2024-11-14T10:44:34-06:00 2023-12-31 410746749 CLIFTONLARSONALLEN LLP 20 EAST THOMAS ROAD SUITE 2300 PHOENIX AZ 85012 990 2023-01-01 910659059 HARBORSTONE CREDIT UNION HARB 2535898009 PO BOX 4207 TACOMA WA 98438 MARK FAIRBANKS SVP/ CHIEF FINANCIAL OFFICER 2535898009 2024-11-12 1 1 MELISSA HANGSLEBEN P02087031 6022662248 2024-11-12 2023 2024-10-15 13:58:12Z GEOFF BULLOCK PO BOX 4207 TACOMA WA 98438 93204370 0 X WWW.HARBORSTONE.COM X 1955 WA HARBORSTONE CREDIT UNION EXISTS TO BE AN ANCHOR OF TRUST. 9 9 351 14 164034 0 0 0 67873186 79638564 7591430 11614888 1278341 1857246 76742957 93110698 380740 474000 3978357 21204719 28203543 28635173 0 0 0 30231379 35697815 62794019 86011707 13948938 7098991 1861434553 1907287967 1704766600 1741880043 156667953 165407924 THE CREDIT UNION IS A MEMBER OWNED, NOT FOR PROFIT, COOPERATIVE, OPERATED FOR THE PURPOSE OF CREATING A MEANS WHEREBY MEMBERS CAN PROVIDE EACH OTHER WITH NEEDED FINANCIAL SERVICE. 0 0 PROVIDING CONSUMER AND MORTGAGE LOANS FOR 40,810 MEMBERS TOTALING $1,120,221,564. PROVIDING BUSINESS LOANS TO 278 MEMBERS TOTALING $235,691,169. MAINTAINING DEPOSITS ON 88,207 MEMBERS AND BUSINESS ACCOUNTS TOTALING $1,675,760,952. 0 0 1 0 0 0 0 0 0 1 0 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 26618 0 1 351 1 1 1 0 0 0 0 0 1 0 X 9 9 0 0 0 0 1 1 1 1 1 0 1 1 1 1 1 1 1 1 1 1 0 X MARK FAIRBANKS 2535898009 PO BOX 4207 TACOMA WA 98438 ANN ANDERSON CHAIR 2.00 X X 29448 0 377 RICK STEVENS VICE CHAIR 2.00 X X 15000 0 377 SHELLIE WILLIS SECRETARY 2.00 X X 20455 0 377 BONNIE KERN DIRECTOR 2.00 X 16375 0 377 FRANKLIN DONAHOE DIRECTOR 2.00 X 22875 0 377 IVAN BARRON DIRECTOR 2.00 X 20376 0 377 JAMES BUCK DIRECTOR 2.00 X 15750 0 377 LINDA CRANE NELSEN DIRECTOR 2.00 X 21243 0 377 MICHAEL GEDEON DIRECTOR 2.00 X 20912 0 377 GEOFF BULLOCK PRESIDENT & CEO 40.00 X 717189 0 23402 ROBERT LUETTJOHANN SR VP CLO 40.00 X 354163 0 31056 STEVE CROSBY SR VP COO 40.00 X 275986 0 40550 FOREST HAYES SR VP CFO (THRU 7/26/23) 40.00 X 773255 0 32859 LISA STIRGUS SR VP CXO (THRU 1/27/23) 40.00 X 495721 0 9670 MICHAEL DECIUS SR VP CIO (THRU 7/2023) 40.00 X 257851 0 32912 MARK FAIRBANKS SR VP CFO 40.00 X 181300 0 37576 THERESA WALYOR SR VP CIO 40.00 X 209588 0 31583 TIM HOEFEL SR VP CRO 40.00 X 128041 0 7802 JAY OLSON VP RISK MANAGEMENT 40.00 X 213816 0 24456 JAMES GRECO VP CREDIT AND COLLECTIONS 40.00 X 185552 0 13465 RAMANDEEP SINGH VP RETAIL 40.00 X 156942 0 12494 SYED FARAZ HUSSAIN VP BUSINESS SALES AND SERVICE 40.00 X 150042 0 256 SCOTT BECKWITH VP BUSINESS SALES AND SERVICE 40.00 X 190920 0 34350 PHIL