2016-05-12T09:59:11-05:00 2015-12-31 381357951 PLANTE & MORAN PLLC 511 RENAISSANCE DRIVE SUITE 120 ST JOSEPH MI 49085 990 2015-01-01 380855535 OPTION 1 CREDIT UNION OPTI 6162430125 630 32ND STREET SE GRAND RAPIDS MI 49548 STEVEN BUSH CEO 6162430125 2016-05-11 1 KENLEY PENNER CPA P00740260 2699828000 2015 2016-09-27 15:27:22Z STEVEN BUSH 630 32ND STREET SE GRAND RAPIDS MI 49548 41110870 0 1359 X WWW.OPTION1CU.ORG X 1936 MI OPTION 1 CREDIT UNION'S PRIMARY EXEMPT PURPOSE IS TO PROVIDE A VARIETY OF FINANCIAL SERVICES TO ITS MEMBERS. ITS MEMBERS INCLUDE INDIVIDUALS WHO ARE EMPLOYED IN OR RETIRED FROM COMMUNICATIONS RELATED ORGANIZATIONS, THE HEALTH CARE INDUSTRY, DISABLED OR WORK WITH THE DISABLED, AND OTHER SELECT EMPLOYEE GROUPS OR THOSE WHO LIVE OR WORK IN ALLEGAN, BARRY, CLINTON, EATON, INGHAM, KENT, LIVINGSTON, NEWAYGO, OTTAWA OR SHIAWASSEE COUNTIES IN MICHIGAN. 10 10 145 10 53657 -84490 0 0 14039317 14224749 1522734 1432934 0 0 15562051 15657683 0 0 0 0 5968272 6573366 0 0 0 7453427 7246384 13421699 13819750 2140352 1837933 276044059 290045949 232313152 245180022 43730907 44865927 X TO PROVIDE FINANCIAL SERVICES WHILE TREATING MEMBERS WITH DIGNITY AND RESPECT, ACTING AS A GOOD STEWARD OF OUR MEMBERS' ASSETS, VALUING OUR EMPLOYEES AND VOLUNTEERS, MAINTAINING HIGH LEVELS OF INTEGRITY IN EVERYTHING WE DO, AND BEING A LEADER IN COMMUNITY OUTREACH AND BUILDING COMMUNITY RELATIONSHIPS. 0 0 OPTION 1 CREDIT UNION SERVED AND CONTINUES TO SERVE THE FINANCIAL NEEDS OF 28,333 MEMBERS BY OFFERING LOANS, DEPOSITS AND VARIOUS OTHER FINANCIAL PRODUCTS. 0 0 0 0 0 0 0 1 0 1 0 0 1 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 8395 0 1 145 1 1 1 0 0 0 0 0 X 10 10 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 X THOMAS DAVIS 6162430125 630 32ND STREET SE GRAND RAPIDS MI 49548 DAVE FERGUSON DIRECTOR, BOARD CHAIRMAN 1.00 X X 0 0 0 CHARLIE BRENEMAN DIRECTOR, VICE CHAIRMAN 1.00 X X 0 0 0 MICHAEL KUTAS DIRECTOR, BOARD SECRETARY 1.00 X X 0 0 0 DAVID KIDD DIRECTOR, BOARD TREASURER 1.00 X X 0 0 0 PATRICIA ANDREWS DIRECTOR 1.00 X 0 0 0 DEBORAH GINSBERG DIRECTOR 1.00 X 0 0 0 C NANCY FORD DIRECTOR 1.00 X 0 0 0 ROGER FRY DIRECTOR 1.00 X 0 0 0 DAVID HENDERSON DIRECTOR 1.00 X 0 0 0 BRIAN PITTS DIRECTOR 1.00 X 0 0 0 ANDREW J LIST CHIEF EXECUTIVE OFFICER - PART YEAR 40.00 X 630920 0 6130 THOMAS S DAVIS CHIEF FINANCIAL OFFICER 40.00 X 190808 0 14603 STEVEN BUSH CHIEF