2020-11-13T10:34:45-06:00 2019-12-31 741699466 FITTS ROBERTS KOLKHORST & CO PC 5718 WESTHEIMER STE 800 HOUSTON TX 77057 990 2019-01-01 741260543 TEXAS DOW ECU TEXA 3615809629 1001 FM 2004 LAKE JACKSON TX 77566 RHONDA PAVLICEK SVP & CFO 3615809629 2020-11-12 1 ROGER L DUNCAN CPA P01087367 7132605230 2020-11-11 64.88.174.3 2020-11-12 09:45:35 CS P BB1CBB722FF4F8170704CA7CDC1A7FFADEAC42FB 62322DADD93BD3AC76394A30AC6E05AFD359A602 2019 2022-01-07 14:23:13Z RHONDA PAVLICEK 1001 FM 2004 LAKE JACKSON TX 77566 262637579 0 X WWW.TDECU.ORG X 1955 TX INCREASE ECONOMIC WELL-BEING OF OUR MEMBERS THROUGH NOT-FOR-PROFIT, COOPERATIVE FINANCIAL SERVICES. 10 10 1012 0 3132136 -5028862 0 0 217190502 244087686 2167801 4426621 -410090 775599 218948213 249289906 0 0 0 0 61717006 69808173 0 0 0 121946249 154114095 183663255 223922268 35284958 25367638 3269360348 3609955686 2978126438 3293132863 291233910 316822823 INCREASE ECONOMIC WELL-BEING OF OUR MEMBERS THROUGH NOT-FOR-PROFIT, COOPERATIVE FINANCIAL SERVICES. 0 0 TDECU IS A NOT-FOR-PROFIT FINANCIAL COOPERATIVE WITH MORE THAN 341,195 MEMBERS. TDECU CURRENTLY HAS 35 MEMBER SERVICE LOCATIONS, AND OFFERS A COMPLETE SELECTION OF CONVENIENT AND COMPETITIVE PRODUCTS AND SERVICES. 0 0 0 0 0 0 0 1 0 1 0 0 0 1 1 1 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 1 0 1 0 0 1 118137 0 1 1012 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 1 0 X 10 10 0 0 0 0 1 1 0 1 1 0 1 1 0 1 1 1 1 1 1 1 0 X X RHONDA L PAVLICEK SVP CFO 3615809629 1001 FM 2004 LAKE JACKSON TX 77566 DAN BUCHE DIRECTOR 4.00 X 37500 0 3042 GEORGE HORNBACK DIRECTOR 4.00 X 15798 0 0 PEGGY MILTENBERGER DIRECTOR 4.00 X 21750 0 0 DEANNA LYNN JONES DIRECTOR 4.00 X 8625 0 0 DICK SMITH DIRECTOR 4.00 X 38625 0 3375 ED ZINGLEMAN DIRECTOR 4.00 X 28500 0 348 EDWARD SPEED DIRECTOR 4.00 X 30375 0 510 JACK ANTONINI DIRECTOR 4.00 X 11250 0 8355 ROLAND HENDRICKS DIRECTOR 4.00 X 36447 0 0 FRANK COE DIRECTOR 4.00 X 22500 0 0 ROBERT BALDWIN III DIRECTOR 4.00 X 10500 0 3020 ANITA SEHGAL DIRECTOR 4.00 X 21000 0 0 DAVID SIKORA DIRECTOR 4.00 X 17625 0 0 ELIZABETH R KILLINGER DIRECTOR 4.00 X 5250 0 0 STEVEN J MURRAY DIRECTOR 4.00 X 12750 0 0 MANUEL S RODRIGUEZ DIRECTOR 4.00 X 4500 0 0 STEPHANIE SHERRODD PRESIDENT 40.00 X 793182 0 26724 RHONDA PAVLICEK SENIOR VP & CFO 40.00 X 487626 0 26611 MURSHID KHAN SENIOR VP & CIO 40.00 X 367051 0 23497 MICHAEL HUBBELL VP - RISK MANAGEMENT 40.00 X 168557 0 20365 ALEXIS ALEJANDRO DE LA CRUZ SENIOR VP - CGSMO 40.00 X 363043 0 15324 THOMAS DALLAM SENIOR VP & CPO 40.00 X 307399 0 10574 ANDREI SIMESCU SENIOR VP & CCEO 40.00 X 228866 0 7800 JENNIFER KELLY DOMINIQUINI SENIOR VP & CDEO 40.00 X 88813 0 2855 DAN TABRAHAM SENIOR VP & CCRO 40.00 X 74057 0 330 WESLEY GARNER PRINCIPAL WEALTH STRATEGIST 40.00 X 332622 0 19369 MILTON LUCAS VP BUSINESS