2018-11-15T16:41:13-06:00 2017-12-31 910189318 MOSS ADAMS LLP 2707 COLBY AVENUE SUITE 801 EVERETT WA 98201 990 2017-01-01 910219005 VERITY CREDIT UNION VERI 8004444589 11027 MERIDIAN AVENUE NORTH SEATTLE WA 98133 BRAD TANBERG CFO 8004444589 2018-11-15 1 COLLEEN RAMIRES P01251320 4252597227 2018-11-15 98.173.108.220 2018-11-15 13:38:05 PS P DA39A3EE5E6B4B0D3255BFEF95601890AFD80709 866574987CA565ABE6CC9265146BBE3F5B9624AD 2017 2019-02-21 02:37:17Z BRAD TANBERG 11027 MERIDIAN AVENUE NORTH SEATTLE WA 98133 47868989 0 X WWW.VERITYCU.COM X CREDIT UNION 1933 WA A COOPERATION ORGANIZED FOR THE PURPOSE OF PROMOTING THRIFT AND SAVINGS AMONG ITS MEMBERS. 9 9 139 21 271508 -344752 0 0 22452497 23706626 1749933 2142936 662339 387906 24864769 26237468 0 0 0 0 8827625 9001436 0 0 0 14675279 14696962 23502904 23698398 1361865 2539070 505269501 530157055 460801657 483146996 44467844 47010059 X SEE SCH O 0 0 VERITY CREDIT UNION IS A WASHINGTON STATE CHARTERED CREDIT UNION THAT SERVES 31,568 MEMBER OWNERS. VERITY'S PRIMARY FIELD OF MEMBERSHIP INCLUDES ALL INDIVIDUALS THAT RESIDE, WORK, WORSHIP, OR ATTEND SCHOOL IN ANY WASHINGTON STATE SCHOOL DISTRICT. VERITY OFFERS A FULL RANGE OF DEPOSIT, LOAN, AND INVESTMENT PRODUCTS AND SERVICES THROUGH SIX FULL BRANCHES, A CALL CENTER, AND ONLINE ACCOUNT SERVICES. VERITY CREDIT UNION OFFERS A FULL-SERVICE INVESTMENT PROGRAM WITH TWO REGISTERED INVESTMENT REPRESENTATIVES AND A LICENSED SUPPORT REPRESENTATIVE. AS OF DECEMBER 31, 2017, VERITY'S INVESTMENT SERVICES PROGRAM HAD 1,040 MEMBERS WHO HAVE 2,024 ACCOUNTS, AND $139,707,779 IN ASSETS UNDER MANAGEMENT. VERITY CREDIT UNION OFFERS FREE FINANCIAL COUNSELING TO ITS MEMBERS. SPECIFIC SERVICES INCLUDE FINANCIAL PLANNING, DEBT MODIFICATION ON LOANS FROM VERITY AND OTHER CREDITORS, AND DIRECT ASSISTANCE IN UTILIZING THE GOVERNMENT SPONSORED MORTGAGE RELIEF PROGRAMS. 0 0 0 0 0 0 0 0 0 1 0 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 1 1 0 0 1 51 0 1 139 1 1 1 0 0 0 0 0 X 9 9 0 0 1 0 1 1 1 1 1 0 0 0 1 1 1 1 1 0 1 0 X JOHN ZMOLEK 8004444589 11027 MERIDIAN AVENUE NORTH SEATTLE WA 98133 ZACHARY S GOSE CHAIR 3.00 X X 0 0 0 BENJAMIN LUNDELL VICE CHAIR 3.00 X X 0 0 0 DAN STRANDY VICE CHAIR 3.00 X X 0 0 0 KAREN HUNT SECRETARY 3.00 X X 0 0 0 RODOLFO HURTADO BOARD MEMBER 3.00 X 0 0 0 ANTHONY KUSSKE BOARD MEMBER 3.00 X 0 0 0 ERIN HASS BOARD MEMBER (THROUGH 4/17) 3.00 X 0 0 0 STEVE WHITE BOARD MEMBER (THROUGH 4/17) 3.00 X 0 0 0 DAN YOUNG BOARD MEMBER 3.00 X 0 0 0 TRINA VENARD BOARD MEMBER 3.00 X 0 0 0 DAVID PRIESTLY BOARD MEMBER 3.00 X 0 0 0 JOHN ZMOLEK CEO 40.00 X 326411 0 27931 MICHAEL MITCHELL CFO (THROUGH 9/17) 40.00 X 124338 0 10782 BRAD TANBERG CFO 40.00 X 12500 0 0 SHERRY STECKLY-DUFFY COO (THROUGH 8/17) 40.00 X 156996 0 9077 JUSTIN MARTIN COO 40.00 X 171645 0 14807 JASON HIRL CTO 40.00 X 155935 0 14188 KEN BUTLER DIRECTOR OF WEALTH MANAGEMENT 40.00 X 152692 0 11654 HEIDI CLEAVLAND-WESLEY CMO 40.00 X 109253 0 9813 LEWIS BEQUETTE CONTROLLER 40.00 X 103626 0 9691 JOSHUA SIDELL DIRECTOR OF MEMBER EXPERIENCE 40.00 X 102469 0 4099 PAUL MCJANNET DIRECTOR OF PROJECT MANAGEMENT 40.00 X 101278 0 15091 1517143 0 127133 10 0 1 0 KAYE-SMITH PO BOX 956 RENTON WA 98057 MAILING SERVICES 243561 HUBBARD RADIO PO BOX 24952 SEATTLE