Your Tomorrow Starts Here

Transcription

Your Tomorrow
Starts Here
Noventis Credit Union
2013 Annual Report
Your Tomorrow Starts Here | 2013 Noventis Credit Union Annual Report
Page 2 of 18
Contents
03 Our Purpose
04 Message from the Board of Directors
05 Meet the Board
06 Meet the CEO
06 Executive Team
07 Member Benefits
08 Corporate Social Responsibility
09 Results
Financial Statements
12
Independent Auditor’s Report
13
Summary Consolidated Statement of Financial Position
14 Summary Consolidated Statement of Comprehensive Income
15
Summary Consolidated Statement of Changes
in Members’ Equity
16 Summary Consolidated Statement of Cash Flows
17
Note to the Summary Consolidated Financial Statements
Page 3 of 18
Our Purpose
At Noventis Credit Union we
strive to provide quality financial
services and support for our members
and communities.
Our Vision
Innovative Solutions for Better Communities
Our Values
In achieving our Mission, we are guided by these Core Values
and Principles:
Integrity
We pursue the highest standards of ethics and respect. We earn
trust through our honest, open and transparent practices.
Excellence
We strive for superior performance, and consistently provide
professional, innovative and quality service.
Accountability
We are accountable for our actions. We demonstrate
responsive and innovative leadership to ensure the strength
of our organization.
Cooperation
We work together in the spirit of teamwork, collaboration and
cooperative principles.
Sustainability
We are committed to the long term well-being of our communities.
Page 4 of 18
Message from
the Board of Directors
“Cooperative enterprises build a better world,” was the slogan for
the International Year of the Cooperative. This slogan is expressed
in the mission statement of Noventis Credit Union. “Providing
quality financial services and support for our members and
our communities.”
One of the instruments that Noventis has established to extend
our commitment to our mission statement and the above slogan,
is through our Corporate Social Responsibility program. The
CSR committee is composed of six members, two of each, board
members, staff, and senior management. Their objective is that,
“The CSR committee supports the organization’s commitment
to connecting and strengthening our communities by responsibly
contributing to their development and well being. The goal of
CSR is to embrace responsibility for the organization’s actions
and through its activities, encourage a positive impact on the
environment, members, employees, communities, and all other
members of the public sphere who may also be considered as
stakeholders.” In the past year, Noventis contributed $158,400
back to our communities through the CSR and sponsorship
program. Details of how to apply for funding and where the funds
were allocated can be found at www.noventis.ca.
The squeeze on financial margins in the Credit Union system
the last number of years had inspired some of the legacy Credit
Unions to look for other options to generate additional income.
Previously, Arborg Credit Union acquired Sigvaldason Insurance,
and Gimli Credit Union purchased a 49% share in Interlake
Agencies, with the agreement to purchase the remaining 51%
share on May 1, 2013. Noventis also acted on another opportunity
this year to purchase Norstar Insurance. The three agencies
have now been amalgamated into one organization, Interlake
Agencies Ltd. operating as Interlake Insurance and Real Estate,
which is a subsidiary of Noventis Credit Union. Richard Arnason,
the former owner of Interlake Agencies, was hired to execute the
amalgamation of the subsidiaries and has been appointed VP of
Insurance and Real Estate for Noventis. There were renovations
that needed to be made at the Arborg location to accommodate
the staff from Norstar Insurance, and the building in Riverton
had outlived its useful life and a new building was constructed on
the same property this past fall. Both Sigvaldason Insurance and
Interlake Agencies have contributed significant returns to Noventis
and we predict that will strengthen, with greater income being
generated going forward with the new organization. This is going
to assist in maintaining profitability for the Credit Union with the
continual increases in cost for regulatory compliance and the
change in federal taxation rate for Credit Unions increases from
11% – 15% over the next five years.
This summer the installation of an ATM terminal at Winnipeg
Beach was completed. This was the final Noventis branch to
receive ATM service. Now all our members have access to 24/ 7
banking services, through the ATM’s at each branch.
