2016-11-15T16:46:40-07:00 2015-12-31 990 2015-01-01 916035907 QUALSTAR CREDIT UNION QUAL 8008480018 PO BOX 96730 BELLEVUE WA 980097730 Michael Elfstrom Chief Financial Officer 8008480018 2016-11-15 2015 2017-02-10 21:41:12Z MARK NELSON 2133 152ND AVE NE REDMOND WA 98052 20754667 0 1269 X www.qualstarcu.com X 1952 WA WE ARE A CREDIT UNION PROVIDING FINANCIAL PRODUCTS & SERVICES TO MEMBERS 9 9 149 9 151084 -19110 0 0 17803734 19377123 1130142 1377544 0 0 18933876 20754667 0 0 0 0 7139090 7416381 0 0 0 7622457 9091527 14761547 16507908 4172329 4246759 373370188 413167721 325372011 360971536 47998177 52196185 PROVIDE FINANCIAL PRODUCTS & SERVICES 0 0 Interest expense in the amount of $2,045,837 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 71,000 deposit accounts that can earn interest. The credit union expensed $387,732 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 $468,328 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 13609 0 1 149 1 1 1 0 0 0 0 0 X 9 9 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 1204 0 0 KIM BROWN Vice Chairman 3 0 X X 0 0 0 MITCHELL JOHNSON Board Member 3 0 X 0 0 0 CHARLIE ANDREWS Board Member 3 0 X 0 0 0 BILL ROCHESTER Board Chairman 4 0 X X 0 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 0 0 0 JOEL SCHMIDT Board Member 3 0 X 0 0 0 MARK R NELSON President 40 0 X 332646 0 36246 MICHAEL G ELFSTROM CFO 40 0 X 189280 0 25873 ROBERT ARBUCKLE COA 40 0 X 150684 0 25124 KARA TAYLOR VP OF I.S. 40 0 X 130206 0 10904 LAURIE BROWN VP OF OPERATIONS 40 0 X 114152 0 11160 TRACEY ELFSTROM VP OF MEMBER RELATIONS 40 0 X 114084 0 4801 ROSHALLE DEARMENT VP OF LENDING 40 0 X 103113 0 8072 WILLIAM HANAFORD INVESTMENT ADVISOR 40 0 X 102926 0 10235 1238295 0 132415 9 0 1 0 JHA Card Processing Solutions PO Box 91101 Seattle WA 98111 Payment card and ATM processing 576588 HST Construction Inc 11512 NE 20th St Bellevue WA 98004 Construction and remodel services 512807 CO-OP FINANCIAL SERVICES 9692 HAVEN AVE RANCHO CUCAMONGA CA 91730 SHARED BRANCHING AND ATM NETWORK PROVIDER 454350 Kaye Smith Business Graphics 4101 Oakdale Ave SW Renton WA 98057 Printing and statement production/mailing 437131 VISA PO Box 8999 San Francisco CA 94128 Credit card processor 335924 13 0 Interest on Loans 522130 12340375 12340375 0 0 Fee Income 522130 3741995 3733637 8358 0 Other Operating Income 522130 3294753 3152027 142726 0 0 0 0 0 19377123 1351109 1351109 0 0 0 0 0 0 0 0 0 0 0 0 0 26435 0 0 0 26435 26435 26435 0 0 0 20754667 20603583 151084 0 X 673815 0 5151578 299030 872665 419293 0 135067 74000 0 0 0 2003942 744325 1563275 361148 0 505062 0 65258 142323 2045837 0 264171 230742 Loan Servicing 468328 Provision for Loan Losses 387732 Miscellaneous 100317 16507908 0 0 0 1394648 1532094 24169612 33367337 0 0 2949088 1518720 1014463 1000000 0 0 207452435 214264490 0 0 4281956 4406374 11618274 8735270 1935895 2883004 0 0 125207701 149136516 0 0 0 0 4964390 5059186 373370188 413167721 8092017 9533902 0 0 0 0 0 0 317437 315162 0 0 0 0 0 0 316962557 351122472 325372011 360971536 X 0 0 0 0 47998177 52196185 47998177 52196185 373370188 413167721 4246759 -48751 0 0 0 0 X 0 0 0 0 1 X 399359 0 399359 3288923 0 1690153 1598770 2184515 0 2157160 27355 2153535 0 1939140 214395 3591942 0 2948817 643125 2883004 0 0 Federal Agency Notes AFS 13911812 F CDs at Banks and Credit Unions 134927030 F The Co-op 225089 F FSCC Shared Branch Network 47585 F CUDL 25000 F 149136516 -857 Member Share Deposits 351123329 351122472 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. X X 1 1 X X X X 0 0 0 MARK R NELSON President 256819 0 75827 0 6948 0 0 0 29298 0 368892 0 0 0 MICHAEL G ELFSTROM CFO 160631 0 28649 0 0 0 0 0 25873 0 215153 0 0 0 ROBERT ARBUCKLE COA 126542 0 24142 0 0 0 0 0 25124 0 175808 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 is over $600. MARK NELSON CURRENT OFFICER SECURED SPLIT DOLLAR X 1000000 1103472 0 1 1 1103472 Schedule L, Part II Copy of the QUALSTAR CREDIT UNION SECURED SPLIT-DOLLAR AGREEMENT is available upon request: QUALSTAR CREDIT UNION and MARK NELSON are parties to the Secured Split-Dollar Agreement dated March 1, 2012 - the Agreement. 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. 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/Executive VP prior to submission to the IRS. Both the VP of Finance and CFO/Executive VP 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, card network charges, and shared branching network charges. Extension form was filed. Qualstar Credit Union legally merged with Puget Sound FCU this year as of 5/31/16 and needed additional time to complete Form 990 accurately.