2018-11-09T15:42:16-06:00 2017-12-31 741699466 FITTS ROBERTS & CO PC 5718 WESTHEIMER STE 800 HOUSTON TX 77057 990 2017-01-01 741260543 TEXAS DOW ECU TEXA 3615809129 1001 FM 2004 LAKE JACKSON TX 77566 RHONDA PAVLICEK SVP & CFO 3615809129 2018-11-01 1 ROGER L DUNCAN CPA P01087367 7132605230 2018-11-01 64.88.174.3 2018-11-01 15:02:39 CD P 2035ACAC73D7DAB0A7760020310AA4F8FFD2B2A3 DDCAC25EF53A0139E9EBF9346765A8F6BDA68D08 2017 2019-02-21 02:37:17Z RHONDA PAVLICEK 1001 FM 2004 LAKE JACKSON TX 77566 199754079 0 X WWW.TDECU.ORG X 1955 TX INCREASE ECONOMIC WELL-BEING OF OUR MEMBERS THROUGH NOT-FOR-PROFIT, COOPERATIVE FINANCIAL SERVICES. 14 14 923 0 2857580 -3997044 0 0 185672486 195046106 506516 955836 -18625 -253705 186160377 195748237 0 0 0 0 55427782 61144074 0 0 0 128657182 113182680 184084964 174326754 2075413 21421483 2968593489 3172342811 2733417536 2915744330 235175953 256598481 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 275,453 MEMBERS. TDECU CURRENTLY HAS 39 MEMBER SERVICE LOCATIONS, 2 INSURANCE 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 117679 0 1 923 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 X 14 14 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 33750 0 2643 GEORGE HORNBACK DIRECTOR 4.00 X 13973 0 0 PEGGY MILTENBERGER DIRECTOR 4.00 X 20250 0 0 DAVID OZUNA DIRECTOR 4.00 X 17075 0 334 DICK SMITH DIRECTOR 4.00 X 35625 0 2993 ED ZINGLEMAN DIRECTOR 4.00 X 24750 0 334 EDWARD SPEED DIRECTOR 4.00 X 27750 0 2643 JACK ANTONINI DIRECTOR 4.00 X 10500 0 2643 ROLAND HENDRICKS DIRECTOR 4.00 X 31298 0 0 FRANK COE DIRECTOR 4.00 X 20250 0 0 EILEEN CAMPBELL DIRECTOR 4.00 X 18000 0 0 ROBERT BALDWIN III DIRECTOR 4.00 X 10512 0 2643 ANITA SEHGAL DIRECTOR 4.00 X 21375 0 0 DAVID SIKORA DIRECTOR 4.00 X 13500 0 0 STEPHANIE SHERRODD PRESIDENT 40.00 X 586585 0 21750 MILTON STEVENS SENIOR VP- RETAIL LENDING 40.00 X 259402 0 21817 ISAAC JOHNSON SENIOR VP & CRO 40.00 X 241557 0 1851 RHONDA PAVLICEK SENIOR VP & CFO 40.00 X 306343 0 21817 CHARLES SMITH SENIOR VP & CLO 40.00 X 281021 0 17425 COURTLAND CROUCHET SENIOR VP - CRO 40.00 X 263018 0 21817 TIMOTHY BENNETT VP - CHIEF BRAND OFFICER 40.00 X 231879 0 19957 LUCILLA HENDERSON VP- COMMUNITY & BUSINESS ENGAGEMENT 40.00 X 158791 0 18259 WESLEY GARNER PRES - WEALTH MANAGEMENT 40.00 X 323014 0 18512 MILTON LUCAS VP BUSINESS SERVICES 40.00 X 154316 0 16724 GARY LANIER VP-STRATEGIC INITIATIVES 40.00 X 178645 0 17734 VANDI THERIOT VP-TALENT SERVICES 40.00 X 395014 0 14158 WESLEY WOLFF PRESIDENT-INS AGENCY 40.00 X 174462 0 8473 BONITA TUCKER VP - OPERATIONS 40.00 X 183100 0 17931 ANDREW WAYMAN VP - DIGITAL STRATEGY 40.00 X 205832 0 20655 JASON SCHNEIDER VP - FINANCE 40.00 X 179957 0 19171 LUKE BILLERI II VP - MEMBER CENTERS 40.00 X 165509 0 14100 ANTHONY WARDEN VP - LOAN RESOLUTIONS 40.00 X 184934 0 12722 KEITH HRNYAK VP - CONTROLLER 40.00 X 159837 