2015Annual Report Making banking easier at every step. © BlueShore Financial Credit Union 2015 Annual Report of BlueShore Financial Credit Union. TABLE OF CONTENTS Leadership Viewpoints 3 Easy to do Business With 4 Achievements & Advancements 5 Celebrating 75 Years 6 Advancing Growth & Profitability 7 Report of the Independent Auditor 8 Financial Results & Message to Members 9 Accountability & Transparency 10 © BlueShore Financial Credit Union Leadership Viewpoints Message from Board and Management Chris Catliff, President When we ask clients what they need more of, it’s often not more money, it’s more and CEO, and Dave time. We are all more time-starved than ever before. This is why BlueShore Financial Davenport, Chair, Board continues to introduce new services to save time and increase convenience, while of Directors, in the new remaining true to our commitment to develop long-term relationships to improve BlueShore Financial our clients’ overall financial well-being. branch in Edgemont Village, North Vancouver Through client research you’ve told us that “being easy to do business with” is a priority. We achieve this by combining easy-to-use mobile and digital solutions with our team of trusted advisors to make which opened in fall 2015. the complex, simple; the routine, convenient; and the time-consuming, streamlined. In addition to launching new online and mobile services for our clients in 2015, we exceeded financial objectives reaching $4 billion in Assets Under Administration, achieved robust growth in total loans and deposits, and reduced loan delinquency to a mere 8 basis points, the lowest level in our history. For 75 years we have put our clients first, building a stable, profitable, award-winning credit union along the way. We have a rich history of investing locally in BC, from our early days in the ship- building community to today, where we serve a membership base that extends from the North Shore to the Sea-to-Sky, and across Vancouver, Burnaby and the Lower Mainland. We look forward to the next 75 years of progress, innovation and helping our clients achieve financial wellness. Sincerely, Dave Davenport, Chair, Board of Directors Chris Catliff, President and CEO © BlueShore Financial Credit Union 3 Easy to do Business With Our reputation for providing expert advice, personalized service and being easy to do business with continues to grow. We pride ourselves on developing deep client relationships that create a unique experience and provide exceptional value. Each year we survey both our clients and those who don’t bank with us to see how well we’re doing. Our independent survey, conducted by Ipsos Reid, shows we’re on the right track. Clients consistently tell us that we have a positive impact on their financial well-being in many ways as compared to other financial institutions. By combining high-tech with high-touch, we’re By combining high-tech with high-touch, we’re making it even easier to do business with us through making it even easier a combination of deep, trusted relationships and easy, mobile and digital solutions – whether in to do business with us. person, using our mobile app, online banking on your tablet or desktop, or a call to our locally based Solution Centre. As clients increase their use of digital channels to manage their money and conduct their everyday banking, in 2015 we expanded our services to include: ■ Mobile Deposit, a new feature on the BlueShore Financial Mobile Banking app that allows clients to conveniently, quickly and securely deposit Canadian cheques on their iPhone®, iPad® or Android™ device. ■ Interac Flash® enabled Access Cards to allow clients to make contactless payments quickly and conveniently. ■ Improved Business Online Banking capabilities designed to help clients effectively delegate their day-to-day business banking, improve oversight on spending and provide a single integrated view of Business and Personal accounts. ■ Enhancements to our Mobile Banking Apps, including a ‘QuickView’ of account balances without the need to log-in and the convenience of importing contacts from your smartphone if you need to send an Interac e-Transfer payment. Several times a year we ask clients to voice their opinion on various topics through the BlueShore Financial Online Research Panel. In 2015, panelists shared their thoughts on issues such as: investment rental properties, family-financed education, the role of the executor, and mortgages for self-employed business owners. We use this valuable feedback to inform our product and service decisions. © BlueShore Financial Credit Union 4 Achievements & Advancements Refreshed and renewed In April 2015 our newest Financial Spa™ opened inside Edgemont Commons, a stunning multi-use building in North Vancouver’s Edgemont Village community. The new branch updates our community presence extending back nearly 40 years. Our Lonsdale Financial Spa and head office marked its one year anniversary in October. The “West Coast Zen” designed structure continues to gain accolades from