Annual Report Doing more. 2014 to Members Together. View online at noventis.ca Contents 1 Introduction 2 Message from the Board of Directors 4 Message from the CEO 5 How our members benefit 6 Community commitment 7 Filling bellies & building communities 8 Financial services that helps the whole community thrive 9 Building world class dreams in our communities 10 Results Financial Statements 12 Independent Auditors’ Report 13 Summary Consolidated Statement of Financial Position 14 Summary Consolidated Statement of Comprehensive Income 15 Summary Consolidated Statement of Changes in Members’ Equity 16 Summary Consolidated Statement of Cash Flows 16 Note to the Summary Consolidated Financial Statements Noventis Credit Union | 2014 Annual Report to Members Doing More. Together. 1 Welcome to the new Report to Members. Some parts of it might look like your typical annual report but don’t be fooled. Yes, you will still find the familiar charts, graphs and financial statements, but open it up and you’ll find something more. You will find the stories behind the numbers. You will be introduced to the people and their dreams. The community projects. This year, our goal was to create a report that reflects what matters most to you. We wanted to show what having community-based financial services really means. That’s why you might see some familiar faces, in places you recognize. This is what happens when decisions are made close to home by people you know- instead of by strangers in a distant city. We don’t look at life as something that should fit into a convenient formula. Instead, we look at how we can do more. Together. 2 Doing More. Together. Noventis Credit Union | 2014 Annual Report to Members Message from the Board of Directors The Board of Directors are community members who put their names forward to represent your interests. They have terms of 3 years and help set the overall direction of Noventis Credit Union. s a board, our government to re-establish a competitive number one goal is balance between credit unions and the always looking out for big banks. To do that, we are supporting Board of Directors your interests. That’s a new tax credit to counteract the The 12 person Board of what we were elected increased federal tax rate for credit Directors comes from four to do, and it is the key unions. The way we see it is that credit districts (Gimli, Riverton, principle that guides all of our decisions. unions shouldn’t be treated the same as Arborg, Eriksdale) within ABut how does that look in practice? banks because we aren’t the same. the regions we serve. Well, it all starts with a strong And finally, it looks like staying true to Arborg commitment to our communities. the commitment of re-investing money Bragi Simundsson back into our communities- to make It looks like moving forward with the Nolan Sigvaldason them stronger. same bold spirit that built our founding Ashern credit unions. We’ve carried that In 2013/14, our Corporate Social Sandra Falk pioneering spirit forward into plans to Responsibility program provided more Clayton Gibson open a new-concept branch in Selkirk than $170,000 for community projects Marlene Michno in 2015. including school breakfast programs, scholarships and building restorations It also looks like advocating on your Fisher Branch (read more on page 6). Lee Gregory (Chair) behalf when regulations and taxes affect our ability to lend to both the local Finances can seem complex but when Gimli families and the small businesses that you have your communities’ best Paul Cuthbert are the lifeblood of our communities. interests at heart, it provides a strong Ken Krulicki guidepost for decisions – now and well That’s why we are adding our voice into the future. to hundreds of other credit unions Riverton John Sigurdson (Vice Chair) across the country to ask the federal – Board of Directors Jonas Thorarinson Peggy Vigfusson Winnipeg Beach Joanne Warwick (Secretary) Noventis Credit Union | 2014 Annual Report to Members Doing More. Together. 3 Community members 140+ employed 8 Branches Arborg Farm-related accounts Ashern + Eriksdale 600 supported Fisher Branch Gimli Moosehorn Regional business Riverton 550 owners served Winnipeg Beach 22,000+ Members Selkirk Opening 2015 4 Doing More. Together. Noventis Credit Union | 2014 Annual Report to Members Message from the CEO he past year has been marked by a transition from planning to action. As a financial institution, the reality Tis that we are in a more competitive environment than ever before. Regulations are squeezing our ability to create member profits. New technology and new players challenge us to bring more creativity and innovation into the services we offer you and the way we look at, and do business. In short, standing still is not an option. That’s meant many things for you, our members. We