2011-08-15T14:02:44-05:00 2010-12-31 RSM MCGLADREY INC 801 NICOLLET MALL SUITE 1100 MINNEAPOLIS MN 55402 990 2010-01-01 910440744 CREDIT UNIONS IN THE STATE OF WASHINGTON TWINSTAR CREDIT UNION CRED 3603579911 PO BOX 718 OLYMPIA WA 98507 SCOTT DAUKAS 3603579911 2011-08-15 1 COLLIN F BUZZELL 6125738750 2010 2016-02-24 21:20:13Z MARSHALL ELLISON PO BOX 718 OLYMPIA WA 98507 58866547 0 X WWW.TWINSTARCU.COM X 1937 WA TWINSTAR CREDIT UNION HELPS OUR MEMBERS GET AHEAD FINANCIALLY BY PROVIDING A VARIETY OF FINANCIAL SERVICES THAT CREATE RELATIONSHIPS AND FEATURE EXCEPTIONAL BENEFITS AND ADVANTAGES. 8 8 363 38 390988 -109842 0 0 49136377 52329065 5933247 5562618 0 974864 55069624 58866547 88691 81609 11982911 8449030 19041547 19654576 0 0 0 29300440 29325772 60413589 57510987 -5343965 1355560 721776015 722787853 656148809 655182306 65627206 67605547 X IN 1937 CONGRESS GRANTED CREDIT UNIONS WITH A FEDERAL TAX-EXEMPT STATUS BASED UPON THEIR COOPERATIVE STRUCTURE - THAT THEY ARE OPERATED ENTIRELY BY AND FOR THEIR MEMBERS. DESPITE THE EVOLUTION OF PRODUCTS AND SERVICES AND EXPANDED FIELDS OF MEMBERSHIP, CREDIT UNIONS CONTINUE TO OPERATE AS DEMOCRATICALLY CONTROLLED COOPERATIVE INSTITUTIONS, SERVING ONLY THEIR MEMBERS, ON A NOT-FOR-PROFIT BASIS. CONGRESS RATIFIED THE FEDERAL TAX-EXEMPTION ON SEVERAL OCCASIONS, MOST RECENTLY IN 1998 WITH THE ENACTMENT OF H.R. 1151, THE CREDIT UNION MEMBERSHIP ACCESS ACT. 0 0 SHARE ACCOUNTS - TWINSTAR SAVINGS ACCOUNTS OFFER ADVANTAGES TO MEMBERS OF ALL AGES. TWINSTAR HAD 83,927 MEMBER-OWNER ACCOUNTS ON DECEMBER 31, 2010. MEMBER SAVINGS ACCOUNTS PAY DIVIDENDS MONTHLY AND OFFER ACCESS THROUGH THE BRANCH NETWORK, HOME BANKING VIA THE INTERNET OR TELEPHONE AND ATM'S WORLDWIDE. SPECIAL SAVINGS ACCOUNTS ARE DESIGNED FOR CHILDREN AND TEENAGERS TO ENCOURAGE THE DEVELOPMENT OF CONSISTENT SAVINGS HABITS. CHECKING ACCOUNTS - TWINSTAR PROVIDES CHECKING ACCOUNTS FOR CONSUMERS WITH VARIOUS FEATURES, FROM FREE ACCOUNTS TO THOSE WITH ENHANCED BENEFITS. MOST OFFER DIVIDENDS THAT ARE PAID MONTHLY. ADDITIONALLY, TWINSTAR EXTENDS THE REACH OF THESE ACCOUNTS TO ALL MEMBERS WITH FREE DEBIT CARDS, INTERNET ACCOUNT ACCESS AND FREE USE OF THE INTERNET BILL PAYER PLATFORM. 