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2006 Annual Report
2006 Annual Report
2006 Annual Report
2006 Annual Report
Belong. Be Valued.
Belong. Be Valued.
Looking Back on a Brand New Day...
Table of Contents
3 Belong. Be Valued. – Valley First Rebrands
4 Message from the Chair
6 President & CEO’s Report
8 Report of Management
9 Financial Performance & Key Operational Highlights
11 Finance & Information Technology
12 Retail Banking
13 Commercial Banking & Insurance
14 Administration
15 In Your Community
16 North Okanagan / Thompson & Central Okanagan
17 South Okanagan
18 Valley First’s Corporate Profile
2006 Consolidated Financial Statements - See Insert
Page 2 / Valley First Credit Union – 2006 Annual Report
Belong. Be Valued.
Being a member of Valley First Credit Union gives a unique status of belonging.
It is democratic and empowered in a way that is different from other financial
institutions, whereby our membership has a voice in their credit union. We value
the relationships we have with our members, something that is experienced
thousands of times in every branch.
In 2006, after months of intense ‘behind-the-scenes’ planning and testing, we
proudly launched Valley First’s new brand. You may have noticed some changes
happening around our advertising and promotions or inside our branches. The
introduction of our new colours, icon, and positioning line were very exciting for us.
The colours and icon represent the sky, water, sun and rich earth of the BC Interior, while
the icon can also be perceived as a more abstract blooming flower, symbolic of growth
and potential. The colours are bold yet fresh and are reflective of our commitment to healthy
communities. In short, warm and friendly, a fresh new logo, one that reflects the face of our brand.
All of this is based on our promise to you, the membership, on the experience you will have each time you interact with us.
Our Brand Promise:
Valley First promises to treat all members and all those with whom we conduct business with kindness and respect, recognizing the
value of every individual as an integral part of the Valley First membership and guided by our commitment to make all decisions in
the best interest of the membership as a whole.
As a company with roots that run deep in the communities in which we conduct our businesses, we promise to never lose sight of
our responsibility to contribute back to those communities and to never lose touch with the unique needs of our members. For this
reason we promise to develop and deliver relevant financial products, services and solutions to our members and to each community
in which we conduct our business.
Most importantly, we are determined to do everything within our ability to create meaningful, lasting relationships with our members,
employees and business partners and to contribute to their financial health and growth. In doing so, we intend to provide positive,
proactive support in our members’ lives and in the lives of our employees and business partners.
We have received a very positive response to our new brand thus far and we look forward to watching it mature. Creating and
maintaining relationships with members is our key differentiator. We want to better understand the changing needs of our
members and continue to be innovative so that we can improve the value and benefits of membership.
Our Vision:
To be valued as the best financial services provider.
Our Purpose:
At Valley First Credit Union, we are a trusted advisor to our members and clients, providing financial
solutions that add value to their lives and the communities we serve.
Core Values:
• Honesty, fairness, integrity and ethical business practice
• Corporate citizenship with community responsibility
• Respect and opportunity for individual growth and the development of our people
• Continuously seek new opportunities to serve
• The pursuit of excellence in everything we do
• Strength and stability of capital
Valley First Credit Union – 2006 Annual Report / Page 3
Message from the Chair
Colleen Lister, CGA
2006 was a year of renewal and continued growth for your credit
union. Through the tremendous efforts and dedication of our
staff, the board is proud to report that Valley First continued to
strengthen its position in the marketplace, offering all of the
diverse products, services, and financial solutions expected of
a financial institution today. As evidenced by the credit union’s
strong financial and operating performance in 2006, our focused
efforts on the financial health and growth of our membership have
created positive results.
As Valley First continues to grow and the complexity of our business
changes along with it, we recognize the increasing importance of
having a strategic plan and direction that is fluid but focused on
efficiency and profitable business results. Your Board of Directors
plays a pivotal leadership role in setting the strategic direction for
Valley First and is committed to its long-term success.
This commitment starts with having strong governance practices
in place to ensure the credit union performs at the highest
possible level and that board policies and practices reflect the
highest standards and discipline expected of businesses today.
In continuing efforts to improve its effectiveness, the board
challenged its current practices to strengthen accountability and
performance in all areas of its role. Director training and education
continues to be a priority for the board.
Taking steps to more proactively manage board succession,
defining and evaluating board competencies, and establishing
new practices around the director election and recruitment
process, were just a few of the key areas addressed. As we modify
our business strategies and approach to attract and retain a
diverse membership, we must also ensure that the composition
of the board as a whole effectively reflects the membership base
of Valley First.
To meet the high standards of board accountability today, it is
critical to the organization that, collectively, Valley First directors
possess the appropriate combination of skill, experience and
Page 4 / Valley First Credit Union – 2006 Annual Report
knowledge to maximize the value and effectiveness of the board, and to address the evolving needs of Valley First members.
To this end, the board revisited the desired attributes of directors and articulated the desired competencies against which all
candidates will be evaluated.
Through the work of the nominating committee, the director recruitment process was improved to enhance the information
provided to prospective candidates and provide for a more formalized recruitment process. All interested candidates, including
incumbent directors, now go through a formal interview process with the nominating committee prior to any endorsements.
