2015-11-12T12:12:42-06:00 2014-12-31 910189318 MOSS ADAMS LLP 2707 COLBY AVENUE SUITE 801 EVERETT WA 98201 990 2014-01-01 910557925 SOUND CREDIT UNION SOUN 2535977603 PO BOX 1595 TACOMA WA 98401 TROY GARRY CFO 2535977603 2015-11-10 1 KRISTINE HOEFLIN P00786821 4252597227 2014 2016-02-25 16:41:14Z RICHARD BRANDSMA PO BOX 1595 TACOMA WA 98401 54871417 0 X WWW.SOUNDCU.COM X 1940 WA COOPERATIVE PROVIDING FINANCIAL SERVICES, INCLUDING LOANS AND SHARE DEPOSITS TO ITS MEMBERS. 9 8 322 0 304560 -254653 0 0 50566671 49535093 3396068 3547933 1382257 478660 55344996 53561686 68000 120000 0 0 17181321 17906976 0 0 0 20432634 20556477 37681955 38583453 17663041 14978233 1085325460 1153990675 974030887 1026134290 111294573 127856385 A MEMBER OWNED COOPERATIVE PROVIDING FINANCIAL SERVICES, INCLUDING LOANS AND SHARE DEPOSITS TO ITS MEMBERS. 0 0 ON THE LIABILITY/EQUITY SIDE OF THE BALANCE SHEET OUR MEMBERS HOLD 180,677 SAVINGS, CHECKING AND MONEY MARKET DEPOSIT ACCOUNTS WITH COMBINED BALANCES OF $791,598,385. MEMBERS HOLD 4,931 IRA SAVINGS ACCOUNTS WITH COMBINED BALANCES OF $79,443,208. THESE FUNDS ARE POOLED AND USED PRIMARILY TO FUND CONSUMER AND REAL ESTATE SECURED LOANS TO OUR MEMBERSHIP. ALSO ON THE LIABILITY/EQUITY SIDE OF THE BALANCE SHEET, 5,606 OF OUR MEMBERS HOLD CERTIFICATE ACCOUNTS WITH TOTAL BALANCES OF $123,221,511. ON THE ASSET SIDE, 54,992 OF OUR MEMBERS HOLD CONSUMER LOANS THAT INCLUDE VEHICLE, STUDENT, MORTGAGE AND VISA LOANS. CONSUMER LOANS THAT INCLUDE VEHICLE SECURED LOANS TOTAL $322,091,447. REAL ESTATE SECURED LOANS TOTAL $262,808,756. THE LOAN PORTFOLIO TOTALS $724,140,605. 0 0 0 0 0 0 0 0 0 1 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 1 17414 0 1 322 1 1 1 0 0 0 0 0 X 9 8 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 X TROY GARRY 2535977603 1331 BROADWAY PLAZA TACOMA WA 98401 GARY EMMONS CHAIRMAN 1.00 X X 15500 0 0 KEITH MOCK VICE CHAIR 1.00 X X 15000 0 0 BRENDA HEINEMAN SECRETARY/TREASURER 1.00 X X 15000 0 0 NORMAN PARSONS DIRECTOR 1.00 X 15000 0 0 RICHARD BRENTIN DIRECTOR 1.00 X 13875 0 0 DENNIS OKAMOTO DIRECTOR 1.00 X 11250 0 0 DAVID WASSON DIRECTOR 1.00 X 17125 0 0 SHELLEY COLEMAN DIRECTOR 1.00 X 15000 0 0 RICHARD BRANDSMA PRESIDENT/CHIEF EXECUTIVE OFFICER 40.00 X X 1615634 0 67647 TROY GARRY VP/CHIEF FINANCIAL OFFICER 40.00 X 179688 0 31670 DENISE REAGAN EXECUTIVE VP 40.00 X 807668 0 39064 CARL ROER VP/CHIEF LENDING OFFICER 40.00 X 209225 0 32230 CHRIS SHENKEL VP/CHIEF BRANCH OFFICER 40.00 X 191885 0 39761 DONALD CLARK JR EXECUTIVE VP 40.00 X 344581 0 46990 LORRIE REMPHER VP/CHIEF INFORMATION OFFICER 40.00 X 182163 0 34054 ROBYN LACHANCE