2024-10-16T12:26:29-05:00 2023-12-31 410746749 CLIFTONLARSONALLEN LLP 20 EAST THOMAS ROAD SUITE 2300 PHOENIX AZ 85012 990 2023-01-01 952015359 COASTHILLS CREDIT UNION COAS 8057337600 1075 E BETTERAVIA SANTA MARIA CA 93454 DENNIS DURFEE EVP, CHIEF FINANCIAL OFFICER 8057337600 2024-10-16 1 1 MELISSA HANGSLEBEN P02087031 6022662248 2024-10-16 2023 2024-10-15 13:58:12Z PAUL C COOK 1075 E BETTERAVIA SANTA MARIA CA 93454 100235358 0 X WWW.COASTHILLS.COOP X 1958 CA SERVE MEMBERS WITH FINANCIAL PRODUCTS AND SUPERIOR CUSTOMER SERVICE TO HELP THEM ACHIEVE THEIR FINANCIAL GOALS. 9 9 389 14 200211 0 0 2911839 72435710 85854598 4694468 7518751 -275775 -415731 76854403 95869457 253430 379162 6231741 15559524 33539214 31411204 0 0 0 29989798 44454243 70014183 91804133 6840220 4065324 1828708068 1783506274 1700920334 1652452034 127787734 131054240 MAKING A POSITIVE DIFFERENCE IN OUR NEIGHBORS' LIVES. 0 0 SINCE 1958, COASTHILLS CREDIT UNION HAS BEEN IMPROVING THE FINANCIAL WELL BEING OF CENTRAL COAST FAMILIES WITH LOAN AND DEPOSIT PRODUCTS WITH LOWER FEES AND BETTER RATES THAN MOST BANKS. THE CREDIT UNION SERVES OVER 75,000 MEMBERS IN VENTURA, SANTA BARBARA, SAN LUIS OBISPO, MONTEREY, AND SANTA CRUZ COUNTIES. 0 1 0 0 0 0 0 0 0 1 1 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 1 0 1 0 1 0 0 0 0 0 0 0 0 1 0 0 0 1 18814 0 1 389 1 1 1 0 0 0 0 0 0 0 X 9 9 0 0 0 0 1 1 1 1 1 0 1 1 0 1 1 1 1 1 1 1 0 CA X DENNIS DURFEE 8057337600 1075 E BETTERAVIA SANTA MARIA CA 93454 PAUL C COOK CEO/PRESIDENT 40.00 X 568717 0 20774 BRUCE A ALTHEIDE CHIEF WEALTH OFFICER 40.00 X 498177 0 33235 DAVID L SALM THRU 71923 CHIEF ADMINISTRATIVE OFFICER 40.00 X 517508 0 5841 PAMELA RASMUSSEN EVP, CHIEF OPERATING OFFICER 40.00 X 418897 0 28717 JAMES LEDFORD CHIEF EXPERIENCE OFFICER 40.00 X 348587 0 38341 CATHERINE AMUNDSON SVP OPERATIONS AND COMPLIANCE 40.00 X 321649 0 30809 TIMOTHY JENSEN THRU 9823 EVP, CHIEF FINANCIAL OFFICER 40.00 X 298383 0 22175 CHERYL GARNSEY SVP HUMAN RESOURCES 40.00 X 270196 0 24077 SCOTT T DOI FVP MEMBER EXPERIENCE 40.00 X 238696 0 24909 SCOTT OLSON SVP CHIEF DATA OFFICER 40.00 X 224061 0 29049 VICTOR JON JASPER SVP LENDING 40.00 X 235136 0 17944 EDWIN HWANG FVP FINANCE 40.00 X 222299 0 11838 JOESPH BONNER CHIEF ADMINISTRATIVE OFFICER 40.00 X 176562 0 5074 DANIEL WALLS THRU 42523 CHIEF CREDIT OFFICER 40.00 X 162607 0 18668 DENNIS DURFEE EVP, CHIEF FINANCIAL OFFICER 40.00 X 131843 0 3484 KRISTOPHER L ANDREWS CHAIRMAN 6.00 X X 0 0 0 HOMERO CONTRERAS VICE CHAIRMAN 6.00 X X 0 0 0 JEREMY MORENO TREASURER 6.00 X X 0 0 0 BERNARD E JONES SECRETARY 6.00 X X 0 0 0 JEANNE