SERVICES 40.00 X 177574 0 19586 GARY LANIER VP-STRATEGIC INITIATIVES 40.00 X 203107 0 20071 CONNIE CLARK PRESIDENT-INS AGENCY 40.00 X 254269 0 13881 BONITA TUCKER VP - OPERATIONS 40.00 X 204416 0 20943 JASON SCHNEIDER VP - FINANCE 40.00 X 240951 0 22350 LUKE BILLERI II VP - MEMBER CENTERS 40.00 X 170509 0 16314 ANTHONY WARDEN VP - MEMBER CARE 40.00 X 226517 0 22203 KEITH HRNYAK VP - CONTROLLER 40.00 X 211488 0 20270 GERALD A EICHHORST VP - DIGITAL EXPERIENCE 40.00 X 217849 0 8352 JOSHUA DEAN BRIAN VP - STRATEGIC PARTNERSHIPS 40.00 X 150875 0 19023 ETHAN RODNEY PACK DIRECTOR - ENTERPRISE ARCH 40.00 X 191729 0 21778 BETHANY DAVIS WEALTH ADVISOR 40.00 X 295698 0 24184 PATRICK BEALE WEALTH ADVISOR 40.00 X 236153 0 22960 KEVIN MCCOY II WEALTH ADVISOR 40.00 X 223934 0 17701 MARCUS MANNING DIRECTOR - INFO MGMT ANALY 40.00 X 201579 0 11357 CHARLES ALLEN SMITH FORMER SENIOR VP & CLO 40.00 X 1018598 0 7787 MILTON E STEVENS FORMER SENIOR VP RETAIL LENDING 40.00 X 925930 0 9401 COURTLAND CROUCHET FORMER SENIOR VP - CRO 40.00 X 633997 0 6455 9319384 0 476715 98 1 1 0 PSCU 560 CARILLON PARKWAY ST PETERSBURG FL 33716 MEMBER CARE CALL CENTER, ONLINE BANKING 9824427 VISA USA 900 METRO CENTER BOULEVARD FOSTER CITY CA 94404 VISA MONTHLY BILLING, DEBIT CARD FEES 5300203 CARDTRONICS 2050 W SAM HOUSTON PKWY S SUITE 13 HOUSTON TX 77042 ATMS PROVIDED WITH LOGO; INVOICE AND VOU 2987081 LANVERA LTD 112 WRANGLER DRIVE SUITE 150 COPPELL TX 75019 MONTHLY NOTICES/FORMS/ESTATEMENTS 1875607 BUCEES 327 FM 2004 LAKE JACKSON TX 77566 FUEL DISCOUNTS/CC INTERCHANGE/ATM TRANSA 1673496 27 INTEREST ON LOANS 522100 163975991 163975991 FEE INCOME 522100 62040291 61065925 974366 OTHER OPERATING INCOME 522100 18071404 15913634 2157770 244087686 3952064 3952064 13603230 219000 12205337 1142336 1397893 -923336 474557 474557 K-1 FROM ONAPPROACH LL 900099 744653 744653 K-1 FROM BUSINESS FINA 900099 30946 30946 775599 249289906 240955550 3132136 5202220 5605212 47789239 2256907 10213867 3942948 838493 423910 14254243 7594763 6970210 1502041 7306439 2233775 31031231 8452494 677812 PROVISION FOR LOAN LOSS 34695036 OTHER SERVICE FEES 33343910 LOAN SERVICING EXPENSE 4789738 223922268 11205404 12099242 108965350 295841402 1389330 3343425 2990230129 3143007107 112442321 58185480 58542182 54256841 19028761 20048702 11474061 11542156 68525131 69816811 3269360348 3609955686 30600725 79553616 904682 307475 12327358 14106734 315592519 260567542 2618701154 2938597496 2978126438 3293132863 X 0 0 0 0 291233910 316822823 291233910 316822823 3269360348 3609955686 X 25367638 221272 3 X X 0 1 X 1 0 0 1 X 18472742 18472742 40620701 16132178 24488523 46924753 37550412 9374341 6045117 4502890 1542227 379008 379008 54256841 MEMBERS' SHARES AND SAVINGS ACCOUNTS 2938597496 2938597496 X 248039749 0 248039749 