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1 Emergency Medical Services Enmax Corporation 2013 Annual Calgary Report Transit CP and Resorts Inc. Legacy Hotels Working REIT Units Credit together Union Central Alberta Rail EnCana Corporation Fording for Canadian a bright Coal Trust future. Fairmont Hotels

2 LEGACY SAVINGS & CREDIT UNION LTD. 72 th Annual Meeting March 4, 2014 A G E N D A Welcome by President John Lindsay Determination of a Quorum Voting Requirements (Explanation) Approval of Guests Appointment of Scrutineers Introduction of Directors, Committees, Staff, Auditor, Solicitor and Other Guests One Minute of Silence for Deceased Members Minutes of the 71st Annual Meeting Business Arising Out of the Minutes Report of the Board of Directors Report of the Auditor and Presentation of Financial Statements Report of the Credit Committee Report of the Audit and Finance Committee Report of the General Manager Report of the Scholarship Committee Unfinished Business (if any) New Business Election of Directors Presentation - Retiring Directors Door Prizes Adjournment Social Hour I N D E X Page(s) Board of Directors Report...1 Report of Credit Committee...2 Report of Audit and Finance Committee Report of General Manager...10 Report of Scholarship Committee...11 Director Eligibility Requirements...12

3 LEGACY SAVINGS & CREDIT UNION LTD. Board of Directors Report On behalf of the Legacy Savings & Credit Union Board of Directors I provide to you our 2013 Annual Report. As we are all aware, the financial industry continues to operate in a low interest rate environment. This environment has a double edged sword, while beneficial to those wanting to borrow capital from the market place; it also limits profit margins that financial institutions such as ours are able to make. That said, while the profit garnered by Legacy Savings & Credit Union Ltd. from our business activities and two Patronage Dividends from Credit Union Central of Alberta during this past year was reduced compared to previous years the Credit Union remains financially sound. During review of policies and practices, the Board of Directors continue to find that our financial institution is operated in an effective and efficient manner as demonstrated in the results of our year-end financial statement. The findings and comments by our year-end auditor (Hawkings Epp Dumont LLP) reassure the Board as to our financial institutions regulatory compliance. The commitment of our members to our institution and the dedicated work of Legacy staff is a testament of who we are, what we do and how well we do it. As we move forward into 2014, the Board of Directors and Legacy staff will continue to search out opportunities to improve our financial standing, improve our efficiency, improve membership account security and most importantly, remain committed to providing each of you the customer service you expect and deserve. Thank you for your continued patronage. John Lindsay President, Board of Directors Legacy Savings & Credit Union 2013 Annual Report 1

4 LEGACY SAVINGS & CREDIT UNION LTD. Report of the Credit Committee The Credit Committee is responsible for the prudent lending at the Credit Union. This is accomplished by reviewing in detail all loan advances that exceed the Credit Union limits, monitoring the government progress reports and reviewing/ amending Credit policies. While it appears that Loan Advances have significantly reduced since 2009, the reduction can be attributed to a change in what is reported in the new Banking System as compared to the previous system Amount of Mortgages advanced $4,661,636 $1,612,862 Amount of Consumer Loans advanced $7,672,288 $7,581,152 In addition to loan review and approval, the Credit Committee also monitors loan delinquency. As at October 31, 2013, the loan delinquency was 0.11% and write offs for the year were $151,185. The majority of the write off, as reported last year, was a member who passed away and their property was devalued and reclassified as forclosed. The Credit Committee wishes to thank the membership for their support and loyalty and the staff for their effort and assistance this past year. L. Heming Chairperson, Credit Committee 2 Legacy Savings & Credit Union 2013 Annual Report

5 LEGACY SAVINGS & CREDIT UNION LTD. Report of the Audit & Finance Committee The Credit Union now has one full year of the new accounting standards called IFRS under its belt. These are the new international accounting standards. The Audit and Finance committee met once every quarter to go over the reports produced by management and the quarterly audit report. These include the Financial Statement and other Operating reports concerning the operation of the Credit Union. These reports are the responsibility of the management team and they are compared to the budget produced at the beginning of the year. Differences between these reports and the budget are discussed with management with the objective of remaining at or a positive variance to the budget. The outside auditors go through these reports as well to assure the committee of their reasonableness. This year we had the audit firm of, Kelly and Creaghan do the quarterly reviews and the audit firm of, Hawkins Epp Dumont LLP do the audit financial statements. This increased the number of eyes looking at the books for accuracy. The Credit Union Deposit Guarantee Corporation also reviews a selection of loans during the year. (Loans, being our most valuable asset.) All reviews for the year were positive and any procedural changed suggested were implemented. The Audit and Finance committee also goes through the credit unions investment portfolio. Some reserves are mandated by government policy, just like the banks, but some represent cash not lent out at the current time. Statutory reserves must be invested at Credit Union Central but any cash beyond this can be invested as per our approved policies. Most of this excess is put into Centrals Money Market Funds. These investments are laddered so some cash is coming available regularly and can be used for member loans. All meetings of the Audit and Finance committee are reported to the whole board at the next full board meeting. Management has been excellent at furnishing all needed information for the committee. The committee would like to thank management and staff for their work this year. We would also like to thank the two auditing firms as well. The committee believes that Legacy Savings & Credit Union Ltd is in a sound financial position. Personally I would like to thank the members of the committee. It has been a pleasure to work with you all. Harry Vince Chairperson, Audit and Finance Committee Legacy Savings & Credit Union 2013 Annual Report 3

