2022-10-27T15:16:26-05:00 2021-12-31 410746749 CLIFTONLARSONALLEN LLP 20 EAST THOMAS ROAD SUITE 2300 PHOENIX AZ 85012 990 2021-01-01 910659059 HARBORSTONE CREDIT UNION HARB 2535891105 PO BOX 4207 TACOMA WA 98438 FOREST HAYES SR VP CFO 2535891105 2022-10-24 1 FOREST HAYES 999009999 MELISSA HANGSLEBEN P02087031 6022662248 2022-10-24 3 AAL1 IAL1 2021 2022-09-23 18:48:47Z PHIL JONES PO BOX 4207 TACOMA WA 98438 204706723 0 X WWW.HARBORSTONE.COM X 1955 WA HARBORSTONE CREDIT UNION EXISTS TO BE AN ANCHOR OF TRUST. 9 9 329 0 491587 0 0 0 64503100 67416673 7505996 6562899 771138 653959 72780234 74633531 863633 709794 9522460 3468155 23806586 25261699 0 0 0 26212851 25043165 60405530 54482813 12374704 20150718 1695810664 1876992646 1506957772 1677773866 188852892 199218780 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 37,420 MEMBERS TOTALING $1,030,101,178. PROVIDING BUSINESS LOANS TO 358 MEMBERS TOTALING $237,518,281. MAINTAINING DEPOSITS ON 84,716 MEMBERS AND BUSINESS ACCOUNTS TOTALING $1,665,128,104. 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 18834 0 329 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 FOREST HAYES SR VP CFO 2535842260 9611 GRAVELLY LAKE DRIVE SW LAKEWOOD WA 984992761 ANN ANDERSON CHAIR 2.00 X X 23850 0 377 LINDA CRANE NELSON SECRETARY 2.00 X X 20553 0 377 IVAN BARRON DIRECTOR 2.00 X 19321 0 377 FRANKLIN DONAHOE DIRECTOR 2.00 X 19059 0 377 SHELLIE WILLIS DIRECTOR 2.00 X 17632 0 377 RICK STEVENS DIRECTOR 2.00 X 17408 0 377 BONNIE KERN DIRECTOR 2.00 X 17350 0 377 MICHAEL GEDEON DIRECTOR 2.00 X 16863 0 377 JAMES BUCK VICE CHAIR 2.00 X X 16473 0 377 PHIL JONES PRESIDENT & CEO 40.00 X 1376021 0 55215 FOREST HAYES SR VP CFO 40.00 X 325175 0 54112 STEVE CROSBY SR VP COO 40.00 X 317316 0 52725 LISA STIRGIS SR VP CXO 40.00 X 295301 0 47525 MICHAEL DECIUS SR VP CIO 40.00 X 272153 0 46295 ROBERT LUETTJOHANN SR VP CLO 40.00 X 266818 0 17001 SCOTT BECKWITH VP BUSINESS BANKING 40.00 X 183135 0 36932 ERIC ZITTEL VP CONSUMER LENDING 40.00 X 163169 0 37158 RALPH KOWAL INVESTMENT REPRESENTATIVE 40.00 X 160581 0 31057 CONNOR LEWIS VP TRAINING DEVELOPMENT 40.00 X 153853 0 33706 JAMES GRECO VP CREDIT COLLECTIONS 40.00 X 165029 0 15536 3847060 0 430655 32 0 1 0 NRC CORPORATION PO BOX 740641 LOS ANGELES CA 90074 ONLINE BANKING PROVIDER 1895493 FIDELITY INFORMATION SERVICES INC PO BOX 4535 CAROL STREAM IL 60197 CORE PROCESSOR, CHECK PROCESSING 1095923 COOK SOLUTIONS GROUP 9225 NE CASCADES PARKWAY PORTLAND OR 97220 ATM, TCR & SECURITY EQUIPMENT SERVICING 1086930 VISA USA PO BOX 842233 LOS ANGELES CA 90074 DEBIT & CREDIT CARD NETWORK PROCESSOR 816753 PSCU 560 CARILLON PARKWAY ST PETERSBURG FL 33716 ATM/NETWORK PROCESSOR 744115 50 INTEREST FROM LOANS 522100 54097617 54097617 INTERCHANGE INCOME 522100 6823555 6823555 FEE INCOME 522100 3511808 3398000 113808 NONSUFFICIENT FUNDS AND OVERDRAFT 522100 2240411 2240411 REVENUE-SHARING INCOME 522100 659999 659999 83283 14634 68649 67416673 5044458 5044458 210703 122921 87782 87782 87782 130984027 484685 129812856 137415 1171171 347270 1518441 1518441 MISCELLANEOUS REVENUE 900003 566177 309130 257047 566177 74633531 67234216 491587 6907728 709794 3468155 3297558 15757580 2243212 2494003 1469346 1670435 173218 17468 4409419 1160253 2204883 1940727 