2016-11-15T14:12:02-06:00 2015-12-31 910189318 Moss Adams LLP 2707 Colby Avenue Suite 801 Everett WA 98201 990 2015-01-01 910557925 Sound Credit Union SOUN 2535977603 PO Box 1595 Tacoma WA 98401 Troy Garry CFO 2535977603 2016-11-15 1 Angela M Fidler P01254538 4252597227 2016-11-14 2015 2017-02-10 21:41:12Z Donald Clark Jr PO Box 1595 Tacoma WA 98401 61223186 0 X WWW.SOUNDCU.COM X 1940 WA COOPERATIVE PROVIDING FINANCIAL SERVICES, INCLUDING LOANS AND SHARE DEPOSITS TO ITS MEMBERS. 11 10 329 0 541257 -68244 0 0 49535093 55254148 3547933 4416526 478660 1104677 53561686 60775351 120000 120000 0 0 17906976 20484351 0 0 0 20556477 23876133 38583453 44480484 14978233 16294867 1153990675 1256874069 1026134290 1112323908 127856385 144550161 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 192,240 SAVINGS, CHECKING AND MONEY MARKET DEPOSIT ACCOUNTS WITH COMBINED BALANCES OF $890,773,405. MEMBERS HOLD 4,752 IRA SAVINGS ACCOUNTS WITH COMBINED BALANCES OF $75,086,423. 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, 5,247 OF OUR MEMBERS HOLD CERTIFICATE ACCOUNTS WITH TOTAL BALANCES OF $115,235,545. ON THE ASSET SIDE, 59,477 OF OUR MEMBERS HOLD CONSUMER LOANS THAT INCLUDE VEHICLE, STUDENT, MORTGAGE AND VISA LOANS. CONSUMER LOANS THAT INCLUDE VEHICLE SECURED LOANS TOTAL $400,831,280. REAL ESTATE SECURED LOANS TOTAL $322,251,014. THE LOAN PORTFOLIO TOTALS $825,445,555. 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 0 0 1 0 0 0 0 0 0 1 1 0 0 1 12724 0 1 329 1 1 1 0 0 0 0 0 X 11 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 GARY EMMONS Chairman 2.00 X X 25000 0 0 KEITH MOCK VICE CHAIR 2.00 X X 18500 0 0 BRENDA HEINEMAN SECRETARY/TREASURER 2.00 X X 18500 0 0 NORMAN PARSONS DIRECTOR 1.00 X 18500 0 0 RICHARD BRENTIN DIRECTOR 1.00 X 18500 0 0 DENNIS OKAMOTO DIRECTOR 1.00 X 15000 0 0 DAVID WASSON DIRECTOR 1.00 X 18500 0 0 SHELLEY COLEMAN DIRECTOR 1.00 X 20000 0 0 Angie Rose DIRECTOR 1.00 X 0 0 0 Barry Wallis DIRECTOR 1.00 X 2500 0 0 Richard BRANDSMA Chief executive OFFICER 41.00 X X 1644255 0 126066 TROY GARRY VP/Chief Financial Officer 40.00 X 206395 0 33528 DENISE REAGAN EXECUTIVE VP 40.00 X 812325 0 75476 CARL ROER VP/Chief Lending Officer 40.00 X 233427 0 81363 Charlotte Shenkel VP/Chief Branch Officer 40.00 X 218502 0 42649 Donald Clark JR President 40.00 X 534507 0 81124 Lorrie Rempher VP/Chief Information Officer 40.00 X 203721 0 35670 Robyn LaChance VP/CHIEF MARKETING OFFICER 40.00 X 151463 0 30495 Kay Williams-Prater VP/Branches 40.00 X 124789 0 27857 Jason McDougal Host Systems Manager 40.00 X 120630 0 33131 Kimberly Mapes VP/Human Resources 40.00 X 171207 0 23551 Stephanie Nicklaus VP/Business Lending (Left 8/31/15) 40.00 X 149024 0 3994 Christopher Michalak Mortgage Lending Manager 40.00 X 129164 0 20976 4854409 0 615880 19 0 1 0 Jack Henry & Associates Inc PO Box 609 Monett MO 65708 ACCOUNTS RECEIVABLE 1440463 HHJ INC 601 ST HELENS AVE Tacoma