2024-11-15T11:57:59+00:00 2023-12-31 350921680 CROWE LLP 9600 Brownsboro Road Suite 400 Louisville KY 402413902 990 2023-01-01 860101004 Arizona Financial Credit Union ARIZ 6026831160 333 N 44TH STREET Phoenix AZ 85008 Travis Fonnesbeck SVP & Chief Financial Officer 6026831160 2024-11-15 true Kim Scifres P01316095 5023263996 2024-11-15 2023 2024-10-15 13:58:12Z Amy Hysell 333 N 44TH STREET Phoenix AZ 85008 379009332 false X www.arizonafinancial.org X 2022 AZ The purpose of Arizona Financial Credit Union is to promote thrift and to provide credit to its members. 9 9 798 9 12776501 2997399 0 0 64339105 164491472 13861816 34325289 1816945 5401941 80017866 204218702 6218 189323 0 33267468 74189585 0 0 31550662 93538575 64824348 167917483 15193518 36301219 3171193266 3314738957 2928964231 3013013637 242229035 301725320 The purpose of Arizona Financial Credit Union is to promote thrift and to provide credit to its members. false false ARIZONA FINANCIAL CREDIT UNION (AZFCU) IS A STATE CHARTERED COOPERATIVE ASSOCIATION ORGANIZED FOR THE PURPOSE OF PROMOTING THRIFT AMONG AND CREATING A SOURCE OF CREDIT FOR ITS MEMBERS. THE CREDIT UNION PROVIDES MORTGAGE, VEHICLE AND OTHER CONSUMER AND COMMERCIAL LOANS TO ITS MEMBERS. THE CREDIT UNION ALSO OFFERS A VARIETY OF ACCOUNTS FOR MEMBERS TO TRANSACT AND SAVE, INCLUDING SHARE DRAFT ACCOUNTS AND SHARE CERTIFICATES. AS A MEMBER-OWNED ORGANIZATION, THE CREDIT UNION STRIVES TO PROVIDE COMPETITIVE INTEREST AND DIVIDEND RATES TO ITS MEMBERS AND CONVENIENT WAYS FOR MEMBERS TO ACCESS THEIR ACCOUNTS, INCLUDING ONLINE AND MOBILE BANKING AND SHARED BRANCHING SERVICES. AZFCU OFFERS CREDIT LIFE AND DISABILITY INSURANCE TO ITS MEMBERS WHEN THEY FINANCE A VEHICLE OR OPEN A CREDIT CARD. THIS INSURANCE WOULD PAY OFF THE LOAN IN THE CASE OF A DEATH OR DISABILITY. AZFCU OFFERS AUTO WARRANTIES AT FAIR PRICES TO ITS MEMBERS. THESE WARRANTIES ARE COMPREHENSIVE AND HELP WITH THE COSTS OF REPAIR OF THE VEHICLE. 0 false false false false false false true false true false false false true true true true false false false false false false false false false true false true false true false false false false false false false false true false false false true 66006 0 true 798 true true true false false false false false true false X 9 9 true false false false true true false true false false true true true true false false true true true true true false X Travis Fonnesbeck 6026831160 333 N 44TH STREET Phoenix AZ 85008 David Albertson Board Vice chairperson 3.0 X X 0 0 0 Libby Bissa Board Secretary 3.0 X X 0 0 0 William Greene Board Chairperson 3.0 X X 0 0 0 Zeek Ojeh Board Treasurer 3.0 X X 0 0 0 Cathleen Gleason Board Member 3.0 X 18000 0 0 Jeffrey Barton Board Member 3.0 X 0 0 0 Jennifer Genga Board Member 3.0 X 0 0 0 KELVIN SMITH BOARD MEMBER (PARTIAL YEAR) 3.0 X 0 0 0 Kim Baldwin Board Member 3.0 X 0 0 0 ROY LAVENDA BOARD MEMBER (PARTIAL YEAR) 3.0 X 0 0 0 Timothy Black Board Member 3.0 X 3186 0 0 Amy Hysell President/CEO 40.0 X 645144 0 229738 Travis Fonnesbeck SVP & CFO 40.0 X 270445 0 98183 Chad Forkenbrock EVP & Chief Operating Officer 40.0 X 344587 0 178956 Gregory Thorell SVP Residential Lending 40.0 X 425070 0 122409 Jason Paprocki EVP & Chief Strategy Officer 40.0 X 441092 0 100673 Juan Ruiz EVP & Chief People and Culture Officer 40.0 X 316853 0 92356 Michael Thorell Arizona Market President & Chief Lending Officer 40.0 X 438676 0 138408 Ronald Westad Advisor 40.0 X 1338714 0 30924 Travis Merrell SVP & Chief Credit Officer 40.0 X 320913 0 97419 William Randall Gaston SVP & Commercial Lending 40.0 X 423463 0 102903 Diane Hank General Counsel & Chief Compliance Officer 40.0 X 287657 0 62145 Jared