metro annual report · growth of 3.5%, and our asset base is now at $147.6 million. we have been...

METRO CREDIT UNION LIMITED • 2007 ANNUAL REPORT1

1

Board of Directors.................................................................................2

President’s Report .................................................................................3

General Manager’s Report ....................................................................4

Auditor’s Report....................................................................................5

Balance Sheet .......................................................................................6

Statement of Undistributed Earnings.....................................................7

Statement of Income And Expense .......................................................8

Cash Flow Statement ............................................................................9

Notes to Financial Statements..................................................... 10 – 13

Metro Credit Union in the Community ............................14, 15, 16, 17,

Services ..............................................................................................18


Left to right: Wendell Dawson,Nahie (Nancy) Bassett,James MacDonald,Gerard Wood,John Broderick,Barry Brown,Robert Perry,Ellen Locke Doiron,Alan Hearn Jr.,Corey Tremere,Bernard Keefe

Board Of Directors


3

It is my pleasure to report to you on behalf of the board of directors at Metro Credit Union, for the year ending September 30, 2007. As I complete a 6 year term on the board, including my tenure as president, it’s time to reflect on the many accomplishments of your credit union.

Metro had another great year. In keeping with our mandate to allocate a portion of our surplus to members in the form of dividends, I am pleased to announce the board has declared a 3% dividend rate for 2007. That’s another example of how you, the owner, share in the success of your credit union.

The board was very active this past year, meeting a total of 10 times, in addition to our annual planning session in January. Extensive committee work was conducted throughout the year in the areas of policy, audit, and nominating and governance.

This was the fifth year Metro Credit Union retained the services of MRSB to audit our financial statements. Both the Charlottetown accounting firm and our inspector from Credit Union Central, have come back with excellent reports on the financial operations of Metro for 2006-2007.

Another indication of our growth is the increase in membership, which now stands at just under 15,000. That steady increase in the number of people who do business with us, is surely a testimonial to the high quality of service and products provided at Metro Credit Union.

You’ll no doubt have noticed the new look of Metro at our University Avenue location. New siding was installed to update our look and increase the energy efficiency of the building.

In closing, I want to thank all of my fellow board members for their guidance and support during the past 12 months. And of course, congratulations to the management and staff of Metro, for another very successful year. Metro Credit Union is indeed well positioned for the challenges and opportunities that lie ahead.

Sincerely,

John BroderickPresidentBoard of Directors

President’s Report

2001 2003 2004 2005 2006 2007

63.3 90.7 94.3 95.8 96.0 108.2

0

30

60

90

120

150

Loan

sD

epo

sits

ABOVE TABLES STATED IN

MILLIONS OF DOLLARS.

0

30

60

90

120

150

2001 2003 2004 2005 2006 2007

83.3 106.2 120.7 128.2 135.1 147.7

Ass

ets

0

30

60

90

120

150

2001 2003 2004 2005 2006 2007

83.3 111.5 118.3 124.5 129.9 134.5


It is my pleasure to report to you on the operations of Metro Credit Union Ltd. as at September 30, 2007.

We enjoyed another successful year with strong profits, which increased our retained earnings from 6.8% to 7.3%, well above the national standard of 5%. This increase enables us to keep costs down and help ensure we remain competitive in the market place. We attained loan growth of 12.8% and deposit growth of 3.5%, and our asset base is now at $147.6 million.

We have been very busy this year planning for future loan growth. We are now approved by Genworth Financial Canada to offer high ratio mortgages, resulting in Metro Credit Union being a full service mortgage provider. We have also been successful in setting up our indirect auto financing business to have vehicle loans referred by local dealers. Based on the results from the past year, it looks promising for future growth in these areas.

Another new offering to our membership is Home & Auto Insurance through CUIS, our credit union insurance provider. This partnership has already resulted in considerable savings for some of our owners.

