2019-11-15T16:02:36-06:00 2018-12-31 910189318 MOSS ADAMS LLP 601 W RIVERSIDE AVENUE STE 1800 SPOKANE WA 99201 990 2018-01-01 910567788 HORIZON CREDIT UNION HORI 5099286494 PO BOX 15128 SPOKANE VALLEY WA 99216 JEFF ADAMS CEO 5099286494 2019-11-15 1 EMINA O CRESSWELL CPA P01217304 5097472600 2019-11-15 12.129.4.211 2019-11-15 14:38:10 PS P DA39A3EE5E6B4B0D3255BFEF95601890AFD80709 5A84561D947C5856B3AEF921D2AF89307CF8C361 2018 2020-03-31 21:24:44Z JEFF ADAMS PO BOX 15128 SPOKANE VALLEY WA 99216 84349518 0 1269 X WWW.HZCU.ORG X 1947 WA CREDIT UNION OPERATED WITHOUT PROFIT FOR MUTUAL PURPOSES. PROVIDE FINANCIAL SERVICES TO MEMBERS. 7 7 297 11 154904 0 0 0 44188730 48812815 2021438 2715117 203078 181620 46413246 51709552 107528 133968 0 0 16270288 16846918 0 0 0 20066521 23109867 36444337 40090753 9968909 11618799 947975803 1056461334 840581532 937435208 107394271 119026126 CREDIT UNION OPERATED WITHOUT PROFIT FOR MUTUAL PURPOSES. 0 0 PROVIDE FINANCIAL SERVICES TO APPROXIMATELY 74,000 MEMBERS. THESE SERVICES INCLUDE BUT ARE NOT LIMITED TO LOANS AND SAVINGS PROGRAMS. THE SERVICES ARE PROVIDED BY AT LEAST SEVEN NON-PAID VOLUNTEERS AND APPROXIMATELY 300 FULL-TIME PAID EMPLOYEES. 0 0 1 0 0 0 0 0 0 1 0 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 1 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 1 10879 0 1 297 1 1 1 0 0 0 0 0 0 0 X 7 7 0 0 0 0 1 1 1 1 1 0 0 0 1 1 0 0 1 1 1 0 X DEBORAH PARELIUS 5099286494 PO BOX 15128 SPOKANE VALLEY WA 99216 MIKE BUTLER DIRECTOR 1.00 X 0 0 0 TOM DILUZIO DIRECTOR 1.00 X 0 0 0 MARK LODINE DIRECTOR 1.00 X 0 0 0 STEVE SHARON CHAIRMAN OF THE BOARD 1.00 X X 0 0 0 NANCY RIPLEY 1ST VICE CHAIRMAN 1.00 X X 0 0 0 BERNIE KORTH 2ND VICE CHAIRMAN 1.00 X X 0 0 0 PAT FITZGERALD SECRETARY/TREASURER 1.00 X X 0 0 0 JEFF ADAMS CEO 40.00 X 438986 0 397953 DEBORAH PARELIUS CFO 35.00 X 245034 0 25199 MARK NEUMANN COO 40.00 X 252628 0 23578 BRIAN GRYTDAL VP MARKETING 40.00 X 188006 0 27275 JODIE OLSON VP HUMAN RESOURCES 40.00 X 165716 0 29001 MICOLE COMBS VP COMPLIANCE & SUPPORT 40.00 X 138515 0 24154 GREG CRARY VICE PRESIDENT 40.00 X 152244 0 44654 REED LYTLE DIRECTOR OF LENDING 40.00 X 116001 0 26788 1697130 0 598602 12 0 1 0 NCRDIGITAL INSIGHT PO BOX 515306 LOS ANGELES CA 90051 WEBSITE AND ELECTRONIC BANKING 1096135 FISERV 405 SCIENCE DRIVE MOORPARK CA 93021 DATA PROCESSING 1012855 CDW 200 N MILWAUKEE AVE VERNON HILLS IL 60061 COMPUTER HARDWARE/SOFTWARE 488486 DIRECT MAIL ENTERPRISES 812 N NAPA SPOKANE WA 99202 DIRECT MAIL