TABLE OF CONTENTS - Atlantic Credit Unions

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CREDIT UNION CENTRAL OF PEI y ANNUAL REPORT 2008
TABLE OF CONTENTS
Mission Statement & Profile…………………………………..... 2
Our Owners……………………………………………………….
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PEI System Highlights……………………………………………. 4
Credit Union Central Board of Directors………………………. 7
Report of the President……………………………………….....
8
Report of the Chief Executive Officer…………………………..
10
Sponsorship Highlights………………………………………….. 12
Credit Union Central Staff……………………………………….
13
Report of the Auditor…………………………………………....
14
Financial Statements……………………………………………..
15
Five Year Financial Summary……………………………………. 36
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CREDIT UNION CENTRAL OF PEI y ANNUAL REPORT 2008
MISSION STATEMENT
The Credit Union Central of Prince Edward Island is a financial cooperative dedicated to the growth, development and financial
stability of Prince Edward Island Credit Unions. We are dedicated
to the delivery of quality financial and related services to all
Islanders through the provincial network of Credit Unions.
Approved by the Board of Directors
May 5, 1993
PROFILE
Credit Union Central of Prince Edward Island is the only organization in
the province that provides a full range of operational and financial services
to credit unions. Our strength comes from our membership; 10 credit
unions in Prince Edward Island own and democratically control Central;
and more than 63,000 Islanders are served by credit union that are
members of Central.
In partnership with its members, Central develops and delivers innovative
products and services to ensure credit union strength, stability and
growth. Credit Union Central is comprised of a variety of areas, which are
key to its member credit unions’ operations. These areas include the
Inspection Department, Marketing and Business Development, Human
Resource Development, Risk Management, and Central Services, which
include operational support.
Membership in Central has many advantages, including access to the
innovative products, services and technologies that financial institutions
require to retain and expand market share in a highly competitive
marketplace. Member credit unions also benefit from Central’s affiliation
with national and international organizations, including the Canadian
Payments Association and the INTERAC ® network
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CREDIT UNION CENTRAL OF PEI y ANNUAL REPORT 2008
OUR OWNERS
Central Credit Union
512 Main Street
O’Leary, PE C0B 1V0
Montague Credit Union
524 Main Street
Montague, PE C0A 1R0
Assets:
$39,868,103
Manager: Roger Young
President: Linda Dunn
Assets:
$32,731,226
Manager: Bryan Haley
President: Gerald Martell
Consolidated Credit Union
Summerside Office
305 Water Street
Summerside, PE C1N 1C1
Borden-Carleton Branch
236 Main Street
Borden-Carleton, PE
Tyne Valley Branch
873 Canada Road
Tyne Valley, PE
Souris Credit Union
129 Main Street
Souris, PE C0A 2B0
Assets: $59,097,802
General Manager: Alfred Arsenault
President: Carol Gallant
Assets:
$33,584,667
Manager: Paul MacNeill
President: Charles Gillis
Malpeque Bay Credit Union
1 Commercial Street
