2021-05-13T22:41:51-05:00 2020-12-31 410746749 CLIFTONLARSONALLEN LLP 20 EAST THOMAS ROAD SUITE 2300 PHOENIX AZ 85012 990 2020-01-01 741200165 VELOCITY CREDIT UNION VELO 5124697000 POST OFFICE BOX 1089 AUSTIN TX 787671089 LISA BACK CFO 5124697000 2021-04-28 1 LISA BACK 999009999 MARY C GREEN P00447183 6022662248 2021-04-28 0 AAL1 IAL1 2020 2022-09-23 18:48:47Z DEBBIE MITCHELL POST OFFICE BOX 1089 AUSTIN TX 787671089 68089084 0 X WWW.VELOCITYCU.COM X 1947 TX TO PROVIDE THE BEST PROGRAMS TO MEET THE FINANCIAL NEEDS OF OUR MEMBERS. 8 8 263 0 52155 0 0 0 47682219 43106876 3036858 2600804 821209 670323 51540286 46378003 47000 42000 4380324 3992684 17652320 19345359 0 0 0 21212410 22563412 43292054 45943455 8248232 434548 849082564 968954481 741238299 859101072 107844265 109853409 X VELOCITY CREDIT UNION IS A FINANCIAL INSTITUTION FORMED BY AN ORGANIZED GROUP OF PEOPLE WITH A COMMON BOND. MEMBERS OF THE CREDIT UNION POOL THEIR ASSETS TO PROVIDE LOANS AND OTHER FINANCIAL SERVICES TO EACH OTHER. THESE FACTORS ALLOW US TO PAY DIVIDENDS TO OUR MEMBERS AND OFFER OUR MEMBERS LOWER LOAN RATES, HIGHER SAVINGS RATES AND FEWER SERVICE FEES. 0 0 VELOCITY CREDIT UNION PROVIDES LOANS TO MEMBERS AT LOWER INTEREST RATES, ACCEPTS DEPOSITS, AND PAYS HIGHER DIVIDEND RATES.2020: 1) 34,547 LOANS TO MEMBERS AND MEMBER BUSINESSES FOR A TOTAL OF $591MM 2) ORIGINATED 7,835 LOANS IN 2020 WITH A BALANCE OF $290MM, AND 3) SERVICED 89,955 MEMBERS WITH DEPOSITS OF $840MM. 0 0 0 0 0 0 0 0 0 1 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 1 0 0 0 0 0 0 0 0 1 0 0 0 1 15805 0 263 1 1 1 0 0 0 0 0 0 0 X 8 8 0 0 0 0 1 1 1 1 1 0 1 1 1 1 1 1 1 1 1 1 0 X LISA BACK 5124697000 4515 SETON CENTER PARKWAY STE 165 AUSTIN TX 78759 DEBBIE MITCHELL PRESIDENT/CEO 40.00 X 909301 0 20937 LISA BACK EVP/CFO 40.00 X 326129 0 21338 JACK JORDAN EVP/COO 40.00 X 327635 0 18578 DANIEL PENBERG SR. VP IT 40.00 X 211898 0 16049 BARBARA CAROL CAIN SR. VICE-PRES. MARKETING 40.00 X 186627 0 19435 FELIX GONZALEZ SR. VP LENDING 40.00 X 181495 0 21653 CHERI HALL SR. VICE-PRES. HUMAN RESOURCE 40.00 X 185402 0 15800 KIM SCHAEFER SVP MEMBER SERVICES 40.00 X 155072 0 13102 THOMAS MATTHEWS 2ND VICE CHAIR 2.00 X X 13980 0 0 JAMES CHAPMAN CHAIRPERSON 2.00 X X 13400 0 0 KASHA BARTHOLOMEW 1ST VICE CHAIR 2.00 X X 12100 0 0 XAVIER ZARATE DIRECTOR 2.00 X 12100 0 0 JOHN CHOMOUT SECRETARY/TREASURER 2.00 X X 10600 0 0 JOHN ROSS DIRECTOR 2.00 