Connected to Our Future Casera Credit Union  2010 Annual Report
Contents Staying Connected................................................................................................................................................... 1 Vision, Mission & Values.......................................................................................................................................... 3 Directors’ Report....................................................................................................................................................... 5 CEO’s Report.............................................................................................................................................................. 5 In Focus....................................................................................................................................................................... 7 Fundamental Focus.................................................................................................................................................. 9 Financial Foundation............................................................................................................................................... 9 Financial Statements Independent Auditor’s Report............................................................................................................................. 11 Balance Sheet.......................................................................................................................................................... 12 Statement of Income.............................................................................................................................................. 13 Statement of Retained Surplus............................................................................................................................ 14 Statement of Cash Flows....................................................................................................................................... 15 Summary of Significant Accounting Policies............................................................................................... 16-18 Notes to Financial Statements....................................................................................................................... 19-32
2010 Annual Report
Staying Connected Over the years, our members have come to rely on Casera Credit Union to not only help them achieve their financial goals but to support the neighbourhoods they live and work in. In a highly competitive financial services industry, maintaining the high standards set for us by our membership is both challenging and rewarding. To thrive in a rapidly changing business environment while focusing on retaining the highest level of member service requires the flexibility that comes with experience and the determined commitment to develop innovative methods of delivering financial services. We’re proud of our record of technological innovation and our reputation for industry leadership. By merging new technologies with time-honoured personal service, we’re staying connected with our members and responding to their ever-changing financial needs, while remaining true to the values that have made Casera a success.
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Casera Credit Union
Supporting L’Arche In May, nearly 300 walkers and 70 volunteers participated in another successful Casera Walk With L’Arche. This marked the third consecutive year that Casera has been the lead sponsor of the annual event, which raises money in support of L’Arche Winnipeg, a residential community of developmentally disabled Winnipeggers and their assistants. This year’s one- or five-kilometer walk through the tree-lined streets of Transcona raised just over $45,000. We’re excited about working closely with L’Arche Winnipeg to stage the event again in 2011.
Programs for Youth Supporting the youth of our communities has long been a focus for Casera. Every year since 1972 we’ve offered bursaries for deserving area high school students and in 1997 we helped develop Titan Credit Union, our awardwinning youth branch at Transcona Collegiate Institute. In 2009, we cooperated with the Firefighters Burn Fund in sponsoring a Grade 3 fire safety project in the River East Transcona School Division. This year, we expanded the program to include Grade 3 classes in the Louis Riel School Division.
2010 Annual Report
Vision, Mission & Values Vision To be our members’ first choice for financial services and a leading prosperity builder, enriching the lives of members and communities we serve.
Mission To fulfill the wide-ranging and ever-changing financial needs of our members by efficiently delivering exceptional service and innovative solutions.
Values Our People The Foundation of our Success The satisfaction of our members is the number one priority of every employee. We take pride in exceeding members’ expectations with innovative financial solutions tailored to their individual needs. We believe in fostering teamwork among our employees and encouraging them to creatively participate in the operation of our organization. We also believe in investing in the growth of our employees by providing training and career development opportunities.
Caring for Our Community Focused on our Neighborhoods As a respected and community minded organization, we support programs that enhance the lives of our members and the community. Building and Moving Forward Vision for the Future We are committed to responding to changes in the financial industry and delivering innovative products and services through listening to and anticipating member financial needs, embracing technology and maintaining solid working relationships with our business partners. Financial Strength Stability and Security While maintaining the co-operative philosophy, we are committed to prudent management of our financial resources.
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We’re Appreciated In 2010, the River East Transcona School Division recognized Casera’s continued commitment to youth by awarding its In Appreciation Award to our credit union. The award expresses gratitude for our ongoing support of education-based programs.
Community Celebration We’ve been strong supporters of Transcona’s Hi Neighbour Festival since its inception in 1965. As one of the community celebration’s major partners, we co-sponsored the Festival of Banners, a contest for student artists that saw winning designs made into banners that hung over Transcona’s streets.
2010 Annual Report
Directors’ Report
CEO’s Report
When Casera Credit Union was established in 1951, financial and operational decisions were made locally based on the specific and shared needs of our members. Over the years, the financial services industry has become progressively globalized and more technologically complex. Increasingly, financial decision-making has become impacted at the community level by worldwide events and influenced by the emergence of international accounting practices.
In a time of industry change and economic uncertainty, it is always prudent to focus on the fundamentals of business. In 2010, we continued to concentrate on what has proven to be our primary strengths — providing innovative financial solutions enhanced by leading edge technology and backed up by personalized service. As the broader national economy improved, our attention to these operational details ensured that Casera maintained its solid financial position.
As a board of directors, we embrace the challenges of today’s financial landscape. While long-range planning has been made difficult by rapid change, we are nonetheless committed to our vision of enriching our members’ lives and the communities we serve. To ensure that we remain abreast of any emerging trends or significant changes in the way we govern our credit union, Casera’s directors regularly attend information sessions and workshops designed to bring industry issues into focus. In this way, we can continue to make informed and community-focused decisions that are shaped by valuable global perspective. Dave Abel President, Board of Directors
The application of technology continues to drive the financial services industry and Casera remains well positioned to take advantage of trends in the marketplace. In 2010, we took steps to survey our members about how we can better meet their financial needs. The results are helping us set a course for the future. Our staff is poised and eager to take on the challenge of combining new technologies and delivery channels with the time-honoured foundation of our ongoing success — a day-to-day commitment to person-to-person service. Brent Thomas Chief Executive Officer
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Technology Rollout Beginning in September, Casera distributed new microchip-equipped debit cards to every one of our members. The rollout succeeded without difficulty and the chip cards have since enhanced security for members at ATMs and retail checkouts. As well, we launched an electronic option for statements that has proved to be popular. Identical to paper statements, these convenient and environmentally friendly e-statements are available online at CU@Home.
Environmental Partnership Our support of Save Our Seine (SOS) continued in 2010 with sponsorship of the environmental group’s Urban Green Team. The crew of young people spent the summer cleaning the Seine River in south Winnipeg, grooming paths and lending a helping hand at special events. In June, the St. Anne’s branch also facilitated a fun-filled, two-kilometer walk through Bois-des-Esprits, an oak forest that runs along the Seine River.