EXECUTIVE OFFICER - PART YEAR 40.00 X 240719 0 12187 KAREN K WIETZKE EXECUTIVE VICE PRESIDENT - OPERATION 40.00 X 152734 0 11641 THOMAS O BERRY EXECUTIVE VICE PRESIDENT - LENDING 40.00 X 156476 0 5624 JAMES T BIRD MEMBER FINANCIAL SERVICES MANAGER 40.00 X 193760 0 8214 MARSHA CLARK CHIEF INFORMATION OFFICER 40.00 X 110605 0 6197 1676022 0 64596 7 0 1 0 JACK HENRY & ASSOCIATES INC PO BOX 609 MONETT MO 65708 CORE PROCESSING SOFTWARE PROVIDER 289147 OUTFRONT MEDIA PO BOX 33074 NEWARK NJ 07188 ADVERTISING 234600 INTERPHASE OFFICE SYSTEMS 3036 EASTERN AVE GRAND RAPIDS MI 49508 FURNITURE VENDOR 234247 IDSCOM 747 E WHITCOMB AVE MADISON HEIGHTS MI 48071 STATEMENT VENDOR 104598 4 LOAN INTEREST INCOME 522100 9102444 9102444 FEES AND CHARGES 522100 5002705 4949048 53657 SALE OF MORTGAGES 522100 119600 119600 14224749 1291365 1291365 24776420 818336 24747685 705502 28735 112834 141569 141569 15657683 14171092 53657 1432934 1421841 3607420 590675 522329 431101 44349 133092 7335 627305 258469 770061 846461 21444 209471 32448 609543 65270 CREDIT AND DEBIT CARD F 1574895 INTEREST PAID ON MEMBER 732516 MEMBER SERVICES 367944 MISCELLANEOUS 295721 650060 13819750 4323996 3768577 9134414 11842998 178657568 198780150 322680 467635 15285527 7537146 7489008 7748381 59426966 49075498 16689427 18362710 276044059 290045949 3457041 2117630 1343170 1534605 3000000 3000000 224512941 238527787 232313152 245180022 X 0 0 0 0 43730907 44865927 43730907 44865927 276044059 290045949 X 1837933 193468 -896381 X X 0 1 X 1 0 0 1 X 962988 962988 7932536 2508834 5423702 6390003 5028312 1361691 7748381 FHLB STOCK 827400 NCUSIF DEPOSIT 2264181 OTHER ASSETS 572337 CENCORP PERPETUAL CONTRIBUTED CAPITAL 600000 CREDIT UNION OWNED LIFE INSURANCE POLICY 6683761 ACCRUED INTEREST RECEIVABLE 647065 DEFERRED COMPENSATION ASSET 6767966 18362710 MEMBERS' SHARES AND SAVINGS 238527787 238527787 X 15657683 0 15657683 0 15657683 13819750 0 13819750 0 13819750 PART IV, LINE 2B: THE CREDIT UNION HOLDS AMOUNTS IN ESCROW ACCOUNTS FOR REAL ESTATE TAXES AND HOME INSURANCE RELATED TO HOME MORTGAGE LOANS. PART X, LINE 2: THE CREDIT UNION IS EXEMPT, BY STATUTE, FROM FEDERAL AND STATE INCOME TAXES. HOWEVER, THE CREDIT UNION MAY BE SUBJECT TO UNRELATED BUSINESS INCOME TAX. ACCOUNTING PRINCIPLES GENERALLY ACCEPTED IN THE UNITED STATES OF AMERICA REQUIRE MANAGEMENT TO EVALUATE TAX POSITIONS TAKEN BY THE CREDIT UNION AND