64% OF TWINSTAR MEMBERS HAVE A CHECKING ACCOUNT. CONSUMER LOANS - TWINSTAR CREDIT UNION HAS PROVIDED VEHICLE LOANS SINCE ITS EARLY YEARS. THE CONSUMER LOAN PRODUCT LINE NOW INCLUDES EFFICIENT UNDERWRITING AND FLEXIBLE OFFERINGS FOR RECREATIONAL VEHICLES, BOATS AND MOTORCYCLES. TWINSTAR ALSO OFFERS VISA CREDIT CARDS TO MEMBERS. THIS PRODUCT LINE SATISFIES MEMBERS DIVERSE BORROWING NEEDS, FROM A SHARE SECURED CARD TO A CREDIT LINE FOR YOUNG BORROWERS TO A CARD WITH LARGER CREDIT LINES AND LOW INTEREST RATES. TWINSTAR ALSO OFFERS HOME EQUITY/REAL ESTATE LOANS AND BUSINESS LOANS. 0 0 1 0 0 0 1 0 1 1 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 1 24204 0 1 363 1 1 1 0 0 0 0 0 X 8 8 0 0 0 0 1 1 1 1 1 0 1 1 1 1 1 1 1 1 1 1 0 X DAVID RECENIELLO 3609234408 PO BOX 718 OLYMPIA WA 98507 RON HASTIE 1.00 X X 0 0 0 RHODETTA SEWARD 1.00 X X 0 0 0 SCOTT HORNER 1.00 X X 0 0 0 ERIK KUPKA 1.00 X 0 0 0 GAYLA GJERTSEN 1.00 X 0 0 0 JOHN PARR 1.00 X 0 0 0 JOANNE SANFORD 1.00 X 0 0 0 STEVE VENABLES 1.00 X 0 0 0 MARSHALL ELLISON 40.00 X 454664 0 21749 JEFF KENNEDY 40.00 X 184467 0 17709 DAVID RECENIELLO 40.00 X 151074 0 15731 JOHN JOHNSON 40.00 X 200183 0 17764 BECKY BREEN 40.00 X 123608 0 10981 JIM MCCARTHY 40.00 X 113397 0 12933 MATT DEVLIN 40.00 X 112250 0 11933 CONNIE MCGLONE 40.00 X 111557 0 13501 JAN SUESS 40.00 X 123162 0 14071 1574362 0 136372 9 0 1 0 CUSTOM INC 6004 CAPITOL BLVD S TUMWATER WA 98501 DATA PROCESSING, COURIER 1472924 FULCRUM CONSULTING LLC PO BOX 7518 OLUMPIA WA 98507 ADMINISTRATIVE SERVICES 647877 MOMENTUM INC 600 UNIVERSITY ST STE 1818 SEATTLE WA 98101 CONSTRUCTION SERVICES 499688 SETTLEMENT ONE 2605 CAMINO DEL RIO S 4TH FL SAN DIEGO CA 92108 APPRAISAL SERVICES 471210 DIEBOLD PO BOX 643543 PITTSBURGH PA 15264 ATM MAINTENANCE, ALARM MONITORING 369083 17 INTEREST ON LOANS 522100 32272049 32272049 FEES AND CHARGES 522100 14515403 14124415 390988 VISA/INTERCHANGE INCOM 522100 5177763 5177763 OTHER INCOME 522100 363850 363850 52329065 2281683 2281683 3280935 3280935 3280935 3280935 BARGAIN PURCHASE GAIN 522100 974864 974864 974864 58866547 52912941 390988 5562618 33727 47882 8449030 1063341 14217699 1490256 1715413 1167867 50997 181436 2000 2234866 1131883 3735525 1825911 1975471 136858 415431 118788 171948 1657713 268374 PROVISION FOR LOAN LOSS 7604670 MEMBER SERVICES 4438915 NCUSIF PREMIUM ASSESSME 1584674 IMPAIRMENT OF CORP CAPI 557038 LOAN SERVICING EXPENSES 376606 856668 57510987 101206175 48053830 2895608 2994331 489696033 503417919 790490 47248342 17011126 28683296 30237216 42207533 88500095 29975465 21331374 26321415 28253088 721776015 722787853 5587897 7343603 1969346 3606506 6000000 3000000 642591566 641232197 656148809 655182306 X 0 0 0 0 65627206 67605547 65627206 67605547 