2019-11-15T13:03:04-06:00 2018-12-31 910189318 MOSS ADAMS LLP 2707 COLBY AVENUE SUITE 801 EVERETT WA 98201 990 2018-01-01 910593941 SALAL CREDIT UNION SALA 2062989394 9706 4TH AVENUE NE NO 400 SEATTLE WA 98115 RUSSELL E ROSENDAL PRESIDENT/CEO 2608267603 2019-11-13 1 COLLEEN RAMIRES P01251320 4252597227 2019-11-13 12.129.4.211 2019-11-13 16:56:29 PS P DA39A3EE5E6B4B0D3255BFEF95601890AFD80709 C07EA3D2EFE7589B691C7C6F5A7C1991A329BAB3 2018 2020-03-31 21:24:44Z RUSSELL E ROSENDAL 9706 4TH AVENUE NE NO 400 SEATTLE WA 98115 35962093 0 X WWW.SALALCU.ORG X 1948 WA THE MISSION OF SALAL CREDIT UNION IS TO MAKE MONEY MANAGEMENT EASIER FOR MEMBERS. 9 9 201 13 290047 0 0 0 27143456 32532642 8581125 2176348 205433 217139 35930014 34926129 95539 218240 0 0 12836474 15056089 0 0 0 11978770 15399610 24910783 30673939 11019231 4252190 536665059 656178772 482401396 597790642 54263663 58388130 THE MISSION OF SALAL CREDIT UNION IS TO MAKE MONEY MANAGEMENT EASIER FOR MEMBERS. 0 0 SALAL CREDIT UNION IS A STATE CHARTERED NON-PROFIT COOPERATIVE CREDIT UNION OFFERING ITS MEMBERS A VARIETY OF FINANCIAL SERVICES DESIGNED TO PROMOTE SAVING AND PROVIDE CREDIT AT FAIR AND REASONABLE RATES OF INTEREST. SALAL CREDIT UNION CURRENTLY SERVES 40,320 MEMBERS; HOWEVER THERE ARE APPROXIMATELY 6,700,000 POTENTIAL MEMBERS IN THE GREATER PUGET SOUND COMMUNITY. SALAL CREDIT UNION OFFERS FINANCIAL LITERACY/EDUCATION PROGRAMS TO BOTH MEMBERS AND NON-MEMBERS. THESE EDUCATIONAL PROGRAMS ARE DESIGNED TO HELP INDIVIDUALS IN BUDGETING, SAVING FOR MAJOR PURCHASES, COLLEGE, AND RETIREMENT AND OVERALL FINANCIAL MANAGEMENT. SALAL CREDIT UNION ALSO SPONSORS FINANCIAL COUNSELING PROGRAMS TO HELP MEMBERS BETTER MANAGE THEIR CREDIT. FINALLY, SALAL CREDIT UNION IS A SPONSORING MEMBER OF THE SEATTLE AREA "CREDIT UNIVERSITY", A PROGRAM DESIGNED TO EDUCATE HIGH SCHOOL STUDENTS ABOUT MONEY MANAGEMENT. SALAL CREDIT UNION IS ACTIVE IN THE COMMUNITY BY SPONSORING COMMUNITY ORIENTED PROJECTS SUCH AS WASHINGTON BUSINESS WEEK, (A WEEK LONG TRAINING/DEVELOPMENT PROGRAM FOR 15-18 YEAR OLDS), SCHOLARSHIPS FOR HIGH SCHOOL STUDENTS LOOKING TO FURTHER THEIR STUDIES IN THE HEALTHCARE FIELD, CONTINUING EDUCATION SCHOLARSHIPS FOR NURSING STUDENTS, AND CONTRIBUTING TO THE FUNDRAISING EFFORTS OF SEVERAL WORTHWHILE ORGANIZATIONS SUCH AS HEALTHPOINT, INTERNATIONAL COMMUNITY HEALTH SERVICES (ICHS) AND CU FOR KIDS/CHILDREN'S MIRACLE NETWORK HOSPITALS. SALAL CREDIT UNION ALSO PROVIDES MATCHING CONTRIBUTIONS