2023-11-13T16:46:02-06:00 2022-12-31 410746749 CLIFTONLARSONALLEN LLP 20 EAST THOMAS ROAD SUITE 2300 PHOENIX AZ 85012 990 2022-01-01 952015359 COASTHILLS CREDIT UNION COAS 8057337600 1075 E BETTERAVIA SANTA MARIA CA 93454 DENNIS DURFEE EVP, CHIEF FINANCIAL OFFICER 8057337600 2023-11-10 1 DENNIS DURFEE XXX-XX-XXXX 0 MELISSA HANGSLEBEN P02087031 6022662248 2023-11-10 2 AAL1 IAL1 2022 2023-04-26 12:10:37Z PAUL C COOK 1075 E BETTERAVIA SANTA MARIA CA 93454 78131798 0 X WWW.COASTHILLS.COOP X 1958 CA SERVE MEMBERS WITH FINANCIAL PRODUCTS AND SUPERIOR CUSTOMER SERVICE TO HELP THEM ACHIEVE THEIR FINANCIAL GOALS. 10 10 399 17 186751 0 0 0 65155021 72435710 2954331 4694468 704779 -275775 68814131 76854403 165495 253430 6401999 6231741 30574923 33539214 0 0 0 22231495 29989798 59373912 70014183 9440219 6840220 1604476418 1828708068 1477601475 1700920334 126874943 127787734 X BANKING THE CENTRAL COAST WAY-WE LIVE, WORK AND PLAY ON THE CENTRAL COAST JUST LIKE YOU DO. WHICH MEANS WE ALSO UNDERSTAND YOUR NEEDS WHEN IT COMES TO FINANCES. LET US PUT YOUR MONEY INTO THE CENTRAL COAST CONTEXT, RATHER THAN A COOKIE-CUTTER SOLUTION. A NATIONAL BANK DOESN'T UNDERSTAND WHAT IT'S TRULY LIKE HERE ON THE CENTRAL COAST BANK CONFIDENTLY. 0 0 SINCE 1958, COASTHILLS CREDIT UNION HAS BEEN IMPROVING THE FINANCIAL WELL BEING OF CENTRAL COAST FAMILIES WITH LOAN AND DEPOSIT PRODUCTS WITH LOWER FEES AND BETTER RATES THAN MOST BANKS. THE CREDIT UNION SERVES OVER 75,000 MEMBERS IN VENTURA, SANTA BARBARA, SAN LUIS OBISPO, MONTEREY, AND SANTA CRUZ COUNTIES. 0 0 0 0 0 0 0 0 0 1 1 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 18295 0 1 399 1 1 1 0 0 0 0 0 0 0 X 10 10 0 0 0 0 1 1 1 1 1 0 1 1 0 1 1 1 1 1 1 1 0 CA X DENNIS DURFEE 8057337600 1075 EAST BETTERAVIA SANTA MARIA CA 93454 PAUL C COOK CEO/PRESIDENT 40.00 X 663540 0 51165 BRUCE A ALTHEIDE CHIEF WEALTH OFFICER 40.00 X 564430 0 43771 JAMES LEDFORD CHIEF LENDING OFFICER 40.00 X 408500 0 67329 PAMELA RASMUSSEN CHIEF RISK OFFICER 40.00 X 421477 0 34445 DAVID L SALM CHIEF ADMINISTRATIVE OFFICER 40.00 X 376462 0 25020 CATHERINE AMUNDSON SVP BRANCHES & COMPLIANCE 40.00 X 350318 0 38568 TIMOTHY JENSEN EVP, CHIEF FINANCIAL OFFICER 40.00 0.10 X 360731 0 19636 DANIEL WALLS CHIEF CREDIT OFFICER 40.00 X 339099 0 32279 CHERYL GARNSEY SVP HUMAN RESOURCES 40.00 X 258055 0 28774 SCOTT OLSON SVP CHIEF DATA OFFICER 40.00 