2024-11-15T15:06:36-06:00 2023-12-31 410746749 CLIFTONLARSONALLEN LLP 109 N MAIN STREET SUITE 200 AUSTIN MN 55912 990 2023-01-01 741951016 FIRST SERVICE CREDIT UNION FIRS 7136768944 16430 PARK TEN PLACE HOUSTON TX 77084 JASON SWATSENBARG EVP/CFO 7136768944 2024-11-15 1 0 TANYA MEDGAARDEN P01717240 5074347000 2024-11-15 2023 2024-10-15 13:58:12Z DAVID BLEAZARD 16430 PARK TEN PLACE HOUSTON TX 77084 95792248 0 1 X WWW.FSCU.COM X CU 1977 TX FIRST SERVICE CREDIT UNION IS A COOPERATIVE CREDIT UNION THAT PROVIDES FINANCIAL PRODUCTS AND SERVICES TO MEMBERS. 12 8 365 12 5428189 0 0 0 68913465 80905576 3200036 5008507 -924717 -463147 71188784 85450936 0 0 3776353 11157703 23467016 24451070 0 0 0 33776609 38592757 61019978 74201530 10168806 11249406 1392074135 1331618730 1259395104 1189674966 132679031 141943764 FIRST SERVICE CREDIT UNION IS A COOPERATIVE CREDIT UNION THAT PROVIDES FINANCIAL PRODUCTS AND SERVICES TO MEMBERS. 0 0 FIRST SERVICE CREDIT UNION OFFERS SAVINGS ACCOUNTS TO MEMBERS OF ALL AGES THAT PAY DIVIDENDS ON A MONTHLY BASIS. WE HAD 96,225 MEMBERS AS OF DECEMBER 31, 2023. MEMBERS CAN ACCESS THEIR SAVINGS ACCOUNTS THROUGH OUR BRANCH NETWORK, INCLUDING OUR NATIONWIDE SHARED BRANCHING NETWORK. MEMBERS CAN ALSO ACCESS THEIR SAVINGS ACCOUNTS VIA HOME BANKING, TELEPHONE, MOBILE DEVICES AND ATMS. WE ALSO OFFER SPECIAL SAVINGS ACCOUNTS FOR CHILDREN AND TEENAGERS TO ENCOURAGE THE DEVELOPMENT OF CONSISTENT SAVINGS HABITS. FIRST SERVICE CREDIT UNION OFFERS CHECKING ACCOUNTS FOR OUR MEMBERS. SOME OF OUR CHECKING ACCOUNTS PAY DIVIDENDS ON A MONTHLY BASIS. CHECKING ACCOUNTS CAN BE ACCESSED THROUGH OUR BRANCH NETWORK AND A NATIONWIDE SHARED BRANCHING NETWORK. MEMBERS CAN ALSO ACCESS THEIR CHECKING ACCOUNTS VIA HOME BANKING, TELEPHONE, MOBILE DEVICES AND ATMS. MEMBERS CAN ALSO PAY BILLS ONLINE USING OUR FREE BILL PAY SERVICE. FIRST SERVICE CREDIT UNION PROVIDES LOANS TO MEMBERS FOR A VARIETY OF LOAN TYPES SUCH AS NEW AND USED AUTOS, UNSECURED, BOAT, MOTORCYCLE, RECREATIONAL AND REAL ESTATE AT VERY COMPETITIVE RATES WITH NO PRE-PAYMENT PENALTIES. 0 0 0 0 0 0 0 1 0 1 0 0 0 1 1 0 1 0 1 1 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 10627 0 1 365 1 1 1 0 0 0 0 0 0 0 1 0 X 12 8 0 0 0 0 1 1 1 1 1 0 1 1 1 1 1 1 1 1 1 1 0 X JASON SWATSENBARG 7136768968 16430 PARK TEN PLACE HOUSTON TX 77084 THOMAS BULLARD SECRETARY 1.00 X X 0 0 0 JANET HILL DIRECTOR 1.00 X 0 0 0 KOURTNEY CALHOUN CHAIR 1.00 X X 0 0 0 PAUL LOVE VICE CHAIR 1.00 X X 0 0 0 DOUG ESMOND TREASURER 1.00 X X 0 0 0 DAVID ITZ DIRECTOR 1.00 X 0 0 0 WAYNE TAYLOR DIRECTOR 1.00 X 0 0 0 DOMONIQUE VARNER DIRECTOR 1.00 X 0 0 0 DAVID BLEAZARD PRESIDENT/CEO 50.00 X 1486892 0 210345 SONYA HARRIS CHIEF LENDING OFFICER 50.00 X 168948 0 23282 DAVID DANG CIO 50.00 X 176586 0 79125 JANA HEATON CFO 50.00 X 417381 0 52283 