70th Annual Report 2013 Mission, Vision, Values Mission Enriching lives through financial services and community investment. Vision To be the financial institution of choice....valued and relied upon for our community leadership. Values • • • • • • • • Competitive financial products with a commitment to financial stability; Professional and knowledgeable personal service; Innovation in meeting members’ evolving needs; Sound business principles in decision making; Supportive management and equitable compensation; Encouragement and support of staff volunteerism within the community; Support of local organizations and initiatives; and Adherence to the Seven International Co-operative Principles and Credit Union Operating Principles. On behalf of your board of directors, I am pleased to provide an overview of some of the many activities that took place over 2013. Financially we had another successful year with net income coming in at $1,396,434 compared to $1,474,280 in 2012. Close to $320,000 was returned to members and community again in 2013 by way of a 5.00% dividend on existing Surplus Shares along with close to $120,000 in financial and sponsorship support to a broad range of community activities, ranging from amateur sports, the arts and culture, non-profit agencies and school bursaries. Total Equity remains strong and increased by $1.48 million to end the year at $15.3 million or 5.84% of assets; up from 5.70% in 2012. PCU assets grew by $19.5 million to $262.5 million. Deposits grew by $18.0 million or 7.89% to stand at $245.8 million, with loans growing by $17.1 million or 8.32% to end the year at $222.2 million. Members continue to embrace the new e-services we have rolled out over the last year or two. Mobile Web banking became available in February 2012 and in 2013 we saw volumes pretty much double and now see close to 8,000 logins to CU@HOME internet banking each month through smart phones. Traditional PC based logins remained level at about 16,000 per month and members also make over 5,000 bill payments through CU@HOME each month. Sending money to anybody became easy with the introduction of Interac e-Transfer. All you need is your recipient’s email address or mobile phone number to send money in just a few quick and easy steps. Introduced in late 2012, volumes have increased from less than 250 in the first quarter of 2013 to close to 1,000 in the last quarter. In addition, we are also in the process of piloting the introduction of Small Business Internet Banking with selected commercial members. One area where PCU and, in fact the entire financial services sector faces is in the area of regulation and compliance. We need to devote significant time, and expense, to ensure we are keeping on top of the many regulatory changes that continue to be introduced at the Federal level in areas like Anti Money Laundering, Privacy and anti-spam legislation. Regulators also continue to focus on capitalization requirements of banks and credit unions from an overall global perspective with BASEL III requirements coming into force on a phased in basis starting in 2015. Basel III (or the Third Basel Accord) is a global, voluntary regulatory standard on bank capital adequacy, stress testing and market liquidity risk. We do not expect this will have a huge financial burden on us at this point, but are in the process of assessing its overall impact. On the Provincial front, our regulator has issued a discussion paper relative to their intervention policies which clarifies how they monitor credit unions. President’s Report President’s Report The future sustainability of your credit union was a key topic of discussion at our Fall 2013 Strategic Planning Session. As we look to the future, your Board and Management team believes it is important to continually assess our continued sustainability to ensure the success of the past will be successes of the future. We have identified a number of action items we will be taking in this analysis; one of which involved the completion of an online Member and non-member Survey in November. In addition to the standard types of questions on product and service satisfaction levels; the survey sought to confirm whether what we believe is our Value Proposition is resonating in the marketplace. As reported at last year’s Annual Meeting, we updated our Mission, Vision, and Value statements (included in the front of this report) to more clearly reflect who we believe we are; at our Fall 2012 Planning Session. We had about 300 members and 60 non-members complete the survey and are currently analyzing the results. At this point, I can share with you that we were quite pleased with the high level of “satisfied” responses throughout the survey and I can also advise we were very pleased to see our Value Proposition is resonating with both members and non-members. In addition, the responses from non-members’ identifies there continues to be future growth opportunities from them as there is a clear receptiveness to considering a switch to PCU. In closing, I recognize and acknowledge the continued abilities and commitment of management and staff to look after maintaining our financial strength and providing quality, expert service to our members. Your Board was pleased to see Portage Credit Union being the recipient of the Portage & District Chamber of Commerce 2013 Award for Outstanding Contribution to the Community by a business at their Best Business Awards in October. The tremendous