2024-08-13T16:09:41-05:00 2023-09-30 420714325 RSM US LLP 4650 EAST 53RD STREET DAVENPORT IA 528073479 990 2022-10-01 042348884 LEOMINSTER CREDIT UNION LEOM 9785378021 20 ADAMS STREET LEOMINSTER MA 01453 JOSEPH NORMANT SVP/CFO 9785378021 2024-08-01 1 1 JENIFER L CHASE P01306883 5638884000 2024-08-01 2022 2024-08-08 14:25:15Z BARBARA MAHONEY 20 ADAMS STREET LEOMINSTER MA 01453 48127963 0 X WWW.LEOMINSTERCU.COM X 1954 MA FULFILL OUR MEMBERS' FINANCIAL NEEDS THROUGH OUTSTANDING SERVICE AND EFFECTIVE TECHNOLOGY. 8 8 185 9 57409 0 0 0 24867106 32484750 5147647 7937383 370164 256101 30384917 40678234 197942 168142 0 0 12622076 13356470 0 0 0 15410123 25083258 28230141 38607870 2154776 2070364 864317243 905439366 812407467 855598676 51909776 49840690 X LEOMINSTER CREDIT UNION (LCU) IS A COMMUNITY-BASED FINANCIAL SERVICES PROVIDER. WE EXIST TO FULFILL OUR MEMBERS' FINANCIAL NEEDS THROUGH OUTSTANDING SERVICE AND EFFECTIVE TECHNOLOGY. AS A RESPONSIBLE CORPORATE CITIZEN, WE ARE COMMITTED TO ENRICHING THE COMMUNITIES IN WHICH WE LIVE AND WORK. 0 0 TO SERVE OUR MEMBERS, OUR HIGHEST EXPENSE IS INTEREST PAID ON CERTIFICATES OF DEPOSIT. AT YEAR-END, THE CREDIT UNION HAD 38,086 MEMBERS, AND INTEREST PAID ON CERTIFICATES OF DEPOSIT TOTALED $4,789,159. OUR SECOND HIGHEST EXPENSE IS INTEREST PAID ON INDIVIDUAL RETIREMENT ACCOUNTS FOR OUR MEMBERS. AT YEAR-END, THE CREDIT UNION HAD 38,086 MEMBERS, AND INTEREST PAID ON MONEY MARKET ACCOUNTS TOTALED $647,696. OUR THIRD HIGHEST EXPENSE IS INTEREST PAID ON MONEY MARKET ACCOUNTS FOR OUR MEMBERS. AT YEAR-END, THE CREDIT UNION HAD 38,086 MEMBERS, AND INTEREST PAID ON MONEY MARKET ACCOUNTS TOTALED $414,308. 0 0 0 0 0 0 0 1 0 1 0 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 1 0 1 0 1 0 0 0 0 0 0 0 0 1 0 0 0 1 14161 0 1 185 1 1 1 0 0 0 0 0 0 0 X 8 8 0 0 0 0 1 1 0 1 0 0 0 1 1 1 1 1 1 1 0 0 X JOSEPH NORMANT 9785378021 20 ADAMS STREET LEOMINSTER MA 01453 ROBERT DELLECHIAIE DIRECTOR 1.00 X 0 0 0 NANCY GRAVES FORMER TREASURER 1.00 X X 0 0 0 GIULIO GRECO ASSISTANT TREASURER 1.00 X X 0 0 0 HENRY KULIK DIRECTOR 1.00 X 0 0 0 JOYCE LEGER DIRECTOR 1.00 X 0 0 0 JOSEPH QUINTAL CLERK 1.00 X X 0 0 0 JOHN W REEDY DIRECTOR 1.00 X 0 0 0 MICHAEL SAUVAGEAU VICE CHAIRMAN 2.00 X X 0 0 0 RICHARD SHEPPARD CHAIRMAN 1.00 X X 0 0 0 BARBARA MAHONEY PRESIDENT/CEO 40.00 X 414280 0 63941 JOSEPH NORMANT CFO 40.00 X 250551 0 21108 CRAIG MADONIA SVP LENDING 40.00 X 200224 0 46772 KATIE NAJJAR SVP RETAIL 40.00 X 188752 0 55310 MYCHELLE PHILLIPS VP OPERATIONS 40.00 X 191467 0 48828 ELLEN COUGHLIN SVP HR & DEVELOPMENT 40.00 X 138002 0 42072 KELLI ROONEY SVP COMMUNITY ENGAGEMENT & MARKETING 40.00 X 174954 0 14611 ANDREW LEBLANC VP INFORMATION TECHNOLOGY 