155250 84946 6 2328252 216303 LOAN SERVICING 3671413 PROVISION FOR LOAN LOSS 2743720 REPAIRS AND MAINTENANCE 2127228 ATM PROCESSING 938211 1201433 54482813 5266337 4534773 89904359 103606332 4353548 6182925 3268321 3962827 1168517520 1272783260 2955507 4102320 56829589 32331801 25386931 24497788 343660727 402768222 2167292 2349742 1345424 799317 48984698 51405140 1695810664 1876992646 12503525 12968549 1494454247 1664805317 1506957772 1677773866 X 0 0 0 0 188852892 199218780 188852892 199218780 1695810664 1876992646 X 20150718 -10380581 595751 X X 0 1 X 1 0 17468 0 0 17468 17468 1 NORTHWEST CREDIT UNION ASSOCIATION 18000 INTERNATIONAL BLVD SUITE 35 SEATAX WA 98188 910460483 17468 PART I-A, LINE 1: CONTRIBUTION TO THE CREDIT UNION LEGISLATIVE ACTION FUND. 6703187 6703187 23403730 11035821 12367909 6586931 4307659 2279272 19722535 16988321 2734214 413206 413206 24497788 MEMBERS' SHARE AND SAVINGS ACCOUNTS 1664805317 1664805317 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, 2021 AND 2020. THE CREDIT UNION'S 2018 THROUGH 2020 TAX YEARS ARE OPEN FOR EXAMINATION BY FEDERAL AND STATE TAXING AUTHORITIES. 1 UNIVERSITY OF WA FOUNDATION PO BOX 353200 SEATTLE WA 98195 943079432 501(C)(3) 75000 0 UNRESTRICTED BUSINESS IMPACT NW (SEATTLE ECONOMIC DEVELOPMENT) 1437 S JACKSON ST SEATTLE WA 98144 911764008 501(C)(3) 57783 0 UNRESTRICTED JUNIOR ACHIEVEMENT OF WASHINGTON 1700 WESTLAKE AVE SUITE 400 SEATTLE WA 98109 910604913 501(C)(3) 46602 0 UNRESTRICTED SOUND OUTREACH 1106 MARTIN LUTHER KING JR WAY TACOMA WA 98405 911741624 501(C)(3) 45932 0 UNRESTRICTED PIKE PLACE MARKET FOUNDATION 93 PIKE ST SUITE 310 SEATTLE WA 98101 911197625 501(C)(3) 20100 0 UNRESTRICTED UNITED WAY OF PIERCE COUNTY PO BOX 2215 TACOMA WA 98401 910650669 501(C)(3) 15500 0 UNRESTRICTED AMERICAN CANCER SOCIETY OF WASHINGTON INC 1324 FOREST AVE STE 420 STATEN ISLAND NY 10302 814392579 501(C)(3) 14000 0 UNRESTRICTED GREATER SEATTLE BUSINESS ASSOCIATION SCHOLARSHIP 400 E PINE STE 322 SEATTLE WA 98122 911171171 501(C)(3) 10450 0 UNRESTRICTED CAREER PATH SERVICES - BANKWORK 10 N POST ST STE 200 SPOKANE WA 99201 911032846 501(C)(3) 10000 0 UNRESTRICTED LAKEWOOD MULTICULTURAL COALITION 6000 MAIN ST SW LAKEWOOD WA 98499 604340264 501(C)(3) 10000 0 UNRESTRICTED YWCA SEATTLE 1118 FIFTH AVENUE SEATTLE WA 98101 910482890 501(C)(3) 10000 0 UNRESTRICTED BIG BACKYARD 5K 10028 136TH AVE NE KIRKLAND WA 98033 273388960 501(C)(3) 7000 0 UNRESTRICTED COMMUNITUES IN SCHOOLS OF LAKEWOOD 10828 GRAVELLY LAKE DR STE 104 LAKEWOOD WA 98499 911732922 501(C)(3) 6000 0 UNRESTRICTED GREENTRIKE DBA CHILDREN'S MUSEUM OF TACOMA 1501 PACIFIC AVE STE 202 TACOMA WA 98402 943036465 501(C)(3) 6000 0 UNRESTRICTED 14 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 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 X 1 1 X X X X 0 1 0 PHIL JONES PRESIDENT & CEO 546144 0 335236 0 494641 0 37700 0 17515 0 1431236 0 494641 0 FOREST HAYES SR VP CFO 257261 0 67914 0 0 0 37700 0 16412 0 379287 0 0 0 STEVE CROSBY SR VP COO 248520 0 68796 0 0 0 37700 0 15025 0 370041 0 0 0 LISA STIRGIS SR VP CXO 231209 0 64092 0 0 0 37700 0 9825 0 342826 0 0 0 MICHAEL DECIUS SR VP CIO 213353 0 58800 0 0 0 35622 0 10673 0 318448 0 0 0 ROBERT LUETTJOHANN SR VP CLO 256780 0 10038 0 0 0 