2018-10-03T11:40:05-05:00 2017-12-31 420714325 RSM US LLP 201 N HARRISON STREET SUITE 300 DAVENPORT IA 528011999 990 2017-01-01 421132695 VERIDIAN CREDIT UNION VERI 3192365600 1827 ANSBOROUGH AVENUE WATERLOO IA 507013629 KEITH J MESCH CHIEF FINANCIAL OFFICER 3192365600 2018-09-27 1 JOHN J ROMANO P00227323 5638884000 108.171.131.188 2018-09-27 09:30:07 CD P 9598185BFD222D4044500E25553BC2F67B4977B8 4B148E5B6D3C3E6F0EBB545C3B14CC366B69F201 2017 2018-06-14 16:35:46Z KEITH J MESCH 1827 ANSBOROUGH AVENUE WATERLOO IA 507013629 267668283 0 X WWW.VERIDIANCU.ORG X 1934 IA TO PROVIDE A VARIETY OF LOW OR NO COST SERVICES, LOW LOAN RATES, AND HIGHER SAVINGS RATES TO OUR MEMBERS, AND TO FULFILL OUR PHILOSOPHY OF "PEOPLE HELPING PEOPLE" BY PARTNERING WITH OUR MEMBERS TO CREATE SUCCESSFUL FINANCIAL FUTURES. OUR CURRENT FIELD OF MEMBERSHIP IS THE STATE OF IOWA, AS WELL AS 6 COUNTIES IN EASTERN NEBRASKA. 15 15 921 6 823389 357422 0 0 112309930 132961915 -672719 39484 23584345 28882478 135221556 161883877 333387 443923 0 0 47923716 51808255 0 0 0 68180652 72133390 116437755 124385568 18783801 37498309 3100933825 3556595295 2792526508 3212050178 308407317 344545117 X TO PROVIDE A VARIETY OF LOW OR NO COST SERVICES, LOW LOAN RATES, AND HIGHER SAVINGS RATES TO OUR MEMBERS, AND TO FULFILL OUR PHILOSOPHY OF "PEOPLE HELPING PEOPLE" BY PARTNERING WITH OUR MEMBERS TO CREATE SUCCESSFUL FINANCIAL FUTURES. OUR CURRENT FIELD OF MEMBERSHIP IS THE STATE OF IOWA, AS WELL AS 6 COUNTIES IN EASTERN NEBRASKA. 0 0 VERIDIAN CREDIT UNION SERVED APPROXIMATELY 215,574 MEMBERS AT OUR CONVENIENT BRANCH LOCATIONS. VERIDIAN CREDIT UNION ADDED 28,626 NEW MEMBERSHIPS IN 2017. TOTAL LOANS AND DEPOSITS AT 12/31/2017 WERE 3,121,363,330 AND 3,049,770,924 RESPECTIVELY. 0 0 0 0 0 0 0 1 0 1 0 1 0 1 1 0 1 0 0 0 0 0 0 0 0 0 1 0 1 0 1 0 0 0 0 0 0 0 0 0 1 1 1 0 1 77589 0 1 921 1 1 1 0 0 0 0 0 X 15 15 1 0 0 0 1 1 1 1 1 0 1 1 1 1 1 1 1 1 1 1 0 X KEITH J MESCH 3192366774 1827 ANSBOROUGH AVENUE WATERLOO IA 507013629 SCOTT ANDERSON FORMER BOARD OF DIRECTOR 6.00 X 0 0 0 PAMELA AYRES BOARD OF DIRECTOR 6.00 X 288 0 0 WILLIAM BOEVERS BOARD OF DIRECTOR 6.00 X 916 0 0 ELIZABETH CAVEN BOARD OF DIRECTOR 6.00 X 0 0 0 THOMAS DELONG BOARD OF DIRECTOR 6.00 X 635 0 0 PAUL GENGLER BOARD OF DIRECTOR 6.00 X 0 0 0 JAMES KACHER BOARD OF DIRECTOR 6.00 X 0 0 0 BOB KRESSIG BOARD OF DIRECTOR 6.00 X 0 0 0 ASHLEY LINDLEY BOARD OF DIRECTOR 6.00 X 0 0 0 TRACI MCBEE BOARD OF DIRECTOR 6.00 X 0 0 0 JUSTINE