2016-11-11T07:55:28-06:00 2015-12-31 420714325 RSM US LLP 801 NICOLLET MALL SUITE 1100 MINNEAPOLIS MN 55402 990 2015-01-01 946061277 PACIFIC SERVICE CREDIT UNION PACI 9256095000 3000 CLAYTON ROAD CONCORD CA 94519 DAVID KATO VP & CFO 9256095000 2016-11-09 1 GERALD B KISSELL P00092658 6123324300 2015 2017-02-10 21:41:12Z STEPHEN PUNCH 3000 CLAYTON ROAD CONCORD CA 94519 91354039 0 X WWW.PACIFICSERVICE.ORG X 1936 CA THE ORGANIZATION IS A FULL SERVICE STATE-CHARTERED CREDIT UNION THAT PROVIDES A BROAD RANGE OF LOAN AND DEPOSIT PRODUCTS AND OTHER FINANCIAL SERVICES TO ITS MEMBERS USING VARIOUS CHANNELS INCLUDING BRANCHES, A CALL CENTER, MOBILE APPLICATIONS, AND THE INTERNET. 9 9 135 16 43443 -51717 0 0 24167233 26418847 4935397 5665945 51859 480813 29154489 32565605 130775 133422 3125913 2980340 12497413 13546844 0 0 0 9469011 9445622 25223112 26106228 3931377 6459377 1084862001 1118482237 944139689 972231992 140722312 146250245 THE ORGANIZATION IS A FULL SERVICE STATE-CHARTERED CREDIT UNION THAT PROVIDES A BROAD RANGE OF LOAN AND DEPOSIT PRODUCTS AND OTHER FINANCIAL SERVICES TO ITS MEMBERS USING VARIOUS CHANNELS INCLUDING BRANCHES, A CALL CENTER, MOBILE APPLICATIONS, AND THE INTERNET. 0 0 PACIFIC SERVICE CREDIT UNION (PSCU) WAS FOUNDED IN 1936 TO SERVE EMPLOYEES OF PG&E IN THE SAN FRANCISCO BAY AREA. OVER SEVENTY-FIVE YEARS LATER, PSCU NOW SERVES MORE THAN 57,000 MEMBERS WHO LIVE, WORK, WORSHIP OR ATTEND SCHOOL IN ALAMEDA, CONTRA COSTA, FRESNO, MARIN, NAPA, PLACER, SACRAMENTO, SAN FRANCISCO, SAN MATEO, SANTA CLARA, SOLANO AND SONOMA COUNTIES. MEMBERS CAN TRANSACT IN ANY OF OUR SIX BRANCHES, AT ANY OF OVER 5,000 SHARED BRANCH LOCATIONS AVAILABLE THROUGH CO-OP SHARED BRANCH NETWORK, USING ATMS, ONLINE VIA OUR INTERNET HOME BANKING OR MOBILE SITES, USING POINT OF SALE WITH THEIR VISA DEBIT OR CREDIT CARD OR BY CALLING OUR TELEPHONE SERVICE CENTER OR TOLL-FREE AUTOMATED TELEPHONE BANKING SYSTEM. PSCU OFFERS A VARIETY OF DEPOSIT PRODUCTS INCLUDING SAVINGS, CHECKING, MONEY MARKET, CERTIFICATE, IRA, COVERDELL EDUCATION SAVINGS AND YOUTH ACCOUNTS. PSCU CHECKING PRODUCT OPTIONS CAN EARN INTEREST, ARE FREE FROM MONTHLY SERVICE CHARGES, ALLOW THE MEMBER TO OBTAIN RATE DISCOUNTS ON AUTO LOANS OR HELP A YOUNG MEMBER OPEN THEIR FIRST CHECKING ACCOUNT. PSCU'S DEPOSIT RATES ARE COMPETITIVE WITH THE MARKET AND ARE TYPICALLY HIGHER THAN BANKS. TOTAL MEMBER SHARE BALANCE AT DECEMBER 31, 2015 WAS $957,123,799. PSCU OFFERS A VARIETY OF COMPETITIVELY PRICED MORTGAGE LOAN OPTIONS AVAILABLE FOR A PRIMARY RESIDENCE OR SECOND HOME. PSCU HOME EQUITY LOAN OPTIONS RANGE FROM 5 TO 15 YEARS, AND MEMBERS MAY ALSO OBTAIN HOME EQUITY LINES OF CREDIT. PSCU OFFERS VEHICLE