0 12666 BRENT WIEPRECHT INSURANCE AGENT - PRODUCER 40.00 X 165054 0 17041 JOHN GALLO DIRECTOR - BUSINESS INFO. SYSTEMS & SECURITY 40.00 X 173914 0 17570 PATRICK BEALE WEALTH ADVISOR 40.00 X 191023 0 19172 KEVIN MCCOY II WEALTH ADVISOR 40.00 X 221234 0 19276 MARCUS MANNING DIRECTOR - ENTERPRISE INFRASTRUCTURE 40.00 X 180721 0 8420 5863770 0 413251 69 0 1 0 PSCU 560 CARILLON PARKWAY ST PETERSBURG FL 33716 MEMBER CARE CALL CENTER, ONLINE BANKING 6023793 VISA USA 900 METRO CENTER BOULEVARD FOSTER CITY CA 94404 VISA MONTHLY BILLING, DEBIT CARD FEES 4221988 VANTIVWORLD PAY 8500 GOVERNORS HILL DRIVE CINCINNATI OH 45249 VANTIV STATEMENT PROCESSING FEES 3085270 LANVERA LTD 112 WRANGLER DRIVE SUITE 150 COPPELL TX 75019 MONTHLY NOTICES/FORMS/ESTATEMENTS 1969774 FORNEY CONSTRUCTION LLC 8945 LONG POINT RD STE 200 HOUSTON TX 77055 RELOCATION CONSTRUCTION 1635741 21 INTEREST ON LOANS 522100 134793129 134793129 FEE INCOME 522100 50208937 49607575 601362 OTHER OPERATING INCOME 522100 10044040 7787822 2256218 195046106 966751 966751 3877346 117581 3604522 401320 272824 -283739 -10915 -10915 K-1 FROM ONAPPROACH LL 900099 -253705 -253705 -253705 195748237 192188526 2857580 702131 4950755 40333770 1469013 10959099 3431437 670119 286244 8074432 4735101 8271139 1426155 7814779 1050708 15598852 7564665 626867 OTHER SERVICE FEES 28696460 PROVISION FOR LOAN LOSS 24879782 LOAN SERVICING EXPENSE 3487377 174326754 12867551 13169263 101621121 174566799 1254423 2589112 2726402141 2853653057 110424412 62517451 49039697 47906961 160709 134590 16084803 13543040 61163044 66779989 2968593489 3172342811 50591380 51552110 1717108 1242226 9749481 9951631 330299488 295318221 2341060079 2557680142 2733417536 2915744330 X 0 0 0 0 235175953 256598481 235175953 256598481 2968593489 3172342811 X 21421483 1035 10 X X 0 1 X 1 0 0 1 X 8251501 8251501 39208559 13613380 25595179 6906856 4894886 2011970 55468029 44009185 11458844 589467 589467 47906961 MEMBERS' SHARES AND SAVINGS ACCOUNTS 2557680142 2557680142 X 196012857 10915 10915 196001942 -253705 -253705 195748237 174336624 10915 10915 174325709 1045 1045 174326754 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 INVESTMENT 10,915. PART XI, LINE 4B - OTHER ADJUSTMENTS: K-1 FROM ONAPPROACH LLC -253,705. PART XII, LINE 2D - OTHER ADJUSTMENTS: GAIN/LOSS ON INVESTMENT 10,915. PART XII, LINE 4B - OTHER ADJUSTMENTS: NET CHANGE IN UNREALIZED GAIN ON SECURITIES 1,035. ROUNDING 10. X X X X 1 1 X X X X X 1 1 0 STEPHANIE SHERRODD PRESIDENT 580000 0 0 0 6585 0 10000 0 11750 0 608335 0 0 0 MILTON STEVENS SENIOR VP- RETAIL LENDING 259402 0 0 0 0 0 10000 0 11817 0 281219 0 0 0 ISAAC JOHNSON SENIOR VP & CRO 234239 0 0 0 7318 0 0 0 1851 0 243408 0 0 0 RHONDA PAVLICEK SENIOR VP & CFO 306343 0 0 0 0 0 10000 0 11817 0 328160 0 0 0 CHARLES SMITH SENIOR VP & CLO 268269 0 0 0 12752 0 6635 0 10790 0 298446 0 0 0 