2018-11-09T13:26:23-06:00 2017-12-31 420714325 RSM US LLP 801 NICOLLET MALL SUITE 1100 MINNEAPOLIS MN 55402 990 2017-01-01 940760540 PACIFIC POSTAL CREDIT UNION PACI 4082758595 1040 LEIGH AVENUE SAN JOSE CA 951264152 FARDAD KHOSRAVI PRESIDENT/CEO 4082758595 2018-11-07 1 GERALD B KISSELL P00092658 6123324300 108.171.131.189 2018-11-07 10:01:01 CS P BAAA55F19712D57DA335EB0D2886131656817A04 C0F43978DBA0C0105C9EC865D2B1B55C6AA9D490 2017 2019-02-21 02:37:17Z FARDAD KHOSRAVI 1040 LEIGH AVENUE SAN JOSE CA 951264152 8396976 0 X WWW.PPCU.ORG X 1931 CA PACIFIC POSTAL CREDIT UNION IS COMMITTED TO CREATING A BETTER LIFE FOR OUR MEMBER OWNERS BY BUILDING FINANCIAL PARTNERSHIPS AND PROVIDING COMPETITIVE SERVICES. 9 9 31 12 38272 -7449 0 0 4200024 4275140 3378796 4121836 0 0 7578820 8396976 0 0 605591 647552 2445712 2404971 0 0 0 3500491 3668185 6551794 6720708 1027026 1676268 216752575 220943903 186649863 190017607 30102712 30926296 PACIFIC POSTAL CREDIT UNION IS COMMITTED TO CREATING A BETTER LIFE FOR OUR MEMBER OWNERS BY BUILDING FINANCIAL PARTNERSHIPS AND PROVIDING COMPETITIVE SERVICES. 0 0 PACIFIC POSTAL CREDIT UNION PROVIDES CONSUMER FINANCIAL SERVICES TO POSTAL AND CIVIL SERVICE EMPLOYEES AND THEIR FAMILIES IN A DESIGNATED GEOGRAPHICAL AREA IN CALIFORNIA. THE CREDIT UNION PROVIDES A VAST ARRAY OF LOAN PRODUCTS TO MEMBERS AT COMPETITIVE MARKET RATES AND LOWER THAN MARKET FEES. DURING 2017 THE CREDIT UNION PROVIDED A TOTAL OF $33,764,287 IN LOAN DOLLARS TO ITS MEMBERS. THE CREDIT UNION PROVIDES DEPOSIT SERVICES TO MEMBERS AT LOWER THAN MARKET FEES. DURING 2017 MEMBERS INCREASED THEIR DEPOSIT ACCOUNTS BY $4,366,111 AND TOTAL MEMBERSHIP OF THE CREDIT UNION WAS 14,208 AT DECEMBER 31, 2017. FOR THE YEAR ENDED DECEMBER 31, 2017 THE PERCENTAGE OF FEE INCOME EARNED AS A PERCENTAGE OF TOTAL INCOME WAS 9.56%, WHICH IS LESS THAN HALF OF THE INDUSTRY STANDARD. 0 0 0 0 0 0 0 0 0 1 1 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 1 2844 0 1 31 1 1 1 0 0 0 0 0 X 9 9 0 0 0 0 1 1 1 1 1 0 1 1 0 1 1 1 0 1 1 1 0 CA X FARDAD KHOSRAVI 4082758595 1040 LEIGH AVENUE SAN JOSE CA 951264152 MICHAEL MEDLIN CHAIR 0.50 X X 0 0 0 LASHON FISCHER-ANDERSON VICE CHAIR 0.50 X X 0 0 0 JOSEPH COLE SECRETARY/TREASURER 0.50 X X 0 0 0 RICHARD SILVERIA DIRECTOR 0.50 X 0 0 0 MARIE FURTADO DIRECTOR 0.50 X 0 0 0 ROGER SOMER DIRECTOR 0.50 X 0 0 0 CAROL CROTEAU DIRECTOR 0.50 