1250157 1250157 249289906 223085043 -615952 -615952 223700995 221273 221273 223922268 PART IV, LINE 1B: CUSTODIAL FUNDS IN ESCROW REPRESENT PAYMENTS FOR PRINCIPAL AND INTEREST, AS WELL AS FOR TAXES AND INSURANCE. THESE AMOUNTS ARE HELD IN ESCROW, WITH A CORRESPONDING LIABILITY RECORDED UNTIL THE DATE THAT SUCH FUNDS ARE RELEASED BY THE CREDIT UNION FOR THEIR INTENDED PURPOSE. THE AUDITED FINANCIAL STATEMENT OFFSETS THE ESCROW AND AGENCY FUNDS BY THE AMOUNT OF THE SEGREGATED SPECIAL BANK ACCOUNTS AND EXCLUDES THOSE ACCOUNTS FROM CORPORATE ASSETS. THIS RETURN INCLUDES THE SEGREGATED CASH ACCOUNTS IN FORM 990, PART X ON LINES 1 AND 2 AND DISCLOSES THE ESCROW ACCOUNT BALANCES ON LINE 21. PART IV, LINE 2B: CUSTODIAL FUNDS IN ESCROW REPRESENT PAYMENTS FOR PRINCIPAL AND INTEREST, AS WELL AS FOR TAXES AND INSURANCE. THESE AMOUNTS ARE HELD IN ESCROW, WITH A CORRESPONDING LIABILITY RECORDED UNTIL THE DATE THAT SUCH FUNDS ARE RELEASED BY THE CREDIT UNION FOR THEIR INTENDED PURPOSE. THE AUDITED FINANCIAL STATEMENT OFFSETS THE ESCROW AND AGENCY FUNDS BY THE AMOUNT OF THE SEGREGATED SPECIAL BANK ACCOUNTS AND EXCLUDES THOSE ACCOUNTS FROM CORPORATE ASSETS. THIS RETURN INCLUDES THE SEGREGATED CASH ACCOUNTS IN FORM 990, PART X ON LINES 1 AND 2 AND DISCLOSES THE ESCROW ACCOUNT BALANCES ON LINE 21. PART X, LINE 2: THE CREDIT UNION IS EXEMPT, BY STATUTE, FROM FEDERAL AND STATE INCOME TAXES. TEXAS DOW EMPLOYEES CREDIT UNION IS A STATE-CHARTERED CREDIT UNION DESCRIBED IN INTERNAL REVENUE CODE ("IRC") SECTION 501(C)(14). AS SUCH, THE CREDIT UNION IS EXEMPT FROM FEDERAL TAXATION OF INCOME DERIVED FROM THE PERFORMANCE OF ACTIVITIES THAT ARE IN FURTHERANCE OF ITS EXEMPT PURPOSES. HOWEVER, IRC SECTION 511 IMPOSES A TAX ON THE UNRELATED BUSINESS INCOME (AS DEFINED IN SECTION 512) DERIVED BY STATE-CHARTERED CREDIT UNIONS. MANY STATES HAVE SIMILAR LAWS. THE SPECIFIC APPLICATION OF SECTION 512 TO THE VARIOUS ACTIVITIES CONDUCTED BY STATE-CHARTERED CREDIT UNIONS HAS BEEN AN ISSUE FOR MANY YEARS. IN 2007, THE INTERNAL REVENUE SERVICE ("IRS") ISSUED A SERIES OF TECHNICAL ADVICE MEMORANDA ("TAM") TO A NUMBER OF STATE-CHARTERED CREDIT UNIONS LOCATED THROUGHOUT THE COUNTRY. IN THESE TAMS, THE IRS RULED CERTAIN PRODUCTS AND SERVICES TO BE SUBJECT TO TAXATION AS UNRELATED BUSINESS INCOME. IN LIGHT OF THE TAMS, THE CREDIT UNION HAS ASSESSED ITS ACTIVITIES AND ANY POTENTIAL FEDERAL OR STATE INCOME TAX LIABILITY. IN THE OPINION OF MANAGEMENT, ANY LIABILITY ARISING FROM FEDERAL OR STATE TAXATION OF ACTIVITIES DEEMED TO BE UNRELATED TO ITS EXEMPT PURPOSE IS NOT EXPECTED TO HAVE A MATERIAL EFFECT ON THE CREDIT UNION'S FINANCIAL CONDITION OR RESULTS OF OPERATIONS. PART XI, LINE 4B - OTHER ADJUSTMENTS: K-1 FROM ONAPPROACH LLC 744,653. K-1 FROM BUSINESS FINANCIAL ALLIANCE SYSTEMS 