2020-11-10T22:00:24-06:00 2019-12-31 350921680 CROWE LLP 9600 Brownsboro Road Suite 400 Louisville KY 402411122 990 2019-01-01 380703992 Arbor Financial Credit Union ARBO 2693756702 1551 South 9th Street Kalamazoo MI 490099327 Earle Shelner II CFO 2020-11-10 true Kim Scifres P01316095 5023263996 2019 2022-01-07 14:23:13Z Julie Blitchok 1551 South 9th Street Kalamazoo MI 490099327 146382383 false X www.arborfcu.org X 1935 MI THE CREDIT UNION'S OPERATIONS INCLUDE HOLDING DEPOSITS FOR AND MAKING LOANS TO INDIVIDUALS WHO WORK OR RESIDE IN THE STATE OF MICHIGAN. 8 8 235 8 256021 0 0 0 29582295 34613597 2107270 5124316 930560 738259 32620125 40476172 24000 24000 0 10714421 13627082 0 0 0 16045694 21076242 26784115 34727324 5836010 5748848 573422495 655512242 519302424 595318353 54120071 60193889 THE CREDIT UNION'S OPERATIONS INCLUDE HOLDING DEPOSITS FOR AND MAKING LOANS TO INDIVIDUALS WHO WORK OR RESIDE IN THE STATE OF MICHIGAN. false false Allowing members access to capital through mortgages, automobile loans, and other consumer loans. ALLOWING MEMBERS DIRECT ACCESS TO THEIR CHECKING ACCOUNT AT MERCHANTS THROUGH OUR DEBIT CARD PROGRAM, and allowing members access to credit through our credit card program. ALLOWING MEMBERS ACCESS TO OVER 37,000 ATMS THROUGHOUT THE US THROUGH OUR ATM NETWORKING PROGRAM. 0 false false false false false false true false true false false false true true true false false false false false false false false false false false true true false true false false false false false false false false false false false false true 18574 0 true 235 true true true false false false false false false false X 8 8 false false false false true true true true true false true true true true true true true true true true false X Earle Shelner II 2695443471 1551 S 9th Street Kalamazoo MI 49009 X Arthur Parker Director 10.0 X X 0 0 0 Barbara Winter Secretary 10.0 X X 0 0 0 David Aubry Chairman 10.0 X X 0 0 0 Richard Cahow Vice-Chairman 10.0 X X 0 0 0 Eric Lum Director (partial year) 2.0 X 0 0 0 Jeff Powless Director 10.0 X 0 0 0 Joni LaPointe Director 10.0 X 0 0 0 Josie Howard-Wyne Director 10.0 X 0 0 0 Kimberly Rohr Director 10.0 X 0 0 0 Earle D Shelner II Chief Financial Officer 50.0 X 208170 0 46982 Julie A Blitchok President/CEO 50.0 X 462108 0 49872 Arlene C Horton VP of Talent Strategy and Organization 50.0 X 167541 0 35691 James O Blankenship VP Information Systems 50.0 X 174217 0 39847 Tamara L Phelps VP Operations 50.0 X 171797 0 35718 Christine E Camp VP Marketing 50.0 X 152051 0 41380 Holly B Babb Mortgage Loan Originator 40.0 X 0 0 0 Jeffery Potter Mortgage Loan Originator 40.0 X 171730 0 27523 John Hatridge Mortgage Loan Originator (Partial) 40.0 X 185925 0 18357 Judith Robbins VP of Commercial and Private Banking 50.0 X 0 0 0 Karen DeMars Director of Credit and Loan Services 40.0 X 0 0 0 Noel Watts VP of Mortgages (Partial) 50.0 X 0 0 0 Ryan A Maneke Mortgage Loan Originator 40.0 X 0 0 0 Scott E Cowherd Mortgage Loan Originator (Partial) 40.0 X 192310 0 517 Susan Weir VP Mortgage Lending 50.0 X 0 0 0 Tina Mason Director of Project Management 50.0 X 0 0 0 1885849 0 295887 16 false true false GLAS ASSOCIATES INC 6339 STADIUM DR KALAMAZOO MI 49009 CONSTRUCTION 2388303 FISERV 75 REMITTANCE DRIVE DEPT 1649 CHICAGO IL 60197 CORE SYSTEM PROCESSOR 2136401 WORLDPAY (VANTIV) 8500 Governors Hill Dr Symmes Township OH 45249 DEBIT CARD PROCESSOR 411903 ENGINEERED PROTECTION SYSTEMS INC 750 Front Ave NW Grand Rapids MI 49504 SECURITY 230858 FIS PO Box 4535 Carol Stream IL 60197 CREDIT CARD PROCESSOR 184333 13 0 INCOME ON MEMBER LOANS 522100 24645278 24645278 0 0 FEES AND CHARGES 522100 9968319 9923298 45021 0 0 0 0 0 34613597 2269246 0 0 