2022-11-15T15:10:52-06:00 2021-12-31 910189318 MOSS ADAMS LLP 2707 COLBY AVENUE SUITE 801 EVERETT WA 98201 990 2021-01-01 910219005 VERITY CREDIT UNION VERI 8004444589 11027 MERIDIAN AVENUE NORTH SEATTLE WA 98133 BRAD TANBERG CFO 8004444589 2022-11-15 1 BRAD TANBERG 999009999 COLLEEN RAMIRES P01251320 4252597227 2022-11-15 3 AAL1 IAL1 2021 2022-09-23 18:48:47Z BRAD TANBERG 11027 MERIDIAN AVENUE NORTH SEATTLE WA 98133 50396391 0 X WWW.VERITYCU.COM X CREDIT UNION 1933 WA A COOPERATION ORGANIZED FOR THE PURPOSE OF PROMOTING THRIFT AND SAVINGS AMONG ITS MEMBERS. 7 7 174 20 662343 0 0 0 31593503 34489559 1015108 999427 307864 360748 32916475 35849734 78700 171973 0 0 11593691 12965332 0 0 0 19665932 15010507 31338323 28147812 1578152 7701922 692415165 786265441 632921587 720037204 59493578 66228237 X SEE SCH O 0 0 VERITY CREDIT UNION IS A WASHINGTON STATE CHARTERED CREDIT UNION THAT SERVES 38,690 MEMBER OWNERS. VERITY'S PRIMARY FIELD OF MEMBERSHIP INCLUDES ALL INDIVIDUALS THAT RESIDE, WORK, WORSHIP, OR ATTEND SCHOOL IN ANY WASHINGTON STATE SCHOOL DISTRICT. VERITY OFFERS A FULL RANGE OF DEPOSIT, LOAN, AND INVESTMENT PRODUCTS AND SERVICES THROUGH SIX FULL BRANCHES, A CALL CENTER, AND ONLINE ACCOUNT SERVICES. VERITY CREDIT UNION OFFERS A FULL-SERVICE INVESTMENT PROGRAM WITH TWO REGISTERED INVESTMENT REPRESENTATIVES AND A SUPPORT REPRESENTATIVE. AS OF DECEMBER 31, 2021, VERITY'S INVESTMENT SERVICES PROGRAM HAD 1,079 MEMBERS WHO HAVE 2,291 ACCOUNTS, AND $231,896,037 IN ASSETS UNDER MANAGEMENT. VERITY CREDIT UNION OFFERS FREE FINANCIAL COUNSELING TO ITS MEMBERS. SPECIFIC SERVICES INCLUDE FINANCIAL PLANNING, DEBT MODIFICATION ON LOANS FROM VERITY AND OTHER CREDITORS, AND DIRECT ASSISTANCE IN UTILIZING THE GOVERNMENT SPONSORED MORTGAGE RELIEF PROGRAMS. 0 0 0 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 0 1 1 0 0 1 16716 0 1 174 1 1 1 0 0 0 0 0 0 0 X 7 7 0 0 0 0 1 1 1 1 1 0 0 0 1 1 1 1 1 1 1 0 X TONITA WEBB 8004445304 11027 MERIDIAN AVENUE NORTH SEATTLE WA 98133 TONITA WEBB CHIEF EXECUTIVE OFFICER 40.00 X 380134 0 10060 JUSTIN MARTIN EXECUTIVE VICE PRESIDENT 40.00 X 261089 0 24530 JOHN ZMOLEK CHIEF EXECUTIVE OFFICER (THRU 4/21) 40.00 X 230752 0 17372 BRAD TANBERG CHIEF FINANCIAL OFFICER 40.00 X 217529 0 19265 TINA NARRON CHIEF LENDING OFFICER 40.00 X 202618 0 15430 KEN BUTLER DIRECTOR OF INVESTMENT SERVICES 40.00 X 199613 0 13954 JASON HIRL CHIEF TECHNOLOGY OFFICER 40.00 X 188727 0 14867 JOHN BENNER COMMERCIAL LOAN OFFICER 40.00 X 181877 0 14593 ANGELA LOWE CHIEF HUMAN RESOURCES OFFICER 40.00 X 168203 0 12978 HEIDI WESLEY-CLEVELAND CHIEF MARKETING OFFICER 1.00 X 141484 0 17181 GREGORY VERMILLION DIRECTOR OF INFORMATION