Keeping pace with emerging technology is always a challenge, and
staying current is necessary if we are going to keep our younger
and more tech savvy members loyal to our Credit Union. We need
to support legacy users and also evolve to a digital world. We
redeveloped our web site to enhance the integration of the website
and the on-line banking, so we have a more seamless contact with
members on-line. The website will be a large part of our marketing
strategy in the future as more members are moving towards using
web based services as opposed to in-branch services.
This past year marked a change in director election procedure. In
addition to being able to vote at the annual meeting, members
had the opportunity to cast their ballot at their branch one week
prior to the annual meeting. This year we have two new directors,
Nolan Sigvaldason was elected for a three year term for the Arborg
district, and Clayton Gibson was appointed for a one year term
for the Eriksdale district. The board would like to thank out going
director Eric Fridfinnson for his years of service to both Noventis
and also to the Arborg Credit Union.
An organization is defined by its people. Noventis is fortunate to
have excellent staff, as was confirmed in the Mystery Shoppers
Report. The report stated, “Overall, the Mystery Shop produced
very positive results across the board. Words used to describe the
Noventis Credit Union experience included, efficient, excellent,
great, pleasant, and very good.” The board would like to thank
the management and staff for their commitment to training, and
their dedication to benefiting the members of Noventis with high
quality service.
We would also like to thank you, the membership, for your
commitment to having Noventis Credit Union as your financial
institution of choice. By working together in a cooperative manner,
we can realize our mission of “providing quality financial services
and support for our members and communities,” and in doing so,
“build a better world”.
— Respectfully submitted on behalf of the Board of Directors
of Noventis Credit Union
Page 5 of 18
Meet the Board
Lee Gregory
Chair
Peggy Vigfusson
Vice Chair
Joanne Warwick
Secretary
Paul Cuthbert
Director
Sandra Falk
Director
Clayton Gibson
Director
Marlene Michno
Director
Barrie Sigurdson
Director
John Sigurdson
Director
Nolan Sigvaldason
Director
Bragi Simundsson
Director
Jonas Thorarinson
Director
Meet the CEO
It has been my pleasure to
serve as CEO for Noventis
Credit Union over the past year.
It has been an exciting year for
Noventis as we reflect on our
successes and challenges.
Success has included
achieving a moderate level
of growth, maintaining
profitability and improving
some of our measurements
of success. Our strength is
Kevin McKnight
in our people and a strong
Chief Executive Officer
commitment to the success
of the communities that we support through funding and
sponsorship programs. We have expanded our presence in
the insurance and real estate business which will benefit our
membership and the Interlake communities.
Page 6 of 18
Executive Team
“We would like to recognize
the staff of Noventis Credit
Union and Interlake Agencies
for their hard work, dedication
and commitment to providing
quality services and support to
our communities”
A tight financial margin environment will continue to be a
challenge for us as we must ensure our long term sustainability
so we can continue to maintain services in our communities.
The advancement of technology increases the expectation of our
membership for convenient options and we are pleased to list
a number of enhanced service offerings including e-transfers,
mobile banking and text banking to complement our excellent inperson and on-line options.
I am excited about the plans for Noventis Credit Union as our
team looks to the future with strategies for growth and long
term sustainability. Our teams are focused on adding value
to every member experience and we are well positioned to
meet every challenge. I am proud of our teams’ work and look
forward to the future.
Mark Jeffers
VP of Finance and CFO
Philip Bauernhuber
VP of Lending and Credit
Kathy Sauerborn
VP of Operations
Dick Arnason
VP of Insurance and Real Estate
Page 7 of 18
Member Benefits
Member ownership has its benefits!
Equity
Patronage Refund
This year the Board declared a patronage refund of $252,729
based on service charges paid by eligible members with more
than $40,000 of business with the credit union. This refund was
provided through the Member Value Pricing Program in the form
of member surplus shares.