2010 Annual Report
In Focus Overall Strength Net income was $1,219,778, up 3.60% from 2009’s $1,177,423. Strong Position Our equity position was further strengthened by $1,270,007 to reach total equity of $13,379,345 or 5.50 % of assets compared to $12,109,338 or 5.43% in 2009. Our equity is currently above the regulatory requirement of 5%. Dividend Declared A total of $100,000 was paid out as a share dividend, bringing the total dollar amount paid to members, to date, over $3 million. Growing Assets Assets grew by $20,559,534 or 9.22% to reach $243,459,070 at December 31, 2010. Expense Control Gross operating expenses increased by 5.40% to $5,199,858 compared to $4,933,642 in 2009. Our efficiency ratio was 77.77% compared to 77.42% in 2009.
Growing Loans Member loans at December 31, 2010 were $219,268,000, an increase of 9.69% from $199,895,036 in 2009. There was no major change in our loan mix with residential mortgages representing 77.07% of our loans portfolio. Loans represented 90.06% of assets at December 31, 2010. A provision for impaired loans was set up for $95,082 compared to $132,738 in 2009. The allowance for doubtful loans was increased to $398,226 up from $354,663 in 2009. Loans written-off were $51,519 compared to $47,719 in 2009. Expanding Deposits Member deposits at December 31, 2010 were $222,147,579, an increase of 10.71% from $200,649,444 in 2009. There was no major change in our deposit mix with the majority of member deposits held in term deposits and registered plans.
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Community Giving Casera’s staff is proud of its participation throughout the year in several important community initiatives, including United Way of Winnipeg’s annual campaign. We also took time out to wrap gifts at Kildonan Place Shopping Centre during the holiday season. As well, we served a special holiday dinner to seniors and delivered hampers for the Christmas Cheer Board.
Honouring Our Members To honour our members, we organized an annual Member Appreciation Day in June. We staged a fun-filled day of hotdogs, prizes and activities, including the Kildare branch’s popular bike rodeo for kids. The St. Anne’s branch also joined other merchants at the Southglen Shopping Centre in celebrating the support that the neighbourhood brings to local businesses.
2010 Annual Report
Fundamental Focus
Financial Foundation
Against an economic backdrop — both national and international — that showed some improvement, Casera Credit Union’s financial position remained strong throughout 2010. While our growth was down slightly, profitability remained steady right through the year. This illustrates our continued focus on the fundamental principles of prudent financial management.
Sound governance is the foundation of successful financial service organizations and in today’s globalized marketplace boards of directors must adhere to increasingly rigorous standards. In 2010, Casera’s board diligently prepared for the implementation of International Financial Reporting Standards — a framework of principlesbased standards and interpretations adopted by the International Accounting Standards Board.
Our aim as a credit union is to be our members’ first choice for financial services. This goal remains a challenge in a crowded marketplace but new banking technologies continue to keep us competitive. For example, all members received new debit cards equipped with microchip technology. The innovation increases security and adds another layer of protection against the disclosure of personal information. As well, we instituted electronic statements, which cuts down on the use of paper and allows our members to conveniently access their statements online.
Our dedicated board, comprised of Dave Abel, Barbara Anderson, Martin Johnson, Vic Kuffner, Bev Lafrance, Grace Page, Robert Riddell, Jason Whittaker and Steve Zurawecki, met regularly in 2010 as a team and in four sub-committees — Audit, Executive, Nominating and Policy — to shape long-term goals, support management, oversee internal auditing and develop credit union policy. Three of our directors were newly elected in 2010 and their commitment to learning and active participation ensured that the vital work of the board was maintained.
While technology helps us stay competitive, our face-to-face service differentiates us in the marketplace. Throughout 2010, our staff worked hard to ensure that personal service remained a cornerstone of our success. Through their efforts, Casera proudly continued to build a reputation for both leading edge and traditional service.
With so many sweeping changes in our industry, developing long-range plans remains a challenge. As such, the board recognizes that strict governance must balance any unpredictability in the business environment. Moving forward, we are committed to prudent management and strategic decision-making at the board level.
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In Appreciation Judy Wegner, a long-time Casera employee, retired in 2010. Judy started working with us in 1986 as an ATM demonstrator, showing members how to use the newly installed automated teller. Judy stayed on at Casera to become a clearing clerk, switchboard operator and a much-admired member service representative. We truly appreciate Judy’s dedication to service and wish her well in the future.
Equipped for Safety Our employee-directed workplace, safety and health committee conducted a series of meetings and workshops during the year that included fire safety and first aid. One of the committee’s initiatives involved equipping each branch with automated external defibrillators, also known as AEDs. Staff members have been trained in the use of an AED to reestablish effective heart rhythms in persons stricken with abnormal heart activity.
2010 Annual Report
Independent Auditor’s Report To the Members of
CASERA CREDIT UNION LIMITED We have audited the accompanying financial statements of CASERA CREDIT UNION LIMITED, which comprise the balance sheet as at December 31, 2010 and the statements of income, retained surplus and cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information.
Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian generally accepted accounting principles, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion In our opinion, the financial statements present fairly, in all material respects, the financial position of CASERA CREDIT UNION LIMITED as at December 31, 2010 and the results of its operations and its cash flows for the year then ended in accordance with Canadian generally accepted accounting principles.
Chartered Accountants Winnipeg, Manitoba March 28, 2011 BDO Canada LLP, a Canadian limited liability partnership, is a member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms. BDO Canada s.r.l., une société canadienne à responsabilité limitée, est membre de BDO International Limited, société de droit anglais, et fait partie du réseau international de sociétés membres indépendantes BDO.
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Casera Credit Union Balance Sheet December 31
Assets Funds on deposit Investments (Note 2) Loans to members (Note 3) Property, plant and equipment (Note 4) Other assets (Note 5) Liabilities and Members’ Capital Members’ deposits (Note 6) Borrowings (Note 7) Accounts payable and deferred revenue (Note 8)
2010
2009
$ 506,362 $ 19,905,132 219,268,000 2,438,140 1,341,436
1,007,473 17,905,754 199,895,036 2,705,110 1,386,163
$
243,459,070
$
222,899,536
$
222,147,579 $ 7,081,064 851,082
200,649,444 9,475,366 665,388
230,079,725
210,790,198
2,594,104 10,785,241
2,455,790 9,653,548
Commitments (Note 12) Members’ Capital (Note 10) Members’ shares (Note 9) Retained surplus
13,379,345 $
243,459,070
$
12,109,338 222,899,536
Approved on behalf of the Board:
___________________________ Director
___________________________ Director
The accompanying summary of significant accounting policies and notes are an integral part of these financial statements.
