2014-05-15T11:01:09-05:00 2013-12-31 630813240 PEARCE BEVILL LEESBURG MOORE PC 110 OFFICE PARK DR BIRMINGHAM AL 35223 990 2013-01-01 630021787 FIRST EDUCATORS CREDIT UNION CRED 2055818800 PO BOX 36489 HOOVER AL 35236 STEVE NIX PRESIDENT/CEO 2055818800 2014-05-14 1 W GLENN BRIDGES P00519867 2053235440 2014-05-14 2013 2015-11-30 17:44:51Z STEVE NIX PO BOX 36489 HOOVER AL 35236 6039338 0 1422 X WWW.FIRSTEDUCATORSCU.COM X STATE CHARTERED COOPERATIVE CREDIT UNION 1935 AL COOPERATIVE CREDIT UNION 7 7 60 9 29041 -10624 0 0 6411156 6039338 0 0 0 0 6411156 6039338 0 0 0 0 2351064 2266839 0 0 0 3438167 5428205 5789231 7695044 621925 -1655706 124433709 130592656 108925921 115154322 15507788 15438334 COOPERATIVE SOCIETY INCORPORATED FOR THE TWOFOLD PURPOSE OF PROMOTING THRIFT AMONG ITS MEMBERS AND CREATING A SOURCE OF CREDIT FOR THEM AT LEGITIMATE RATES OF INTEREST. 0 0 7695044 CODE OF ALABAMA, SEC 5-17-1, STATES THAT A CREDIT UNION IS A COOPERATIVE SOCIETY INCORPORATED FOR THE TWOFOLD PURPOSE OF PROMOTING THRIFT AMONG ITS MEMBERS AND CREATING A SOURCE OF CREDIT FOR THEM AT LEGITIMATE RATES OF INTEREST. FIRST EDUCATORS CREDIT UNION, AN ALABAMA STATE CHARTERED CREDIT UNION, WAS ESTABLISHED TO PROVIDE A VARIETY OF FINANCIAL SERVICES TO ITS MEMBERS, WHO ARE EMPLOYEES OF THE PUBLIC SCHOOLS LOCATED IN JEFFERSON, CALHOUN, WALKER AND TALLADEGA COUNTIES AND THEIR RELATIVES. THE CREDIT UNION'S FIELD OF MEMBERSHIP ALSO INCLUDES SELECTED EMPLOYEE GROUPS AND INDIVIDUALS THAT RESIDE IN THESE COUNTIES. AS OF DECEMBER 31, 2013, THE CREDIT UNION HAD MEMBERSHIP AND PROVIDED SERVICES TO APPROXIMATELY 14,300 MEMBERS. 7695044 0 0 0 0 0 0 0 1 0 1 0 1 0 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 1 0 0 0 0 0 0 0 0 1 3346 0 1 60 1 1 1 0 0 0 0 0 X 7 7 0 0 0 0 1 1 1 1 1 0 0 0 0 0 1 1 1 0 X STEVE NIX 2055818800 1810 MERCHANTS DRIVE BIRMINGHAM AL 35244 DR BASCOM WOODWARD CHAIRPERSON 0.00 X 0 0 0 DONALD DUCK DIRECTOR - SECRETARY 0.00 X 0 0 0 DR WAYMON SHIVER DIRECTOR - TREASURER 0.00 X 0 0 0 MARTHA WISE DIRECTOR 0.00 X 0 0 0 PHILLIP WOODS DIRECTOR - VICE CHAIR 0.00 X 0 0 0 DR BILLY T MARSH DIRECTOR 0.00 X 0 0 0 DR SIMPSON BERRY DIRECTOR 0.00 X 0 0 0 DEBORAH HORN SUPERVISOR COMMITTEE 0.00 X 0 0 0 JEFF WALLACE SUPERVISOR COMMITTEE 0.00 X 0 0 0 STEVE NIX PRESIDENT 40.00 X 200576 0 13473 JOHN WHEELER VICE PRESIDENT 40.00 X 119656 0 16879 320232 0 30352 2 0 1 0 WALLER LANSDEN DORTCH & DAVIS 1901 SIXTH AVENUE NORTH STE 1400 BIRMINGHAM AL 35203 LEGAL 568748 1 INTEREST INCOME FROM L 522100 4390207 4390207 FINANCIAL