Consolidated Financial Statemen ts

Transcription

1 A Closer Look at Consolidated Financial Statemen ts

2 A Closer Look... Inside Management s Responsibility Auditors' Report Consolidated Balance Sheet Consolidated Statements of Earnings and Retained Earnings Consolidated Statement of Cash Flows Notes to the Consolidated Financial Statements

3 Management s Responsibili ty These financial statements have been prepared by the management of Valley First, which is responsible for their reliability, completeness and integrity. They were developed in accordance with the requirements of the Financial Institutions Act and conform in all material aspects with Canadian generally accepted accounting principles. The financial information presented in the Annual Report is consistent with the financial statement. Systems of internal control and reporting procedures are designed to provide reasonable assurance that the financial records are complete and accurate so as to safeguard the assets of the organization. These systems include establishment and communication of standards of business conduct throughout all levels of the organization to prevent conflicts of interest and unauthorized disclosure and to provide assurance that all transactions are authorized and proper records maintained. Further, they are reviewed by the Credit Union's external auditors and the Credit Union is subject to periodic examination by the Financial Institutions Commission. The Board of Directors has approved the financial statements. The Audit Committee of the Board, comprised of three directors, has reviewed the statements with the external auditors in detail and received regular reports on internal control findings. Grant Thornton the external independent auditor appointed by the membership, examined the financial statements of the Credit Union in accordance with the generally accepted auditing standards. They have had full and free access to the Director, Audit & Security and the Audit Committee of the Board. Their report follows. Harley Biddlecombe President & Chief Executive Officer Robert G. Mowat, B.Comm, CGA Vice President & Chief Financial Officer A n n u a l R e p o r t 3

4 Grant Thornton LLP Chartered Accountants Management Consultants Auditors Report To the Members of Valley First Credit Union We have audited the consolidated balance sheet of Valley First Credit Union as at and the consolidated statements of earnings and retained earnings and cash flows for the year then ended. These financial statements are the responsibility of the Credit Union's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we plan and perform an audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. In our opinion, these consolidated financial statements present fairly, in all material respects, the financial position of the Credit Union as at and the results of its operations and cash flows for the year then ended in accordance with Canadian generally accepted accounting principles. Vancouver, Canada February 3, 2006 Chartered Accountants P.O. Box 11177, Royal Centre Suite West Georgia Street Vancouver, BC V6E 4N3 T (604) F (604) E Vancouver@GrantThornton.ca W Canadian Member of Grant Thornton International A n n u a l R e p o r t

5 Consolidated Balance Sheet December 31 Assets Cash resources (Note 3) $ 103,600,132 $ 102,428,506 Loans (Note 4) 829,404, ,281,283 Investments and other (Note 5) 23,588,897 16,661,603 Capital assets (Note 6) 13,927,378 14,786,564 Goodwill (Note 7) 173,303 3,909,590 $ 970,694,045 $ 915,067,546 Liabilities Deposits (Note 8) $ 901,098,954 $ 826,486,835 Payables and accruals 5,476,053 6,743,348 Borrowings (Note 9) - 29,910,800 Members' Equity 906,575, ,140,983 Equity shares (Note 10) 35,055,431 27,794,372 Contributed surplus 3,836,405 3,836,405 Retained earnings 25,227,202 20,295,786 64,119,038 51,926,563 $ 970,694,045 $ 915,067,546 Commitments and contingencies (Note 19) On behalf of the Board Chair of the Board Chair, Audit Committee See accompanying notes to the consolidated financial statements A n n u a l R e p o r t 5

6 Co nsolidated Statements of Earnings and Retained Earnings Year Ended December 31 Financial income Loans $ 42,948,650 $ 37,312,653 Investments and other 7,267,373 7,041,037 50,216,023 44,353,690 Financial expense Deposits 22,993,437 20,655,155 Borrowings 1,408,176 1,281,613 24,401,613 21,936,768 Financial margin 25,814,410 22,416,922 Provision for loan losses (Note 4) 583, ,840 25,230,586 22,029,082 Other income (Note 12) 11,395,624 12,675,448 Operating margin 36,626,210 34,704,530 Operating expenses (Note 13) 29,876,072 30,292,375 Earnings from operations 6,750,138 4,412,155 Unusual item Deposit insurance adjustment (Note 14) 19,084 - Earnings before income taxes 6,731,054 4,412,155 Income taxes (Note 15) Current 1,126,560 1,035,000 Future (recovery) (93,000) 53,000 1,033,560 1,088,000 Net earnings $ 5,697,494 $ 3,324,155 Retained earnings, beginning of year $ 20,295,786 $ 17,656,471 Net earnings 5,697,494 3,324,155 Dividends on equity shares, net of tax ($163,900: 2004: $146,000) (766,078) (684,840) Retained earnings, end of year $ 25,227,202 $ 20,295,786 See accompanying notes to the consolidated financial statements A n n u a l R e p o r t