2010 Annual Report
Casera Credit Union Statement of Income For the year ended December 31
Revenue Interest from members’ loans Lines of credit Personal Real Estate Investment income Liquidity deposits CUCM shares Cost of Funds Interest paid to members Interest on borrowings
2010
2009
$ 516,987 $ 470,573 1,663,511 1,522,870 7,603,802 7,288,506
189,776 66,703
193,051 45,312
10,040,779
9,520,312
5,603,035 114,523
5,591,453 93,654
5,717,558
5,685,107
Gross financial margin
4,323,221
3,835,205
Operating Expenses Personnel Administrative Occupancy Members’ security Organizational
2,143,448 1,778,547 841,648 244,265 191,950
2,092,060 1,713,079 767,173 188,560 172,770
Gross operating expenses
5,199,858
4,933,642
Less other income
2,362,578
2,537,256
2,837,280
Gross operating income Provision for impaired loans (Note 3)
1,485,941 95,082
1,438,819 132,738
Income before income taxes Provision for income taxes (Note 11)
1,390,859 171,081
1,306,081 128,658
Net income for the year
$
1,219,778 $
1,177,423
2,396,386
The accompanying summary of significant accounting policies and notes are an integral part of these financial statements.
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Casera Credit Union
Casera Credit Union Statement of Retained Surplus For the year ended December 31
Retained surplus, beginning of year Net income for the year
2010
$ 9,653,548 $ 1,219,778
10,873,326
Dividends on common shares – net of income tax recovery of $11,915 (2009 $11,496) (Note 16)
88,085
Retained surplus, end of year
$ 10,785,241 $
2009
8,560,425 1,177,423 9,737,848 84,300 9,653,548
The accompanying summary of significant accounting policies and notes are an integral part of these financial statements.
2010 Annual Report
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Casera Credit Union Statement of Cash Flows For the year ended December 31
2010
2009
Cash Flows from Operating Activities Net income for the year $ 1,219,778 $ 1,177,423 Adjustments for Amortization 371,000 325,732 Provision for impaired loans 95,082 132,738 Accrued interest receivable 47,573 20,056 Accrued interest payable (85,652) 260,731 Current income taxes 110,884 (170,678) Future income taxes 19,000 36,000 Other items, net 100,536 51,921
1,878,201
1,833,923
Cash Flows from Financing Activities Increase in members’ deposits, net of withdrawals Issue of common and surplus shares, net of redemptions Dividends on shares (net of income tax recovery) Increase (repayment) of borrowings
21,583,787 138,314 (88,085) (2,394,302)
18,552,054 122,424 (84,300) 3,836,268
Cash Flows from Investing Activities Increase in loans to members, net of repayments Net increase in investments Net purchase of capital assets
$
19,239,714 $ 22,426,446
(19,515,359) (1,999,638) (104,029)
(21,619,026)
(21,238,572) (1,798,190) (894,700)
(23,931,462)
Net increase (decrease) in funds on deposit (501,111) 328,907 Funds on deposit, beginning of year 1,007,473 678,566 Funds on deposit, end of year
$ 506,362 $
1,007,473
Supplementary Information Interest received $ 10,088,352 $ Interest paid 5,803,210 Income taxes paid 1,684
9,540,369 5,424,376 269,781
The accompanying summary of significant accounting policies and notes are an integral part of these financial statements.
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Casera Credit Union
Summary of Significant Accounting Policies For the year ended December 31, 2010
These financial statements have been prepared in accordance with Canadian generally accepted accounting principles which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results may differ from those estimates. The significant accounting policies used in these financial statements are as follows:
Financial Instruments The Credit Union recognizes and measures financial assets and financial liabilities on the balance sheet when they become a party to the contractual provisions of a financial instrument. All transactions related to financial instruments are recorded on a settlement date basis. All financial instruments are measured at fair value on initial recognition. Measurement in subsequent periods depends on the classification of each financial instrument. Held-for-trading items are carried at fair value, with changes in their fair value recognized in the statement of income. Available-for-sale items are carried at fair value, with changes in their fair value recognized as other comprehensive income. Loans and receivables and other financial liabilities are carried at amortized cost, using the effective interest method. The fair value of a financial instrument is the amount of consideration that would be agreed upon in an arm’s-length transaction between knowledgeable, willing parties who are under no compulsion to act. Fair values are determined by reference to quoted bid or asking prices as appropriate, in the most advantageous active market for that instrument to which the Credit Union has immediate access. Fair values determined using valuation models require the use of assumptions concerning the amount and timing of estimated future cash flows and discounted rates. In determining those assumptions, external readily observable market inputs including interest rate yield curves, currency rates and price and rate volatilities are considered, as applicable. The Credit Union has classified liquidity deposits with Credit Union Central of Manitoba and Loans and Mortgages as “Loans and receivables” and Member Deposits are classified as “Other financial liabilities” and are accounted for using the amortized cost method. See Note 14 for details on classification of all the Credit Union’s financial instruments. Transaction costs for financial instruments are capitalized and then amortized over the term of the instrument using the effective interest rate method. Derivative financial instruments, including embedded derivatives which are required to be accounted for separately, are recorded on the balance sheet at fair value. Changes in the value of derivative instruments (solely embedded derivatives) are recognized directly in income for the period under “Interest from members’ loans”. Other comprehensive income includes, in particular, unrealized gains and losses on available-for-sale financial assets and the change in the effective portion of a cash flow hedge transaction. The Credit Union had no comprehensive income for the year.
2010 Annual Report
Summary of Significant Accounting Policies For the year ended December 31, 2010
Impairment of Financial Assets A financial asset is assessed at each reporting date to determine whether there is any objective evidence that it is impaired. A financial asset is considered to be impaired if objective evidence indicates that one or more events have had a negative effect on the estimated future cash flows of that asset. Individually significant financial assets are tested for impairment on an individual basis. The remaining financial assets are assessed collectively in groups that share similar risk characteristics. All impairment losses are recognized in the statement of income. Loans to Members The allowance for doubtful loans is maintained at a level considered adequate to absorb credit losses existing in the Credit Union’s portfolio. The allowance is increased by an annual provision for impaired loans which is charged against income. Loans are considered uncollectible when the Credit Union has exhausted all means of collection. These loans are written-off against the associated provision. The Credit Union maintains specific allowances for impaired loans that reduce the carrying value of loans identified as impaired to their estimated realizable amounts. •C asera Credit Union Limited includes in impaired loans, all loans where a payment is 90 days or greater in arrears plus any other loans where, in management’s view, there is no longer reasonable assurance of timely collection of the full amount of principal and interest in accordance with the terms of the loan agreement. • E stimated realizable amounts are determined by discounting the expected cash flows at the effective interest rate inherent in the loan. If cash flows cannot be reasonably estimated, the fair value of any underlying security, net of expected realization costs, or an estimate of market price for the loan is used. When the terms of loans that would otherwise be past due or impaired have been renegotiated, a review of the borrower’s credit history and the collateral securing the loan is conducted to minimize the risk of loss to the Credit Union. In addition to specific allowances against identified impaired loans, the Credit Union maintains a nonspecific allowance to cover impairment which is inherent in the loan portfolio and is estimated based upon historical loss experience and prevailing economic conditions.
