2017-11-14T16:59:13-06:00 2016-12-31 910189318 Moss Adams LLP 2707 Colby Avenue Suite 801 Everett WA 98201 990 2016-01-01 910176215 Seattle Metropolitan Credit Union SEAT 2063985561 PO Box 780 Seattle WA 981110780 Michael Quamma SVP CHIEF FINANCIAL OFFICER 2063985857 2017-11-14 1 Wendy Campos P00448102 4252597227 2017-11-14 97.126.125.7 2017-11-14 14:18:22 PS P DA39A3EE5E6B4B0D3255BFEF95601890AFD80709 CF867E6211062D33C5741DCF23E1D04ABCEE821D 2016 2021-01-29 14:40:06Z Michael Quamma PO Box 780 Seattle WA 981110780 77176422 0 X www.smcu.com X 1933 WA A cooperative, organized for the purpose of promoting thrift and savings among its members. 7 7 206 13 107067 -391231 0 0 28547384 31483265 2235509 2087491 0 0 30782893 33570756 20000 20000 0 0 12707524 12776976 0 0 0 13916780 18830131 26644304 31627107 4138589 1943649 664342847 748953281 596906152 680260290 67436695 68692991 X The purpose of this credit union is to promote thrift among its members, to provide financial services and to create a source of credit for them at legitimate rates of interest for provident, productive and educational purposes. 0 0 Seattle Metropolitan Credit Union (SMCU) has been providing services to its members since 1933. Since its inception, SMCU has considered itself an advocate for its members by providing member-centric financial services and financial literacy education at low or no cost. AS OF DECEMBER 31, 2016, SMCU HAD 45,060 MEMBERS. THESE MEMBERS PARTICIPATED IN 25,782 LOAN AND 88,828 DEPOSIT PRODUCTS. SMCU'S LOAN OFFERINGS INCLUDE A WIDE RANGE OF OPTIONS FROM STANDARD AUTO LOANS, MORTGAGES AND LINES OF CREDIT, TO MORE SEGMENTED PRODUCTS INCLUDING MOTORCYCLES, CLASSIC CARDS, BOATS, RECREATIONAL VEHICLES, AND AIRCRAFT LOANS. SMCU HAS ALSO RECENTLY EXTENDED ITS LOAN PRODUCTS TO INCLUDE BUSINESS LOANS TO QUALIFIED MEMBERS. ALL LOAN PRODUCTS COME IN A VARIETY OF TERMS TO PROVIDE PAYMENT OPTIONS THAT BEST SUIT THE MEMBERSHIP'S NEEDS. MEMBERS HAVE THE SAME VARIETY OF SELECTION ON THE DEPOSIT SIDE OF THE PRODUCT LINE WITH OFFERINGS RANGING FROM BASIC CHECKING AND SAVINGS ACCOUNTS TO IRAS, CERTIFICATES, MONEY MARKETS AND HIGH-YIELD ACCOUNTS. SMCU ALSO OFFERS BUSINESS ACCOUNTS AND INVESTMENT SERVICES THAT ARE DESIGNED TO MAINTAIN THE MEMBER'S BEST INTEREST. AS AN ADVOCATE FOR ITS MEMBERSHIP, SMCU PLACES A HIGH PRIORITY ON EDUCATIONAL RESOURCES. AS A RESULT, SMCU HAS INVESTED IN ONLINE APPLICATIONS TO HELP MEMBERS MAKE DECISIONS RELATED TO PLANNING, BORROWING, BUDGETING AND PROTECTING THEIR CREDIT. LIFE VISION AND MORTGAGE ADVISOR ARE TWO TOOLS OFFERED ON PERSONAL FINANCES AND RESPECTIVES FROM HOME AND FAMILY FINANCE ON CAR BUYING, CREDIT PROTECTION AND BUDGETING. FOR THOSE MEMBERS WHO PREFER TO SPEAK TO SOMEONE IN PERSON, SMCU PROVIDES FREE CREDIT COUNSELING THROUGH "BALANCE," A FINANCIAL FITNESS PROGRAM THAT FOCUSES ON MONEY MANAGEMENT IN ADDITION TO IDENTITY THEFT PREVENTION AND ASSISTANCE. 