volunteer effort of our staff in the community was a key factor in us being awarded this. These changing times add additional challenges to our staff and their continued effort to make Portage Credit Union successful while also volunteering countless hours truly makes a difference. Respectfully submitted, Clarke Munro, President, Board of Directors Board of of Board Directors Directors & & Committees Committees Directors Directors ClarkeClarke MunroMunro Ken Ken Boyachek Boyachek President Term Expires 2016 2015 2015 President Term Expires 2016 Director Director Term Expires Term Expires Ted Vandenberg Kevin Laramee Ted Vandenberg Kevin Laramee 1st Vice President Term Expires 2016 2015 2015 1st Vice President Term Expires 2016 Director Director Term Expires Term Expires Joe Masi Winnie PauchPauch Joe MasiWinnie 2nd Vice President Term Expires 2014 2014 2014 2nd Vice President Term Expires 2014 Director Director Term Expires Term Expires Liz Merrick Liz Merrick Director 2016 2016 Director Term Expires Term Expires Board Committees Board Committees Executive Committee Executive Committee Audit Committee Audit Committee ClarkeClarke MunroMunro PresidentTed President Ted Vandenberg Vandenberg WinnieWinnie PauchPauch 1st Vice President Ken Boyachek 1st Vice President Ken Boyachek Joe Masi 2nd Vice President Kevin Laramee Joe Masi 2nd Vice President Kevin Laramee Nominating Committee Policy Committee Nominating CommitteePolicy Committee Kevin Kevin Laramee Ken Boyachek LarameeKen Boyachek Ted Vandenberg Liz Merrick Ted VandenbergLiz Merrick Liz Merrick Winnie PauchPauch Liz MerrickWinnie Independent Auditors' Report Independent Auditors’ Report To the Members of Portage Credit Union Limited: The accompanying summary financial statements, which comprise the summary statement of financial position as at December 31, 2013 and the summary statements of comprehensive income and changes in members’ equity for the year ended December 31, 2013 are derived from the audited financial statements of Portage Credit Union Limited for the year ended December 31, 2013. We expressed an unmodified audit opinion on those financial statements in our report dated April 24, 2014. The summary financial statements do not contain all the disclosures required by International Financial Reporting Standards. Reading the summary financial statements, therefore, is not a substitute for reading the audited financial statements of Portage Credit Union Limited. Management’s Responsibility for the Summary Financial Statements Management is responsible for the preparation of the summary financial statements on the basis described in Note 1 to the summary financial statements. Auditors' Responsibility Our responsibility is to express an opinion on the summary financial statements based on our procedures, which were conducted in accordance with Canadian Auditing Standard (CAS) 810, “Engagements to Report on Summary Financial Statements”. Opinion In our opinion, the summary financial statements derived from the audited financial statements of Portage Credit Union Limited for the year ended December 31, 2013 are a fair summary of those financial statements, on the basis described in Note 1 to the summary financial statements. Winnipeg, Manitoba April 24, 2014 Chartered Accountants Portage Credit Union Limited Summary Statement of Financial Position As at December 31, 2013 2013 2012 14,725,152 7,850,245 Assets Funds on hand and on deposit Investments Members' loans receivable Income tax receivable Property and equipment Other assets 20,077,336 24,471,808 222,195,554 205,123,251 13,944 - 4,860,482 5,004,243 659,683 569,000 262,532,151 243,018,547 245,814,125 227,828,465 1,303,006 1,132,392 Liabilities Members' savings and deposits Accounts payable - 125,632 72,000 70,400 247,189,131 229,156,889 Members' shares 4,322,629 4,237,701 Retained surplus 11,020,391 9,623,957 15,343,020 13,861,658 262,532,151 243,018,547 Income taxes payable Deferred taxes Members' equity Approved on behalf of the Board , Director , Director Summary of Financial Position Portage Credit Union Limited Summary Statement of Comprehensive Income For the Year Ended December 31, 2013 Summary of Comprehensive Income 2013 2012 8,957,191 8,838,588 1,150,700 967,996 10,107,891 9,806,584 Cost of funds 4,006,409 3,863,031 Financial margin 6,101,482 5,943,553 Operating expenses Administration 1,825,033 1,688,965 Member security 289,604 255,704 Financial income Interest from members' loans Investment income Occupancy 609,969 612,646 Organizational 192,451 184,413 3,000,652 2,886,702 5,917,709 (1,616,778) 5,628,430 (1,568,157) Net operating expenses 4,300,931 4,060,273 Income from operations before patronage refund and provision for income taxes Patronage refund 1,800,551 200,000 1,883,280 200,000 Income before provision for income taxes Provision for income taxes 1,600,551 204,117 1,683,280 209,000 Income and comprehensive income for the year 1,396,434 1,474,280 Personnel Gross operating expenses Other income Portage Credit Union Limited Summary Statement of Changes in Members' Equity For the Year Ended December 31, 2013 Provision for Balance, December 31, 2011 Income and comprehensive income Patronage paid through issuance of member shares Patronage accrued Members' shares issuance of surplus shares Retained surplus Total 3,738,259 450,000 8,149,677 12,337,936 434,680 - (450,000) 200,000 1,474,280 - 1,474,280 (15,320) 200,000 Issuance of member shares Redemption of member shares 3,520 (138,758) Balance, December 31, 2012 Income and comprehensive income 4,037,701 - 200,000 - 198,109 (200,000) - (1,891) 11,225 200,000 - - 200,000 11,225 - (124,406) Patronage paid through issuance of member shares Patronage accrued Issuance of member shares Redemption of member shares Balance, December 31, 2013 (124,406) 4,122,629 - 200,000 9,623,957 1,396,434 11,020,391 3,520 (138,758) 13,861,658 1,396,434 15,343,020 Summary of Changes in Members’ Equity Portage Credit Union Limited Notes to the Summary Financial Statements For the Year Ended December 31, 2013 Notes to the Summary Financial Statements 1. Basis of the summary financial statements Management has prepared the summary financial statements from the Credit Union’s December 31, 2013 audited financial statements which can be obtained at the Credit Union. The detailed notes included in the audited financial statements are not included in these summary financial statements. 2. Compliance with minimum capital and liquidity requirements The Credit Union is in compliance with the capital and liquidity reserve requirements at December 31, 2013 established by the Regulations to The Credit Unions and Caisses Populaires Act of Manitoba. Readers of the summary financial statements are advised that in order to appropriately interpret the Credit Union’s capital and liquidity, the reader must refer to the audited financial statements and notes for the year ended December 31, 2013, which contain the information detailing the calculation. 2013 Community Donation & Sponsorships Totalling over $120,000 Arron Asham Chance 2 Play Big Bike Ride - Heart & Stroke Foundation Big Brothers/Big Sisters Camp Wannakumbac Canad Inn Prairie Classic Canadian Mental Health Association Canadian Museum of Human Rights Central Plains Cancer Care Central Plains Capitals AAA Child & Family Services Chance 2 Grow City of Portage - Island of Lights Community Foundation of Portage & District Ducks Unlimited First Presbyterian Soup Kitchen Habitat for Humanity Heartland Rodeo Manitoba Fiddle Association MS Society Oakville Community - Curling Rink/Skating Rink PAWS Portage & District Arts Centre Portage Chamber of Commerce Portage Community Revitalization Corporation Portage Ex Portage Hospital Foundation Portage Junior Golf Portage Lions Club Portage Minor Hockey Portage Ringette Portage Potato Festival Portage Skating Club Portage Terriers Potato Days Ag Industry School Bursaries & Donations Sunset Palliative Care United Way William Glesby Centre Youth for Christ 4-H Awards Pawlooza in the Park Community Community Involvement Involvement Community Foundation of Portage & District 2012 International Year of Co-operatives ited Way Payroll Givin Portage Credit Union Junior Golf Portage Terriers Participation in Un g Plan Since 1999 100% PCU Employee Management & Staff Dave Omichinski Kathy Keast Debby Panko Lori Smith Kerry McGowan Gerald Buan Kathy Belton Jaret Murray Debbie Bailey Marlene Schwartz Stacy Turner Colleen Vrooman Lori Twist April Brown Taylor Green Joy Medallon Kimberly Cabernel Elizabeth King Dana Grant Jennifer Sandney Marianne Wall Tammy Pond Nicole Nelson Emily Koldyk Tracy Erickson Alicia Pettinger Kathy Michie Chief Executive Officer Vice President HR & Branch Operations Assistant Manager, Member Services Assistant Manager, Financial Services Accounting Analyst Accounting Analyst Account Manager Account Manager Member Services Officer Account Manager Marketing Coordinator Financial Services Officer Financial Services Officer Financial Services Officer Deposit Services Officer Administrative Officer Administrative Officer Senior Member Services Representative Senior Member Services Representative Member Services Representative Member Services Representative Member Services Representative Member Services Representative Member Services Representative Member Services Representative Member Services Representative Receptionist Cathie McFarlane Gail Patterson Rita Ennis Bernice Scaling Bonnie West Sheri Inman Bob Wickens Paul Chislitt Amber Cool-Hebert Erin Rintoul Dale Boskwick Melissa Vuignier Dianne Todoruk Diane Routledge Scott Mulvey Myla Rodriguez-Alinsod Lorraine Faith Donna Clayton Brenda Tilk Megan Wieler Michelle Bencharski Audrey Marshall Kelly Wolfe Pamela Matthews Bryce Moar Ray George Holly Brookes Vice President Finance Vice President Lending Assistant Manager, Administration Member Services Supervisor Accounting Analyst HR Coordinator Account Manager Account Manager Member Services Officer Member Services Officer Member Services Officer Financial Services Officer Financial Services Officer Deposit Services Officer Administrative Officer Administrative Officer Member Services Representative Member Services Representative Member Services Representative Member Services Representative Member Services Representative Member Services Representative Member Services Representative Administrative Officer Member Services Representative Account Manager Receptionist Corporate Office 19 Royal Road N - Third Floor Portage la Prairie, MB R1N 1T9 Ag/Commercial Division 19 Royal Road N - Second Floor Portage la Prairie, MB R1N 1T9 Main Branch 19 Royal Road N Portage la Prairie, MB R1N 1T9 Westend Branch 2275 Saskatchewan Avenue W Portage la Prairie, MB R1N 3B9 Oakville Branch 150 - 2nd Street Oakville, MB R0H 0Y0 Telephone (204) 856-2700 Toll Free: (877) 856-PCUL Website www.portagecu.mb.ca Email [email protected] Printed by Leech Printing 229555
© Copyright 2024 ExpyDoc
