2020-10-04T13:12:20-05:00 2017-12-31 910189318 MOSS ADAMS LLP 2707 COLBY AVENUE SUITE 801 EVERETT WA 98201 990 2017-01-01 910557925 SOUND CREDIT UNION SOUN 2535977603 PO BOX 1595 TACOMA WA 98401 TROY GARRY CFO 2535977603 2020-09-30 1 COLLEEN RAMIRES P01251320 4252597227 2020-09-30 76.121.192.40 2020-09-30 17:53:43 PD P DA39A3EE5E6B4B0D3255BFEF95601890AFD80709 3EF74A9F095120C19DBF54175AA7CEC7F455DBD7 2017 2021-09-10 13:11:23Z X DONALD CLARK JR PO BOX 1595 TACOMA WA 98401 106346974 0 X WWW.SOUNDCU.COM X 1940 WA COOPERATIVE PROVIDING FINANCIAL SERVICES, INCLUDING LOANS AND SHARE DEPOSITS TO ITS MEMBERS. 10 10 351 0 417854 -161753 0 0 59544051 67459530 4454282 3963958 2336307 -214074 66334640 71209414 120000 116137 0 0 21287570 23563989 0 0 0 27204475 27279527 48612045 50959653 17722595 20249761 1379598394 1461043189 1217275643 1278741594 162322751 182301595 A MEMBER OWNED COOPERATIVE PROVIDING FINANCIAL SERVICES, INCLUDING LOANS AND SHARE DEPOSITS TO ITS MEMBERS. 0 0 ON THE LIABILITY/EQUITY SIDE OF THE BALANCE SHEET OUR MEMBERS HOLD 209,311 SAVINGS, CHECKING, AND MONEY MARKET DEPOSIT ACCOUNTS WITH COMBINED BALANCES OF $1,081,708,517. MEMBERS HOLD 1,984 IRA SAVINGS ACCOUNTS WITH COMBINED BALANCES OF $23,011,803. THESE FUNDS ARE POOLED AND USED PRIMARILY TO FUND CONSUMER AND REAL ESTATE SECURED LOANS TO OUR MEMBERSHIP. ALSO ON THE LIABILITY/EQUITY SIDE OF THE BALANCE SHEET, 7,133 OF OUR MEMBERS HOLD CERTIFICATE ACCOUNTS WITH TOTAL BALANCES OF $149,180,615. ON THE ASSET SIDE, 74,317 OF OUR MEMBERS HOLD CONSUMER LOANS THAT INCLUDE VEHICLE, STUDENT, MORTGAGE, AND VISA LOANS. CONSUMER LOANS THAT INCLUDE VEHICLE SECURED LOANS THAT $521,543,284. REAL ESTATE SECURED LOANS TOTALS $434,878,623. THE LOAN PORTFOLIO TOTALS, $1,097,488,993. 0 0 0 0 0 0 0 1 0 1 0 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 1 14629 0 1 351 1 1 1 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 TROY GARRY 2535977603 1331 BROADWAY PLAZA TACOMA WA 98401 X KEITH MOCK BOARD CHAIR 1.00 X X 25000 0 0 BRENDA HEINEMAN VICE CHAIR 1.00 X X 20000 0 0 DAVID WASSON SECRETARY/TREASURER 1.00 X X 20000 0 0 SHELLEY COLEMAN DIRECTOR 1.00 X 20000 0 0 RICHARD BRENTIN DIRECTOR 1.00 X 16250 0 0 NORMAN PARSONS SR DIRECTOR (THROUGH 6/17) 1.00 X 15000 0 0 JOHN BAUDER DIRECTOR 1.00 X 15000 0 0 ANGIE HARPER DIRECTOR 1.00 X 18500 0 0 BARRY WALLIS DIRECTOR 1.00 X 15000 0 0 DENNIS OKAMOTO DIRECTOR (THROUGH 6/17) 1.00 X 11250 0 0 HALUK DEMIRKAN DIRECTOR 1.00 X 1250 0 0 ALTAF MERCHANT DIRECTOR 1.00 X 1250 0 0 DONALD CLARK JR PRESIDENT/CEO 50.00 X 654880 0 294864 TROY GARRY SVP/CHIEF FINANCIAL OFFICER 60.00 X 225750 0 40482 DENISE REAGAN EXECUTIVE VICE PRESIDENT 50.00 X 1241174 0 60060 CARL