FOR EMPLOYEES AND DIRECTORS TO APPROVED 501(C)(3) ORGANIZATIONS UP TO $500 PER YEAR. 0 0 0 0 0 0 0 1 0 1 0 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 8404 0 1 201 1 1 1 0 0 0 0 0 0 0 X 9 9 0 0 0 0 1 1 1 1 1 0 0 0 1 1 1 1 1 1 1 0 CA X RANDY CLOES 2068267807 9706 4TH AVENUE NE NO 400 SEATTLE WA 98115 JOE LEPLA BOARD CHAIRMAN 1.00 X X 0 0 0 ANNETTE MURPHY BOARD VICE CHAIRMAN 1.00 X X 0 0 0 JAMIE LEE BOARD SECRETARY 1.00 X X 0 0 0 SHARON DOOLEY BOARD MEMBER (THROUGH 3/18) 1.00 X 0 0 0 CHRIS GRANT BOARD MEMBER 1.00 X 0 0 0 ALAN LEDERMAN BOARD MEMBER 1.00 X 0 0 0 BRIAN LUONG BOARD MEMBER 1.00 X 0 0 0 DICK WOO BOARD MEMBER 1.00 X 0 0 0 ALI SEALS BOARD MEMBER 1.00 X 0 0 0 BEN STEINER BOARD MEMBER 1.00 X 0 0 0 RUSSELL ROSENDAL PRESIDENT/CEO 40.00 X 464840 0 192181 RANDY CLOES SVP - CFO 40.00 X 253951 0 19390 BOB SCHWEIGERT SVP - CHIEF LENDING OFFICER 40.00 X 253503 0 19067 TROY-SKOTT POPE SVP - CHIEF RETAIL OFFICER 40.00 X 239366 0 15290 SHERYL KIRCHMEIER SVP - CHIEF MARKETING OFFICER 40.00 X 176823 0 7159 GEOFFREY SWARTS SVP - RISK OFFICER (THROUGH 2/18) 40.00 X 134464 0 13894 TARA SEEVER SVP - CHIEF HUMAN RESOURCES OFFICER 40.00 X 195266 0 16123 CARMELLA MURPHY HOUSTON VICE PRESIDENT - BUSINESS SERVICES 40.00 X 159939 0 14987 BRETT BALLMAN VICE PRESIDENT - INTERNAL AUDIT 40.00 X 158848 0 6150 SANDORA TIBURCIO SR. MORTGAGE LOAN ADVISOR 40.00 X 158074 0 12420 MICHAEL BISHOP VICE PRESIDENT - BRANCH EXPERIENCE 40.00 X 143761 0 14376 JOAN GERAGHTY VICE PRESIDENT - PROGRAM MANAGEMENT 40.00 X 149379 0 10867 CHRISTIAN GRUNERT VICE PRESIDENT - IT 40.00 X 144579 0 13393 LISA MADLAND VICE PRESIDENT - OPERATIONS 40.00 X 143501 0 14335 JAMES MILLSAP DEALER ACCOUNT MANAGER 40.00 X 138302 0 17578 2914596 0 387210 28 0 1 0 AVARA CONSTRUCTION INC 15341 NE 90TH ST S REDMOND WA 98052 TI CONSTRUCTION 814771 JACK HENRY & ASSOCIATES INC PO BOX 609 MONETT MO 65708 DATA PROCESSING 731696 GARDA CL NORTHWEST INC 3209 MOMENTUM PLACE CHICAGO IL 606895332 SECURITY 712303 NBBJ LP 223 YALE AVENUE NORTH SEATTLE WA 98109 INTERIOR DESIGN 361097 COOK SECURITY GROUP 8214 S 192ND ST SUITE 104 KENT WA 98032 SECURITY 284319 24 INTEREST ON MEMBER LOANS 522291 25010874 25010874 SERVICE CHARGES & FEE INCOME 522200 6253827 6178662 75165 OTHER NON-INTEREST INCOME 522299 993708 864311 129397 NET GAINS ON SALES OF LOANS 523000 274233 274233 32532642 2166422 2166422 1166961 963758 203203 203203 71549 131654 82132 72206 9926 9926 9926 SUBSIDIARY INVESTMENT INCOME 