2019-09-26T15:48:49-05:00 2018-12-31 382492570 DOEREN MAYHEW 305 WEST BIG BEAVER ROAD TROY MI 48084 990 2018-01-01 610671028 COMMONWEALTH CREDIT UNION COMM 5025644775 PO BOX 978 FRANKFORT KY 406020978 KAREN HARBIN CEO 5025644775 2019-09-11 1 ROBIN D HOAG CPA P00360662 2482443000 104.11.88.150 2019-09-11 14:17:27 ED P DA39A3EE5E6B4B0D3255BFEF95601890AFD80709 A7DB26C3BB201601930FCFA0C4651552B54C26A2 2018 2019-02-21 02:37:17Z KAREN HARBIN PO BOX 978 FRANKFORT KY 406020978 71647618 0 X WWW.CCUKY.ORG X 1951 KY VISION: GROWTH INSPIRED BY ENGAGEMENT, EMPOWERMENT, AND EXTRAORDINARY SERVICE. MISSION: "WE BETTER LIVES THROUGH OUR PASSION TO SERVE." 11 10 366 15 474551 0 0 0 58326073 63251597 3695088 5205776 3468829 3190245 65489990 71647618 0 0 0 0 21979873 24359241 0 0 0 32189603 36202235 54169476 60561476 11320514 11086142 1150232039 1262159235 994727375 1095689416 155504664 166469819 X THE CREDIT UNION'S VISION IS "GROWTH INSPIRED BY ENGAGEMENT, EMPOWERMENT, AND EXTRAORDINARY SERVICE." COMMONWEALTH PROVIDES ITS MEMBERS WITH A SAFE PLACE TO SAVE AND A SOURCE OF CREDIT IN A NOT-FOR-PROFIT CONTEXT. WE STRIVE TO IMPROVE THE LIVES OF THOSE WE SERVE BY HELPING THEM ACHIEVE THEIR DREAMS THROUGH FINANCIAL HEALTH AND SUCCESS. 0 0 SHARES:THE CREDIT UNION HAS 236,689 SHARE ACCOUNTS AGGREGATING OVER $1 BILLION. COMMONWEALTH CREDIT UNION HAS A MYRIAD OF SAVINGS OPTIONS FROM WHICH MEMBERS CAN SELECT FROM TO GROW THEIR FUTURES. LOANS:COMMONWEALTH CREDIT UNION'S LOAN PORTFOLIO EXCEEDS $816 MILLION. THE CREDIT UNION HAS 73,014 LOAN ACCOUNTS. LOANS ARE PROVIDED TO 65,587 MEMBERS. COMMONWEALTH OFFERS IT'S MEMBERS AN ARRAY OF LOAN PRODUCTS TO MEET THEIR CREDT NEEDS. MISCELLANEOUS FINANCIAL SERVICES:COMMONWEALTH CREDIT UNION OFFERS A VARIETY OF SERVICES TO ITS 103,513 MEMBERS. THESE INCLUDE ONLINE BANKING, MOBILE BANKING, BILL PAYMENT, REMOTE AND MOBILE DEPOSIT AND OTHER ELECTRONIC SERVICES. 0 0 0 0 0 0 0 0 0 1 0 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 23927 0 1 366 1 1 1 0 0 0 0 0 0 0 X 11 10 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 X KAREN HARBIN CEO 5025644775 417 HIGH STREET FRANKFORT KY 40601 DONNIE RODGERS II BOARD OF DIRECTORS 1.00 X 1932 0 0 JIM CHADWELL BOARD OF DIRECTORS 1.00 X 3446 0 0 RANDY OVERSTREET BOARD OF DIRECTORS 1.00 X 2487 0 0 RANDY FAWNS BOARD OF DIRECTORS 1.00 X 0 0 0 REGINA GRUBBS BOARD OF DIRECTORS 1.00 X 995 0 0 MARY FOSTER BOARD OF DIRECTORS 1.00 X 0 0 0 KAY JONES BOARD OF DIRECTORS 1.00 X 0 0 0 HARRY SUTER BOARD OF DIRECTORS 1.00 X 0 0 0 ALEX ROSE BOARD OF DIRECTORS 1.00 X 0 0 0 BILL LEACH BOARD OF DIRECTORS 1.00 X 0 0 0 KENNETH BLACKWELL BOARD OF DIRECTORS 1.00 X 964 0 0 KAREN HARBIN CEO/PRESIDENT/BOARD MEMBER 40.00 X X 441234 0 193389 STEPHEN BELLAS CFO 40.00 X 222998 0 78827 DAVID YOUNG EXECUTIVE VICE PRESIDENT 40.00 X 246284 0 151886 ALAN DAVIS CHEIF LENDING OFFICER 40.00 X 185747 0 203050 PATTY SMITH CHIEF MARKETING OFFICER 40.00 X 153634 0 28893 KAREN MAXFIELD CHEIF HUMAN RESOURCES OFFI 