2020-11-16T11:51:10-06:00 2019-12-31 910189318 MOSS ADAMS LLP 2707 COLBY AVENUE SUITE 801 EVERETT WA 98201 990 2019-01-01 910593941 SALAL CREDIT UNION SALA 2062989394 9706 4TH AVENUE NE NO 400 SEATTLE WA 98115 RUSSELL E ROSENDAL PRESIDENT/CEO 2608267603 2020-11-10 1 COLLEEN RAMIRES P01251320 4252597227 2020-11-10 50.35.113.33 2020-11-10 19:23:08 PS P DA39A3EE5E6B4B0D3255BFEF95601890AFD80709 C6EDF24ACDF01F1BE2FDCB25E70854792FCE1D1F 2019 2021-04-22 16:20:28Z RUSSELL E ROSENDAL 9706 4TH AVENUE NE NO 400 SEATTLE WA 98115 59714680 0 X WWW.SALALCU.ORG X 1948 WA THE MISSION OF SALAL CREDIT UNION IS TO MAKE MONEY MANAGEMENT EASIER FOR MEMBERS. 10 10 224 12 235521 0 0 0 32532642 43413476 2176348 2480766 217139 -380278 34926129 45513964 218240 501532 0 0 15056089 17624501 0 0 0 15399610 17951095 30673939 36077128 4252190 9436836 656178772 737187544 597790642 669252967 58388130 67934577 THE MISSION OF SALAL CREDIT UNION IS TO MAKE MONEY MANAGEMENT EASIER FOR MEMBERS. 0 0 SALAL CREDIT UNION IS A STATE CHARTERED NON-PROFIT COOPERATIVE CREDIT UNION OFFERING ITS MEMBERS A VARIETY OF FINANCIAL SERVICES DESIGNED TO PROMOTE SAVING AND PROVIDE CREDIT AT FAIR AND REASONABLE RATES OF INTEREST. SALAL CREDIT UNION CURRENTLY SERVES 43,351 MEMBERS; HOWEVER THERE ARE APPROXIMATELY 6,700,000 POTENTIAL MEMBERS IN THE GREATER PUGET SOUND COMMUNITY. SALAL CREDIT UNION OFFERS FINANCIAL LITERACY/EDUCATION PROGRAMS THROUGH BALANCE FINANCIAL FITNESS PROGRAM TO MEMBERS AND EMPLOYEES. THESE EDUCATIONAL PROGRAMS ARE DESIGNED TO HELP INDIVIDUALS IN BUDGETING, SAVING FOR MAJOR PURCHASES, COLLEGE, AND RETIREMENT AND OVERALL FINANCIAL MANAGEMENT. SALAL CREDIT UNION IS ACTIVE IN THE COMMUNITY BY CONTRIBUTING TO THE FUNDRAISING EFFORTS OF SEVERAL WORTHWHILE ORGANIZATIONS SUCH AS HEALTHPOINT, INTERNATIONAL COMMUNITY HEALTH SERVICES (ICHS) AND CU FOR KIDS/CHILDREN'S MIRACLE NETWORK HOSPITALS. SALAL CREDIT UNION ALSO PROVIDES MATCHING CONTRIBUTIONS FOR EMPLOYEES AND DIRECTORS TO APPROVED 501(C)(3) ORGANIZATIONS UP TO $500 PER YEAR. 0 0 0 1 0 0 0 0 1 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 1 1 0 0 1 9174 0 1 224 1 1 1 0 0 0 0 0 0 0 X 10 10 0 0 0 0 1 1 1 1 1 0 0 0 1 1 1 1 1 1 1 0 CA X RANDY CLOES 2068267807 9706 4TH AVENUE NE NO 400 SEATTLE WA 98115 JOE LEPLA BOARD CHAIRMAN 1.00 X X 0 0 0 ANNETTE MURPHY BOARD VICE CHAIRMAN 1.00 X X 0 0 0 BRIAN LUONG