Evangeline Credit Union Ltd. - Évangéline

Transcription

Rapport annuel
table des matières
2010
Rapport de la présidente...……………………..…...2-3
Conseil d’administration………………….………….4
L’impacte de la caisse………….……………………..5
Employé.es…..…………..………………..………...6-7
Rapport du directeur général………………...….…8-9
Rapport financier……………………..………....10-24
No. 1 en services………………………………..…....25
Statistiques……………………………..…..…....26-27
Stratégies financières Credential ...…….…………..28
Bénévole de l’année 2009………………….…..…...29
Dépôts étudiants…………...………………...…......29
Récipiendaires de bourses………….……...………...30
Commanditaire Relais pour la vie…….……………31
Services………….………………………….…………32
pour vous aider en cours de route...
2010
assisting with your journey...
Annual Report
table of contents
President’s Report………………...…………..…..2-3
Board of Directors………………..………...…..…..4
Impact of the Credit Union…………………….…..5
Employees…………………………...……...…….6-7
General Manager’s Report……..………..……….8-9
Financial Report…………………………..…..10-24
No.1 in service ……………………...….………....25
Statistics………………………………….…….26-27
Credential Financial Strategies.……..….……......28
2009 Volunteer of the Year……………...…….....29
Student Deposits………………………..…..……..29
Scholarship Recipients.……………….…...……...30
Relay for Life Sponsorship..………………………31
Services…………….……………………………....32
Rapport
de la présidente
Voilà que se termine une autre année. Il est difficile de croire qu’une autre année civile
vient de passer depuis que nous avons fait le point sur les résultats opérationnels et
financiers de l’année 2008-2009. Il est d’autant plus difficile de croire que la réunion
générale annuelle de cette année en sera la 41e de cette caisse populaire depuis la fusion des
trois petites organisations communautaires des années 1970. Le processus de fusion d’il y a
41 ans s’est avéré, dans son ensemble, très progressif et extrêmement profitable aux
communautés, à l’organisation et aux membres. Elle a su fournir l’efficacité et la force
nécessaire pour que l’organisation puisse offrir les produits et les services auxquels les
membres s’attendent de leur fournisseur de services financiers. Il est inconcevable de penser
aujourd’hui comment chaque petite organisation distincte aurait pu survivre à long terme
en raison de l’investissement ultimement nécessaire à l’offre de produits et de services qui
dépendent de plus en plus de la technologie.
Votre Conseil d’administration est responsable de diriger et de veiller aux opérations ainsi
que d’aller à la recherche de possibilités de faire grandir et de renforcer l’organisation afin
d’augmenter la probabilité de succès à long terme. Tel que mentionné plus tôt au cours de
l’année, la possibilité de fusion avec la Central Credit Union d’O’Leary s’est présentée et
énormément de travail a été effectué pour évaluer cette possibilité. Un processus a été établi,
mais par la suite modifié puisque l’échéancier devenait extrêmement serré pour rendre
disponible aux membres des deux organisations toute l’information pertinente pour
considération à cette réunion générale annuelle. Puisque le directeur général de la Central
Credit Union avait exprimé son désir de prendre sa retraite, les Conseils ont négocié une
entente de services de gestion d’un an qui permettrait au directeur général de la Central
Credit Union de prendre sa retraite et à notre directeur général de cumuler les fonctions de
gestion des deux organisations. Au cours de cette période d’entente, le processus
d’évaluation relativement à la fusion potentielle se poursuivra. Les membres continueront à
recevoir de l’information au fur et à mesure que le processus continue d’évoluer.
Le Conseil d’administration se réjouit de pouvoir affirmer que d’excellents résultats
financiers ont été affichés encore cette année, malgré les incertitudes économiques
persistantes qui existent dans la plupart des économies mondiales. Le solide appui continu
des membres a permis une augmentation de 5,75% en actif par rapport à l’an dernier. La
rentabilité continue à bien se porter puisque nous avons pu afficher un profit de 442 237 $
et, de plus, augmenter les capitaux propres à 4 842 231 $, qui se situe maintenant à 7,09%
de l’actif. Un taux d’intérêt de dividende de 1,5% a été déclaré et récemment payé sur les
parts, fondé sur le solde mensuel minimum dans les comptes.
Je profite de cette occasion pour souligner la contribution importante des membres du
Conseil, l’engagement véritable des employés et l’appui solide des membres en vue du
succès continu de l’organisation afin d’assurer un autre quarantaine d’années de croissance
et de prospérité.
Carol Gallant
Présidente du Conseil d’administration
2
www.evangelinecreditu.com
President’s
report
Another year has come and gone. It sure doesn’t seem like a full
calendar year has passed us by since we reported on our 2008-2009
fiscal year operational and financial results. Also, it is hard to believe
that this year’s annual general meeting is the 41st of this Credit Union
Carol Gallant
since the amalgamation of the three small community
organizations back in 1970. The amalgamation process of 41 years
Présidente
ago has proven to be quite progressive and extremely beneficial for the
President
communities, the organization, and the membership as a whole. It has
provided the efficiency and strength required so that the organization can deliver the
products and services that the members came to expect from their financial service
provider. It is unimaginable today to perceive how each small separate organization would
be able to survive in the long term due to the investment ultimately required in the delivery
of the products and services that have come to be heavily reliant on technology.
Your Board of Directors has the responsibility to direct and monitor the operation, as well
as seek opportunities to grow and strengthen the organization in order to increase the
probability of long-term success. As previously communicated earlier this year, an
amalgamation opportunity with Central Credit Union of O’Leary came about and
considerable work was done to evaluate this opportunity. A process was initially
established but was later altered as the timelines became extremely tight to bring forward all
the pertinent information to the membership of both organizations for consideration at
this annual general meeting. As the General Manager of Central Credit Union had
expressed a desire to retire, the Boards negotiated a one year Management Services
Agreement that would allow the Central’s General Manager to effectively retire and our
General Manager to assume the management responsibilities of both organizations. During
this agreement period, the evaluation process related to the potential amalgamation will
continue. Further information will be provided to the memberships as the process
continues to evolve.
