE THE ORGANIZATION'S TAX YEAR-END IS DECEMBER 31, 2010.