2016-11-14T14:37:09-06:00 2015-12-31 410746749 CLIFTONLARSONALLEN LLP 20 E THOMAS RD STE 2300 PHOENIX AZ 85012 990 2015-01-01 910712539 WHATCOM EDUCATIONAL CREDIT UNION WHAT 3606761168 600 EAST HOLLY STREET BELLINGHAM WA 98227 JENNIFER KUTCHER PRESIDENT/CEO 3607567716 2016-11-10 1 JANIS ISAACSON P00089104 6022662248 2015 2017-02-10 21:41:12Z JENNIFER KUTCHER 600 EAST HOLLY STREET BELLINGHAM WA 98227 54990783 0 X WWW.WECU.COM X 1936 WA IT IS THE MISSION OF WHATCOM EDUCATIONAL CREDIT UNION TO PROVIDE THE MEANS FOR MEMBERS TO ACHIEVE THEIR DREAMS. 9 9 405 12 0 0 0 0 49500757 53127267 1907193 1750627 46298 112889 51454248 54990783 137795 168058 0 0 21845994 20675394 0 0 0 18157919 20628017 40141708 41471469 11312540 13519314 1082297679 1225832214 899918440 1030122679 182379239 195709535 X WHATCOM EDUCATIONAL CREDIT UNION (WECU) IS A MEMBER-OWNED FINANCIAL COOPERATIVE WHERE MEMBERS ARE ENCOURAGED TO SAVE AND BORROW RESPONSIBLY AT FAIR AND COMPETITIVE RATES, IMPROVING THEIR FINANCIAL WELL-BEING AND STANDARD OF LIVING. THIS STATE-CHARTERED CREDIT UNION IS A MEMBER OF THE NATIONAL CREDIT UNION ADMINISTRATION SHARE INSURANCE FUND, AND IS REGULATED BY THE NATIONAL CREDIT UNION ASSOCIATION, AND THE STATE OF WASHINGTON DEPARTMENT OF FINANCIAL INSTITUTIONS - DIVISION OF CREDIT UNIONS. WECU'S MAIN PRODUCTS ARE CONSUMER LOANS, REAL ESTATE LOANS AND COMMERCIAL LOANS TO MEMBERS, WHICH ARE PRIMARILY FUNDED BY DEPOSITS FROM MEMBERS. FINANCIAL EDUCATION AND COMMUNITY SERVICE ARE ALSO AN INTEGRAL PART OF WECU'S OPERATIONS AND SPIRIT OF SERVICE. 0 0 WECU OFFERS SEVERAL TYPES OF CREDIT CARDS TO MEMBERS. EACH CARD INCLUDES CASH BACK ON PURCHASES, NO ANNUAL FEE, LOW FIXED ANNUAL PERCENTAGE RATE (APR), TRAVEL ACCIDENT INSURANCE WHEN YOU PURCHASE TRAVEL TICKETS WITH YOUR WECU VISA, OPTIONAL PAYMENT PROTECTION, 24 HOUR ACCESS WITH E-MAX ONLINE BANKING AND TELE-MAX AUDIO RESPONSE AND LOCAL SERVICE YOU CAN TRUST. WECU HAS APPROXIMATELY 25% MEMBER PENETRATION IN OUR CREDIT CARD PROGRAM. IN 2015, WE OPENED 1,941 NEW VISA ACCOUNTS FOR OUR MEMBERS, WITH NEW CREDIT LIMITS TOTALING OVER $7 MILLION. IN 2001, WECU LAUNCHED A STUDENT VISA PROGRAM WITH OUR CLASSIC VISA CARD. THE GOAL OF OUR STUDENT VISA PROGRAM IS NOT TO PROMOTE SPENDING, BUT RATHER TO PROVIDE AN OPPORTUNITY FOR OUR YOUNG MEMBERS TO LEARN ABOUT MONEY MANAGEMENT AND MAINTAINING GOOD CREDIT. OUR PROGRAM IS