2017-10-04T17:19:49-05:00 2016-12-31 910189318 Moss Adams LLP 2707 Colby Avenue Suite 801 Everett WA 98201 990 2016-01-01 910593941 Salal Credit Union SALA 2062989394 1515 Dexter Avenue North Seattle WA 98109 russell e rosendal PRESIDENT/CEO 2608267603 2017-09-21 1 Wendy Campos P00448102 4252597227 2017-09-21 50.35.121.79 2017-09-21 14:27:39 PD P DA39A3EE5E6B4B0D3255BFEF95601890AFD80709 866574987CA565ABE6CC9265146BBE3F5B9624AD 2016 2021-01-29 14:40:06Z RUSSELL E ROSENDAL 1515 Dexter Avenue North Seattle WA 98109 28869950 0 X www.salalcu.org X 1948 WA THE MISSION OF SALAL CREDIT UNION IS TO MAKE MONEY MANAGEMENT EASIER FOR MEMBERS. 9 9 220 15 245779 -229703 0 0 21726820 24663685 3853126 1174318 53178 179782 25633124 26017785 59450 68240 0 0 9649635 11403551 0 0 0 10677659 10523003 20386744 21994794 5246380 4022991 433959684 495210042 394885986 452030870 39073698 43179172 THE MISSION Of SALAL CREDIT UNION IS TO MAKE MONEY MANAGEMENT EASIER FOR MEMBERS. 0 0 SALAL CREDIT UNION IS A STATE CHARTERED NON-PROFIT COOPERATIVE CREDIT UNION OFFERING ITS MEMBERS A VARIETY OF FINANCIAL SERVICES DESIGNED TO PROMOTE SAVING AND PROVIDE CREDIT AT FAIR AND REASONABLE RATES OF INTEREST. SALAL CREDIT UNION CURRENTLY SERVES 35,590 MEMBERS; HOWEVER THERE ARE APPROXIMATELY 6,724,540 POTENTIAL MEMBERS IN THE GREATER PUGET SOUND COMMUNITY. SALAL CREDIT UNION OFFERS FINANCIAL LITERACY/EDUCATION PROGRAMS TO BOTH MEMBERS AND NON-MEMBERS. THESE EDUCATIONAL PROGRAMS ARE DESIGNED TO HELP INDIVIDUALS IN BUDGETING, SAVING FOR MAJOR PURCHASES, COLLEGE, AND RETIREMENT AND OVERALL FINANCIAL MANAGEMENT. SALAL CREDIT UNION ALSO SPONSORS FINANCIAL COUNSELING PROGRAMS TO HELP MEMBERS BETTER MANAGE THEIR CREDIT. FINALLY, SALAL CREDIT UNION IS A SPONSORING MEMBER OF THE SEATTLE AREA "CREDIT UNIVERSITY", A PROGRAM DESIGNED TO EDUCATE HIGH SCHOOL STUDENTS ABOUT MONEY MANGEMENT. SALAL CREDIT UNION IS ACTIVE IN THE COMMUNITY BY SPONSORING COMMUNITY ORIENTED PROJECTS SUCH AS WASHINGTON BUSINESS WEEK, (A WEEK LONG TRAINING/DEVELOPMENT PROGRAM FOR 15-18 YEAR OLDS), SCHOLARSHIPS FOR HIGH SCHOOL STUDENTS LOOKING TO FURTHER THEIR STUDIES IN THE HEALTHCARE FIELD, CONTINUING EDUCATION SCHOLARSHIPS FOR NURSING STUDENTS, AND CONTRIBUTING TO THE FUNDRAISING EFFORTS OF SEVERAL WORTHWHILE ORGANIZATIONS SUCH AS HEALTHPOINT AND INTERNATIONAL COMMUNITY HEALTH SERVICES (ICHS). 0 0 0 0 0 0 0 1 0 1 0 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 1 5979 0 1 220 1 1 1 0 0 0 0 0 X 9 9 0 0 0 0 1 1 1 1 1 0 0 0 1 1 1 1 1 1 1 0 CA X GEOFFREY T SWARTS 2068267600 1515 DEXTER AVENUE NORTH SEATTLE WA 98109 Dick Woo BOARD Chairman 1.00 X X 0 0 0 Joe LePla BOARD Vice Chair 1.00 X X 0 0 0 Lisa Johnson BOARD Secretary 1.00 X X 0 0 0 Laura McMillan Board Member 1.00 X 0 0 0 SHARON DOOLEY BOARD MEMBER 1.00 X 0 0 0 Jamie Lee BOARD MEMBER 1.00 X 0 0 0 Annette Murphy Board memBER 1.00 X 0 0 0 Alan