RECOGNIZE A TAX LIABILITY IF THE CREDIT UNION HAS TAKEN AN UNCERTAIN POSITION THAT MORE LIKELY THAN NOT WOULD NOT BE SUSTAINED UPON EXAMINATION BY THE IRS OR OTHER APPLICABLE TAXING AUTHORITIES. MANAGEMENT HAS ANALYZED THE TAX POSITIONS TAKEN BY THE CREDIT UNION AND HAS CONCLUDED THAT AS OF DECEMBER 31, 2015 AND 2014, THERE ARE NO UNCERTAIN POSITIONS TAKEN OR EXPECTED TO BE TAKEN THAT WOULD REQUIRE RECOGNITION OF A LIABILITY OR DISCLOSURE IN THE FINANCIAL STATEMENTS. THE CREDIT UNION IS SUBJECT TO ROUTINE AUDITS BY TAXING JURISDICTIONS; HOWEVER, THERE ARE CURRENTLY NO AUDITS FOR ANY TAX PERIODS IN PROGRESS. MANAGEMENT BELIEVES IT IS NO LONGER SUBJECT TO INCOME TAX EXAMINATIONS FOR YEARS PRIOR TO 2012. X 1 1 X X X X X 0 1 0 ANDREW J LIST CHIEF EXECUTIVE OFFICER - PART YEAR 37397 0 5496 0 588027 0 408 0 5722 0 637050 0 0 0 THOMAS S DAVIS CHIEF FINANCIAL OFFICER 126621 0 2381 0 61806 0 3880 0 10723 0 205411 0 0 0 STEVEN BUSH CHIEF EXECUTIVE OFFICER - PART YEAR 233654 0 2250 0 4815 0 0 0 12187 0 252906 0 0 0 KAREN K WIETZKE EXECUTIVE VICE PRESIDENT - OPERATION 147988 0 2869 0 1877 0 4582 0 7059 0 164375 0 0 0 THOMAS O BERRY EXECUTIVE VICE PRESIDENT - LENDING 89062 0 2611 0 64803 0 2799 0 2825 0 162100 0 0 0 JAMES T BIRD MEMBER FINANCIAL SERVICES MANAGER 61523 0 3713 0 128524 0 5813 0 2401 0 201974 0 0 0 PART I, LINE 1A THE CREDIT UNION CEO'S SPOUSE ACCOMPANIES HIM OUT OF TOWN TO CONFERENCES AND THE CREDIT UNION REIMBURSES THE CEO FOR SUCH EXPENSES BASED ON THE EXPENDITURE SUPPORT PROVIDED. ANY AMOUNTS REIMBURSED ARE ADDED TO THE CEO'S WAGES AS ADDITIONAL TAXABLE COMPENSATION. PART I, LINE 3 THE CREDIT UNION UTILIZES AN INDEPENDENT COMPENSATION CONSULTANT IN DETERMINING WAGES FOR ALL OF THE POSITIONS WITHIN THE ORGANIZATION. THE INFORMATION PROVIDED BY THE CONSULTANT IS USED TO ESTABLISH PAY RANGES FOR NEW POSITIONS AS WELL AS ADJUST ESTABLISHED PAY RANGES FOR CHANGES IN THE MARKET. PART I, LINE 4B THE CREDIT UNION EXECUTIVES PARTICIPATE IN 457F AND 457B PLANS. ANDREW LIST, JAMES BIRD, KAREN WIETZKE, THOMAS DAVIS, AND THOMAS BERRY ARE THE PARTICIPANTS IN THE PLANS. FORM 990, PART VI, SECTION A, LINE 6 THE CREDIT UNION CURRENTLY HAS 28,333 MEMBERS. FORM 990, PART VI, SECTION A, LINE 7A THE MEMBERS OF THE CREDIT UNION ARE RESPONSIBLE FOR ELECTING THE BOARD OF DIRECTORS. FORM 990, PART VI, SECTION A, LINE 7B THE MEMBERS OF THE CREDIT UNION MUST APPROVE