SERVICE FEES 522100 1313348 1284307 29041 INVESTMENT INCOME 522100 335783 335783 6039338 6039338 6010297 29041 0 350584 1399237 517018 215000 260704 176467 36892 199608 91638 PROFESSIONAL AND OUTSID 1504004 LEGAL SETTLEMENT EXPENS 1233567 IMPAIRMENT LOSS ON FORE 691961 MEMBER SHARE DIVIDENDS 447685 570679 7695044 1930100 1940680 7146666 8207350 69794932 69201153 112561 141509 6034580 2028418 4032028 4006162 36574336 41266287 4843086 5829515 124433709 130592656 331253 1308020 69789 76200 108524879 113770102 108925921 115154322 X 0 0 0 0 15507788 15438334 15507788 15438334 124433709 130592656 X -1655706 -209705 1795957 X X 0 1 X 1 0 0 1 X 930762 930762 3607528 670999 2936529 43413 43413 0 1452877 1314006 138871 4006162 AFS INVESTMENT SECURITIES 12731515 F CORPORATE CREDIT UNION DEPOSITS 24191661 C FHLB INVESTMENTS 186315 C CUSO INVESTMENT 50000 C INVESTMENT LIFE IN INSURANCE CONTRACTS 4106796 C 41266287 MEMBER SHARES AND CERTIFICATE SHARES 113770102 113770102 X 7617581 1578243 1578243 6039338 0 6039338 9231671 1536627 1536627 7695044 0 7695044 PART IV, LINE 2B: THE CREDIT UNION ACCEPTS AND MAINTAINS ESCROW PAYMENTS TO PAY ANNUAL TAXES AND INSURANCE ON MEMBER BORROWER MORTGAGE LOANS. PART X, LINE 2: THE CREDIT UNION IS EXEMPT, BY STATUTES, FROM MOST FEDERAL AND STATE INCOME TAXES. THE CREDIT UNION FILES A FEDERAL FORM 990 AND HAS A DECEMBER 31, TAX YEAR END. THE STATE OF ALABAMA IMPOSES A 6.5% EXCISE TAX ON THE TAXABLE INCOME OF STATE CHARTERED CREDIT UNIONS AS OF DECEMBER 31, EACH TAX YEAR. BASED ON THE GUIDANCE FROM THE PROVISIONS OF FASB ASC 740, INCOME TAXES, ASSOCIATED WITH UNCERTAINTY IN INCOME TAX POSITIONS (FORMERLY FIN 48), TAX POSITIONS INITIALLY NEED TO BE RECOGNIZED IN THE FINANCIAL STATEMENTS WHEN IT IS MORE-LIKELY-THAN-NOT THE POSITIONS WILL BE SUSTAINED UPON EXAMINATION BY THE TAX AUTHORITIES. SUCH TAX POSITIONS INITIALLY AND SUBSEQUENTLY NEED TO BE MEASURED AS THE LARGEST AMOUNT OF TAX BENEFIT THAT HAS A GREATER THAN 50% LIKELIHOOD OF BEING REALIZED UPON ULTIMATE SETTLEMENT WITH THE TAX AUTHORITY ASSUMING FULL KNOWLEDGE OF THE POSITION AND RELEVANT FACTS. BASED ON THIS GUIDANCE, MANAGEMENT HAS ASSESSED WHETHER THERE WERE ANY UNCERTAIN TAX POSITIONS THAT MAY GIVE RISE TO INCOME TAX LIABILITIES AND HAS DETERMINED THAT AS A STATE-CHARTERED CREDIT UNION, THE CREDIT UNION IS SUBJECT TO FEDERAL UNRELATED BUSINESS INCOME TAX. THE CREDIT UNION IS A STATE-CHARTERED CREDIT UNION DESCRIBED IN INTERNAL REVENUE CODE (IRC) SECTION 501(C)(14). AS SUCH, THE CREDIT UNION IS EXEMPT FROM