PIPER DIRECTOR 6.00 X 0 0 0 R BRUCE COGGIN DIRECTOR 6.00 X 0 0 0 ARTHUR C SCHEITHAUR JR DIRECTOR 6.00 X 0 0 0 EARL MURRAY DIRECTOR 6.00 X 0 0 0 WILLIAM H ANDERS DIRECTOR 6.00 X 0 0 0 4633318 0 314935 77 0 1 0 RK BUILDERS INC 7343 EL CAMINO REAL 116 ATASCADERO CA 93422 REMODELING SERVICES 3370537 NCR VOYIX CORPORATION PO BOX 740641 LOS ANGELES CA 90074 MAINTENANCE OF ATM AND ITMS 2207849 DIGITAL WEST PO BOX 31001-2714 PASADENA CA 91110 NETWORK SERVICE PROVIDER 1204605 JACK HENRY & ASSOCIATES PO BOX 609 MONETT MO 65708 CORE PROCESSING SOFTWARE & MAINTENANCE 800475 SPECTRE SECURITY INC 409 APPALOOSA DR PASO ROBLES CA 93446 SECURITY SERVICES 412902 39 2911839 2911839 INTEREST ON LOANS TO MEMBERS 522100 67572793 67572793 INTERCHANGE INCOME 522100 6756422 6756422 FEES AND CHARGES 522100 4247755 4074693 173062 COURTESY PAY PROGRAM FEES 522100 2951520 2951520 OTHER NONINTEREST INCOME 522100 2604063 2581784 22279 1722045 1717175 4870 85854598 7561370 7561370 628754 1044485 -415731 -415731 -415731 3278797 3321416 -42619 -42619 -42619 95869457 85654387 200211 7103020 379162 15559524 3531727 20387949 914694 4666763 1910071 647369 419633 2666456 674217 3134100 2168433 3732443 488204 127855 8149331 1589585 PROVISION FOR LOAN LOSS 10937805 MISCELLANEOUS EXPENSES 3603446 PROCESSING EXPENSES 2258735 REMOTE ACCESS FEES 1781538 2075093 91804133 24573820 24624879 24929270 100062952 2797656 2096711 19411321 16803848 1363546123 1265471456 2133431 2101402 63940977 20727554 44128615 43213423 50938175 49672846 254309309 223051124 41940348 56407633 1828708068 1783506274 11381660 10899769 214700000 207500000 1474838674 1434052265 1700920334 1652452034 X 0 0 0 0 127787734 131054240 127787734 131054240 1828708068 1783506274 X 4065324 1880625 -2679443 X 0 1 X 1 0 RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 4583856 4583856 40011609 7533309 32478300 5570324 3506328 2063996 13775188 9687917 4087271 43213423 FHLB STOCK 7363300 C HELD-TO-MATURITY 215687824 C 223051124 MEMBERS' SHARE AND SAVINGS ACCOUNTS 1416299854 DEFERRED COMPENSATION LIABILITY 2865244 LEASE LIABILITY 14887167 1434052265 X 96913942 0 96913942 -1044485 -1044485 95869457 92848618 1044485 1044485 91804133 0 91804133 PART X, LINE 2: THE CREDIT UNION IS EXEMPT, UNDER INTERNAL REVENUE CODE 501(C)(14), FROM FEDERAL AND STATE INCOME TAXES. THE CREDIT UNION HAS FILED TAX RETURNS IN THE PAST FOR ACTIVITIES IT HAS DEEMED TAXABLE THAT HAVE RESULTED IN NO TAXES PAID FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022. 