2022-10-20T15:13:26-05:00 2021-12-31 910189318 MOSS ADAMS LLP 21700 OXNARD ST STE 300 WOODLAND HILLS CA 91367 990 2021-01-01 860148533 AMERICAN SOUTHWEST CREDIT UNION AMER 5204591860 PO BOX 370 SIERRA VISTA AZ 85636 JAY WILLIAMSON PRESIDENT & CEO 5204591860 2022-10-20 1 JAY WILLIAMSON 999009999 LAUREN A HAVERLOCK P00545829 8185771900 2022-10-20 3 AAL1 IAL1 2021 2022-09-23 18:48:47Z X JAY WILLIAMSON PO BOX 370 SIERRA VISTA AZ 85636 12634219 0 X WWW.ASCU.ORG X 2007 AZ TO PROVIDE HIGH QUALITY FINANCIAL SERVICES TO CREDIT UNION MEMBERS. 8 8 87 10 152265 61928 0 10093244 10453437 1580312 1211580 0 11673556 11665017 56050 20250 0 3759206 3891293 0 0 5426952 5070422 9242208 8981965 2431348 2683052 294368400 342017397 268986491 313952436 25381909 28064961 X TO PROVIDE QUALITY FINANCIAL PRODUCTS AND SERVICES TO CREDIT UNION MEMBERS. 0 0 ASCU SERVES NEARLY 29,300 MEMBER-OWNERS IN A RURAL SETTING THAT IS SPREAD OUT OVER FIVE SOUTHERN ARIZONA COUNTIES. THE SERVICE AREA IS MOSTLY LOW INCOME DESIGNATED AND FINANCIALLY UNDERSERVED. ASCU HAS SEVERAL LOCATIONS AND ENDEAVORS TO EXTEND FULL SERVICES IN THESE HIGHLY RURAL, BORDER COMMUNITIES. ASCU HAS SUCCESSFULLY BEEN IN THE INDIRECT AUTO LENDING BUSINESS FOR 15 YEARS. HOWEVER, DUE TO ENCROACHING OUT-OF-STATE COMPETITION IN THE AREAS THAT THE CU SERVES, ASCU HAS TURNED ITS FOCUS TO A CENTRALIZED LENDING MODEL BY CONCENTRATING ON ITS EXISTING MEMBERSHIP. CU SALES SPECIALISTS NOW SELL ALL FACETS OF A LOAN, INCLUDING THE REFINANCING OF LOANS THAT ITS CURRENT MEMBERSHIP MAY HOLD AT OTHER FINANCIAL INSTITUTIONS. AS A RESULT, DIRECT LENDING HAS NOW OVERTAKEN INDIRECT LENDING VOLUME AS A MAJOR PORTION OF THE CU'S BALANCE SHEET. THE VOLUME OF VEHICLE LOANS (BOTH DIRECT AND INDIRECT) REPRESENTS HALF OF THE ENTIRE LOAN PORTFOLIO. THE GREATEST SUCCESS OF THE PROGRAM RESTS NOT ONLY IN THE DEEP AVAILABILITY TO OUR MEMBER-OWNERS, BUT ALSO IN THE FACT THAT DELINQUENCIES HAVE BEEN LOW AND MANAGEABLE. THESE PROGRAMS ALSO BENEFIT THE CONSUMER BY PROVIDING AN ALTERNATE LENDING SOURCE TO DEALER AND BANK FINANCING. THESE CONSUMERS QUICKLY FIND THEMSELVES CREDIT UNION MEMBERS WHO NOW HAVE COMPETITIVE RATES OF INTEREST. IMPEDING COMPETITION, BOTH LOCALLY AND FROM NEARBY LARGER MUNICIPALITIES HAS CAUSED THE CREDIT UNION TO FOCUS ON DIRECT, CENTRALIZED LENDING WITHIN ITS EXISTING AND POTENTIAL MEMBERSHIP BASE. WHILE INDIRECT AUTO LENDING REMAINS A VALUABLE SERVICE TO ALL MEMBERS, ASCU IS NOW CONCENTRATING ON MAKING DIRECT LOANS THROUGH REFERRALS, WALK-IN'S, AND DIRECT MAILINGS TO TARGETED SEGMENTS. ASCU PRIDES ITSELF IN PROMOTING THRIFT TO THE COMMUNITY AS WELL AS ITS MEMBER-OWNERS. CONSISTENT