X 244480 0 40558 SCOTT T DOI SVP MEMBER EXPERIENCE 40.00 X 244818 0 29962 DIMITRI DRISTAS VP SENIOR COMMERICAL LENDING OFFICER 40.00 X 229931 0 34262 JAY PIMENTEL CHIEF LEGAL COUNSEL 40.00 X 173128 0 50065 KRISTOPHER L ANDREWS CHAIRMAN 6.00 X X 0 0 0 HOMERO CONTRERAS VICE CHAIRMAN 6.00 X X 0 0 0 JEREMY MORENO TREASURER 6.00 X X 0 0 0 LEE VOLKER COX TREASURER (THRU 03/2022) 6.00 X X 0 0 0 BERNARD E JONES SECRETARY 6.00 X X 0 0 0 R BRUCE COGGIN DIRECTOR 6.00 X 0 0 0 ARTHUR C SCHEITHAUR JR DIRECTOR 6.00 X 0 0 0 EARL MURRAY DIRECTOR 6.00 X 0 0 0 WILLIAM H ANDERS DIRECTOR 6.00 X 0 0 0 JEANNE PIPER DIRECTOR 6.00 X 0 0 0 HUGH J RAFFERTY DIRECTOR 6.00 X 0 0 0 4634969 0 495834 70 0 1 0 RK BUILDERS INC 7343 EL CAMINO REAL 116 ATASCADERO CA 93422 CONSTRUCTION LABOR 2746422 NCR CORPORATION 14181 COLLECTIONS CENTER DRIVE CHICAGO IL 60693 MAINTENANCE OF ATM AND ITMS 1803642 DIGITAL WEST PO BOX 31001-2714 PASADENA CA 91110 NETWORK SERVICE PROVIDER 1075522 JACK HENRY & ASSOCIATES PO BOX 609 MONETT MO 65708 CORE PROCESSING SOFTWARE & MAINTENANCE 852589 DIEBOLD NIXDORF PO BOX 643543 PITTSBURGH PA 15264 BRANCH VAULT MAINTENANCE 465983 30 INTEREST ON LOANS TO MEMBERS 522100 55296584 55296584 INTERCHANGE INCOME 522100 6638263 6638263 FEES AND CHARGES 522100 3937674 3815483 122191 COURTESY PAY PROGRAM FEES 522100 2624895 2624895 OTHER NONINTEREST INCOME 522100 2445278 2386543 58735 1493016 1487191 5825 72435710 5085345 5085345 593376 869151 -275775 -275775 -275775 17367 408244 -390877 -390877 -390877 76854403 72248959 186751 4418693 253430 6231741 3631077 20294924 1264934 6500176 1848103 381389 400891 2318254 448085 2913788 1860554 3041648 389962 151407 2649623 1609845 PROVISION FOR LOAN LOSS 5458675 PROCESSING EXPENSES 2837813 MISCELLANEOUS EXPENSES 2102921 REMOTE ACCESS FEES 1479246 1945697 70014183 12145074 24573820 169425700 24929270 2879250 2797656 21963865 19411321 1035923789 1363546123 1996838 2133431 65184674 21056059 41396869 44128615 71679713 50938175 220104237 254309309 26961083 41940348 1604476418 1828708068 8742328 11381660 46500000 214700000 1422359147 1474838674 1477601475 1700920334 X 0 0 0 0 126874943 127787734 126874943 127787734 1604476418 1828708068 6840220 -5927429 0 X 0 1 X 1 0 5047850 5047850 40333616 8067057 32266559 5455923 2960513 2495410 14320819 10028489 4292330 26466 26466 44128615 FHLB STOCK 6660100 C HELD-TO-MATURITY 