JONES FORMER PRESIDENT & CEO 40.00 X 1862500 0 0 6335300 0 335824 39 1 1 0 NCR CORPORATION PO BOX 740641 LOS ANGELES CA 90074 ONLINE BANKING PROVIDER 2333150 PSCU 560 CARILLON PARKWAY ST PETERSBURG FL 33716 DEBIT CARD ISSUER AND NETWORK PROCESSOR 1622283 VISA USA PO BOX 742233 LOS ANGELES CA 90074 DEBIT & CREDIT CARD NETWORK PROCESSOR 979132 FIDELITY INFORMATION SERVICES INC PO BOX 4535 CAROL STREAM IL 60197 CORE PROCESSOR, CHECK PROCESSING 922884 COOK SOLUTIONS GROUP 9225 NE CASCADES PARKWAY PORTLAND OR 97220 ATM, TCR & SECURITY EQUIPMENT SERVICING 892253 56 INTEREST FROM LOANS 522100 67618916 67618916 INTERCHANGE INCOME 522100 6671482 6671482 MORTGAGE SERVICING RIGHTS 522100 2443657 2443657 NONSUFFICIENT FUNDS AND OVERDRAFT 522100 1335781 1335781 REVENUE-SHARING INCOME 522100 843002 843002 725726 561692 164034 79638564 11619530 11619530 125253 89030 36223 36223 36223 4642 -4642 -4642 -4642 MISCELLANEOUS REVENUE 900099 1771114 1771114 NCUA DIVIDENDS 900099 49909 49909 1821023 93110698 79474530 164034 13472134 474000 21204719 3826331 18133220 2122005 2856875 1696742 228743 100775 18632 5659560 2071502 3270056 2470874 2173791 184572 184711 3409208 2167803 262498 PROVISION FOR LOAN LOSS 7397382 LOAN SERVICING 3558308 ATM PROCESSING 1040645 OTHER EXPENSES 572053 926702 86011707 5269112 5414370 70355914 86739292 6310819 5814237 3610520 3171728 1323573699 1355796740 3263827 3455927 56980008 32689848 24747620 24290160 366209482 366393209 3797083 2619099 307024 53989453 53593205 1861434553 1907287967 16394653 12774619 25109431 55086440 1663262516 1674018984 1704766600 1741880043 X 0 0 0 0 156667953 165407924 156667953 165407924 1861434553 1907287967 X 7098991 8059729 -6418749 X X 0 1 X 1 0 18632 0 0 18632 18632 1 GOWEST CREDIT UNION ASSOCIATION 18000 INTERNATIONAL BLVD SUITE 350 SEATAC WA 98188 910460483 18632 0 PART I-A, LINE 1: CONTRIBUTED TO THE CREDIT UNION LEGISLATIVE ACTION FUND 6703187 6703187 23811322 12256832 11554490 7146716 4673776 2472940 18211521 15759240 2452281 1107262 1107262 24290160 MEMBERS' SHARE AND SAVINGS ACCOUNTS 1674018984 1674018984 X 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. 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. 