2012-11-15T14:22:30-06:00 2011-12-31 910189318 MOSS ADAMS LLP 2707 COLBY AVE SUITE 801 EVERETT WA 982013510 990 2011-01-01 910659059 HARBORSTONE CREDIT UNION HARB 2535842260 PO BOX 4207 TACOMA WA 984380207 LAURIE LENO 2535842260 2012-11-14 1 ROBERT GRANNUM P00355876 4252597227 2011 2016-02-24 21:20:13Z PHIL JONES PO BOX 4207 TACOMA WA 984380207 47372056 0 X WWW.HARBORSTONE.COM X 1955 WA THE CREDIT UNIONS IS A MEMBER OWNED, NOT FOR PROFIT, COOPERATIVE, OPERATED FOR THE PURPOSE OF CREATING A MEANS WHEREBY MEMBERS CAN PROVIDE EACH OTHER WITH NEEDED FINANCIAL SERVICE. 7 7 243 11 477359 -93143 0 0 31662349 31316353 7119139 7410113 386724 8430 39168212 38734896 0 68495 0 0 15106654 13030915 0 0 0 26485063 21251732 41591717 34351142 -2423505 4383754 742247902 756100862 658637380 666069277 83610522 90031585 HARBORSTONE CREDIT UNION HELPS TO MAKE MEMBERS' FINANCIAL DREAMS COME TRUE. 0 0 PROVIDING CONSUMER AND MORTGAGE LOANS FOR 10,981 MEMBERS TOTALING $253,596,491. PROVIDING BUSINESS LOANS TO 244 MEMBERS TOTALING $101,775,651 MAINTAINING DEPOSITS ON 100,014 MEMBER AND BUSINESS ACCOUNTS TOTALING $650,434,902. 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 1 0 1 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 1 17324 0 1 243 1 1 1 0 0 0 0 0 X 7 7 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 1 1 X HARBORSTONE CREDIT UNION 2535842260 9611 GRAVELLY LAKE DRIVE SW LAKEWOOD WA 984992761 BONNIE KERN 2.00 X X 0 0 31 JOE PENNINGTON 2.00 X X 0 0 24 ANN ANDERSON 2.00 X X 0 0 31 BOB NELSON 2.00 X 0 0 24 RICHARD EVANS 2.00 X 0 0 24 SUZANNE COLPITTS 2.00 X 0 0 31 WALT FROST 2.00 X 0 0 24 PHIL JONES 40.00 X 270230 0 40746 LAURIE LENO 40.00 X 74981 0 2770 JOHN RENFORTH 40.00 X 445232 0 29765 ROGER JOHANSEN 40.00 X 158743 0 28395 MIKE DECIUS 40.00 X 129354 0 22727 STEVE CROSBY 40.00 X 130949 0 24437 DOUG RICHARDSON 40.00 X 148217 0 27029 1357706 0 176058 6 0 1 0 DIGITAL INSIGHT 7535 TORREY SANTA FE RD SAN DIEGO CA 92129 WEB SITE HOSTING AND ONLINE BANKING 1111337 FIDELITY INFORMATION SERVICES PO BOX 4535 CAROL STREAM IL 60197 COMPUTER HARDWARD AND SOFTWARE 1064137 SHESHUNOFF CONSULTING AND SOLUTIONS PO BOX 2016 AUSTIN TX 78768 CONSULTING 765188 COOK SECURITY GROUP 5841 SE INTERNATIONAL WAY MILWAUKIE OR 97222 SECURITY, ATM HARDWARE AND MAINTENANCE 306818 BIT LLC 710 SW 34TH ST RENTON WA 98057 STATEMENT PROCESSING AND POSTAGE 305972 16 INTEREST FROM LOANS 522100 20205515 20205515 OTHER NON-INTEREST INC 522100 5500975 5070815 430160 SERVICE CHARGES & FEE 522100 5302854 5302854 NET GAIN ON SALE OF LO 522100 307009 307009 31316353 7532731 7532731 278855 365809 -86954 -86954 -86954 6756642 1392091 6703545 1567806 53097 -175715 -122618 -122618 INCOME FROM JOINT VENT 522100 95384 48185 47199 95384 38734896 30934378 477359 7323159 68495 388978 9105991 725116 2010931 799899 889279 45973 65700 2301910 667111 1481826 852046 1037567 132344 4881112 1814746 182260 PROVISIONS FOR LOAN LOS 3679613 NCUSIF STABILIZATION EX 1525355 LOAN SERVICES 1380215 PROFESSIONAL DUES 134622 180053 34351142 5722369 3760576 32606841 57133361 356051904 