built on your ability to bank from This investment has generated an anywhere with the introduction of excellent return on investment for It means we’ve come out with a number the Noventis mobile App, which our membership. In the past year, the of ways to make your experience better complements mobile text banking, new building in Riverton represented and more convenient. e-transfers and online banking. an important investment in that community’s future while a new real It means our business model is estate location in Selkirk meant an sustainable, and we have retained our opportunity to grow and prosper. Executive Team commitment to building and investing in from left to right: our communities. It means your voice is being heard every day – in our branches and through our Kathy Sauerborn It’s why we offer outside-the-box online member satisfaction survey. Your VP of Operations thinking when it comes to how we input is providing the direction to create service members – people like Robyn Philip Bauernhuber an experience that’s better than just Bjornson (featured on page 9). It means VP of Lending and Credit ordinary. our commitment to servicing families, Mark Jeffers farmers and businesses in the region Our team – more than 140 members of VP of Finance and CFO remains strong- something reflected in our communities – are here with your Kevin McKnight our solid growth. best interests at heart. Chief Executive Officer Missing from photo: It means we’ve adopted a diversified We’re working to make your experience a Dick Arnason approach that includes investment in great one – now and well into the future. insurance and real estate – specifically VP Insurance and Real Estate Kevin McKnight, Interlake Insurance and Real Estate. Chief Executive Officer Noventis Credit Union | 2014 Annual Report to Members Doing More. Together. 5 How our members benefit You are the shareholders… You can break free from fees… Share redemption We call it Member Value Pricing We’re redeeming shares. In 2013/2014 the board approved a This program was conceived with one thing in mind: lightening plan to redeem members’ surplus shares over time. the load of fees paid by you – our members. In 2013/2014 we paid out shares to estates, members at retirement age, and common shares to members in Eriksdale and Gimli. It all worked out to a total of $825,251 redeemed Members can have up to 75 per shares and this is how it broke down: cent of their fees rebated under this program. In 2013/2014 $196,000 found its way back into $37,977 members’ pockets. We make it basic common shares redeemed to estates convenient by paying the rebate directly to accounts each month. $345, 513 subscription common shares redeemed to members You belong to a CU that doesn’t take risks with your money… $441,761 Capital requirements surplus shares redeemed to estates There’s no doubt. We face extensive regulation. One of our and members over 65 requirements is that the amount of capital we have to hold is at least 5 per cent of our assets. Last year we exceeded the requirement with a year-end position of 6.32 per cent. It sounds complicated but boils down to one thing: taking precautions by having a strong capital position means your money is safe during market shifts. 6 Doing More. Together. Noventis Credit Union | 2014 Annual Report to Members Community commitment We’re optimistic about the future We believe in supporting the communities we serve. It’s actually The CSR program funds: the cornerstone of our philosophy and mission. So besides • Community renewal our financial services, we are big on volunteering and funding • Cooperative development community projects. • Environmental sustainability The majority of the funding comes through our Corporate Social • Family and social connections • Health and well-being Responsibility (CSR) program. • Youth and education If you see our name on the back of a jersey or on the side of a Zamboni, it’s because we provide sponsorships to sports teams and events too. And, if you’ve attended a local grad recently, you’ll know that we provide bursaries to help teens reach their education dreams. In 2014, we gave more than $170,000 through the CSR program and corporate sponsorships to community events and projects across our member regions. Projects included funding for: • School playgrounds and play structures • Supporting minor hockey teams • Re-roofing a local arena (Ashern) • Riverton Friendship Centre special programming • 13 school breakfast programs • Family and Youth Regional Support Program • Moosehorn Community Club • A Sno Coach Ambulance As well as: • Educational bursaries • Special financing for community projects like a new daycare in Arborg Find out more about the CSR or download an application at noventis.ca/about Noventis Credit Union | 2014 Annual Report to Members Doing More.