VP/CHIEF MARKETING OFFICER 40.00 X 145146 0 26789 KAY WILLIAMS-PRATER VP/BRANCHES 40.00 X 113698 0 24886 JASON MCDOUGAL HOST SYSTEMS MANAGER 40.00 X 116375 0 20010 KIMBERLY MAPES VP/HUMAN RESOURCES 40.00 X 125085 0 19448 STEPHANIE MCCALLUM VP/BUSINESS SERVICES 40.00 X 137849 0 11262 4286747 0 393811 14 0 1 0 HHJ INC 601 ST HELENS AVE TACOMA WA 98402 REMODELING 3957494 FRANK UNLIMITED LLC 2819 ELLIOTT AVE SUITE 204 SEATTLE WA 98121 MARKETING SERVICES 1086158 JACK HENRY & ASSOCIATES INC PO BOX 609 MONETT MO 65708 COMPUTER 809626 KAYE-SMITH ENTERPRISES PO BOX 956 RENTON WA 98057 PRINTING/MAILING STATEMENTS 410276 DIEBOLD GLOBAL FINANCE CORPORATION PO BOX 644399 PITTSBURGH PA 15264 ATM - MAINTENANCE 195558 13 LOAN INTEREST INCOME 522291 32382556 32382556 FEES AND CHARGES 522100 8889908 8698580 191328 INTERCHANGE 522298 6929509 6929509 LOAN ORIGINATION INCOME 518210 480596 480596 FINANCIAL SERVICES 522100 121951 8719 113232 730573 730573 49535093 3100390 3100390 18952 261956 -243004 -243004 -243004 691852 803466 659151 388624 32701 414842 447543 447543 NON-OPERATING INCOME 900099 721664 721664 721664 53561686 49952197 304560 3304929 110000 10000 4106493 7985274 2183236 2536475 1095498 14852 22276 190384 322796 1338750 3088037 619541 2149500 303848 215444 2467909 2029697 BANK FEES 3133696 LOAN SERVICING 3023262 PROVISION FOR LOAN LOSS 804114 MP AMORTIZATION OF CDI 789963 42408 38583453 97361653 13936420 3250000 88246066 8491278 20435373 607261880 716933463 2960996 1202463 56294776 17435025 36338094 38859751 304968611 249771392 3598357 3616561 6226431 5436468 14868160 15552718 1085325460 1153990675 5682683 7896569 554924 466556 13000000 13000000 954793280 1004771165 974030887 1026134290 X 0 0 0 0 111294573 127856385 111294573 127856385 1085325460 1153990675 X 14978233 1184102 399477 X 0 0 0 11974156 11974156 31578602 8947857 22630745 1453480 395585 1057895 11288538 8091583 3196955 38859751 MEMBER SHARE ACCOUNTS 994263104 CLEARING ACCOUNTS 2221405 CONTINGENT LIABILITIES 323170 DEFERRED COMP PLAN 2404139 MONEY ORDER & CASHIER'S CHECKS 5559347 1004771165 0 MILGARD SCHOOL OF BUSINESS 1900 COMMERCE STREET TACOMA WA 984023100 916001537 115(1) 40000 BENEFACTOR SPONSORSHIP FOR BUSINESS LEADERSHIP AWARDS 2014 & 2015 UW FOUNDATION 407 GERBERDING HALL BOX 351210 SEATTLE WA 981951210 943079432 501(C)(3) 7500 EXCELLENCE FUND TACOMA-PIERCE COUNTY CHAMBER OF COMMERCE PO BOX 1933 TACOMA WA 98401 910434830 501(C)(6) 5000 2014 ANNUAL MEETING SPONSOR FIRCREST GOLF CLUB 1500 REGENTS BLVD FIRCREST WA 98466 910221060 501(C)(7) 20000 GOLF TOURNAMENT 2 2 SCHOLARSHIPS 10 10000 EDUCATION ASSISTANCE X