2017-05-15T11:52:38-05:00 2016-12-31 382492570 DOEREN MAYHEW 305 WEST BIG BEAVER ROAD TROY MI 48084 990 2016-01-01 381629793 MICHIGAN SCHOOLS AND GOVERNMENT CREDIT UNION MICH 5862638800 40400 GARFIELD RD CLINTON TOWNSHIP MI 48038 STEVE BREWER CFO 5862638800 2017-05-15 1 JOSEPH A ZITO CPA P00648440 2482443000 50.235.194.18 2017-05-15 12:50:46 ED P 6C9B1A35775087DBDB8A6D25ECA509C7F6C27838 1353DC092BF0A9AADCA388267C2932B6E10091D4 2016 2021-01-29 14:40:06Z PETER GATES 40400 GARFIELD RD CLINTON TOWNSHIP MI 48038 95986997 0 1359 X WWW.MSGCU.ORG X CREDIT UNION 1954 MI CREDIT UNION OPERATED FOR MUTUAL PURPOSES. 11 11 382 11 0 0 0 0 65481844 66098068 3191903 9156209 0 0 68673747 75254277 112121 123125 0 0 21560225 22024911 0 0 0 30271083 31039493 51943429 53187529 16730318 22066748 1554767449 1674185767 1373220595 1468573051 181546854 205612716 X WE ARE A CARING ORGANIZATION DEDICATED TO PROMOTING FINANCIAL SUCCESS FOR OUR MEMBERS. 0 0 FOUNDED IN 1954 BY A SMALL GROUP OF TEACHERS, PRINCIPALS AND OTHER SCHOOL EMPLOYEES, MICHIGAN SCHOOLS AND GOVERNMENT CREDIT UNION (MSGCU) HAS BEEN PROVIDING QUALITY FINANCIAL SERVICES TO ITS MEMBERS FOR MORE THAN 60 YEARS. WHETHER IT IS A CHECKING OR SAVINGS ACCOUNT, LOAN, IRA, CERTIFICATE OF DEPOSIT, MORTGAGE OR CREDIT CARD, MSGCU WANTS TO HELP ITS 109,000 MEMBERS ACHIEVE THEIR FINANCIAL SUCCESS. FROM THE START, MSGCU HAS BEEN DEDICATED TO A SIMPLE PURPOSE: SERVING THE FINANCIAL NEEDS OF ITS MEMBERS. WE DO THIS BY PASSING SAVINGS AND ATTRACTIVE RATES TO OUR MEMBERS, OFFERING SENSIBLE SOLUTIONS AND CONSISTENTLY GOING ABOVE AND BEYOND. WE HAVE ALWAYS BEEN ABOUT PEOPLE HELPING PEOPLE, ABOUT OUR COMMUNITY HELPING THE COMMUNITY AROUND IT. AND TODAY, THAT MISSION CONTINUES. AND MSGCU MEMBERS - WHETHER JOINING WITH A TRADITIONAL EDUCATION/GOVERNMENT/SERVICE BACKGROUND OR ENJOYING ELIGIBILITY IN OTHER WAYS - CAN APPRECIATE AND CHAMPION THE SAME PASSION FOR SERVICE THROUGH SO MANY ASPECTS OF MSGCU MEMBERSHIP. OUR MEMBERS RECEIVE EXCEPTIONAL FINANCIAL BENEFITS AND REWARDS. THEY EXPERIENCE THE PROACTIVE GUIDANCE OF PEOPLE WHO GENUINELY CARE ABOUT THEIR FINANCIAL WELL-BEING. THEY SHARE IN A BIGGER MISSION - PAYING A LITTLE GENEROSITY FORWARD, BY ASSOCIATION, EVERY DAY.WITH 12 OFFICES LOCATED THROUGHOUT MACOMB, OAKLAND, AND WAYNE COUNTIES, PROVIDING FULL ONLINE BANKING AND MOBILE SERVICES, WITH $1.65 BILLION IN ASSETS, AND A STAFF OF 300 EMPLOYEES, MSGCU IS A VALUED RESOURCE FOR FINANCIAL WELLBEING FOR BOTH CONSUMERS AND BUSINESSES. AT THE END OF 2016 OUR LENDING PORTFOLIO TOTALED JUST OVER $1.256 BILLION. THE CONSUMER LENDING PORTION OF THE PORTFOLIO WAS JUST OVER $652 MILLION. THE MORTGAGE PORTFOLIO