247649209 C 254309309 MEMBERS' SHARE AND SAVINGS ACCOUNTS 1468727464 DEFERRED COMPENSATION LIABILITY 2226498 LEASE LIABILITY 3884712 1474838674 X 77723554 0 77723554 -869151 -869151 76854403 70883334 869151 869151 70014183 0 70014183 PART X, LINE 2: THE CREDIT UNION IS EXEMPT, UNDER INTERNAL REVENUE CODE 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 THAT HAVE RESULTED IN NO TAXES PAID FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021. 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, 2022 AND 2021. THE CREDIT UNION'S 2019 THROUGH 2021 TAX YEARS ARE OPEN FOR EXAMINATION BY FEDERAL AND STATE TAXING AUTHORITIES. PART XI, LINE 4B - OTHER ADJUSTMENTS: RENTAL EXPENSES MOVED FROM EXPENSES TO STATEMENT OF REVENUE -869,151. PART XII, LINE 2D - OTHER ADJUSTMENTS: RENTAL EXPENSES MOVED FROM EXPENSES TO STATEMENT OF REVENUE 869,151. 1 ALLAN HANCOCK COLLEGE FOUNDATION PO BOX 5170 SANTA MARA CA 93456 953143396 501(C)(3) 22250 0 UNRESTRICTED MARIAN REGIONAL MEDICAL CENTER FOUNDATION 1400 EAST CHURCH STREET SANTA MARIA CA 93454 953818027 501(C)(3) 15900 0 UNRESTRICTED VANDENBERG FIRST SERGEANT COUNCIL 6 CALIFORNIA BLVD VANDENBERG SFB CA 93437 311679606 15000 0 UNRESTRICTED GOOD SAMARITAN SHELTER 245 E INGER DRSUITE 103-B SANTA MARIA CA 93454 770133375 501(C)(3) 15000 0 UNRESTRICTED CHILDREN'S MIRACLE NETWORK 18400 VON KARMAN AVE STE 9 IRVINE CA 92612 870387205 501(C)(3) 12100 0 UNRESTRICTED CUESTA COLLEGE FOUNDATION PO BOX 8106 SAN LUIS OBISPO CA 93403 237225601 501(C)(3) 11500 0 UNRESTRICTED SOUTH COUNTY YOUTH COALITION PO BOX 371 ARROYO GRANDE CA 93421 770495870 501(C)(3) 10000 0 UNRESTRICTED SANTA MARIA PUBLIC AIRPORT DISTRICT 3217 TERMINAL DRIVE SANTA MARIA CA 93455 952283152 10000 0 UNRESTRICTED THE SALVATION ARMY 200 W COOK STREET SANTA MARIA CA 93454 941156347 501(C)(3) 10000 0 UNRESTRICTED COMMUNITY ACTION PARTNERSHIP OF SAN LUIS OBISPO 1030 SOUTHWOOD DR SAN LUIS OBISPO CA 93401 952410253 501(C)(3) 10000 0 UNRESTRICTED ELKS RECREATION INC 2325 SKYWAY DRIVE STE H1 SANTA MARIA CA 93455 952485566 501(C)(4) 8000 0 UNRESTRICTED SANTA MARIA YMCA 3400 SKYWAY DR SANTA MARIA CA 93455 952158363 501(C)(3) 7275 0 UNRESTRICTED DOWNTOWN FRIDAYS LLC 718 E CHAPEL STREET SANTA MARIA CA 93454 811454233 6000 0 UNRESTRICTED LOMPOC HOSPITAL FOUNDATION PO BOX 883 LOMPOC CA 93438 770262454 501(C)(3) 5500 0 UNRESTRICTED 10 4 PART