2015-11-13T16:43:43-06:00 2014-12-31 910189318 MOSS ADAMS LLP 2707 COLBY AVENUE SUITE 801 EVERETT WA 98201 990 2014-01-01 910659059 HARBORSTONE CREDIT UNION HARB 2535842260 PO BOX 4207 TACOMA WA 984380207 LAURIE LENO CFO 2535842260 2015-11-10 1 KRISTINE HOEFLIN P00786821 4252597227 2014 2016-04-25 22:37:26Z PHIL JONES PO BOX 4207 TACOMA WA 984380207 161520921 0 X WWW.HARBORSTONE.COM X 1955 WA THE CREDIT UNIONS 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. 8 8 275 12 602748 -156782 0 0 39794565 41646864 6486621 6232356 -329257 -268342 45951929 47610878 67557 47792 0 0 18525982 17975288 0 0 0 22557801 23352905 41151340 41375985 4800589 6234893 1066998328 1102724712 953819705 977050405 113178623 125674307 HARBORSTONE CREDIT UNION HELPS TO MAKE MAEMBERS' FINANCIAL DREAMS COME TRUE. 0 0 PROVIDING CONSUMER AND MORTGAGE LOANS FOR 24,097 MEMBERS TOTALING $541,235,244. PROVIDING BUSINESS LOANS TO 322 MEMBERS TOTALING $133,977,638. MAINTAINING DEPOSITS ON 139,891 MEMBER AND BUSINESS ACCOUNTS TOTALING $955,434,787. 0 0 0 0 0 0 0 1 0 1 1 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 1 26079 0 1 275 1 1 1 0 0 0 0 0 X 8 8 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 1 1 X HARBORSTONE CREDIT UNION 2535842260 9611 GRAVELLY LAKE DRIVE SW LAKEWOOD WA 984992761 BONNIE KERN CHAIRPERSON/BOARD 2.00 X X 0 0 377 JIM BUCK VICE CHAIR 2.00 X X 0 0 377 ANN ANDERSON SECRETARY/BOARD 2.00 X X 0 0 377 RICHARD EVANS BOARD MEMBER 2.00 X 0 0 377 SUZANNE COLPITTS BOARD MEMBER 2.00 X 0 0 377 WALT FROST BOARD MEMBER 2.00 X 0 0 377 LINDA NELSON BOARD MEMBER 2.00 X 0 0 377 MICHAEL GEDEON BOARD MEMBER 2.00 X 0 0 377 PHIL JONES PRESIDENT/CEO 40.00 X 411393 0 47485 LAURIE LENO CHIEF FINANCIAL OFFICER 40.00 0.25 X 197320 0 32748 JOHN RENFORTH VP-STRATEGIC OPERATIONS 40.00 2.00 X 200097 0 35099 ROGER JOHANSEN CHIEF LOAN OFFICER (JAN-MAY) 40.00 X 363670 0 20231 MIKE DECIUS CHIEF INFORMATION OFFICER 40.00 X 163586 0 29134 STEVE CROSBY CHIEF OPERATIONS OFFICER 40.00 X 170896 0 32431 TOM GRAVES EXECUTIVE VICE PRESIDENT 40.00 X 322729 0 23026 DOUG RICHARDSON VP-TRAINING/ADMINISTRATION 40.00 X 457402 0 30845 RALPH KOWAL FINANCIAL SERVICES REP. 40.00 X 125938 0 23579 FOREST HAYES VP-CHIEF RISK OFFICER 40.00 X 158211 0 32737 ROXANNE LAW VP RETAIL SALES AND SERVICE 40.00 X 125703 0 34512 JEFF IVEY VP RETAIL SALES AND SERVICE 40.00 X 116269 0 19130 2813214 0 363973 13 0 1 0 DIGITAL INSIGHT PO BOX 515306 LOS ANGELES CA 90051 ONLINE BANKING PROVIDER 1989511 JOHN KORSMO CONSTRUCTION PO BOX 1377 TACOMA WA 98401 BUILDING CONSTRUCTION 1645912 FIDELITY INFORMATION SYSTEMS (FIS) PO BOX 4535 CAROL STREAM IL 60197 CORE PROCESSOR, CHECK PROCESSING 614658 COOK SECURITY 5841 SE INTERNATIONAL WAY MILWAUKIE OR 97222 ATM SECURITY/MAINTENANCE 604261 FISERV INC PO BOX 99924 GRAPEVINE TX 760999724 ATM/NETWORK PROCESSOR 551340 20 INTEREST FROM LOANS 522100 29266039 29266039 OTHER NON-INTEREST INCOME 522100 6279900 5889088 390812 SERVICE CHARGES & FEE INCOME 522100 6100925 5903160 197765 41646864 5291686 5291686 