2024-11-12T17:07:41-06:00 2023-12-31 410746749 CLIFTONLARSONALLEN LLP 20 EAST THOMAS ROAD SUITE 2300 PHOENIX AZ 85012 990 2023-01-01 946087440 COMMONWEALTH CENTRAL CREDIT UNION COMM 4085313100 5890 SILVER CREEK VALLEY RD SAN JOSE CA 95138 VIKTORIA EARLE PRESIDENT/CEO 4085313100 2024-11-12 1 1 MELISSA HANGSLEBEN P02087031 6022662248 2024-11-12 2023 2024-10-15 13:58:12Z VIKTORIA EARLE 5890 SILVER CREEK VALLEY RD SAN JOSE CA 95138 34445169 0 X WWW.WEALTHCU.ORG X 1958 CA TO HELP OUR MEMBERS IMPROVE THEIR FINANCIAL WELL-BEING. 7 7 111 10 73737 0 0 1881608 22619146 28312646 3066278 4186624 668691 64291 26354115 34445169 21000 15000 657806 1718260 11423930 11368712 0 0 0 9299069 10739805 21401805 23841777 4952310 10603392 672566612 631464188 610334033 559193467 62232579 72270721 TO HELP OUR MEMBERS IMPROVE THEIR FINANCIAL WELL-BEING THROUGH SAVING AND CREATING A SOURCE OF CREDIT FOR MEMBERS. 0 0 THE CREDIT UNION PROVIDES CONSUMER LOANS, SHARE AND SHARE DRAFT ACCOUNTS, SHARE CERTIFICATES AND OTHER EXEMPT FUNCTION ACTIVITIES TO ITS MEMBERS. 0 1 0 0 0 0 0 0 0 1 0 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 1 7286 0 1 111 1 1 1 0 0 0 0 0 0 0 X 7 7 0 0 0 0 1 1 0 1 1 0 1 1 0 1 1 1 1 1 1 1 0 CA X VIKTORIA EARLE 4085313236 5890 SILVER CREEK VALLEY RD SAN JOSE CA 95138 JAMES CRAWFORD CHAIRMAN 1.00 X X 10023 0 0 LARRY CHAMBERS VICE-CHAIR 1.00 X X 3711 0 0 ALBERT BALAGSO TREASURER 1.00 X X 10885 0 0 ANNE LE SECRETARY 1.00 X X 3142 0 0 MICHAEL F FILICE JR DIRECTOR (THRU 4/20/23) 1.00 X 2117 0 0 BARRY SCHIMMEL DIRECTOR 1.00 X 780 0 0 LILY LIM-TSAO DIRECTOR 1.00 X 2005 0 0 MEENA MEYYAPPAN DIRECTOR 1.00 X 0 0 0 VIKTORIA EARLE PRESIDENT/CEO 40.00 X 496340 0 44869 DAVID LOFTUS CHIEF FINANCIAL OFFICER 40.00 X 241145 0 10590 LISA BROWN CHIEF STRATEGY AND PEOPLE OFFICER 40.00 X 301883 0 14602 JENNIFER D'AMICO CHIEF MARKETING OFFICER 40.00 X 233566 0 33398 SUNDEEP JAIN CHIEF LENDING OFFICER 40.00 X 226714 0 13160 VAL OVROOTSKY CHIEF INFORMATION OFFICER 40.00 X 252721 0 23835 SYLVIA GRANGER VP, RETAIL SERVICES 40.00 X 233910 0 23446 MANUEL CARINO AVP, INFORMATION SYSTEMS & SECURITY 40.00 X 141157 0 19690 AMY CIMORELLI AVP, HUMAN RESORCES 40.00 X 170637 0 20010 EILISH PERRY DIRECTOR OF COMPLIANCE 40.00 X 141384 0 19554 NOEL SHANKER DIGITAL SERVICES MANAGER 40.00 X 134574 0 26711 SIRISAK UMPAWA DIRECTOR OF INFORMATION TECHNOLOGY 40.00 X 133577 0 26745 2740271 0 276610 27 0 1 0 FISERV PO BOX 208457 DALLAS TX 75320 CORE SYSTEM 774696 CO-OP ACH 9692 HAVEN AVE SUITE 300 RANCHO CUCAMONGA CA 91730 PAYMENT CARD SERVICES 628523 Q2 SOFTWARE INC PO BOX 205970 DALLAS TX 753205970 ONLINE BANKING 467821 MARQUIS SOFTWARE SOLUTIONS INC PO BOX 660919 DALLAS TX 752660919 DATA ANALYTICS 181692 DIEBOLD NIXDORF INCORPORATED PO BOX 643543 PITTSBURG PA 152643543 ATM SERVICES/MAINTENANCE 