2024-11-06T16:59:20-06:00 2023-12-31 410746749 CLIFTONLARSONALLEN LLP 20 EAST THOMAS ROAD SUITE 2300 PHOENIX AZ 85012 990 2023-01-01 860100904 FIRST CREDIT UNION FIRS 4807565500 25 SOUTH ARIZONA PLACE 111 CHANDLER AZ 85225 JAY CURTIS PRESIDENT & CEO 4807565500 2024-10-25 1 1 MELISSA HANGSLEBEN P02087031 6022662248 2024-10-24 2023 2024-10-15 13:58:12Z JAY CURTIS 25 SOUTH ARIZONA PLACE 111 CHANDLER AZ 85225 39477423 0 X WWW.FIRSTCU.ORG X 1929 AZ NON-PROFIT COOPERATIVE THAT PROVIDES BANKING AND OTHER FINANCIAL SERVICES TO ITS MEMBERS. 7 6 183 10 482893 0 0 971886 24739055 30109586 4615857 8143503 1255831 57089 30610743 39282064 50400 69203 727850 3255502 11901764 13135327 0 0 0 13155397 18837532 25835411 35297564 4775332 3984500 711017037 703838970 669443228 658111321 41573809 45727649 NON-PROFIT COOPERATIVE THAT PROVIDES BANKING AND OTHER FINANCIAL SERVICES TO ITS MEMBERS. 0 0 FIRST CREDIT UNION WORKED TO GIVE BACK TO THE COMMUNITIES IT SERVES THROUGH LOWER FEES, BETTER RATES, BY IMPROVING ITS TECHNOLOGY PLATFORMS, BY PROVIDING FINANCIAL EDUCATION TO STUDENTS IN LOCAL SCHOOLS, BY WORKING WITH OUR MEMBERS TO RAISE MONEY AND SUPPLIES TO CHARITABLE CAUSES, AND BY WORKING TO IMPROVE OUR FINANCIAL SERVICES OFFERINGS TO OUR MEMBERS. 0 1 0 0 0 0 0 0 0 1 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 1 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 1 9823 0 1 183 1 1 1 0 0 0 0 0 0 0 X 7 6 0 0 0 0 1 1 1 1 1 0 1 1 1 1 1 1 1 1 1 1 0 X DOUGLAS ALLDREDGE 4807565500 25 SOUTH ARIZONA PLACE 111 CHANDLER AZ 85225 JAY CURTIS PRESIDENT/CEO/BOARD MEMBER 40.00 X X 902183 0 141173 CARYN HORVITZ-STRAUSS BOARD CHAIR 1.00 X X 5577 0 0 RUSS PUCKETT VICE CHAIR 1.00 X X 0 0 0 KENNETH MULLINS SECRETARY 1.00 X X 0 0 0 BEN TAN TREASURER 1.00 X X 4436 0 0 WILLIAM JIMRO DIRECTOR 1.00 X 0 0 0 BARRY SCHLEGEL DIRECTOR 1.00 X 0 0 0 LORI GALLEGOS EVP (THRU 3/31/2023) 40.00 X 344153 0 60063 DOUGLAS ALLDREDGE CFO 40.00 X 318748 0 98595 THOMAS GESSEL CNO 40.00 X 314866 0 73591 HEIDI KIM CXO 40.00 X 277370 0 76837 BENJAMIN RICKS VP/IT 40.00 X 183295 0 38405 THOMAS WASSON CLO (THRU 4/26/2023) 40.00 X 105735 0 66606 SCOT GILBREATH VP/RE LENDING 40.00 X 177689 0 31231 CHANTEL CAMPBELL VP/FINANCE 40.00 X 139407 0 33435 KRISTIN PARKER AVP/LENDING 40.00 X 128862 0 15909 LISA PETERS VP/COMPLIANCE & RISK 40.00 X 155229 0 20241 3057550 0 656086 14 0 1 0 THE ELEMENT GROUP INC 155 BREWERY LANE STE 1 PORTSMOUTH NH 03801 CONSTRUCTION SERVICES 1079937 Q2 SOFTWARE INC PO BOX 205970 DALLAS TX 75320 ONLINE BANKING SERVICES 867005 CAL IT GROUP LLC 19671 BEACH BLVD STE 205 HUNTINGTON BEACH CA 92648 IT TECHNICAL SUPPORT 631797 JACK HENRY AND ASSOCIATES INC 663 W HWY 60 MONETT MO 65708 CORE PROCESSOR SERVICES 429586 LENDERS PRO 1600 HORIZON DR STE 120 CHALFONT PA 18914 INDIRECT LENDING SERVICES 406884 22 971886 971886 INTEREST ON LOANS 522100 23154909 23154909 FEE INCOME 522100 4146420 