X X X 0 1 0 RICHARD BRANDSMA PRESIDENT/CHIEF EXECUTIVE OFFICER 526300 0 278939 0 810395 0 52000 0 15647 0 1683281 0 0 0 TROY GARRY VP/CHIEF FINANCIAL OFFICER 148000 0 31688 0 0 0 16436 0 15233 0 211357 0 0 0 DENISE REAGAN EXECUTIVE VP 303709 0 166855 0 337104 0 23400 0 15664 0 846732 0 0 0 CARL ROER VP/CHIEF LENDING OFFICER 164450 0 41113 0 3662 0 18915 0 13315 0 241455 0 0 0 CHRIS SHENKEL VP/CHIEF BRANCH OFFICER 144565 0 37435 0 9885 0 17854 0 21907 0 231646 0 0 0 DONALD CLARK JR EXECUTIVE VP 245192 0 74670 0 24719 0 23400 0 23590 0 391571 0 0 0 LORRIE REMPHER VP/CHIEF INFORMATION OFFICER 145340 0 36823 0 0 0 16688 0 17366 0 216217 0 0 0 ROBYN LACHANCE VP/CHIEF MARKETING OFFICER 101370 0 42016 0 1760 0 13665 0 13124 0 171935 0 0 0 PART I, LINE 4B THE CREDIT UNION ALSO HAS ENTERED INTO THREE 457(F) SUPPLEMENTAL RETIREMENT BENEFIT AGREEMENTS WITH MEMBERS OF THE EXECUTIVE MANAGEMENT TEAM. THE AGREEMENTS PROVIDE BENEFITS PAYABLE TO THESE EMPLOYEES IF THEY REMAIN CONTINUOUSLY EMPLOYED FOR DESIGNATED PERIODS OF TIME AND/OR UPON DISABILITY, DEATH, OR TERMINATION OF EMPLOYMENT WILL RECEIVE PRORATED BENEFITS. THE BENEFITS ARE SUBJECT TO FORFEITURE IF EMPLOYMENT IS TERMINATED FOR CAUSE AS DEFINED IN THE AGREEMENTS. THE ESTIMATED LIABILITY UNDER THE AGREEMENTS IS BEING ACCRUED ON A STRAIGHT-LINE BASIS OVER THE SPECIFIED NUMBER OF YEARS OF SERVICE AS DEFINED IN THE AGREEMENTS. THE CREDIT UNION HAS ACCRUED APPROXIMATELY $1,007,000 AS OF MARCH 31, 2015. THIS AMOUNT IS INCLUDED IN ACCRUED EXPENSES AND OTHER LIABILITIES ON THE CONSOLIDATED BALANCE SHEET. THE CREDIT UNION ALSO SPONSORS AN UNFUNDED NONCONTRIBUTORY POST-RETIREMENT HEALTH BENEFIT PLAN FOR SPECIFIC MEMBERS OF THE EXECUTIVE MANAGEMENT TEAM. THE BENEFIT OBLIGATION FOR THE YEAR ENDED MARCH 31, 2015, WAS DETERMINED USING A DISCOUNTED CASH FLOW MODEL AND ACTUARIAL ASSUMPTIONS FOR LIFE EXPECTANCY, ANNUAL BENEFIT COSTS, AND THE EXPECTED TERM OF EMPLOYMENT. BENEFITS ACCRUED UNDER THE PLAN AMOUNTED TO $523,000 AS OF MARCH 31, 2014, AND ARE INCLUDED IN ACCRUED EXPENSES AND OTHER LIABILITIES ON THE CONSOLIDATED BALANCE SHEET. FORM 990, PART VI, SECTION A, LINE 6 THE CREDIT UNION HAS 104,161 MEMBERS AS OF DECEMBER 31, 2014. FORM 990, PART VI, SECTION A, LINE 7A THE CREDIT UNION'S MEMBERS HAVE THE RIGHT TO ELECT ONE OR MORE MEMBERS OF THE 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, 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 THE FORM 990 IS PROVIDED TO THE BOARD OF DIRECTORS WHO REVIEW THE FORM PRIOR TO THE RETURN'S FILING. THE BOARD COMPARES THE RETURN TO THE PRIOR YEAR RETURN FOR MATERIAL DIFFERENCES AND SEEKS