2013-09-13T17:45:34-05:00 2012-12-31 954083485 TURNER WARREN HWANG & CONRAD ACCTCY 100 NORTH FIRST ST STE 202 BURBANK CA 91502 990 2012-01-01 951682200 ARROWHEAD CENTRAL CREDIT UNION ARRO 9093796572 PO BOX 735 SAN BERNARDINO CA 92402 TONY SAWAYA 9093796572 2013-09-06 1 VALENTINO CREUS CPA P01054153 8189549700 2012 2016-02-24 21:20:13Z DARIN WOINAROWICZ PO BOX 735 SAN BERNARDINO CA 92402 63999224 0 X WWW.ARROWHEADCU.ORG X CREDIT UNION 1949 CA A COOPERATIVE, ORGANIZED FOR THE PURPOSE OF PROMOTING THRIFT AND SAVINGS AMONG ITS MEMBERS. 1 1 348 0 823288 -144747 0 0 64485056 57506899 756454 1812679 290740 167428 65532250 59487006 0 5000 0 0 10917391 12597400 0 0 0 29606292 21366109 40523683 33968509 25008567 25518497 660101997 699814393 615710107 636548551 44391890 63265842 X A COOPERATIVE, ORGANIZED FOR THE PURPOSE OF PROMOTING THRIFT AND SAVINGS AMONG ITS MEMBERS, CREATING A SOURCE OF CREDIT FOR THEM AT RATES OF INTEREST SET BY THE BOARD OF DIRECTORS, 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, ARROWHEAD CENTRAL CREDIT UNION CONDUCTS ITS BUSINESS FOR THE MUTUAL BENEFIT AND GENERAL WELFARE OF ITS MEMBERS WITH THE EARNINGS, SAVINGS, BENEFITS, OR SERVICES OF THE CREDIT UNION BEING DISTRIBUTED TO ITS MEMBERS AS PATRONS. 0 0 FINANCIAL SERVICES TO SOUTHERN CALIFORNIA - AT DECEMBER 31, 2012 WE HAD 115,989 MEMBERS, 26,325 LOANS, AND 166,872 SHARE ACCOUNTS. 0 0 0 0 0 0 0 0 0 1 0 1 0 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 14125 0 1 348 1 1 1 0 0 0 0 0 0 0 X 1 1 0 1 0 0 1 1 1 1 1 0 1 1 0 1 1 1 1 1 1 1 0 CA X TONY SAWAYA SVP & CFO 9093796897 550 EAST HOSPITALITY LANE STE 200 SAN BERNARDINO CA 92408 WOINAROWICZ DARIN 40.00 X 298210 0 27292 TANIOS SAWAYA 40.00 X 134472 0 13394 VAUGHN BOOK 40.00 X 167593 0 10878 ROBERTO MARTINEZ 40.00 X 162246 0 3103 MICHELE MEGILL 40.00 X 152069 0 15076 JASON HOWARD 40.00 X 123125 0 2759 BELINDA JUAREZ 40.00 X 108518 0 16803 EMILY FRIESEN 40.00 X 116199 0 6150 KATHLEEN BLANCHARD 40.00 X 108738 0 1180 1371170 0 96635 9 0 1 0 BUCHALTER NEMER 1000 WILSHIRE BOULEVARD SUITE 1500 LOS ANGELES CA 900172457 LEGAL 385504 ONLINE RESOURCES CORPORATION 4795 MEADOW WOOD LANE CHANTILLY VA 20151 BANKING SERVICES 379929 DIEBOLD INCORPORATED 5995 MAYFAIR ROAD NORTH CANTON OH 44720 ATM/TRANSACTION SERVICES 359140 JACK HENRY & ASSOCIATES INC PO BOX 807 MONETT MO 657088215 DATA PROCESSING SERVICES 352164 SIDEPATH INC 4 VENTURE SUITE 305 IRVINE CA 92618 NETWORK STORAGE SERVICES 333908 18 INTEREST ON LOANS 522100 30496458 30496458 FEE INCOME 522100 