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Nonprofiteer
← WHATCOM EDUCATIONAL CREDIT UNION

Form 990 for tax year 2022

Filed by WHATCOM EDUCATIONAL CREDIT UNION.

Totals

Total revenue
$98,737,059
Total expenses
$68,523,716
Contributions and grants received
$0
Grants paid
$253,917
Program service revenue
$87,021,794
Investment income
$10,688,363
Other revenue
$1,026,902
Total assets, end of year
$2,507,427,609
Total liabilities, end of year
$2,190,539,001
Net assets or fund balances, end of year
$316,888,608
Program services expenses (Part IX)
not reported
Management and general expenses
not reported
Fundraising expenses
not reported
Program service expenses (Part III)
not reported

Line items

Every line the filer filed in Parts VIII, IX and X, as filed and in filed order. Blank columns are left out, and the lines are not forced to add up to the totals above.

Revenue

Part VIII, the statement of revenue.

  • 2a · Program service revenue: INTEREST ON LOANS TO MEMBERS

    total $63,368,105 · related or exempt $63,368,105

  • 2b · Program service revenue: INTERCHANGE INCOME

    total $14,112,130 · related or exempt $14,112,130

  • 2c · Program service revenue: SERVICE CHARGES AND FEES

    total $9,541,559 · related or exempt $9,481,160 · unrelated business $60,399

  • 3 · Investment income

    total $10,688,220 · excluded $10,688,220

  • 6a · Gross rents

    real property $18,000

  • 6b · Less rental expenses

    real property $0

  • 6c · Rental income or loss

    real property $18,000

  • 6d · Net rental income or loss

    total $18,000 · excluded $18,000

  • 7a · Gross sales of assets other than inventory

    other assets $143

  • 7b · Less cost or other basis and sales expenses

    other assets $0

  • 7c · Gain or loss

    other assets $143

  • 7d · Net gain or loss

    total $143 · excluded $143

  • 11a · Other revenue: OTHER INCOME

    total $1,008,902 · excluded $1,008,902

  • 11e · Other revenue, total

    $1,008,902

Functional expenses

Part IX, the statement of functional expenses.

  • 1 · Grants to domestic organizations and governments

    total $227,917

  • 2 · Grants to domestic individuals

    total $26,000

  • 4 · Benefits paid to or for members

    total $4,434,002

  • 5 · Compensation of officers, directors and key employees

    total $4,037,886

  • 7 · Other salaries and wages

    total $25,801,507

  • 8 · Pension plan contributions

    total $1,846,310

  • 9 · Other employee benefits

    total $3,008,616

  • 10 · Payroll taxes

    total $2,418,675

  • 11b · Fees: legal

    total $88,539

  • 11c · Fees: accounting

    total $232,938

  • 11d · Fees: lobbying

    total $33,074

  • 11g · Fees: other

    total $1,575,640

  • 12 · Advertising and promotion

    total $1,023,492

  • 13 · Office expenses

    total $2,592,201

  • 14 · Information technology

    total $6,010,684

  • 16 · Occupancy

    total $2,589,698

  • 17 · Travel

    total $211,487

  • 19 · Conferences, conventions and meetings

    total $299,681

  • 20 · Interest

    total $1,620,340

  • 22 · Depreciation, depletion and amortization

    total $2,463,108

  • 23 · Insurance

    total $5,481

  • 24a · Other expenses: UBI TAXES

    total $13,000

  • 24b · Other expenses: CREDIT CARD EXPENSES

    total $6,095,116

  • 24c · Other expenses: OTHER EXPENSES

    total $3,494,846

  • 24d · Other expenses: PROVISION FOR LOAN LOSS

    total $1,620,355

  • 24e · All other expenses

    total -$3,246,877

Balance sheet

Part X, book values.