MERGERS INTO ANOTHER CREDIT UNION. ALL OTHER DECISIONS MAY BE MADE BY THE BOARD OF DIRECTORS. FORM 990, PART VI, SECTION B, LINE 11 THE CEO AND CFO OF THE CREDIT UNION REVIEW THE 990 DRAFT BEFORE FILING. ADDITIONALLY, AN ELECTRONIC COPY OF THE 990 DRAFT IS SENT TO THE BOARD OF DIRECTORS FOR THEIR REVIEW VIA EMAIL BEFORE THE RETURN IS FILED. ALL OF THE BOARD MEMBERS ARE GIVEN THE OPPORTUNITY TO CONTACT THE CREDIT UNION'S MANAGEMENT WITH ANY QUESTIONS OR CONCERNS THEY HAD REGARDING THE 990 RETURN. FORM 990, PART VI, SECTION B, LINE 12C THE CREDIT UNION MONITORS AND ENFORCES THE CONFLICT OF INTEREST POLICY. IF THERE IS A CONFLICT OF INTEREST, THE DIRECTOR WILL ABSTAIN FROM VOTING ON THE ISSUE AT HAND. FORM 990, PART VI, SECTION B, LINE 15 SALARIES FOR THE CEO, OFFICERS, AND KEY EMPLOYEES ARE COMPARED TO THOSE REPORTED IN VARIOUS PUBLICATIONS FOR SIMILAR ORGANIZATIONS IN THE INDUSTRY AND MAY BE ADJUSTED FOR AN EMPLOYEE'S PERFORMANCE. COMPENSATION FOR THE CEO, OFFICERS, AND KEY EMPLOYEES ARE THEN DETERMINED, REVIEWED BY AN INDEPENDENT PARTY, AND APPROVED BY THE BOARD OF DIRECTORS. THIS PROCESS WAS LAST UNDERTAKEN IN 2015. FORM 990, PART VI, SECTION C, LINE 19 THE MONTHLY FINANCIAL STATEMENTS OF THE CREDIT UNION ARE POSTED IN THE LOBBY OF EACH BRANCH. OTHER INFORMATION SUCH AS THE GOVERNING DOCUMENTS AND CONFLICT OF INTEREST POLICY ARE AVAILABLE UPON REQUEST. FORM 990, PART XI, LINE 9: CHANGE IN UNREALIZED LOSS ON POST RETIREMENT AND PENSION BENEFITS -896,381. FORM 990, PART XII, LINE 2C: THE BOARD OF DIRECTORS HAS ESTABLISHED THE AUDIT COMMITTEE, WHICH IS RESPONSIBLE FOR THE OVERSIGHT OF THE AUDIT REVIEW AND SELECTION OF AN INDEPENDENT AUDITOR. THE AUDIT COMMITTEE APPROVES AN INDEPENDENT AUDITOR EACH YEAR AND MEETS TO REVIEW THE INDEPENDENT AUDITOR'S REPORT AFTER THE AUDIT IS COMPLETE. THE PROCESS HAS NOT CHANGED FROM THE PRIOR YEAR. FORM 990, PART X, LINE 5 AND SCHEDULE L: SCHEDULE L IS NOT REQUIRED FOR LOANS RECEIVABLE BALANCES ON FORM 990, PART X, LINE 5 IF THE LOANS ARE MADE BY THE CREDIT UNION TO THE DIRECTORS, OFFICERS, AND KEY EMPLOYEES ON THE SAME TERMS OFFERED TO OTHER MEMBERS OF THE CREDIT UNION. THEREFORE, THE CREDIT UNION HAS INCLUDED APPROXIMATELY $2,431,000 AND $2,851,000 OF RECEIVABLES FROM CURRENT OFFICERS, DIRECTORS, TRUSTEES, KEY EMPLOYEES, AND HIGHEST COMPENSATED EMPLOYEES FOR 2015 AND 2014, RESPECTIVELY, WITHIN FORM 990, PART X, LINE 7.