WA 98124 ADVERTISING 238850 LEVEL 3 COMMUNICATIONS LLC PO BOX 910182 DENVER CO 80291 TELECOMMUNICATION 217131 DIEBOLD INCORPORATED PO BOX 643543 PITTSBURG PA 15264 ATM SERVICES 196416 KASASA LTD PO BOX 527 LUBBOCK TX 79408 REWARD CHECKING SERVICES 179414 15 INTEREST ON LOANS 522100 17344354 17344354 FEES AND CHARGES 522100 3543152 3344021 199131 INTERCHANGE INCOME 522100 2819120 2819120 23706626 1976681 1976681 440667 15827 424840 424840 37445 387395 21781949 21542531 73163 239418 -73163 166255 166255 SUBSIDIARY LOSS 522100 -36934 -71866 34932 -36934 26237468 23435629 271508 2530331 1024610 6329614 196789 838422 612001 14527 46783 240213 1213119 971598 1833469 915120 55584 220338 1576682 1445748 118046 PURCHASED SERVICES 2274555 PROVISION FOR LOAN LOSS 1883055 LOAN SERVICING 900551 987574 23698398 5377536 4713206 27565518 6401295 1049001 1221371 2732688 2735632 350973915 399849924 816632 1004731 21496520 11036478 11166025 10460042 86160505 88521767 7540965 7293516 616200 404000 11270516 7551571 505269501 530157055 6071742 6620204 12400000 13400000 442329915 463126792 460801657 483146996 X 0 0 0 0 44467844 47010059 44467844 47010059 505269501 530157055 2539070 3145 0 X 0 1 X 1 0 1620348 1620348 9332227 4497289 4834938 3719629 1993778 1725851 6536816 4545411 1991405 287500 287500 10460042 MEMBER SHARE AND DEPOSITS 463126792 463126792 X PART X, LINE 2: THE CREDIT UNION IS A STATE-CHARTERED CREDIT UNION AS DESCRIBED IN INTERNAL REVENUE CODE (IRC) SECTION 501(C)(14) AND, AS SUCH, 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. MANY STATES HAVE SIMILAR LAWS. THE SPECIFIC APPLICATION OF SECTION 512 TO THE VARIOUS ACTIVITIES CONDUCTED BY STATE-CHARTERED CREDIT UNIONS HAS BEEN AT ISSUE FOR MANY YEARS. DURING 2007, THE IRS ISSUED A SERIES OF TECHNICAL ADVICE MEMORANDA (TAMS) TO A NUMBER OF STATE-CHARTERED CREDIT UNIONS LOCATED THROUGHOUT THE COUNTRY. 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 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. FASB ASC 740-10-65, INCOME TAXES, PROVIDES GUIDANCE FOR HOW UNCERTAIN TAX POSITIONS SHOULD BE RECOGNIZED, MEASURED, DISCLOSED, AND PRESENTED IN THE CONSOLIDATED FINANCIAL STATEMENTS. THIS REQUIRES THE EVALUATION OF TAX POSITIONS TAKEN OR EXPECTED TO BE TAKEN IN THE COURSE OF PREPARING THE CREDIT UNION'S TAX RETURNS TO DETERMINE WHETHER THE TAX POSITIONS ARE "MORE LIKELY THAN NOT" TO BE SUSTAINED "WHEN CHALLENGED OR "WHEN EXAMINED" BY THE APPLICABLE TAX AUTHORITY. TAX POSITIONS DEEMED TO NOT MEET THE MORE-LIKELY-THAN-NOT THRESHOLD WOULD BE RECORDED AS A TAX EXPENSE AND LIABILITY IN THE CURRENT YEAR. 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. FOR THE YEARS ENDED DECEMBER 31, 2017 AND 2016, MANAGEMENT HAS DETERMINED THAT THERE ARE NO MATERIAL UNCERTAIN TAX POSITIONS. X 0 0 0 JOHN ZMOLEK CEO 293496 0 30315 0 2600 0 19276 0 8655 0 354342 0 0 0 SHERRY STECKLY-DUFFY COO (THROUGH 8/17) 130267 0 11281 0 15448 0 5662 0 3415 0 166073 0 0 0 JUSTIN MARTIN COO 163064 0 8581 0 0 0 6866 0 7941 0 186452 0 0 0 JASON HIRL CTO 147060 0 8875 0 0 0 6237 0 7951 0 170123 0 0 0 KEN BUTLER DIRECTOR OF WEALTH MANAGEMENT 49342 0 103350 0 0 0 6108 0 5546 0 164346 0 0 0 JOHN ZMOLEK CHIEF EXECUTIVE OFFICER EXECUTIVE COMPENSATION X 2732688 2735632 0 