2019-11-15T14:25:19-06:00 2018-12-31 382492570 DOEREN MAYHEW 305 W BIG BEAVER ROAD TROY MI 48084 990 2018-01-01 381796409 CREDIT UNIONS CHARTERED IN THE STATE OF MICHIGAN FRANKENMUTH CREDIT UNION CRED 9894971600 P O BOX 209 FRANKENMUTH MI 48734 VICKIE SCHMITZER CEO 9894971623 2019-11-11 1 JACK TRACY P01974742 2482443000 104.11.88.150 2019-11-11 23:56:13 ES P DA39A3EE5E6B4B0D3255BFEF95601890AFD80709 A7DB26C3BB201601930FCFA0C4651552B54C26A2 2018 2020-03-31 21:24:44Z VICKIE SCHMITZER P O BOX 209 FRANKENMUTH MI 48734 46982368 0 X WWW.FRANKENMUTHCU.ORG X 1964 MI PROVIDE FINANCIAL SERVICES TO MEMBER OWNERS WITH A COMMON BOND. 9 9 271 10 150172 0 0 0 36942616 44958969 626777 975555 -103634 -45606 37465759 45888918 11500 10000 0 0 12302579 16478863 0 0 0 16824385 23565634 29138464 40054497 8327295 5834421 567059424 651460923 507004031 585506773 60055393 65954150 PROVIDE SAFE, CONVENIENT, COST EFFECTIVE SERVICES FOR THE FINANCIAL WELL BEING OF THE CREDIT UNION AND ITS MEMBERS. AND TO GROW TRUSTED RELATIONSHIPS BY PROVIDING PERSONALIZED FINANCIAL SOLUTIONS. 0 0 PROVIDE 45,727 MEMBERS WITH SHARES, SHARE DRAFTS, BUSINESS CHECKING, MONEY MARKET, CLUB, HEALTH SAVINGS, IRA AND CERTIFICATE OF DEPOSIT ACCOUNTS TOTALING 98,467. PROVIDE 40,498 SHARE SECURED, STUDENT, SIGNATURE, PAYMENT SHAVER, BUSINESS, HOME EQUITY, LINE OF CREDIT, NEW AND USED VEHICLE, RECREATIONAL VEHICLE, HOME IMPROVEMENT, CREDIT CARD, DRIVING SENSE AND MORTGAGE LOANS. OFFER AUTOMATED TELLER MACHINES, DEBIT CARDS, SHARED BRANCHING, TRAVELERS CHECKS, MONEY ORDERS, COURTESY PAY, WIRE TRANSFERS, GIFT CHECKS, BILL PAY AND VARIOUS INSURANCE PROGRAMS TO ALL ELIGIBLE MEMBERS. 0 0 0 0 0 0 0 0 0 1 0 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 0 1 1 0 1 0 0 1 0 0 0 0 0 1 1 0 0 1 12207 0 1 271 1 1 1 0 0 0 0 0 0 0 X 9 9 0 0 0 0 1 1 1 1 1 0 0 0 1 1 1 1 1 1 1 0 X FRANKENMUTH CREDIT UNION 9894971600 580 N MAIN ST FRANKENMUTH MI 48734 PETER BENDER CHAIRPERSON 6.00 X 0 0 0 CHERYL LOEFFLER VICE CHAIRPERSON 6.00 X 0 0 0 RICHARD REIF SECRETARY 6.00 X 0 0 0 BRIAN DIXON TREASURER 6.00 X 0 0 0 TIMOTHY HILDNER DIRECTOR 6.00 X 0 0 0 JILL CATTERFELD DIRECTOR 6.00 X 0 0 0 MICHAEL FASSEZKE DIRECTOR 6.00 X 0 0 0 TIFFANY LOBODZINSKI DIRECTOR 6.00 X 0 0 0 AMY ZEHNDER-GROSSI DIRECTOR 6.00 X 0 0 0 VICKIE SCHMITZER CEO 56.48 X 545226 0 33186 DONNA HAUBENSTRICKER VP OF FINANCE 45.62 X 212258 0 26800 VICTORIA DEGRACE COLLECTIONS MANAGER 43.10 X 160716 0 10182 BRAD GNATKOWSKI MORTGAGE ORIGINATOR 40.00 X 154630 0 15502 WILLIAM WATCHORN MORTGAGE ORIGINATOR 40.00 X 183291 0 10967 DEBRA BAUER DIRECTOR OF MEMBER SERVICE 46.71 X 119264 0 20094 JAMES BICKEL VP OF BUSINESS SERVICES 40.00 X 121969 0 13297 HOLLIE BRITTON VP OF LENDING 40.00 X 119455 0 22601 BRIDGET COOK MORTGAGES MANAGER 40.00 X 113407 0 12895 STEVEN MASKER MEMBER INVESTMENT CENTER MANAGER 