1 JUNIOR ACHIEVEMENT OF WASHINGTON 1700 WESTLAKE AVE SUITE 400 SEATTLE WA 98109 910604913 501(C)(3) 73750 0 CREATING A STOREFRONT TO SUPPORT AND EDUCATE YOUTH ON FINANCIAL SERVICES UW FOSTER SCHOOL OF BUSINESS PO BOX 353200 SEATTLE WA 98195 916001537 501(C)(3) 55000 0 SPONSORSHIP FOR BOARD FELLOW PROGRAM JBLM DFMWR (DIRECTORATE OFMORALE WELFARE AND RECREATION) BLDG 2013B N 3RD ST BOX 339500 MS 20 JOINT BASE LEWISMCCHOR WA 98433 910976994 501(C)(3) 50625 0 SPONSORING JBLM 2023 AIRSHOW BUSINESS IMPACT NW (SEATTLE ECONOMIC DEVELOPMENT) 1437 S JACKSON ST SEATTLE WA 98144 911764008 501(C)(3) 50000 0 SPONSORSHIP FOR SUPPORTING SMALL BUSINESS AND WA STATE GRADUATES STARTING THEIR OWN BUSINESS SOUND OUTREACH 1106 MARTIN LUTHER KING JR WAY TACOMA WA 98405 911741624 501(C)(3) 30000 0 HELP LOW INCOME COMMUNITIES THROUGH FINANCIAL COACHING, SERVICES AND JOB TRAINING PIKE PLACE MARKET FOUNDATION 93 PIKE ST SUITE 310 SEATTLE WA 98101 911197625 501(C)(3) 20000 0 DONATION TO SUPPORT LOW INCOME NEIGHBORS BY FUNDRAISING AND COMMUNITY BUILDING BOYS AND GIRLS CLUB OF SOUTH PUGET SOUND 3875 S 66TH ST STE 101 TACOMA WA 98409 910759832 501(C)(3) 10000 0 SPONSORSHIP TO SUPPORT LEGACY OF HOPE EVENT AMERICAN CANCER SOCIETY OF WASHINGTON INC 1324 FOREST AVE STE 420 STATEN ISLAND NY 10302 814392579 501(C)(3) 11550 0 SPONSORSHIP TO SUPPORT 5 WALKS LAKEWOOD MULTICULTURAL COALITION 6000 MAIN ST SW LAKEWOOD WA 98499 604340264 501(C)(3) 10250 0 PLEDGE TO SUPPORT DIVERSITY IN OUT COMMUNITIES TACOMA PIERCE COUNTY HABITAT FOR HUMANITY 4824 SOUTH TACOMA WAY TACOMA WA 98409 581735531 501(C)(3) 10250 0 SPONSORSHIPS TO SUPPORT AFFORADBLE HOUSING INITIATIVES BOYS AND GIRLS CLUB OF KING COUNTY 603 STEWART ST STE 300 SEATTLE WA 98101 910759832 501(C)(3) 10000 0 SPONSORSHIP TO SUPPORT SOUTHWEST CLUBS FAMILY FIRST COMMUNITY CENTER FOUNDATION 241 WILLIAMS AVE S STE E RENTON WA 98057 831031937 501(C)(3) 10000 0 SPONSORSHIP TO SUPPORT THE ANNUAL BUDGET CAMPAIGN PIERCE MILITARY AND BUSINESS ALLIANCE (PMBA) 2822 EAST BAY DRIVE GIG HARBOR WA 98335 383675245 501(C)(3) 10000 0 DONATION TO SUPPORT MILITARY COMMUNITIES GREATER SEATTLE BUSINESS ASSOCIATION (GSBA) SCHOLARSHIP FUND 400 E PINE ST STE 322 SEATTLE WA 98122 943138514 501(C)(3) 7750 0 SPONSORSHIP TO SUPPORT LEADERSHIP AND EDUCATION IN LGBTQ+ COMMUNITIES BIG BACKYARD 5K 10028 136TH AVE NE KIRKLAND WA 98033 273388960 501(C)(3) 7000 0 SPONSORSHIP TO SUPPORT KING COUNTY PARKS AND OPERATIONS TABOR 100 INC 7100 FORT DENT WAY STE 100 TUKWILA WA 98188 912013635 501(C)(3) 5500 0 SPONSORSHIP TO SUPPORT SCHOLARSHIPS TO STUDENTS IN GREEN AND SUSTAINABLE ENERGY FIELDS PILCHUCK GLASS SCHOOL 240 2ND AVE S STE 100 SEATTLE WA 98104 910963132 501(C)(3) 5100 0 SPONSORSHIP TO SUPPORT ARTS EDUCATION 17 0 PART I, LINE 2: REQUESTS FOR GRANTS ARE EVALUATED BY THE CREDIT UNION QUARTERLY. ORGANIZATIONS REQUESTING OR RECEIVING GRANTS UNDER $2,500 MUST PROVIDE THEIR IRS EXEMPTION LETTER STATING