721776015 722787853 X 1355560 622781 X 0 1 1 X 0 150 0 0 ORGANIZATIONS DIRECT AND INDIRECT POLITICAL CAMPAIGN ACTIVITIES: PART I-A, LINE 1: TWINSTAR CHOOSES TO VOLUNTARYILY CONTRIBUTE TO CULAF (CREDIT UNION LEGISLATIVE ACTION FUND). THE CREDIT UNION LEGISLATIVE ACTION FUND OR CULAF IS ACTUALLY A PAIR OF POLITICAL ACTION COMMITTEES (PACS) ADMINISTERED BY THE LEAGUE ON BEHALF OF WASHINGTON'S CREDIT UNIONS. CULAF SUPPORTS THE ELECTION OF LEGISLATORS THAT SUPPORT CREDIT UNION INTERESTS AND IS ADMINISTERED BY A BOARD OF TRUSTEES. 0 1 6002180 6002180 24966798 6770001 18196797 3450447 1438172 2012275 12828917 8802953 4025964 30237216 SHAREHOLDER DEPOSITS 634576596 DEFERRED COMPENSATION LIABILITIES 6655601 641232197 58866547 57510987 1355560 -619349 1242130 622781 1978341 58866547 0 58866547 0 58866547 57510987 0 57510987 0 57510987 PART IV, LINE 2B: TWINSTAR CREDIT UNION HAS AN ESCROW ACCOUNT FOR MORTGAGES. DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X: TWINSTAR CREDIT UNION ADOPTED FIN48 ON JANUARY 1, 2009. AS A RESULT OF THE IMPLEMENTATION OF THIS STANDARD, THE CREDIT UNION DID NOT RECOGNIZE ANY LIABILITY FOR UNCERTAIN TAX POSITIONS. PART XI, LINE 8 - OTHER ADJUSTMENTS: EQUITY ACQUIRED IN MERGERS 1,242,130. 1 X 2010 CLASSROOM CASH AWARDS 167 24882 2010 HIGH SCHOOL SCHOLARSHIPS 15 15000 2010 HIGHER EDUCATION SCHOLARSHIPS 8 8000 PROCEDURE FOR MONITORING GRANTS IN THE U.S.: PART I, LINE 2: SCHEDULE I, PART I, LINE 2: HIGH SCHOOL SCHOLARSHIP PROGRAM APPLICANTS ARE NOTIFIED OF THE OUTCOME AND AWARD CERTIFICATES ARE CREATED FOR EACH SCHOLARSHIP. THE WINNER'S SCHOOL IS CONTACTED FOR THE AWARD CEREMONY DATE AND INFORMATION. IF POSSIBLE, THE CREDIT UNION ARRANGES FOR THE RESPECTIVE BRANCH MANAGER TO PRESENT THE AWARD AND SENDS THE BRANCH MANAGER THE CERTIFICATE WITH CEREMONY INFORMATION AND INSTRUCTIONS. IF NOT, THE AWARD CERTIFICATE IS MAILED WITH A LETTER OF INSTRUCTION TO THE SCHOOL PRIOR TO THE CEREMONY. ON THE DATE OF EACH AWARD PRESENTATION, THE APPROPRIATE WINNER IS SENT A LETTER OF CONGRATULATIONS WITH INSTRUCTIONS FOR RECEIVING FUNDS. HIGH SCHOOL PROGRAM RECIPIENTS MUST SEND THE ADMINISTRATION SPECIALIST VERIFICATION OF ENROLLMENT IN AN INSTITUTION OF HIGHER LEARNING BEFORE THEIR AWARD FUNDS ARE GENERATED AND MAILED TO THE SCHOOL. HIGHER EDUCATION SCHOLARSHIP PROGRAM WINNERS RECEIVE A LETTER OF CONGRATULATIONS. APPROPRIATE DOCUMENTATION IS UPDATED FOR THE SCHOLARSHIPS GIVEN IN AN INDIVIDUAL'S NAME, AND NOTIFICATION IS