2269246 0 0 44769830 63991451 43076070 62830141 1693760 1161310 2855070 0 0 2855070 Warranty Income 524298 103097 0 103097 0 Wealth Management Income 523930 57771 0 57771 0 Trust AD&D Life Insurance Income 524113 50132 0 50132 0 527259 527259 0 0 738259 40476172 35095835 256021 5124316 24000 1391943 8980396 580524 1896983 777236 79985 148824 420635 0 0 0 1065428 1683551 1810854 1042410 27475 444425 6202376 54937 1223363 116096 PROVISION FOR LOAN LOSS 2486451 Visa and Mastercard Expenses 1742002 LOAN SERVICING EXPENSE 988701 ATM EXPENSES 750500 788229 0 0 0 34727324 0 0 0 3023267 4685469 42322718 32150514 0 0 3778645 3814250 0 0 467589834 538110228 0 617104 652511 29301521 6426156 18299453 22875365 14482783 27623520 4238800 5093800 0 19069891 20506585 573422495 655512242 5771302 8488782 2084437 2634304 0 0 55250000 73750000 456196685 510445267 519302424 595318353 X 54120071 60193889 54120071 60193889 573422495 655512242 5748848 324970 0 X false true X true false false true X 4439110 4439110 15058914 2544851 12514063 144758 128588 16170 6744991 3752717 2992274 2913748 0 2913748 22875365 MEMBER SHARES AND SAVINGS ACCOUNTS 510445267 510445267 X 40476172 0 0 40476172 0 0 40476172 34727324 0 0 34727324 0 0 34727324 Schedule D, Part IV, Line 2b Explanation of escrow agreement Arbor has an escrow custodial account set up for each of our investors. We are a service-retained organization, which collects the escrow funds, performs escrow analysis, and disburses funds to appropriate tax and/or insurance authorities. Schedule D, Part X, Line 2 FIN 48 (ASC 740) footnote THE CREDIT UNION IS EXEMPT, BY STATUTE, FROM FEDERAL TAXES ON INCOME RELATED TO THE EXEMPT PURPOSE OF THE CREDIT UNION. THE 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 PURPOSE. HOWEVER, IRS 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. THE INTERNAL REVENUE SERVICE ("IRS") ISSUED A SERIES OF TECHNICAL ADVISE 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. THE CREDIT UNION'S INCOME TAX FILINGS ARE SUBJECT TO AUDIT BY VARIOUS TAXING AUTHORITIES AND OPEN TAX PERIODS INCLUDE 2016-2018. true SCHOLARSHIPS 12 24000 Schedule I, Part III, Column (a) Type of Grant or Assistance Scholarships are awarded to high school seniors who demonstrate academic achievement, community involvement and financial need. Schedule I, Part I, Line 2 Procedures for monitoring use of grant funds. THE CREDIT UNION CHOOSES SCHOLARSHIP RECIPIENTS BASED ON CERTAIN CRITERIA AND KEEPS SUPPORTING DOCUMENTS FOR THEIR DECISIONS. X true true X X X X X false true false Julie A Blitchok President/CEO 346520 0 97181 0 18407 0 26129 0 23743 0 511980 0 0 0 Earle D Shelner II Chief Financial Officer 174355 0 33195 0 620 0 21662 0 25320 0 255152 0 0 0 James O Blankenship VP Information Systems 145972 0 27560 0 685 0 17752 0 22095 0 214064 0 0 0 Arlene C Horton VP of Talent Strategy and Organization 136139 0 27383 0 4019 0 14693 0 20998 0 203232 0 0 0 Tamara L Phelps VP Operations 142730 0 27671 0 1396 0 17176 0 18542 0 207515 0 0 0 Christine E Camp VP Marketing 126740 0 24580 0 731 0 16060 0 25320 0 193431 0 0 0 John Hatridge Mortgage Loan Originator (Partial) 37721 0 148087 0 117 0 0 0 18357 0 204282 0 0 0 Scott E Cowherd Mortgage Loan Originator (Partial) 42339 0 149671 0 300 0 0 0 517 0 192827 0 0 0 Jeffery Potter Mortgage Loan Originator 25135 0 146568 0 27 0 17380 0 10143 0 199253 0 0 0 Schedule J, Part I, Line 1a Travel for companions Non-Taxable Food for spouse at AC& E and MCUL Conference - David Aubry Schedule J, Part I, Line 4b Supplemental nonqualified retirement plan Julie Blitchok, CEO, participates in a split dollar life insurance plan. Premiums paid on behalf of the executive is treated as a loan. See