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Board & Management Report
Operational Summary
Membership has Rewards
In 2006 the Powell River Credit Union Financial Group continued to reward Relationship with members, staff, and the community. The word is out about the success of the Credit Union and membership continues to grow. In a recent Market Share & Brand Equity study of local residents done by Sensus Research, it was found that the Powell River Credit Union is the market leader in the area with over 28% of residents considering the Credit Union to be their primary financial institution. As a result of that survey and previous strategic planning we have begun an extensive rebranding program of the Credit Union for 2007 and beyond.
The Powell River Credit Union continues to grow, diversify, and strengthen the organization. As the Powell River Credit Union Financial Group we have a Credit Union branch in Powell River and Texada, an insurance office in Powell River called Powell River Insurance Services, and a very mutually beneficial alliance with Powell River Cruise and Travel. We have also formed a company in partnership with Greater Victoria Savings Credit Union called Athena CUSO Management Ltd., which invests in non-interest sensitive investments such as general insurance operations and returns the profit to our members and community. The Powell River Credit Union is the major shareholder of Athena, holding 75% of the shares. Athena now owns four insurance offices on Vancouver Island and is returning solid earnings to the Powell River Credit Union.
The purchase of Oceanside Financial Services Ltd. took place in late 2006. We look forward to expanded wealth management services to our members and community. Meanwhile the existing Financial Planning department of the Credit Union experienced another successful year and continues to provide great service to members and a good return of non-financial income to the Credit Union.
Financial Overview
A very strong performance by all companies in the Financial Group contributed to a net income of $1,078,576 with $958,576 being added to retained earnings for the Credit Union after the dividend payment. The Board of Directors was pleased to declare and pay the following dividends on equity share accounts: A shares - 0.25%, B shares - 4.01%, C shares - 8.00%, and D shares - 6.00%.
The Powell River Credit Union continues to build success by increasing dividends and giving back to members and the community. Dividends are the portion of the profits that are given to members based on their membership shares. As it approaches its 68th anniversary as the 'first' Credit Union charter in BC, the Financial Group is proud to announce that in 2006 it contributed over $190,000 to the communities of Powell River and Texada! Members shared $120,000 worth of Financial Group profit through the annual dividend program, while $20,000 was given back to the community through sponsorships and donations. In addition, $46,000 was returned to the members in the form of Relationship Pricing incentives, and $6,200 will be awarded to local high school students for scholarships.
Community Investment
In late 2006 the Financial Group became a proud sponsor of the 2007 BC Disability Games being held in Powell River. The Financial Group continues to be a leader when it comes to community involvement, contributing over $20,000 to the community for sponsorships and donations in 2006 to help with special events and community projects. The Junior Credit Union program at Assumption School, in its eighth year of operation, teaches children the value of saving and handling money. The CU FLY program (Credit Union Financial Leaders of Youth), an initiative designed to develop young leaders, is in its third year. Watch for these seven young leaders representing the Powell River Credit Union Financial Group at local community events. The Powell River Credit Union Financial Group is also affiliated with the Powell River Community Foundation and assists with its operating expenses.
Success By 6
Together with the United Way of BC and the Ministry of Child and Family Services, the Powell River Credit Union is working to make it easier for parents and the community to give our youngest children everything they need to experience healthy development. Success By 6, a province wide initiative is working to offer all children in Powell River a good start in life so that by the age of 6, they are physically, socially and cognitively ready to learn. In the past year, the Powell River Credit Union has had a number of initiatives underway to promote the importance of early childhood development including teddy bear sales, a book drive, and a coloring contest involving the Kings Junior Hockey team and local elementary schools. The Financial Group awarded one lucky student with a new computer and $500 for his school to purchase new books.
Board Of Directors
In the fall of 2006, strategic planning sessions were held by the Board of Directors and management. The Board of Directors and management continue to work on, among other projects, a new name and branding strategy for the Credit Union. A variety of the Credit Union system's education programs were available to the Board of Directors and Board members took the opportunity to attend several programs. The Board Chair along with the CEO attended the World Credit Union Conference in Ireland and were honored to attend the presentation given by Sandra McDowell our Manager of Sales, Marketing, & Branch Operations who was selected in 2005 by the World Council to receive a scholarship to attend the 2006 World Conference. Directors Carol Roberts and Patricia Salomi were re-elected to three year terms at the 2006 AGM. Patricia Salomi was elected President, Ken Barton was elected Vice President, and Gail Curtis was elected Secretary. A new Director, Larry Clarke, was appointed to sit on the Board of Directors to fill a vacancy and will run for that position at the 2007 AGM. Your Board of Directors met eighteen times in 2006.
Annual General Meeting: Making your Membership Count!
The Powell River Credit Union Annual General Meeting will be held on Tuesday, May 15th at 7 PM at the Town Centre Hotel. The evening promises to be an exciting one, with refreshments and door prizes. All members are encouraged to attend to provide input into the future of the Powell River Credit Union. Three special resolutions will be brought to the membership at the 2007 AGM. Special Resolution 1: the recommendation to change our name to "First Credit Union". Special Resolution 2: a wording change to the Constitution will make it consistent with the Rules. Special Resolution 3: new classes of shares will be used for a business model called "Partnership Growth Model" ("PGM").
Thank You
On behalf of the Board of Directors, management, and staff we would sincerely like to thank the membership for their continued support and patronage. We know that there are many choices available, and we really appreciate the relationship we have developed with each of you. As owners of this company, you can be proud that you have invested in a cooperative organization that is continually growing and always striving to provide more than just lending and deposit services to over 6,000 members in our community.
Respectfully submitted,
Patricia Salomi
President, Board of Directors
David B. Craigen
CEO
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