2016-11-08T08:50:36-06:00 2015-12-31 420714325 RSM US LLP 801 NICOLLET MALL SUITE 1100 MINNEAPOLIS MN 55402 990 2015-01-01 941189841 SCHOOLS FINANCIAL CREDIT UNION SCHO 9165695400 1485 RESPONSE ROAD NO 126 SACRAMENTO CA 95815 TIMOTHY MARRIOTT PRESIDENT/CEO 9165695400 2016-10-25 1 GERALD B KISSELL P00092658 6123324300 2016-10-25 2015 2017-02-10 21:41:12Z TIMOTHY MARRIOTT 1485 RESPONSE ROAD NO 126 SACRAMENTO CA 95815 95450123 0 X WWW.SCHOOLS.ORG X 1933 CA TO PROVIDE MEMBERS WITH BETTER VALUE AND OUTSTANDING SERVICE. 7 7 352 23 349571 -427365 0 0 44223682 47325794 11908085 11856484 349972 498746 56481739 59681024 24362 24161 3033364 3277610 21561209 22312555 0 0 0 18600597 20758121 43219532 46372447 13262207 13308577 1516618554 1614809830 1357682627 1444720374 158935927 170089456 X TO PROMOTE THRIFT AND SAVING AMONG MEMBERS, TO CREATE A SOURCE OF CREDIT FOR MEMBERS AT INTEREST RATES SET BY THE BOARD OF DIRECTORS, AND TO PROVIDE MEMBERS WITH AN OPPORTUNITY TO USE AND CONTROL THEIR MONEY ON A DEMOCRATIC BASIS IN ORDER TO IMPROVE THEIR ECONOMIC AND SOCIAL CONDITIONS. 0 0 SCHOOLS FINANCIAL CREDIT UNION (SFCU) IS A MEMBER-OWNED, NOT-FOR-PROFIT FINANCIAL COOPERATIVE DEDICATED TO SERVING THE FINANCIAL NEEDS OF ITS MEMBERS. ITS PURPOSE IS TO BE THE PRIMARY FINANCIAL INSTITUTION FOR COMMUNITY MEMBERS IN ITS SERVICE AREA. ITS MISSION IS TO PROVIDE MEMBERS WITH BETTER VALUE AND OUTSTANDING SERVICE. AS OF DECEMBER 31, 2015, SFCU HAD ELEVEN BRANCHES, 124,832 MEMBERS, TOTAL ASSETS OF $1,614,809,830, TOTAL OUTSTANDING LOANS OF $865,643,730, AND TOTAL DEPOSITS OF $1,434,337,932. SFCU FOSTERS A CULTURE OF "PEOPLE HELPING PEOPLE" THROUGHOUT THE ORGANIZATION, AND ITS INTERACTION WITH MEMBERS EPITOMIZES THE STANDARDS OF ETHICAL BEHAVIOR. SFCU TREATS ALL MEMBERS WITH RESPECT AND DIGNITY AND PROVIDES SERVICES TO SAVERS AND BORROWERS IN A DEMOCRATIC FASHION. SFCU OFFERS ITS MEMBERS AN ECONOMIC ADVANTAGE COMBINED WITH COURTEOUS, COMPETENT AND TIMELY SERVICE. IT VALUES OPEN, HONEST, TWO-WAY COMMUNICATION WITH ITS MEMBERS. SFCU SOLICITS INPUT FROM ITS MEMBERS TO FACILITATE COMMUNICATION AND TO MEASURE SERVICE QUALITY.SFCU IS COMMITTED TO CONSTANTLY IMPROVING ITS OVERALL OPERATIONAL EFFICIENCY, ITS SERVICE DELIVERY CONVENIENCE AND THE LEVEL OF PROFESSIONAL SERVICE IT PROVIDES TO ITS MEMBERS. IT MEETS ITS MEMBERS' EXPECTATIONS FOR PRICE ADVANTAGE, QUALITY SERVICE AND CONVENIENCE BY REMAINING FINANCIALLY STRONG AND VIABLE.SFCU COMMUNICATES ITS SERVICES IN A MEANINGFUL WAY SO THAT MEMBERS, POTENTIAL