LOANS FOR NEW AND USED CARS, NEW AND USED BOATS, AS WELL AS NEW AND USED RVS. VISA CREDIT CARD LOANS INCLUDE A NO ANNUAL FEE OPTION AS WELL AS A CARD EARNING REWARDS POINTS. PSCU OFFERS OTHER CONSUMER LOANS FOR MEMBERS SUCH AS PERSONAL SIGNATURE LOANS, AS WELL AS SHARE- AND CERTIFICATE-SECURED LOANS. FOR OUR MEMBERS JUST STARTING TO BUILD THEIR CREDIT, PSCU ALSO OFFERS A STARTER VISA AND A FIRST-TIME AUTO LOAN PROGRAM. TOTAL MEMBER LOAN BALANCE AT DECEMBER 31, 2015 WAS $459,982,224. 0 0 0 0 0 0 0 1 0 1 0 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 1 0 1 0 1 0 0 0 0 0 0 0 0 0 1 0 0 1 13967 0 1 135 1 1 1 0 0 0 0 0 X 9 9 0 0 0 0 1 1 1 1 1 0 1 1 1 1 1 1 1 1 1 1 0 CA X VICKI TURANO AVPCONTROLLER 9256095062 3000 CLAYTON ROAD CONCORD CA 94519 MARIA DE MARTINI CHAIR 2.00 X X 0 0 0 AMAR PANCHAL VICE CHAIR 1.00 X X 0 0 0 JULIA BANNING SECRECTARY/TREASURER 1.00 X X 0 0 0 DAVID SENA BOARD MEMBER 1.00 X 2914 0 0 CARLOS DIAZ BOARD MEMBER 1.00 X 0 0 0 JOHN CADWALADER BOARD MEMBER 1.00 X 0 0 0 JIM PETERSON BOARD MEMBER 1.00 X 0 0 0 WILLIAM CHEN BOARD MEMBER 1.00 X 0 0 0 KATHLEEN TAPPERO BOARD MEMBER 1.00 X 0 0 0 JOYCE M SNEED BOARD MEMBER 1.00 X 0 0 0 STEPHEN PUNCH PRESIDENT & CEO 40.00 X 637383 0 554059 DAVID KATO VP & CFO 40.00 X 246487 0 53955 VICKI TURANO AVP & CONTROLLER 40.00 X 177909 0 24183 NANNETTE CUTLIFF VP 40.00 X 268311 0 31012 CHRIS OLDAG VP 40.00 X 256730 0 35007 VIRGINIA LAMPSON VP 40.00 X 246142 0 27232 KRISTIN DOVE VP 40.00 X 216118 0 45046 BARBARA SMITH VP 40.00 X 208007 0 43288 STEVEN CRAIGE AVP 40.00 X 153041 0 32785 HEMLATA PATEL AVP 40.00 X 140753 0 37908 MICHELLE SHELOR AVP 40.00 X 132275 0 33244 JAY STIRM SYSTEMS ANALYST 40.00 X 119647 0 34771 AARON DYE- INOUYE SYSTEMS ANALYST 40.00 X 122860 0 34539 2928577 0 987029 33 0 1 0 BUSINESS DATA INC PO BOX 6081 INGLEWOOD CA 903126081 HR/MARKETING 391542 JACK HENRY & ASSOCIATES INC PO BOX 609 MONETT MO 65708 MARKETING/FINANCE 349365 SYSTEM 1 STAFFING PO BOX 5834 CONCORD CA 94524 HR 328948 ACI 3520 KRAFT ROAD STE 300 NAPLES FL 34105 OPERATIONS 319785 GUARDIAN ANALYTICS INC DEPT CH 19649 PALATINE IL 600559649 OPERATIONS 219748 13 INTEREST ON LOANS 522100 19892752 19892752 INTERCHANGE INCOME 522100 3348022 3348022 SERVICE CHARGES & FEES 522100 1724567 1689722 34845 RECOVERY OF PROVISION FOR LOAN LO 522100 1453506 1453506 26418847 5369647 5369647 58095068 989664 58183580 604854 -88512 384810 296298 8598 287700 OTHER NON-INTEREST INCOME 522100 480813 480813 480813 32565605 26864815 43443 5657347 133422 2980340 3070868 6997548 881782 2006992 589654 30585 79780 94562 3995 1857548 769471 1247916 1358595 1088657 154801 123050 1028020 131521 MEMBER LOAN SERVICING 1477121 26106228 