40.00 X 110965 0 12865 1841181 0 178389 11 0 1 0 SPENCE BROTHERS 203 S WASHINGTON AVE SUITE 360 SAGINAW MI 48607 CONSTRUCTION 6160521 CUANSWERS 6000 28TH STREET SE SUITE 100 GRAND RAPIDS MI 49546 DATA PROCESSING 1428891 TSSF ARCHITECTS INC 122 N WASHINGTON AVENUE SAGINAW MI 48607 ARCHITECT 1100968 INFORMA BUSINESS SYSTEMS 5170 HARTSHORN DRIVE FLUSHING MI 48433 ATM/ITM SERVICES 939737 CO-OP 9692 HAVEN AVENUE RANCHO CUCAMONGA CA 91730 DEBIT AND CREDIT PROCESSING 467994 21 LOAN INTEREST INCOME 522100 29377062 29377062 FEE AND OTHER INCOME 522100 15431735 15431735 NON-MEMBER ATM INCOME 900099 91635 91635 NON-MEMBER INSURANCE INCOME 524298 52662 52662 NON-MEMBER SHARED BRANCH INCOME 522100 5875 5875 44958969 1080224 1080224 298575 344181 -45606 -45606 -45606 644600 749269 -104669 -104669 -104669 45888918 45738746 150172 0 10000 1352758 10565927 558580 2922720 1078878 165837 118857 29687 194673 757604 3029155 476919 1290342 88402 306388 4622520 2093168 208245 PROVISION FOR LOAN LOSS 5853254 OTHER OPERATING EXPENSE 2826497 LOAN SERVICING 1293741 EXAMINATION FEES & ASSO 210345 40054497 6778862 8751411 10571129 22438905 1429180 2667910 2907171 459972563 525018882 780483 868615 53436134 7988314 32809346 45447820 35048533 19929197 6222714 3263858 5040545 13446614 15126609 567059424 651460923 5285240 7354066 26275000 31052877 475443791 547099830 507004031 585506773 X 0 0 0 0 60055393 65954150 60055393 65954150 567059424 651460923 5834421 64336 0 X X 0 1 X 1 0 4787681 4787681 38327560 4596741 33730819 1831080 264232 1566848 8489813 3127341 5362472 45447820 MEMBER SHARES AND DEPOSITS 547099830 547099830 X 46377922 0 46377922 -489004 -489004 45888918 40543501 489004 489004 40054497 0 40054497 PART X, LINE 2: THE CREDIT UNION IS EXEMPT FROM MOST FEDERAL, STATE, AND LOCAL TAXES UNDER THE PROVISIONS OF THE INTERNAL REVENUE CODE AND STATE TAX LAWS. THE INCOME TAXES TOPIC OF THE FASB ASC CLARIFIES ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES REPORTED IN THE CONSOLIDATED FINANCIAL STATEMENTS. THE INTERPRETATION PROVIDES CRITERIA FOR ASSESSMENT OF INDIVIDUAL TAX POSITIONS AND A PROCESS FOR RECOGNITION AND MEASUREMENT OF UNCERTAIN TAX POSITIONS. TAX POSITIONS ARE EVALUATED ON WHETHER THEY MEET THE "MORE LIKELY THAN NOT" STANDARD FOR SUSTAINABILITY UPON EXAMINATION BY TAX AUTHORITIES. THE CREDIT UNION IS A STATE-CHARTERED CREDIT UNION AS DEFINED 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 DIRECTLY RELATED TO ITS EXEMPT PURPOSES. ADDITIONALLY, IRC SECTION 511 IMPOSES A TAX ON THE UNRELATED BUSINESS INCOME (UBI) DERIVED BY STATE-CHARTERED CREDIT UNIONS. BEGINNING IN MARCH 2008, THE INTERNAL REVENUE SERVICE (IRS) RELEASED TECHNICAL ADVICE MEMORANDUMS (TAMS) TO SPECIFIC STATE-CHARTERED CREDIT UNIONS SPECIFYING THE REVENUE SOURCES SUBJECT TO UNRELATED BUSINESS INCOME TAX (UBIT). UBI