2017-11-15T19:12:00-06:00 2016-12-31 910189318 Moss Adams LLP 2707 Colby Avenue Suite 801 Everett WA 98201 990 2016-01-01 910557925 Sound Credit Union SOUN 2535977603 PO Box 1595 Tacoma WA 98401 Troy Garry CFO 2535977603 2017-11-15 1 Wendy Campos P00448102 4252597227 2017-11-15 12.129.7.100 2017-11-15 15:21:09 PS P DA39A3EE5E6B4B0D3255BFEF95601890AFD80709 92E4E1887166A1A95AEA2354EF277E907B8DEB06 2016 2018-03-14 21:41:22Z Donald Clark Jr PO Box 1595 Tacoma WA 98401 227255099 0 X WWW.SOUNDCU.COM X 1940 WA COOPERATIVE PROVIDING FINANCIAL SERVICES, INCLUDING LOANS AND SHARE DEPOSITS TO ITS MEMBERS. 10 10 342 0 447884 -154097 0 0 55254148 59544051 4416526 4454282 1104677 2336307 60775351 66334640 120000 120000 0 0 20484351 21287570 0 0 0 23876133 27204475 44480484 48612045 16294867 17722595 1256874069 1379598394 1112323908 1217275643 144550161 162322751 A MEMBER OWNED COOPERATIVE PROVIDING FINANCIAL SERVICES, INCLUDING LOANS AND SHARE DEPOSITS TO ITS MEMBERS. 0 0 On the liability/equity side of the balance sheet our members hold 201,281 savings, checking, and money market deposit accounts with combined balances of $1,003,991,599. Members hold 1,995 IRA savings accounts with combined balances of $23,772,470. These funds are pooled and used primarily to fund consumer and real estate secured loans to our membership. Also on the liability/equity side of the balance sheet, 7,483 of our members hold certificate accounts with total balances of $154,545,759. On the asset side, 69,850 of our members hold consumer loans that include vehicle, student, mortgage, and visa loans. Consumer loans that include vehicle secured loans that $481,274,976. Real estate secured loans totals $360,188,602. The loan portfolio totals, $977,804,704. 0 0 0 0 0 0 0 0 0 1 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 1 13143 0 1 342 1 1 1 0 0 0 0 0 X 10 10 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 X Troy Garry 2535977603 1331 BROADWAY PLAZA TACOMA WA 98401 Keith Mock Chair From 6/22 1.00 X X 21250 0 0 Gary Emmons Chair through 2/27 1.00 X X 15417 0 0 Brenda Heineman Vice Chair 1.00 X X 21667 0 0 David Wasson Secretary/Treasurer through 6/22 1.00 X X 19375 0 0 John Bauder Director 1.00 X 3750 0 0 Richard Brentin Director 1.00 X 17625 0 0 Shelley Coleman Director 1.00 X 20000 0 0 Angie Harper Director 1.00 X 15875 0 0 Barry Wallis Director 1.00 X 15000 0 0 Norman Parsons Sr Director 1.00 X 20000 0 0 Dennis Okamoto Director 1.00 X 15000 0 0 Richard Brandsma CEO through 3/31 50.00 X 879232 0 58626 Donald Clark Jr CEO From 4/1 50.00 X 620680 0 53890 Troy Garry SVP/ Chief Financial Officer 50.00 X 206450 0 38834 Denise Reagan Executive Vice President 50.00 X 1116310 0 46355 Carl Roer SVP/ Chief Lending Officer 50.00 X 223766 0 92065 Lyman Williams SVP/ Chief Business Services Officer 50.00 X 192760 0 25033 Charlotte Shenkel SVP/ Chief Branch Officer 50.00 X 476062 0 53890 Kimberly Mapes SVP/ Chief Employee Engagement Officer 50.00 X 167284 0 26277 4067503 0 394970 15 0 1 0 Jack Henry & Associates Inc PO Box 609 Monett MO 65708 IT System Services 1074586 HHJ INC 601 ST HELENS AVE Tacoma WA 98402 Architectural/ Contracting Services 974514 Kaye-Smith Enterprises PO BOX 956 Renton WA 98057 PRINTING/MAILing Statements 493647 Diebold Inc PO BOX 643543 PITTSBURGH PA 15264 Mobile Software Services 330635 ACCESS SOFTEK INC 727 ALLSTON WAY SUITE C BERKELEY CA 94710 Banking Software Services 220990 13 LOAN INTEREST INCOME 522291 39264862 39264862 FEES AND CHARGES 522100 8937577 8660467 277110 