Capital Requirements
One of the regulatory requirements placed on credit unions
is to maintain adequate capital at a minimum level of 5%
of assets. The Noventis policy is to maintain a minimum of
5.875% of assets. The global standard for capital suggests that
retained earnings are the preferred form of capital. A strong
capital position allows financial institutions to survive the risk
associated with market shifts.
Share Redemption
To keep a strong financial position, the Board plans to redeem the
members’ share capital over time and replace shares with retained
earnings. This year Noventis Credit Union paid out a total of
$787,325 to redeem shares as follows:
$96,040
Common shares
redeemed to estates
and members over 65.
$207,285
Surplus shares
redeemed to estates
and members over 65.
$484,000
Member Value
Pricing surplus shares
redeemed to members.
$31M
(6.19%)
76% Retained
24% Members
Looking Forward to 2014
Annually as a result of the year end financial position, the
Board determines what amount of income can be shared
with members as a cash payout for redemption of shares.
To maintain our capital requirements of 5.875% the income
sharing to members from 2012/2013, to be paid through
share redemption in 2014, is approximately $599,815.
Page 8 of 18
Corporate Social
Responsibility
Supporting our communities is a
cornerstone of our philosophy and
mission. This is accomplished through
activities such as funding community
organizations, time commitments and
volunteerism of our staff.
2013
Our funding program gives preference to the following:
• Community Renewal
• Cooperative Development
• Environmental Sustainability
• Family and Social Connections
• Health and Well-being
• Youth and Education
We fund specific projects and also provide much sponsorship to
local community groups, sports teams and education initiatives.
In 2013 we provided $158,400 in economic support to
our member communities.
Cooperative Development
$8,676
$43,455
Community Renewal
Environmental Sustainability
$2,185
$45,350
Family & Social Connections
Health & Well-Being
Youth & Education
$7,514
$51,220
Page 9 of 18
Results
The 2012-13 year has seen Noventis
grow its assets to $508 Million. The
organization measures its success
in a balanced approach considering
perspectives from members,
financial, internal processes and
learning and growth.
Member Satisfaction
Member Service Excellence
Quality service and providing value to meet member needs
are our priority. To assist staff in meeting those needs, all
staff received customer service training as part of the ongoing
commitment to improve value to the member experience. Our
members assisted us in assessing our performance through
mystery shopping trips where information was gathered on
individual experiences. This positions us well for future success.
Sustainable Financial Growth
Member Deposits grew by 6.0% and lending grew by 6.6%. This
positive trend in asset growth is expected to continue as we target
to achieve a 7% growth rate per year for sustainability. Financial
margins are tighter due to the low interest rate environment.
Assets now total $508 Million.
Growth
Results
Loans
Target
Results
Deposits
75%
Asset Mix
Target
Ag Sector
Lending
Results
Non-Interest
Revenue
Results
Target
Target
6.6%
7.0%
6.0%
7.0%
9.7%
7.0%
6.0%
3.0%
Loans Mix
82% Loans
51% Consumer
11% Investments
28% Commercial
$508.3M
$416.7M
6% Deposits
1% Property
21% Agriculture
Page 10 of 18
Growth
550
Assets
Deposits
500
450
400
Loans
350
300
250
200
150
100
50
$ Millions
2008
2009
Investing in our Staff
As we continue to enhance the services to our membership, we
believe in investing in the development of our staff. The quality of
services ensures we can meet our goals as an organization.
5,300
Training Hours
2010
2011
2012
2013
Technology
The financial services industry continues to evolve to provide
enhanced service options and we are changing with it. We have
added e-transfers to complement a wide variety of options
including mobile, text, on-line and ATM services. We continue to
prepare our systems and infrastructure for future enhancements
to services.
Business Development
Noventis expanded its ownership in Interlake Agencies and also
purchased business from Norstar Insurance. Its three insurance
businesses of Sigvaldason (Arborg/Riverton), Norstar (Arborg)
and Interlake (Gimli/Arborg) will now be operating as a single
business under Interlake Insurance and Real Estate. This type of
diversification of our operations is planned to improve our sustainability over the long term and it also ensures the stability of insurance services in our communities.
