2018-11-15T10:06:30-06:00 2017-12-31 410746749 CLIFTONLARSONALLEN LLP PO BOX 217 AUSTIN MN 55912 990 2017-01-01 390827305 MARINE CREDIT UNION MARI 6087911543 811 MONITOR STREET LA CROSSE WI 54603 BILL JAMES CFO 6087911543 2018-11-14 1 MARTY LIENAU P00001025 5074347000 67.137.57.251 2018-11-14 12:09:27 CS P 18794D93E6043908D9C9A4CBEB9D5665E7590A55 3EEEC8B090C07D7EECF61F1A8A191FC1967D2E7A 2017 2019-02-21 02:37:17Z SHAWN HANSON 811 MONITOR STREET LA CROSSE WI 54603 66015872 0 2157 X WWW.MARINECU.COM X CU 1949 WI WE WILL SERVE MORE OF THE UNDERSERVED WITH PRODUCTS, SERVICE, TIME AND GIVING. 7 6 682 6 100888 -138296 0 0 53663880 60267884 2268297 1262614 0 -686 55932177 61529812 0 0 1378875 1966998 28136710 28414398 0 0 0 16723790 25428152 46239375 55809548 9692802 5720264 689785890 755546355 614162153 674225520 75623737 81320835 WE WILL SERVE MORE OF THE UNDERSERVED WITH PRODUCTS, SERVICE, TIME AND GIVING. WE WILL INCREASE THE NUMBER AND PERCENTAGE OF CUSTOMERS AVAILING THEMSELVES OF A VARIETY OF HIGH QUALITY SERVICES. 0 0 DEPOSIT TAKING - MARINE CREDIT UNION ACTS AS A FINANCIAL INTERMEDIARY IN EACH OF THE COMMUNITIES IT SERVES. EACH OF OUR 75,828 MEMBERS HAS AT LEAST ONE SAVINGS ACCOUNT AND THESE MEMBERS HAVE OVER 44,740 CHECKING ACCOUNTS WITH MARINE. WE OFTEN PROVIDE THESE SERVICES AT A LOWER COST THAN WHAT WOULD OTHERWISE BE AVAILABLE. WE PROTECT OVER $482,655,977 MILLION OF INSURED FUNDS ON BEHALF OF OUR DEPOSITORS. MORTGAGE LENDING - MARINE CREDIT UNION IS AN INTEGRAL PART OF THE COMMUNITIES WE SERVE BY PROVIDING OVER 905 LOANS TOTALING OVER $80,301,992. THESE LOANS ARE USED BY BORROWERS TO PURCHASE, REFINANCE OR IMPROVE THEIR HOMES. CURRENT MORTGAGE LOANS OUTSTANDING EXCEED $345,702,741. CONSUMER LENDING - MARINE CREDIT UNION IS A FULL SERVICE CONSUMER LENDING INSTITUTION. IN 2017 WE GRANTED OVER 17,364 CONSUMER LOANS FOR A TOTAL OF OVER $180,585,256. THESE LOANS ARE USED BY OUR BORROWERS TO CONSOLIDATE DEBT, PURCHASE GOODS SUCH AS AUTOMOBILES AND RECREATIONAL VEHICLES AND TO FINANCE CONTINUING EDUCATION EXPENSES. THE TOTAL CONSUMER LOAN PORTFOLIO IS GREATER THAN $243,579,814. 0 0 0 0 0 0 0 1 0 1 0 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 1 0 0 0 1 12710 0 1 682 1 1 1 0 0 0 0 0 X 7 6 0 0 0 0 1 1 1 1 0 0 0 0 1 1 0 1 1 1 1 0 X BILL JAMES 6087911543 811 MONITOR STREET LA CROSSE WI 54603 TOM KNOTHE CHAIRMAN 10.00 X X 12000 0 0 WILLIAM MAAS DIRECTOR 1.00 X 0 0 0 WILLIAM SACIA VICE CHAIRMAN 1.00 X X 0 0 0 ROBERT WOLF DIRECTOR 1.00 X 0 0 0 ROBERT CARNEY TREASURER 1.00 X X 0 0 0 MARK