2011-08-15T14:48:12-05:00 2010-12-31 RSM MCGLADREY INC 801 NICOLLET MALL SUITE 1100 MINNEAPOLIS MN 55402 990 2010-01-01 941189841 SCHOOLS FINANCIAL CREDIT UNION SCHO 9165695400 1485 RESPONSE ROAD NO 126 SACRAMENTO CA 95815 JAMES JORDAN 9165695400 2011-08-11 1 COLLIN F BUZZELL 6125738750 2010 2016-02-24 21:20:13Z JAMES JORDAN 1485 RESPONSE ROAD NO 126 SACRAMENTO CA 95815 64898000 0 1526 X WWW.SCHOOLS.ORG X 1933 CA TO PROVIDE MEMBERS WITH BETTER VALUE AND OUTSTANDING SERVICE. 7 7 329 26 701480 -128447 0 0 58114889 54528438 13596526 10369562 0 0 71711415 64898000 19488 18075 17189743 8970338 18577290 17954966 0 0 0 45114105 36883753 80900626 63827132 -9189211 1070868 1413405800 1317045042 1307484872 1210053020 105920928 106992022 X TO PROMOTE THRIFT AND SAVING AMONG MEMBERS, TO CREATE A SOURCE OF CREDIT FOR MEMBERS AT INTEREST RATES SET BY THE BOARD OF DIRECTORS, AND TO PROVIDE MEMBERS WITH AN OPPORTUNITY TO USE AND CONTROL THEIR MONEY ON A DEMOCRATIC BASIS IN ORDER TO IMPROVE THEIR ECONOMIC AND SOCIAL CONDITIONS. 0 0 SCHOOLS FINANCIAL CREDIT UNION (SFCU) IS A MEMBER-OWNED, NOT-FOR-PROFIT FINANCIAL COOPERATIVE DEDICATED TO SERVING THE FINANCIAL NEEDS OF ITS MEMBERS. ITS PURPOSE IS TO BE THE PRIMARY FINANCIAL INSTITUTION FOR COMMUNITY MEMBERS IN ITS SERVICE AREA. ITS MISSION IS TO PROVIDE MEMBERS WITH BETTER VALUE AND OUTSTANDING SERVICE. AS OF DECEMBER 31, 2010, SFCU HAD TWELVE BRANCHES, 114,920 MEMBERS, TOTAL ASSETS OF $1,317,045,042, TOTAL OUTSTANDING LOANS OF $641,053,125, AND TOTAL DEPOSITS OF $1,202,977,602. SFCU FOSTERS A CULTURE OF "PEOPLE HELPING PEOPLE" THROUGHOUT THE ORGANIZATION, AND ITS INTERACTION WITH MEMBERS EPITOMIZES THE STANDARDS OF ETHICAL BEHAVIOR. SFCU TREATS ALL MEMBERS WITH RESPECT AND DIGNITY AND PROVIDES SERVICES TO SAVERS AND BORROWERS IN A DEMOCRATIC FASHION. SFCU OFFERS ITS MEMBERS AN ECONOMIC ADVANTAGE COMBINED WITH COURTEOUS, COMPETENT AND TIMELY SERVICE. IT VALUES OPEN, HONEST, TWO-WAY COMMUNICATION WITH ITS MEMBERS. SFCU SOLICITS INPUT FROM ITS MEMBERS TO FACILITATE COMMUNICATION AND TO MEASURE SERVICE QUALITY.SFCU IS COMMITTED TO CONSTANTLY IMPROVING ITS OVERALL OPERATIONAL EFFICIENCY, ITS SERVICE DELIVERY CONVENIENCE AND THE LEVEL OF PROFESSIONAL SERVICE IT PROVIDES TO ITS MEMBERS. IT MEETS ITS MEMBERS' EXPECTATIONS FOR PRICE ADVANTAGE, QUALITY SERVICE AND CONVENIENCE BY REMAINING FINANCIALLY STRONG AND VIABLE.SFCU COMMUNICATES ITS SERVICES IN A MEANINGFUL WAY SO THAT MEMBERS, POTENTIAL MEMBERS, LEGISLATORS, REGULATORS AND THE COMMUNITY-AT-LARGE UNDERSTAND AND APPRECIATE THE UNIQUE ROLE THAT MEMBER-OWNED FINANCIAL COOPERATIVES PLAY IN THEIR LIVES. ITS COMMITMENT TO MEMBERS IS CONSISTENT WITH ITS PRINCIPLES OF "FOR SERVICE, NOT FOR PROFIT, NOT FOR CHARITY" AND ITS PHILOSOPHY OF "PEOPLE HELPING PEOPLE". THIS COMMITMENT REPRESENTS THE SOUND BUSINESS PRACTICES THAT ENSURE THE FINANCIAL STRENGTH OF SFCU FOR ITS MEMBERS. 