I, LINE 2: COASTHILLS VERIFIES THE STATUS OF THE ORGANIZATION AS A REGISTERED 501(C)(3) OR OTHER TAX EXEMPT ORGANIZATION. OTHERWISE, WE IN GOOD FAITH ASSUME THAT THE ORGANIZATION IS USING THE FUNDS AS IT SAID IT WOULD, WHETHER IN ITS SPECIFIC REQUEST TO THE CREDIT UNION OR OTHER PUBLIC STATEMENTS. X 1 1 X X X X 0 1 0 PAUL C COOK CEO/PRESIDENT 476926 0 99071 0 87543 0 19006 0 32159 0 714705 0 0 0 BRUCE A ALTHEIDE CHIEF WEALTH OFFICER 50624 0 93472 0 420334 0 24700 0 19071 0 608201 0 0 0 JAMES LEDFORD CHIEF LENDING OFFICER 240338 0 92678 0 75484 0 34945 0 32384 0 475829 0 0 0 PAMELA RASMUSSEN CHIEF RISK OFFICER 310887 0 63384 0 47206 0 24700 0 9745 0 455922 0 0 0 DAVID L SALM CHIEF ADMINISTRATIVE OFFICER 225160 0 80879 0 70423 0 24091 0 929 0 401482 0 0 0 CATHERINE AMUNDSON SVP BRANCHES & COMPLIANCE 232332 0 69873 0 48113 0 24372 0 14196 0 388886 0 0 0 TIMOTHY JENSEN EVP, CHIEF FINANCIAL OFFICER 258691 0 51871 0 50169 0 19636 0 0 0 380367 0 0 0 DANIEL WALLS CHIEF CREDIT OFFICER 221781 0 52760 0 64558 0 13546 0 18733 0 371378 0 0 0 CHERYL GARNSEY SVP HUMAN RESOURCES 182930 0 35055 0 40070 0 20923 0 7851 0 286829 0 0 0 SCOTT OLSON SVP CHIEF DATA OFFICER 164065 0 39100 0 41315 0 21825 0 18733 0 285038 0 0 0 SCOTT T DOI SVP MEMBER EXPERIENCE 174197 0 37286 0 33335 0 20197 0 9765 0 274780 0 0 0 DIMITRI DRISTAS VP SENIOR COMMERICAL LENDING OFFICER 161274 0 33416 0 35241 0 20066 0 14196 0 264193 0 0 0 JAY PIMENTEL CHIEF LEGAL COUNSEL 108844 0 27597 0 36687 0 18531 0 31534 0 223193 0 0 0 PART I, LINE 1A WITH APPROVAL FROM MANAGER AND/OR CEO AND/OR CHAIRMAN OF THE BOARD OR SUPERVISORY COMMITTEE, SPOUSES AND/OR PARTNERS DO TRAVEL OCCASIONALLY WITH EMPLOYEES OR VOLUNTEERS. THIS BENEFIT IS INCLUDED ON THE VOLUNTEERS 1099 FORM. PART I, LINE 4B SPLIT DOLLAR LIFE INSURANCE: THE CREDIT UNION HAS ENTERED INTO COLLATERAL ASSIGNMENT SPLIT DOLLAR (CASD) ARRANGEMENTS WITH CERTAIN CURRENT AND FORMER MEMBERS OF THE EXECUTIVE MANAGEMENT TEAM. THE LOANS ARE COLLATERALIZED BY THE ASSIGNMENT OF THE POLICY DEATH BENEFITS AND CASH VALUES OF EACH RESPECTIVE LIFE INSURANCE POLICY. THE CASD POLICIES ARE RECORDED AS ASSETS ON THE CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION AS THE LOAN BALANCE PLUS ACCRUED INTEREST. THE CASD ARRANGEMENT FOR ONE INDIVIDUAL INCLUDES A FULL RECOURSE PROVISION WHEREBY THE CREDIT UNION CAN SEEK REPAYMENT OF PRINCIPAL