REED SECRETARY 1.00 X X 0 0 0 STEVE ROSS DIRECTOR 1.00 X 0 0 0 RICHARD SWANTZ DIRECTOR 1.00 X 0 0 0 SHAWN L HANSON PRESIDENT/CEO 40.00 X 412123 0 27856 BILL JAMES CFO 40.00 X 310573 0 25894 TIM CRUCIANI LEFT 2017 EXECUTIVE VICE PRESIDENT 40.00 X 53827 0 7239 ADAM KEER COO 40.00 X 225245 0 32575 KENNETH BROSSMAN SENIOR VP REGIONAL MANAGER 40.00 X 181628 0 29389 MARK BARKER SVP-REGIONAL MANAGER 40.00 X 196549 0 14553 JACK KALANDER CHIEF INFORMATION OFFICER 40.00 X 207659 0 31270 JASON COBB SENIOR VP OF OPERATIONS 40.00 X 164343 0 32076 KENNETH DOWNS VICE PRESIDENT OF IT 40.00 X 169124 0 23406 THOMAS WALDHART CONTROLLER 40.00 X 174162 0 8134 TROY MOEN VICE PRESIDENT OF OPERATIO 40.00 X 164091 0 32074 MICHAEL MAXWELL VICE PRESIDENT OF LENDING 40.00 X 177429 0 25601 RONALD COCKLE SENIOR VICE PRESIDENT BUSINESS DEVELOPMENT 40.00 X 157428 0 18144 2606181 0 308211 30 0 1 0 MDT 30230 ORCHARD LAKE ROAD FARMINGTON HILLS MI 58334 CORE SYSTEM AND SUPPORT 1206954 JACK HENRY 663 WEST HIGHWAY 60 MONETT MO 65708 ATM DEBIT CARD PROCESSING 781161 TRANSUNION PO BOX 99506 CHICAGO IL 606939506 CREDIT REPORTS 326763 EOJOHNSON PO BOX 629 WAUSAU WI 544020629 COPIERS AND IMAGES 297866 CDW PO BOX 75723 CHICAGO IL 606755723 HARDWARE & IT SERVICES 241822 15 LOAN INTEREST 522100 44865618 44865618 FEE INCOME 522100 15397009 15296121 100888 OTHER OPERATING INCOME 522100 5257 5257 60267884 755261 755261 4451837 541576 4458583 27477 -6746 514099 507353 507353 K-1 - COMMUNITY BUSINESS LENDERS 900099 -686 -686 -686 61529812 60166310 100888 1262614 1966998 1964800 20349089 466745 3891622 1742142 213110 148934 3066103 454303 2003439 1966055 809787 1443265 1691646 PROVISION FOR LOAN LOSS 10010371 LOAN SERVICING EXPENSE 1873273 MISCELLANEOUS OPERATING 1711249 MEMBER INSURANCE EXPENS 36617 55809548 85458245 75065024 10001926 5910064 16879271 17891652 532933833 600684272 11491139 14655044 41463808 17826208 17713720 23637600 7800664 7385704 7507092 10316995 689785890 755546355 6525372 7469801 14155 7514 176964000 170764000 430658626 495984205 614162153 674225520 X 0 0 0 0 75623737 81320835 75623737 81320835 689785890 755546355 X 5720264 -23166 X 0 1 X 1 0 1 1050283 324764 725519 1 X 5417287 5417287 22919657 7938821 14980836 514678 470018 44660 12523018 9417369 3105649 89168 89168 23637600 SHARE DRAFTS 95344638 REGULAR SHARES 133270472 MONEY MARKET SHARES 117087739 IRA/KEOGH ACCOUNT 7506524 SHARE CERTIFICATES 142774832 495984205 X 61530498 0 61530498 -686 -686 61529812 0 0 0 0 0 PART IV, LINE 1B: MCU SERVICES SECONDARY MARKET LOANS FOR