The Board of Directors is quite pleased to report some relatively strong financial results
again this year despite lingering economic uncertainties evident throughout most of the
world economies. Continued strong support of the membership has resulted in an increase
of 5.75% in assets over the previous year. Profitability continues to be quite healthy as we
were able to post a net profit of $442,237 and furthermore increase the equity to $4,842,231
which is now at 7.09% of assets. A dividend interest rate of 1.5% was declared and recently
paid on share deposits based on the minimum monthly balance of the accounts.
I would like to take this opportunity to recognize the important contribution of the Board
members, the genuine commitment of the employees and the strong support of the
members in the ongoing success of the organization as we strive for another 40 years or so
of growth and prosperity.
Carol Gallant
Board President
3
2010
Conseil d’administration
Board of Directors
Carol Gallant
Présidente
President
Raymond Arsenault
Vice-président
Comités de politiques et de crédit
Vice-President
Policy and Audit Committees
Peter Bulger
Secrétaire
Comité de crédit
Secretary
Audit Committee
Léo-Paul Arsenault
Giselle Bernard
Glen Ellis
Comité de crédit
Audit Committee
Comités de politiques et d’éducation
Policy and Education Committees
Comité de finances
Finance Committee
Robert Gallant
Ira Smith
Eric Wagner
Comité de finances
Finance Committee
Comité de finances
Finance Committee
Comités de politiques et d’éducation
Policy and Education Committees
4
L’impact de la Caisse populaire Évangéline
Evangeline Credit Union’s impact
Au 30 septembre 2010
As of September 30th, 2010
$148,929
Dividendes
Dividends
$54,679
Dons annuels
Donations
$96,750
Valeur des points
Choice Rewards
points value
24
5,530
$68,268,092
Employé.es
Employees
Propriétaires
Owners
Actifs
Assets
5
2010
Les employé.es
Staff
Alfred Arsenault
Directeur général
General Manager
Marlene Cormier
Rép. aux services des membres
Member Services Rep.
Diane Richard
Denise Arsenault
Mark Campbell
Directrice des services administratifs Directeur de la succursale
Branch Manager
Administrative Services Manager
Lucille Gallant
Kelly MacDougall
Angele Gallant
Directrice de la succursale
Branch Manager
Phyllis Ramsay
Rép. aux services des membres Rép. aux services des membres Rép. aux services des membres
Joan St. John
Judy Robichaud
Rép. aux services des membres Rép. aux services des membres
6
Rachelle Steffensen
Les employé.es
Staff
Corinne Arsenault
Spécialiste aux services des membres
Member Services Specialist
Marc Côté
Gisele Arsenault
Agent des services financiers
Financial Services Officer
Agente des services financiers
Craig MacLean
Agent des services financiers
Ben Murphy
Sandra Palmer
Heather Banks
Thelma Blanchard
Agent des services commerciaux
Commercial Services Officer
Agente des services financiers
Agente administrative
Administrative Officer
Commis comptable
Accounting Clerk
Marie Maddix
Agente administrative
Administrative Officer
Liette McInnis
Diane McInnis
Secrétaire-réceptionniste
Secretary-Receptionist
Agente de marketing
Marketing Officer
7
2010
Sheila-May Muttart
Commis administrative
Administrative Clerk
Rapport
du directeur général
Je suis très heureux de vous présenter encore une fois mon rapport sur le fonctionnement de votre
Caisse populaire au cours de la dernière année ainsi que sur l’orientation générale que nous prévoyons
pour l’avenir.
Depuis l’importante crise économique de 2008-2009, l’économie n’a pas connu de reprise rigoureuse
principalement en raison des problèmes persistants du marché de l’habitation des États-Unis, du niveau
de dettes et de déficits insoutenables de nombreux pays autour du monde et du niveau toujours
croissant de dettes des individus. Heureusement, au Canada, l’économie n’a pas été affectée aussi
négativement que dans d’autres pays, puisqu’il possède un niveau plus raisonnable de dette fédérale et
une philosophie de réglementation plus rigoureuse que nos institutions financières doivent observer.
À la suite de cette lente relance économique, les taux d’intérêt n’ont pas rebondi aussi rapidement que
prévu. Les faibles taux sont évidemment profitables pour ceux qui ont contracté des prêts; cependant, il
n’en est pas de même pour ceux qui dépendent du revenu de l’intérêt provenant d’investissements.
Les résultats financiers de cette dernière année financière se comparent à ceux de l’an dernier. Une
faible réduction des marges a donné lieu à une réduction des revenus de fonctionnement qui ont été
compensés par une réduction de la contribution nécessaire à la réserve pour pertes sur prêts en raison
d’une performance relativement forte du dossier en question. La mise à niveau du guichet automatique
afin de le rendre complètement conforme au système des cartes à puce et l’asphaltage en entier du
terrain de stationnement de notre succursale de Wellington sont les seuls investissements importants
qu’il y a eu au cours de la dernière année.
Pour assurer que nous demeurions concurrentiels sur le marché, il est très important de continuer de
prendre appui sur les capitaux propres de l’organisation et d’aller à la recherche de possibilités qui
permettront d’augmenter l’efficacité. En raison de notre niveau de rentabilité relativement élevé au fil
des ans, nous avons pu continuer à renforcer la valeur nette de l’organisation. En raison du nombre de
plus en plus élevé de règlements, il devient de plus en plus difficile pour les petites organisations de se
permettre l’expertise nécessaire pour demeurer complètement en règle. La direction continue toujours
de trouver et de mettre en œuvre des solutions économiques afin de satisfaire ces exigences.
Cet exercice de recherche d’efficacité a projeté, ce qui semble trop évident, à l’avant-plan : la fusion
avec une caisse populaire semblable à la nôtre. Malgré les défis que présente une telle proposition, les
communautés en question devraient grandement bénéficier de l’efficacité potentielle de combiner
l’administration de deux organisations. J’ai très hâte à finaliser le processus d’évaluation du projet de
fusion de notre caisse populaire avec notre voisin de l’ouest, la Central Credit Union de la
communauté d’O’Leary.