X 0 0 0 ROBERT SCALETTA DIRECTOR 0.50 X 0 0 0 JEOUNGRIM SHIN DIRECTOR 0.50 X 0 0 0 JAN MEERE PRESIDENT & CEO (1/1/17-5/31/17) 40.00 X 1232612 0 31915 FARDAD KHOSRAVI PRESIDENT & CEO (AS OF 6/1/17) 40.00 X 218078 0 56720 KAROLE MORIKAWA VP MARKETING 40.00 X 110459 0 18236 ELSA PHAM VP LENDING 40.00 X 106121 0 16867 KENNETH KLINGBEIL SENIOR BRANCH MANAGER 40.00 X 103821 0 23222 1771091 0 146960 5 0 1 0 AT&T 208 S AKARD ST DALLAS TX 75202 COMMUNICATIONS 240285 CO-OP FINANCIAL SERVICES 9692 HAVEN AVE RANCHO CUCAMONGA CA 91730 ATM SERVICES 237796 FIS 7805 HUDSON RD WOODBURY MN 55125 VISA PROCESSING 142161 CUBUS 3049 INDEPENDENCE DR SUITE A LIVERMORE CA 94551 HOMEBANKING 133477 4 INTEREST FROM LOANS 522100 3071192 3071192 FEE & CHARGES INCOME 522100 680194 641922 38272 DEBIT CARD INTERCHANGE INCOME 522100 258768 258768 VISA INTERCHANGE INCOME 522100 142663 142663 OTHER INCOME 522100 122323 122323 4275140 4121836 4121836 8396976 4236868 38272 4121836 647552 1540748 302213 47532 211490 302988 223618 98978 75571 255929 450345 69347 59202 78804 INVESTMENT PREMIUM AMOR 1282244 LOAN/VISA EXPENSES 281865 PROVISION FOR LOAN LOSS 281542 ATM EXPENSES 241165 269575 6720708 3911138 1158279 38723 1012636 3013221 56185435 57653924 413526 498986 5351556 4805491 432549 546065 146915133 145127967 374208 363269 8481863 11569556 216752575 220943903 2389507 1421140 184260356 188596467 186649863 190017607 X 0 0 0 0 30102712 30926296 30102712 30926296 216752575 220943903 1676268 -852684 0 X 0 1 X 1 0 67017 67017 1763480 1513297 250183 3521059 3292194 228865 546065 DEPOSITS IN CORPORATE CREDIT UNIONS 24360210 C INVESTMENTS VAULUATION -2173181 F PREPAID INVESTMENT PREMIUMS 7617268 C STOCK 25000 C CD RATELINE 22741000 C FNC 2480000 C AVAILABLE FOR SALE INVESTMETNS 90077670 F 145127967 ACCRUED INCOME 682976 NCUSIF DEPOSIT 1794933 OTHER ASSETS 9091647 11569556 MEMBER SHARE DEPOSITS 188596467 188596467 X 1 1 X X X 0 1 0 JAN MEERE PRESIDENT & CEO (1/1/17-5/31/17) 111044 0 0 0 1121568 0 18900 0 13426 0 1264938 0 837126 0 FARDAD KHOSRAVI PRESIDENT & CEO (AS OF 6/1/17) 218078 0 0 0 0 0 47004 0 10729 0 275811 0 0 0 PART I, LINE 1A TRAVEL FOR COMPANIONS - THE CREDIT UNION PAYS TRAVEL EXPENSES FOR BOARD AND MANAGEMENT SPOUSES WHEN THEY ATTEND CONFERENCES. THIS INCLUDES TRAVEL, MEALS, AND LODGING. THE TRAVEL FOR SPOUSES IS TAXABLE TO THE RECIPIENT. PART I, LINE 4B