BOARD SECRETARY (FROM 6/19) 1.00 X X 0 0 0 JAMIE LEE BOARD SECRETARY (THROUGH 3/19) 1.00 X X 0 0 0 ALI SEALS BOARD MEMBER 1.00 X 0 0 0 DICK WOO BOARD MEMBER 1.00 X 0 0 0 ALAN LEDERMAN BOARD MEMBER 1.00 X 0 0 0 BEN STEINER BOARD MEMBER 1.00 X 0 0 0 CATHERINE BAILEY BOARD MEMBER 1.00 X 0 0 0 LAURA MCMILLAN BOARD MEMBER 1.00 X 0 0 0 CHRIS GRANT BOARD MEMBER 1.00 X 0 0 0 RUSSELL ROSENDAL PRESIDENT/CEO 40.00 X 511951 0 242168 RANDY CLOES SVP - CHIEF FINANCIAL OFFICER 40.00 X 272166 0 35535 ROBERT SCHWEIGERT SVP - CHIEF LENDING OFFICER 40.00 X 274357 0 20335 TARA SEEVER SVP - CHIEF HUMAN RESOURCES OFFICER 40.00 X 211975 0 76631 TROY-SKOTT POPE SVP - CHIEF RETAIL BANKING OFFICER 40.00 X 264600 0 21262 SANDORA TIBURCIO SR. MORTGAGE LOAN ADVISOR 40.00 X 270804 0 15708 BRETT BALLMAN VICE PRESIDENT - INTERNAL AUDIT 40.00 X 196457 0 18278 VINCENT PUNTENEY VICE PRESIDENT - CONSUMER LENDING 40.00 X 159436 0 20993 MICHAEL BISHOP VICE PRESIDENT - BRANCH EXPERIENCE 40.00 X 156052 0 16767 CHRISTIAN GRUNERT VICE PRESIDENT - IT 40.00 X 156498 0 16022 GERALDINE BULLARD VICE PRESIDENT - CONTROLLER 40.00 X 155030 0 13429 SYLVIA SEE SENIOR BUSINESS OFFICER 40.00 X 165888 0 28417 JAMES MILLSAP DEALER ACCOUNT MANAGER 40.00 X 175802 0 18195 JOAN GERAGHTY VICE PRESIDENT - PROGRAM MANAGEMENT 40.00 X 149909 0 18417 MATTHEW HEITLAND IT STRATEGY & INNOVATION SENIOR MNGR 40.00 X 138234 0 19853 CARMELLA MURPHY THROUGH 919 VICE PRESIDENT - BUSINESS SERVICES 40.00 X 138086 0 11549 3397245 0 593559 31 0 1 0 FOUSHEE & ASSOCIATES INC PO BOX 3767 BELLEVUE WA 98009 CONSTRUCTION 1285513 JACK HENRY & ASSOCIATES INC PO BOX 609 MONETT MO 65708 DATA PROCESSING 828837 GARDA CL NORTHWEST INC LOCKBOX 233209 CHICAGO IL 606895332 SECURITY 803070 SECURETRANS INC DBA AXIOM ARMORED TRANSP 2420 CINNABAR LOOP ANCHORAGE AK 99507 SECURITY 689271 ALKAMI TECHNOLOGY INC 5601 GRANITE PARKWAY PLANO TX 75024 DATA PROCESSING 550264 24 INTEREST ON MEMBER LOANS 522291 30623474 30623474 SERVICE CHARGES & FEE INCOME 522200 8466734 8408853 57881 NET GAINS ON SALES OF LOANS 523000 3935436 3935436 OTHER NON-INTEREST INCOME 522299 387832 235047 152785 43413476 2372133 2372133 1158729 1528064 -369335 -369335 35798 -405133 12507763 273522 12399880 272772 107883 750 108633 108633 SUBSIDIARY INVESTMENT LOSS 900099 -10943 -10943 -10943 45513964 43202810 235521 2075633 501532 3126452 11181114 