PEEBLES BOARD OF DIRECTOR 6.00 X 1834 0 0 DAVID R SCHULTZ FORMER BOARD OF DIRECTOR 6.00 X 0 0 0 GINGER SHIRLEY BOARD OF DIRECTOR 6.00 X 576 0 0 DENNY SKELTON BOARD OF DIRECTOR 6.00 X 0 0 0 CRESTON VAN WEY BOARD OF DIRECTOR 6.00 X 920 0 0 NICK WATERS BOARD OF DIRECTOR 6.00 X 0 0 0 GAYLEN WITZEL BOARD OF DIRECTOR 6.00 X 0 0 0 MONTE BERG PRESIDENT/CEO 50.00 X 673690 0 57453 RENEE CHRISTOFFER CHIEF ADMINISTRATION OFFIC 50.00 X 314429 0 42891 DOUGLAS GILBERTSON CHIEF OPERATIONS OFFICER 50.00 X 449704 0 44028 KEITH MESCH CHIEF FINANCIAL OFFICER 50.00 X 228419 0 47192 CHRIS MCGOVERN MANAGER OF MORTGAGE LENDIN 50.00 X 187905 0 26810 BRETT ENGSTROM VP - INFORMATION TECHNOLOGY 50.00 X 151805 0 36985 LYNETTE GILBERTSON VP - BUSINESS SERVICES 50.00 X 162883 0 29705 LORI HONERMANN MORTGAGE LOAN ORIGINATOR 50.00 X 199072 0 45447 WILLIAM KALIANOV MANAGER OF COMMERCIAL LEND 50.00 X 151132 0 36984 MARK KOPPEDRYER VP - BRANCHES 50.00 X 160155 0 39153 2684363 0 406648 46 0 1 0 THE REDMOND COMPANY W228 N745 WESTMOUND ROAD WAUKESHA WI 53186 DESIGN SERVICES 4473343 FISERV INC 75 REMITTANCE DR SUITE 1649 CHICAGO IL 60675 DATA PROCESSING 2948924 STOREY KENWORTHY 309 LOCUST ST DES MOINES IA 50309 SUPPLIES 1815804 FLYNN WRIGHT 1408 LOCUST STREET DES MOINES IA 50309 ADVERTISING AGENCY 1612756 NATIONAL BUSINESS SYSTEM 2919 W SERVICE RD EAGAN MN 55121 PRINTING & POSTAGE 1186264 74 INTEREST INCOME - LOANS TO MEMBER 522100 111949107 111949107 FEES AND CHARGES 522100 7123650 7123650 INTEREST INCOME - MEMBER INVESTME 522100 5965547 5965547 ATM - POINT OF SALE 522100 4076897 3621084 455813 SALE OF SERVICES 522100 3846714 3479138 367576 132961915 478444 478444 872575 485298 387277 387277 387277 103478698 1381450 103259505 2039603 219193 -658153 -438960 -438960 VISA INTERCHANGE 522100 16587444 16587444 OVERDRAFT/NSF FEES 522100 10692101 10692101 MISCELLANEOUS INCOME 900099 1215656 1215656 28495201 161883877 160633727 823389 426761 443923 2668689 34652033 4580690 7286054 2620789 366067 250984 179678 523602 3245813 3994244 2973050 3641727 307443 376205 25135438 3735896 48046 UNRELATED BUSINESS TAXE 134470 PROVISION FOR LOAN LOSS 11910714 LOAN SERVICING 6536699 PAYMENT SYSTEMS 5844824 2928490 124385568 22646775 23112233 63447432 31885890 7826245 13426576 273801 336569 2508288184 3103123465 3942451 4468969 93885631 33047034 50433234 60838597 410712609 282478547 33363094 36924449 3100933825 3556595295 41724973 56910943 2537887 3718310 9900355 