2015-11-12T09:04:24-06:00 2014-12-31 410746749 CLIFTONLARSONALLEN LLP PO BOX 217 AUSTIN MN 55912 990 2014-01-01 390827305 MARINE CREDIT UNION MARI 6087911543 811 MONITOR STREET LA CROSSE WI 54601 GARLAND KOCH CFO 6087911543 2015-11-11 1 KAREN GRIES P00078514 5074347000 2014 2016-02-25 16:41:14Z SHAWN HANSON 811 MONITOR STREET LA CROSSE WI 54601 42764313 0 2157 X WWW.MARINECU.COM X CU 1949 WI WE WILL SERVE MORE OF THE UNDERSERVED WITH PRODUCTS, SERVICE, TIME AND GIVING. WE WILL INCREASE THE NUMBER AND PERCENTAGE OF CUSTOMERS AVAILING THEMSELVES OF A VARIETY OF HIGH QUALITY SERVICES. 7 7 386 6 1147353 -497726 0 0 36379203 39271150 1974956 2766286 11305 109720 38365464 42147156 0 0 1390069 1209004 18613803 19332756 0 0 0 13314471 13470033 33318343 34011793 5047121 8135363 474385492 534927607 428431653 479898907 45953839 55028700 WE WILL SERVE MORE OF THE UNDERSERVED WITH PRODUCTS, SERVICE, TIME AND GIVING. WE WILL INCREASE THE NUMBER AND PERCENTAGE OF CUSTOMERS AVAILING THEMSEVLES OF A VARIETY OF HIGH QUALITY SERVICES. 0 0 DEPOSIT TAKING - MARINE CREDIT UNION ACTS AS A FINANCIAL INTERMEDIARY IN EACH OF THE COMMUNITIES IT SERVES. EACH OF OUR 51,293 MEMBERS HAS AT LEAST ONE SAVINGS ACCOUNT AND THESE MEMBERS HAVE OVER 36,481 CHECKING ACCOUNTS WITH MARINE. WE OFTEN PROVIDE THESE SERVICES AT A LOWER COST THAN WHAT WOULD OTHERWISE BE AVAILABLE. WE PROTECT OVER $344 MILLION OF INSURED FUNDS ON BEHALF OF OUR DEPOSITORS. CONSUMER LENDING - MARINE CREDIT UNION IS A FULL SERVICE CONSUMER LENDING INSTITUTION. IN 2014 WE GRANTED OVER 10,903 CONSUMER LOANS FOR A TOTAL OF OVER $120 MILLION. THESE LOANS ARE USED BY OUR BORROWERS TO CONSOLIDATE DEBT, PURCHASE GOODS SUCH AS AUTOMOBILES AND RECREATIONAL VEHICLES AND TO FINANCE CONTINUING EDUCATION EXPENSES. THE TOTAL CONSUMER LOAN PORTFOLIO IS GREATER THAN $167 MILLION. MORTGAGE LENDING - MARINE CREDIT UNION IS AN INTEGRAL PART OF THE COMMUNITIES WE SERVE BY PROVIDING OVER 559 LOANS TOTALING OVER $52 MILLION. THESE LOANS ARE USED BY BORROWERS TO PURCHASE, REFINANCE OR IMPROVE THEIR HOMES. CURRENT MORTGAGE LOANS OUTSTANDING EXCEED $209 MILLION. 0 0 0 0 0 0 0 0 0 1 0 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 1 1 1 1 0 1 10743 0 386 1 1 1 0 0 0 0 0 X 7 7 0 0 0 0 1 1 1 1 1 0 0 0 1 0 0 1 1 1 1 0 X GARLAND KOCH 6087911543 811 MONITOR STREET LA CROSSE WI 54601 RICHARD SWANTZ CHAIRMAN 10.00 X X 12000 0 0 CURT GREENO VICE CHAIRMAN 1.00 X X 0 0 0 ROBERT WOLF TREASURER 1.00 X X 0 0 0 ROBERT CARNEY SECRETARY 1.00 X X 0 0 0 DIANNE MORRISSON DIRECTOR 1.00 X 0 0 0 STEVE ROSS DIRECTOR 1.00 X 0 0 0 TERRY WITZKE DIRECTOR 1.00 X 0 0 0 SHAWN HANSON PRESIDENT/CEO 40.00 X 397426 0 27427 GARLAND KOCH CFO 40.00 X 350576 0 18243 TIM CRUCIANI EXECUTIVE VICE PRESIDENT 40.00 X 260403 0 27912 ADAM KEER CHIEF OPERATING OFFICER 40.00 X 401163 0 26655 PHILIP MEIRICK MORTGAGE LENDING 0.00 40.00 X 0 190165 36692 WILLIAM SCHIRMER CHIEF HUMAN RESOURCE OFFICER 40.00 X 161696 