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 RESULTING FROM TAXING AUTHORITIES IMPOSING INCOME TAXES ON THE NET TAXABLE INCOME FROM ACTIVITIES POTENTIALLY DEEMED TO BE UNRELATED TO THE CREDIT UNION'S EXEMPT PURPOSE IS NOT EXPECTED TO HAVE A MATERIAL EFFECT ON THE CREDIT UNION'S FINANCIAL POSITION OR RESULTS OF OPERATIONS. THE CREDIT UNION EVALUATED ITS TAX POSITIONS AND DETERMINED NO UNCERTAIN TAX POSITIONS EXIST AS OF DECEMBER 31, 2023 AND 2022. THE CREDIT UNION'S 2020 THROUGH 2022 TAX YEARS ARE OPEN FOR EXAMINATION BY FEDERAL AND STATE TAXING AUTHORITIES. PART XI, LINE 4B - OTHER ADJUSTMENTS: RENTAL EXPENSES MOVED FROM EXPENSES TO STATEMENT OF REVENUE -1,044,485. PART XII, LINE 2D - OTHER ADJUSTMENTS: RENTAL EXPENSES MOVED FROM EXPENSES TO STATEMENT OF REVENUE 1,044,485. 1 ALLAN HANCOCK COLLEGE FOUNDATION PO BOX 5170 SANTA MARA CA 93456 953143396 501(C)(3) 52000 0 GENERAL SUPPORT BOYS AND GIRLS CLUB OF CENTRAL COAST 901 NORTH RAILROAD AVE SANTA MARIA CA 93458 952468116 501(C)(3) 24500 0 GENERAL SUPPORT CHILDREN'S MIRACLE NETWORK 18400 VON KARMAN AVE STE 9 IRVINE CA 92612 870387205 501(C)(3) 15000 0 GENERAL SUPPORT GOOD SAMARITAN SHELTER PO BOX 5908 SANTA MARIA CA 93456 770133375 501(C)(3) 15000 0 GENERAL SUPPORT NORTHERN SANTA BARBARA COUNTY UNITED WAY PO BOX 947 SANTA MARIA CA 93456 956006513 501(C)(3) 15000 0 GENERAL SUPPORT LOMPOC UNIFIED SCHOOL DISTRICT 1301 NORTH A STREET LOMPOC CA 93436 770070786 CITY OF LOMPOC 13025 0 GENERAL SUPPORT LOMPOC HOSPITAL FOUNDATION PO BOX 883 LOMPOC CA 934380883 770262454 501(C)(3) 11500 0 GENERAL SUPPORT COASTHILLS COMMUNITY FOUNDATION PO BOX 8000 SANTA MARIA CA 93456 421676256 501(C)(3) 11207 0 GENERAL SUPPORT ARROYO GRANDE COMMUNITY HOSPITAL FOUNDATION 345 SOUTH HALCYON RD ARROYO GRANDE CA 93420 203256066 501(C)(3) 10400 0 GENERAL SUPPORT 16TH DISTRICT AGRICULTURAL ASSOCIATION PO BOX 8 PASO ROBLES CA 93477 956002953 10000 0 GENERAL SUPPORT CUESTA COLLEGE FOUNDATION PO BOX 8106 SAN LUIS OBISPO CA 93403 237225601 501(C)(3) 10000 0 GENERAL SUPPORT 30FSSNAF BUILDING 11777 B 2091031 CALIFORNIA BLVD VANDERBERG SFB CA 93437 952214303 10000 0 GENERAL SUPPORT VANDENBERG FIRST SERGEANT COUNCIL 6 CALIFORNIA BLVD VANDENBERG SFB CA 934376223 311679606 10000 0 GENERAL SUPPORT SANTA MARIA YMCA 3400 SKYWAY DR SANTA MARIA CA 93455 952158363 501(C)(3) 9500 0 GENERAL SUPPORT THE SALVATION ARMY 200 W COOK STREET SANTA MARIA CA 93454 941156347 501(C)(3) 9000 0 GENERAL SUPPORT LOAVES AND FISHES PO BOX 1720 PASO ROBLES CA 93447 770025618 501(C)(3) 9000 0 GENERAL SUPPORT ELKS RECREATION INC 2325 SKYWAY DRIVE STE H1 SANTA MARIA CA 93455 952485566 501(C)(4) 8000 0 GENERAL SUPPORT COURT APPOINTED