THEY ARE A 501(C)(3), A CORPORATE GIVING APPLICATION PRODUCED BY THE CREDIT UNION, A COMPLETED BUDGET FOR THE EVENT OR PROJECT AND EXPLAIN THE SOURCES OF REVENUE AND SUPPORTING DOCUMENTATION FOR USE OF FUNDS. THE CORPORATE GIVING APPLICATION REQUESTS THE GRANT'S PURPOSE, HOW THE FUNDS WILL BE USED AND HOW THE FUNDS WILL IMPACT THE LOCAL COMMUNITY. X 1 1 X X X X 1 1 0 PHIL JONES FORMER PRESIDENT & CEO 378576 0 0 0 1483924 0 0 0 0 0 1862500 0 1483924 0 FOREST HAYES SR VP CFO (THRU 7/26/23) 208825 0 0 0 564430 0 21178 0 11681 0 806114 0 266470 0 GEOFF BULLOCK PRESIDENT & CEO 624841 0 0 0 92348 0 0 0 23402 0 740591 0 0 0 LISA STIRGUS SR VP CXO (THRU 1/27/23) 27695 0 0 0 468026 0 8863 0 807 0 505391 0 231726 0 ROBERT LUETTJOHANN SR VP CLO 245047 0 0 0 109116 0 19603 0 11453 0 385219 0 98300 0 STEVE CROSBY SR VP COO 267734 0 0 0 8252 0 21418 0 19132 0 316536 0 0 0 MICHAEL DECIUS SR VP CIO (THRU 7/2023) 253339 0 0 0 4512 0 20078 0 12834 0 290763 0 0 0 THERESA WALYOR SR VP CIO 190411 0 14669 0 4508 0 20083 0 11500 0 241171 0 0 0 JAY OLSON VP RISK MANAGEMENT 194504 0 19072 0 240 0 15486 0 8970 0 238272 0 0 0 SCOTT BECKWITH VP BUSINESS SALES AND SERVICE 168478 0 17517 0 4925 0 14218 0 20132 0 225270 0 0 0 MARK FAIRBANKS SR VP CFO 163979 0 13813 0 3508 0 12326 0 25250 0 218876 0 0 0 JAMES GRECO VP CREDIT AND COLLECTIONS 169027 0 16219 0 306 0 5080 0 8385 0 199017 0 0 0 RAMANDEEP SINGH VP RETAIL 138179 0 13287 0 5476 0 12091 0 403 0 169436 0 0 0 SYED FARAZ HUSSAIN VP BUSINESS SALES AND SERVICE 131057 0 14105 0 4880 0 0 0 256 0 150298 0 0 0 PART I, LINE 1B TRAVEL FOR COMPANIONS: SPOUSES/COMPANIONS ARE ALLOWED TO TRAVEL WITH EXECUTIVE MANAGEMENT AND BOARD MEMBERS AND IS LIMITED TO $600. PART I, LINES 4A-B THE FOLLOWING INDIVIDUALS RECEIVED A SEVRANCE PAYMENT DURING 2023 - FOREST HAYES, SR. VP CFO - $297,960 LISA STIRGUS, SR. VP CXO - $236,300 457F PLAN: THE CREDIT UNION HAS UNFUNDED DEFERRED COMPENSATION AGREEMENTS WITH MEMBERS OF THE EXECUTIVE MANAGEMENT TEAM THAT PROVIDE BENEFITS PAYABLE TO THESE EMPLOYEES IF THEY REMAIN EMPLOYED BY THE CREDIT UNION UNTIL A SPECIFIC DATE. IF THESE EMPLOYEES BECOME FULLY DISABLED OR UPON DEATH, A PORTION OF THE BENEFIT WILL BE DISBURSED AS DEFINED IN THE AGREEMENTS. THE BENEFITS ARE SUBJECT TO FORFEITURE IF EMPLOYMENT IS TERMINATED FOR CAUSE OR IF THE EMPLOYEE IS NO LONGER EMPLOYED BY THE CREDIT UNION ON THE PAYMENT DATE AS DEFINED. THE ESTIMATED LIABILITY UNDER THE AGREEMENTS IS BEING ACCRUED OVER THE REMAINING TERM OF EACH AGREEMENT. NO EMPLOYEES RECEIVED CONTRIBUTIONS UNDER THIS PLAN DURING 