clients, visitors and media. The building, landscaping and interior design have all been crafted to provide an environment suited to the delivery of exceptional client service. The building also includes four retail spaces, and this year welcomed Cook Culture to their first North Shore location. Delivering an exceptional advisory experience We gained increasing recognition as a provider of financial planning expertise and highly personalized service. Business in Vancouver named BlueShore Financial one of the biggest financial planning firms in Metro Vancouver and our advisors were regularly featured in local and national publications including We gained increasing The Globe and Mail, BC Business, Business in Vancouver and The Vancouver Sun, providing commentary recognition as a provider and advice on a wide range of financial and investment topics. of financial planning Embracing our communities expertise and highly Building stronger communities remained a top priority for us in 2015. We proudly returned as personalized service. presenting sponsor of the Vancouver Sun Run, an iconic local event fostering physical and community wellness. Through the associated Shoe Renu program we collected over 500 pairs of shoes for those in need. Rounding out our support of physical wellness events was sponsorship of the Vancouver Triathlon, the BlueShore Financial Spirit of the Shore Half Marathon and the Whistler Half Marathon. Beyond financial support, Supporting local arts and culture ensures our communities remain vibrant and dynamic. In 2015 playing an active BlueShore Financial continued its support for Capilano University’s BlueShore Financial Centre for role as a volunteer or the Performing Arts, Bard on the Beach Shakespeare Festival, Cornucopia in Whistler and the “Music in the Gallery Series” by the Gordon Smith Gallery of Canadian Art. New this year was support of participant is part of our Family Services of the North Shore’s inaugural Beer by the Pier fundraiser, the Audain Art Museum community commitment. in Whistler and #dinnerpartyYVR, an annual event building connections between communities, We encourage staff to chefs, and charities. We also continued to showcase local artists and their works in our Financial volunteer for causes that Spas and our “Arts in View on Lonsdale” display at BlueShore Centre. matter to them through our “Making Waves” Applauding top talent program, which provides Our success is a direct result of the passion and commitment of our employees. They are a remarkably employees with one hard-working and talented team focused on delivering exceptional service to our clients. Our strong corporate culture and performance were nationally recognized by Waterstone Human Capital as one paid day off a year to of “Canada’s 10 Most Admired Corporate Cultures” and by Aon Hewitt as a “Best Small and Medium volunteer, plus donations Employer in Canada” for the fifth consecutive year. to their chosen causes. Through our 2015 Employee Opinion Survey, staff voiced their opinions on what it’s like to work at BlueShore Financial. More than 90% of staff rated us highly for senior leadership taking action to position our organization for long-term success, our reputation in our local community, and for being proud to be part of the organization. Additionally, it’s clear that our staff value the work culture at BlueShore Financial, as nearly 25% of our new hires in 2015 came from employee referrals. © BlueShore Financial Credit Union 5 Celebrating 75 Years We’ve come a long way Since 1941 we’ve helped our members reach their financial goals. And as our in 75 years, but what members’ needs have changed, so have we. BlueShore Financial has evolved hasn’t changed is our from a local, community credit union to a financial boutique so we can focus on unwavering dedication the expert financial planning and wealth management services our clients expect to helping our clients and need in a more complex financial world. achieve financial wellness It all began on May 7, 1941, when BlueShore Financial (then North Shore Community Credit and reach their financial Union and later, North Shore Credit Union) was created. With a mere $10 in capital, ten North goals. Shore residents decided to start their own cooperative credit union to serve the needs of the local ship workers and deep-sea fishermen communities. As membership at the credit union grew, we began to expand our offerings and branch network. By the 1970s, the organization started on a path of innovation to better serve clients’ needs – a strategy we remain committed to today. We were the first BC credit union to bring RRSP products to members. We created a real estate division, built night depository services, and became the first credit union to own an insurance subsidiary (NORCU Insurance Services Ltd.). We were hit with the technology bug in the 1980s and installed the first Automated Teller Machine (ATM) in British Columbia and brought computers into every branch to enable more efficient and automated member service.