2021-05-17T12:48:04-07:00 2020-12-31 990 2020-01-01 916035907 CREDIT UNIONS IN THE STATE OF WASHI NGTON CRED 8008480018 PO BOX 96730 BELLEVUE WA 980097730 Michael Elfstrom Chief Financial Officer 8008480018 2021-05-17 1 11 0 AAL2 X 2020 2022-09-23 18:48:47Z Mark Nelson 2115 152nd Ave NE Redmond WA 980097730 38264414 0 1269 X www.qualstarcu.com X 1952 WA WE ARE A CREDIT UNION PROVIDING FINANCIAL PRODUCTS & SERVICES TO MEMBERS 11 11 172 15 216027 0 0 0 32315588 34284010 6126388 3965054 60018 -7296 38501994 38241768 0 0 0 0 11670293 13259294 0 0 0 17195081 16765955 28865374 30025249 9636620 8216519 630180342 733482561 551233460 646834042 78946882 86648519 PROVIDE FINANCIAL PRODUCTS & SERVICES 0 0 Interest expense in the amount of $3,243,077 was paid to members for money on deposit at the credit union. Deposit accounts earning interest included checking, savings, money market, IRA, and Certificate of Deposit accounts. The credit union has about 88,700 deposit accounts that can earn interest. The credit union expensed $4,753,529 in provision for loan loss costs for the year. The expense was to fund the accrual for doubtful loans on the balance sheet. The credit union has about 33,200 open loan accounts. The credit union expensed $695,595 during the year for loan servicing costs. These costs were paid to originate and service loans to members. The credit union has about 33,200 open loan accounts. 0 0 0 0 0 0 0 0 0 0 0 1 0 1 1 0 0 1 0 0 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 0 1 X 16278 0 1 172 1 1 0 0 0 0 0 0 0 0 X 11 11 0 0 0 0 1 1 0 1 1 0 1 1 0 1 1 1 1 1 1 0 0 X QUALSTAR CREDIT UNION 8008480018 2115 152nd Ave NE Redmond WA 98052 MARK R NELSON President 40 0 X 407877 0 32680 MICHAEL G ELFSTROM Exec VP 40 0 X 313465 0 32680 ROBERT ARBUCKLE VP of Alternative Lending 40 0 X 176404 0 29042 KARA TAYLOR VP OF I.S. 40 0 X 163998 0 13803 WILLIAM HANAFORD Investment Advisor 40 0 X 147132 0 12903 BRETT TREAT IS Manager 40 0 X 136715 0 12875 LACINDA BLANCHETTE VP Member Relations 40 0 X 133583 0 12439 TRACY OSTER Board Member 3 0 X 0 0 0 LEANNE CALIFANO Board Secretary/Treasurer 3 0 X X 0 0 0 JOEL SCHMIDT Board Member 3 0 X 0 0 0 GENE VIA Board Member 3 0 X 0 0 0 KIM BROWN Board Chairman 4 0 X X 0 0 0 MITCHELL JOHNSON Board Member 3 0 X 0 0 0 NOEL MCMURTRAY Board Member 3 0 X 0 0 0 LAWRENCE BINDNER JR Board Member 3 0 X 0 0 0 KIM ZIER Vice Chair 3 0 X X 0 0 0 RUSS DEWOLFE Board Member 3 0 X 0 0 0 GARY POWERS Board Member 3 0 X 0 0 0 1479174 0 146422 19 0 1 0 Jack Henry And Associates 663 W Hwy 60 Monett MO 65708 Core banking system/card & ATM processing 1186138 VISA PO Box 8999 San Francisco CA 94128 Credit card processor 574469 CO-OP Financial Services 9692 Haven Ave Rancho Cucamonga CA 91730 SHARED BRANCHING AND ATM NETWORK PROVIDER 548258 Kaye Smith Business Graphics 4101 Oakdale Ave SW Renton WA 98057 Printing and statement production/mailing 493450 Alkami Technology PO Box 122223 Dallas TX 75312 Bill payer 360112 16 0 Interest on Loans 522130 22780614 22780614 0 0 Fee Income 522130 3407309 3398297 9012 0 Other Operating Income 522130 8096087 7889072 207015 0 0 0 0 0 34284010 3965055 3965055 0 0 0 0 0 0 0 0 0 0 15349 0 22645 0 -7296 0 -7296 -7296 0 0 0 0 0 1 0 -1 -1 -1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 38241768 38025741 216027 0 X 0 0 0 0 721342 0 9010680 1368362 1458490 700420 0 91709 96400 0 0 0 3082497 212105 1136311 531331 0 992190 0 0 111833 3243077 0 654957 332117 Loan Servicing 695595 Provision for Loan Losses 4813633 Miscellaneous Expenses 772200 0 30025249 0 0 0 8092175 9243683 32545252 52545333 0 0 3877650 21215813 2181722 2146212 0 0 392431949 355498412 0 0 726484 820157 15682558 9539512 6589117 6143046 42002310 157212428 132980990 120424785 0 0 432592 0 8320101 8232692 630180342 733482561 17962407 16093210 0 0 0 0 0 467643 416597 0 0 0 0 532803410 630324235 551233460 646834042 X 0 0 0 0 78946882 86648519 78946882 86648519 630180342 733482561 8216519 165478 0 0 -680360 0 X 0 0 0 0 1 X 1406796 0 1406796 6270093 0 2396460 3873633 1833195 0 1727005 106190 6172474 0 5416047 756427 0 0 0 0 6143046 0 0 Certificates at Banks and Credit Unions 119767050 C COOP 310836 C PSCU 229218 C FSCC 92681 C CUDL 25000 C 120424785 0 Member Share Deposits 630324235 630324235 Schedule D, Part IV, Line 2b The escrow account is for property taxes and insurance payments collected from members who originated their mortgage loans at Qualstar Credit Union and the loans were sold to FNMA. X X X X 0 0 0 MARK R NELSON President 318901 0 77694 0 11282 0 10600 0 22080 0 440557 0 0 MICHAEL G ELFSTROM Exec VP 253294 0 59619 0 552 0 10600 0 22080 0 346145 0 0 ROBERT ARBUCKLE VP of Alternative Lending 151262 0 23558 0 1584 0 6962 0 22080 0 205446 0 0 KARA TAYLOR VP OF I.S. 146808 0 16638 0 552 0 6542 0 7261 0 177801 0 0 WILLIAM HANAFORD Investment Advisor 145820 0 1000 0 312 0 5949 0 6954 0 160035 0 0 Mark Nelson Current Officer Secured Split Dollar Agreement X 1000000 1211714 0 1 1 Michael Elfstrom Current Officer Secured Split Dollar Agreement X 950000 945646 0 1 1 2157360 Schedule L, Part II Copy of the QUALSTAR CREDIT UNION SECURED SPLIT-DOLLAR AGREEMENT is available upon request. QUALSTAR CREDIT UNION and MARK NELSON are parties to the Secured Split-Dollar Agreement dated March 1, 2012. The Agreement is for $1,000,000. This Amendment No 1 is effective October 1, 2012. 