2022-11-15T17:36:32-06:00 2021-12-31 910189318 MOSS ADAMS LLP 2707 COLBY AVENUE SUITE 801 EVERETT WA 98201 990 2021-01-01 910176215 SEATTLE METROPOLITAN CREDIT UNION SEAT 2063985561 1521 FIRST AVE SOUTH 500 SEATTLE WA 98134 MAC MCCALEB CFO 2063985552 2022-11-15 1 MAC MCCALEB XXX-XX-XXXX COLLEEN RAMIRES P01251320 4252597227 2022-11-15 3 AAL1 IAL1 2021 2022-09-23 18:48:47Z SEATTLE CREDIT UNION MAC MCCALEB 1521 FIRST AVE SOUTH 500 SEATTLE WA 98134 41882424 0 X WWW.SEATTLECU.COM X 1933 WA A COOPERATIVE, ORGANIZED FOR THE PURPOSE OF PROMOTING THRIFT AND SAVINGS AMONG ITS MEMBERS. 10 10 199 13 85939 0 0 0 41868032 40428060 1251312 1454364 0 0 43119344 41882424 87895 64702 0 0 15245105 16507265 0 0 0 25328754 25780190 40661754 42352157 2457590 -469733 959707663 1060154632 879448655 982303289 80259008 77851343 X TO PROMOTE THRIFT AMONG ITS MEMBERS, SERVE THE UNDERSERVED IN THE SEATTLE METROPOLITAN AREA, AND TO PROVIDE FINANCIAL SERVICES AND TO CREATE A SOURCE OF CREDIT FOR THEM AT LEGITIMATE RATES OF INTEREST FOR PROVIDENT, PRODUCTIVE AND EDUCATIONAL PURPOSES. 0 0 SEATTLE METROPOLITAN CREDIT UNION (SMCU) HAS BEEN PROVIDING SERVICES TO ITS MEMBERS SINCE 1933. SINCE ITS INCEPTION, SMCU HAS CONSIDERED ITSELF AN ADVOCATE FOR ITS MEMBERS BY PROVIDING MEMBER-CENTRIC FINANCIAL SERVICES AND FINANCIAL LITERACY EDUCATION AT LOW OR NO COST. AS OF DECEMBER 31, 2021, SMCU HAD 52,906 MEMBERS. THESE MEMBERS PARTICIPATED IN 25,783 LOAN AND 103,549 DEPOSIT PRODUCTS. SMCU'S LOAN OFFERINGS INCLUDE A WIDE RANGE OF OPTIONS FROM STANDARD AUTO LOANS, MORTGAGES AND LINES OF CREDIT, TO MORE SEGMENTED PRODUCTS INCLUDING MOTORCYCLES, CLASSIC CARDS, BOATS, RECREATIONAL VEHICLES, AND AIRCRAFT LOANS. SMCU HAS ALSO RECENTLY EXTENDED ITS LOAN PRODUCTS TO INCLUDE BUSINESS LOANS TO QUALIFIED MEMBERS. ALL LOAN PRODUCTS COME IN A VARIETY OF TERMS TO PROVIDE PAYMENT OPTIONS THAT BEST SUIT THE MEMBERSHIP'S NEEDS. MEMBERS HAVE THE SAME VARIETY OF SELECTION ON THE DEPOSIT SIDE OF THE PRODUCT LINE WITH OFFERINGS RANGING FROM BASIC CHECKING AND SAVINGS ACCOUNTS TO IRAS, CERTIFICATES, MONEY MARKETS AND HIGH-YIELD ACCOUNTS. SMCU ALSO OFFERS BUSINESS ACCOUNTS AND INVESTMENT SERVICES THAT ARE DESIGNED TO MAINTAIN THE MEMBER'S BEST INTEREST. AS AN ADVOCATE FOR ITS MEMBERSHIP, SMCU PLACES A HIGH PRIORITY ON EDUCATIONAL RESOURCES. AS A RESULT, SMCU HAS INVESTED IN ONLINE APPLICATIONS TO HELP MEMBERS MAKE DECISIONS RELATED TO PLANNING, BORROWING, BUDGETING AND PROTECTING THEIR CREDIT. LIFE VISION AND MORTGAGE ADVISOR ARE TWO TOOLS OFFERED ON PERSONAL FINANCES AND RESPECTIVES FROM HOME AND FAMILY FINANCE ON CAR BUYING, CREDIT PROTECTION AND BUDGETING. FOR THOSE MEMBERS WHO PREFER TO SPEAK TO SOMEONE IN PERSON, SMCU PROVIDES FREE CREDIT COUNSELING THROUGH "BALANCE," A FINANCIAL FITNESS PROGRAM THAT FOCUSES ON MONEY MANAGEMENT IN ADDITION TO IDENTITY THEFT PREVENTION AND ASSISTANCE. 