X 10600 0 0 MARY PAREDES DIRECTOR 2.00 X 10600 0 0 LINDSEY J PUTMAN DIRECTOR 2.00 X 9100 0 0 CARL LYNCH DIRECTOR 2.00 X 2250 0 0 2578289 0 146892 22 0 1 0 AUSTIN CANYON CORPORATION 2613 BUELL AVE SUITE 100 AUSTIN TX 78757 CONSTRUCTION SERVICES 5354764 FIS PO BOX 4535 CAROL STREAM IL 601974535 CARD PROCESSING 1495076 MASTERCARD PO BOX 4521 CAROL STREAM IL 601974521 CARD ISSUER 1239345 Q2 SOFTWARE PO BOX 205970 DALLAS TX 753205970 ONLINE BANKING SERVICES 1036885 PSCU 560 CARILLON PKWY ST PETERSBURG FL 33716 CARD SERVICES PROCESSING 1024314 34 LOAN INTEREST 522100 31052031 31052031 FEE INCOME 522100 5865384 5865384 INTERCHANGE INCOME 522100 5336621 5336621 OTHER OPERATING INCOME 522100 800685 800685 NON MEMBER ATM FEE INCOME 522100 52155 52155 43106876 2224312 2224312 2700463 2447084 253379 253379 253379 19581647 58842 19232316 31681 349331 27161 376492 376492 OTHER INCOME 900099 416944 416944 416944 46378003 43471665 52155 2854183 42000 3992684 1718647 12300064 2734461 1619099 973088 131186 128197 2245679 749641 2624090 1716748 1531554 83538 140009 1721230 110136 PROVISION FOR LOSSES 6166476 MEMBER DEMAND DEPOSIT S 3329169 LOAN SERVICING 1521944 MISCELLANEOUS EXPENSE 215667 148148 45943455 5443826 6338453 123548008 120566073 154226 1877929 3350227 3425480 585860710 578319020 1762550 1891369 67164122 11502557 50364269 55661565 54476878 178539797 976400 1588900 23145470 20745895 849082564 968954481 5799027 6655648 2075910 2279555 10000000 10000000 723363362 840165869 741238299 859101072 X 0 0 0 0 107844265 109853409 107844265 109853409 849082564 968954481 X 434548 1909331 -334735 X X 0 0 0 10652174 10652174 34226960 4321931 29905029 8970853 950636 8020217 9279392 5921350 3358042 4034743 308640 3726103 55661565 MEMBERS' SHARE AND SAVINGS ACCOUNT 839935516 PENSION PLAN LIABILITY 230353 840165869 1 SCHOLARSHIPS 12 42000 PART I, LINE 2: THE CREDIT UNION HAS A POLICY WHICH ESTABLISHES GENERAL GUIDELINES, PROCEDURES AND REQUIREMENTS USED IN ADMINISTERING THE SCHOLARSHIP PROGRAM. THIS POLICY ESTABLISHES GUIDELINES FOR SELECTION OF A SCHOLARSHIP RECIPIENT WHO MAY RECEIVE MONETARY ASSISTANCE UNDER THE TERMS OF THIS POLICY OVER A PERIOD OF TIME OF FOUR OR MORE YEARS. IN GENERAL, SCHOLARSHIPS SHALL CONSIST OF A FIRST YEAR CASH AWARD TO ALL NEWLY CHOSEN RECIPIENTS, FOLLOWED BY ADDITIONAL YEARLY CASH AWARDS IN AMOUNTS EQUAL TO OR LESS THAN THE FIRST YEAR AWARD, PROVIDED THAT