Harborstone Credit Union

“The purpose of the executive committee is to act in areas where and when the full board cannot provide a quick, responsive decision and to make decisions for the board as specifically delegated. Members of the executive committee who are able to vote shall include the chair, vice chair and secretary of the board. Providing guidance and counsel to the executive committee who is non-voting may include the president/ceo. The chair of the board shall be the chair of the executive committee. At all meetings of the executive committee, each director present shall have one vote on any matter and except as otherwise provided by the act or these bylaws, the action of a majority of executive committee members at a meeting shall be the act of the executive committee. The executive committee will have the authority to exercise all of the powers of the board, except that the executive committee will not have the authority of the board in reference to: - amending the credit union's bylaws or articles of incorporation - exercising the non-delegable powers under the act - removing or suspending officers from their office under article 6 section 6.4 or committee members from their committees - appointing interim directors under article 6, section 6.5 - suspend board or supervisory committee members - adopting a plan of merger or liquidation, or changing the charter of the credit union.”

“Participation in this credit union is limited to those who qualify for membership as defined in the credit union's charter and bylaws. This generally consists of those who live, work, worship, or go to school in the state of washington. In addition to a regularly qualified member, the spouse of a member, the blood or adoptive relatives of either of them and their spouses may be members.”

“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.”

“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.”

“The form 990 is prepared by the organization's independent public accounting firm based on information provided by management. Once the draft is available, it is reviewed by management and any changes incorporated into the filing. Once this detailed review is complete, the draft of the form 990 is presented to the board of directors for their review and comments prior to filing with the irs.”

“On an annual basis, all employees & volunteers are required to review the conflict of interest policy. Signatures are obtained verifying that they attest to having read the policy. Additionally, each new employee hired by the credit union reviews the conflict of interest policy on their first day of employment. If a situation arises involving a conflict of interest, it shall be reported to the president/ceo or to the chair of the board of directors, as applicable, in order to permit consideration of the circumstances and thereby to relieve the individual(s) reporting such a conflict from liability. Each instance of a conflict of interest shall be addressed during the next board meeting following its submission. Any discussion concerning the conflict of interest shall be noted in the minutes of the meeting. A member of the board of directors shall not vote on any conflict of interest item concerning him/herself.”

“We utilize various reputable, third-party market data sources (milliman, cues, etc.) to aid in setting the compensation of the president/ceo. Compensation decisions for the president/ceo are made by the board of directors. Compensation is reviewed annually and as such was reviewed in 2024. The compensation decision is documented in the employee's personnel file. We utilize various reputable, third-party market data sources (milliman, cues, etc.) to aid in setting the compensation of our other officers and key employees. Generally, final compensation decisions are made by the senior vice president/chief operations officer. Compensation decisions for the executive vice president and all other senior vice president positions are made by the president/ceo. This decision is reviewed annually and as such was reviewed in 2024. The compensation decision is documented in the employee's personnel file. The process described here was last completed in 2024.”

“The governing documents, conflict of interest policy and financial statements are available upon request.”

“Change in cash surrender value of life insurance policies 841,951. Merger adjustment - residual cash from closing 560,018.”

“The organization did not change its oversight or selection process for an independent accountant during the tax year.”