14998569 14175281 823288 OTHER OPERATING INCOME 522100 12011872 12011872 57506899 870947 870947 159833 0 159833 159833 159833 5453950 4512218 941732 941732 941732 OTHER NON OPERATING INCOME 522100 7595 7595 7595 59487006 58663718 823288 0 5000 1371170 9116629 689896 537291 882414 452776 209471 297861 351657 7345165 1042268 1824137 48085 1546147 984140 595113 PROV FOR LOAN LOSSES 3934206 MISCELLANEOUS OPERATING 1744326 LOAN SERVICING EXPENSE 927338 OPERATING FEES 63419 33968509 12432275 12773120 176479213 114091798 206309 894188 866970 39982407 26381984 13327350 13600423 17553935 167718476 430883558 384020407 8325169 6743199 660101997 699814393 20407689 24148764 595302418 612399787 615710107 636548551 X 0 0 0 0 44391890 63265842 44391890 63265842 660101997 699814393 X 25518497 164895 -6809440 X X 0 1 X 1 0 6868704 6868704 10459105 5150716 5308389 2568337 2522939 45398 15764130 14396352 1367778 4322131 4311977 10154 13600423 ALL OTHER INVESTMENT 2373000 F NET LOANS TO MEMBERS 368008225 F LOANS HELD FOR SALE 535836 F NCUA SHARE INSURANCE DEPOSIT 6264346 F MEMBERSHIP CAPITAL 600000 F DEPOSITS IN COMMERICAL BANKS 6239000 F 384020407 MEMBERS' SHARE & SAVINGS ACCOUNTS 612399787 612399787 X DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X, LINE 2: FASB 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 DEEMED TO NOT MEET THE MORE-LIKELY-THAN-NOT THRESHOLD WOULD BE RECORDED AS A TAX EXPENSE AND LIABILITY IN THE CURRENT YEAR. THE CREDIT UNION IS NOT SUBJECT TO EXAMINATION BY U.S. FEDERAL TAX AUTHORITIES FOR TAX YEARS BEFORE 2007 AND BY STATE TAX AUTHORITIES FOR TAX YEARS BEFORE 2006. FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011, MANAGEMENT HAS DETERMINED THAT THE CREDIT UNION HAS NO MATERIAL UNCERTAIN TAX POSITIONS, AND ACCORDINGLY, THE CREDIT UNION HAS NOT RECORDED A LIABILITY FOR THE PAYMENT OF INTEREST OR PENALTIES. X X 1 1 X X X 1 0 0 WOINAROWICZ DARIN 293190 0 500 0 4520 0 3542 0 23750 0 325502 0 0 0 VAUGHN BOOK 167048 0 500 0 45 0 2584 0 8294 0 178471 0 0 0 ROBERTO MARTINEZ 161727 0 500 0 19 0 2822 0 281 0 165349 0 0 0 MICHELE MEGILL 151520 0 500 0 49 0 2860 0 12216 0 167145 0 0 0 PART I, LINE 4A ELSA MONTES RECEIVED A SEVERANCE PAYMENT IN THE AMOUNT OF $14,942 IN 2012. CURT RUTHER RECEIVED A SEVERANCE PAYMENT IN THE AMOUNT OF $4,038 IN 2012. FORM 990, PART VI, SECTION A, LINE 3 AND FORM 990, PART I, LINE 6: CONSERVATORSHIP: EFFECTIVE JUNE 25, 2010, IN ACCORDANCE WITH THE FEDERAL CREDIT UNION ACT, THE NCUA BOARD PLACED THE CREDIT UNION UNDER CONSERVATORSHIP