2024-11-15T14:28:22-06:00 2023-12-31 383567911 REHMANN ROBSON LLC PO BOX 2025 SAGINAW MI 486052025 990 2023-01-01 381796409 CREDIT UNIONS CHARTERED IN THE STATE OF MICHIGAN FRANKENMUTH CREDIT UNION CRED 9894971600 PO BOX 209 FRANKENMUTH MI 48734 VICKIE SCHMITZER CEO 9894971600 2024-11-06 1 1 JEFFREY E HERT CPA P00066715 9897999580 2024-11-05 2023 2024-10-15 13:58:12Z VICKIE SCHMITZER PO BOX 209 FRANKENMUTH MI 48734 87331452 0 X WWW.FRANKENMUTHCU.ORG X 1964 MI PROVIDE FINANCIAL SERVICES TO MEMBER OWNERS WITH A COMMON BOND. 9 9 607 11 725898 0 0 0 69382846 82713557 1156597 3736529 41170 -2811 70580613 86447275 511507 569548 0 0 30213779 32587138 0 0 0 26196334 45489260 56921620 78645946 13658993 7801329 1198115228 1317110032 1083049555 1197172066 115065673 119937966 PROVIDE SAFE, CONVENIENT, COST EFFECTIVE SERVICES FOR THE FINANCIAL WELL-BEING OF THE CREDIT UNION AND ITS MEMBERS. AND TO GROW TRUSTED RELATIONSHIPS BY PROVIDING PERSONALIZED FINANCIAL SOLUTIONS. 0 0 PROVIDE 69,649 MEMBERS WITH SHARES, CHECKING, BUSINESS SAVINGS, BUSINESS CHECKING, MONEY MARKET, VACATION CLUB, CHRISTMAS CLUB, HEALTH SAVINGS, IRA AND CERTIFICATE OF DEPOSIT ACCOUNTS TOTALING $1,182,320,950. PROVIDE 54,313 SHARE SECURED, STUDENT, SIGNATURE, BUSINESS, CONSTRUCTION, REAL ESTATE, HOME EQUITY, LINE OF CREDIT, NEW AND USED VEHICLE, RECREATIONAL VEHICLE, LEASE LOANS, HOME IMPROVEMENT AND CREDIT CARD LOANS. OFFER AUTOMATED TELLER MACHINES, INTERACTIVE TELLER MACHINES, DEBIT CARDS, CREDIT CARDS, SHARED BRANCHING, MONEY ORDERS, COURTESY PAY, WIRE TRANSFERS, BILL PAY, INVESTMENTS SERVICES AND VARIOUS INSURANCE PROGRAMS TO ALL ELIGIBLE MEMBERS. 0 0 0 0 0 0 0 1 0 1 0 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 1 1 1 0 1 0 0 1 0 0 0 0 0 1 0 0 0 1 13864 0 1 607 1 1 1 0 0 0 0 0 0 0 0 0 X 9 9 0 0 0 0 1 1 1 1 1 0 0 0 1 1 1 1 1 1 1 0 X DONNA HAUBENSTRICKER 9894971623 PO BOX 209 FRANKENMUTH MI 48734 TIMOTHY HILDNER CHAIRPERSON 2.46 1.00 X X 0 0 0 JILL CATTERFELD VICE CHAIRPERSON 1.35 X X 0 0 0 BRIAN DIXON TREASURER 1.35 X X 0 0 0 RICHARD REIF SECRETARY 1.35 X X 0 0 0 MICHAEL FASSEZEE DIRECTOR 2.04 X 0 0 0 DAN LEMKE DIRECTOR 1.35 X 0 0 0 SCOT PUTZIG DIRECTOR 1.35 X 0 0 0 KARINA SPENCER DIRECTOR 1.35 X 0 0 0 CHRIS FRANK DIRECTOR 1.35 1.00 X 0 0 0 VICKIE SCHMITZER CEO 54.00 X 727234 0 48002 DONNA HAUBENSTRICKER VP OF FINANCE 45.00 X 245168 0 35156 ERIC NEUMEYER CEO OF CUSO 40.89 X 217406 0 41771 ROBERT ROBINSON INSURANCE SALES 40.00 X 312624 0 47587 WILLIAM WATCHORN MORTGAGE ORIGINATOR 40.00 X 260709 0 15445 DANIEL WORTMAN INSURANCE SALES 40.00 X 239351 0 30549 STEVE WITT INSURANCE SALES 40.00 X 222818 0 42070 VICTORIA DEGRACE DIRECTOR OF CREDIT SOLUTIONS & RECOVERY 40.00 X 210979 0 17903 2436289 0 278483 8 0 1 0 CUANSWERS 6000 28TH STREET SE STE 100 GRAND RAPIDS MI 