0 0 0 0 0 0 0 0 0 1 0 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 1 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 1 34974 0 1 199 1 1 1 0 0 0 0 0 0 0 X 10 10 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 X MAC MCCALEB 2063985552 1521 FIRST AVE SOUTH SEATTLE WA 98134 RICHARD ROMERO PRESIDENT AND CEO 40.00 X 1033305 0 105440 JAVIER D'AGUSTINI INTERIM CFO (THRU 12/21) 40.00 X X 354178 0 117342 LEE PIERCE SVP OF LENDING 40.00 X 398992 0 44852 DONNA RANSIER VP INFORMATION TECHNOLOGY 40.00 X 388702 0 45289 BRENT RICCHINS SVP/SERVICE OPERATIONS 40.00 X 359141 0 51554 BARNEY HERRERA VP STRATEGIC PARTNERSHIPS (UNTIL 9/21) 40.00 X 330221 0 60386 TONITA WEBB EVP AND COO (THRU 4/21) 40.00 X 435026 0 -116910 WALLACE HO SVP COMMERCIAL LENDING 40.00 X 195631 0 101659 KHAMSAY VONGCHANTHA VP OF RISK MANAGEMENT 40.00 X 151596 0 72929 PAM MUELLER VP/LOAN DOCUMENTATION AND OPERATIONS MANAGER 40.00 X 140340 0 72063 KATHLEEN DRUMMEY SENIOR INTERNAL AUDITOR (THRU 1/21) 40.00 X 196759 0 3310 DACHELLE PAND VP SENIOR CREDIT OFFICER AND PORTFOLIO MANAGER 40.00 X 136125 0 60772 KELLY EARNEST CHIEF PEOPLE OFFICER 40.00 X 138029 0 10871 MELE MILLER CHIEF OPERATING OFFICER 40.00 X 126606 0 10103 CARLOS RUIZ BOARD CHAIR 4.00 X X 0 0 0 ROBIN SHULER VICE CHAIR 4.00 X X 0 0 0 DEANNA CLARK SECRETARY (THRU 3/21), BOARD MEMBER 4.00 X X 0 0 0 REBECCA KERR BOARD SECRETARY 4.00 X X 0 0 0 SHAHZAD QADRI BOARD MEMBER 4.00 X 0 0 0 JONELLE JOHNSON BOARD MEMBER 4.00 X 0 0 0 JORDAN GRANT BOARD MEMBER 4.00 X 0 0 0 JOE DAVILA BOARD MEMBER 4.00 X 0 0 0 NELSON REYNERI BOARD MEMBER 4.00 X 0 0 0 STEPHEN EJIDE BOARD MEMBER (THRU 3/21) 4.00 X 0 0 0 SEUJAN BERTRAM BOARD MEMBER (THRU 3/21) 4.00 X 0 0 0 ARACELY GODINEZ BOARD MEMBER (THRU 3/21) 4.00 X 0 0 0 ROBIN HARMON BOARD MEMBER 4.00 X 0 0 0 4384651 0 639660 29 0 1 0 FISERV INC PO BOX 208457 DALLAS TX 75320 CORE SYSTEM PROVIDER SERVICES 4186640 TWENTY FOUR 7 425 NE 9TH AVENUE PORTLAND OR 97232 MARKETING & ADVERTISING SERVICES 756358 VISA USA INC PO BOX 8999 SAN FRANCISCO CA 94128 CREDIT CARD SERVICES 654184 AEROTEK PROFESSIONAL SERVICES 7301 PARKWAY DRIVE HANOVER MD 21076 STAFFING SERVICES 448926 STN INC 1249 QUARRY LANE SUITE 130 PLEASANTON CA 94566 IT SERVICES 337992 26 LOAN INTEREST INCOME 522100 28276134 28276134 INTERCHANGE INCOME 522100 4664610 4664610 FEES AND CHARGES 522100 3355635 3355635 NET GAIN ON LOANS 522100 2984688 2984688 OTHER REVENUE 522100 1146993 1061054 85939 40428060 1277582 1277582 176782 0 176782 176782 176782 41882424 40342121 85939 1454364 X 64702 