here - Community Savings

transforming
community savings
annual report 2006
TM
Warning: this 2006 Annual Report may exceed expectations, heighten emotions and produce altered perceptions of the familiar.
every now and then, something familiar
a fountain pen becomes a ballpoint
is improved and transformed
transforming . annual report . 2006
the telephone loses its cord
aTV screen
hangs
on the wall like a painting
a car starts without a key
transforming . annual report . 2006
COMMUNITY
SAVINGS IS
TRANSFORMING
allowing us
to achieve things
that simply
couldn’t be done before
transforming . annual report . 2006
2006
increased our total assets from $246.7 million to
$257.4 million
increased our net earnings from $698.1 thousand in 2005 to
$1.2 million
increased lending to members from $176.1 million to
$203.1 million
added to members' retained earnings for a year-end total of
$11.8 million
increased total deposits from $212.7 million to
$232.2 million
in 2006,
we undertook
a bold and clear
strategy to firmly
position Community
Savings as
“the
union’s credit
union”.
transforming...“putting union back into credit union”
transforming . annual report . 2006
we
rewired
our entirenetwork ,
moved to a fibre-optic
backbone and deployed
state-of-the-art
data/recoveryservers
and workstations.Then we
converted ourold RBS
banking systemto
the latest version of
“wealthview”.
To remain ahead of the competition we realized the need to transform our
business processes, re-invest in technology and our employees. We rolled up
our sleeves and started to transform the way we work, the way we compete
and the way we serve our
valued members.
Most companies
attempt one major
initiative at a time.
In 2006, we launched
12
initiatives
to ensure we exceed
your expectations
and those of our
employees, now
and well into
the future.
transforming . annual report . 2006
We implemented the following new services and systems:
“WEALTHVIEW” - FINCENTRIC BANKING SYSTEM
CRI CANADA - CREDIT INSURANCE PROGRAM
FUJITSU - STATE-OF-THE-ARTATMs INALL BRANCHES
MEMBERDIRECT - ROBUST INTERNET BANKING
MEMBERCONNECT - FULL FEATUREDTELEPHONE BANKING
BELL CANADA - LIGHTENING FAST FIRE OPTIC NETWORK
TELUS - REDESIGNED, EASIERTO READ STATEMENTS
MEMBERCARD - NEW DESIGNWITH GREATERACCESS
RECEIPT PRINTERS - INALL BRANCHES
MOBILEACCESS - USE YOUR PHONETOACCESS OURWEBSITE
These are but a few of the robust systems and services that streamline
our employees’ work flow and enhance our members’ lives. We make it
easy and convenient for our members to bank with us and to manage
their personal or business finances, whether it be in the comfort of
their home, business or anywhere they are on-line.
our culture was
redefined
our processes
streamlined
and employee
productivity and
satisfaction
improved
transforming . annual report . 2006
We provide our people with the tools and flexibility
to help them balance their work and life. We offer
learning opportunities to enhance their skills and
grow their careers. Moreover, we provide salaries
and benefits that are second to none.
The result:
one of the highest credit union employee retention
rates in BC, which means we are better able to
serve our members, which means...
happier members
transforming . annual report . 2006
no matter who you are or
what your personality is...
sensitive
easygoing
trendy
cool
smart
today over
9,800
members bank where they belong
shy
fun
romantic
talented
creative
transforming . annual report . 2006
COMMUNITY SAVINGS
YOUR COMMUNITY
working together
for a better future
transforming . annual report . 2006
We’re
moving
in the
right dir
ection
as BC’ s
largest,
fully
unionize
d
credit
union*
as defined by unionized staff at all branches, corporate office and directors
Dear Members,
2006
was both the most exhilarating and challenging year we have
experienced to date. We approached the year with cautious optimism, allowing for the huge
demands required to convert to a new banking system in the Fall. And yet, despite this
Herculean task, we exceeded our 2006 growth objectives. These successes are a
testament to our founding principles and beliefs that great people with shared values - can
do extraordinary things.