WA 98402 Remodeling 1136238 FRANK UNLIMITED LLC 2819 ELLIOTT AVE SUITE 204 SEATTLE WA 98121 MARKETING Services 1080252 ACCESS SOFTEK INC 727 ALLSTON WAY SUITE C BERKELEY CA 94710 Banking Software Services 507707 KAYE-SMITH Enterprises PO BOX 956 RENTON WA 98057 PRINTING/MAILing Statements 412224 15 LOAN INTEREST INCOME 522291 35143832 35143832 FEES AND CHARGES 522100 8748858 8483979 264879 INTERCHANGE 522298 7344719 7344719 Loan Origination Income 518210 1747169 1747169 lOAN rECOVERY 522291 869559 869559 1400011 1261822 138189 55254148 4415236 4415236 227455 439321 -211866 -211866 -211866 9804 0 8514 9804 -8514 1290 1290 vISA bONUS 900099 1068000 1068000 NON-OPERATING INCOME 900099 243043 243043 cELL tOWER 900099 5500 5500 1316543 60775351 55100945 541257 5278160 110000 10000 4665967 10001681 1505918 3099745 1211040 32721 202987 418057 1519498 3267478 831645 1845320 256927 221362 2359392 2479559 349650 LOAN SERVICING 3770356 Bank Fees 3116913 PROVISION FOR LOAN LOSS 2518776 MP AMORTIZATION OF CDI 621000 64492 44480484 13936420 13986769 88246066 142871568 20435373 11594063 716933463 821715957 1202463 1437228 58946084 19799963 38859751 39146121 249771392 200960147 3616561 3319640 5436468 4815468 15552718 17027108 1153990675 1256874069 1012667734 1099323908 466556 0 13000000 13000000 1026134290 1112323908 X 0 0 0 0 127856385 144550161 127856385 144550161 1153990675 1256874069 X 16294867 36573 362336 X 0 0 0 11974156 11974156 32282817 10081132 22201685 1939652 601901 1337751 12749459 9116930 3632529 39146121 1 News Tribune Scholarship Foundation 1950 S State St Tacoma WA 98411 943082120 501(c)(3) 30000 Benefactor Sponsorship for Business Leadership Awards 2014 & 2015 Economic Development Board PO BOX 1555 TAComa WA 98401 911040355 501(c)(3) 10000 Excellence Fund TACOMA-PIERCE COUNTY CHAMBER OF COMMERCE Po Box 1933 Tacoma WA 98401 910434830 501(c)(6) 10000 2014 Annual Meeting Sponsor Fircrest Golf Club 1500 Regents Blvd Fircrest WA 98466 910221060 501(C)(7) 20000 Golf Tournament 2 2 Scholarships 10 10000 Education Assistance Part I, Line 2: 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 X X 1 1 0 Richard BRANDSMA Chief executive OFFICER 584643 0 299132 0 760480 0 109440 0 16626 0 1770321 0 0 0 TROY GARRY VP/Chief Financial Officer 160270 0 46125 0 0 0 19083 0 14445 0 239923 0 0 0 DENISE REAGAN EXECUTIVE VP 333613 0 185966 0 292746 0 58850 0 16626 0 887801 0 0 0 CARL ROER VP/Chief Lending Officer 173258 0 50051 0 10118 0 66918 0 14445 0 314790 0 0 0 Charlotte Shenkel VP/Chief Branch Officer 160740 0 46245 0 11517 0 20375 0 22274 0 261151 0 0 0 Donald Clark JR President 359507 0 175000 0 0 0 58850 0 22274 0 615631 0 0 0 Lorrie Rempher VP/Chief Information Officer 158110 0 45611 0 0 0 19044 0 16626 0 239391 0 0 0 Robyn LaChance VP/CHIEF MARKETING OFFICER 116002 0 35461 0 0 0 13869 0 16626 0 181958 0 0 0 Kay Williams-Prater VP/Branches 109039 0 15750 0 0 0 