250665 1978218 1088052 372233 97688 252110 875097 821879 834648 1037761 939176 475434 3227735 2292677 99696 PROVISION FOR LOAN LOSS 1453366 TRANSACTION EXPENSES 1424485 CREDIT UNION OPERATING 1310920 DATA PROCESSING 1145598 1290592 36077128 6441686 9422508 41038081 39303633 1753071 501733329 577052356 1158690 2008101 45094248 10369482 34743863 34724766 61088122 61295818 2496380 2755194 7478621 8872097 656178772 737187544 13775223 18302929 13201930 12359140 570813489 638590898 597790642 669252967 X 0 0 0 0 58388130 67934577 58388130 67934577 656178772 737187544 X 9436836 139898 -30287 X 0 1 X 1 0 1 1565 1565 0 PART II-B, LINE 1: THE CEO TRAVELED TO WASHINGTON D.C. TO SUPPORT THE SAFE ACT WHICH WOULD PROVIDE LEGISLATION AROUND BANKING AND OTHER SERVICES BEING PROVIDED TO THE CANNABIS INDUSTRY. 0 0 8008645 8008645 17106472 1197520 15908952 10102972 2613447 7489525 9876159 6558515 3317644 34724766 MEMBER SHARES 638590898 638590898 X PART X, LINE 2: THE CREDIT UNION IS EXEMPT BY STATUTE FROM FEDERAL INCOME TAXES UNDER THE PROVISIONS OF SECTION 501 OF THE INTERNAL REVENUE CODE (IRC) OF 1954; HOWEVER, THE CREDIT UNION'S UNRELATED BUSINESS INCOME IS SUBJECT TO FEDERAL INCOME TAXES. THERE WERE NO SIGNIFICANT INCOME TAXES FOR THE YEARS ENDED DECEMBER 31, 2019 OR 2018. 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, 2019 OR 2018. IT IS THE CREDIT UNION'S POLICY TO RECORD ANY PENALTIES OR INTEREST ARISING FROM FEDERAL OR STATE TAXES AS A COMPONENT OF NONINTEREST EXPENSE. THE CREDIT UNION FILES EXEMPT ORGANIZATION AND UNRELATED BUSINESS INCOME TAX RETURNS WITHIN THE FEDERAL JURISDICTION. 1 BLOODWORKS NORTHWEST 921 TERRY AVEUE SEATTLE WA 98104 911019655 501(C)(3) 15500 SPONSORSHIP OF FUNDRAISING EVENT EPILEPSY FOUNDATION 2311 NO 45TH 134 SEATTLE WA 98103 520856660 501(C)(3) 16790 SPONSORSHIP OF FUNDRAISING EVENT HEALTHPOINT 955 POWELL AVENUE SW SEATTLE WA 98057 910884412 501(C)(3) 29000 SPONSORSHIP OF FUNDRAISING EVENT HIGHLINE MEDICAL CENTER FOUNDATION 16259 SYLVESTER ROAD SW 101 BURIEN WA 98166 911171170 501(C)(3) 10000 CLINICAL ADVANCEMENT PROGRAM FUNDING KING COUNTY NURSES ASSOCIATION 4649 SUNNYSIDE AVE N SEATTLE WA 98103 910282054 501(C)(3) 34000 NURSING SCHOLARSHIP FUND MARY MAHONEY PROFESSIONAL NURSES ORGANIZATION PO BOX 22003 SEATTLE WA 98122 911653833 501(C)(3) 9000 NURSING SCHOLARSHIP FUND UW FOUNDATION 407 GERBERDING