0 27546 TROY MOEN VICE PRESIDENT OPERATIONS 40.00 X 156123 0 31750 JOHN GARTEN CLS PRESIDENT 0.00 40.00 X 0 146154 34944 LISA DEML SR VP ADMINISTRATION 40.00 X 136651 0 25788 KENNETH DOWNS VP OF IT 40.00 X 128666 0 18918 MICHAEL SMITH DISTRICT MANAGER-MILWAUKEE 40.00 X 124991 0 1598 KENNETH BROSSMAN DISTRICT MANAGER-LA CROSSE 40.00 X 121749 0 33733 2251444 336319 311206 18 0 1 0 MDT 30230 ORCHARD LAKE ROAD FARMINGTON HILLS MI 48334 CORE PROVIDER SERVICE BUREAU 1014422 FISERV 75 REMITTANCE DRIVE SUITE 6969 CHICAGO IL 606866969 MAINTENANCE ON CUBE & PROLOGUE 340239 TRANSUNION PO BOX 99506 CHICAGO IL 606939506 APPRAISALS 198949 QUALITY RECOVERY PO BOX 211 SUAMICO WI 54173 REPOSSESSIONS 131287 VANDE ZANDE AND KAUFMAN 408 EAST MAIN STREET PO BOX 430 WAUPUN WI 53963 LEGAL SERVICES 101982 10 LOAN INTEREST 522100 25699679 25699679 FEE INCOME 522100 13279868 12182701 1097167 OTHER OPERATING INCOME 522100 291603 291603 39271150 220245 220245 1635960 1527238 390000 227157 1245960 1300081 2546041 2546041 K-1 - MARINE INSURANCE SERVICES 900099 109720 59534 50186 109720 42147156 38233517 1147353 2766286 1209004 2158980 13735867 326678 1871159 1240072 104416 70588 2491041 268540 1868539 1466744 373050 426583 1007886 PROVISION FOR LOAN LOSS 2692803 MISCELLANEOUS OPERATING 1626615 LOAN SERVICING EXPENSE 1011011 MEMBER INSURANCE EXPENS 62217 34011793 68545766 77758299 6296271 5960271 3400000 7000000 348495341 391985866 19441161 25564055 30799501 15327653 15566704 15471848 4230714 4167455 8409535 7019813 474385492 534927607 6872594 5109493 69704586 124327601 351854473 350461813 428431653 479898907 X 0 0 0 0 45953839 55028700 45953839 55028700 474385492 534927607 X 8135363 939498 X 0 1 X 1 0 3341973 3341973 17052479 6270425 10782054 279223 5270 273953 10096898 9051958 1044940 28928 28928 15471848 SHARE DRAFTS 72411015 REGULAR SHARES 101469379 MONEY MARKET SHARES 97249441 IRA/KEOGH ACCOUNT 4759891 SHARE CERTIFICATES 74572087 350461813 X PART X, LINE 2: THE CREDIT UNION IS EXEMPT, UNDER IRC 501(C)(14), FROM FEDERAL AND STATE INCOME TAXES. CERTAIN PRODUCTS AND SERVICES PROVIDED BY SELECT STATE CHARTERED CREDIT UNIONS HAVE BEEN DEEMED BY THE INTERNAL REVENUE SERVICE (IRS), IN TECHNICAL ADVICE MEMORANDUMS (TAMS) RELEASED IN 2007, TO BE UNRELATED TO THE SPECIFIC ENTITY'S EXEMPT PURPOSE. AS PRESENTED IN THE TECHNICAL ADVICE MEMORANDUMS THE NET TAXABLE INCOME FROM THESE PRODUCTS AND SERVICES WOULD BE SUBJECT TO INCOME TAXES. CREDIT UNIONS HAVE LITIGATED AGAINST THE IRS POSITIONS NOTED IN THE TAMS AND HAVE BEEN SUCCESSFUL IN HAVING COURTS DECLARE IN 2009 AND 2010 THAT REVENUE FROM INSURANCE PRODUCTS SOLD TO MEMBERS, HELPING THEM PROTECT THEIR FINANCIAL WELLBEING, QUALIFIES AS EXEMPT PURPOSE INCOME, CONTRARY TO THE IRS POSITION IN THE TAMS. THE CREDIT UNION HAS FILED TAX RETURNS FOR CALENDAR YEARS 2013 AND 2012 FOR ACTIVITIES THEY HAVE DEEMED TAXABLE AND HAS A NET OPERATING LOSS CARRYFORWARD AS OF THE 