11155489 101650000 2738363293 3038615436 2792526508 3212050178 X 0 0 0 0 308407317 344545117 308407317 344545117 3100933825 3556595295 X 37498309 -300122 -1060387 X X 0 1 X 1 0 0 1 X 10281495 10281495 46431637 13264260 33167377 2944741 1131776 1812965 27158332 18650998 8507334 7069426 7069426 60838597 BONDS - AVAILABLE FOR SALE 165459892 F CORPORATE CREDIT UNIONS 15200000 C CERTIFICATES OF DEPOSIT 48417555 C FHLB OF DES MOINES 7788200 C FCT ACCOUNT 19730174 F CUSO & EQUITY INVESTMENTS 6118365 C LOANS TO CUSO 19764361 F 282478547 SHARE SAVINGS 699025894 SHARE DRAFT 488708910 MONEY MARKET 586664902 CERTIFICATES 1108356352 IRA 155859378 3038615436 X PART IV, LINE 2B: VERIDIAN CREDIT UNION COLLECTS AMOUNTS FROM MEMBERS WITH REAL ESTATE LOANS EACH MONTH VIA THEIR CONTRACTUAL PAYMENT SCHEDULE. THESE FUNDS ARE HELD IN ESCROW UNTIL THEY NEED TO BE DISBURSED IN ACCORDANCE WITH THE ESCROW INSTRUCTIONS FOR EACH MEMBER. AMOUNTS HELD IN ESCROW ARE FOR PROPERTY TAXES AND HOMEOWNER'S INSURANCE. PART X, LINE 2: THE CREDIT UNION IS EXEMPT FROM INCOME TAX UNDER SECTION 501(C)(14) OF THE INTERNAL REVENUE CODE AND SECTION 122 OF THE CREDIT UNION ACT. THE CREDIT UNION'S INSURANCE BROKERAGE SUBSIDIARY, HOWEVER, IS SUBJECT TO STATE AND FEDERAL INCOME TAXES. OPERATIONS OF THE SUBSIDIARY RESULTED IN NO INCOME TAXES FOR EITHER 2017 OR 2016. THE CREDIT UNION ACCOUNTS FOR UNCERTAINTY IN INCOME TAXES IN ACCORDANCE WITH ASC 740, WHICH ADDRESSES THE DETERMINATION OF WHETHER TAX BENEFITS CLAIMED OR EXPECTED TO BE CLAIMED ON A TAX RETURN, SHOULD BE RECORDED IN THE FINANCIAL STATEMENTS. UNDER THIS GUIDANCE, THE CREDIT UNION MAY RECOGNIZE THE TAX BENEFITS FROM AN UNCERTAIN TAX POSITION ONLY IF IT IS MORE-LIKELY-THAN-NOT THAT THE TAX POSITION WILL BE SUSTAINED ON EXAMINATION BY TAXING AUTHORITIES, BASED ON TECHNICAL MERITS OF THE POSITION. THE TAX BENEFITS RECOGNIZED IN THE FINANCIAL STATEMENTS FROM SUCH A POSITION ARE BEING MEASURED BASED ON THE LARGEST BENEFIT THAT HAS A GREATER THAN 50 PERCENT LIKELIHOOD OF BEING REALIZED UPON ULTIMATE SETTLEMENT. THE GUIDANCE ON ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES ALSO ADDRESSES DE-RECOGNITION, CLASSIFICATION, INTEREST AND PENALTIES ON INCOME TAXES, AND ACCOUNTING IN INTERIM PERIODS. THIS STANDARD DID NOT HAVE AN IMPACT ON THE FINANCIAL STATEMENTS AND THE CREDIT UNION BELIEVES IT DOES NOT HAVE ANY UNCERTAIN TAX POSITIONS. THE CREDIT UNION RECOGNIZES INTEREST AND PENALTIES ON INCOME TAXES AS A COMPONENT OF INCOME TAX EXPENSE. 