194208 435204 -240996 -240996 -240996 112521576 1893933 112010607 1464232 510969 429701 940670 940670 INCOME FROM JOINT VENTURES 522100 -27346 -41517 14171 -27346 47610878 41016770 602748 5991360 X 47792 2228663 10778318 935636 3020621 1012050 200044 34723 68000 4213992 1097657 1745671 1190225 1667210 200365 4512734 2504709 277592 PROVISIONS FOR LOAN LOS 3121704 LOAN SERVICES 1415770 OPERATION EXPENSES 399314 PROFESSIONAL DUES 191868 511327 41375985 8966694 8695167 32291243 62909554 4718808 606522122 676019404 1314416 1274787 56081224 22455624 33307521 33625600 366413212 298101809 5582198 4863512 12600922 12516071 1066998328 1102724712 8556380 8475428 -142 0 13037414 12424093 932226053 956150884 953819705 977050405 X 0 0 0 0 113178623 125674307 113178623 125674307 1066998328 1102724712 X 6234893 5776962 483829 X 0 1 X 1 0 0 1 X 8997746 8997746 26555188 7582576 18972612 4434655 1018759 3415896 15602393 13376714 2225679 491242 477575 13667 33625600 5833293 F AVAILABLE FOR SALE SECURITIES 276771012 F 457(F) DEFERRED COMPENSATION PLAN 15497504 F 298101809 MEMBER'S SHARES 955378003 DEFERRED COMPENSATION 772881 956150884 X PART IV, LINE 2B: THE ESCROW ACCOUNTS HOLD AMOUNTS COLLECTED WITH THE MEMBERS' MORTGAGE PAYMENTS THAT ARE TO BE USED TO PAY THOSE MEMBERS' HOMEOWNERS' INSURANCE PREMIUMS AND PROPERTY TAXES WHEN DUE. PART X, LINE 2: 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 IN 2009. THE CREDIT UNION HAD NO UNRECOGNIZED TAX POSITIONS AT DECEMBER 31, 2014. 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 RETURNS WITH THE FEDERAL JURISDICTION AND A SALES AND A USE TAX RETURN WITH THE STATE OF WASHINGTON. THE CREDIT UNION IS NO LONGER SUBJECT TO UNITED STATES FEDERAL INCOME TAX EXAMINATION BY TAX AUTHORITIES FOR THE YEARS ENDED ON OR BEFORE DECEMBER 31, 2011. 1 PIERCE MILITARY AND BUSINESS ALLIANCE C/O HARBORSTONE CREDIT UNION PO BOX 4207 TACOMA WA 98438 383675245 501(C)(3) 15000 GENERAL SUPPORT FOR MORALE, WELFARE, AND READINESS AND RETENTION EFFORTS OF THE MILITARY CLOVER PARK TECHNICAL COLLEGE FOUNDATION 4500 STEILACOOM BLVD SW LAKEWOOD WA 98499 911565219 501(C)(3) 5200 TRANSFORMING LIVES CAMPAIGN KING COUNTY GIVING PROGRAM 401 FIFTH AVENUE SECOND FLOOR SEATTLE WA 98104 916001327 501(C)(3) 7500 NON-PROFIT EXPOS AGREEMENT DFMWR PO BOX 339500 MS 20 JBLM WA 98433 751744396 GOVERNMENT 12275 ANNUAL SPONSORSHIP AGREEMENT NORTHWEST CREDIT UNION FOUNDATION 8205 SW CREEKSIDE PL BEAVERTON OR 97008 911649328 501(C)(3) 7817 SUPPORT OF NORTHWEST CREDIT UNIONS 5 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. ORGANIZATIONS REQUESTING OR RECEIVING GRANTS OVER $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, COPIES OF CURRENT AND PAST TWO YEARS' AUDITED FINANCIALS, A COMPLETE LIST OF BOARD MEMBERS AND MANAGEMENT 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 X 0 1 0 PHIL JONES PRESIDENT/CEO 411393 0 0 0 0 0 31013 0 16472 0 458878 0 0 0 LAURIE LENO CHIEF FINANCIAL OFFICER 192320 0 5000 0 0 0 23770 0 8978 0 230068 0 0 0 JOHN RENFORTH VP-STRATEGIC