SPECIAL ADVOCATES OF SAN LUIS OBISPO COUNTY INC 75 HIGUERA STREET 180 SAN LUIS OBISPO CA 93406 770316227 501(C)(3) 6100 0 GENERAL SUPPORT SANTA MARIA BREAKFAST ROTARY FOUNDATION PO BOX 1518 SANTA MARIA CA 93456 770411125 501(C)(3) 5750 0 GENERAL SUPPORT 15 4 PART I, LINE 2: COASTHILLS VERIFIES THE STATUS OF THE ORGANIZATION AS A REGISTERED 501(C)(3) OR OTHER TAX EXEMPT ORGANIZATION. OTHERWISE, WE IN GOOD FAITH ASSUME THAT THE ORGANIZATION IS USING THE FUNDS AS IT SAID IT WOULD, WHETHER IN ITS SPECIFIC REQUEST TO THE CREDIT UNION OR OTHER PUBLIC STATEMENTS. X X X 1 1 X X X X 1 1 0 PAUL C COOK CEO/PRESIDENT 493092 0 0 0 75625 0 14700 0 6074 0 589491 0 0 0 BRUCE A ALTHEIDE CHIEF WEALTH OFFICER 53216 0 4637 0 440324 0 25950 0 7285 0 531412 0 0 0 DAVID L SALM THRU 71923 CHIEF ADMINISTRATIVE OFFICER 117334 0 234563 0 165611 0 5443 0 398 0 523349 0 0 0 PAMELA RASMUSSEN EVP, CHIEF OPERATING OFFICER 333101 0 35547 0 50249 0 25950 0 2767 0 447614 0 0 0 JAMES LEDFORD CHIEF EXPERIENCE OFFICER 270612 0 41113 0 36862 0 25827 0 12514 0 386928 0 0 0 CATHERINE AMUNDSON SVP OPERATIONS AND COMPLIANCE 254852 0 27805 0 38992 0 25612 0 5197 0 352458 0 0 0 TIMOTHY JENSEN THRU 9823 EVP, CHIEF FINANCIAL OFFICER 202616 0 30543 0 65224 0 18425 0 3750 0 320558 0 0 0 CHERYL GARNSEY SVP HUMAN RESOURCES 207231 0 21702 0 41263 0 22647 0 1430 0 294273 0 0 0 SCOTT T DOI FVP MEMBER EXPERIENCE 187816 0 20210 0 30670 0 22200 0 2709 0 263605 0 0 0 SCOTT OLSON SVP CHIEF DATA OFFICER 176006 0 18355 0 29700 0 21764 0 7285 0 253110 0 0 0 VICTOR JON JASPER SVP LENDING 182910 0 20441 0 31785 0 15360 0 2584 0 253080 0 0 0 EDWIN HWANG FVP FINANCE 190668 0 13492 0 18139 0 10408 0 1430 0 234137 0 0 0 JOESPH BONNER CHIEF ADMINISTRATIVE OFFICER 161208 0 0 0 15354 0 3060 0 2014 0 181636 0 0 0 DANIEL WALLS THRU 42523 CHIEF CREDIT OFFICER 84559 0 27486 0 50562 0 16732 0 1936 0 181275 0 0 0 PART I, LINE 1A TRAVEL COMPANIONS HAVE BEEN AUTHORIZED FOR THE LEADERSHIP TEAM AND BOARD MEMBERS OF THE ORGANIZATION. PAYMENT FOR TRAVEL IS REPORTED ON THE W-2 FOR THE LEADERSHIP TEAM AND ON THE 1099 FOR BOARD MEMBERS. THE ORGANIZATION MADE GROSS-UP PAYMENTS ON THE AUXILIARY AND EXECUTIVE BOARD'S W-2. THE PRESIDENT/CEO HAD A GYM MEMBERSHIP THAT WAS ACTIVE AT THE BEGINNING OF 2023 BUT WAS TERMINATED LATER IN THE YEAR. PAYMENT FOR THE MEMBERSHIP WAS MADE THROUGH THEIR W-2. PART I, LINES 4A-B SPLIT DOLLAR LIFE INSURANCE: THE CREDIT UNION HAS ENTERED INTO COLLATERAL ASSIGNMENT SPLIT DOLLAR (CASD) ARRANGEMENTS WITH CERTAIN CURRENT AND FORMER MEMBERS OF THE EXECUTIVE MANAGEMENT TEAM. THE LOANS ARE COLLATERALIZED