  • 1 · Cash, non-interest-bearing

    beginning of year $28,784,936 · end of year $36,427,874

  • 2 · Savings and temporary cash investments

    beginning of year $685,897,687 · end of year $288,819,015

  • 5 · Loans and receivables from officers and key people

    beginning of year $12,023,936 · end of year $12,144,176

  • 7 · Other notes and loans receivable

    beginning of year $1,631,956,993 · end of year $1,927,038,258

  • 9 · Prepaid expenses and deferred charges

    beginning of year $2,508,029 · end of year $2,737,541

  • 10a · Land, buildings and equipment: cost or other basis

    $57,428,293

  • 10b · Land, buildings and equipment: accumulated depreciation

    $24,612,385

  • 10c · Land, buildings and equipment, net

    beginning of year $32,559,668 · end of year $32,815,908

  • 11 · Investments: publicly traded securities

    beginning of year $60,383,966 · end of year $120,898,362

  • 12 · Investments: other securities

    beginning of year $12,118,600 · end of year $55,508,709

  • 15 · Other assets

    beginning of year $25,624,463 · end of year $31,037,766

  • 17 · Accounts payable and accrued expenses

    beginning of year $27,400,647 · end of year $30,902,243

  • 21 · Escrow or custodial account liability

    beginning of year $3,074,284 · end of year $3,228,492

  • 23 · Secured mortgages and notes payable

    beginning of year $21,250,000 · end of year $27,250,000

  • 25 · Other liabilities

    beginning of year $2,144,853,999 · end of year $2,129,158,266

  • 29 · Capital stock, trust principal or current funds

    beginning of year $0 · end of year $0

  • 30 · Paid-in or capital surplus, or land, building or equipment fund

    beginning of year $0 · end of year $0

  • 31 · Retained earnings, endowment or other funds

    beginning of year $295,279,348 · end of year $316,888,608

Mission and programs · 2022

Mission

WHATCOM EDUCATIONAL CREDIT UNION (WECU) IS A NOT-FOR-PROFIT FINANCIAL COOPERATIVE WHERE MEMBERS ARE ENCOURAGED TO SAVE AND BORROW RESPONSIBLY AT FAIR AND COMPETITIVE RATES, IMPROVING THEIR FINANCIAL WELL-BEING AND STANDARD OF LIVING. THIS STATE-CHARTERED CREDIT UNION IS A MEMBER OF THE NATIONAL CREDIT UNION ADMINISTRATION SHARE INSURANCE FUND, AND IS REGULATED BY THE NATIONAL CREDIT UNION ASSOCIATION, AND THE STATE OF WASHINGTON DEPARTMENT OF FINANCIAL INSTITUTIONS - DIVISION OF CREDIT UNIONS. WECU'S MAIN PRODUCTS ARE CONSUMER LOANS, REAL ESTATE LOANS AND COMMERCIAL LOANS TO MEMBERS, WHICH ARE PRIMARILY FUNDED BY DEPOSITS FROM MEMBERS. FINANCIAL EDUCATION AND COMMUNITY SERVICE ARE ALSO AN INTEGRAL PART OF WECU'S OPERATIONS AND SPIRIT OF SERVICE.

Activities or mission (Part I)

OUR MISSION IS TO MAKE A MEANINGFUL DIFFERENCE IN THE LIVES OF OUR MEMBERS.

  • LOAN PORTFOLIO (CREDIT CARDS, AUTO, PERSONAL AND OTHER TYPES):LOANS TO MEMBERS INCREASED BY 17.93%, OR $294.7 MILLION FROM 2021 TO 2022. LENDING WAS STRONG, WITH RECORD-SETTING MONTHS CULMINATING INTO ANOTHER RECORD SETTING YEAR. WECU ORIGINATED $791.75 MILLION IN 2022. THE OVERALL IMPACT IS TREMENDOUS FOR OUR MEMBERS AND THE COMMUNITY AT LARGE. IN MANY CASES, THE FINANCING DECREASED MEMBERS' MONTHLY AND ANNUAL DEBT OBLIGATIONS, PROVIDED AFFORDABLE TRANSPORTATION AND HOUSING, AND CONSOLIDATED DEBT. DESPITE THE MUCH-LAUDED ECONOMIC STRENGTH THROUGH THE PANDEMIC RECOVERY, THERE WERE STILL CHALLENGES. IN PARTICULAR, THE SUPPLY CHAIN ISSUES PRESENTED CHALLENGES WITH SUPPLY TO ORIGINATE LOANS THROUGH THE INDIRECT CHANNEL. MANY DEALERS HAD LITTLE TO NO INVENTORY. THIS IS A TESTAMENT TO WECU'S INDIRECT TEAM, AS THEY FOCUSED PRIMARILY ON RELATIONSHIPS WITH DEALERS TO MAINTAIN OPPORTUNITY. THE INCREASE IN ORIGINATIONS FROM 2021 TO 2022 WAS A RESULT OF CREATIVITY AND RESOLVE. WECU ORIGINATED $322.46 MILLION IN 2022 REPRESENTING A 45.11% INCREASE, OR $100.26 MILLION.CONSUMER REAL ESTATE, ON THE OTHER HAND, HAD DIFFERENT CHALLENGES. LOANS TO MEMBERS FOR CONSUMER REAL ESTATE REMAINED STRONG WITH AN INCREASE OF 10.37%, OR $81.43 MILLION FROM 2021 TO 2022. DUE TO THE INCREASE IN INTEREST RATES AND THE SHORTAGE OF HOMES AVAILABLE LOAN ORIGINATIONS DECREASED $176.20 MILLION IN 2022 COMPARED TO 2021.