DESIGNED FOR MEMBERS 16 AND 17 YEARS OF AGE, AND BEGINS WITH AN EDUCATIONAL SEMINAR. STUDENTS ARE REQUIRED TO ATTEND THE SEMINAR, AND WE STRONGLY ENCOURAGE LEGAL GUARDIANS OR PARENT(S) TO ATTEND. THE STUDENT VISA SEMINAR COVERS MANY TOPICS, INCLUDING THE DEFINITION OF CREDIT, CREDIT SCORES, HOW LOANS WORK, MONEY MANAGEMENT SKILLS, THE BENEFIT OF A VISA CARD, AND WHAT TO DO IF YOUR CARD IS LOST OR STOLEN. UPON SUCCESSFUL COMPLETION OF THE STUDENT VISA SEMINAR, AND A COMPLETED APPLICATION WITH PROOF OF INCOME OR PARENT/LEGAL GUARDIAN AS CO-BORROWER, STUDENT MEMBERS WILL BE ISSUED A $250 STUDENT VISA. THE CARD IS GOOD UNTIL AGE 21. HOWEVER, IF THE LOAN IS IN GOOD STANDING AT THE AGE OF 18, STUDENTS CAN APPLY FOR A $500 CLASSIC VISA BY FILLING OUT A NEW APPLICATION WITH PROOF OF INCOME OR PARENT/LEGAL GUARDIAN AS CO-BORROWER. THIS PROGRAM HAS BEEN SUCCESSFUL, AND AS OF THE END OF 2015, WE HAD 111 STUDENT VISA ACCOUNTS. ALONG WITH CREDIT CAR LOANS, WECU OFFERS AUTO, BOAT, RV, PERSONAL, SECURED, TIMELINE AND OTHER CONSUMER LOANS. WECU ALSO OFFERS A CREDIT BUILDER LOAN SOLUTION FOR AUTO LOANS TO ASSIST MEMBERS WITH ESTABLISHING AND/OR BUILDING CREDIT ACTIVITY. WE HAVE VERY COMPETITIVE RATES AND OFTEN FUND VERY SMALL LOANS THAT OTHER FINANCIAL INSTITUTIONS WOULD NOT. IN THIS CAPACITY, WECU FILLS A CRITICAL ROLE IN THE MICRO-LENDING ECONOMY. IN 2015, WE ISSUED 6,824 CONSUMER LOANS (EXCLUDING CREDIT CARDS) TO OUR MEMBERS, TOTALING OVER $102 MILLION. WECU ALSO PROVIDES ACCESS TO THE BALANCE FINANCIAL FITNESS PROGRAM FREE OF CHARGE TO MEMBERS. PROFESSIONAL FINANCIAL COUNSELORS AT BALANCE PROVIDE DIRECTION AND SUPPORT TO ANY OF OUR MEMBERS WHO NEED HELP MANAGING THEIR DEBT AND GETTING THEIR PERSONAL FINANCES BACK ON TRACK. WECU OFFERS SEVERAL TYPES OF BUSINESS LOANS - COMMERCIAL REAL ESTATE, LINES OF CREDIT, COMMERCIAL TERM LOANS, LAND/LOT LOANS AND OTHERS. WECU ALSO FACILITATES BUSINESS LOANS THROUGH THE SBA 504 AND 7A PROGRAMS. AT THE END OF 2015, WECU'S MEMBER BUSINESS LOAN PORTFOLIO CONSISTED OF 634 LOANS FOR A TOTAL OF $213 MILLION. WECU HAS SEEN A STEADY GROWTH IN OUR MEMBER BUSINESS LOAN PORTFOLIO SINCE ITS INCEPTION IN MAY 2001. THIS GROWTH SERVES AS EVIDENCE OF THE NEED FOR A LOCAL FINANCIAL INSTITUTION OFFERING BUSINESS LOANS WITH LOW FEES AND COMPETITIVE RATES. REAL ESTATE LOANS: WECU OFFERS RESIDENTIAL REAL ESTATE LOANS WITH VERY COMPETITIVE