2015-11-16T10:18:41-06:00 2014-12-31 910189318 MOSS ADAMS LLP 101 SECOND STREET SUITE 900 SAN FRANCISCO CA 94105 990 2014-01-01 942600376 KEYPOINT CREDIT UNION KEYP 4087314100 2805 BOWERS AVENUE SANTA CLARA CA 95051 TIMOTHY GREEN CFO 4087314100 2015-11-06 1 WENDY CAMPOS P00448102 4159561500 2014 2016-04-25 22:37:26Z T BRADFORD CANFIELD 2805 BOWERS AVENUE SANTA CLARA CA 95051 39737298 0 X WWW.KPCU.COM X 1979 CA A COOPERATIVE, ORGANIZED FOR THE PURPOSE OF PROMOTING THRIFT AND SAVINGS AMONG ITS MEMBERS. 9 9 240 12 768029 -339734 0 0 31398110 36797204 1430088 2854314 1459449 51608 34287647 39703126 16630 5000 0 0 14752112 17226625 0 0 0 15211266 16107101 29980008 33338726 4307639 6364400 865890206 939225533 796717327 860923932 69172879 78301601 X KEYPOINT CREDIT UNION IS A COOPERATIVE, ORGANIZED FOR THE PURPOSE OF PROMOTING THRIFT AND SAVINGS AMONG ITS MEMBERS, CREATING A SOURCE OF CREDIT FOR THEM AT COMPETITIVE RATES OF INTEREST, AND PROVIDING AN OPPORTUNITY FOR THEM TO USE AND CONTROL THEIR OWN MONEY ON A DEMOCRATIC BASIS IN ORDER TO IMPROVE THEIR ECONOMIC AND SOCIAL CONDITIONS. AS A COOPERATIVE, KEYPOINT CREDIT UNION CONDUCTS ITS BUSINESS FOR THE MUTUAL BENEFIT AND GENERAL WELFARE OF ITS MEMBERS WITH THE EARNINGS, SAVINGS, BENEFIT, OR SERVICE OF THE CREDIT UNION BEING DISTRIBUTED TO ITS MEMBERS AS PATRONS. 0 0 ACCOMPLISHMENT OF EXCELLENT LOAN SERVICES TO MEMBERS AND LOAN PORTFOLIO GROWTH THROUGH THE ORIGINATION OF CONSUMER AND MORTGAGE LOANS. ACCOMPLISHMENT OF TARGET GOALS IN MEMBER GROWTH (ACQUISITION OF NEW MEMBERS). MEMBER SATISFACTION IN CONNECTION WITH SERVICES PERTAINING TO CHECKING/SAVINGS ACCOUNTS, ATTRACTIVE CD RATES, IRA AND MONEY MARKET ACCOUNTS. 0 0 1 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 0 1 1 0 0 1 11261 0 1 240 1 1 1 0 0 0 0 0 X 9 9 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 CA X TIMOTHY GREEN 4087314118 2805 BOWERS AVE SANTA CLARA CA 95051 ROBER LERNER CHAIRPERSON 5.00 X X 0 0 0 JOHN TOM VICE CHAIRPERSON 5.00 X X 0 0 0 SUZANNE RAKOW BOARD SECRETARY, BOARD TREASURER 5.00 X X 0 0 0 MARY VETRANO BOARD SECRETARY 5.00 X X 0 0 0 KEITH STATTENFIELD BOARD MEMBER 5.00 X 0 0 0 GREGORY EBY BOARD MEMBER 5.00 X 0 0 0 ADAM CORKINS BOARD MEMBER 5.00 X 0 0 0 BALJINDER SANDHU BOARD MEMBER 5.00 X 0 0 0 DINESH BETTADAPUR BOARD MEMBER 5.00 X 0 0 0 BUNNINDER FALAK BOARD MEMBER 5.00 X 0 0 0 TED CANFIELD PRESIDENT/CHIEF EXECUTIVE OFFICER 40.00 0.10 X 466316 0 203453 TIMOTHY GREEN CHIEF