2019-11-07T17:43:30-07:00 2018-12-31 990 2018-01-01 910565128 SPOKANE TEACHERS CREDIT UNION SPOK 5093261954 1620 N Signal Drive Liberty Lake WA 99019 Brian Scott VP of Accounting and Finance 5093261954 2019-11-07 8.20.119.12 2018 2020-03-31 21:24:44Z Brian Scott 1620 N Signal Dr Liberty Lake WA 99019 392262808 0 1269 X www.stcu.org X Credit Union 1934 WA STCU is committed to maximizing the value of every financial relationship through cost-effective financial services consistent with cooperative principles, applicable legislation, and prudent management. STCU serves 187,720 members as of 12/31/18. 9 9 799 10 220802 163543 86365 87510 123687568 141692433 3606608 4947622 -175610 -221198 127204931 146506367 0 1055146 11958401 14406974 46350643 51936948 0 0 0 49436212 47186790 107745256 114585858 19459675 31920509 2739031927 2986315665 2453483091 2669350185 285548836 316965480 STCU is committed to maximizing the value of every financial relationship through cost-effective financial services consistent with cooperative principles, applicable legislation, and prudent management. STCU serves 187,720 members as of 12/31/18. 0 0 STCU has outstanding loans of $2,600,285,364 at December 31, 2018, representing 128,850 individual loans. STCU offers credit cards; auto, RV, and boat loans; 1st mortgage real estate loans, other real estate loans and lines of credit; and commercial loans. Revenues from loan activities include interest income earned, as well as loan origination and servicing fees. STCU provides share and deposit products, including checking, savings, money market, certificates, and IRA/Keogh accounts. At December 31, 2018, STCU had total share and deposit balances of $2,374,669,228 representing 298,964 individual accounts. STCU paid members dividends on their share and deposit accounts $14,406,675 in 2018. STCU earns various fees on transactions, balances or other financial products as outlined in the membership agreement or published fee schedules. 0 0 0 0 0 0 1 0 0 0 0 1 0 1 0 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 193829 0 1 799 1 1 1 0 0 0 0 0 0 0 X 9 9 0 0 0 0 1 1 0 1 1 0 1 1 1 1 1 1 1 1 1 1 0 X Spokane Teachers Credit Union 5093261954 1620 N Signal Drive Liberty Lake WA 99019 Dolores Humiston Chairwoman 2 0 X 11515 0 0 Catherine Brazil Director 2 0 X 9500 0 0 Kathryn Dobson Chairwoman 2 0 X 4750 0 0 Kevin Spohr Supervisory Com 2 0 X 5323 0 0 Dennis Michael Rennaker Director 2 0 X 9500 0 0 Terri Alvarado Director 2 0 X 9500 0 0 Wally Stanley Director 2 0 X 9500 0 0 Robert Jay Walter Director 2 0 X 2375 0 0 Nick Leute Director 2 0 X 9500 0 0 Steven Jones Director 2 0 X 7125 0 0 Robert Loomis Director 2 0 X 9500 0 0 Chris Morlan Vice Chair 2 0 X 9500 0 0 Janet McCann Supervisory Com 2 0 X 4750 0 0 Tammy Fleiger Vice President 40 0 X 297453 0 56085 Evelyn Hopkins CAO 40 0 X 280212 0 117031 Lindsey Myhre CFO 40 0 X 314823 0 91564 David Flood CLO 40 0 X 269696 0 83538 Barbara Richey Vice President 40 0 X 279140 0 45545 Laura Wood Vice President 40 0 X 187496 0 49548 Thomas Johnson President and CEO 40 0 X X 93821 0 378207 Belinda Caillouet COO/CIO 40 0 X X 510788 0 94574 Patricia Kelly Vice President 40 0 X 224160 0 47465 Sean Watt Vice President 40 0 X X 220436 0 31028 Ezra Eckhardt President and CEO 40 0 X 596567 0 105252 Darren McNannay Director Real Estate 40 0 X 171760 0 36149 Scott Rabe Director Software Dev 40 0 X 157889 0 50061 Richard Lentz Director Consumer Lending 40 0 X 155042 0 46697 Christie Moore Commercial Banking Manager 40 0 X 163963 0 43738 Brendan Wiechert Director Commercial Lending 40 0 X 163944 0 26298 4189528 0 1302780 59 1 1 0 Smart Source Critial