2020 Annual Report Contents About Us 1 Board Chair’s Message 2 President and CEO’s Message 4 Coast Capital’s Response to the COVID-19 Pandemic 6 Driving Social Change 7 Financial Highlights at a Glance 8 2020 Performance Against Targets 9 5-Year Financial Overview 10 Management’s Discussion and Analysis 12 Consolidated Financial Statements 61 Corporate Governance—Board of Directors 118 Glossary 135 Corporate Information 139 About Us Coast Capital Savings Federal Credit Union (Coast Capital) is Canada’s largest credit union by membership and B.C.’s first federal credit union. Owned by more than 594,000 members, Coast Capital extend our legacy as a financial cooperative to empower offers personal and business banking and investment them on their journey towards financial well-being, so services across Canada digitally, by phone and through we can help build a better future for Canadians at large. our 51 branches in the Metro Vancouver, Fraser Valley, Vancouver Island and Okanagan regions of British Coast Capital is part of a community of leaders who are Columbia. setting the standard for making positive social contribu- tions by balancing profits with purpose. As a Certified For 80 years, we have been playing an essential role B Corporation and Imagine Canada Caring Company, in making a positive difference in the lives of each of we commit to invest ten per cent of our budgeted our members by unlocking their financial opportun- bottom line in a wide range of community organiza- ities. With trusted and personalized advice and a broad tions and causes. In 2020, this equaled $3.9 million. We suite of banking products and financial services, we’re also received recognition for our commitment in making enabling our members to save, spend and invest with Coast Capital a great place to work through prestigious confidence at every stage in life. Today, as many indi- business accolades, like the B.C. Top Employer Award, viduals, families and businesses are facing economic Canada’s Best Managed Companies and Canada’s Most and social challenges and inequalities, we are looking to Admired Corporate Cultures™ Hall of Fame designation. Meet our subsidiaries In addition to our day-to-day banking products for our personal and business members, Coast Capital and its subsidiaries offer additional financial services that allow them to save, spend and invest with confidence at every stage in life. Investment and financial Life and disability insurance Commercial and industrial planning to get the most out products to help you and equipment leasing, auto leasing of your hard-earned savings. your business plan for and financing solutions to the unexpected. launch and grow your business. 2020 Annual Report 1 Board Chair’s Message 2020 was a year like no other. COVID-19’s financial, health and social impacts on the personal and professional lives of our membership and our communities were broad and deep, changing how we interacted and undertook our daily activities. Working toward a meaningful recovery Councils, Youth Education Awards, Youth Interns Undoubtedly, the pandemic’s economic impact made program and collaborations with community partners. financial security top of mind for many people. In these As a key supporter of the Youth Futures Education Fund challenging times, many households and businesses (investing in the educational success of B.C. youth who faced income uncertainty and had to dip into their have aged out of government care), the United Way of savings to sustain themselves. Coast Capital helped the Lower Mainland presented Coast Capital with the guide our members to receive crucial financial aid Local Love Award at the 2020 Community Spirit Awards through our broad suite of products and services and celebration, shining a spotlight on our leadership in facilitated access to government relief programs and community involvement. funds for those facing financial hardship. Across the country, non-profit organizations, charities This past year also demonstrated the purposeful role and small businesses have suffered under the finan- that financial institutions play in supporting recovery. As cial impact of COVID-19, facing lost revenue, layoffs a member-owned financial cooperative, Coast Capital and disruptions to essential community services. To has a responsibility and commitment to step up and lead ensure community organizations and local businesses in a meaningful way by improving the financial potential remained viable and continued to deliver the support of every person and business we serve. We want people that Canadians rely upon, Coast Capital launched the in our communities to feel confident and well-informed Coast Capital Community Relief Fund. Through the fund, to spend, save and invest in a way that provides them $300,000 was granted to non-profit and charitable with financial security. We believe that by focusing on organizations to help them maintain operations and our members’ financial well-being, we can also help to support an increased demand for their services. We also build a better future for Canadians at