2014 Annual Report - Westminster Savings Credit Union

2014
Annual
Report
Our
business,
at its core, is about helping you achieve your most important goals. That’s why we exist.
As a member-owned organization, your voice counts. We encourage you to speak up if
you have ideas or concerns you wish to share. We are committed to using your feedback
to enhance and expand our products and services to better meet your needs.
Each year, we hold various events for members, including open houses and our annual
general meeting. These events provide a valuable opportunity for you to be heard and
we wholeheartedly encourage you to attend. Details of this year’s events are:
New Westminster Branch Open House
100-601 Sixth Street, New Westminster
Wednesday, April 15, 6 p.m. to 7:30 p.m.
Maple Ridge Branch Open House
22415 Lougheed Highway, Maple Ridge
Tuesday, April 21, 6 p.m. to 7:30 p.m.
Newton Branch Open House
500-7488 King George Blvd, Surrey
Wednesday, April 22, 6 p.m. to 7:30 p.m.
Annual General Meeting
Maple Ridge Arts Centre & Theatre
(The ACT)
11944 Haney Place, Maple Ridge
Wednesday, September 23
Registration at 6:15 p.m.
Meeting at 7 p.m.
Contents
Our purpose . . . . . . . . . . . . . 1
Our vision . . . . . . . . . . . . . . .1
Celebrating 70 years . . . . . . . 2
A message to our members . . . 4
You’re speaking, we’re listening . .5
Summarized consolidated
financial statements . . . . . . . . . 13
Contact information . . . . . . . 16
We hope to see you there!
A
Our
vision
Our
purpose
People working together to enrich
the lives of our customers.
We exist to advise, empower and
enable customers to achieve their
most important goals.
1
Celebrating 70 years
1944 to 2014
1940s
1960s
1944:Westminster Centre Credit Union is
incorporated with $75 in assets and 18 members.
1946:Members vote to change the credit union’s
name to Westminster Credit Union.
1949:The credit union’s assets reach $72,108.
1960:Assets pass the $2 million mark making
Westminster Credit Union one of the
seven largest credit unions in B.C.
1965:Westminster Credit Union has helped its
members with more than $12 million in
loans since inception.
1969:We celebrate our 25th anniversary with
more than 5,000 members and assets
topping $6 million.
1950s
1952:Westminster Credit Union starts granting
mortgages to members.
1957:We are the tenth largest of the 306
active credit unions in B.C. with assets
of $1,237,043.
1970s
1974:Westminster Credit Union starts
collecting utility bill payments as a
service to members, installs safety
deposit boxes and agrees to operate
the B.C. Motor Vehicle Branch in
Port Coquitlam after the provincial
government introduced Autoplan.
1975:Westminster Credit Union is amongst the
first financial institutions to introduce daily
interest savings accounts, open mortgages
and escalating rate GICs.
1976:We expand our services with the launch of
Westcu Insurance Services Ltd. to provide
general and life insurance for members
and the public.
1977:The B.C. credit union system is
amongst the first in Canada to develop
computer systems. Westminster Credit
Union begins installing computers
in 1977, helping streamline financial
transactions for members.
1959:As the decade closes, we offer our
members additional security through
the Provincial Credit Union Share and
Deposit Fund guaranteeing 100% safety
of their savings.
2
Celebrating 70 years
1944 to 2014
2000s
2000:We sell our insurance division and introduce
Westminster Savings Financial Planning Ltd. to assist
members with their investment goals.
2005:Westminster Savings opens its Member Service Centre to
provide even more convenient call centre service to members.
2007:We introduce a High Interest Savings Account and
Business Investor Savings Account for members.
1980s
1980:Membership passes the 20,000
mark and assets increase to more
than $100 million.
1984:We join THE EXCHANGE® ATM
Network enabling our members
to draw cash or make deposits 24
hours a day.
1989:We introduce Home Banker,
an innovative system that lets
members check account balances,
transfer funds and receive current
mortgage and loan rates by
punching a personal code on a
touch-tone phone. The credit union
is amongst the first in Canada to
introduce this convenient 24-hour
service to members.