3799813 9000726 418258 2150191 1138277 116746 181752 5713565 462823 1045383 3060602 3448542 2251 44637 2335919 1677350 146942 DUES & SUBSCRIPTIONS 384653 PROVISION FOR LOAN LOSS 285815 SHARED BRANCHING EXPENS 196812 6676398 42352157 8366705 3161714 141959271 146648049 2375472 2339748 8859250 4422680 659702590 717588179 1477243 1437329 19590159 16313785 6496832 3276374 94049066 135581819 997900 1156700 35423334 44542040 959707663 1060154632 15588365 13999428 0 1826265 863860290 966477596 879448655 982303289 X 0 0 0 0 80259008 77851343 80259008 77851343 959707663 1060154632 -469733 -1937932 0 X 0 1 X 1 0 5097795 3695656 1402139 14466920 12618129 1848791 25444 25444 3276374 MEMBERS' SHARE ACCOUNTS 966477596 966477596 X 42521667 639243 639243 41882424 0 41882424 42352157 0 42352157 0 42352157 PART X, LINE 2: THE CREDIT UNION IS A STATE-CHARTERED CREDIT UNION AS DESCRIBED IN INTERNAL REVENUE CODE (IRC) SECTION 501(C)(14). AS SUCH, THE CREDIT UNION IS EXEMPT FROM FEDERAL TAXATION OF INCOME DERIVED FROM THE PERFORMANCE OF ACTIVITIES THAT ARE IN FURTHERANCE OF ITS EXEMPT PURPOSES. 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 INTERNAL REVENUE SERVICE (IRS) ISSUED A SERIES OF TECHNICAL ADVICE MEMORANDA (TAM) IN 2007 IDENTIFYING CERTAIN PRODUCTS AND SERVICES CONSIDERED TO BE UNRELATED TO THE SPECIFIC ENTITY'S EXEMPT PURPOSE. AS PRESENTED IN THE TAM, THE NET TAXABLE INCOME FROM THESE PRODUCTS AND SERVICES IS SUBJECT TO INCOME TAXES UNDER THE UNRELATED BUSINESS INCOME TAX REGULATIONS. 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 POTENTIAL ADDITIONAL LIABILITY RESULTING FROM THE TAX AUTHORITIES IS NOT EXPECTED TO HAVE A MATERIAL EFFECT ON THE CREDIT UNION'S FINANCIAL POSITION OR RESULTS OF OPERATIONS. 1 UNITED WAY OF KING COUNTY 720 2ND AVE SEATTLE WA 98104 910565555 501(C)(3) 10000 0 BRIDGE TO FINISH FRIENDS OF LITTLE SAIGON 1227 S WELLER ST SUITE A SEATTLE WA 98144 453621880 501(C)(3) 10000 0 FLS SMALL BUSINESS MIXER AND FINANCE RESOURCES SPONSORSHIP BLACK-OWNED BUSINESS EXCELLENCE 13835 INTERURBAN AVE S SEATTLE WA 98168 881678669 501(C)(3) 10000 0 SPONSORSHIP- BLACK OWNED BUSINESS EXCELLENCE 3 0 PART I, LINE 2: SEATTLE CREDIT UNION HAS A GRANT ADMINISTRATION POLICY THAT IS REVIEWED AND APPROVED BY THE BOARD OF DIRECTORS ON A PERIODIC BASIS. PER THE POLICY, THE BOARD OF DIRECTORS HAS THE ULTIMATE OVERSIGHT OVER THE ADMINISTRATION AND SPENDING OF GRANT FUNDS. MANAGEMENT IS RESPONSIBLE TO PROVIDE THE BOARD OF DIRECTORS WITH SUFFICIENT PERIODIC REPORTING TO SUPPORT THE BOARD IN FULFILLMENT OF THIS RESPONSIBILITY. X 1 1 X X X 1 1 0 RICHARD ROMERO PRESIDENT AND CEO 534545 0 86071 0 412689 0 73226 0 32214 0 1138745 0 410754 0 JAVIER D'AGUSTINI INTERIM CFO (THRU 