INTERCHANGE 522299 8177055 8177055 Loan Origination Income 518210 2133721 2133721 FINANCIAL SERVICES 522100 59724 59724 971112 860062 111050 59544051 4417693 4417693 235783 503280 -267497 -267497 -267497 160453768 160417179 36589 36589 36589 Discount Write Off Income 900099 1612706 1612706 NON-OPERATING INCOME 900099 991098 991098 2603804 66334640 61699971 447884 4186785 110000 10000 2042671 13211340 2466390 2267039 1300130 6178 29667 184807 420883 1196412 3280771 768147 1994038 212090 267854 2439675 2455412 LOAN SERVICING 5596626 PROVISION FOR LOAN LOSS 5261823 Bank Fees 2550636 WM AMORTIZATION OF CDI 534333 5123 48612045 13986769 14870233 142871568 178944790 11594063 11648756 821715957 966793210 1437228 1311551 60373750 21773262 39146121 38600488 200960147 140061882 3319640 3430799 4815468 4281134 17027108 19655551 1256874069 1379598394 18228536 21585054 13000000 13000000 1081095372 1182690589 1112323908 1217275643 X 0 0 0 0 144550161 162322751 144550161 162322751 1256874069 1379598394 17722595 49995 0 X 0 0 0 11974156 11974156 33224310 10997286 22227024 1986240 857334 1128906 13189044 9918642 3270402 38600488 MEMBER SHARES 1182690589 1182690589 1 News Tribune Scholarship Foundation 1950 S State St Tacoma WA 98405 943082120 501(c)(3) 27500 Benefactor Sponsorship for Business Leadership Awards Economic Development Board PO BOX 1555 TAComa WA 98401 911040355 501(c)(3) 5500 Excellence Fund MILGARD SCHOOL OF BUSINESS University of Washington Tacoma 1900 Commerce Street Box 358420 Tacoma WA 98402 943079432 501(c)(3) 7000 Business Leadership Awards/Program 3 Scholarships 10 10000 Part I, Line 2: The donation and sponsorship committee meets approximately every 45-60 days to review each request that is submitted. As the requests are reviewed, the organization determines the following information: who is the organization and what do they do? What are they trying to achieve with their request? What is their purpose and does it align with Sound's public responsiblity beliefs? Is the supporting organization good for the local community, Sound's membership, and Sound Credit Union as a whole? Where are they located and what is their area of focus? Has the organization supported the cause in the past? Does the dollar amount requested fit into the budget? When approved, the organization works with the requesting organization to discuss next steps, including payment, logo placement, and social media. Once scholarship applications are submitted each committee member scores the applications. Those scores are then averaged and the top applicants are selected to receive the awards. Applicants provide their school's information and scholarship checks are mailed directly to the school's financial aid office. Payments come directly from Sound Credit Union. X X 1 0 X X X 0 1 0 Richard Brandsma CEO through 3/31 159599 0 0 0 719633 0 53000 0 5626 0 937858 0 180000 0 Donald Clark Jr CEO From 4/1 406814 0 157268 0 56598 0 23850 0 30040 0 674570 0 0 0 Troy Garry SVP/ Chief Financial Officer 158449 0 41800 0 6201 0 19368 0 19466 0 245284 0 0 0 Denise Reagan Executive Vice President 332579 0 170624 0 613107 0 23850 0 22505 0 1162665 0 510000 0 Carl Roer SVP/ Chief Lending Officer 162287 0 43828 0 17651 0 66431 0 25634 0 315831 0 0 0 Lyman Williams SVP/ Chief Business Services Officer 150119 0 35417 0 7224 0 0 0 25033 0 217793 0 0 0 Charlotte Shenkel SVP/ Chief Branch Officer 145013 0 40005 0 291044 0 23850 0 30040 0 529952 0 270000 0 Kimberly Mapes SVP/ Chief Employee Engagement Offic 140094 0 21448 