ROER THROUGH 817 SVP/ CHIEF LENDING OFFICER 50.00 X 658503 0 90244 LYMAN WILLIAMS FROM 817 SVP/CHIEF LENDING OFFICER 50.00 X 222060 0 51044 CHARLOTTE SHENKEL SVP/ CHIEF BRANCH OFFICER 50.00 X 579100 0 54864 KIMBERLY MAPES SVP/ CHIEF EMPLOYEE ENGAGE 50.00 X 193420 0 28545 ROBYN LACHANCE SVP/ CHIEF STRATEGY & EXPERIENCE OFFICER 50.00 X 182403 0 17841 ANTONIO DEL FIERRO SVP/CHIEF TECHNOLOGY OFFICER 50.00 X 177000 0 11137 MATTHEW ASHTON VP/BUSINESS LENDING 50.00 X 154359 0 38282 4467149 0 687363 26 0 1 0 JACK HENRY & ASSOCIATES INC PO BOX 609 MONETT MO 65708 IT SYSTEM SERVICES 805689 HHJ INC 601 ST HELENS AVE TACOMA WA 98402 ARCHITECTURAL/ CONTRACTING SERVICES 583645 KAYE-SMITH ENTERPRISES PO BOX 956 RENTON WA 98057 PRINTING/MAILING STATEMENTS 530775 NCR CORPORATION 14181 COLLECTIONS CENTER DRIVE CHICAGO IL 60693 ATM SERVICES 418912 HHJ ARCHITECTS PLLC PO BOX 1277 TACOMA WA 98401 ARCHITECTURAL/ CONTRACTING SERVICES 322371 19 LOAN INTEREST INCOME 522291 45881766 45881766 FEES AND CHARGES 522100 9309168 9072187 236981 INTERCHANGE 522299 8848360 8848360 LOAN ORIGINATION INCOME 518210 1793077 1793077 FINANCIAL SERVICES 522100 70455 70455 1556704 1446286 110418 67459530 3863114 3863114 234330 492912 -258582 -258582 -258582 34745492 34644648 100844 100844 100844 NON-OPERATING INCOME 900099 44508 44508 44508 71209414 67086184 417854 3705376 106137 10000 3464669 13691845 2212366 2809659 1385450 40292 25567 308795 520233 1263724 2805366 792422 2028300 463565 302954 2238723 2423035 LOAN SERVICING 5259229 PROVISION FOR LOAN LOSS 5081462 BANK FEES 2855456 WM AMORTIZATION OF CDI 447333 423071 50959653 14870233 14047142 178944790 132163691 11648756 10232090 966793210 1084151414 1311551 1413935 63175268 24010224 38600488 39165044 140061882 148387150 3430799 3179927 4281134 3833801 19655551 24468995 1379598394 1461043189 21585054 24374615 0 1210224 13000000 0 1182690589 1253156755 1217275643 1278741594 X 0 0 0 0 162322751 182301595 162322751 182301595 1379598394 1461043189 20249761 -270917 0 X 0 1 X 1 0 0 1 X 12817398 12817398 33928273 11961299 21966974 2083271 1105958 977313 14346326 10942967 3403359 39165044 MEMBER SHARES 1253156755 1253156755 X PART IV, LINE 2B: THE CREDIT UNION HOLDS ESCROWED FUNDS FOR THE PAYMENT OF PROPERTY TAXES AND INSURANCE PREMIUMS AS A SERVICE FOR MEMBERS WHO HAVE MORTGAGES WITH THE CREDIT UNION. A THIRD-PARTY MORTGAGE SERVICE PROVIDER HANDLES THE ESCROW PROCESSING ON BEHALF OF THE CREDIT UNION. PART X, LINE 2: THE CREDIT UNION IS A STATE-CHARTERED CREDIT UNION 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. HOWEVER, IRC SECTION 511 IMPOSES A TAX ON THE UNRELATED BUSINESS INCOME (AS DEFINED IN SECTION 512) DERIVED BY