TECHNOLOGY 40.00 X 135775 0 16428 JOSHUA SIDELL DIRECTOR OF MEMBER EXPERIENCE 40.00 X 145995 0 5453 NANCY WOODLAND CHAIRPERSON 5.00 X X 0 0 0 ZACHARY GOSE CHAIRPERSON (THRU 4/21) 5.00 X X 0 0 0 MICHELLE PHAM VICE CHAIRPERSON 5.00 X X 0 0 0 BENJAMIN LUNDELL VICE CHAIRPERSON (THRU 4/21) 5.00 X X 0 0 0 NICHOLAS ETSCHEID BOARD SECRETARY 5.00 X X 0 0 0 EVAN GAY BOARD SECRETARY (THRU 4/21) 5.00 X X 0 0 0 VIKASH CHHAGAN BOARD MEMBER 5.00 X 0 0 0 MICHAEL GRENETZ BOARD MEMBER 5.00 X 0 0 0 CHAD KLEMME BOARD MEMBER 5.00 X 0 0 0 PELIN MUHARREMOGLU BOARD MEMBER 5.00 X 0 0 0 CHRIS D'ABREAU BOARD MEMBER (THRU 4/21) 5.00 X 0 0 0 ERIC ESTEBAN BOARD MEMBER (THRU 4/21) 5.00 X 0 0 0 2453796 0 182111 20 0 1 0 CATALYSIS 1601 EAST JOHN STREET SEATTLE WA 98112 MARKETING 462808 KAYE-SMITH PO BOX 956 RENTON WA 98057 MAILING SERVICES 248285 LEVEL 3 COMMUNICATIONS LLC PO BOX 910182 DENVER CO 80291 TELECOMMUNICATION 242240 RINGCENTRAL INC PO BOX 734232 DALLAS TX 75373 TELECOMMUNICATION 219819 EXPERIAN INFORMATION SOLUTIONS INC PO BOX 886133 LOS ANGELES CA 90088 CREDIT REPORTING 185702 15 INTEREST ON LOANS 522100 26486303 26473026 13277 INTERCHANGE INCOME 522100 3505770 3505770 FEES AND CHARGES 522100 3373467 3238418 135049 SUBSIDIARY INCOME 522100 1124019 627919 496100 34489559 846432 846432 376371 15623 360748 360748 17917 342831 14684029 14531034 152995 152995 152995 35849734 33845133 662343 1342258 171973 1763555 8942883 369078 1082291 807525 66089 131433 650287 730757 2048212 2913053 1203830 20229 31739 1080986 861249 162102 PURCHASED SERVICES 2125294 PROVISION FOR LOAN LOSS 922165 LOAN SERVICING 899430 1163652 28147812 8033973 6126129 69632993 125600452 1397850 4843619 4194227 4633257 539774937 589226811 1548076 2138219 24741007 16155850 9729266 8585157 46812911 36338341 4915913 6102303 497710 581150 5877309 2090003 692415165 786265441 7520932 7615221 573192 4321476 1149684 0 623677779 708100507 632921587 720037204 X 0 0 0 0 59493578 66228237 59493578 66228237 692415165 786265441 X 7701922 -1053805 -458 87000 X 0 1 X 1 0 949524 949524 9033271 5212033 3821238 5009186 3049118 1960068 9726805 7894699 1832106 22221 22221 8585157 MEMBER SHARE AND DEPOSITS 708100507 708100507 X PART X, LINE 2: THE CREDIT UNION IS A STATE-CHARTERED CREDIT UNION AS DESCRIBED IN INTERNAL REVENUE CODE (IRC) SECTION 501(C)(14) AND, AS SUCH, IS EXEMPT FROM FEDERAL TAXATION OF INCOME DERIVED FROM THE PERFORMANCE OF ACTIVITIES THAT ARE IN FURTHERANCE OF ITS EXEMPT PURPOSES. HOWEVER, IRC SECTION 511 IMPOSES A TAX ON THE UNRELATED BUSINESS INCOME (AS DEFINED IN SECTION 512) DERIVED BY STATE-CHARTERED CREDIT UNIONS. MANY STATES HAVE SIMILAR LAWS. THE SPECIFIC APPLICATION