MARKET LEVEL DEPOSIT RATES ARE AVAILABLE TO ALL DEPOSITORS LARGE AND SMALL. MEMBER-OWNERS HAVE A VARIETY OF AVENUES TO MOVE THEIR MONEY AROUND, INCLUDING DIRECT DEPOSIT, PAYROLL DEDUCTION, ACH ORIGINATION, WIRE TRANSFERS, MOBILE BANKING AND OF COURSE, HOME BANKING SERVICES AND CONVENIENT LOCATIONS FOR WALK-IN TRANSACTIONS. THE MORE SERIOUS INVESTORS CAN TAKE ADVANTAGE OF CERTIFICATES OF DEPOSIT, MONEY MARKET ACCOUNT PROGRAMS, AND IRAS. MEMBER BUSINESS (COMMERCIAL) LENDING IS NOW A LARGE REPRESENTATION OF THE CREDIT UNION'S BALANCE SHEET. REPUTABLE LOCAL BUSINESSES AND CONTRACTORS NOW HAVE A LENDING AVENUE THAT OFFERS COMPETITIVE RATES AND TERMS. BUSINESSES ENJOY HAVING A LOCAL FINANCIAL INSTITUTION WHERE THE DECISIONS ARE MADE HERE AND NOT LEFT UP TO A BIG-BANK CORPORATION. SINCE THE PROGRAM'S INCEPTION IN 2014, THE CREDIT UNION HAS EXPERIENCED NO REPORTABLE DELINQUENCY AND ONLY TWO LOW-DOLLAR CHARGE-OFF'S IN ITS MEMBER BUSINESS LENDING PORTFOLIO. ASCU WAS ALSO FORTUNATE TO BE ABLE TO PROVIDE PPP (PAYMENT PROTECTION PROGRAM) LOANS TO ITS BUSINESS MEMBERS. IN 2020-2021, ASCU FUNDED APPX $8.1 MILLION IN PPP LOANS TO ITS BUSINESS MEMBERSHIP. MORTGAGE LENDING ALSO REPRESENTS A SIZABLE PORTION OF THE CU'S BALANCE SHEET. ASCU'S MEMBERS BENEFIT FROM COMPETITIVE RATES AND THE ASSURANCE KNOWING THAT THEIR LOAN IS HELD LOCALLY AND NOT SOLD TO A LARGE BANK WHERE QUALITY SERVICE MAY NOT BE THE FOCUS. 0 0 0 0 0 0 0 0 0 1 1 0 0 1 0 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 1 3368 0 1 87 1 1 1 0 0 0 0 0 0 0 0 0 X 8 8 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 X LAUREN PADGETT 5204523024 PO BOX 370 SIERRA VISTA AZ 85636 MARY HYDER BOARD VICE CHAIR 1.00 X X 0 0 0 DENNY SKELTON SUPERVISORY COMMITTEE 1.00 X 0 0 0 JOHN BLACK BOARD SECRETARY (THRU 3/1/21) 1.00 X X 0 0 0 JOSE BARRERAS BOARD DIRECTOR 1.00 X 0 0 0 MIGNONNE HOLLIS BOARD DIRECTOR 1.00 X 0 0 0 CHARLES BAKER SUPERVISORY COMMITTEE CHAIR 1.00 X 0 0 0 T BLAKE BURGESS BOARD DIRECTOR 1.00 X 0 0 0 CURTISS PETERSON BOARD TREASURER 1.00 X X 0 0 0 LES ORCHEKOWSKY BOARD SECRETARY 1.00 X X 0 0 0 GILBERT WHITE BOARD CHAIRMAN (THRU 7/1/21) 1.00 X X 0 0 0 ROBERT EVANS SUPERVISORY COMMITTEE (THRU 3/1/21) 1.00 X 0 0 0 MICHAEL SQUIRES SUPERVISORY COMMITTEE (THRU 3/1/21) 1.00 X 0 0 0 JAY WILLIAMSON PRESIDENT/CEO 40.00 X 232809 0 24007 LAUREN PADGETT EXECUTIVE VICE PRESIDENT/C 40.00 X 134652 0 11603 RONALD CURTIS EXECUTIVE VICE PRESIDENT/M 40.00 X 117028 0 10948 BRAD RICHARDSON VICE PRESIDENT MORTGAGE AND IT 40.00 X 144248 0 18732 628737 0 65290 4 0 1 0 PSCU 560 CARILLON PARKWAY ST PETERSBURG FL 33716 VISA DEBIT/CREDIT PROCESSOR 569050 JACK