348417082 1197093 47904751 20366107 28329150 27538644 304649030 306332996 14888608 11721110 742247902 756100862 6407274 4295846 483528 -7104 12126344 11126344 639620234 650654191 658637380 666069277 X 0 0 0 0 83610522 90031585 83610522 90031585 742247902 756100862 X 4383754 2037309 X X 0 0 0 0 1 7582118 7582118 23320056 5636440 17683616 2648419 1793419 855000 13862484 12490488 1371996 491674 445760 45914 27538644 5830531 F AVAILABLE FOR SALE SECURITIES 290390534 F 457(F) DEFERRED COMPENSATION PLAN 10111931 F 306332996 MEMBER'S SHARES 650434902 DEFERRED COMPENSATION 219289 650654191 PART IV, LINE 2B: THE ESCROW ACCOUNTS HOLD AMOUNTS COLLECTED WITH THE MEMBERS' MORTGAGE PAYMENTS THAT ARE TO BE USED TO PAY THOSE MEMBERS' HOMEOWNERS' INSURANCE PREMIUMS AND PROPERTY TAXES WHEN DUE. 1 PIERCE MILITARY AND BUSINESS ALLIANCE PO BOX 1082 TACOMA WA 98401 383675245 501(C)(3) 15000 0 TO SUPPORT MILITARY HEALTH, WELFARE AND MORALE 1 PROCEDURE FOR MONITORING GRANTS IN THE U.S.: PART I, LINE 2: SCHEDULE I, PART I, LINE 2: REQUESTS FOR GRANTS ARE EVALUATED BY THE CREDIT UNION QUARTERLY. ORGANIZATIONS REQUESTING OR RECEIVING GRANTS UNDER $2,500 MUST PROVIDE THEIR IRS EXEMPTION LETTER STATING THEY ARE 501(C)(3), A CORPORATE GIVING APPLICATION PRODUCED BY THE CREDIT UNION, A COMPLETED BUDGET FOR THE EVENT OR PROJECT AND EXPLAIN THE SOURCES OF REVENUE AND SUPPORTING DOCUMENTATION FOR USE OF FUNDS. ORGANIZATIONS REQUESTING OR RECEIVING GRANTS OVER $2,500 MUST PROVIDE THEIR IRS EXEMPTION LETTER STATING THEY ARE 501(C)(3), A CORPORATE GIVING APPLICATION PRODUCED BY THE CREDIT UNION, A COMPLETED BUDGET FOR THE EVENT OR PROJECT AND EXPLAIN THE SOURCES OF REVENUE, COPIES OF CURRENT AND PAST TWO YEARS' AUDITED FINANCIALS, A COMPLETE LIST OF BOARD MEMBERS AND MANAGEMENT AND SUPPORTING DOCUMENTATION FOR USE OF FUNDS. THE CORPORATE GIVING APPLICATION REQUESTS THE GRANT'S PURPOSE, HOW THE FUNDS WILL BE USE AND HOW THE FUNDS WILL IMPACT THE LOCAL COMMUNITY. X X 1 1 X X X X X 0 1 0 PHIL JONES 270230 0 0 0 0 0 29400 0 11346 0 310976 0 0 0 JOHN RENFORTH 166996 0 0 0 278236 0 20197 0 9568 0 474997 0 0 0 ROGER JOHANSEN 158743 0 0 0 0 0 19191 0 9204 0 187138 0 0 0 MIKE DECIUS 129354 0 0 0 0 0 15547 0 7180 0 152081 0 0 0 STEVE CROSBY 130949 0 0 0 0 0 15731 0 8706 0 155386 0 0 0 DOUG RICHARDSON 148217 0 0 0 0 0 17831 0 9198 0 175246 0 0 0 PART I, LINE 1A PART I, LINE 1A: TRAVEL FOR COMPANIONS: SPOUSES/COMPANIANS ARE ALLOWED TO TRAVEL WITH EXECUTIVE MANAGEMENT AND BOARD MEMBERS AND IS LIMITED TO $600. DISCRETIONARY SPENDING ACCOUNT: THE DISCRETIONARY SPENDING ACCOUNT IS ONLY AVAILABLE TO THE CEO AND IS FOR AN AMOUNT UP TO $150/MONTH TO BE USED FOR REIMBURSEMENT OF OUT OF POCKET EXPENSES PRIMARILY RELATED TO CHARITABLE DONATIONS. PART I, LINE 4B THE CREDIT UNION HAS DEFERRED COMPENSATION AGREEMENTS WITH MEMBERS OF THE EXECUTIVE MANAGEMENT TEAM THAT PROVIDE BENEFITS PAYABLE TO THESE EMPLOYEES IF THEY REMAIN EMPLOYED BY THE CREDIT UNION UNTIL A SPECIFIC DATE. IF THESE EMPLOYEES BECOME FULLY DISABLED OR UPON DEATH, A PORTION OF THE BENEFIT WILL BE DISBURSED