FEDERAL TAXATION OF INCOME DERIVED FROM THE PERFORMANCE OF ACTIVITIES THAT ARE IN FURTHERANCE OF ITS EXEMPT PURPOSES. HOWEVER, IRC SECTION 511 IMPOSES A TAX ON THE UNRELATED BUSINESS INCOME (AS DEFINED IN SECTION 512) DERIVED BY STATE-CHARTERED CREDIT UNIONS. THE SPECIFIC APPLICATION OF SECTION 512 TO THE VARIOUS ACTIVITIES CONDUCTED BY STATE-CHARTERED CREDIT UNIONS HAS BEEN A POINT OF CONTENTION BETWEEN STATE-CHARTERED CREDIT UNIONS AND THE INTERNAL REVENUE SERVICE (IRS) FOR MANY YEARS. DURING 2007, THE IRS ISSUED A SERIES OF TECHNICAL ADVICE MEMORANDA (TAM) TO A NUMBER OF STATE-CHARTERED CREDIT UNIONS LOCATED THROUGHOUT THE COUNTRY. IN THESE TAMS THE IRS RULED CERTAIN PRODUCTS AND SERVICES TO BE SUBJECT TO TAXATION AS UNRELATED BUSINESS INCOME. CERTAIN CREDIT UNIONS HAVE CONTESTED THE IRS TAM RULINGS IN COURT. RECENT JUDGMENTS HAVE BEEN IN FAVOR OF THE CREDIT UNIONS. THE CREDIT UNION HAS ASSESSED ITS ACTIVITIES AND ANY POTENTIAL FEDERAL INCOME TAX LIABILITY. MANAGEMENT BELIEVES THAT IT HAS APPROPRIATE SUPPORT FOR THE INCOME TAX POSITIONS TAKEN AND TO BE TAKEN ON ITS TAX RETURNS BASED ON AN ASSESSMENT OF MANY FACTORS INCLUDING EXPERIENCE AND INTERPRETATIONS OF TAX LAWS APPLIED TO THE FACTS OF EACH MATTER. THE CREDIT UNION HAS CONCLUDED THAT THERE ARE NO SIGNIFICANT UNCERTAIN TAX POSITIONS REQUIRING DISCLOSURE, AND THERE ARE NO MATERIAL AMOUNTS OF UNRECOGNIZED TAX BENEFITS REQUIRING RECOGNITION IN THE FINANCIAL STATEMENTS. 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 ARISING FROM FEDERAL TAXATION OF ACTIVITIES DEEMED TO BE UNRELATED TO ITS EXEMPT PURPOSES AND ANY POTENTIAL ADDITIONAL LIABILITY RESULTING FROM THE TAXING AUTHORITIES IMPOSING TAXES, PENALTIES, AND INTEREST ON THE TAXES DUE IS NOT EXPECTED TO HAVE A MATERIAL EFFECT ON THE CREDIT UNION'S FINANCIAL POSITION OR RESULTS OF OPERATIONS. WITH FEW EXCEPTIONS, CURRENTLY THE 2012, 2011, AND 2010 FEDERAL INCOME TAX RETURNS ARE OPEN FOR EXAMINATION BY THE IRS. PART XI, LINE 2D - OTHER ADJUSTMENTS: ADDITINAL THREE MONTHS REVENUE FROM 15 MONTH AUDIT PERIOD PART XII, LINE 2D - OTHER ADJUSTMENTS: ADDITINAL THREE MONTHS EXPENSE FROM 15 MONTH AUDIT PERIOD PARTS XI AND XII: ON AN ANNUAL BASIS, THE ALABAMA CREDIT UNION ADMINISTRATION PERFORMS A REGULATORY EXAMINATION OF THE FINANCIAL STATEMENTS AND SAFETY AND SOUNDNESS OF THE CREDIT UNION. ADDITIONALLY, THE CREDIT UNION'S FINANCIAL STATEMENTS ARE AUDITED BY AN INDEPENDENT ACCOUNTANT AS OF DECEMBER 31 EACH YEAR IN ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES FOR DEPOSITORY