Our market research indicates we need to become more visible in the marketplace. With that in mind, we have substantially increased our marketing/advertising budget, to assist us in getting the word out on “who we are, and what we do!” To help us accomplish that, we have produced 4 new TV commercials to air on CBC television throughout the year.

Our staff continue to be active in the community, and I’m proud to

acknowledge our employees have now raised over $30,000 for Camp Gencheff, which has been matched corporately by Metro Credit Union for a total of $60,000 so far. Our commitment to Camp Gencheff is $100,000 over 5 years, with half of that to be raised by staff. There seems to be no doubt we’ll reach our goal! We have also increased our budget for donations, to escalate our level of community involvement.

In closing, as always I would like to thank our board of directors for their dedication and support, and a special thank you to our entire staff for making this another successful year.

Respectfully submitted,

David BurtGeneral Manager

General Manager’s Report

STAFF RECOGNITIONAWARDS

I would like to recognize and

congratulate the following

staff for their years of service to

Metro Credit Union.

3 yearsKelly McCarronRon ClarkeJason Levy

5 years Shirley Davis

10 yearsShari Lewis

25 yearsBernard Gillis


5


7


9


11


13


Corporate Social Responsibility -C.S.R.At Metro Credit Union, we realize that acting in a corporate socially responsible manner is not only expectedfrom us, it’s the right thing to do. Financial performance is just one part of the equation. Also integral tomeasuring the success of financial institutions is their commitment to strengthening communities and theenvironment. At Metro Credit Union we think we shape up pretty well in terms of our Corporate SocialResponsibility (CSR). Admittedly, there is still much to be done, but as the report below illustrates, muchhas already been done. The following CSR update was written by Metro Credit Union management, andapproved by the board of directors.

Community InvolvementMetro Credit Union staff remain committed to supporting our community. We are three years into our 5 year association with Camp Gencheff. During this time a total donation of $100,000 will be made to the Camp. $50,000 of that will be raised by staff, with a corporate donation to match. So far our donation totals $60,000.

PEI Credit Unions are proud to be the Provincial Event Sponsor for the Canadian Cancer Society’s Relay for Life. Metro Credit Union staff put a

team in the relay at the Charlottetown Driving Park Entertainment Centre in June. Collectively credit unions across the Island raised nearly over $56,000 this year to help fight cancer on PEI.

A number of our staff are involved with other charitable organizations. Bernard Gillis is an active committee member with the PEI Literacy Alliance. Shari Lewis continues her long standing role as a mentor with the Big Brothers Big Sisters Program, and Doug Bridges has been a member of the Hillsborough Rotary Club for 5 years.

Decision MakingMetro Credit Union is a financial co-operative owned and controlled by its members/owners. All owners in good standing have the opportunity to vote for or be elected to the Board of Directors, as well as vote on issues at our Annual Meeting, and share in the success of the credit union.

Staff are empowered, within certain parameters, to make decisions impacting their effectiveness in carrying out the responsibilities of their position. This allows for better owner service as decisions are routinely made at point of contact, instead of always needing approval from a supervisor.

Metro Credit Union Relay for Life Team.

Camp Gencheff appreciation BBQ

Metro Credit Union in the Community


15

We periodically send out surveys to owners and conduct focus groups, soliciting input on how we conduct our business and what recommendations they may have for improvements. All information received is reviewed and whenever possible suggestions are implemented.

Product & Service PerformanceOur corporate Mission Statement, “To provide outstanding service and professional advice to enable our owners to reach their financial goals”, is what we strive to accomplish everyday. If our owners are satisfied, then hopefully, they will bring more business to us.

Earlier this year we updated our website. We are now found at www.metrocreditu.com, on the world wide web. This new site is integrated with MemberDirect Internet Banking. This allows you to access your account on line without leaving the website. You’ll also find the new site to be much more comprehensive, with up to date information on all our account offerings, pricing, and interest rates.