HENRY AND ASSOCIATES 663 W HIGHWAY 60 MONETT MO 65708 CORE PROCESSOR/DATA SERVICES 274919 VISA USA PO BOX 194607 SAN FRANCISCO CA 94119 VISA DEBIT/CREDIT SERVICES 243365 DIVIDEND CONSTRUCTION PO BOX 2232 SIERRA VISTA AZ 85636 BUILDING CONTRACTOR 172915 INNOVATIVE COMPUTING 26722 HARTFORD GROVE LANE KATY TX 77494 IT CONSULTANTS 168835 6 INTEREST ON LOANS 525990 7253212 7253212 OTHER OPERATING INCOME 525990 2300089 2147824 152265 FEES AND CHARGES 525990 658038 658038 INSURANCE COMMISSIONS 525990 242098 242098 10453437 1140637 1140637 891583 148562 838995 130207 52588 18355 70943 70943 11665017 11441809 152265 70943 20250 507713 2722400 100513 320045 240622 30343 2826 44500 21900 204080 361465 680283 301436 15039 36460 690132 20248 518246 62855 OPERATING EXPENSES 1217592 PROVISION FOR LOAN LOSS 383728 MECHANICAL REPAIR CVG P 144364 FED/STATE UBI TAX EXP 9415 325510 8981965 2509024 2158638 41198900 43017084 -349891 -188439 2720159 2657179 166004045 172711958 230675 218769 14413865 6554818 6331175 7859047 67274327 105233600 8449986 8349561 294368400 342017397 977687 439069 268008804 313513367 268986491 313952436 X 0 0 0 0 25381909 28064961 25381909 28064961 294368400 342017397 2683052 0 X 0 0 0 978833 978833 8690255 2613325 6076930 141002 140991 11 1658403 1035926 622477 2945372 2764576 180796 7859047 AVAILABLE-FOR-SALE SECURITIES 52723548 C HELD-TO-MATURITY SECURITIES 52510052 C 105233600 STATUTORY RESERVES 312330608 OTHER LIABILITIES 1182759 313513367 1 EASTERN ARIZONA COLLEGE FOUNDATION 615 N STADIUM AVE THATCHER AZ 85552 237031373 501 C(3) 10000 0 SCHOLARSHIP CONTRIBUTIONS TO BE MADE TO THOSE STUDENTS WHO ARE UNDERSERVED 1 0 PART I, LINE 2: ALL REQUESTS ARE FUNNELED THROUGH THE PRESIDENT/CEO FOR APPROVAL. ANY REQUESTS EXCEEDING $5,000 IS SUBMITTED TO THE BOARD OF DIRECTORS FOR APPROVAL. THE ACCOUNTING DEPT. LOGS ANY REQUESTS ON AN EXPENSE SHEET. AFTER THE FUNDS ARE DISBURSED, CHECK RECEIPTS AND ANY DOCUMENTATION IS ATTACHED TO THE REQUEST AND FILED. ALL DISBURSEMENTS ARE SECURELY KEPT FOR 7 YEARS. X X 0 0 0 JAY WILLIAMSON PRESIDENT/CEO 232809 0 0 0 0 0 11987 0 12020 0 256816 0 0 0 BRAD RICHARDSON VICE PRESIDENT MORTGAGE AND IT 144248 0 0 0 0 0 7212 0 11520 0 162980 0 0 0 BRIAN J BARKDULL FORMER PRESIDENT/CEO SPLIT-DOLLAR PLAN X 2414560 2657179 0 1 1 2657179 SCHEDULE L, PART II SUPPLEMENTAL INFORMATION: THE ORGANIZATION PROVIDES SUPPLEMENTAL RETIREMENT BENEFITS THROUGH AN ALTERNATIVE FUNDING ARRANGEMENT THE IRS CALLS "COLLATERAL ASSIGNMENT SPLIT-DOLLAR" ("CASD"). ALTHOUGH THE IRS REQUIRES REPORTING IN THE LOAN SECTION OF SCHEDULE L, CASD IS NOT AN ACTUAL LOAN, AS NO FUNDS ARE TRANSFERRED TO THE