2015-11-10T14:57:35-06:00 2014-12-31 910189318 MOSS ADAMS LLP 601 W RIVERSIDE AVENUE STE 1800 SPOKANE WA 99201 990 2014-01-01 910567788 HORIZON CREDIT UNION HORI 5099286494 PO BOX 15128 SPOKANE VALLEY WA 99216 JEFF ADAMS CEO 5099286494 2015-11-05 1 EMINA O CRESSWELL CPA P01217304 5097472600 2014 2016-03-07 17:11:31Z JEFF ADAMS PO BOX 15128 SPOKANE VALLEY WA 99216 33136824 0 1269 X WWW.HZCU.ORG X 1947 WA CREDIT UNION OPERATED WITHOUT PROFIT FOR MUTUAL PURPOSES. PROVIDE FINANCIAL SERVICES TO MEMBERS. 7 7 260 11 56568 -58554 0 0 29188565 30212873 880427 590782 19934 94478 30088926 30898133 27114 33512 0 0 13111131 13170611 0 0 0 12747181 12920284 25885426 26124407 4203500 4773726 584109220 620763082 522197515 554077490 61911705 66685592 CREDIT UNION OPERATED WITHOUT PROFIT FOR MUTUAL PURPOSES. 0 0 PROVIDE FINANCIAL SERVICES TO 53,343 MEMBERS. THESE SERVICES INCLUDE BUT ARE NOT LIMITED TO LOANS AND SAVINGS PROGRAMS. THE SERVICES WERE PROVIDED BY 260 EMPLOYEES LEAD BY 7 VOLUNTEER BOARD MEMBERS. 0 0 0 0 0 0 0 0 0 1 1 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 7011 0 1 260 1 1 1 0 0 0 0 0 X 7 7 0 0 0 0 1 1 1 1 1 0 0 0 1 1 0 0 1 1 1 0 ID MT X DEBORAH PARELIUS 5099286494 PO BOX 15128 SPOKANE VALLEY WA 99216 MIKE BUTLER DIRECTOR 1.00 X 0 0 0 TOM DILUZIO DIRECTOR 1.00 X 0 0 0 MARK LODINE DIRECTOR 1.00 X 0 0 0 STEVE SHARON CHAIRMAN OF THE BOARD 1.00 X X 0 0 0 NANCY RIPLEY 1ST VICE CHAIRMAN 1.00 X X 0 0 0 BERNIE KORTH 2ND VICE CHAIRMAN 1.00 X X 0 0 0 PAT FITZGERALD SECRETARY/TREASURER 1.00 X X 0 0 0 JEFF ADAMS CEO/PRESIDENT 40.00 X 346179 0 258531 DEBORAH PARELIUS CFO/VP FINANCE & ACCOUNTING 35.00 X 163489 0 21241 MARK NEUMANN COO/VP RETAIL DELIVERY 40.00 X 185279 0 61914 GREG ROBINSON VP INFORMATION SERVICES 32.00 X 146904 0 17894 BRIAN GRYTDAL VP MARKETING 40.00 X 138129 0 33944 JODIE OLSON VP HUMAN RESOURCES & TRAINING 40.00 X 119661 0 21155 ALITA BILLINGTON REGIONAL DIRECTOR OF BRANCHES 40.00 X 121360 0 14931 STEVE WILDER COOPERATIVE ENGAGEMENT ADMINISTRATOR 26.00 X 116481 0 27116 1337482 0 456726 8 0 1 0 BAKER CONSTRUCTION 2711 E SPRAGUE AVENUE SPOKANE WA 99202 CONSTRUCTION 914540 VANTIV HOLDING LLC 8500 GOVENORS HILL DRIVE SYMMES TOWNSHIP OH 45249 ATM PROCESSING 507451 CEO ADVISORY GROUP PO BOX 5665 KENT WA 98064 MANAGEMENT CONSULTING 238985 MARY MARY MARKETING PO BOX 11094 SPOKANE VALLEY WA 992111094 MARKETING 196545 PERDUE LAW 41 CAMINO DE LOS ANGELITOS GALISTEO NM 87540 LEGAL 126000 