AND INTEREST FROM THE EMPLOYEE DIRECTLY IF THERE IS A SHORTFALL. ALL OTHER CASD ARRANGEMENTS ALSO HAVE RECOURSE PROVISIONS WHERE THE CREDIT UNION CAN SEEK REPAYMENT OF ANY SHORTFALL FROM THE EMPLOYEE. ARTHUR C SCHEITHAUR JR BOARD MEMBER MORTGAGE X 225000 193458 0 0 1 ARTHUR C SCHEITHAUR JR BOARD MEMBER CREDIT CARD X 17000 1607 0 0 1 BERNARD JONES BOARD MEMBER CREDIT CARD X 25000 11260 0 0 1 BERNARD JONES BOARD MEMBER AUTO LOAN X 30000 5939 0 0 1 BERNARD JONES BOARD MEMBER LINE OF CREDIT X 500 34 0 0 1 BRUCE ALTHEIDE CHIEF WEALTH OFFICER MORTGAGE X 396000 315591 0 0 1 BRUCE ALTHEIDE CHIEF WEALTH OFFICER CREDIT CARD X 1061 1061 0 0 1 BRUCE ALTHEIDE CHIEF WEALTH OFFICER AUTO LOAN X 70223 28698 0 0 1 DANIEL WALLS CHIEF CREDIT OFFICER 1ST MORTGAGE X 383000 360439 0 0 1 DANIEL WALLS CHIEF CREDIT OFFICER SPLIT DOLLAR LOAN X 2435000 2435000 0 1 1 DANIEL WALLS CHIEF CREDIT OFFICER 1ST MORTGAGE X 688000 641257 0 0 1 DAVID L SALM CHIEF ADMINISTRATIVE OFFICER MORTGAGE X 422000 394950 0 0 1 JAMES LEDFORD CHIEF LENDING OFFICER AUTO LOAN X 35595 35595 0 0 1 JAMES LEDFORD CHIEF LENDING OFFICER CREDIT CARD X 30000 6 0 0 1 JAMES LEDFORD CHIEF LENDING OFFICER AUTO LOAN X 49480 35354 0 0 1 PAMELA RASSMUSSEN CHIEF RISK OFFICER SPLIT DOLLAR LOAN X 2857000 2857000 0 1 1 PAUL C COOK CEO/PRESIDENT 1ST MORTGAGE X 660000 620007 0 0 1 PAUL C COOK CEO/PRESIDENT 2ND MORTGAGE X 80000 78195 0 0 1 PAUL COOK CEO/PRESIDENT SPLIT DOLLAR LOAN X 10168800 10168800 0 1 1 R BRUCE COGGIN BOARD MEMBER AUTO LOAN X 69702 52016 0 0 1 TIMOTHY JENSEN EVP, CHIEF FINANCIAL OFFICER CREDIT CARD X 30000 6362 0 0 1 TIMOTHY JENSEN EVP, CHIEF FINANCIAL OFFICER AUTO LOAN X 40052 20517 0 0 1 TIMOTHY JENSEN EVP, CHIEF FINANCIAL OFFICER 2ND MORTGAGE X 250000 248060 0 0 1 TIMOTHY JENSEN EVP, CHIEF FINANCIAL OFFICER MORTGAGE X 960000 900115 0 0 1 19411321 FORM 990, PART VI, SECTION A, LINE 1A THE CREDIT UNION HAS AN EXECUTIVE COMMITTEE THAT THE BOARD OF DIRECTORS APPOINT TO ACT AS EXPRESSLY APPROVED BY THE BOARD OF DIRECTORS IN ACCORDANCE WITH APPLICABLE LAWS, RULES AND REGULATIONS. FORM 990, PART VI, SECTION A, LINE 6 PARTICIPATION IN THIS CREDIT UNION IS LIMITED TO THOSE WHO QUALIFY FOR MEMBERSHIP AS DEFINED IN THE CREDIT UNION'S CHARTER AND BYLAWS. THIS GENERALLY CONSISTS OF INDIVIDUALS WHO LIVE, WORK, WORSHIP, OR GO TO SCHOOL WITHIN THE COUNTIES OF SANTA CRUZ, MONTEREY, SAN LUIS OBISPO, SANTA BARBARA OR VENTURA, CALIFORNIA, AS WELL AS ANY AND ALL BUSINESSES, CORPORATIONS, AND OTHER LEGAL ENTITIES LOCATED WITHIN THE COUNTIES OF SANTA CRUZ, MONTEREY, SAN LUIS OBISPO, SANTA BARBARA OR VENTURA, CALIFORNIA, WHO HAVE PETITIONED FOR MEMBERSHIP. 