2017-11-01T16:32:10-07:00 2016-12-31 990 2016-01-01 356025844 Beacon Credit Union BEAC 2605637443 586 S Wabash Street Wabash IN 46992 Dustin Cuttriss Chief Financial Officer 2605637443 2017-11-01 108.171.131.189 2016 2018-03-14 21:41:22Z Kevin Willour 586 S Wabash Street Wabash IN 46992 46547270 0 X www.beaconcu.org X 1931 IN This organization is a credit union exempt under IRS Code 501(c) (14) (A). It is a Cooperative Financial Institution. 7 7 300 10 1426631 164904 0 0 36638538 42563967 2854974 2385843 584386 1597460 40077898 46547270 86500 63175 0 0 14494518 17126662 0 0 0 18681312 21074009 33262330 38263846 6815568 8283424 1161687265 1187588981 1003884779 1023027128 157802486 164561853 This organization is a credit union exempt under IRS Code 501 (c) (14) (A). It is a Cooperative Financial Institution. The organization provides fair and competitive financial products responsive to the needs of the member-owners. 0 0 Beacon provides multiple types of loan products responsive to the needs of its members including Agriculture loans, Mortgage loans, and Consumer loans. It has 9,925 individual loans totaling $921,285,585 Beacon Credit Union provides a superior member service experience by offering competitive deposit rates and deposit products to its members. It has 87,003 Savings accounts totaling $972,469,384 Beacon Credit Union provides 17 Full Service branches, 2 Drive-through only branches, 6 Loan Production offices and 3 back office facilities to meet the operational demands of over 49,000 members. 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 1 1 1 0 0 1 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 1 1 0 0 1 43866 0 1 300 1 1 1 0 0 0 0 0 X 7 7 0 0 0 0 1 1 1 1 1 0 1 1 1 1 1 1 0 1 1 1 0 IN X Dustin Cuttriss 2605637443 586 S Wabash Street Wabash IN 46992 Ken Dale Chairman 2 0 X 0 0 0 John Peters Secretary/Treasurer 2 0 X 0 0 0 David Forgey Director 2 0 X 0 0 0 John Morningstar Director 2 0 X 0 0 0 Herbert Horrom Director 2 0 X 0 0 0 Roger Bragg Director 2 0 X 0 0 0 Dr Lindsay Culver Director 2 0 X 0 0 0 Kevin Willour President/CEO 40 1 X 343001 0 162308 Todd Beehler Chief Lending Officer 40 0 X 168756 0 95799 Dustin Cuttriss Chief Financial Officer 40 1 X 181768 0 43567 Ryan Showley Chief Information Officer 40 0 X 135867 0 108414 Jerry Nickel Chief Strategy Officer 40 0 X 140042 0 16473 Lori Eltzroth Chief Admin Officer 40 0 X 143199 0 71915 Dawn Aschleman Chief Operations Officer 40 0 X 112882 0 16066 Craig Bright VP Ag Lending Operations 40 0 X 130565 0 18029 Terri Shouse Senior Credit Analyst 40 0 X 127349 0 0 Trisha Loker VP Credit Administration 40 0 X 114543 0 17113 Ted Little Ag Loan Officer 40 0 X 110570 0 15950 Parke Hackman Ag Loan Officer 40 0 X 109533 0 13030 1818075 0 578664 15 0 1 0 Fiserv 75 Remittance Drive Suite 1649 Chicago IL 606756512 Core Computer System Processing and Maintenance 1833577 Network Solutions Inc PO Box 159 Muncie IN 47308 Hardware and Software Computer Maintenance 256912 QSI Inc 107 Schuler Dr Bardstown KY 40004 ATM and Video Equipment Maintenance 248955 DEI Incorporated 1550 Kemper Meadow Drive Cincinnati OH 45240 Building Improvement and Contractors 216105 Shoreline Business Solutions PO Box 7247 Philadelphia PA 19170 Processing Fees and Plastic for Debit Cards 211088 8 0 Income on Loans 522130 37393528 37393528 0 0 Miscellaneous Income 522130 5170439 5170439 0 0 0 0 0 0 42563967 2385843 2385843 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Miscellaneous Income 522130 1426631 0 1426631 0 VISA Income 522130 170829 170829 0 0 0 0 0 0 1597460 46547270 45120639 1426631 0 63175 1225515 11678273 1491535 1843237 888102 95012 191080 110049 1092288 669825 1308749 2047655 1278359 175265 345124 395677 1538997 202532 Dividends Paid 9283118 Processing Expense 899471 Miscellaneous Expense 840808 Provision for Loan Losses 600000 38263846 0 0 0 11963426 9148861 43837073 38279354 857557328 918748852 27397835 18082667 9217811 