2024-11-12T09:19:18-06:00 2023-12-31 410746749 CLIFTONLARSONALLEN LLP 109 N MAIN STREET SUITE 200 AUSTIN MN 55912 990 2023-01-01 381524350 4FRONT CREDIT UNION 4FRO 2319292000 PO BOX 795 TRAVERSE CITY MI 49685 KARL PAGEL CHIEF FINANCIAL OFFICER 2319292000 2024-11-08 1 0 TANYA MEDGAARDEN P01717240 5074347000 2024-11-08 2023 2024-10-15 13:58:12Z ANDREW KEMPF PO BOX 795 TRAVERSE CITY MI 49685 134049091 0 X WWW.4FRONTCU.COM X CREDIT UNION 1954 MI TO PROVIDE FINANCIAL SERVICES TO MEMBERS WITH A COMMON BOND. 9 9 387 9 244546 0 0 0 54630812 67571354 1913130 3435805 136720 1340446 56680662 72347605 0 0 3737791 12040049 15686854 19914744 0 0 0 25803220 36266311 45227865 68221104 11452797 4126501 1009844526 1086820765 933681311 1004190107 76163215 82630658 TO PROVIDE FINANCIAL SERVICES TO MEMBERS WITH A COMMON BOND. 0 0 THE CREDIT UNION PROVIDES SEVERAL DEPOSIT ACCOUNT TYPES TO MEMBERS INCLUDING SAVINGS,CHECKING, CERTIFICATES OF DEPOSITS AND OTHERS. THE TOTAL NUMBER OF MEMBERS AT 12/31/23 WAS 105,332. THE CREDIT UNION PROVIDES A VARIETY OF LOANS TO MEMBERS INCLUDING REAL ESTATE, CREDIT CARDS, VEHICLE AND OTHERS. THE TOTAL NUMBER OF LOANS OUTSTANDING AT 12/31/23 WAS 59,602. 0 0 0 0 0 0 0 0 0 1 1 0 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 1 0 0 0 1 1940 0 1 387 1 1 1 0 0 0 0 0 0 0 0 0 0 0 X 9 9 0 0 0 0 1 1 1 1 1 0 1 1 0 1 1 1 1 1 1 1 0 X WILLIAM KENNEDY 2319432675 305 W FRONT ST TRAVERSE CITY MI 49684 TODD ROHRBACK CHAIRMAN OF THE BOARD 1.00 X X 0 0 0 BRYAN LINDFORS VICE CHAIRMAN 1.00 X X 0 0 0 MICHAEL SKYLER FORT SECRETARY 1.00 X X 0 0 0 JOHN JACK HODGE TREASURER 1.00 X X 0 0 0 CHARLES HAGUE DIRECTOR 1.00 X 0 0 0 MIKE SLATER DIRECTOR 1.00 X 0 0 0 BRIAN AUSDEMORE DIRECTOR 1.00 X 0 0 0 JULIE KOSLOSKEY DIRECTOR 1.00 X 0 0 0 MATILYN MATTIE MEADOWS DIRECTOR 1.00 X 0 0 0 ANDREW KEMPF CEO 40.00 X 550884 0 83323 KARL PAGEL CFO 40.00 X 334137 0 72616 GEOFF STREIT VP COMMERCIAL LENDING 40.00 X 345171 0 53764 SHELLEY DEYOUNG COO 40.00 X 246732 0 41728 JACK MARTIN CIO 40.00 X 232421 0 24471 DANIEL BAKER CLO 40.00 X 212185 0 38308 RACHEL HUNTER CMO 40.00 X 192330 0 34277 2113860 0 348487 15 0 1 0 CUNNINGHAM-LIMP DEVELOPMENT 28970 CABOT DRIVE STE 100 NOVI MI 48377 DEVELOPMENT, DESIGN, AND CONSTRUCTION MA 2297395 INFORMA BUSINESS SYSTEMS INC 5170 HARTSHORN DRIVE FLUSHING MI 48433 ITMS, SERVICE AGREEMENTS 1666803 DEI INCORPORATED 1550 KEMPER MEADOW DRIVE CINCINNATI OH 45240 ITM 1524833 Q2 SOFTWARE INC PO BOX 205970 DALLAS TX 753205970 ONLINE BANKING 1478004 CITY OF TRAVERSE CITY 500 BOARDMAN AVE TRAVERSE CITY MI 49684 PROPERTY TAXES 781209 43 INTEREST ON LOANS 522100 49087908 49087908 OTHER PROGRAM SERVICE REVENUE 522100 11210523 11210523 FEES & CHARGES 522100 7272923 7028377 244546 