163787 28 1881608 1881608 INTEREST ON LOANS TO MEMBERS 522100 23358325 23358325 FEES AND CHARGES 522100 2729104 2655367 73737 INTERCHANGE INCOME 522100 1849284 1849284 INVESTMENT SERVICES COMMISSION 522100 203776 203776 INSURANCE AND WEALTH PROTECTION 522100 172157 172157 28312646 4186624 4186624 64291 0 64291 64291 64291 34445169 28238909 73737 4250915 15000 1718260 2182842 7204702 336962 1020927 623279 74133 35520 2298874 682349 783144 1079410 916671 117524 50026 1075930 164762 PROVISION FOR LOAN LOSS 1434220 LOAN ORIGINATION EXPENS 629411 OPERATING EXPENSES 538404 ATM EXPENSES 412137 447290 23841777 1316539 3687404 125968987 63963228 3460707 868613 1693950 8845001 487782426 515380075 823964 643609 28289885 15862719 12879108 12427166 13133323 10990646 2498507 2838707 23009101 11819739 672566612 631464188 3542444 4306888 606791589 554886579 610334033 559193467 X 0 0 0 0 62232579 72270721 62232579 72270721 672566612 631464188 X 10603392 49478 -614728 X 0 1 X 1 0 RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 1189220 1189220 15672030 6914278 8757752 3534750 2095807 1438943 7893885 6852634 1041251 12427166 MEMBERS' SHARE AND SAVINGS ACCOUNTS 553053837 LEASE LIABILITY 1832742 554886579 X 34683034 237865 237865 34445169 0 34445169 23841777 0 23841777 0 23841777 PART X, LINE 2: THE CREDIT UNION IS EXEMPT, UNDER INTERNAL REVENUE CODE (IRC) 501(C)(14), FROM FEDERAL AND STATE INCOME TAXES. THE TAXING AUTHORITIES HAVE THE ABILITY TO ASSESS TAXES, PENALTIES, AND INTEREST FOR ANY YEARS FOR WHICH NO TAX RETURN WAS FILED. IN THE OPINION OF MANAGEMENT, ANY LIABILITY RESULTING FROM TAXING AUTHORITIES IMPOSING INCOME TAXES ON THE NET TAXABLE INCOME FROM ACTIVITIES POTENTIALLY DEEMED TO BE UNRELATED TO THE CREDIT UNION'S EXEMPT PURPOSE IS NOT EXPECTED TO HAVE A MATERIAL EFFECT ON THE CREDIT UNION'S FINANCIAL POSITION OR RESULTS OF OPERATIONS. THE CREDIT UNION EVALUATED ITS TAX POSITIONS AND DETERMINED NO UNCERTAIN TAX POSITIONS EXIST AS OF DECEMBER 31, 2023 AND 2022. THE CREDIT UNION'S 2020 THROUGH 2022 TAX YEARS ARE OPEN FOR EXAMINATION BY FEDERAL AND STATE TAXING AUTHORITIES. PART XI, LINE 2D - OTHER ADJUSTMENTS: CASH SURRENDER VALUE CHANGES ON LIFE INSURANCE POLICIES MOVED TO PART XI 237,865. 1 SCHOLARSHIPS 15 15000 PART I, LINE 2: EACH SCHOLARSHIP PARTICIPANT MUST SUBMIT AN APPLICATION. A COMMITTEE REVIEWS THE APPLICATION AND CHOOSES THE APPLICANT BASED ON THE CONTENT OF THEIR APPLICATION. X 1 1 X X X X 0 1 0 VIKTORIA EARLE PRESIDENT/CEO 430962 0 44535 0 20843 0 16500 0 28369 0 541209 0 0 0 LISA BROWN CHIEF STRATEGY AND PEOPLE OFFICER 266072 0 31299 0 4512 0 13453 0 1149 0 316485 0 0 0 VAL OVROOTSKY CHIEF INFORMATION OFFICER 224116 0 26446 0 2159 0 12617 0 11218 0 276556 0 0 0 JENNIFER D'AMICO CHIEF MARKETING OFFICER 201305 0 31579 0 682 0 10725 0 22673 