FHLB/MPF XTRA PROGRAM PART IV, LINE 2B: ESCROW ACCOUNTS WERE HELD AT BORROWER LEVEL FOR TAXES AND INSURANCE PART X, LINE 2: THE CREDIT UNION IS EXEMPT, UNDER INTERNAL REVENUE CODE (IRC) SECTION 501(C)(14), FROM FEDERAL AND STATE INCOME TAXES. CERTAIN PRODUCTS AND SERVICES PROVIDED BY SELECT STATE CHARTERED CREDIT UNIONS HAVE BEEN DEEMED BY THE INTERNAL REVENUE SERVICE (IRS), IN TECHNICAL ADVICE MEMORANDUMS (TAMS)RELEASED IN 2007, TO BE UNRELATED TO THE SPECIFIC ENTITY'S EXEMPT PURPOSE. AS PRESENTED IN THE TECHNICAL ADVICE MEMORANDUMS THE NET TAXABLE INCOME FROM THESE PRODUCTS AND SERVICES WOULD BE SUBJECT TO INCOME TAXES. CREDIT UNIONS HAVE LITIGATED AGAINST THE IRS POSITIONS NOTED IN THE TAMS AND HAVE BEEN SUCCESSFUL IN HAVING COURTS DECLARE IN 2009 AND 2010 THAT REVENUE FROM INSURANCE PRODUCTS SOLD TO MEMBERS, HELPING THEM PROTECT THEIR FINANCIAL WELL-BEING, QUALIFIES AS EXEMPT PURPOSE INCOME, CONTRARY TO THE IRS POSITION IN THE TAMS. THE CREDIT UNION WILL BE FILING ITS TAX RETURNS FOR CALENDAR YEAR 2017, AND HAS FILED ITS TAX RETURNS FOR CALENDAR YEAR 2016 FOR ACTIVITIES DEEMED TAXABLE AND HAS A NET OPERATING LOSS CARRYFORWARD AS OF THE 2017 CALENDAR YEAR. THE TAXING AUTHORITIES HAVE THE ABILITY TO ASSESS TAXES, PENALTIES, AND INTEREST FOR ANY YEARS FOR WHICH NO TAX RETURN WAS FILED. IN THE OPINION OF MANAGEMENT, ANY LIABILITY RESULTING FROM TAXING AUTHORITIES IMPOSING INCOME TAXES ON THE NET TAXABLE INCOME FROM ACTIVITIES POTENTIALLY DEEMED TO BE UNRELATED TO THE CREDIT UNION'S EXEMPT PURPOSE IS NOT EXPECTED TO HAVE A MATERIAL EFFECT ON THE CREDIT UNION'S CONSOLIDATED FINANCIAL POSITION OR RESULTS OF OPERATIONS. THE CREDIT UNION EVALUATED ITS TAX POSITIONS AND DETERMINED NO UNCERTAIN TAX POSITIONS EXIST AS OF DECEMBER 31, 2017 AND 2016. THE CREDIT UNION'S 2014 AND SUBSEQUENT TAX YEARS ARE OPEN FOR EXAMINATION BY FEDERAL TAXING AUTHORITIES, AND 2013 AND SUBSEQUENT TAX YEARS ARE OPEN FOR EXAMINATION BY STATE TAXING AUTHORITIES. EARNINGS AND LOSSES FROM THE CUSO'S, ORGANIZED AS LLC'S, FLOW AT THE ENTITY LEVEL THROUGH TO THE CREDIT UNION AND, THEREFORE, ARE NOT SUBJECT TO FEDERAL AND STATE INCOME TAXES. PART XI, LINE 4B - OTHER ADJUSTMENTS: PARTNERSHIP INCOME -686. X 1 0 X X X X X 0 0 0 SHAWN L HANSON PRESIDENT/CEO 401353 0 0 0 10770 0 9000 0 18856 0 439979 0 0 0 BILL JAMES CFO 283392 0 0 0 27181 0 8550 0 17344 0 336467 0 0 0 ADAM KEER COO 216853 0 0 0 8392 0 9000 0 23575 0 257820 0 0 0 KENNETH BROSSMAN SENIOR VP REGIONAL MANAGER 156040 0 24000 0 1588 0 9000 0 20389 0 211017 0 0 0 MARK