EXECUTIVE. RATHER, THE "LOAN" TREATMENT APPLIES BECAUSE AFTER THE EXECUTIVE HAS RECEIVED RETIREMENT BENEFITS, THE ORGANIZATION RECOVERS ALL OF ITS OUTLAYS PLUS INTEREST, ACCRUED AT 1.86%, UPON THE EXECUTIVE'S DEATH.UPON THE EXECUTIVE'S DEATH, THE POLICIES' DEATH PROCEEDS ARE FIRST USED TO REPAY THE AMOUNT DUE TO THE ORGANIZATION (INCLUDING ACCRUED INTEREST). THE EXECUTIVE'S BENEFICIARY THEN RECEIVES ANY UNREALIZED RETIREMENT BENEFITS. FORM 990, PART VI, SECTION A, LINE 6 EACH OF THE AMERICAN SOUTHWEST CU'S 29,300 MEMBERS HAS A VOTING RIGHT WHEN THEY OBTAIN A SHARE IN THE CU WITH THEIR MEMBERSHIP. EACH HAS THE RIGHT TO APPOINT MEMBERS TO THE CU'S BOARD OF DIRECTORS WHEN POSITION BECOME AVAILABLE. FORM 990, PART VI, SECTION A, LINE 7A THE CREDIT UNION'S MEMBERS HAVE RIGHTS TO ELECT THE MEMBERS OF THE GOVERNING BODY. THE CREDIT UNION'S MEMBERS ALSO RECEIVE A SHARE OF THE ORGANIZATION'S PROFITS IN THE FORM OF CASH DIVIDENDS. FORM 990, PART VI, SECTION A, LINE 7B EACH OF THE AMERICAN SOUTHWEST CU'S 29,300 MEMBERS HAVE A VOTING RIGHT WHEN THEY OBTAIN A SHARE IN THE CU WITH THEIR MEMBERSHIP. EACH HAS THE RIGHT TO APPOINT MEMBERS TO THE CU'S BOARD OF DIRECTORS WHEN POSITIONS BECOME AVAILABLE. MEMBERS ALSO HAVE THE AUTHORITY TO VOTE ON MEASURES SUCH AS THE SCOPE OF MEMBERSHIP, SERVICE AREAS, AND MERGERS. FORM 990, PART VI, SECTION B, LINE 11B ASCU COMPARES THE DOCUMENTATION PROVIDED TO THE TAX FILING SERVICE WITH THE INFORMATION CONTAINED IN THE FORM 990 PRIOR TO ITS FILING. THE CEO AND EXECUTIVE VICE PRESIDENT REVIEW THE DOCUMENTATION FOR ACCURACY PRIOR TO ITS FILING. THE DOCUMENTS ARE ALSO REVIEWED BY THE CREDIT UNION'S BOARD OF DIRECTORS AFTER PRESENTATION AND EXPLANATION BY EXECUTIVE STAFF PRIOR TO THEIR FILING. FORM 990, PART VI, SECTION B, LINE 12C THE SUPERVISORY COMMITTEE IS TASKED WITH THE RESPONSIBILITY OF REGULARLY MONITORING FOR COMPLIANCE AND THE REPORT TO THE BOARD OF DIRECTORS, NCUA, OR STATE OF ARIZONA, IF APPLICABLE. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF DIRECTORS MEETS ANNUALLY TO EVALUATE THE CEO AND USES INDUSTRY COMPENSATION AND BENEFIT SURVEYS TO ASSIST THEM IN ARRIVING AT A FAIR COMPENSATION LEVEL. THIS IS DONE IN A CLOSED SESSION WITHOUT THE CEO PRESENT. THE EVALUATION PROCESS IS TIED TO THE CU'S 3-YR STRATEGIC PLAN. THE CEO USES TWO NATIONAL COMPENSATION AND BENEFIT SOURCES WHEN DETERMINING THE PAY FOR ALL STAFF. THIS IS ALSO TIED TO SEMI-ANNUAL EVALUATIONS OF EMPLOYEES. FORM 990, PART VI, SECTION C, LINE 19 THERE IS NO POLICY RESTRICTING THE PUBLIC FROM VIEWING THE GOVERNING DOCUMENTS AND CONFLICT OF INTEREST POLICIES. ALL DOCUMENTS ARE AVAILABLE UPON REQUEST.