900099 13936 13936 13936 34926129 32328080 290047 2308002 218240 2511734 9601407 272264 1696974 973710 204981 132573 219549 99972 492686 917624 769206 1492347 314541 2302161 1415878 103222 PROVISION FOR LOAN LOSS 2427929 TRANSACTION EXPENSES 1415091 CREDIT UNION OPERATING 1084317 DATA PROCESSING 840713 1166820 30673939 3635369 6441686 11065288 41038081 419638498 501733329 777689 1158690 42358643 7614780 25100742 34743863 65297495 61088122 3176078 2496380 7973900 7478621 536665059 656178772 11468001 13775223 36026600 13201930 434906795 570813489 482401396 597790642 X 0 0 0 0 54263663 58388130 54263663 58388130 536665059 656178772 X 4252190 -126596 -1127 X 0 1 X 1 0 0 0 8008645 8008645 15505494 735496 14769998 9777715 1555231 8222484 9066789 5324053 3742736 34743863 MEMBER SHARES 570813489 570813489 X PART X, LINE 2: THE CREDIT UNION IS EXEMPT BY STATUTE FROM FEDERAL INCOME TAXES UNDER THE PROVISIONS OF SECTION 501 OF THE INTERNAL REVENUE CODE (IRC) OF 1954; HOWEVER, THE CREDIT UNION'S UNRELATED BUSINESS INCOME IS SUBJECT TO FEDERAL INCOME TAXES. THERE WERE NO SIGNIFICANT INCOME TAXES FOR THE YEARS ENDED DECEMBER 31, 2018 OR 2017. 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 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. THE CREDIT UNION HAD NO UNRECOGNIZED TAX POSITIONS AT DECEMBER 31, 2018 OR 2017. 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 AND UNRELATED BUSINESS INCOME TAX RETURNS WITH THE FEDERAL JURISDICTION. 1 WESTERN WASHINGTON NATIONAL ASSOCIATION OF HISPANIC NURSES PO BOX 23133 SEATTLE WA 98102 471550062 501(C)(3) 8000 NURSING SCHOLARSHIP FUND SWEDISH MEDICAL CENTER FOUNDATION 801 BROADWAY SEATTLE WA 98122 910983214 501(C)(3) 10000 TO SUPPORT SWEDISH RN RESIDENCY FUND FOUNDATION FOR PRIVATE ENTERPRISE EDUCATION PO BOX 1170 RENTON WA 98057 911048245 501(C)(3) 10000 SUMMER HEALTHCARE PROGRAM HEALTHPOINT 955 POWELL AVENUE SW RENTON WA 98057 910884412 501(C)(3) 10000 SPONSORSHIP OF FUNDRAISING EVENT WORLD ASSOCIATION FOR CHILDREN AND PARENTS PO BOX 88948 SEATTLE WA 98138 910962079 501(C)(3) 7000 SPONSORSHIP OF FUNDRAISING EVENT HIGHLINE MEDICAL CENTER FOUNDATION 16259 SYLVESTER ROAD SW 101 BURIEN WA 98166 911171170 501(C)(3) 10000 CLINICAL ADVANCEMENT PROGRAM FUNDING NWCUA 1800 INTERNATIONAL BLVD SUITE 350 SEATAC WA 98188 910460483 501(C)(6) 10000 SPONSORSHIP OF FUNDRAISING EVENT NATIONAL CREDIT UNION FOUNDATION 5710 MINERAL POINT ROAD MADISON WI 53705 391383650 501(C)(3) 6000 WILDFIRE