281 University Avenue 10 Kinlock Road Charlottetown, PE C1A 4M3 Stratford, PE C1B 1R1 Tel: (902) 892-4107 Tel: (902) 569-6900 Fax: (902) 368-3567 Fax: (902) 569-6901 www.metrocreditu.com METRO METRO 1 METRO CREDIT UNION LIMITED • 20092010 ANNUAL REPORT 1 Board of Directors .................................................................................2 President’s Report .................................................................................4 General Manager’s Report ....................................................................5 Auditor’s Report ....................................................................................7 Balance Sheet .......................................................................................8 Statement of Undistributed Earnings .....................................................9 Statement of Income And Expense .....................................................10 Cash Flow Statement ..........................................................................11 Notes to Financial Statements .....................................................12 – 23 2 METRO CREDIT UNION LIMITED • 2010 ANNUAL REPORT Board Of Directors Barry Brown Corey Tremere James MacDonald Norm Finlayson Foch McNally Gerard Wood Sharon Honisch Wendell Dawson Ellen Locke Doiron Vice-President Bernard Keefe President Robert Perry Secretary METRO CREDIT UNION LIMITED • 2010 ANNUAL REPORT 3 Dr. David Ashby, QEH Foundation Annual Campaign Chair, accepts a cheque for $6,441 from Doug Bridges, Metro Credit Union and Shanna Doiron, Stella Maris Credit Union. PEI Credit Unions all participate in the iCare program. For every transaction on your Metro Credit Union MasterCard, we make a donation to the QEH Foundation on your behalf, through the i Care program. Over the years Metro has donated thousands of dollars to the foundation, and now we are able to increase our contribution substantially through the iCare program, which is attached to our credit cards. Get your MasterCard today and help build healthier communities across PEI. 4 METRO CREDIT UNION LIMITED • 2010 ANNUAL REPORT President’s Report It is my pleasure to report to you on behalf of the board of directors of Metro Credit Union Ltd., for the year ending September 30, 2010. As financial co-operatives, credit unions throughout the world operate from the common philosophy of (1) democratic structure, (2) service to members, and (3) social goals. This common thread sets our financial system apart from others within the international marketplace. Metro Credit Union strives to be a key player within the community, a provider of top rate financial products and services, a responsible corporate citizen, and a significant employer. Your credit union continues its commitment to countless community groups and organizations. The board of directors is especially proud of Metro’s partnership with Camp Gencheff, which is now entering its seventh year. I would like to formally acknowledgeand congratulate our employees who throughout the year, continued their drive to fundraise, 96.0 108.2 112.3 125.0 135.0 and commit their personal time to the spring clean up at the camp. Staff 150 are also committed to the Canadian Cancer Society’s Relay for Life, and 120 in April of 2010, Metro Credit Union received a Community Champion Award, recognizing the significant contribution towards eradicating cancer 90 here on Prince Edward Island. Metro continues its success despite low interest rates and a slowing 60 economy. The asset base has grown steadily to $173,291,207 and 30 Metro remains the largest credit union on Prince Edward Island. I am pleased to announce the board has declared a share dividend of 1.50% for 2010. This rate is very competitive in the market place 0 2006 2007 2008 2009 2010 Loans for demand deposits. 129.9 134.5 145.7 151.7 156.7 Your board continues to be active with regular monthly meetings, 150 special meetings for planning and budgeting, as well as several sessions 120 pertaining to the amalgamation of the three Atlantic Centrals into one, which takes place December 31, 2010. 90 Congratulations are in order for our colleague Sharon Honisch for achieving the distinction of Accredited Canadian Credit Union Director. 60 She is one of only two directors on PEI with this distinction, the other 30 being yet another Metro director…Wendell Dawson. The board would also like to recognize the retirement of our General 0 2006 2007 2008 2009 2010 Manager David Burt, who after 31 years of dedicated service will be Deposits leaving December 31, 2010. We wish him all the best. Our owners can be secure in the knowledge that David is leaving Metro’s financial house 135.1 147.7 160.3 167.3 173.3 200 in terrific shape. On a related note, the board is pleased to announce that Bernard Gillis, Manager of Operations, and an employee of 29 160 years, will replace David as General Manager, effective January 1, 2011. 