2020-11-12T10:30:50-07:00 2019-12-31 990 2019-01-01 916035907 QUALSTAR CREDIT UNION QUAL 8008480018 PO BOX 96730 BELLEVUE WA 980097730 Michael Elfstrom Chief Financial Officer 8008480018 2020-11-12 63.232.100.92 2019 2021-04-22 16:20:28Z Mark Nelson 2133 152nd Ave NE Redmond WA 980097730 38587835 0 1269 X www.qualstarcu.com X 1952 WA WE ARE A CREDIT UNION PROVIDING FINANCIAL PRODUCTS & SERVICES TO MEMBERS 11 11 190 17 188074 -54643 0 0 28935053 32315588 3503214 6126388 123411 60018 32561678 38501994 0 0 0 0 11495084 11670293 0 0 0 14224908 17195081 25719992 28865374 6841686 9636620 589208613 630180342 510832393 551233460 78376220 78946882 PROVIDE FINANCIAL PRODUCTS & SERVICES 0 0 Interest expense in the amount of $4,948,168 was paid to members for money on deposit at the credit union. Deposit accounts earning interest included checking, savings, money market, IRA, and Certificate of Deposit accounts. The credit union has about 89,700 deposit accounts that can earn interest. The credit union expensed $1,540,163 in provision for loan loss costs for the year. The expense was to fund the accrual for doubtful loans on the balance sheet. The credit union has about 33,300 open loan accounts. The credit union expensed $753,061 during the year for loan servicing costs. These costs were paid to originate and service loans to members. The credit union has about 33,300 open loan accounts. 0 0 0 0 0 0 0 0 0 0 0 1 0 1 1 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 1 16593 0 1 190 1 1 1 0 0 0 0 0 0 0 X 11 11 0 0 0 0 1 1 0 1 1 0 1 1 0 1 1 1 1 1 1 0 0 X QUALSTAR CREDIT UNION 8008480018 2133 152nd AVE NE REDMOND WA 98052 MARK R NELSON President 40 0 X 436804 0 0 MICHAEL G ELFSTROM Exec VP/CFO 40 0 X 321518 0 0 DIANE PERCIVAL Director of Finance 40 0 X 244051 0 0 ROBERT ARBUCKLE CLA 40 0 X 196153 0 0 WILLIAM HANAFORD Investment Advisor 40 0 X 167613 0 0 KARA TAYLOR VP OF I.S. 40 0 X 165697 0 0 ROSHALLE DEARMENT VP OF Lending 40 0 X 145023 0 0 BRETT TREAT IS Manager 40 0 X 144032 0 0 TRACY OSTER Board Member 3 0 X 2469 0 0 LEANNE CALIFANO Board Secretary/Treasurer 3 0 X X 1370 0 0 JOEL SCHMIDT Board Member 3 0 X 1004 0 0 GENE VIA Board Member 3 0 X 0 0 0 KIM BROWN Board Chairman 4 0 X X 0 0 0 MITCHELL JOHNSON Board Member 3 0 X 0 0 0 NOEL MCMURTRAY Board Member 3 0 X 0 0 0 LAWRENCE BINDNER JR Board Member 3 0 X 0 0 0 KIM ZIER Vice Chair 3 0 X X 0 0 0 RUSS DEWOLFE Board Member 3 0 X 0 0 0 GARY POWERS Board Member 3 0 X 0 0 0 RICHARD URNESS Board Secretary/Treasurer 3 0 X X X 0 0 0 1825734 0 0 16 1 1 0 Jack Henry And Associates 663 W Hwy 60 Monett MO 65708 Core banking system/card & ATM processing 1777314 CO-OP Financial Services 9692 Haven Ave Rancho Cucamonga CA 91730 SHARED BRANCHING AND ATM NETWORK PROVIDER 695391 VISA PO Box 8999 San Francisco CA 94128 Credit card processor 603610 Kaye Smith Business Graphics 4101 Oakdale Ave SW Renton WA 98057 Printing and statement production/mailing 481714 PSCU 560 Carillion Parkway St Petersburg FL 33716 after hours phone/billpayer 259501 19 0 Interest on Loans 522130 23194057 23194057 0 0 Fee Income 522130 4092636 4081193 11443 0 Other Operating Income 522130 5028895 4852264 176631 0 0 0 0 0 32315588 4438237 4438237 0 0 0 0 0 0 0 0 0 0 81199 0 21181 0 60018 0 60018 60018 0 0 0 1752811 0 64660 0 1688151 1688151 1688151 0 0 0 38501994 38313920 188074 0 X 862737 8320208 498393 1328090 660865 121843 115000 3256144 499856 2280479 510639 865090 249699 4948414 852303 356976 Loan Servicing 753061 Provision for loan loss 1586253 Miscellaneous 799324 28865374 0 0 0 6553767 8092175 39363402 32545252 0 0 1885167 3877650 2110082 2181722 0 0 378732039 392431949 0 0 4162737 726484 15976150 9387033 6837313 6589117 42258071 42002310 98978500 132980990 0 0 1009382 432592 7318153 8320101 589208613 630180342 13570745 17962407 0 0 0 0 0 0 374945 467643 0 0 0 0 496886703 532803410 510832393 551233460 X 0 0 0 0 78376220 78946882 78376220 78946882 589208613 630180342 X 9636620 161012 0 0 -3992861 -5234109 X 0 0 0 0 1 X 0 1406796 1406796 0 6264844 2163275 4101569 0 2324240 2134427 189813 0 5980270 5089331 890939 0 0 0 0 6589117 Certificates at Banks and Credit Unions 131230050 C COOP 310836 C FSCC 92681 C CUDL 25000 C PSCU 229218 C COLI Policies 1093205 F 132980990 0 Member Share Deposits 532803410 532803410 Schedule D, Part IV, Line 2b The escrow account is for property taxes and insurance payments collected from members who originated their mortgage loans at Qualstar Credit Union and the loans were sold to FNMA. X 1 1 X X X X 0 1 0 MARK R NELSON President 321456 0 75066 0 10250 0 0 0 30031 0 436803 0 0 MICHAEL G ELFSTROM Exec VP/CFO 238272 0 54174 0 0 0 0 0 29071 0 321517 0 0 ROBERT ARBUCKLE CLA 147006 0 21919 0 0 0 0 0 27228 0 196153 0 0 DIANE PERCIVAL Director of Finance 101880 0 9862 0 119427 0 0 0 12882 0 244051 0 0 WILLIAM HANAFORD Investment Advisor 143334 0 11500 0 0 0 0 0 12779 0 167613 0 0 KARA TAYLOR VP OF I.S. 136440 0 16511 0 0 0 0 0 12745 0 165696 0 0 Schedule J, Part I, Line 1a The mode of travel and