Kensington, PE C0B 1M0
Stella Maris Credit Union
7201 Main Street
North Rustico, PE C0A 1X0
Assets:
$77,204,477
Manager: Marc LeClair
President: Vernon Campbell
Assets:
$46,535,048
Manager: Louis Gallant
President: Leo McCormick
Metro Credit Union
Charlottetown Office
281 University Avenue
Charlottetown, PE C1A 7L3
Assets: $160,278,488
General Manager: David Burt
President: Bernard Keefe
Mount Stewart Branch
301 Main Street
Mount Stewart, PE
Assets:
$25,229,436
Manager: David Pearcey
President: Claude Matheson
Assets:
$128,201,657
Manager: Sarah Millar
President: Larry MacKinnon
Evangeline Credit Union
Wellington Office
37 Mill Road
Wellington, PE C0B 2E0
Morell Credit Union
Morell Office
29 Park Street
Morell PE, C0A 1S0
Stratford Office
10 Kinlock Road
Stratford, PE C1B 1R1
Tignish Credit Union
Tignish Office
284 Business Street
Tignish, PE C0B 2B0
Assets:
$96,727,651
Manager: Louis Shea
President: Brenda McAlduff
Alberton Branch
566 Main Street
Alberton, PE C0B 1B0
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CREDIT UNION CENTRAL OF PEI y ANNUAL REPORT 2008
PEI CONSOLIDATED STATEMENT
BALANCE SHEET AS AT SEPTEMBER 30, 2008
WITH COMPARATIVE FIGURES FOR THE YEAR ENDED SEPTEMBER 30, 2007
2008
2007
$8,998,714
112,568,224
504,320,512
3,354,139
365,873
2,312,244
$631,919,706
$11,092,125
85,815,946
488,555,809
3,934,844
559,920
1,749,290
$591,707,934
FIXED ASSETS
$10,172,342
$10,013,742
INVESTMENTS
$57,366,506
$54,220,095
$699,458,554
$655,941,771
$640,343,745
4,281,262
8,198,136
3,064,834
$655,887,977
$598,661,875
7,331,740
6,347,639
4,663,218
$617,004,472
$1,116,957
42,453,620
$43,570,577
$1,094,431
37,842,868
$38,937,299
$699,458,554
$655,941,771
ASSETS
CURRENT ASSETS
Cash & Equivalents
Current Account
Loans
Accrued Loan Interest
Real Estate Held for Resale
Prepaids & Others
TOTAL ASSETS
LIABILITIES
Members Deposits
Loans Payable/CU Deposits
Accrued Interest
Other Liabilities
MEMBERS EQUITY
Special Reserves
Undistributed Income
TOTAL LIABILITIES & EQUITY
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CREDIT UNION CENTRAL OF PEI y ANNUAL REPORT 2008
PEI CONSOLIDATED STATEMENT
REVENUE & EXPENSE STATEMENT AS AT SEPTEMBER 30, 2008
WITH COMPARATIVE FIGURES FOR THE YEAR ENDED SEPTEMBER 30, 2007
2008
2007
$36,175,680
5,189,052
4,224,844
4,167,234
162,216
326,680
$50,245,706
$35,262,767
4,405,153
4,168,052
4,206,230
133,229
385,144
$48,560,575
Staff
Premises
Insurance
Office
Service Fees
General
Cost of Capital
$11,080,859
1,464,638
1,164,580
1,434,580
4,904,478
3,078,987
19,089,117
42,217,239
$10,632,506
1,206,343
1,088,248
1,491,038
4,541,930
2,962,490
18,518,056
$40,440,611
INCOME BEFORE PROVISIONS
$8,028,467
$8,119,964
$1,906,640
1,511,079
$3,417,719
$1,769,556
1,596,424
$3,365,980
NET INCOME
$4,610,748
$4,753,984
UNDISTRIBUTED INCOME
Undistributed Income beginning of year
Net Income
UNDISTRIBUTED INCOME END OF YEAR
$37,842,872
4,610,748
$33,088,884
4,753,984
$42,453,620
$37,842,868
REVENUE
Loan Interest
Investments
Chequing
Commissions
Fixed Assets
Other
EXPENSES
PROVISIONS FROM INCOME
Provision for Loan Losses (Risk)
Provision for Income Tax
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CREDIT UNION CENTRAL OF PEI y ANNUAL REPORT 2008
CREDIT UNION IMPACT
…at a glance.