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12 LEGACY SAVINGS & CREDIT UNION LTD Report of the General Manager Fiscal was a challenging year for both the Members and Legacy Savings. Members endured more than their fair share of misfortune this last year. I am proud of the way the Credit Union displayed the true meaning of cooperation by volunteering space for membership organizations and coming to the financial aid of members whose homes were damaged or destroyed by fires or the 2013 flood. On the Credit Union side, Net Income benefited with two Patronage Dividends from Credit Union Central of Alberta. Overall Net Income declined compared to previous years. This reduction can be largely attributed to the current rate environment. The Credit Union s Balance Sheet remains strong with assets growing by 3% and our capital position at 9.62% (Capital to Assets), due to this strength, the Board of Directors were able to approve a 10% Common Share Dividend. Looking forward, Legacy Savings will investigate and act upon the implications of a stagnate prime lending rate and the anticipated consolidation of credit unions in the province. The Board of Directors, along with Management, will continue to monitor all situations and will make the required sound decisions for the benefit of the Members and the Credit Union. As always I would like to thank the Members for their support, the Board of Directors for their guidance and the staff for their work in attaining our goals and their commitment to superior member service. Rod Anderson General Manager 10 Legacy Savings & Credit Union 2013 Annual Report

13 LEGACY SAVINGS & CREDIT UNION LTD. Year 2013 Annual Report of the Scholarship Committee Year 2013 Committee Members: Mr. John Lindsay (Board Chairperson) Mr. Rod Anderson (General Manager) Mr. Donald Sawatzky Ms. Pat Rickards The decision for awarding these scholarships was based on funds available and criteria as outlined in the Guidelines for Scholarship Applicants, as approved by the Board and Scholarship Committee. The three Scholarship recipients for 2013 were: Jade Briggs - Enrolled at University of Calgary (Engineering) Parents: Don and Maureen Briggs Alexia Deis - Enrolled at the American International College (Business) Parents: Dennis and Angela Deis Kelsey Chomistek - Enrolled at the University of Calgary (Health Science) Parents: Randy and Cindy Chomistek There were no unsuccessful applicants this year. All successful applicants were mailed a congratulatory letter and a cheque for $1,000. The Scholarship Committee express their appreciation to the officers and Staff of Legacy Savings & Credit Union Ltd. for their support and cooperation. The deadline for 2014 applications has been set at the close of business, August 22, Notices to this effect will appear in newsletters and on the Credit Union s website. Applications with the criteria are available anytime at the Credit Union or on our website. When completed and with the Official Transcripts or a copy attached, the application should be in the Credit Union office on or prior to August 22, Respectfully Donald A. Sawatzky Scholarship Committee Chairman Legacy Savings & Credit Union 2013 Annual Report 11

14 LEGACY SAVINGS & CREDIT UNION LTD. Director Eligibility Requirement 1. A Nominee must have reached the age of majority. 2. A Nominee must have been a member of Legacy Savings & Credit Union Ltd. in good standing for at least one year prior to nomination. 3. It is suggested that a Nominee use the Credit Union as his/her prime financial institution. 4. A Nominee must be in good standing at the Credit Union and where a borrower, loans must be current. 5. A Nominee must be of good character, bondable, and agree to treat all business of the Credit Union in the strictest confidence. 6. A Nominee must not have business dealings or personal circumstances that are a conflict of interest. 7. A Nominee must be committed to Credit Union principles and concepts. 8. A Nominee must have the necessary time available and the desire to attend regular monthly Board meetings, committee meetings, Credit Union system meetings, and training and upgrading meetings. 9. A Nominee must be a Canadian citizen or a person who has been lawfully admitted to Canada for permanent residence. 10. A Nominee must not have the status of a bankrupt. 11. A Nominee must not be a professional advisor to the Credit Union. 12. A Nominee must not have been a director, officer, or employee of another Credit Union, Credit Union Central, or the Deposit Guarantee Corporation for a five year period preceding the election. 13. A Nominee must not have been convicted of an indictable offence of a kind related to qualifications, functions, or duties of a corporate director or an offence under the Credit Union Act, for a five year period preceding the election. 14. A Nominee must not be a dependent adult under the Dependent Adults Act, a formal patient under the Mental Health Act, or a person found to be of unsound mind by a court elsewhere than in Alberta. 12 Legacy Savings & Credit Union 2013 Annual Report

15 STAFF MEMBERS Rod Anderson... General Manager Lisa Hartley...Manager, Deposit Services Crystal Soloshy... Senior Loans Officer Stephanie Cooper... Senior Loans Officer Sheila Covell... Accounting Clerk Shelley Schmitz... Member Service Representative II Kristen Tanner...Member Service Representative Tammy Rimes (Part Time)...Member Service Representative Ashely Robichaud (Contract)...Member Service Representative Shelby Burgess... Maternity Leave VISION STATEMENT: To be the preferred financial institution for current and future members. MISSION STATEMENT: We will achieve our Vision by providing our members with affordable, quality financial services while maintaining the co-operative principle of people helping people. BOARD OF DIRECTORS John Lindsay...President Lorraine Heming... Vice President *Harry Vince...Director *Alanna Hargan...Director Gary Kennedy...Director Randy Farkas... Director * Richard McGill...Director * Term expires at conclusion of the Annual Meeting.

16 Legacy Savings & Credit Union Ltd Avenue S.E., Calgary, Alberta T2G 0V