2019-11-14T16:33:51-06:00 2018-12-31 741699466 FITTS ROBERTS KOLKHORST & CO PC 5718 WESTHEIMER STE 800 HOUSTON TX 77057 990 2018-01-01 741260543 TEXAS DOW ECU TEXA 3615809629 1001 FM 2004 LAKE JACKSON TX 77566 RHONDA PAVLICEK SVP & CFO 3615809629 2019-11-11 1 ROGER L DUNCAN CPA P01087367 7132605230 2019-11-08 64.88.174.3 2019-11-11 08:47:21 CS P 97D92075C6EE379448848CD26FB8B80609F1CB79 EB9921B5C1D79865F31329D6877805F15304C6FE 2018 2020-03-31 21:24:44Z RHONDA PAVLICEK 1001 FM 2004 LAKE JACKSON TX 77566 223916280 0 X WWW.TDECU.ORG X 1955 TX INCREASE ECONOMIC WELL-BEING OF OUR MEMBERS THROUGH NOT-FOR-PROFIT, COOPERATIVE FINANCIAL SERVICES. 11 11 957 0 2976511 -4297790 0 0 195046106 217190502 955836 2167801 -253705 -410090 195748237 218948213 0 0 0 0 61144074 61717006 0 0 0 113182680 121946249 174326754 183663255 21421483 35284958 3172342811 3269360348 2915744330 2978126438 256598481 291233910 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 303,418 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 122740 0 1 957 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 1 0 X 11 11 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 34500 0 3420 GEORGE HORNBACK DIRECTOR 4.00 X 14726 0 0 PEGGY MILTENBERGER DIRECTOR 4.00 X 22500 0 0 DAVID OZUNA DIRECTOR 4.00 X 2570 0 0 DICK SMITH DIRECTOR 4.00 X 37125 0 3808 ED ZINGLEMAN DIRECTOR 4.00 X 25500 0 354 EDWARD SPEED DIRECTOR 4.00 X 27375 0 3375 JACK ANTONINI DIRECTOR 4.00 X 9000 0 3375 ROLAND HENDRICKS DIRECTOR 4.00 X 35786 0 0 FRANK COE DIRECTOR 4.00 X 21375 0 0 ROBERT BALDWIN III DIRECTOR 4.00 X 9750 0 3375 ANITA SEHGAL DIRECTOR 4.00 X 22500 0 0 DAVID SIKORA DIRECTOR 4.00 X 12750 0 0 STEPHANIE SHERRODD PRESIDENT 40.00 X 1190855 0 22540 MILTON STEVENS SENIOR VP- RETAIL LENDING 40.00 X 421660 0 22240 ISAAC JOHNSON SENIOR VP & CRO 40.00 X 152370 0 916 RHONDA PAVLICEK SENIOR VP & CFO 40.00 X 486085 0 22240 CHARLES SMITH SENIOR VP & CLO 40.00 X 337903 0 17792 COURTLAND CROUCHET SENIOR VP - CRO 40.00 X 329208 0 21867 MURSHID KHAN SENIOR VP & CIO 40.00 X 270649 0 17032 MICHAEL HUBBELL VP - CRO 40.00 X 159042 0 14871 ALEXIS ALEJANDRO DE LA CRUZ SENIOR VP - CGSMO 40.00 X 150017 0 2216 WESLEY GARNER PRES - WEALTH MANAGEMENT 40.00 X 360128 0 19784 MILTON LUCAS VP BUSINESS SERVICES 40.00 X 174743 0 18267 GARY LANIER VP-STRATEGIC INITIATIVES 40.00 X 199700 0 19385 ETHAN RODNEY PACK DIRECTOR - ENTERPRISE ARCH 40.00 X 168066 0 12498 CONNIE CLARK PRESIDENT-INS AGENCY 40.00 X 194185 0 12596 BONITA TUCKER VP - OPERATIONS 40.00 X 213083 0 19459 LORETTA WILLIAMS VP - MORTGAGE LENDING 40.00 X 165065 0 17786 JASON SCHNEIDER VP - FINANCE 40.00 X 222125 0 20258 LUKE BILLERI II VP - MEMBER CENTERS 40.00 X 171877 0 13013 ANTHONY WARDEN VP - MEMBER CARE 40.00 X 195954 0 19167 KEITH HRNYAK VP - CONTROLLER 40.00 X 198445 