AND APPOINTED ITSELF AS CONSERVATOR. UPON ITS APPOINTMENT, THE CONSERVATOR IMMEDIATELY SUCCEEDED TO ALL RIGHTS, TITLES, POWERS AND PRIVILEGES OF THE CREDIT UNION, AND OF ANY MEMBER, OFFICER, OR DIRECTOR WITH RESPECT TO THE CREDIT UNION AND ITS ASSETS AND BEGAN CONDUCTING ALL BUSINESS OF THE CREDIT UNION. THE NCUA BOARD APPOINTED A PRINCIPAL AGENT AND SEVERAL SUB-AGENTS. IN ADDITION, THE CONSERVATOR HAS APPOINTED A CHIEF EXECUTIVE OFFICER AND OTHER MANAGEMENT TO CONDUCT DAY-TO-DAY OPERATIONS. THE CONSERVATORSHIP HAS NO SPECIFIC TERMINATION DATE, AND THERE ARE NO ASSURANCES AS TO WHEN OR HOW IT WILL BE TERMINATED OR WHAT THE CREDIT UNION'S BUSINESS STRUCTURE WILL BE FOLLOWING THE CONSERVATORSHIP. MEMBERS HAVE RECEIVED ASSURANCE FROM THE PRINCIPAL AGENT THAT THE SAFETY OF SAVINGS AND CUSTOMARY ARRAY OF SERVICES WILL NOT BE AFFECTED. MAINTAINING CONTINUED NORMAL OPERATIONS OF ALL CORE SERVICES IS A PARAMOUNT OBJECTIVE. MANAGEMENT IS ACTIVELY OPERATING UNDER A STRATEGIC PLAN TO RESTORE THE NET WORTH OF THE CREDIT UNION. EFFECTIVE MAY 23, 2013, ARROWHEAD CENTRAL CREDIT UNION WAS RELEASED FROM CONSERVATORSHIP AND ELECTED A NEW BOARD OF DIRECTORS. FORM 990, PART VI, SECTION A, LINE 6 ARROWHEAD CENTRAL 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. ARROWHEAD CENTRAL CREDIT UNION DOES NOT HAVE STOCKHOLDERS. FORM 990, PART VI, SECTION A, LINE 7A THE GOVERNING BOARD OF ARROWHEAD CENTRAL CREDIT UNION IS COMPRISED OF VOLUNTEER MEMBERS WHO ARE DIRECTLY ELECTED BY ITS MEMBERS. EACH MEMBER OF THE GOVERNING BOARD SERVES FOR A PERIOD AS PRESCRIBED BY OUR BY-LAWS. AS OF JUNE 25, 2010, ARROWHEAD CENTRAL CREDIT UNION IS UNDER CONSERVATORSHIP BY THE NCUA. PURSUANT TO THE CONSERVATORSHIP, THE BOARD MEMBERS WERE REMOVED AND REPLACED BY A SINGLE AGENT ACTING ON BEHALF OF THE NCUA. EFFECTIVE MAY 23, 2013, ARROWHEAD CENTRAL CREDIT UNION WAS RELEASED FROM CONSERVATORSHIP AND ELECTED A NEW BOARD OF DIRECTORS. 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. AS OF JUNE 25, 2010, ARROWHEAD CENTRAL CREDIT UNION IS UNDER CONSERVATORSHIP BY THE NCUA. PURSUANT TO THE CONSERVATORSHIP, THE BOARD MEMBERS WERE REMOVED AND REPLACED BY A SINGLE AGENT ACTING ON BEHALF OF THE NCUA. EFFECTIVE MAY 23, 2013, ARROWHEAD CENTRAL CREDIT UNION WAS RELEASED FROM CONSERVATORSHIP AND ELECTED A NEW BOARD OF DIRECTORS. FORM 990, PART VI, SECTION B, LINE 11 THE RETURN PREPARER E-MAILS A DRAFT OF THE FORM 990 TO THE ORGANIZATION'S CFO FOR HIS REVIEW. THE CFO PRESENTS ANY QUESTIONS, COMMENTS, OR CORRECTIONS TO