CUCNB Annual Report `09 - Atlantic Credit Unions

2009
Organization Chart 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
2009 Committee Members . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Joint Report of the Board and Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
The 2010 Distinguished Credit Union Owner/Employee Award
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ANNUAL REPORT
TA B L E O F C O N T E N T S
Auditors’ Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Financial Statements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Notes to the Financial Statements
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Statistical Summary for New Brunswick Credit Unions . . . . . . . . . . . . . . . . . . . . 26
Harry M. Daley Memorial Bursary Financial Statements . . . . . . . . . . . . . . . . . . . 27
Sponsor Appreciation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
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CREDIT UNION OF NEW BRUNSWICK
O R G A N I Z AT I O N C H A R T 2 0 0 9
Board of Directors
Gerard Adams
President & CEO
Linda Perry
Executive Assistant to the President & CEO
Kim Walker
Paul Paruch
Dave D’Amours
Chief Financial Officer
Vice President Operations & Development
Manager Credit Services
Valerie Douthwright
Alexandra Chamberlain
Manager Operational Risk
Co-ordinator Credit Union Services
Note: Nancy Lutes is replacing
Alexandra Chamberlain while
she is on maternity leave.
Tabitha Duffy
Senior Accountant
Carole Aubé
Account Officer
Gerard Adams
Linda Perry
Kim Walker
Paul Paruch
Dave D’Amours
Alexandra Chamberlain
Valerie Douthwright
Tabitha Duffy
Carola Aubé
Mary Alice Brown
Theresa Folkins
Nancy Lutes
Mary Alice Brown
Account Officer
Theresa Folkins
Receptionist
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2009
Executive
Executive Committee
Committee
New
New Brunswick
Brunswick Young
Young Leaders
Leaders Committee
Committee
Alberta (Bobbie) McNutt – Board Chair
Pat Duffield – CUCNB Board, Committee Chair
Frank Carroll – 1st Vice Chair
Mark Gorman – NBTA Credit Union, Committee Vice Chair
Charles Parker – 2nd Vice Chair
Corey Bowes – OMISTA Credit Union
Shawnalynn Swain – NBTA Credit Union
Jennifer Marr – Advance Savings Credit Union
Finance &
& Audit
Audit Committee
Committee
Finance
Margo MacKenzie Albright – Carleton Pioneer Credit Union
Tina Myles – McAdam Credit Union
Kevin Murphy – Chair
Kurt Peacock – Bayview Credit Union
Vance Craig
Karen Curtis – Blackville Credit Union
Monica White
Trevor MacDougall – ACYL
Governance Committee
Committee
Governance
Legislative Affairs
Affairs Committee
Committee
Legislative
Charles Parker – Chair
Don Morton – CUCNB Board
Shirlee Coleman
Shirlee Coleman – CUCNB Board
Baz McGean
ANNUAL REPORT
COMMITTEE MEMBERS 2010
Don Roper – Advance Savings Credit Union
George Greenwood – Beaubear Credit Union
Director Training
Training Advisor
Advisor Committee
Committee
Director
Frank Carroll – CUCNB Board, Committee Chair
Pat Duffield – CUCNB Board
Judy Breau – Beaubear Credit Union
Mary MacLeod – Bayview Credit Union
Sean Liptay – OMISTA Credit Union
Gary Steeves – RMA
Janet Toner – CUSOURCE Resource
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B R U N S W I C K C R E D I T U N I O N F E D E R AT I O N L I M I T E D
J O I N T R E P O RT O F T H E B OA R D & M A N AG E M E N T
Ye a r E n d e d D e c e m b e r 3 1 , 2 0 0 9
It is with great pleasure that we present the report of the Brunswick Credit Union
1 Credit Union’s acquisition of The CUMIS Group Limited was completed on
Federation Limited, operating as Credit Union Central of New Brunswick (“your
December 31, 2009. Upon execution of final agreements between Co-operators
Central”), for the year ended December 31, 2009.
and Central 1, The Co-operators group will own approximately 73 per cent and
Central 1 will own approximately 27 per cent of CUMIS.