FINANCE OFFICER 40.00 X 234519 0 17010 LESLIE JEFFRIES 114-914 CHIEF INFORMATION OFFICER 40.00 X 200661 0 28930 FAYE NABHANI CHIEF LENDING OFFICER 40.00 X 248931 0 27544 SAMUEL TUOHEY CHIEF OPERATING OFFICER 40.00 0.10 X 246130 0 24634 HELEN GRAYS SVP BUSINESS AND COMMUNITY DEVELOPMENT 40.00 X 211457 0 25165 LEEANNE GIBLIN SVP HUMAN RESOURCES 40.00 X 208091 0 13509 STEVEN WEILER SVP COMMERCIAL BANKING 40.00 X 211434 0 16730 MICHAEL IVEZIC VP AUDIT 40.00 X 136512 0 12889 DOUGLAS SCHROCK VP FINANCE 40.00 0.10 X 193313 0 29614 LAWRENCE SCOFFIELD VP CORPORATE ADMIN 40.00 X 188835 0 23729 VICTOR SMILGYS VP IT ESERVICES 40.00 X 170083 0 22329 ARIE ELKINS VP IT INFRASTRUCTURE 40.00 X 166879 0 32778 LORI HARDING VP BRANCH OPERATIONS 40.00 X 124342 0 17453 RICK PAK VP SBA/DIVISION MGR (1/14-7/14) 40.00 X 118060 0 4841 SUZANNE CARLISLE SVP HR / CORPORATE SVCS (1/14) 40.00 X 83012 0 417 TISHA HARTMAN DIRECTOR REAL ESTATE LENDING 40.00 X 155838 0 4619 KEVIN ARMSTRONG DIRECTOR CONSUMER LENDING 40.00 X 140452 0 16202 DASH MCELROY OSI SYSTEM MANAGER 40.00 X 139254 0 32877 JEFF AANA COMMERCIAL REAL ESTATE SALES MANAGER 40.00 X 138734 0 14109 OMAR HILARIO HELPDESK SUPPORT MANAGER 40.00 X 127883 0 6955 3910736 0 575787 30 0 1 0 OPEN SOLUTIONS LLC 255 FISERV DR BROOKFIELD WI 53045 ACCOUNT PROCESSING SERVICES 1621374 CALLOGIX 540 N COMMERCIAL ST MANCHESTER NH 03101 TELEPHONE ANSWERING SERVICES 827659 FISERV 255 FISERV DR BROOKFIELD WI 53045 ACCOUNT PROCESSING SERVICES 460646 DIEBOLD GLOBAL FINANCE CORPORATION 5995 MAYFAIR ROAD NORTH CANTON OH 44720 ATM SERVICES 399056 GT JORDAN ELECTRIC INC 963 CHESTNUT STREET SAN JOSE CA 95110 ELECTRICAL CONTRACTOR SERVICES 337107 27 INTEREST ON LOANS 522100 30048795 30048795 FEE INCOME 522100 4648373 4427619 220754 GAIN ON SALE OF LOANS 522100 1570369 1570369 OTHER OPERATING INCOME 522100 529667 451201 78466 36797204 2866978 417201 2449777 17508 4000 34172 0 -16664 4000 -12664 -12664 JOINT VENTURE K-1 INCOME 522291 51608 51608 51608 39703126 36497984 768029 2437113 5000 3696925 10682061 268116 1496264 1083259 99182 100570 2970005 899049 1919325 958765 2223990 36543 379192 1721676 1523841 ATM EXPENSE 974974 LOAN SERVICING 695323 PROVISION FOR LOAN LOSS 522207 PROVISION FOR TAXES 2075 1080384 33338726 8856843 8195510 20456825 18311213 40289 669901 766793026 1069072 3907693 31257931 15852464 14480997 15405467 86008424 70878584 41916351 727351178 7626578 13147788 865890206 939225533 9007276 