1440649 1422455 37405879 60951051 246262 290192 13815 8753 410148596 458723795 808326 981054 19561425 12926585 7242308 6634840 612780217 574339192 850000 850000 13925949 14280905 1084862001 1118482237 15783758 15108193 928355931 957123799 944139689 972231992 X 0 0 0 0 140722312 146250245 140722312 146250245 1084862001 1118482237 X 6459377 -1004526 73082 X 0 1 X 1 0 1 127386 10725 -40845 97266 0 1837364 1837364 5324141 1817046 3507095 996219 938141 58078 3878737 3312278 566459 7524964 6859120 665844 6634840 MEMBER SHARE ACCOUNTS 172098725 MEMBER CHECKING ACCOUNTS 96462551 MEMBER MONEY MARKET ACCOUNTS 380382818 MEMBER REGULAR CERTIFICATE ACCOUNTS 231737660 MEMBER IRA ACCOUNTS 76442045 957123799 X 30742842 0 30742842 1822763 1822763 32565605 24283465 0 24283465 1822763 1822763 26106228 PART IV, LINE 1B: THE CREDIT UNION IS THE ADMINISTRATOR OF PSEA, PSEBA, PSFCU, AND SJPECU RETIREE MEDICAL BENEFIT TRUST (THE TRUST). ADMINISTRATIVE ACTIVITIES INCLUDE DISBURSING PAYMENTS FOR MEDICAL INSURANCE PREMIUMS, COLLECTING PARTICIPANT CONTRIBUTIONS, MANAGING CASH FLOWS, INVESTING NET ASSETS, PREPARING FINANCIAL STATEMENTS, AND PREPARING TAX RETURNS. AMOUNTS DUE BETWEEN THE CREDIT UNION AND THE TRUST ARE REIMBURSED SEMIANNUALLY. PART X, LINE 2: THE FASB ISSUED NEW GUIDANCE ON ACCOUNTING FOR INCOME TAXES IN FASB ACCOUNTING STANDARDS CODIFICATION (ASC) TOPIC 740, INCOME TAXES, WHICH PROVIDES GUIDANCE FOR HOW UNCERTAIN TAX POSITIONS SHOULD BE RECOGNIZED, MEASURED, DISCLOSED, AND PRESENTED IN THE FINANCIAL STATEMENTS. THIS REQUIRES THE EVALUATION OF TAX POSITIONS TAKEN OR EXPECTED TO BE TAKEN IN THE COURSE OF PREPARING THE CREDIT UNION'S TAX RETURNS TO DETERMINE WHETHER THE TAX POSITIONS ARE "MORE-LIKELY-THAN-NOT" OF BEING SUSTAINED "WHEN CHALLENGED OR "WHEN EXAMINED" BY THE APPLICABLE TAX AUTHORITY. TAX POSITIONS NOT DEEMED TO MEET THE "MORE-LIKELY-THAN-NOT" THRESHOLD SHOULD BE RECORDED AS A TAX EXPENSE AND LIABILITY IN THE CURRENT YEAR. FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014, MANAGEMENT HAS DETERMINED THAT THERE ARE NO MATERIAL UNCERTAIN TAX POSITIONS. PART XI, LINE 4B - OTHER ADJUSTMENTS: RECOVERY OF PROVISION FOR LOAN LOSS - RECLASSED FROM FUNCTIONAL EXPENSE 1,453,506. LEGAL SETTLEMENTS - RECLASSED FROM FUNCTIONAL EXPENSE 369,257. PART XII, LINE 4B - OTHER ADJUSTMENTS: RECOVERY OF PROVISION FOR LOAN LOSS - RECLASSED FROM FUNCTIONAL EXPENSE 1,453,506. LEGAL SETTLEMENTS - RECLASSED FROM FUNCTIONAL EXPENSE 369,257. 