JONATHAN SHURTZ CHIEF ADMIN OFFICER AND IN 50.00 X 192023 0 35101 NOLAN WALTMAN CHIEF GROWTH OFFICER 50.00 X 165158 0 31829 TY ROBBINS CHIEF DATA OFFICER 50.00 X 167142 0 17118 TERI EDGE CHIEF OPERATING OFFICER 50.00 X 188183 0 11022 MATTHEW DOWNING PRESIDENT OF ECU TECHNOLOGY 50.00 X 211913 0 27035 JASON SWATSENBARG EVP/CFO 50.00 X 172262 0 23835 FRANK HALSTEAD CRO 50.00 X 143181 0 83983 RAFAEL BALDERRABANO CFS ADVISOR 50.00 X 152066 0 13629 MICHAEL ALEXANDER FINANCIAL ADVISOR 50.00 X 162043 0 3513 SABY JOLIET VP- ACCOUNTING 50.00 X 139186 0 27305 WESLEY S GILMAN DIRECTOR 30.00 X 121543 0 13699 TAMARA WEBB VICE PRESIDENT OF SALES 50.00 X 193038 0 14200 ETHAN FERRELL SENIOR VICE PRESIDENT 50.00 X 142586 0 21881 4400131 0 689185 34 0 1 0 AMERICAN SERVICE GROUP PO BOX 3400 CONROE TX 77305 WARRANTY 4105251 AMERICAN NATIONAL INS CO PO BOX 9007 LEAGUE CITY TX 775749007 CREDIT LIFE AND DISABILITY INSURANCE 1184189 ENDURANCE BUILDERS LLC 2900 NORTH LOOP WEST SUITE 100 HOUSTON TX 77092 GENERAL CONTRACTOR 934752 CORELATION INC 2305 HISTORIC DECATUR RD STE 300 SAN DIEGO CA 921066073 CORE PROCESSING SOFTWARE 921056 ACCESS SOFTEK INC PO BOX 51581 LOS ANGELES CA 900515881 DIGITAL BANKING SOFTWARE 864446 55 LOAN INTEREST 522100 55099679 55099679 OTHER OPERATING INCOME 522100 13921203 13921203 OTHER FEES & CHARGES 522100 11884694 6456505 5428189 80905576 5489084 5489084 9856735 4000 10341312 0 -484577 4000 -480577 -480577 OTHER NON-INTEREST INCOME 522100 -463147 -463147 -463147 85450936 74533663 5428189 5489084 11157703 3857463 16586193 428808 1823885 1754721 211873 506345 302335 6254200 1365799 6945072 2481378 568506 4187788 4304470 CREDIT LOSS EXPENSE 7361845 LOAN SERVICING EXPENSE 2640849 SECURITY EXPENSE 848851 MISC OPERATING EXPENSES 500778 112668 74201530 91463780 75012225 4727000 3394502 1012373519 998450308 2389018 2569498 70712365 24833775 46441235 45878590 171483585 131567671 15649299 17096365 8268499 6909294 39278200 50740277 1392074135 1331618730 26433193 22632116 566004 981517 115000000 108500000 1117395907 1057561333 1259395104 1189674966 X 0 0 0 0 132679031 141943764 132679031 141943764 1392074135 1331618730 X 11249406 -934092 -1050581 X X 0 1 X 1 0 0 1 X 12560977 12560977 33711002 8536682 25174320 2011930 1541757 470173 14939224 10442064 4497160 7489232 4313272 3175960 45878590 MEMBER SHARES AND CDS 1057520124 ALLOWANCE FOR CREDIT LOSSES ON OFF-BALANCE SHEET CREDIT EXPENSES 41209 1057561333 X 86398662 947726 947726 85450936 0 85450936 75149257 947727 947727 74201530 0 74201530 PART IV, LINE 2B: THE CREDIT UNION HOLDS FUNDS IN ESCROW TO PAY TAXES AND INSURANCE ON BEHALF OF ITS MORTGAGE LOAN MEMBERS. PART X, LINE 2: THE CREDIT UNION IS EXEMPT FROM MOST FEDERAL, STATE, AND LOCAL TAXES UNDER THE PROVISIONS OF THE INTERNAL REVENUE CODE AND STATE TAX