2023. THE FOLLOWING EMPLOYEES RECEIVED DISTRIBUTIONS FROM THIS PLAN DURING 2023. PHIL JONES - $1,483,924 FOREST HAYES - $$266,470 LISA STIRGUS - $231,726 ROBERT LUETTJOHANN - $98,300 ANN ANDERSON BOARD CHAIR HELOC X 100000 66771 0 1 1 ANN ANDERSON BOARD CHAIR VEHICLE X 26656 22675 0 1 1 ANN ANDERSON BOARD CHAIR MORTGAGE X 278500 219205 0 1 1 MICHAEL GEDEON BOARD MEMBER MORTGAGE X 563000 484451 0 1 1 MIKE DECIUS SR VP CIO MORTGAGE X 513000 443588 0 1 1 MIKE DECIUS SR VP CIO VEHICLE X 43530 6803 0 1 1 STEVE CROSBY SR VP COO VEHICLE X 54085 3863 0 1 1 STEVE CROSBY SR VP COO MORTGAGE X 570000 478972 0 1 1 STEVE CROSBY SR VP COO HELOC X 75000 28678 0 1 1 ROBERT LUETTJOHANN SR VP CLO MORTGAGE X 800000 731589 0 1 1 MARK FAIRBANKS SR VP CFO MORTGAGE X 355000 322006 0 1 1 MARK FAIRBANKS SR VP CFO HELOC X 125000 75556 0 1 1 THERESA WALYOR SR VP CIO MORTGAGE X 328000 287571 0 1 1 3171728 FORM 990, PART VI, SECTION A, LINE 1A THE PURPOSE OF THE EXECUTIVE COMMITTEE IS TO ACT IN AREAS WHERE AND WHEN THE FULL BOARD CANNOT PROVIDE A QUICK, RESPONSIVE DECISION AND TO MAKE DECISIONS FOR THE BOARD AS SPECIFICALLY DELEGATED. MEMBERS OF THE EXECUTIVE COMMITTEE WHO ARE ABLE TO VOTE SHALL INCLUDE THE CHAIR, VICE CHAIR AND SECRETARY OF THE BOARD. PROVIDING GUIDANCE AND COUNSEL TO THE EXECUTIVE COMMITTEE WHO IS NON-VOTING MAY INCLUDE THE PRESIDENT/CEO. THE CHAIR OF THE BOARD SHALL BE THE CHAIR OF THE EXECUTIVE COMMITTEE. AT ALL MEETINGS OF THE EXECUTIVE COMMITTEE, EACH DIRECTOR PRESENT SHALL HAVE ONE VOTE ON ANY MATTER AND EXCEPT AS OTHERWISE PROVIDED BY THE ACT OR THESE BYLAWS, THE ACTION OF A MAJORITY OF EXECUTIVE COMMITTEE MEMBERS AT A MEETING SHALL BE THE ACT OF THE EXECUTIVE COMMITTEE. THE EXECUTIVE COMMITTEE WILL HAVE THE AUTHORITY TO EXERCISE ALL OF THE POWERS OF THE BOARD, EXCEPT THAT THE EXECUTIVE COMMITTEE WILL NOT HAVE THE AUTHORITY OF THE BOARD IN REFERENCE TO: - AMENDING THE CREDIT UNION'S BYLAWS OR ARTICLES OF INCORPORATION - EXERCISING THE NON-DELEGABLE POWERS UNDER THE ACT - REMOVING OR SUSPENDING OFFICERS FROM THEIR OFFICE UNDER ARTICLE 6 SECTION 6.4 OR COMMITTEE MEMBERS FROM THEIR COMMITTEES - APPOINTING INTERIM DIRECTORS UNDER ARTICLE 6, SECTION 6.5 - SUSPEND BOARD OR SUPERVISORY COMMITTEE MEMBERS - ADOPTING A PLAN OF MERGER OR LIQUIDATION, OR CHANGING THE CHARTER OF THE CREDIT UNION. 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 THOSE WHO LIVE, WORK, WORSHIP, OR GO TO SCHOOL IN THE STATE OF WASHINGTON. 