SERVICE 404569 STANLEY PERDUE 41 CAMINO DE LOS ANGELITOS GALISTEO NM 87540 LEGAL 141600 20 INTEREST ON MEMBER LOANS 522100 37966858 37966858 FEES INCOME 522100 5111391 4956487 154904 VISA & DEBIT CARD INCOME 522100 4018103 4018103 OTHER INCOME 525990 1716463 1716463 48812815 2397015 2397015 188467 6847 181620 181620 181620 32951221 32633119 318102 318102 318102 51709552 48657911 154904 2896737 129868 4100 1383378 11318927 1280872 1896339 967402 146903 142287 95807 7613 937098 867023 473821 1923617 1794192 209480 27543 6112379 1461403 452860 PROVISION FOR LOAN LOSS 3024312 CARD PROCESSING FEES 1506276 LOAN PROCESSING 1211545 MEMBER SERVICING 1090022 1625686 40090753 16471232 15738841 54412735 158645628 2693365 4460465 1993400 2039575 791545205 805578553 1296969 1088715 42810861 16396927 26790585 26413934 31974036 22950756 11355 11355 3740376 3451951 17046545 16081561 947975803 1056461334 11030218 12153189 829551314 925282019 840581532 937435208 X 0 0 0 0 107394271 119026126 107394271 119026126 947975803 1056461334 11618799 13056 0 X 0 1 X 1 0 7613 7613 7613 1 CREDIT UNION LEGISLATIVE ACTION FUND 18000 INTERNATIONAL BLVD SUITE 350 SEATAC WA 98188 800043051 7613 5127 PART I-A, LINE 1: THE CREDIT UNIONS ONLY INDIRECT POLITICAL CAMPAIGN ACTIVITY IS A CONTRIBUTION TO THE CREDIT UNION LEGISLATIVE ACTION COMMITTEE. 7783673 7783673 21879135 6000429 15878706 729590 695867 33723 12068653 9700631 2368022 349810 349810 26413934 MEMBER SHARES & DEPOSITS 925282019 925282019 X 51398297 6847 6847 51391450 318102 318102 51709552 39779498 6847 6847 39772651 318102 318102 40090753 PART X, LINE 2: THE CREDIT UNION IS A STATE-CHARTERED CREDIT UNION DESCRIBED IN INTERNAL REVENUE CODE ("IRC") SECTION 501(C)(14). AS SUCH, THE CREDIT UNION IS EXEMPT FROM FEDERAL TAXATION OF INCOME DERIVED FROM THE PERFORMANCE OF ACTIVITIES THAT ARE IN FURTHERANCE OF ITS EXEMPT PURPOSES. HOWEVER, IRC SECTION 511 IMPOSES A TAX ON THE UNRELATED BUSINESS INCOME (AS DEFINED IN SECTION 512) DERIVED BY STATE-CHARTERED CREDIT UNIONS. THE SPECIFIC APPLICATION OF SECTION 512 TO THE VARIOUS ACTIVITIES CONDUCTED BY STATE-CHARTERED CREDIT UNIONS HAS BEEN AT ISSUE FOR MANY YEARS. THE INTERNAL REVENUE SERVICE ("IRS") HAS ISSUED A SERIES OF TECHNICAL ADVICE MEMORANDA ("TAM") TO A NUMBER OF STATE-CHARTERED CREDIT UNIONS LOCATED THROUGHOUT THE COUNTRY. IN THESE TAMS, THE IRS RULED CERTAIN PRODUCTS AND SERVICES TO BE SUBJECT TO TAXATION AS UNRELATED BUSINESS INCOME. IN LIGHT OF THE TAMS, THE CREDIT