WAS JUST OVER $522 MILLION AND THE BUSINESS LOAN PORTFOLIO WAS ALMOST $82 MILLION. THE SAVINGS PORTFOLIO WAS $1.456 BILLION. DURING 2016, THE CREDIT UNION SERVED OVER 6,000 PARTICIPANTS WITH OUR FINANCIAL EDUCATION WORKSHOPS, WHICH FEATURED TOPICS LIKE HOME BUYING, HOME EQUITY, WILLS AND TRUSTS, UNDERSTANDING CREDIT REPORTS AND CREDIT SCORES, SOCIAL SECURITY, AND RETIREMENT. WE OFFERED OVER 240 FINANCIAL EDUCATION WORKSHOPS IN OUR BRANCHES, LOCAL HIGH SCHOOLS, LIBRARIES AND OTHER LOCATIONS CONVENIENT TO THE PUBLIC AND OUR MEMBERS. THE CREDIT UNION CONTINUED ITS SCHOLARSHIP PROGRAMS BY PROVIDING $77,500 TO HIGH SCHOOL SENIORS WHO WILL ATTEND COLLEGE AS WELL TO FIRST RESPONDERS WHO WILL GRADUATE FROM THE FIRE AND POLICE ACADEMIES AT MACOMB COMMUNITY COLLEGE, OAKLAND COMMUNITY COLLEGE AND SCHOOLCRAFT COLLEGE. OVER THE YEARS WE HAVE BEEN RECOGNIZED FOR THE WORK WE DO FOR OUR MEMBERS, EMPLOYEES, AND THE COMMUNITY. MSGCU WAS NAMED MICHIGAN CREDIT UNION OF THE YEAR - 2015 BY THE MICHIGAN CREDIT UNION LEAGUE. THE DETROIT FREE PRESS ALSO SELECTED MSGCU AS A TOP WORKPLACE IN MICHIGAN FOR THE PAST FOUR YEARS. WE ARE PROUD OF A 97% OR HIGHER MEMBER SATISFACTION RATING FOR MORE THAN TEN YEARS AND ACHIEVING THE BAUER FINANCIAL HIGHEST POSSIBLE RATING OF FIVE STARS FOR THE PAST TWENTY YEARS. THESE ACCOMPLISHMENTS CONFIRM THAT WE ARE MAKING A DIFFERENCE IN THE COMMUNITIES WE SERVE IN SOUTHEAST MICHIGAN. THE CREDIT UNION ALSO CONTINUED ITS CLASSROOM GRANT PROGRAM, WHICH PROVIDES FUNDS TO TEACHERS TO BE USED FOR OTHERWISE UNFUNDED CLASSROOM PROJECTS. IN 2016, MSGCU AWARDED 63 GRANTS TOTALING MORE THAN $45,500 TO LOCAL EDUCATORS TO BE USED DURING THE 2016/2017 SCHOOL YEAR. ONCE AGAIN, MSGCU'S GIVING BACK PROGRAM RETURNED IN 2016. EACH BRANCH DESIGNATED A MONTH TO DONATE TIME AND $1,000 WORTH OF RESOURCES TO HELP A NON-PROFIT GROUP OR ORGANIZATION WITHIN THEIR COMMUNITY. IN TOTAL, MSGCU GAVE BACK HUNDREDS OF VOLUNTEER HOURS AND MORE THAN $12,000 IN RESOURCES. 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 1 1 1 0 0 0 0 0 0 0 0 0 0 1 1 1 1 0 1 25268 0 1 382 1 0 0 0 0 0 0 X 11 11 0 0 0 0 1 1 1 1 1 0 0 0 1 1 1 1 1 1 1 0 X PETER GATES 5862638800 40400 GARFIELD RD CLINTON TOWNSHIP MI 48038 WILLIAM CAYEN CHAIRMAN 1.00 X 0 0 0 MILO PERREAULT VICE CHAIRMAN 1.00 X 0 0 0 RICHARD MAIERLE SECRETARY 1.00 X 0 0 0 JAMES MCCANN TREASURER 1.00 X 0 0 0 ELIZABETH ARGIRI DIRECTOR 1.00 X 0 0 0 TERESA DIMARIA DIRECTOR 1.00 X 0 0 0 EDWARD CALLAGHAN DIRECTOR 1.00 X 0 0 0 RICHARD SHOEMAKER DIRECTOR 1.00 X 0 0 0 DOUGLAS SMITH DIRECTOR 1.00 X 0 0 0 CHARLES THOMAS DIRECTOR 1.00 X 0 0 0 STEPHEN THOMAS DIRECTOR 1.00 X 0 0 0 PETER GATES PRESIDENT/CEO 40.00 X 