7179 0 9822 0 283819 0 0 0 SCOTT BECKWITH VP BUSINESS BANKING 166548 0 16587 0 0 0 23904 0 13028 0 220067 0 0 0 ERIC ZITTEL VP CONSUMER LENDING 149470 0 13699 0 0 0 21201 0 15957 0 200327 0 0 0 RALPH KOWAL INVESTMENT REPRESENTATIVE 153492 0 7089 0 0 0 20927 0 10130 0 191638 0 0 0 CONNOR LEWIS VP TRAINING DEVELOPMENT 139776 0 14077 0 0 0 20027 0 13679 0 187559 0 0 0 JAMES GRECO VP CREDIT COLLECTIONS 156379 0 8650 0 0 0 6413 0 9123 0 180565 0 0 0 PART I, LINE 1B FIRST-CLASS OR CHARTER TRAVEL: FIRST-CLASS TRAVEL ON LONG-DISTANT FLIGHTS IS PROVIDED TO THE BOARD CHAIR DUE TO A CHRONIC MEDICAL CONDITION. TRAVEL FOR COMPANIONS: SPOUSES/COMPANIONS ARE ALLOWED TO TRAVEL WITH EXECUTIVE MANAGEMENT AND BOARD MEMBERS AND IS LIMITED TO $600. PART I, LINE 4B THE CREDIT UNION HAS 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. THE CREDIT UNION HAS ACCRUED APPROXIMATELY $2,590,000 UNDER THESE AGREEMENTS AT DECEMBER 31, 2021. NO EMPLOYEES RECEIVED CONTRIBUTIONS UNDER THIS PLAN DURING 2021. THE FOLLOWING EMPLOYEES RECEIVED DISTRIBUTIONS FROM THIS PLAN DURING 2021. PHIL JONES - $494,641 ANN ANDERSON BOARD CHAIR HELOC X 100000 58415 0 1 1 ANN ANDERSON BOARD CHAIR VEHICLE X 22389 8094 0 1 1 ANN ANDERSON BOARD CHAIR MORTGAGE X 278500 252793 0 1 1 FOREST HAYES SR VP CFO RV X 15000 9772 0 1 1 FOREST HAYES SR VP CFO MORTGAGE X 480000 362341 0 1 1 LISA STIRGUS SR VP CXO MORTGAGE X 520000 495424 0 1 1 LISA STIRGUS SR VP CXO INSTALLMENT X 10000 6167 0 1 1 MIKE DECIUS SR VP CIO MORTGAGE X 513000 478430 0 1 1 MIKE DECIUS SR VP CIO VEHICLE X 30307 8135 0 1 1 MIKE DECIUS SR VP CIO VEHICLE X 43530 19676 0 1 1 PHIL JONES PRESIDENT & CEO MORTGAGE X 484350 346364 0 1 1 PHIL JONES PRESIDENT & CEO LINE OF CREDIT X 10000 6250 0 1 1 STEVE CROSBY SR VP COO VEHICLE X 54085 25186 0 1 1 STEVE CROSBY SR VP COO MORTGAGE X 570000 509732 0 1 1 MICHAEL GEDEON BOARD MEMBER MORTGAGE X 563000 536976 0 1 1 FOREST HAYES SR VP CFO VEHICLE X 28108 27666 0 1 1 STEVE CROSBY SR VP COO HELOC X 75000 33954 0 1 1 ROBERT LUETTJOHANN SR VP CLO MORTGAGE X 800000 777452 0 1 1 3962827 FORM 990, PART VI, SECTION A, LINE 1A THE BOARD MAY ELECT AN EXECUTIVE COMMITTEE OF NOT FEWER THAN 3 DIRECTORS TO SERVE AT ITS PLEASURE. UNLESS OTHERWISE CHANGED BY THE BOARD BY RESOLUTION, THE EXECUTIVE COMMITTEE SHALL CONSIST OF THE BOARD OFFICERS. THE EXECUTIVE COMMITTEE SHALL MEET AS OFTEN AS NECESSARY AS CALLED BY THE CHAIRPERSON. 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; AND - 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 2021. 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 2021. THE COMPENSATION DECISION IS DOCUMENTED IN THE EMPLOYEE'S PERSONNEL FILE. FORM 990, PART VI, SECTION C, LINE 19 THE GOVERNING DOCUMENTS AND FINANCIAL STATEMENTS ARE MADE AVAILABLE TO THE PUBLIC IN THE ANNUAL REPORT AND ANNUAL MEETING, WHICH IS HELD IN MARCH OF EACH YEAR. THE CONFLICTS OF INTEREST POLICY IS NOT MADE PUBLIC. FORM 990, PART XI, LINE 9: CHANGE IN CASH SURRENDER VALUE OF LIFE INSURANCE POLICIES 595,751. FORM 990, PART XII, LINE 2C: THE ORGANIZATION DID NOT CHANGE ITS OVERSIGHT OR SELECTION PROCESS DURING THE TAX YEAR. CU SERVICES GROUP LLC 9611 GRAVELLY LAKE DR SW LAKEWOOD WA 98499 262064794 BUSINESS LENDING WA 709297 14560289 HARBORSTONE CREDIT UNION