9438525 0 40682 0 50000000 787710051 801444725 796717327 860923932 X 0 0 0 0 69172879 78301601 69172879 78301601 865890206 939225533 X 6364400 2267458 540771 -43907 X 0 1 X 1 0 4048 4048 1 CALIFORNIA CREDIT UNION LEAGUE - PAC 2855 E GUASTI ROAD ONTARIO CA 91761 940357265 4048 6000000 6000000 7937817 2420847 5516970 2257712 1360392 897320 15062402 12071225 2991177 15405467 MEMBERS' SHARES 797123346 OTHER MISCELLANEOUS LIABILITIES 4321379 801444725 X PART X, LINE 2: INCOME TAXES - THE CREDIT UNION IS EXEMPT BY STATUTE FROM FEDERAL AND STATE INCOME TAXES, EXCEPT FOR TAXES ON UNRELATED BUSINESS INCOME, AS FURTHER DISCUSSED IN NOTE 11. THE CREDIT UNION'S WHOLLY OWNED SUBSIDIARIES ARE TAXABLE ENTITIES, AND INCOME TAXES RELATED TO SUBSIDIARIES FOR 2014 AND 2013 WERE NOT MATERIAL TO THE CONSOLIDATED FINANCIAL STATEMENTS AND ARE INCLUDED IN OTHER OPERATING EXPENSES IN THE ACCOMPANYING CONSOLIDATED STATEMENTS OF INCOME. FINANCIAL ACCOUNTING STANDARDS BOARD ("FASB") ACCOUNTING STANDARDS CODIFICATION ("ASC") 740-10-65, INCOME TAXES, 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 WOULD BE RECORDED AS TAX EXPENSES AND LIABILITIES IN THE CURRENT YEAR. FOR THE YEARS ENDED DECEMBER 31, 2014 AND 2013, MANAGEMENT HAS DETERMINED THAT THERE ARE NO MATERIAL UNCERTAIN TAX POSITIONS AND, ACCORDINGLY, HAS NOT RECORDED A LIABILITY FOR THE PAYMENT OF INTEREST OR PENALTIES. THE CREDIT UNION IS NOT SUBJECT TO EXAMINATION BY U.S. FEDERAL AND STATE TAX AUTHORITIES FOR TAX YEARS BEFORE 2008. X 1 1 X X X 0 1 0 TED CANFIELD PRESIDENT/CHIEF EXECUTIVE OFFICER 334385 0 119232 0 12699 0 173003 0 30450 0 669769 0 0 0 TIMOTHY GREEN CHIEF FINANCE OFFICER 221493 0 7406 0 5620 0 6896 0 10114 0 251529 0 0 0 LESLIE JEFFRIES 114-914 CHIEF INFORMATION OFFICER 132555 0 38170 0 29936 0 14500 0 14430 0 229591 0 0 0 FAYE NABHANI CHIEF LENDING OFFICER 200274 0 36859 0 11798 0 9086 0 18457 0 276474 0 0 0 SAMUEL TUOHEY CHIEF OPERATING OFFICER 228799 0 14277 0 3054 0 7010 0 17625 0 270765 0 0 0 HELEN GRAYS SVP BUSINESS AND COMMUNITY DEVELOPME 160689 0 30927 0 19841 0 7689 0 17476 0 236622 0 0 0 LEEANNE GIBLIN SVP HUMAN RESOURCES 172750 0 35000 0 341 0 3600 0 9909 0 221600 0 0 0 STEVEN WEILER SVP COMMERCIAL BANKING 178548 0 28168 0 4718 0 7506 0 9224 0 228164 0 0 0 DOUGLAS SCHROCK VP FINANCE 142639 0 37842 0 12832 0 11242 0 18372 0 222927 0 0 0 LAWRENCE SCOFFIELD VP CORPORATE ADMIN 146386 0 33422 0 9027 0 6669 0 17060 0 212564 0 0 0 VICTOR SMILGYS VP IT