LAWS. HOWEVER, THE CREDIT UNION IS SUBJECT TO UNRELATED BUSINESS INCOME TAX. THE INCOME TAXES TOPIC OF THE FASB ASC CLARIFIES ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES REPORTED IN THE FINANCIAL STATEMENTS. THE INTERPRETATION PROVIDES CRITERIA FOR ASSESSMENT OF INDIVIDUAL TAX POSITIONS AND A PROCESS FOR RECOGNITION AND MEASUREMENT OF UNCERTAIN TAX POSITIONS. TAX POSITIONS ARE EVALUATED ON WHETHER THEY MEET THE "MORE LIKELY THAN NOT" STANDARD FOR SUSTAINABILITY ON EXAMINATION BY TAX AUTHORITIES. MANAGEMENT HAS DETERMINED THERE ARE NO MATERIAL UNCERTAIN TAX POSITIONS. THE CREDIT UNION WHOLLY OWNS A CONSOLIDATED CUSO. THE CUSO HAS ELECTED TO BE CONSIDERED A "DISREGARDED ENTITY" FOR TAX PURPOSES. THUS, THE CUSO'S INCOME AND EXPENSES ARE CONSIDERED INCOME AND EXPENSES BY ITS SINGLE OWNER, FIRST SERVICE CREDIT UNION. PART XI, LINE 2D - OTHER ADJUSTMENTS: OTHER NON-INTEREST INCOME 463,147. LOSS ON OTHER INVESTMENTS 475,110. LOSS ON EQUITY & TRADING DEBT 9,467. ROUNDING 2. PART XII, LINE 2D - OTHER ADJUSTMENTS: OTHER NON-INTEREST INCOME 463,147. LOSS ON OTHER INVESTMENTS 475,110. LOSS ON EQUITY & TRADING DEBT 9,467. ROUNDING 3. SOUTH ASIA 1 11 PROGRAM SERVICES QA TESTERS AND PROGRAMMERS 316560 1 11 0 0 1 11 316560 0 316560 0 0 0 0 0 0 PART I, LINE 2: N/A - NO GRANTS X 1 1 X X X X 0 1 0 DAVID BLEAZARD PRESIDENT/CEO 407370 0 302374 0 777148 0 189861 0 20484 0 1697237 0 0 0 JANA HEATON CFO 143991 0 273390 0 0 0 44626 0 7657 0 469664 0 0 0 DAVID DANG CIO 150687 0 25899 0 0 0 70745 0 8380 0 255711 0 0 0 MATTHEW DOWNING PRESIDENT OF ECU TECHNOLOGY 189067 0 22846 0 0 0 9501 0 17534 0 238948 0 0 0 FRANK HALSTEAD CRO 120236 0 22945 0 0 0 71552 0 12431 0 227164 0 0 0 JONATHAN SHURTZ CHIEF ADMIN OFFICER AND IN 169736 0 22287 0 0 0 14949 0 20152 0 227124 0 0 0 TAMARA WEBB VICE PRESIDENT OF SALES 109207 0 83831 0 0 0 7615 0 6585 0 207238 0 0 0 TERI EDGE CHIEF OPERATING OFFICER 168704 0 19479 0 0 0 9758 0 1264 0 199205 0 0 0 NOLAN WALTMAN CHIEF GROWTH OFFICER 148523 0 16635 0 0 0 14468 0 17361 0 196987 0 0 0 JASON SWATSENBARG EVP/CFO 165311 0 6951 0 0 0 14468 0 9367 0 196097 0 0 0 SONYA HARRIS CHIEF LENDING OFFICER 148421 0 20527 0 0 0 12474 0 10808 0 192230 0 0 0 TY ROBBINS CHIEF DATA OFFICER 142788 0 24354 0 0 0 4195 0 12923 0 184260 0 0 0 SABY JOLIET VP- ACCOUNTING 139186 0 0 0 0 0 10707 0 16598 0 166491 0 0 0 RAFAEL BALDERRABANO CFS ADVISOR 26238 0 125828 0 0 0 2700 0 10929 0 165695 0 0 0 MICHAEL ALEXANDER FINANCIAL ADVISOR 33144 0 128899 0 0 0 2701 0 812 0 165556 0 0 0 ETHAN FERRELL SENIOR VICE PRESIDENT 142586 0 0 0 0 0 10266 0 11615 0 164467 0 0 0 PART I, LINE 1A GOLF CLUB MEMBERSHIP IS PROVIDED FOR THE CEO THAT IS USED PRIMARILY FOR BUSINESS USE, BUT THE CLUB ACCESS IS AVAILABLE FOR PERSONAL USE. THE PORTION USED FOR PERSONAL USE IS TAXED TO THE CEO. PART