Revenue Recognition Interest on loans is recorded using the effective interest method except for loans which are considered impaired. When a loan becomes impaired, recognition of interest income ceases when the carrying amount of the loan (including accrued interest) exceeds the estimated realizable amount of the underlying security. The amount of initial impairment and any subsequent changes are recorded through the provision for impaired loans as an adjustment to the specific allowance. Investment income is recorded using the effective interest method, except as it relates to adjustments in the rates received from Credit Union Central, these are recorded when payment is received.
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Summary of Significant Accounting Policies For the year ended December 31, 2010
Revenue Recognition (continued) Commissions and service charges are recognized as income when the related service is provided or entitlement to receive income is earned. Other income is recorded as income as it becomes receivable, or as the Credit Union becomes aware of the income to be recorded.
Property, Plant and Equipment Property, plant and equipment acquired during the fiscal year ended December 31, 2010, have been reflected in the accounts at actual cost. Amortization of $371,000 charged to the 2010 operations of the Credit Union has been calculated using the straight-line basis over the following terms: Buildings Furniture and equipment Computer equipment and software Security equipment Signage Property improvements
40 years 5 -10 years 3-10 years 5-40 years 10 years 15 years
Leasehold improvements are amortized using the straight-line method over the remaining life of the lease and the first renewal option.
Income Taxes The Credit Union follows the liability method of accounting for income taxes. Under this method, current income taxes are recognized for the estimated income taxes payable for the current year. Future income tax assets and liabilities are computed based on differences between the carrying amount of assets or liabilities on the balance sheet and their corresponding tax values using the enacted income tax rates at each balance sheet date. A future income tax asset is only recognized if it is more likely than not that the future income tax asset will be realized. Net future income tax assets or liabilities are reflected in other assets or accounts payable and accrued liabilities, as appropriate.
Translation of Foreign Currencies Cash resources and deposits denominated in foreign currencies are translated into Canadian dollars at the rates prevailing on the balance sheet date. Realized gains and losses are recorded at the rates prevailing at the time of the transaction. Unrealized gains and losses are recorded at the rates prevailing on the balance sheet date.
New Accounting Pronouncements Recent accounting pronouncements that have been issued but are not yet effective, and have a potential implication for the Credit Union, are as follows: International Financial Reporting Standards The CICA plans to converge Canadian GAAP with International Financial Reporting Standards (“IFRS�) over a transition period expected to end in 2011. The impact of the transition to IFRS on the Credit Union’s financial statements has yet to be determined.
2010 Annual Report
Notes to Financial Statements For the year ended December 31, 2010
1. Nature of Operations The Credit Union was formed pursuant to the Credit Unions and Caisses Populaires Act of the Province of Manitoba (the “Act�) and operates three branches in the city of Winnipeg.
2. Investments
2010
Credit Union Central of Manitoba Shares Contract and daily interest deposits Accrued interest receivable
2009
$
1,393,849 $ 18,500,000
1,394,211 16,500,000
19,893,849 11,283
17,894,211 11,543
$
19,905,132
17,905,754
$
As the shares held in Credit Union Central of Manitoba have been classified as available for sale, they are valued at cost as quoted market prices do not exist. The contract and daily interest deposits in Credit Union Central of Manitoba are deposits for liquidity purposes and are classified as loans and receivables and recorded at amortized cost.
3. Loans to Members Loans to members are presented net of allowances for impaired loans. The allowance totals $398,226 and consists of $183,954 for specific loans considered impaired and $214,272 as non-specific:
2010
2009
Consumer Term loans $ 27,313,944 $ 26,471,873 Real estate 169,085,269 150,900,707 Lines of credit 12,883,390 12,520,755 Commercial Term loans 3,564,184 3,658,261 Real estate 6,547,951 6,379,302
Accrued interest receivable
219,394,738 199,930,898 271,488 318,801
Allowance for impaired loans
219,666,226 200,249,699 398,226 354,663
$
219,268,000 $ 199,895,036
During the current year, the Credit Union held $5,322,902 in outstanding commercial loans relating to the real estate, rental, and leasing industry and $1,185,854 relating to the retail trade industry. The following schedule provides the loan allowance related to each loan category, together with the gross amount of loans, including accrued interest, in each major loan category.
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Notes to Financial Statements For the year ended December 31, 2010
3. Loans to Members (continued)
2010
Impaired loans to members Consumer Commercial Performing
$
Net loan balance
Gross Loan Balances
2009
Total Allowance
Gross Loan Balances
Total Allowance
76,776 $ 107,178 183,954 214,272
435,778 $ 93,712 529,490 199,720,209
103,386 52,072 155,458 199,205
219,666,226 398,226 200,249,699 $ 219,268,000 $
354,663 199,895,036
159,414 $ 132,178 291,592 219,374,634
The principal collateral and other credit enhancements held as security for loans include (i) insurance, mortgages over residential lots and properties, (ii) recourse to business assets such as real estate, equipment, inventory and accounts receivable, (iii) recourse to the commercial real estate properties being financed, and (iv) recourse to liquid assets, guarantees and securities. During the year ended December 31, 2010 the Credit Union did not acquire any assets in respect of problem loans. A loan is considered past due when a counterparty has not made a payment by the contractual date due. The following table presents the carrying value of loans that are past due but not classified as impaired because they are either (i) less than 90 days past due, or (ii) fully secured and collection efforts are reasonably expected to result in repayment. 2010
Greater than 1 - 30 days 31 - 90 days 90 days Consumer
$
3,875,129
$
534,099
$
—
$
Total 4,409,228
2009
Greater than 1 - 30 days 31 - 90 days 90 days Consumer $ 2,721,872 $ 655,068 $ — $ Commercial 64,053 — — $ 2,785,925 $ 655,068 $ — $
Total 3,376,940 64,053 3,440,993
The following schedule provides the activity through the allowance for impaired loans during the year:
2010
Balance, beginning of year Provision for impaired loans Members’ loans written-off Balance, end of year
$ $
354,663 $ 95,082 449,745 51,519 398,226 $
2009
269,644 132,738 402,382 47,719 354,663
During the year, the Credit Union recovered $2,424 of loans previously written-off (2009 -$16,460), which is included as part of other income on the statement of income.