AND LENDING FINANCIAL INSTITUTIONS. AS A LENDING AND DEPOSIT-TAKING FINANCIAL INSTITUTION, THE CREDIT UNION IS NOT REQUIRED TO PREPARE IT'S FINANCIAL STATEMENTS IN ACCORDANCE WITH SFAS 117. X X 0 1 0 STEVE NIX PRESIDENT 200576 0 0 0 0 0 7997 0 5476 0 214049 0 0 0 PART I, LINE 4B THE CREDIT UNION HAS ESTABLISHED THE FIRST EDUCATORS CREDIT UNION 457(B) PLAN. THE PLAN IS INTENDED TO BE AN ELIGIBLE DEFERRED COMPENSATION PLAN UNDER SECTION 457(B) OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED. THIS PLAN IS AN AGREEMENT BETWEEN THE CREDIT UNION AND SELECTED MANAGEMENT EXECUTIVES THAT PERMITS CERTAIN EXECUTIVES, "PLAN PARTICIPANTS", TO MAKE ELECTIVE DEFERRALS OF COMPENSATION TO WHICH THEY WILL BECOME ENTITLED IN THE FUTURE. THE COMPENSATION DEFERRALS ARE MAINTAINED IN INVESTMENT ACCOUNTS THAT ARE AT THE PARTICIPANT'S DESIGNATION. THE CREDIT UNION DOES NOT CONTRIBUTE TO THE PLAN AND DOES NOT HAVE ANY OWNERSHIP OF THE INVESTMENTS. STEVE NIX PRESIDENT/CEO THE CREDIT UNION'S PRESIDENT/CEO IS ON THE BOARD OF DIRECTORS OF CORPORATE AMERICA CREDIT UNION IN WHICH THE CREDIT UNION ROUTINELY MAKES DEPOSITS AND RECEIVES DEPOSITS. MANAGEMENT BELIEVES ALL TRANSACTIONS WERE MADE IN THE ORDINARY COURSE OF BUSINESS ON THE SAME TERMS AS COMPARABLE TRANSACTIONS WITH OTHER CORPORATE AMERICA MEMBERS. 0 FORM 990, PART VI, SECTION A, LINE 6 ALABAMA BANKING CODE, SECTION 5-17-5 STATES THAT, "CREDIT UNION MEMBERSHIP SHALL CONSIST OF THE INCORPORATORS AND SUCH OTHER PERSONS AS MAY BE ELECTED TO MEMBERSHIP AND WHO SUBSCRIBE TO AT LEAST ONE SHARE AND PAY THE INITIAL INSTALLMENT THEREON AND THE ENTRANCE FEE. ORGANIZATIONS, INCORPORATED OR OTHERWISE, COMPOSED FOR THE MOST PART OF THE SAME GENERAL GROUP AS THE CREDIT UNION MEMBERSHIP MAY BE MEMBERS. CREDIT UNION ORGANIZATION SHALL BE LIMITED TO GROUPS, OF BOTH LARGE AND SMALL MEMBERSHIP, HAVING A COMMON BOND OF OCCUPATION OR ASSOCIATION OR TO GROUPS WITHIN A WELL- DEFINED NEIGHBORHOOD, COMMUNITY OR RURAL DISTRICT." THE MEMBERSHIP OF FIRST EDUCATORS CREDIT UNION WAS ESTABLISHED TO PROVIDE A VARIETY OF FINANCIAL SERVICES TO ITS MEMBERS, WHO ARE EMPLOYEES OF THE PUBLIC SCHOOLS LOCATED IN JEFFERSON, CALHOUN, WALKER AND TALLADEGA COUNTIES AND THEIR RELATIVES. THE CREDIT UNION'S FIELD OF MEMBERSHIP ALSO INCLUDES SELECTED EMPLOYEE GROUPS AND INDIVIDUALS THAT RESIDE IN THESE COUNTIES. AS OF DECEMBER 31, 2013, THE CREDIT UNION HAD MEMBERSHIP AND PROVIDED SERVICES TO APPROXIMATELY 14,300 MEMBERS. FORM 990, PART VI, SECTION A, LINE 7A THE BOARD OF DIRECTORS ARE ELECTED