BARKER SVP-REGIONAL MANAGER 187815 0 0 0 8734 0 8763 0 5790 0 211102 0 0 0 JACK KALANDER CHIEF INFORMATION OFFICER 203563 0 0 0 4096 0 10445 0 20825 0 238929 0 0 0 JASON COBB SENIOR VP OF OPERATIONS 162660 0 0 0 1683 0 8500 0 23576 0 196419 0 0 0 KENNETH DOWNS VICE PRESIDENT OF IT 122275 0 45000 0 1849 0 4407 0 18999 0 192530 0 0 0 THOMAS WALDHART CONTROLLER 174162 0 0 0 0 0 8134 0 0 0 182296 0 0 0 TROY MOEN VICE PRESIDENT OF OPERATIO 161633 0 0 0 2458 0 8499 0 23575 0 196165 0 0 0 MICHAEL MAXWELL VICE PRESIDENT OF LENDING 140965 0 10000 0 26464 0 4462 0 21139 0 203030 0 0 0 RONALD COCKLE SENIOR VICE PRESIDENT BUSINESS DEVEL 154565 0 0 0 2863 0 1600 0 16544 0 175572 0 0 0 PART I, LINE 1A BILL JAMES, HOUSING ALLOWANCE: $14,400 - INCLUDED IN TAXABLE COMPENSATION MICHAEL MAXWELL, HOUSING ALLOWANCE: $3,826 - INCLUDED IN TAXABLE COMPENSATION SHAWN L HANSON PRESIDENT/CEO DEFERRED COMPENSATION PROGRAM TO PROMOTE EMPLOYEE RETENTION X 8216367 9399880 0 1 1 ADAM KEER CHIEF OPERATING OFFICER DEFERRED COMPENSATION PROGRAM TO PROMOTE EMPLOYEE RETENTION X 1596910 1761440 0 0 1 TIM CRUCIANI EXECUTIVE VICE PRESIDENT (LEFT 2017) DEFERRED COMPENSATION PROGRAM TO PROMOTE EMPLOYEE RETENTION X 2200000 2403986 0 0 1 KEN BROSSMAN REGIONAL MANAGER - LA CROSSE DEFERRED COMPENSATION PROGRAM TO PROMOTE EMPLOYEE RETENTION X 600000 655251 0 0 1 JASON COBB SENIOR VICE PRESIDENT OF OPERATIONS DEFERRED COMPENSATION PROGRAM TO PROMOTE EMPLOYEE RETENTION X 850000 868130 0 0 1 BILL JAMES CHIEF FINANCIAL OFFICER DEFERRED COMPENSATION PROGRAM TO PROMOTE EMPLOYEE RETENTION X 2671783 2702965 0 0 1 MARK BARKER REGIONAL MANAGER DEFERRED COMPENSATION PROGRAM TO PROMOTE EMPLOYEE RETENTION X 100000 100000 0 0 1 17891652 FORM 990, PART VI, SECTION A, LINE 6 THE ORGANIZATION CONSISTS OF MEMBERS. TO BE A MEMBER, ONE MUST HAVE A SHARE/SAVINGS ACCOUNT. EACH MEMBER HAS ONE VOTE TO ELECT THE GOVERNING BODY (BOARD OF DIRECTORS). PARTICIPATION IN THIS CREDIT UNION IS LIMITED TO THOSE WHO QUALIFY FOR MEMBERSHIP AS DEFINED IN THE CREDIT UNION'S CHARTER AND BYLAWS. THIS GENERALLY CONSISTS OF BROWN, CALUMET, CHIPPEWA, COLUMBIA, CRAWFORD, DODGE, DUNN, EAU CLAIRE, GRANT, GREEN LAKE, FOND DU LAC, KENOSHA, LA CROSSE, MANITOWOC, MARQUETTE, MILWAUKEE, OUTAGAMIE, OZAUKEE, RACINE, SHEBOYGAN, VERNON, WALWORTH, WASHINGTON, WAUKESHA, WAUSHARA, AND WINNEBAGO COUNTIES IN WISCONSIN; ALLAMAKEE, CLAYTON, DALLAS, FAYETTE, MUSCATINE, POLK, AND WINNESHIEK COUNTIES IN IOWA; FILLMORE, HOUSTON, OLMSTED, AND WINONA COUNTIES IN MINNESOTA; AND ROCK ISLAND COUNTY IN ILLINOIS