9315168 172395105 142375110 66716522 69721636 1161687265 1187588981 80738991 50557744 923145788 972469384 1003884779 1023027128 X 0 0 0 0 157802486 164561853 157802486 164561853 1161687265 1187588981 X 8283424 -1313320 0 0 0 -210737 X 0 1 X 1 0 0 2665658 2665658 0 14662335 10034752 4627583 0 0 0 0 0 9887330 7938159 1949171 0 182512 109756 72756 9315168 Agency Notes and Bonds 5000700 F Collateralized Mortgage Obligations 64634186 F Mortgage Back Securities 61367310 F Municipal Taxable 985735 F SBA Loan Pools 9296179 F Certificates of Deposit 1091000 C 142375110 Investment in Agribank 2138765 Federal Home Loan Bank stock 1587700 Foreclosed assets held for sale, net 1740366 Loan servicing rights 1190305 Share insurance deposit 12005572 Insurance and annuity contracts 22738486 Goodwill 18810763 Customer lists intangible 740993 Accrued interest receivable 6711782 Other assets 2056904 69721636 Various Member Deposits 972469384 972469384 X 46547270 0 0 0 0 0 46547270 0 0 0 46547270 38239051 0 0 0 116637 116637 38122414 0 141432 141432 38263846 Schedule D, Part X, Line 2 Management has evaluated their income tax positions under guidance included in ASC 740. Based on their review, management has not identified any material uncertain tax positions to be recorded or disclosed in the financial statements. Schedule D, Part XII, Line 2d The Customer List Intangible Amortization reported on the Audited Financial Statement was $185,248. Customer List Intangible Amortization for form 990 Tax Expenses over 15 Years was $68,611. The difference is $116,637. Schedule D, Part XII, Line 4b The amortization of Goodwill over 15 years that is not expensed on the Audited Financial Statements is $141,432. 1 Beacon Credit Union Foundation Inc 586 S Wabash Street Wabash IN 46992 453814789 501(c)(3) 63175 book Funding operations and program activities. 1 0 Schedule I, Part I, Line 2 Beacon Credit Union Foundation, Inc. is a Foundation separate from Beacon Credit Union. The governing body abides by the bylaws set in place for Beacon Credit Union Foundation and each donation is reviewed and agreed upon by the Board of Directors. X X X 1 1 0 Kevin Willour President/CEO 245650 0 85360 0 11991 0 155062 0 7246 0 505309 0 Dustin Cuttriss Chief Financial Officer 155661 0 13625 0 12483 0 29767 0 13800 0 225336 0 0 0 Todd Beehler Chief Lending Officer 145696 0 17626 0 5434 0 82499 0 13300 0 264555 0 0 0 Ryan Showley Chief Information Officer 123132 0 10200 0 2536 0 97937 0 10477 0 244282 0 0 0 Lori Eltzroth Chief Admin Officer 127105 0 10700 0 5395 0 58365 0 13550 0 215115 0 0 Dawn Aschleman Chief Operations Officer 106052 0 1112 0 5718 0 16066 0 0 0 128948 0 0 0 Jerry Nickel Chief Strategy Officer 129505 0 9665 0 871 0 5156 0 11317 0 156514 0 0 0 Schedule J, Part I, Line 4 Line 4a: On July 1, 2016, employees Terri Shouse, Ted Little, and Parke Hackman received retention bonuses ranging from $21,667 to $41,667 relating to the acquisition of Midwest Ag Finance, Inc. by Beacon Credit Union that closed on July 1, 2015. This was the first of two annual installments payable on July 1 of 2016 and 2017. Line 4b: The following employees participated in a 457(f) during 2016. Kevin Willour, Todd Beehler, Dustin Cuttriss, Ryan Showley, and Lori Eltzroth. There were no contributions made during 2016. Form 990, Part IV, Line 26 The Credit Union does offer loans to its interested persons based on the same terms and conditions as offered to other members of the Credit Union. Per exception as indicated on page 2 of the instructions for Schedule L, the Credit Union does not need to list the loans from the Credit Union to the member. Form 990, Part VI, Section A, Line 6 Each person or organization who establishes a savings account with at least $25 becomes a member per our Articles of Incorporation. Form 990, Part VI, Section A, Line 7a Each member is entitled to one vote to elect members to the Board of Directors and Supervisory Committee