ESERVICES 142854 0 26181 0 1048 0 3720 0 18609 0 192412 0 0 0 ARIE ELKINS VP IT INFRASTRUCTURE 125806 0 27401 0 13672 0 6296 0 26482 0 199657 0 0 0 TISHA HARTMAN DIRECTOR REAL ESTATE LENDING 132451 0 16714 0 6673 0 3082 0 1537 0 160457 0 0 0 KEVIN ARMSTRONG DIRECTOR CONSUMER LENDING 117569 0 17113 0 5770 0 5505 0 10698 0 156655 0 0 0 DASH MCELROY OSI SYSTEM MANAGER 122054 0 11361 0 5839 0 4193 0 28684 0 172131 0 0 0 JEFF AANA COMMERCIAL REAL ESTATE SALES MANAGER 102557 0 31618 0 4559 0 5256 0 8853 0 152843 0 0 0 PART I, LINE 1A HOUSING ALLOWANCE OF $6,000 WAS PAID TO DOUGLAS SCHROCK IN 2014 AND TREATED AS TAXABLE COMPENSATION TO HIM. PART I, LINE 4B THE CREDIT UNION HAS A SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN ("SERP"). THE SERP IS AN UNFUNDED RETIREMENT PLAN, WITH PARTICIPATION LIMITED TO EXECUTIVES SELECTED BY THE CREDIT UNION'S BOARD OF DIRECTORS. THE PURPOSE OF THE SERP IS TO ENCOURAGE CONTINUED SERVICE BY CERTAIN EXECUTIVES BY PROVIDING ENHANCED RETIREMENT BENEFITS. ACCORDINGLY, THE EXECUTIVES WHO PARTICIPATE IN THE SERP WILL RECEIVE ACCUMULATED SERP BENEFITS ONLY AT RETIREMENT. THE AMOUNT ACCRUED IN 2014 WAS $102,133. LORI HARDING OFFICER LINE OF CREDIT X 20000 18685 0 1 1 DOUGLAS SCHROCK OFFICER HELOC X 50000 10901 0 1 1 ARIE ELKINS OFFICER AUTO LOAN X 9005 7282 0 1 1 ARIE ELKINS OFFICER 1ST MORTGAGE X 625000 619549 0 1 1 VICTOR SMILGYS OFFICER AUTO LOAN X 14406 13484 0 1 1 669901 FORM 990, PART VI, SECTION A, LINE 6 KEYPOINT CREDIT UNION IS A COOPERATIVE FINANCIAL INSTITUTION THAT IS OWNED AND CONTROLLED BY ITS MEMBERS, AND OPERATED FOR THE PURPOSE OF PROMOTING THRIFT AND SAVINGS TO ITS MEMBERS. THE CREDIT UNION DOES NOT HAVE STOCKHOLDERS. FORM 990, PART VI, SECTION A, LINE 7A THE GOVERNING BOARD OF KEYPOINT CREDIT UNION IS COMPRISED OF VOLUNTEER MEMBERS WHO ARE DIRECTLY ELECTED BY ITS MEMBERS. EACH MEMBER OF THE GOVERNING BOARD SERVES FOR A PERIOD OF THREE YEARS AND UNTIL THEIR SUCCESSORS SHALL HAVE BEEN ELECTED. FORM 990, PART VI, SECTION A, LINE 7B AT THE END OF EACH TERM OF THE BOARD MEMBERS, ELECTIONS ARE HELD AND BOARD MEMBERS ARE VOTED BY THE MEMBERS OF THE CREDIT UNION PURSUANT TO ITS BY-LAWS. MEMBER VOTES ARE ALSO REQUIRED TO RATIFY DECISIONS DEALING WITH REORGANIZATIONS AS IN THE CASE OF MERGER OR DISSOLUTION. FORM 990, PART VI, SECTION B, LINE 11 THE FULL BOARD REVIEWED THE 990 PRIOR TO SUBMISSION TO THE IRS. FORM 990, PART VI, SECTION B, LINE 12C PER THE CREDIT UNION'S