AS DEFINED IN THE AGREEMENTS. THE BENEFITS ARE SUBJECT TO FORFEITURE IF EMPLOYMENT IS TERMINATED FOR CAUSE OR IF THE EMPLOYEE IS NO LONGER EMPLOYED BY THE CREDIT UNION ON THE PAYMENT DATE AS DEFINED. THE ESTIMATED LIABILITY UNDER THE AGREEMENTS IS BEING ACCRUED OVER THE REMAINING TERM OF EACH AGREEMENT. THE CREDIT UNION HAS ACCRUED APPROXIMATELY $1,064,000 UNDER THESE AGREEMENTS AT DECEMBER 31, 2011, INCLUDED IN ACCRUED EXPENSES AND OTHER LIABILITIES. BENEFITS TO MEMBERS OF THE EXECUTIVE MANAGEMENT TEAM MAY BE FUNDED BY LIFE INSURANCE POLICIES OWNED BY THE CREDIT UNION, WHICH HAVE CASH VALUES OF $10,111,931 AT DECEMBER 31, 2011. FORM 990, PART VI, SECTION A, LINE 6 THE CREDIT UNION'S MEMBERS HAVE RIGHTS TO ELECT MEMBERS OF THE GOVERNING BODY. THE CREDIT UNION'S MEMBERS ALSO RECEIVE A SHARE OF THE ORGANIZATION'S PROFITS 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, 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 BODY, 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 BOTH THE VP OF ACCOUNTING SERVICES AND CFO REVIEW THE FORM 990 PRIOR TO FILING. A COPY OF FORM 990 WILL ALSO BE PROVIDED TO THE BOARD OF DIRECTORS PRIOR TO FILING. FORM 990, PART VI, SECTION B, LINE 12C ON AN ANNUAL BASIS, ALL EMPLOYEES ARE REQUIRED TO REVIEW THE CONFLICT OF INTEREST POLICY (2-7). WE OBTAIN SIGNATURES FROM EACH EMPLOYEE, VERIFYING THAT THEY ATTEST TO HAVING READ THE POLICY. ADDITIONALLY, EACH NEW EMPLOYEE HIRED BY THE CREDIT UNION REVIEW THE CONFLICT OF INTEREST POLICY ON THEIR FIRST DAY OF EMPLOYMENT. FORM 990, PART VI, SECTION B, LINE 15 WE UTILIZE VARIOUS REPUTABLE, THIRD-PARTY MARKET DATA SOURCES (MILLIMAN, CUES, ETC.) TO AID IN SETTING THE COMPENSATION OF OUR OFFICERS AND KEY EMPLOYEES. GENERALLY, FINAL COMPENSATION DECISIONS ARE MADE BY THE SENIOR VICE PRESIDENT/CHIEF OPERATIONS OFFICER. COMPENSATION DECISIONS FOR THE PRESIDENT/CEO ARE MADE BY THE BOARD OF DIRECTORS. FORM 990, PART VI, SECTION C, LINE 19 THE GOVERNING DOCUMENTS AND FINANCIAL STATEMENTS ARE MADE AVAILABLE TO THE PUBLIC IN THE ANNUAL REPORT AND ANNUAL MEETING, WHICH IS HELD IN MARCH OF EACH YEAR. THE CONFLICTS OF INTEREST POLICY IS NOT MADE PUBLIC. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 5: NET UNREALIZED GAINS ON INVESTMENTS: 1,746,974. CU SERVICE GROUP BEGINNING OF YEAR RETAINED EARNINGS 316,248. BOOK/TAX VARIANCE ON INCOME FROM JOINT VENTURES -25,913. TOTAL TO FORM 990, PART XI, LINE 5: 2,037,309. FORM 990, PART XI, LINE 2C: THE PROCESS FOR OVERSEEING THE AUDIT AND THE SELECTION OF AN INDEPENDENT ACCOUNTANT HAS NOT CHANGED DURING THE COURSE OF THE YEAR. THE MARKETING TEAM LLC 9611 GRAVELLY LAKE DR SW LAKEWOOD WA 98499 200689466 MARKETING SERVICES WA 33 0 HARBORSTONE CREDIT UNION CU SERVICES GROUP LLC 9611 GRAVELLY LAKE DR SW LAKEWOOD WA 98499 262064794 BUSINESS LENDING WA 44859 1133898 HARBORSTONE CREDIT UNION FINANCIAL SERVICES MANAGEMENT GROUP LLC 6019 LAKE GROVE DR SW 2ND FLOOR LAKEWOOD WA 98499 202478150 INSURANCE SERVICES WA HARBORSTONE CREDIT UNION UNRELATED 47792 481318 0 1 0.42370 0 0 0 0 0 0 0 0 0 0 1 0 1 0 1 0 0 0