REPORT FROM THE PRESIDENT experienced in all three of our communities growth to date and

see even more opportunities for growth directly and indirectly

from all the industrial development that will be taking place st Lake View Credit Union is proud to be entering into its 71 over the next few years. It is an exciting time for our region.

year of operations as a sound cooperative financial institution.

We are the only locally owned and managed financial Lake View is pleased to be able to participate in that growth as institution in Dawson Creek, Chetwynd, and Tumbler Ridge. we continue to move forward, positioning ourselves to not only We are owned by our members and we elect our directors face the challenges before us, but at the same time, cultivating from within our membership. This past year, we were pleased

t fiscal year saw us making a new opportunities that lie ahead. to have our newest and youngestprofit on our budget, which is always good news. Our equity

position is very high as members enjoyed the stability of The future for Lake View is promising, but as with anything

investing in Lake View. However, we were challenged in the area worthwhile achieving, it will require active and diligent work. he nominating committee,

of loan growth and did not meet our targets. As we move forward Our strength is in our membership and our staff. On behalf of our board remains solid as we maintain the same directors

this year, we want to have processes and means in place to ensure the board, I thank our management and staff at all three of our going forward. We are among the few credit unions in BC with

that Lake View will grow our loan portfolios and continue to meet branches for their good work and dedication. I thank you, the only 7 directors, as most have 9 sit on their board. This means

the needs of our members for the benefit of their future. members, for your support and trust in Lake View Credit Union. that we have to be extra diligent in the workload of our And I thank my fellow directors for their generous time, effort directors and the committees they sit on.

As we have done in the past and will continue to do in the future, and knowledge they bring to the table. Together the future is

we as a board base our decisions and strategy on three areas of ours. Every board member serves on at least two committees, and

value, People, Profit and our Planet. We are committed to the Lake View ensures that our board is involved in national and values that make Lake View a great credit union. We recognize

Thank younorthern conferences as well as ongoing education, in an people as our greatest asset – those who work at Lake View, our

effort to give our membership the best informed governance members, and those in our communities.

possible. By continuing to take courses and attending

additional meetings and seminars, Lake View's directors keep We will continue to do all we can to support enriching our up with all the latest changes and challenges that impact not membership and our communities. Lake View is a financial only credit unions, but all financial institutions. Our goal institution that strives to do business ethically and profitably for continues to be to provide good governance and oversight of the benefit of our members. We retain profit within the Lake View for the benefit of our members and our organization to help it grow and undertake new initiatives. We communities. return profit to the members who are the lifeblood of LVCU, so

that they can enjoy the reward of being a stakeholder. And Our strategic direction over the past couple of years was finally, we return profit to the communities where we work and focused on the “People” component of our three pillars, play, to ensure that the quality of life is enhanced. This past year, people, profit, and planet. This past year was met with some through our Corporate Social Responsibility Committee, we were challenges in this area, as we experienced some changes in able to distribute over $350,000 to various groups and our management and some of our staff. A huge challenge was individuals throughout Lake View communities. In addition, to find a replacement for our retiring CEO Rene George, as he over $280,000 was distributed as patronage to our membership. finished his career at the end of December, 2013. We thank

Rene for the time he was with us, for his expertise and The board recognizes the need to respect our planet by being as guidance, his insight and his humor. We wish Rene and his prudent and sustainable in all that we do and participate in. To wife, Brenda, a happy and enjoyable retirement. that end, Lake View Credit Union is committed to reducing waste

in all areas of our operations and supports all efforts to maintain A a healthy environment. We also encourage our membership to

adopt healthy, green initiatives in their own lifestyle.

Folks, as I mentioned last year, we are fortunate to live in the

area we do. North East B.C. is favoured with resources that are

currently in demand nationally and around the world. We have

Wainright, Alberta has joined us as our new CEO. His

experience, enthusiasm for credit union values, and strategic

outlook will serve us well into the future. Kelly's wife, Robyn and

his children, Kayden and Breeanna will now be a part of our Lake

View community. We look forward to working with Kelly and

introducing him and his family throughout Lake View, to our

membership and to our communities.

As we look back over 2013, our las board member, Stefan Pavlis,

become a part of our directorship.

This year, as you have heard from t

hiring committee made up of board members and a

consultant from Central 1 worked tirelessly over the summer

and fall to ensure that Rene's replacement would not only be

a good fit for Lake View, but would also be able to take us

solidly and confidently into the future.

The board is very pleased to announce that Kelly Longley of

, ,

Some of the following values that we have as a Credit Union

will allow us to service the needs of the people in our

communities;

w the amount of knowledgeable staff available to service

your needs (“ Credit Unions were awarded the “Ipsos

Best Banking Award Recipient for 2013 among All

Financial Institutions in Canada for Customer Service

Excellence:”),

w the local decisions being made, that we know the

communities and members on a personal level and

strive towards developing strong relationships,

w the ability for members to have a voice as a member

owner,

w that we are a full service financial institution with the

assistance of our Credential Financial Strategies office;

w and that we put back our profits into the communities

through donations, patronage and dividends.