3663527 482893 INTERCHANGE INCOME 522100 2808257 2808257 30109586 8271909 8271909 124042 66953 57089 57089 57089 128406 -128406 -128406 -128406 39282064 29626693 482893 8200592 69203 3255502 2839292 7914350 327098 1306245 748342 171472 67179 884371 694842 1235341 1379084 1635482 193402 146441 1078432 1045482 155498 PROVISION FOR LOAN LOSS 4940258 OTHER OPERATING EXPENSE 1746044 LOAN SERVICING 1704695 VISA DEBIT CARD EXPENSE 1054167 705342 35297564 20794067 24640776 36011828 64113404 152512 288291 8846347 8934812 411121244 396246320 7609525 8527938 29836456 18254674 10810897 11581782 178616171 156741919 21592815 17070761 15461631 15692967 711017037 703838970 6304522 7747055 20000000 45000000 643138706 605364266 669443228 658111321 X 0 0 0 0 41573809 45727649 41573809 45727649 711017037 703838970 X 3984500 2191424 -2022084 X 0 0 0 RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 2651987 2651987 10934536 5840091 5094445 3512226 1465966 2046260 12737707 10948617 1789090 11581782 MEMBERS SHARES AND SAVINGS ACCOUNTS 599825406 OPERATING LEASE LIABILITY 5538860 605364266 1 DOWNTOWN CHANDLER FARMERS MKT 3 S ARIZONA AVE CHANDLER AZ 85225 205900834 501(C)(3) 15000 0 UNRESTRICTED GOWEST FOUNDATION 501 NORTH 44TH ST STE 110 PHOENIX AZ 85008 911649328 501(C)(3) 7000 0 2023 AUCTION ICAN 650 E MORELOS ST CHANDLER AZ 85225 860761030 501(C)(3) 6000 0 2023 DREAMBIG PETER PAN PHOENIX CHILDREN'S HOSPITAL FOUNDATION 2929 E CAMELBACK RD SUITE 122 PHOENIX AZ 85016 742421549 501(C)(3) 6603 0 CANCER RESEARCH 4 0 PART I, LINE 2: THE CREDIT UNION MONITORS THE USE OF FUNDS BY ENSURING THE ORGANIZATION IS A 501(C)(3). THE CREDIT UNION ALSO REVIEWS THE ORGANIZATION'S STATED MISSION ALONG WITH PROGRAM OFFERINGS TO ENSURE THE AWARD IS CONSISTENT WITH THEIR MISSION. X 1 1 X X X X 1 1 0 JAY CURTIS PRESIDENT/CEO/BOARD MEMBER 505455 0 146582 0 250146 0 124313 0 16860 0 1043356 0 200000 0 DOUGLAS ALLDREDGE CFO 245375 0 50000 0 23373 0 72975 0 25620 0 417343 0 0 0 LORI GALLEGOS EVP (THRU 3/31/2023) 80000 0 35000 0 229153 0 36400 0 23663 0 404216 0 0 0 THOMAS GESSEL CNO 253275 0 50000 0 11591 0 55342 0 18249 0 388457 0 0 0 HEIDI KIM CXO 218750 0 50000 0 8620 0 53619 0 23218 0 354207 0 0 0 BENJAMIN RICKS VP/IT 163295 0 20000 0 0 0 14807 0 23598 0 221700 0 0 0 SCOT GILBREATH VP/RE LENDING 167000 0 10000 0 689 0 13856 0 17375 0 208920 0 0 0 LISA PETERS VP/COMPLIANCE & RISK 128042 0 17977 0 9210 0 11637 0 8604 0 175470 0 0 0 CHANTEL CAMPBELL VP/FINANCE 124918 0 12166 0 2323 0 10716 0 22719 0 172842 0 0 0 THOMAS WASSON CLO (THRU 4/26/2023) 53300 0 0 0 52435 0 57816 0 8790 0 172341 0 0 0 PART I, LINE 1A TRAVEL FOR COMPANIONS IS PAID FOR OFFICERS AND KEY EMPLOYEES, WHICH IS INCLUDED IN REPORTABLE COMPENSATION. PART I, LINES 4A-B THE FOLLOWING INDIVIDUAL RECEIVED A SEVERANCE PAYMENT DURING 2023 - LORI GALLEGOS, EVP - $229,153 SPLIT DOLLAR LIFE INSURANCE: THE CREDIT UNION HAS MADE