40.00 X 138946 0 10199 DONALD O'CONNOR FORMER VP LENDING OPERATIONS 40.00 X 140485 0 31966 1837661 0 334807 17 0 1 0 FISERV PO BOX 22705 LINCOLN NE 68542 IT SERVICES 1092164 ALKAMI TECHNOLOGY 5601 GRANITE PARKWAY SUITE 120 PLANO TX 75024 IT SERVICES 477693 DAVIS ADVERTISING 1331 GRAFTON STREET WORCESTER MA 01604 ADVERTISING 404294 CORELATION INC 2305 HISTORIC DECATUR RD SAN DIEGO CA 92106 IT SERVICES 308810 ALOGENT 35 TECHNOLOGY PARKWAY SOUTH SUITE 2 PEACHTREE CORNERS GA 30092 IT SERVICES 300728 17 INTEREST ON LOANS 522100 26014978 26014978 SERVICE CHARGES AND FEE INCOME 522100 6469772 6412363 57409 32484750 7932301 7932301 92395 0 92395 92395 92395 7454811 7449729 5082 5082 5082 CREDIT UNION OWNED LIFE INSURANCE 900099 163706 163706 163706 40678234 32427341 57409 8193484 168142 1064917 9297301 723291 1431608 839353 177500 241935 1033143 380531 2096642 1206985 17788 49645 7082501 1310413 142155 BENEFITS PAID TO MEMBER 6389281 MAINTENANCE AND SERVICE 2292623 PROVISION FOR LOAN LOSS 1182150 SECURITY 126116 1353850 38607870 6822136 7514767 21165000 24662000 7650380 7664519 591872080 646931249 1429239 1040307 25948742 13444234 13073823 12504508 189767322 177985839 6276500 7766100 26260763 19370077 864317243 905439366 6678935 5965785 2852409 2802799 140975000 173500000 661901123 673330092 812407467 855598676 X 0 0 0 0 51909776 49840690 51909776 49840690 864317243 905439366 2070364 -4139450 0 X X 0 1 X 1 0 0 1 X 2129813 2129813 15498708 7979026 7519682 527239 396460 130779 7792982 5068748 2724234 12504508 MEMBERS' SHARES 673330092 673330092 X PART IV, LINE 2B: THE CREDIT UNION HOLDS FUNDS IN ESCROW TO PAY HOME OWNER'S INSURANCE AND REAL ESTATE TAXES ON BEHALF OF ITS MORTGAGE LOAN ACCOUNTS. PART X, LINE 2: LEOMINSTER CREDIT UNION (THE CREDIT UNION) IS A STATE-CHARTERED CREDIT UNION 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 THE 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. THE INTERNAL REVENUE SERVICE (IRS) AND CERTAIN STATE TAXING AUTHORITIES ARE CURRENTLY REVISITING WHAT, IF ANY, PRODUCTS AND SERVICES PROVIDED BY THE CREDIT UNION ARE SUBJECT TO UBIT. THE IRS HAS INDICATED THAT THEY ARE STUDYING THE ISSUE AND MAY ISSUE ADDITIONAL GUIDANCE. AS A RESULT, AT THIS TIME THERE IS UNCERTAINTY REGARDING WHETHER THE CREDIT UNION SHOULD PAY INCOME TAX ON CERTAIN TYPES OF NET TAXABLE INCOME FROM ACTIVITIES THAT MAY BE CONSIDERED BY TAXING AUTHORITIES AS UNRELATED TO THE PURPOSE FOR WHICH THE CREDIT UNION WAS GRANTED NONTAXABLE STATUS. IN THE OPINION OF MANAGEMENT, ANY LIABILITY RESULTING FROM TAXING AUTHORITIES IMPOSING INCOME TAXES ON THE NET TAXABLE INCOME FROM ACTIVITIES DEEMED TO BE UNRELATED TO THE CREDIT UNION'S NONTAXABLE STATUS IS NOT EXPECTED TO HAVE A MATERIAL EFFECT ON THE CREDIT UNION'S FINANCIAL POSITION OR RESULTS OF OPERATION. MANAGEMENT EVALUATED THE CREDIT UNION'S TAX POSITIONS AND CONCLUDED THAT THE CREDIT UNION HAD TAKEN NO UNCERTAIN TAX POSITIONS THAT REQUIRE ADJUSTMENT TO THE CONSOLIDATED FINANCIAL STATEMENTS. 