Since I took on the role as President and CEO a year and a half ago, we have seen a number of
positive changes take place within the organization. And while they may have taxed our
resources in the short run, they will definitely pay huge dividends down the road. Even with
the demands and challenges required to move us forward, we always remained true to one
thing - our members. This commitment is demonstrated in the remarkable progress we have
made to-date.
SOLID GROWTH Our growth this year stemmed from changes we initiated last year:
removing administrative barriers, giving employees the authority and the tools to do their
job, re-doubling our efforts to appeal to unions and their members, streamlining processes
and becoming more “open” for business. As a result, we have re-invigorated and transformed
the organization into a whole new way of doing business.
The results speak for themselves. Compared to last year, our loan portfolio grew by $27
million - a whopping 15.3% increase. This was fueled by double-digit growth in personal and
other loans at 15.6% followed closely by a 5.4% growth in residential mortgages and 14.1% hike
in commercial mortgages. Moreover, total deposits jumped $19.6 million or 9.2%. By year
end, our total assets increased approximately $10.7 million or 4.3% - securing our place as the
19th largest credit union in BC - and BC’ s largest fully unionized credit union.
RECORD PROFITABILITY Helped by a strengthening BC economy, up-beat consumer
attitudes, continued strength in housing starts, low unemployment and interest rates, our
net earnings this year nearly doubled to $1.2 million compared to $698 thousand last year.
transforming . annual report . 2006
In 2006, we launched a new banking system, new
ATMs, rolled-out MemberDirect, added new products
and services and so much more...
This milestone represents the single biggest increase in our credit union’s proud history. And since
past behavior is often the best indicator of future performance, we believe that the way to maintain
this success is to strive to better our best performance. The net effect? Transformation.
We are committed to achieving excellence through a best practice approach in order to enhance
employee satisfaction and member service. That’s why we forged a partnership with Working
Enterprises and facilitated new initiatives that have already begun to transform the way we serve
our members and to increase our productivity and efficiencies.
NEW INITIATIVES After nine months of intense planning, development and training - we launched
“Wealthview” in early October - arguably the most advanced and robust Canadian banking system
available today. Touted by some as one of the smoothest banking system conversions to date, it did
not come without personal sacrifice. While there are so many who played a key role in its success I
have to acknowledge the efforts of Eric Doornberg, Information Systems Manager, his entire
systems team, our trainers, subject matter experts, the branches and finally, my SeniorVice
President, Dana Dekker, who ensured the conversion was completed on-time and on-budget.
Now that four months have passed since the conversion, we are already beginning to reap the
benefits. The new system now allows us to provide members with greater reliability, flexibility,
functionality and security. It has already streamlined our business processes, shortened wait times
and increased employee productivity. But more importantly, it has allowed us to roll-out enhanced
products and services - like easier to read statements, state-of-the-art ATMs, MemberDirect and
MemberConnect banking, new bundled products and services, in-branch receipt printers and so
much more. We even found the time and resources to change our credit insurance provider to CRI a move that will provide members with greater insurance options, coverage and better pricing
overall. While we are still working out the bugs of the new system, the bulk of it is behind us and we
now look forward to leveraging this technology in the future. We owe our members and employees
a profound thank-you for their patience, continued support and most of all, understanding. In the
end, this new system will position us well for further enhancements and growth.
PEOPLE FIRST 2006 was also a year in which we continued to attract and retain highly skilled
professionals to join our team, further develop the talented individuals already on board and
recognize team performance. To recruit great people, we provide a highly competitive
For the fourth straight year, Community Savings
received the distinction from Imagine
Canada as a “Caring Company”
compensation plan and offer a comprehensive benefit program. More importantly, we take time to
celebrate the contributions and dedication of our staff with ServiceAwards handed out at each
Annual General Meeting. If another way to measure employee satisfaction is tenure, then we have
some of the most satisfied employees around. Our average tenure is a remarkable 11 years.
