2023-08-11T17:30:46-05:00 2022-12-31 910189318 MOSS ADAMS LLP 805 SW BROADWAY STE 1400 PORTLAND OR 97205 990 2022-01-01 911662698 CRAFT3 CRAF 8882312170 42 7TH STREET 100 ASTORIA OR 97103 JANE REPENSEK CFO 8882312170 2023-08-11 1 JANE REPENSEK 999009999 0 WENDY CAMPOS P00448102 5032421447 2023-07-26 2 AAL1 IAL1 2022 2023-04-26 12:10:37Z ADAM ZIMMERMAN 54 SW YAMHILL STREET PORTLAND OR 97204 19219259 0 X WWW.CRAFT3.ORG X 1994 WA TO BUILD A THRIVING, JUST AND EMPOWERED PACIFIC NORTHWEST USING CAPITAL, RELATIONSHIPS AND VOICE. 10 10 91 10 0 0 13992572 6269398 10600655 12060240 2343289 889621 0 0 26936516 19219259 0 248949 0 0 8267185 10413156 0 0 509970 6315857 5330685 14583042 15992790 12353474 3226469 178565925 182110281 109935158 111734376 68630767 70375905 TO BUILD A THRIVING, JUST AND EMPOWERED PACIFIC NORTHWEST USING CAPITAL, RELATIONSHIPS AND VOICE. 0 0 11482249 248949 11366088 LENDING ACTIVITIES: PROVIDING BUSINESS SUPPORT, MARKETING ASSISTANCE AND HIGH RISK NON-BANK CREDIT TO BUSINESSES AND INDIVIDUALS IN WASHINGTON AND OREGON. IMPROVING THE PHYSICAL AND ECONOMIC ENVIRONMENTS THROUGH REDUCTION OF WASTE, ENERGY AND CHEMICAL USAGE THROUGH MISSION BASED LENDING. 1054941 694152 PROGRAM CONSULTING: PROVIDING EXPERT GUIDANCE IN STRATEGIC PLANNING, ORGANIZATIONAL DEVELOPMENT, ECONOMIC DEVELOPMENT, AND REAL ESTATE DEVELOPMENT. THE SERVICES ARE DESIGNED TO ASSIST BUSINESSES, NON-PROFIT ORGANIZATIONS AND LOCAL GOVERNMENTS IN ACCOMPLISHING THEIR GOALS. 12537190 1 1 0 1 0 0 0 0 1 0 1 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 0 0 1 221 0 1 91 1 0 0 0 0 0 0 0 0 0 0 0 0 X 10 10 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 OR X JANE REPENSEK CFO 8882312170 42 7TH STREET NO 100 ASTORIA OR 97103 PAUL BENOIT BOARD CHAIR 2.00 1.00 X X 0 0 0 JO ANN KAUFFMAN BOARD MEMBER 2.00 1.00 X 0 0 0 RONALD GRZYWINSKI BOARD MEMBER 2.00 1.00 X 0 0 0 ALAN OKAGAKI BOARD MEMBER 2.00 1.00 X 0 0 0 STAN AMY BOARD MEMBER 2.00 1.00 X 0 0 0 WALT KRUMBHOLZ BOARD MEMBER 2.00 1.00 X 0 0 0 CHAD OLNEY BOARD MEMBER 2.00 1.00 X 0 0 0 MUTHU MUTHIAH BOARD MEMBER 2.00 1.00 X 0 0 0 MARY HOUGHTON BOARD MEMBER 2.00 1.00 X 0 0 0 LINDA NETTEKOVEN BOARD MEMBER 2.00 1.00 X 0 0 0 LEE WINSLETT BOARD MEMBER 2.00 1.00 X 0 0 0 ANDREA SANDERSON BOARD MEMBER 2.00 1.00 X 0 0 0 ADAM ZIMMERMAN CHIEF EXECUTIVE OFFICER 40.00 4.00 X 284338 0 7338 BRUCE BROOKS PRESIDENT 40.00 4.00 X 227227 0 22435 MICHAEL DICKERSON INNOVATION AND EVALUATION DIRECTOR 40.00 4.00 X 211793 0 14066 MARK STEVENSON CHIEF FINANCIAL OFFICER, EVP 40.00 4.00 X 178703 0 28378 RONALENE MONTEITH CHIEF CREDIT OFFICER, EVP 40.00 4.00 X 191112 0 12914 SONYA LYNN CHIEF OPERATING OFFICER, EVP 40.00 4.00 X 156113 0 18941 JAMES GALBRAITH LEGAL COUNSEL, VP 40.00 0.00 