HALL BOX 351210 SEATTLE WA 98195 943079432 501(C)(3) 10000 SPONSORSHIP OF FUNDRAISING EVENT WASHINGTON BUSINESS WEEK PO BOX 22003 RENTON WA 98057 911048245 501(C)(3) 10000 SUMMER HEALTHCARE PROGRAM WESTERN WASHINGTON NATIONAL ASSOCIATION OF HISPANIC NURSES PO BOX 23133 SEATTLE WA 98102 471550062 501(C)(3) 8000 NURSING SCHOLARSHIP FUND SALAL FOUNDATION PO BOX 75029 SEATTLE WA 98175 463476338 501(C)(3) 60000 GENERAL SUPPORT 10 0 PART I, LINE 2: THE ORGANIZATION OFFERS SCHOLARSHIP OPPORTUNITIES TO MEMBERS OF THE FOLLOWING NURSING ASSOCIATIONS KING COUNTY NURSES ASSOCIATION, MARY MAHONEY NURSES ASSOCIATION AND THE WASHINGTON HISPANIC NURSES ASSOCIATION. GRANTS ARE ALSO PROVIDED TO THE KING COUNTY NURSES ASSOCIATION TO SUPPORT NURSES WHO APPLY FOR COMMUNITY SUPPORT ACTIVITIES. THE NURSES WHO RECEIVE THE FUNDS ARE VETTED BY THE ASSOCIATION. THE ORGANIZATION OFFERS ONGOING SUPPORT TO VARIOUS ANNUAL FUNDRAISING CAMPAIGNS. THE ORGANIZATION HAS AN ONGOING RELATIONSHIP WITH EACH DONEE ORGANIZATION, ATTENDS THE FUNDRAISING EVENTS, AND THE BUSINESS DEVELOPMENT OFFICER MAINTAINS CONTACT WITH DONEE ORGANIZATION OFFICERS THROUGHOUT THE YEAR. X X 1 1 X X X X 0 1 0 RUSSELL ROSENDAL PRESIDENT/CEO 385269 0 98003 0 28679 0 199221 0 42947 0 754119 0 0 0 RANDY CLOES SVP - CHIEF FINANCIAL OFFICER 207529 0 60843 0 3794 0 23337 0 12198 0 307701 0 0 0 ROBERT SCHWEIGERT SVP - CHIEF LENDING OFFICER 209642 0 61300 0 3415 0 10961 0 9374 0 294692 0 0 0 TARA SEEVER SVP - CHIEF HUMAN RESOURCES OFFICER 168192 0 41100 0 2683 0 54566 0 22065 0 288606 0 0 0 TROY-SKOTT POPE SVP - CHIEF RETAIL BANKING OFFICER 202092 0 56843 0 5665 0 12210 0 9052 0 285862 0 0 0 SANDORA TIBURCIO SR. MORTGAGE LOAN ADVISOR 0 0 266796 0 4008 0 4199 0 11509 0 286512 0 0 0 BRETT BALLMAN VICE PRESIDENT - INTERNAL AUDIT 164454 0 30524 0 1479 0 9226 0 9052 0 214735 0 0 0 VINCENT PUNTENEY VICE PRESIDENT - CONSUMER LENDING 128916 0 23452 0 7068 0 9484 0 11509 0 180429 0 0 0 MICHAEL BISHOP VICE PRESIDENT - BRANCH EXPERIENCE 132186 0 22757 0 1109 0 7715 0 9052 0 172819 0 0 0 CHRISTIAN GRUNERT VICE PRESIDENT - IT 132002 0 23322 0 1174 0 6970 0 9052 0 172520 0 0 0 GERALDINE BULLARD VICE PRESIDENT - CONTROLLER 135000 0 19249 0 781 0 5004 0 8425 0 168459 0 0 0 SYLVIA SEE SENIOR BUSINESS OFFICER 85021 0 80216 0 651 0 6352 0 22065 0 194305 0 0 0 JAMES MILLSAP DEALER ACCOUNT MANAGER 51471 0 