2010 Annual Report
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Notes to Financial Statements For the year ended December 31, 2010
4. Property, Plant and Equipment
2010
2009
Accumulated Cost Amortization
Land Buildings Furniture and equipment Computer equipment and software Security equipment Signage Leasehold improvements
$
40,724 $ 1,507,156 1,027,849
1,502,939 307,239 296,886 935,581
5,618,374 3,180,234 5,514,345 2,809,235
Cost less accumulated amortization
$
— $ 1,051,561 742,563
Accumulated Cost Amortization 40,724 $ 1,501,581 1,013,520
— 987,085 655,134
650,358 1,421,943 522,327 161,757 304,110 150,125 123,782 296,886 93,919 450,213 935,581 400,645
2,438,140
$
2,705,110
5. Other Assets
2010
2009
Accounts receivable $ Prepaid advertising Prepaid expenses Deferred expenses (net of amortization) Income taxes recoverable
168,368 $ 9,527 361,475 802,066 —
222,707 6,658 349,564 704,718 102,516
$
1,341,436 $
1,386,163
Chequing accounts $ Savings accounts Term deposits Registered retirement savings plans Registered retirement income funds
24,516,948 $ 51,667,444 89,852,329 37,338,984 16,476,522
6. Members’ Deposits
2010
2009
21,094,254 45,875,650 81,015,069 34,950,524 15,332,943
219,852,227 198,268,440 Accrued interest payable 2,295,352 2,381,004 $
222,147,579 $ 200,649,444
7. Borrowings The Credit Union has approved lines of credit with Credit Union Central of Manitoba equal to 10% of its members’ deposits. For the current year, this amounts to $22.2 million. These accommodations are secured by an assignment of shares and deposits in Credit Union Central of Manitoba and a general assignment of loans receivable from members. The balance outstanding at December 31, 2010 was $7,081,064 (2009 - $9,475,366).
22
Casera Credit Union
Notes to Financial Statements For the year ended December 31, 2010
8. Accounts Payable and Deferred Revenue
2010
2009
Accrued expenses and trade accounts $ Certified cheques, money orders and travellers cheques outstanding Future income taxes payable Current income taxes payable Deferred revenue prepayment penalties
566,610 $ 24,306 156,000 20,283 83,883
446,364 15,680 137,000 — 66,344
$
851,082 $
665,388
9. Members’ Shares
2010
Common Shares
2009
Surplus Common Surplus Shares Shares Shares
Balance, beginning of year Shares issued Shares redeemed
$
1,559,965 $ 231,588 (74,052)
895,825 $ 7,953 (27,175)
1,410,753 $ 215,248 (66,036)
922,613 8,463 (35,251)
Balance, end of year
$
1,717,501
$
876,603
1,559,965
$
895,825
Members’ shares
$
2,594,104
$
2,455,790
$
Each member of the Credit Union has one vote, regardless of the number of shares that a member holds. Common Shares Authorized common share capital consists of an unlimited number of common shares, with an issue price per share to be not less than $5 and redeemable in the amount of consideration received for the share. No member may hold more than 10% of the total number of shares. The total share balance will not be reduced below the previous year end balance or below 2% of the Credit Union’s assets (whichever is the lesser). Surplus Shares Authorized surplus share capital consists of an unlimited number of surplus shares, with an issue price per share of $1 and redeemable at the option of the Credit Union at $1 per share. The total amount of surplus shares purchased or redeemed by the Credit Union in a fiscal year shall not reduce the Credit Union’s equity below 5% of assets.
10. Capital Requirement Regulations under the Act require that the Credit Union establish and maintain a level of capital that meets or exceeds the following: • total members’ capital as shown on the balance sheet shall not be less than 5% of the book value of all assets • retained surplus shall not be less than 3% of the book value of assets • capital calculated in accordance with the Act shall not be less than 8% of the riskweighted value of its assets.
2010 Annual Report
Notes to Financial Statements For the year ended December 31, 2010
The Credit Union considers its capital to comprise its common and surplus shares, provision for issue of surplus shares and retained surplus. There have been no changes in what the Credit Union considers to be its capital since the previous period. The Credit Union establishes the risk-weighted value of its assets in accordance with the Act which establishes the applicable percentage for each class of assets. The Credit Union’s riskweighted value of its assets as at December 31, 2010 was $98,070,844. As at December 31, 2010, the Credit Union met the capital requirements of the Act with a calculated members’ capital ratio of 5.50% (2009 - 5.43%), a retained surplus ratio of 4.43% (2009 - 4.33%) and a risk-weighted asset ratio of 13.60% (2009 - 12.82%).
11. Income Taxes
2010
2009
Components of provision for income taxes: Current income tax expense Future income tax expense (recovery)
$
152,081 $ 19,000
$
171,081
$
92,658 36,000 128,658
The total provision for income taxes in the statement of income and retained surplus is at a rate less than the combined federal and provincial statutory income tax rates for the following reasons:
2010
2009
Combined federal and provincial statutory income tax rates Credit Union rate reduction Non-deductible and other items
% 30.0 (18.1) 0.3
% 32.0 (20.0) (2.1)
12.3
9.9
The tax effects of temporary differences which give rise to the net future income tax liability reported in accounts payable and accrued liabilities is related to the amortization of property, plant and equipment and the allowance for impaired loans.