5 INTEREST ON MEMBER LOANS 522100 22598100 22598100 FEES PAID BY MEMBERS 522100 4075236 4018668 56568 VISA & DEBIT CARD INCOME 522100 2579467 2579467 OTHER INCOME 524298 960070 960070 30212873 864861 864861 116240 21762 94478 94478 94478 1942850 2216929 -274079 -274079 -274079 30898133 30156305 56568 685260 26485 7027 1036633 8972093 1055844 1370091 735950 298261 128068 68892 400084 750683 456402 1345511 1312921 173994 26312 2338796 1271049 434861 CARD PROCESSING FEES 1118524 MEMBER SERVICING 784859 LOAN PROCESSING 777428 PROVISION FOR LOAN LOSS 410618 823021 26124407 4133447 16913670 41322371 13905561 901362 3193091 92350 1158875 458177322 521119636 934029 782402 35797956 13453363 19833946 22344593 42586026 31513738 14169 13482 1797000 2118537 14317198 7699497 584109220 620763082 6786688 9076568 2352 0 515408475 545000922 522197515 554077490 X 0 0 0 0 61911705 66685592 61911705 66685592 584109220 620763082 4773726 161 0 X 0 1 X 1 0 5329 5329 5329 1 CREDIT UNION LEGISLATIVE ACTION FUND 18000 INTERNATIONAL BLVD SUITE 350 SEATAC WA 98188 800043051 5329 0 PART I-A, LINE 1: THE CREDIT UNIONS ONLY INDIRECT POLITICAL CAMPAIGN ACTIVITY IS A CONTRIBUTION TO THE CREDIT UNION LEGISLATIVE ACTION COMMITTEE. 5607397 5607397 18629969 4062757 14567212 991040 783002 208038 10569550 8607604 1961946 22344593 CERTIFICATES OF DEPOSIT 18825937 C NCUA SHARE INSURANCE CAPITALIZATION DEPOSIT 5017025 C CMO SECURITIES 2363219 C HMBS INVESTMENTS 3472803 C FEDERAL AGENCY SECURITIES 1002254 C FHLB CAPITAL STOCK 832500 C 31513738 MEMBER SHARES & DEPOSITS 526500922 FHLB ADVANCES 18500000 545000922 X 31077733 274079 274079 30803654 94479 94479 30898133 26304007 274079 274079 26029928 94479 94479 26124407 PART X, LINE 2: THE CREDIT UNION IS A STATE-CHARTERED CREDIT UNION DESCRIBED IN INTERNAL REVENUE CODE ("IRC") SECTION 501(C)(14). AS SUCH, THE CREDIT UNION IS EXEMPT FROM FEDERAL TAXATION OF INCOME DERIVED FROM THE PERFORMANCE OF ACTIVITIES THAT ARE IN FURTHERANCE OF ITS EXEMPT PURPOSES. HOWEVER, IRC SECTION 511 IMPOSES A TAX ON THE UNRELATED BUSINESS INCOME (AS DEFINED IN SECTION 512) DERIVED BY STATE-CHARTERED CREDIT UNIONS. THE SPECIFIC APPLICATION OF SECTION 512 TO THE VARIOUS ACTIVITIES CONDUCTED BY STATE-CHARTERED CREDIT UNIONS HAS BEEN AT ISSUE FOR MANY YEARS. THE INTERNAL REVENUE SERVICE ("IRS") HAS ISSUED A SERIES OF TECHNICAL ADVICE MEMORANDA ("TAM") TO A NUMBER OF STATE-CHARTERED CREDIT UNIONS LOCATED