0 5742 0 15316 0 10961 0 193561 0 0 0 Part I, Line 1a FIRST CLASS TRAVEL: FIRST CLASS TRAVEL IS PROVIDED FOR BOARD OF DIRECTORS MEMBERS FOR FLIGHTS OVER A CERTAIN AMOUNT OF HOURS. TRAVEL FOR COMPANIONS: INCLUDES SPOUSAL TRAVEL FOR BOARD OF DIRECTORS MEMBERS, ALL OF WHICH IS TAXABLE COMPENSATION. Part I, Line 4b THE CREDIT UNION HAS ENTERED INTO three 457(F) SUPPLEMENTAL RETIREMENT BENEFIT AGREEMENTS WITH Richard Brandsma, Denise Reagan, and Charlotte Shenkel. They respectively got payouts of $180,000, $450,000, and $270,000. Additionally, Carl Roer accrued $45,120 of 457(f) retirement plan compensation. Form 990, Part VI, Section A, line 6 THE CREDIT UNION HAS 116,103 MEMBERS AS OF DECEMBER 31, 2016. Form 990, Part VI, Section A, line 7a THE CREDIT UNION'S MEMBERS HAVE THE RIGHT TO ELECT ONE OR MORE MEMBERS OF THE 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 ANNUALLY. Additionally, members vote on items brought through a special meeting of members, such as mergers and removal of officers and directors. Form 990, Part VI, Section B, line 11b THE FORM 990 IS PROVIDED TO THE BOARD OF DIRECTORS WHO REVIEW THE FORM and applicable schedules PRIOR TO THE RETURN'S FILING with the IRS. Form 990, Part VI, Section B, line 12c EMPLOYEES SIGN A STATEMENT REQUIRING THAT THEY MUST DISCLOSE TO THE PRESIDENT & CEO ANY ACTUAL, POTENTIAL, OR PERCEIVED CONFLICTS OF INTEREST BEFORE BEING HIRED. DIRECTORS AND VOLUNTEERS SIGN A "CODE OF ETHICS ACKNOWLEDGEMENT" THAT STATES THEY WILL NOT BE INVOLVED IN SITUATIONS THAT RESULT IN OR COULD BE PERCEIVED TO BE A CONFLICT OF INTEREST. THEY MUST ALSO EXCUSE THEMSELVES FROM ANY DISCUSSIONS OR PARTICIPATION IN DECISIONS INVOLVING INSTANCES IN WHICH A CONFLICT OF INTEREST EXISTS OR MAY EXIST. THE POLICY MANUAL HAS THREE SECTIONS IN WHICH CONFLICTS OF INTEREST ARE STATED AND THE BOARD APPROVES THE POLICY MANUAL ON AN ANNUAL BASIS. BOTH THE CEO & EVP MONITOR ALL STAFF AND VOLUNTEER ACCOUNTS. IN ADDITION, DURING OUR CERTIFIED AUDIT, ALL STAFF AND VOLUNTEER ACCOUNTS, OR A SAMPLING, ARE REVIEWED FOR POTENTIAL CONFLICTS OF INTEREST. NO DIRECTOR, COMMITTEE MEMBER, OR EMPLOYEE OF THE CREDIT UNION MAY HAVE A PECUNIARY INTEREST IN ANY CONTRACT OR TRANSACTION WITH THE CREDIT UNION UNLESS THIS INTEREST IS DISCLOSED AND MADE KNOWN TO THE BOARD OF DIRECTORS. NO DIRECTOR OR COMMITTEE MEMBER OF THE CREDIT UNION WILL PARTICIPATE IN THE DELIBERATION OF ANY QUESTION AFFECTING THEIR OWN PECUNIARY INTEREST. SUCH DIRECTOR OR COMMITTEE MEMBER WILL WITHDRAW FROM THE DELIBERATION AND DECISION UPON SUCH INTEREST. Form 990, Part VI, Section B, line 15 LINE 15A, COMPENSATION PROCESS FOR TOP OFFICIAL: THE EMPLOYEE BENEFITS COMMITTEE, WHICH IS COMPRISED OF 3 BOARD MEMBERS REVIEWS LOCAL SURVEYS, INCLUDING THE ANNUAL MILLIMAN NORTHWEST FINANCIAL INDUSTRY SALARY SURVEY TO DEVELOP A RECOMMENDATION FOR THE BOARD. THE BOARD REVIEWS THE COMMITTEE'S RECOMMENDATION AND APPROVES THE CEO'S COMPENSATION. LINE 15B, COMPENSATION PROCESS FOR OFFICERS: OTHER OFFICER AND KEY EMPLOYEE COMPENSATION IS DETERMINED BY THE CEO AND BECOMES A PART OF THE COMPENSATION RECOMMENDATION DURING THE BUDGET PROCESS. Form 990, Part VI, Section C, line 19 THE CREDIT UNION'S BYLAWS AND LEGAL DOCUMENTS, FINANCIAL STATEMENTS AND ANNUAL REPORT, THAT MEMBERS HAVE THE RIGHT TO VIEW, ARE AVAILABLE UPON REQUEST. THE REQUEST MUST BE IN WRITTEN FORM. SOUND FINANCIAL GROUP INC PO BOX 1595 TACOMA WA 98401 911263213 INSURANCE WA SOUND Credit Union C 62 1.00000 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0