2013-08-09T15:34:40-05:00 2012-12-31 420714325 MCGLADREY LLP 801 NICOLLET MALL SUITE 1100 MINNEAPOLIS MN 55402 990 2012-01-01 951209332 UNIVERSITY & STATE EMPLOYEES CREDIT UNION UNIV 8587956100 10120 PACIFIC HEIGHTS BLVD NO 100 SAN DIEGO CA 92121 KENNETH KRAMER 8587956100 2013-08-07 1 GERALD B KISSELL P00092658 6123324300 2012 2016-02-25 16:41:14Z JAMES HARRIS 10120 PACIFIC HEIGHTS BLVD NO 100 SAN DIEGO CA 92121 148757164 0 X WWW.USECU.ORG X 1936 CA TO LEAD IN SERVICE, QUALITY AND MEMBER-VALUE AS YOUR TRUSTED FINANCIAL PARTNER. 11 11 207 14 216977 -279957 0 0 30985298 28256317 7452594 6800779 103090 449338 38540982 35506434 0 0 2856840 2206917 11270212 10879492 0 0 0 16352390 15154767 30479442 28241176 8061540 7265258 729878186 751168013 673369756 687050711 56508430 64117302 X TO PROVIDE FINANCIAL SERVICES TO ALL WHO ARE ELIGIBLE FOR UNIVERSITY & STATE EMPLOYEES (USE) CREDIT UNION MEMBERSHIP. 0 0 MEMBERSHIP IN USE CREDIT UNION PROVIDES ACCESS TO A ROBUST ARRAY OF QUALITY FINANCIAL SERVICES AND PRODUCTS INCLUDING CHECKING AND SAVINGS ACCOUNTS. UNLIKE BANKS, WHICH RETURN THEIR PROFITS TO SHAREHOLDERS, USE CREDIT UNION RETURNS ITS PROFITS TO MEMBERS IN THE FORM OF HIGHER RATES ON DEPOSITS AND A HOST OF FREE AND LOW-COST SERVICES. AS OF DECEMBER 31, 2012, USE CREDIT UNION MEMBERS HELD 106,078 DEPOSIT ACCOUNTS TOTALING OVER $680 MILLION. THESE ACCOUNTS INCLUDED FREE CHECKING, LOW-BALANCE SAVINGS, IRA'S, AND HIGH-YIELD MONEY MARKET AND TERM INVESTMENT ACCOUNTS. AS A MEMBER-OWNED, NOT-FOR-PROFIT COOPERATIVE, USE CREDIT UNION IS DEDICATED TO PROVIDING THE FINANCIAL PRODUCTS AND SERVICES MEMBERS NEED AT EVERY STAGE OF LIFE. WHETHER IT'S BUYING A FIRST CAR, FINANCING A NEW HOME, OR SEEKING A HIGHER EDUCATION, USE CREDIT UNION OFFERS MEMBERS LOW-COST HOME, VEHICLE, AND PERSONAL LOANS, AS WELL AS FREE FINANCIAL SEMINARS TO ASSIST THEM IN MAKING SOUND FINANCIAL CHOICES. AS OF DECEMBER 31, 2012, USE CREDIT UNION MEMBERS HELD 28,670 MORTGAGE, HOME EQUITY, VEHICLE, CREDIT CARD, AND VARIOUS OTHER PERSONAL LOANS TOTALING OVER $429 MILLION. SINCE 1936, USE CREDIT UNION HAS BEEN HELPING PEOPLE ACHIEVE THEIR MOST IMPORTANT FINANCIAL GOALS. AS ONE OF CALIFORNIA'S LARGEST CREDIT UNIONS, USE OFFERS FULL-SERVICE BANKING, INCLUDING FREE AND LOW-COST E-SERVICES. MEMBERS CAN MANAGE THEIR PERSONAL FINANCES ANYTIME, ANYWHERE WITH TELEPHONE, ONLINE, AND WIRELESS INTERNET BANKING. AS AN ADDITIONAL CONVENIENCE, USE'S OFFERS BILLPAY SERVICES TO MEMBERS WITH QUALIFYING CHECKING ACCOUNTS AT NO COST. APPROXIMATELY 6,300 MEMBERS