40.00 X 173361 0 157278 KIM DURRUM VP OF OPERATIONS 40.00 X 149401 0 124068 GLORIA THOMAS CHIEF OPERATIONS OFFICER 40.00 X 169091 0 166779 1751574 0 1104170 17 0 1 0 RATEGENIUS LOAN SERVICES INC 9300 UNITED DRIVE STE 180 AUSTIN TX 78758 LOAN FUNDING 1508160 KELLEY CONSTRUCTION INC 12550 LAKE STATIONS PLACE LOUISVILLE KY 40299 CONSTRUCTION 1471910 CROSSHAIR MEDIA PLACEMENT LLC 8401 SHELBYVILLY RD STE 215 LOUISVILLE KY 40222 RADIO, TV, OUTDOOR&PRINT MKTG 1300258 JACK HENRY & ASSOCIATES INC PO BOX 609 MONETT MO 65708 SYMITAR MAINTENANCE & EXPENSES 1157724 VISA USA INC PO BOX 742233 LOS ANGELES CA 90074 VISA PROCESSING & SERVICES 1031853 50 INTEREST ON LOANS 522100 47718146 47718146 INTERCHANGE INCOME 522100 8216724 8216724 FEE INCOME 522100 5748990 5645795 103195 OTHER INCOME 522100 1567737 1567737 63251597 5205776 5205776 INS COMM MEMBER SERVICES 524298 3190245 2818889 371356 3190245 71647618 65967291 474551 5205776 X 1345573 16250771 2542157 2980637 1240103 208085 105223 950513 2073237 2855781 2189715 2746173 190222 135118 5748203 2932955 91514 PROVISION FOR LOAN LOSS 7031953 PROCESSING FEES 4407522 LOAN SERVICING 2531350 CREDIT CARD REWARDS 1260950 743721 60561476 14592775 12215033 92795397 119984062 5800227 3762793 817291572 887330650 1907989 1830030 59904750 27515917 28963729 32388833 157244556 168887899 2202400 6317900 5760231 7998577 23673163 21443458 1150232039 1262159235 20140337 19536792 30000000 30000000 944587038 1046152624 994727375 1095689416 X 0 0 0 0 155504664 166469819 155504664 166469819 1150232039 1262159235 X 11086142 1206370 -1327357 X X 0 1 X 1 0 6009336 6009336 37489979 18226790 19263189 16405435 9289127 7116308 32388833 SHARE 437018298 INDIVIDUAL RETIREMENT ACCOUNTS/ CERTIFICATES 22171941 MONEY MARKET 156960157 SHARE DRAFT 167278754 CERTIFICATE OF DEPOSIT 262723474 1046152624 X 71647618 0 71647618 0 71647618 60561476 0 60561476 0 60561476 PART X, LINE 2: THE CREDIT UNION IS EXEMPT, BY STATUTE (IRC SECTION 501(C)14), FROM FEDERAL INCOME TAXES AND KENTUCKY BUSINESS TAX. 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 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. THE CREDIT UNION'S OPEN AUDIT PERIOD IS THE THREE YEAR PERIOD ENDED DECEMBER 31, 2018. X 1 0 X X X X 0 0 0 KAREN HARBIN CEO/PRESIDENT/BOARD MEMBER 432518 0 7686 0 1030 0 75840 0 117549 0 634623 0 0 0 STEPHEN BELLAS CFO 218030 0 4014 0 954 0 40990 0 37837 0 301825 0 0 0 DAVID YOUNG EXECUTIVE VICE PRESIDENT 242163 0 4121 0 0 0 43192 0 108694 0 398170 0 0 0 ALAN DAVIS CHEIF LENDING OFFICER 184295 0 1452 0 0 0 32841 0 170209 0 388797 0 0 0 PATTY SMITH CHIEF MARKETING OFFICER 152194 0 1440 0 0 0 10400 0 18493 0 182527 0 0 0 KAREN MAXFIELD CHEIF HUMAN RESOURCES OFFI 169221 0 3009 0 1131 0 30951 0 126327 0 330639 0 0 0 KIM DURRUM VP OF OPERATIONS 146861 0 2540 0 0 0 25905 0 98163 0 273469 0 0 0 GLORIA THOMAS CHIEF OPERATIONS OFFICER 166198 0 2893 0 0 0 29667 0 137112 0 335870 0 0 0 PART I, LINE 1A A PER DIEM IS PAID FOR MEALS FOR