To fulfill our corporate Mission Statement, in January 2006, we began the process of changing our organizational culture, to a proactive service provider, as opposed to a reactive service provider. Our primary focus is managing the long-term relationships that are beneficial to all stakeholders involved. This transition was necessary to keep up with changes in the financial services industry.

We continually review and update our product and service offerings based on owner demand and the competition, to ensure our line up offers the best combination of features, benefits and value. We have recently introduced new products including: U.S. dollar chequing accounts, Masterplan Unlimited, High Ratio Mortgages, and same day MemberCard debit card replacement.

Concern for member/owner privacy is something we take very seriously. Metro Credit Union is committed to implementing policies and procedures that protect these rights, and accordingly we have adopted the Credit Union Code for the Protection of Personal Information. Metro understands from an owner’s perspective that privacy of personal and financial information is an integral organizational component.

We had installed large screen TVs in both offices to provide information on products and credit union initiatives, as owners wait in queue for service.

www.metrocreditu.com



Human ResourcesOver the past year, the management and staff at Metro have begun to work on Behavioral and Technical competencies as a method of performance enhancement and job enrichment. The competency method of performance management allows the employees to rate themselves on a number of behavioral competencies (Teamwork and Co-operation, Adaptability to Change, etc) and technical competencies (Sales, Computer Skills, etc). Through their evaluation and with input from their supervisor, employees are able to see where their strengths lie and what areas of performance need improvement.

In 2008, we will be looking at a number of different initiatives regarding Human Resources. In response to changes in the labour market, we will be examining the possibility of implementing such staffing options as ‘Leave with Income Averaging’ and ‘Job Sharing’. Both of those initiatives offer flexibility to the staff with regards to their home life, and will help position the Credit Union as a family friendly employer.

As well, we will be investigating the Co-operative Development Program through the Canadian Co-operative Association, where staff from Canadian Credit Unions travel to Credit Unions in developing nations, to assist them in areas of computerization, lending, administration, and management.

Environmental ImpactMetro Credit Union has taken a number of steps during the last 2 years to become more environmentally responsible. We now serve only Fair Trade Certified Organic Coffee to our owners. It’s purchased from Just Us Coffee in Wolfville, NS. By purchasing this product, we’re helping to ensure that the producers are paid at least a fair price for their product.

In an effort to cut down on the use of plastic bags, we have purchased a quantity of recyclable shopping bags and give them out as requested. We have teamed up with Charlottetown Transit to sponsor the creative design on several bus shelters throughout the city, and we are now an outlet to sell transit passes as well.

In January 2007, we offered an information session on ethical investing with a representative from Ethical Funds Inc. The session was very well attended and provided an excellent overview proving that owners do not have to sacrifice return on investment, to help better our environment.

Metro Credit Union continues to offer financing at Prime for Hybrid vehicles, and credit unions are the only financial institutions on the Island to sell PEI Energy Bonds.



17

Donations


Adventure GroupAids PEIAlzheimer Society of PEIAthletics PEI Autism Society of PEIBedford MacDonald TrustBluefield High SchoolCamp GencheffCanadian Council of the BlindCanadian Diabetes AssociationCanadian Lebanese Association Canadian Mental Health AssociationCerebral Palsy AssociationCertified Organic Producers Co-opCharlottetown Chamber of CommerceCharlottetown Minor Baseball AssociationCharlottetown Rural High SchoolChild Find PEIChildren’s Wish Foundation Golf For WishesChristmas DaddiesColonel Gray Education Foundation Inc.Colonel Gray Safe GradCrohn’s and Colitis Foundation of CanadaEarly Childhood Development Association of PEIEastern Kings Health Foundation Excel Selects SoccerExtreme Hockey Fitzroy Centre ClubhouseFriends of Catholic Family Services Inc.Ghiz Park Fund Glen Stewart School PlaygroundGlobal Vision Grace Christian SchoolHeart & Stroke FoundationHillsborough Park Youth Program Horse Trials PEIIsland Dog ClubIsland Gymnastics AcademyIsland Nature TrustJunior Achievement of PEIJuvenile Diabetes Research FoundationKidney FoundationLake of Shining Waters IODELions Cavalcade for DiabetesMorell Mosquito AA BaseballMuseum & Heritage PEI