MEMBERS, LEGISLATORS, REGULATORS AND THE COMMUNITY-AT-LARGE UNDERSTAND AND APPRECIATE THE UNIQUE ROLE THAT MEMBER-OWNED FINANCIAL COOPERATIVES PLAY IN THEIR LIVES. ITS COMMITMENT TO MEMBERS IS CONSISTENT WITH ITS PRINCIPLES OF "FOR SERVICE, NOT FOR PROFIT, NOT FOR CHARITY AND ITS PHILOSOPHY OF "PEOPLE HELPING PEOPLE". THIS COMMITMENT REPRESENTS THE SOUND BUSINESS PRACTICES THAT ENSURE THE FINANCIAL STRENGTH OF SFCU FOR ITS MEMBERS. 0 0 0 0 0 0 0 1 0 1 1 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 46108 0 1 352 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 1 1 1 1 0 CA X TODD DEVOOGD 9165695400 1485 RESPONSE ROAD SUITE 126 SACRAMENTO CA 95815 MARIE B SMITH CHAIR 1.00 X X 0 0 0 EUGENE J HOUGHTON JR VICE CHAIR 1.00 X X 0 0 0 THERESA MATISTA TREASURER 1.00 X X 0 0 0 DOLORES BLEEKMAN SECRETARY 1.00 X X 0 0 0 LUTHER NOLEN DIRECTOR 1.00 X 0 0 0 DOUGLAS SATO DIRECTOR 1.00 X 0 0 0 EMILIO MARTINEZ DIRECTOR 1.00 X 0 0 0 JAMES P JORDAN III PRESIDENT & CEO 40.00 X 5277551 0 428147 TIMOTHY MARRIOTT EXECUTIVE VP/CFO 40.00 X 351775 0 265540 ERIC LINDSTROM SVP INFORMATION SERVICES/CIO 40.00 X 220823 0 55188 STEVE LANGLEY SVP MEMBER SERVICES 40.00 X 190971 0 18641 ROY WORLEY VP MARKETING 40.00 X 178926 0 31103 LISA MACKAY VP HUMAN RESOURCES & COMPLIANCE 40.00 X 177279 0 18701 TOM KUANG VP TECHNOLOGY/CTO 40.00 X 177142 0 15709 MELINDA BROWNING LOAN COUNSELOR 40.00 X 214978 0 32109 LINDSAY SHORES LOAN COUNSELOR 40.00 X 181172 0 31533 6970617 0 896671 25 0 1 0 PILLSBUY WINTHROP SHAW PITTMAN LLP FOUR EMBARCADERO CENTER 22ND FLOOR SAN FRANCISCO CA 94111 LEGAL FEES 545577 RUBICON PROPERTY MANAGEMENT 3400 DOUGLAS BLVD SUITE 255 ROSEVILLE CA 95661 PROPERTY MANAGEMENT 504919 DIEBOLD GLOBAL FINANCE CORPORATION 5995 MAYFAIR ROAD NORTH CANTON OH 44720 ATM SERVICING 304605 CORNERSTONE ADVISORS INC 7272 E INDIAN SCHOOL RD 400 SCOTTSDALE AZ 85251 NEGOTIATING SERVICES 189646 VALARIE COONS DBA PRINTING BY DESIGN PO BOX 103 RESCUE CA 95672 PRINTING 186426 11 LOAN INTEREST INCOME 522100 31001653 31001653 FEE & SERVICE CHARGE INCOME 522100 13668552 13574916 93636 OTHER INCOME 522100 2655589 2399654 255935 47325794 11213123 11213123 1199441 700695 498746 498746 498746 35703866 7899 35068404 0 635462 7899 643361 643361 59681024 46976223 349571 12355230 6160 18001 3277610 6826441 10889945 876277 2311722 1408170 629265 75000 106541 703823 1511446 3024044 2136220 116707 252460 839280 296695 OUTSIDE SERVICERS 5754086 PROVISION FOR LOAN LOSS 2850000 DUES & EXAM FEES 168076 2294478 46372447 93561634 130506284 1000000 1000000 