RATES AND LOW FEES. WECU ALSO OFFERS MEMBER EDUCATION SEMINARS RELATED TO BUYING A HOME. DURING 2015, WE FUNDED 815 RESIDENTIAL FIRST MORTGAGES FOR OUR MEMBERS, TOTALING OVER $184 MILLION. AT THE END OF 2015, WECU HAD OVER 2,189 RESIDENTIAL FIRST MORTGAGE LOANS OUTSTANDING WHICH EQUATES TO A HOUSEHOLD PENETRATION OF ABOUT 2.8% IN OUR MEMBERSHIP PORTFOLIO. HOWEVER, AS OF THE END OF 2015, WE WERE SERVICING AN ADDITIONAL 2,551 IN SOLD RESIDENTIAL FIRST MORTGAGES FOR OUR MEMBERS, INCREASING OUR OVERALL REAL ESTATE PENETRATION TO ABOUT 6.1%. THE AVERAGE BALANCE OF RESIDENTIAL FIRST MORTGAGE LOANS BEING SERVICED BY WECU IS APPROXIMATELY $168,066. IN ADDITION, WECU PARTICIPATES IN THE HOME $TART PROGRAM THROUGH THE FEDERAL HOME LOAN BANK OF DES MOINES. THE PROGRAM HELPS FAMILIES EARNING UP TO 80% OF THE AREA'S MEDIAN INCOME PURCHASE A HOME BY PROVIDING GRANTS WHICH MAY BE USED FOR DOWN PAYMENTS, CLOSING COSTS, OR REHABILITATION OF AN OWNER-OCCUPIED HOUSING UNIT. WECU TRULY STRIVES TO MEET THE NEEDS OF THE UNDERSERVED. OUR CREDIT UNION HAS BEEN DESIGNATED AS A "LOW INCOME CREDIT UNION" (LICU), RECOGNIZING THAT OVER 50% OF THE CREDIT UNION MEMBERSHIP ARE PART OF LOW-INCOME HOUSEHOLDS.CHECKING ACCOUNTS AT WECU OFFER MAXIMUM CONVENIENCE WITH NO OR FEW FEES. WE HAVE FIVE CHECKING ACCOUNT OPTIONS 1) BASIC CHECKING WITH NO MONTHLY SERVICE FEES OR PER CHECK CHARGES, 2) CHECK PLUS, WHICH IS DIVIDEND BEARING, 3)MONEY MARKET CHECKING, 4) BUSINESS ECONOMY CHECKING, AND 5) BUSINESS BASIC CHECKING. CHECKING ACCOUNTS ARE MADE MORE CONVENIENT WITH MOBILE BANKING, MOBILE DEPOSIT CAPTURE, DEPOSIT TAKING ATMS, VISA DEBIT CARDS, AROUND THE CLOCK ACCESS WITH E-MAX AND TELE-MAX, DIRECT DEPOSIT AND AUTOMATIC PAYMENTS. OVERDRAFT PROTECTION IS ALSO AVAILABLE ON ALL CHECKING ACCOUNTS. WITH OUR VISA DEBIT CARD, MEMBERS HAVE ACCESS TO CHECKING ACCOUNT FUNDS ELECTRONICALLY AND CAN ALSO USE MORE THAN 25,000 SURCHARGE-FREE ATMS THROUGHOUT THE UNITED STATES AND CANADA. THERE ARE 59,572 MEMBERS WITH A CHECKING SERVICE AND 48,873 VISA DEBIT CARD HOLDERS. ABOUT 77% OF OUR ADULT MEMBERS HAVE A CHECKING SERVICE WITH WECU.COMMUNITY INVOLVEMENT: WHILE TECHNICALLY NOT A CHARTERED SERVICE, WECU IS COMMITTED TO COMMUNITY SERVICE AND PROVIDES SUPPORT TO A LARGE NUMBER OF LOCAL EDUCATION, HEALTH AND COMMUNITY CONCERNS. WECU IS A MAJOR PARTNER WITH THE OPPORTUNITY COUNCIL, THE AREA'S