ALL OTHER FUNDING AND ELIGIBILITY REQUIREMENTS OF THIS POLICY ARE MET. X X 1 1 X X 0 1 0 DEBBIE MITCHELL PRESIDENT/CEO 492770 0 14664 0 401867 0 11400 0 9537 0 930238 0 387340 0 LISA BACK EVP/CFO 309093 0 9236 0 7800 0 11400 0 9938 0 347467 0 0 0 JACK JORDAN EVP/COO 310599 0 9236 0 7800 0 9947 0 8631 0 346213 0 0 0 DANIEL PENBERG SR. VP IT 206313 0 5585 0 0 0 7418 0 8631 0 227947 0 0 0 BARBARA CAROL CAIN SR. VICE-PRES. MARKETING 181102 0 5525 0 0 0 7169 0 12266 0 206062 0 0 0 FELIX GONZALEZ SR. VP LENDING 179705 0 1790 0 0 0 7162 0 14491 0 203148 0 0 0 CHERI HALL SR. VICE-PRES. HUMAN RESOURCE 179877 0 5525 0 0 0 7169 0 8631 0 201202 0 0 0 KIM SCHAEFER SVP MEMBER SERVICES 155072 0 0 0 0 0 5012 0 8090 0 168174 0 0 0 PART I, LINE 1A THE USE OF FIRST CLASS IS APPROVED FOR OUR BOARD OFFICIALS ONLY FOR FLIGHTS OVER TWO HOURS IN DURATION. ECONOMY CLASS IS ENCOURAGED. PART I, LINE 4B DEBORAH MITCHELL PARTICIPATES IN A 457(F) SERP PLAN. DEBORAH RECEIVED A DISTRIBUTION OF $387,340 DURING 2020. THERE WERE NO CONTRIBUTIONS DURING 2020. LISA BACK AND JACK JORDAN PARTICIPATE IN A LOAN REGIME SPLIT DOLLAR LIFE INSURANCE AGREEMENT. THE CREDIT UNION DEPOSITED FUNDS INTO A LIFE INSURANCE POLICY ON THE PARTICIPANT'S LIFE. DURING LIFE, AND SUBJECT TO THE POLICY GENERATING SUFFICIENT VALUES, THE PARTICIPANT CAN BORROW FROM THE POLICY. AT DEATH, THE ORGANIZATION RECOVERS ITS PREMIUMS PLUS INTEREST PLUS ADDITIONAL KEY-PERSON INSURANCE PROCEEDS. LISA BACK CFO SPLIT DOLLAR LIFE INSURANCE X 1400000 1546991 0 1 1 JACK JORDAN COO SPLIT DOLLAR LIFE INSURANCE X 1700000 1878489 0 1 1 3425480 SCHEDULE L, PART II, LOANS TO AND/OR FROM INTERESTED PERSONS: ADDITIONAL INFORMATION ON SPLIT DOLLAR LOANS: THE CREDIT UNION PROVIDES SUPPLEMENTAL RETIREMENT BENEFITS THROUGH AN ARRANGEMENT THE IRS REFERS TO AS "COLLATERAL ASSIGNMENT SPLIT DOLLAR" (CASD). ALTHOUGH THE IRS REQUIRES REPORTING IN PART II ABOVE, FOR LOANS TO INTERESTED PERSONS, CASD IS NOT AN ACTUAL LOAN. THERE IS NEITHER A TRANSFER OF FUNDS TO THE PARTICIPANT NOR AN OBLIGATION FOR THE PARTICIPANT TO PAY THOSE FUNDS BACK. INSTEAD, THE CREDIT UNION RECOVERS ITS OUTLAYS PLUS INTEREST FROM THE UNDERLYING POLICY. THE RECOVER RIGHT IS A KEY ADVANTAGE OF CASD. WITH TRADITIONAL DEFERRED COMPENSATION, THE CREDIT UNION PAYS THE BENEFIT FROM CORPORATE ASSETS. WITH CASD, THE CREDIT UNION DEPOSITS DOLLARS DIRECTLY INTO A LIFE INSURANCE POLICY WITH THE