UTILIZE THIS SERVICE EACH MONTH. IN ADDITION, USE CREDIT UNION HAS PARTNERED WITH OTHER CREDIT UNIONS TO FORM THE CO-OP ATM NETWORK. THIS NETWORK PROVIDES MEMBERS ACCESS TO APPROXIMATELY 30,000 NO-FEE ATM'S THROUGHOUT THE UNITED STATES AND CANADA. ADDITIONAL USE CREDIT UNION MEMBERSHIP BENEFITS INCLUDE: 1) PROFESSIONAL BROKERAGE AND INVESTMENT SERVICES; 2) PROFESSIONAL TAX PREPARATION SERVICES; 3) MONEY-SAVING AUTO, HOME, HEALTH, AND LIFE INSURANCE PROGRAMS; 4) FREE FINANCIAL EDUCATION SEMINARS; 5) MERCHANT, RECREATION, AND TRAVEL DISCOUNTS. 0 0 1 0 0 0 0 1 0 1 1 0 1 1 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 1 16578 0 1 207 1 1 1 0 0 0 0 0 X 11 11 0 0 0 0 1 1 1 1 1 0 1 1 0 1 1 1 1 1 1 1 0 CA X ADELE SANDBERG VPCONTROLLER 8587956111 10120 PACIFIC HEIGHTS BLVD NO 100 SAN DIEGO CA 92121 DAVID ELY 3.00 X X 0 0 0 MATT ADAMS 3.00 X X 0 0 0 JOHN RICHARD CHANTENGCO 3.00 X 0 0 0 TONY CHERIN 3.00 X 0 0 0 IOLA HARRIS-BAKER 3.00 X 0 0 0 SHIRLEY HUMPHREY 3.00 X 0 0 0 JOSHUA LAWRENCE 3.00 X 0 0 0 YVONNE L MARSH 3.00 X 0 0 0 ARUN SEN 3.00 X 0 0 0 STEVE ST MARIE 3.00 X 0 0 0 JOHN STEVENSON 3.00 X 0 0 0 LORI TROFEMUK 3.00 X 0 0 0 JAMES HARRIS 40.00 X 361254 0 24110 KENNETH KRAMER 40.00 X 215008 0 28031 GARY AHLGREN 40.00 X 312084 0 26938 JEANNIE DECARLO 40.00 X 161713 0 25214 GAIL NAKATSU 40.00 X 157914 0 7554 KAREN SMITH 40.00 X 150377 0 14937 LYNETTE STEEL 40.00 X 187136 0 5405 NATHANIEL FRICHTEL 40.00 X 134631 0 15310 SHELLY DUCKART 40.00 X 191235 0 9725 KATHLEEN DALLAS-ORR 40.00 X 191138 0 10815 2062490 0 168039 13 0 1 0 INTUIT FINANCIAL SERVICES 21215 BURBANK BLVD SUITE 100 WOODLAND HILLS CA 91367 ONLINE BANKING / WEB-SITE HOSTING SERVIC 903084 FISERV 405 SCIENCE DRIVE MOORPARK CA 93021 SOFTWARE PROVIDER 361000 ADVANCED NETWORK INC 8940 ACTIVITY ROAD SUITE F SAN DIEGO CA 92126 ATM SERVICES 268766 BUSINESS DATA INC 321 N OAK STREET INGLEWOOD CA 90302 STATEMENT PROCESSOR 218717 ENFORCEMENT SUPPORT SERVICES INC 10120 PACIFIC HEIGHTS BLVD SUITE SAN DIEGO CA 92121 SECURITY GUARDS 208163 10 LOAN INTEREST INCOME 522100 21304709 21304709 SERVICE CHARGES AND FEE INCOME 522100 4059832 3842855 216977 INTERCHANGE INCOME 522100 2891776 2891776 28256317 4199272 4199272 1298496 849158 449338 449338 449338 5569427 109433652 5241637 107159935 327790 2273717 2601507 2601507 35506434 28039340 216977 7250117 2206917 1316752 7968114 134240 732805 727581 165482 249766 735890 261873 1403708 2146697 1307590 62519 47493 582818 1102328 206242 PROVISION FOR LOAN LOSS 2125000 LOAN PROGRAM/SERVICING 1365530 ATM EXPENSES 1300963 