MAILED TO THE APPROPRIATE CONTACT. A LETTER IS SENT TO ALL APPLICANTS WHO DID NOT WIN, THANKING THEM FOR PARTICIPATING IN THE PROGRAM. BRANCHES DISPLAY THE WINNER OF EACH AWARD. THE MARKETING DEPARTMENT RECEIVES WINNER INFOMRATION AND ANY WINNER PHOTOS THAT WERE RECEIVED WITH APPLICATIONS TO BE INCLUDED IN THE UPCOMING CREDIT UNION NEWSLETTER. THANK YOU LETTERS ARE SENT TO COMMITTEE MEMBERS, LISTING THE WINNERS. AN ACCOUNTS PAYABLE SHEET IS GENERATED IN THE SYSTEM FOR EACH SCHOLARSHIP AWARD, AND EXPENSED TO THE GENERAL LEDGER (GL). THE ACCOUNTS PAYABLE DEPARTMENT RECEIVES THIS INFORMATION ALONG WITH A COPY OF THE STUDENT'S PROOF OF ENROLLMENT AND CONGRATULATIONS LETTER. ACCOUNTS PAYABLE CUTS A CHECK FROM THE APPROPRIATE GL AND SENDS IT TO THE ADMINISTRATION SPECIALIST. THE ADMINISTRATION SPECIALIST SENDS A LETTER OF EXPLANATION AND A CHECK FOR THE SCHOLARSHIP FUNDS DIRECTLY TO THE APPROPRIATE SCHOOL OF ATTENDANCE. A COPY IS ALSO SENT TO EACH SCHOLARSHIP RECIPIENT. ALL RELATED DOCUMENTATION IS RETAINED IN ADMINISTRATION FOR THREE YEARS AND ALL COPIES OF APPLICATIONS USED BY COMMITTEE MEMBERS ARE SHREDDED. X X 1 1 X X 0 0 0 MARSHALL ELLISON 442414 0 0 0 12250 0 14700 0 7049 0 476413 0 0 0 JEFF KENNEDY 184467 0 0 0 0 0 11196 0 6513 0 202176 0 0 0 DAVID RECENIELLO 151074 0 0 0 0 0 8990 0 6741 0 166805 0 0 0 JOHN JOHNSON 187933 0 0 0 12250 0 11023 0 6741 0 217947 0 0 0 PART I, LINE 1A TRAVEL FOR COMPANIONS - SPOUSE/DOMESTIC PARTNER EXPENSES WILL BE PAID BY THE CREDIT UNION AND ARE INCLUDED IN THE BUDGET. HEALTH OR SOCIAL CLUB DUES - THE CREDIT UNION PURCHASED A GOLF MEMBERSHIP FOR THE CEO, WHICH IS USED TO TAKE VENDORS AND BUSINESS ASSOCIATES GOLFING WHEN THEY ARE IN TOWN. FORM 990, PART VI, SECTION A, LINE 6 THE CREDIT UNION'S MEMBERS HAVE RIGHTS TO ELECT THE 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 THE 990 IS REVIEWED BY THE CONTROLLER AND THE CFO. A COPY WILL BE PRESENTED TO THE BOARD OF DIRECTORS PRIOR TO ELECTRONICALLY FILING FORM 990 WITH THE IRS. FORM 990, PART VI, SECTION B, LINE 12C MANAGEMENT PROVIDES A CONFLICT OF INTEREST QUESTIONNAIRE AND PERSONAL DISCLOSURE STATEMENT ANNUALLY TO ALL EMPLOYEES AND VOLUNTEERS OF TWINSTAR CREDIT UNION STIPULATING A DATE FOR THE COMPLETION AND RETURN OF THE PERSONAL DISCLOSURE STATEMENTS. EXECUTIVE COMMITTEE REVIEWS THE PERSONAL DISCLOSURE STATEMENTS TO VERIFY THAT NO CONFLICT OF INTEREST EXISTS. EXECUTIVE COMMITTEE DETERMINES WHICH SITUATIONS CONSTITUTE A CONFLICT OF INTEREST. THE