2017-05-15T14:41:46-07:00 2016-12-31 990 2016-01-01 916035907 QUALSTAR CREDIT UNION QUAL 8008480018 PO BOX 96730 BELLEVUE WA 980097730 Michael Elfstrom Chief Financial Officer 8008480018 2017-05-15 63.232.100.67 2016 2021-01-29 14:40:06Z MARK NELSON 2133 152ND AVE NE REDMOND WA 98052 22780500 0 1269 X www.qualstarcu.com X 1952 WA WE ARE A CREDIT UNION PROVIDING FINANCIAL PRODUCTS & SERVICES TO MEMBERS 11 11 155 15 133171 -38409 0 0 19377123 20962443 1377544 1818057 0 0 20754667 22780500 0 0 0 0 7416381 8573004 0 0 0 9091527 9812125 16507908 18385129 4246759 4395371 413167721 471645991 360971536 414097651 52196185 57548340 PROVIDE FINANCIAL PRODUCTS & SERVICES 0 0 Interest expense in the amount of $2,061,451 was paid to members for money on deposit at the credit union. Deposit accounts earning interest included checking, savings, money market, IRA, and Certificate of Deposit accounts. The credit union has about 75,000 deposit accounts that can earn interest. The credit union expensed $913,930 in provision for loan loss costs for the year. The expense was to fund the accrual for doubtful loans on the balance sheet. The credit union has about 25,000 open loan accounts. The credit union expensed $487,707 during the year for loan servicing costs. These costs were paid to originate and service loans to members. The credit union has about 25,000 open loan accounts. 0 0 0 0 0 0 0 0 0 0 0 1 0 1 1 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 1 14137 0 1 155 1 1 1 0 0 0 0 0 X 11 11 0 0 0 0 1 1 0 1 1 0 0 0 1 1 1 1 1 1 0 0 X QUALSTAR CREDIT UNION 8008480018 2133 152nd AVE NE REDMOND WA 98052 GENE VIA Board Member 3 X 0 0 0 KIM BROWN Vice Chairman 3 X X 0 0 0 MITCHELL JOHNSON Board Member 3 X 0 0 0 CHARLIE ANDREWS Board Member 3 X 946 0 0 BILL ROCHESTER Board Chairman 4 0 X X 692 0 0 NOEL MCMURTRAY Board Member 3 0 X 0 0 0 LAWRENCE BINDNER JR Board Member 3 0 X 0 0 0 RICHARD URNESS Board Secretary/Treasurer 3 0 X X 828 0 0 JOEL SCHMIDT Board Member 3 0 X 0 0 0 MIKE NUEBEL Board Member 3 0 X 0 0 0 RUSS DEWOLFE Board Member 3 0 X 0 0 0 MARK R NELSON President 40 0 X 364228 0 36888 MICHAEL G ELFSTROM CFO 40 0 X 246083 0 28169 ROBERT ARBUCKLE COA 40 0 X 152458 0 24987 KARA TAYLOR VP OF I.S. 40 0 X 135046 0 11330 ROSHALLE DEARMENT VP OF LENDING 40 0 X 108821 0 12390 BRETT TREAT IS Manager 40 0 X 112441 0 10403 JON GAUG SYSTEMS DEVELOPMENT MANAGER 40 0 X 100451 0 9006 1221994 0 133173 7 0 1 0 JHA Card Processing Solutions PO Box 91101 Seattle WA 98111 Payment card and ATM processing 557178 CO-OP FINANCIAL SERVICES 9692 HAVEN AVE RANCHO CUCAMONGA CA 91730 SHARED BRANCHING AND ATM NETWORK PROVIDER 476704 Kaye Smith Business Graphics 4101 Oakdale Ave SW Renton WA 98057 Printing and statement production/mailing 451609 JACK HENRY AND ASSOCIATES 663 W Hwy 60 Monett MO 65708 Core banking system 413985 VISA PO Box 8999 San Francisco CA 94128 Credit card processor 403941 12 0 Interest on loans 522130 13041985 13041985 0 0 Fee Income 522130 3740542 3731501 9041 0 Other Operating Income 522130 4179916 4055786 124130 0 0 0 0 0 20962443 1806034 1806034 0 0 0 0 0 0 0 0 0 0 0 0 0 12023 0 0 0 12023 12023 12023 0 0 0 22780500 22647329 133171 0 X 0 0 0 0 765235 0 5863212 555308 920650 468599 0 89732 74748 0 0 0 2328855 374923 1437482 424885 0 611921 0 48703 170041 2061450 0 393573 291228 Loan Servicing 487707 Provision for Loan Losses 913930 Miscellaneous 102947 0 18385129 0 0 0 1532094 1416574 33367337 26617133 0 0 1518720 2422670 1000000 1950000 0 0 214264490 257051072 0 0 4406374 3839251 11988150 8736556 2883004 3251594 0 0 149136516 169423658 0 0 0 1833 5059186 5672206 413167721 471645991 9533902 11653877 0 0 0 0 0 0 315162 321754 0 0 0 0 0 351122472 402122020 360971536 414097651 X 0 0 0 0 52196185 57548340 52196185 57548340 413167721 471645991 X 4395371 -76356 0 0 -162947 1196087 X 0 0 0 0 1 X 0 399359 399359 0 3288923 1811086 1477837 0 2287899 1797621 490278 0 2289983 1997320 292663 0 3721986 3130529 591457 3251594 0 0 Federal Agency Notes AFS 25843526 F CDs at Banks and Credit Unions 143284036 F FSCC Shared Branch Network 60182 F The Co-op 210914 F CUDL 25000 F 169423658 170 Member share deposits 402121850 402122020 Schedule D, Part IV, Line 2b The escrow account is for property taxes and payments collected from members who originated their mortgage loans at Qualstar Credit Union and the loans were sold to FNMA. X X 1 1 X X X X 0 0 0 MICHAEL G ELFSTROM CFO 196907 0 49175 0 0 0 0 0 28169 0 274251 0 0 0 ROBERT ARBUCKLE COA 129280 0 23178 0 0 0 0 0 24987 0 177445 0 0 0 MARK R NELSON President 286156 0 78072 0 7854 0 0 0 29034 0 401116 0 0 0 Schedule J, Part I, Line 1a The mode of travel and class of service, i.e. Coach, First Class, Inside or Outside Cabins, will be