The nominating committee’s mandate is to ensure that it is not only putting forth enough candidates to fill the vacant positions,
but that the membership is provided with a qualified and committed selection of candidates for election each year.
Educating our membership on what it means to get involved in the credit union’s democratic governance also took on
heightened importance. New educational literature was issued to raise the level of awareness around the role of credit union
directors and to encourage our members to get involved in the governance of their credit union. It is only through direct input
that we can fully understand what is important to our membership.
The retirement of long-term directors provided an opportunity for two new members to bring their skills to the Valley First
board. Liz Goodison and John Robertson both retired in 2006 after serving 15 and 18 years respectively. Their contributions
and leadership played a significant role in guiding the credit union’s growth over the years, and we thank them both for their
dedication to effective governance. With the broad geographic reach of our branches, we are very pleased to have additional
members from the northern part of our region represented on the board. Wayne Becker of Kamloops and Peter Foodikoff of
Vernon both began their first term of office in April.
Being a truly effective board requires a personal commitment, strong communication and a genuine passion for the credit union
and its values. I thank my past and fellow directors for their support and commitment to effective stewardship in representing
the best interests of the membership.
At the heart of our credit union’s philosophies is an unwavering commitment to partner and make a meaningful difference
in the communities in which we operate. We do this in a variety of ways; through staff involvement in community activities,
financial support of vital community projects and sponsorship of events important to each of our unique communities. Proudly,
Valley First’s community giving program saw over $155,000 being contributed to these worthwhile causes in 2006.
Competition and our own drive to achieve our vision continually challenges us to be innovative in exploring ways to improve
our services and our organization to meet the needs of our members and staff, while at the same time strengthening it for the
future. As this annual report will share, many of the decisions and achievements of the past year directly relate to reaching this
goal.
On behalf of the board, I sincerely thank our management team and every one of our almost 400 employees for their tireless
energy, enthusiasm and hard work over the past year. The testimonials of our membership speak volumes to the professional
reputation Valley First has earned. It is a source of great pride for the board and a direct result of staff ’s efforts and daily
commitment to deliver on our brand promise.
To our members, thank you for your valued support and patronage. It has been my pleasure to serve as Chair of the Board this
past year.
Colleen Lister, CGA
Chair of the Board
Valley First Credit Union – 2006 Annual Report / Page 5
President & CEO’s Report
Harley Biddlecombe
The changing landscape and demands within the financial services
sector continually challenge us to deal with the increasingly
complex dynamics of our marketplace. Our commitment to meet
these challenges head-on and to be open and innovative in our
approach also means ensuring we remain focused on continually
improving our products, services, and value for our members, our
staff and our communities.
Through the remarkable achievements of our staff and
buoyed by British Columbia’s strong economy, 2006
was another successful year for Valley First with strong
performance in loan and deposit growth and a solid overall fiscal
performance. 2006 was also a year of renewal for the credit union
as we undertook a number of initiatives that challenged and
engaged our executive and staff to position Valley First for the
future with renewed purpose and energy.
A strong brand impacts everything from the ability to attract
new members, recruit and retain top talent and continually grow
a profitable organization. Acknowledging the importance of
differentiating ourselves in the marketplace, we took the time in
2006 to revisit our roots and renew the power of the Valley First
brand to ensure the credit union is positioned for continued growth
and success. Through a formalized branding process, we seized
the opportunity to examine the heart of what we stand for as an
organization and what makes us unique, to capitalize on what has
made us successful in the past. Out of this comprehensive review
sprang a deeper understanding of our value proposition and a
new visual representation for Valley First. The Valley First brand is
at its core ‘member-centric’, and I am confident this new look for
Valley First is truly representative of who we are. The fresh vibrant
colours, the new icon and the introduction of a new positioning
line, “Belong. Be Valued”, truly capture the Valley First experience.
While fresh new imagery has been established to more effectively
market the credit union for future generations, the true essence
of Valley First and the culture and experience that is uniquely our
own has not wavered in almost 60 years. We are extremely proud
Page 6 / Valley First Credit Union – 2006 Annual Report
of our heritage and deeply committed to building meaningful, lasting relationships with our members, employees, and the
communities we serve. We know that having a world-class reputation is about far more than a logo and a color scheme. It is
the possession of a powerful vision, a clear purpose and compelling message, and an unwavering commitment to engage and
value our members and staff in every interaction.
I encourage you to read the full content of this report which speaks to the many operational achievements and detailed
financial performance of 2006. As we proudly reflect on the success and highlights of the past year, our sights and energies
are firmly focused on the future to continue our quest to be the best financial institution for our members, our staff and our
communities. As we set out to begin what will be Valley First’s 60th year of operation, we do so with a renewed perspective and
conviction to build a stronger credit union.