Pour conclure, je tiens à remercier sincèrement tous nos employés pour leur importante contribution au
succès continu de notre organisation. Dans une organisation de service comme la nôtre, les employés
jouent un rôle tellement essentiel dans son succès. Je crois que nous sommes très chanceux de pouvoir
compter sur un groupe de gens si dévoués qui vont souvent au-delà de leur mandat afin de respecter
notre engagement d’offrir des services de qualité à nos membres-propriétaires. Enfin, je tiens à féliciter
sincèrement les bénévoles qui composent le Conseil d’administration pour leur appui continu de notre
équipe de gestion et pour leur contribution régulière à l’orientation stratégique de la Caisse populaire.
Alfred Arsenault
Directeur général
8
General Manager’s
report
I am very pleased to report to you once again on the operation of your Credit
Union for the past year as well as on the general direction that we foresee for
the future.
Since having gone through the major economic crisis of 2008 – 2009, the
Alfred Arsenault
economy has failed to see a strong rebound mainly due to the persisting
problems in the US housing market, the unsustainable level of debts and
Directeur général
deficits of numerous countries around the world and the ever-increasing level
General
Manager
of debt carried by individuals. Fortunately, in Canada, our economy has not
been affected quite as negatively as that of other countries, since our country
has a somewhat more reasonable level of federal debt and a rigorous regulation philosophy that our
financial institutions follow. As a result of this slow economic recovery, interest rates have not
rebounded quite as quickly as was originally expected. Low rates are obviously beneficial for anyone
carrying loans; however, the same cannot be said for someone relying on interest revenue from
investments.
Our financial results for this past fiscal year are quite comparable to those of the previous year. A
slight reduction in margins has resulted in a decrease in operating earnings which have been offset
by a reduction in contribution required in loan loss reserve because of a relatively strong
performance of the portfolio. The only significant investments made this past year was an ATM
upgrade required to be fully chip-card compliant and the repaving of the entire parking area of our
Wellington office.
To ensure that we remain competitive in the market place, it is very important to continuously
build on the equity of the organization and to seek out opportunities to increase efficiency. As a
result of our relatively strong level of profitability over the years, we have been able to continually
strengthen the net worth of the organization. With ever-increasing regulations, it becomes more
and more challenging for small organizations to afford the expertise that is required to remain fully
compliant. There is a continuous effort by Management to identify and implement cost effective
solutions to fulfill these requirements.
This efficiency-seeking exercise has brought what seems too obvious to ignore to the forefront:
amalgamation with a like-minded Credit Union. Despite the challenges that such a proposal
creates, the potential efficiencies of combining the administration of two organizations should bring
significant benefits to the communities involved. I very much look forward to finalizing the
evaluation process of the proposed amalgamation of our Credit Union with our neighbor to the
west, the Central Credit Union of O’Leary.
I would like to sincerely thank all our employees for their significant contribution to the ongoing
success of our organization. In a service organization such as ours, the employees play such a
critical part in its success. I believe that we are very fortunate to have such a committed group of
individuals who regularly go beyond expectation to deliver on our commitment to quality service to
our member/owners. Finally, I would like to sincerely thank the volunteers who make up the Board
of Directors for their continued support of our Management team and for their ongoing input in the
strategic direction of the Credit Union.
Alfred Arsenault
General Manager
9
2010
Rapport
financier
October 15, 2010
Auditors' Report
To the Members of
Evangeline Credit Union Ltd.
We have audited the balance sheet of Evangeline Credit Union Ltd. as at September 30, 2010 and the
statements of earnings, undistributed income and cash flows for the year then ended. These financial
statements are the responsibility of the company's management. 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 plan and perform an audit to obtain reasonable assurance whether the financial
statements are free of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well as evaluating the
overall financial statement presentation.
In our opinion, these financial statements present fairly, in all material respects, the financial position of
the company as at September 30, 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
(1)
2
10
Financial
Report
Balance Sheet
As at September 30, 2010
2010
$
2009
$
1,730,732
7,883,383
52,523,895
163,381
76,674
94,364
22,521
981,873
7,024,609
50,919,426
196,063
6,748
72,076
-
62,494,950
59,200,795
Property and equipment (note 4)
1,139,194
1,069,597
Investments (note 5)
4,632,080
4,285,435
68,266,224
64,555,827
62,552,890
492,905
378,198
-
59,291,493
533,863
321,362
9,115
63,423,993
60,155,833
4,842,231
4,399,994
68,266,224
64,555,827
Assets
Current assets
Cash and equivalents
Current accounts
Loans and mortgages (note 3)
Accrued loan interest receivable
Real estate held for resale
Prepaid expenses and other
Income taxes receivable
Liabilities
Current liabilities
Member deposits (note 6)
Accrued interest payable
Other liabilities
Income taxes payable
Contingent liability (note 7)
Members' Equity
Undistributed income
Approved by the Board of Directors
_____________________________ Director
_____________________________ Director
(2)
3
11
2010
Rapport
financier
Statement of Undistributed Income
For the year ended September 30, 2010
Undistributed income - Beginning of year
Net earnings for the year
Undistributed income - End of year
(3)
2
12
2010
$
2009
$
4,399,994
3,971,882
442,237
428,112
4,842,231
4,399,994
Financial
Report
Statement of Earnings
Revenue
Loan interest
Investment
Service fees
Commissions
Other income
Expenses
Staff
Premises
Insurance
Office
Service fees
General
Cost of capital
Operating earnings
Other expense
Share dividends
Provision for loan losses
Provision for real estate held for resale
Provision for current income taxes
(4)
3
13
2010
2010
$
2009
$
3,226,859
162,067
372,719
404,493
74,831
3,308,636
260,829
346,383
377,333
69,727
4,240,969
4,362,908
1,202,630
143,718
135,486
138,474
594,592
264,120
944,540
1,112,171
147,595
124,155
122,100
571,588
255,853
1,130,532
3,423,560
3,463,994
817,409
898,914
148,929
128,500
35,000
135,802
249,813
-
312,429
385,615
504,980
513,299
62,743
85,187
442,237
428,112
Rapport
financier
Statement of Cash Flows
2010
$
2009
$
442,237
428,112
86,191
128,500
35,000
89,075
249,813
-
691,928
767,000
32,682
(104,926)
(22,288)
(22,521)
