2020-11-10T13:47:46-06:00 2019-12-31 410746749 CLIFTONLARSONALLEN LLP 20 EAST THOMAS ROAD SUITE 2300 PHOENIX AZ 85012 990 2019-01-01 910659059 HARBORSTONE CREDIT UNION HARB 2535891105 PO BOX 4207 TACOMA WA 98438 FOREST HAYES CFO 2535891105 2020-11-09 1 MARY C GREEN P00447183 6022662248 2020-11-09 67.137.57.251 2020-11-09 21:33:24 MS P D73E359738BDAD79C2EC8539ABD5DE3741BC0024 FC9A45E43718A07F79C42053BA56CF0CE37CD438 2019 2021-04-22 16:20:28Z PHIL JONES PO BOX 4207 TACOMA WA 98438 87911383 0 X WWW.HARBORSTONE.COM X 1955 WA HARBORSTONE CREDIT UNION EXISTS TO BE AN ANCHOR OF TRUST. 9 9 257 0 272213 0 0 0 56864730 61125577 4410097 8917460 -135708 820611 61139119 70863648 129433 326526 0 7466521 20083277 21492816 0 0 0 29678627 31167194 49891337 60453057 11247782 10410591 1335183051 1532553283 1178387553 1360846614 156795498 171706669 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 36,059 MEMBERS TOTALING $865,463,656. PROVIDING BUSINESS LOANS TO 351 MEMBERS TOTALING $254,245,420. MAINTAINING DEPOSITS ON 83,874 MEMBERS AND BUSINESS ACCOUNTS TOTALING $1,321,360,154. 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 31277 0 257 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 CFO 2535842260 9611 GRAVELLY LAKE DRIVE SW LAKEWOOD WA 984992761 PHIL JONES PRESIDENT & CEO 40.00 X 1133947 0 510895 LAURIE LENO SR VP CFO (RESIGNED 2/19) 40.00 X 375706 0 10918 DOUG RICHARDSON VP TRAINING/ADMINISTRATION 40.00 X 285185 0 26707 STEVE CROSBY SR VP COO 40.00 X 236617 0 40041 FOREST HAYES SR VP CFO 40.00 X 226024 0 40082 LISA STURGIS SR VP 40.00 X 221480 0 24604 MICHAEL POWELL SR VP CLO 40.00 X 209696 0 33267 MICHAEL DECIUS SR VP CIO 40.00 X 204834 0 32588 FRANK MARZANO VP BUSINESS BANKING 40.00 X 156059 0 32053 STEPHANIE NICKLAUS VP CHIEF CREDIT OFFICER 40.00 X 147490 0 25069 SCOTT BECKWITH VP BUSINESS BANKING 40.00 X 142687 0 24651 ERIC ZITTEL VP CONSUMER LENDING 40.00 X 140524 0 18650 ANN ANDERSON CHAIR 2.00 X X 28560 0 9838 BONNIE KERN DIRECTOR 2.00 X 19576 0 5204 LINDA CRANE NELSON SECRETARY 2.00 X X 19126 0 2618 RICK STEVENS DIRECTOR 2.00 X 15000 0 5799 SHELLIE WILLIS DIRECTOR 2.00 X 15372 0 4385 MICHAEL GEDEON DIRECTOR 2.00 X 15358 0 3415 IVAN BARRON DIRECTOR 2.00 X 15000 0 3546 RICHARD EVANS DIRECTOR 2.00 X 15000 0 3253 JIM BUCK VICE CHAIR 2.00 X X 15000 0 3181 3638241 0 860764 23 0 1 0 NRC CORPORATION PO BOX 740641 LOS ANGELES CA 90074 ONLINE BANKING PROVIDER 2274014 FISERV CNS PO BOX 5037 263 PORTLAND OR 97208 ATM/NETWORK PROCESSOR 1000081 FIDELITY INFORMATION SERVICES INC PO BOX 4535 CAROL STREAM IL 60197 CORE PROCESSOR, CHECK PROCESSING 997344 COOK SECURITY GROUP 9225 NE CASCADES PARKWAY PORTLAND OR 97220 ATM SERVICING 281727 KINGS5COM PO BOX 637386 CINCINNATI OH 45263 ADVERTISING 272001 42 INTEREST FROM LOANS 522100 