7 Consolidated Statement of Cash Flows Year Ended December 31 Increase (decrease) in cash resources Operating activities Net earnings $ 5,697,494 $ 3,324,155 Adjustments to determine cash flows Provision for loan losses 583, ,840 Amortization 1,673,643 1,516,072 Change in interest accruals (408,950) 1,997,567 Future income taxes (93,000) 53,000 Other (844,664) 833,573 6,608,347 8,112,207 Financing activities Deposits, net of withdrawals 74,768, ,939,048 Borrowings (29,910,800) 14,989,800 Change in equity shares 7,260, ,075 Dividends on equity shares, net (766,078) (684,840) 51,351, ,370,083 Investing activities Loans, net of repayments (52,211,589) (138,204,250) Investments and other (6,834,294) 10,755,221 Proceeds on sale of subsidiary 3,100,000 - Purchase of capital assets (842,570) (4,415,889) Proceeds from the disposal of assets (56,788,453) (131,864,209) Net increase in cash resources 1,171,626 25,618,081 Cash resources, beginning of year 102,428,506 76,810,425 Cash resources, end of year $ 103,600,132 $ 102,428,506 Supplementary cash flow information Interest paid $ 23,148,869 $ 18,648,453 Income taxes paid 582,958 1,430,907 See accompanying notes to the consolidated financial statements A n n u a l R e p o r t 7

8 1. Governing legislation and operations The Credit Union is incorporated under the Credit Union Incorporation Act of British Columbia; and the operation of the Credit Union is subject to the Financial Institutions Act of British Columbia. The Credit Union serves members principally in the Interior of British Columbia. 2. Summary of significant accounting policies Basis of presentation These financial statements have been prepared in accordance with Canadian generally accepted accounting principles. In preparing these financial statements management has made estimates and assumptions that could affect the reported amount of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Actual results could differ from those reported. Principles of consolidation The consolidated financial statements include the accounts of the Credit Union and its wholly-owned subsidiaries, Valley First Financial Services Ltd., Western Interior Financial Ltd. and B.C. Ltd. All significant intercompany transactions and accounts have been eliminated. The Credit Union owns a 50% equity interest in Valley First Insurance Services Ltd. This investment is accounted for using the equity method. Loans Loans are carried at the unpaid principal plus accrued interest less an allowance established to provide against probable losses on ultimate realization of the loan portfolio. Loans considered uncollectible are written off. Loan interest Interest income from loans is recorded on the accrual method, except where a loan is impaired. Interest received on an impaired loan is recognized in earnings only if there is no doubt as to the collectibility of the carrying value of the loan. Loan fees Net fees earned and costs incurred in connection with lending activity are deferred and amortized over the term of the underlying loans. Mortgage prepayment fees are recognized in other income when received, unless they relate to a minor modification to the terms of the mortgage, in which case the fees are deferred and amortized over the average remaining term of the original mortgage. Allowance for loan losses The allowance for impairment is maintained at a level considered adequate to absorb anticipated credit losses. Specific allowances are provided for specifically identified loans that have become impaired. A loan is classified as impaired generally at the earlier of when, in the opinion of management, there is reasonable doubt as to the collectibility of principal and interest, when interest is 90 days past due, or financial reporting is significantly in arrears. Specific allowances are supplemented by general allowances. The general allowance represents the best estimate of probable losses within the portion of the portfolio that has not been specifically identified as impaired. The amount is established through the application of expected loss factors to outstanding balances A n n u a l R e p o r t