(40,958)
56,836
(9,115)
(6,377)
127,393
(16,209)
(67,057)
79,175
(38,501)
581,638
845,424
Cash provided by (used in)
Operating activities
Item not affecting cash
Amortization
Provision for real estate held for resale
Net change in non-cash working capital items
Decrease (increase) in accrued loan interest receivable
Decrease (increase) in real estate held for resale
Increase in prepaid expenses and other
Increase in income taxes receivable
Decrease in accrued interest payable
Increase in other liabilities
Decrease in income taxes payable
Financing activities
Repayment of loan payable
Increase in member deposits
3,261,397
(150,000)
5,206,296
3,261,397
5,056,296
(155,788)
(346,645)
(1,732,969)
(80,329)
(198,157)
(3,906,680)
(2,235,402)
(4,185,166)
Increase in net cash
1,607,633
1,716,554
Net cash - Beginning of year
8,006,482
6,289,928
Net cash - End of year
9,614,115
8,006,482
1,730,732
7,883,383
981,873
7,024,609
9,614,115
8,006,482
3,421,608
985,498
2,008
148,929
94,379
3,582,239
1,197,589
2,008
135,803
123,688
Investing activities
Purchase of property and equipment
Increase in investments
Increase in loans and mortgages
Net cash consists of
Current accounts
Supplementary disclosure
Interest received
Interest paid
Dividends received
Dividends paid
Income taxes paid
(5)
2
14
Financial
Report
Notes to Financial Statements
September 30, 2010
1
General
The Evangeline Credit Union Ltd. is incorporated under the Prince Edward Island Credit Unions Act. Its
principal business activities include financial and banking services for credit union members.
2
Summary of significant accounting policies
Loans and mortgages
Loans and mortgages are stated at the principal amount less allowances established to recognize estimated
credit exposure and impairment.
Provision for impaired loans
A loan is classified as impaired when, in management's opinion, it is prudent to establish a provision against a
specific loan for which the timely and full collection of the loan may be questionable. This provision is
determined in two manners, specific provisions and general provisions.
Specific provision
Specific provisions are established on an individual facility basis to recognize expected credit losses.
The specific provision is the amount that is allocated to reduce the carrying value of an impaired loan
to its estimated realizable amount. Generally, the estimated realizable amount is either the fair value
of any security underlying the loan, net of expected costs of realization and any amount legally
required to be paid by the borrower.
General provision
A general provision is established when required to absorb credit losses attributable to the
deterioration of credit quality within major portfolios for which specific provisions have not been
established. No general provision has been established as at September 30, 2010.
The provision for credit losses is maintained at an amount considered adequate to absorb estimated creditrelated losses. The provision for credit losses reflects management's best estimate of the impairment existing
in the portfolio and their judgments about economic conditions. If the circumstances under which these
estimates and judgments were made change, there could be a significant change to the provision for credit
losses currently recognized. The provision is increased by a charge to "provision for credit losses" which is a
charge to income and reduced by write-offs net of recoveries.
Real estate held for resale is acquired from foreclosed loans and is carried at the lower of cost of the impaired
asset prior to the realization of the related security and the underlying estimated realizable value of the
security.
(6)
3
15
2010
Rapport
financier
September 30, 2010
Property and equipment
Land is carried at cost. All other property and equipment are carried at cost less accumulated amortization.
Amortization is calculated using the declining balance method as follows:
Pavement
Buildings
Furniture, equipment and computers
8%
4%, 5%, 10%
20%, 30%, 45%, 55%
Amortization of some furniture and equipment is also calculated using the straight-line method over 5 years.
Investments
Investments in securities that are classified as held-to-maturity are valued at cost or amortized cost, adjusted
to recognize impairment other than a temporary impairment in the underlying value.
Investments in securities that are classified as available for sale are initially recognized at acquisition cost and
subsequently re-measured at fair value at each reporting date. The fair value of publicly traded securities is
based on their quoted market prices. All other securities' fair value is determined by discounting the expected
future cash flows at current market rates. When the fair value of the security cannot be reliably measured, it
will be recorded at cost.
Revenue recognition
Loan interest
Interest accrued on loans is recognized in income except where a loan is classified as impaired. A loan is
classified as impaired when a specific provision has been established, a write-off taken or when, in the
opinion of management, there is a reasonable doubt as to the ultimate collectibility of principal or interest.
Interest received on an impaired loan is recognized in income only if there is no longer doubt as to the
collectibility of the carrying value of the loan, otherwise, the interest is credited to the principal. Loans are
generally returned to accrual status when all delinquent principal and interest payments are brought current
and the timely collection of both principal and interest is reasonably assured.
Investment and other income
Investment and other income is recognized as revenue on an accrual basis.
Service fees
Service fees income is recognized on an accrual basis in accordance with the service agreement.
Commissions
Commissions income is recognized when the event creating the commissions takes place.
(7)
2
16
Financial
Report
September 30, 2010
Management estimates
The presentation of financial statements in conformity with Canadian generally accepted accounting
principles requires management to make estimates and assumptions mainly considering values that affect the
reported amount of assets and liabilities and disclosure of contingent liabilities at the date of the financial
statements and the reported amounts of revenues and expenditures during the reported period. It is reasonably
possible that changes in future conditions could require a material change in the recognized amounts.
Market value
Quoted market prices are not available for a portion of Evangeline Credit Union Ltd.'s financial instruments.
Consequently, market values presented are estimates derived using redemption values, present values or other
valuation techniques which may not be indicative of the net realizable value.
Risk management policies
Management's risk management policies are informal and are typically performed as a part of the overall
management of the entity's operations. Management's close involvement in operations identifies risks and
variations from expectations leading to changes in risk management activities and requirements and actions.