THE CREDIT UNION HAS A NONQUALIFIED DEFERRED COMPENSATION PLAN IN PLACE FOR CERTAIN EXECUTIVES AS DESCRIBED IN SECTION 457(F). AMOUNTS ACCRUED UNDER SUCH A PLAN ARE PROPERLY REFLECTED IN PART VII, COLUMN F AND IN SCHEDULE J, PART II, COLUMN C. ADDITIONAL TERMS AND CONDITIONS OF SUCH PLAN ARE AVAILABLE TO THE IRS UPON REQUEST. THE AMOUNTS PAID IN 2017 WERE AS FOLLOWS: JAN MEERE - $1,121,568 FARDAD KHOSRAVI - $0 FARDAD KHOSRAVI PRESIDENT/CEO NONRECOURSE SPLIT-DOLLAR LOAN X 3000000 3013221 0 1 1 3013221 FORM 990, SCHEDULE R, PART II - LOANS TO/FROM INTERESTED PERSONS REPRESENTATION UNDER 26 C.F.R. SECTION 1.7872-15(D)(2)REGARDING NONRECOURSE SPLIT DOLLAR LOAN IS AVAILABLE TO THE IRS UPON REQUEST. FORM 990, PART VI, SECTION A, LINE 6 THE CREDIT UNION'S MEMBERS HAVE RIGHTS TO ELECT THE MEMBERS OF THE GOVERNING BODY. THE CREDIT UNION'S MEMBERS ALSO RECEIVE A SHARE OF THE ORGANIZATION'S PROFITS IN THE FORM OF CASH DIVIDENDS. FORM 990, PART VI, SECTION A, LINE 7A MEMBERS OF THE CREDIT UNION HAVE THE RIGHT TO ELECT ONE OR MORE MEMBERS OF THE ORGANIZATION'S GOVERNING BODY, WHETHER PERIODICALLY, OR AS VACANCIES ARISE, OR OTHERWISE. FORM 990, PART VI, SECTION A, LINE 7B MEMBERS OF THE CREDIT UNION HAVE THE RIGHT TO APPROVE THE GOVERNING BODY'S ELECTION AND REMOVAL OF MEMBERS OF THE GOVERNING BODY, AS WELL AS OTHER MATTERS THAT ARE SUBJECT TO THE APPROVAL OF MEMBERS OF THE CREDIT UNION AS THEY OCCUR. FORM 990, PART VI, SECTION B, LINE 11B FORM 990 IS REVIEWED BY THE PRESIDENT/CEO FOR ACCURACY BEFORE FILING WITH THE IRS. THE BOARD OF DIRECTORS REVIEWS FORM 990 AFTER IT HAS BEEN FILED WITH THE IRS. FORM 990, PART VI, SECTION B, LINE 12C ALL VENDOR CONTRACTS ARE BOARD APPROVED. MANAGEMENT MONITORS AND REPORTS ANY CONFLICTS TO THE CEO WHO THEN REPORTS TO THE BOARD OF DIRECTORS. FORM 990, PART VI, SECTION B, LINE 15 THE CEO'S SALARY IS RECOMMENDED TO THE BOARD OF DIRECTORS BY THE CEO EVALUATION COMMITTEE. SALARY IS DETERMINED BASED ON ACHIEVEMENT OF GOALS SET AND A COMPARISON WITH OTHER CEO SALARIES IN LIKE CU'S. THE CEO SETS SALARIES FOR MANAGEMENT BASED ON A PERFORMANCE APPRAISAL. RANGES FOR POSITIONS ARE SET BASED ON A 3RD PARTY SURVEY. FORM 990, PART VI, SECTION C, LINE 19 FINANCIAL STATEMENTS, CONFLICT OF INTEREST POLICY AND GOVERNING DOCUMENTS ARE AVAILABLE UPON REQUEST FOR THE SAME PERIOD OF DISCLOSURE AS SET FORTH IN SECTION 6104(D).