669052 0 45630 STEVE BREWER CFO 40.00 X 281943 0 44025 PHILIP COOPER CLO 40.00 X 234729 0 42852 SCOTT TOWNSEND CIO 40.00 X 238150 0 33301 DEBORAH FAHRNEY VP RETAIL SERVICES 40.00 X 193447 0 35326 MICHAEL ZALEWSKI VP HR 40.00 X 187389 0 34794 1804710 0 235928 17 0 1 0 FIS 601 RIVERSID AVE JACKSONVILLE FL 32204 TECHNOLOGY PRODUCTS 1970884 KASCO INC 226 EAST HUDSON AVENUE ROYAL OAK MI 48067 CONSTRUCTION SERVICES 1078468 IDSCOM 747 EAST WHITCOMB AVENUE MADISON HEIGHTS MI 48071 DOCUMENT SOLUTIONS 689263 HARRISON MEDIA 24416 CROCKER BOULEVARD CLINTON TOWNSHIP MI 48036 MARKETING 647369 CDW DIRECT PO BOX 75723 CHICAGO IL 60675 TECHNOLOGY PRODUCTS 645563 35 INTEREST ON LOANS 522100 53415345 53415345 FEES, CHARGES AND OTHER 522100 12682723 12682723 66098068 8401787 7740625 661162 21487142 20732720 754422 754422 754422 75254277 74593115 0 661162 18000 105125 714682 15193323 1917631 2942617 1256658 214836 1656751 1492603 2069075 1695761 69893 89261 8364823 66939 2688034 211263 PROVISION FOR LOAN LOSS 3450000 DEBIT/CREDIT CARD EXPEN 2966120 LOAN SERVICING EXPENSE 2242277 SOFTWARE LICENSING AND 855128 2906729 53187529 10789543 6622577 106470569 42700641 775781 3137006 1145562189 1245401085 1017717 1586939 47297246 11124493 33143437 36172753 223287417 304769778 11024400 11024400 22696396 22770588 1554767449 1674185767 7576152 11494167 1703414 2020616 25000000 1338941029 1455058268 1373220595 1468573051 X 0 0 0 0 181546854 205612716 181546854 205612716 1554767449 1674185767 22066748 1999114 0 X X 0 1 X 1 0 0 1 X 10748797 10748797 22925779 3553380 19372399 13156101 7314652 5841449 466569 256461 210108 36172753 MEMBER SHARES 1455058268 1455058268 X PART IV, LINE 2B: AS A LOAN SERVICER, THE CREDIT UNION RECEIVES PRINCIPAL PAYMENTS, INTEREST PAYMENTS, TAX PAYMENTS AND INSURANCE PAYMENTS AND THEN REMITS THESE FUNDS TO THE APPLICABLE THIRD PARTIES ON BEHALF OF THE BORROWERS. PART X, LINE 2: MSGCU IS EXEMPT, BY STATUTE, FROM FEDERAL AND STATE INCOME TAXES. MSGCU IS SUBJECT TO UNRELATED BUSINESS INCOME TAX. MSGCU'S WHOLLY OWNED SUBSIDIARIES, SOC REAL ESTATE AND 20595 LIVONIA LLC, HOWEVER, ARE SUBJECT TO FEDERAL AND STATE INCOME TAXES. MANAGEMENT EVALUATED MSGCU'S TAX POSITIONS AND CONCLUDED THAT MSGCU HAD TAKEN NO UNCERTAIN TAX POSITIONS THAT REQUIRE ADJUSTMENT TO THE CONSOLIDATED FINANCIAL STATEMENTS. MSGCU FILES IRS FORM 990 (RETURN OF ORGANIZATION EXEMPT FROM INCOME TAX) AND OTHER FORMS IN THE U.S. FEDERAL JURISDICTION AND THE STATE OF MICHIGAN. 