  • DEPOSITS AND LIQUIDITY:DEPOSITS DECREASED BY .73%, OR $15.65 MILLION FROM 2021 TO 2022. DEPOSITS WILL CONTINUE TO BE A FOCUS. MANAGEMENT RECOGNIZES THAT SOME DEPOSIT OUTFLOW IS NOT DIRECTLY TIED TO MARKET COMPETITION AND IS A RESULT OF A CHANGING FINANCIAL PICTURE FOR MANY OF OUR MEMBERS AND IS PREPARING VARIOUS LIQUIDITY TOOLS IN THE EVENT DEPOSIT DECLINES PERSIST. THE SHIFT TO DEPOSIT GROWTH AND RETENTION HAS TAKEN A FIRM HOLD ACROSS THE FINANCIAL INDUSTRY, PROVIDING MEMBERS WITH MANY OPTIONS FOR A GREATER RETURN ON THEIR DEPOSITS. MANAGEMENT WILL CONTINUE TO MONITOR DEPOSIT ACTIVITY AND MAINTAIN A BALANCE SHEET STRUCTURED TO MITIGATE THE RISK OF A RAPID CHANGE IN MEMBER BEHAVIOR AS IT RELATES TO HOLDING DEPOSITS.

  • COMMUNITY INVOLVEMENT:WHILE TECHNICALLY NOT A CHARTERED SERVICE, WECU IS COMMITTED TO COMMUNITY SERVICE AND PROVIDES SUPPORT TO A LARGE NUMBER OF LOCAL EDUCATIONAL, HEALTH AND COMMUNITY CONCERNS. IN 2022, HELPING MEMBERS AND THE COMMUNITY AT LARGE THROUGH THE CONTINUED PANDEMIC WAS STILL A PRIMARY FOCUS. THIS WAS DEMONSTRATED THROUGH SEVERAL ACTIVITIES THROUGHOUT THE YEAR. UNEMPLOYMENT FIGURES WERE IMPROVING BUT NOT RAPIDLY, AND CONSUMER SPENDING WAS STILL SPUTTERING. AS THE YEAR PROGRESSED, THE PENT-UP DESIRE FOR CONSUMERS TO TRAVEL, SHOP, EAT AT RESTAURANTS, AND RECREATE RESULTED IN POSITIVE ECONOMIC ACTIVITY.

As filed on the 2022 return. The filer continues this part on Schedule O, which is not shown here.

Listed in Part VII

  • Kristi Lewis Tyran

    CHAIR

    Total calculated
    $0
    Hours/week
    4

  • Gabriel Mast

    VICE CHAIR

    Total calculated
    $0
    Hours/week
    4

  • Dale Zender

    SECRETARY

    Total calculated
    $0
    Hours/week
    4

  • Harte Bressler

    DIRECTOR

    Total calculated
    $0
    Hours/week
    4

  • David Waschke

    DIRECTOR

    Total calculated
    $0
    Hours/week
    4

  • Carol Lager

    DIRECTOR

    Total calculated
    $0
    Hours/week
    4

  • Ashok Khanna

    DIRECTOR

    Total calculated
    $0
    Hours/week
    4

  • Cathie Oberg

    DIRECTOR

    Total calculated
    $0
    Hours/week
    4

  • Margo Hammond

    DIRECTOR

    Total calculated
    $0
    Hours/week
    4

  • Jennifer E Kutcher

    PRESIDENT/CEO/TREASURER

    Total calculated
    $851,361
    From this org
    $750,217
    From related orgs
    $0
    Other
    $101,144
    Hours/week
    50

    Schedule J breakdown matched by us

    Base
    $561,540
    Bonus
    $164,979
    Other
    $23,698
    Deferred
    $74,550
    Nontaxable benefits
    $26,594
    Filer's total
    $851,361

  • Cynthia Chase Klein

    CHIEF HUMAN RESOURCES OFFICER

    Total calculated
    $377,233
    From this org
    $289,640
    From related orgs
    $0
    Other
    $87,593
    Hours/week
    45