EXPLANATIONS FOR THOSE DIFFERENCES. TOTALS ARE COMPARED FOR REVENUE, EXPENSES, AND TOTAL ASSETS. EACH STATEMENT IS REVIEWED FOR ACCURACY INCLUDING A REVIEW OF THE EXPLANATIONS DOCUMENTED IN THE RETURN. FORM 990, PART VI, SECTION B, LINE 12C EMPLOYEES SIGN A STATEMENT REQUIRING THAT THEY MUST DISCLOSE TO THE PRESIDENT & CEO ANY ACTUAL, POTENTIAL, OR PERCEIVED CONFLICTS OF INTEREST BEFORE BEING HIRED. DIRECTORS AND VOLUNTEERS SIGN A "CODE OF ETHICS ACKNOWLEDGEMENT" THAT STATES THEY WILL NOT BE INVOLVED IN SITUATIONS THAT RESULT IN OR COULD BE PERCEIVED TO BE A CONFLICT OF INTEREST. THEY MUST ALSO EXCUSE THEMSELVES FROM ANY DISCUSSIONS OR PARTICIPATION IN DECISIONS INVOLVING INSTANCES IN WHICH A CONFLICT OF INTEREST EXISTS OR MAY EXIST. THE POLICY MANUAL HAS THREE SECTIONS IN WHICH CONFLICTS OF INTEREST ARE STATED AND THE BOARD APPROVES THE POLICY MANUAL ON AN ANNUAL BASIS. BOTH THE CEO & EVP MONITOR ALL STAFF AND VOLUNTEER ACCOUNTS. IN ADDITION, DURING OUR CERTIFIED AUDIT, ALL STAFF AND VOLUNTEER ACCOUNTS, OR A SAMPLING, ARE REVIEWED FOR POTENTIAL CONFLICTS OF INTEREST. NO DIRECTOR, COMMITTEE MEMBER, OR EMPLOYEE OF THE CREDIT UNION MAY HAVE A PECUNIARY INTEREST IN ANY CONTRACT OR TRANSACTION WITH THE CREDIT UNION UNLESS THIS INTEREST IS DISCLOSED AND MADE KNOWN TO THE BOARD OF DIRECTORS. NO DIRECTOR OR COMMITTEE MEMBER OF THE CREDIT UNION WILL PARTICIPATE IN THE DELIBERATION OF ANY QUESTION AFFECTING THEIR OWN PECUNIARY INTEREST. SUCH DIRECTOR OR COMMITTEE MEMBER WILL WITHDRAW FROM THE DELIBERATION AND DECISION UPON SUCH INTEREST. FORM 990, PART VI, SECTION B, LINE 15 LINE 15A, COMPENSATION PROCESS FOR TOP OFFICIAL: THE EMPLOYEE BENEFITS COMMITTEE, WHICH IS COMPRISED OF 3 BOARD MEMBERS REVIEWS LOCAL SURVEYS, INCLUDING THE ANNUAL MILLIMAN NORTHWEST FINANCIAL INDUSTRY SALARY SURVEY TO DEVELOP A RECOMMENDATION FOR THE BOARD. THE BOARD REVIEWS THE COMMITTEE'S RECOMMENDATION AND APPROVES THE CEO'S COMPENSATION. LINE 15B, COMPENSATION PROCESS FOR OFFICERS: OTHER OFFICER AND KEY EMPLOYEE COMPENSATION IS DETERMINED BY THE CEO AND BECOMES A PART OF THE COMPENSATION RECOMMENDATION DURING THE BUDGET PROCESS. FORM 990, PART VI, SECTION C, LINE 19 THE CREDIT UNION'S BYLAWS AND LEGAL DOCUMENTS, FINANCIAL STATEMENTS AND ANNUAL REPORT, THAT MEMBERS HAVE THE RIGHT TO VIEW, ARE AVAILABLE UPON REQUEST. THE REQUEST MUST BE IN WRITTEN FORM. FORM 990, PART XI, LINE 9: ADJUSTMENT DUE TO MERGER WITH DARIGOLD FEDERAL CREDIT UNION 399,477. SOUND FINANCIAL GROUP INC PO BOX 1595 TACOMA WA 98401 911263213 INSURANCE WA SOUND CREDIT UNION C 87 1.00000 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0