9 2. Summary of significant accounting policies (Continued) Transfers of loans The Credit Union periodically sells loans to special purpose entities or other unrelated third parties. These transactions are accounted for as sales and the related loans are removed from the balance sheet when control over the loans is surrendered and consideration other than beneficial interests in the transferred loans is received in exchange. The fair values of loans sold and retained interests are determined using pricing models based on key assumptions such as expected losses, prepayments and discount rates commensurate with the risks involved. Gains or losses on these transactions are recorded in other interest income and are based on the carrying value of the loans transferred allocated between the assets sold and the retained interests in proportion to their fair values at the date of transfer. The carrying value of retained interests are reviewed annually for impairment and adjusted as required. The Credit Union often retains interests in the transferred loans, such as servicing rights and cash reserve accounts. Investments Portfolio investments are recorded at the lower of cost and market. Shares Shares are classified as liabilities or as member equity according to their terms. Where shares are redeemable at the option of the member, either on demand or on withdrawal from membership, the shares are classified as liabilities. Where shares are redeemable at the discretion of the Credit Union board of directors, the shares are classified as equity. Dividends on equity shares less related income tax reductions are charged against retained earnings in the year they are declared. Capital assets Capital assets are stated at cost. Amortization is computed on the straight line method at rates varying between 2% and 50%. Leasehold improvements are written off over the term of the lease and the first renewal period or ten years whichever is the lesser. Goodwill Goodwill represents the excess purchase price of acquired businesses over the fair value of the net assets acquired. Goodwill purchased prior to June 30, 2002 was amortized using the straight line method over its estimated period of benefit, not exceeding 40 years. The Credit Union annually compares the carrying value of goodwill to the estimated undiscounted future cash flows that may be generated by the related businesses and recognizes in net income any impairment to the net recoverable amount. Goodwill acquired subsequent to July 1, 2002 is not amortized. Goodwill is reviewed by management on at least an annual basis to determine whether there is an impairment in value. Goodwill is tested between annual tests when an event or circumstance occurs that more likely than not reduces the fair value of the goodwill below its carrying value. An impairment in value is calculated based on the fair value of estimated recoverability through projected cash flows, earnings and fair value of the Credit Union's assets compared to the carrying value of the goodwill. Any loss on impairment during the year will be charged to earnings A n n u a l R e p o r t 9

10 2. Summary of significant accounting policies (Continued) Income taxes The Credit Union follows the asset and liability method of accounting for income taxes, whereby future tax assets and liabilities are recognized for the expected future tax consequences attributable to differences between the financial statement carrying amount of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. Future tax assets and liabilities are measured using enacted or substantially enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Net future income tax assets and liabilities are included in payables and accruals. Derivative financial instruments Derivative financial instruments are financial contracts that require or provide an option to exchange cash flows or payments determined by applying certain rates, indices or changes therein to notional contract amounts. The notional contract amounts related to derivatives are not included in the balance sheet. Derivatives are utilized to manage financial risks such as changes in interest rates. A derivative qualifies for hedge accounting if the hedging relationship is designated and formally documented at inception. The documentation involves outlining the particular risk management objective and strategy for the hedging relationship, the specific asset, liability or cash flow being hedged, and how effectiveness is assessed. Hedging relationships, between the hedged and hedging items, are designated as a fair value hedge or a cash flow hedge. This process includes linking all derivatives to specific assets and liabilities on the balance sheet or to specific firm commitments or anticipated transactions. Effectiveness is assessed by determining whether derivatives used in hedging relationships are highly effective in offsetting changes in fair values or cash flows attributable to the risk being hedged. This assessment is performed both at inception and over the term of the hedging relationship. Derivatives that qualify for hedge accounting are accounted for on the accrual basis, with interest income and expense for these contracts recognized over the term of the hedging relationship. Derivatives that do not qualify for hedge accounting, or those hedges which have become ineffective, are carried at fair value, and the full amount of gains and losses on disposal and adjustments to fair value are recognized in income in the period in which they occur. 3. Cash resources Cash and current accounts $ 17,476,165 $ 18,948,142 Term deposits and accrued interest callable or maturing in three months or less 13,734,692 9,163,364 greater than three months 72,389,275 74,317,000 $ 103,600,132 $ 102,428,506 Provincial legislation requires the Credit Union to maintain, for liquidity purposes, deposits with Credit Union Central of British Columbia of at least 9% of deposits and borrowings. At, the Credit Union liquidity deposits exceed the minimum requirement A n n u a l R e p o r t