In 2007 we will develop and execute business strategies to expand the organization by growing our membership and enhancing
existing relationships. We will look for opportunities to continually challenge the status quo by seeking to improve and expand
the products, services and experience offered. As the complexity of our business continues to grow, we will continue to develop
and monitor our governance and Enterprise Wide Risk Management practices to ensure we are effectively assessing the risks
inherent to our expanding business lines. Creating key linkages with education and advice and representing our members’
voices in our decision making will remain a priority. We will continue to build on our commitment to corporate citizenship and
partnering with our communities as a fundamental pillar of our business.
We take great pride in our people, without whom the Valley First brand would be meaningless. In today’s competitive
environment, the demands on our staff are greater than ever before and the success of the past year would not have been
possible without the energy and contribution of the Valley First team. I personally thank them for delivering on our brand
promise each and every day with confidence and enthusiasm.
To our board, your guidance and commitment to continually improve governance standards have challenged all of us to
operate at a higher level of awareness and accountability. Thank you for ensuring that our members needs, both present and
future, are always top of mind.
Above all, to our member-shareholders, your loyalty and willingness to share your business and your voice with us is invaluable.
We will always strive to earn, maintain and strengthen the trust you have placed in us.
Harley Biddlecombe
President & Chief Executive Officer
Valley First Credit Union – 2006 Annual Report / Page 7
From left to right: Ted Houston - Vice President, Commercial Banking, Paulette Rennie - Vice President, Retail Banking, Jackie A. Horton
- Vice President, Administration, Robert Mowat, CGA - Vice President & Chief Financial Officer, Harley Biddlecombe - President & CEO
Report of
Management
Page 8 / Valley First Credit Union – 2006 Annual Report
Financial Performance &
Key Operational Highlights
FINANCIAL RESULTS
Operating results for 2006 mirror those of 2005, continuing with a strong performance in net income and growth in assets. Net
income for the year was $5.2 million, an increase of 5.0% over 2005. Net on balance sheet assets grew 13% during the year to
$1.1 billion and the gross return on assets remained very strong at 70 basis points, well-positioned compared to other like-sized
credit unions in British Columbia.
The credit union’s capital position remains strong; in fact the credit union was able to increase the ratio of Retained Earnings to
total capital from 49% to 61%, demonstrating a strong equity position for the company.
FINANCIAL MARGIN
The financial margin for the credit union declined slightly from 2.78% in January to 2.71% in December. A number of factors
contributed to this. The year started with prime rate at 5.0%, moving to 6.0% in May where it remained unchanged for the
balance of the year. Other fixed-term rates remained relatively flat during the year but shorter-term fixed rates moved upward
where at year-end the 90-day rates were higher than five-year rates.
Since the credit union sometimes will rely on short-term borrowings to offset temporary surges in loan demand, this had a
dampening effect on financial margin.
The credit union maintains a portfolio of derivatives (Interest Rate Exchange Agreements), which are designed to protect the
credit union when prime rate drops. When prime rate increases as it did in 2006, the derivative portfolio locks in the spread
between asset yields and deposit costs which tends to hold financial margin stable. This is a fully expected outcome of
maintaining a derivative portfolio and is part of the interest rate risk management practices Valley First employs to prevent
wide swings in interest margin.
MOVEMENTS OF KEY INTEREST RATES - 2006
Prime
3 Month
5 Year
7%
Valley First Credit Union – 2006 Annual Report / Page 9
During the past year the credit union offered
a number of deposit specials to provide
better returns to depositors, as general
market rates were lower than in previous
years. Competition for deposits in 2006 was
as fierce as we have seen in the past and the
credit union met this competition.
DEPOSITS
In spite of the strong competition for
deposits, registered deposits grew by $7.9
million (5.4%), non-registered term deposits
grew by $27.3 million (6.4%) and demand
accounts showed a growth of $55.0 million
(17.0 %).
Total Deposits and Investments Under Administration
1,500,000,000
1,200,000,000
900,000,000
600,000,000
300,000,000
0
The best growth in the deposit portfolio
was shown by the e-First account, which
offers one of the best values for return and
flexibility in the market. The annual growth
was $32.0 million (55.0%), demonstrating
the credit union can be responsive to
members’ needs by being progressive in the
marketplace.
LENDING ACTIVITIES
It is certainly no secret to anyone living in our
region that the housing market continues
to be very strong providing both retail and
commercial lending opportunities for the
credit union. Total retail loans grew by $71.0
million (13.0%) and the commercial portfolio
grew by $42.0 million (16.0%). These are
impressive results in a very tight lending
market where rates are being reduced and
discounted on a continual basis.
Total Deposits
1,000,000,000
The credit union also administers off
balance sheet assets which are represented
by sold, securitized and syndicated loans.
At year-end these totalled $91.0 million, a
slight decrease from 2005. These assets are
administered off balance sheet for a fee and
are a tool in loan portfolio diversification
and liquidity management.
Page 10 / Valley First Credit Union – 2006 Annual Report
Total
Deposits
800,000,000
600,000,000
400,000,000
200,000,000
0
Delinquency on the entire portfolio of
loans is less than 0.25% of the portfolio
outstanding,
demonstrating
strong
underwriting of risk while meeting
the market expectations. Even though
delinquency is very low, the credit union
continues to provide loan reserves to ensure
there will be minimal impact in the event
of a loan loss. During 2006, total allocation
to loans loss reserves was $639,000. Total
loan loss reserves now stand at $2.9 million
which is far in excess of total delinquency.