Shintaku Director of Gov. Guaranteed Loan Production 40.0 X 287921 0 42236 Melissa Gullotta Brown SVP & Member Services 40.0 X 304339 0 133687 Ryan West Investment Representative 40.0 X 293827 0 36275 Scott Willits Commercial Loan Officer 40.0 X 294850 0 40644 6454737 0 1506956 113 false true false DBSI 6950 W Morelos Place Suite 1 Chandler AZ 85226 Design Services 931597 Diebold Incorporated PO Box 643543 Pittsburgh AL 15264 ATM Services 921315 PSCU Incorporated 560 Carillon Parkway St Petersburg FL 33716 After hours customer service 746562 Mark A Kirkorsky pc PO Box 25287 Tempe AZ 85385 Credit Collections 694727 Financial Statement Services 3300 S Fairview St Santa Ana CA 92704 Print & Mail Outsourcing 400876 33 0 0 0 0 0 0 0 0 INTEREST ON LOANS 522291 102507689 102507689 0 0 FEES AND SERVICE CHARGES 522130 21444978 21084234 360744 0 Interchange Revenue 522130 26831664 26831664 0 Insurance 524143 13381341 965584 12415757 0 Warranty Income 524128 325800 325800 0 0 0 0 0 164491472 35572330 0 0 35572330 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 173340851 202738 174696651 93979 -1355800 108759 -1247041 0 -1247041 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 OTHER INCOME 522130 5401941 5401941 0 0 0 0 0 0 0 0 0 0 0 0 0 5401941 204218702 157116912 12776501 34325289 189323 6178112 52404771 3247753 8482401 3876548 233924 296412 1919800 3596201 2666530 9936564 3958796 770020 36312767 7938338 449687 Debit and ATM Processing Fees 10573013 Loan Servicing Expense 8016701 Loan Losses 4415519 Dues and Subscriptions 320554 2133749 167917483 67705527 22587213 56883149 428086034 0 0 0 100038 1678498651 1821968362 91673449 43626542 49836264 48046907 984604598 712836083 22816430 24094555 15786075 125455188 123460478 169607384 133559287 3171193266 3314738957 46692752 59142298 0 16613 0 0 2882271479 2953854726 2928964231 3013013637 X 242229035 301725320 242229035 301725320 3171193266 3314738957 X 36301219 16056866 7138200 X false true X true false false true X 13407234 13407234 52152962 25258711 26894251 1604601 1511642 92959 24091300 16856189 7235111 417352 417352 48046907 Operating Lease Liabilities 2294448 Members' share accounts 2751136109 Borrowings 200424169 2953854726 X Schedule D, Part IV, Line 2b Explanation of escrow agreement ESCROW ACCOUNTS ARE HELD TEMPORARILY FOR CURRENT CUSTOMERS ENGAGED IN LOAN ACTIVITY. Schedule D, Part X, Line 2 FIN 48 (ASC 740) footnote The Credit Union is exempt, by statute, from federal and state income taxes. However, effective July 1, 2022, with approval of the Credit Union's change in charter from federal to state, the Credit Union is subject to unrelated business income tax. The Credit Union's wholly owned subsidiaries, WSFG and AFIS, are subject to state and federal income tax. Operations of the Credit Union and wholly owned subsidiaries resulted in an insignificant amount of income taxes for the years ended December 31, 2023 and 2022. true Natural Restorations 67 S Higley Rd STE 103-118 Gilbert AZ 85296 814745055 501(C)3 7500 General Support Down Syndrome Network Inc 1445 E Guadalupe Rd STE 103 Tempe AZ 85283 611409048 501(C)3 10000 General Support Families Raising Hope 312 East Brook Hollow Dr Phoenix AZ 85022 873713882 501(C)(3) 7500 General Support United Sound Inc 1136 E Harmony Ave STE 201 Mesa AZ 85204 471534338 501(C)(3) 15000 General Support Creighton Community Foundation Inc 3219 E Camelback Rd 376 Phoenix AZ 85018 462275877 501(C)(3) 10000 General Support Matthew's Crossing 1368 N Arizona Ave STE 112 Chandler AZ 85225 550896414 501(C)(3) 10000 General Support Barn House Community 7624 W Banff Lane Peoria AZ 85381 862403073 501(C)(3) 10000 General Support National