11 4. Loans Personal loans $ 562,579,076 $ 526,713,351 Commercial loans 266,861, ,515,864 Accrued interest 2,273,644 2,020, ,714, ,249,341 Allowance for loan losses Specific 12, ,598 General 2,297,498 1,677,460 2,310,113 1,968,058 $ 829,404,335 $ 777,281,283 Allowance for loan losses Balance Ending Ending Beginning Provision Write-offs Balance Balance Personal loans $ 895,163 $ 365,593 $ 78,586 $ 1,182,170 $ 895,163 Commercial loans 1,072, , ,183 1,127,943 1,072,895 $ 1,968,058 $ 583,824 $ 241,769 $ 2,310,113 $ 1,968,058 Impaired loans and related allowances Loan Specific Carrying Carrying Balance Allowance Amount Amount Personal loans $ 451,690 $ 12,615 $ 439,075 $ 229,096 Commercial loans 12,645,443-12,645,443 6,676,310 $ 13,097,133 $ 12,615 $ 13,084,518 $ 6,905, A n n u a l R e p o r t 11

12 5. Investments and other Shares Credit Union Central of British Columbia $ 3,213,787 $ 2,848,243 50% interest in Valley First Insurance Services Ltd. (Note 2) 1,036,411 - Other 167, ,239 Accrued dividends on CUCBC shares 162, ,480 Accrued interest on investments 579, ,939 Receivables and prepaids 4,407,205 6,004,770 Bonds and mortgage securities 14,016,918 6,800,932 Other debenture 5,000 5,000 $ 23,588,897 $ 16,661,603 Investment in the shares of Credit Union Central of British Columbia is required by governing legislation and as a condition of membership in Credit Union Central of British Columbia. 6. Capital assets Accumulated Net Net Cost Amortization Book Value Book Value Land $ 1,623,952 $ - $ 1,623,952 $ 1,594,202 Buildings 8,847,657 1,937,956 6,909,701 6,966,017 Equipment 15,041,060 9,647,335 5,393,725 6,226,345 $ 25,512,669 $ 11,585,291 $ 13,927,378 $ 14,786, Goodwill Goodwill $ 336,577 $ 6,487,160 Less: accumulated amortization 163,274 2,577,570 $ 173,303 $ 3,909, Deposits Demand $ 315,849,636 $ 269,921,660 Municipal deposits 16,109,359 18,731,281 Term 412,238, ,914,573 Registered savings plans 146,266, ,128,891 Accrued interest 10,634,998 10,790,430 $ 901,098,954 $ 826,486, A n n u a l R e p o r t

13 9. Borrowings Credit Union Central of British Columbia $ - $ 20,000,000 Canadian Imperial Bank of Commerce - 9,910,800 $ - $ 29,910,800 The Credit Union has available to it, through Credit Union Central of British Columbia, an operating line and term loan facility of $35 million secured by a general security agreement and the general assignment of book debts. The Credit Union maintains a $40 million credit facility with the Canadian Imperial Bank of Commerce. The advances are secured by a general security agreement over certain insured residential mortgages and a priority agreement from Credit Union Central of British Columbia recognizing Canadian Imperial Bank of Commerce's interests. Effective rates are determined by market conditions, time of borrowing, terms and amount borrowed. During 2004, these loans and advances bore interest at effective interest rates between 2.5% and 2.85%. At, the Credit Union has not drawn on these credit facilities. 10. Equity shares Capital of the Credit Union is divided into three classes of equity shares, all having a par value of $1. Funds invested in these shares are not guaranteed by the Credit Union Deposit Insurance Corporation of British Columbia. Redemption of equity shares may be subject to certain restrictions. Class "A" membership equity shares Under the Credit Union rules, members are required to hold at least 25 membership equity shares. Membership equity shares pay dividends at the discretion of the directors in the form of cash or additional shares. These shares are redeemable under certain conditions at the discretion of the directors to a maximum of 10% of the issued and outstanding shares in any one year $ 1,612,560 $ 1,668,554 Class "B" investment equity shares Investment equity shares pay dividends at the discretion of the directors in the form of cash or additional shares. These shares are redeemable under certain conditions at the discretion of the directors to a maximum of 10% of the issued and outstanding shares in any one year 21,590,906 15,837,321 Class "C" retirement plan equity shares Retirement plan equity shares pay dividends in the form of additional shares or cash credited to an RRSP of the same class. These shares are redeemable, subject to the discretion of the board of directors. There is no limit on the number of shares which may be held by a member 11,753,925 10,183,348 Provision for dividends on equity shares 98, ,149 $ 35,055,431 $ 27,794, A n n u a l R e p o r t 13