30,946. GAIN/LOSS ON ASSETS AND INVESTMENTS 474,557. ROUNDING 1. PART XII, LINE 2D - OTHER ADJUSTMENTS: GAIN/LOSS ON ASSETS AND INVESTMENTS -474,557. GAIN RECLASSMENT ON BUSINESS FINANCIAL ALLIANCE SYSTEMS -68,056. ADDITIONAL TAX LOSS ON ONAPPROACH LLC -73,339. PART XII, LINE 4B - OTHER ADJUSTMENTS: NET CHANGE IN UNREALIZED GAIN ON SECURITIES 221,272. ROUNDING 1. X X X 1 1 X X X X X 1 1 0 STEPHANIE SHERRODD PRESIDENT 612500 0 180682 0 0 0 11200 0 15524 0 819906 0 0 0 RHONDA PAVLICEK SENIOR VP & CFO 323500 0 164126 0 0 0 11200 0 15411 0 514237 0 0 0 MURSHID KHAN SENIOR VP & CIO 266808 0 98000 0 2243 0 8523 0 14974 0 390548 0 0 0 MICHAEL HUBBELL VP - RISK MANAGEMENT 159289 0 9268 0 0 0 7030 0 13335 0 188922 0 0 0 ALEXIS ALEJANDRO DE LA CRUZ SENIOR VP - CGSMO 293654 0 69389 0 0 0 0 0 15324 0 378367 0 0 0 THOMAS DALLAM SENIOR VP & CPO 192000 0 0 0 115399 0 0 0 10574 0 317973 0 0 0 ANDREI SIMESCU SENIOR VP & CCEO 135000 0 0 0 93866 0 0 0 7800 0 236666 0 0 0 WESLEY GARNER PRINCIPAL WEALTH STRATEGIST 151077 0 10681 0 170864 0 8156 0 11213 0 351991 0 0 0 MILTON LUCAS VP BUSINESS SERVICES 163000 0 14574 0 0 0 7224 0 12362 0 197160 0 0 0 GARY LANIER VP-STRATEGIC INITIATIVES 180104 0 12901 0 10102 0 7219 0 12852 0 223178 0 0 0 CONNIE CLARK PRESIDENT-INS AGENCY 96602 0 42349 0 115318 0 5907 0 7974 0 268150 0 0 0 BONITA TUCKER VP - OPERATIONS 189604 0 12987 0 1825 0 8104 0 12839 0 225359 0 0 0 JASON SCHNEIDER VP - FINANCE 212574 0 28377 0 0 0 7741 0 14609 0 263301 0 0 0 LUKE BILLERI II VP - MEMBER CENTERS 162104 0 8405 0 0 0 4032 0 12282 0 186823 0 0 0 ANTHONY WARDEN VP - MEMBER CARE 202923 0 23594 0 0 0 9197 0 13006 0 248720 0 0 0 KEITH HRNYAK VP - CONTROLLER 174043 0 18087 0 19358 0 7734 0 12536 0 231758 0 0 0 GERALD A EICHHORST VP - DIGITAL EXPERIENCE 115385 0 0 0 102464 0 0 0 8352 0 226201 0 0 0 JOSHUA DEAN BRIAN VP - STRATEGIC PARTNERSHIPS 125361 0 25514 0 0 0 6118 0 12905 0 169898 0 0 0 ETHAN RODNEY PACK DIRECTOR - ENTERPRISE ARCH 185231 0 6498 0 0 0 7678 0 14100 0 213507 0 0 0 BETHANY DAVIS WEALTH ADVISOR 26000 0 8804 0 260894 0 11200 0 12984 0 319882 0 0 0 PATRICK BEALE WEALTH ADVISOR 26000 0 7311 0 202842 0 9944 0 13016 0 259113 0 0 0 KEVIN MCCOY II WEALTH ADVISOR 19700 0 9303 0 194931 0 9212 0 8489 0 241635 0 0 0 MARCUS MANNING DIRECTOR - INFO MGMT ANALY 190088 0 9300 0 2191 0 7975 0 3382 0 212936 0 0 0 CHARLES ALLEN SMITH FORMER SENIOR VP & CLO 46973 0 121886 0 849739 0 5540 0 2247 0 1026385 0 0 0 MILTON E STEVENS FORMER SENIOR VP RETAIL LENDING 45848 0 119026 0 761056 0 6923 0 2478 0 935331 0 0 0 COURTLAND CROUCHET FORMER SENIOR VP - CRO 47700 0 123628 0 462669 0 4028 0 2427 0 640452 0 0 0 PART I, LINE 1B THE ORGANIZATION GROSSED UP PAYMENTS THAT ARE OUT OF THE ORDINARY (E.G. SERVICE AWARDS, RELOCATION, ETC.) SO THAT THE PAYMENT WILL BE TAX-NEUTRAL