X 181161 0 8498 MICHAEL WU IT DIRECTOR, VP 40.00 0.00 X 158204 0 21401 TURNER WASKOM COMMERCIAL LENDING DIRECTOR, SVP 40.00 0.00 X 156698 0 4875 JOHN HUNTER SR. BUSINESS LENDER, VP 40.00 0.00 X 134655 0 27942 MARGARET WEILAND DEVELOPMENT DIRECTOR, SVP 40.00 0.00 X 134311 0 26580 TERESA PARRIETT CONTROLLER, VP 40.00 0.00 X 141650 0 10660 DESIREE MICHIELS CONSUMER LENDING DIRECTOR, SVP 40.00 0.00 X 145217 0 4787 SAIF HAKIM COMMERCIAL LENDING TEAM MANAGER, VP 40.00 0.00 X 140787 0 3502 2441969 0 212317 26 0 1 0 SIMPLIFILE 4844 NORTH 300 WEST SUITE 202 PROVO UT 84604 ELECTRONIC DOCUMENT SERVICES 239734 TECH HEADS INC 7070 SW FIR LOOP PORTLAND OR 97223 COMPUTER SERVICES 195172 JOHN SRAMEK REMODELING 2738 SUNSET AVE WEST LINN OR 97068 CONSTRUCTION SERVICES 160000 STUTH COMPANY PO BOX 950 MAPLE VALLEY WA 98038 CONSTRUCTION SERVICES 157248 B THOMPSON CONSTRUCTION 2103 HARRISON AVE NW 2774 OLYMPIA WA 98502 CONSTRUCTION SERVICES 145111 22 4596139 1673259 6269398 LENDING ACTIVITIES 522291 11366088 11366088 PROGRAM CONSULTING 522291 694152 694152 12060240 561076 561076 328545 0 328545 328545 328545 19219259 12060240 0 889621 220000 220000 28949 28949 1884194 960722 923472 6047467 5627088 143887 276492 2481495 2101627 293396 86472 3750 3750 48523 13571 885 34067 227222 149402 77820 107549 71699 31548 4302 713130 475420 209185 28525 695079 463386 203890 27803 162302 94795 58854 8653 1874547 1873939 608 80320 53547 23560 3213 125570 83713 36834 5023 MISCELLANEOUS 677340 224659 427730 24951 TAXES AND LICENSES 250739 167159 73550 10030 LOAN COSTS -132373 -132373 496987 56137 440411 439 15992790 12537190 2945630 509970 14746521 2654762 10861940 10010298 879600 1078178 1154635 1149037 118019959 130127521 278352 385872 2632888 1536380 434256 1096508 26740801 29094146 1176557 967853 4273304 5546106 178565925 182110281 1292496 1759630 1267662 1053377 146514 157404 107228486 107811568 0 952397 109935158 111734376 X 63945469 67086212 4685298 3289693 68630767 70375905 178565925 182110281 3226469 -1481331 0 X 0 1 X 1 1 1 X 5423242 4918716 19224522 13992572 6269398 49828450 5423242 4918716 19224522 13992572 6269398 49828450 8280220 41548230 221778 454393 399564 297741 561076 1934552 51763002 52489780 0.80270 0.82090 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 15992790 15992790 949640 237410 0 0 905858 1000000 879152 949640 3734650 5601975 82875 79432 56400 218707 226465 250000 219788 237410 933663 1400495 0 1 X 656076 315990 340086 851027 822627 28400 1125785 397763 728022 1096508 ROU LIABILITIES 952397 952397 X PART IV, LINE 2B: THE ESCROW PAYABLE ACCOUNT IS A PASS-THROUGH FOR BORROWERS FOR WHICH CRAFT3 COLLECTS INSURANCE OR TAX FUNDS SIMULTANEOUSLY WITH THEIR MONTHLY LOAN PAYMENTS AND THEN