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Total Loans
1,000,000,000
Total
Loans
800,000,000
600,000,000
400,000,000
200,000,000
0
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Finance & Information Technology
OPERATING EFFICIENCY
One of the key initiatives the credit
union undertook in 2006 was to examine
operating efficiencies for the organization.
While this usually means an examination of
cost control, it also looks to maximizing nonfinancial income, yet delivering superior
member service. The operating efficiency
ratio of the credit union dropped in 2006
indicating a better utilization of resources
and all key administration expenses were
under budget for the year.
CHANGES IN ACCOUNTING STANDARDS
Over the past three years Canadian
accounting standards have undergone
major changes with respect to financial
reporting. During 2006, hundreds of
hours were dedicated to the proper
implementation of these standards for
the upcoming fiscal year. This has been
an enormous undertaking but the credit
union is properly positioned for these new
standards. (Effective January 1, 2007.)
GOVERNANCE AND ENTERPRISE
WIDE RISK MANAGEMENT
Valley First is committed to maintaining
sound corporate governance and an
integrated approach to Enterprise Wide
Risk Management (EWRM) in order to retain
the trust of our members and clients. As
the Chair’s report highlights, the credit
union’s corporate governance practices
continue to be reviewed annually to ensure
we are meeting industry standards and
managing the credit union’s enterprise risk
appropriately.
Total Assets Under Administration
1,200,000,000
Total
Assets
1,000,000,000
800,000,000
600,000,000
400,000,000
200,000,000
0
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Operating Income
8,000,000
7,000,000
Operating
Income
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
0
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
EWRM at Valley First is continually evolving to meet the new standards for Enterprise Wide Risk Management now adopted by
the Credit Union system as part of the new Standards of Sound Business and Financial Practices. The standards provide credit
unions with criteria against which to measure both their governance and management of critical activities. The process involves
not only the Board of Directors but all levels of management to ensure that business strategies and plans are developed and
monitored effectively to identify potential risks and manage them appropriately.
Building on an independent assessment of our compliance against the new standards which was completed in 2005, the credit
union continued to address EWRM in all of its business activities with priority being given to areas where the opportunity
existed to improve practices, monitoring or transparency. Financial, market, operational, credit, liquidity and interest rate risk
are just some of the key areas reviewed. The assessment process in itself is arduous, involving identifying and measuring the
risks, assessing the impact of those risks and then applying a mitigation strategy if appropriate. Once completed the credit
union must then adopt an ongoing monitoring and reporting process for each action and area of risk. While there is still much
work for management to undertake in order to complete this cycle to the point where it becomes a regular part of our EWRM
program, we are progressing in the right direction and are committed to working toward full and complete compliance.
Valley First Credit Union – 2006 Annual Report / Page 11
INFORMATION TECHNOLOGY
Over the years Information Technology has become a vital component in the operations of the credit union. In a knowledgebased sector such as ours, timely and accurate information is indispensable in providing our services and giving expert advice
to our members. By employing the appropriate technology to the task we can assist our staff in delivering the efficient and
prompt service that we have built our reputation on.
To that end, we introduced and upgraded a number of internal systems aimed at improving efficiencies and reducing operating
costs in 2006. We implemented new application systems to support our Treasury activities and our Mortgage Broker Centre.
We upgraded our cheque production software and installed new versions of our Microsoft Office and email systems. For
our insurance subsidiary we implemented a new version of the ICBC Autoplan system and a significant upgrade to our core
insurance processing system. In an ongoing effort to streamline operations we worked with our Commercial Banking Division
where we automated the production of a number of essential reports, thereby achieving a significant time saving.
We completed a multi-year project of upgrading all our branches to fibre-optic data communication lines by transferring our
Kamloops branch to our now completely fibre-based Wide Area Network. This ensures that the throughput of our infrastructure
supports the system speed required to best serve our members in the branches. One of our most important objectives is to
ensure fortified security and continuous availability of our data and systems. In 2006 we performed a number of security
enhancements to our systems and replaced a number of vital pieces of computer hardware at our back-up site. The focus on
security will not abate and a number of security related initiatives will take place during 2007.
It will not have gone unnoticed to our members that we launched a brand new website in 2006. The first phase of this
development culminated in February with the launch of a completely re-architected site. We developed the site based on
Valley First’s corporate strategy and on research-based best practices in e-commerce and website design. Working closely with
our Marketing department, we launched the second planned increment of the site in October, in which we fully incorporated
our exciting new brand.
Based on a thoroughly researched and detailed business case the executive and board decided early in 2006 to replace our
current core transaction processing system. We have contracted with Summit Information Systems, whose iSpectrum banking
system uses the most advanced internet-based technologies. iSpectrum is, in our opinion, the best banking system available
to credit unions in Canada today. The new banking system will serve us well in further fostering the relationships with our
members and will give us the resources we need to deliver increasingly personalized service in the future. We will supply our
members with regular updates about the progress of the implementation. With our focus on implementing iSpectrum, 2007
will be a very busy year for the Information Technology Division, culminating in the successful launch of our new banking
system during the course of 2008.