OF SECTION 512 TO THE VARIOUS ACTIVITIES CONDUCTED BY STATE-CHARTERED CREDIT UNIONS HAS BEEN AT ISSUE FOR MANY YEARS. DURING 2007, THE IRS ISSUED A SERIES OF TECHNICAL ADVICE MEMORANDA (TAMS) TO A NUMBER OF STATE-CHARTERED CREDIT UNIONS LOCATED THROUGHOUT THE COUNTRY. IN LIGHT OF THE TAMS, THE CREDIT UNION HAS ASSESSED ITS ACTIVITIES AND ANY POTENTIAL FEDERAL OR STATE INCOME TAX LIABILITY. IN THE OPINION OF MANAGEMENT, ANY LIABILITY ARISING FROM FEDERAL OR STATE TAXATION OF ACTIVITIES DEEMED TO BE UNRELATED TO ITS EXEMPT PURPOSES IS NOT EXPECTED TO HAVE A MATERIAL EFFECT ON THE CREDIT UNION'S FINANCIAL POSITION OR RESULTS OF OPERATIONS. FASB ASC 740-10-65, INCOME TAXES, PROVIDES GUIDANCE FOR HOW UNCERTAIN TAX POSITIONS SHOULD BE RECOGNIZED, MEASURED, DISCLOSED, AND PRESENTED IN THE CONSOLIDATED FINANCIAL STATEMENTS. THIS REQUIRES THE EVALUATION OF TAX POSITIONS TAKEN OR EXPECTED TO BE TAKEN IN THE COURSE OF PREPARING THE CREDIT UNION'S TAX RETURNS TO DETERMINE WHETHER THE TAX POSITIONS ARE "MORE LIKELY THAN NOT" TO BE SUSTAINED "WHEN CHALLENGED OR "WHEN EXAMINED" BY THE APPLICABLE TAX AUTHORITY. TAX POSITIONS DEEMED TO NOT MEET THE MORE-LIKELY-THAN-NOT THRESHOLD WOULD BE RECORDED AS A TAX EXPENSE AND LIABILITY IN THE CURRENT YEAR. THE CREDIT UNION ADOPTED THE PROVISIONS OUTLINED IN THIS GUIDANCE ON JANUARY 1, 2009. THE CREDIT UNION HAD NO UNRECOGNIZED TAX POSITIONS THAT REQUIRED ADJUSTMENT TO THE JANUARY 1, 2009, BEGINNING BALANCE OF UNDIVIDED EARNINGS. FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020, MANAGEMENT HAS DETERMINED THAT THERE ARE NO MATERIAL UNCERTAIN TAX POSITIONS. 0 GSBA SCHOLARSHIP FUND 400 E PINE ST STE 322 SEATTLE WA 98122 943138514 501(C)6 20000 0 LEADERSHIP MATCHING FUND, READY FOR BUSINESS ADMINISTRATION SUPPORT, AND READY FOR BUSINESS CAMPAIGN INVESTING HOMESIGHT 5117 RAINIER AVE S SEATTLE WA 98118 943117253 501(C)3 5500 0 OTHELLO SQUARE SUMMER CELEBRATION, SMALL BUSINESS GRANTS, FALL 2020 MICROGRANT HOUSING DEVELOPMENT CONSORTIUM 1326 FIFTH AVE SEATTLE WA 98101 943073588 501(C)3 6360 0 GENERAL SUPPORT SEATTLE COLLEGES FOUNDATION 1500 HARVARD AVENUE SEATTLE WA 98122 830551671 501(C)3 7000 0 GENERAL SUPPORT SEATTLE FOUNDATION 1601 FIFTH AVENUE NO 1900 SEATTLE WA 98101 916013536 501(C)3 87000 0 TO INCREASE AFFORDABLE HOUSING IN THE GREATER SEATTLE REGION 4 1 X 1 1 X X 0 0 0 TONITA WEBB CHIEF EXECUTIVE OFFICER 289115 0 82250 0 8769 0 3153 0 6907 0 390194 0 0 0 JUSTIN MARTIN EXECUTIVE VICE PRESIDENT 247919 0 13170 0 0 0 9765 0 14765 0 285619 0 0 0 JOHN ZMOLEK CHIEF EXECUTIVE OFFICER (THRU 4/21) 169260 0 58290 0 3202 0 13384 0 3988 0 248124 0 0 0 BRAD TANBERG CHIEF FINANCIAL OFFICER 205793 