class of service will be based on the budget allocation for such travel. The volunteers will be authorized with companion travel as approved by the NCUA and the WA DFI and will be in compliance with all laws and regulations. The value of companion travel will be reported to the IRS on a Form 1099-MISC if the amount of travel is over $600. Schedule J, Part I, Line 4 Diane Percival received a payment from a 457(f) plan during the year. This was an agreement with a credit union that was merged into Qualstar Credit Union during 2017. Mark Nelson Current Officer Secured Split Dollar Agreement X 1000000 1226868 0 1 1 Michael Elfstrom Current Officer Secured Split Dollar Agreement X 950000 954854 0 1 1 2181722 Schedule L, Part II A copy of the Qualstar Credit Union Secured Split-Dollar Agreement is available upon request. QUALSTAR CREDIT UNION and MARK NELSON are parties to the Secured Split-Dollar Agreement dated March 1, 2012 -the Agreement. Amendment No 1 is effective October 1, 2012. 1. The following is added to the end of Section 7.2.3. If forfeiture of the Executive's borrowing rights under Section 4.2 is for voluntary separation from service before the 10th anniversary of the Accumulation Policy's issue date, the Agreement will terminate as of the first day after the separation from service that the sum of the Funding Account balances and the cash surrender value of the Policies equals or exceeds the Outstanding Balance and the Credit Union recovers the Outstanding Balance. Notwithstanding Sections 3.1.4 and 5.2, if the Executive dies after such separation from service but before the Credit Union receives the Outstanding Balance, any remaining Funding Account balances and all death proceeds of the Policies belong, and will be paid, to the Credit Union. 2. Except as modified above, the Agreement remains in full force and effect. In addition, a copy of the Qualstar Credit Union Secured Split-Dollar Agreement is available upon request for: QUALSTAR CREDIT UNION and MICHAEL ELFSTROM are parties to the Secured Split-Dollar Agreement dated April 27, 2016 - the Agreement for $950,000, similar to above. Form 990, Part VI, Section A, Line 6 Each person seeking membership must be qualified for membership and must submit an application to the credit union. Each application shall be acted upon by the Board, of if the Board so chooses, membership representatives may be trained and authorized to approve applications. The applicant shall become a member when such application has been approved by the Board, or if applicable, the membership representatives and upon his/her subscription to at least one credit union product, or deposit, or loan account. Form 990, Part VI, Section A, Line 7a A Nominating Committee, made up of not fewer than three members, nominates at least one member for each Board vacancy. The Board secretary shall notify in writing all members eligible to vote at least 75 days prior to the annual meeting and that nominations for the vacancy may also be made by petition signed by one percent of the members with a minimum of 20 and a maximum of 500. The written notice shall indicate that the election will not be conducted by ballot and there will be no nominations from the floor when there is only one nominee for each position to be filled. All elections shall be determined by plurality of vote and shall be by ballot except where there is only one nominee for each position to be filled. Form 990, Part VI, Section B, Line 11b The form 990 was prepared by the Senior Accountant and the VP of Finance. The form was reviewed by the CFO prior to submission to the IRS. Both the VP of Finance and the CFO are Certified Public Accountants. Form 990, Part VI, Section B, Line 12c Disclosure is required of all potential conflicts of interest, either business or personal relationships with employees, members, vendors, business associates, or competitors of the credit union. The credit union will also retain on file all written reports of any disclosures made regarding the Credit Union Code of Conduct. Employees, officers, and Directors of the credit union are required to acknowledge that they have read and understood the Code of Conduct and any subsequent modifications, and that they agree to comply with this policy. Employees and officers are required to disclose this information annually. Form 990, Part VI, Section B, Line 15 The organization uses a Compensation Committee to establish the CEO compensation. The committee also uses an independent compensation consultant, written employment contract and compensation surveys or studies. Form 990, Part VI, Section C, Line 19 This information is available upon request. The request should be made in writing to the organizations address. Form 990, Part IX, Line 11g Other professional and outside services to support the credit union such as courier and mailing services, card network charges, and shared branching network charges. Form 990, Part XI, Line 9 Valuation adjustment on defined benefit plan