Retail Banking
A booming real estate market, employment at an all-time high, and regional tourism that increased over 20%, all created an
exciting year for our organization. We experienced exceptional levels of activity in our retail mortgage lending operations.
Celebrating our second year of operation in our centralized Mortgage Broker Centre our business increased year-over-year by
86%.
Our branches continued to look at service to our members through Service CheckTM as our primary mandate which resulted in a
total of 19,203 members being ‘Service Checked’ to ensure they were getting the most out of our credit union. These interviews
resulted in 20,161 sales of new products or services and 9,477 opportunities at more business with those members at a later
date.
We also witnessed an increasing number of our members using more of our services in 2006 than ever before. Measuring our
‘core’ products (savings/chequing accounts, GICs, RRSPs and RRIFs, lines of credit, loans and mortgages) on a per member
average basis, we saw the average climb from 2.78 to 2.86 accounts per member. This constitutes another 4,326 new core
products (deposit, registered retirement or loan product) opened by our members in the year.
We restructured our reporting lines within the company and promoted three of our branch managers to the level of regional
branch managers to assist in the coaching and communication lines of our three newly defined service regions. The North
Okanagan/Thompson region (Kamloops, Vernon, Lumby and Armstrong) report through Audrey Spiller; the Central Okanagan
Page 12 / Valley First Credit Union – 2006 Annual Report
region (Downtown Kelowna, Orchard Plaza, Guisachan, Glenmore and Peachland) report through Stewart Greaves; and our
South Okanagan region (Main, Cherry Lane, Peachtree Square, Oliver, Keremeos and Princeton) through Dale Boisclair.
At the same time, we have not lost sight of our internal efficiencies and cost controls, producing continued positive results.
Since inception of our branch efficiency standards in November of 2004, our staffing requirement in the branches has flattened
completely (-6%) while generating 20% growth in loans and deposits respectively.
WEALTH MANAGEMENT
Our Wealth Management division experienced another solid year of growth. Robust equity markets and our holistic and
conservative approach to financial planning aided in our success. Assets under management grew 29.7% or $44.0 million to
$192.0 million. By comparison the mutual fund industry grew by approximately 20%. Our penetration of our retail banking
membership base aided our 9% increase in Wealth Management clients to 3,938. We also experienced success in consolidating
business from our existing clients shown by a 22% increase in the average portfolio size from $40,000 to $48,800.
Once again we are proud of the efforts of the Wealth Management team. We are especially excited that two of our financial
planners finished within the top 45 of financial planners nationally, for Credential Financial affiliated Credit Unions, for the
second year in a row.
Commercial Banking & Insurance
COMMERCIAL BANKING
The increase in the prime lending rate from 5% to 6% during the early part of 2006 had no impact on the residential or
commercial real estate development. Markets remained strong throughout the Thompson Okanagan with new construction
and resale homes again recording double-digit price increases.
Valley First Credit Union’s commercial portfolio grew by 16% in 2006 and currently comprises one-third of the credit union’s
total loan portfolio. Funded loans under administration totalled a record high $380.0 million at year-end. Non-interest revenue
generated from commercial loan activity exceeded $2.75 million in 2006, another record milestone for Valley First. Commercial
delinquency was again a very respectable 0.27% at year-end with loan losses for 2006 less than $50,000. Our Commercial
Banking Unit in Kamloops recorded the largest percentage gain at 20% and 2006 saw Kelowna surpass Penticton in terms of
total loans under administration.
The increase in residential house prices and volume of transactions levelled off during the fourth quarter of 2006 as the salesto-new-listings ratio declined. In-migration and high employment levels will continue through 2007 and will counterbalance
resistance to rising prices. Assuming no material interest rate adjustments, we expect a return to a more balanced supplydemand environment with modest price increases in 2007. The employment and capital expenditure spin off from the
expansion of UBC-Okanagan in Kelowna and Thompson Rivers University in Kamloops will contribute significantly to economic
development in both cities through 2007 and beyond. Valley First is well-positioned to participate in the growth of our region
and our Commercial Banking Division is looking to duplicate 2006 performance in 2007.
INSURANCE
Thanks to the hard work of our staff, the insurance subsidiary achieved their revenue growth target for 2006 recording an
increase of 10% over the corresponding period last year. 2006 also concluded the first full year of operations under the CUIS
Brokerage Services Ltd. partnership. In 2007 we plan to capitalize on our relationship with CUIS to expand our markets and
develop new programs to meet the specific needs of our clients.
In March 2006, the Armstrong insurance office was relocated into the credit union premises to provide easier access and
convenience for our clients. Later during the year renovations were completed at our downtown Vernon location in our ongoing
efforts to improve client services. In a continuing commitment to our communities, Valley First Insurance has again been able
to generously donate over $5,500 to fund the purchase of 43 child car safety seats and booster seats, which were distributed by
Interior Health to families in need throughout the Interior. This car seat donation was made possible through our involvement
in the Autoplan Broker Road Safety Program, which is committed to making roads safer by helping fund and promote locate
safety initiatives throughout British Columbia.