Lederman Board Member 1.00 X 0 0 0 Brian Luong BOARD MEMBER 1.00 X 0 0 0 Helen Harte Board Member (through 10/16) 1.00 X 0 0 0 Russell Rosendal President/CEO 47.00 X 404339 0 249962 Randy Cloes Senior Vice President - CFO 47.00 X 42613 0 0 Craig Wheaton SVP- CFO (through 9/16) 47.00 X 27416 0 1326 Robert Schweigert SVP - Chief Lending Officer 47.00 X 210942 0 15569 Troy-Skott Pope SVP - Retail Financial Services 47.00 X 204934 0 12123 Sheryl Kirchmeier SVP - Chief Marketing Officer 47.00 X 196239 0 7786 Geoffrey Swarts SVP-Chief Information & Risk Officer 47.00 X 198179 0 15472 Carmella Houston VP - Business Services 40.00 X 150841 0 13211 Tara Seever VP - Human Resources Admin 40.00 X 135226 0 12256 Debbie Delisle Sr. Mortgage Loan Officer 40.00 X 363769 0 11189 Michael Bishop VP - Branch Experience 40.00 X 141248 0 12835 William Van Nostran Sr. Mortgage Loan Officer 40.00 X 323142 0 12897 2398888 0 364626 16 0 1 0 Merit Construction Northwest 3020 S 96th St Lakewood WA 98499 Construction Services 812350 Jack Henry & ASSOCIATES INC PO BOX 609 MONETT MO 65708 DATA PROCESSING 479789 GARDA CL NORTHWEST INC 3209 MOMENTUM PLACE CHICAGO IL 60693 Security 396020 Electric Lightwave BDA Integra PO Box 2966 Milwaukee WI 53201 Telecom Services 274638 cook security group 8214 s 192nd st kent WA 98032 atm maintenance 179134 14 interest on MEMBER LOANS 522291 18248568 18248568 service charges & fee income 522200 4781751 4724238 57513 NET GAINS ON SALES OF LOANS 523000 1038949 1038949 other non-interest income 522299 594417 434078 160339 24663685 1164417 1164417 256811 104956 151855 151855 151855 2757110 2747209 9901 9901 9901 SUBSIDIARY INVESTMENT INCOME 900099 27927 27927 27927 26017785 24597688 245779 1174318 68240 1586901 7808464 170838 1101713 735635 61818 128461 247486 67323 367699 735671 628035 1030725 184640 1283009 1083907 85412 PROVISION FOR LOAN LOSS 1865297 TRANSACTION EXPENSEs 1163472 Credit Union OPERATING 813560 DATA PROCESSING 216294 560194 21994794 2863930 4385593 6982619 26269967 326616424 355373454 507069 654235 34621216 8725682 4139594 25895534 83530399 72769923 2590949 2903628 6728700 6957708 433959684 495210042 8030148 10850206 23000000 36833543 363855838 404347121 394885986 452030870 X 0 0 0 0 39073698 43179172 39073698 43179172 433959684 495210042 X 4022991 77177 5306 X 0 1 X 1 0 0 0 8435762 8435762 16412651 2356192 14056459 2415527 1021485 1394042 7357276 5348005 2009271 25895534 MEMBER SHARES 404347121 404347121 X Part X, Line 2: THE CREDIT UNION IS EXEMPT BY STATUTE FROM FEDERAL INCOME TAXES UNDER THE PROVISIONS OF SECTION 501 OF THE INTERNAL REVENUE CODE (IRC) OF 1954; HOWEVER, THE CREDIT UNION'S UNRELATED BUSINESS INCOME IS SUBJECT TO FEDERAL INCOME TAXES. THERE WERE NO SIGNIFICANT INCOME TAXES FOR THE YEARS ENDED DECEMBER 31, 2016 OR 2015. ACCOUNTING PRINCIPLES PRESCRIBE A RECOGNITION THRESHOLD AND