1 1 2735632 SCHEDULE L, PART II, LINE (C) ADDITIONAL EXPLANATION: EXECUTIVE COMPENSATION UNDER A SPLIT-DOLLAR LIFE INSURANCE ARRANGEMENTTHAT IS TREATED AS A SPLIT-DOLLAR LOAN UNDER TREASURY REGULATIONSSECTION 1.782-15. FORM 990, PART III, LINE 1, DESCRIPTION OF ORGANIZATION MISSION: A COOPERATIVE, ORGANIZED FOR THE PURPOSE OF PROMOTING THRIFT AND SAVINGS AMONG ITS MEMBERS, CREATING A SOURCE OF CREDIT FOR THEM AT RATES OF INTEREST SET BY THE BOARD OF DIRECTORS, AND PROVIDING AN OPPORTUNITY FOR THEM TO USE AND CONTROL THEIR OWN MONEY ON A DEMOCRATIC BASIS IN ORDER TO IMPROVE THEIR ECONOMIC AND SOCIAL CONDITIONS. AS A COOPERATIVE, VERITY CREDIT UNION CONDUCTS ITS BUSINESS FOR THE MUTUAL BENEFIT AND GENERAL WELFARE OF ITS MEMBERS WITH THE EARNINGS, SAVINGS, BENEFITS, OR SERVICES OF THE CREDIT UNION BEING DISTRIBUTED TO ITS MEMBERS AS PATRONS. FORM 990, PART VI, SECTION A, LINE 4 THE BYLAWS WERE UPDATED TO CHANGE THE NUMBER OF MEMBERS OF THE BOARD FROM A SINGLE AMOUNT REQUIRED TO A RANGE. FORM 990, PART VI, SECTION A, LINE 6 THE CREDIT UNION'S MEMBERS HAVE RIGHTS TO ELECT 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 THE GOVERNING BOARD OF VERITY 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 IN 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 OUR 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 THE CFO REVIEWS THE REPORTS FOR ACCURACY, COMPARING TO INTERNAL FINANCIAL STATEMENTS AND OTHER INTERNAL REPORTS. THE CEO MAKES THE FINAL REVIEW AND APPROVES THE RETURNS FORM 990, PART VI, SECTION B, LINE 12C ALL BOARD AND COMMITTEE MEMBERS WILL REVIEW AND SIGN THE STATEMENT OF RECEIPT & UNDERSTANDING BEFORE CONSIDERATION FOR OFFICE. ANNUALLY THEY WILL SIGN THE STATEMENT OF RECEIPTS & UNDERSTANDING AT THE MAY BOARD MEETING. CREDIT UNION BOARD AND COMMITTEE MEMBERS MUST IMMEDIATELY DISCLOSE THE EXISTENCE OF ANY KNOWN CONFLICT OF INTEREST EITHER WITH THE CREDIT UNION OR ITS MEMBERS. THEY MUST THEN RECUSE THEMSELVES FROM CONSIDERATION OF ANY CONTRACT, TRANSACTION OR RELATIONSHIP IN WHICH THEY OR THEIR FAMILY MEMBERS HAVE AN INTEREST. COMPLAINTS RELATING TO ALLEGED VIOLATIONS ARE TO BE PUT IN WRITING AND SUBMITTED TO ANY OFFICER, BOARD OR SUPERVISORY COMMITTEE MEMBER. COMPLAINTS WILL THEN BE FORWARD TO THE HIGHEST RANKING INDIVIDUAL ON THE BOARD OR SUPERVISORY COMMITTEE WHO WAS NOT NAMED IN THE COMPLAINT TO BE RESOLVED. FORM 990, PART VI, SECTION B, LINE 15B THE CEO'S COMPENSATION IS SET BY THE BOARD OF DIRECTORS. SENIOR MANAGEMENT'S COMPENSATION IS DETERMINED BY THE CEO, WHO REVIEWS SALARY SURVEY DATA ANNUALLY USING TWO DATA SETS FOR ALL SENIOR MANAGEMENT POSITIONS. THESE DATA SETS ARE THE ENTIRE CREDIT UNION INDUSTRY AND THE PUGET SOUND FINANCIAL INDUSTRY. FOR ALL REMAINING MANAGERS AND STAFF, EACH POSITION IS SLOTTED INTO 1 OF 6 SALARY RANGES. THE SALARY RANGES ARE REVIEWED ANNUALLY BY THE HUMAN RESOURCES DEPARTMENT TO ENSURE THAT THE JOB TITLE IS IN THE CORRECT RANGE. THE SALARY RANGES ARE ADJUSTED EVERY 2-3 YEARS FOR INFLATION. FORM 990, PART VI, SECTION C, LINE 19 FINANCIAL STATEMENTS ARE POSTED IN ALL BRANCHES AND ON THE WEBSITE. GOVERNING DOCUMENTS AND CONFLICT OF INTEREST POLICIES ARE MADE AVAILABLE UPON REQUEST. 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