2017-07-14T12:12:40-05:00 2016-12-31 910189318 Moss Adams LLP 805 SW Broadway Ste 1200 Portland OR 97205 990 2016-01-01 910683062 Washington State Employees Credit Union WASH 3609437911 PO Box WSECU Olympia WA 985070099 Kevin Foster-Keddie President/CEO 3609437911 2017-07-13 1 Wendy Campos P00448102 5032421447 2017-07-12 12.129.7.100 2017-07-13 10:51:57 PD P DA39A3EE5E6B4B0D3255BFEF95601890AFD80709 D054F4EF093A01A5BE70ECC55B3094991D2B5D96 2016 2021-01-29 14:40:06Z Kevin Foster-Keddie PO Box WSECU Olympia WA 985070099 196574831 0 X www.wsecu.org X 1957 WA To provide services to members which are mandated in the credit union act to charters and to provide a means whereby members can provide each other with needed financial services. 9 9 722 36 810292 -1809004 0 0 144021675 149007284 3272540 4990935 769472 896422 148063687 154894641 0 63500 0 0 47225700 51794392 0 0 0 79747676 81457654 126973376 133315546 21090311 21579095 2399115293 2543164364 2149328326 2273437613 249786967 269726751 To provide services to members which are mandated in the credit union act to charters and to provide a means whereby members can provide each other with needed financial services. 0 0 SAVINGS AND CHECKING: WE KNOW DIFFERENT MEMBERS HAVE DIFFERENT NEEDS FROM THEIR CHECKING AND SAVINGS ACCOUNTS. THAT'S WHY WE OFFER VARIETY. WSECU CAN HELP MEMBERS MAKE MANAGING THEIR BUDGETS SIMPLER AS THEY WORK TOWARD THEIR FINANCIAL GOALS. WE OFFER DIFFERENT CHECKING OPTIONS, ALL OF WHICH COME WITH NO MAINTENANCE FEES AND NO PER-CHECK CHARGES. MEMBERS CAN ACCESS THEIR ACCOUNTS ANY TIME OF THE DAY OR NIGHT WITH THEIR DEBIT OR ATM CARD. WSECU IS A PROUD PARTNER OF THE CO-OP NETWORK, OFFERING MEMBERS FREE ACCESS TO 25,000 ATMS ACROSS THE UNITED STATES. Loans: From the cars members drive to the untapped equity in their homes, WSECU loans are designed to give members the utmost buying power and payment flexibility. Backed with our outstanding service, there is simply no better place to go for members' lending needs. Credit cards: WSECU provides a variety of credit card options to meet the varied lifestyles of our members. Each option includes the value of a variable interest rate, no annual fee, plus the cost-savings benefit of a 25-day grace period on new purchases - and the purchasing power of the most recognized credit card in the world. Each of our credit card options provides unique features and benefits. From higher spending limits to rewards programs to first-time cardholders establishing credit, WSECU members have an exciting range of credit card options from which to choose. 0 0 0 0 0 0 0 0 0 1 1 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 46662 0 1 722 1 1 1 0 0 0 0 0 X 9 9 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 X KEVIN FOSTER-KEDDIE PRESIDENTCEO 3609437911 PO BOX WSECU OLYMPIA WA 98507 marcus glasper Board Chair 1.00 X X 0 0 0 carole washburn Board Vice Chair 1.00 X X 0 0 0 mike stevenson Board Secretary 1.00 X X 0 0 0 Tracy Guerin Board member 1.00 X 0 0 0 doug mah Board member 1.00 X 0 0 0 rita koontz Board member 1.00 X 0 0 0 ginny dale Board member 1.00 X 0 0 0 fred olson Board member 1.00 X 0 0 0 randy hodgins Board member 1.00 X 0 0 0 Kevin Foster-Keddie president/ceo 40.00 X 1044386 0 35777 randy gunderson chief financial officer 40.00 X 507699 0 34791 mark allen chief credit officer 40.00 X 378371 0 18250 benjamin morales chief technology & operations officer 40.00 X 503805 0 222350 jennifer statham chief brand technologist 40.00 X 411655 0 30069 gary swindler chief operating officer 40.00 X 478714 0 195205 sharon whitehead chief administrative officer 40.00 X 485414 0 202581 Cynthia Schaumburg Home Loan Consultant 40.00 X 242696 0 39337 richard ladd vp commercial lending 40.00 X 204859 0 38349 david luchtel vp it infrastructure & operations 40.00 X 212169 0 40639 rohit srivastava vp business technology 40.00 X 197414 0 31819 Tanya Hill Home Loan Consultant 40.00 X 206296 0 32526 linda hollen chief brand officer 40.00 X 301435 0 3329 5174913 0 925022 74 1 1 0 BALFOUR BEATTY CONSTRUCTION LLC 415 1st Ave N 400 SEATTLE WA 981094744 BRANCH CONSTRUCTION 2462307 KAYE SMITH PO BOX 956 Renton WA 98057 Statement/Forms printer & mailer 2315441 Velocity solutions Inc PO Box 460939 Fort Lauderdale FL 333460939 ARS-Account revenue Solution 999972 