49546 DATA PROCESSING 2058300 WILLIAM BRONNER & SONS CONTRACTORS 393 LIST ST SUITE A FRANKENMUTH MI 48734 CONSTRUCTION, BUILDING 1945310 KASASA LTD PO BOX 527 LUBBOCK TX 79408 RELATIONSHIP CHECKING/LOAN OFFERINGS & M 379528 3 LOAN INTEREST INCOME 522100 55717861 55717861 FEE AND OTHER INCOME 522100 26269798 26269798 NON-MEMBER ATM INCOME 900099 696634 696634 NON-MEMBER INSURANCE INCOME 524298 21612 21612 NON-MEMBER SHARED BRANCH INCOME 522100 7652 7652 82713557 3681565 3681565 473840 629233 -155393 -155393 -155393 309908 254944 54964 54964 54964 NON OPERATING GAIN/LOSS 900099 152582 152582 152582 86447275 81832266 725898 3889111 514361 55187 1314647 24858152 1163727 3205530 2045082 203506 232019 451472 4528231 1063238 2041352 252317 5310 16720760 3640949 352515 PROVISION FOR LOAN LOSS 4657410 OTHER OPERATING EXPENSE 3576503 ATM EXPENSE 1789329 LOAN SERVICING 1592746 4381603 78645946 X 28484013 49806014 87991196 100962555 8365717 4717540 2907171 2907171 928734028 1010659525 2399300 2555615 89693507 21943997 66247423 67749510 3073088 4441778 24750000 22000000 8051169 7969672 37112123 43340652 1198115228 1317110032 8587949 11461018 5702453 5154447 3174477 1290186 401900 401900 1065182776 1178864515 1083049555 1197172066 X 0 0 0 0 115065673 119937966 115065673 119937966 1198115228 1317110032 X 7801329 -2929036 X X 0 1 X 1 0 0 1 6729153 6729153 63728549 10750428 52978121 4559451 2236707 2322744 14676354 8956862 5719492 67749510 MEMBER SHARE AND DEPOSITS 1177166506 LEASE LIABILITY 1698009 1178864515 X PART X, LINE 2: THE CREDIT UNION IS EXEMPT, BY STATUTE, FROM FEDERAL AND STATE INCOME TAXES. THE CREDIT UNION HAS EVALUATED ITS INCOME TAX FILING POSITIONS FOR THE YEARS 2020 THROUGH 2023, THE YEARS WHICH REMAIN SUBJECT TO EXAMINATION BY MAJOR TAX JURISDICTIONS AS OF DECEMBER 31, 2023. THE CREDIT UNION CONCLUDED THAT THERE ARE NO SIGNIFICANT UNCERTAIN TAX POSITIONS REQUIRING RECOGNITION IN THE CREDIT UNION'S FINANCIAL STATEMENTS. THE CREDIT UNION DOES NOT EXPECT THE TOTAL AMOUNT OF UNRECOGNIZED TAX BENEFITS ("UTB") (E.G., TAX DEDUCTIONS, EXCLUSIONS, OR CREDITS CLAIMED OR EXPECTED TO BE CLAIMED) TO SIGNIFICANTLY CHANGE IN THE NEXT 12 MONTHS. THE CREDIT UNION DOES NOT HAVE ANY AMOUNTS ACCRUED FOR INTEREST AND PENALTIES RELATED TO UTBS AT DECEMBER 31, 2023 AND 2022, AND IT IS NOT AWARE OF ANY CLAIMS FOR SUCH AMOUNTS BY FEDERAL OR STATE INCOME TAX AUTHORITIES. 