2016-09-02T13:04:23-05:00 2015-12-31 420714325 RSM US LLP 801 NICOLLET MALL SUITE 1100 MINNEAPOLIS MN 55402 990 2015-01-01 951209332 UNIVERSITY & STATE EMPLOYEES CREDIT UNION UNIV 8587956100 10120 PACIFIC HEIGHTS BLVD NO 100 SAN DIEGO CA 92121 KENNETH KRAMER SVP/CFO 8587956100 2016-09-02 1 GERALD B KISSELL P00092658 6123324300 2015 2016-12-15 16:53:06Z USE CREDIT UNION JAMES HARRIS 10120 PACIFIC HEIGHTS BLVD NO 100 SAN DIEGO CA 92121 115359808 0 X WWW.USECU.ORG X 1936 CA TO LEAD IN SERVICE, QUALITY AND MEMBER-VALUE AS YOUR TRUSTED FINANCIAL PARTNER. 11 11 188 16 348263 -462219 0 0 28746760 28486935 6634832 5898699 132669 80080 35514261 34465714 0 0 1881598 1760995 12555908 13752530 0 0 0 13231139 14964686 27668645 30478211 7845616 3987503 794331432 832475061 716995136 752422098 77336296 80052963 X TO PROVIDE FINANCIAL SERVICES TO ALL WHO ARE ELIGIBLE FOR UNIVERSITY & STATE EMPLOYEES (USE) CREDIT UNION MEMBERSHIP. 0 0 MEMBERSHIP IN USE CREDIT UNION PROVIDES ACCESS TO A ROBUST ARRAY OF QUALITY FINANCIAL SERVICES AND PRODUCTS INCLUDING CHECKING AND SAVINGS ACCOUNTS. UNLIKE BANKS, WHICH RETURN THEIR PROFITS TO SHAREHOLDERS, USE CREDIT UNION RETURNS ITS PROFITS TO MEMBERS IN THE FORM OF HIGHER RATES ON DEPOSITS AND A HOST OF FREE AND LOW-COST SERVICES. AS OF DECEMBER 31, 2015, USE CREDIT UNION MEMBERS HELD 72,752 DEPOSIT ACCOUNTS TOTALING OVER $737 MILLION. THESE ACCOUNTS INCLUDED FREE CHECKING, LOW-BALANCE SAVINGS, IRA'S, AND HIGH-YIELD MONEY MARKET AND TERM INVESTMENT ACCOUNTS. AS A MEMBER-OWNED, NOT-FOR-PROFIT COOPERATIVE, USE CREDIT UNION IS DEDICATED TO PROVIDING THE FINANCIAL PRODUCTS AND SERVICES MEMBERS NEED AT EVERY STAGE OF LIFE. WHETHER IT'S BUYING A FIRST CAR, FINANCING A NEW HOME, OR SEEKING A HIGHER EDUCATION, USE CREDIT UNION OFFERS MEMBERS LOW-COST HOME, VEHICLE, AND PERSONAL LOANS, AS WELL AS, FREE FINANCIAL SEMINARS TO ASSIST THEM IN MAKING SOUND FINANCIAL CHOICES. AS OF DECEMBER 31, 2015, USE CREDIT UNION MEMBERS HELD 36,471 MORTGAGE, HOME EQUITY, VEHICLE, CREDIT CARD, AND VARIOUS OTHER PERSONAL LOANS TOTALING OVER $515 MILLION. SINCE 1936, USE CREDIT UNION HAS BEEN HELPING PEOPLE ACHIEVE THEIR MOST IMPORTANT FINANCIAL GOALS. AS ONE OF CALIFORNIA'S LARGEST CREDIT UNIONS, USE OFFERS FULL-SERVICE BANKING INCLUDING FREE AND LOW-COST E-SERVICES. MEMBERS CAN MANAGE THEIR PERSONAL FINANCES ANYTIME, ANYWHERE WITH TELEPHONE, ONLINE AND WIRELESS INTERNET BANKING. AS AN ADDITIONAL CONVENIENCE, USE CREDIT UNION OFFERS BILLPAY SERVICES TO MEMBERS WITH QUALIFYING CHECKING ACCOUNTS AT NO COST. EACH MONTH, APPROXIMATELY 23,000 MEMBERS UTILIZE THE E-SERVICES AVAILABLE 24 HOURS PER DAY. IN ADDITION, USE CREDIT UNION HAS PARTNERED WITH OTHER CREDIT UNIONS TO FORM THE