RELIEF SALAL FOUNDATION 9706 4TH AVENUE NE SUITE 400 SEATTLE WA 98115 463476338 501(C)(3) 40000 GENERAL SUPPORT 8 1 PART I, LINE 2: THE ORGANIZATION OFFERS A SCHOLARSHIP OPPORTUNITY TO PARTICIPANTS IN THE WASHINGTON BUSINESS WEEK HEALTHCARE PATHWAY HELD ANNUALLY IN WESTERN WASHINGTON. APPLICANTS AND ESSAYS ARE REVIEWED BY SALAL EMPLOYEES AS PART OF THE SELECTION PROCESS. GRANTS ARE ALSO PROVIDED TO THE KING COUNTY NURSES ASSOCIATION TO SUPPORT NURSES WHO APPLY FOR COMMUNITY SUPPORT ACTIVITIES. THE NURSES WHO RECEIVE THE FUNDS ARE VETTED BY THE ASSOCIATION. THE ORGANIZATION OFFERS ONGOING SUPPORT TO VARIOUS ANNUAL FUNDRAISING CAMPAIGNS. THE ORGANIZATION HAS AN ONGOING RELATIONSHIP WITH EACH DONEE ORGANIZATION, ATTENDS THE FUNDRAISING EVENTS, AND THE BUSINESS DEVELOPMENT OFFICER MAINTAINS CONTACT WITH DONEE ORGANIZATION OFFICERS THROUGHOUT THE YEAR. X X 1 1 X X X X 0 1 0 RUSSELL ROSENDAL PRESIDENT/CEO 356731 0 77086 0 31023 0 161044 0 31137 0 657021 0 0 0 RANDY CLOES SVP - CFO 197769 0 54000 0 2182 0 9250 0 10140 0 273341 0 0 0 BOB SCHWEIGERT SVP - CHIEF LENDING OFFICER 197769 0 54000 0 1734 0 10089 0 8978 0 272570 0 0 0 TROY-SKOTT POPE SVP - CHIEF RETAIL OFFICER 184000 0 51200 0 4166 0 6656 0 8634 0 254656 0 0 0 SHERYL KIRCHMEIER SVP - CHIEF MARKETING OFFICER 131126 0 43600 0 2097 0 7159 0 0 0 183982 0 0 0 TARA SEEVER SVP - CHIEF HUMAN RESOURCES OFFICER 157319 0 34701 0 3246 0 7231 0 8892 0 211389 0 0 0 CARMELLA MURPHY HOUSTON VICE PRESIDENT - BUSINESS SERVICES 136269 0 22103 0 1567 0 6353 0 8634 0 174926 0 0 0 BRETT BALLMAN VICE PRESIDENT - INTERNAL AUDIT 138732 0 19488 0 628 0 2245 0 3905 0 164998 0 0 0 SANDORA TIBURCIO SR. MORTGAGE LOAN ADVISOR 0 0 154619 0 3455 0 3442 0 8978 0 170494 0 0 0 MICHAEL BISHOP VICE PRESIDENT - BRANCH EXPERIENCE 120295 0 22820 0 646 0 5742 0 8634 0 158137 0 0 0 JOAN GERAGHTY VICE PRESIDENT - PROGRAM MANAGEMENT 126693 0 20550 0 2136 0 2233 0 8634 0 160246 0 0 0 CHRISTIAN GRUNERT VICE PRESIDENT - IT 118548 0 25396 0 635 0 4759 0 8634 0 157972 0 0 0 LISA MADLAND VICE PRESIDENT - OPERATIONS 119423 0 22655 0 1423 0 5701 0 8634 0 157836 0 0 0 JAMES MILLSAP DEALER ACCOUNT MANAGER 50500 0 81467 0 6335 0 4812 0 12766 0 155880 0 0 0 PART I, LINE 1A THE ORGANIZATION PAYS FOR TRAVEL OF COMPANIONS OF THE BOARD OF DIRECTORS AND CEO. THE ORGANIZATION PAYS HEALTH CLUB DUES FOR THE CEO AND COO ATHLETIC CLUB MEMBERSHIP. THESE ITEMS ARE TREATED AS TAXABLE INCOME TO THE INDIVIDUALS AS APPROPRIATE. PART I, LINE 4B