Calgary, Alberta FEBRUARY 11, 2014 AGENDA

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Deborah Banks
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1 2013 Annual Report

2 Calgary, Alberta 61 st ANNUAL GENERAL MEETING FEBRUARY 11, 2014 AGENDA 1. Registration of Members 2. Establishment of a Quorum 3. Introduction & Approval of Guests 4. Appointment of Scrutineers 5. Adoption of the Minutes of the Last Meeting 6. Report of the Board of Directors 7. Report of the General Manager 8. Financial Statement Presentation & Auditor s Report 9. Report of the Credit Committee 10. Report of the Audit and Finance Committee (ALCO) 11. New Business (a) Resolutions (b) Election of Credit Union Officers (c) Question Period 12. Adjournment

3 BOARD OF DIRECTORS REPORT 2013 On behalf of your Board of Directors, Management and Staff of your Credit Union, welcome to the 61st Annual General Meeting. This year is one of transition, with the recent acquisition of Canada Safeway Ltd. by Sobeys West Inc. It has been business, as usual, for the Safeway Credit Union, as we move forward to continue to offer financial services to you, our valued members, and continue our efforts to grow our membership base. When the acquisition was announced, one of the common questions from our members was around how the financial services, and the relationship with Safeway Credit Union, would be affected. Rest assured, our credit union will continue to operate in its current structure and your dealings with us will remain unchanged. Some adjustments will need to take place to accommodate the ownership change. The name Canada Safeway Limited is no longer an active business name, and as such, we will have to make changes to our Bond of Association and to any of our Bylaws referring to the name Canada Safeway Limited. Your board is also contemplating a potential name change to enable us to offer our personal services to Sobey s West Inc. employees and their families. As credit union members, you continue to have a voice in the decision-making process, and the direction of our Credit Union and any of these above mentioned changes would require membership approval. Our Board of Directors declared there would not be a patronage rebate to its members this year, due to the continuing economic challenges. We will be adding $104,561 to our retained earnings in order to build on our equity position. This year, we experienced a steady growth in our asset-base, and we wish to continue to maintain a strong capital position. As your Credit Union, we remain committed to providing financial services to our members, with professionalism and dedication. I wish to express my appreciation to all the board members for the leadership and commitment, and to the management and staff for your outstanding efforts. Respectfully submitted by the BOARD OF DIRECTORS Barrie Schimpf, President Ken Stewart, Vice President Marla Clermont, 2 nd Vice President Colby Cavanagh, Director Sandra Dobrowolski, Director Shawn Eltom, Director Rob Toews, Director -Chair Audit & Finance (ALCO) Committee 2

4 GENERAL MANAGER S REPORT 2013 It is my privilege to welcome you to the 61 st Annual General Meeting was not without its challenges. Our bottom line continues to be affected by external pressures, such as the interest rates continuing at alltime lows, and other economic factors. Even in this unstable environment, we were able to grow our asset-base by over 6%. Our capital position remains strong at 16.40% of risk-rated assets, and our liquidity is above the requirements of the Credit Union Act. Our operating expenses continue to improve with the steady lowering of our costs over the last 5 years. Overall, we had some positive results in We were able to visit 32 Safeway store locations in Calgary, and 16 store and plant locations outside the Calgary area, in this past year. Feedback from the employees was positive, and we achieved a net growth in our membership. We are committed to making the necessary changes to support the transition to the Safeway/Sobey s environment so that we can continue to grow our Credit Union. I would like to take this opportunity to thank my staff, who were instrumental in helping to continue to provide the value-added service you, as members, are accustomed to. I would also like to thank the Board of Directors for their insight and support over the last year. These dedicated individuals spend much of their personal time ensuring our Credit Union is meeting the needs of its members. Respectfully, Cliff Roberts General Manager 3

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36 $41,114, $42,687, $41,675, $43,738, $46,423, Assets Millions ,

37 $38,248, $39,787, $38,734, $40,776, $43,357, Liabilities Millions

38 $3,224, $3,257, $3,359, $3,131, $3,214, Equity Includes Allowance Millions

39 $264, $174, $192, $159, $144, Profit Before Loan Rebate, Mortgage/LOC Dividend, RRSP Bonus & Allowance Thousands

40 % % % % % Operating Expenses % - Average Assets

41 $33,073, $32,890, $32,973, $34,838, $33,619, Loans Millions

42 Membership

43 CREDIT COMMITTEE REPORT 2013 The Credit Committee would like to welcome fellow members and guests to the 2013 Annual General Meeting and is pleased to report on the activity in the Loan Department. The board of Safeway Credit Union is assigned lending limits by the Credit Union Deposit Guarantee Corporation. In turn, the Board delegates responsibility for the credit granting to the Credit Committee. The Credit Committee is responsible for ensuring that loans are made in keeping with the lending policies and procedures of the Credit Union. Loans in excess of the lending limits are forwarded to the Credit Union Deposit Guarantee Corporation for approval. During the year, the Credit Committee approved 1620 loans totaling $9,542,141., consisting of personal loans, line of credits and mortgage loans. In addition, the overdraft protection balance year ending October 31, 2013 was $511,328 for total loans granted of $10,053,469. Our delinquency at year end was 0%, and our write offs were targeted for less than.75% of our loan portfolio. We achieved the lowest write-offs in the history of our Credit Union of.22% of our loan portfolio or $61,445 (after recoveries). This report is respectfully submitted on behalf of your Credit Committee with appreciation for your continued support. Credit Committee Members: Cathy Bowes Chair Cindy Purvis Anke Rotzal 42