0 BLUMFIELD FIRE DEPARTMENT 7499 E HOLLAND RD SAGINAW MI 48601 386366980 GOVERNMENTAL 15000 0 OBTAIN NEW SCBAS FOR FIRE SERVICE TUSCOLA YOUTH GYMNASTICS 1240 E NORTH UNION RD BAY CITY MI 48706 873586904 501C3 22374 0 NEW GYMNASTIC EQUIPMENT HOPE FOR THE FORGOTTEN 4370 N PORTSMOUTH RD SAGINAW MI 48601 884177407 501C3 27000 0 PURCHASE TRAILER AND LABELING HEART OF THE CITY 1731 JOY ST SAGINAW MI 48601 883257343 501C3 8900 0 COMPUTERS AND TABLETS TO STAFF & ATTENDEES MILLINGTON ARBELA FIRE DEPARTMENT P O BOX 247 MILLINGTON MI 48746 382060604 GOVERNMENTAL 20000 0 VEHICLE EXTRACTION TOOLS BIRCH RUN VETERANS COMMUNITY FUND INC P O BOX 184 BIRCH RUN MI 48415 381133442 501C3 12000 0 ELECTRONIC SIGN FOR VFW SPAULDING TOWNSHIP FIRE FIGHTERS ASSOC 5025 EAST RD SAGINAW MI 48601 851298911 501C3 11370 0 RESCUE BOAT CENTRAL MI EMERGERGENCY NETWORK P O BOX 649 FENTON MI 48430 813787508 501C3 19073 0 BAY AREA AMATEUR RADION IMPROVEMENTS FRANKENMUTH WRESTLING 11581 RATHBUN BIRCH RUN MI 48415 873798926 501C3 20000 0 MATS GIRL SCOUTS HEART 601 W MAPLE ST KALAMAZOO MI 49008 381581300 501C3 15000 0 FINANCIAL ASSISTANCE IN COMMUNITY TROOPS CITY OF FRANKENMUTH 240 W GENESEE FRANKENMUTH MI 48734 386007178 GOVERNMENTAL 20000 0 FANS FOR HARVEY KERN FOR PICKLE BALL ETC BIRCH RUN TAYMOUH PFY ASSOC P O BOX 211 BIRCH RUN MI 48415 382486826 501C3 10515 0 FOOTBALL HELMETS FOR YOUTH SPORTS RAM PRODUCTS 9158 E TOWNLINE RD FRANKENMUTH MI 48734 382777187 FOR PROFIT 8000 0 SPONSORSHIP FOR OKTOBERFEST AND MUSIC FEST 14 1 SCHOLARSHIPS 37 42000 GRANTS TO TEACHERS 36 13187 PART I, LINE 2: EACH YEAR THE CREDIT UNION AWARDS SCHOLARSHIPS ANNUALLY TO SENIORS WHO ARE MEMBERS OF THE CREDIT UNION THAT ARE GRADUATING FROM HIGH SCHOOL. THE INDIVIDUAL RECEIVES $500 EACH YEAR THEY ARE ATTENDING COLLEGE FOR A PERIOD OF 4 YEARS. THE SELECTION IS BASED ON ACHIEVEMENTS IN TWO AREAS. THEY MUST BE INVOLVED IN EXTRA-CURRICULAR ACTIVITIES AND SUBMIT A WRITTEN ESSAY ON A TOPIC CHOSEN BY THE CREDIT UNION. X X X 1 1 X X X X 0 1 0 VICKIE SCHMITZER CEO 531672 0 195562 0 0 0 23020 0 24982 0 775236 0 0 0 ROBERT ROBINSON INSURANCE SALES 210465 0 102159 0 0 0 15631 0 31956 0 360211 0 0 0 DONNA HAUBENSTRICKER VP OF FINANCE 207369 0 37799 0 0 0 12227 0 22929 0 280324 0 0 0 WILLIAM WATCHORN MORTGAGE ORIGINATOR 1306 0 259403 0 0 0 13004 0 2441 0 276154 0 0 0 DANIEL WORTMAN INSURANCE SALES 183162 0 56189 0 0 0 10817 0 19732 0 269900 0 0 0 STEVE WITT INSURANCE SALES 195697 0 27121 0 0 0 11140 0 30930 0 264888 0 0 0 ERIC NEUMEYER CEO OF CUSO 195070 0 22336 0 0 0 9541 0 32230 0 259177 0 0 0 VICTORIA DEGRACE DIRECTOR OF CREDIT SOLUTIONS & RECOV 145958 0 65021 0 0 0 9565 0 8338 0 228882 0 0 0 PART I, LINE 1A CHARTER TRAVEL IS USED ONLY IF NECESSARY FOR BUSINESS. BOARD CONFERENCE TRAVEL WITH SPOUSE ALLOWED, NOT TAXABLE. PART I, LINE 4B THE CREDIT UNION PROVIDES SUPPLEMENTAL RETIREMENT BENEFITS TO VICKIE SCHMITZER, CEO, THROUGH AN ARRANGEMENT REFERRED TO AS "COLLATERAL ASSIGNED SPLIT DOLLAR." THE CASH SURRENDER VALUE OF THE LIFE INSURANCE POLICY WAS $2,756,000 AT DECEMBER 31, 2023. AT SPECIFIED TIMES, THE PARTICIPANTS MAY BORROW FUNDS FROM THE CASH SURRENDER VALUE OF THE UNDERLYING LIFE