COMMUNITY ACTION AGENCY. PROJECTS INCLUDE FREQUENT FREE FINANCIAL EDUCATION PRESENTATIONS, PRODUCTION OF FREE FINANCIAL EDUCATION POSTERS AND BROCHURES PROMOTING FREE TAX FILING ASSISTANCE IN PARTNERSHIP WITH AARP. WECU'S SOCIAL RESPONSIBILITY COORDINATOR IS A CUNA CERTIFIED CREDIT UNION FINANCIAL COUNSELOR AND PROVIDES FREE COMMUNITY PRESENTATION TO VARIOUS GROUPS. WECU'S TWO EDUCATION CENTERS OFFER SPACE IN WHICH LOCAL NON-PROFIT OR NEIGHBORHOOD GROUPS MAY MEET. IN ADDITION, BRANCHES HAVE MADE THEIR LUNCHROOMS AND CONFERENCE ROOMS AVAILABLE TO LOCAL GROUPS FOR MEETINGS. THESE FACILITIES SAW APPROXIMATELY 670 OUTSIDE USES BY 243 COMMUNITY GROUPS. THE SWEAT EQUITY TEAM - COMPRISED OF WECU STAFF AND BOARD MEMBERS - VOLUNTEERED AT 36 EVENTS DURING 2015. 0 0 1 0 0 0 0 1 0 1 1 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 30073 0 1 405 1 0 0 0 0 0 0 X 9 9 1 0 0 0 1 1 1 1 1 0 1 1 1 1 1 1 1 1 1 1 0 X JENNIFER KUTCHER PRESIDENTCEO 3607567716 600 E HOLLY STREET BELLINGHAM WA 982279750 PHIL ISLE DIRECTOR 4.00 X 0 0 0 BRUCE BURPEE DIRECTOR 4.00 X 0 0 0 DAVID WASCHKE DIRECTOR 4.00 X 1314 0 0 CATHIE OBERG DIRECTOR 4.00 X 0 0 0 ASHOK KHANNA DIRECTOR 4.00 X 2177 0 0 KRISTI LEWIS TYRAN DIRECTOR 4.00 X 0 0 0 CAROL LAGER DIRECTOR 4.00 X 0 0 0 DALE ZENDER DIRECTOR 4.00 X 2981 0 0 HARTE BRESSLER DIRECTOR 4.00 X 0 0 0 KURT WILLIS SUPERVISORY COMMITTEE 4.00 X 1055 0 0 SHONDA SHIPMAN SUPERVISORY COMMITTEE 4.00 X 0 0 0 WAYNE LANGEI PRESIDENT/CEO - FORMER 40.00 X 996289 0 1001 JENNIFER KUTCHER PRESIDENT/CEO 50.00 X 495084 0 57974 KATHLEEN GAVIN SVP 40.00 X 277765 0 37158 ROBERT LANGEI EVP/COO 45.00 X 233302 0 33248 JEFF DYKSTRA EVP/CLO 45.00 X 230912 0 41564 COLIN NAYLOR VP/CIO 45.00 X 172640 0 34873 LISA LANGEI VP, MARKETING 45.00 X 163168 0 29283 KENT BOUMA VP, BUSINESS SERVICES 45.00 X 143470 0 31744 AARON WHITSON CREDIT ADMINISTRATOR 40.00 X 134205 0 30634 MATTHEW BERENDSEN VP, REAL ESTATE 45.00 X 118606 0 28936 2972968 0 326415 12 0 1 0 JACK HENRY & ASSOCIATES (JHA) PO BOX 807 MONETT MO 65708 VISA CARD PROCESSOR 963841 DIAMOND MARKETING 710 SW 34TH ST RENTON WA 98057 STATEMENT PROCESSING AND POSTAGE 771760 NHR NEWCO HOLDINGS LLC 6500 HOLLISTER AVENUE SUITE 210 SANTA BARBARA CA 93117 COMPUTER HARDWARE AND SOFTWARE PROVIDER 431045 DH USA CORPORATION PO BOX 535120 ATLANTA GA 30353 CORE DATA PROCESSING SYSTEM 405619 CERIUM NETWORKS INC 1636 W 1ST AVENUE