750258371 866979338 701128 1181850 58134252 36735285 21772080 21398967 601422330 540545637 47903011 53197754 1516618554 1614809830 11451134 9196510 1067973 1185932 1345163520 1434337932 1357682627 1444720374 X 0 0 0 0 158935927 170089456 158935927 170089456 1516618554 1614809830 13308577 -2155048 0 X 0 1 X 1 0 0 1 X 5465742 5465742 27546541 15297108 12249433 3745856 3397502 348354 21376113 18040675 3335438 21398967 HELD TO MATURITY 247239446 C AVAILABLE FOR SALE SECURITIES 293306191 F 540545637 MEMBER SHARES 1434337932 1434337932 X 60381719 0 60381719 -700695 -700695 59681024 47073142 700695 700695 46372447 0 46372447 PART IV, LINE 2B: THE ESCROW ACCOUNTS HOLD AMOUNTS COLLECTED WITH THE MEMBERS' MORTGAGE PAYMENTS THAT ARE TO BE USED TO PAY THOSE MEMBERS' HOMEOWNERS' INSURANCE PREMIUMS AND PROPERTY TAXES WHEN DUE. PART X, LINE 2: 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: RENTAL EXPENSES RECLASSED FROM FUNCTIONAL EXPENSES -700,695. PART XII, LINE 2D - OTHER ADJUSTMENTS: RENTAL EXPENSES RECLASSED TO STATEMENT OF REVENUE 700,695. 1 SACRAMENTO FOOD BANK AND FAMILY SERVICES 3333 3RD AVENUE SACRAMENTO CA 95817 943315566 501(C)(3) 4000 2160 ACTUAL COST BOTTLED WATER RUN TO FEED THE HUNGRY 1 NEWS10 TEACHER OF THE YEAR 1 5000 65 ACTUAL COST BAGS, MUGS AND VARIOUS OFFICE/SCHOOL SUPPLIES NEWS10 TEACHER OF THE MONTH 12 12000 900 ACTUAL COST BAGS, MUGS AND VARIOUS OFFICE/SCHOOL SUPPLIES PART I, LINE 2: SFCU PARTNERS WITH SACRAMENTO'S CHANNEL 10 TO PROVIDE AWARDS TO EXCEPTIONAL TEACHERS THAT CHANNEL 10 HAS DESIGNATED AS TEACHERS OF THE MONTH OR TEACHERS OF THE YEAR. SFCU IS ONE OF THE SPONSORS OF THE ANNUAL RUN TO FEED THE HUNGRY WHICH RAISES FUNDS FOR THE SACRAMENTO FOOD BANK; THIS IS A WAY FOR SFCU TO GIVE BACK TO THE COMMUNITY. X 1 1 X X X 0 1 0 JAMES P JORDAN III PRESIDENT & CEO 583149 0 0 0 4694402 0 407361 0 25641 0 5710553 0 1772320 0 TIMOTHY MARRIOTT EXECUTIVE VP/CFO 328952 0 14285 0 8538 0 246899 0 23603 0 622277 0 0 0 ERIC LINDSTROM SVP INFORMATION SERVICES/CIO 206628 0 11178 0 3017 0 40202 0 19195 0 280220 0 0 0 STEVE LANGLEY SVP MEMBER SERVICES 180410 0 1693 0 8868 0 0 0 22420 0 213391 0 0 0 ROY WORLEY VP MARKETING 161891 0 9361 0 7674 0 12462 0 22036 0 213424 0 0 0 LISA MACKAY VP HUMAN RESOURCES & COMPLIANCE 167123 0 8922 0 1234 0 11968 0 10135 0 199382 0 0 0 TOM KUANG VP TECHNOLOGY/CTO 165725 0 8004 0 3413 0 12081 0 6904 0 196127 0 0 0 MELINDA BROWNING LOAN COUNSELOR 14663 0 3947 0 196368 0 14078 0 19284 0 248340 0 0 0 LINDSAY SHORES LOAN COUNSELOR 14871 0 3428 0 162873 