2009 was another very interesting year for both the Credit Union system in New
Brunswick and for your Central. As was the case in 2008, extensive resources were
Operating expenses at your Central reflected an increase of 18.2% over the 2008
devoted to the plans for moving forward with the new Atlantic Central. After
figure. However, this was largely due to two factors – the assumption of an additional
receiving your approval of the business plan at the Annual General Meeting in
employee when the lending function was transferred from Risk Management
April 2009, the work began in earnest. A project management firm was engaged
Agency, and the costs associated with the Atlantic Central project. These two
and working groups were formed from among the functional management areas.
factors combined accounted for a 12.6% increase in operating costs. The balance
The Steering Committee, made up of the Executive Committees of the three
sheet of your Central as of December 31, 2009 reflects assets of $113.3 million,
Centrals and a member from Newfoundland and Labrador, was very active in
virtually unchanged from the $113.6 million of the previous year.
2009 overseeing the various aspects of the transaction. Some delays were
encountered, however, and as a result the closing of the transaction is now scheduled
From a system perspective, total assets grew to $804 million by the end of 2009,
for December 31, 2010. We were also pleased that a transaction review revealed
representing growth of 4.7% over the 2008 figure of $768 million. Our total
that New Brunswick Credit Unions will be able to make up any equity shortfall in
number of Owners in the Province remains in excess of 78,000. The number of
the new entity by way of investing in Class B preferred shares, as opposed to the
Credit Unions and locations at year end was 16 and 35 respectively; however, the
direct equity contribution we had originally envisioned.
number of Credit Unions reduced to 13 on January 1, 2010 due to the
The financial report for 2009, which is included in this booklet, reflects the results
Credit Union and York Credit Union; and Capital and Carleton-Pioneer Credit
amalgamations of Advance Savings Credit Union and PSE Credit Union; OMISTA
for your Central in the year. The report shows that our net income (including other
Unions. We congratulate the newly combined entities on these initiatives. During
comprehensive income) after tax was over $370,000 for the year. This compares
the year decisions were made to close locations in Campobello Island, Black’s
with a figure of over $1.25 million in 2008. It must be noted, however, that in
Harbour and Gagetown, and as well the amalgamation of Prosper Credit Union
2009 CUCNB recorded the write-off of a $1.4 million investment in a Credit Union’s
with Bayview Credit Union resulted in the former Prosper location being closed.
preferred shares. This extraordinary event, although necessary, prevented our net
We can also report that system equity at December 31 was 6.88%, as compared
income from being very close to $2 million. This is a credit to the outstanding
to 6.9% a year ago. Only two Credit Unions were under the supervision of the
work of our Chief Financial Officer and our investment portfolio manager, CIBC
Risk Management Agency, unchanged from the end of 2008.
Wood Gundy. They were able to crystallize capital gains in our portfolio without
damaging cash flow and return. These gains served to offset the write-off, and we
Several initiatives made progress during the year. Among these were the rolling
also had the good fortune at the end of the year to realize a significant gain on
out of a property and casualty insurance offering made by CUCNB through CUMIS
the sale of our CUMIS shares. Co-operators Life Insurance Company and Central
on behalf of Credit Unions, the continuation of the national project to prepare
Credit Unions for the introduction of International Financial Reporting Standards,
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Your Central continued to be actively represented on the national front in 2009.
Our President and CEO, Gerard Adams, is completing the final year of a three
year term on the Board of Directors of Credit Union Central of Canada. He is
also the Chair of the Board of Directors of CUSOURCE. Our Chief Financial Officer,
and the continuing branding work of the Atlantic Marketing Group (including
the first ever Brand Forum). As well, lobbying efforts with the Provincial
Government made great strides toward the approval of a loan guarantee program
for small businesses. We are hopeful that government will be in a position to
announce such a program in 2010.
Central’s Board Committees were active during the year as well. The Executive
Committee of Alberta (Bobbie) McNutt, Frank Carroll and Charles Parker, made
up the New Brunswick contingent on the Steering Committee which guided
the Atlantic Central discussions both before and after the vote in April. As well,
they provided oversight to the activities of the Board, meeting frequently between
Kim Walker, is representing New Brunswick, along with Tammy Christopher of
OMISTA Credit Union, on the national working group for the conversion to IFRS.