Valley First Credit Union – 2006 Annual Report / Page 13
Administration
Striving to provide timely support services to all of the credit union’s business units, the Administration Division works hard
to ensure that, collectively, the organization operates in a cohesive and effective manner, ensuring the focus for branch staff
is on delivering exceptional service to our membership. The division, which is made up of Human Resources, Training and
Development, Marketing, Communications, Property and Purchasing, and Corporate Administration, all operate to achieve
this goal.
Perhaps the biggest challenge and the biggest reward for the Marketing department in 2006 came through the completion of
our company brand review. When we first embarked on the journey in early 2006, we could not have imagined how thoughtprovoking and demanding the process would be. What we learned reaffirmed what we intuitively already knew: the Valley First
experience is unique and powerful in its value to our members, our staff, and to the markets we operate in. We just needed
to do a better job of telling those who do not yet deal with us what it means to bank with Valley First. And so it was born,
Valley First’s new positioning line, “Belong. Be Valued.” Succinct and to the point; our staff know it and live it every day and our
members have told us, in no uncertain terms, this is the best financial institution they have ever dealt with. In October, after
months of testing and focus group feedback from staff, members and non-members alike, we were excited to launch the new
Valley First brand, a fresh new visual representation of the Valley First experience. As we continue to integrate and infuse the
new look throughout our branches in the coming year, we hope members and potential members will appreciate the profound
meaning behind the brand.
In alignment with our ‘People First’ philosophy, the Human Resources department worked diligently to provide staff programs
and training aimed at attracting and retaining an engaged team as well as ensuring a healthy work environment. An employee
referral program was launched to aid in our recruitment efforts, and a new incentive compensation program was developed
to recognize our peoples’ achievements and better align with our mandate to provide superior member service and value at
every interaction.
Supporting our service commitments also means providing professional branches for the comfort of our members and staff.
During 2006, the Armstrong branch underwent substantial upgrades which provided the opportunity to relocate the insurance
office in Armstrong into adjacent office space within the branch. Not only did this move provide a valuable service and onestop convenience for our members, the increase in referrals between the credit union and Valley First Insurance has also been
positive in generating new business for our subsidiary. Vernon branch members also received welcomed improvements to
their branch to accommodate growth and the addition of a formalized Commercial Banking Unit within the branch.
With the decision to convert to a new, in-house banking platform in the future, planning began in 2006 for the construction of a
three-storey addition to the Head Office building in Penticton. Scheduled for completion in the fall of 2007, this expansion will
house a new state-of-the-art data centre, as well as a fully-equipped training facility to support ongoing education and training
for our people. Looking forward to 2007, we will continue to develop and enhance our people programs to attract, retain and
engage our employees. Developing and rewarding our people is a high priority as we continually strive to be the employer of
choice in South Central British Columbia.
Page 14 / Valley First Credit Union – 2006 Annual Report
In Your
Community
Valley First Credit Union – 2006 Annual Report / Page 15
In Your Community
We are proud to be among the 10 largest credit unions in British
Columbia and we haven’t lost sight of how we got here. It’s through
partnerships with members throughout the Similkameen, Okanagan,
and Thompson regions that have helped us grow. Our philosophy of
building meaningful and long-lasting relationships is also reflected in
our support and promotion of community events and causes that reflect
the common goals of our members. During the year, we provided tens
of thousands of dollars and gifts-in-kind, in sponsorships and donations
to not-for-profit social service, community groups, and associations.
Combined with this, hundreds of hours of volunteer time from our
nearly 400 employees.
Paddle Against Cancer - North Okanagan/Thompson
We’ve listed some of the organizations receiving our support during
2006 in the three key areas we conduct business: North Okanagan/
Thompson, Central Okanagan and South Okanagan.