2013 CALENDAR YEAR. THE TAXING AUTHORITIES HAVE THE ABILITY TO ASSESS TAXES, PENALTIES AND INTEREST FOR ANY YEARS FOR WHICH NO TAX RETURN WAS FILED. IN THE OPINION OF MANAGEMENT, ANY LIABILITY RESULTING FROM TAXING AUTHORITIES IMPOSING INCOME TAXES ON THE NET TAXABLE INCOME FROM ACTIVITIES POTENTIALLY DEEMED TO BE UNRELATED TO THE CREDIT UNION'S EXEMPT PURPOSE IS NOT EXPECTED TO HAVE A MATERIAL EFFECT ON THE CREDIT UNION'S FINANCIAL POSITION OR RESULTS OF OPERATIONS. THE CREDIT UNION EVALUATED ITS TAX POSITIONS AND DETERMINED NO UNCERTAIN TAX POSITIONS EXIST AS OF DECEMBER 31, 2014 AND 2013. THE CREDIT UNION'S 2011 AND SUBSEQUENT TAX YEARS ARE OPEN FOR EXAMINATION BY FEDERAL AND STATE TAXING AUTHORITIES. EARNINGS AND LOSSES FROM THE CUSO, ORGANIZED AS AN LLC, FLOW AT THE ENTITY LEVEL THROUGH TO THE CREDIT UNION AND, THEREFORE, ARE NOT SUBJECT TO FEDERAL AND STATE INCOME TAXES. X 0 0 X X X 0 0 0 SHAWN HANSON PRESIDENT/CEO 318771 0 63375 0 15280 0 6555 0 20872 0 424853 0 0 0 GARLAND KOCH CFO 235350 0 69000 0 46226 0 11229 0 7014 0 368819 0 0 0 TIM CRUCIANI EXECUTIVE VICE PRESIDENT 197104 0 55500 0 7799 0 9993 0 17919 0 288315 0 0 0 ADAM KEER CHIEF OPERATING OFFICER 168069 0 230000 0 3094 0 7254 0 19401 0 427818 0 0 0 PHILIP MEIRICK MORTGAGE LENDING 0 76685 0 95000 0 18480 0 8190 0 28502 0 226857 0 0 WILLIAM SCHIRMER CHIEF HUMAN RESOURCE OFFICER 121721 0 36000 0 3975 0 3862 0 23684 0 189242 0 0 0 TROY MOEN VICE PRESIDENT OPERATIONS 155628 0 0 0 495 0 8250 0 23500 0 187873 0 0 0 JOHN GARTEN CLS PRESIDENT 0 142525 0 0 0 3629 0 7600 0 27344 0 181098 0 0 LISA DEML SR VP ADMINISTRATION 103872 0 30750 0 2029 0 6870 0 18918 0 162439 0 0 0 KENNETH BROSSMAN DISTRICT MANAGER-LA CROSSE 96951 0 23750 0 1048 0 5160 0 28573 0 155482 0 0 0 PART I, LINE 1A SHAWN HANSON - CLUB DUES - $1,971 - INCLUDED IN TAXABLE COMPENSATION SHAWN L HANSON PRESIDENT/CEO DEFERRED COMPENSATION PROGRAM TO PROMOTE EMPLOYEE RETENTION X 3400000 3400000 0 1 1 WILLIAM SCHIRMER CHIEF HUMAN RESOURCES OFFICER DEFERRED COMPENSATION PROGRAM TO PROMOTE EMPLOYEE RETENTION X 2200000 2200000 0 1 1 ADAM KEER CHIEF OPERATING OFFICER DEFERRED COMPENSATION PROGRAM TO PROMOTE EMPLOYEE RETENTION X 1400000 1400000 0 1 1 7000000 FORM 990, PART VI, SECTION A, LINE 6 THE ORGANIZATION CONSISTS OF MEMBERS. TO BE A MEMBER, ONE MUST HAVE A SHARE/SAVINGS ACCOUNT. EACH MEMBER HAS ONE VOTE TO ELECT THE GOVERNING BODY (BOARD OF DIRECTORS). PARTICIPATION IN THIS CREDIT UNION IS LIMITED TO THOSE WHO QUALIFY FOR MEMBERSHIP AS DEFINED IN THE CREDIT UNION'S CHARTER AND BYLAWS. THIS GENERALLY CONSISTS OF BROWN, CALUMET, CHIPPEWA, COLUMBIA, CRAWFORD, DODGE, DUNN, EAU CLAIRE, GRANT, GREEN LAKE, FOND DU LAC, LA CROSSE, MANITOWOC, MARQUETTE, MILWAUKEE, OUTAGAMIE, OZAUKEE, SHEBOYGAN, VERNON, WASHINGTON, WAUKESHA, WAUSHARA AND WINNEBAGO COUNTIES IN WISCONSIN. ALLAMAKEE, CLAYTON, FAYETTE, AND WINNESHIEK COUNTIES IN IOWA, AND FILLMORE, HOUSTON, OLMSTED, AND WINONA