OPERATIONS 195097 0 5000 0 0 0 23140 0 11959 0 235196 0 0 0 ROGER JOHANSEN CHIEF LOAN OFFICER (JAN-MAY) 178289 0 5000 0 180381 0 13210 0 7021 0 383901 0 180381 0 MIKE DECIUS CHIEF INFORMATION OFFICER 158586 0 5000 0 0 0 19703 0 9431 0 192720 0 0 0 STEVE CROSBY CHIEF OPERATIONS OFFICER 165896 0 5000 0 0 0 19573 0 12858 0 203327 0 0 0 TOM GRAVES EXECUTIVE VICE PRESIDENT 267729 0 55000 0 0 0 7800 0 15226 0 345755 0 0 0 DOUG RICHARDSON VP-TRAINING/ADMINISTRATION 143806 0 13869 0 299727 0 18225 0 12620 0 488247 0 299727 0 FOREST HAYES VP-CHIEF RISK OFFICER 145165 0 13046 0 0 0 18706 0 14031 0 190948 0 0 0 ROXANNE LAW VP RETAIL SALES AND SERVICE 115086 0 10617 0 0 0 15135 0 19377 0 160215 0 0 0 PART I, LINE 1A TRAVEL FOR COMPANIONS: SPOUSES/COMPANIONS ARE ALLOWED TO TRAVEL WITH EXECUTIVE MANAGEMENT AND BOARD MEMBERS AND IS LIMITED TO $600. DISCRETIONARY SPENDING ACCOUNT: THE DISCRETIONARY SPENDING ACCOUNT IS ONLY AVAILABLE TO THE CEO AND IS FOR AN AMOUNT UP TO $150/MONTH TO BE USED FOR REIMBURSEMENT OF OUT OF POCKET EXPENSES PRIMARILY RELATED TO CHARITABLE DONATIONS. PART I, LINE 4B 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 $2,519,000 AND $2,263,000, RESPECTIVELY UNDER THESE AGREEMENTS AT DECEMBER 31, 2014 AND 2013, INCLUDED IN ACCRUED EXPENSES AND OTHER LIABILITIES. BENEFITS TO MEMBERS OF THE EXECUTIVE MANAGEMENT TEAM MAY BE FUNDED BY LIFE INSURANCE POLICIES OWNED BY THE CREDIT UNION, WHICH HAVE CASH VALUES OF $15,497,504 AND 15,470,177 AT DECEMBER 31, 2014 AND 2013, RESPECTIVELY. 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 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 11 BOTH THE VP OF ACCOUNTING SERVICES AND CFO REVIEW THE FORM 990 PRIOR TO FILING. A COPY OF FORM 990 WILL ALSO BE PROVIDED TO THE BOARD OF DIRECTORS PRIOR TO FILING. FORM 990, PART VI, SECTION B, LINE 12C ON AN ANNUAL BASIS, ALL EMPLOYEES ARE REQUIRED TO REVIEW THE CONFLICT OF INTEREST POLICY. WE OBTAIN SIGNATURES FROM EACH EMPLOYEE, VERIFYING THAT THEY ATTEST TO HAVING READ THE POLICY. ADDITIONALLY, EACH NEW EMPLOYEE HIRED BY THE CREDIT UNION REVIEW THE CONFLICT OF INTEREST POLICY ON THEIR FIRST DAY OF EMPLOYMENT. 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 OUR OFFICERS AND KEY EMPLOYEES. GENERALLY, FINAL COMPENSATION DECISIONS ARE MADE BY THE SENIOR VICE PRESIDENT/CHIEF OPERATIONS OFFICER. COMPENSATION DECISIONS FOR THE PRESIDENT/CEO ARE MADE BY THE BOARD OF DIRECTORS. 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 IX, LINE 11G ATM/POS NETWORK 883,577. PROCESSING FEES 2,938,517. ATM PROCESSING 125,428. OTHER 214,965. CONSULTING 51,505. FORM 990, PART XI, LINE 9: CHANGE IN CASH SURRENDER VALUE OF LIFE INSURANCE 483,829. CU SERVICES GROUP LLC 9611 GRAVELLY LAKE DR SW LAKEWOOD WA 98499 262064794 BUSINESS LENDING WA 54680 4606839 HARBORSTONE CREDIT UNION NORTHWEST BUSINESS & COMMUNITY DEVELOPMENT CENTER INC PO BOX 4207 TACOMA WA 98438 463529131 BUSINESS AND COMMUNITY DEVELOPMENT WA 501(C)(3) LINE 7 HARBORSTONE CREDIT UNION 1 0 0 0 0 1 0 0 0 0 0 0 1 1 1 1 1 1 0 0