We are also actively involved in both the National Legislative Committee and
the National Risk Management Committee.
Finally, as always, we need to acknowledge the efforts of our small but dedicated
staff who serve Credit Unions at your Central. Despite the added element of the
2009
ANNUAL REPORT
SEATED: (LEFT TO RIGHT) Charles Parker, Alberta (Bobbie) McNutt, Frank Carroll
BACK ROW: (LEFT TO RIGHT) Patricia Duffield, Kevin Murphy, Baz McGean, Don Morton,
Shirlee Coleman, Vance Craig, Monica White
impending creation of the Atlantic Central, they remain focused on the needs
of New Brunswick Credit Unions on both a day to day and a strategic level. It is
a privilege to work with these individuals and to share their enthusiasm for our
movement.
Board meetings. Ms. McNutt and Kurt Peacock were elected as New Brunswick’s
representatives on the interim Board of Atlantic Central, which will take office
once the definitive agreement outlining the transaction is signed. The Audit and
Respectfully submitted by:
Finance Committee, chaired by Kevin Murphy, also met quarterly to review the
financial statements, budgets and investment policies of the Central. The
Governance Committee also assisted in helping to address the requirements for
the new Atlantic Central.
Alberta (Bobbie) McNutt, Chair of the Board
The Director Training Advisory Committee, chaired by Mr. Carroll, continued its
work in ensuring that Credit Union directors in the Province had access to the
necessary training to fulfill their responsibilities. Our system-owned national
learning organization, CUSOURCE, continues to be the service provider of choice
Gerard M. Adams, C.A, President and Chief Executive Officer
in this area. The New Brunswick Young Leaders Committee continued to put
forward innovative suggestions for attracting and retaining youth as employees,
volunteers and owners.
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THE 2010 DISTINGUISHED
C R E D I T U N I O N O W N E R / E M P LOY E E AWA R D
Dennis Williams
2010 Distinguished Credit Union
Owner/Employee Award Recipient
Nominated jointly by OMISTA and NBTA Credit Unions.
Dennis is retiring from the Credit Union system following a career of 32 years. He began with OMISTA Credit Union
in 1973 and moved to an Ontario-based Credit Union insurance company until he was approached to manage both
the Chatham base and Saint Margaret’s branches of CFB Chatham Credit Union. Dennis started work at York in
1982 when they had 225 owners, $160,000 on deposit and only 1.5 employees. The financial history of York has
been a statement of success. Prior to the January 2010 merger with OMISTA Credit Union, York’s managed assets
had grown to approximately $50,000,000 with two branches, over 3,700 owners and 26
employees, a record to be proud of. Dennis is the original coordinator of the Annual
NB Credit Union Bowling Tournament and is currently the organizer for the 2010
Atlantic Golf Tournament being held in Fredericton on September 10th and 11th.
He recently celebrated his 37th wedding anniversary with his wife Brenda, two
daughters and four grandchildren.
Congratulations Dennis Williams!
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AS OF
TOTAL ASSETS
DEC. 31, 2009
(MILLIONS)
2009
OWNERS
FULL TIME
EMPLOYEES
PART TIME
EMPLOYEES
Advance Savings
$99.87
7
8,787
45
6
Bayview
$274.5
7
26,774
88
8
Beaubear
$45.07
2
4,206
19
7
Blackville
$9.19
1
2,500
5
2
Capital
$46.67
2
5,310
16
6
Carleton Pioneer
$27.96
2
3,033
14
3
Charlotte County
$18.11
2
3,695
10
5
$0.32
1
163
0
2
Citizens
$13.94
1
1,574
5
1
Dalhousie
$11.87
1
1,800
6
3
Church River
Deer Island
$3.80
1
1,001
1
2
McAdam
$6.66
1
1,114
4
2
NBTA
$36.79
1
3,913
13
0
$140.06
3
7,021
51
3
PSE
$27.36
1
2,772
9
0
York
$41.72
2
3,617
17
9
$803.89
35
77,280
303
59
OMISTA
SUB TOTAL
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BRANCHES
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NEW BRUNSWICK CREDIT UNIONS
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S P O N S O R A P P R E C I AT I O N