1 COMMUNITY FOUNDATION OF NORTHEAST IOWA 425 CEDAR STREET SUITE 310 WATERLOO IA 50701 426060414 501(C)(3) 73500 SUPPORT IN THE FOLLOWING AREAS: ART, COMMUNITY BETTERMENT, EDUCATION, ENVIRONMENT, HEALTH, HISTORIC PRESERVATION, AND HUMAN SCIENCE OPERATION THRESHOLD 1535 LAFAYETTE STREET PO BOX 4120 WATERLOO IA 50704 420982549 501(C)(3) 40000 GENERAL SUPPORT CEDAR VALLEY UNITED WAY 425 CEDAR STREET SUITE 300 WATERLOO IA 50701 420801846 501(C)(3) 28500 GENERAL SUPPORT UNITED WAY OF EAST CENTRAL IOWA 317 7TH AVENUE SE NO 401 CEDAR RAPIDS IA 52401 420861239 501(C)(3) 8400 GENERAL SUPPORT GREATER CEDAR VALLEY ALLIANCE 10 WEST 4TH STREET SUITE 310 WATERLOO IA 50701 421241941 501(C)(6) 25000 GENERAL SUPPORT IOWA CREDIT UNION FOUNDATION 1500 NW 118TH STREET DES MOINES IA 50325 421438113 501(C)(3) 10000 GENERAL SUPPORT UNITED WAY OF CENTRAL IOWA 1111 9TH STREET SUITE 1000 DES MOINES IA 50314 420680425 501(C)(3) 20000 GENERAL SUPPORT UNITED WAY OF THE MIDLANDS 2201 FARNAM STREET SUITE 200 OMAHA NE 68102 470922285 501(C)(3) 8000 GENERAL SUPPORT 7 1 PART I, LINE 2: THE ORGANIZATION ISSUES FUNDS TO BE USED AT THE RECIPIENT'S DISCRETION. X X X X 0 1 0 MONTE BERG PRESIDENT/CEO 415384 0 44689 0 213617 0 40500 0 16953 0 731143 0 0 0 RENEE CHRISTOFFER CHIEF ADMINISTRATION OFFIC 193199 0 35544 0 85686 0 32067 0 10824 0 357320 0 0 0 DOUGLAS GILBERTSON CHIEF OPERATIONS OFFICER 231188 0 36301 0 182215 0 38018 0 6010 0 493732 0 0 0 KEITH MESCH CHIEF FINANCIAL OFFICER 174292 0 35234 0 18893 0 30239 0 16953 0 275611 0 0 0 CHRIS MCGOVERN MANAGER OF MORTGAGE LENDIN 176036 0 11487 0 382 0 26810 0 0 0 214715 0 0 0 BRETT ENGSTROM VP - INFORMATION TECHNOLOGY 131207 0 20345 0 253 0 20815 0 16170 0 188790 0 0 0 LYNETTE GILBERTSON VP - BUSINESS SERVICES 123663 0 20576 0 18644 0 22553 0 7152 0 192588 0 0 0 LORI HONERMANN MORTGAGE LOAN ORIGINATOR 193003 0 5711 0 358 0 29277 0 16170 0 244519 0 0 0 WILLIAM KALIANOV MANAGER OF COMMERCIAL LEND 135860 0 14116 0 1156 0 20031 0 16953 0 188116 0 0 0 MARK KOPPEDRYER VP - BRANCHES 139356 0 20524 0 275 0 22200 0 16953 0 199308 0 0 0 PART I, LINE 4B THE FOLLOWING INDIVIDUALS PARTICIPATED IN A NON-QUALIFIED RETIREMENT PLAN IN 2017: MONTE BERG - $124,377, RENEE CHRISTOFFER - $59,985, DOUG GILBERTSON - $71,335, KEITH MESCH - $55,331, LYNN GILBERTSON - $21,014, AND MARK KOPPEDRYER - $20,620. THE DOLLAR AMOUNT REPRESENTS THE CURRENT YEAR CONTRIBUTION MADE BY VERIDIAN CREDIT UNION ON