schedule L for more detail on loan. Julie Blitchok CEO Split Dollar Life Insurance Treated As Loan X 4480403 3814251 false true true 3814251 Form 990, Part I, Line 1 Description of Organization Mission: Work or reside within the State of Michigan. Form 990, Part VI, Line 1a Delegate broad authority to a committee The personnel committee is the same as the full board with different leadership & has the authority to act on behalf of the board. Form 990, Part VI, Line 6 Classes of members or stockholders EVERY INDIVIDUAL THAT HAS AN ACCOUNT WITH THE CREDIT UNION IS CONSIDERED A MEMBER. Form 990, Part VI, Line 7a Members or stockholders electing members of governing body AS A CREDIT UNION, WE HAVE A MEMBERSHIP THAT HAS THE AUTHORITY TO VOTE FOR THE BOARD OF DIRECTORS ON AN ANNUAL BASIS. WE ARE REQUIRED TO HOLD AN ANNUAL MEETING, WHERE THE MEMBERSHIP CAN VOTE FOR THE BOARD OF DIRECTORS UP FOR NOMINATION. Form 990, Part VI, Line 7b Decisions requiring approval by members or stockholders THE DECISIONS ARE APPROVED AT THE ANNUAL MEETING. THEY ALSO CAN REVIEW THE MONTHLY AND YEAR TO DATE FINANCIAL STATEMENTS THAT ARE REQUIRED TO BE POSTED IN THE LOBBY. AS FOR DAY TO DAY DECISIONS, THEY DO NOT OVERSEE OR APPROVE ACTIONS. Form 990, Part VI, Line 11b Review of form 990 by governing body A COPY of the Form 990 was PROVIDED FOR THE BOARD OF DIRECTORS TO REVIEW PRIOR TO FILING WITH THE IRS. Form 990, Part VI, Line 12c Conflict of interest policy ALL DIRECTORS AND EMPLOYEES ARE REQUIRED TO SIGN A POLICY STATEMENT ANNUALLY AND TO SUBMIT CHANGES DURING THE YEAR. If there is a conflict of interest with an employee, it is brought up through HR and noted in the file. If there is a conflict of interest with an executive it is noted with both HR and the CEO to be kept in their file, and they would no longer be permitted to sign any contracts. Form 990, Part VI, Line 15a Process to establish compensation of top management official WE UTILIZE AN OUTSIDE CONSULTANT, AS WELL AS INDUSTRY PUBLICATIONS TO SET THE RANGES OF ALL INDIVIDUALS PAID AT THE CREDIT UNION. ALL SALARY RANGES FOR ALL EMPLOYEES ARE APPROVED BY THE BOARD OF DIRECTORS AT A REGULARLY SCHEDULED MEETING. This meeting was last performed in December 2019. This process is documented in executive committee minutes. Form 990, Part VI, Line 15b Process to establish compensation of other employees WE UTILIZE AN OUTSIDE CONSULTANT, AS WELL AS INDUSTRY PUBLICATIONS TO SET THE RANGES OF ALL INDIVIDUALS PAID AT THE CREDIT UNION. ALL SALARY RANGES FOR ALL EMPLOYEES ARE APPROVED BY THE BOARD OF DIRECTORS AT A REGULARLY SCHEDULED MEETING. This meeting was last performed in December 2019. This process is documented in executive committee minutes. Form 990, Part VI, Line 19 Required documents available to the public THE CREDIT UNIONS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS ARE MADE AVAILABLE TO THE PUBLIC UPON REQUEST. Form 990, Part VIII, Line 11d Other Miscellaneous Revenue Life Insurance Income - Total Revenue: 314724, Related or Exempt Function Revenue: 314724, Unrelated Business Revenue: 0, Revenue Excluded from Tax Under Sections 512, 513, or 514: 0; Visa Growth & Marketing Agreements - Total Revenue: 95978, Related or Exempt Function Revenue: 95978, Unrelated Business Revenue: 0, Revenue Excluded from Tax Under Sections 512, 513, or 514: 0; NCUA Stabilization - Total Revenue: 58773, Related or Exempt Function Revenue: 58773, Unrelated Business Revenue: 0, Revenue Excluded from Tax Under Sections 512, 513, or 514: 0; MIscellaneous Income - Total Revenue: 57784, Related or Exempt Function Revenue: 57784, Unrelated Business Revenue: 0, Revenue Excluded from Tax Under Sections 512, 513, or 514: 0;