1 LOAVES & FISHES OF CONTRA COSTA COUNTY 1985 BONIFACIO STREET STE 100 CONCORD CA 94520 680018077 501(C)(3) 10000 GENERAL PROGRAM SUPPORT THE SALVATION ARMY 3755 NORTH FREEWAY BLVD SACRAMENTO CA 95834 941156347 501(C)(3) 10000 GENERAL PROGRAM SUPPORT FOOD BANK OF CONTRA COSTA COUNTY 4010 NELSON AVE CONCORD CA 94520 942418054 501(C)(3) 30000 GENERAL PROGRAM SUPPORT VALLEY CHILDREN'S HOSPITAL 9300 VALLEY CHILDRENS HOSPITAL PLACE MADERA CA 93636 942797447 501(C)(3) 11000 GENERAL PROGRAM SUPPORT BAY AREA RESCUE MISSION 2114 MACDONALD AVE RICHMOND CA 94802 946124054 501(C)(3) 10000 GENERAL PROGRAM SUPPORT YOUTH HOMES INC 3480 BUSKIRK AVE 210 PLEASANT HILL CA 94523 946132571 501(C)(3) 6800 GENERAL PROGRAM SUPPORT LEUKEMIA & LYMPHOMA SOCIETY 835 FERRY ST MARTINEZ CA 94553 135644916 501(C)(3) 10000 GENERAL PROGRAM SUPPORT 7 PART I, LINE 2: CHARITABLE CONTRIBUTION AMOUNT IN TOTAL IS APPROVED BY THE BOARD IN THE ANNUAL BUDGETING PROCESS. THE CREDIT UNION HAS EMPLOYEE VOLUNTEERS THAT MAKE UP ITS COMMUNITY INVOLVEMENT COMMITTEE (CIC). CIC MEMBERS MEET MONTHLY TO DISCUSS AND VOTE ON HOW THE BUDGETED FUNDS ARE TO BE SPENT. UPON BOARD APPROVAL DURING THE MONTHLY BOARD MEETING THE FUNDS ARE ISSUED TO THE VARIOUS CHARITABLE ORGANIZATIONS. CONTRIBUTIONS ARE MADE THROUGHOUT THE YEAR. ADDITIONAL CHARITABLE CONTRIBUTIONS MAY OCCUR, AS AUTHORIZED BY THE CEO. X 1 1 X X X 0 1 0 STEPHEN PUNCH PRESIDENT & CEO 511643 0 116625 0 9115 0 526305 0 27754 0 1191442 0 0 0 DAVID KATO VP & CFO 216190 0 36465 0 -6168 0 14593 0 39362 0 300442 0 0 0 VICKI TURANO AVP & CONTROLLER 161903 0 18556 0 -2550 0 10321 0 13862 0 202092 0 0 0 NANNETTE CUTLIFF VP 224603 0 37885 0 5823 0 12213 0 18799 0 299323 0 0 0 CHRIS OLDAG VP 220747 0 37233 0 -1250 0 10140 0 24867 0 291737 0 0 0 VIRGINIA LAMPSON VP 208154 0 35110 0 2878 0 15221 0 12011 0 273374 0 0 0 KRISTIN DOVE VP 185610 0 31307 0 -799 0 13732 0 31314 0 261164 0 0 0 BARBARA SMITH VP 178397 0 30090 0 -480 0 12720 0 30568 0 251295 0 0 0 STEVEN CRAIGE AVP 125594 0 16736 0 10711 0 6005 0 26780 0 185826 0 0 0 HEMLATA PATEL AVP 126862 0 14131 0 -240 0 7871 0 30037 0 178661 0 0 0 MICHELLE SHELOR AVP 119408 0 13685 0 -818 0 8881 0 24363 0 165519 0 0 0 JAY STIRM SYSTEMS ANALYST 107932 0 7494 0 4221 0 7294 0 27477 0 154418 0 0 0 AARON DYE- INOUYE SYSTEMS ANALYST 109569 0 9762 0 3529 0 8218 0 26321 0 157399 0 0 0 PART I, LINE 1A THE CREDIT UNION PROVIDES TRAVEL FOR THE COMPANIONS OF THE ATTENDING BOARD OF DIRECTORS AND CREDIT UNION OFFICERS TO THE ANNUAL PLANNING MEETING. FORM 1099 IS ISSUED TO THE BOARD MEMBER IF THE $600 REPORTING THRESHOLD IS MET. PART I, LINE 4B STEPHEN PUNCH, PRESIDENT & CEO, PARTICIPATED IN A SUPPLEMENTAL NON-QUALIFIED RETIREMENT PLAN. THERE WERE NO DISTRIBUTIONS IN 2015. VIRGINIA LAMPSON VICE PRESIDENT OF CREDIT UNION EMPLOYEE TUITION LOAN X 32366 8753 0 0 1 8753 FORM 990, PART VI, SECTION A, LINE 6 THE CREDIT UNION IS A MEMBER-OWNED