BOARD MEMBERS' TRAVEL COMPANIONS. FORM 990, PART VI, SECTION A, LINE 6 ANY INDIVIDUAL THAT HAS AN ACCOUNT WITH THE CREDIT UNION IS A MEMBER. IN TOTAL, THERE ARE 93,043 MEMBERS OF THE CREDIT UNION. ELGIBILITY TO JOIN COMMONWEALTH CREDIT UNION IS AS FOLLOWS: IF A PERSON OR SOMEONE THEY ARE RELATED TO LIVES, WORKS, WORSHIPS, ATTENDS SCHOOL OR VOLUNTEERS IN THE KIPDA AND BLUEGRASS REGIONS, WHICH INCLUDES THE FOLLOWING 24 COUNTIES: ANDERSON, BOURBON, BOYLE, BULLITT, CLARK, ESTILL, FAYETTE, FRANKLIN, GARRARD, HARRISON, HENRY, JEFFERSON, JESSAMINE, LINCOLN, MADISON, MERCER, NICHOLAS, OLDHAM, POWELL, SCOTT, SHELBY, SPENCER, TRIMBLE, AND WOODFORD. FORM 990, PART VI, SECTION A, LINE 7A COMMONWEALTH CREDIT UNION BOARD OF DIRECTORS ARE ELECTED BY THE MEMBERSHIP AT AN ANNUAL MEETING HELD IN JANUARY OF EACH YEAR. EACH PRIMARY MEMBER IS ENTITLED TO ONE VOTE TO ELECT THE BOARD. FORM 990, PART VI, SECTION A, LINE 7B MEMBERS OF THE CREDIT UNION HAVE THE RIGHT TO APPROVE THE ELECTION AND REMOVAL OR MEMBERS OF THE GOVERNING BODY, AS WELL AS OTHER MATTERS THAT ARE SUBJECT TO APPROVAL BY THE MEMBERS AS THEY OCCUR. FORM 990, PART VI, SECTION B, LINE 11B COMMONWEALTH CREDIT UNION BOARD OF DIRECTORS WERE PROVIDED WITH A COPY OF THE FORM PRIOR TO THE BOARD MEETING. THEY WERE ASKED TO REVIEW THE FORM AND CONTACT THE CEO WITH QUESTIONS. AT THE BOARD MEETING, THE CEO PROVIDED EXPLANATIONS AND ANSWERED QUESTIONS FROM THE BOARD DURING THE REVIEW OF THE FORM. FORM 990, PART VI, SECTION B, LINE 12C A STATEMENT OF THE CREDIT UNION'S COMPLIANCE WITH KENTUCKY REVISED STATUE 290.195 IS INCLUDED IN THE ASSOCIATE HANDBOOK WHICH EACH EMPLOYEE SIGNS AS HAVING READ AND AGREES TO ABIDE BY KRS290.195 WHICH PROVIDES THAT NO DIRECTOR, OFFICER OR ASSOCIATES PARTICIPATE IN INTERESTS THAT COULD GIVE RISE TO CONFLICT. ALSO, AT THE BEGINNING OF EACH YEAR, EVERY EMPLOYEE MUST SIGN A CONFLICT OF INTEREST POLICY. THE HUMAN RESOURCE DEPARTMENT ENSURES THAT EACH EMPLOYEE SIGNS AND AGREES TO THIS POLICY AND MONITORS THAT IT IS DONE. FORM 990, PART VI, SECTION B, LINE 15 INTEGRITY HR IS USED AS AN OUTSIDE CONSULTANT TO PROVIDE AN INDEPENDENT REVIEW OF THE POSITIONS, SALARIES, LEVELS, AND OVERALL COMPENSATION. INTEGRITY HR USES SEVERAL SOURCES OF COMPARABLE DATA INCLUDING CUNA SALARY SURVEYS, AS WELL AS LOCAL, REGIONAL AND NATIONAL SALARY DATA. IN ADDITION TO INTEGRITY HR, CARDWELL CONSULTANTS WAS ALSO USED FOR COMPENSATION STUDIES. FORM 990, PART VI, SECTION C, LINE 19 THE FINANCIALS ARE MADE AVAILABLE AND DISTRIBUTED TO THE PUBLIC EVERY YEAR AT THE ANNUAL MEETING IN PAMPHLET FORM. GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY AND FINANCIALS WOULD ALSO BE DISTRIBUTED ON A REQUEST BASIS TO THE PUBLIC. FORM 990, PART IX, LINE 24E U OF L PARTNERSHIP 610,247. OTHER 133,474. FORM 990, PART XI, LINE 9: NET CHANGE IN DEFINED BENEFIT PENSION PLAN -3,860,956. EQUITY ACQUIRED THROUGH MERGER 2,533,599. FORM 990, PART XII, LINE 2C: THE PROCESS HAS NOT CHANGED FROM THE PRIOR YEAR.