117807 0 6524 0 7008 0 11187 0 193997 0 0 0 JOAN GERAGHTY VICE PRESIDENT - PROGRAM MANAGEMENT 131130 0 17311 0 1468 0 7230 0 11187 0 168326 0 0 0 MATTHEW HEITLAND IT STRATEGY & INNOVATION SENIOR MNGR 114067 0 22192 0 1975 0 8666 0 11187 0 158087 0 0 0 PART I, LINE 1A THE ORGANIZATION PAYS FOR TRAVEL OF COMPANIONS OF THE BOARD OF DIRECTORS AND CEO. THE ORGANIZATION PAYS HEALTH CLUB DUES FOR THE CEO AND COO ATHLETIC CLUB MEMBERSHIP. THESE ITEMS ARE TREATED AS TAXABLE INCOME TO THE INDIVIDUALS AS APPROPRIATE. PART I, LINE 4B THE CREDIT UNION HAS A SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN FOR THE CHIEF EXECUTIVE OFFICER WHEREBY THE CREDIT UNION MAKES SCHEDULED MONTHLY CONTRIBUTIONS TO INVESTMENT ACCOUNTS AND THE CHIEF EXECUTIVE OFFICER WILL BE ENTITLED TO THE BALANCE OF THE INVESTMENT ACCOUNTS UPON HIS 65TH BIRTHDAY (DECEMBER 2023), SUBJECT TO CERTAIN CONDITIONS IN THE AGREEMENT. FOR THE YEAR ENDING DECEMBER 31, 2019 THE CREDIT UNION CONTRIBUTED $171,344. THE CREDIT UNION ESTABLISHED A 457(F) NONQUALIFIED DEFERRED COMPENSATION PLAN FOR THE CHIEF FINANCIAL OFFICER, CHIEF HUMAN RESOURCES OFFICER, CHIEF RETAIL BANKING OFFICER, VICE PRESIDENT - INTERNAL AUDIT, VICE PRESIDENT - CONSUMER LENDING, VICE PRESIDENT - BRANCH EXPERIENCE, VICE PRESIDENT - INFORMATION TECHNOLOGY, VICE PRESIDENT - PROGRAM MANAGEMENT, AND IT STRATEGY AND INNOVATION SENIOR MANAGER. THE CREDIT UNION CONTRIBUTES 100% OF THE FUNDS TO THIS PLAN. UNDER THE TERMS OF THE PLAN, THE PARTICIPANTS ARE ENTITLED TO A SPECIFIED AMOUNT IF THEY REMAIN EMPLOYED BY THE CREDIT UNION UNTIL A PREDETERMINED TIME. THE DEFERRED COMPENSATION ACCRUAL WAS $81,133 AS OF DECEMBER 31, 2019. THE CFO, CHIEF RETAIL BANKING OFFICER, VICE PRESIDENT - INTERNAL AUDIT, VICE PRESIDENT - CONSUMER LENDING AND VICE PRESIDENT - IT PARTICIPATE IN THE SPLIT-DOLLAR LIFE INSURANCE ARRANGEMENT THAT IS TREATED AS A SPLIT-DOLLAR LOAN UNDER TREASURY REGULATIONS SECTION 1.7872-15. BRETT BALLMAN KEY EMPLOYEE COLLATERAL-ASSIGNMENT SPLIT-DOLLAR ARRANGEMENT X 68064 77340 0 1 1 TROY-SKOTT POPE OFFICER COLLATERAL-ASSIGNMENT SPLIT-DOLLAR ARRANGEMENT X 709906 725757 0 1 1 RANDY CLOES OFFICER COLLATERAL-ASSIGNMENT SPLIT-DOLLAR ARRANGEMENT X 709236 725072 0 1 1 CHRISTIAN GRUNERT KEY EMPLOYEE COLLATERAL-ASSIGNMENT SPLIT-DOLLAR ARRANGEMENT X 115871 118458 0 1 1 MICHAEL BISHOP KEY EMPLOYEE COLLATERAL-ASSIGNMENT SPLIT-DOLLAR ARRANGEMENT X 104120 106444 0 1 1 1753071 FORM 990, PART VI, SECTION A, LINE 6 THE CREDIT UNION'S MEMBERS HAVE RIGHTS TO ELECT THE MEMBERS OF THE GOVERNING BODY. THE CREDIT UNION'S MEMBERS ALSO RECEIVE A SHARE OF THE ORGANIZATION'S PROFITS IN THE FORM OF CASH DIVIDENDS. 