14 11. Capital requirements The Credit Union is required under governing legislation to maintain a minimum level of certain types of investments. In addition, the Act prescribes minimum levels of capital based on prescribed risk weighted values being applied to certain Credit Union assets. At, the Credit Union exceeded the minimum required capital base. 12. Other income Chequing services and commissions $ 5,528,313 $ 5,389,315 Commissions 1,098,671 4,446,983 Income from equity investment 162,310 - Gain on sale of 50% of Valley First Insurance Services Ltd. 119,945 - Loan fees and other 4,486,385 2,839,150 $ 11,395,624 $ 12,675, Operating expenses Advertising and promotion $ 655,843 $ 809,511 Amortization 1,673,643 1,516,072 Capital taxes 660, ,500 Data processing 2,753,403 2,339,668 Office and operating expenses 7,105,955 7,137,855 Salaries and employee benefits 17,027,028 17,949,769 $ 29,876,072 $ 30,292, Unusual item Deposit insurance adjustment In 2005, Credit Union Deposit Insurance Corporation (CUDIC) assessed a special provision to its member credit unions. The Credit Union was assessed $2.38 million. Stabilization Central Credit Union of British Columbia declared and paid a special dividend to its member credit unions in The Credit Union received a dividend of $2.36 million. The net assessment is an expense of $19,084, which is recognized as an unusual item on the consolidated statements of earnings and retained earnings A n n u a l R e p o r t

15 15. Income taxes The total provision for income taxes in the statements of earnings and retained earnings is at a rate less than the combined federal and provincial statutory income tax rates of the applicable year for the following reasons: % % Combined federal and provincial statutory income tax rate Decrease in rate due to: Rate reduction applicable to credit unions (17.25) (12.06) Other, net (2.28) 1.10 Effective income tax rate The components of future income tax balances included in payables and accruals are as follows: Future income tax assets (liabilities) Allowance for credit losses $ 405,042 $ 303,754 Deferred items (150,573) (158,661) Other (12,730) (178,953) Net future income tax assets (liabilities) $ 241,739 $ (33,860) 16. Interest rate sensitivity The Credit Union is exposed to interest rate risk as a consequence of the mismatch, or gap between the assets, liabilities and off balance sheet instruments scheduled to reprice on particular dates. Maturity dates substantially coincide with interest adjustment dates. Amounts with floating interest rates, or due on demand, are classified as maturing within one year, regardless of maturity. Amounts that are not interest sensitive are grouped together, regardless of maturity A n n u a l R e p o r t 15

16 16. Interest rate sensitivity (Continued) The table below does not incorporate management s expectation of future events where repricing or maturity dates of certain loans and deposits may differ significantly from the contractual dates. Interest Sensitive Balances Non- Average Within 4 Months Greater than Interest Rates 3 Months to 1 Year 1 Year Sensitive Total Total Assets Cash resources 4.00% $ 13,491,015 $ 9,546,000 $ 61,417,000 $ 19,146,117 $ 103,600,132 $ 102,428,506 Loans 5.51% 468,826,583 47,224, ,390,196 (36,470) 829,404, ,281,283 Other assets 4.17% - 3,080,009 10,936,908 23,672,661 37,689,578 35,357, ,317,598 59,850, ,744,104 42,782, ,694, ,067,546 Liabilities and members' equity Deposits 2.75% 257,455, ,719, ,329, ,594, ,098, ,486,835 Other ,595,091 69,595,091 88,580, ,455, ,719, ,329, ,190, ,694, ,067,546 Balance sheet mismatch 224,862,512 (86,869,190) 55,414,438 (193,407,760) - - Interest rate swaps, net (246,000,000) 16,000, ,000, Net mismatch 2005 $ (21,137,488) $ (70,869,190) $ 285,414,438 $ (193,407,760) $ - $ - Net mismatch 2004 $ 6,276,012 $ (36,460,258) $ 192,132,285 $ (161,948,039) $ - $ Fair values of financial instruments The estimated fair values of financial instruments are designed to approximate values at which these instruments could be exchanged in a current market. However, many of the financial instruments lack an available trading market and therefore fair values are based on estimates. No fair values have been determined for capital assets or any other asset or liability that is not a financial instrument. The fair values of cash resources, variable rate loans and deposits, other assets and liabilities are assumed to equal their book values. The fair values of fixed rate loans and deposits are determined by discounting the expected future cash flows at the estimated current market rates for loans and deposits with similar characteristics. Changes in interest rates are the main cause of changes in the fair value of the Credit Union s financial instruments. The Credit Union s financial instruments are carried at historical cost and are not adjusted to reflect increases or decreases in fair value due to interest rate changes A n n u a l R e p o r t

