2018-11-15T11:58:35-06:00 2017-12-31 910189318 MOSS ADAMS LLP 601 W RIVERSIDE AVENUE STE 1800 SPOKANE WA 99201 990 2017-01-01 910567788 HORIZON CREDIT UNION HORI 5099286494 PO BOX 15128 SPOKANE VALLEY WA 99216 JEFF ADAMS CEO 5099286494 2018-11-14 1 EMINA O CRESSWELL CPA P01217304 5097472600 2018-11-14 12.129.7.100 2018-11-14 13:06:55 PS P DA39A3EE5E6B4B0D3255BFEF95601890AFD80709 65A380D633E8BB9C458D5A4AABE92F68F0984D62 2017 2018-06-14 16:35:46Z JEFF ADAMS PO BOX 15128 SPOKANE VALLEY WA 99216 71794056 0 1269 X WWW.HZCU.ORG X 1947 WA CREDIT UNION OPERATED WITHOUT PROFIT FOR MUTUAL PURPOSES. PROVIDE FINANCIAL SERVICES TO MEMBERS. 7 7 279 11 147667 -12584 0 0 40072423 44188730 1130857 2021438 196649 203078 41399929 46413246 71887 107528 0 0 15879968 16270288 0 0 0 18445102 20066521 34396957 36444337 7002972 9968909 908342501 947975803 810917139 840581532 97425362 107394271 CREDIT UNION OPERATED WITHOUT PROFIT FOR MUTUAL PURPOSES. 0 0 PROVIDE FINANCIAL SERVICES TO APPROXIMATELY 73,000 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 1 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 1 9139 0 1 279 1 1 1 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 ID MT 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 410090 0 374052 DEBORAH PARELIUS CFO 35.00 X 225019 0 26474 MARK NEUMANN COO 40.00 X 231552 0 27246 BRIAN GRYTDAL VP MARKETING 40.00 X 182979 0 25424 JODIE OLSON VP HUMAN RESOURCES 40.00 X 156400 0 26078 MICOLE COMBS VP COMPLIANCE & SUPPORT 40.00 X 128745 0 32454 GREG ROBINSON VP INFORMATION SERVICES 32.00 X 116021 0 12627 REED LYTLE DIRECTOR OF LENDING 40.00 X 114527 0 26883 1565333 0 551238 10 0 1 0 VANTIV LLC 8500 GOVERNORS HILL DRIVE SYMMES TOWNSHIP OH 45429 ATM AND CARD PROCESSING 1742048 DIGITAL INSIGHT PO BOX 515306 LOS ANGELES CA 90051 WEBSITE AND ELECTRONIC BANKING 1098289 FISERV 405 SCIENCE DRIVE MOORPARK CA 93021 DATA PROCESSING 544869 DIRECT MAIL ENTERPRISES 812 N NAPA SPOKANE WA 99202 DIRECT MAIL SERVICE 380214 BAKER CONSTRUCTION & DEVELOPMENT 2711 E SPRAGUE AVE SPOKANE WA 99202 CONSTRUCTION 378154 19 INTEREST ON MEMBER LOANS 522100 34271383 34271383 FEES INCOME 522100 4813662 4665995 147667 VISA & DEBIT CARD INCOME 522100 3887448 3887448 OTHER INCOME 525990 1216237 1216237 44188730 1897771 1897771 212085 9007 203078 203078 203078 25495470 25371803 123667 123667 123667 46413246 44041063 147667 2224516 101528 6000 1294431 11094124 1237890 1686640 957203 133927 142198 79452 6787 708849 820664 511299 1735695 1741827 198591 29873 4083432 1308305 463338 PROVISION FOR LOAN LOSS 2915531 CARD PROCESSING FEES 1793397 LOAN PROCESSING 1104107 MEMBER SERVICING 962232 1327017 36444337 21237507 16471232 66013518 54412735 2492843 2693365 1715225 1993400 723427175 791545205 1351919 1296969 41866409 15075824 26428854 26790585 45531456 31974036 12108 11355 4051152 3740376 16080744 17046545 908342501 947975803 11184936 11030218 799732203 829551314 810917139 840581532 X 0 0 0 0 97425362 107394271 97425362 107394271 908342501 947975803 9968909 0 X 0 1 X 1 0 6787 6787 6787 1 CREDIT UNION LEGISLATIVE ACTION FUND 18000 INTERNATIONAL BLVD SUITE 350 SEATAC WA 98188 800043051 6787 3385 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 22194172 5494402 16699770 729590 649710 79880 10888172 8931712 1956460 270802 270802 26790585 MEMBER SHARES & DEPOSITS 829551314 829551314 X 46298585 9007 9007 46289578 123668 123668 46413246 36329676 9007 9007 36320669 123668 123668 36444337 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, 2017 AND 2016. 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, 2014. 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 9,007. PART XI, LINE 4B - OTHER ADJUSTMENTS: GAIN ON SALE OF ASSETS 123,668. PART XII, LINE 2D - OTHER ADJUSTMENTS: RENTAL EXPENSES 9,007. PART XII, LINE 4B - OTHER ADJUSTMENTS: GAIN ON SALE OF ASSETS 123,668. 1 NORTHWEST CREDIT UNION FOUNDATION 18000 INTERNATIONAL BLVD SEATAC WA 98188 911649328 501(C)(3) 6787 2017 ANNUAL CONTRIBUTION CHILDREN'S HOME SOCIETY OF WASHINGTON 2323 N DISCOVERY PLACE SPOKANE VALLEY WA 99216 432032452 501(C)(3) 9771 COMMUNITY EVENT DONATIONS 2 0 SCHOLARSHIPS 4 6000 PART I, LINE 2: THE ORGANIZATION KEEPS RECEIPTS OR DOCUMENTATION FOR EACH SPONSORED EVENT. THE ORGANIZATION HAS A POLICY AND SET OF BY-LAWS FOR THE COMMUNITY OUTREACH COMMITTEE TO FOLLOW WHEN APPROVING EXPENDITURES FOR EVENTS. THE COC IS ASSIGNED BY SENIOR MANAGEMENT A BUDGETED EXPENDITURE AMOUNT FOR EACH YEAR. THE DONATIONS WERE MADE TO KNOWN LOCAL CHARITABLE ORGANIZATIONS AND THEREFORE NO FURTHER MONITORING IS DONE TO ENSURE THAT THE FUNDS ARE NOT USED OUTSIDE THE U.S. X 1 1 X X X X 0 1 0 JEFF ADAMS CEO 348582 0 33495 0 28013 0 345576 0 28476 0 784142 0 0 0 DEBORAH PARELIUS CFO 184610 0 17047 0 23362 0 16164 0 10310 0 251493 0 0 0 MARK NEUMANN COO 194023 0 18585 0 18944 0 17819 0 9427 0 258798 0 0 0 BRIAN GRYTDAL VP MARKETING 141672 0 13501 0 27806 0 14802 0 10622 0 208403 0 0 0 JODIE OLSON VP HUMAN RESOURCES 143215 0 13185 0 0 0 12751 0 13327 0 182478 0 0 0 MICOLE COMBS VP COMPLIANCE & SUPPORT 108796 0 10709 0 9240 0 11205 0 21249 0 161199 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 2017 WAS $323,976. MARK NEUMANN COO EXECUTIVE COMPENSATION X 323225 369400 0 1 1 DEBORAH PARELIUS CFO EXECUTIVE COMPENSATION X 1392000 1624000 0 1 1 1993400 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. 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 2018 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.