BY THE CREDIT UNION'S MEMBERSHIP AT THE ANNUAL MEETING. THE CREDIT UNION'S BYLAWS GOVERN THE ELECTION PROCEDURES. THE TERMS OF THE BOARD OF DIRECTORS, AS SET BY THE BYLAWS, ARE 3 YEARS AND ARE STAGGERED SO THAT AN EQUAL NUMBER EXPIRE AT EACH ANNUAL MEETING. PRIOR TO THE ANNUAL MEETING, THE BOARD CHAIRMAN APPOINTS A NOMINATING COMMITTEE TO NOMINATE A CANDIDATE FOR EACH VACANCY. NOMINATIONS MAY ALSO BE MADE BY PETITION. ELECTION BY THE MEMBERSHIP IS PERFORMED THROUGH WRITTEN BALLOTS, UNLESS THERE IS ONLY ONE NOMINEE. ALL ELECTIONS ARE DETERMINED BY A PLURALITY VOTE. FORM 990, PART VI, SECTION A, LINE 7B THE FOLLOWING TYPES OF DECISIONS ARE SUBJECT TO APPROVAL BY THE CREDIT UNION'S MEMBERS: DISSOLUTION AND MERGER DECISIONS, ELECTION AND TERMINATION OF BOARD MEMBERS, ELECTION AND TERMINATION OF SUPERVISORY COMMITTEE MEMBERS, AND CONVERSION FROM STATE TO FEDERAL CHARTER. FORM 990, PART VI, SECTION B, LINE 11 MANAGEMENT PERFORMS A REVIEW OF THE FORM 990 PRIOR TO FILING. FORM 990, PART VI, SECTION B, LINE 15 COMPENSATION FOR THE CREDIT UNION'S CEO IS REVIEWED ANNUALLY BY THE BOARD OF DIRECTORS. TO DETERMINE THE CEO'S SALARY, THE BOARD CONSIDERS AMONG OTHER THINGS, PUBLISHED PEER SALARY GUIDES/DATA AND THE CREDIT UNION'S FINANCIAL CONDITION AND RESULTS OF OPERATIONS. THE CEO SETS THE COMPENSATION OF THE VICE PRESIDENT AND THE VICE PRESIDENT SETS THE SALARIES OF ALL OTHER EMPLOYEE BASED ON SIMILAR GUIDELINES. FORM 990, PART VI, SECTION C, LINE 19 THE CREDIT UNION MAKES ITS GOVERNING DOCUMENTS AVAILABLE TO THE PUBLIC UPON REQUEST. THE CREDIT UNION'S FINANCIAL STATEMENTS CAN BE FOUND ON THE WEBSITE OF THE NCUA AT NCUA.GOV. FORM 990, PART XI, LINE 9: CHANGE IN OTHER COMPREHENSIVE INCOME FOR PENSION PLAN 1,795,957. FORM 990, PART XII, LINE 2B: ON AN ANNUAL BASIS, THE ALABAMA CREDIT UNION ADMINISTRATION AND/OR THE NATIONAL CREDIT UNION ADMINISTRATION PERFORM A REGULATORY EXAMINATION OF THE FINANCIAL STATEMENTS AND SAFETY AND SOUNDNESS OF THE CREDIT UNION. ADDITIONALLY, THE CREDIT UNION'S FINANCIAL STATEMENTS ARE AUDITED BY AN INDEPENDENT ACCOUNTANT AS OF DECEMBER 31 EACH YEAR. FORM 990, PART XII, LINE 2C: THE CREDIT UNION HAS A SUPERVISORY COMMITTEE THAT IS RESPONSIBLE FOR ENSURING THAT THE BOARD OF DIRECTORS AND MANAGEMENT OF THE CREDIT UNION - (1)MEET REQUIRED FINANCIAL REPORTING OBJECTIVES AND (2) ESTABLISH PRACTICES AND PROCEDURES SUFFICIENT TO SAFEGUARD MEMBERS' ASSETS. THIS INCLUDES OVERSEEING THE ANNUAL FINANCIAL STATEMENT AUDIT AND THE SELECTION OF THE INDEPENDENT AUDITOR/ACCOUNTANT.