As management, we will continue to focus on giving our

staff the tools, training and support that is required to meet

not only the vision and mission of LVCU, but also the goals

and needs of our members. We will continue to work

towards maximizing the relationships that we have with our

members by ensuring they know and have access to all of

our products and services. I look forward to working with

the staff to meet our goals as a Credit Union and the goals

and needs of our members.

Thank you

Kelly Longley,

CEO

Enriching Your Life

Annual Report2013

Rooted in OurCommunities

Joe JudgePresident of the Board

This report is printed on Recycled 100% Post-Consumer paper

FROM OUR NEW CEO

I am very happy to join the team at Lake View Credit Union as

the CEO. Having the opportunity to lead a Credit Union that

shares the same principles and values that I have come to

believe in and have adopted, is one of the main reasons I

decided to join LVCU. Moving to the Peace country was very

exciting. There are many extracurricular activities that will

keep me and my family busy year round.

Although it has only been a short time, I get the sense of small

town pride and hard work ethic that surrounds the people that

live in our communities and I am proud to now live in this area.

The continued success of LVCU will be dependent upon the

relationships we build with our members and our communities.

The goal is to be known asthe institution of choice for members

and non-members in the communities and surrounding areas

of Dawson Creek, Chetwynd and Tumbler Ridge.

Chetwynd4729-51st Street Chetwynd, BC V0C 1J0

Tumbler Ridge

800-102nd Ave Dawson Creek, BC V1G 2B2

Dawson Creek

Ph: (250) 788-9227, Fax: (250) 788-9237

245 Main Street Tumbler Ridge, BC V0C 2W0

Ph: (250) 242-4871, Fax: (250) 242-4544

Ph: (250) 782-4871, Fax: (250) 782-5828

LAKE VIEW CREDIT UNIONSUMMARY STATEMENT OF COMPREHENSIVE INCOMEyear ended December 31, 2013

2 0 1 3 2 0 1 2

Total interest income $ 10,142,573 $ 10,943,193

Total interest expense 2,052,159 2,392,647

Net interest margin 8,090,414 8,550,546

Allowance for credit losses 175,796 148,105

Net interest income 7,914,618 8,402,441

Other operating income 1,701,473 1,861,075

Total operating income 9,616,091 10,263,516

Total operating expenses 8,770,120 9,330,290

Dividends on membership shares 277,352 280,860

Income before income taxes 568,619 652,366

Income tax expense 35,373 116,736

Net income 533,246 535,630

Other comprehensive loss, net of income taxes (94,103) (330,822)

Total comprehensive income $ 439,143 $ 204,808

LAKE VIEW CREDIT UNIONSUMMARY STATEMENT OF CHANGES IN MEMBERS' EQUITYyear ended December 31, 2013

Total

As at December 31, 2012 $ 15,245,974

Total comprehensive income 439,143

As at December 31, 2013 $ 15,685,117

A full set of the audited financial statements is available from the Credit Union

REPORT OF THE INDEPENDENT AUDITORSUMMARY FINANCIAL STATEMENTS

To the Members of Lake View Credit Union

The accompanying summary financial statements, which comprise the summary statement of financial position as at December 31, 2013, the summary statement of comprehensive income and summary statement of changes in members’ equity for the year then ended, are derived from the audited financialstatements of Lake View Credit Union for the year ended December 31, 2013. We expressed an unmodified audit opinion on those financial statements in our report dated February 26, 2014.

The summary financial statements do not contain all the disclosures required by International Financial Reporting Standards. Reading the summary financial statements, therefore, is not a substitute for reading the audited financial statements of Lake View Credit Union.

Management’s Responsibility for the Summary Financial Statements

Management is responsible for the preparation of a summary of the audited financial statements in accordance with Article 128 of the Financial Institutions Act of British Columbia.

Auditor’s Responsibility

Our responsibility is to express an opinion on the summary financial statements based on our procedures, which were conducted in accordance with Canadian Auditing Standard (CAS) 810 “Engagements to Report on Summary Financial Statements”.

Opinion

In our opinion, the summary financial statements derived from the audited financial statements of Lake View Credit Union for the year ended December 31, 2013 are a fair summary of those financial statements, in accordance with criteria described in Article 128 of the Financial Institutions Act of British Columbia.

Chartered AccountantsPrince George, BCFebruary 26, 2014

Commitment

Resources

Growth

Responsibility

LAKE VIEW CREDIT UNION SUMMARY STATEMENT OF FINANCIAL POSITION

as at December 31, 2013

2013 2012

ASSETS

Cash and Cash Equivalents $ 14,220,305 $ 11,165,599

Investments 101,990,623 98,631,330

Loans and advances to members 168,350,020 169,849,930

Property and equipment 4,889,667 5,540,398

Other intangible asset 127,332 128,509

Other assets 2,410,482 2,693,090

291,988,429 288,008,856

LIABILITIES

Deposits from members 273,648,569 269,995,124

Other liabilities 1,290,008 1,366,618

Membership shares 1,364,735 1,401,140

276,303,312 272,762,882

MEMBERS’ EQUITY

Retained earnings 15,286,237 14,752,991

Accumulated other

comprehensive income 398,880 492,983

15,685,117 15,245,974

291,988,429 288,008,856

Everett Beaulne, Director Wayne Plenert, Director

A full set of the audited financial statement is available from the Credit Union

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