0 12892 0 19837 0 213901 0 0 0 PART I, LINE 1A THE CREDIT UNION REIMBURSES BOTH THE DIRECTORS AND THEIR SPOUSES FOR THE COSTS INCURRED IN ATTENDING CREDIT UNION RELATED CONFERENCES/MEETINGS. THE SPOUSAL REIMBURSEMENT, IF IT IS IN EXCESS OF $600, IS INCLUDED ON A 1099 FILED IN THE NAME OF THE SPOUSE. PART I, LINE 4B THE CREDIT UNION HAS A NONQUALIFIED DEFERRED COMPENSATION PLAN IN PLACE FOR CERTAIN EXECUTIVES AS DESCRIBED IN SECTION 457(F). THE PAYOUT CALCULATIONS ARE PERFORMED UPON RETIREMENT AND BASED ON COMPENSATORY AMOUNTS CALCULATED PER A FORMULA APPROACH TAKING INTO ACCOUNT THE PRIOR FIVE YEARS COMPENSATION AMOUNTS. AMOUNTS ACCRUED UNDER SUCH PLAN ARE PROPERLY REFLECTED IN PART VII, COLUMN F AND IN SCHEDULE J, PART II, COLUMN C. ONE PERSON RECEIVED A DISTRIBUTION DURING 2015 AND IT IS CORRECTLY REPORTED IN PT VII, AS REPORTABLE COMPENSATION, AND SCHEDULE J, PART II, COLUMN (B)(III). ADDITIONAL TERMS AND CONDITIONS OF SUCH PLAN ARE AVAILABLE TO THE IRS UPON REQUEST. 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 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 EXECUTIVE COMMITTEE WILL REVIEW THE DRAFT OF THE FORM 990. THE COMPLETED FORM 990 WILL BE PROVIDED TO THE BOARD OF DIRECTORS PRIOR TO FILING. FORM 990, PART VI, SECTION B, LINE 12C THE CREDIT UNION HAS A WRITTEN CONFLICT OF INTEREST POLICY AND AN ANNUAL STATEMENT REGARDING CONFLICT OF INTEREST POLICY ("STATEMENT"). THE STATEMENT REQUIRES THE SIGNATORY TO ANNUALLY AFFIRM THAT HE/SHE HAS RECEIVED, READ, AND UNDERSTOOD THE CONFLICT OF INTEREST POLICY AND AGREES TO COMPLY WITH THE POLICY. THE STATEMENT ASKS A SERIES OF QUESTIONS DESIGNED TO REVEAL ANY POTENTIAL CONFLICTS OF INTEREST. THE SIGNATORY MUST EXPLAIN ANY POTENTIAL CONFLICTS OF INTEREST ON THE STATEMENT. THE MEMBERS OF THE BOARD OF DIRECTORS AND THE SUPERVISORY COMMITTEE, AS WELL AS THE CEO AND ALL OF THE VICE PRESIDENTS, MUST SIGN THE STATEMENT EACH YEAR. THE EXECUTIVE DEPARTMENT MAINTAINS A RECURRING EVENTS LIST TO ENSURE THAT THE ANNUAL STATEMENT REGARDING CONFLICT OF INTEREST POLICY IS SIGNED EVERY YEAR BY THE PERTINENT INDIVIDUALS. FORM 990, PART VI, SECTION B, LINE 15 PRESIDENT/CEO: THE EXECUTIVE COMMITTEE IS RESPONSIBLE FOR PREPARING THE CEO'S ANNUAL REVIEW, WHICH IS SUBMITTED ANNUALLY TO THE BOARD OF DIRECTORS FOR THEIR APPROVAL. ANNUALLY, THE EXECUTIVE COMMITTEE PRESENTS TO THE BOARD OF DIRECTORS A RECOMMENDATION FOR THE PRESIDENT/CEO'S MERIT RATING. THIS RECOMMENDATION WILL BE BASED ON THE PRESIDENT/CEO'S ANNUAL RESULTS AND WILL BE STATED IN TERMS