FINANCIAL HIGHLIGHTS

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2 FINANCIAL REPORTS PRESIDENT S REPORT 03 CEO S REPORT 04 AUDITORS REPORT 06 FINANCIAL HIGHLIGHTS FINANCIAL POSITION 07 STATEMENTS OF INCOME 08 CHANGES IN MEMBERS EQUITY 09 CASH FLOW 10 ANNUAL REPORT

3 PRESIDENT S REPORT Welcome to our 66th successful year as a solid financial credit union serving the residents of the Creston Valley. Your Board of Directors has had a very busy year and all of us have worked extremely hard to ensure we serve you, our members in your best interest. I hope you have visited our website where we provide you with up to date information. On this site is information regarding the amalgamation process we are currently investigating, please check it out. The partner credit unions are considering an amalgamation because the seven have a long history of alliances and partnerships across the region. Those arrangements have served the seven credit unions well in the past and they have contributed to making these current discussions possible. The business case that is currently being undertaken will investigate the benefits that may be available through amalgamation. The seven Boards of Directors believe that we have a responsibility to explore this potential on your behalf. The Board of Directors have declared patronage and dividends for fiscal year 2017 to be distributed to our members as a 4.0% interest rebate on loan interest paid; a 4.0% interest premium on deposit interest earned; a 10% rebate on service charges paid and a 7.0% dividend on Class C equity shares. Dividends and interest patronage paid back to our members totals $424,102. It is a pleasure that we are such a successful credit union that we can afford to give back to you, the member. During the past year, your credit union has donated over $50,000 to various community organizations in the Creston Valley and area. These donations add to and make our community stronger. New member cards will soon be issued and in addition to the current convenience, these new cards will be able to handle tap and pay when you are shopping. Just another convenience we wanted to provide to our members. Once again, I want to say thank you to the staff of the Credit Union for your dedication and friendly service to the members. The front line staff that you deal with makes our Credit Union a special and enjoyable experience. Also thanks to Jim, Lawrence & Kim, our management team for making the Creston and District Credit Union such a successful financial intuition. Don Tarrant President, Board of Directors 03

4 CEO S REPORT On behalf of the management and staff I am pleased to provide this overview to the membership of our operational results for Member loan demand increased steadily throughout the year. While personal loan activity was somewhat subdued, our commercial loans requests continue to increase. However, the bulk of our activity in 2017 centered around personal residential mortgages. Over the year we funded $16 million in new advances. The net result after normal paydowns and payouts was a gain in the total portfolio of $5.7 million. This year over year growth rate of 8.75% exceeded our expectations for Member deposit activity was also steady over the course of the year. We achieved good deposit growth in both Plan 24 and registered plan accounts during the year. However, this growth was not sufficient to offset brisk activity in chequing accounts, which by year end had decreased $3.7 million from the previous year. As a result, our total member deposits have decreased $2.3 million over the year. Asset growth is generally driven by an increase in member deposits. Despite our inability to do this in 2017, we managed to control our assets sufficiently to maintain a total very similar to last year end. We were also able to achieve our plan to alter the mix of our assets. The strong loan demand allowed us to employ some of our excess cash into loan products which produce a higher income yield to us than our current investments do. Financially we enjoyed a very successful year. The changes in our investment strategies I spoke of last year have begun to impact our income statement. This is evidenced by an increase of $325,000 in our investment income over last year. This, combined with a small reduction in total expenses, has contributed to a healthy year financially. Our largest subsidiary company, Growth Financial Corp., is owned jointly and equally with Heritage Credit Union in Castlegar. This company provides financial investment and retirement planning services, plus operates several general insurance agencies throughout the Kootenays and the Okanagan. The company continues to grow, and in 2017 added an additional two insurance agencies to its operations. The company also continues to provide a substantial return on investment to its parent credit unions. In 2017, 45% of our pre-tax income was contributed by Growth Financial Corp. I would like to thank our staff for their dedication and service commitment; our Board of Directors for their confidence in your management team; and our members for your continued strong support. Respectfully, Jim Miller, CEO 04

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6 INDEPENDENT AUDITOR S REPORT 06

7 FINANCIAL POSITION 07

8 STATEMENT OF INCOME 08

9 CHANGES IN MEMBERS EQUITY 09

10 STATEMENT OF CASH FLOW 10 A complete set of the financial statement is available at the Credit Union ANNUAL REPORT 2015

11 Creston & District Credit Union is and will continue to be a sound, profitable, independent, progressive, service-oriented financial institution. We are democratic and member owned, dedicated to servicing our members needs and committed to contributing to the well-being of our community. Photos by Brian Lawrence ANNUAL REPORT

12 140 11th Ave. N, Creston, BC V0B 1G0