BY THE ASSIGNMENT OF THE POLICY DEATH BENEFITS AND CASH VALUES OF EACH RESPECTIVE LIFE INSURANCE POLICY. THE CASD POLICIES ARE RECORDED AS ASSETS ON THE CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION AS THE LOAN BALANCE PLUS ACCRUED INTEREST. THE CASD ARRANGEMENT FOR ONE INDIVIDUAL INCLUDES A FULL RECOURSE PROVISION WHEREBY THE CREDIT UNION CAN SEEK REPAYMENT OF PRINCIPAL AND INTEREST FROM THE EMPLOYEE DIRECTLY IF THERE IS A SHORTFALL. ALL OTHER CASD ARRANGEMENTS ALSO HAVE RECOURSE PROVISIONS WHERE THE CREDIT UNION CAN SEEK REPAYMENT OF ANY SHORTFALL FROM THE EMPLOYEE. DAVID SALM, CHIEF ADMINISTRATIVE OFFICER, RECEIVED A SEVERENCE PAYMENT OF $91,113 DURING 2023. BRUCE ALTHEIDE CHIEF WEALTH OFFICER CREDIT CARD X 1061 1007 0 0 1 BRUCE ALTHEIDE CHIEF WEALTH OFFICER LINE OF CREDIT X 15000 2086 0 0 1 BRUCE ALTHEIDE CHIEF WEALTH OFFICER AUTO LOAN X 70223 17556 0 0 1 BRUCE ALTHEIDE CHIEF WEALTH OFFICER MORTGAGE X 396000 292512 0 0 1 BRUCE ALTHEIDE CHIEF WEALTH OFFICER CREDIT CARD X 7046 7046 0 0 1 PAUL C COOK PRESIDENT/CEO HELOC X 80000 112118 0 0 1 PAUL C COOK PRESIDENT/CEO MORTGAGE X 660000 604085 0 0 1 BERNARD JONES BOARD MEMBER CREDIT CARD X 25000 7304 0 0 1 JAMES LEDFORD CHIEF EXPERIENCE OFFICER AUTO LOAN X 49480 28472 0 0 1 JAMES LEDFORD CHIEF EXPERIENCE OFFICER AUTO LOAN X 35395 30198 0 0 1 JAMES LEDFORD CHIEF EXPERIENCE OFFICER CREDIT CARD X 30000 6940 0 0 1 ARTHUR SCHEITHAUER BOARD MEMBER CREDIT CARD X 17000 996 0 0 1 ARTHUR SCHEITHAUER BOARD MEMBER MORTGAGE X 225000 176975 0 0 1 EARL MURRAY BOARD MEMBER CREDIT CARD X 2451 2451 0 0 1 JEANNE PIPER BOARD MEMBER MORTGAGE X 35000 33802 0 0 1 JEANNE PIPER BOARD MEMBER CREDIT CARD X 19500 19500 0 0 1 RASMUSSEN PAMELA EVP CHIEF OPERATING OFFICER SPLIT DOLLAR LOAN X 2857000 2857000 0 1 1 COOK PAUL C PRESIDENT/CEO SPLIT DOLLAR LOAN X 9158800 9158800 0 1 1 COOK PAUL C PRESIDENT/CEO SPLIT DOLLAR LOAN X 1010000 1010000 0 1 1 WALLS DANIEL CHIEF CREDIT OFFICER SPLIT DOLLAR LOAN X 2435000 2435000 0 1 1 16803848 FORM 990, PART VI, SECTION A, LINE 1A THE CREDIT UNION HAS AN EXECUTIVE COMMITTEE THAT THE BOARD OF DIRECTORS APPOINT TO ACT AS EXPRESSLY APPROVED BY THE BOARD OF DIRECTORS IN ACCORDANCE WITH APPLICABLE LAWS, RULES AND REGULATIONS. FORM 990, PART VI, SECTION A, LINE 6 PARTICIPATION IN THIS CREDIT UNION IS LIMITED TO THOSE WHO QUALIFY FOR MEMBERSHIP AS DEFINED IN THE CREDIT UNION'S CHARTER AND BYLAWS. THIS GENERALLY CONSISTS OF INDIVIDUALS WHO LIVE, WORK, WORSHIP, OR GO TO SCHOOL WITHIN THE COUNTIES OF SANTA CRUZ, MONTEREY, SAN LUIS OBISPO, SANTA BARBARA OR VENTURA, CALIFORNIA, AS WELL