0 0 0 0 0 0 0 0 0 1 0 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 1 28878 0 1 206 1 1 1 0 0 0 0 0 X 7 7 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 X Michael Quamma 2063985857 PO Box 780 Seattle WA 981110780 Shari Storm Chair 1.00 X X 0 0 0 Todd Boze Vice Chair 1.00 X X 0 0 0 James Fossos Secretary (Jan-Apr) 1.00 X X 0 0 0 Lawrence Metz Secretary 1.00 X X 0 0 0 Jim Yearby Board Member (Jan-Apr) 1.00 X 0 0 0 James Trefry Board Member 1.00 X 0 0 0 Rob Shuler Board Member 1.00 X 0 0 0 Bruce Stedman Board Member 1.00 X 0 0 0 Andrea Fall Zachary Board Member 1.00 X 0 0 0 Sandra Philbrook Board Member (Jan-Apr) 1.00 X 0 0 0 Richard Romero President/CEO 40.00 X 443017 0 60758 Tonita Webb EVP/COO 40.00 X 263562 0 50449 Jason Elliott SVP/Chief Financial Officer 40.00 X 207951 0 42149 Jill Vicente SVP/Chief Marketing Officer 40.00 X 225965 0 46462 Donna Ransier VP Information Technology 40.00 X 176427 0 38990 Lee Pierce VP Lending 40.00 X 156312 0 31391 Brent Richins SVP/Service Operations 40.00 X 165972 0 30997 Erica Erdozain VP Business Lending 40.00 X 158585 0 5809 Judy Quick VP/Internal Audit 40.00 X 102880 0 24901 Marguerite Lauderdale AVP of RE 40.00 X 118808 0 93290 Kari Stenslie AVP/Controller 40.00 X 120363 0 10509 2139842 0 435705 12 0 1 0 Turner Construction Company 830 4th Ave S Suite 300 Seattle WA 98134 Construction Services 6218817 Fiserv PO Box 99924 Grapevine TX 76099 Core System Provider Services 990638 Q2 Software Inc PO Box 205970 Dallas TX 75320 Online Banking Services 644703 DP Inc 19936 Ballinger Way NE Seattle WA 98155 Construction Services 630877 Twenty Four 7 425 NE 9th Ave Portland OR 97232 Brand, Retail and Graphic Design Service 478741 29 Loan Interest Income 522100 22131311 22131311 Interchange Income 522100 3170673 3170673 Fees and charges 522100 2731313 2713480 17833 Net Gain on Loans 522100 1893879 1893879 Other revenue 522100 1556089 1466855 89234 31483265 1740988 1740988 43182925 769244 43002219 603447 180706 165797 346503 346503 33570756 31376198 107067 2087491 X 20000 1743433 8709829 80271 1378478 864965 148801 104582 3605308 838987 1022833 1989461 3851790 69034 181193 1978420 1738500 131004 Provision for loan loss 2142619 Member Awards 518385 Dues & Subscriptions 265442 Shared Branching Expens 200819 42953 31627107 3466862 5654023 74591655 52601055 1612830 2064798 5269040 491566611 563248262 900253 1141031 16981397 8743962 4762975 8237435 74469499 81364645 1160400 1397300 11811762 27975692 664342847 748953281 9536880 11121457 10500000 15000000 576869272 654138833 596906152 680260290 X 0 0 0 0 67436695 68692991 67436695 68692991 664342847 748953281 1943649 -687353 0 X 0 1 X 1 0 5495561 1945450 3550111 10889819 6798512 4091307 596017 596017 8237435 Members' Share Accounts 654138833 654138833 X 33732200 161444 161444 33570756 0 33570756 31627107 0 31627107 0 31627107 Part X, Line 2: ASC 740-10-65, INCOME TAXES, PROVIDES GUIDANCE FOR HOW UNCERTAIN TAX POSITIONS SHOULD BE RECOGNIZED, MEASURED, DISCLOSED AND PRESENTED IN THE FINANCIAL STATEMENTS. THIS REQUIRES THE EVALUATION OF TAX POSITIONS TAKEN OR EXPECTED TO BE TAKEN IN THE COURSE OF PREPARING THE CREDIT UNION'S TAX RETURNS TO DETERMINE WHETHER THE TAX POSITIONS ARE "MORE LIKELY THAN NOT" TO BE SUSTAINED "WHEN CHALLENGED OR "WHEN EXAMINED" BY THE APPLICABLE TAX AUTHORITY. TAX POSITIONS DEEMED TO NOT MEET THE MORE-LIKELY-THAN-NOT THRESHOLD WOULD BE RECORDED AS A TAX EXPENSE AND LIABILITY IN THE CURRENT YEAR. FOR THE YEARS ENDED DECEMBER 31, 2016 AND 2015, MANAGEMENT HAS DETERMINED THAT THERE ARE NO MATERIAL UNCERTAIN TAX POSITIONS, AND, ACCORDINGLY, THE CREDIT UNION HAS NOT RECORDED A LIABILITY FOR THE PAYMENT OF INTEREST OR PENALTIES. 