0 11736 0 0 0 8701 0 10564 0 236794 0 0 0 TINA NARRON CHIEF LENDING OFFICER 191614 0 11004 0 0 0 8105 0 7325 0 218048 0 0 0 KEN BUTLER DIRECTOR OF INVESTMENT SERVICES 56692 0 142921 0 0 0 7134 0 6820 0 213567 0 0 0 JASON HIRL CHIEF TECHNOLOGY OFFICER 178515 0 10212 0 0 0 7549 0 7318 0 203594 0 0 0 JOHN BENNER COMMERCIAL LOAN OFFICER 109799 0 72078 0 0 0 7275 0 7318 0 196470 0 0 0 ANGELA LOWE CHIEF HUMAN RESOURCES OFFICER 159923 0 8280 0 0 0 6158 0 6820 0 181181 0 0 0 HEIDI WESLEY-CLEVELAND CHIEF MARKETING OFFICER 132328 0 9156 0 0 0 5659 0 11522 0 158665 0 0 0 GREGORY VERMILLION DIRECTOR OF INFORMATION TECHNOLOGY 129981 0 5794 0 0 0 4906 0 11522 0 152203 0 0 0 JOSHUA SIDELL DIRECTOR OF MEMBER EXPERIENCE 140037 0 5958 0 0 0 5369 0 84 0 151448 0 0 0 PART I, LINE 1A TRAVEL FOR COMPANIONS IS PROVIDED TO BOARD MEMBERS WHEN THEY TRAVEL FOR CREDIT UNION BUSINESS. JOHN ZMOLEK CHIEF EXECUTIVE OFFICER SPLIT-DOLLAR ARRANGEMENT X 2917940 3037443 0 1 1 JASON HIRL CHIEF TECHNOLOGY OFFICER HOME MORTGAGE X 374000 340804 0 1 1 ANGELA LOWE CHIEF HR OFFICER HOME MORTGAGE X 423700 396973 0 1 1 TINA NARRON CHIEF LENDING OFFICER HOME MORTGAGE X 440000 423117 0 1 1 JUSTIN MARTIN EXECUTIVE VICE PRESIDENT HOME MORTGAGE X 445000 434920 0 1 1 4633257 SCHEDULE L, PART II, LINE (C) ADDITIONAL EXPLANATION: SPLIT-DOLLAR LIFE INSURANCE ARRANGEMENT THAT IS TREATED AS A SPLIT-DOLLAR LOAN UNDER TREASURY REGULATIONS SECTION 1.782-15. FORM 990, PART III, LINE 1, DESCRIPTION OF ORGANIZATION MISSION: A COOPERATIVE, ORGANIZED FOR THE PURPOSE OF PROMOTING THRIFT AND SAVINGS AMONG ITS MEMBERS, CREATING A SOURCE OF CREDIT FOR THEM AT RATES OF INTEREST SET BY THE BOARD OF DIRECTORS, AND PROVIDING AN OPPORTUNITY FOR THEM TO USE AND CONTROL THEIR OWN MONEY ON A DEMOCRATIC BASIS IN ORDER TO IMPROVE THEIR ECONOMIC AND SOCIAL CONDITIONS. AS A COOPERATIVE, VERITY CREDIT UNION CONDUCTS ITS BUSINESS FOR THE MUTUAL BENEFIT AND GENERAL WELFARE OF ITS MEMBERS WITH THE EARNINGS, SAVINGS, BENEFITS, OR SERVICES OF THE CREDIT UNION BEING DISTRIBUTED TO ITS MEMBERS AS PATRONS. FORM 990, PART VI, SECTION A, LINE 6 THE CREDIT UNION'S MEMBERS HAVE RIGHTS TO ELECT MEMBERS OF THE GOVERNING BODY. THE CREDIT UNION'S MEMBERS ALSO RECEIVE A SHARE OF THE ORGANIZATION'S PROFITS IN THE FORM OF CASH DIVIDENDS. FORM 990, PART VI, SECTION A, LINE 7A THE GOVERNING BOARD OF VERITY CREDIT UNION IS COMPRISED OF VOLUNTEER MEMBERS WHO ARE DIRECTLY ELECTED BY ITS MEMBERS. EACH MEMBER OF THE GOVERNING BOARD SERVES FOR A PERIOD AS PRESCRIBED IN OUR BY-LAWS. FORM 990, PART VI, SECTION A, LINE 7B AT THE END OF EACH TERM OF THE BOARD MEMBERS, ELECTIONS ARE HELD AND BOARD MEMBERS ARE VOTED BY THE MEMBERS