MISC EXPENSES 779125 1311743 28241176 55365489 58831368 406005275 418281642 42106986 15930513 27063223 26176473 185738143 189817895 55706056 58060635 729878186 751168013 2012197 2725246 9900000 3000000 661457559 681325465 673369756 687050711 X 0 0 0 0 56508430 64117302 56508430 64117302 729878186 751168013 X 7265258 343614 X 0 1 X 1 0 7605 7605 7605 1 CALIFORNIA CREDIT UNION LEAGUE PAC 1201 K STREET SUITE 1050 SACRAMENTO CA 95814 942329967 6215 SAN DIEGO CREDIT UNIONS' PAC 9201 SPECTRUM CENTER BLVD SAN DIEGO CA 92123 743032876 1390 ORGANIZATIONS DIRECT AND INDIRECT POLITICAL CAMPAIGN ACTIVITIES: PART I-A, LINE 1: USE'S POLITICAL CAMPAIGN ACTIVITIES ARE PRIMARILY CENTERED AROUND SPECIFIC LEGISLATIVE BILLS OF SPECIFIC INTEREST TO USE AND/OR THE CREDIT UNION INDUSTRY. WE PARTICIPATE WITH THE CALIFORNIA/NEVADA CREDIT UNION LEAGUE AND CUNA BY SENDING LETTERS OF SUPPORT OR OPPOSITION TO PROPOSED LEGISLATION. WE ALSO, ON AN INDIVIDUAL BASIS, ATTEND FUNDRAISERS TO SUPPORT CREDIT UNION FRIENDLY LEGISLATORS. FINANCIAL CONTRIBUTIONS ARE MADE BY EITHER PERSONAL FUNDS OR THRU PAC CONTRIBUTIONS. 0 1 X 8310057 8310057 15854200 2111547 13742653 4796118 2195173 2600945 13146611 11623793 1522818 26176473 FEDERAL HOME LOAN BANK STOCK 3936200 F AVAILABLE FOR SALE SECURITIES 185881695 F 189817895 ACCRUED INTEREST RECEIVABLE 2934386 NCUA SHARE INSURANCE DEPOSITS 6527835 OTHER ASSETS 31234167 INSURANCE CONTRACTS 9864328 LOANS HELD FOR SALE 7499919 58060635 MEMBER SHARES 679618751 DIVIDENDS PAYABLE 409871 OTHER LIABILITIES 1296843 681325465 X PART IV, LINE 2B: THE CREDIT UNION MAINTAINS ESCROW ACCOUNTS FOR MORTGAGE LOANS HELD BY MEMBERS. THE CREDIT UNION ALSO HOLDS CUSTODIAL ACCOUNTS TO FACILITATE THE SERVICING OF LOANS SOLD TO ENTITIES SUCH AS FANNIE MAE. AT 12/31/2012 THE ESCROW BALANCE WAS $456,136 AND THE VALUE OF ASSETS FOR WHICH THE CREDIT UNION SERVES AS CUSTODIAN WAS $2,269,110. DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X, LINE 2: FOR THE YEARS ENDED DECEMBER 31, 2012 AND DECEMBER 31, 2011, MANAGEMENT DETERMINED THAT THERE ARE NO MATERIAL UNCERTAIN TAX POSITIONS. X 1 1 X X X X 1 0 0 JAMES HARRIS 317625 0 36000 0 7629 0 5697 0 18413 0 385364 0 0 0 KENNETH KRAMER 208750 0 0 0 6258 0 3908 0 24123 0 243039 0 0 0 GARY AHLGREN 263699 0 31979 0 16406 0 6221 0 20717 0 339022 0 0 0 JEANNIE DECARLO 46903 0 0 0 114810 0 554 0 24660 0 186927 0 0 0 GAIL NAKATSU 151534 0 1000 0 5380 0 1457 0 6097 0 165468 0 0 0 KAREN SMITH 146132 0 3794 0 451 0 3783 0 11154 0 165314 0 0 0 LYNETTE STEEL 108750 0 2553 0 75833 0 