0 0 0 0 0 0 1 0 1 1 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 1 42783 0 1 329 1 1 1 0 0 0 0 0 X 7 7 0 0 0 0 1 1 1 1 1 0 1 1 1 1 1 1 1 1 1 1 0 CA X X THE ORGANIZATION 9165695400 1485 RESPONSE ROAD NO 126 SACRAMENTO CA 95815 EUGENE J HOUGHTON JR 1.00 X X 0 0 0 RONALD E KRAMNIC 1.00 X X 0 0 0 ROBERT ALLEGRE 1.00 X X 0 0 0 MARIE B SMITH 1.00 X X 0 0 0 GLORIA L ROSS 1.00 X X 0 0 0 EMILIO MARTINEZ 1.00 X 0 0 0 THERESA MATISTA 1.00 X 0 0 0 DOLORES BLEEKMAN 1.00 X 0 0 0 JAMES JORDAN 40.00 X 478713 0 17803 JOHN J KOCUNIK 40.00 X 1090934 0 9718 TIMOTHY MARRIOTT 40.00 X 166943 0 17800 ERIC LINDSTROM 40.00 X 166761 0 12933 CHERYL HARRIS 40.00 X 168541 0 5963 ROY WORLEY 40.00 X 136447 0 15586 NATHAN SCHMIDT 40.00 X 140189 0 6819 LISA MACKAY 40.00 X 135139 0 6761 SANDRA PHARES 40.00 X 118621 0 13598 TOM KUANG 40.00 X 121083 0 7050 2723371 0 114031 12 0 1 0 DIEBOLD INC 5995 MAYFAIR ROAD NORTH CANTON OH 44720 ATM SERVICING 626320 RUBICON PROPERTY MANAGEMENT 3300 DOUGLAS BLVD SUITE 369 ROSEVILLE CA 95661 PROPERTY MANAGEMENT 363046 STYSKAL WIESE & MELCHIONE LLP 550 NORTH BRAND BLVD SUITE 550 GLENDALE CA 91203 LEGAL SERVICES 233897 LOOMIS 2500 CITY WEST BLVD SUITE 900 HOUSTON TX 77042 COURIER SERVICES 118549 4 LOAN INCOME 522100 39142470 39142470 FEE & SERVICE CHARGE I 522100 11961687 11961687 OTHER INCOME 524298 3424281 2722801 701480 54528438 10369562 10369562 64898000 53826958 701480 10369562 5850 12225 8970338 2136109 12185588 580242 1917590 1135437 398138 92000 31628 667506 3007415 4312066 76466 13737 469898 1797350 PROVISION FOR LOAN LOSS 14200000 OUTSIDE SERVICERS 5959046 MISCELLANEOUS EXPENSES 3091962 NCUA STABILIZATION ASSE 1598796 SUPPLIES 1167745 63827132 19209378 29550841 631000000 426000000 681552546 623462657 1064244 1056612 55328318 29610752 27618596 25717566 528558 150660247 52432478 60597119 1413405800 1317045042 5139292 7075418 438033 360453 100000000 1201907547 1202617149 1307484872 1210053020 X 0 0 0 0 105920928 106992022 105920928 106992022 1413405800 1317045042 X 1070868 226 X 0 1 1 X 0 0 1 4556863 4556863 16265868 4776019 11489849 13687955 7646025 6041930 19856507 17183900 2672607 961125 4808 956317 25717566 HELD TO MATURITY 150640797 C AVAILABLE FOR SALE SECURITIES 19450 F 150660247 MEMBER SHARES 1202617149 1202617149 64898000 63827132 1070868 226 226 1071094 PART IV, LINE 2B: THE ESCROW ACCOUNTS HOLD AMOUNTS COLLECTED WITH THE MEMBERS' MORTGAGE PAYMENTS THAT ARE TO BE USED TO PAY THOSE MEMBERS' HOMEOWNERS' INSURANCE PREMIUMS AND PROPERTY TAXES WHEN DUE. DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X: FOR THE YEAR ENDED DECEMBER 31, 2010 MANAGEMENT HAS DETERMINED THAT THERE ARE NO MATERIAL UNCERTAIN TAX POSITIONS. 