SPOKANE WA 99201 COMMUNICATION HARDWARE AND SOFTWARE PROV 315692 26 PROGRAM SERVICE REVENUE 522100 53127267 53127267 53127267 1739789 1739789 10838 0 10838 10838 10838 EXTRAORDINARY GAINS 900099 112889 112889 112889 54990783 54990783 0 0 157058 11000 3299383 11731736 1589968 2827091 1227216 235252 146112 336727 612128 943935 2248281 1048669 150775 260173 3772251 1520419 126221 OTHER OPERATING EXPENSE 8500480 PROVISION FOR LOAN LOSS 726594 41471469 19437174 22525638 181881357 233630478 707390479 775964553 49806564 17308525 30051715 32498039 4899083 4710065 124256210 140248522 14381661 16254919 1082297679 1225832214 8938010 8753571 1095248 1173583 889885182 1020195525 899918440 1030122679 X 0 0 0 0 182379239 195709535 182379239 195709535 1082297679 1225832214 X 13519314 -189018 X X 0 1 X 1 0 10257 10257 1 NORTHWEST CREDIT UNION ASSOCIATION 18000 INTERNATIONAL BLVD SUITE 35 SEATAC WA 98188 910460483 10257 PART I-A, LINE 1: CONTRIBUTIONS ARE MADE TO A POLITICAL ACTION COMMITTEE (PAC) AS PART OF WECU'S NORTHWEST CREDIT UNION ASSOCIATION (NWCUA) DUES. THE TOTAL CHECK IS PAYABLE TO NWCUA, AND THE PAC PIECE IS DISTRIBUTED BY THE NWCUA TO THE CREDIT UNION LEGISLATIVE ACTION FUND (CULAF), WHICH IS OUR WASHINGTON STATE PAC. CULAF'S FUNDS ARE RAISED FROM THE DUES INVOICES AS PART OF A VOLUNTARY "FAIR-SHARE" CONTRIBUTION LISTED FOR EACH STATE-CHARTERED CREDIT UNION. 0 1 X 10723536 10723536 19092495 4150385 14942110 581118 548516 32602 14052188 10122033 3930155 5357227 2487591 2869636 32498039 OTHER INVESTMENTS 136958422 C FHLB STOCK 1297100 C HELD TO MATURITY 1993000 C 140248522 OTHER LIABILITIES 9184992 MEMBER SHARE DRAFT 200824512 MEMBER IRA SHARES 34438637 SHARE AND IRA CDS 13449912 SHARE SAVINGS 761956592 ACCRUED PENSIONS AND PROFIT SHARING 340880 1020195525 X 54990783 0 54990783 0 54990783 41471469 0 41471469 0 41471469 PART IV, LINE 2B: MONEY RECEIVED WITH MORTGAGE PAYMENTS THAT IS HELD IN ESCROW FOR REAL ESTATE TAXES. PART X, LINE 2: THE CREDIT UNION EVALUATED ITS TAX POSITIONS AND DETERMINED NO UNCERTAIN TAX POSITIONS EXIST AS OF DECEMBER 31, 2015 AND 2014. 