1. The following is added to the end of Section 7.2.3. If forfeiture of the Executive's borrowing rights under Section 4.2 is for voluntary separation from service before the 10th anniversary of the Accumulation Policy's issue date, this Agreement will terminate as of the first day after the separation from service that the sum of the Funding Account balances and the cash surrender value of the Policies equals or exceeds the Outstanding Balance and the Credit Union recovers the Outstanding Balance. Notwithstanding Sections 3.1.4 and 5.2, if the Executive dies after such separation from service but before the Credit Union received the Outstanding Balance, any remaining Funding Account balances and all death proceeds of the Policies belong, and will be paid, to the Credit Union. 2. Except as modified above, the Agreement remains in full force and effect. In addition a copy of the QUALSTAR CREDIT UNION SECURED SPLIT-DOLLAR AGREEMENT is available upon request. QUALSTAR CREDIT UNION and MICHAEL ELFSTROM are parties to the Secured Split-Dollar Agreement date April 27, 2016 - the Agreement is for $950,000 and is similar to the Agreement above. Form 990, Part V, Line 3b Form 990T has not yet been filed. An extension has been requested. We are currently researching electronic filing solutions for the 990T. Form 990, Part VI, Section A, Line 6 Each person seeking membership must be qualified for membership and must submit an application to the credit union. Each application shall be acted upon by the Board, or if the Board so chooses, membership representatives may be trained and authorized to approve applications. The applicant shall become a member when such application has been approved by the Board, or if applicable, the membership representatives and upon his/her subscription to at least one credit union product, or deposit, or loan account. Form 990, Part VI, Section A, Line 7a A Nominating Committee, made up of not fewer than three members, nominates at least one member for each Board vacancy. The Board secretary shall notify in writing all members eligible to vote at least 75 days prior to the annual meeting and that nominations for vacancy may also be made by petition signed by one percent of the members with a minimum of 20 and a maximum of 500. The written notice shall indicate that the election will not be conducted by ballot and there will be no nominations from the floor when there is only one nominee for each position to be filled. All elections shall be determined by plurality of vote and shall be by ballot except where is only one nominee for each position to be filled. Form 990, Part VI, Section B, Line 11b The form 990 was prepared by the Senior Accountant and the Director of Finance. The form was reviewed by the CFO and Executive Vice President prior to submission to the IRS. Both the Director of Finance and the Executive Vice President are Certified Public Accountants. Form 990, Part VI, Section B, Line 12c Disclosure is required of all potential conflicts of interest, either business or personal relationships with employees, members, vendors, business associates, or competitors of the credit union. The credit union will also retain on file all written reports of any disclosures made regarding the Credit Union Code of Conduct. Employees, officers, and Directors of the credit union are required to acknowledge that they have read and understood the Code of Conduct and any subsequent modifications, and that they agree to comply with this policy. Employees and officers are required to disclose this information annually. Form 990, Part VI, Section B, Line 15 The organization uses a Compensation Committee to establish the CEO compensation. The committee also uses an independent compensation consultant, written employment contract, and compensation survey or study. Form 990, Part VI, Section C, Line 19 This information is available upon request. Form 990, Part IX, Line 11g Other professional and outside services to support the credit union such as courier and mailing services, card network charges, and shared branching network charges.