REMITS THESE FUNDS FOR THEIR TAXES OR INSURANCE. PART X, LINE 2: CRAFT3 IS EXEMPT FROM FEDERAL INCOME TAXES UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE. SEE NOTE 13 FOR FURTHER DISCUSSION. CRAFT3 IS SUBJECT TO CERTAIN BUSINESS AND OCCUPATION TAXES, WHICH APPLY EQUALLY TO FOR-PROFIT AND NONPROFIT BUSINESSES, IMPOSED BY STATE AND LOCAL TAXING AUTHORITIES. THE TAXES ARE ASSESSED ON A PERCENTAGE OF A PORTION OF CRAFT3'S REVENUES. UNRELATED BUSINESS INCOME TAX, IF ANY, IS INSIGNIFICANT AND NO TAX PROVISION HAS BEEN MADE IN THE ACCOMPANYING CONSOLIDATED FINANCIAL STATEMENTS. CRAFT3 HAD NO UNCERTAIN TAX POSITIONS AS OF DECEMBER 31, 2022 AND 2021. INTEREST AND PENALTIES RELATED TO UNRECOGNIZED TAX BENEFITS ARE RECOGNIZED BY CRAFT3 AS AN ADMINISTRATIVE EXPENSE. DURING THE YEARS ENDED DECEMBER 31, 2022 AND 2021, CRAFT3 RECOGNIZED NO INTEREST AND PENALTIES. 0 DEQ OREGON WILDFIRE RECOVERY 15 28949 X X X X 0 0 0 1 0 0 0 1 0 ADAM ZIMMERMAN CHIEF EXECUTIVE OFFICER 273025 0 10603 0 710 0 5666 0 1672 0 291676 0 0 0 BRUCE BROOKS PRESIDENT 226600 0 0 0 627 0 13634 0 8801 0 249662 0 0 0 MICHAEL DICKERSON INNOVATION AND EVALUATION DIRECTOR 202893 0 8273 0 627 0 12211 0 1855 0 225859 0 0 0 MARK STEVENSON CHIEF FINANCIAL OFFICER, EVP 172998 0 5039 0 666 0 10722 0 17656 0 207081 0 0 0 RONALENE MONTEITH CHIEF CREDIT OFFICER, EVP 183613 0 6952 0 547 0 11467 0 1447 0 204026 0 0 0 JAMES GALBRAITH LEGAL COUNSEL, VP 180556 0 0 0 605 0 4569 0 3929 0 189659 0 0 0 MICHAEL WU IT DIRECTOR, VP 147164 0 5423 0 5617 0 9167 0 12234 0 179605 0 0 0 SONYA LYNN CHIEF OPERATING OFFICER, EVP 148979 0 6509 0 625 0 6751 0 12190 0 175054 0 0 0 JOHN HUNTER SR. BUSINESS LENDER, VP 129986 0 4165 0 504 0 8079 0 19863 0 162597 0 0 0 TURNER WASKOM COMMERCIAL LENDING DIRECTOR, SVP 150677 0 5120 0 901 0 3600 0 1275 0 161573 0 0 0 MARGARET WEILAND DEVELOPMENT DIRECTOR, SVP 128042 0 5347 0 922 0 7738 0 18842 0 160891 0 0 0 TERESA PARRIETT CONTROLLER, VP 131916 0 4165 0 5569 0 4962 0 5698 0 152310 0 0 0 DESIREE MICHIELS CONSUMER LENDING DIRECTOR, SVP 140010 0 4720 0 487 0 3600 0 1187 0 150004 0 0 0 PART I, LINE 5 THE ORGANIZATION HAS A DISCRETIONARY BONUSING PROGRAM BASED ON THE OVERALL FINANCIAL PERFORMANCE OF THE ORGANIZATION AND INDIVIDUAL PERFORMANCE. THIS BONUSING PROGRAM IS OFFERED TO ALL EMPLOYEES AND OFFICERS EXCEPT THE PRESIDENT AND CEO. THE CEO'S BONUS IS AT THE SOLE DISCRETION OF THE BOARD. THE PRESIDENT'S BONUS IS MANAGED BY THE CEO. BONUSES WERE AWARDED FOR EMPLOYEES, OFFICERS AND THE CEO IN 2022. PART I, LINE 7 THE ORGANIZATION HAS A DISCRETIONARY BONUSING PROGRAM BASED ON THE OVERALL FINANCIAL PERFORMANCE OF THE ORGANIZATION AND INDIVIDUAL PERFORMANCE. THIS BONUSING PROGRAM IS OFFERED TO ALL EMPLOYEES AND OFFICERS