THROUGHOUT THE COUNTRY. IN THESE TAMS, THE IRS RULED CERTAIN PRODUCTS AND SERVICES TO BE SUBJECT TO TAXATION AS UNRELATED BUSINESS INCOME. IN LIGHT OF THE TAMS, THE CREDIT UNION HAS ASSESSED ITS ACTIVITIES AND ANY POTENTIAL FEDERAL INCOME TAX LIABILITY. THE CREDIT UNION FILES IRS FORMS 990 AND 990-T, AS APPLICABLE AND MEASURES AND RECOGNIZES THE IMPLICATIONS OF POSITIONS TAKEN OR EXPECTED TO BE TAKEN IN ITS TAX RETURNS ON AN ONGOING BASIS IN ACCORDANCE WITH INCOME TAX GUIDANCE. THE CREDIT UNION HAD NO UNRECOGNIZED TAX BENEFITS OR LIABILITIES AND NO ADJUSTMENTS TO ITS FINANCIAL POSITION, RESULTS OF OPERATIONS OR CASH FLOWS RELATED TO UNCERTAIN TAX POSITIONS TAKEN FOR THE YEAR ENDED DECEMBER 31, 2014 AND 2013. THE CREDIT UNION'S MOST RECENT EXAM COMPLETED BY THE INTERNAL REVENUE SERVICE COVERED TAX YEARS ENDING DECEMBER 31, 2008 AND 2009, RESPECTIVELY. MANAGEMENT EXPECTS TO RECEIVE A REFUND OF TAXES PREVIOUSLY PAID PURSUANT TO THOSE EXAMS. THE CREDIT UNION IS NO LONGER SUBJECT TO FEDERAL, STATE OR LOCAL INCOME TAX EXAMINATIONS BY TAX AUTHORITIES FOR 12 MONTHS PRIOR TO DECEMBER 31, 2011. IF ASSESSED, THE CREDIT UNION RECOGNIZES PENALTIES AND INTEREST ASSOCIATED WITH TAX MATTERS AS PART OF OPERATING EXPENSES. PART XI, LINE 2D - OTHER ADJUSTMENTS: LOSS ON SALE OF ASSETS 274,079. PART XI, LINE 4B - OTHER ADJUSTMENTS: RENTAL INCOME NET OF EXPENSES 94,479. PART XII, LINE 2D - OTHER ADJUSTMENTS: LOSS ON SALE OF ASSETS 274,079. PART XII, LINE 4B - OTHER ADJUSTMENTS: RENTAL INCOME NET OF EXPENSES 94,479. 1 SCHOLARSHIPS TO INDIVIDUALS OF WHICH NONE RECEIVED MORE THAN $5,000 7 7027 PART I, LINE 2: THE ORGANIZATION KEEPS RECEIPTS OR DOCUMENTATION FOR EACH SPONSORED EVENT. THE ORGANIZATION HAS A POLICY AND SET OF BY-LAWS FOR THE COMMUNITY OUTREACH COMMITTEE TO FOLLOW WHEN APPROVING EXPENDITURES FOR EVENTS. THE COC IS ASSIGNED BY SENIOR MANAGEMENT A BUDGETED EXPENDITURE AMOUNT FOR EACH YEAR. X 1 1 X X X X 0 1 0 JEFF ADAMS CEO/PRESIDENT 266812 0 26475 0 52892 0 235344 0 23187 0 604710 0 0 0 DEBORAH PARELIUS CFO/VP FINANCE & ACCOUNTING 146391 0 16552 0 546 0 12328 0 8913 0 184730 0 0 0 MARK NEUMANN COO/VP RETAIL DELIVERY 168468 0 16237 0 574 0 54756 0 7158 0 247193 0 0 0 GREG ROBINSON VP INFORMATION SERVICES 116177 0 13227 0 17500 0 10196 0 7698 0 164798 0 0 0 BRIAN GRYTDAL VP MARKETING 111005 0 12479 0 14645 0 12075 0 21869 0 172073 0 0 0 PART I, LINE 1A THE CREDIT UNION REIMBURSES LIMITED ACTUAL EXPENSES FOR