COMMUNITY CARE One thing that didn’ t change in 2006 was our commitment to the
communities we serve. From our support of the United Way, Heart and Stroke Foundation and the
Canadian Cancer Society to local charities and initiatives too numerous to mention - Community
Savings is guided by a commitment to corporate social responsibility and to improve the quality of
life in the communities where we live and work.
THANK YOU Yes, we have accomplished a lot in a very short time but there is so much more to do. I
am excited about the possibilities that lie before us: more functionality for MemberDirect users,
new products and services and soon, the ability to provide additional insurance, travel, tax planning
and wealth management through our recent partnership with Working Enterprises. Of course,
none of this would have been possible without the leadership and vision of our board of directors,
the dedication and support of my senior executive and management team and the tremendous
contribution and “buy-in” of our employees and their families. But the biggest thank you goes to
you, our members, for sticking with us during this time of transition.
Respectfully,
Bruce Cook
President and Chief Executive Officer
Community Savings Credit Union
transforming . annual report . 2006
$1.2 million
2006
5 year performance
net earnings have nearly doubled from $661,763
in 2002 to nearly $1.2 million in 2006
1.1M
1.0M
900
800
700
$698,135
$668,861
$645,581
600
2003
2004
2005
Source: audited financial statements for the years ended September 30th
2006
total assets
have grown from
$187.4m in 2002 to
$257.4m in 2006
%
37.4
assets up
transforming . annual report . 2006
$232.2 million
5 year performance
total deposits have jumped from $176.1 million
in 2002 to $232.2 million in 2006
31.8%
2006
02
03
04
05
06
$203.1 million
transforming
growth
retained earnings and total loans have
steadily increased year over year
$11.8 million
02
03
04
05
06
retained earnings have grown from $8.6
million in 2002 to 11.8 million in 2006
37.5%
02
03
04
05
06
total loans climbed from $141.9 million in
2002 to $203.1 million in 2006
43.1%
retained earnings and lending growth
Source: audited financial statements for the years ended September 30th
transforming . annual report . 2006
A U D I TO R S ’ R E P O R T
ON
S U M M A R I ZE D F IN ANCIAL S TATEMENTS
To the Members of Community Savings Credit Union,
The accompanying summarized balance sheet and statements of earnings and retained
earnings and cash flows are derived from the complete financial statements of Community
Savings Credit Union as at September 30, 2006 and for the year then ended on which we
expressed an opinion without reservation in our report dated December 13, 2006. The fair
summarization of the complete financial statements is the responsibility of management.
Our responsibility, in accordance with the applicable Assurance Guideline of The Canadian
Institute of Chartered Accountants, is to report on the summarized financial statements.
In our opinion, the accompanying financial statements fairly summarize, in all material
respects, the related complete financial statements in accordance with the criteria described
in the Guideline referred to above.
These summarized financial statements do not contain all the disclosures required by
Canadian generally accepted accounting principles. Readers are cautioned that these
statements may not be appropriate for their purposes. For more information on the credit
union’s financial position, results of operations and cash flows, reference should be made
to the related complete financial statements.