Management has not entered into hedging transactions to manage risk. As a part of the overall management
of the entity's operations, management informally considers avoidance of undue concentrations of risk, and
may require collateral to mitigate credit risk. These policies and procedures are unchanged from the prior
year.
Foreign currency
Monetary assets and liabilities denominated in foreign currencies are translated into Canadian dollars at the
exchange rate prevailing at the balance sheet date. Revenues and expenses denominated in foreign currencies
are translated at the average monthly exchange rate.
Credit risk
Credit risk is the risk that a borrower will fail to meet principal and interest obligations. Evangeline Credit
Union Ltd. is exposed to credit risk through its loans and mortgages, and mitigates its exposure to this risk
through strict adherence to credit granting and monitoring policies and procedures. These policies include
requiring collateral be pledged proportionate to the size and term of the loan and mortgage.
Currency risk
Currency risk is the risk that the value of a financial instrument will fluctuate due to changes in foreign
exchange rates. Evangeline Credit Union Ltd. is exposed to currency risk through its cash accounts and
member deposits. Evangeline Credit Union Ltd. maintains deposits in foreign currencies to service its
member accounts.
(8)
3
17
2010
Rapport
financier
September 30, 2010
Financial instruments
Fair value of financial instruments
The fair value of Evangeline Credit Union Ltd.'s financial instruments are derived using the valuation methods
and assumptions described below. The estimated fair values disclosed do not reflect the value of items that
are not considered financial instruments, such as property and equipment. Since many of Evangeline Credit
Union Ltd.'s financial instruments lack an available trading market, the fair values represent estimates of the
current market value of instruments, taking into account changes in market rates that have occurred since their
origination. Due to the estimation process and the need to use judgment, the aggregate fair value amounts
should not be interpreted as being necessarily realizable in an immediate settlement of the instruments.
The following methods and assumptions were used to estimate the fair value of financial instruments:
(a)
the fair values of cash and equivalents, current accounts, accrued loan interest, real estate held for
resale, accrued interest payable and other liabilities are assumed to approximate book values due to
their short-term nature.
(b)
The amortized cost of floating rate loans and mortgages and members deposits are assumed to equal
book value as the interest rates automatically reprice to market.
(c)
The amortized cost of fixed rate loans, mortgages and fixed rate deposits is determined by discounting
the expected future cash flows of these loans and deposits at the current market rates for products
with similar terms and credit risks.
(d)
The fair value of available for sale investments cannot be reliably measured, therefore, they will be
recorded at cost.
The entity classifies financial instruments using the following criteria:
Loans, mortgages and receivables
Evangeline Credit Union Ltd. classifies non-derivative financial assets resulting from the delivery of cash or
other assets by a lender to a borrower in return for a promise to repay on a specified date or dates, or on
demand, usually with interest, as loans, mortgages and receivables.
Held-to-maturity investments
Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments and
fixed maturity that the entity has the intention and ability to hold to maturity.
Available for sale
Available for sale financial assets are those non-derivative financial assets that have been so designated by
management or have not been classified as loans, mortgages, receivables or held to maturity investments.
(9)
2
18
Financial
Report
September 30, 2010
3
Loans and mortgages
Impaired
Loans
$
(included
in total)
Total
$
Personal
Business
Mortgage
Lines of credit and overdrafts
Student loans
League Savings and Mortgage
2010
2009
Net
$
Net
$
Specific
Provision
$
9,571,933
17,326,271
15,657,081
8,372,956
1,366,518
1,648,014
67,773
2,638,804
74,299
72,760
-
50,870
1,233,129
46,119
72,760
16,000
-
9,521,063
16,093,142
15,610,962
8,300,196
1,350,518
1,648,014
10,607,743
14,774,032
16,138,656
7,286,576
1,401,162
711,257
53,942,773
2,853,636
1,418,878
52,523,895
50,919,426
Continuity of provision for impaired loans
2010
$
Provision for impaired loans - Beginning of year
Add: Recoveries during the year
Less: Amounts written off during the year
1,329,665
8,740
128,500
(48,027)
Provision for impaired loans - End of year
1,418,878
2009
$
1,284,258
11,623
249,813
(216,029)
1,329,665
Mortgages and other loans
In 2010, mortgages are secured by realty mortgages with an average interest rate of 5.386%. Personal and
business loans have an average rate of 6.585%. Line of credits and overdrafts have an average rate of 6.127%
and 11.137%, respectively. Other loans are priced at market rates unless circumstances warrant special
considerations. The loans are secured by an assignment of specific call deposits and share capital of the
borrower and other specific assigned securities.
Evangeline Credit Union Ltd.'s prime lending rate
Evangeline Credit Union Ltd.'s prime lending rate is set by the Board of Directors based on the prime interest
rate of other chartered banks in Canada. The prime rate at September 30, 2010 was 3.00% (2009 - 2.25%).
(10)
3
19
2010
Rapport
financier
September 30, 2010
4
5
2010
2009
Cost
$
Accumulated
amortization
$
Net
$
Net
$
Land
36,289
Buildings
1,399,728
Furniture, equipment and computers 1,203,167
Pavement
60,526
587,579
962,924
10,013
36,289
812,149
240,243
50,513
36,289
848,179
172,998
12,131
2,699,710
1,560,516
1,139,194
1,069,597
Investments
Held to maturity:
Liquidity reserve deposit
Available for sale:
Credit Union Central shares
League Savings & Mortgage
shares
League Data shares
Co-operative membership
Provincial Student Loan Reserve
Fund
2010
Amortized
Cost
$
2009
Amortized
Cost
$
3,874,000
3,546,000
2010
Fair
Value
$
Cost
$
Fair
Value
$
2009
Cost
$
658,025
658,025
638,859
638,859
66,944
30,820
2,291
66,944
30,820
2,291
66,944
30,820
2,291
66,944
30,820
2,291
-
-
521
521
758,080
758,080
739,435
739,435
Total investments
4,632,080
4,285,435
In order to meet the Credit Union national standards, Evangeline Credit Union Ltd. is required to maintain on
deposit in Central Credit Union of Prince Edward Island an amount equal to 6% of prior year assets. The
deposit bears interest at a variable rate throughout the year.