CREDIT UNION HOLDING THE LIEN ON THE POLICY TO ENSURE REPAYMENT. AT SPECIFIED TIMES AND SUBJECT TO VESTING REQUIREMENTS, THE PARTICIPANT MAY BORROW FROM THE CASH VALUE OF THE POLICY TO SUPPLEMENT RETIREMENT INCOME. BORROWING IS CAREFULLY MONITORED AND LIMITED TO ASSURE THAT THE POLICY WILL REMAIN IN EFFECT UNTIL THE PARTICIPANTS DEATH AND WILL PAY A DEATH BENEFIT AT LEAST SUFFICIENT TO REPLY THE CREDIT UNION'S OUTLAY PLUS INTEREST. ANY REMAINING DEATH PROCEEDS ARE DIVIDED BETWEEN THE CREDIT UNION AND THE EXECUTIVE'S BENEFICIARY AS AGREED UP BY THE PARTIES. FORM 990, PART VI, SECTION A, LINE 1 THE BOARD OF DIRECTORS MAY APPOINT FROM ITS OWN NUMBER AN EXECUTIVE COMMITTEE OF NOT LESS THAN THREE (3) PERSONS TO EXERCISE, BETWEEN MEETINGS OF THE BOARD OF DIRECTORS, SUCH AUTHORITY AS MAY BE SPECIFICALLY DELEGATED TO IT BY THE BOARD OF DIRECTORS. THE EXECUTIVE COMMITTEE SHALL REPORT TO THE BOARD OF DIRECTORS THE ACTIVITIES IT HAS TAKEN BETWEEN MEETINGS OF THE BOARD OF DIRECTORS, AND A REPORT OF SUCH ACTIVITIES SHALL BE PLACED IN THE MINUTES OF THE BOARD OF DIRECTORS. THE PRESIDENT, IF ALSO A DIRECTOR, MAY NOT SERVE ON THE EXECUTIVE COMMITTEE. 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 A COMMUNITY CHARTER; PERSONS WHO LIVE, WORK, WORSHIP, ATTEND SCHOOL IN, AND BUSINESSES AND OTHER LEGAL ENTITIES LOCATED IN BASTROP, CALDWELL, HAYS, WILLIAMSON, OR TRAVIS COUNTIES, TEXAS. FORM 990, PART VI, SECTION A, LINE 7A THE BOARD OF DIRECTORS IS ELECTED BY THE MEMBERSHIP. FORM 990, PART VI, SECTION A, LINE 7B CERTAIN DECISIONS MUST BE APPROVED BY THE MEMBERSHIP. FOR EXAMPLE, THE MEMBERSHIP MUST VOTE ON 1) CHARTER CONVERSIONS (STATE TO FEDERAL AND/OR CONVERSION FROM A CREDIT UNION TO A BANK); 2) CHANGES IN DEPOSIT INSURANCE; 3) BOARD ELECTIONS WHEN THERE IS MORE THAN ONE CANDIDATE PRESENTED FOR EACH POSITION; 4) MERGERS WHEN THE CU WOULD BE THE ACQUIRED CREDIT UNION. 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 DRAFT OF THE FORM 990 IS PRESENTED TO THE BOARD OF DIRECTORS FOR THEIR REVIEW AND COMMENTS PRIOR TO FILING WITH THE IRS. FORM 990, PART VI, SECTION B, LINE 12C DIRECTORS SIGN AN OATH OF OFFICE WHEN ELECTED OR RE-ELECTED TO OFFICE WHICH ADDRESSES CONFLICTS OF INTEREST. IN ADDITION, ALL DIRECTORS AND EMPLOYEES ARE REQUIRED TO REVIEW AND SIGN OUR CONFLICT OF INTEREST POLICY ON AN ANNUAL BASIS IN ORDER TO ENSURE THEY ARE AWARE OF THEIR RESPONSIBILITIES REGARDING