SPOUSAL TRAVEL OF BOARD MEMBERS, SUPERVISORY COMMITTEE MEMBERS, THE CEO, AND SENIOR MANAGERS. THIS IS ONLY FOR TRAVEL RELATED TO CREDIT UNION BUSINESS. THE REIMBURSEMENTS ARE NOT TAXABLE COMPENSATION. PART I, LINE 4B JEFF ADAMS, CEO, PARTICIPATES IN A SUPPLEMENTAL NONQUALIFIED RETIREMENT PLAN. THE AMOUNT EARNED IN 2014 WAS $215,604. MARK NEUMANN, VICE PRESIDENT, PARTICIPATES IN A SUPPLEMENTAL NONQUALIFIED RETIREMENT PLAN. THE AMOUNT EARNED IN 2014 WAS $40,000. MARK NEUMANN VICE PRESIDENT EXECUTIVE COMPENSATION X 230875 230875 0 1 1 DEBORAH PARELIUS CHIEF FINANCIAL OFFICER EXECUTIVE COMPENSATION X 928000 928000 0 1 1 1158875 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 REGULATIONS SECTION 1.7872-15. FORM 990, PART VI, SECTION A, LINE 6 ENTITY HAS MEMBERS WHO ELECT MEMBERS OF THE BOARD. FORM 990, PART VI, SECTION A, LINE 7A ENTITY HAS ONE CLASS OF MEMBERS. FORM 990, PART VI, SECTION A, LINE 7B ENTITY HAS MEMBERS WHO HAVE RIGHTS TO RATIFY DECISIONS OF THE GOVERNING BODY. FORM 990, PART VI, SECTION B, LINE 11 THE CFO REVIEWS THE FORM 990 AND WILL MAKE A COMPLETE COPY OF IT AVAILABLE TO THE BOARD AT THE NOVEMBER 2015 BOARD MEETING. FORM 990, PART VI, SECTION B, LINE 15 CEO SALARY RANGES ARE PREPARED BY HUMAN RESOURCES BASED ON INDUSTRY COMPARABILITY DATA AND REVIEW BY THE COMPENSATION COMMITTEE. THE COMPENSATION COMMITTEE IS COMPRISED OF VOLUNTEER BOARD MEMBERS. CEO PERFORMANCE IS ASSESSED AND SALARY TRENDS ARE REVIEWED BY COMPENSATION COMMITTEE TO DETERMINE APPROPRIATE SALARY. THE SALARY RECOMMENDATION IS THEN PRESENTED TO THE FULL BOARD OF DIRECTORS FOR FINAL REVIEW AND APPROVAL. SENIOR MANAGER'S SALARY RANGES ARE PREPARED BY HUMAN RESOURCES BASED ON INDUSTRY COMPARABILITY DATA AND REVIEWED BY THE CEO AND THE COMPENSATION COMMITTEE. PERFORMANCE IS ASSESSED AND SALARY TRENDS ARE REVIEWED BY CEO TO DETERMINE RELEVANT SALARIES. EVERY FEW YEARS THE COMPENSATION DATA AND PROCESS IS REVIEWED BY AN OUTSIDE CONSULTANT. FORM 990, PART VI, SECTION C, LINE 18 THE ORGANIZATION MAKES ITS FORM 990 AVAILABLE UPON REQUEST. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION DOES NOT MAKE AVAILABLE TO THE PUBLIC THE ORGANIZATION'S GOVERNING DOCUMENTS OR CONFLICT OF INTEREST POLICY. THE ORGANIZATION PUBLISHES THEIR MONTHLY FINANCIAL STATEMENTS AT EACH BRANCH, AND THEIR QUARTERLY FINANCIAL STATEMENTS ARE PUBLISHED ON THE NCUA WEBSITE. THE ORGANIZATION'S ANNUAL REPORT IS AVAILABLE ON THEIR WEBSITE.