0 17137 JOHN GALLO DIRECTOR - INFO. SEC. 40.00 X 191674 0 18987 MARCUS MANNING DIRECTOR - INFO MGMT ANALYTICS 40.00 X 205228 0 9376 LUCILLA HENDERSON VP- COMMUNITY & BUSINESS E 40.00 X 148353 0 18654 BETHANY DAVIS WEALTH ADVISOR 40.00 X 304524 0 23281 PATRICK BEALE WEALTH ADVISOR 40.00 X 241830 0 22488 KEVIN MCCOY II WEALTH ADVISOR 40.00 X 312848 0 22040 MARGARET HARTENSTINE VP - WHOLESALE LENDING 40.00 X 145112 0 16138 7586186 0 479735 71 0 1 0 PSCU 560 CARILLON PARKWAY ST PETERSBURG FL 33716 MEMBER CARE CALL CENTER, ONLINE BANKING 5334957 VISA USA 900 METRO CENTER BOULEVARD FOSTER CITY CA 94404 VISA MONTHLY BILLING, DEBIT CARD FEES 4884423 VANTIVWORLD PAY 8500 GOVERNORS HILL DRIVE CINCINNATI OH 45249 VANTIV STATEMENT PROCESSING FEES 2918456 LANVERA LTD 112 WRANGLER DRIVE SUITE 150 COPPELL TX 75019 MONTHLY NOTICES/FORMS/ESTATEMENTS 2090422 BUCEES 327 FM 2004 LAKE JACKSON TX 77566 FUEL DISCOUNTS/CC INTERCHANGE/ATM TRANSA 1604030 29 INTEREST ON LOANS 522100 147344534 147344534 FEE INCOME 522100 57792687 56898106 894581 OTHER OPERATING INCOME 522100 12053281 9971351 2081930 217190502 2084119 2084119 3852847 1198902 4022931 945136 -170084 253766 83682 83682 K-1 FROM BUSINESS FINA 900099 7519 7519 K-1 FROM ONAPPROACH LL 900099 -417609 -417609 -410090 218948213 214213991 2976511 1757711 6517492 40252517 1717299 9698852 3530846 872521 301074 11871953 6081257 6688899 1666825 9731035 2371982 18843011 8292439 642631 OTHER SERVICE FEES 30141799 PROVISION FOR LOAN LOSS 20499022 LOAN SERVICING EXPENSE 3941801 183663255 13169263 11205404 174566799 108965350 2589112 1389330 2853653057 2990230129 116531587 57989405 47906961 58542182 134590 19028761 13543040 11474061 66779989 68525131 3172342811 3269360348 51552110 30600725 1242226 904682 9951631 12327358 295318221 315592519 2557680142 2618701154 2915744330 2978126438 X 0 0 0 0 256598481 291233910 256598481 291233910 3172342811 3269360348 35284958 -649529 0 X X 0 1 X 1 0 0 1 X 18463373 18463373 40496924 14862615 25634309 6105657 4374105 1731552 48724841 38752685 9972156 2740792 2740792 58542182 MEMBERS' SHARES AND SAVINGS ACCOUNTS 2618701154 2618701154 X 219274625 -83682 -83682 219358307 -410094 -410094 218948213 184229102 -83682 -83682 184312784 -649529 -649529 183663255 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 2D - OTHER ADJUSTMENTS: GAIN/LOSS ON ASSETS AND INVESTMENTS -83,682. PART XI, LINE 4B - OTHER ADJUSTMENTS: K-1 FROM ONAPPROACH LLC -417,609. K-1 FROM BUSINESS FINANCIAL ALLIANCE SYSTEMS 7,519. ROUNDING -4. PART XII, LINE 2D - OTHER ADJUSTMENTS: GAIN/LOSS ON ASSETS AND INVESTMENT -83,682. PART XII, LINE 4B - OTHER ADJUSTMENTS: NET CHANGE IN UNREALIZED GAIN ON SECURITIES -649,529. X X X 1 1 X X X X X 0 1 0 STEPHANIE SHERRODD PRESIDENT 607500 0 220000 0 363355 0 10000 0 12540 0 1213395 