1 SCHOLARSHIPS 10 20000 Part I, Line 2: SEATTLE METROPOLITAN CREDIT UNION AWARDED SCHOLARSHIPS TO MEMBER-APPLICANTS SEEKING HIGHER EDUCATION. THE SCHOLARSHIP PROGRAM HONORS THE CREDIT UNION'S FOUNDER, TONY MARINO, AND HIS COMMITMENT TO THE CREDIT UNION AND COMMUNITY. All SMCU members or dependent children of members are eligible for the scholarship program with the exception of Board Directors, children of either Board Directors or Scholarship Committee Members, and previous scholarship winners. Scholarships are awarded based on academic standing, financial need, and extracurricular activities and/or employment. X 1 1 X X 0 1 0 Richard Romero President/CEO 361301 0 70532 0 11184 0 47126 0 13632 0 503775 0 0 0 Tonita Webb EVP/COO 233004 0 27809 0 2749 0 35198 0 15251 0 314011 0 0 0 Jason Elliott SVP/Chief Financial Officer 185783 0 20800 0 1368 0 26144 0 16005 0 250100 0 0 0 Jill Vicente SVP/Chief Marketing Officer 198569 0 24691 0 2705 0 31292 0 15170 0 272427 0 0 0 Donna Ransier VP Information Technology 159378 0 15300 0 1749 0 23467 0 15523 0 215417 0 0 0 Lee Pierce VP Lending 143794 0 11817 0 701 0 19639 0 11752 0 187703 0 0 0 Brent Richins SVP/Service Operations 150071 0 14167 0 1734 0 22172 0 8825 0 196969 0 0 0 Erica Erdozain VP Business Lending 144585 0 14000 0 0 0 5809 0 0 0 164394 0 0 0 Marguerite Lauderdale AVP of RE 113452 0 5356 0 0 0 93290 0 0 0 212098 0 0 0 Part I, Line 1a Travel of companions is provided to board members and other volunteers when attending approved educational forums and conferences. Amounts reimbursed for companion travel are treated as taxable. Part I, Line 4b 457(F) AND 457(B) NONQUALIFIED DEFERRED COMPENSATION PLANS - EFFECTIVE FEBRUARY 2013, THE CREDIT UNION ENTERED INTO A DEFERRED COMPENSATION AGREEMENT WITH RICHARD ROMERO THAT PROVIDES BENEFITS PAYABLE TO THIS EMPLOYEE IF THE EMPLOYEE REMAINS EMPLOYED BY THE CREDIT UNION. IF THIS EMPLOYEE BECOMES DISABLED, OR AT THE TIME OF DEATH OR CHANGE IN CONTROL OF EMPLOYER, ACCRUED BENEFITS ARE IMMEDIATELY PAYABLE; HOWEVER, THE BENEFITS ARE SUBJECT TO FORFEITURE IF EMPLOYMENT IS TERMINATED FOR CAUSE. THE ACCRUED LIABILITY RELATED TO THIS AGREEMENT WAS $0 and $98,400 AS OF DECEMBER 31, 2016 AND 2015, RESPECTIVELY. THIS AGREEMENT WAS RESCINDED IN SEPTEMBER 2016. Effective September 2016, the Credit Union entered into a deferred compensation agreement with certain executives that provides benefits payable to these employees if they remain employed by the Credit Union based on a cliff vesting schedule. If these employees become disabled, or at the time of death or change in control of employer, accrued benefits are immediately payable; however, the benefits are subject to forfeiture if employment is terminated for