(11)
2
20
Financial
Report
September 30, 2010
No market exists for shares of Credit Union Central of Prince Edward Island except that they may be
surrendered on withdrawal from membership for proceeds equal to the paid-in value, to be received in
accordance with a Evangeline Credit Union Ltd. by-law providing for the redemption of its share capital.
All other equities with no specified maturity date are classified as available for sale. As there is no market
value for the shares in Co-operatives, the fair value of the shares is estimated at amortized cost.
6
Member deposits
Share accounts (notes 8 and 12)
Savings and Plan 24
Chequing accounts
Term deposits
RRSP and RRIF
2010
$
2009
$
11,537,099
10,013,123
13,469,653
8,385,941
19,147,074
9,686,463
9,479,551
12,625,677
9,012,977
18,486,825
62,552,890
59,291,493
Share accounts include the $5 membership share plus individual member deposits.
Share accounts pay a dividend return at the discretion of the Board of Directors. Privileges of the shares are
under the authority of the Board of Directors. The dividend rate declared and paid for 2010 was 1.50% (2009
- 1.75%) based on the average minimum monthly share account balance.
Savings and Plan 24 are on a call basis and earn a variable interest rate ranging from 0.15% - 2.75% and
0.15% - 0.50%, respectively.
Chequing accounts are on a call basis and pay interest at Evangeline Credit Union Ltd.'s stated rates.
Non-redeemable term deposits for periods of one to five years generally may not be withdrawn prior to
maturity, without penalty. Redeemable term deposits may be withdrawn, subject to an interest reduction.
Withdrawal privileges on all deposit accounts are subject to the overriding right of the Board of Directors to
impose a waiting period.
Fixed term deposits bear interest at various rates ranging from 0% - 5% and extend for a term of up to 5 years.
RRSP and RRIF
Concentra Financial is the trustee for the registered savings plans offered to members. Under an agreement
with the trust company, members' contributions to the plans, as well as income earned on them, are deposited
in the credit union. On withdrawal, payment of the plan proceeds is made to the member, or the parties
designed by them, by the credit union, on behalf of the trust company. RRSP and RRIF term deposits bear
interest at various rates.
(12)
3
21
2010
Rapport
financier
September 30, 2010
7
Contingent liability
Outstanding guarantees on behalf of members
8
2010
$
2009
$
284,500
333,500
Share accounts
Unlimited membership shares, with a par value of $5 each, non-transferable, redeemable by Evangeline Credit
Union Ltd., retractable by shareholders subject to Evangeline Credit Union Ltd.'s right to suspend redemption,
if the redemption would impair the financial stability of Evangeline Credit Union Ltd., for a period of up to
twelve months by Board resolution and indefinitely by Board resolution with the approval of the Credit Union
Deposit Corporation. Dividends are payable at the discretion of the Board of Directors.
9
Income taxes
Evangeline Credit Union Ltd. has an unrecognized future income tax asset of $23,468 (2009 - $25,212). The
unrecognized future income tax benefit is as a result of $195,563 (2009 - $200,892) of temporary differences
available to reduce taxable income in future years.
10 Line of credit availability
In 2010, Evangeline Credit Union Ltd. had an approved line of credit with Credit Union Central of Prince
Edward Island of $6,000,000. As of September 30, 2010, the line of credit was not being utilized.
11 Related party transactions
Evangeline Credit Union Ltd. provides financial services to members. These members hold the loans and
mortgages and member deposits and therefore the interest income and interest expense are transacted in the
ordinary course of business with these members.
(13)
2
22
Financial
Report
September 30, 2010
12 Regulatory equity
Evangeline Credit Union Ltd. has agreed to maintain an equity level equal to 5% of the total assets.
In accordance with the recommendations of the Canadian Institute of Chartered Accountants related to the
financial statement presentation of financial instruments, the ownership shares are presented in the balance
sheet as financial liabilities. At September 30, 2010, the equity level for regulatory purposes is as follows:
2010
$
2009
$
Ownership shares
Members' equity
27,650
4,842,231
28,105
4,399,994
Total regulatory equity
4,869,881
4,428,099
68,266,224
64,555,827
Total assets
Equity level
7.10%
(14)
3
23
2010
6.86%
Rapport
financier
September 30, 2010
13 Interest rate sensitivity
The following table sets out assets and liabilities on the earlier of contractual maturity or repricing date. Use
of the table to derive information about the company's interest rate risk position is limited by the fact that
certain borrowers may choose to terminate their financial instruments at a date earlier than contractual
maturity or repricing dates. For example, notes receivable are shown at contractual maturity but certain notes
could prepay earlier.
Assets
Current accounts
Effective interest rate
Investments
Loans and mortgages
Lines of credit and overdrafts
League Savings & Mortgage
reverse MOP program
Accrued loan interest receivable
Prepaid expenses
Income taxes receivable
Under
1 year
$
Over 1 to
5 years
$
7,883,383
1.00%
3,874,000
2.00%
6,963,519
5.46%
8,372,956
6.18%
34,728,003
6.13%
-
118,034
3.66%
-
1,529,980
4.64%
-
1,730,732
-
1,730,732
7,883,383
-
-
758,080
4,632,080
-
42,502,925
-
8,372,956
-
-
1,648,014
-
163,381
76,674
94,364
22,521
1,139,194
163,381
76,674
94,364
22,521
1,139,194
811,403
3,984,946
68,266,224
-
636,780
51,015,791
-
-
11,537,099
-
-
492,905
378,198
492,905
378,198
-
-
-
4,842,231
-
4,842,231
-
44,785,377
17,130,733
-
6,350,114
68,266,224
(17,573,485)
19,127,250
811,403
36,257,983
Liabilities and surplus
Member deposits
Share deposits
Accrued interest payable
Other liabilities
33,248,278
1.02%
11,537,099
1.50%
-
17,130,733
3.47%
-
Interest rate sensitivity gap
Total
$
-
27,211,892
Total liabilities and surplus
Not interest
rate sensitive
$
-
Total assets
Undistributed earnings
Over
5 years
$
811,403
5.57%
-
(2,365,168)
-
As at September 30, 2010, Evangeline Credit Union Ltd.'s net interest spread was 3.67% (2009 -3.92%). The
net interest spread is calculated by expressing the difference between (a) the percentage of income earned on
the average year-end interest bearing assets and (b) the percentage of costs of capital and borrowings on the
average year-end interest bearing liabilities.