1 CITY OF LEOMINSTER 25 WEST ST LEOMINSTER MA 01453 046006004 CITY OF LEOMINSTER 16100 0 PROGRAM SUPPORT AND STARBURST 2023 CLINTON COUNCIL ON AGING 271 CHURCH ST CLINTON MA 01510 046001118 CITY OF CLINTON 11000 0 PROGRAM SUPPORT GREATER LOWELL COMMUNITY FOUNDATION 100 MERRIMACK ST LOWELL MA 01852 043401997 501(C)(3) 10000 0 TWIN CITIES RAIL TRIAL WORCESTER STATE FOUNDATION 486 CHANDLER ST WORCESTER MA 01602 223248067 501(C)(3) 6000 0 PROGRAM SUPPORT UNITED WAY OF NORTH CENTRAL MASS 649 JOHN FITCH HIGHWAY FITCHBURG MA 01420 042233021 501(C)(3) 5619 0 PROGRAM SUPPORT NORTH CENTRAL MASS CHAMBER OF COMMERCE 860 SOUTH ST FITCHBURG MA 01420 222505324 501(C)(6) 5500 0 PROGRAM SUPPORT COOPERATIVE CREDIT UNION ASSOCIATION 845 DONALD LYNCH BLVD MARLBOROUGH MA 01752 043403594 501(C)(6) 5400 0 PROGRAM SUPPORT HEART OF NEW ENGLAND COUNCIL BSA 394 PLEASANTDATE RD RUTLAND MA 01543 042349692 501(C)(3) 5400 0 PROGRAM SUPPORT 6 2 PART I, LINE 2: LEOMINSTER CREDIT UNION INFORMALLY FOLLOWS UP WITH GRANT RECIPIENTS AND ENSURES THAT THE GRANT FUNDS ARE USED FOR THE PURPOSE INTENDED. X 1 1 X X X X 0 1 0 BARBARA MAHONEY PRESIDENT/CEO 382595 0 23976 0 7709 0 24400 0 39541 0 478221 0 0 0 JOSEPH NORMANT CFO 237808 0 10723 0 2020 0 20044 0 1064 0 271659 0 0 0 CRAIG MADONIA SVP LENDING 189181 0 7600 0 3443 0 16625 0 30147 0 246996 0 0 0 KATIE NAJJAR SVP RETAIL 179238 0 8476 0 1038 0 26184 0 29126 0 244062 0 0 0 MYCHELLE PHILLIPS VP OPERATIONS 173935 0 15255 0 2277 0 15738 0 33090 0 240295 0 0 0 KELLI ROONEY SVP COMMUNITY ENGAGEMENT & MARKETING 166478 0 7556 0 920 0 13996 0 615 0 189565 0 0 0 ELLEN COUGHLIN SVP HR & DEVELOPMENT 130401 0 6745 0 856 0 11766 0 30306 0 180074 0 0 0 DONALD O'CONNOR FORMER VP LENDING OPERATIONS 130957 0 5635 0 3893 0 11639 0 20327 0 172451 0 0 0 PART I, LINE 1A LEOMINSTER CREDIT UNION (THE CREDIT UNION) REIMBURSES THE COST OF BOARD-APPROVED SPOUSAL OR SIGNIFICANT OTHER TRAVEL EXPENSES WHEN ACCOMPANYING A DIRECTOR ON AN EDUCATIONAL EVENT OR SPECIAL PLANNING MEETING HELD OFF-SITE FROM THE CREDIT UNION. COSTS INCLUDE TRAVEL, GUEST REGISTRATION, LODGING, MEALS, TELEPHONE CALLS, REFRESHMENTS AND REASONABLE TIPS TO HOTEL EMPLOYEES, CAB AND LIMOUSINE DRIVERS, AND RESTAURANT STAFF. THIS BENEFIT WAS PROVIDED TO RICHARD SHEPPARD, GIULIO GRECO, JOSEPH QUINTAL, MICHAEL SAUVAGEAU, JOYCE LEGER, HENRY KULIK, AND JOHN REEDY. THESE BENEFIT AMOUNTS ARE NOT INCLUDED IN THE