12. Commitments Members’ Loans The Credit Union had made commitments to members for loans that had not been disbursed by December 31, 2010 in the approximate amount of $2,668,199. In addition, the unutilized portions of lines of credit extended to members as at December 31, 2010 were $14,600,412. The Credit Union also had made commitments to members for unexpired letters of credit in the amount of $61,000 as at December 31, 2010. Premises The Credit Union has entered into operating leases for its premises. The following are the minimum lease payments required:
23
24
Casera Credit Union
Notes to Financial Statements For the year ended December 31, 2010
12. Commitments (continued) 2011 $ 213,182 2012 $ 207,684 2013 $ 204,089 2014 $ 172,687 2015 $ 113,031 Thereafter Nil
13. Transactions with Related Parties Related Parties Related parties include all members of the Credit Union (including directors, committee members, management and staff ), Credit Union Central of Manitoba, The Credit Union Deposit Guarantee Corporation and Celero Solutions. Transactions with these parties account for the majority of operations of the Credit Union. Other transactions with these parties are summarized as follows: The Credit Union Deposit Guarantee Corporation The Credit Union Deposit Guarantee Corporation is a deposit insurance corporation. By legal obligation under the Act, the Corporation protects the savings and deposits of all credit union members in every credit union within Manitoba. All transactions with the Credit Union Deposit Guarantee Corporation have been recorded at the exchange amount, which is the amount agreed upon by the two parties. The payments made to the Corporation during the year ended December 31, 2010 represent the statutory annual assessment in the amount of $192,624 (2009 - $145,084). Credit Union Central of Manitoba The Credit Union is a member of Credit Union Central of Manitoba, which provides banking and other services to Credit Unions in Manitoba. All transactions with Credit Union Central of Manitoba have been recorded at the exchange amount, which is the amount agreed upon by the two parties. Details of investments with Credit Union Central of Manitoba are shown in Note 2. Interest earned on these investments during the year amounted to $256,480 (2009 - $238,363). Details of approved lines of credit with Credit Union Central of Manitoba are shown in Note 7. Interest paid on borrowings during the year amounted to $114,523 (2009 - $93,654). Payments made to Credit Union Central of Manitoba during the year ended 2010 for affiliation dues, liquidity assessment, cheque clearing fees totalled $210,199 (2009 - $201,405). Celero Solutions The Credit Union has entered into an agreement with Celero Solutions to provide the delivery of some banking system services and the maintenance of the infrastructure needed to ensure uninterrupted delivery of such services. Celero Solutions is a company formed as a joint venture by the Credit Union Centrals of Alberta, Saskatchewan and Manitoba along with Concentra Financial
2010 Annual Report
Notes to Financial Statements For the year ended December 31, 2010
13. Transactions with Related Parties (continued) and Credit Union Electronic Transaction Services. Payments made to Celero Solutions during the year ended December 31, 2010 for these services totalled $443,238 (2009 - $404,469). During the year, the Credit Union made the following payments to the directors and officers of the Credit Union for expenses associated with the performance of their duties:
2010
2009
Honouraria and per diems Training and conference costs
$
28,710 9,051
$
19,475 6,139
$
37,761
$
25,614
During the year, all loans, deposits and fees that were paid to, received from, or charged to the directors or officers or persons in whom any of them has a material interest during the year conform to the Credit Union’s ordinary practices for members who are not directors or officers. At December 31, 2010, outstanding loans to directors, committee members, management and staff totalled 2.15% (2009 - 1.84%), in aggregate, of the assets of the Credit Union.
14. Financial Instrument Risk Exposure and Management This note describes the Credit Union’s objectives, policies and processes for managing risks arising from financial instruments and the methods used to measure them. Further quantitative information in respect of these risks is presented throughout these financial statements. The following table presents the principal financial instruments used by the Credit Union from which financial instrument risk arises:
Categories of Financial Assets and Financial Liabilities
Class of Financial Instrument
Held for Trading
Funds on deposit Investments Liquidity deposits Shares Accounts receivable Loans to members Member deposits Borrowings Accounts payable
506,362
$
$
— — — — — — —
Loans & Receivables —
$
18,511,283 — 168,368 219,268,000 — — —
Available Other Financial for Sale Liabilities —
$
— 1,393,849 — — — — —
— — — — — 222,147,579 7,081,064 590,916
There have been no substantive changes in the Credit Union’s exposure to financial instrument risks, its objectives, policies and processes for managing those risks or methods used to measure them from previous periods unless otherwise stated in this note. General objectives, policies and processes The Board has overall responsibility for the determination of the Credit Union’s risk management objectives and policies and, whilst retaining ultimate responsibility for them, it has delegated the
25
26
Casera Credit Union
Notes to Financial Statements For the year ended December 31, 2010
14. Financial Instrument Risk Exposure and Management (continued) authority for designing and operating processes that ensure effective implementation of the objectives and policies to the Credit Union’s finance function. The Board receives monthly reports from the Credit Union’s Chief Executive Officer through which it reviews the effectiveness of the processes put in place and the appropriateness of the objectives and policies it sets. Credit Risk Credit risk is the risk of loss to the Credit Union if a counterparty to a financial instrument fails to meet its contractual obligations. The Credit Union is mainly exposed to credit risk from claims against a debtor or indirectly from claims against a guarantor of credit obligations. Risk Measurement Credit risk rating systems are designed to assess and quantify the risk inherent in credit activities in an accurate and consistent manner. To assess credit risk, the Credit Union takes into consideration the member’s character, ability to pay, and value of collateral available to secure the loan. Objectives, Policies and Processes The Credit Union’s credit risk policies set out the minimum requirements for management of credit risk in a variety of transactional and portfolio management contexts. Its credit risk policies comprise the following: •G eneral loan policy statements including approval of lending policies, eligibility for loans, exceptions to policy, policy violations, liquidity, loan administration, credit concentration limits, and risk rating. • L oan lending limits including Board of Director limits, schedule of assigned limits and exemptions from aggregate indebtedness. • L oan collateral security classifications which set loan classifications, advance ratios and amortization periods. •P rocedures outlining loan overdrafts, release or substitution of collateral, temporary suspension of payments and loan renegotiations. • Loan delinquency controls regarding procedures followed for loans in arrears. • Audit procedures and processes are in existence for the Credit Union’s lending activities. With respect to credit risk, the Board receives monthly reports summarizing new loans, delinquent loans and overdraft utilization. The Board also receives an analysis of bad debts and allowance for impaired loans quarterly. Maximum Exposure to Credit Risk The Credit Union’s maximum exposure to credit risk without taking account of any collateral or other credit enhancements is as follows:
2010 Annual Report
27
Notes to Financial Statements For the year ended December 31, 2010
14. Financial Instrument Risk Exposure and Management (continued)
2010 2009
Carrying Value
Maximum Maximum Exposure Exposure
Credit Union Central of Manitoba deposits $ 18,500,000 $ 18,500,000 $ Member loans 219,268,000 219,268,000 Undisbursed loans — 2,668,199 Unutilized lines of credit — 14,600,412 Unexpired letters of credit — 61,000
$ 237,768,000
16,500,000 199,895,036 4,126,888 14,503,793 66,000
$ 255,097,611 $ 235,091,717
Details regarding concentration of credit risk, collateral and other credit enhancements held and loans past due but not impaired are disclosed in Note 3. For the current year, the amount of financial assets that would otherwise be past due or impaired whose terms have been renegotiated is $Nil. Liquidity Risk Liquidity is the risk that the Credit Union may be unable to generate or obtain sufficient cash or its equivalent in a timely and cost effective manner to meet its commitments as they come due. Risk Measurement The assessment of the Credit Union’s liquidity position reflects management’s estimates, assumptions and judgments pertaining to current and prospective firm-specific and market conditions and the related behaviour of its members and counterparties. Objectives, Policies and Processes The Credit Union’s liquidity management framework is designed to ensure that adequate sources of reliable and cost-effective cash or its equivalents are continually available to satisfy its current and prospective financial commitments under normal and contemplated stress conditions. Provisions of the Act require the Credit Union to maintain a certain amount of liquid assets in order to meet member withdrawals. The Board of Directors receives monthly liquidity reports as well as information regarding cash balances in order for it to monitor the Credit Union’s liquidity framework. The Credit Union was in compliance with the liquidity requirements throughout the fiscal year. As at December 31, 2010, the position of the Credit Union is as follows: As at December 31, 2010, the position of the Credit Union is as follows:
Qualifying liquid assets on hand Total liquidity requirement
Excess of liquidity requirement
$
19,017,645 18,338,291
$
679,354
The following are the contractual maturities of financial liabilities, including estimated interest payments:
28
Casera Credit Union
Notes to Financial Statements For the year ended December 31, 2010
14. Financial Instrument Risk Exposure and Management (continued) December 31, 2010
Carrying Amount
Gross Nominal Cash Outflow
Less than 1 Year
1-3 years 4-5 years
Greater than 5 years
(in thousands of dollars)
Deposits $ 222,148 $ (226,918) $ (140,090) $ (61,639) $ (24,032) $ (1,157) Payables 591 (591) (591) — — — Unadvanced loans — (2,668) (2,668) — — — Borrowings 7,081 (7,081) 7,081) — — —
$ 229,820 $ (237,258) $ (150,430)
$ (61,639) $ (24,032) $
(1,157)
December 31, 2009
Carrying Amount
Gross Nominal Cash Outflow
Less than 1 Year
1-3 years 4-5 years
Greater than 5 years
(in thousands of dollars)
Deposits $ 200,649 $ (205,746) $ (110,499) $ (59,686) $ (33,390) $ (2,171) Payables 462 (462) (462) — — — Unadvanced loans — (4,127) (4,127) — — — Borrowings 9,475 (9,475) (9,475) — — —
$ 210,586 $ (219,810) $ (124,563)
$ (59,686) $ (33,390) $
(2,171)
Market Risk Market risk is the risk of loss that may arise from changes in market factors such as interest rates, foreign exchange rates, equity or commodity prices, and credit spreads. The Credit Union is exposed to market risk in its asset/liability management activities. The level of market risk to which the Credit Union is exposed varies depending on market conditions and expectations of future price and yield movements. Interest Rate Risk Traditional banking activities, such as deposit taking and lending, expose the Credit Union to market risk, of which interest rate risk is the largest component. The Credit Union’s goal is to manage the interest rate risk of the balance sheet to a target level. The Credit Union continually monitors the effectiveness of its interest rate mitigation activities. Risk Measurement The Credit Union’s position is measured monthly. Measurement of risk is based on rates charged to clients as well as funds transfer pricing rates. Objectives, Policies and Procedures The Credit Union’s major source of income is financial margin, the difference between interest earned on investments and members loans and interest paid on member deposits. The objective of asset/ liability management is to match interest-sensitive assets with interestsensitive liabilities as to amount and as to term to their interest rate repricing dates, thus minimizing fluctuations of income during periods of changing interest rates.
2010 Annual Report
Notes to Financial Statements For the year ended December 31, 2010
14. Financial Instrument Risk Exposure and Management (continued) Schedules of matching and interest rate vulnerability are regularly prepared and monitored by Credit Union management and reported to the Credit Union Deposit Guarantee Corporation in accordance with the Credit Union’s matching policy. This policy has been approved by the Board of Directors as required by The Regulations to the Act. For the year ended December 31, 2010, the Credit Union was in compliance with this policy. The following schedule shows the Credit Union’s sensitivity to interest rate changes. Amounts with floating rates or due or payable on demand are classified as maturing within six months, regardless of maturity. A significant amount of loans and deposits can be settled before maturity on payment of a penalty, but no adjustment has been made for repayments that may occur prior to maturity. Amounts that are not interest sensitive have been grouped together, regardless of maturity. Period Assets
Yield (%)
Cost Liabilities (%)
Asset/ Liability Gap
(in thousands)
0 to 6 months $ 7 to 12 months 1 to 2 years 2 to 3 years 3 to 4 years 4 to 5 years Over 5 years
79,948 8,999 25,278 29,520 38,048 51,436 4,666
3.69 $ 5.02 5.35 5.43 4.69 4.52 2.40
86,399 34,990 29,561 26,825 12,393 10,364 1,886
1.36 $ 3.26 4.06 4.24 3.84 3.71 0.11
(6,451) (25,991) (4,283) 2,695 25,655 41,072 2,780
$ 237,895 $ 202,418 $ 35,477 Not interest sensitive 5,564 41,041 (35,477)
$
243,459
$ 243,459
$ —
Interest sensitive assets and liabilities cannot normally be perfectly matched by amount and term to maturity. One of the roles of a Credit Union is to intermediate between the expectations of borrowers and depositors. The Credit Union’s risk due to changes in interest rates is illustrated in the one year sensitivity analysis below. The expected change was calculated using financial modelling software based on the Credit Union’s interest sensitive assets and liabilities as at December 31, 2010.
Expected Increase (decrease) in Net Income
Increase in interest rates of 1% Decrease in interest rates of 1%
$
(324,000) 324,000
Foreign Exchange Risk Another risk component of traditional banking activities is foreign exchange risk. The Credit Union’s goal is to manage the foreign exchange risk of the balance sheet to a target level. The Credit Union continually monitors the effectiveness of its foreign exchange mitigation activities.