12/21) 193158 0 13868 0 147152 0 85131 0 32211 0 471520 0 145219 0 LEE PIERCE SVP OF LENDING 211313 0 18108 0 169571 0 31175 0 13677 0 443844 0 168896 0 DONNA RANSIER VP INFORMATION TECHNOLOGY 188475 0 18841 0 181386 0 30540 0 14749 0 433991 0 178951 0 BRENT RICCHINS SVP/SERVICE OPERATIONS 167883 0 18035 0 173223 0 28884 0 22670 0 410695 0 171288 0 BARNEY HERRERA VP STRATEGIC PARTNERSHIPS (UNTIL 9/2 137387 0 11914 0 180920 0 39402 0 20984 0 390607 0 132440 0 TONITA WEBB EVP AND COO (THRU 4/21) 113493 0 39439 0 282094 0 -124471 0 7561 0 318116 0 281777 0 WALLACE HO SVP COMMERCIAL LENDING 176940 0 16756 0 1935 0 70210 0 31449 0 297290 0 0 0 KHAMSAY VONGCHANTHA VP OF RISK MANAGEMENT 140278 0 10732 0 586 0 41822 0 31107 0 224525 0 0 0 PAM MUELLER VP/LOAN DOCUMENTATION AND OPERATIONS 128346 0 11065 0 929 0 49444 0 22619 0 212403 0 0 0 KATHLEEN DRUMMEY SENIOR INTERNAL AUDITOR (THRU 1/21) 21038 0 0 0 175721 0 675 0 2635 0 200069 0 0 0 DACHELLE PAND VP SENIOR CREDIT OFFICER AND PORTFOL 124739 0 10512 0 874 0 46835 0 13937 0 196897 0 0 0 PART I, LINE 1A TRAVEL OF COMPANIONS IS PROVIDED TO BOARD MEMBERS AND OTHER VOLUNTEERS WHEN ATTENDING APPROVED EDUCATIONAL FORUMS AND CONFERENCES. AMOUNTS REIMBURSED FOR COMPANION TRAVEL ARE TREATED AS TAXABLE. PART I, LINES 4A-B THE FOLLOWING INDIVIDUALS RECEIVED A SEVERANCE PAYMENT IN 2021: - BARNEY HERRERA $47,994 - KATHLEEN DRUMMEY $175,721 THE FOLLOWING INDIVIDUALS RECEIVED A 457(F) PAYOUT IN 2021: - RICHARD ROMERO $410,754 - JAVIER D'AGUSTINI $145,219 - TONITA WEBB $281,777 - BRENT RICHINS $171,288 - DONNA RANSIER $178,951 - LEE PIERCE $168,896 - BARNEY HERRERA $132,440 EFFECTIVE SEPTEMBER 2016, THE CREDIT UNION ENTERED INTO A DEFERRED COMPENSATION AGREEMENT WITH CERTAIN EXECUTIVES THAT PROVIDES BENEFITS PAYABLE TO THESE EMPLOYEES IF THEY REMAIN EMPLOYED BY THE CREDIT UNION BASED ON A CLIFF VESTING SCHEDULE. IF THESE EMPLOYEES BECOME DISABLED, OR AT THE TIME OF DEATH OR CHANGE IN CONTROL OF EMPLOYER, ACCRUED BENEFITS ARE IMMEDIATELY PAYABLE; HOWEVER, THE BENEFITS ARE SUBJECT TO FORFEITURE IF EMPLOYMENT IS TERMINATED FOR CAUSE. THE 2021 ACCRUED DEFERRED COMPENSATION RELATED TO THIS AGREEMENT FOR EMPLOYEES LISTED ON THIS RETURN IS $300,425. THE CEO AND COO PARTICIPATE IN THE SPLIT-DOLLAR LIFE INSURANCE ARRANGEMENT THAT IS TREATED AS A SPLIT-DOLLAR LOAN UNDER TREASURY REGULATIONS SECTION 1.7872-15. RICHARD ROMERO PRESIDENT/CEO EXECUTIVE COMPENSATION X 2400000 2653608 0 1 1 TONITA WEBB EVP/COO EXECUTIVE COMPENSATION X 1600000 1769072 0 1 1 4422680 SCHEDULE L, PART II, LINE (C) ADDITIONAL EXPLANATION: EXECUTIVE COMPENSATION UNDER A SPLIT-DOLLAR LIFE INSURANCE ARRANGEMENT THAT IS TREATED AS A SPLIT-DOLLAR LOAN UNDER TREASURY REGULATIONS