0 266964 0 0 0 SYLVIA GRANGER VP, RETAIL SERVICES 202634 0 25375 0 5901 0 10093 0 13353 0 257356 0 0 0 DAVID LOFTUS CHIEF FINANCIAL OFFICER 230001 0 10785 0 359 0 9730 0 860 0 251735 0 0 0 SUNDEEP JAIN CHIEF LENDING OFFICER 219430 0 0 0 7284 0 4865 0 8295 0 239874 0 0 0 AMY CIMORELLI AVP, HUMAN RESORCES 151481 0 18145 0 1011 0 6760 0 13250 0 190647 0 0 0 NOEL SHANKER DIGITAL SERVICES MANAGER 118467 0 15719 0 388 0 7418 0 19293 0 161285 0 0 0 EILISH PERRY DIRECTOR OF COMPLIANCE 123711 0 14986 0 2687 0 6410 0 13144 0 160938 0 0 0 MANUEL CARINO AVP, INFORMATION SYSTEMS & SECURITY 116283 0 23344 0 1530 0 7133 0 12557 0 160847 0 0 0 SIRISAK UMPAWA DIRECTOR OF INFORMATION TECHNOLOGY 121482 0 11836 0 259 0 6649 0 20096 0 160322 0 0 0 PART I, LINE 1A CERTAIN MEMBERS OF MANAGEMENT AND BOARD MEMBERS RECEIVE COMPENSATION FOR TRAVEL COMPANIONS. PART I, LINE 4B SPLIT DOLLAR LOAN: BEGINNING IN 2023, THE CREDIT UNION MADE A LOAN FOR LIFE INSURANCE PREMIUM PAYMENTS TO A MEMBER OF MANAGEMENT. THE LOAN IS COLLATERALIZED BY THE ASSIGNMENT OF THE POLICY DEATH BENEFITS AND CASH VALUES OF THE LIFE INSURANCE POLICIES, PREMIUM DEPOSIT ACCOUNT BALANCES, AND A CHECKING ACCOUNT BALANCE. THE POLICIES ARE OWNED BY THE EXECUTIVE AND THE EXECUTIVE HAS THE RIGHT TO NAME THE BENEFICIARIES FOR AMOUNTS NOT SECURED BY THE ASSIGNMENTS. THE LOANS ARE CONSIDERED NONRECOURSE AND AS SUCH, THE CREDIT UNION RECORDS THE BALANCE AS THE LOWER OF THE OUTSTANDING LOAN BALANCE PLUS ACCRUED INTEREST OR THE COLLATERAL VALUE. JENNIFER DAMICO CHIEF MARKETING OFFICER CREDIT CARD X 1000 190 0 1 1 SYLVIA GRANGER VP, RETAIL SALES MORTGAGE X 379000 342666 0 1 1 VALENTIN OVROOTSKY CHIEF INFORMATION OFFICER MORTGAGE X 711000 623019 0 1 1 VALENTIN OVROOTSKY CHIEF INFORMATION OFFICER LINE OF CREDIT X 300000 16703 0 1 1 VALENTIN OVROOTSKY CHIEF INFORMATION OFFICER AUTO X 41518 29287 0 1 1 SYLVIA K GRANGER VP, RETAIL SERVICES LINE OF CREDIT X 150000 52495 0 1 1 SYLVIA K GRANGER VP, RETAIL SERVICES CREDIT CARD X 20000 13 0 1 1 VALENTIN OVROOTSKY CHIEF INFORMATION OFFICER CREDIT CARD X 5000 827 0 1 1 LISA ANN BROWN CHIEF STRATEGY AND PEOPLE OFFICER CREDIT CARD X 25000 90 0 1 1 VIKTORIA EARLE PRESIDENT/CEO SPLIT DOLLAR LOAN X 7774075 7779711 0 1 1 8845001 SCHEDULE L, PART II SPLIT DOLLAR LOAN: BEGINNING IN 2023, THE CREDIT UNION MADE A LOAN FOR LIFE INSURANCE PREMIUM PAYMENTS TO A MEMBER OF MANAGEMENT. THE LOAN IS COLLATERALIZED BY THE ASSIGNMENT OF THE POLICY DEATH BENEFITS AND CASH VALUES OF THE LIFE INSURANCE POLICIES, PREMIUM DEPOSIT ACCOUNT BALANCES, AND A CHECKING ACCOUNT BALANCE. THE POLICIES ARE OWNED BY THE EXECUTIVE AND THE EXECUTIVE HAS THE RIGHT TO NAME THE BENEFICIARIES FOR AMOUNTS NOT SECURED BY THE ASSIGNMENTS. THE LOANS ARE CONSIDERED NONRECOURSE AND AS SUCH, THE CREDIT UNION RECORDS THE BALANCE AS