dividends
$1.9
million
locations
15
membership
62,281
employees
245
annual
donations
$500,000
assets
scholarships
& bursaries
$350,000
$699
million
volunteer
hours
4,000
CREDIT UNION CENTRAL OF PEI y ANNUAL REPORT 2008
Standing (l-r): Kelli Ellis, Kevin MacNeill, Sonny Tremblay, Roger Young, Connie Doucette, John Handrahan,
Nova MacIsaac, Kellie Profitt
Sitting (l-r): Marvin Matheson, Urbain Arsenault, Bernard Keefe
BOARD OF DIRECTORS
Term Expires
President:
Vice President:
Secretary:
Directors :
Urbain Arsenault
Evangeline Credit Union
2009
Bernard Keefe
Metro Credit Union
2009
John Handrahan
Tignish Credit Union
2009
Sonny Tremblay
Central Credit Union
2009
Kelli Ellis
Consolidated Credit Union
2010
Kellie Profitt
Malpeque Bay Credit Union
2009
Marvin Matheson
Montague Credit Union
2011
Connie Doucette
Morell Credit Union
2011
Nova MacIsaac
Souris Credit Union
2010
Kevin MacNeill
Stella Maris Credit Union
2011
Roger Young
Credit Union Managers’ Association
2010
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CREDIT UNION CENTRAL OF PEI y ANNUAL REPORT 2008
PRESIDENT’S REPORT
It is with pleasure that I report, on behalf of the Board of Directors, on a
dynamic and exciting year – a year with a truly regional perspective. This
is the beginning of “History in the Making” - not only for the credit union
system of PEI but also for New Brunswick, Nova Scotia, and
Newfoundland & Labrador credit unions. The Atlantic Central initiative
has demanded enormous work and commitment from CEO’s and Board
Executives, but that investment has resulted in a proposed business plan
and agreement that will lay the foundation for a bright and prosperous
future for our credit unions. Now it is up to credit unions across the region
to determine the course.
Urbain Arsenault
President
From a provincial perspective, we are delighted to see growth and
operational success of Island Credit Unions in spite of world-wide financial
upheaval and economic challenges in our local industries. Co-operation
and maximum effort to keep pace with change were the essential
ingredients for your Central to provide relevant and timely services, advice
and development opportunities to credit unions.
In addition to the Atlantic Central, your Central has spearheaded two
other major system initiatives in 2008: PEI Decision Making Model and
Mandatory Director Training. The reports and recommendations of the
working committees will be presented to credit unions for their
consideration at this year’s AGM. Board development included CUSource
Training in the areas of Financial Red Flags, Risk Management, CEO
Recruitment/Evaluation, and Succession Planning for CEO and Board; an
updated CEO evaluation and compensation structure; policy additions
and revisions; and development of a code of conduct.
We are very pleased to again report very strong financial results for the
year ended December 31, 2008. We continue to exceed equity objectives
and were in a position to declare a 4% dividend while maintaining the
stability of your Central and keeping dues and assessments at favourable
levels. The board takes its stewardship of Central and System funds very
seriously and carefully considers annual budget approval and regularly
measures financial performance.
Members of the Central Board participated in annual meetings for CUCNS
and CUCNB, served as delegates for the Co-operators and in negotiations
for the Atlantic Central. Credit Union interests were represented at Credit
Union Central of Canada, League Data, Concentra, League Savings &
CREDIT UNION CENTRAL OF PEI y ANNUAL REPORT 2008
Mortgage, and the Credit Union Deposit Insurance Corporation. We were
again proud to make a difference in our community by sponsoring the
Canadian Cancer Society Relay for Life, Children’s Wish Foundation Golf
for Wishes and the Atlantic Co-operative Youth Leadership Program.
I wish to extend special thanks to departing Vice President Bernard Keefe,
who has been an active and valuable member of this board for nine years.
Bernard is a special person who has served you well. Also, we extend our
gratitude to Kellie Profitt, who leaves us after a successful three year term.
In conclusion, it is time for me to step down from the Board of Directors.
I’ve learned so much in my nine years as a board member and especially
five years as chair.
I wish to thank fellow board members for their support, hard work and
dedication to our Central. I say a special “Thank you” to those who served
on the Executive and committee chairs. Much appreciation to our CEO
Nick Wight, management and staff who, although faced with major
challenges, remained so passionate in their efforts to maintain the best
possible services to you, the membership.
Respectfully Submitted,
Urbain Arsenault
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CREDIT UNION CENTRAL OF PEI y ANNUAL REPORT 2008
CHIEF EXECUTIVE OFFICER REPORT
2008 can best be summarized as “successful and busy”. As a credit union
central we have to balance service delivery, change management and
financial stability.