CO-OP ATM NETWORK. THIS NETWORK PROVIDES MEMBERS ACCESS TO APPROXIMATELY 30,000 NO-FEE ATM'S THROUGHOUT THE UNITED STATES AND CANADA, INCLUDING LOCATIONS AT POPULAR RETAILERS. ADDITIONAL USE CREDIT UNION MEMBERSHIP BENEFITS INCLUDE: 1) PROFESSIONAL BROKERAGE AND INVESTMENT SERVICES; 2) PROFESSIONAL TAX PREPARATION SERVICES; 3) MONEY-SAVING AUTO, HOME, HEALTH, AND LIFE INSURANCE PROGRAMS; 4) FREE FINANCIAL EDUCATION SEMINARS; 5) MERCHANT, RECREATION, AND TRAVEL DISCOUNTS. 0 0 1 0 0 0 0 1 0 1 1 0 1 1 1 0 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 0 0 1 19542 0 1 188 1 1 1 0 0 0 0 0 X 11 11 0 0 0 0 1 1 1 1 1 0 1 1 0 1 1 1 1 1 1 1 0 CA X LISA CHAN VPFINANCE 8587956111 10120 PACIFIC HEIGHTS BLVD NO 100 SAN DIEGO CA 92121 JOSHUA LAWRENCE CHAIR 3.00 X X 0 0 0 LES OVERMAN VICE CHAIR 3.00 X X 0 0 0 MATT ADAMS DIRECTOR 3.00 X 0 0 0 JOHN RICHARD CHANTENGCO DIRECTOR 3.00 X 0 0 0 TONY CHERIN DIRECTOR 3.00 X 0 0 0 SCOT EINSENDRATH DIRECTOR 3.00 X 0 0 0 DAVID ELY DIRECTOR 3.00 X 0 0 0 YVONNE L MARSH DIRECTOR 3.00 X 0 0 0 BEVERLY RANDEZ DIRECTOR 3.00 X 0 0 0 ARUN SEN DIRECTOR 3.00 X 0 0 0 STEVE ST MARIE DIRECTOR 3.00 X 0 0 0 JOHN STEVENSON DIRECTOR (RETIRED MAY 2015) 3.00 X 0 0 0 JAMES HARRIS PRESIDENT/CEO 40.00 X 444033 0 31580 KENNETH KRAMER SVP/CFO/TREASURER 40.00 X 285043 0 37752 GARY AHLGREN EVP/ORGANIZATIONAL IMPROVEMENT 40.00 X 285780 0 31176 STEPHEN EWERS CIO 40.00 X 271660 0 35945 LAURA YOUNG SVP/HR & ORGANIZATIONAL DEVELOPMENT 40.00 X 228421 0 20179 KAREN SMITH VP LENDING 40.00 X 178828 0 21467 NICOLE ANDERSON VP MARKETING 40.00 X 178044 0 6551 BILLIE JO CARDENAS VP RETAIL DELIVERY 40.00 X 176601 0 15575 NATHANIEL FRICHTEL VP BUSINESS TECHNOLOGY 40.00 X 169756 0 21451 RICHARD MATTHEWS AVP SOFTWARE ENGINEERING 40.00 X 151853 0 17027 2370019 0 238703 29 0 1 0 VANTIV HOLDING LLC 8500 GOVERNORS HILL DRIVE SYMMES TOWNSHIP OH 45249 CARDHOLDER SERVICES 1328213 DIGITAL INSIGHT 1300 SEAPORT BOULEVARD SUITE 300 REDWOOD CITY CA 94063 ONLINE BANKING / WEBSITE HOSTING SERVICE 1196927 BACKBASE USA INC 19050 BAY STREET UNIT 97 EL VERANO CA 95433 CONSULTING/ TECHNOLOGY SERVICES 676261 FISERV 255 FISERV DRIVE BROOKFIELD WI 53045 SOFTWARE PROVIDER 478679 CORELATION INC 2878 CAMINO DEL RIO SOUTH SUITE 41 SAN DIEGO CA 92108 SOFTWARE PROVIDER 394776 19 LOAN INTEREST INCOME 522100 21081242 21081242 SERVICE CHARGES AND FEE INCOME 522100 4659322 4311059 348263 INTERCHANGE INCOME 522100 2746371 2746371 28486935 4274517 4274517 616910 536830 80080 80080 80080 7284263 74697183 7331167 73026097 -46904 1671086 1624182 1624182 34465714 28138672 348263 5978779 1760995 1672540 9780445 394848 986357 918340 62799 201048 277311 661920 1733467 2474786 1682069 127086 128731 189418 1755702 129700 