COURTLAND CROUCHET SENIOR VP - CRO 263018 0 0 0 0 0 10000 0 11817 0 284835 0 0 0 TIMOTHY BENNETT VP - CHIEF BRAND OFFICER 231879 0 0 0 0 0 9355 0 10602 0 251836 0 0 0 LUCILLA HENDERSON VP- COMMUNITY & BUSINESS ENGAGEMENT 157139 0 1652 0 0 0 6674 0 11585 0 177050 0 0 0 WESLEY GARNER PRES - WEALTH MANAGEMENT 175000 0 1750 0 146264 0 7352 0 11160 0 341526 0 0 0 MILTON LUCAS VP BUSINESS SERVICES 152808 0 1508 0 0 0 6383 0 10341 0 171040 0 0 0 GARY LANIER VP-STRATEGIC INITIATIVES 176929 0 1716 0 0 0 7320 0 10414 0 196379 0 0 0 VANDI THERIOT VP-TALENT SERVICES 175623 0 1864 0 217527 0 2500 0 11658 0 409172 0 0 0 WESLEY WOLFF PRESIDENT-INS AGENCY 86923 0 2000 0 85539 0 2909 0 5564 0 182935 0 0 0 BONITA TUCKER VP - OPERATIONS 179771 0 1784 0 1545 0 7262 0 10669 0 201031 0 0 0 ANDREW WAYMAN VP - DIGITAL STRATEGY 205832 0 0 0 0 0 8876 0 11779 0 226487 0 0 0 JASON SCHNEIDER VP - FINANCE 178134 0 1823 0 0 0 7478 0 11693 0 199128 0 0 0 LUKE BILLERI II VP - MEMBER CENTERS 157211 0 3000 0 5298 0 3569 0 10531 0 179609 0 0 0 ANTHONY WARDEN VP - LOAN RESOLUTIONS 164154 0 672 0 20108 0 2340 0 10382 0 197656 0 0 0 KEITH HRNYAK VP - CONTROLLER 148346 0 609 0 10882 0 2153 0 10513 0 172503 0 0 0 BRENT WIEPRECHT INSURANCE AGENT - PRODUCER 135918 0 7238 0 21898 0 6582 0 10459 0 182095 0 0 0 JOHN GALLO DIRECTOR - BUSINESS INFO. SYSTEMS & 171283 0 2631 0 0 0 7157 0 10413 0 191484 0 0 0 PATRICK BEALE WEALTH ADVISOR 26000 0 1807 0 163216 0 8064 0 11108 0 210195 0 0 0 KEVIN MCCOY II WEALTH ADVISOR 26000 0 890 0 194344 0 8168 0 11108 0 240510 0 0 0 MARCUS MANNING DIRECTOR - ENTERPRISE INFRASTRUCTURE 175632 0 3075 0 2014 0 7148 0 1272 0 189141 0 0 0 PART I, LINE 1B THE ORGANIZATION GROSSED UP PAYMENTS THAT ARE OUT OF THE ORDINARY (E.G. BONUSES, RELOCATION, ETC.) SO THAT THE PAYMENT WILL BE TAX-NEUTRAL TO THE RECIPIENT. ONLY ONE EMPLOYEE REQUIRED TO BE LISTED ON THIS FORM HAD A COUNTRY CLUB MEMBERSHIP THAT WAS SUBSIDIZED. THE EMPLOYEE IS NO LONGER EMPLOYED BY THE ORGANIZATION. THE ORGANIZATION HAS A POLICY FOR EXPENSE REIMBURSEMENTS AND REQUIRES RECEIPTS AND PROOF OF EXPENSES PRIOR TO REIMBURSING. PART I, LINES 4A-B 2017 SEVERANCE PAYMENTS: WILLIAM BALDWIN $ 5,556 TANGY NAPIER $ 67,500 BRENDA REYNA $ 6,138 ERICKA SLUKA $ 6,483 VANDI THERIOT $ 212,729 WESLEY WOLFF $ 76,923 457(F) PLAN 2017 PURCHASE PAYMENTS: STEPHANIE SHERRODD $ 85,456 RHONDA PAVLICEK $ 34,309 MILTON E. STEVENS $ 28,985 CHARLES SMITH $ 29,700 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 XI, LINE 9: ROUNDING 10. 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 279393 10190370 TDECU HOLDINGS LLC TDECU REAL ESTATE LLC 1001 FM 2004 LAKE JACKSON TX 77566 450957732 REAL ESTATE AGENCY TX -91977 0 TDECU HOLDINGS LLC TDECU HOLDINGS LLC 1001 FM 2004 LAKE JACKSON TX 77566 453582513 HOLDING COMPANY TX 250990 9858508 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