LOANS FOR LIFE INSURANCE PREMIUM PAYMENTS TO CURRENT MEMBERS OF TOP MANAGEMENT. THE LOANS ARE COLLATERALIZED BY THE ASSIGNMENT OF THE POLICY DEATH BENEFITS AND CASH VALUES OF EACH RESPECTIVE LIFE INSURANCE POLICY. THE POLICIES ARE OWNED BY THE CURRENT EXECUTIVES AND THEY HAVE THE RIGHT TO NAME THE BENEFICIARIES FOR AMOUNTS NOT SECURED BY THE ASSIGNMENTS. THE CREDIT UNION MAINTAINS A 457(F) NON-QUALIFIED DEFERRRED COMPENSATION PLAN FOR A SELECT GROUP OF MANAGEMENT. PARTICIPANTS ARE ELIGIBLE BASED ON APPROVAL BY THE CREDIT UNION'S BOARD OF DIRECTORS. THE CREDIT UNION DID NOT MAKE ANY CONTRIBUTIONS TO THE 457(F) PLAN FOR THE PERIOD ENDED DECEMBER 31, 2023. THERE WAS ONE DISTRIBUTION MADE FROM THE 457(F) PLAN FOR THE PERIOD ENDED DECEMBER 31, 2023: JAY CURTIS: $200,000 DOUGLAS ALLDREDGE CFO SPLIT DOLLAR LIFE INSURANCE X 1614000 1667143 0 1 1 THOMAS GESSEL CNO SPLIT DOLLAR LIFE INSURANCE X 1043250 1068046 0 1 1 HEIDI KIM CXO SPLIT DOLLAR LIFE INSURANCE X 1002000 1034992 0 1 1 LORI GALLEGOS EVP SPLIT DOLLAR LIFE INSURANCE X 1739000 1796259 0 1 1 JAY CURTIS PRESIDENT/CEO/BOARD MEMBER SPLIT DOLLAR LIFE INSURANCE X 3261000 3368372 0 1 1 8934812 PART II, LOANS TO AND/OR FROM INTERESTED PERSONS SPLIT DOLLAR LIFE INSURANCE: THE CREDIT UNION HAS MADE LOANS FOR LIFE INSURANCE PREMIUM PAYMENTS TO CURRENT MEMBERS OF TOP MANAGEMENT. THE LOANS ARE COLLATERALIZED BY THE ASSIGNMENT OF THE POLICY DEATH BENEFITS AND CASH VALUES OF EACH RESPECTIVE LIFE INSURANCE POLICY. THE POLICIES ARE OWNED BY THE CURRENT EXECUTIVES AND THEY HAVE THE RIGHT TO NAME THE BENEFICIARIES FOR AMOUNTS NOT SECURED BY THE ASSIGNMENTS. FORM 990, PART VI, SECTION A, LINE 1A THE ORGANIZATION HAS AN EXECUTIVE COMMITTEE WHICH CONSISTS OF THE CHAIR, VICE-CHAIR, SECRETARY, AND TREASURER. THEY CAN ACT ON BEHALF OF THE BOARD AS OFFICIAL SIGNERS OF BOARD-APPROVED DOCUMENTS AND IN APPROVING PRESIDENT/CEO ANNUAL SALARY INCREASE AND BONUS STRUCTURE. FORM 990, PART VI, SECTION A, LINE 6 THE CREDIT UNION IS A COOPERATIVE. AS SUCH, THE MEMBERS ARE THE OWNERS. FIRST CREDIT UNION OFFERS MEMBERSHIP TO PERSONS WHO LIVE, WORK, AND WORSHIP WITHIN A TEN MILE RADIUS OF ANY FIRST CREDIT UNION BRANCH. IN ADDITION, MEMBERSHIP IS AVAILABLE TO EMPLOYEES OF CERTAIN SPECIFIED ENTITIES IN THE FOLLOWING CATEGORIES: FEDERAL GOVERNMENT, MEDICAL CENTERS, MUNICIPALITIES, PRIVATE, PUBLIC, RELIGIOUS, AND CHARITABLE ORGANIZATIONS. FORM 990, PART VI, SECTION A, LINE 7A THE GOVERNING BODY (BOARD OF DIRECTORS) IS ELECTED BY THE MEMBERS, WHO CAN CAST ONE VOTE EACH. FORM 990, PART VI, SECTION A, LINE 7B BYLAW CHANGES ARE SUBJECT TO APPROVAL BY MEMBERS. 