THE LOWER OF THE OUTSTANDING LOAN BALANCE PLUS ACCRUED INTEREST OR THE COLLATERAL VALUE. FORM 990, PART VI, SECTION A, LINE 1A THE BOARD OF DIRECTORS MAY APPOINT AN EXECUTIVE COMMITTEE OF NO FEWER THAN THREE (3) DIRECTORS AND DELEGATE TO SUCH COMMITTEE THE POWER TO APPROVE MEMBERSHIP APPLICATIONS. WITH THE WRITTEN APPROVAL OF THE COMMISSIONER, THE EXECUTIVE COMMITTEE MAY ACT FOR THE BOARD OF DIRECTORS IN THE PURCHASE AND SALE OF SECURITIES, INVESTMENT AND WITHDRAWAL OF FUNDS, IN BORROWING FUNDS, AND TO MAKE LOANS TO OTHER CREDIT UNIONS IN ACCORDANCE WITH THE LAWS AND REGULATIONS. FORM 990, PART VI, SECTION A, LINE 6 PARTICIPATION IN THE CREDIT UNION IS LIMITED TO THOSE INDIVIDUALS THAT QUALIFY FOR MEMBERSHIP. THE FIELD OF MEMBERSHIP IS DEFINED IN THE CREDIT UNION'S CHARTER AND BYLAWS. THIS GENERALLY CONSISTS OF INDIVIDUALS WHO LIVE OR REGULARLY WORK IN THE COUNTY OF SANTA CLARA, CALIFORNIA. IN ADDITION TO A REGULARLY QUALIFIED MEMBER, THE SPOUSE OF A MEMBER, THE BLOOD OR ADOPTIVE RELATIVES OF EITHER OF THEM, AND THEIR SPOUSES MAY BE MEMBERS. FORM 990, PART VI, SECTION A, LINE 7A BOARD OF DIRECTORS ARE ELECTED BY THE MEMBERSHIP. FORM 990, PART VI, SECTION B, LINE 11B THE FORM 990 IS PREPARED BY THE ORGANIZATION'S PUBLIC ACCOUNTING FIRM BASED ON INFORMATION PROVIDED BY MANAGEMENT. ONCE THE DRAFT IS AVAILABLE, IT IS REVIEWED BY MANAGEMENT AND ANY CHANGES INCORPORATED INTO THE FILING. ONCE THIS DETAILED REVIEW IS COMPLETE, THE FORM 990 IS FILED WITH THE IRS. FORM 990, PART VI, SECTION B, LINE 12C IN ACCORDANCE WITH OUR BOARD POLICY, PERSONNEL POLICIES AND NON-DISCLOSURE/CONFIDENTIALITY AGREEMENT (THAT CONTAINS A CONFLICT OF INTEREST CLAUSE), COMMONWEALTH EMPLOYEES ARE REQUIRED TO DISCLOSE THE FOLLOWING INFORMATION UPON HIRE AND AT ANY TIME DURING THEIR EMPLOYMENT: - EMPLOYEE AND RELATIVE ACCOUNTS: UPON HIRE AND THEN ON AN ANNUAL BASIS, ALL EMPLOYEES ARE REQUIRED TO COMPLETE A FORM DISCLOSING ANY MEMBER ACCOUNTS BELONGING TO THEM AND/OR THEIR FAMILY MEMBERS. - CONFLICTING OUTSIDE EMPLOYMENT: IN CONJUNCTION WITH THEIR OFFER OF EMPLOYMENT LETTERS, NEW EMPLOYEES ARE REQUIRED TO SIGN A NON-DISCLOSURE/CONFIDENTIALITY AGREEMENT WHICH INCLUDES A CONFLICT OF INTEREST CLAUSE RELATING TO OUTSIDE EMPLOYMENT. ADDITIONALLY, NEW AND EXISTING EMPLOYEES ARE REQUIRED TO REPORT TO THEIR MANAGER ANY OUTSIDE EMPLOYMENT SO THAT THE CEO AND VP OF HUMAN RESOURCES CAN DETERMINE IF A CONFLICT OF INTEREST EXISTS. - CONFLICT OF INTEREST: AS REQUIRED BY COMMONWEALTH'S CODE OF ETHICAL CONDUCT, ALL VOLUNTEERS AND EMPLOYEES MUST DISCLOSE AND REPORT TO THE PRESIDENT/CEO ANY POSSIBLE CONFLICT OF INTEREST IN THEIR BUSINESS DEALINGS. FURTHERMORE, ALL EMPLOYEES ARE REQUIRED TO DISCLOSE TO THE PRESIDENT/CEO ANY GIFTS, GRATUITIES, AMENITIES, MEALS, ENTERTAINMENT, ETC. TO DETERMINE WHETHER