1 LAKEVIEW SCHOOL DISTRICT 20300 STATLER ST CLAIR SHORES MI 48081 386002524 5250 GRANTS UTICA COMMUNITY SCHOOLS 11303 GREENDALE STERLING HEIGHTS MI 48312 386002552 12750 GRANTS 0 1 COLLEGE SCHOLARSHIPS 25 77500 EDUCATIONAL GRANTS 39 27625 PART I, LINE 2: AN APPLICATION IS REQUIRED FROM THE TEACER APPLYING FOR THE GRANT. GRANTS ARE PAYABLE DIRECTLY YTO THE SCHOOL AND TEACHERS FILE PAPERWORK WITH THEIR SCHOOL FOR REIMBURSEMENT OF CLASSROOM EXPENSES. WE HAVE A COMMITTEE THAT REVIEWS APPLICATIONS AWARDS SCHOLARSHIPS TO SELECTED INDIVIDUALS. X X 1 1 X X X 0 1 0 PETER GATES PRESIDENT/CEO 598493 0 59119 0 11440 0 25950 0 19680 0 714682 0 0 0 STEVE BREWER CFO 246088 0 31681 0 4174 0 25950 0 18075 0 325968 0 0 0 PHILIP COOPER CLO 216872 0 17552 0 305 0 25028 0 17824 0 277581 0 0 0 SCOTT TOWNSEND CIO 202088 0 31681 0 4381 0 15539 0 17762 0 271451 0 0 0 DEBORAH FAHRNEY VP RETAIL SERVICES 171723 0 19718 0 2006 0 17870 0 17456 0 228773 0 0 0 MICHAEL ZALEWSKI VP HR 166396 0 20688 0 305 0 20609 0 14185 0 222183 0 0 0 PART I, LINE 4B THE CEO PARTICIPATES IN A 457(F) DEFERRED COMPENSATION PLAN. HE RECEIVED NO PAY OUTS IN 2016. FORM 990, PART VI, SECTION A, LINE 6 EACH INDIVIDUAL THAT HAS AN ACCOUNT WITH THE CREDIT UNION IS A MEMBER. FORM 990, PART VI, SECTION A, LINE 7A MEMBERS OF THE CREDIT UNION HAVE THE RIGHT TO ELECT ONE OR MORE 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 THE CEO, CFO AND ACCOUNTING MANAGER REVIEW THE COMPLETED FORM 990 PRIOR TO FILING. FORM 990, PART VI, SECTION B, LINE 12C ANNUALLY THE BOARD OF DIRECTORS COMPLETES A CONFLICT OF INTEREST DISCLOSURE. FORM 990, PART VI, SECTION B, LINE 15 ON AN ANNUAL BASIS, CEO COMPENSATION IS RECOMMENDED BY THE PERSONNEL COMMITTEE, A SUBCOMMITTEE OF THE BOARD OF DIRECTORS, AND APPROVED BY THE ENTIRE BOARD OF DIRECTORS. ON AN ANNUAL BASIS, ALL OTHER EMPLOYEE COMPENSATION IS SET BY THE CEO, EXECUTIVE TEAM, AND HUMAN RESOURCES. WE UTILIZE A THIRD PARTY COMPENSATION CONSULTANT IN JOB PRICING. FORM 990, PART VI, SECTION C, LINE 19 FINANCIAL STATEMENTS ARE AVAILABLE TO THE PUBLIC UPON REQUEST. GOVERNING DOCUMENTS AND CONFLICT OF INTEREST POLICY ARE NOT MADE AVAILABLE TO THE PUBLIC. FORM 990, PART XII, LINE 2C: THERE WERE NO CHANGES IN THE PROCESS OF THE COMMITTEE THAT ASSUMES RESPONSIBILITY OF THE OVERSIGHT OF THE AUDIT AND SELECTION OF THE INDEPENDENT AUDITOR. 20595 LIVONIA LLC 28366 FRANKLIN SOUTHFIELD MI 48034 455324142 HOLDING COMPANY FOR LAND MI 0 770673 MICHIGAN SCHOOLS AND GOVERNMENT CREDIT UNION SOC REAL ESTATE INC 40400 GARFIELD CLINTON TOWNSHIP MI 48038 382658390 REAL ESTATE MI MICHIGAN SCHOOLS AND GOVERNMENT CREDIT UNION C 16698 3358892 1.00000 1 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 1 0 0 0 SOC REAL ESTATE INC K 644232 MARKET LEASE RATES PER SQ. FOO SOC REAL ESTATE INC K 5100 ACTUAL COST SOC REAL ESTATE INC L 120000 SALARY ALLOCATION