NON-PROFIT TAX-EXEMPT CORPORATION IN WHICH EACH MEMBER OWNS AN EQUAL SHARE. FORM 990, PART VI, SECTION A, LINE 7A THE CREDIT UNION MEMBERS ELECT THE BOARD OF DIRECTORS. FORM 990, PART VI, SECTION A, LINE 7B CERTAIN DECISIONS OF THE CREDIT UNION'S GOVERNING BODY ARE SUBJECT TO APPROVAL BY MEMBERS, E.G., A CHANGE IN THE CREDIT UNION'S CHARTER. FORM 990, PART VI, SECTION B, LINE 11 FORM 990 IS PREPARED BY THE CREDIT UNION'S SENIOR ACCOUNTING ANALYST WITH INFORMATION OBTAINED FROM THE FINANCIAL RECORDS AND FROM CONSULTATIONS WITH OTHER DEPARTMENTS AND REFERENCE TO CREDIT UNION POLICIES AND PROCEDURES. FORM 990 IS REVIEWED IN DETAIL BY THE CREDIT UNION'S CONTROLLER. THE CHIEF FINANCIAL OFFICER REVIEWS FORM 990 FOR COMPLETENESS AND CONSISTENCY WITH THE CREDIT UNION POLICIES AND PROCEDURES. THE CHIEF EXECUTIVE OFFICER AND BOARD OF DIRECTORS ARE PROVIDED A COPY OF FORM 990 BEFORE IT IS FILED WITH THE IRS. FORM 990, PART VI, SECTION B, LINE 12C THE EMPLOYEE CONDUCT SECTION OF THE CREDIT UNION'S EMPLOYEE HANDBOOK CITES EMPLOYEE CONFLICTS OF INTEREST AS REASON FOR DISCIPLINARY ACTION. EMPLOYEES ARE REQUIRED TO ACKNOWLEDGE THE EMPLOYEE HANDBOOK ON AN ANNUAL BASIS. IN COMPLIANCE WITH THE FEDERAL CREDIT UNION ACT, VOLUNTEERS ARE REQUIRED TO DISCLOSE ACTUAL OR POTENTIAL CONFLICTS OF INTEREST UPON VOLUNTEERING. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF DIRECTORS REVIEWS INDEPENDENT THIRD PARTY EXECUTIVE COMPENSATION SURVEYS AND DETERMINES APPROPRIATE COMPENSATION FOR THE CEO. THE BOARD OF DIRECTORS APPROVES THE CREDIT UNION'S ANNUAL SALARY BUDGET. SALARY RANGES FOR ALL POSITIONS ARE MAINTAINED TO REFLECT MARKET SALARIES BASED ON PARTICIPATION IN INDUSTRY SURVEYS. TOP MANAGEMENT AND KEY EMPLOYEES' SALARIES ARE INITIALLY WITHIN THE RANGE FOR THAT POSITION, BASED ON THE EMPLOYEE'S EXPERIENCE, AND ADJUSTED ANNUALLY ACCORDING TO PERFORMANCE MANAGEMENT AND BUDGET CONSTRAINTS. FORM 990, PART VI, SECTION C, LINE 19 THE CREDIT UNION MAKES ITS BY-LAWS AVAILABLE TO MEMBERS UPON REQUEST. POLICIES AND PROCEDURES ARE NOT GENERALLY MADE AVAILABLE TO THE PUBLIC. A MONTHLY BALANCE SHEET AND INCOME STATEMENT ARE POSTED IN THE CREDIT UNION'S BRANCHES. ANNUAL FINANCIAL STATEMENTS ARE PUBLISHED IN THE ANNUAL REPORT. AUDITED FINANCIAL STATEMENTS ARE AVAILABLE TO MEMBERS UPON REQUEST FOR THE SAME PERIOD OF DISCLOSURE AS SET FORTH IN IRS CODE SECTION 6104(D). FORM 990, PART XI, LINE 9: NET CHANGE IN LOSS ON DEFINED BENEFIT POSTRETIREMENT MEDICAL PLAN 73,082. PSEA PSEBA PSFCU AND SJPECU RETIREE MEDICAL BENEFITS PLAN TRUST PO BOX 8191 WALNUT CREEK CA 945968191 680383491 RETIREE MEDICAL BENEFIT TRUST CA N/A T 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0