2014-11-13T13:04:56-06:00 2013-12-31 910189318 MOSS ADAMS LLP 2707 COLBY AVE SUITE 801 EVERETT WA 982013510 990 2013-01-01 910557925 SOUND CREDIT UNION SOUN 2535977603 PO BOX 1595 TACOMA WA 98401 TROY GARRY CFO 2535977603 2014-11-13 1 KRISTINE HOEFLIN P00786821 4252597227 2013 2015-11-30 17:44:51Z RICHARD BRANDSMA PO BOX 1595 TACOMA WA 98401 61533107 0 X WWW.SOUNDCU.COM X 1940 WA A MEMBER OWNED COOPERATIVE PROVIDING FINANCIAL SERVICES, INCLUDING LOANS AND SHARE DEPOSITS TO ITS MEMBERS. 9 9 303 9 501773 -80250 0 0 54803388 50566671 3428544 3396068 1302429 1382257 59534361 55344996 10000 68000 3696589 0 15893857 17181321 0 0 0 21251629 20432634 40852075 37681955 18682286 17663041 1070060077 1085325460 975095418 974030887 94964659 111294573 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 170,713 SAVINGS, CHECKING AND MONEY MARKET DEPOSIT ACCOUNTS WITH COMBINED BALANCES OF $724,025,011. MEMBERS HOLD 5,189 IRA SAVINGS ACCOUNTS WITH COMBINED BALANCES OF $84,714,843. 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, 6,389 OF OUR MEMBERS HOLD CERTIFICATE ACCOUNTS WITH TOTAL BALANCES OF $136,922,691. ON THE ASSET SIDE, 51,655 OF OUR MEMBERS HOLD CONSUMER LOANS THAT INCLUDE VEHICLE, STUDENT, MORTGAGE AND VISA LOANS. CONSUMER LOANS THAT INCLUDE VEHICLE SECURED LOANS TOTAL $208,266,631. REAL ESTATE SECURED LOANS TOTAL $294,579,453. THE LOAN PORTFOLIO TOTALS $613,385,048. 0 0 0 0 0 0 0 0 0 1 0 0 0 1 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 1 1 0 0 1 16917 0 1 303 1 1 1 0 0 0 0 0 X 9 9 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 DAVE WASSON CHAIRMAN 1.00 X X 0 0 0 GARY EMMONS VICE CHAIR 1.00 X X 0 0 0 KEITH MOCK SECRETARY/TREASURER 1.00 X X 0 0 0 BRENDA HEINEMAN DIRECTOR 1.00 X 0 0 0 NORM PARSONS DIRECTOR 1.00 X 0 0 0 RICHARD BRENTIN DIRECTOR 1.00 X 0 0 0 DENNIS OKAMOTO DIRECTOR 1.00 X 0 0 0 CAROLYN IBLINGS DIRECTOR 1.00 X 0 0 0 SHELLEY COLEMAN DIRECTOR 1.00 X 0 0 0 RICK BRANDSMA PRESIDENT/CHIEF EXECUTIVE OFFICER 40.00 X 1594322 0 64917 RUSSELL GOWRYLOW VP/FORMER CHIEF FINANCIAL OFFICER 40.00 X 259970 0 43753 DENISE REAGAN EXECUTIVE VP 40.00 X 723118 0 36867 CARL ROER VP/CHIEF LENDING OFFICER 40.00 X 210376 0 30907 CHRIS SHENKEL VP/CHIEF BRANCH OFFICER 40.00 X 187043 0 36061 DONALD CLARK JR EXECUTIVE VP 40.00 X 328972 0 43856 LORRIE REMPHER VP/CHIEF INFORMATION OFFICER 40.00 X 179250 0 22075 ROBYN LACHANCE VP/CHIEF MARKETING OFFICER 40.00 X 129263 0 23442 KAY WILLIAMS-PRATER VP/BRANCHES 40.00 X 112827 0 24342 JASON MCDOUGAL HOST SYSTEMS MANAGER 40.00 X 118691 0 17428 KIMBERLY MAPES VP/HUMAN RESOURCES 40.00 X 113192 0 18390 3957024 0 362038 14 0 1 0 FRANK UNLIMITED LLC 5819 ELLIOTT AVE SUITE 204 SEATTLE WA 98121 MARKETING SERVICES 872130 HHJ INC 601 ST HELENS AVE TACOMA WA 98402 REMODELING 622593 KAYE-SMITH ENTERPRISES PO BOX 956 RENTON WA 98057 PRINTING/MAILING STATEMENTS 403347 JACK HENRY & ASSOCIATES INC PO BOX 609 MONETT MO 65708 COMPUTER 370365 SHARON L SANFORD CONSULTING LLC PO BOX 1323 FREELAND WA 98249 CONSULTING 250000 13 LOAN INTEREST INCOME 522291 32362644 32362644 FEES AND CHARGES 522100 9694486 9503351 191135 INTERCHANGE 522298 6657104 6657104 LOAN ORIGINATION INCOME 518210 647219 647219 FINANCIAL SERVICES 522100 341502 30864 310638 863716 863716 50566671 2943918 2943918 5041541 1598720 5059124 1128987 -17583 469733 452150 452150 NON-OPERATING INCOME 900099 1382257 1382257 1382257 55344996 51447155 501773 3396068 68000 3560161 7950271 2114701 2467542 1088646 108495 45286 119227 227382 1267550 2682502 641379 1802555 