AND OTHER SELECT EMPLOYEE GROUPS WHO HAVE PETITIONED FOR MEMBERSHIP. IN ADDITION TO A REGULARLY QUALIFIED MEMBER, THE SPOUSE OF A MEMBER, THE BLOOD OR ADOPTIVE RELATIVES OF EITHER THEM OR THEIR SPOUSES MAY BE MEMBERS. FORM 990, PART VI, SECTION A, LINE 7A THE BOARD OF DIRECTORS ARE ELECTED BY THE MEMBERSHIP UTILIZING THEIR ONE VOTE PER MEMBER. FORM 990, PART VI, SECTION A, LINE 7B THE MEMBERS WOULD NEED TO APPROVE DECISIONS SUCH AS CHANGE OF NAME OR A MERGER DECISION. FORM 990, PART VI, SECTION A, LINE 8B THE ORGANIZATION DOES NOT HAVE ANY COMITTEES THAT HAVE AUTHORITY TO ACT ON BEHALF OF THE GOVERNING BODY FORM 990, PART VI, SECTION B, LINE 11B AN INITIAL REVIEW OF THE 990 IS PERFORMED BY THE CFO. ANY REVISIONS THAT NEED TO BE MADE ARE COMPLETED AND THE REVISED 990 IS PRESENTED TO THE CFO PRIOR TO THE REPORT BEING FILED. FORM 990, PART VI, SECTION B, LINE 12 OFFICERS AND KEY EMPLOYEES ARE REQUIRED TO VERIFY THE EXISTENCE OF ANY CONFLICTS OF INTEREST ANNUALLY. THE ORGANIZATION DOES NOT MONITOR ITS DIRECTORS FURTHER AT THIS TIME. FORM 990, PART VI, SECTION B, LINE 15 CEO: THE BOARD OF DIRECTORS APPROVES COMPENSATION AS RECOMMENDED BY THE COMPENSATION COMMITTEE. BASE COMPENSATION IS TARGETED TO THAT OF PEER FINANCIAL INSTITUTIONS OF SIMILAR SIZE AND COMPLEXITY. INCENTIVE PAY AND BASE PAY INCREASES OR DECREASES ARE DRIVEN BY THE PERFORMANCE OF THE EXECUTIVE VERSUS PRE-DETERMINED GOALS AND OBJECTIVES WHICH ARE ALIGNED WITH THE MISSION AND STRATEGY OF THE ORGANIZATION. THE CEO IS GIVEN QUARTERLY AND ANNUAL PERFORMANCE EVALUATIONS WHICH FACTOR INTO COMPENSATION DISCUSSIONS. OTHER OFFICERS AND KEY EMPLOYEES: BASE COMPENSATION IS DRIVEN BY MARKETPLACE TRENDS AND OTHER COMPETITIVE FACTORS. INCENTIVE PAY AND BASE PAY INCREASES ARE DRIVEN BY THE PERFORMANCE OF EACH EMPLOYEE VERSUS PRE-DETERMINED GOALS AND OBJECTIVES WHICH ARE ALIGNED WITH THE MISSION AND STRATEGY OF THE ORGANIZATION. ALL EMPLOYEES ARE EVALUATED AGAINST OBJECTIVE AND SUBJECTIVE CRITERIA ON A MONTHLY AND ANNUAL BASIS. FORM 990, PART VI, SECTION C, LINE 19 BYLAWS ARE AVAILABLE UPON REQUEST AND ANNUAL FINANCIAL STATEMENTS ARE POSTED ON THE ORGANIZATION'S WEBSITE. FORM 990, PART XI, LINE 9: EQUITY ATTRIBUTABLE TO AOCI -23,852. PARTNERSHIP INCOME 686. ADVANTAGE FINANCIAL SERVICES LLC 127 WEST AVENUE NORTH LA CROSSE WI 54601 800018187 HOLDING COMPANY WI -143299 7803115 MARINE CREDIT UNION CONSUMER LOAN SERVICES LLC 811 MONITOR STREET LA CROSSE WI 54603 270191461 MORTGAGE UNDERWRITING AND SERVICING WI 736501 5940134 ADVANTAGE FINANCIAL SERVICE