44 Audit & Finance Committee Report (ALCO) The Audit & Finance Committee (ALCO) held quarterly meetings and reported to the Board after each meeting. The Committee reviewed the scope of the external audit with Curtis Friesen, CA of Hawkings Epp Dumont LLP, Chartered Accountants, prior to our audit. All financial reports were reviewed by the Committee during the year. The financial statements as at and for the year ended October 31, 2013, were reviewed by the Committee and Hawkings Epp Dumont LLP, Chartered Accountants. We can assure our members at this time that your affairs in this Credit Union are in good standing. Repectfully submitted on behalf of: Rob Toews - Chair Ken Stewart Marla Clermont 43

45 RESOLUTION #1 Resolution: Submitted By: Whereas: To confirm an amendment to the by-laws of the Canada Safeway Limited Employees Savings and Credit Union Limited The Board of Directors of Canada Safeway Limited Employees Savings and Credit Union Limited. The by-law 2.10 reads, (Bond of Association) 2.10 a) reads, Canada Safeway and Related Companies means Canada Safeway Limited, Macdonald s Consolidated Ltd., Lucerne Foods Ltd. Storecare Supply, Chain Tibbet and Britten Group, and any of their successor corporations, and any corporation in which Canada Safeway Limited owns a controlling interest. Employee means a person employed by Canada Safeway and Related Companies, any former employee, retired employees, and employees of the Credit Union. Family Member means a spouse of the employee including a common-law spouse, and other members of the employee s immediate family who live in the same household as the employee b) reads, Membership in the Credit union is limited to employees of Canada Safeway limited and Related Companies and their family members. Whereas: Now Therefore: The name Canada Safeway Limited no longer exists Be it resolved that by-law 2.10 be changed to read, (Bond of Association) 2.10 a) Sobeys West Inc. Safeway means Employee means a person employed by Sobeys West Inc. Safeway and their subsidiaries or related companies, Any former employees, retired employees, and Employees of the Credit Union. Family Member Means a spouse of an employee Including a common-law spouse, and other members Of the employees family b) Membership in the Credit Union is limited to Employees of Sobeys West Inc. Safeway and their subsidiaries or related companies And their family members. 44

46 RESOLUTION #2 Resolution: Submitted By: Whereas: Whereas: Now Therefore: To confirm an amendment to the by-laws of the Canada Safeway Limited Employees Savings and Credit Union Limited The Board of Directors of Canada Safeway Limited Employees Savings and Credit Union Limited. The by-law 7.12 c) reads, takes employment with a competitor of Canada Safeway Limited the name Canada Safeway Limited no longer exists Be it resolved that by-law 7.12 c) be changed to read c) Takes employment with a competitor of Sobeys West Inc. or Safeway 45

47 OFFICERS & STAFF Board of Directors Barrie Schimpf, President Ken Stewart, Vice-President Marla Clermont, 2 nd Vice President Shawn Eltom, Director Colby Cavanagh, Director Sandra Dobrowolski, Director Rob Toews, Director Audit & Finance Committee (ALCO) Rob Toews - Chair Ken Stewart Marla Clermont Credit Committee Cathy Bowes - Chair Cindy Purvis Anke Rotzal Staff Cliff Roberts, General Manager Parin Ladha, Assistant Manager Cindy Purvis, Administrative Assistant Colette Weber, Office Supervisor Wendy Mertick, Front End Supervisor Lisa Ingham, Teller Arlie Mahood, Teller Loan Department Cathy Bowes, Manager, Lending Services Anke Rotzal Loan Officer 46

48 The Credit Union Guarantee: Three Levels of Protection The Credit Union Deposit Guarantee Corporation, a Provincial Corporation, and credit unions, operate under the authority of the Credit Union Act. This legislation provides a three-level system of deposit protection. Level One: Each credit union is required to build and maintain capital to a level outlined in the Credit Union Act and Regulations. A credit union's capital is comprised of: retained earnings, and common shares and investment shares (if any) owned by its members Level Two: The Credit Union Deposit Guarantee Corporation provides a 100% guarantee of all deposits with Alberta credit unions. This protection includes accrued interest to the date of payout. Level Three: The Government of Alberta ensures that the Credit Union Deposit Guarantee Corporation's obligation to depositors will be carried out. 47

49 th Avenue S.W. Calgary, Alberta T3C 0J8 Telephone: Fax: Toll free (AB & BC): Office hours: Monday to Friday from 8:00am to 4:30pm ONCE A MEMBER ALWAYS A MEMBER

Canada Safeway Limited Employees Savings & Credit Union Limited. Annual Report

Canada Safeway Limited Employees Savings & Credit Union Limited 2014 Annual Report History Incorporated in 1952, approximately the same time the other Safeway Credit Union s formed in the western Canadian