17 17. Fair values of financial instruments (Continued) Estimated Favourable Favourable Book Value Fair Value (Unfavourable) (Unfavourable) Assets Cash resources $ 103,600,000 $ 103,600,000 $ - $ - Loans 829,404, ,064,000 (340,000) 3,633,000 Investments and other 23,589,000 23,334,000 (255,000) - Liabilities Deposits 901,099, ,064,000 (15,035,000) (12,009,000) Payables and accruals 5,476,000 5,476, Equity shares 35,055,000 35,055, Derivatives - 1,687,000 1,687,000 2,098,000 $ (13,943,000) $ (6,278,000) 18. Off balance sheet Funds under administration Off balance sheet funds under administration by the Credit Union are comprised of loans that have been sold, securitized or syndicated and are administered in the capacity as an agent, and investment portfolios including mutual fund accounts managed on behalf of the members. Off balance sheet funds are not included in the balance sheet. Sold loans $ 35,643,763 $ 42,243,668 Securitized loans 30,541,480 19,652,634 Syndicated loans 33,739,908 31,493,757 Mutual funds 151,341, ,283,724 Derivative financial instruments At, the Credit Union has outstanding interest rate swap contracts in the notional amount of $246,000,000 (2004: $217,000,000) maturing at varying dates to Letters of credit In the normal course of business, the Credit Union enters into various off balance sheet commitments such as letters of credit. Letters of credit are not reflected in the balance sheet. At, the Credit Union has outstanding letters of credit on behalf of members in the amount of $15,167,039 (2004: $11,591,023) A n n u a l R e p o r t 17

18 18. Off balance sheet (Continued) Transfers of loans Securitizations undertaken during 2005 totalled $21,983,000 (2004: $22,112,000), with retained interests, net of servicing liabilities, of $876,000 (2004: $1,140,000). Gains recognized in 2005 totalled $630,280 (2004: $413,577). The Credit Union does not receive an explicit servicing fee for its servicing responsibilities. The special purpose entities, as purchasers of the securitized mortgages, have recourse only to a cash collateral account and cash flow from the net present value of future interest earnings on the securitized mortgages. The special purpose entities have no recourse to the Credit Union s other assets for failure of debtors to pay when due. Loans As at the Credit Union had committed to certain loans which, if they had been fully advanced, would amount to $122,330,000 (2004: $106,859,000). 19. Commitments and contingencies Lease commitments Certain branch premises are leased for terms extending through Total rentals under these leases for the next five years are $6,814,447 (2004: $6,592,775). Contingencies In the ordinary course of business, the Credit Union has legal proceedings brought against it and provisions have been included in liabilities where appropriate. It is the opinion of management that final determination of these claims will not have a material adverse affect on the financial position or earnings of the Credit Union. 20. Related party transactions At, loans to directors, officers and related parties amounted to $11,050,002 (2004: $8,392,415). During the year, directors received in their capacity as directors remuneration totalling $63,450 in aggregate (2004: $65,000) A n n u a l R e p o r t

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20 A n n u a l R e p o r t Head Office 3rd Floor, 184 Main Street, Penticton, BC V2A 8G7 Phone (250) Fax (250)