DISCLOSURE. THE CONFLICT OF INTEREST POLICY REQUIRES DISCLOSURE OF ANY INTERESTS THAT COULD GIVE RISE TO CONFLICTS. THE CREDIT UNION SHALL REGULARLY AND CONSISTENTLY MONITOR AND ENFORCE COMPLIANCE WITH THIS POLICY. FORM 990, PART VI, SECTION B, LINE 15 TO DETERMINE THE CEO'S SALARY, THE BOARD OF DIRECTORS WILL REVIEW COMPENSATION DATA PROVIDED BY THE SR. VP OF HUMAN RESOURCES AND OBTAINED FROM CUNA (CREDIT UNION NATIONAL ASSOCIATION), CUES (CREDIT UNION EXECUTIVES SOCIETY), CORNERSTONE CREDIT UNION LEAGUE, COMPEASE SALARY ADMINISTRATION AND OTHER VARIOUS SOURCES AS AVAILABLE AT LEAST EVERY OTHER YEAR. THE SALARY IS SET BASED UPON A REVIEW OF WHAT CREDIT UNION CEO'S IN THE ORGANIZATION'S REGION, AND ACROSS THE COUNTRY, WITH SIMILAR ASSET SIZE WERE PAID IN THE PREVIOUS YEAR. THE BOARD OF DIRECTORS ALSO COMPARES THE CEO'S SALARY WITH THE CURRENT PARAMETERS SET WITHIN OUR SALARY ADMINISTRATION GUIDELINES. THE COMPENSATION DECISION IS DOCUMENTED IN THE BOARD MINUTES AS WELL AS THE PERSONNEL FILE. TO DETERMINE KEY EMPLOYEES' SALARIES, THE CEO IN CONJUNCTION WITH THE SR. VP OF HUMAN RESOURCES, UTILIZE THE COMPEASE SALARY ADMINISTRATION PROGRAM. NATIONAL AND LOCAL SALARY SURVEYS ARE REVIEWED PERIODICALLY COMPARING INDUSTRIES AND GEOGRAPHICAL REGIONS WHEN AVAILABLE IN ADDITION TO A PAID SERVICE THAT IS USED TO ASSIST WITH SALARY RANGES BASED ON JOB EVALUATIONS. PERFORMANCE IS ALSO MEASURED AND A SALARY INCREASE MATRIX IS USED THAT TAKES INTO ACCOUNT THE SALARY POSITION WITHIN THE RANGE AND THE PERFORMANCE LEVEL. FORM 990, PART VI, SECTION C, LINE 19 UNAUDITED FINANCIAL STATEMENTS ARE MADE AVAILABLE BY POSTING AT EACH BRANCH. THE ANNUAL REPORT IS PROVIDED TO ALL MEMBERS AT THE CREDIT UNION'S ANNUAL MEETING AND UPON REQUEST THROUGHOUT THE YEAR. THE ANNUAL REPORT IS ALSO AVAILABLE ON THE ORGANIZATION'S WEBSITE. THE GOVERNING DOCUMENTS AND CONFLICT OF INTEREST POLICY WOULD BE RELEASED TO MEMBERS UPON REQUEST. FORM 990, PART XI, LINE 9: CHANGE IN PRIOR SERVICE COST RESERVE ACCOUNT -334,735. FORM 990, PART XII, QUESTION 2B: THE ORGANIZATION'S FINANCIAL STATEMENTS WERE AUDITED BY AN INDEPENDENT ACCOUNTANT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020. THE ORGANIZATION DID NOT OBTAIN AUDITED FINANCIAL STATEMENTS FOR THE TAX YEAR. VELOCITY RE HOLDINGS LLC 4515 SETON CENTER PARKWAY SUITE 165 AUSTIN AZ 78759 825470280 HOLDS PROPERTY TX 2700463 31417746 VELOCITY CREDIT UNION