29
30
Casera Credit Union
Notes to Financial Statements For the year ended December 31, 2010
14. Financial Instrument Risk Exposure and Management (continued) Risk Measurement The Credit Union’s position is measured weekly. Measurement of risk is based on rates charged to clients as well as currency purchase costs. Objectives, Policies and Procedures The Credit Union’s exposure to changes in currency exchange rates shall be controlled by limiting the unhedged foreign currency exposure to $250,000 in U.S. funds. The Credit Union’s risk due to changes in foreign currency rates is illustrated in the sensitivity analysis below:
Change in Exchange Rate
-4.0% 4.0%
Maximum unhedged US $ exposure
$
(10,000)
$
10,000
15. Fair Value of Financial Assets and Liabilities The following represents the fair values of on and off balance sheet financial instruments of the Credit Union. The fair values disclosed exclude the value of assets and liabilities that are not considered financial instruments. In addition, the value of intangibles such as long-term member relationships are not included in the fair value amounts. The Credit Union considers the value of intangibles to be significant. While the fair value amounts are intended to represent estimates of the amounts at which these instruments could be exchanged in a current transaction between willing parties, many of the Credit Union’s financial instruments lack an available trading market. Consequently, the fair values presented are estimates derived using present value and other valuation techniques and may not be indicative of the net realizable values. Due to the judgement used in applying a wide range of acceptable valuation techniques in calculating fair value amounts, fair values are not necessarily comparable among financial institutions. The calculation of estimated fair values is based on market conditions at a specific point in time and may not be reflective of future fair values. (in thousands)
2010
Excess over Book Value Fair Value Book Value
Book Value Fair Value
2009
Excess over Book Value
Assets Funds on deposit $ 506 $ 506 $ — $ 1,007 $ 1,007 $ — Investments 19,905 19,950 45 17,906 17,979 73 Loans to members 219,268 224,827 5,559 199,895 205,629 5,734 Other 168 168 — 223 223 — Liabilities Members’ deposits 222,148 223,975 1,827 200,649 203,005 2,356 Borrowings 7,081 7,081 — 9,475 9,475 — Other 591 591 — 462 462 —
2010 Annual Report
Notes to Financial Statements For the year ended December 31, 2010
15. Fair Value of Financial Assets and Liabilities (continued) Interest rate sensitivity is the main cause of changes in the fair value of the Credit Union’s financial instruments. The book values are generally not adjusted to reflect the fair value, as it is the Credit Union’s intention to realize their value over time by holding them to maturity. The Credit Union has categorized its assets and liabilities that are carried at fair value on a recurring basis, based on the priority of the inputs to the valuation techniques used to measure fair value, into a three level fair value hierarchy. Financial assets and liabilities measured at fair value are categorized as follows: Level 1: Fair value is based on unadjusted quoted prices for identical assets or liabilities in an active market. Level 2: Fair value is based on quoted prices for similar assets or liabilities in active markets, valuation that is based on significant observable inputs or inputs that are derived principally for or corroborated with observable market data through correlation or other means. Level 3: Fair value is based on valuation techniques that require one or more significant unobservable inputs or the use of broker quotes. These unobservable inputs reflect the Credit Union’s assumptions about the assumptions market participants would use in pricing the assets or liabilities.
Level 1
Funds on deposit Investments Liquidity deposits Shares Accounts receivables Loans to members Member deposits Borrowings Accounts payable
$
Level 2
506,362 $ — — — — — 7,081,064 —
$ 7,587,426
Level 3
— $ — — 168,368 — — — 590,916
$ 759,284
$
— 18,511,283 1,393,849 — 219,268,000 222,147,579 — — 461,320,711
16. Dividends on Common Shares The Board of Directors have declared dividends on common shares of $100,000 (2009 - $95,796). The full amount is included in accounts payable and accrued liabilities.
31
32
Casera Credit Union
Notes to Financial Statements For the year ended December 31, 2010
17. Pension Plan The Credit Union has a defined contribution pension plan for full-time employees. The contributions are held in trust by the Cooperative Superannuation Society Limited and are not recorded in these financial statements. The Credit Union matches employee contributions at a rate of 6% of the employee salary. The expense and payments for the year ended December 31, 2010 were $86,369 (2009 - $80,402). As a defined contribution pension plan, the Credit Union has no further liability or obligation for future contributions to fund future benefits to plan members.
18. Comparative Figures Certain of the comparative figures for the year ended December 31, 2009 have been restated to conform to the current year’s presentation. Net income for the year ended December 31, 2009 remains as previously reported.
2010 Annual Report
Products & Services
Essentials of Building Prosperity Deposit Accounts Maximizer Chequing Plan 24 Daily Interest Savings Regular Savings Fat Cat Headstart Headstart Grad Pac Club 55 Trust Accounts U.S. Dollar Accounts Lending Products & Services Mortgages Personal Loans Mortgage Life Insurance* Credit Disability & Credit Life Insurance* Overdraft Protection Lines of Credit Organizational Loans Commercial Loan Investment Products & Services Term Deposits Tax-free Savings Accounts (TFSAs)
Registered Retirement Savings Plans (RRSPs) Registered Retirement Income Funds (RRIFs) Registered Education Savings Plans (RESPs) Investment Planning Mutual Funds** Credential Financial Strategies Inc.*** Additional Services ATM MemberCard Drive-thru and In-branch ATMs Interac® Direct Payment Direct Deposits (payroll, pension & government) Money Orders Travellers Cheques CUbyPhone CU@Home E-statements Mobile Banking American Express U.S. Drafts Utility Bill Payments MasterCard Safety Deposit Boxes Night Depository Travel & Homeowners Insurance*
* Mortgage Life, Credit Disability and Credit Life Insurances are underwritten by CUMIS Life Insurance Company. Homeowners Insurance is underwritten by CUMIS General Insurance Company. Travel Insurance is underwritten by Co-operators General Insurance Company. These services are provided to credit union members through the Credit Union Insurance Services Program. ** Mutual funds are offered through Credential Asset Management Inc. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Unless otherwise stated, mutual fund securities and cash balances are not insured nor guaranteed, their values change frequently and past performance may not be repeated. ®Credential is a registered mark owned by Credential Financial Inc. and is used under licence. *** Credential Financial Strategies Inc. is a member company under Credential Financial Inc., offering financial planning, life insurance and investments to members of credit unions and their communities. ®Credential is a registered mark owned by Credential Financial Inc. and is used under licence.
1300 Plessis Road Phone: 958-6300 8-630 Kildare Ave. East Phone: 958-6320 720 St. Anne’s Road Phone: 958-6600 E-mail: talktous@caseracu.ca
www.caseracu.ca