KIDDER MATHEWS 330 UNION AVE SE OLYMPIA WA 98501 PROPERTY MANAGEMENT 975180 SKB Architects 2333 3RD AVE Seattle WA 98121 Design/Architecture 956137 88 member loan interest 522100 99773648 99765870 7778 service fees/charges 522100 43264019 42595996 668023 Gain on sale of loans 522100 4969368 4812077 157291 Mortgage Servicing Rig 522100 1000249 1039377 -39128 149007284 5100744 16328 5084416 851589 0 851589 851589 851589 40940964 629417 40838379 841811 102585 -212394 -109809 -197427 87618 Other income 522100 44833 44833 44833 154894641 148015893 810292 6068456 63500 4549068 33801722 2147218 8298610 2997774 288047 129933 5495015 4098999 3641256 842370 4421140 742515 383372 6435985 7695342 450960 Loan Loss Provision 25757466 Visa and ATM 5778113 Card and Terminal 3905238 Call Center 152326 11239577 133315546 22050144 22323997 12910385 17271345 6582227 6995902 1815528139 1947197966 3038754 4068157 140868016 58751550 81279760 82116466 213803413 248298513 184560692 153035564 59361779 61856454 2399115293 2543164364 43626440 49077435 100000000 0 2005701886 2224360178 2149328326 2273437613 X 0 0 0 0 249786967 269726751 249786967 269726751 2399115293 2543164364 X 21579095 -1517673 -121638 X 0 1 X 1 0 0 0 0 14627385 14627385 72213961 20728008 51485953 10433986 6440817 3993169 18136593 12881800 5254793 25456091 18700925 6755166 82116466 Other investments 153035564 C 153035564 Members' Share and Savings Accounts 2224360178 2224360178 X Part X, Line 2: FIN 48 (ASC 740) uncertain tax positions financial statement footnote - The Credit Union recognizes the tax benefit from uncertain tax positions, if any, only if it is more likely than not that the tax positions will be sustained on examination by the tax authorities, based on the technical merits of the position. The tax benefit is measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. The Credit Union recognizes interest accrued and penalties related to unrecognized tax benefits as an administrative expense. The Credit Union had no unrecognized tax benefits at December 31, 2016 or 2015. During the years ended December 31, 2016 and 2015, the Credit Union recognized no interest and penalties. 1 Scholarships to 2-yr college/vocational school 9 13500 Scholarships to 4-yr undergraduate/graduate programs 20 50000 Part I, Line 2: The WSECU Scholarship Committee is made up of one appointed Board member as Chair and up to two additional board members. Remaining committee members will be made up of member volunteers. WSECU partners with an outside vendor to manage the online application process. Scoring of applicants is based equally on the individual's academic record, financial need, community service/school activities, and essays/letters of recommendation. X X 1 1 X X X X 0 1 0 Kevin Foster-Keddie president/ceo 581619 0 389990 0 72777 0 22444 0 13333 0 1080163 0 0 0 randy gunderson chief financial officer 260566 0 73819 0 173314 0 22585 0 12206 0 542490 0 174167 0 mark allen chief credit officer 79415 0 67378 0 231578 0 12477 0 5773 0 396621 0 0 0 benjamin morales chief technology & operations office 249477 0 73866 0 180462 0 200098 0 22252 0 726155 0 177573 0 jennifer statham chief brand technologist 267641 0 143200 0 814 0 11382 0 18687 0 441724 0 0 0 gary swindler chief operating officer 263372 0 65135 0 150207 0 173318 0 21887 0 673919 0 150793 0 sharon whitehead chief administrative officer 244752 0 69907 0 170755 0 192122 0 10459 0 687995 0 169597 0 Cynthia Schaumburg Home Loan Consultant 64688 0 0 0 178008 0 20600 0 18737 0 282033 0 0 0 richard ladd vp commercial lending 167981 0 27092 0 9786 0 17273 0 21076 0 243208 0 0 0 david luchtel vp it infrastructure & operations 179451 0 33099 0 -381 0 18067 0 22572 0 252808 0 0 0 rohit srivastava vp business technology 117437 0 28107 0 51870 0 16772 0 15047 0 229233 0 0 0 Tanya Hill Home Loan Consultant 36282 0 0 0 170014 0 17549 0 14977 0 238822 0 0 0 linda hollen chief brand officer 0 0 39167 0 262268 0 3329 0 0 0 304764 0 262268 0 Part I, Line 1a Travel for companions is available to board members, CEO and Senior VPs. Only the CEO has a discretionary spending account. All of these items are treated as taxable compensation to the director, officer or key employee. Part I, Line 4b The following officers and key employees participated in a supplemental