ATM EXPENSES 1896438 LOAN PROGRAM/SERVICING 1460178 PROVISION FOR LOAN LOSS 612401 CREDIT CARD PROGRAM COS 475730 1095902 30478211 50078865 36402112 467523614 508222672 848720 1310450 41729239 12570052 27708391 29159187 191014939 198819841 57156903 58560799 794331432 832475061 904327 819407 3000000 5000000 713090809 746602691 716995136 752422098 X 0 0 0 0 77336296 80052963 77336296 80052963 794331432 832475061 X 3987503 -1270837 X 0 1 X 1 0 5500 5500 5500 1 CALIFORNIA CREDIT UNION LEAGUE PAC 1201 K STREET SUITE 1050 SACRAMENTO CA 95814 942329967 4500 SAN DIEGO CREDIT UNIONS' PAC 9201 SPECTRUM CENTER BVD SAN DIEGO CA 92123 743032876 1000 PART I-A, LINE 1: USE'S POLITICAL CAMPAIGN ACTIVITIES ARE PRIMARILY CENTERED AROUND SPECIFIC LEGISLATIVE BILLS OF SPECIFIC INTEREST TO USE AND/OR THE CREDIT UNION INDUSTRY. WE PARTICIPATE WITH THE CALIFORNIA/NEVADA CREDIT UNION LEAGUE AND CUNA BY SENDING LETTERS OF SUPPORT OR OPPOSITION TO PROPOSED LEGISLATION. WE ALSO, ON AN INDIVIDUAL BASIS, ATTEND FUNDRAISERS TO SUPPORT CREDIT UNION FRIENDLY LEGISLATORS. FINANCIAL CONTRIBUTIONS ARE MADE BY EITHER PERSONAL FUNDS OR THROUGH PAC CONTRIBUTIONS. 0 1 X 8257243 8257243 17865996 3914671 13951325 3734781 2872765 862016 11871219 5782616 6088603 29159187 AVAILABLE FOR SALE SECURITIES 194667941 F FEDERAL HOME LOAN BANK STOCK 4151900 F 198819841 ACCRUED INTEREST RECEIVABLE 2515191 NCUA SHARE INSURANCE DEPOSITS 6989869 ACH SETTLEMENT CLEARING 26574354 INSURANCE CONTRACTS 10587008 LOANS HELD FOR SALE 4314484 OTHER ASSETS 7579893 58560799 MEMBER SHARES 737554469 OTHER LIABILITIES 9048222 746602691 X 35002544 0 35002544 -536830 -536830 34465714 31015040 0 31015040 -536830 -536830 30478210 PART IV, LINE 2B: THE CREDIT UNION MAINTAINS ESCROW ACCOUNTS FOR MORTGAGE LOANS HELD BY MEMBERS. THE CREDIT UNION ALSO HOLDS CUSTODIAL ACCOUNTS TO FACILITATE THE SERVICING OF LOANS SOLD TO ENTITIES SUCH AS FANNIE MAE. AT 12/31/2015 THE ESCROW BALANCE WAS $819,924 AND THE VALUE OF ASSETS FOR WHICH THE CREDIT UNION SERVES AS CUSTODIAN WAS $11,483. PART X, LINE 2: FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014, MANAGEMENT DETERMINED THAT THERE ARE NO MATERIAL UNCERTAIN TAX POSITIONS. PART XI, LINE 4B - OTHER ADJUSTMENTS: RENTAL EXPENSES RECLASSED TO REVENUE -536,830. PART XII, LINE 4B - OTHER ADJUSTMENTS: RENTAL EXPENSES RECLASSED TO REVENUE -536,830. X 1 1 X X X 0 0 0 JAMES HARRIS PRESIDENT/CEO 370563 0 48157 0 25313 0 13283 0 18323 0 475639 0 0 0 KENNETH KRAMER SVP/CFO/TREASURER 239622 0 32280 0 13141 0 13191 0 25343 0 323577 0 0 0 GARY AHLGREN EVP/ORGANIZATIONAL IMPROVEMENT 275986 0 0 0 9794 0 13141 0 18061 0 316982 0 0 0 STEPHEN EWERS CIO 218682 0 29254 0 23724 0 11384 0 24587 0 307631 0 0 0 LAURA YOUNG