TO THE RECIPIENT. THE ORGANIZATION HAS A POLICY FOR EXPENSE REIMBURSEMENTS AND REQUIRES RECEIPTS AND PROOF OF EXPENSES PRIOR TO REIMBURSING. PART I, LINES 4A-B SEVERANCE PACKAGE: CHARLES SMITH $ 448,407 COURTLAND CROUCHET $ 455,307 MILTON STEVENS $ 437,735 CONNIE CLARKE $ 98,656 457(F) PLAN 2019 PURCHASE PAYMENTS: RHONDA PAVLICEK $ 41,575 FORM 990, PART VI, SECTION A, LINE 6 ALL MEMBERS HAVE THE RIGHT TO PARTICIPATE IN THE ELECTION OF THE GOVERNING BODY. MEMBERS DO NOT HAVE THE RIGHT TO APPROVE SIGNIFICANT DECISIONS OF THE GOVERNING BODY. ALL MEMBERS RECEIVE A SHARE OF THE ORGANIZATION'S NET ASSETS UPON DISSOLUTION. FORM 990, PART VI, SECTION A, LINE 7A MEMBERS ELECT THE BOARD OF DIRECTORS BY THE USE OF ELECTRONIC DEVICE, ABSENTEE BALLOT OR MAIL BALLOT. FORM 990, PART VI, SECTION B, LINE 11B THE TAX RETURN WILL BE REVIEWED BY THE SVP/CFO AND CONTROLLER. FORM 990, PART VI, SECTION B, LINE 12C ALL OFFICERS, DIRECTORS AND MANAGERS MUST REPORT ANNUAL ACKNOWLEDGEMENT OF ANY POTENTIAL CONFLICT OF INTEREST AS INDICATED BY TDECU'S BUSINESS ETHICS POLICY. FORM 990, PART VI, SECTION B, LINE 15 THE COMPENSATION PROCESS FOR THE CEO INCLUDES A COMPENSATION REVIEW THAT IS CONDUCTED BY AN OUTSIDE CONSULTANT USING EXTERNAL MARKET DATA. THE RESULTS ARE SUBMITTED TO A COMPENSATION COMMITTEE THAT THEN REVIEWS AND RECOMMENDS PAY ADJUSTMENTS BASED ON MARKET AND CEO PERFORMANCE. THE COMPENSATION COMMMITTEE IS COMPRISED OF BOARD MEMBERS. THE COMPENSATION PROCESS FOR TOP MANAGEMENT INCLUDES A COMPENSATION REVIEW THAT IS CONDUCTED BY AN OUTSIDE CONSULTANT USING EXTERNAL MARKET DATA. THE RESULTS ARE SUBMITTED TO CEO AND SVPS FOR REVIEW AND RECOMMENDATIONS ON PAY ADJUSTMENTS BASED ON MARKET POSITION AND PERFORMANCE. AT RISK PAY IS REVIEWED AND APPROVED BY THE CEO. FORM 990, PART VI, SECTION C, LINE 19 MONTHLY FINANCIAL STATEMENTS ARE PUBLICLY DISPLAYED IN EACH BRANCH OFFICE. ARTICLES OF INCORPORATION AND BYLAWS ARE AVAILABLE UPON REQUEST BY ANY MEMBER. FORM 990, PART XI, LINE 9: ROUNDING 3. FORM 990, PART XII, LINE 2C: THE PROCESS BY WHICH THE AUDIT COMMITTEE OVERSEES THE AUDIT OF THE FINANCIAL STATEMENTS AND THE SELECTION OF AN INDEPENDENT ACCOUNTANT DID NOT CHANGE FROM THE PRIOR YEAR. TDECU INSURANCE AGENCY LLC 1001 FM 2004 LAKE JACKSON TX 77566 260901021 INSURANCE AGENCY TX 675528 11054712 TDECU HOLDINGS LLC TDECU HOLDINGS LLC 1001 FM 2004 LAKE JACKSON TX 77566 453582513 HOLDING COMPANY TX 889512 10802090 TEXAS DOW ECU TDECU WEALTH ADVISORS LLC 1001 FM 2004 LAKE JACKSON TX 77566 453581914 MANAGEMENT TX 0 0 TEXAS DOW ECU LOAN ORIGINATION ACQUISITION NETWORK LLC 1001 FM 2004 LAKE JACKSON TX 77566 462758520 CONSULTING TX 0 24291 TEXAS DOW ECU BRAZORIA COUNTY BUSINESS CENTER DRIVE LLC 2500 FANNIN ST HOUSTON TX 77002 843393843 CORPORATE ACTIVITY TX 0 0 TEXAS DOW ECU