1 SACRAMENTO FOOD BANK AND FAMILY SERVICES 3333 3RD AVENUE SACRAMENTO CA 95817 943315566 501(C)(3) 3500 2350 ACTUAL COST 5,000 BOTTLES OF WATER RUN TO FEED THE HUNGRY 1 NEWS 10 TEACHER OF THE YEAR 1 5000 NEWS 10 TEACHERS OF THE MONTH AWARDS 12 300 900 ACTUAL COST SPORTS BAG, MUG, NOTEPADS, PENS, PENCILS, HAND SANITIZER, CHAPSTICK, MINTS, CLIPS SACRAMENTO COUNTY OFFICE OF EDUCATION TEACHER AWARDS 15 575 950 ACTUAL COST SPORTS BAG, MUG, NOTEPADS, PENS, PENCILS, HAND SANITIZER, CHAPSTICK, MINTS, CLIPS SCHOOLS TEACHER AWARDS 5 2500 SCHOOLS STUDENT SCHOLARSHIPS 4 2000 PROCEDURE FOR MONITORING GRANTS IN THE U.S.: PART I, LINE 2: SCHEDULE I, PART I, LINE 2: THE CREDIT UNION DOES NOT MONITOR THE USE OF THE GRANT FUNDS. X X 0 1 0 JAMES JORDAN 444761 0 0 0 33952 0 0 0 17803 0 496516 0 0 0 JOHN J KOCUNIK 152654 0 0 0 938280 0 0 0 9718 0 1100652 0 0 0 TIMOTHY MARRIOTT 166608 0 0 0 335 0 0 0 17800 0 184743 0 0 0 ERIC LINDSTROM 165251 0 0 0 1510 0 0 0 12933 0 179694 0 0 0 CHERYL HARRIS 157700 0 0 0 10841 0 0 0 5963 0 174504 0 0 0 ROY WORLEY 135691 0 0 0 756 0 0 0 15586 0 152033 0 0 0 PART I, LINE 4B JOHN J. KOCUNIK RECEIVED A PAYOUT IN 2010 FROM A SERP PLAN IN THE AMOUNT OF $934,196. 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 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 EXECUTIVE COMMITTEE WILL REVIEW THE DRAFT OF THE FORM 990. THE COMPLETED FORM 990 WILL BE PROVIDED TO THE BOARD OF DIRECTORS PRIOR TO FILING. FORM 990, PART VI, SECTION B, LINE 12C THE CREDIT UNION HAS A WRITTEN CONFLICT OF INTEREST POLICY AND AN ANNUAL STATEMENT REGARDING CONFLICT OF INTEREST POLICY ("STATEMENT"). THE STATEMENT REQUIRES THE SIGNATORY TO ANNUALLY AFFIRM THAT HE/SHE HAS RECEIVED, READ, AND UNDERSTOOD THE CONFLICT OF INTEREST POLICY AND AGREES TO COMPLY WITH THE POLICY. THE STATEMENT ASKS A SERIES OF QUESTIONS DESIGNED TO REVEAL ANY POTENTIAL CONFLICTS OF INTEREST. THE SIGNATORY MUST EXPLAIN ANY POTENTIAL CONFLICTS OF INTEREST ON THE STATEMENT. THE MEMBERS OF THE BOARD OF DIRECTORS AND THE SUPERVISORY COMMITTEE, AS WELL AS THE CEO AND ALL OF THE VICE PRESIDENTS, MUST SIGN THE STATEMENT EACH YEAR. THE EXECUTIVE DEPARTMENT MAINTAINS A RECURRING EVENTS LIST TO ENSURE THAT THE ANNUAL STATEMENT REGARDING CONFLICT OF INTEREST POLICY IS SIGNED EVERY YEAR BY THE PERTINENT INDIVIDUALS. FORM 990, PART VI, SECTION B, LINE 15 PRESIDENT/CEO: THE EXECUTIVE COMMITTEE IS RESPONSIBLE FOR THE CEO'S SIX-MONTH INTERIM REVIEWS WITH A MORE FORMAL REVIEW BY THE BOARD OF DIRECTORS ANNUALLY. EACH DECEMBER, THE EXECUTIVE COMMITTEE PRESENTS TO THE BOARD OF DIRECTORS A RECOMMENDATION FOR THE PRESIDENT/CEO'S INTERIM MERIT RATING. THIS RECOMMENDATION WILL BE BASED ON THE PRESIDENT/CEO'S RESULTS DURING THE PRECEDING SIX MONTHS AND WILL BE STATED IN TERMS OF THE STANDARD SCHOOLS' PERFORMANCE CATEGORIES. EACH JUNE, THE EXECUTIVE COMMITTEE PRESENTS TO THE BOARD OF DIRECTORS A RECOMMENDATION FOR THE PRESIDENT/CEO'S ANNUAL MERIT RATING. THIS