SVP/HR & ORGANIZATIONAL DEVELOPMENT 204819 0 16504 0 7098 0 10611 0 9678 0 248710 0 0 0 KAREN SMITH VP LENDING 159786 0 11440 0 7602 0 8935 0 12754 0 200517 0 0 0 NICOLE ANDERSON VP MARKETING 166901 0 9631 0 1512 0 0 0 7957 0 186001 0 0 0 BILLIE JO CARDENAS VP RETAIL DELIVERY 149351 0 20585 0 6665 0 9023 0 10177 0 195801 0 0 0 NATHANIEL FRICHTEL VP BUSINESS TECHNOLOGY 142428 0 8968 0 18360 0 8807 0 12670 0 191233 0 0 0 RICHARD MATTHEWS AVP SOFTWARE ENGINEERING 141161 0 10280 0 412 0 1618 0 16076 0 169547 0 0 0 PART I, LINE 1A TRAVEL FOR COMPANIONS - THE CREDIT UNION WILL PAY FOR ONE IMMEDIATE FAMILY MEMBER OR DOMESTIC PARTNER TO ACCOMPANY A VOLUNTEER TO A CONFERENCE OR SEMINAR, WITHIN SPECIFIED LIMITATIONS (E.G. ANNUAL BUDGET ALLOCATIONS, SHARING VOLUNTEER'S HOTEL ROOM). THE CREDIT UNION WILL ISSUE TO THE VOLUNTEER AN IRS FORM 1099 WHEN EXPENSES EXCEED $600 FOR WHICH NO BONA FIDE BUSINESS PURPOSE EXISTS. FORM 990, PART VI, SECTION A, LINE 6 THE CREDIT UNION'S MEMBERS HAVE RIGHTS TO ELECT THE MEMBERS OF THE GOVERNING BODY. THE CREDIT UNION'S MEMBERS ALSO RECEIVE A SHARE OF THE ORGANIZATION'S PROFITS OR EXCESS DUES IN THE FORM OF CASH DIVIDENDS. FORM 990, PART VI, SECTION A, LINE 7A MEMBERS OF THE CREDIT UNION HAVE THE RIGHT TO ELECT ONE OR MORE MEMBERS 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 11 THE FORM 990 IS REVIEWED BY THE CREDIT UNION'S CEO AND CFO PRIOR TO FILING WITH THE IRS. FORM 990, PART VI, SECTION B, LINE 12C USE CREDIT UNION STRIVES TO MEET ALL REQUIREMENTS OUTLINED IN THE IRS 1023 FORM CONCERNING CONFLICT OF INTEREST FOR NON-PROFIT ORGANIZATIONS. THIS INCLUDES A WRITTEN CONFLICT OF INTEREST POLICY, A QUESTIONNAIRE FOR OFFICERS, DIRECTORS, AND KEY EMPLOYEES TO DISCLOSE POSSIBLE INTERESTS THAT MAY TRIGGER A CONFLICT, AND ANNUAL TRAINING. FORM 990, PART VI, SECTION B, LINE 15 THE CREDIT UNION UTILIZES COMPEASE, A SOFTWARE APPLICATION LINKED TO CURRENT SALARY SURVEY DATA, TO ESTABLISH COMPENSATION LEVELS FOR EACH CREDIT UNION POSITION. COMPENSATION FOR OFFICERS AND KEY EMPLOYEES IS BASED UPON COMPEASE EVALUATIONS, A CANDIDATE'S SALARY HISTORY, AND THE SALARY JUDGED NECESSARY TO ATTRACT QUALIFIED CANDIDATES BASED UPON THEIR SKILLS AND EXPERIENCE. FORM 990, PART VI, SECTION C, LINE 19 AUDITED FINANCIAL STATEMENTS ARE PROVIDED TO THE MEMBERSHIP AT EACH ANNUAL MEETING. UNAUDITED FINANCIAL STATEMENTS ARE POSTED MONTHLY AT EACH BRANCH LOCATION FOR PUBLIC VIEWING. FORM 990, PART XI, LINE 9: RECLASS ADJUSTMENT FOR AFS INVESTMENTS WITH U/R GAINS -46,904. NET CHANGE IN U/R GAINS ON AFS INVESTMENTS -1,223,933. USE FINANCIAL SERVICES LLC 10120 PACIFIC HEIGHTS BLVD SUITE 10 SAN DIEGO CA 92121 FINANCIAL SERVICES CA UNIVERSITY & STATE EMPLOYEES CREDIT UNION