67571354 3502302 3502302 45434501 16200488 45307481 16394005 127020 -193517 -66497 -66497 OTHER NON-INTEREST INCOME 522100 1340446 1340446 1340446 72347605 68667254 244546 3435805 12040049 1040960 14964327 945106 1753816 1210535 118782 1498969 1522200 13130095 2214375 121891 607861 1422172 3075756 PROVISION FOR CREDIT LO 7268100 LOAN SERVICING EXPENSE 4075338 MISC OPERATING EXPENSES 1070672 OPERATING FEES 140100 68221104 12897097 15285611 11091606 21683850 1668243 4842965 5843221 5635336 728676418 774043447 1212217 1770164 68339707 18180262 44213730 50159445 159001735 20334797 164709232 667927 19657700 24237535 29033015 1009844526 1086820765 10368300 4669832 75000000 3000000 848313011 996520275 933681311 1004190107 X 0 0 0 0 76163215 82630658 76163215 82630658 1009844526 1086820765 X 4126501 5754985 -3414043 X 0 0 0 6159809 6159809 43614946 6886959 36727987 109094 97737 11357 17754079 11080069 6674010 701779 115497 586282 50159445 AFS SECURITIES 155558833 F PERPETUAL CONTRIBUTED CAPITAL 2000000 C INV IN CORPORATE CREDIT UNIONS 248000 C ALL OTHER INVESTMENTS 6902399 C 164709232 MEMBER SHARES OF ALL TYPES 990831548 NONMEMBER DEPOSITS 5681000 ALLOWANCE FOR CREDIT LOSSES - OFF BALANCE SHEET 7727 996520275 X PART X, LINE 2: THE CREDIT UNION IS EXEMPT, UNDER IRC 501(C)(14), FROM FEDERAL AND STATE INCOME TAXES. THE CREDIT UNION HAS FILED TAX RETURNS IN THE PAST FOR ACTIVITIES IT HAS DEEMED TAXABLE. THE CREDIT UNION EVALUATED ITS TAX POSITIONS AND DETERMINED NO UNCERTAIN TAX POSITIONS EXIST AS OF MARCH 31, 2023 AND 2022. THE CREDIT UNION'S 2020 THROUGH 2022 TAX YEARS ARE OPEN FOR EXAMINATION BY FEDERAL AND STATE TAXING AUTHORITIES. X 0 0 X X X X X 0 0 0 ANDREW KEMPF CEO 493709 0 54959 0 2216 0 59921 0 23402 0 634207 0 0 0 KARL PAGEL CFO 294759 0 39000 0 378 0 51417 0 21199 0 406753 0 0 0 GEOFF STREIT VP COMMERCIAL LENDING 112424 0 232509 0 238 0 29896 0 23868 0 398935 0 0 0 SHELLEY DEYOUNG COO 219442 0 24531 0 2759 0 24776 0 16952 0 288460 0 0 0 JACK MARTIN CIO 226240 0 5000 0 1181 0 9138 0 15333 0 256892 0 0 0 DANIEL BAKER CLO 189191 0 22620 0 374 0 17724 0 20584 0 250493 0 0 0 RACHEL HUNTER CMO 170782 0 21216 0 332 0 16025 0 18252 0 226607 0 0 0 PART I, LINE 1A THE CREDIT UNION COVERS THE TRAVEL OF COMPANIONS FOR STRATEGIC PLANNING AND ONE ADDITIONAL CONFERENCE PER YEAR. DAVID LEUSINK FORMER CEO SPLIT DOLLAR LOAN X 3700000 3723163 0 1 1 ANDREW KEMPF CEO SPLIT DOLLAR LOAN X 1850000 1912173 0 1 1 5635336 SCHEDULE L, PART II NOTED THESE TO BE NON-RECOURSE PLANS THAT ARE RECORDED ON THE BALANCE SHEET AT THE LOWER OF LOAN BALANCE OR CASH SURRENDER VALUE. BECAUSE THE CASH SURRENDER VALUE WAS LOWER, WE REPORTED THAT AMOUNT FOR BALANCE SHEET PURPOSES. HOWEVER, THE ACTUAL LOAN