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 ALL HOLDERS OF BASIC SHARES ARE ALLOWED TO VOTE IN ANNUAL ELECTION FOR MEMBERS OF THE BOARD OF DIRECTORS AND SUPERVISORY COMMITTEE. FORM 990, PART VI, SECTION A, LINE 7B MATTERS CONCERNING THE ALLOWED NUMBER OF DIRECTORS, ABILITY OF THE MEMBERSHIP TO VOTE BY MAIL, OR DISSOLUTION OF THE CREDIT UNION REQUIRES APPROVAL 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 RETURN IS FILED WITH THE IRS. FORM 990, PART VI, SECTION B, LINE 12C LOANS TO OFFICERS, DIRECTORS, AND KEY EMPLOYEES ARE REPORTED QUARTERLY TO THE NCUA AND AGGREGATED BY SOCIAL SECURITY NUMBER. THE CREDIT UNION VETS PROSPECTIVE BOARD AND SUPERVISORY COMMITTEE MEMBERS FOR RELATIVES WHO ARE CREDIT UNION EMPLOYEES PRIOR TO BE ALLOWED ON THE BALLOT FOR ELECTION. WE ROUTINELY MONITOR SHARE AND LOAN ACCOUNTS FOR EMPLOYEES AND VOLUNTEERS. THE PARTIES AND PRINCIPALS MENTIONED IN CONTRACTS ARE REVIEWED FOR KNOWN RELATIONSHIPS WITH THE CREDIT UNION PRIOR TO SIGNING. PER THE CREDIT UNION'S CONFLICT OF INTEREST POLICY: A. SECTION 1205 BOARD OF DIRECTORS - 1D. LIMITATIONS I. MAY NOT BE COMPENSATED AS A DIRECTOR. II. NO PERSON MAY SERVE AS A VOTING MEMBER ON THE BOARD OF DIRECTORS IF THEIR IMMEDIATE FAMILY MEMBER IS A PAID COASTHILLS EMPLOYEE. III. MAY NOT SERVE AS A MEMBER OF THE BOARD OF DIRECTORS AND SUPERVISORY COMMITTEE AT THE SAME TIME. B. SECTION 1205 LOAN OFFICERS SECTION - 7C. LIMITATIONS I. LOAN OFFICERS MAY NOT DISBURSE FUNDS FOR LOANS THEY APPROVE II. LOAN OFFICERS MAY NOT APPROVE LOANS FOR HIS/HER IMMEDIATE FAMILY OR FOR ANY INDIVIDUAL WHOSE RELATIONSHIP WITH THE LOAN OFFICER REPRESENTS A CONFLICT OF INTEREST. IMMEDIATE FAMILY IS DEFINED IN SECTION 1150. C. SECTION 1205 NOMINATING COMMITTEE - 10C. QUALIFICATIONS. ANY MEMBER 18 OR OLDER MAY SERVE AS A BOARD MEMBER OR SUPERVISORY COMMITTEE MEMBER SUBJECT TO THE APPROVAL OF COASTHILLS BONDING COMPANY. HOWEVER, NO PERSON SHALL SERVE AS A DIRECTOR, OFFICER, COMMITTEE MEMBER, OR EMPLOYEE OF THE CREDIT UNION WHO HAS BEEN CONVICTED OF ANY CRIMINAL OFFENSE INVOLVING DISHONESTY OR BREACH OF TRUST. THE