Native Council of PEINorth River Peewee A Girls Hockey Pee Wee Girls Softball EastPEI Bantam AAA Baseball TeamPEI Council of the ArtsPEI Crime StoppersPEI Humane Society 2007 Dog JogPEI Literacy AlliancePiazza Joe’s Soccer TeamPownal AAA Midget HockeyPownal Metro Builders Junior B HockeyQEH FoundationQueen Charlotte Intermediate School Ringette PEIRotary Club of HillsboroughSherwood Parkdale Rangers U 16 Girls Premier SoccerSpecial Olympics PEISpeed Skate PEIStars for Life FoundationStratford Minor Soccer AssociationStratford Under 14 Soccer TeamThe JoyridersThe Kidney Foundation of CanadaThe Townships Project United Way of PEIUniversity of PEI (Credit Unions of PEI Lounge)UPEI Business SocietyVoluntary Resource Council

••••••••••••••••••••••••••••••••••••••••••••••

••••••••••••••••••••••••••••


METRO CREDIT UNION (3 machines)281 University Avenue, CharlottetownFull Service 24 hoursLobby and Drive-thru

10 Kinlock Road, Stratford (2 machines)24 hour Drive-thruLobby (Business Hours)

Services

A.T.M. Locations

SHARE SAVINGS

REGULAR SAVINGS(non-chequing)

SMART SAVEPremium Multi-Level Savings

(Daily Interest)

TERM DEPOSITSNon-RedeemableRedeemable

DEPOSIT RECEIPTSRedeemable

CHEQUING ACCOUNTSU.S. Dollar Chequing AccountPersonal & CommercialDaily Interest Chequing MasterPlan

(Personal Package of Services –3 plans)

CU SELF SERVE

CU STUDENT PLAN

HEAD START(Youth Services)

PRIME ACCOUNT(Seniors Package)

MEMBERCARDA.T.M. Access Card/Interac Direct Payment

MASTERCARD GLOBALPAYMENT CARD

Chequing Account Access CardRegular and Gold

MASTERCARD CREDIT CARDRegular, Student, Gold, Platinum

MASTERCARD MERCHANT PROGRAM

OVERDRAFT PROTECTIONLINES OF CREDITLINES OF CREDIT LOANS

PERSONAL LOANS

COMMERCIAL LOANS

MORTGAGES

STUDENT LOANSPROVINCIAL AND IN-HOUSE

DRAFTS AND MONEY ORDERS* Canadian, US and Foreign(30 major currencies)

TRAVELLER’S CHEQUES* Canadian, US, Sterling(30 major currencies)

MEMBERS OF INTERAC, ACCULINK &EXCHANGE NETWORKS,AUTOMATED TELLER MACHINES (CANADA)OUTSIDE COUNTRY - PLUS NETWORK& MASTERCARD ACCESS THROUGH CIRRUS

SAFETY DEPOSIT BOXES

NIGHT DEPOSITORYUTILITY BILL PAYMENT AGENCY

TELESERVICE/TELPAYTelephone Banking)

MEMBERDIRECT(Internet Banking)

R.R.S.P.(Registered Retirement Savings Plan)* Fixed Rate and Variable Rate

R.R.I.F.(Registered Retirement Income Fund)

FINANCIAL PLANNINGEthical Mutual Funds ThroughCredential Financial Strategies

NORTH RIVER PETRO-CANADANorth River…Cash only

QUEEN ELIZABETH HOSPITALRiverside Drive…Cash only

MURPHY’S STRATFORDPHARMACY13 Stratford Road…Cash only

metro annual report · growth of 3.5%, and our asset base is now at $147.6 million. we have been...

Documents