BOARD OF DIRECTORS RESOLVES CONFLICTS OF INTEREST AS DETERMINED BY EXECUTIVE COMMITTEE. FORM 990, PART VI, SECTION B, LINE 15 THE CREDIT UNION UTILIZES MULTIPLE REGIONAL, NATIONAL, AND INDUSTRY SALARY SURVEYS TO REVIEW AND/OR SET SALARY LEVELS. AVP HUMAN RESOURCES HAS RESPONSIBILITY FOR ADMINISTERING THE CREDIT UNION COMPENSATION PROGRAM, WORKING WITH APPROPRIATE SENIOR MANAGEMENT TO INSURE THAT OUR COMPENSATION SCHEDULE IS IN KEEPING WITH THE POLICY OF THE CREDIT UNION THROUGH A BALANCE OF MARKET COMPETITIVENESS AND INTERNAL EQUITY. FORM 990, PART VI, SECTION C, LINE 19 A. AVAILABILITY AND DISCLOSURE OF CORPORATE RECORDS TO MEMBERS. CREDIT UNION MEMBERS HAVE THE RIGHT TO BE PROPERLY INFORMED OF THE CREDIT UNION OPERATIONS. IN ORDER TO BE PROPERLY INFORMED, THE CREDIT UNION RECOGNIZES THE NEED TO MAKE AVAILABLE TO AND DISCLOSE CERTAIN CREDIT UNION CORPORATE RECORDS UPON REQUEST. CONSISTENT WITH THE ACT AND THEIR FIDUCIARY RESPONSIBILITIES, THE BOARD HAS DEVELOPED THE FOLLOWING GUIDELINES FOR DISCLOSURE OF CREDIT UNION CORPORATE RECORDS THAT FAIRLY BALANCE THE CREDIT UNION MEMBERS' RIGHT TO BE INFORMED AND THE NEED FOR THE CREDIT UNION TO PROTECT CONFIDENTIAL AND PROPRIETARY DOCUMENTS OF THE CREDIT UNION AND PRIVACY INFORMATION OF EMPLOYEES. GUIDELINES FOR REQUESTING CREDIT UNION CORPORATE RECORDS- A MEMBER REQUESTING ANY CREDIT UNION CORPORATE RECORDS MUST SPECIFICALLY IDENTIFY THE DISCLOSABLE RECORDS REQUESTED. THE CREDIT UNION MAY REQUIRE THE MEMBER TO SIGN A CONFIDENTIALITY AGREEMENT TO PROTECT THE CREDIT UNION FROM UNAUTHORIZED DISCLOSURE OF CERTAIN PROPRIETARY INFORMATION (CREDIT UNION RECORDS II-VII LISTED BELOW). B. AVAILABILITY AND DISCLOSURE OF CREDIT UNION CORPORATE RECORDS. UPON A PROPER REQUEST, THE CREDIT UNION WILL MAKE THE FOLLOWING DOCUMENTS AVAILABLE TO MEMBERS: I. ARTICLES AND BYLAWS. (CONFIDENTIALITY AGREEMENT NOT REQUIRED) II. MINUTES OF MEMBERSHIP MEETINGS. III. ANNUAL FINANCIAL REPORT IV. FINANCIAL REPORTS AND FORMS. 5300 CALL REPORTS. FORM 990 (SUBJECT TO THE CREDIT UNION'S DISCLOSURE GUIDELINES FOR FORM 990). V. CODE OF ETHICS. VI. CORPORATE GOVERNANCE POLICIES. CORPORATE GOVERNANCE GUIDELINES FOR MEMBERS MEETINGS AND ACTIONS. MEMBERS RIGHTS POLICY. VII. BOARD OF DIRECTORS AND SUPERVISORY COMMITTEE. NAMES, BIOGRAPHICAL INFORMATION, AND COMMITTEE ASSIGNMENTS. C. LIMITED ACCESS TO CREDIT UNION RECORDS. THE CREDIT UNION DOES NOT MAKE ALL CREDIT UNION RECORDS AVAILABLE TO GENERAL MEMBER REQUESTS DUE