BEHALF OF THE INDIVIDUALS TO THE PLAN IN 2017. THIS INFORMATION IS INCLUDED IN DEFERRED COMPENSATION ON THE FORM 990, PART VII AND SCHEDULE J, PART II. MARK KOPPEDRYER HIGHEST COMPENSATED EMPLOYEE HOME EQUITY LOAN X 120000 72662 0 1 1 MARK KOPPEDRYER HIGHEST COMPENSATED EMPLOYEE INDIRECT NEW AUTO LOAN X 25630 2831 0 1 1 DOUGLAS GILBERTSON OFFICER USED AUTO LOAN X 30710 18745 0 1 1 MONTE BERG OFFICER HOME EQUITY LOAN X 165000 55499 0 1 1 MONTE BERG OFFICER NEW AUTO LOAN X 29660 11902 0 1 1 KEITH MESCH OFFICER USED AUTO LOAN X 16500 616 0 1 1 CHRISTOPHER MCGOVERN OFFICER INDIRECT NEW AUTO LOAN X 28060 19866 0 1 1 CHRISTOPHER MCGOVERN OFFICER REAL ESTATE LOAN X 210000 149961 0 1 1 LYNETTE GILBERTSON HIGHEST COMPENSATED EMPLOYEE USED AUTO LOAN X 6000 4487 0 1 1 336569 FORM 990, PART VI, SECTION A, LINE 2 DOUG GILBERTSON AND LYNN GILBERTSON HAVE A FAMILY RELATIONSHIP. FORM 990, PART VI, SECTION A, LINE 6 VERIDIAN CREDIT UNION IS A NOT-FOR-PROFIT FINANCIAL COOPERATIVE THAT IS OWNED BY ITS MEMBERS. VERIDIAN CREDIT UNION MEMBERSHIP IS OPEN TO PERSONS LIVING OR WORKING IN IOWA, AS WELL AS 6 EASTERN COUNTIES IN NEBRASKA. EMPLOYEES OF THE CREDIT UNION'S BUSINESS PARTNERS ARE ALSO ELIGIBLE FOR VERIDIAN CREDIT UNION MEMBERSHIP. REGISTERED USERS OF DWOLLA ARE ALSO ELIGIBLE FOR VERIDIAN CREDIT UNION MEMBERSHIP. FORM 990, PART VI, SECTION A, LINE 7A EACH MEMBER OF VERIDIAN CREDIT UNION IS AN EQUAL OWNER OF THE CREDIT UNION. EACH MEMBER HAS ONE VOTE IN THE ELECTION OF THE BOARD OF DIRECTORS, REGARDLESS OF HOW MUCH MONEY THEY HAVE ON DEPOSITS. FORM 990, PART VI, SECTION A, LINE 7B THE FOLLOWING TYPES OF DECISIONS OF THE GOVERNING BODY OF VERIDIAN CREDIT UNION ARE SUBJECT TO APPROVAL BY ITS MEMBERS: CHANGE IN ARTICLES OF INCORPORATION, MERGER, CHANGE TO THE CREDIT UNION BY-LAWS, CHANGE IN CHARTER STATUS, ELECTION/REMOVAL OF MEMBERS OF THE BOARD, AND DISSOLUTION OF THE ORGANIZATION. FORM 990, PART VI, SECTION B, LINE 11B THE FORM 990 AND ALL THE REQUIRED SCHEDULES ARE REVIEWED EACH YEAR BY THE CONTROLLER. AMOUNTS REPORTED ON THE 990 ARE SUPPORTED WITH VARIOUS WORK PAPERS CONTAINING INFORMATION OBTAINED FROM THE GENERAL LEDGER ACCOUNTING SOFTWARE AND PAYROLL PROCESSOR. THE CONTROLLER REVIEWS ALL WORK PAPERS TO ENSURE AMOUNTS REPORTED ON THE FORM 990 ARE PROPER. AFTER THE REVIEW, ANY QUESTIONS OR COMMENTS ARE SUBMITTED TO THE PREPARER FOR RESPONSES, AND THEN ANOTHER REVIEW OF THOSE ITEMS IS COMPLETED UNTIL ALL QUESTIONS AND COMMENTS