THE CREDIT UNION HAS A SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN FOR THE CHIEF EXECUTIVE OFFICER WHEREBY THE CREDIT UNION MAKES SCHEDULED MONTHLY CONTRIBUTIONS TO INVESTMENT ACCOUNTS AND THE CHIEF EXECUTIVE OFFICER WILL BE ENTITLED TO THE BALANCE OF THE INVESTMENT ACCOUNTS UPON HIS 65TH BIRTHDAY (DECEMBER 2023), SUBJECT TO CERTAIN CONDITIONS IN THE AGREEMENT. FOR THE YEAR ENDING DECEMBER 31, 2018 THE CREDIT UNION CONTRIBUTED $152,294 TO THIS PLAN. FORM 990, PART VI, SECTION A, LINE 6 THE CREDIT UNION'S MEMBERS HAVE RIGHTS TO ELECT THE 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. 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 B, LINE 11B FORM 990 IS DRAFTED BY AN EXTERNAL ACCOUNTING FIRM AND COMPANY CONTROLLER AND IS THEN REVIEWED AND APPROVED BY THE CFO. FORM 990, PART VI, SECTION B, LINE 12C EACH EMPLOYEE IS REQUIRED TO ANNUALLY SIGN AN ETHICS STATEMENT ACKNOWLEDGING THEY HAVE NOT ACCEPTED ITEMS OF VALUE GREATER THAN $20. FURTHERMORE, EXECUTIVE MANAGEMENT AND THE BOARD OF DIRECTORS SIGN AN ADDITIONAL STATEMENT ACKNOWLEDGING THEIR HIGHER STANDARDS. DEPARTMENT MANAGERS ARE RESPONSIBLE FOR MONITORING AND REPORTING ANY VIOLATIONS OF THE CONFLICT OF INTEREST POLICY. FORM 990, PART VI, SECTION B, LINE 15 THE ORGANIZATION'S HUMAN RESOURCES DEPARTMENT SUBSCRIBES TO TWO ANNUAL FINANCIAL INSTITUTIONS COMPENSATION SURVEYS. COMPENSATION FOR EXECUTIVE OFFICERS IS APPROVED BY THE CEO IN CONSULTATION WITH THE INDEPENDENT EXECUTIVE COMMITTEE OF THE BOARD OF DIRECTORS. COMPENSATION FOR THE CEO IS RECOMMENDED BY THE EXECUTIVE COMMITTEE AFTER REVIEWING MATERIAL PREPARED BY A CONSULTANT HIRED BY THE COMMITTEE. FINAL APPROVAL IS SUBJECT TO FULL BOARD APPROVAL. FORM 990, PART VI, SECTION C, LINE 19 FINANCIAL STATEMENTS ARE AVAILABLE AT THE ANNUAL MEETING. BALANCE SHEETS ARE POSTED AT EACH BRANCH AND UPDATED MONTHLY. MEMBERS ARE DIRECTED TO THE NCUA WEBSITE FOR ADDITIONAL FINANCIAL INFORMATION. FORM 990, PART XI, LINE 9: SUBSIDIARY INCOME BOOK/TAX DIFFERENCE -1,127. LENDING SOLUTIONS NORTHWEST LLC 9706 4TH AVENUE NE NO 400 SEATTLE WA 98115 461812634 AUTO LENDING WA 0 131270 SALAL CREDIT UNION SCU HOLDINGS LLC 9706 4TH AVENUE NE NO 400 SEATTLE WA 98115 814624261 HOLD REAL ESTATE WA 1167433 23553688 SALAL CREDIT UNION SALAL FOUNDATION 9706 4TH AVENUE NE NO 400 SEATTLE WA 98115 463476338 SUPPORTS PHILANTHROPIC ACTIVITIES WA 501(C)(3) LINE 10 SALAL CREDIT UNION 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0