CONFLICT OF INTEREST POLICY, DIRECTORS, VOLUNTEERS AND EMPLOYEES ARE REQUIRED TO DISCLOSE THEIR INTERESTS THAT COULD GIVE RISE TO CONFLICTS OF INTEREST. THE POLICY WAS MOST RECENTLY REVIEWED AND APPROVED BY THE BOARD OF DIRECTORS ON OCTOBER 27, 2011. FOR THE ENFORCEMENT OF THE CONFLICT OF INTEREST POLICY, THE INTERNAL AUDITOR REVIEWS ACCOUNT ACTIVITY FOR ALL DIRECTORS, VOLUNTEERS, AND EMPLOYEES AND THEIR INTERESTS. IN ADDITION, THE ACCOUNTS PAYABLE SYSTEM IS REVIEWED TO ENSURE PROPRIETY OF ANY POTENTIAL CONFLICTS OF INTEREST AS APPLICABLE. THE CREDIT UNION ALSO MAINTAINS A POLICY THAT NO IMMEDIATE FAMILY MEMBERS OF THE BOARD OF DIRECTORS OR SUPERVISORY COMMITTEE MEMBERS MAY BECOME EMPLOYEES OF THE CREDIT UNION UNTIL TWO YEARS HAVE ELAPSED SINCE THEIR VOLUNTEER SERVICE WITH THE CREDIT UNION ENDED. THE CREDIT UNION DOES ALLOW DIRECTORS, VOLUNTEERS AND EMPLOYEES TO APPLY FOR LOANS THAT THE CREDIT UNION OFFERS TO ITS MEMBERSHIP. ALL LOAN APPLICATIONS FOR VICE-PRESIDENTS AND ABOVE, VOLUNTEERS AND BOARD MEMBERS REQUIRE THE APPROVAL OF THE BOARD OF DIRECTORS. DIRECTORS ARE RESTRICTED FROM PARTICIPATING IN THE DELIBERATIONS AND VOTING IN A TRANSACTION THAT PERTAINS TO THEM. FORM 990, PART VI, SECTION B, LINE 15 THE COMPENSATION OF THE CEO IS DETERMINED BY THE COMPENSATION COMMITTEE OF THE CREDIT UNION. ALL VP POSITIONS AND ABOVE ARE REVIEWED FOR MARKET PLACE COMPENSATION AND SALARY RANGES ARE RECOMMENDED FOR ADJUSTMENT BASED ON SURVEY INFORMATION. THE CEO APPROVES THE RECOMMENDATION FOR SALARY STRUCTURE CHANGE. AFTER A PERFORMANCE REVIEW IS WRITTEN AND RATING IS DETERMINED, A MERIT INCREASE IS SET BY THE FORMULA OF WHERE THE INDIVIDUAL FALLS INTO THE RANGE AND PERFORMANCE LEVEL. THE RECOMMENDATION FOR MERIT INCREASE IS APPROVED OVERALL BY THE INDIVIDUAL DEPARTMENT VP OR EVP. THE OVERALL GROUP IS APPROVED BY THE CEO. FORM 990, PART VI, SECTION C, LINE 19 GOVERNING DOCUMENTS AND CONFLICT OF INTEREST POLICY ARE NOT MADE AVAILABLE TO THE PUBLIC. FINANCIAL STATEMENTS ARE POSTED IN THE BRANCH OFFICES MONTHLY. FORM 990, PART XI, LINE 9: BOOK TO TAX DIFFERENCE IN INVESTMENT INCOME -43,907. KEYPOINT FINANCIAL SERVICES INC 2805 BOWERS AVENUE SANTA CLARA CA 95051 770018330 INSURANCE CA KEYPOINT CREDIT UNION C 38251 561194 1.00000 1 INTEGRATED CREDIT UNION SERVICES INC 2805 BOWERS AVENUE SANTA CLARA CA 95051 943140652 INSURANCE CA KEYPOINT CREDIT UNION C 32729 15483 1.00000 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0