(15)
2
24
25
Statistiques
Statistics
Capitaux propres
Equity
Les capitaux propres mesurent de la stabilité de la Caisse populaire. Il s’agit de la valeur nette réelle de la
Caisse populaire et appartient aux membres. Plus l’organisation possède de capitaux propres, plus elle est
stable et rentable. Nous continuons à accroître nos capitaux propres au-delà de la norme nationale de
5 pour cent de l’actif. Depuis le 30 septembre 2010, le niveau de nos capitaux propres se situe à 7,09
pour cent, représentant 4 842 231 $.
Equity is the
Equité / Equity
Standard
measurement of the
7.50%
Credit Union’s stability.
It is the actual net
7.00%
worth of the Credit
Union and is owned by
6.50%
its members. The more
6.00%
equity an organization
has, the more stable
5.50%
and profitable it is.
We continue to grow
5.00%
our equity past the
national standard of
4.50%
5.0% assets. As of
September 30th, 2010,
4.00%
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
equity stands at 7.09 %
A nnée / Y ear s
or $4,842,231.
Croissance
Growth
Millions
Dépôts des propriétaires / Owner Deposits
Prêts des propriétaires / Owner Loans
Actifs / Assets
$75
$60
$45
$30
$15
$0
La croissance
• est une mesure de succès;
• est le reflet du degré d’acceptation de la Caisse populaire
dans la communauté;
• est le reflet du niveau de satisfaction des membres quant
aux services offerts.
Growth is
• a measurement of success
• how well the Credit Union is accepted in the community
• how satisfied the members are with the service offered
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
26
Statistiques
Statistics
Parts
$2,123,737
$11,537,099
Savings
REÉR &
FERR
Dépôts à
terme
$8,385,941
Term
Deposits
Shares
Hypothèques
$17,965,645
Mortgages
$9,571,933
Personal
Loans
Comptes
de chèques
RRSP &
RRIF
$13,371,157
Prêts
étudiants
Prêts
commerciaux
$16,665,721
Commercial
Loans
27
2010
Chequing
Accounts
$1,366,518
Marges de
crédit
Student
Loans
$8,372,956
Lines of
Credit
Total des prêts
Total Loans
Prêts
personnels
$19,147,074
Total des dépôts
Total Deposits
Épargnes
Tel que prévu, l’économie mondiale a poursuivi sa lancée en 2010
à la suite de la profonde récession de 2007-2008. Les pays en
développement tels que la Chine et le Brésil ont mené le
rebondissement grâce à une forte croissance. Parmi les pays
développés, le Canada a connu l’un des meilleurs rendements au
monde. Le redressement aux États-Unis et en Europe cependant a
été relativement plus modeste.
Rod MacInnis
CGA, CFP
[email protected]
888-5530
854-2699
Après une forte augmentation en 2009, les marchés du Canada et
des États-Unis ont affiché de faibles gains jusqu’à présent en 2010,
le Canada étant en tête de liste. La prochaine étape du
redressement du marché se produira seulement lorsque les
investisseurs auront bon espoir que le redressement économique
sera réel et durable. Il faudra s’armer de patience.
Alors que le pire de la crise financière semble passé, l’économie
mondiale fait toujours face à des défis, et une reprise économique
complète prendra du temps. Le meilleur moyen pour un
investisseur de composer avec l’incertitude économique est de
concentrer sur ses objectifs financiers à long terme et de demeurer
fidèle à un plan d’investissement bien diversifié et solide, fait sur
mesure selon sa situation individuelle. Si les marchés financiers
suivent le parcours de redressements antérieurs, le rendement, au
cours des prochaines années, devrait être intéressant.
As expected, the global economy continued its recovery in 2010
following the severe recession of 2007/08. Developing countries
such as China and Brazil have led the rebound with strong growth.
Among developed countries, Canada has been one of the world’s
better performers. The turnaround in the U.S. and Europe,
however, has been relatively more modest.
After a strong advance in 2009, the markets in Canada and the U.S.
have posted small gains thus far in 2010 with Canada leading the
way. The next phase of the market recovery will only occur as
investors become more confident that the global economic
recovery is real and sustainable. Patience will be required.
While the worst of the credit and financial crisis appears to be
over, the global economy still faces challenges and a full economic
recovery will take time. The best way for an investor to deal with
economic uncertainty is to focus on their long-term financial goals
and stay true to a sound, well diversified investment plan tailored
to their individual situation. If the markets follow the path of
previous recoveries, returns over the next few years should be
positive.
28
Prix
Volunteer
bénévole de l’année
of the Year Award
This award honours and recognizes community volunteers for their dedication
to their community and achievements in cooperative activity.
Engagées
envers nos
jeunes
Pompiers de Tyne Valley
Tyne Valley Fire Department
2009
Ce prix rend hommage et reconnaît les bénévoles du milieu pour leur
dévouement envers la collectivité et leurs réalisations en activité coopérative.
Committed
to our
youth
A program designed to educate students on the notion of savings and to respect the value of money. Students enhance their math, teamwork and leadership skills. They learn at a young age how to prepare for their financial future.
En arrière de gauche à droite / Back row left to right : Myranda Kelly, Michelle Arsenault, Natalie Leblanc, Zoé Arsenault, Liane Gallant,
Jessica Gallant & Shana O’Brien
Rang en avant de gauche à droite / Front row left to right : Krista Gallant, Amy Gallant, Diane Irakoze & Robyn Gallant
29
2010
Comité dépôts étudiants
Student Deposit Committee
Un programme conçu pour éduquer les élèves et leur apprendre la notion d’économiser et de respecter la valeur de
l’argent. Par l’entremise de ce programme, les élèves en apprennent davantage au sujet des mathématiques, du
travail en équipe et du leadership. Ils se préparent pour leur avenir financier dès un jeune âge.