LISTED INDIVIDUALS' REPORTABLE COMPENSATION ON FORM 990, PART VII OR SCHEDULE J, PART II. PART I, LINE 4B KATIE NAJJAR PARTICIPATED IN A SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN (SERP) SPONSORED BY LEOMINSTER CREDIT UNION (THE CREDIT UNION). THERE WERE NO CONTRIBUTIONS TO OR DISTRIBUTIONS FROM THE SERP PLAN. THE DEFINED BENEFIT ACCRUAL AMOUNT OF $10,482 IS INCLUDED IN REPORTABLE COMPENSATION ON FORM 990, PART VII AND SCHEDULE J, PART II. BARBARA MAHONEY OFFICER COLLATERAL ASSIGNED SPLIT-DOLLAR LIFE INSURANCE POLICY X 5675000 5701246 0 1 1 JOSEPH NORMANT OFFICER COLLATERAL ASSIGNED SPLIT-DOLLAR LIFE INSURANCE POLICY X 2000000 1963273 0 1 1 7664519 FORM 990, PART VI, SECTION A, LINE 6 LEOMINSTER CREDIT UNION HAS MEMBERS AS SPECIFIED BY ITS BYLAWS. FORM 990, PART VI, SECTION A, LINE 7A LEOMINSTER CREDIT UNION MEMBERS HAVE THE POWER TO ELECT THE MEMBERS OF THE GOVERNING BODY. FORM 990, PART VI, SECTION A, LINE 8B LEOMINSTER CREDIT UNION DOES NOT HAVE ANY COMMITTEES WITH AUTHORITY TO ACT ON BEHALF OF THE GOVERNING BODY. FORM 990, PART VI, SECTION B, LINE 11B THE VICE PRESIDENT/TREASURER AND CHIEF FINANCIAL OFFICER WILL REVIEW THE FORM 990 BEFORE FILING IT WITH THE INTERNAL REVENUE SERVICE. A COPY IS ALSO PROVIDED TO THE BOARD OF DIRECTORS PRIOR TO FILING WITH THE INTERNAL REVENUE SERVICE. FORM 990, PART VI, SECTION B, LINE 12C LEOMINSTER CREDIT UNION'S CONFLICT OF INTEREST POLICY IS PART OF THE ETHICS POLICY. THE ETHICS POLICY COVERS ALL DIRECTORS, OFFICERS, AND EMPLOYEES OF THE CREDIT UNION. EMPLOYEES MAY NOT ACCEPT GIFTS OR GRATUITIES OF MORE THAN A NOMINAL VALUE ($100), FROM VENDORS AND SERVICE PROVIDERS EXCEPT IN MODERATION AND CONSISTENT WITH ACCEPTED GOODWILL-BUILDING PRACTICES. IF THE CREDIT UNION EMPLOYEE IS OFFERED OR RECEIVES SOMETHING OF VALUE THAT EXCEEDS THE NOMINAL VALUE ($100) THAT IS AUTHORIZED IN THE WRITTEN ETHICS POLICY, THE CREDIT UNION EMPLOYEE MUST DISCLOSE THAT FACT TO THE VP HUMAN RESOURCES & DEVELOPMENT. THE VP HUMAN RESOURCES & DEVELOPMENT WILL KEEP CONTEMPORANEOUS WRITTEN REPORTS OF SUCH DISCLOSURES AND ADVISE THE EMPLOYEE WHAT SHOULD BE DONE WITH THE GIFT. IN NO INSTANCE MAY AN EMPLOYEE'S PERSONAL TRANSACTIONS CREATE A CONFLICT OF INTEREST OR POTENTIAL CONFLICT OF INTEREST. OFFICERS AND EMPLOYEES WHO BENEFIT DIRECTLY OR INDIRECTLY FROM A CREDIT UNION LOAN MAY NOT PARTICIPATE IN THE APPROVAL PROCESS. EMPLOYEES ARE NOT PERMITTED TO TRANSACT PAYMENT OR ADVANCES, PROCESS, VERIFY, UNDERWRITE, OR APPROVE ANY LOAN REQUESTS OF IMMEDIATE FAMILY, HOUSEHOLD MEMBERS, PERSONAL FRIENDS, OR WHERE THEY MAY HAVE A PERSONAL INTEREST OR ACT AS A JOINT OWNER OR CO-MAKER. ULTIMATELY, CREDIT UNION MANAGEMENT CONSISTENTLY MONITORS