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 DRAFT OF THE FORM 990 IS PRESENTED TO THE BOARD OF DIRECTORS FOR THEIR REVIEW AND COMMENTS PRIOR TO FILING WITH THE IRS. FORM 990, PART VI, SECTION B, LINE 12C THE CREDIT UNION HAS A CONFLICT OF INTEREST POLICY FOR THE BOARD, WHICH THEY REVIEW ANNUALLY AND SIGN A DECLARATION AS TO WHETHER THEY HAVE ANY CONFLICTS AND IDENTIFY AS SUCH. FOR EMPLOYEES, THE CREDIT UNION HAS A SECTION IN THE EMPLOYEE HANDBOOK THAT STATES THE POLICY FOR STAFF. A CONFLICT OF INTEREST OCCURS WHEN A DIRECTOR'S PERSONAL INTERESTS INTERFERE OR APPEAR TO INTERFERE WITH THE INTERESTS OF THE CREDIT UNION AS A WHOLE. CONFLICTS OF INTEREST ALSO ARISE WHEN A DIRECTOR OR A MEMBER OF HIS OR HER IMMEDIATE FAMILY OR AN ENTITY WITH WHICH THE DIRECTOR IS AFFILIATED RECEIVES IMPROPER PERSONAL BENEFITS AS A RESULT OF HIS OR HER POSITION. THE MERE APPEARANCE OF A CONFLICT OF INTEREST SHOULD BE AVOIDED AT ANY COST. ANY SITUATION THAT INVOLVES OR MAY REASONABLY BE EXPECTED TO INVOLVE A CONFLICT OF INTEREST WITH THE CREDIT UNION SHALL BE DISCLOSED IMMEDIATELY TO THE BOARD. DISCLOSURE: A DIRECTOR SHALL PROMPTLY DISCLOSE TO THE BOARD ANY KNOWN INTEREST, RELATIONSHIP OR RESPONSIBILITY HELD BY THE DIRECTOR, ANY MEMBER OF HIS OR HER IMMEDIATE FAMILY, OR ANY OF HIS OR HER BUSINESS ASSOCIATES WITH RESPECT TO ANY POTENTIAL OR ACTUAL CONSIDERATION, EVEN IF SUCH INTEREST, RELATIONSHIP OR RESPONSIBILITY HAS OTHERWISE GENERALLY BEEN DISCLOSED TO THE BOARD. ADDITIONALLY, DIRECTORS MUST DISCLOSE INFORMATION REGARDING THEIR FINANCIAL INTERESTS IN ORGANIZATIONS DOING BUSINESS WITH THE CREDIT UNION. BOARD ACTION: IN THE EVENT OF A POTENTIAL CONFLICT, THE BOARD, WITH THE ABSTENTION OF THE INTERESTED DIRECTOR, MAY DECIDE WHETHER OR NOT THAT DIRECTOR MAY PARTICIPATE IN ANY DISCUSSION OR VOTE ON THE ISSUE THAT GAVE RISE TO THE POTENTIAL CONFLICT. RECUSAL: ANY DIRECTOR WITH SUCH AN INTEREST, RELATIONSHIP OR RESPONSIBILITY WHICH CONFLICTS OR POTENTIALLY CONFLICTS WITH THE INTEREST OF THE CREDIT UNION SHALL RECUSE HIMSELF OR HERSELF FROM ANY DISCUSSION AND VOTE ON THE ISSUE THAT GAVE RISE TO THE CONFLICT. FORM 990, PART VI, SECTION B, LINE 15 THE CEO'S COMPENSATION IS BASED ON A FORMAL REVIEW THAT IS COMPLETED BY ALL BOARD MEMBERS ALONG WITH SELF EVALUATION BY CEO. THERE IS A REVIEW OF INDUSTRY SPECIFIC SALARY SURVEY INFORMATION THAT IS PERFORMED BY INDEPENDENT MEMBERS OF THE EXECUTIVE COMMITTEE WITH THE COMPENSATION DECISION DOCUMENTED IN THE CEO'S FILE AND IS PRESENTED TO THE FULL BOARD. OTHER OFFICER AND KEY EMPLOYEE'S COMPENSATION IS BASED ON A FORMAL REVIEW THAT IS COMPLETED BY THE CEO. THERE IS A REVIEW OF INDUSTRY SPECIFIC SALARY SURVEY INFORMATION AND IS PERFORMED BY THE CEO WITH THE DECISION DOCUMENTED IN THE EMPLOYEE FILE AND PAYROLL SYSTEM. THE PROCESS DESCRIBED HERE WAS LAST COMPLETED IN 2023. FORM 990, PART VI, SECTION C, LINE 19 THE CREDIT UNION MAKES THE GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY AND FINANCIAL STATEMENTS AVAILABE UPON REQUEST. FORM 990, PART XI, LINE 9: CHANGE IN PENSION PLAN ASSETS 596,432. BAFCU MERGER EQUITY -26,520. CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE -2,591,996.