Communications LLC PO Box 932177 Atlanta GA 31193 Printing and Mailing 1714768 Fortress Business Systems 2100 Northwest Blvd STE 350 Coeur dAlene ID 83814 Printer and Copier Services 245842 Argus Janitorial PO Box 13202 Spokane WA 99213 Janitorial 145514 Corner Booth Media 114 W Pacific Ave STE 200 Spokane WA 99201 Media and advertising Services 129370 Mustang Signs LLC 10379 W Clearwater Ave Kennewick WA 99336 Sign Company 102914 6 0 87510 0 0 0 0 0 87510 Loan Interest Income 522100 109558034 109558034 0 0 Fees and Service Charges 522100 29408847 29188045 220802 0 Loan Svc and Origination 522100 2725552 2725552 0 0 0 0 0 0 141692433 4231615 0 0 4231615 0 0 0 0 0 0 0 0 273379 0 494577 0 -221198 0 -221198 0 0 -221198 0 245977871 0 245261864 0 716007 716007 716007 0 0 0 0 146506367 142187638 220802 4010417 1055146 0 0 14406974 4375003 0 32776947 2904372 8831085 3049541 0 79702 222992 0 0 0 2413655 3061479 1646062 3084930 0 3213830 0 0 1082123 3974293 0 5124227 0 Processing Expense 13393976 Provision for Loan Loss 7209155 Loan Servicing Expense 1916915 Postage and Shipping 998626 -235175 114585858 0 0 0 1004894 22677699 129663045 118178187 0 0 0 463791 0 0 0 0 2369740655 2574746503 0 0 2637255 12945711 113022645 45325740 59480803 67696905 118108040 132953711 12871300 16002000 0 0 0 458357 45525935 40192801 2739031927 2986315665 25559246 23413752 0 0 0 0 0 0 3786669 4008607 0 246242127 267258598 0 0 2177895049 2374669228 2453483091 2669350185 X 0 0 0 0 285548836 316965480 285548836 316965480 2739031927 2986315665 X 31920509 -72436 0 0 0 -431429 X 1 X 1 X 1 0 36373 0 36373 0 36373 1 Credit Union Legislative Action Fund 33301 9th Ave STE 200 Federal Way WA 98003 800043051 36373 0 Schedule C, Part I-A, Line 1 STCU has a political action policy and may provide financial support on a non-partisan basis to individuals who support the credit union movement in Washington State legislative offices, Washington State elected executive positions, or Washington State Supreme Court Justices. 0 0 0 15760103 15760103 0 51793287 15889916 35903371 0 2350003 1149801 1200202 0 41504803 27539653 13965150 0 1614449 746370 868079 67696905 0 Deposit Accounts - Money Market 779479019 Deposit Accounts - Share Certificates 570762644 Deposit Accounts- Checking 474686000 Deposit Accounts- Savings 428033020 Deposit Accounts- IRA Shares 61098873 Deposit Accounts- IRA Certificates 60609672 2374669228 X 146084226 72436 0 0 0 72436 146011790 0 494577 494577 146506367 114091281 0 0 0 0 0 114091281 0 494577 494577 114585858 Schedule D, Part X, Line 2 FIN 48 From audited Financial Statements, Footnote Disclosure on Income Taxes: The Credit Union is exempt under IRC 501(c) 14, from federal and state income taxes. Certain products and services provided by select state chartered credit unions have been determined by the Internal Revenue Service (IRS), in technical advice memorandums (TAMs) released in 2007, to be unrelated to the specific entity's exempt purpose. As presented in the TAMs the net taxable income from these have been successful in having courts declare in 2009 and 2010 that revenue from insurance and investment products sold to members, helping them protect their financial welbeing, qualifies as exempt purpose income, contrary to the IRS position in the TAMs. The Credit Union has filed tax returns for years 2006 through 2017 for activities they have deemed taxable. The Credit Union adopted the income tax standard for uncertain tax positions on January 1, 2009. As a result of implementation, the Credit Union evaluated its tax position and determined no uncertain tax positions exists as of December 31, 2018. The