ARE RESOLVED. THE COMPLETED FORM 990 WILL BE FILED ELECTRONICALLY WITH THE IRS AND IS POSTED TO THE VERIDIAN'S BOARD EXTRANET FOR THE BOARD MEMBERS TO REVIEW. FORM 990, PART VI, SECTION B, LINE 12C VERIDIAN CREDIT UNION REGULARLY AND CONSISTENTLY MONITORS AND ENFORCES COMPLIANCE WITH ITS CONFLICT OF INTEREST POLICY AS FOLLOWS: THE VERIDIAN CONFLICT OF INTEREST POLICY REQUIRES ANNUAL DISCLOSURE STATEMENTS TO BE SIGNED BY THE BOARD OF DIRECTORS AND SUBMITTED TO THE CFO OR BOARD CHAIR WITHIN 30 DAYS OF JANUARY 1 OF EACH YEAR. ANY APPARENT CONFLICT OF INTEREST SHALL BE RESOLVED BY THE CFO AND/OR AUDIT COMMITTEE WITH THE INDIVIDUAL. VERIDIAN'S BOARD OF GOVERNANCE COMMITTEE ALSO OVERSEES THIS BOARD POLICY. THE INTERNAL AUDIT STAFF MONITORS COMPLIANCE WITH ALL POLICIES. FORM 990, PART VI, SECTION B, LINE 15 THE PROCESS OF DETERMINING COMPENSATION FOR ALL EMPLOYEES OF THE CREDIT UNION, INCLUDING THE CEO AND OTHER KEY EMPLOYEES IS AS FOLLOWS: AN OUTSIDE, THIRD PARTY CONSULTANT IS ENGAGED TO HELP DETERMINE THE PAY SCALE AND MERIT INCREASES. THE CONSULTANTS PERFORM MARKET SURVEYS EACH YEAR FOR EACH OF OUR REGIONS TO DETERMINE IF ANY CHANGES NEED TO BE MADE TO THE PAY RANGES. VERIDIAN CREDIT UNION'S BOARD OF DIRECTORS APPROVE THE RANGE ADJUSTMENTS. FORM 990, PART VI, SECTION C, LINE 19 VERIDIAN CREDIT UNION MAKES ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY AND FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC UPON REQUEST. FINANCIAL STATEMENTS ARE POSTED MONTHLY AT ALL BRANCH LOCATIONS. FORM 990, PART XI, LINE 9: CHANGE IN FUNDED STATUS OF RETIREMENT PLAN -1,060,387. FORM 990, PART XII, LINE 2C: THE OVERSIGHT AND SELECTION PROCESS HAS NOT CHANGED FROM THE PRIOR TAX YEAR. VERIDIAN FISCAL SOLUTIONS LLC 1827 ANSBOROUGH AVENUE WATERLOO IA 50701 471335117 PAYROLL SERVICES IA 337122 20400064 THE VERIDIAN GROUP INC MEMBERS INSURANCE SERVICES LLC 1827 ANSBOROUGH AVENUE WATERLOO IA 50701 421277528 INSURANCE SERVICES IA -305392 1619995 MEMBERS INSURANCE INC THE VERIDIAN GROUP INC 1827 ANSBOROUGH AVENUE WATERLOO IA 50701 421263291 INSURANCE AND PAYROLL PROCESSING IA VERIDIAN CREDIT UNION C -564384 3949938 1.00000 1 MEMBERS INSURANCE INC 1827 ANSBOROUGH AVENUE WATERLOO IA 50701 421277528 HOLDING COMPANY IA N/A C 0 1 1 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 THE VERIDIAN GROUP INC A 62928 FAIR MARKET VALUE THE VERIDIAN GROUP INC B 580000 FAIR MARKET VALUE THE VERIDIAN GROUP INC L 130127 FAIR MARKET VALUE