EXCEPT THE PRESIDENT AND CEO. THE CEO'S BONUS IS AT THE SOLE DISCRETION OF THE BOARD. THE PRESIDENT'S BONUS IS MANAGED BY THE CEO. BONUSES WERE AWARDED FOR EMPLOYEES, OFFICERS AND THE CEO IN 2022. FORM 990, PART VI, SECTION B, LINE 11B THE FORM 990 IS PREPARED BY A PUBLIC ACCOUNTING FIRM WITH ASSISTANCE FROM THE CONTROLLER IN PROVIDING DATA. THE RETURN IS THEN REVIEWED BY CRAFT3'S CFO AND CONTROLLER AND PROVIDED TO THE BOARD TO REVIEW BEFORE FILING. FORM 990, PART VI, SECTION B, LINE 12C ALL EMPLOYEES AGREE TO ABIDE BY THE CONFLICT OF INTEREST POLICY RULES BY READING THE EMPLOYEE POLICY HANDBOOK UPON HIRE. ALL EMPLOYEES ARE REQUIRED TO ACKNOWLEDGE THAT THEY RE-READ IT ANNUALLY. FORM 990, PART VI, SECTION B, LINE 15 CRAFT3 UTILIZES A THIRD-PARTY FINANCIAL INDUSTRY SURVEY TO EVALUATE WAGES FOR EACH POSITION. THIS INCLUDES MARKET ANALYSIS, JOB DESCRIPTION ANALYSIS, ETC. THESE ARE RE-EVALUATED ANNUALLY. ADDITIONALLY, ANNUAL PERFORMANCE PLANS ARE COMPLETED BY ALL EMPLOYEES, REVIEWED AND APPROVED BY THEIR SUPERVISORS. ANNUAL BONUSES (IF ANY) ARE BASED OFF OF THE RESULTS OF THE INDIVIDUAL'S PERFORMANCE PLAN AS WELL AS COMPANY PERFORMANCE OVERALL. PAY INCREASES ARE DETERMINED BY SUPERVISORS AND THEN APPROVED BY THE CEO OR DENIED/MODIFIED. FOR THE CEO, PAY INCREASES AND BONUSES ARE APPROVED BY THE BOARD. THIS COMPENSATION REVIEW AND APPROVAL PROCESS IS COMPLETED ANNUALLY. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION'S GOVERNING DOCUMENTS AND CONFLICT OF INTEREST POLICY ARE AVAILABLE TO THE PUBLIC UPON REQUEST. ANNUAL AUDITED FINANCIAL STATEMENTS ARE ACCESSIBLE ON THE COMPANY WEBSITE: WWW.CRAFT3.ORG CRAFT3 OTHER OWNED WA PROPERTIES LLC 42 7TH STREET 100 ASTORIA OR 97103 872102127 LENDING WA -433 299519 CRAFT3 CRAFT3 FUTURE FUND 42 7TH STREET 100 ASTORIA OR 97103 455384846 LENDING WA 501(C)(3) LINE 12B, II CRAFT3 0 CRAFT3 INVESTMENT II LLC 42 7TH STREET 100 ASTORIA OR 97103 201179589 LENDING WA CRAFT3 RELATED -9532 -629 0 1 0.99990 CRAFT3 INVESTMENT X LLC 409 MAYNARD AVENUE S SUITE 200 SEATTLE WA 98104 813835904 LENDING WA N/A RELATED 18 1183 0 1 0.00010 CRAFT3 INVESTMENT XI LLC 409 MAYNARD AVENUE S SUITE 200 SEATTLE WA 98104 821550360 LENDING WA N/A RELATED 5 891 0 1 0.00010 CRAFT3 INVESTMENT XII LLC 409 MAYNARD AVENUE S SUITE 200 SEATTLE WA 98104 821570912 LENDING WA N/A RELATED 6 988 0 1 0.00010 CRAFT3 INVESTMENT XIV LLC 409 MAYNARD AVENUE S SUITE 200 SEATTLE WA 98104 850538526 LENDING WA N/A RELATED 10 693 0 1 0.00010 WINDFARM INVESTMENTS 42 7TH STREET 100 ASTORIA OR 97103 271496444 LENDING WA CRAFT3 C -1 632 1.00000 1 CRAFT3 INVESTMENT XIII LLC 409 MAYNARD AVENUE S SUITE 200 SEATTLE WA 98104 821583020 LENDING WA N/A C 6 1200 0.00010 0 0 1 0 1 0 0 0 0 0 0 0 1 0 1 1 0 1 0 0