MEASUREMENT ATTRIBUTE FOR THE FINANCIAL STATEMENT RECOGNITION AND MEASUREMENT OF A TAX POSITION TAKEN OR EXPECTED TO BE TAKEN IN A TAX RETURN. THE CREDIT UNION ADOPTED THE PROVISIONS OUTLINED IN THIS GUIDANCE ON JANUARY 1, 2009. THE CREDIT UNION HAD NO UNRECOGNIZED TAX POSITIONS THAT REQUIRED ADJUSTMENT TO THE JANUARY 1, 2009, BEGINNING BALANCE OF UNDIVIDED EARNINGS. THE CREDIT UNION HAD NO UNRECOGNIZED TAX POSITIONS AT DECEMBER 31, 2016 OR 2015. IT IS THE CREDIT UNION'S POLICY TO RECORD ANY PENALTIES OR INTEREST ARISING FROM FEDERAL OR STATE TAXES AS A COMPONENT OF NONINTEREST EXPENSE. THE CREDIT UNION FILES EXEMPT ORGANIZATION AND UNRELATED BUSINESS INCOME TAX RETURNS WITH THE FEDERAL JURISDICTION. 1 FOUNDATION FOR PRIVATE ENTERPRISE EDUCATION 33305 1ST WAY S STE B-212 FEDERAL WAY WA 98003 911048245 501(C)(3) 8500 $1,000 fundraising event; $7,500 scholarships for healthcare-focused camp Healthpoint 955 Powell Avenue SW REnton WA 98057 910884412 501(c)(3) 6500 Sponsorship of annual fundraising event King County Nurses Association 4649 sunnyside ave n room 352 seattle WA 98103 910282054 501(C)(3) 19000 $12,000 for nurse educational scholarship program, $2,000 for annual meeting salal foundation 1515 dexter ave n seattle WA 98109 463476338 501(C)(3) 10000 TO SUPPORT NO-COST OR LOW-COST HEALTHCARE ORGANIZATIONS 4 0 Part I, Line 2: THE ORGANIZATION OFFERS A SCHOLARSHIP OPPORTUNITY TO PARTICIPANTS IN THE WASHINGTON BUSINESS WEEK HEALTHCARE PATHWAY HELD ANNUALLY IN WESTERN WASHINGTON. APPLICANTS AND ESSAYS ARE REVIEWED BY SALAL EMPLOYEES AS PART OF THE SELECTION PROCESS. GRANTS ARE ALSO PROVIDED TO THE KING COUNTY NURSES ASSOCIATION TO SUPPORT NURSES WHO APPLY FOR COMMNITY SUPPORT ACTIVITIES. THE NURSES WHO RECIEVE THE FUNDS ARE VETTED BY THE ASSOCIATION. X X 1 1 X X 0 1 0 Russell Rosendal President/CEO 304070 0 80255 0 20014 0 224650 0 25312 0 654301 0 0 0 Robert Schweigert SVP - Chief Lending Officer 164175 0 44700 0 2067 0 8355 0 7214 0 226511 0 0 0 Troy-Skott Pope SVP - Retail Financial Services 157708 0 42000 0 5226 0 4909 0 7214 0 217057 0 0 0 Sheryl Kirchmeier SVP - Chief Marketing Officer 157177 0 36600 0 2462 0 7786 0 0 0 204025 0 0 0 Geoffrey Swarts SVP-Chief Information & Risk Officer 159596 0 36600 0 1983 0 4920 0 10552 0 213651 0 0 0 Carmella Houston VP - Business Services 125928 0 23914 0 999 0 5997 0 7214 0 164052 0 0 0 Debbie Delisle Sr. Mortgage Loan Officer 3364 0 357059 0 3346 0 3975 0 7214 0 374958 0 0 0 Michael Bishop VP - Branch Experience 110807 0 26678 0 3763 0 5621 0 7214 0 154083 0 0 0 William Van Nostran Sr. Mortgage Loan Officer 2846 0 318951 0 1345 0 9009 0 3888 0 336039 0 0 0 Part I, Line 1a THE ORGANIZATION PAYS FOR TRAVEL OF COMPANIONS OF THE BOARD OF DIRECTORS AND CEO. The organization pays HEALTH CLUB DUES for the CEO AND COO ATHLETIC CLUB MEMBERSHIP. THESE ITEMS ARE treated as taxable income