263820 44674 2943151 2262056 731242 BANK FEES 2806832 PROVISION FOR LOAN LOSS 1792030 LOAN SERVICING 1690476 MP AMORTIZATION OF CDI 924926 79051 37681955 95103952 97361653 11462794 3250000 9832830 8491278 589747143 607261880 2590215 2960996 52094048 15755954 35094381 36338094 299947657 304968611 12678704 3598357 7151357 6226431 6451044 14868160 1070060077 1085325460 9599025 5682683 643292 554924 21000000 13000000 943853101 954793280 975095418 974030887 X 0 0 0 0 94964659 111294573 94964659 111294573 1070060077 1085325460 17663041 -1333127 0 X 0 0 0 12240669 12240669 28913105 8322556 20590549 997827 219681 778146 9942447 7213717 2728730 36338094 MEMBER SHARE ACCOUNTS 945154240 CLEARING ACCOUNTS 2325750 CONTINGENT LIABILITIES 124282 DEFERRED COMP PLAN 2245196 MONEY ORDER & CASHIER'S CHECKS 4943812 954793280 1 MILGARD SCHOOL OF BUSINESS 1900 COMMERCE STREET TACOMA WA 984023100 916001537 115(1) 15000 BENEFACTOR SPONSORSHIP FOR BUSINESS LEADERSHIP AWARDS 4/30/13 UW FOUNDATION 407 GERBERDING HALL BOX 351210 SEATTLE WA 981951210 943079432 501(C)(3) 5000 EXCELLENCE FUND LEUKEMIALYMPHOMA SOCIETY 123 NW 36TH ST SUITE 100 SEATTLE WA 98107 135644916 501(C)(3) 5000 TEAM SPONSORSHIP MULTICARE HEALTH FOUNDATION PO BOX 5296 TACOMA WA 984150296 911514257 501(C)(3) 20000 FUND A NEED 4 0 PART I, LINE 2: NO MONITORING PROCESS WAS IN PLACE FOR THESE FUNDS AS THE AMOUNT IS INSIGNIFICANT TO THE CREDIT UNION. X X X X 0 1 0 RICK BRANDSMA PRESIDENT/CHIEF EXECUTIVE OFFICER 489742 0 300230 0 804350 0 51000 0 13917 0 1659239 0 0 0 RUSSELL GOWRYLOW VP/FORMER CHIEF FINANCIAL OFFICER 174683 0 46875 0 38412 0 22950 0 20803 0 303723 0 0 0 DENISE REAGAN EXECUTIVE VP 285894 0 158259 0 278965 0 22950 0 13917 0 759985 0 0 0 CARL ROER VP/CHIEF LENDING OFFICER 158618 0 42184 0 9574 0 18934 0 11973 0 241283 0 0 0 CHRIS SHENKEL VP/CHIEF BRANCH OFFICER 137583 0 38200 0 11260 0 17294 0 18767 0 223104 0 0 0 DONALD CLARK JR EXECUTIVE VP 230692 0 74960 0 23320 0 22950 0 20906 0 372828 0 0 0 LORRIE REMPHER VP/CHIEF INFORMATION OFFICER 141000 0 38250 0 0 0 6413 0 15662 0 201325 0 0 0 ROBYN LACHANCE VP/CHIEF MARKETING OFFICER 98625 0 28638 0 2000 0 12160 0 11282 0 152705 0 0 0 PART I, LINE 4B 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. THE CREDIT UNION HAS ACCRUED APPROXIMATELY $567,000 AS OF MARCH 31, 2014. THESE AMOUNTS ARE INCLUDED IN ACCRUED EXPENSES AND OTHER LIABILITIES ON THE CONSOLIDATED BALANCE SHEET. 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, 2014, 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 $523,070 AS OF MARCH 31, 2014, AND ARE INCLUDED IN ACCRUED EXPENSES AND OTHER LIABILITIES ON THE CONSOLIDATED BALANCE SHEET. FORM 990, PAGE 1, PART I, LINE 6 THE CREDIT UNION'S VOLUNTEERS CONSIST OF THE ORGANIZATION'S BOARD MEMBERS. FORM 990, PART VI, SECTION A, LINE 6 THE CREDIT UNION HAS 97,507 MEMBERS AS OF DECEMBER 31, 2013. 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 PRIOR TO THE RETURN'S FILING. THE BOARD COMPARES THE RETURN TO THE PRIOR YEAR RETURN FOR MATERIAL DIFFERENCES AND SEEKS EXPLANATIONS FOR THOSE DIFFERENCES. TOTALS ARE COMPARED FOR REVENUE, EXPENSES, AND TOTAL ASSETS. EACH STATEMENT IS REVIEWED FOR ACCURACY INCLUDING A REVIEW OF THE EXPLANATIONS DOCUMENTED IN THE RETURN. 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. 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. SOUND FINANCIAL GROUP INC PO BOX 1595 TACOMA WA 98401 911263213 INSURANCE WA SOUND CREDIT UNION C 137 1.00000 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0