NOMINATING COMMITTEE IS ALSO REQUIRED TO CONSIDER THE FOLLOWING CRITERIA FOR ELIGIBILITY TO SERVE AS A BOARD MEMBER OR SUPERVISORY COMMITTEE MEMBER. I. NO NEGATIVE SHARES II. NO DELINQUENCY III. THE MEMBER HAS NOT FILED A LAWSUIT AGAINST COASTHILLS; HAS NOT THREATENED TO FILE A LAWSUIT AGAINST COASTHILLS; OR HAS SHARED AN UNFILED LAWSUIT. IV. NO CONFLICT OF INTEREST EXISTS THAT WOULD EFFECTIVELY PREVENT THE CANDIDATE FROM EXERCISING INDEPENDENT JUDGEMENT AND ACTING IN THE BEST INTEREST OF COASTHILLS. V. NO FORMER EMPLOYEE OF COASTHILLS CREDIT UNION CAN SERVE AS A BOARD OR SUPERVISORY COMMITTEE MEMBER UNTIL 3 YEARS HAVE PASSED FROM THEIR LAST DAY OF EMPLOYMENT. FORM 990, PART VI, SECTION B, LINE 15 THE PROCESS FOR DETERMINING COMPENSATION OF THE CEO AND KEY MANAGEMENT OFFICIALS INCLUDES EXECUTIVE COMPENSATION STUDIES, SOMETIMES MORE THAN ONE IN A GIVEN YEAR FROM DIFFERENT PROVIDERS. MCLAGAN, CUES, AND ALLEN DICK HAVE ALL PROVIDED RECENT CEO AND EXECUTIVE MANAGEMENT COMPENSATION INFORMATION TO THE CU. DATA RELATED TO THE CEO IS PRESENTED TO THE BOARD VIA THE BOARD HUMAN RESOURCES COMMITTEE. THESE DECISIONS ARE RECORDED IN THE BOARD EXECUTIVE COMMITTEE MINUTES AND CONFIRMED BY THE ENTIRE BOARD EXECUTIVE COMMITTEE. A MANAGEMENT COMPENSATION COMMITTEE THAT INCLUDES THE SVP/HR AS CHAIR AND EXECUTIVE TEAM MEMBERS VETS AND MAKES RECOMMENDATIONS TO THE EXECUTIVE TEAM FOR GENERAL EMPLOYEE COMPENSATION MATTERS, INCLUDING OFFICER COMPENSATION. IN CERTAIN CASES THE COMPENSATION COMMITTEE MAY MAKE DECISIONS AND REPORT THOSE TO THE EXECUTIVE TEAM, ESPECIALLY FOR ITEMS NOT OF A MATERIAL NATURE. THE EXECUTIVE TEAM IS THE MAIN INFLUENCE FOR DECISIONS WITH BROAD OR ORGANIZATION-WIDE IMPACT. AN ANNUAL PERFORMANCE REVIEW PROCESS IS IN PLACE THAT IS DOCUMENTED BY HR. ANNUALLY IT IS DECIDED IF MERIT AND/OR COST OF LIVING INCREASES WILL BE APPLIED. THE CU TAKES ADVANTAGE OF SALARY SURVEYS IN IT'S DECISIONS ON SALARY RANGES, COMPARATIOS, ETC. THE CURRENT SURVEY PROVIDER IS MCLAGAN. THIS DECISION IS THEN DOCUMENTED IN THE EMPLOYEE'S PERSONNEL FILE. FORM 990, PART VI, SECTION C, LINE 19 THE GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY AND FINANCIAL STATEMENTS ARE AVAILABLE UPON REQUEST. COASTHILLS WEALTH MANAGEMENT LLC 1075 E BETTERAVIA SANTA MARIA CA 93454 861097244 MANAGEMENT OF MEMBER INVESTMENT ACCOUNTS CA 0 572 COASTHILLS CREDIT UNION