AS ANY AND ALL BUSINESSES, CORPORATIONS, AND OTHER LEGAL ENTITIES LOCATED WITHIN THE COUNTIES OF SANTA CRUZ, MONTEREY, SAN LUIS OBISPO, SANTA BARBARA OR VENTURA, CALIFORNIA, WHO HAVE PETITIONED FOR MEMBERSHIP. IN ADDITION TO A REGULARLY QUALIFIED MEMBER, THE SPOUSE OF A MEMBER, THE BLOOD OR ADOPTIVE RELATIVES OF EITHER OF THEM AND THEIR SPOUSES MAY BE MEMBERS. FORM 990, PART VI, SECTION A, LINE 7A ALL HOLDERS OF BASIC SHARES ARE ALLOWED TO VOTE IN ANNUAL ELECTION FOR MEMBERS OF THE BOARD OF DIRECTORS AND SUPERVISORY COMMITTEE. FORM 990, PART VI, SECTION A, LINE 7B MATTERS CONCERNING THE ALLOWED NUMBER OF DIRECTORS, ABILITY OF THE MEMBERSHIP TO VOTE BY MAIL, OR DISSOLUTION OF THE CREDIT UNION REQUIRES APPROVAL BY THE MEMBERSHIP. FORM 990, PART VI, SECTION B, LINE 11B THE FORM 990 IS PREPARED BY THE ORGANIZATION'S PUBLIC ACCOUNTING FIRM BASED ON INFORMATION PROVIDED BY MANAGEMENT. ONCE THE DRAFT IS AVAILABLE, IT IS REVIEWED BY MANAGEMENT AND ANY CHANGES INCORPORATED INTO THE FILING. ONCE THIS DETAILED REVIEW IS COMPLETE, THE RETURN IS FILED WITH THE IRS. FORM 990, PART VI, SECTION B, LINE 12C LOANS TO OFFICERS, DIRECTORS, AND KEY EMPLOYEES ARE REPORTED QUARTERLY TO THE NCUA AND AGGREGATED BY SOCIAL SECURITY NUMBER. THE CREDIT UNION VETS PROSPECTIVE BOARD AND SUPERVISORY COMMITTEE MEMBERS FOR RELATIVES WHO ARE CREDIT UNION EMPLOYEES PRIOR TO BE ALLOWED ON THE BALLOT FOR ELECTION. WE ROUTINELY MONITOR SHARE AND LOAN ACCOUNTS FOR EMPLOYEES AND VOLUNTEERS. THE PARTIES AND PRINCIPALS MENTIONED IN CONTRACTS ARE REVIEWED FOR KNOWN RELATIONSHIPS WITH THE CREDIT UNION PRIOR TO SIGNING. PER THE CREDIT UNION'S CONFLICT OF INTEREST POLICY: A. SECTION 1205 BOARD OF DIRECTORS - 1D. LIMITATIONS I. MAY NOT BE COMPENSATED AS A DIRECTOR. II. NO PERSON MAY SERVE AS A VOTING MEMBER ON THE BOARD OF DIRECTORS IF THEIR IMMEDIATE FAMILY MEMBER IS A PAID COASTHILLS EMPLOYEE. III. MAY NOT SERVE AS A MEMBER OF THE BOARD OF DIRECTORS AND SUPERVISORY COMMITTEE AT THE SAME TIME. B. SECTION 1205 LOAN OFFICERS SECTION - 7C. LIMITATIONS I. LOAN OFFICERS MAY NOT DISBURSE FUNDS FOR LOANS THEY APPROVE II. LOAN OFFICERS MAY NOT APPROVE LOANS FOR HIS/HER IMMEDIATE FAMILY OR FOR ANY INDIVIDUAL WHOSE RELATIONSHIP WITH THE LOAN OFFICER REPRESENTS A CONFLICT OF INTEREST. IMMEDIATE FAMILY IS DEFINED IN SECTION 1150. C. SECTION 1205 NOMINATING COMMITTEE - 10C. QUALIFICATIONS. ANY MEMBER 18 OR OLDER MAY SERVE AS A BOARD MEMBER OR SUPERVISORY COMMITTEE MEMBER SUBJECT TO THE APPROVAL OF COASTHILLS BONDING COMPANY. HOWEVER, NO PERSON SHALL SERVE AS A DIRECTOR, OFFICER, COMMITTEE MEMBER, OR