2014-08-15T17:20:20-07:00 2013-12-31 990 2013-01-01 916035907 QUALSTAR CREDIT UNION QUAL 8008480018 PO BOX 96730 BELLEVUE WA 980097730 Michael Elfstrom Chief Financial Officer 8008480018 2014-08-15 2013 2015-11-30 17:44:51Z MARK NELSON 2121 152ND AVE NE REDMOND WA 98052 19335710 0 1269 X www.qualstarcu.com X 1952 WA WE ARE A CREDIT UNION PROVIDING FINANCIAL PRODUCTS & SERVICES TO MEMBERS 9 9 126 9 127552 -25700 0 0 20598951 18290888 1090208 1044822 0 0 21689159 19335710 0 0 0 0 6245264 6702265 0 0 0 11392431 8608813 17637695 15311078 4051464 4024632 327726412 345713438 287873584 301855659 39852828 43857779 PROVIDE FINANCIAL PRODUCTS & SERVICES 0 0 Interest expense in the amount of $2,107,208 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 68,000 deposit accounts that can earn interest. The credit union expenses $266,168 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 20,000 open loan accounts. The credit union paid $225,718 during the year to insure member deposit accounts held at the credit union. Accounts on deposit at the credit union are insured up to $250,000 with the NCUA. 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 36230 0 1 126 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 2121 152nd AVE NE REDMOND WA 98052 GENE VIA Vice Chairman 3 0 X X 0 0 0 KIM BROWN Board Member 3 0 X 0 0 0 MITCHELL JOHNSON Board Member 3 0 X 1363 0 0 CHARLIE ANDREWS Board Member 3 0 X 2351 0 0 BILL ROCHESTER Board Secretary/Treasurer 3 0 X X 0 0 0 NOEL MCMURTRAY Board Member 3 0 X 0 0 0 LAWRENCE BINDNER JR Board Chairman 3 0 X 0 0 0 RICHARD URNESS Board Chairman 4 0 X X 0 0 0 JOEL SCHMIDT Board Member 3 0 X 0 0 0 MARK R NELSON President 40 0 X 270441 0 33490 MICHAEL G ELFSTROM CFO 40 0 X 151044 0 21458 ROBERT ARBUCKLE COA 40 0 X 136990 0 21498 KARA TAYLOR VP OF I.S. 40 0 X 119099 0 10476 LAURIE BROWN VP OF OPERATIONS 40 0 X 101204 0 10271 TRACEY ELFSTROM VP OF MEMBER RELATIONS 40 0 X 103232 0 4281 885724 0 101474 6 0 1 0 JHA Payment Processing Solutions PO Box 91101 Seattle WA 98111 Payment card and ATM processing 450615 Kaye Smith Business Graphics 4101 Oakdale Ave SW Renton WA 98057 Printing and statement production/mailing 384500 CO-OP FINANCIAL SERVICES 9692 HAVEN AVE RANCHO CUCAMONGA CA 91730 SHARED BRANCHING AND ATM NETWORK PROVIDER 411554 Jack Henry & Associates (Symitar) 8985 Balboa Ave San Diego CA 92123 Core processing for credit unions 318836 VISA PO Box 8999 San Francisco CA 94128 Credit card processor 271461 7 0 Interest on Loans 522130 11016416 11016416 0 0 Fee Income 522130 3982943 3974447 8496 0 Other Operating Income 522130 3291529 3172473 119056 0 0 0 0 0 18290888 986265 0 0 986265 0 0 0 0 0 0 0 0 0 0 0 58557 0 0 0 58557 58557 0 0 58557 0 19335710 18163336 127552 1044822 X 0 0 0 0 882011 0 4114123 575328 752810 377993 0 87526 74044 0 0 0 1797085 621081 1432309 310697 0 555337 0 58699 168807 2107208 0 187865 242449 Loan Servicing 377391 Provision for Loan Losses 266168 Member Share Insurance 225718 Miscellaneous 96429 0 15311078 0 0 0 1039369 1169773 27253788 25616269 0 0 3316975 1768886 977001 1004995 0 0 176688358 179417358 0 0 838483 209466 10058752 8348649 1755190 1710103 0 0 110265532 129238019 0 0 0 0 5591716 5578569 327726412 345713438 8533131 7745352 0 0 0 0 0 0 291575 270321 0 0 0 0 0 0 279048878 293839986 287873584 301855659 X 0 0 0 0 39852828 43857779 39852828 43857779 327726412 345713438 4024632 -19681 0 0 0 0 X 0 0 0 0 1 X 0 399359 399359 0 2597715 1539245 1058470 0 2191318 2191299 19 0 1918316 1886804 31512 0 2952044 2731301 220743 1710103 0 0 Federal Agency Notes AFS 17293946 F CDs at Banks and Credit Unions 111680050 C The Co-op 223690 C FSCC Shared Branch Network 15333 C CUDL 25000 C 129238019 0 Member share deposits 293839986 293839986 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 and the loans were sold to FNMA. X X 1 1 X X 0 0 0 MARK R NELSON President 223453 0 46988 0 7250 0 0 0 26240 0 303931 0 0 0 MICHAEL G ELFSTROM CFO 129764 0 21280 0 0 0 0 0 21458 0 172502 0 0 0 ROBERT ARBUCKLE COA 117555 0 19435 0 0 0 0 0 21498 0 158488 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 of the travel is over $600. MARK R NELSON CURRENT OFFICER SECURED SPLIT DOLLAR X 1000000 1047270 0 1 1 1047270 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 Policy's 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 prior to submission to the IRS. Both the VP of Finance and CFO 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 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 These are related to courier and mailing services, outside services, and ATM, card, and shared branching network expenses. Complete information was not yet available for 990T Form