    Schedule J breakdown matched by us

    Base
    $244,632
    Bonus
    $41,247
    Other
    $3,761
    Deferred
    $60,550
    Nontaxable benefits
    $27,043
    Filer's total
    $377,233

  • Jeffrey R Dykstra

    EXECUTIVE VICE PRESIDENT

    Total calculated
    $481,463
    From this org
    $392,577
    From related orgs
    $0
    Other
    $88,886
    Hours/week
    45

    Schedule J breakdown matched by us

    Base
    $320,955
    Bonus
    $54,893
    Other
    $16,729
    Deferred
    $61,843
    Nontaxable benefits
    $27,043
    Filer's total
    $481,463

  • Jack Ingram

    CHIEF INFORMATION OFFICER

    Total calculated
    $474,890
    From this org
    $379,831
    From related orgs
    $0
    Other
    $95,059
    Hours/week
    45

    Schedule J breakdown matched by us

    Base
    $310,333
    Bonus
    $50,718
    Other
    $18,780
    Deferred
    $68,016
    Nontaxable benefits
    $27,043
    Filer's total
    $474,890

  • Nicholas A Hodson

    CHIEF FINANCIAL OFFICER

    Total calculated
    $394,208
    From this org
    $313,218
    From related orgs
    $0
    Other
    $80,990
    Hours/week
    45

    Schedule J breakdown matched by us

    Base
    $262,617
    Bonus
    $44,279
    Other
    $6,322
    Deferred
    $53,947
    Nontaxable benefits
    $27,043
    Filer's total
    $394,208

  • Erynne Maria Hallock

    VP, RETAIL DELIVERY

    Total calculated
    $329,313
    From this org
    $258,969
    From related orgs
    $0
    Other
    $70,344
    Hours/week
    45

    Schedule J breakdown matched by us

    Base
    $213,670
    Bonus
    $36,544
    Other
    $8,755
    Deferred
    $43,301
    Nontaxable benefits
    $27,043
    Filer's total
    $329,313

  • David Pierce Jones

    CHIEF MARKETING OFFICER

    Total calculated
    $312,461
    From this org
    $249,859
    From related orgs
    $0
    Other
    $62,602
    Hours/week
    45

    Schedule J breakdown matched by us

    Base
    $197,866
    Bonus
    $34,003
    Other
    $17,990
    Deferred
    $52,506
    Nontaxable benefits
    $10,096
    Filer's total
    $312,461

  • Matthew Henry Berendsen

    VP, LENDING

    Total calculated
    $290,301
    From this org
    $237,358
    From related orgs
    $0
    Other
    $52,943
    Hours/week
    45

    Schedule J breakdown matched by us

    Base
    $202,922
    Bonus
    $32,536
    Other
    $1,900
    Deferred
    $25,900
    Nontaxable benefits
    $27,043
    Filer's total
    $290,301

  • Kent D Bouma

    VP, BUSINESS BANKING

    Total calculated
    $288,773
    From this org
    $235,584
    From related orgs
    $0
    Other
    $53,189
    Hours/week
    45

    Schedule J breakdown matched by us

    Base
    $202,588
    Bonus
    $32,996
    Other
    $0
    Deferred
    $26,146
    Nontaxable benefits
    $27,043
    Filer's total
    $288,773

  • Bolortsetseg C Smith

    VP, RISK MANAGEMENT & INTERNAL AUDIT

    Total calculated
    $237,886
    From this org
    $198,965
    From related orgs
    $0
    Other
    $38,921
    Hours/week
    40

    Schedule J breakdown matched by us

    Base
    $168,070
    Bonus
    $28,608
    Other
    $2,287
    Deferred
    $21,635
    Nontaxable benefits
    $17,286
    Filer's total
    $237,886

  • David Dodge

    DIRECTOR, IT INFRASTRUCTURE

    Total calculated
    $240,308
    From this org
    $177,844
    From related orgs
    $0
    Other
    $62,464
    Hours/week
    40

    Schedule J breakdown matched by us

    Base
    $159,855
    Bonus
    $13,688
    Other
    $4,301
    Deferred
    $46,090
    Nontaxable benefits
    $16,374
    Filer's total
    $240,308

  • Glen R Berry

    DIRECTOR, BUSINESS INTELLIGENCE

    Total calculated
    $243,923
    From this org
    $176,368
    From related orgs
    $0
    Other
    $67,555
    Hours/week
    40