EMPLOYEE OF THE CREDIT UNION WHO HAS BEEN CONVICTED OF ANY CRIMINAL OFFENSE INVOLVING DISHONESTY OR BREACH OF TRUST. THE NOMINATING COMMITTEE IS ALSO REQUIRED TO CONSIDER THE FOLLOWING CRITERIA FOR ELIGIBILITY TO SERVE AS A BOARD MEMBER OR SUPERVISORY COMMITTEE MEMBER. I. NO NEGATIVE SHARES II. NO DELINQUENCY III. THE MEMBER HAS NOT FILED A LAWSUIT AGAINST COASTHILLS; HAS NOT THREATENED TO FILE A LAWSUIT AGAINST COASTHILLS; OR HAS SHARED AN UNFILED LAWSUIT. IV. NO CONFLICT OF INTEREST EXISTS THAT WOULD EFFECTIVELY PREVENT THE CANDIDATE FROM EXERCISING INDEPENDENT JUDGEMENT AND ACTING IN THE BEST INTEREST OF COASTHILLS. V. NO FORMER EMPLOYEE OF COASTHILLS CREDIT UNION CAN SERVE AS A BOARD OR SUPERVISORY COMMITTEE MEMBER UNTIL 3 YEARS HAVE PASSED FROM THEIR LAST DAY OF EMPLOYMENT. FORM 990, PART VI, SECTION B, LINE 15 THE PROCESS FOR DETERMINING COMPENSATION OF THE CEO AND KEY MANAGEMENT OFFICIALS INCLUDES EXECUTIVE COMPENSATION STUDIES, SOMETIMES MORE THAN ONE IN A GIVEN YEAR FROM DIFFERENT PROVIDERS. MCLAGAN, CUES, AND ALLEN DICK HAVE ALL PROVIDED RECENT CEO AND EXECUTIVE MANAGEMENT COMPENSATION INFORMATION TO THE CU. DATA RELATED TO THE CEO IS PRESENTED TO THE BOARD VIA THE BOARD HUMAN RESOURCES COMMITTEE. THESE DECISIONS ARE RECORDED IN THE BOARD EXECUTIVE COMMITTEE MINUTES AND CONFIRMED BY THE ENTIRE BOARD EXECUTIVE COMMITTEE. A MANAGEMENT COMPENSATION COMMITTEE THAT INCLUDES THE SVP/HR AS CHAIR AND EXECUTIVE TEAM MEMBERS VETS AND MAKES RECOMMENDATIONS TO THE EXECUTIVE TEAM FOR GENERAL EMPLOYEE COMPENSATION MATTERS, INCLUDING OFFICER COMPENSATION. IN CERTAIN CASES THE COMPENSATION COMMITTEE MAY MAKE DECISIONS AND REPORT THOSE TO THE EXECUTIVE TEAM, ESPECIALLY FOR ITEMS NOT OF A MATERIAL NATURE. THE EXECUTIVE TEAM IS THE MAIN INFLUENCE FOR DECISIONS WITH BROAD OR ORGANIZATION-WIDE IMPACT. AN ANNUAL PERFORMANCE REVIEW PROCESS IS IN PLACE THAT IS DOCUMENTED BY HR. ANNUALLY IT IS DECIDED IF MERIT AND/OR COST OF LIVING INCREASES WILL BE APPLIED. THE CU TAKES ADVANTAGE OF SALARY SURVEYS IN IT'S DECISIONS ON SALARY RANGES, COMPARATIOS, ETC. THE CURRENT SURVEY PROVIDER IS MCLAGAN. THIS DECISION IS THEN DOCUMENTED IN THE EMPLOYEE'S PERSONNEL FILE. FORM 990, PART VI, SECTION C, LINE 19 THE GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY AND FINANCIAL STATEMENTS ARE AVAILABLE UPON REQUEST. FORM 990, PART XI, LINE 9: CUMMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE -2,679,443. COASTHILLS WEALTH MANAGEMENT LLC 1075 E BETTERAVIA SANTA MARIA CA 93454 861097244 MANAGEMENT OF MEMBER INVESTMENT ACCOUNTS CA 0 572 COASTHILLS CREDIT UNION