to the INDIVIDUALS AS APPROPRIATE. Part I, Line 4b The Credit Union has a supplemental executive retirement plan for the Chief Executive Officer whereby the Credit Union makes scheduled monthly contributions to investment accounts and the Chief Executive Officer will be entitled to the balance of the investment accounts upon his 65th birthday (December 2023), subject to certain conditions in the agreement. For the year ending December 31, 2016 the Credit Union contributed $198,647 to this plan. Form 990, Part VI, Section A, line 6 THE CREDIT UNION'S MEMBERS HAVE RIGHTS TO ELECT THE MEMBERS OF THE GOVERNING BODY. THE CREDIT UNION'S MEMBERS ALSO RECEIVE A SHARE OF THE ORGANIZATION'S PROFITS IN THE FORM OF CASH DIVIDENDS. Form 990, Part VI, Section A, line 7a MEMBERS OF THE CREDIT UNION HAVE THE RIGHT TO ELECT ONE OR MORE MEMBERS OF THE ORGANIZATION'S 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 OF MEMBERS OF THE GOVERNING BODY, AS WELL AS OTHER MATTERS THAT ARE SUBJECT TO THE APPROVAL OF MEMBERS OF THE CREDIT UNION AS THEY OCCUR. Form 990, Part VI, Section B, line 11b FORM 990 IS DRAFTED BY AN EXTERNAL ACCOUNTING FIRM AND COMPANY CONTROLLER AND IS THEN REVIEWED AND APPROVED BY THE CFO. Form 990, Part VI, Section B, line 12c EACH EMPLOYEE IS REQUIRED TO ANNUALLY SIGN AN ETHICS STATEMENT ACKNOWLEDGING THEY HAVE NOT ACCEPTED ITEMS OF VALUE GREATER THAN $20. ADDITIONALLY EXECUTIVE MANAGEMENT AND THE BOARD OF DIRECTORS SIGN AN ADDITIONAL STATEMENT ACKNOWLEDGING THEIR HIGHER STANDARDS. DEPARTMENT MANAGERS ARE RESPONSIBLE FOR MONITORING AND REPORTING ANY VIOLATIONS OF THE CONFLICT OF INTEREST POLICY. Form 990, Part VI, Section B, line 15 THE ORGANIZATION'S HUMAN RESOURCES DEPARTMENT SUBSCRIBES TO TWO ANNUAL FINANCIAL INSTITUTIONS COMPENSATION SURVEYS. COMPENSATION FOR EXECUTIVE OFFICERS IS APPROVED BY THE CEO IN CONSULTATION WITH THE INDEPENDENT EXECUTIVE COMMITTEE OF THE BOARD OF DIRECTORS. COMPENSATION FOR THE CEO IS RECOMMENDED BY THE EXECUTIVE COMMITTEE AFTER REVIEWING MATERIAL PREPARED BY A CONSULTANT HIRED BY THE COMMITTEE. FINAL APPROVAL IS SUBJECT TO FULL BOARD APPROVAL. Form 990, Part VI, Section C, line 19 FINANCIAL STATEMENTS ARE AVAILABLE AT THE ANNUAL MEETING. BALANCE SHEETS ARE POSTED AT EACH BRANCH AND UPDATED MONTHLY. MEMBERS ARE DIRECTED TO THE NCUA WEBSITE FOR ADDITIONAL FINANCIAL INFORMATION. Form 990, Part XI, line 9: SUBSIDIARY INCOME BOOK/TAX DIFFERENCE 5,306. Lending Solutions Northwest LLC 1515 Dexter Avenue North seattle WA 98109 461812634 Auto Lending WA 0 131270 Salal Credit Union SCU HOLDINGS LLC 1515 Dexter Avenue North SEATtle WA 98109 814624261 hold real estate WA 256811 21161059 SAlal Credit Union Salal Foundation 1515 Dexter Ave North Seattle WA 98109 463476338 supports philanthropic activities WA 501(c)(3) Line 10 SALAL CREDIT UNION 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0