FOR CONFLICTS OF INTEREST. EMPLOYEES ARE REQUIRED TO SIGN THE ETHICS POLICY (WHICH CONTAINS THE CONFLICT-OF-INTEREST POLICY) ANNUALLY, AGREEING TO SELF-REPORT APPARENT CONFLICTS OF INTEREST TO THEIR RESPECTIVE MANAGERS. IF A CONFLICT OF INTEREST IS DISCOVERED BY MANAGEMENT (OR THE EMPLOYEE SELF-REPORTS), THEN THE EMPLOYEE'S MANAGER, IN COORDINATION WITH THE VICE PRESIDENT OF HUMAN RESOURCES, WILL REVIEW THE SITUATION AND REQUIRE THE EMPLOYEE TO RETURN THE GIFT OR TAKE OTHER ACTION WHICH IS WARRANTED BY THE SPECIFIC SITUATION. FORM 990, PART VI, SECTION B, LINE 15A LEOMINSTER CREDIT UNION'S (THE CREDIT UNION) COMPENSATION COMMITTEE IS THE GOVERNING BODY THAT REVIEWS AND APPROVES COMPENSATION PROGRAMS. COMPENSATION COMMITTEE MEETING MINUTES ARE RECORDED, AS ARE BOARD OF DIRECTOR MEETING MINUTES TO DOCUMENT ALL DISCUSSIONS AND DECISIONS MADE REGARDING COMPENSATION. THE COMPENSATION COMMITTEE, IN CONJUNCTION WITH AN OUTSIDE CONSULTANT, REVIEWS AND APPROVES THE SALARIES OF THE PRESIDENT AND CHIEF EXECUTIVE OFFICER ON AN ANNUAL BASIS EACH DECEMBER. THE CREDIT UNION WORKS WITH AN OUTSIDE COMPENSATION CONSULTING FIRM TO REVIEW JOB LEVELS FOR ALL OFFICERS AND EMPLOYEES AND PRE-DETERMINED SALARY RANGES FOR EACH POSITION. THE LEVELS AND SALARY RANGES ARE COMPARED TO SALARY SURVEYS PURCHASED BY THE CREDIT UNION, WHICH CONTAIN COMPENSATION DATA ON SIMILAR POSITIONS AT OTHER FINANCIAL INSTITUTIONS AND ARE USED TO ASSESS THE APPROPRIATENESS OF ANY COMPENSATION ADJUSTMENT RECOMMENDATIONS. HUMAN RESOURCES COMPARES ROLES AND COMPENSATION LEVELS WITHIN THE ORGANIZATION BEFORE APPROVING ANY ADJUSTMENT RECOMMENDATIONS TO ENSURE THEY ARE APPROPRIATE AND EQUITABLE ON AN ANNUAL BASIS EACH FEBRUARY. FORM 990, PART VI, SECTION C, LINE 19 LEOMINSTER CREDIT UNION MAKES ITS GOVERNING DOCUMENTS AND AUDITED FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC UPON REQUEST IN THE SAME TIME AND MANNER AS OTHER DISCLOSURES REQUIRED UNDER INTERNAL REVENUE CODE SECTION 6104. THE CONFLICT OF INTEREST POLICY IS NOT MADE AVAILABLE TO THE PUBLIC. FORM 990, PART XII, LINE 2C: THE OVERSIGHT AND SELECTION PROCESS HAS NOT CHANGED FROM THE PRIOR TAX YEAR. FORM 990, PART I, LINES 14 & 17: IN TAX YEAR 2022, LEOMINSTER CREDIT UNION DETERMINED THAT IT WAS MORE APPROPRIATE TO INCLUDE IN THE PRIOR YEAR COLUMN FOR LINE 17 (OTHER EXPENSES) CERTAIN ITEMS INCLUDED IN PRIOR YEAR FORMS 990, PART IX, IN LINE 4 (BENEFITS PAID TO OR FOR MEMBERS). CONFORMING ADJUSTMENTS HAVE BEEN MADE TO THE 2022 AMOUNTS LISTED IN THE CURRENT YEAR COLUMN OF PART I AND PART IX. LCU INSURANCE SERVICES LLC 20 ADAMS STREET LEOMINSTER MA 01453 452079582 FINANCIAL SERVICES ACTIVITIES MA -1 18445 LEOMINSTER CREDIT UNION