Page 11 of 18
Noventis Credit Union Ltd.
Summary Consolidated Financial Statements
For the Year Ended September 30, 2013
Page 12 of 18
Independent Auditors' Report
To the Members of Noventis Credit Union Ltd.:
The accompanying summary consolidated financial statements, which comprise the summary consolidated statement of financial position
as at September 30, 2013, and the summary consolidated statements of comprehensive income, changes in members’ equity and cash
flows for the year ended September 30, 2013 are derived from the audited consolidated financial statements of Noventis Credit Union
Ltd. for the year ended September 30, 2013. We expressed an unmodified audit opinion on those consolidated financial statements in our
report dated December 16, 2013.
The summary consolidated financial statements do not contain all the disclosures required by International Financial Reporting
Standards. Reading the summary consolidated financial statements, therefore, is not a substitute for reading the audited consolidated
financial statements of Noventis Credit Union Ltd.
Management’s Responsibility for the Summary Consolidated Financial Statements
Management is responsible for the preparation of the summary consolidated financial statements in accordance with International
Financial Reporting Standards.
Auditors' Responsibility
Our responsibility is to express an opinion on the summary consolidated financial statements based on our procedures, which were
conducted in accordance with Canadian Auditing Standard (CAS) 810, “Engagements to Report on Summary Financial Statements”.
Opinion
In our opinion, the summary consolidated financial statements derived from the audited consolidated financial statements of Noventis
Credit Union Ltd. for the year ended September 30, 2013 are a fair summary of those consolidated financial statements.
Winnipeg, Manitoba
December 16, 2013
Chartered Accountants
A copy of the complete consolidated financial statements including significant accounting policies and other
explanatory information is available from the credit union or at www.noventis.ca.
1
Page 13 of 18
Summary Consolidated Statement of Financial Position
As at September 30, 2013
2013
2012
28,585,969
28,174,937
Assets
Funds on hand and on deposit
Current tax recoverable
Investments
Members' loans
-
51,016
47,507,209
50,635,625
416,661,146
390,875,866
Other assets
1,302,647
526,964
Property and equipment
7,031,971
6,993,173
Goodwill and intangible assets
7,196,539
1,186,651
-
30,300
508,285,481
478,474,532
472,638,388
446,051,223
Deferred taxes
Liabilities
Members' savings and deposits
3,459,293
3,364,435
Income taxes payable
85,109
-
Deferred taxes
658,815
-
476,841,605
449,415,658
Accounts payable and other liabilities
Members' equity
Members' shares
7,458,617
7,942,588
Retained surplus
23,985,259
21,116,286
31,443,876
29,058,874
508,285,481
478,474,532
Approved on Behalf of the Board
Signed “Lee Gregory”
, Director
Signed “Bragi Simundsson”
, Director
2
Page 14 of 18
Summary Consolidated Statement of Comprehensive Income
2013
2012
16,516,509
16,386,180
1,973,784
2,076,291
18,490,293
18,462,471
Cost of funds
8,506,425
8,825,400
Financial margin
9,983,868
9,637,071
Operating expenses
Administration
3,221,233
2,809,257
Member security
506,542
430,277
1,011,305
1,038,703
Financial income
Interest from members' loans
Investment income
Occupancy
Organizational
100,800
125,281
6,162,121
5,942,483
Gross operating expenses
11,002,001
10,346,001
Other revenue
Banking service charges, fees, and commissions
Personnel
(3,218,072)
(3,027,606)
Insurance commissions
(832,330)
(455,975)
Gain on equity investment
(602,198)
-
4,652,600
3,483,481
Net operating expenses
6,349,401
6,862,520