I, LINE 4B JANA HEATON, CFO, PARTICIPATED IN NON-QUALIFIED RETIREMENT PLAN. ACCRUAL OF $30,257, DISTRIBUTION OF $250K. FRANK HALSTEAD, CHIEF RISK OFFICER, PARTICIPATED IN NON-QUALIFIED RETIREMENT PLAN. ACCRUAL OF $53,070, NO DISTRIBUTIONS DURING 2023. DAVID DANG, FORMER EMPLOYEE, PARTICIPATED IN NON-QUALIFIED RETIREMENT PLAN AND THEN LEFT THE ORGANIZATION FORFEITING ANY BENEFIT. ACCRUAL WAS $39,540. REVERSAL WAS $231,733. NO DISTRIBUTIONS WERE MADE IN 2023. FORM 990, PART VI, SECTION A, LINE 6 THE CREDIT UNION'S MEMBERS HAVE RIGHTS TO ELECT THE MEMBERS OF THE GOVERNING BODY. EACH MEMBER HAS ONE VOTE REGARDLESS OF THE AMOUNT OF SERVICES THEY HAVE WITH THE CREDIT UNION. 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, 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 11B WE OFFER EACH BOARD MEMBER THE OPPORTUNITY TO REVIEW THE DOCUMENT PRIOR TO FILING. TYPICALLY, THE BOARD MEMBERS THAT ARE CPAS WOULD LIKE TO REVIEW, BUT RARELY OFFER COMMENTS. FORM 990, PART VI, SECTION B, LINE 12C THE EMPLOYEE HANDBOOK CLEARLY DEFINES WHEN A CONFLICT OF INTEREST ARISES AND REQUIRES EACH EMPLOYEE TO MAKE PROMPT AND FULL DISCLOSURE TO THE PRESIDENT/CEO OF ANY SITUATION THAT MAY INVOLVE AN EXISTING OR A POTENTIAL CONFLICT OF INTEREST. EMPLOYEES SIGN AN ACKNOWLEDGEMENT ANNUALLY STATING THAT THEY WILL REPORT ANY CONFLICTS OF INTEREST. ADDITIONALLY, EMPLOYEES ARE ENCOURAGED TO GO TO THE COMPLIANCE OFFICER FOR CONFLICTS OF INTEREST. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD HIRES AN INDEPENDENT COMPENSATION CONSULTANT TO CONDUCT A MARKET RATE ANALYSIS OF THE TOTAL COMPENSATION PACKAGE FOR THE CEO/PRESIDENT OF THE CREDIT UNION. THE BOARD REVIEWS THE CONSULTANT'S FINDINGS, DETERMINES AND APPROVES THE COMPENSATION PACKAGE FOR THE CEO/PRESIDENT. WE CONDUCT COMPENSATION SURVEYS FOR OTHER OFFICERS AND KEY EMPLOYEES OF THE ORGANIZATION IN ORDER TO DETERMINE PAY INCREASES BASED ON THE LEVEL OF RESPONSIBILITY WITHIN THE CREDIT UNION AND INDIVIDUAL JOB PERFORMANCE. THE PROCESS DESCRIBED HERE WAS LAST COMPLETED IN 2023. FORM 990, PART VI, SECTION C, LINE 19 DISCLOSED ON WEBSITE (WWW.FSCU.COM) - THE FOLLOWING DOCUMENTS ARE AVAILABLE FOR MEMBERS TO REVIEW BY CONTACTING THE CREDIT UNION IN WRITING & PROVIDING AN ADDRESS TO SEND THE REQUESTED INFORMATION: 1 - SUMMARY OF MOST RECENT ANNUAL AUDIT, 2 - BALANCE SHEET AND INCOME STATEMENT, 3 - IRS FORM 990, 4 - WRITTEN BOARD POLICY REGARDING ACCESS TO ARTICLES OF INCORPORATION, BYLAWS, RULES, GUIDELINES, BOARD POLICIES AND COPIES THEREOF. FORM 990, PART XI, LINE 9: EQUITY ACQUIRED IN MERGER CECL ADJUSTMENT -1,050,580. ROUNDING -1. FORM 990, PART XII, LINE 2C NO CHANGES FROM PRIOR YEAR. ECU TECHNOLOGY LLC 16430 PARK TEN PLACE HOUSTON TX 77084 475036601 APPLICATION SERVICE PROVIDERS TX 1397136 2300314 FIRST SERVICE CREDIT UNION