2597 0 2808 0 192541 0 0 0 SHELLY DUCKART 61364 0 125137 0 4734 0 4040 0 5685 0 200960 0 0 0 KATHLEEN DALLAS-ORR 53725 0 136199 0 1214 0 2229 0 8586 0 201953 0 0 0 PART I, LINE 1A TRAVEL FOR COMPANIONS - THE CREDIT UNION WILL PAY FOR ONE IMMEDIATE FAMILY MEMBER OR DOMESTIC PARTNER TO ACCOMPANY A VOLUNTEER TO A CONFERENCE OR SEMINAR, WITHIN SPECIFIED LIMITATIONS (E.G. ANNUAL BUDGET ALLOCATIONS, SHARING VOLUNTEER'S HOTEL ROOM). THE CREDIT UNION WILL ISSUE TO THE VOLUNTEER AN IRS 1099 WHEN EXPENSES EXCEED $600 FOR WHICH NO BONA FIDE BUSINESS PURPOSE EXISTS. PART I, LINE 4A JEANNIE DECARLO RECEIVED A $113,289 SEVERANCE PAYMENT. LYNETTE STEEL RECEIVED A $74,550 SEVERANCE PAYMENT. 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 OR EXCESS DUES 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 FORM 990 WAS REVIEWED BY THE CREDIT UNION'S CEO AND CFO PRIOR TO FILING WITH THE IRS. FORM 990, PART VI, SECTION B, LINE 12C BOARD MEMBERS, SUPERVISORY COMMITTEE MEMBERS, AND MANAGEMENT SIGN ANNUAL CONFLICT OF INTEREST STATEMENTS. EMPLOYEES ARE REQUIRED TO SIGN AN ACKNOWLEDGMENT AND AGREEMENT STATEMENT WHEN PROVIDED WITH A COPY OF THE CREDIT UNION'S EMPLOYEE HANDBOOK AT THE TIME OF HIRE. THIS COMPREHENSIVE MANUAL INCLUDES SPECIFIC GUIDANCE REGARDING APPROPRIATE BUSINESS ACTIVITIES AND CONDUCT. IN ADDITION, MANAGERS AT ALL LEVELS MEET WITH THEIR DIRECT REPORTS ON A REGULAR BASIS. THESE MEETINGS PROVIDE AN ONGOING FORUM TO REAFFIRM THE POLICIES OF THE CREDIT UNION AND ADDRESS ANY AREAS OF CONCERN. FORM 990, PART VI, SECTION B, LINE 15 THE CREDIT UNION UTILIZES COMPEASE, A SOFTWARE APPLICATION LINKED TO CURRENT SALARY SURVEY DATA, TO ESTABLISH COMPENSATION LEVELS FOR EACH CREDIT UNION POSITION. COMPENSATION FOR OFFICERS AND KEY EMPLOYEES IS BASED UPON COMPEASE EVALUATIONS, A CANDIDATE'S SALARY HISTORY, AND THE SALARY JUDGED NECESSARY TO ATTRACT QUALIFIED CANDIDATES BASED UPON THEIR SKILLS AND EXPERIENCE. FORM 990, PART VI, SECTION C, LINE 19 AUDITED FINANCIAL STATEMENTS ARE PROVIDED TO THE MEMBERSHIP AT EACH ANNUAL MEETING. UNAUDITED FINANCIAL STATEMENTS ARE POSTED MONTHLY AT EACH BRANCH LOCATION FOR PUBLIC VIEWING. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 9: ADJUSTMENT FOR SALE OF AFS WITH UNREALIZED GAINS -362,917. NET UNREALIZED HOLDING GAINS 706,531. USE AFFILIATED SERVICES CORPORATION 10120 PACIFIC HEIGHTS BLVD SUITE 10 SAN DIEGO CA 92121 330309047 INSURANCE SERVICES CA UNIVERSITY & STATE EMPLOYEES CREDIT UNION C -2620 60693 1.00000 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 1 0 0