INSURANCE POLICY TO SUPPLEMENT RETIREMENT INCOME. THESE DRAWS ARE TAX FREE FOR THE PARTICIPANT. UPON THE PARTICIPANT'S DEATH THE CREDIT UNION RECOVERS ITS PREMIUMS PLUS INTEREST, PLUS KEY-PERSON INSURANCE PROCEEDS. VICKIE SCHMITZER CEO RETIREMENT DEATH BENEFIT X 2907171 2907171 0 1 1 2907171 BRANDON SCHMITZER HEAD OF MAINTENA CREDIT UNION EMPLOYEE WITH FAMILY RELATIONSHIP WITH THE CEO 117306 CREDIT UNION EMPLOYEE WITH FAMILY RELATIONSHIP WITH THE CEO 0 KARI SCHMITZER VP OF HR CREDIT UNION EMPLOYEE WITH FAMILY RELATIONSHIP WITH THE CEO 142014 EMPLOYEE COMPENSATION 0 FORM 990, PART VI, SECTION A, LINE 6 THE CREDIT UNION HAS A SINGLE CLASS OF MEMBERS WITH EQUAL RIGHTS OF OWNERSHIP, GOVERNANCE, AND VOTING. FORM 990, PART VI, SECTION A, LINE 7A THE BOARD OF DIRECTORS IS ELECTED BY MEMBERS VOTING AT THE ANNUAL MEETING FOR 3-YEAR TERMS. FORM 990, PART VI, SECTION A, LINE 7B THE CREDIT UNION NEEDS MEMBER APPROVAL FOR MERGERS. FORM 990, PART VI, SECTION B, LINE 11B THE 990 IS REVIEWED BY THE CEO PRIOR TO FILING. SUBSEQUENT TO FILING, THE BOARD OF DIRECTORS AND AUDIT COMMITTEE IS PROVIDED WITH A COPY OF THE 990 RETURNS SUBMITTED. FORM 990, PART VI, SECTION B, LINE 12C CONFLICT OF INTEREST POLICY IS REVIEWED AT THE ORGANIZATIONAL MEETING AND MONITORED BY THE INTERNAL COMPLIANCE OFFICER. FORM 990, PART VI, SECTION B, LINE 15 THE COMPENSATION COMMITTEE ESTABLISHES CEO COMPENSATION USING INDEPENDENT CONSULTANT AND SURVEYS. IT IS APPROVED BY THE BOARD. THE VP OF FINANCE'S COMPENSATION IS DETERMINED BY THE CEO WITH APPROVAL FROM THE BOARD BASED ON CUES AND MICHIGAN CREDIT UNION LEAGUE SURVEYS AND BONUS PAID BY GOALS BEING MET. MANAGEMENT TEAM EMPLOYEES COMPENSATION IS ALSO DETERMINED IN THE SAME MANNER AS THE VP OF FINANCE. FORM 990, PART VI, SECTION C, LINE 19 THE MONTHLY FINANCIAL STATEMENTS ARE POSTED IN THE CREDIT UNION LOBBY. ALL OTHER DOCUMENTS AND POLICIES ARE AVAILABLE FOR REVIEW UPON REQUEST. FORM 990, PART X, LINE 15 LEASES ARE CLASSIFIED AS OPERATING OR FINANCE LEASES AT THE LEASE COMMENCEMENT DATE. LEASE EXPENSE FOR OPERATING LEASES AND SHORTTERM LEASES IS RECOGNIZED ON A STRAIGHTLINE BASIS OVER THE LEASE TERM. RIGHT-OF-USE ASSETS REPRESENT THE RIGHT TO USE AN UNDERLYING ASSET FOR THE LEASE TERM AND LEASE LIABILITIES REPRESENT THE OBLIGATION TO MAKE LEASE PAYMENTS ARISING FROM THE LEASE. RIGHT-OF-USE ASSETS AND LEASE LIABILITIES ARE RECOGNIZED AT THE LEASE COMMENCEMENT DATE BASED ON THE ESTIMATED PRESENT VALUE OF LEASE PAYMENTS OVER THE LEASE TERM. RIGHT-OF-USE ASSETS AND LEASE LIABILITIES ARE ALL RELATED TO OPERATING LEASES. THE RIGHT OF USE ASSET AS OF DECEMBER 31, 2023 WAS $1,698,009, AND IS INCLUDED IN OTHER ASSETS ON THE BALANCE SHEET. FORM 990, PART X, LINE 25 LEASES ARE CLASSIFIED AS OPERATING OR FINANCE LEASES AT THE LEASE