New Westminster, Canada
December 13, 2006
GRANT THORNTON LLP
Chartered Accountants
COMMUNITY SAVINGS CREDIT UNION
S UM M A R I Z ED B A L A N C E S H E E T
2006
September 30
2005
ASSETS
Cash resources
$
50,602,152
$
67,430,621
203,085,500
176,106,875
Investments and other
1,411,201
1,312,612
Premises and equipment
2,329,595
1,847,134
Loans
$
257,428,448
$
246,697,242
$
232,242,436
$
212,689,910
LIABILITIES AND EQUITY
Deposits
10,003,740
20,004,981
Payables and accruals
1,919,938
1,777,614
Equity shares
1,492,987
1,655,180
11,769,347
10,569,557
Borrowings
Retained earnings
$
257,428,448
$
246,697,242
On Behalf of the Board,
C. Jordan
Chairperson
P. Legg, Director and
Audit Committee Chair
transforming . annual report . 2006
COMMUNITY SAVINGS CREDIT UNION
S U M M A R I Z E D S TAT E M E N T
OF
EARNINGS
AND
R ETAINED E ARNINGS
2006
Year Ended September 30th
$
Financial income
12,243,260
2005
$
9,987,163
Financial expense
5,016,061
3,821,138
Financial margin
7,227,199
6,166,025
Recovery (provision) for loan losses,
(59,109)
net of recoveries
45,324
Other income
2,344,522
2,273,829
Operating margin
9,512,612
8,485,178
Operating expenses
8,154,863
7,632,783
Earnings before income taxes
1,357,749
852,395
Income taxes
157,959
154,260
Net earnings
1,199,790
698,135
10,569,557
9,871,422
Retained earnings,beginning of year
$
Retained earnings,end of year
COMMUNITY SAVINGS CREDIT UNION
S U M M A R I Z E D S TAT E M E N T
OF
11,769,347
$
10,569,557
C A S H F LOWS
2006
Year Ended September 30th
2005
Cash flows provided by (used in)
)
Operating activities
$
1,856,171
$
(933,195)
9,043,871
34,903,351
Investing activities
(27,728,511)
(2,920,411)
Net (decrease) increase in cash resources
(16,828,469)
31,049,745
67,430,621
36,380,876
Financing activities
Cash resources, beginning of year
Cash resources, end of year
$
50,602,152
A full set of financial statements is available from the Credit Union.
$
67,430,621
credit union
information
BOARD OF DIRECTORS
Colleen Jordan
Chair
Ken Isomura
Vice-Chair
David Tones
Secretary-Treasurer
Ken Bauder
Narinder Bhullar
Mary LaPlante
Phillip Legg
Trevor Oram
Dale Sagmoen
Jagdip Sivia
Dave Wilson
SENIOR EXECUTIVE OFFICERS
Bruce Cook
President & Chief Executive Officer
Dana Dekker, B. Comm.
Senior Vice President
Robin Medelko, B. Comm., CA, CBV
Vice President, Finance
Judy Towill
Vice President, Human Resources
MANAGEMENT
Lynda Arland
Executive Assistant
Lori Cooke
Manager, Credit
Eric Doornberg
Manager, Information Systems
Roselle Felgner
Manager, Financial Analysis & Investment
Ann Henderson
Manager, Payment Systems &
Centralized Administration
Ken Hodge
Manager, Special Projects
Nick Moseley
Manager, Branch Operations
Business Development Managers
Pravin Narotam
Regional Manager
Linda Dumka
Union Liaison Officers
Marie Decaire
Par Sihota
Branch Managers
Cameron Gillett
Vancouver
Robin Lane
Surrey
Kiyoko Shimizu
Victoria
Saroja Sundar
New Westminster
Tracey Weir
Port Coquitlam
HEAD OFFICE
Community Savings Credit Union
Suite 1600
13450 102nd Avenue
Surrey, BC, Canada
V3T 5X3
Fax: (604) 586-5156
PORT COQUITLAM
100 - 1125 Nicola Avenue
Port Coquitlam
V3B 8B2
Fax: (604) 464-5986
VANCOUVER
5108 Joyce Street
Vancouver,
V5R 4H1
Fax: (604) 654-2130
VICTORIA
103 - 2750 Quadra Street
Victoria
V8T 4E8
Tel: (250) 385-8431
Fax: (250) 385-8679
COMMERCIAL / CENTRALIZED
LENDING
900 - 7380 King George Highway
Surrey
V3W 5A5
Fax: (604) 595-2602
WEBSITE & EMAIL
www.comsavings.com
[email protected]
ALL BRANCHES : (604) 654-2000
TOLL FREE: 1-888-963-2000
BRANCHES
NEW WESTMINSTER
1188 - 8th Avenue
New Westminster
V3M 2R6
Fax: (604) 395-8163
SURREY
900 - 7380 King George Highway
Surrey
V3W 5A5
Fax: (604) 592-2265
transforming . annual report . 2006
transforming
TM
16th floor, 13450-102nd Avenue, Surrey, BC, V3T-5X3. Call 604-654-2000, 1 -888-963-2000 or visit www.comsavings.com