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 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 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 ON AN ANNUAL BASIS, ALL EMPLOYEES & VOLUNTEERS ARE REQUIRED TO REVIEW THE CONFLICT OF INTEREST POLICY. SIGNATURES ARE OBTAINED VERIFYING THAT THEY ATTEST TO HAVING READ THE POLICY. ADDITIONALLY, EACH NEW EMPLOYEE HIRED BY THE CREDIT UNION REVIEWS THE CONFLICT OF INTEREST POLICY ON THEIR FIRST DAY OF EMPLOYMENT. IF A SITUATION ARISES INVOLVING A CONFLICT OF INTEREST, IT SHALL BE REPORTED TO THE PRESIDENT/CEO OR TO THE CHAIR OF THE BOARD OF DIRECTORS, AS APPLICABLE, IN ORDER TO PERMIT CONSIDERATION OF THE CIRCUMSTANCES AND THEREBY TO RELIEVE THE INDIVIDUAL(S) REPORTING SUCH A CONFLICT FROM LIABILITY. EACH INSTANCE OF A CONFLICT OF INTEREST SHALL BE ADDRESSED DURING THE NEXT BOARD MEETING FOLLOWING ITS SUBMISSION. ANY DISCUSSION CONCERNING THE CONFLICT OF INTEREST SHALL BE NOTED IN THE MINUTES OF THE MEETING. A MEMBER OF THE BOARD OF DIRECTORS SHALL NOT VOTE ON ANY CONFLICT OF INTEREST ITEM CONCERNING HIM/HERSELF. FORM 990, PART VI, SECTION B, LINE 15 WE UTILIZE VARIOUS REPUTABLE, THIRD-PARTY MARKET DATA SOURCES (MILLIMAN, CUES, ETC.) TO AID IN SETTING THE COMPENSATION OF THE PRESIDENT/CEO. COMPENSATION DECISIONS FOR THE PRESIDENT/CEO ARE MADE BY THE BOARD OF DIRECTORS. COMPENSATION IS REVIEWED ANNUALLY AND AS SUCH WAS REVIEWED IN 2023. THE COMPENSATION DECISION IS DOCUMENTED IN THE EMPLOYEE'S PERSONNEL FILE. WE UTILIZE VARIOUS REPUTABLE, THIRD-PARTY MARKET DATA SOURCES (MILLIMAN, CUES, ETC.) TO AID IN SETTING THE COMPENSATION OF OUR OTHER OFFICERS AND KEY EMPLOYEES. GENERALLY, FINAL COMPENSATION DECISIONS ARE MADE BY THE SENIOR VICE PRESIDENT/CHIEF OPERATIONS OFFICER. COMPENSATION DECISIONS FOR THE EXECUTIVE VICE PRESIDENT AND ALL OTHER SENIOR VICE PRESIDENT POSITIONS ARE MADE BY THE PRESIDENT/CEO. THIS DECISION IS REVIEWED ANNUALLY AND AS SUCH WAS REVIEWED IN 2023. THE COMPENSATION DECISION IS DOCUMENTED IN THE EMPLOYEE'S PERSONNEL FILE. THE PROCESS DESCRIBED HERE WAS LAST COMPLETED IN 2023. 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: CHANGE IN CASH SURRENDER VALUE OF LIFE INSURANCE POLICIES 657,740. REVERSAL OF OVER ACCRUED LEGAL EXPENSES 264,586. REVERSAL OF DEFERRED INTEREST ON MORTGAGE LOANS 64,592. CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE - ASC 326 -7,405,667. FORM 990, PART XII, LINE 2C: THE ORGANIZATION DID NOT CHANGE ITS OVERSIGHT OR SELECTION PROCESS FOR AN INDEPENDENT ACCOUNTANT DURING THE TAX YEAR. CU SERVICES GROUP LLC 9611 GRAVELLY LAKE DR SW LAKEWOOD WA 98499 262064794 BUSINESS LENDING WA 705359 13654274 HARBORSTONE CREDIT UNION