SECTION 1.782-15. FORM 990, PART VI, SECTION A, LINE 1A THE GOVERNING BODY (THE BOARD) DELEGATES SOME AUTHORITY TO SUB-COMMITTEES ALSO COMPRISED OF ELECTED DIRECTORS. WITHIN THE AUTHORITY DELEGATION, THERE IS A COMPENSATION COMMITTEE, A FICOM (FINANCIAL & BUDGET COMMITTEE.) FORM 990, PART VI, SECTION A, LINE 6 MEMBERSHIP IS OPEN TO ANYONE WHO LIVES OR WORKS IN THE STATE OF WASHINGTON INCLUDING: CITY OF SEATTLE EMPLOYEES, EMPLOYEES OF PARTNER SELECT EMPLOYER GROUPS AND ANY PERSON RELATED TO A CURRENT MEMBER BY BLOOD, MARRIAGE (INCLUDING DOMESTIC PARTNERS), OR ADOPTION, REGARDLESS OF WHERE THAT PERSON LIVES. FORM 990, PART VI, SECTION A, LINE 7A THE GOVERNING BOARD OF SEATTLE 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 BY 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 ITS 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 MANAGEMENT WILL REVIEW THE 990 BASED ON THE INFORMATION PROVIDED TO OUR CPA. A COPY OF THE 990 WILL BE PRESENTED TO THE BOARD OF DIRECTORS FOR THEIR FINAL APPROVAL. FORM 990, PART VI, SECTION B, LINE 12C EMPLOYEES SIGN ANNUALLY THAT THEY HAVE REVIEWED THE CONFLICT OF INTEREST POLICY. THE INTERNAL AUDIT DEPARTMENT AND MANAGERS MONITOR TO ENSURE ANY CONFLICTS OF INTEREST ARE IDENTIFIED. DIRECTORS AND MEMBERS OF COMMITTEES ARE REQUIRED TO DISCLOSE CONFLICTS OF INTEREST AND POTENTIAL CONFLICTS OF INTEREST, INCLUDING THOSE IN SITUATIONS IN WHICH THEY MAY BE INADVERTENTLY PLACED, AS A RESULT OF BUSINESS OR PERSONAL RELATIONSHIPS WITH MEMBERS, SUPPLIERS, BUSINESS ASSOCIATES, OR COMPETITORS OF THE CREDIT UNION. DIRECTORS AND MEMBERS OF COMMITTEES WILL AVOID ANY INTEREST OR ACTIVITY THAT IS IN CONFLICT WITH THE CONDUCT OF THEIR OFFICIAL DUTIES. DIRECTORS AND MEMBERS OF COMMITTEES WILL RECUSE THEMSELVES FROM CONSIDERATION OF ANY CONTRACT, TRANSACTION OR RELATIONSHIP IN WHICH THEY OR THEIR FAMILY MEMBERS HAVE AN INTEREST. FORM 990, PART VI, SECTION B, LINE 15 THE HUMAN RESOURCES DEPARTMENT CONTRACTS AN OUTSIDE FIRM TO REVIEW SALARY, BENEFITS AND PERKS FOR VPS AND ABOVE. THEY DO A MARKET ANALYSIS AT LOCAL AREA AND INDUSTRY LEVEL. THE BOARD CONDUCTS A REVIEW OF THE CEO'S SALARY AND ADJUSTS THEIR SALARY BASED UPON PERFORMANCE. THIS REVIEW PROCESS WAS LAST UNDERTAKEN IN 2021. FORM 990, PART VI, SECTION C, LINE 19 THE UNAUDITED INTERNAL FINANCIAL STATEMENTS ARE POSTED AT EVERY BRANCH MONTHLY, AND THE AUDITED FINANCIAL STATEMENTS ARE PROVIDED TO THE MEMBERS AT THE ANNUAL MEETING AND ARE POSTED ON OUR WEBSITE. THE GOVERNING DOCUMENTS AND THE CONFLICTS OF INTEREST POLICIES ARE GENERALLY NOT PROVIDED TO THE GENERAL PUBLIC, UNLESS A SPECIFIC INQUIRY IS MADE. FORM 990, PART IX, LINE 11G CONSULTING FEES 1,627,826. PROCESSING & SERVICE FEES 4,085,739.