48552120 48552120 INTERCHANGE INCOME 522100 4814518 4814518 FEE INCOME 522100 3128837 3015550 113287 NONSUFFICIENT FUNDS AND OVERDRAFT 522100 3006130 3006130 REVENUE-SHARING INCOME 522100 870399 870399 753573 654010 99563 61125577 5294951 5294951 167377 0 167377 167377 167377 20550164 120080 16924801 122934 3625363 -2854 3622509 3622509 MISCELLANEOUS REVENUE 900099 653234 59363 593871 653234 70863648 60912727 272213 9678708 326526 7466521 3499931 12901592 1424870 2356430 1309993 36415 173720 3769175 2200146 2726420 1892246 150044 152015 1517189 2255490 260156 PROVISION FOR LOAN LOSS 8632093 LOAN SERVICING 2249531 ATM PROCESSING 1936369 REPAIRS AND MAINTENANCE 1878412 1337773 60453057 7050313 4184050 44803014 78905521 2101823 1923367 3899125 1035673916 1117322044 2638827 2158166 54381203 28831427 26504341 25549776 173240957 256176812 8337138 6026185 2419439 1870956 32413283 34537281 1335183051 1532553283 8640214 9841153 87000000 30000000 1082747339 1321005461 1178387553 1360846614 X 0 0 0 0 156795498 171706669 156795498 171706669 1335183051 1532553283 X 10410591 3966093 534487 X 0 1 X 1 0 13692 13692 13692 1 NORTHWEST CREDIT UNION ASSOCIATION 18000 INTERNATIONAL BLVD SUITE 35 SEATAX WA 98188 910460483 13692 PART I-A, LINE 1: CONTRIBUTION TO THE CREDIT UNION LEGISLATIVE ACTION FUND. 7276197 7276197 23018089 10392999 12625090 6511368 3284886 3226482 17074478 15153542 1920936 501071 501071 25549776 MEMBERS' SHARE AND SAVINGS ACCOUNTS 1321005461 1321005461 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, 2019 AND 2018. THE CREDIT UNION'S 2016 THROUGH 2018 TAX YEARS ARE OPEN FOR EXAMINATION BY FEDERAL AND STATE TAXING AUTHORITIES. 1 SOUND OUTREACH 1106 MARTIN LUTHER KING JR WAY TACOMA WA 98405 911741624 501(C)(3) 40000 UNRESTRICTED BUSINESS IMPACT NW 1437 S JACKSON ST SEATTLE WA 98144 911764008 501(C)(3) 25000 UNRESTRICTED TREEHOUSE 2100 24TH AVENUE SOUTH NO 200 SEATTLE WA 98144 911425676 501(C)(3) 25000 UNRESTRICTED JUNIOR ACHIEVEMENT OF WASHINGTON 1700 WESTLAKE AVE SUITE 400 SEATTLE WA 98109 910604913 501(C)(3) 25000 UNRESTRICTED PIKE PLACE MARKET FOUNDATION 93 PIKE ST SUITE 310 SEATTLE WA 98101 911197625 501(C)(3) 21700 UNRESTRICTED YWCA SEATTLE 1118 FIFTH AVENUE SEATTLE WA 98101 910482890 501(C)(3) 10000 UNRESTRICTED PIERCE MILITARY & BUSINESS ALLIANCE PO BOX 4207 TACOMA WA 98438 383675245 501(C)(3) 15000 UNRESTRICTED AMERICAN CANCER SOCIETY OF WASHINGTON INC 1324 FOREST AVE STE 420 STATEN ISLAND NY 10302 814392579 501(C)(3) 13500 UNRESTRICTED 8 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 1 1 0 PHIL JONES PRESIDENT & CEO 1002847 0 131100 0 0 0 494641 0 16254 0 1644842 0 0 0 LAURIE LENO SR VP CFO (RESIGNED 2/19) 39180 0 17956 0 318570 0 8249 0 2669 0 386624 0 138594 0 DOUG RICHARDSON VP TRAINING/ADMINISTRATION 