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. THE CREDIT UNION'S MEMBERS ALSO RECEIVE A SHARE OF THE ORGANIZATION'S PROFITS IN THE FORM OF CASH DIVIDENDS. FORM 990, PART VI, SECTION B, LINE 11B FORM 990 IS DRAFTED BY AN EXTERNAL ACCOUNTING FIRM AND COMPANY CONTROLLER AND IS THEN REVIEWED AND APPROVED BY THE CFO. FORM 990, PART VI, SECTION B, LINE 12C EACH EMPLOYEE IS REQUIRED TO ANNUALLY SIGN AN ETHICS STATEMENT ACKNOWLEDGING THEY HAVE NOT ACCEPTED ITEMS OF VALUE GREATER THAN $20. FURTHERMORE, EXECUTIVE MANAGEMENT AND THE BOARD OF DIRECTORS SIGN AN ADDITIONAL STATEMENT ACKNOWLEDGING THEIR HIGHER STANDARDS. DEPARTMENT MANAGERS ARE RESPONSIBLE FOR MONITORING AND REPORTING ANY VIOLATIONS OF THE CONFLICT OF INTEREST POLICY. FORM 990, PART VI, SECTION B, LINE 15 THE ORGANIZATION'S HUMAN RESOURCES DEPARTMENT SUBSCRIBES TO TWO ANNUAL FINANCIAL INSTITUTIONS COMPENSATION SURVEYS. COMPENSATION FOR EXECUTIVE OFFICERS IS APPROVED BY THE CEO IN CONSULTATION WITH THE INDEPENDENT EXECUTIVE COMMITTEE OF THE BOARD OF DIRECTORS. COMPENSATION FOR THE CEO IS RECOMMENDED BY THE EXECUTIVE COMMITTEE AFTER REVIEWING MATERIAL PREPARED BY A CONSULTANT HIRED BY THE COMMITTEE OR ANALYSIS COMPLETED BY HEAD OF HUMAN RESOURCES. FINAL APPROVAL IS SUBJECT TO FULL BOARD APPROVAL. FORM 990, PART VI, SECTION C, LINE 19 FINANCIAL STATEMENTS ARE AVAILABLE AT THE ANNUAL MEETING. BALANCE SHEETS ARE POSTED AT EACH BRANCH AND UPDATED MONTHLY. MEMBERS ARE DIRECTED TO THE NCUA WEBSITE FOR ADDITIONAL FINANCIAL INFORMATION. FORM 990, PART XI, LINE 9: SUBSIDIARY INCOME BOOK/TAX DIFFERENCE -30,287. LENDING SOLUTIONS NORTHWEST LLC 9706 4TH AVENUE NE NO 400 SEATTLE WA 98115 461812634 AUTO LENDING WA 0 131270 SALAL CREDIT UNION SCU HOLDINGS LLC 9706 4TH AVENUE NE NO 400 SEATTLE WA 98115 814624261 HOLD REAL ESTATE WA 2164797 25134721 SALAL CREDIT UNION SALAL FOUNDATION 9706 4TH AVENUE NE NO 400 SEATTLE WA 98115 463476338 SUPPORTS PHILANTHROPIC ACTIVITIES WA 501(C)(3) LINE 7 SALAL CREDIT UNION 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 SALAL FOUNDATION B 60000 FMV