UNION HAS ASSESSED ITS ACTIVITIES AND ANY POTENTIAL FEDERAL INCOME TAX LIABILITY. THE CREDIT UNION FILES IRS FORMS 990 AND 990-T, AS APPLICABLE, AND MEASURES AND RECOGNIZES THE IMPLICATIONS OF POSITIONS TAKEN OR EXPECTED TO BE TAKEN IN ITS TAX RETURNS ON AN ONGOING BASIS IN ACCORDANCE WITH INCOME TAX GUIDANCE. THE CREDIT UNION HAD NO UNRECOGNIZED TAX BENEFITS OR LIABILITIES, AND NO ADJUSTMENTS TO ITS FINANCIAL POSITION, RESULTS OF OPERATIONS OR CASH FLOWS RELATED TO UNCERTAIN TAX POSITIONS TAKEN FOR THE YEAR ENDED DECEMBER 31, 2018 AND 2017. THE CREDIT UNION IS NO LONGER SUBJECT TO FEDERAL, STATE OR LOCAL INCOME TAX EXAMINATIONS BY TAX AUTHORITIES FOR 12 MONTHS PRIOR TO DECEMBER 31, 2015. IF ASSESSED, THE CREDIT UNION RECOGNIZES PENALTIES AND INTEREST ASSOCIATED WITH TAX MATTERS AS PART OF OPERATING EXPENSES. IN 2017, CONGRESS PASSED THE TAX CUTS AND JOBS ACT, WHICH IMPOSES A 21% EXCISE TAX ON EMPLOYEE COMPENSATION IN EXCESS OF $1 MILLION AND DEFERRED COMPENSATION AFTER THE EMPLOYEE HAS LEFT THE ORGANIZATION IN EXCESS OF THREE TIMES THE AVERAGE COMPENSATION OF THE PREVIOUS FIVE YEARS. THE CREDIT UNION IS EVALUATING THE EFFECT OF THE LAW MAY HAVE ON ITS STATEMENT OF FINANCIAL CONDITION BUT DOES NOT BELIEVE ITS CONDITION WILL BE SIGNIFICANTLY AFFECTED. PART XI, LINE 2D - OTHER ADJUSTMENTS: RENTAL EXPENSES 6,847. PART XI, LINE 4B - OTHER ADJUSTMENTS: GAIN ON SALE OF ASSETS 318,102. PART XII, LINE 2D - OTHER ADJUSTMENTS: RENTAL EXPENSES 6,847. PART XII, LINE 4B - OTHER ADJUSTMENTS: GAIN ON SALE OF ASSETS 318,102. 0 NORTHWEST CREDIT UNION FOUNDATION 18000 INTERNATIONAL BLVD SEATAC WA 98188 911649328 501(C)(3) 7613 2018 ANNUAL CONTRIBUTION 1 X 1 1 X X X X 0 1 0 JEFF ADAMS CEO 366336 0 33826 0 38824 0 364840 0 33113 0 836939 0 0 0 DEBORAH PARELIUS CFO 208607 0 16694 0 19733 0 13468 0 11731 0 270233 0 0 0 MARK NEUMANN COO 212666 0 20422 0 19540 0 13594 0 9984 0 276206 0 0 0 BRIAN GRYTDAL VP MARKETING 147874 0 15695 0 24437 0 15242 0 12033 0 215281 0 0 0 JODIE OLSON VP HUMAN RESOURCES 152523 0 13193 0 0 0 13541 0 15460 0 194717 0 0 0 MICOLE COMBS VP COMPLIANCE & SUPPORT 122219 0 10839 0 5457 0 11131 0 13023 0 162669 0 0 0 GREG CRARY VICE PRESIDENT 141372 0 10152 0 720 0 13412 0 31242 0 196898 0 0 0 PART I, LINE 1A THE CREDIT UNION REIMBURSES LIMITED ACTUAL EXPENSES FOR SPOUSAL TRAVEL OF BOARD MEMBERS, SUPERVISORY COMMITTEE MEMBERS, THE CEO, AND SENIOR MANAGERS. THIS IS ONLY FOR TRAVEL RELATED TO CREDIT UNION BUSINESS. THE REIMBURSEMENTS ARE NOT TAXABLE