RECOMMENDATION WILL BE BASED ON THE PRESIDENT/CEO'S ANNUAL RESULTS AND WILL BE STATED IN TERMS OF THE STANDARD SCHOOLS' PERFORMANCE CATEGORIES. IN CONJUNCTION WITH THE MERIT RATING, THE EXECUTIVE COMMITTEE RECOMMENDS A SALARY INCREASE BASED ON THE CURRENT SCHOOLS' MERIT RATING CHART. THE BOARD OF DIRECTORS WILL ESTABLISH THE AMOUNT OF THE SALARY INCREASE (IF ANY) THAT WILL BE GRANTED TO THE PRESIDENT/CEO. THE MIDPOINT SALARY FOR THE PRESIDENT/CEO IS ESTABLISHED ANNUALLY BY CONSULTING THE TOP 25 HR EXECUTIVES' CEO SALARY SURVEY, THE EXECUTIVE COMPENSATION SOLUTIONS' (ECS) SUMMIT ROUND TABLE CEO COMPENSATION SURVEY, AND THE REWARD STRATEGIES GROUP'S (RSG) COMPENSATION SURVEY OF BILLION-DOLLAR CREDIT UNION CEOS. BASED ON THE RESULTS OF THESE SURVEYS, THE EXECUTIVE COMMITTEE WILL RECOMMEND A MIDPOINT ADJUSTMENT TO THE BOARD OF DIRECTORS, IF NECESSARY. THIS MIDPOINT IS EQUAL TO THE MEDIAN OF THE TOTAL CASH COMPENSATION SHOWN IN THE ABOVE MENTIONED SURVEYS. THE SCHOOLS' SALARY RANGE WILL EXTEND FROM 80% OF THE ESTABLISHED MIDPOINT TO 120% OF THAT MIDPOINT. OTHER OFFICERS AND KEY EMPLOYEES: THE PRESIDENT/CEO COMPLETES ANNUAL REVIEWS OF THE OTHER OFFICERS AND KEY EMPLOYEES. THE ANNUAL RESULTS OF THESE EMPLOYEES ARE EVALUATED IN TERMS OF THE STANDARD SCHOOLS' PERFORMANCE CATEGORIES. THE MIDPOINT SALARY FOR THESE EMPLOYEES IS ESTABLISHED ANNUALLY BY CONSULTING THE TOP 25 HR EXECUTIVES' SALARY SURVEY AND THE EXECUTIVE COMPENSATION SOLUTIONS' (ECS) SUMMIT ROUND TABLE COMPENSATION SURVEY. BASED ON THE RESULTS OF THESE SURVEYS, THE EXECUTIVE COMMITTEE WILL RECOMMEND A MIDPOINT ADJUSTMENT TO THE BOARD OF DIRECTORS, IF NECESSARY. THIS MIDPOINT IS APPROXIMATELY EQUAL TO THE MEDIAN FOR EACH EMPLOYEE'S RESPECTIVE POSITION AS SHOWN IN THE ABOVE MENTIONED SURVEYS. THE SCHOOLS' SALARY RANGE WILL EXTEND FROM 80% OF THE ESTABLISHED MIDPOINT TO 120% OF THAT MIDPOINT. FORM 990, PART VI, SECTION C, LINE 19 CREDIT UNION GOVERNING DOCUMENTS AND CONFLICT OF INTEREST POLICIES ARE AVAILABLE TO THE PUBLIC UPON REQUEST. THE CREDIT UNION ALSO PUBLISHES A BROCHURE WHICH DESCRIBES THE WAY IT CONDUCTS ITS BUSINESS. THE CREDIT UNION'S ANNUAL REPORTS CAN BE VIEWED ON ITS WEBSITE. THE BALANCE SHEET AND INCOME STATEMENT FOR THE MOST RECENTLY COMPLETED MONTH ARE POSTED IN EACH BRANCH. WE FILE A QUARTERLY 5300 REPORT WITH NCUA AND THE CALIFORNIA DEPARTMENT OF FINANCIAL INSTITUTIONS. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 5: NET UNREALIZED GAINS ON INVESTMENTS: 226. SCHOOLS FINANCIAL SERVICES CORPORATION 1485 RESPONSE ROAD SUITE 126 SACRAMENTO CA 95815 680389013 INVESTMENT CONSULTING CA N/A C 12240 172052 1.00000 0 0 0 0 0 0 0 0 1 0 0 0 0 1 0 1 0 0 SCHOOLS FINANCIAL SERVICES CORPORATION I 33158 ACTUAL AMOUNT SCHOOLS FINANCIAL SERVICES CORPORATION N 90681 ACTUAL AMOUNT SCHOOLS FINANCIAL SERVICES CORPORATION P 123768 ACTUAL AMOUNT