MAY ALSO BE SUBJECT TO TAX IN CERTAIN STATES. MANAGEMENT HAS ASSESSED THE CREDIT UNION'S ACTIVITIES AND ANY POTENTIAL FEDERAL OR STATE INCOME TAX LIABILITY AND DETERMINED THAT THE CREDIT UNION HAS NO UNCERTAIN TAX POSITIONS THAT QUALIFY FOR EITHER RECOGNITION OR DISCLOSURE IN THE CONSOLIDATED FINANCIAL STATEMENTS. PART XI, LINE 4B - OTHER ADJUSTMENTS: RENTAL EXPENSE IS REPORTED AS A REDUCTION OF RENTAL REVENUE IN FORM 990 BUT INCLUDED IN EXPENSES IN THE AUDITED FINANCIAL STATEMENTS -344,181. GAIN ON SALE OF INVESTMENTS INCLUDED IN OTHER OPERATING REVENUE ON AUDITED FINANCIAL STATEMENTS -104,669. CUSO INCOME IN OTHER OPERATING INCOME ON AUDITED FINANCIAL STATEMENTS -40,154. PART XII, LINE 2D - OTHER ADJUSTMENTS: RENTAL EXPENSE IS REPORTED AS A REDUCTION OF RENTAL REVENUE IN FORM 990 BUT INCLUDED IN EXPENSES IN THE AUDITED FINANCIAL STATEMENTS 344,181. GAIN ON SALE OF INVESTMENTS INCLUDED IN OTHER OPERATING REVENUE ON AUDITED FINANCIAL STATEMENTS 104,669. CUSO INCOME IN OTHER OPERATING INCOME ON AUDITED FINANCIAL STATEMENTS 40,154. 1 SCHOLARSHIPS 20 10000 PART I, LINE 2: EACH YEAR THE CREDIT UNION AWARDS SEVEN SCHOLARSHIPS ANNUALLY TO SEVEN SENIORS, WHO ARE MEMBERS OF THE CREDIT UNION, THAT ARE GRADUATING FROM HIGH SCHOOL. THE INDIVIDUAL RECEIVES $500 EACH YEAR THEY ARE ATTENDING COLLEGE FOR A PERIOD OF 4 YEARS. THE SELECTION IS BASED ON ACHIEVEMENTS IN TWO AREAS. THEY MUST BE INVOLVED IN EXTRA-CURRICULAR ACTIVITES AND SUBMIT A WRITTEN ESSAY ON A TOPIC CHOSEN BY THE CREDIT UNION. X X 1 1 X X X X 0 1 0 VICKIE SCHMITZER CEO 345216 0 200010 0 0 0 10500 0 22686 0 578412 0 0 0 DONNA HAUBENSTRICKER VP OF FINANCE 179502 0 32756 0 0 0 8509 0 18291 0 239058 0 0 0 VICTORIA DEGRACE COLLECTIONS MANAGER 106084 0 54632 0 0 0 7553 0 2629 0 170898 0 0 0 BRAD GNATKOWSKI MORTGAGE ORIGINATOR 33134 0 121496 0 0 0 7653 0 7849 0 170132 0 0 0 WILLIAM WATCHORN MORTGAGE ORIGINATOR 24884 0 158407 0 0 0 7975 0 2992 0 194258 0 0 0 PART I, LINE 1A CHARTER TRAVEL IS USED ONLY IF NECESSARY FOR BUSINESS. PART I, LINE 4B THE CREDIT UNION PROVIDES SUPPLEMENTAL RETIREMENT BENEFITS TO VICKIE SCHMITZER, CEO THROUGH AN ARRANGEMENT REFERRED TO AS "COLLATERAL ASSIGNED SPLIT DOLLAR." THE CASH SURRENDER VALUE OF THE LIFE INSURANCE POLICY WAS $1,322,232 AT DECEMBER 31, 2018. AT SPECIFIED TIMES, THE PARTICIPANTS MAY BORROW FUNDS FROM THE CASH SURRENDER VALUE OF THE UNDERLYING LIFE INSURANCE POLICY TO SUPPLEMENT RETIREMENT INCOME. THESE DRAWS ARE TAX FREE FOR THE PARTICIPANT. UPON THE PARTICIPANT'S DEATH THE CREDIT UNION RECOVERS ITS PREMIUMS PLUS INTEREST, PLUS KEY-PERSON INSURANCE PROCEEDS. VICKI SCHMITZER CEO RETIREMENT DEATH BENEFIT X 2907171 2907171 0 1 1 2907171 BRANDON SCHMITZER HEAD OF MAINTENA CREDIT UNION EMPLOYEE WITH FAMILY RELATIONSHIP WITH THE CEO 100391 EMPLOYEE COMPENSATION AND BENEFITS 0 KARI SCHMITZER