138671 0 13914 0 132600 0 16972 0 9735 0 311892 0 132600 0 STEVE CROSBY SR VP COO 216687 0 19930 0 0 0 26102 0 13939 0 276658 0 0 0 FOREST HAYES SR VP CFO 213161 0 12863 0 0 0 24934 0 15148 0 266106 0 0 0 LISA STURGIS SR VP 213501 0 7979 0 0 0 11824 0 12780 0 246084 0 0 0 MICHAEL POWELL SR VP CLO 202910 0 6786 0 0 0 23367 0 9900 0 242963 0 0 0 MICHAEL DECIUS SR VP CIO 194421 0 10413 0 0 0 22718 0 9870 0 237422 0 0 0 FRANK MARZANO VP BUSINESS BANKING 143765 0 12294 0 0 0 17295 0 14758 0 188112 0 0 0 STEPHANIE NICKLAUS VP CHIEF CREDIT OFFICER 135617 0 11873 0 0 0 16211 0 8858 0 172559 0 0 0 SCOTT BECKWITH VP BUSINESS BANKING 131595 0 11092 0 0 0 15759 0 8892 0 167338 0 0 0 ERIC ZITTEL VP CONSUMER LENDING 133365 0 7159 0 0 0 7513 0 11137 0 159174 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, LINES 4A-B LAURIE LENO RECEIVED A SEVERANCE PAYMENT IN THE AMOUNT OF $134,000 DURING 2019. 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 $1,944,000 UNDER THESE AGREEMENTS AT DECEMBER 31, 2019. THE FOLLOWING EMPLOYEES RECEIVED CONTRIBUTIONS UNDER THIS PLAN DURING 2019: PHIL JONES - $463,841 THE FOLLOWING EMPLOYEES RECEIVED DISTRIBUTIONS FROM THIS PLAN DURING 2019: LAURIE LENO - $138,594 DOUG RICHARDSON - $132,600 PHIL JONES CEO PERSONAL LINE OF CREDIT X 10000 9150 0 1 1 PHIL JONES CEO MORTGAGE X 484350 461080 0 1 1 STEVE CROSBY COO VEHICLE X 54085 45840 0 1 1 STEVE CROSBY COO PERSONAL LINE OF CREDIT X 10000 4250 0 1 1 STEVE CROSBY COO MORTGAGE X 570000 539287 0 1 1 MIKE DECIUS CIO INSTALLMENT X 10000 2121 0 1 1 MIKE DECIUS CIO VEHICLE X 30307 17353 0 1 1 MIKE DECIUS CIO VEHICLE X 43530 32016 0 1 1 MIKE DECIUS CIO MORTGAGE X 513000 509917 0 1 1 LISA STIRGUS CHIEF EXPERIENCE OFFICER MORTGAGE X 520000 509368 0 1 1 FOREST HAYES CFO MORTGAGE X 480000 391658 0 1 1 FOREST HAYES CFO RV X 15000 13858 0 1 1 ANN ANDERSON BOD VEHICLE X 22389 16362 0 1 1 ANN ANDERSON BOD VEHICLE X 51520 16721 0 1 1 ANN ANDERSON BOD HELOC X 100000 76124 0 1 1 RICK STEVENS BOD BUSINESS TERM LOAN X 17000 7424 0 1 1 RICK DAHL SUPERVISORY COMMITTEE MORTGAGE X 200000 198431 0 1 1 FRANK MARZANO VP BUSINESS SALES & SERVICE MORTGAGE X 57300 37366 0 1 1 STEPHANIE NICKLAUS VP BUSINESS LENDING MORTGAGE X 360000 330553 0 1 1 SCOTT BECKWITH VP BUSINESS BANKING MORTGAGE X 346000 278829 0 1 1 SCOTT BECKWITH VP BUSINESS BANKING HELOC X 262800 17834 0 1 1 ERIC ZITTEL VP CONSUMER LENDING MORTGAGE X 390900 383583 0 1 1 3899125 FORM 990, PART VI, SECTION A, LINE 1 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 2019. 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 2019. 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 534,487. CU SERVICES GROUP LLC 9611 GRAVELLY LAKE DR SW LAKEWOOD WA 98499 262064794 BUSINESS LENDING WA 763991 14968082 HARBORSTONE CREDIT UNION