    Schedule J breakdown matched by us

    Base
    $162,721
    Bonus
    $13,647
    Other
    $0
    Deferred
    $40,016
    Nontaxable benefits
    $27,539
    Filer's total
    $243,923

  • Grant Dykstra

    BUSINESS BANKING SENIOR LOAN OFFICER

    Total calculated
    $228,791
    From this org
    $173,429
    From related orgs
    $0
    Other
    $55,362
    Hours/week
    40

    Schedule J breakdown matched by us

    Base
    $159,946
    Bonus
    $13,483
    Other
    $0
    Deferred
    $28,319
    Nontaxable benefits
    $27,043
    Filer's total
    $228,791

  • Michael Peter Yeend

    CREDIT ADMINISTRATOR

    Total calculated
    $216,957
    From this org
    $173,318
    From related orgs
    $0
    Other
    $43,639
    Hours/week
    40

    Schedule J breakdown matched by us

    Base
    $158,054
    Bonus
    $13,815
    Other
    $1,449
    Deferred
    $23,980
    Nontaxable benefits
    $19,659
    Filer's total
    $216,957

  • Andrew Whaley

    DIRECTOR, ENTERPRISE APPLICATIONS

    Total calculated
    $232,183
    From this org
    $169,460
    From related orgs
    $0
    Other
    $62,723
    Hours/week
    40

    Schedule J breakdown matched by us

    Base
    $153,052
    Bonus
    $13,105
    Other
    $3,303
    Deferred
    $35,680
    Nontaxable benefits
    $27,043
    Filer's total
    $232,183

Compensation is as filed in Part VII: reportable pay from this organization and from related organizations, other compensation, and hours per week. The total, marked calculated, is our sum of the three dollar columns, with a blank column counted as $0; the form itself has no total. On a Form 990-EZ the columns are Part IV's instead, and on a Form 990-PF Part VIII's — compensation, contributions to benefit plans, and expense account — and the total sums those. A Schedule J breakdown is as filed: base pay, bonus, other, deferred compensation and nontaxable benefits from this organization, with any from related organizations beside each, and the filer's own total. It is shown with the Part VII listing of the same name on the same return. The form gives no key between the two, so that pairing is ours, and is marked matched by us.

Schedule J

Answered yes

  • 1a · Travel for companions
  • 1b · Written policy on the line-1a expenses
  • 2 · Substantiation required before reimbursing expenses
  • 3 · Independent compensation consultant
  • 3 · Compensation survey or study
  • 3 · Approval by the board or compensation committee
  • 4b · Supplemental nonqualified retirement plan

Answered no

  • 4a · Severance or change-of-control payment
  • 4c · Equity-based compensation arrangement

The filer's explanations (Part III)

PART I, LINE 1A
THE CREDIT UNION PROVIDES PAYMENT FOR TRAVEL FOR COMPANIONS FOR MEMBERS OF MANAGEMENT AND BOARD MEMBERS. THIS IS INCLUDED IN TAXABLE INCOME.
PART I, LINE 4B
THE CREDIT UNION MADE NO CONTRIBUTIONS OR DISTRIBUTIONS TO/FROM A 457(F) PLAN DURING THE YEAR. THE CREDIT UNION HAS MADE LOANS FOR LIFE INSURANCE PREMIUM PAYMENTS TO A KEY EMPLOYEE. THE LOANS ARE COLLATERALIZED BY THE ASSIGNMENT OF THE POLICY DEATH BENEFITS AND CASH SURRENDER VALUES OF THE RESPECTIVE LIFE INSURANCE POLICIES, AND THE FAIR VALUE OF AN ANNUITY. THE POLICIES ARE OWNED BY THE EMPLOYEE AND THEY HAVE THE RIGHT TO NAME THE BENEFICIARIES FOR AMOUNTS NOT SECURED BY THE ASSIGNMENTS. THE LOAN TO THE EXECUTIVE IS NOT DUE UNTIL DEATH AT WHICH TIME THERE IS ANTICIPATED TO BE SUFFICIENT INSURANCE POLICY PROCEEDS TO REPAY THE PREMIUM LOAN PLUS ACCRUED INTEREST.

Part I's answers as filed. A line not listed was left unanswered; on lines 1a and 3 that means the box was not checked.

Grants on this return

Provenance

Return type
form_990
Tax year
2022
Filed
4 May 2023
IRS schema version
2022v5.0
Source object
202341319349300344

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