Credit Union's 2010 through 2018 tax years are open from examination by federal and state taxing authorities. Schedule D, Part XI, Line 4b Rental expense $494,577 Schedule D, Part XII, Line 4b Rental expense $494,577 X 1 1 X X X X X 1 1 0 Belinda Caillouet COO/CIO 472799 0 35993 0 1996 0 85505 0 9069 0 605362 0 0 15353 Tammy Fleiger Vice President 193310 0 100712 0 3431 0 41664 0 14421 0 353538 0 0 11182 Evelyn Hopkins CAO 245111 0 31763 0 3338 0 102610 0 14421 0 397243 0 0 13818 Laura Wood Vice President 162903 0 21544 0 3049 0 35127 0 14421 0 237044 0 0 8752 David Flood CLO 229507 0 29416 0 10773 0 76769 0 6769 0 353234 0 0 12781 Lindsey Myhre CFO 275141 0 35253 0 4429 0 84795 0 6769 0 406387 0 0 15136 Thomas Johnson President and CEO 42949 0 49374 0 1498 0 378207 0 0 0 472028 0 0 49374 Barbara Richey Vice President 183092 0 91386 0 4662 0 38776 0 6769 0 324685 0 0 10289 Patricia Kelly Vice President 194319 0 24921 0 4920 0 40696 0 6769 0 271625 0 0 10858 Sean Watt Vice President 190555 0 24428 0 5453 0 14091 0 16936 0 251463 0 0 10556 Ezra Eckhardt President and CEO 519909 0 64594 0 12065 0 84928 0 20234 0 701730 0 0 0 Darren McNannay Director Real Estate 157530 0 13595 0 635 0 28759 0 7390 0 207909 0 0 5950 Scott Rabe Director Software Dev 143206 0 14040 0 643 0 27098 0 22964 0 207951 0 0 5741 Christie Moore Commercial Banking Manager 126571 0 37229 0 163 0 31066 0 12671 0 207700 0 0 0 Brendan Wiechert Director Commercial Lending 150932 0 12907 0 105 0 17429 0 8869 0 190242 0 0 5556 Richard Lentz Director Consumer Lending 141616 0 12917 0 509 0 26373 0 20324 0 201739 0 0 5632 Wally Stanley Director 9500 0 0 0 0 0 0 0 0 0 9500 0 0 0 Robert Jay Walter Director 2375 0 0 0 0 0 0 0 0 0 2375 0 0 0 Dennis Michael Rennaker Director 9500 0 0 0 0 0 0 0 0 0 9500 0 0 0 Dolores Humiston Chairwoman 11515 0 0 0 0 0 0 0 0 0 11515 0 0 0 Robert Loomis Director 9500 0 0 0 0 0 0 0 0 0 9500 0 0 0 Catherine Brazil Director 9500 0 0 0 0 0 0 0 0 0 9500 0 0 0 Chris Morlan Vice Chair 9500 0 0 0 0 0 0 0 0 0 9500 0 0 0 Nick Leute Director 9500 0 0 0 0 0 0 0 0 0 9500 0 0 0 Kathryn Dobson Chairwoman 4750 0 0 0 0 0 0 0 0 0 4750 0 0 0 Kevin Spohr Supervisory Com 4750 0 0 0 573 0 0 0 0 0 5323 0 0 0 Janet McCann Supervisory Com 4750 0 0 0 0 0 0 0 0 0 4750 0 0 0 Terri Alvarado Director 9500 0 0 0 0 0 0 0 0 0 9500 0 0 0 Steven Jones Director 7125 0 0 0 0 0 0 0 0 0 7125 0 0 0 Schedule J, Part I, Line 1a The Credit Union will reimburse board members for travel for companions to conferences. These reimbursements are treated as a taxable event and included on the board member's 1099. Schedule J, Part I, Line 4 The Credit Union has deferred compensation agreements with select members of the executive management team that provide benefits payable to these employees if they remain employed by the Credit Union for specified years of service. The benefits are subject to forfeiture if employment is terminated for cause as defined in the agreements. The Credit Union is accruing the estimated liability under the agreements on a present value basis over the remaining years until the eligible employees attain the specified number of years of service. The following employees were participants in the 457f deferred compensation agreements and the Credit Union accrued the following amounts for each of them in 2018: Belinda Caillouet: $23,437, Evelyn Hopkins: $75,721, Lindsey Myhre: $28,499, and David Flood: $26,574. Severance pay was paid out to two members of executive management team in 2018, Belinda Caillouet: $137,628 and Sean Watt: $47,545. Form 990, Part VI, Section A, Line 6 STCU is a state chartered credit union organized