TO THE CONFIDENTIAL AND PROPRIETARY NATURE OF THE INFORMATION CONTAINED IN THE RECORDS, THE DISCLOSURE OF WHICH WOULD CREATE A COMPETITIVE OR REPUTATION RISK TO THE CREDIT UNION AND AN INVASION OF PRIVACY OF MEMBERS' AND EMPLOYEES' PERSONAL INFORMATION. THE CREDIT UNION CANNOT DISCLOSE MEMBER NAMES OR ACCOUNT INFORMATION OR MAKE AVAILABLE A MEMBERSHIP LIST UNLESS REQUIRED BY LAW. SIMILARLY, THE CREDIT UNION DOES NOT MAKE MINUTES OF BOARD OF DIRECTOR MEETINGS AVAILABLE DUE TO PROPRIETARY, STRATEGIC BUSINESS, AND PRIVATE EMPLOYMENT MATTERS ADDRESSED AT SUCH MEETINGS. MEETINGS OF THE BOARD AND BOARD COMMITTEES ARE OPEN TO THE BOARD MEMBERS, SUPERVISORY COMMITTEE MEMBERS, BOARD COMMITTEE MEMBERS, AND SUCH CREDIT UNION MANAGEMENT AS THE BOARD INVITES TO SUCH MEETINGS. IN ACCORDANCE WITH THE ACT, BOARD AND BOARD COMMITTEE MEETINGS ARE NOT OPEN TO THE GENERAL MEMBERSHIP DUE TO THE STRATEGIC BUSINESS, PRIVATE FINANCIAL AND EMPLOYMENT RELATED INFORMATION DISCUSSED AT SUCH MEETINGS. ALSO, THE CREDIT UNION, AS A MATTER OF LAW, CANNOT DISCLOSE THE CONTENTS OF ANY EMPLOYMENT OR BENEFITS AGREEMENT OF ANY EMPLOYEE INCLUDING THE CEO. THE CREDIT UNION, IN ITS SOLE DISCRETION AND ON A CASE-BY-CASE REQUEST AND DETERMINATION, MAY CONSIDER A SPECIFIC RECORD REQUEST WITH RESPECT TO THE OTHER TYPES OF CREDIT UNION RECORDS BALANCING THE MEMBER'S NEED FOR THE INFORMATION AND THE CREDIT UNION'S NEED TO PROTECT SUCH RECORDS OR INFORMATION FROM DISCLOSURE. THE CREDIT UNION MAY REQUIRE THE MEMBER TO SIGN A CONFIDENTIALITY AGREEMENT TO PROTECT THE CREDIT UNION FROM UNAUTHORIZED DISCLOSURE OF ANY PROPRIETARY INFORMATION. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 5: NET UNREALIZED LOSSES ON INVESTMENTS: -619,349. EQUITY ACQUIRED IN MERGERS 1,242,130. TOTAL TO FORM 990, PART XI, LINE 5: 622,781. FULCRUM CONSULTING LLC 711 CAPITOL WAY SOUTH SUITE 708 OLYMPIA WA 98501 260473592 CONSULTING WA 1233776 874440 TWINSTAR CREDIT UNION CREDIT UNION SERVICES THROUGH OPERATIONS MANAGEMENT INC (CUSTOM) 6004 CAPITAL BLVD SOUTH TUMWATER WA 98501 911283584 DATA PROCESSING WA TWINSTAR CREDIT UNION C 1449545 399966 1.00000 1 0 0 1 0 0 0 0 1 0 0 1 0 0 1 1 1 0 CREDIT UNION SERVICES THROUGH OPERATIONS MANAGEMENT INC A 53865 ACTUAL AMOUNT CREDIT UNION SERVICES THROUGH OPERATIONS MANAGEMENT INC L 1397532 ACTUAL AMOUNT CREDIT UNION SERVICES THROUGH OPERATIONS MANAGEMENT INC O 75392 ACTUAL AMOUNT CREDIT UNION SERVICES THROUGH OPERATIONS MANAGEMENT INC P 75000 ACTUAL AMOUNT