cause. The accrued liability related to this agreement was $154,981 as of December 31, 2016. Richard Romero PRESIDENT/CEO EXECUTIVE COMPENSATION X 2400000 2369040 0 1 1 Tonita Webb EVP/COO EXECUTIVE COMPENSATION X 1600000 1600000 0 1 1 Jill Vicente SVP/CHIEF MARKETING OFFICER EXECUTIVE COMPENSATION X 1300000 1300000 0 1 1 5269040 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 REGULATIONSSECTION 1.782-15. Form 990, Part VI, Section A, line 6 Membership is open to anyone who lives or works in the state of Washington including: City of Seattle employees, employees of partner select employer groups and any person related to a current member by blood, marriage (including domestic partners), or adoption, regardless of where that person lives. Form 990, Part VI, Section A, line 7a THE GOVERNING BOARD OF SEATTLE METROPOLITAN CREDIT UNION IS COMPRISED OF VOLUNTEER MEMBERS WHO ARE DIRECTLY ELECTED BY ITS MEMBERS. EACH MEMBER OF THE GOVERNING BOARD SERVES FOR A PERIOD AS PRESCRIBED BY OUR BY-LAWS. Form 990, Part VI, Section A, line 7b AT THE END OF EACH TERM OF THE BOARD MEMBERS, ELECTIONS ARE HELD AND BOARD MEMBERS ARE VOTED BY THE MEMBERS OF THE CREDIT UNION PURSUANT TO ITS BY-LAWS. MEMBER VOTES ARE ALSO REQUIRED TO RATIFY DECISIONS DEALING WITH REORGANIZATIONS AS IN THE CASE OF MERGER OR DISSOLUTION. Form 990, Part VI, Section B, line 11b MANAGEMENT WILL REVIEW THE 990 BASED ON THE INFORMATION PROVIDED TO OUR CPA. A COPY OF THE 990 WILL BE PRESENTED TO THE BOARD OF DIRECTORS FOR THEIR FINAL APPROVAL. Form 990, Part VI, Section B, line 12c EMPLOYEES SIGN ANNUALLY THAT THEY HAVE REVIEWED THE CONFLICT OF INTEREST POLICY. THE INTERNAL AUDIT DEPARTMENT AND MANAGERS MONITOR TO ENSURE ANY CONFLICTS OF INTEREST ARE IDENTIFIED. DIRECTORS AND MEMBERS OF COMMITTEES ARE REQUIRED TO DISCLOSE CONFLICTS OF INTEREST AND POTENTIAL CONFLICTS OF INTEREST, INCLUDING THOSE IN SITUATIONS IN WHICH THEY MAY BE INADVERTENTLY PLACED, AS A RESULT OF BUSINESS OR PERSONAL RELATIONSHIPS WITH MEMBERS, SUPPLIERS, BUSINESS ASSOCIATES, OR COMPETITORS OF THE CREDIT UNION. DIRECTORS AND MEMBERS OF COMMITTEES WILL AVOID ANY INTEREST OR ACTIVITY THAT IS IN CONFLICT WITH THE CONDUCT OF THEIR OFFICIAL DUTIES. DIRECTORS AND MEMBERS OF COMMITTEES WILL RECUSE THEMSELVES FROM CONSIDERATION OF ANY CONTRACT, TRANSACTION OR RELATIONSHIP IN WHICH THEY OR THEIR FAMILY MEMBERS HAVE AN INTEREST. Form 990, Part VI, Section B, line 15 THE HUMAN RESOURCES DEPARTMENT PERFORMS AN ANNUAL SALARY MARKET ANALYSIS AND THE BOARD CONDUCTS A REVIEW OF THE CEO'S SALARY AND ADJUSTS THEIR SALARY BASED UPON PERFORMANCE. THIS REVIEW PROCESS WAS LAST UNDERTAKEN IN 2016. Form 990, Part VI, Section C, line 19 The unaudited internal financial statements are posted AT EVERY BRANCH MONTHLY, AND THE AUDITED FINANCIAL STATEMENTS are provided TO THE MEMBERS AT THE ANNUAL MEETING AND ARE POSTED ON OUR WEBSITE. THE GOVERNING DOCUMENTS AND THE CONFLICTS OF INTEREST POLICIES ARE generally NOT PROVIDED TO THE GENERAL PUBLIC, unless a specific inquiry is made. Form 990, Part IX, line 11g Consulting Fees 903,793. Processing & service fees 2,701,515.