STATE-CHARTERED CREDIT UNIONS. THE SPECIFIC APPLICATION OF SECTION 512 TO THE VARIOUS ACTIVITIES CONDUCTED BY STATE-CHARTERED CREDIT UNIONS HAS BEEN AT ISSUE FOR MANY YEARS. THE INTERNAL REVENUE SERVICE (IRS) HAS ISSUED A SERIES OF TECHNICAL ADVICE MEMORANDA (TAM) TO A NUMBER OF STATE-CHARTERED CREDIT UNIONS LOCATED THROUGHOUT THE COUNTRY. IN THESE TAMS, THE IRS RULED CERTAIN PRODUCTS AND SERVICES TO BE SUBJECT TO TAXATION AS UNRELATED BUSINESS INCOME. IN LIGHT OF THE TAMS, THE CREDIT UNION HAS ASSESSED ITS ACTIVITIES AND ANY POTENTIAL FEDERAL 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. ACCOUNTING PRINCIPLES PRESCRIBE A RECOGNITION THRESHOLD AND MEASUREMENT ATTRIBUTE FOR THE FINANCIAL STATEMENT RECOGNITION AND MEASUREMENT OF A TAX POSITION TAKEN OR EXPECTED TO BE TAKEN IN A TAX RETURN. 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. THE CREDIT UNION HAD NO UNRECOGNIZED TAX POSITIONS AT DECEMBER 31, 2017. IF ASSESSED, THE CREDIT UNION RECOGNIZES PENALTIES AND INTEREST ASSOCIATED WITH TAX MATTERS AS PART OF OPERATING EXPENSES. 1 NEWS TRIBUNE SCHOLARSHIP FOUNDATION 1950 S STATE ST TACOMA WA 98405 943082120 501(C)(3) 27500 BENEFACTOR SPONSORSHIP FOR BUSINESS LEADERSHIP AWARDS ECONOMIC DEVELOPMENT BOARD PO BOX 1555 TACOMA WA 98401 911040355 501(C)(6) 13000 EXCELLENCE FUND MILGARD SCHOOL OF BUSINESS UNIVERSITY OF WASHINGTON TACOMA 1900 COMMERCE STREET BOX 358420 TACOMA WA 98402 943079432 501(C)(3) 7000 BUSINESS LEADERSHIP AWARDS/PROGRAM YMCA OF PIERCE AND KITSAP COUNTIES 4717 S 19TH ST STE 201 TACOMA WA 98405 910565562 501(C)(3) 10000 ANNUAL DONATION NORTHWEST CREDIT UNION ASSOCIATION 1800 INTERNATIONAL BLVD STE 350 SEATAC WA 98188 911649328 501(C)(6) 46137 ANNUAL DONATION- FAIRSHARE FOUNDATION, DEFENSE AND CULAF FUND 3 2 EDUCATIONAL ASSISTANCE - SCHOLARSHIPS 10 10000 PART I, LINE 2: THE DONATION AND SPONSORSHIP COMMITTEE MEETS APPROXIMATELY EVERY 45-60 DAYS TO REVIEW EACH REQUEST THAT IS SUBMITTED. AS THE REQUESTS ARE REVIEWED, THE ORGANIZATION DETERMINES THE FOLLOWING INFORMATION: WHO IS THE ORGANIZATION AND WHAT DO THEY DO? WHAT ARE THEY TRYING TO ACHIEVE WITH THEIR REQUEST? WHAT IS THEIR PURPOSE AND DOES IT ALIGN WITH SOUND'S PUBLIC RESPONSIBLITY BELIEFS? IS THE SUPPORTING ORGANIZATION GOOD FOR THE LOCAL COMMUNITY, SOUND'S MEMBERSHIP, AND SOUND CREDIT UNION AS A WHOLE? WHERE ARE THEY LOCATED AND WHAT IS THEIR AREA OF FOCUS? HAS THE ORGANIZATION SUPPORTED THE CAUSE IN THE PAST? DOES THE DOLLAR AMOUNT REQUESTED FIT INTO THE BUDGET? WHEN APPROVED, THE ORGANIZATION WORKS WITH THE REQUESTING ORGANIZATION TO DISCUSS NEXT STEPS, INCLUDING PAYMENT, LOGO PLACEMENT, AND SOCIAL MEDIA. ONCE SCHOLARSHIP APPLICATIONS ARE SUBMITTED EACH