based on the budget allocation for such travel. The volunteers will be authorized with companion travel as approved by the NCUA and the WA DFI and will be in compliance with all laws and regulations. The value of companion travel will be reported to the IRS on a Form 1099-MISC if the amount of the travel is over $600. MARK NELSON CURRENT OFFICER SECURED SPLIT DOLLAR INSURANCE X 1000000 1132775 0 1 1 MICHAEL ELFSTROM CURRENT OFFICER SECURED SPLIT DOLLAR INSURANCE X 950000 964461 0 1 1 2097236 Schedule L, Part II Copy of the QUALSTAR CREDIT UNION SECURED SPLIT-DOLLAR AGREEMENT is available upon request for: QUALSTAR CREDIT UNION and MARK NELSON are parties to the Secured Split-Dollar Agreement dated March 1, 2012 - the Agreement for $1,000,000. This Amendment No.1 is effective October 1, 2012. 1. The following is added to the end of Section 7.2.3. If forfeiture of the Executive's borrowing rights under Section 4.2 is for voluntary separation from service before the 10th anniversary of the Accumulation Policys issue date, this Agreement will terminate as of the first day after the separation from service that the sum of the Funding Account balances and the cash surrender value of the Policies equals or exceeds the Outstanding Balance and the Credit Union recovers the Outstanding Balance. Notwithstanding Sections 3.1.4 and 5.2, if the Executive dies after such separation from service but before the Credit Union receives the Outstanding Balance, any remaining Funding Account balances and all death proceeds of the Policies belong, and will be paid, to the Credit Union. 2. Except as modified above, the Agreement remains in full force and effect. In addition, Copy of the QUALSTAR CREDIT UNION SECURED SPLIT-DOLLAR AGREEMENT is available upon request for: QUALSTAR CREDIT UNION and MICHAEL ELFSTROM are parties to the Secured Split-Dollar Agreement dated April 27, 2016 - the Agreement for $950,000, similar to above. Form 990, Part VI, Section A, Line 6 Each person seeking membership must be qualified for membership and must submit an application to the credit union. Each application shall be acted upon by the Board or, if the Board so chooses, membership representatives may be trained and authorized to approve applications. The applicant shall become a member when such application has been approved by the Board, or if applicable, the membership representatives and upon his/her subscription to at least one credit union product, or deposit, or loan account. Form 990, Part VI, Section A, Line 7a A Nominating Committee, made up of not fewer than three members, nominates at least one member for each Board vacancy. The Board secretary shall notify in writing all members eligible to vote at least 75 days prior to the annual meeting and that nominations for vacancy may also be made by petition signed by one percent of the members with a minimum of 20 and a maximum of 500. The written notice shall indicate that the election will not be conducted by ballot and there will be no nomination from the floor when there is only one nominee for each position to be filled. All elections shall be determined by plurality of vote and shall be by ballot except where there is only one nominee for each position to be filled. Form 990, Part VI, Section B, Line 11b The Form 990 was prepared by the VP of Finance and reviewed by the CFO prior to submission to the IRS. Both the VP of Finance and CFO are Certified Public Accountants. Form 990, Part VI, Section B, Line 12c Disclosure is required of all potential conflicts of interest, either business or personal relationships with employees, members, vendors, business associates, or competitors of the credit union. The credit union will also retain on file all written reports of any disclosures made regarding the Credit Union Code of Conduct. Employees, officers, and Directors of the credit union are required to acknowledge that they have read and understand the Code of Conduct and any subsequent modifications, and that they agree to comply with this policy. Employees and officers are required to disclose this information annually. Form 990, Part VI, Section B, Line 15 The organization uses a Compensation Committee to establish the CEO compensation. The committee also uses an independent compensation consultant, written employment contract, and compensation survey or study. Form 990, Part VI, Section C, Line 19 This information would be available upon request. Form 990, Part IX, Line 11g Other professional and outside services to support the credit union such as courier and mailing services, card network charges, and shared branching network charges. Form 990, Part XI, Line 9 Equity acquired in merger with Puget Sound Federal Credit Union