0 0 0 MILTON STEVENS SENIOR VP- RETAIL LENDING 264469 0 60102 0 97089 0 10000 0 12240 0 443900 0 0 0 ISAAC JOHNSON SENIOR VP & CRO 92624 0 51964 0 7782 0 0 0 916 0 153286 0 0 0 RHONDA PAVLICEK SENIOR VP & CFO 312661 0 68618 0 104806 0 10000 0 12240 0 508325 0 0 0 CHARLES SMITH SENIOR VP & CLO 270969 0 57105 0 9829 0 6954 0 10838 0 355695 0 0 0 COURTLAND CROUCHET SENIOR VP - CRO 273262 0 55946 0 0 0 10000 0 11867 0 351075 0 0 0 MURSHID KHAN SENIOR VP & CIO 245000 0 25266 0 383 0 4335 0 12697 0 287681 0 0 0 MICHAEL HUBBELL VP - CRO 142724 0 16318 0 0 0 2709 0 12162 0 173913 0 0 0 ALEXIS ALEJANDRO DE LA CRUZ SENIOR VP - CGSMO 54808 0 0 0 95209 0 0 0 2216 0 152233 0 0 0 WESLEY GARNER PRES - WEALTH MANAGEMENT 175000 0 16621 0 168507 0 7664 0 12120 0 379912 0 0 0 MILTON LUCAS VP BUSINESS SERVICES 161331 0 13412 0 0 0 7156 0 11111 0 193010 0 0 0 GARY LANIER VP-STRATEGIC INITIATIVES 182631 0 17069 0 0 0 8159 0 11226 0 219085 0 0 0 ETHAN RODNEY PACK DIRECTOR - ENTERPRISE ARCH 168066 0 0 0 0 0 0 0 12498 0 180564 0 0 0 CONNIE CLARK PRESIDENT-INS AGENCY 192500 0 1636 0 49 0 654 0 11942 0 206781 0 0 0 BONITA TUCKER VP - OPERATIONS 185536 0 26104 0 1443 0 8465 0 10994 0 232542 0 0 0 LORETTA WILLIAMS VP - MORTGAGE LENDING 151385 0 13680 0 0 0 6656 0 11130 0 182851 0 0 0 JASON SCHNEIDER VP - FINANCE 199632 0 22493 0 0 0 7561 0 12697 0 242383 0 0 0 LUKE BILLERI II VP - MEMBER CENTERS 157500 0 14377 0 0 0 2326 0 10687 0 184890 0 0 0 ANTHONY WARDEN VP - MEMBER CARE 173940 0 22014 0 0 0 7972 0 11195 0 215121 0 0 0 KEITH HRNYAK VP - CONTROLLER 161151 0 22838 0 14456 0 6311 0 10826 0 215582 0 0 0 JOHN GALLO DIRECTOR - INFO. SEC. 183203 0 8471 0 0 0 7827 0 11160 0 210661 0 0 0 MARCUS MANNING DIRECTOR - INFO MGMT ANALYTICS 183853 0 19221 0 2154 0 8066 0 1310 0 214604 0 0 0 LUCILLA HENDERSON VP- COMMUNITY & BUSINESS E 133436 0 14917 0 0 0 6125 0 12529 0 167007 0 0 0 BETHANY DAVIS WEALTH ADVISOR 26000 0 14387 0 264137 0 10937 0 12344 0 327805 0 0 0 PATRICK BEALE WEALTH ADVISOR 26000 0 9990 0 205840 0 10148 0 12340 0 264318 0 0 0 KEVIN MCCOY II WEALTH ADVISOR 26000 0 11452 0 275396 0 10052 0 11988 0 334888 0 0 0 MARGARET HARTENSTINE VP - WHOLESALE LENDING 135385 0 9727 0 0 0 5090 0 11048 0 161250 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, LINE 4B 457(F) PLAN 2018 PURCHASE PAYMENTS: RHONDA PAVLICEK $ 41,978 MILTON E. STEVENS $ 35,516 CHARLES SMITH $ 36,136 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 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 71160 8930001 TDECU HOLDINGS LLC TDECU REAL ESTATE LLC 1001 FM 2004 LAKE JACKSON TX 77566 450957732 REAL ESTATE AGENCY TX 0 0 TDECU HOLDINGS LLC TDECU HOLDINGS LLC 1001 FM 2004 LAKE JACKSON TX 77566 453582513 HOLDING COMPANY TX 54070 9912578 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