Dragon Boat Race - Central Okanagan
NORTH OKANAGAN/THOMPSON
Sponsorships
Canadian Mental Health Association
Armstrong Boy & Girls Club (Golf Tournament)
City of Armstrong
Armstrong Museum & Arts
Falkland & Westwold First Responders
Armstrong Shamrocks Junior B Lacrosse
Kamloops Food Bank
BC Children’s Hospital - Brent Gilchrist Tournament
Kindale Developmental Association
Canadian Cancer Society Relay for Life
Lumby Food Bank
Caravan Farm Theatre
North Okanagan Handicapped Association
Downtown Vernon Association - Sunshine Festival
North Okanagan Neurological Association
Falkland Stampede
North Okanagan Youth & Family Society
Interior Provincial Exhibition & Stampede
Royal Inland Hospital
Kamloops Boogie the Bridge
Salvation Army
Kamloops Brain Injury Association - Gur Singh Golf
Tournament
St. James School
Lumby Days Sponsor
North Okanagan Rodeo Club
Rivershore Golf Links - Kamloops Men’s Night
Vernon Jubilee Hospital
Vernon Youth Safe House
White Valley Community Centre
Zone II Boys Summer Games
The Cowboys Choice - Vernon OK Stock Show
Vernon Curling Club - Ladies Silver Star Bonspiel
Kelowna Community Food Bank Fundraiser - Central Okanagan
Vernon Jaycees Paddle Against Cancer
CENTRAL OKANAGAN
Sponsorships
Vernon Jubilee Hospital - Mother’s Day Walk
Canadian Cancer Society Relay for Life
Vernon Mustangs Hockey Team
CKOV/Power 104 Golf Tournament
Vernon Performing Arts Centre
Cops for Kids Auction
Vernon Run for the Cure
Dragon Boat Race
Vernon Winter Carnival
Kelowna Cubs Baseball
Kelowna Falcons
Donations
Kelowna Family Centre - Iron Chef
233 Red Lion Air Cadets
Kelowna Community Food Bank/
Best Western Promotion
Armstrong Food Bank
UBC-Okanagan Athletics Scholarship Breakfast - Central Okanagan
Page 16 / Valley First Credit Union – 2006 Annual Report
Armstrong Spallumcheen Fire Department
Kelowna Show & Shine
Nordic Cross Country Ski Club
Pentastic Jazz Festival
Okanagan Mainline Football
- Hole-in-One Sponsor
- Run for the Kids
Penticton Elvis Festival
Rutland Youth Soccer
Penticton Kiwanis Music Festival
The Kelowna Canada Day Concerts Society
Penticton Lakeside Resort
Canada Day Fireworks
Penticton Kinsmen - Ryan Joyce Magic Show
The Peachland Lions - Charity Golf
Penticton Minor Baseball - Team Sponsor
The United Way - Success By 6
UBC- Okanagan
Penticton Okanagan Rotary
Car Show
Westside Warriors
Penticton PeachFest Parade
YMCA - Young Women’s Conference
Princeton Lions Club
Elvis Festival - South Okanagan
Princeton Posse
Rotary Club of Penticton
Pioneer’s Reception
Donations
Canadian Cultural Society of the Deaf
Rotary Club of Princeton
Central Okanagan Bursary & Scholarship Society
Rotary Radio Days
Kelowna Community Food Bank
Valley First Vees
Kelowna Gospel Mission
Kelowna Veendam Sister City Association
Donations
Kelowna Women’s Shelter
Art Gallery of the South Okanagan
Ogopogo Arts Festival
BC SPCA
Peachland Bike Rodeo
City of Penticton - Penticton Day Camp
Peachland Food Bank
Okanagan International Childrens Festival - South Okanagan
Desert Sun Counselling & Resources
Reach Out Youth Counselling & Services Society
Healthy Harvest Box
Keremeos Lions Club Food Hamper
SOUTH OKANAGAN
Sponsorships
Knights of Columbus Food Hamper
Lower Similkameen Community
Services Society
Alzheimer Society - Ralph Robinson Golf
Apex Ski Club - Mars Super G
Penticton and Area Women’s Centre
Associated Canadian Travellers - Magic Show
Penticton Fire Department
Big Brothers Big Sisters - Golf for Kids
Penticton Secondary School
Business Gives Back - Penticton
Peach Festival Parade - South Okanagan
Canadian Cancer Society - Relay for Life
Penticton Seniors’ Recreation &
Wellness Society
Community Foundation for the Penticton Auto Dealers
Princeton Crisis Assistance Society
Fraternal Order of Eagles Convention
Royal Canadian Mounted Police
Hedley Heritage Museum - Stamp Mill Days
Salvation Army
Keremeos Elks Rodeo
Senior Peer Counselling Society
Miss Penticton Royalty Committee
South Okanagan Similkameen
Medical Foundation
Okanagan International Children’s Festival
Okanagan Similkameen Neurological Society
-Evergreen Ball
-Share a Smile Telethon
-Try a Sport
OSCA - Meadowlark Festival
The United Way
Variety Club Telethon
Vermillion Trail Society
Women in Need Society
Peach City Beach Cruise
Princeton Lions Club Auction - South Okanagan
Valley First Credit Union – 2006 Annual Report / Page 17
Corporate Profile
Board of Directors from left to right: Ramesh Rikhi - Director, Larry Stevens - Director, Peter Foodikoff - Director, Colleen Lister, CGA - Chair, Stewart Ladyman - Director,