THE RETURN PREPARER. UPON SATISFACTORY COMPLETION OF THE FORM 990, THE ORGANIZATION'S AUTHORIZED INDIVIDUAL PRESENTS THE RETURN TO THE BOARD OF DIRECTORS AND SIGNS THE APPROPRIATE SIGNATURE FORM(S) TO AUTHORIZE THE ELECTRONIC FILING OF THE RETURN. A COPY OF THE FORM 990, AS FILED, IS PROVIDED BY THE RETURN PREPARER TO THE ORGANIZATION'S CEO OR OTHER DESIGNATED INDIVIDIUAL(S). FORM 990, PART VI, SECTION B, LINE 12C FOR DIRECTORS, THE VOLUNTEER CODE OF PERSONAL AND BUSINESS CONDUCT (POLICY 1.16) (12 PAGES) REQUIRES ANNUAL, AT A MINIMUM, WRITTEN ACKNOWLEDGEMENT AND DISCLOSURE OF POTENTIAL CONFLICTS OF INTEREST. FOR OFFICERS AND KEY EMPLOYEES, THE EMPLOYEE HANDBOOK, GENERAL POLICIES, CODE OF PERSONAL AND BUSINESS CONDUCT (13 PAGES) REQUIRES DISCLOSURE OF OUTSIDE INTERESTS WHENEVER AN ACTIVITY MAY BE CONTRARY TO THE BEST INTEREST OF THE CREDIT UNION. ALL EMPLOYEES ARE REQUIRED TO SIGN A WRITTEN ACKNOWLEDGEMENT OF THE RECEIPT OF THE CODE OF PERSONAL AND BUSINESS CONDUCT AND OF ANY SUBSEQUENT CHANGES THERETO. VIOLATIONS MAY SUBJECT THE EMPLOYEE TO DISCIPLINARY MEASURES, UP TO AND INCLUDING TERMINATION. FORM 990, PART VI, SECTION B, LINE 15 THE COMPENSATION COMMITTEE IS APPOINTED BY THE BOARD OF DIRECTORS. THE COMMITTEE GATHERS SALARY DATA AND OTHER DATA FROM OUTSIDE SOURCES. AFTER ANALYSIS AND REVIEW, THE COMMITTEE MAKES A SALARY RECOMMENDATION TO THE BOARD OF DIRECTORS. THE BOARD VOTES ON THE RECOMMENDATION, ALL OF WHICH IS DOCUMENTED IN NORMAL MEETING MINUTES. THE PRESIDENT ASSESSES THE PERFORMANCE OF THE OFFICERS AS MEASURED AGAINST ORGANIZATION METRICS WHICH MAY INCLUDE NET WORTH, EXPENSE RATIO, CAMEL RATING, AND ROA. MERIT INCREASES ARE ADMINISTERED IN ACCORDANCE WITH COMPENSATION GUIDELINES APPROVED BY THE BOARD OF DIRECTORS. FORM 990, PART VI, SECTION C, LINE 19 THE NCUA 5300 CALL REPORT IS AVAILABLE TO THE PUBLIC ON THE NCUA WEBSITE. THE CREDIT UNION'S FINANCIALS ARE POSTED AT EACH BRANCH LOCATION. ANY MEMBER MAY REQUEST TO SEE BOARD MEETING MINUTES. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 9: CHANGE IN ACCUMULATED OTHER COMPREHENSIVE INCOME -6,889,419. VARIANCE DUE TO CHANGE IN REPORTED FROM SEPARATE TO CONSOLIDATED 79,979. FORM 990, PART XII, LINE 2C: THE ORGANIZATION HAS NOT CHANGED EITHER ITS OVERSIGHT PROCESS OR SELECTION PROCESS DURING THE TAX YEAR. ARROWHEAD FINANCIAL GROUP INC 550 E HOSPITALITY LANE SAN BERNARDINO CA 92408 330082959 INSURANCE CA ARROWHEAD CENTRAL CREDIT UNION C 18772 557668 1.00000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0