11231 0 16626 0 152646 0 0 0 Jason McDougal Host Systems Manager 108983 0 11256 0 391 0 10857 0 22274 0 153761 0 0 0 Kimberly Mapes VP/Human Resources 137467 0 27581 0 6159 0 15455 0 8096 0 194758 0 0 0 Stephanie Nicklaus VP/Business Lending (Left 8/31/15) 87674 0 0 0 61350 0 3394 0 600 0 153018 0 0 0 Christopher Michalak Mortgage Lending Manager 117806 0 11358 0 0 0 6531 0 14445 0 150140 0 0 0 Part I, Lines 4a-b THE CREDIT UNION ALSO HAS ENTERED INTO THREE 457(F) SUPPLEMENTAL RETIREMENT BENEFIT AGREEMENTS WITH MEMBERS OF THE EXECUTIVE MANAGEMENT TEAM. THE AGREEMENTS PROVIDE BENEFITS PAYABLE TO THESE EMPLOYEES IF THEY REMAIN CONTINUOUSLY EMPLOYED FOR DESIGNATED PERIODS OF TIME AND/OR UPON DISABILITY, DEATH, OR TERMINATION OF EMPLOYMENT WILL RECEIVE PRORATED BENEFITS. THE BENEFITS ARE SUBJECT TO FORFEITURE IF EMPLOYMENT IS TERMINATED FOR CAUSE AS DEFINED IN THE AGREEMENTS. THE ESTIMATED LIABILITY UNDER THE AGREEMENTS IS BEING ACCRUED ON A STRAIGHT-LINE BASIS OVER THE SPECIFIED NUMBER OF YEARS OF SERVICE AS DEFINED IN THE AGREEMENTS. TWO PARTICIPANTS, RICHARD BRANDSMA AND DENISE REAGAN, HAVE MET THE REQUIREMENTS OF THEIR 457(F) PLAN AND ARE VESTED. THEREFORE, EACH YEAR AMOUNTS ACCRUED ARE PAID OUT BEFORE YEAR END. RICHARD BRANDSMA ACCRUED $720,000, AND DENISE REAGAN ACCRUED $270,000. CARL ROER ACCRUED $45,108 UNDER HIS 457(F) PLAN AND IS NOT PAID OUT AT YEAR END. EACH 457(F) PLAN EARNED AND INVESTED DURING 2015. RICHARD BRANDSMA's plan EARNED $16,571.09 and DENISE REAGAN's plan EARNED $11,450.96. THE CREDIT UNION ALSO SPONSORS AN UNFUNDED NONCONTRIBUTORY POST-RETIREMENT HEALTH BENEFIT PLAN FOR SPECIFIC MEMBERS OF THE EXECUTIVE MANAGEMENT TEAM. THE BENEFIT OBLIGATION FOR THE YEAR ENDED MARCH 31, 2016 AND 2015, WAS DETERMINED USING A DISCOUNTED CASH FLOW MODEL AND ACTUARIAL ASSUMPTIONS FOR LIFE EXPECTANCY, ANNUAL BENEFIT COSTS, AND THE EXPECTED TERM OF EMPLOYMENT. BENEFITS ACCRUED UNDER THE PLAN AMOUNTED TO $523,000 AS OF MARCH 31, 2016 AND 2015, AND ARE INCLUDED IN ACCRUED EXPENSES AND OTHER LIABILITIES ON THE CONSOLIDATED BALANCE SHEET. STEPHANIE NICKLAUS RECEIVED $61,350.12 OF SEVERANCE PAY IN 2015. Charlotte Shenkel Family Member 74472 See Part V 0 Sch. L, Part IV, Line 1 The organization paid W-2 compensation to Patricia Diaz, who is a family member of Charlotte Shenkel, a key employee of the organization (listed in Part VII). Form 990, Part VI, Section A, line 6 THE CREDIT UNION HAS 110,875 MEMBERS AS OF DECEMBER 31, 2015. 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, 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 11 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 XI, line 9: CUSO License fee 25. ADJUSTMENT DUE TO MERGER WITH PORT OF SEATTLE FEDERAL CREDIT UNION 362,311. SOUND FINANCIAL GROUP INC PO BOX 1595 TACOMA WA 98401 911263213 INSURANCE WA SOUND Credit Union C -25 87 1.00000 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0