OR NOT ACCEPTANCE OF SUCH ITEMS WOULD BE DEEMED A CONFLICT OF INTEREST. FORM 990, PART VI, SECTION B, LINE 15 COMMONWEALTH RETAINS AN OUTSIDE COMPENSATION CONSULTING FIRM, BALANCEDCOMP, TO ASSIST IN ITS SALARY ADMINISTRATION EFFORTS. SPECIFICALLY, BALANCEDCOMP WORKS WITH THE PRESIDENT/CEO AND THE CHIEF STRATEGY AND PEOPLE OFFICER TO DEVELOP A COMPREHENSIVE COMPENSATION STRUCTURE THAT INCLUDES ANNUAL MARKET EVALUATIONS, SALARY GRADE STRUCTURE AND AN INTEGRATED JOB DESCRIPTION DATABASE. THE CURRENT COMPENSATION STRUCTURE WAS INITIALLY DEVELOPED AND IMPLEMENTED IN 2003. SINCE THEN, THE STRUCTURE HAS BEEN MAINTAINED AND ADMINISTERED BY THE CREDIT UNION'S HUMAN RESOURCES DEPARTMENT WITH THE ASSISTANCE OF BALANCEDCOMP USING A COMPENSATION SOFTWARE PACKAGE. ON AN ANNUAL BASIS, BALANCEDCOMP PARTICIPATES (ON BEHALF OF COMMONWEALTH) IN AT LEAST 10 SALARY SURVEYS FOR USE IN BENCHMARKING PAY DATA WITH MARKET RATES. THE PAY RANGES ARE ADJUSTED ANNUALLY TO REFLECT CHANGES IN MARKET CONDITIONS AND THE RANGES IN CORPORATE GEOGRAPHIC WAGE DIFFERENTIALS. THE CHIEF STRATEGY AND PEOPLE OFFICER PROVIDES OVERSIGHT TO THE HUMAN RESOURCES STAFF IN SALARY ADMINISTRATION PRACTICES BY UTILIZING ALL OF THE ABOVE-MENTIONED RESOURCES PROVIDED BY BALANCEDCOMP. FURTHERMORE, THE HR DEPARTMENT ADMINISTERS COMPENSATION THROUGH THE MANAGEMENT OF COMPARATIOS. (THE COMPARATIO IS A MATHEMATICAL CALCULATION THAT IDENTIFIES THE RELATIONSHIP BETWEEN ACTUAL PAY AND MARKET RATE FOR A PERSON, DEPARTMENT OR THE TOTAL CREDIT UNION. FOR EXAMPLE, A 90% COMPARATIO FOR AN INDIVIDUAL SAYS THAT THE INDIVIDUAL IS BEING PAID AT 90% OF THE PREVAILING MARKET RATE FOR HIS/HER JOB. THE COMPARATIO IS DETERMINED BY DIVIDING ACTUAL PAY BY THE RATE ESTABLISHED AS THE MID-POINT FOR THE GRADE.) AS MARKET CONDITIONS NECESSITATE, A MID-YEAR REVIEW OF THE COMPENSATION STRUCTURE'S MARKET COMPETITIVENESS IS CONDUCTED WITH THE ASSISTANCE OF BALANCEDCOMP. EXECUTIVE COMPENSATION PRACTICES ALSO EMPLOY THE SAME METHODOLOGIES AS OUTLINED ABOVE, AND BALANCEDCOMP PROVIDES GUIDANCE AND RECOMMENDATIONS AS NEEDED. PAY GRADES AND RANGES ARE ESTABLISHED FOR EACH SENIOR MANAGEMENT LEVEL POSITION AND COMPARATIOS ARE ALSO USED WITH SUCH POSITIONS. HRN PERFORMANCE SOLUTIONS ALSO PROVIDES CONSULTING SERVICES FOR THE CEO'S COMPENSATION PACKAGE BY EMPLOYING THE SAME METHODOLOGIES (I.E. PAY GRADE, PAY RANGE, SALARY SURVEYS, COMPARATIOS, ETC.) WHEN WORKING WITH THE BOARD'S COMPENSATION COMMITTEE MEMBERS. FORM 990, PART VI, SECTION C, LINE 19 GOVERNING DOCUMENTS AND POLICIES ARE AVAILABLE UPON REQUEST. FINANCIAL STATEMENTS ARE PUBLICALLY AVAILABLE AT WWW.NCUA.GOV AND IN OUR BRANCH OFFICES. FORM 990, PART XI, LINE 9: CASH SURRENDER VALUE CHANGES ON LIFE INSURANCE POLICIES 237,865. CUMULATIVE EFFECT OF CHANGE IN ACCOUNT PRINCIPLE -852,593.