Income from operations before provision for impaired loans, patronage refund and income taxes
Provision for impaired loans
3,634,467
140,000
2,774,551
37,123
Income before patronage refund and provision for income taxes
Patronage refund
3,494,467
252,729
2,737,558
274,936
Income before provision for income taxes
Provision for income taxes
3,241,738
372,765
2,462,492
272,465
Income and comprehensive income for the year
2,868,973
2,190,027
3
Page 15 of 18
Summary Consolidated Statement of Changes in Members’ Equity
Members'
shares
Retained
surplus
Total
8,554,513
18,926,259
27,480,772
Income and comprehensive income
Issuance of member shares
Redemption of member shares
443,861
(1,055,786)
2,190,027
-
2,190,027
443,861
(1,055,786)
Balance, September 30, 2012
Income and comprehensive income
Issuance of member shares
Redemption of member shares
7,942,588
303,354
(787,325)
21,116,286
2,868,973
-
29,058,874
2,868,973
303,354
(787,325)
7,458,617
23,985,259
31,443,876
4
Page 16 of 18
Summary Consolidated Statement of Cash Flows
2013
2012
16,474,485
16,395,665
Interest received from investments
2,041,148
2,129,965
Income taxes paid
(282,943)
(254,987)
Cash provided by (used for) the following activities
Operating activities
Interest received from members' loans
Interest paid to members
Net operating expenses paid
Other income received
Investing activities
Net change in members' loans
Net change in investments
Purchase of property and equipment
Business acquisition
Financing activities
Net change in members' savings and deposits
Issue of members' shares
Redemption of members' shares
Increase in funds on hand and on deposit
(8,603,545)
(8,954,577)
(11,003,250)
(9,555,870)
4,050,402
3,483,481
2,676,297
3,243,677
(25,883,256)
(20,023,887)
1,716,308
(5,142,103)
(451,146)
(412,505)
(3,556,409)
-
(28,174,503)
(25,578,495)
26,645,938
16,338,207
50,625
168,925
(787,325)
(1,055,786)
25,909,238
15,451,346
411,032
(6,883,472)
Funds on hand and on deposit, beginning of year
28,174,937
35,058,409
Funds on hand and on deposit, end of year
28,585,969
28,174,937
5
Page 17 of 18
Note to the Summary Consolidated Financial Statements
1.
Compliance with minimum capital and liquidity requirements
Noventis Credit Union Ltd. (the “Credit Union”) is in compliance with the capital and liquidity reserve requirements at September 30,
2013 established by the Regulations to The Credit Unions and Caisses Populaires Act of Manitoba.
Readers of the summary consolidated financial statements are advised that in order to appropriately interpret the Credit Union’s
capital and liquidity, the reader must refer to the audited consolidated financial statements and notes for the year ended September
30, 2013, which contain the information detailing the calculation.
The accompanying note forms part of the summary consolidated financial statements.
6
Page 18 of 18
Branch Locations
Services
Arborg
250 Main Street
Box 328
Arborg, MB R0C 0A0
Phone: 204-376-2798
Gimli
34 Centre Street
Box 1139
Gimli, MB R0C 1B0
Tel. 204-642-6450
Telephone Banking
Local: 204-642-6480
Toll Free: 877-817-3131
Ashern
#4 Highway #6
Box 580
Ashern, MB R0C 0E0
Tel. 204-768-2733
Moosehorn
11 Railway Avenue
Box 190
Moosehorn, MB R0C 2E0
Tel. 204-768-2437
Eriksdale
4 Railway Avenue
Box 99
Eriksdale, MB R0C 0W0
Phone: 204-739-2137
Riverton
51 Main Street
Box 428
Riverton, MB R0C 2R0
Tel. 204-378-5121
Fisher Branch
48 Tache Street
Box 299
Fisher Branch, MB R0C 0Z0
Tel. 204-372-8411
Winnipeg Beach
23 Stitt Street
Box 429
Winnipeg Beach, MB R0C 3G0
Tel. 204-389-2550
Lost or Stolen ATM Cards
877-764-3693
© 2013 Noventis Credit Union
www.noventis.ca

Your Tomorrow Starts Here

Transcription

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