COUNTIES IN MINNESOTA AND OTHER SELECT EMPLOYEE GROUPS WHO HAVE PETITIONED FOR MEMBERSHIP. IN ADDITION TO A REGULARLY QUALIFIED MEMBER, THE SPOUSE OF A MEMBER, THE BLOOD OR ADOPTIVE RELATIVES OF EITHER THEM OR THEIR SPOUSES MAY BE MEMBERS. FORM 990, PART VI, SECTION A, LINE 7A THE BOARD OF DIRECTORS ARE ELECTED BY THE MEMBERSHIP UTILIZING THEIR ONE VOTE PER MEMBER. FORM 990, PART VI, SECTION A, LINE 7B THE MEMBERS WOULD NEED TO APPROVE DECISIONS SUCH AS CHANGE OF NAME OR A MERGER DECISION. FORM 990, PART VI, SECTION B, LINE 11 THE FORM 990 IS PREPARED BY A PUBLIC ACCOUNTING FIRM BASED ON INFORMATION SUBMITTED BY THE CREDIT UNION. AN INITIAL REVIEW OF THE FORM 990 IS PERFORMED BY THE CFO. ANY REVISIONS ARE MADE BASED ON THE INPUT OF THE CFO AND PRESENTED TO THE CEO FOR REVIEW PRIOR TO THE RETURN BEING FILED. FORM 990, PART VI, SECTION B, LINE 12 OFFICERS AND KEY EMPLOYEES ARE REQUIRED TO VERIFY THE EXISTENCE OF ANY CONFLICTS OF INTEREST ANNUALLY. CURRENTLY WE DO NOT MONITOR ANY FURTHER FOR DIRECTORS. FORM 990, PART VI, SECTION B, LINE 15 CEO: THE BOARD OF DIRECTORS APPROVES COMPENSATION AS RECOMMENDED BY THE COMPENSATION COMMITTEE. BASE COMPENSATION IS TARGETED TO THAT OF PEER FINANCIAL INSTITUTIONS OF SIMILAR SIZE AND COMPLEXITY. INCENTIVE PAY AND BASE PAY INCREASES OR DECREASES ARE DRIVEN BY THE PERFORMANCE OF THE EXECUTIVE VERSUS PRE-DETERMINED GOALS AND OBJECTIVES WHICH ARE ALIGNED WITH THE MISSION AND STRATEGY OF THE ORGANIZATION. THE CEO IS GIVEN QUARTERLY AND ANNUAL PERFORMANCE EVALUATIONS WHICH FACTOR INTO COMPENSATION DISCUSSIONS. OTHER OFFICERS AND KEY EMPLOYEES: BASE COMPENSATION IS DRIVEN BY MARKETPLACE TRENDS AND OTHER COMPETITIVE FACTORS. INCENTIVE PAY AND BASE PAY INCREASES ARE DRIVEN BY THE PERFORMANCE OF EACH EMPLOYEE VERSUS PRE-DETERMINED GOALS AND OBJECTIVES WHICH ARE ALIGNED WITH THE MISSION AND STRATEGY OF THE ORGANIZATION. ALL EMPLOYEES ARE EVALUATED AGAINST OBJECTIVE AND SUBJECTIVE CRITERIA ON A MONTHLY AND ANNUAL BASIS. FORM 990, PART VI, SECTION C, LINE 19 BYLAWS ARE AVAILABLE UPON REQUEST AND ANNUAL FINANCIAL STATEMENTS ARE POSTED ON THE ORGANIZATION'S WEBSITE. FORM 990, PART XI, LINE 9: EQUITY ACQUIRED BY ACQUISITION 1,041,336. EQUITY ATTRIBUTABLE TO NON-CONTROLLING INTEREST EQUITY ATTRIBUTABLE TO AOCI 7,882. K- 1 INCOME/LOSS - MARINE INSURANCE SERVICES, LLC -109,720. K- 1 INCOME/LOSS - CU MORTGAGE INVESTORS, LLC ADVANTAGE FINANCIAL SERVICES LLC 127 WEST AVENUE NORTH LA CROSSE WI 54601 800018187 HOLDING COMPANY WI 515000 7543183 MARINE CREDIT UNION CONSUMER LOAN SERVICES LLC 811 MONITOR STREET LA CROSSE WI 54601 270191461 MORTGAGE UNDERWRITING AND SERVICING WI 3843741 12593121 ADVANTAGE FINANCIAL SERVICE MARINE INSURANCE SERVICES 811 MONITOR STREET LA CROSSE WI 54603 263295091 INSURANCE AGENCY WI ADVANTAGE FINANCIAL SERVICES UNRELATED 843577 340010 0 1 0.95000 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 MARINE INSURANCE SERVICES A 14400 FMV