BALANCE IS AS FOLLOWS:DAVID LEUSINK - 4,424,266ANDREW KEMPF - 2,213,250 FORM 990, PART VI, SECTION A, LINE 1A WE DO HAVE A BOARD GOVERNANCE HANDBOOK THAT SPEAKS TO DELEGATING APPROPRIATE AUTHORITY TO THE CEO AND SENIOR MANAGEMENT TEAM. FORM 990, PART VI, SECTION A, LINE 6 THE CREDIT UNION HAS A SINGLE CLASS OF MEMBERS WITH EQUAL RIGHTS OF OWNERSHIP, GOVERNANCE, AND VOTING. FORM 990, PART VI, SECTION A, LINE 7A MEMBERS VOTE AND ELECT BOARD MEMBERS AT ANNUAL MEETING. FORM 990, PART VI, SECTION A, LINE 7B MEMBERS OF THE CREDIT UNION HAVE THE RIGHT TO APPROVE 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 11B MANAGEMENT REVIEWS THE TAX RETURN PRIOR TO FILING WITH THE IRS. FORM 990, PART VI, SECTION B, LINE 12C THE ORGANIZATION'S OFFICERS, DIRECTORS, TRUSTEES, AND KEY EMPLOYEES ARE REQUIRED TO DISCLOSE ACTUAL OR POTENTIAL CONFLICTS THEY MAY HAVE WITH THE ORGANIZATION. IF A CONFLICT ARISES, THE RESPECTIVE BOARD MEMBER WILL ABSTAIN FROM ANY RELATED DISCUSSION, VOTE, OR SIMILAR ACTION ON THE MATTER. MANAGEMENT RESERVES THE RIGHT TO DETERMINE WHEN AN EMPLOYEE'S ACTIVITIES REPRESENT A CONFLICT OF INTEREST AND TO TAKE WHATEVER ACTION IS APPROPRIATE TO RESOLVE THE SITUATION. FORM 990, PART VI, SECTION B, LINE 15 PART VI, LINE 15A: THE CEO RECEIVES A PERFORMANCE APPRAISAL FROM THE ENTIRE BOARD AND THEN THE COMPENSATION COMMITTEE MAKES A RECOMMENDATION TO THE BOARD FOR COMPENSATION BASED ON THE RESULTS OF THE APPRAISAL. WAGE RANGES ARE SET BASED ON COMPENSABLE FACTORS USING COMPEASE (A COMPANY THAT LOOKS AT NATIONAL, REGIONAL, STATE AND AREA COMPENSATION SURVEYS). THIS PROCESS TAKES PLACE ANNUALLY, AND IS DOCUMENTED IN COMPENSATION COMMITTEE MINUTES. RESULTS ARE REPORTED TO THE BOARD, BUT THE DETAILS ARE IN THE COMPENSATION COMMITTEE MINUTES. IN ADDITION TO COMPEASE, COPARABILITY DATA WAS PROVIDED TO THE COMPENSATION COMMITTEEE/BOARD FROM GALLAGHER EXECUTIVE COMPENSATION ANALYSIS. PART VI, LINE 15B THE BOARD RECEIVES A SALARY AND WAGE BUDGET FOR REVIEW/APPROVAL, THE DATA IS NOT EMPLOYEE SPECIFIC. THE PERFORMANCE APPRAISAL/REVIEW/WAGE DISCUSSION FOR THE CEO TOOK PLACE IN MARCH WITH THE BOARD CHAIRMAN AND THE CHAIR OF THE COMPENSATION COMMITTEE. THE SALARY AND WAGE BUDGET FOR REVIEW/APPROVAL WAS DONE AS PART OF THE OVERALL BUDGET APPROVAL AT THE JANUARY BOARD MEETING. THE PROCESS DESCRIBED HERE WAS LAST COMPLETED IN 2023. FORM 990, PART VI, SECTION C, LINE 19 MONTHLY FINANCIALS AND OTHER GOVERNING DOCUMENTS ARE AVAILABLE FOR REVIEW UPON REQUEST AT THE CREDIT UNIONS MAIN OFFICES AT 101 N. PARK ST., TRAVERSE CITY, MI FORM 990, PART XI, LINE 9: ROUNDING CECL ADJUSTMENT -3,414,043. 4FRONT CAPITAL LLC PO BOX 795 TRAVERSE CITY MI 49685 841913699 INVESTMENTS MI 4FRONT CREDIT UNION