COMPENSATION. PART I, LINE 4B JEFF ADAMS, CEO, PARTICIPATES IN A SUPPLEMENTAL NONQUALIFIED RETIREMENT PLAN. THE AMOUNT EARNED IN 2018 WAS $342,840. DEBORAH PARELIUS, CFO, AND MARK NEUMANN, COO, PARTICIPATE IN THE SPLIT-DOLLAR LIFE INSRANCE ARRANGEMENT THAT IS TREATED AS A SPLIT-DOLLAR LOAN UNDER TREASURY REGULATIONS SECTION 1.7872-15. PAPER COPIES OF THE REPRESENTATION STATEMENTS HAVE BEEN ATTACHED TO THE 990T RETURN. MARK NEUMANN COO EXECUTIVE COMPENSATION X 323225 415575 0 1 1 DEBORAH PARELIUS CFO EXECUTIVE COMPENSATION X 1392000 1624000 0 1 1 2039575 SCHEDULE L, PART II, LINE (C) ADDITIONAL EXPLANATION: EXECUTIVE COMPENSATION UNDER A SPLIT-DOLLAR LIFE INSURANCE ARRANGEMENT THAT IS TREATED AS A SPLIT-DOLLAR LOAN UNDER TREASURY REGULATIONS SECTION 1.7872-15. PAPER COPIES OF THE REPRESENTATION STATEMENTS HAVE BEEN ATTACHED TO THE 990T RETURN. FORM 990, PART VI, SECTION A, LINE 6 ENTITY HAS MEMBERS WHO ELECT MEMBERS OF THE BOARD. FORM 990, PART VI, SECTION A, LINE 7A ENTITY HAS ONE CLASS OF MEMBERS. FORM 990, PART VI, SECTION A, LINE 7B ENTITY HAS MEMBERS WHO HAVE RIGHTS TO RATIFY DECISIONS OF THE GOVERNING BODY. FORM 990, PART VI, SECTION B, LINE 11B THE CFO REVIEWS THE FORM 990 AND WILL MAKE A COMPLETE COPY OF IT AVAILABLE TO THE BOARD AT THE NOVEMBER 2019 BOARD MEETING. FORM 990, PART VI, SECTION B, LINE 15 CEO SALARY RANGES ARE PREPARED BY HUMAN RESOURCES BASED ON INDUSTRY COMPARABILITY DATA AND IS REVIEWED BY THE COMPENSATION COMMITTEE. THE COMPENSATION COMMITTEE IS COMPRISED OF VOLUNTEER BOARD MEMBERS. CEO PERFORMANCE IS ASSESSED AND SALARY TRENDS ARE REVIEWED BY THE COMPENSATION COMMITTEE TO DETERMINE APPROPRIATE SALARY. THE SALARY RECOMMENDATION IS THEN PRESENTED TO THE FULL BOARD OF DIRECTORS FOR FINAL REVIEW AND APPROVAL. SENIOR MANAGER SALARY RANGES ARE PREPARED BY HUMAN RESOURCES BASED ON INDUSTRY COMPARABILITY DATA AND REVIEWED BY THE CEO AND THE COMPENSATION COMMITTEE. PERFORMANCE IS ASSESSED AND SALARY TRENDS ARE REVIEWED BY THE CEO TO DETERMINE RELEVANT SALARIES. EVERY FEW YEARS THE COMPENSATION DATA AND PROCESS IS REVIEWED BY AN OUTSIDE CONSULTANT. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION DOES NOT MAKE AVAILABLE TO THE PUBLIC THE ORGANIZATION'S GOVERNING DOCUMENTS OR CONFLICT OF INTEREST POLICY. THE ORGANIZATION PUBLISHES THEIR MONTHLY FINANCIAL STATEMENTS AT EACH BRANCH, AND THEIR QUARTERLY FINANCIAL STATEMENTS ARE PUBLISHED ON THE NCUA WEBSITE. THE ORGANIZATION'S ANNUAL REPORT IS AVAILABLE ON THEIR WEBSITE.