OF THE STANDARD SCHOOLS' PERFORMANCE CATEGORIES. IN CONJUNCTION WITH THE MERIT RATING, THE EXECUTIVE COMMITTEE RECOMMENDS A SALARY INCREASE BASED ON THE CURRENT SCHOOLS' MERIT RATING CHART. THE BOARD OF DIRECTORS WILL ESTABLISH THE AMOUNT OF THE SALARY INCREASE (IF ANY) THAT WILL BE GRANTED TO THE PRESIDENT/CEO. THE MIDPOINT SALARY FOR THE PRESIDENT/CEO IS ESTABLISHED ANNUALLY BY CONSULTING THE CALIFORNIA AND NEVADA CREDIT UNION'S BURNS-FAZZI, BROCK AND ASSOCIATES (BFB) SUMMIT ROUND TABLE (SRT) EXECUTIVE COMPENSATION SURVEY AND THE REWARDS STRATEGIES GROUP'S (RSG) COMPENSATION SURVEY OF BILLION DOLLAR CREDIT UNION CEOS. THE SRT EXECUTIVE COMPENSATION SURVEY IS AN ANNUAL SURVEY OF SRT CREDIT UNION MEMBERS. THE LEAGUE CONDUCTS THIS SURVEY AS A SERVICE TO SRT CREDIT UNIONS, PROVIDING THEM WITH COMPARATIVE PEER DATA FOR EXECUTIVE COMPENSATION, BENEFIT, AND DEMOGRAPHIC INFORMATION. BASED ON THE RESULTS OF THESE SURVEYS, THE EXECUTIVE COMMITTEE WILL RECOMMEND A MIDPOINT ADJUSTMENT TO THE BOARD OF DIRECTORS, IF NECESSARY. THE SCHOOLS' SURVEY RANGE WILL EXTEND FROM 80% OF THE ESTABLISHED MIDPOINT TO 120% OF THAT MIDPOINT. OTHER OFFICERS AND KEY EMPLOYEES: THE PRESIDENT/CEO COMPLETES ANNUAL REVIEWS OF THE OTHER OFFICERS AND KEY EMPLOYEES. THE ANNUAL RESULTS OF THESE EMPLOYEES ARE EVALUATED IN TERMS OF THE STANDARD SCHOOLS' PERFORMANCE CATEGORIES. THE MIDPOINT SALARY FOR THESE EMPLOYEES IS ESTABLISHED ANNUALLY BY CONSULTING THE CALIFORNIA AND NEVADA CREDIT UNION'S BURNS-FAZZI, BROCK AND ASSOCIATES (BFB) SUMMIT ROUND TABLE (SRT) EXECUTIVE COMPENSATION SURVEY. BASED ON THE RESULTS OF THIS SURVEY, THE EXECUTIVE COMMITTEE WILL RECOMMEND A MIDPOINT ADJUSTMENT TO THE BOARD OF DIRECTORS, IF NECESSARY. THIS MIDPOINT IS APPROXIMATELY EQUAL TO THE MEDIAN BASE SALARY FOR EACH EMPLOYEE'S RESPECTIVE POSITION AS SHOWN IN THE ABOVE MENTIONED SURVEY. THE SCHOOLS' SALARY RANGE WILL EXTEND FROM 80% OF THE ESTABLISHED MIDPOINT TO 120% OF THAT MIDPOINT. FORM 990, PART VI, SECTION C, LINE 19 CREDIT UNION GOVERNING DOCUMENTS AND CONFLICT OF INTEREST POLICIES ARE AVAILABLE TO THE PUBLIC UPON REQUEST FOR THE SAME PERIOD OF DISCLOSURE AS SET FORTH IN SECTION 6104(D). THE CREDIT UNION ALSO PUBLISHES A BROCHURE WHICH DESCRIBES THE WAY IT CONDUCTS ITS BUSINESS. THE CREDIT UNION'S ANNUAL REPORTS CAN BE VIEWED ON ITS WEBSITE. THE BALANCE SHEET AND INCOME STATEMENT FOR THE MOST RECENTLY COMPLETED MONTH ARE POSTED IN EACH BRANCH. WE FILE A QUARTERLY 5300 REPORT WITH NCUA AND THE CALIFORNIA DEPARTMENT OF BUSINESS OVERSIGHT.