COMMENCEMENT DATE. LEASE EXPENSE FOR OPERATING LEASES AND SHORTTERM LEASES IS RECOGNIZED ON A STRAIGHTLINE BASIS OVER THE LEASE TERM. RIGHT-OF-USE ASSETS REPRESENT THE RIGHT TO USE AN UNDERLYING ASSET FOR THE LEASE TERM AND LEASE LIABILITIES REPRESENT THE OBLIGATION TO MAKE LEASE PAYMENTS ARISING FROM THE LEASE. RIGHT-OF-USE ASSETS AND LEASE LIABILITIES ARE RECOGNIZED AT THE LEASE COMMENCEMENT DATE BASED ON THE ESTIMATED PRESENT VALUE OF LEASE PAYMENTS OVER THE LEASE TERM. RIGHT-OF-USE ASSETS AND LEASE LIABILITIES ARE ALL RELATED TO OPERATING LEASES. THE RIGHT OF USE ASSET AS OF DECEMBER 31, 2023 WAS $1,698,009, AND IS INCLUDED IN OTHER ASSETS ON THE BALANCE SHEET. FORM 990, PART X, LINE 24 IN MAY 2020, MMIA ENTERED INTO A PROMISSORY NOTE (THE NOTE") WITH A LENDER EVIDENCING UNSECURED LOANS IN AGGREGATE PRINCIPAL AMOUNTS OF $401,900 PURSUANT TO THE PPP UNDER THE CARES ACT ADMINISTERED BY THE U.S. SMALL BUSINESS ADMINISTRATION ("SBA"). THE PAYROLL PROTECTION PROGRAM FLEXIBILITY ACT EXTENDED THE DEFERRAL PERIOD FOR BORROWER PAYMENTS OF PRINCIPAL, INTEREST, AND FEES ON ALL PPP LOANS TO THE DATE THAT THE SBA REMITS THE BORROWER'S LOAN FORGIVENESS AMOUNT TO THE LENDER. ADDITIONALLY, THE REPAYMENT TERM WAS EXTENDED TWO YEARS TO FIVE YEARS. THE NOTE MAY BE PREPAID AT ANY TIME PRIOR TO MATURITY WITH NO PREPAYMENT PENALTIES. THE NOTE IS INCLUDED IN THE UNSECURED NOTES/LOANS ON THE BALANCE SHEET, AS THE SBA DETERMINED IN 2022 THAT THE LOAN DOES NOT QUALIFY FOR FORGIVENESS. FORM 990, PART XI, LINE 9: CHANGE IN ACCOUNTING PRINCIPLE - ADOPTION OF ASC 326 -2,929,036. FORM 990, PART XII, LINE 2C NO CHANGE FROM PRIOR YEARS. FORM 990, PART XI, LINE 9 THE CREDIT UNION ADOPTED ASC 326 ON JANUARY 1, 2023, USING THE MODIFIED RETROSPECTIVE METHOD FOR ALL FINANCIAL ASSETS MEASURED AT AMORTIZED COST, AND OFF-BALANCE-SHEET CREDIT EXPOSURES. RESULTS FOR REPORTING PERIODS BEGINNING AFTER JANUARY 1, 2023, ARE PRESENTED UNDER ASC 326 WHILE PRIOR PERIOD AMOUNTS CONTINUE TO BE REPORTED IN ACCORDANCE WITH PREVIOUSLY APPLICABLE GAAP. THE TRANSITION ADJUSTMENT OF THE CURRENT EXPECTED CREDIT LOSS ("CECL") ADOPTION INCLUDED AN INCREASE IN THE ALLOWANCE FOR CREDIT LOSSES OF $2,929,028 AND A $2,929,028 RELATED DECREASE TO THE UNDIVIDED EARNINGS ACCOUNT TO REFLECT THE CUMULATIVE EFFECT OF ADOPTING CECL ON THE BALANCE SHEET. THE ALLOWANCE FOR CREDIT LOSSES ON UNFUNDED COMMITMENTS WAS NOT MATERIAL AT ADOPTION. MY MEMBER INSURANCE AGENCY PO BOX 209 FRANKENMUTH MI 49734 473157237 INSURANCE SALES MI -1964715 4743723 FRANKENMUTH CREDIT UNION CU DIGITAL ONE LLC 580 N MAIN STREET FRANKENMUTH MI 48734 933508004 CRYPTOCURRENCY MI -64828 5000000 FRANKENMUTH CREDIT UNION UPTOWN NORTH MAIN LLC 975 N MAIN STREET FRANKENMUTH MI 48764 381796409 BANQUET HALL MI 0 0 FRANKENMUTH CREDIT UNION