1 UNITED WAY OF WHATCOM COUNTY 1500 CORNWALL AVE SUITE 203 BELLINGHAM WA 98226 910570788 501(C)(3) 15000 LOCAL COMMUNITY HEALTH, EDUCATION, AND INCOME INITIATIVES. NORTHWEST CREDIT UNION FOUNDATION 13221 SW 68TH PARKWAY SUITE 400 TIGARD OR 97223 911649328 501(C)(3) 10257 SUPPORT OF TRADE ASSOCIATION AND ONGOING EDUCATIONAL PROGRAMS. NORTHWEST CREDIT UNION ASSOCIATION 13221 SW 68TH PARKWAY SUITE 400 TIGARD OR 97223 910460483 501(C)(3) 24853 ADMINISTRATIVE DONATION FOR SERVICES SUPPORTING THE CREDIT UNION INDUSTRY. SCHOLARSHIPS 9 11000 SCHEDULE I, PART III WHATCOM EDUCATIONAL CREDIT UNION ASSIGNS SPECIFIED SCHOLARSHIP AMOUNTS TO VARIOUS SCHOOLS. THE SCHOOL SCHOLARSHIP COMMITTEES THEN DETERMINE THE MOST DESERVING RECIPIENTS. X 1 1 X X X 0 1 0 WAYNE LANGEI PRESIDENT/CEO - FORMER 55419 0 25060 0 915810 0 0 0 1001 0 997290 0 794216 0 JENNIFER KUTCHER PRESIDENT/CEO 367103 0 20192 0 107789 0 47150 0 10824 0 553058 0 0 0 KATHLEEN GAVIN SVP 122199 0 29413 0 126153 0 29150 0 8008 0 314923 0 100000 0 ROBERT LANGEI EVP/COO 194693 0 38401 0 208 0 25640 0 7608 0 266550 0 0 0 JEFF DYKSTRA EVP/CLO 191601 0 39103 0 208 0 26252 0 15312 0 272476 0 0 0 COLIN NAYLOR VP/CIO 143106 0 29326 0 208 0 19561 0 15312 0 207513 0 0 0 LISA LANGEI VP, MARKETING 134987 0 27869 0 312 0 18459 0 10824 0 192451 0 0 0 KENT BOUMA VP, BUSINESS SERVICES 118552 0 24710 0 208 0 16432 0 15312 0 175214 0 0 0 AARON WHITSON CREDIT ADMINISTRATOR 110916 0 22977 0 312 0 15322 0 15312 0 164839 0 0 0 PART I, LINE 4B EXPLANATION: SCHEDULE J, PART III, SUPPLEMENTAL INFORMATION. THE CREDIT UNION MADE NO CONTRIBUTIONS TO A 457(F) PLAN DURING THE YEAR. DISTRIBUTIONS FROM THE 457(F) PLAN WERE MADE ON BEHALF OF: WAYNE LANGEI, PRESIDENT/CEO: $794,216 KATHLEEN GAVIN, SVP: $100,000 FORM 990, PART VI, SECTION A, LINE 2 WAYNE LANGEI WAS THE PRESIDENT/CEO UNTIL AUGUST 2014. IN AUGUST 2014, JENNIFER KUTCHER, PREVIOUSLY EVP/CHIEF LENDING OFFICER, BECAME PRESIDENT/CEO. ROBERT LANGEI, WAYNE LANGEI'S SON, HAD BEEN EVP CHIEF FINANCIAL OFFICER UNTIL AUGUST 2014. HIS TITLE CHANGED TO EVP/CHIEF OPERATIONS OFFICER IN AUGUST 2014. WAYNE LANGEI RETIRED FROM WECU IN FEBRUARY 2015. FORM 990, PART VI, SECTION A, LINE 6 THE ORGANIZATION HAS MEMBERS. THE CREDIT UNION'S MEMBERS RECEIVE A SHARE OF THE ORGANIZATION'S PROFITS OR EXCESS DUES 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, 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 GOVERNING BODY'S ELECTION AND REMOVAL OF MEMBERS OF THE GOVERNING BOARD, 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 11 OUR FORM 990 TAX FILING IS REVIEWED BY WECU'S CONTROLLER, VP/FINANCE AND PRESIDENT/CEO IN DETAIL. IT IS COMPARED TO OUR PREVIOUS YEAR'S