120 In closing I wish to thank all of my fellow directors as well as the management team and loyal staff at Metro, for their dedication and 80 commitment during the past year. 40 Respectfully submitted, 0 2006 2007 2008 2009 2010 Assets ABOVE TABLES STATED IN Bernard Keefe MILLIONS OF DOLLARS. President METRO CREDIT UNION LIMITED • 2010 ANNUAL REPORT 5 General Manager’s Report It is with great pleasure I report to Congratulations to Ray Giddings – 35 you on the operations of Metro Credit years, Adele McGuire – 25 years, Brian Union Ltd., as at September 30, 2010. Gallant – 20 years, Dianne MacDonald – 15 years, Mary Lynn Farrell-Mahar It is with mixed feelings however that and Darlene Young – 10 years, as well I write this report. It is my 31st annual as Tara Gould, Sarah Frid, and Jonathan report and also my final one, as I have Fenton for 3 years of service. announced my retirement effective December 31, 2010. As always, thank you to our board of directors for their continued support Once again we have had a very and a special thank you to our owners successful year, particularly when you for their continued patronage. As I factor in the economic uncertainties enter a new phase of my life, I will be combined with low interest rates. We watching Metro Credit Union’s progress achieved deposit growth of 3.1% and from the sidelines, with intense interest! loan growth of 8.1%, and our equity is Member Loans 2010 now at an all time high of 8.15%. Sincerely, Commercial 24.5% Looking ahead we do foresee Indirect Auto 17.4% challenges in obtaining good loan growth for the next few years, due to Lines of Credit 4.9% economic conditions and increased Farm & Fish 1.3% competition. With that in mind we David Burt have in the last year and will continue Personal 9.4% General Manager this year with a stronger emphasis on marketing and advertising activities, as well as our commitment to community. Cdn. Student Loan 10.6% Mortgages 31.9% We have now completed year six of our partnership with Camp Gencheff, with contributions to the camp so far totaling $120,000 on our way Member Deposits 2010 to a total contribution of $200,000 over ten years. We also produced a new TV commercial to high light our Tax Free Savings Accounts 2.3% Term Deposits & CDRs 34.2% partnership with Camp Gencheff. It RRSP & RRIFs 26.5% airs on CBC television. Metro Credit Union would not have achieved the success we’ve had over the years without our dedicated staff and I would like to recognize the following employees who have reached Savings 8.5% milestones in their careers. Chequing 18.1% Shares 10.4% 6 METRO CREDIT UNION LIMITED • 2010 ANNUAL REPORT In April of this year, PEI Credit Unions were honoured with the National Community Champion Award, presented by the Canadian Cancer Society, in recognition of our efforts to eradicate cancer. PEI Credit Unions are the provincial event sponsor for the annual Relay for Life, with all credit unions participating by putting in teams, volunteering on bank nights, as well as many other fundraising initiatives. The Credit Unions of PEI have committed $200,000 over 10 years in our role as provincial event sponsor, in addition to fundraising. METRO CREDIT UNION LIMITED • 2010 ANNUAL REPORT 7 8 METRO CREDIT UNION LIMITED • 2010 ANNUAL REPORT METRO CREDIT UNION LIMITED • 2010 ANNUAL REPORT 9 10 METRO CREDIT UNION LIMITED • 2010 ANNUAL REPORT METRO CREDIT UNION LIMITED • 2010 ANNUAL REPORT 11 12 METRO CREDIT UNION LIMITED • 2010 ANNUAL REPORT METRO CREDIT UNION LIMITED • 2010 ANNUAL REPORT 13 14 METRO CREDIT UNION LIMITED • 2010 ANNUAL REPORT METRO CREDIT UNION LIMITED • 2010 ANNUAL REPORT 15 16 METRO CREDIT UNION LIMITED • 2010 ANNUAL REPORT METRO CREDIT UNION LIMITED • 2010 ANNUAL REPORT 17 18 METRO CREDIT UNION LIMITED • 2010 ANNUAL REPORT METRO CREDIT UNION LIMITED • 2010 ANNUAL REPORT 19 20 METRO CREDIT UNION LIMITED • 2010 ANNUAL REPORT METRO CREDIT UNION LIMITED • 2010 ANNUAL REPORT 21 22 METRO CREDIT UNION LIMITED • 2010 ANNUAL REPORT METRO CREDIT UNION LIMITED • 2010 ANNUAL REPORT 23 24 METRO CREDIT UNION LIMITED • 2010 ANNUAL REPORT The only one of its kind on Prince Edward Island, Camp Gencheff is a recreational facility for children and adults with special needs. Located at Bellevue Cove in Stratford, the camp includes 22 acres overlooking the Hillsborough Bay, and camping activities include arts and crafts, games, karaoke and dances. Metro staff are especially proud of our partnership with Camp Gencheff. As we enter our seventh year of working with the camp, our contributions so far total $120,000. For more information on programs, registration and