non-qualified retirement plan, including their contributions and distributions for 2016: Randy Gunderson, Chief Financial Officer - Distributions $174,167 Benjamin Morales, Chief Technology & Operations Officer - Distributions $177,573 Benjamin Morales, Chief Technology & Operations Officer - Contributions $177,573 Gary Swindler, Chief Operating Officer - Distributions $150,793 Gary Swindler, Chief Operating Officer - Contributions $150,793 Sharon Whitehead, Chief Administrative Officer - Contributions $169,597 Sharon Whitehead, Chief Administrative Officer - Contributions $169,597 Linda Hollen, Chief Brand Officer - Distributions $262,268 Distributions were made from a supplemental non-qualified retirement plan that terminated at December 31, 2016 with amounts paid out in 2017. All contributions listed were made to a new plan effective January 1, 2017. Form 990, Part VI, Section A, line 6 Credit union members have the right to elect the members of the governing body. The credit union's embers also receive a share of the organization's profits in the form of cash dividends. Form 990, Part VI, Section A, line 7a Credit union members have the right to elect one or more members of the organization's governing body, whether periodically, or as vacancies arise, or otherwise. Form 990, Part VI, Section A, line 7b Members of the credit union have the right to approve the 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 Accounting personnel review Form 990 for accuracy compared to internal reports and make adjustments as necessary under the guidance of our tax accountants. The form is reviewed by the CEO prior to signing of the final draft. The return is available to all members of the board of directors for review. Form 990, Part VI, Section B, line 12c The credit union sends out an annual HR Policies Acknowledgment to all staff and requires acknowledgment from each person each year, as well as upon hire. This Policies Acknowledgment includes the WSECU Code of Conduct, which covers the conflict of interest policy. The conflict of interest policy is enforced in various ways. Depending on the particular conflict for employment conflicts, the credit union requires a notification to HR of any second jobs and approval by the employee's leader. For potential conflicts of employees working with relatives, the credit union requires a Senior Management approval before they hire, promote, or transfer anyone who might be working with a relative of a WSECU employee. If the organization is notified of other types of conflicts, they deal with them as they arise, involving company leadership. Conflict questionnaires are signed annually by the board of directors. If a potential conflict is identified, it is reported to the board, which then reviews all information and determines if an actual conflict exists. Directors with the potential conflict recuse themselves from voting on any related issues. The organization's policy has assisted the credit union in prohibiting conflicts before they impact the company. Form 990, Part VI, Section B, line 15 WSECU USES A THIRD-PARTY, OUTSIDE CONSULTANT TO EVALUATE EXECUTIVE COMPENSATION. THE REVIEW THAT THE CONSULTANT COMPLETES INCLUDES A REASONABLENESS TEST, MARKET (COMPARABLE) DATA FOR THE FINANCIAL SERVICES/CREDIT UNION INDUSTRY AND THE GEOGRAPHIC AREA, AND INCLUDES THE ENTIRE SALARY AND BENEFITS PACKAGE. PERIODICALLY, HUMAN RESOURCES USES INDUSTRY AND REGIONAL EXECUTIVE SALARY SURVEYS TO VERIFY EXECUTIVE COMPENSATION. THE CEO CONTRACT, INCLUDING COMPENSATION, IS REVIEWED BY THE WSECU BOARD OF DIRECTORS. THE REVIEW LAST TOOK PLACE ON DECEMBER 31, 2016. Form 990, Part VI, Section C, line 19 The credit union's governing documents, conflict of interest policy and financial statements are not made available to the public. Form 990, Part XI, line 9: Change in OCI -102,585. PASSTHROUGH BOOK/TAX DIFFERENCE -19,053. WSECU SERVICE COMPANY LLC PO BOX WSECU OLYMPIA WA 98507 473383761 HOLDING COMPANY WA 3269702 11772843 washington state employees credit union ONE WASHINGTON FINANCIAL LLC pO BOX WSECU oLYMPIA WA 98507 753134955 LOAN SERVICING WA 2225033 8741068 WSECU SERVICE COMPANY LLC QCASH FINANCIAL LLC pO BOX WSECU oLYMPIA WA 98507 473396087 SOFTWARE AS A SERVICE (SaaS) WA 1039980 2146455 WSECU SERVICE COMPANY LLC