COMMITTEE MEMBER SCORES THE APPLICATIONS. THOSE SCORES ARE THEN AVERAGED AND THE TOP APPLICANTS ARE SELECTED TO RECEIVE THE AWARDS. APPLICANTS PROVIDE THEIR SCHOOL'S INFORMATION AND SCHOLARSHIP CHECKS ARE MAILED DIRECTLY TO THE SCHOOL'S FINANCIAL AID OFFICE. PAYMENTS COME DIRECTLY FROM SOUND CREDIT UNION. X X 1 0 X X X 0 1 0 DONALD CLARK JR PRESIDENT/CEO 466442 0 141750 0 46688 0 264300 0 30564 0 949744 0 0 0 TROY GARRY SVP/CHIEF FINANCIAL OFFICER 180600 0 45150 0 0 0 20671 0 19811 0 266232 0 0 0 DENISE REAGAN EXECUTIVE VICE PRESIDENT 361722 0 180861 0 698591 0 37191 0 22869 0 1301234 0 0 0 CARL ROER THROUGH 817 SVP/ CHIEF LENDING OFFICER 109037 0 0 0 549466 0 59680 0 30564 0 748747 0 451120 0 LYMAN WILLIAMS FROM 817 SVP/CHIEF LENDING OFFICER 177060 0 45000 0 0 0 20480 0 30564 0 273104 0 0 0 CHARLOTTE SHENKEL SVP/ CHIEF BRANCH OFFICER 165619 0 41405 0 372076 0 24300 0 30564 0 633964 0 0 0 KIMBERLY MAPES SVP/ CHIEF EMPLOYEE ENGAGE 150558 0 35333 0 7529 0 17408 0 11137 0 221965 0 0 0 ROBYN LACHANCE SVP/ CHIEF STRATEGY & EXPERIENCE OFF 137000 0 33353 0 12050 0 16416 0 1425 0 200244 0 0 0 ANTONIO DEL FIERRO SVP/CHIEF TECHNOLOGY OFFICER 144000 0 33000 0 0 0 0 0 11137 0 188137 0 0 0 MATTHEW ASHTON VP/BUSINESS LENDING 134225 0 20134 0 0 0 7718 0 30564 0 192641 0 0 0 PART I, LINE 1A FIRST CLASS TRAVEL: FIRST CLASS TRAVEL IS PROVIDED FOR BOARD OF DIRECTORS MEMBERS FOR FLIGHTS OVER A CERTAIN AMOUNT OF HOURS. TRAVEL FOR COMPANIONS: INCLUDES SPOUSAL TRAVEL FOR BOARD OF DIRECTORS MEMBERS, ALL OF WHICH IS TAXABLE COMPENSATION. PART I, LINE 4B THE CREDIT UNION HAS ENTERED INTO 457(F) SUPPLEMENTAL RETIREMENT BENEFIT AGREEMENTS WITH DONALD CLARK JR, CARL ROER, DENISE REAGAN AND CHARLOTTE SHENKEL. IN 2017, CARL, DENISE, AND CHARLOTTE RECEIVED PAYOUTS OF $500,000, $500,000, AND $270,000, RESPECTIVELY. ADDITIONALLY, CARL ROER ACCRUED $48,880, DENISE REAGAN ACCRUED $12,191, AND DONALD CLARK JR ACCRUED $240,000 OF 457(F) RETIREMENT PLAN COMPENSATION. FORM 990, PART VI, SECTION A, LINE 6 THE CREDIT UNION HAS 116,103 MEMBERS AS OF DECEMBER 31, 2016. FORM 990, PART VI, SECTION A, LINE 7A THE CREDIT UNION'S MEMBERS HAVE THE RIGHT TO ELECT ONE OR MORE MEMBERS OF THE 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 ANNUALLY. ADDITIONALLY, MEMBERS VOTE ON ITEMS BROUGHT THROUGH A SPECIAL MEETING OF MEMBERS, SUCH AS MERGERS AND REMOVAL OF OFFICERS AND DIRECTORS. FORM 990, PART VI, SECTION B, LINE 11B THE FORM 990 IS PROVIDED TO THE BOARD OF DIRECTORS WHO REVIEW THE FORM AND APPLICABLE SCHEDULES PRIOR TO THE RETURN'S FILING WITH THE IRS. FORM 990, PART VI, SECTION B, LINE 12C EMPLOYEES SIGN A STATEMENT REQUIRING THAT THEY MUST DISCLOSE TO THE PRESIDENT & CEO ANY