Credit Union Foundation Inc 5710 Mineral Point Rd Madison WI 53705 391383650 501(C)(3) 10000 General Support 100 Club of Arizona 333 N 44th St Phoenix AZ 85008 237172077 501(C)(3) 30000 General Support Wilson School District #7 3025 E Fillmore St Phoenix AZ 85008 School 15000 General Support 10 0 Schedule I, Part I, Line 2 Procedures for monitoring use of grant funds. Funding for community donations and contributions is included in the annual financial plan, and approved by the Board of Directors. Donations made are reported to the Board of Directors on a monthly basis for review. X X X true true X X X false true false Amy Hysell President/CEO 632364 0 250 0 12530 0 226483 0 3255 0 874882 0 0 0 Travis Fonnesbeck SVP & CFO 257848 0 4750 0 7847 0 87172 0 11011 0 368628 0 0 0 Ronald Westad Advisor 206724 0 55073 0 1076917 0 28625 0 2299 0 1369638 0 159564 0 Michael Thorell Arizona Market President & Chief Lending Officer 413003 0 4843 0 20830 0 127640 0 10768 0 577084 0 0 0 Gregory Thorell SVP Residential Lending 376757 0 20546 0 27767 0 109161 0 13248 0 547479 0 0 0 Jason Paprocki EVP & Chief Strategy Officer 405060 0 14590 0 21442 0 92062 0 8611 0 541765 0 0 0 William Randall Gaston SVP & Commercial Lending 377712 0 18765 0 26986 0 91311 0 11592 0 526366 0 0 0 Chad Forkenbrock EVP & Chief Operating Officer 335302 0 3250 0 6035 0 170345 0 8611 0 523543 0 0 0 Travis Merrell SVP & Chief Credit Officer 296474 0 16833 0 7606 0 85179 0 12240 0 418332 0 0 0 Juan Ruiz EVP & Chief People and Culture Officer 305763 0 8949 0 2141 0 86508 0 5848 0 409209 0 0 0 Melissa Gullotta Brown SVP & Member Services 256431 0 39408 0 8500 0 122216 0 11471 0 438026 0 0 0 Diane Hank General Counsel & Chief Compliance Officer 285644 0 950 0 1063 0 51440 0 10705 0 349802 0 0 0 Scott Willits Commercial Loan Officer 293186 0 850 0 814 0 29942 0 10702 0 335494 0 0 0 Jared Shintaku Director of Gov. Guaranteed Loan Production 283207 0 950 0 3764 0 29383 0 12853 0 330157 0 0 0 Ryan West Investment Representative 291341 0 950 0 1536 0 24034 0 12241 0 330102 0 0 0 Schedule J, Part I, Line 1a First-class or charter travel Arizona Financial Credit Union (AFCU) allows board members to utilize first class travel if certain criteria are met. The travel expenses are treated as taxable compensation. Schedule J, Part I, Line 1a Travel for companions Arizona Financial Credit Union (AFCU) allows a companion to join each director or executive leadership team member on business travel. The companions are expected to participate in the networking events and represent AFCU. The travel expenses are treated as taxable compensation. Schedule J, Part I, Line 1a Tax indemnification and gross-up payments A tax gross-up was paid by AFCU to Ronald Westad. The fair value was included in his annual taxable income. Schedule J, Part I, Line 4b Supplemental nonqualified retirement plan Arizona Financial Credit Union (AFCU) provides a supplemental nonqualified retirement plan for executives. The organization makes annual contributions to the plan. Contributions to the plan for 2023 are as follows: Amy Hysell: $179,583 Jason Paprocki: $65,662 Michael Thorell: $80,740 Gregory Thorell: $82,761 William Randall Gaston: $71,511 Chad Forkenbrock: $136,157 Travis Merrell: $66,656 Juan Ruiz: $51,742 Diane Hank: $36,961 Travis Fonnesbeck: $65,501 Melissa Gullotta Brown: $95,091 Distributions to the plan for 2023 are as follows: Ronald Westad: $989,339 Executive Vehicle Purchase X 50000 43765 false true true Executive Vehicle Purchase X 60657 56273 false true true 100038 Form 990, Part VI, Line 2 Family/business relationships amongst interested persons Michael Thorell and Gregory Thorell - Family relationship Form 990, Part VI, Line 6 Classes of members or stockholders AZFCU is chartered with the State of Arizona. Membership eligibility includes those who have a family or household member who is already a member of AZFCU those who are members of Local First Arizona and those who live, work, worship, attend school, or regularly conduct business in one of the following counties: Coconino, Gila, La Paz, Maricopa, Mohave, Navajo, Pima, Pinal, Yavapai, and Yuma. Voting Rights: Irrespective of the number of shares, no member has more than one vote. Application for Membership: Applications for membership from persons eligible for membership shall be signed by the applicant on forms approved by the board. Upon approval of an application by a membership officer and upon subscription to at least one share of this credit union and the payment of the initial installment, and the payment of a uniform entrance fee if required by the board, the applicant is admitted to membership. Form 990, Part VI, Line 7a Members or stockholders electing members of governing body There is only one class of membership. Each member has one vote to elect or appoint individual(s) to the governing body, irrespective of the number of shares owned. Form 990, Part VI, Line 8b Documentation of meetings held by committees of governing body There is no committee with authority to act on behalf of the governing body. Form 990, Part VI, Line 11b Review of form 990 by governing body The Form 990 is prepared by the VP & Controller and reviewed by Crowe LLP based on information provided by AZFCU management. The draft of the return is reviewed by management with any changes incorporated. Following management review the full 990 is provided to the board of directors for review and approval from the board of directors executive committee prior to filing with the IRS. Form 990, Part VI, Line 15a Process to establish compensation of top management official Regular salary reviews are conducted for the CEO utilizing the services of a third-party compensation consultant. Data from the Bureau of Labor Statistics and professional compensation organizations is used for comparative compensation purposes. All salary changes are based on organizational results as outlined in a performance review and is ultimately decided by the board of directors. The CEO's salary was reviewed and approved by the board in November of 2023. Form 990, Part VI, Line 15b Process to establish compensation of other employees An annual salary review is conducted for all employees, including officers and key employees using various market pricing tools and resources. Data from the Bureau of Labor statistics and professional compensation organizations is used for comparative compensation purposes. All salary changes are based on the results of competitive market data. Employee salaries were reviewed and approved by the board in November 2023. Form 990, Part VI, Line 19 Required documents available to the public THE CREDIT UNION'S GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS ARE MADE AVAILABLE TO THE PUBLIC UPON REQUEST. Form 990, Part XI, Line 9 Other changes in net assets or fund balances CECL ADOPTION - CHANGE IN ACCOUNTING PRINCIPLE - 8494000; Reclassification adjustment for realized loss - -1355800; Form 990, Part VI, Line 12b and 12c Monitoring of Conflicts of Interest AZFCU's conflict of interest policies are outlined in its employee handbook. AZFCU regularly monitors conflicts and enforcement with the policy and intends to implement an annual reporting process in the following year under IRC Section 501(c)(14). 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