Service delivery is generally measured by annual surveys to credit unions
asking questions about the level of service provided in each area. This
year’s results continued to show improvements. Of course when your
owners are just ten credit unions you usually do not have to wait for an
annual survey to tell you how you are doing from a service perspective.
Our central has not defined its service offering - we continue to service all
requests – an ambitious undertaking for a small staff component.
Thank you to our owners for their continued support.
Nick Wight
Chief Executive Officer
In 2008 the financial world experienced events which could best be
compared to an earthquake. That forced a number of changes and no
doubt the regulatory climate will make adjustments for those problems
which will have more impacts down the road. The ripples will impact
profitability and will slow down our economy. Our central and our credit
unions were fortunate to have been on the sidelines for most of the world
events. We are proud to report that our credit unions are able to manage
their way through these events and are open for business in the same way
they have for decades- providing loan, mortgage and deposit products to
help our members.
For those of you who have followed our financial results you know the
pride we have taken in our significant progress in growing retained
earnings and allowance for reserves. This year I have placed financial in
third place behind service and change due to the size of the other items.
Our results are solid and we continued to improve our retained earnings
as well as our reserves.
The Atlantic Central discussions, negotiations and subsequent business
plan were time consuming and fruitful. A team of Board Executives, CEO’s
and staff worked hard to get a deal done between the centrals and we
have a firm offer for our owners to consider. As one manager said to me
recently, “The time has come”. Indeed it has - we need to be able to
better position our credit unions for the next twenty years and a larger
scale is required to do that properly. Now it is in the hands of the
delegates to see if indeed that time has arrived.
CREDIT UNION CENTRAL OF PEI y ANNUAL REPORT 2008
On March 21st, our delegates will decide if they wish to transfer ownership
to a new Central. That is a major responsibility which everyone in the
province is taking very seriously. We held meetings and prepared ongoing
communications to keep you as informed as possible.
A Central is a democracy with ownership at the credit union level.
Although a “Yes” vote is recommended, I feel it important to state that
your right to make a choice will be respected.
I have prided myself on looking to the future instead of looking back at
the past.
However this year we will be looking at the retirement of some board
members and chair Urbain will recognize their contributions. I will see two
of the executive who have reached the maximum nine year term –
Bernard and Urbain. They have been on the executive since my arrival and
it will be very different with them in retirement. Thank you to all retiring
board members who have treated me in an excellent manner.
2009 will be very difficult for us regardless of the outcome of the annual
meeting votes. Credit unions are dealing with a new business model of
smaller margins, a weaker economy and increasing costs.
Central has to respond to those challenges with a renewed business
model to better assist our owner credit unions meet this new world order.
I look forward to a renewed vision and in working with credit unions to
shape this vision.
Co-operatively yours,
Nick Wight
CEO
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CREDIT UNION CENTRAL OF PEI y ANNUAL REPORT 2008
CREDIT UNION CENTRAL OF PEI y ANNUAL REPORT 2008
CREDIT UNION CENTRAL STAFF
Nick Wight
Chief Executive Officer
CORPORATE SERVICES
Jennifer Steele
Karen Gray
Craig MacDonald
Mary Acorn
Redevelopment Office & Project Manager
Accounting Technician
Operations Officer
Corporate Assistant (term)
MARKETING & BUSINESS DEVELOPMENT
Bob Gregory
Manager, Marketing & Business Development
Darlene Turner
Marketing Officer (maternity leave)
David Chapman
Marketing Officer (term)
HUMAN RESOURCES
Jeanette Wakelin
Karen Harding
Melanie Birkbeck
Manager, Human Resources
Human Resources Assistant
Project and Administration Support (term)
INSPECTION DEPARTMENT
Russell Boyle
Inspector of Credit Unions
COMMERCIAL LENDING
Mike Cameron
Manager, Commercial Lending
Standing (l-r): Karen Gray, Craig MacDonald, Russell Boyle, Jennifer Steele, Mary Acorn, Melanie Birkbeck
Sitting: Jeanette Wakelin, Bob Gregory, Karen Harding, David Chapman, Nick Wight
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