ACTUAL, POTENTIAL, OR PERCEIVED CONFLICTS OF INTEREST BEFORE BEING HIRED. DIRECTORS AND VOLUNTEERS SIGN A "CODE OF ETHICS ACKNOWLEDGEMENT" THAT STATES THEY WILL NOT BE INVOLVED IN SITUATIONS THAT RESULT IN OR COULD BE PERCEIVED TO BE A CONFLICT OF INTEREST. THEY MUST ALSO EXCUSE THEMSELVES FROM ANY DISCUSSIONS OR PARTICIPATION IN DECISIONS INVOLVING INSTANCES IN WHICH A CONFLICT OF INTEREST EXISTS OR MAY EXIST. THE POLICY MANUAL HAS THREE SECTIONS IN WHICH CONFLICTS OF INTEREST ARE STATED AND THE BOARD APPROVES THE POLICY MANUAL ON AN ANNUAL BASIS. BOTH THE CEO & EVP MONITOR ALL STAFF AND VOLUNTEER ACCOUNTS. IN ADDITION, DURING OUR CERTIFIED AUDIT, ALL STAFF AND VOLUNTEER ACCOUNTS, OR A SAMPLING, ARE REVIEWED FOR POTENTIAL CONFLICTS OF INTEREST. NO DIRECTOR, COMMITTEE MEMBER, OR EMPLOYEE OF THE CREDIT UNION MAY HAVE A PECUNIARY INTEREST IN ANY CONTRACT OR TRANSACTION WITH THE CREDIT UNION UNLESS THIS INTEREST IS DISCLOSED AND MADE KNOWN TO THE BOARD OF DIRECTORS. NO DIRECTOR OR COMMITTEE MEMBER OF THE CREDIT UNION WILL PARTICIPATE IN THE DELIBERATION OF ANY QUESTION AFFECTING THEIR OWN PECUNIARY INTEREST. SUCH DIRECTOR OR COMMITTEE MEMBER WILL WITHDRAW FROM THE DELIBERATION AND DECISION UPON SUCH INTEREST. FORM 990, PART VI, SECTION B, LINE 15 LINE 15A, COMPENSATION PROCESS FOR TOP OFFICIAL: THE EMPLOYEE BENEFITS COMMITTEE, WHICH IS COMPRISED OF 3 BOARD MEMBERS REVIEWS LOCAL SURVEYS, INCLUDING THE ANNUAL MILLIMAN NORTHWEST FINANCIAL INDUSTRY SALARY SURVEY TO DEVELOP A RECOMMENDATION FOR THE BOARD. THE BOARD REVIEWS THE COMMITTEE'S RECOMMENDATION AND APPROVES THE CEO'S COMPENSATION. LINE 15B, COMPENSATION PROCESS FOR OFFICERS: OTHER OFFICER AND KEY EMPLOYEE COMPENSATION IS DETERMINED BY THE CEO AND BECOMES A PART OF THE COMPENSATION RECOMMENDATION DURING THE BUDGET PROCESS. FORM 990, PART VI, SECTION C, LINE 19 THE CREDIT UNION'S BYLAWS AND LEGAL DOCUMENTS, FINANCIAL STATEMENTS AND ANNUAL REPORT, THAT MEMBERS HAVE THE RIGHT TO VIEW, ARE AVAILABLE UPON REQUEST. THE REQUEST MUST BE IN WRITTEN FORM. FORM 990, PART VII, SECTION A, COLUMN F & SCHEDULE J, PART II, COLUMN C: FORM 990, PART VII, SECTION A, COLUMN F & SCHEDULE J, PART II, COLUMN C ARE BEING AMENDED TO INCLUDE ADDITIONAL SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN INTEREST AND ACCRUALS. THIS ADJUSTMENT INCREASES THE AMOUNT OF DEFERRED COMPENSATION FOR DENISE REAGAN FROM $24,300 TO $37,191. THIS ADJUSTMENT ALSO INCREASES THE AMOUNT OF DEFERRED COMPENSATION FOR DONALD CLARK JR FROM $24,300 TO $264,300. SOUND FINANCIAL GROUP INC PO BOX 1595 TACOMA WA 98401 911263213 INSURANCE WA SOUND CREDIT UNION C -25 9865 1.00000 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0