HR DIRECTOR CREDIT UNION EMPLOYEE WITH FAMILY RELATIONSHIP WITH THE CEO 106387 EMPLOYEE COMPENSATION AND BENEFITS 0 SCH L, PART II THE CREDIT UNION PROVIDES SUPPLEMENTAL RETIREMENT BENEFITS THROUGH AN ARRANGEMENT REFERRED TO AS A "COLLATERAL ASSIGNED SPLIT DOLLAR." ALTHOUGH THE IRS REQUIRES REPORTING IN PART II AS A LOAN TO AN INTERESTED PARTY, THIS IS NOT AN ACTUAL LOAN. THERE IS NO TRANSFER OF FUNDS TO THE PARTICIPANTS NOR AN OBLIGATION TO REPAY THE FUNDS. INSTEAD THE CREDIT UNION RECOVERS ANY OUTLAYS, PLUS INTEREST, FROM THE UNDERLYING POLICY. THAT IS, THE CREDIT UNION DEPOSITS FUNDS DIRECTLY INTO A LIFE INSURANCE POLICY TO ENSURE REPAYMENT. AT SPECIFIED TIMES, THE PARTICIPANTS MAY BORROW FUNDS FROM THE CASH SURRENDER VALUE OF THE POLICY TO SUPPLEMENT RETIREMENT INCOME. THE BORROWINGS ARE MONITORED TO ENSURE THE POLICY WILL PAY A DEATH BENEFIT AT LEAST SUFFICIENT TO COVER THE CREDIT UNION'S OUTLAYS PLUS INTEREST. ANY REMAINING DEATH BENEFITS ARE DIVIDED BETWEEN THE CREDIT UNION AND THE PARTICIPANT'S BENEFICIARIES AS AGREED UPON. FORM 990, PART VI, SECTION A, LINE 6 THE CREDIT UNION HAS A SINGLE CLASS OF MEMBERS WITH EQUAL RIGHTS OF OWNERSHIP, GOVERNANCE AND VOTING. FORM 990, PART VI, SECTION A, LINE 7A THE BOARD OF DIRECTORS IS ELECTED BY MEMBERS VOTING AT THE ANNUAL MEETING FOR 3 YEAR TERMS. FORM 990, PART VI, SECTION A, LINE 7B THE CREDIT UNION NEEDS MEMBER APPROVAL FOR MERGERS. FORM 990, PART VI, SECTION B, LINE 11B THE 990 IS REVIEWED BY THE CEO PRIOR TO FILING. SUBSEQUENT TO FILING, THE BOARD OF DIRECTORS AND AUDIT COMMITTEE IS PROVIDED WITH A COPY OF THE 990 RETURNS SUBMITTED. FORM 990, PART VI, SECTION B, LINE 12C CONFLICT OF INTEREST POLICY IS REVIEWED AT THE ORGANIZATIONAL MEETING AND MONITORED BY THE INTERNAL COMPLIANCE OFFICER. FORM 990, PART VI, SECTION B, LINE 15 THE COMPENSATION COMMITTEE ESTABLISHES COMPENSATION FOR CEO USING INDEPENDENT CONSULTANT AND SURVEYS. THE COMPENSATION IS APPROVED BY THE BOARD OF DIRECTORS. THE VICE PRESIDENT OF FINANCE'S COMPENSATION IS DETERMINED BY THE CEO WITH APPROVAL FROM THE BOARD BASED ON CUES AND MI CREDIT UNION LEAGUE SURVEYS AND BONUS PAID BY GOALS BEING MET. FORM 990, PART VI, SECTION C, LINE 19 THE MONTHLY FINANCIAL STATEMENTS ARE POSTED IN THE CREDIT UNION LOBBY. ALL OTHER DOCUMENTS AND POLICIES ARE AVAILABLE FOR REVIEW UPON REQUEST. FORM 990, PART XII, LINE 2C THERE WERE NO CHANGES IN THE PROCESS OF THE COMMITTEE THAT ASSUMES RESPONSIBILITY OF THE OVERSIGHT OF THE AUDIT AND SELECTION OF THE INDEPENDENT AUDITOR. MY MEMBER INSURANCE AGENCY PO BOX 209 FRANKENMUTH MI 49734 473157237 INSURANCE SALES MI -522218 6139626 FRANKENMUTH CREDIT UNION NEIGHBORHOOD INCOME SOLUTIONS 1100 S BAGLEY ST ALPENA MI 49707 464364566 HOLDING COMPANY MI RELATED 450329 6828065 0 0 0.33330 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0