OF THE CREDIT UNION PURSUANT TO OUR BY-LAWS. MEMBER VOTES ARE ALSO REQUIRED TO RATIFY DECISIONS DEALING WITH REORGANIZATIONS AS IN THE CASE OF MERGER OR DISSOLUTION. FORM 990, PART VI, SECTION B, LINE 11B THE CFO REVIEWS THE REPORTS FOR ACCURACY, COMPARING TO INTERNAL FINANCIAL STATEMENTS AND OTHER INTERNAL REPORTS. FORM 990, PART VI, SECTION B, LINE 12C ALL BOARD AND COMMITTEE MEMBERS WILL REVIEW AND SIGN THE STATEMENT OF RECEIPT & UNDERSTANDING BEFORE CONSIDERATION FOR OFFICE. ANNUALLY THEY WILL SIGN THE STATEMENT OF RECEIPTS & UNDERSTANDING AT THE MAY BOARD MEETING. CREDIT UNION BOARD AND COMMITTEE MEMBERS MUST IMMEDIATELY DISCLOSE THE EXISTENCE OF ANY KNOWN CONFLICT OF INTEREST EITHER WITH THE CREDIT UNION OR ITS MEMBERS. THEY MUST THEN RECUSE THEMSELVES FROM CONSIDERATION OF ANY CONTRACT, TRANSACTION OR RELATIONSHIP IN WHICH THEY OR THEIR FAMILY MEMBERS HAVE AN INTEREST. COMPLAINTS RELATING TO ALLEGED VIOLATIONS ARE TO BE PUT IN WRITING AND SUBMITTED TO ANY OFFICER, BOARD OR SUPERVISORY COMMITTEE MEMBER. COMPLAINTS WILL THEN BE FORWARDED TO THE HIGHEST RANKING INDIVIDUAL ON THE BOARD OR SUPERVISORY COMMITTEE WHO WAS NOT NAMED IN THE COMPLAINT TO BE RESOLVED. FORM 990, PART VI, SECTION B, LINE 15 THE CEO'S COMPENSATION IS SET BY THE BOARD OF DIRECTORS ANNUALLY UTILIZING COMPENSATION SURVEYS AND STUDIES. SENIOR MANAGEMENT'S COMPENSATION IS DETERMINED BY THE CEO, WHO REVIEWS SALARY SURVEY DATA ANNUALLY USING TWO DATA SETS FOR ALL SENIOR MANAGEMENT POSITIONS. THESE DATA SETS ARE THE ENTIRE CREDIT UNION INDUSTRY AND THE PUGET SOUND FINANCIAL INDUSTRY. FOR ALL REMAINING MANAGERS AND STAFF, EACH POSITION IS SLOTTED INTO 1 OF 6 SALARY RANGES. THE SALARY RANGES ARE REVIEWED ANNUALLY BY THE HUMAN RESOURCES DEPARTMENT TO ENSURE THAT THE JOB TITLE IS IN THE CORRECT RANGE. THE SALARY RANGES ARE ADJUSTED EVERY 2-3 YEARS FOR INFLATION. FORM 990, PART VI, SECTION C, LINE 19 FINANCIAL STATEMENTS, GOVERNING DOCUMENTS AND CONFLICT OF INTEREST POLICIES ARE MADE AVAILABLE UPON REQUEST. FORM 990, PART XI, LINE 9: CHARITABLE CONTRIBUTION REPORTED AS INVESTMENT ON BOOKS 87,000. CU HOME MORTGAGE SOLUTIONS LLC 11027 MERIDIAN AVENUE N 102 SEATTLE WA 98133 912081649 MORTGAGE PROCESSING AND SERVICING WA VERITY CREDIT UNION RELATED 740780 5266482 0 395474 1 0.50000 CHARITABLE LEAD TRUST TRUST FUND WA VERITY CREDIT UNION T 0 1 0 0 1 0 0 0 0 0 1 0 1 1 1 1 0 0 0 1 CU HOME MORTGAGE SOLUTIONS LLC A 187665 ACCRUED BALANCE CU HOME MORTGAGE SOLUTIONS LLC D 1752600 ACCRUED BALANCE CU HOME MORTGAGE SOLUTIONS LLC L 290672 ACCRUED BALANCE CU HOME MORTGAGE SOLUTIONS LLC M 1609440 ACCRUED BALANCE CU HOME MORTGAGE SOLUTIONS LLC S 100840 ACCRUED BALANCE