per the Articles of Incorporation. Form 990, Part VI, Section A, Line 7b Changes to the Articles of Incorporation require a vote by our membership. Changes to the Articles of Incorporation are also subject to the Board of Directors approval prior to being brought to the membership for a vote. Form 990, Part VI, Section B, Line 11b The Board of Directors will be provided a copy of the 990 tax return prior to the return being filed. The standard board meeting is scheduled prior to the Form 990 completion and filing. A detailed review is also performed by an independent accounting firm. Form 990, Part VI, Section B, Line 12c All policies are reviewed annually by the Board of Directors. Any policy revisions require prior board approval. If a board of Director's Member has a conflict of interest, they abstain from discussion and voting on the item(s) arising from the conflict. All policies are made readily available to all employees at any time via the company intranet. All newly hired employees are provided with a complete set of policies at orientation and are required to sign an acknowledgment of receipt and that they have read and understand all policies. Any violations of policies are reported to the employee supervisor and/or Human Resources. Violations are reviewed with the employee by the supervisor and/or Human Resources and depending on the nature and seriousness of the policy, written reprimands or termination may occur. All written review and reprimands require the employee to sign/acknowledge and copies are retained in the employee personnel file in perpetuity. Form 990, Part VI, Section B, Line 15 Beacon Credit Union utilizes the salary administration product "Compease" as managed by an independent party, Koker, Goodwin, and Associates to determine appropriate salary ranges for each employee position based on responsibilities, education, number of employees supervised, etc. Salary ranges are then approved by the President/CEO and parameters are put into place at the end of each calendar year during the annual review process in which an employee's compensation may increase based on their past performance and where their current salary falls within the range for the position and other applicable criteria. A "Compease" report is also generated periodically for the CEO and is provided by Human Resources to the Board of Directors (pulled when employment contract is us for renewal typically every three years.) The Board of Directors will establish the CEO compensation and other benefits level and an agreement will be drafted by the Credit Union's legal counsel for the period agreed upon by the CEO and the Board of Directors. Form 990, Part VI, Section C, Line 19 The organization does not make its governing documents or conflicts of interest policy available to the public. When requested by members, financial statements are made available to the public. An annual report containing year end financial statements are published and made available upon request. Form 990, Part XI, Line 9 The ($210,737) represents three different components. The change in Pension Plan Funding during 2016 was ($235,532). As reported on Part XII of Schedule D, ($116,637) was the difference of the book versus tax expense of the Customer List Intangible Amortization. As reported on Part XII of Schedule D, $141,432 was the Amortization of Goodwill over 15 years not reported on the Audited Financial Statements. These 3 dollar amounts: ($235,532) + ($116,637) + $141,432 equal ($210,737). Plan One Financial Services Inc 641 South Miami Street Wabash IN 46992 351677931 Financial Services IN 1246355 4891461 Beacon Credit Union Beacon Credit Union Foundation Inc 586 S Wabash Street Wabash IN 46992 453814789 Private Foundation IN 501 (c) (3) PF Beacon Credit Union 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Beacon Credit Union Foundation Inc b 63175 Cash Beacon Credit Union Foundation Inc a-i 171 Cash