Investing
in our
youth
Investir
dans nos
jeunes
Récipiendaires de bourses
Scholarship recipients
2010
Curtis
Arsenault
Cori-Ann
Arsenault
Brittany
Craig
Donald
Ford
Cleve
McNeill
Micah
Melissa
Gallant
Justin
Murphy
30
Brown
Natalie
Gallant
Karen
Noye
Provincial Event
Commanditaire
sponsor provincial
2
3
2010
4
relais pour la vie
1
Comme commanditaire provincial en 2010, le système des
Caisses populaire de l’Île a contribué
60 000 $ au Relais pour la vie.
As provincial event sponsor in 2010, the PEI Credit Union
system contributed a total of $60,000 to the Relay for Life.
5
2. En 2010, l’équipe de la Caisse populaire Évangéline, Race for the Cure, a ramassé 6 244 $ pour Relais pour la vie. Un GROS
MERCI à tous ceux qui ont appuyé nos activités de financement. / In 2010, Evangeline Credit Union’s Team, Race for the Cure,
raised $6,244 for Relay for Life. A BIG THANK-YOU to everyone who supported our fundraising efforts.
3. Gagnantes du gros lot de 500 $ / Winners of the $500 jackpot prize : Diane Richard (employée/employee), Julia Arsenault &
Doris Arsenault (gagnantes/winners) & Diane McInnis (employée/employee).
4. Les Caisses populaire de l’Île ont été reconnus à l'échelle nationale en 2010. Le Prix du championnat de la communauté est
en reconnaissance de l'implication de la Caisse populaire Évangéline à l’évènement Relais pour la vie de la Société canadienne
du cancer. / PEI Credit Unions were recognized nationally in 2010. The Community Champion Award is in recognition of
Evangeline Credit Union’s involvement in the Canadian Cancer Society’s Relay for Life event.
5. Gagnante du tirage 50/50 / Winner of the 50/50 draw: Desoray Casey 1/2 $5,434 & Diane Richard (employée/employee).
31
2010
relay for life
1. Membres de l’équipe de la Caisse populaire Évangéline / Members of Evangeline Credit Union’s Team: Sheila-May Muttart,
Diane McInnis, Freda Perry, Kelly MacDougall, Yolande Richard, Mark Campbell, Corinne Arsenault, Diane Richard & Alfred
Arsenault.
make
your own
an important purchase presents
moves When
itself, a personal loan can provide a
convenient financing solution.
Whether you’re thinking about
financing a vehicle, renovating or
buying a home, or debt consolidation
Evangeline Credit Union is here for you.
With our products, services and
honest advice, we’ll empower you
to make wise financial decisions.
Wellington
Tyne Valley
854-2595
831-2900
Votre argent/Your Money
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Service de chèque/Chequing services
Compte de chèque personel/
Personal chequing account
Forfait MasterPlan Packages
Compte Prime Account
Compte de chèque américain /
US chequing account
•
•
•
•
•
•
•
Comptes d’épargnes/ Savings accounts
Dépôts étudiants / Student Deposits
Compte d’épargne mensuel /
Monthly Savings Plan
Compte d’épargne libre d’impôt /
Tax-Free Savings Account
Services électroniques/Electronic Services
Guichet automatique / ATM
Carte de débit / Debit card
Global Payment MasterCard
Points Choice Rewards Points
•
•
•
•
•
•
•
Cartes de crédit MasterCard
Credit Cards
TéléService / TeleService
En ligne MemberDirect online banking
Service bancaire mobile/
Mobile Banking
Courtage enligne Credential Direct online
Brokerage
Chèques de voyage/
Travellers’ Cheques
Coffret de sécurité /
Safety Deposit Boxes
Dépôts de nuit / Night Deposit
Bourses d’études / Scholarships
Paiement de factures / Bill Payments
Chèques certifiés / Certified Cheques
Mandats de poste / Money Orders
Préparation d’impôts sur le revenue /
Income Tax preparation
Votre financement /
Your Financing
Plan 24
Services supplémentaires / Additional services
•
Continue….
Services supplémentaires / Additional services
Prêts & hypothèques/Loans & Mortgages
Prêts personnels / Personal Loans
Hypothèques / Mortgages
Lignes de credit / Lines of Credit
Prêts sur valeur domicile /
Home Equity Loans
Prêts d’efficacité énergétique /
Energy Efficient Loans
Prêts REERs / RRSP Loans
Prêts étudiants / Student Loans
Votre avenir / Your Future
•
•
•
•
•
•
•
•
•
Investissements / Investments
Dépôts à terme / Term Deposits
REER / RRSP
•
•
•
•
Continue…..
Assurances / Insurances
Assurance marge de credit /
Line of Credit Insurance
Protection pour petite enterprise /
Small Business Insurance
Assurance voyage / Travel Insurance
Assurance protection du solde de la carte
de crédit / Credit Card Balance Protection
Insurance
Gestion des finances / Financial Management
Offert par Stratégies financières Credential /
Provided by Credential Financial Strategies
•
•
•
Gestion de l’argent / Money Management
•
Planification des études post-secondaire /
Education Planning
•
•
•
Planification d’investissements /
Investment Planning
Planification de la retraite /
Retirement Planning
Planification de la succession /
Estate Planning
Plans de santé et dentaire /
Health & Dental Plans
Votre entreprise/Your Business
FERR / RRIF
Services commerciaux / Commercial Services
RÉÉÉ / RESP
Fonds mutuels / Mutual Funds
Assurance vie / Credit Life
Assurance invalidité / Credit Disability
Perte d’emploi / Loss of Employment
Maladie critique / Criticall Illness
32
•
•
Prêts commerciaux / Commercial Loans
•
•
Business MasterCard
•
•
Marges de crédit commerciaux /
Commercial Lines of Credit
Programme pour marchands /
Merchant Program
Service de la paie / Payroll services
Agri-investissement / AgriInvest

Evangeline Credit Union Ltd. - Évangéline

Transcription

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