under the provisions of the Washington Credit Union Act. The membership base of STCU consists of people who live, work, worship, or attend school in the State of Washington or counties in Northern Idaho. STCU members elect the board of directors and the supervisory committee members. Form 990, Part VI, Section A, Line 7a STCU members elect directors and the supervisory committee. Each serves a three year term. The nine members of the board of directors set direction and policy for STCU and hire, evaluate and set compensation for the president of STCU. The supervisory committee consists of three members who are responsible for ensuring the completion of required audits and member account verification. Elections for both directors and supervisory committee member positions are held each February. Form 990, Part VI, Section B, Line 11b The from 990 is prepared by the Accounting Manager. It is reviewed by the Vice President of Accounting and Finance, Chief Financial Officer, and by the Chief Executive Officer, the form 990 is reviewed with the board of directors prior to filing. Form 990, Part VI, Section B, Line 12c Members of the board of directors, supervisory committee and any affiliate members will be required to review the Code of Ethics and Personal Conduct Policy and sign the acknowledgement and agree on the Conflict of Interest Disclosure form on an annual basis. These will be reviewed by the board chair and vice chair. Any conflict of interest concerns will be reviewed by the board executive committee. In the event a conflict exists in the judgement of the board executive committee, the board chair or vice chair and the board member will take appropriate steps to eliminate the conflict. Members of the executive management are required to complete on an annual basis a Conflict of Interest Disclosure form. The chair and vice chair of the board of directors and the CEO are responsible to review the forms for any potential conflict of interest. In the event a conflict exists, the chair, vice chair, and CEO and the employee will take appropriate steps to resolve the conflict. Form 990, Part VI, Section B, Line 15 The board of directors is responsible for determining the compensation of the CEO. The executive compensation committee of the board of directors engages an outside compensation consultant to review the compensation of the CEO, provide data of of comparable compensation for other similarly qualified positions in the credit union or financial services industry, and to assist in the review and/or development of the compensation philosophy. The executive compensation committee recommends the total compensation package for the CEO to the board of directors for approval. In order to attract and retain quality employees, STCU is committed to paying salaries which are nondiscriminatory, equitable, and competitive with the salaries paid by other companies in our industry and surrounding area. The Human Resources department staff participates in a variety of annual salary surveys for other executive management positions, key employees and all other staff positions and submits recommendations for any compensation adjustments to the CEO or the executive management team for approval and effective date of changes. Positions are evaluated to determine relevant job titles, job descriptions and salary ranges. Form 990, Part VI, Section C, Line 19 Governing documents, policies and financial statement may be requested by writing to Ezra Eckhardt, CEO, STCU, 1620 N Signal Drive, Liberty Lake, WA 99019. Form 990, Part XI, Line 9 Total change in available for sale market allowance, $-431,429.