RETURN AND TIED BACK TO OUR FINANCIAL STATEMENTS AND GENERAL LEDGER RECORDS. A COPY OF THE FORM 990 IS PROVIDED TO THE BOARD OF DIRECTORS PRIOR TO FILING. FORM 990, PART VI, SECTION B, LINE 12C WECU'S CONFLICT OF INTEREST POLICY FOCUSES ON DEFINING AND PREVENTING CONFLICTS OF INTEREST. BEFORE ENGAGING IN ANY ACTIVITY, TRANSACTION, OR BEFORE ENTERING INTO ANY RELATIONSHIP THAT MIGHT GIVE RISE TO A CONFLICT OF INTEREST, EMPLOYEES MUST SEEK REVIEW FROM THEIR MANAGERS OR THE HUMAN RESOURCES DEPARTMENT. WECU'S HUMAN RESOURCES DEPARTMENT AND INTERNAL AUDITOR ARE RESPONSIBLE FOR ENSURING THAT NO CONFLICT OF INTERESTS OCCUR THAT COULD HAVE A NEGATIVE EFFECT ON WECU. IF ANYONE SUSPECTS A CONFLICT OF INTEREST, IT IS REPORTED TO MANAGEMENT, THE HUMAN RESOURCES DEPARTMENT OR THE INTERNAL AUDITOR. FORM 990, PART VI, SECTION B, LINE 15 WECU'S COMPENSATION PHILOSOPHY FOR ALL EMPLOYEES PROVIDES FOR REWARDS THAT ARE MARKET-COMPETITIVE, RECOGNIZE INDIVIDUAL PERFORMANCE AND ACKNOWLEDGE EXPERIENCE. WECU PARTNERS WITH A THIRD-PARTY COMPENSATION ADVISOR TO ENSURE PAY RATES ARE COMPETITIVE WITHIN THE MARKET. AS A RESULT OF THIS PARTNERSHIP, WECU'S PRESIDENT/CEO AND EVPS DETERMINE THE OVERALL SALARY STRUCTURE. COMPENSATON FOR THE PRESIDENT/CEO IS OUTLINED IN THE EMPLOYMENT CONTRACT SET FORTH BETWEEN THE THE BOARD OF DIRECTORS AND THE PRESIDENT/CEO. FORM 990, PART VI, SECTION C, LINE 19 WECU HAS A MEMBER RIGHTS POLICY IN WHICH WE STIPULATE HOW OUR MEMBERS CAN REQUEST AND RECEIVE CREDIT UNION CORPORATE RECORDS, WHICH INCLUDE OUR ARTICLES AND BYLAWS, MINUTES OF OUR MEMBERSHIP MEETINGS AND ANNUAL FINANCIAL REPORT, FINANCIAL REPORTS AND FORMS, CODE OF ETHICS, BOARD GOVERNANCE POLICIES, AND BOARD OF DIRECTORS AND SUPERVISORY COMMITTEE NAMES. A MEMBER REQUEST MUST BE SUBMITTED IN WRITING TO THE CREDIT UNION AND SPECIFICALLY IDENTIFY THE DISCLOSABLE RECORDS REQUESTED. THE CREDIT UNION MAY REQUIRE THE MEMBER TO SIGN A CONFIDENTIALITY AGREEMENT TO PROTECT THE CREDIT UNION FROM UNAUTHORIZED DISCLOSURE OF CERTAIN PROPRIETARY INFORMATION. IF ANY DOCUMENTS CONTAIN MEMBER INFORMATION, IT WILL BE EXPUNGED FROM THE DOCUMENT BEFORE BEING PROVIDED TO THE PUBLIC. FORM 990, PART XI, LINE 9: NET CHANGE IN UNREALIZED GAIN ON AFS INVESTMENTS -189,018. FORM 990, PART XII, LINE 2C: THE SUPERVISORY COMMITTEE ASSUMES RESPONSIBILITY FOR THE OVERSIGHT OF THE AUDITED FINANCIAL STATEMENTS.