large. leveraged this fund to help small business members who found themselves in need of financial support due to Supporting community resilience COVID-19 related challenges. Here at Coast Capital, we have a long history of supporting our local communities. Support from our Our credit union has been a strong supporter of local members has allowed us to boost our social contribu- food banks for many years. To address critical food tions through our employee volunteer program and by shortages caused by COVID-19, we pledged $100,000 investing approximately ten per cent of our budgeted to support food banks in B.C., Alberta and Ontario. While bottom line directly back into the communities where social distancing also changed how we volunteered our members live and work. Our roots and values as a in 2020, it didn’t change our employees’ dedication to financial cooperative, as recognized by our B Corp and giving back. In 2020, our employees gave more than Imagine Canada Caring Company status, provide us with 5,550 hours of their time to support non-profit organiza- a solid foundation to shape the work we do each year in tions. In recognition of this dedication, our Help Heroes fostering strong and resilient communities. Employee Volunteer Program was honoured with the 2020 Social Responsibility Award from the Canadian Coast Capital’s community investments are focused Credit Union Association. on providing opportunities to young Canadians to lead, learn and succeed through our Youth Community 2 Coast Capital Savings Federal Credit Union Governing through change The Board of Directors has the responsibility for the governance of the credit union and ensuring Coast Capital successfully navigates the challenges of the rapidly changing financial services industry. During the year, Coast Capital remained focused on the financial well-being of our members and evolved the way we meet member needs. We progressed on key strategic initiatives and technology investments to set Coast Capital up for national success in the years to come. We focused on enhancing our members’ income growth and advocating positive social change by grounding ourselves in the best of who we are today while shaping the future of banking. On behalf of the entire Board, I would like to thank our Executive Team for their proactive leadership through uncertainty and applaud the 1,877 staff who have worked diligently to safely deliver access to banking services to our members during this difficult time. I would also like to offer a heartfelt thanks to our members for continu- ing their relationship with Coast Capital and allowing us to partner with them as a trusted advisor. Bob Armstrong Chair, Board of Directors 2020 Annual Report 3 President and CEO’s Message 2020 marked Coast Capital’s 80th anniversary as a credit union—a phenomenal milestone for our members, employees and communities, all of whom have helped shape our success over the decades. Since our beginning, this credit union has played an essential role in empowering our members in their journey towards financial well-being. 2020 was a defining moment in our credit union jour- Advancing our banking experience ney as our society and industry continued to evolve and At the start of the pandemic, we adapted quickly to our members’ needs and consumer behavioiurs also provide and support members with access to our exten- continued to shift. As many Canadians face economic sive products, services and trusted advice in-person, and social challenges, we extended our legacy as a digitally and over the phone. In addition to our own member-owned cooperative with a goal to improve Member Financial Relief Program, we worked closely the financial potential of every person, partner and with provincial and federal governments to facilitate fast community we serve, and to help build better futures and convenient access to their support initiatives, such together. as the Canada Emergency Business Account (CEBA) and the Canada Emergency Wage Subsidy (CEWS). Maintaining financial resilience As an essential service, we had to find new and effect- Guided by the advice and direction of provincial and ive ways to connect with one another and our members. federal health authorities, we also implemented health Although economic pressures were felt everywhere, as and safety precautions at every Coast Capital location individuals, families and businesses coped with difficult to protect employees and members, while successfully realities, our purpose-driven business model has proven maintaining essential operations. its strength in the face of uncertainty and economic downturn. With our long-standing efforts to build and Throughout the year, we continued to make significant maintain financial and operational resilience, we were investments in Coast Capital’s infrastructure and tech- well-positioned and well-capitalized to weather the nology. We enhanced our remote and award-winning challenges ahead and provided much-needed support digital banking platforms and industry-leading finan- to our members, employees and community partners.