Terry Flannigan, PH.D - Vice Chair, Wayne Becker - Director, Lanny Martiniuk - Director, Kevin Campbell - Director
BOARD OF DIRECTORS
SENIOR EXECUTIVES
Colleen Lister, CGA
Chair
Harley Biddlecombe
President & Chief Executive Officer
Terry Flannigan, PH.D
Vice Chair
Tom Bijvoet
Vice President, Information Technology
Wayne Becker, CA
Director
Jackie Horton
Vice President, Administration
Kevin Campbell
Director
Ted Houston
Vice President, Commercial Banking
Peter Foodikoff
Director
Robert Mowat
Vice President & Chief Financial Officer
Stewart Ladyman
Director
Paulette Rennie
Vice President, Retail Banking
2575 Patterson Avenue
Regional Manager North Okanagan/Thompson:
Audrey Spiller
Lanny Martiniuk
Director
Susan Esson
Assistant Vice President, Finance & Accounting
KAMLOOPS
Ramesh Rikhi
Director
Roberta Fidalgo
Assistant Vice President, Human Resources
Larry Stevens
Director
Eric Kutschera
Assistant Vice President, Retail Credit
Peter Kvietinskas
Assistant Vice President, Commercial Credit
Page 18 / Valley First Credit Union – 2006 Annual Report
Kelly McGiffin
Assistant Vice President, Sales & Service
James Olson
Assistant Vice President, Marketing & Administration
Ron Smith
Assistant Vice President, Commercial Banking
Kevin Tom
Assistant Vice President, Wealth Management
CREDIT UNION BRANCHES
ARMSTRONG
180 Seymour Street
Branch Manager: Heikki Hollanti
KELOWNA
Downtown Kelowna
507 Bernard Avenue
Regional Manager Central Okanagan: Stewart Greaves
Glenmore
PRINCETON
Glenmore
401 Glenmore Road
Branch Manager: Debbie Bagnall
114 Tapton Avenue
Branch Manager: Kevin Kelbert
401 Glenmore Road
Financial Planner: Doug Watson
Guisachan Village
VERNON
Guisachan Village
101 – 2395 Gordon Drive
Branch Manager: Marion Henselwood
3322 31st Avenue
Manager, Commercial Banking: Bill Reynolds
103 – 2395 Gordon Drive
Financial Planner: Jay Christensen
Mortgage Broker Centre
401 Glenmore Road
Manager Mortgage Development: Loren Hawkins
INSURANCE OFFICES
Orchard Plaza
2575 Patterson Avenue
Office Supervisor: Gail Howard
1860 Cooper Road
Branch Manager: Viki May
ARMSTRONG
KELOWNA
Orchard Plaza
1860 Cooper Road
Financial Planner: Jay Christensen
KEREMEOS
704 7th Avenue
Financial Planner: Bruce LeFranc
Guisachan Village
103 – 2395 Gordon Drive
Office Supervisor: Carol Handsor
LUMBY
704 7th Avenue
Branch Manager: Paulo Araujo
LUMBY
LUMBY
OLIVER
2109 Shuswap Avenue
Branch Manager: Marlene Stark
1965 Shuswap Avenue
Office Supervisor: Delma Wiedeman
Oliver Place Mall
Financial Planner: Luke Ellis
OLIVER
KEREMEOS
1965 Shuswap Avenue
Financial Planner: Sandra Starke
PEACHLAND
PEACHLAND
Oliver Place Mall
Branch Manager: Betty Neufield
26 – 5500 Clements Crescent
Office Supervisor: Linda Kenzle
26 – 5500 Clements Crescent
Financial Planner: Jeff Olensky
PEACHLAND
PENTICTON
PENTICTON
Administration Office
184 Main Street
Manager, Insurance Operations: Shelly Maurer
Cherry Lane
135 – 2111 Main Street
Financial Planner: Bruce LeFranc
Cherry Lane
135 – 2111 Main Street
Branch Manager: Jerry McKenna
Cherry Lane
Main
135B – 2111 Main Street
Office Supervisor: Carol Chow
184 Main Street
Financial Planner: Hugh Desjardins
Main
24 – 5500 Clements Crescent
Branch Manager: Chantal Armour
PENTICTON
Peachtree Square
Peachtree Square
184 Main Street
Regional Manager South Okanagan: Dale Boisclair
2897 Skaha Lake Road
Office Supervisor: Sonia Fenton
2897 Skaha Lake Road
Financial Planner: Jeff Olensky
Peachtree Square
PRINCETON
2897 Skaha Lake Road
Branch Manager: Mark Grimm
114 Tapton Avenue
Office Supervisor: Linda Thompson
PRINCETON
VERNON
114 Tapton Avenue
Branch Manager: Kevin Kelbert
VERNON
3322 31st Avenue
Branch Manager: Leslie Rakow
COMMERCIAL BANKING CENTRES
KAMLOOPS
180 Seymour Street
Manager, Commercial Banking: Jim Lamond
KELOWNA
Downtown Vernon
3009 34th Street
Office Supervisor: Brandie Hunter
114 Tapton Avenue
Financial Planner: Hugh Desjardins
VERNON
3009 34th Street
Financial Planner: Doug Watson
Village Green Mall
90 – 4900 27th Street
Office Supervisor: Virginia Lavery
WEALTH MANAGEMENT OFFICES
ARMSTRONG
2575 Patterson Avenue
Financial Planner: Sandra Starke
Downtown Kelowna
507 Bernard Avenue
Manager, Commercial Banking: David Trask
KAMLOOPS
PENTICTON
KELOWNA
2nd Floor
184 Main Street
Manager, Commercial Banking: Blain Clow
PRINCETON
180 Seymour Street
Financial Planner: Daljit Sadhra
Downtown Kelowna
507 Bernard Avenue
Financial Planner: Jay Christensen
Valley First Credit Union – 2006 Annual Report / Page 19
Head Office | 3rd Floor, 184 Main Street, Penticton, BC V2A 8G7 | Tel: 250-490-2720 | Fax: 250-490-2721
www.valleyfirst.com