2008:Westminster Savings is the first credit union
in Canada to introduce mobile banking.
1990s
1991:Westminster Credit Union is selected as
the official financial institution for the
1991 BC Summer Games.
1992:We launch our charitable foundation with
$250,000 in seed money.
1993:Westminster Credit Union changes its
name to Westminster Savings Credit
Union (Westminster Savings).
1994:Our first 50 years see assets approach
$500 million and membership climb to
more than 30,000.
1996:We establish our leasing division, WS
Leasing Ltd. with $30 million in assets.
1997:Westminster Savings merges with
Maple Ridge Community Credit Union.
2010s
2010:We rebrand and debut our new logo and
tagline Achieve better balance™.
2011:We introduce a new community
investment program, Project Better
Balance, focused on providing
access to arts and active living.
2013:Westminster Savings is the first financial
institution in Canada to launch Deposit
Anywhere™, a service that allows members
to take a photo of a cheque on their
mobile device and deposit it automatically
into their account.
2014:By the end of our 70th year, assets reach
$3.2 billion and membership
surpasses 55,000.
3
2014 marked a momentous year
for Westminster Savings. We celebrated a
significant milestone – our 70th anniversary –
and are very proud to have remained true to our
founders’ central concept of adding value for our
members, employees and the communities we
serve since 1944.
A
message
to our
members
From Bill Brown, board chair and
Gavin Toy, president and chief executive officer
We entered the year focused on building upon our past successes and ensuring the
future growth and sustainability of your credit union. Seventy years in business is a
significant achievement for any organization and one that we are extremely proud
of. We started out in New Westminster in October 1944 with just one branch, 18
members and $75 in assets, which is a far cry from where we stand today: 12 branches
across Metro Vancouver, more than 55,000 members and $3.2 billion in assets under
management! It’s thanks to your ongoing support and commitment to your credit
union that Westminster Savings is the success it is today. As we look to our future,
we can assure you that we remain committed to our purpose of advising, empowering
and enabling you to achieve your most important goals for the next several decades
and beyond!
With your continued support, our growth and success over the past 70 years have
put your credit union on a solid financial footing as we consider future options for
growth and innovation. Westminster Savings has continued to perform well in spite
of a challenging operating environment for financial institutions, which includes
reduced financial margins, heightened competition, growing regulatory and
compliance costs, and evolving member needs.
In considering our long-term strategy, we identified several options for growth that
would help position your credit union to proactively adapt to these challenges and
successfully meet your needs well into the future. One option involved finding a
like-minded partner and as a result, in September 2014, we announced that we
had entered into merger discussions with Prospera Credit Union. At that time, we
committed to carrying out extensive due diligence to ensure the merger would be
beneficial for your credit union and the right fit for our members, employees and
our local communities before proceeding.
4
Following in-depth analysis of the benefits, risks and costs of bringing
the two credit unions together, in January 2015, the boards of directors
of Westminster Savings and Prospera Credit Union mutually agreed
to cease merger discussions. Although disappointing, once we had
determined that the proposed merger was not able to deliver many of
the benefits we had hoped for, our choice was clear. Our responsibility
is and always will be to act in your best interests as members of
Westminster Savings.
Your credit union is a very well-managed, financially strong and
successful financial co-operative and no matter what the challenges,
we are well positioned to continue to put the needs of our members,
employees and local communities above all else. We are continuing
to explore other avenues for growth and are already investigating
several potential new branch locations in fast-growing areas — South
Vancouver and South Surrey amongst others — to help expand our
network and provide added service and convenience for our members.
One of our key priorities for 2014 was to continue to find ways to make
banking easier and better for our members. To that end, we expanded
our customer feedback program, Member Voice, to improve our
understanding of what is most important to you. As a direct result of
your feedback, we introduced several new products and services in
2014. Identifying even more opportunities to make banking easier and
better for members will remain a key focus for your credit union in 2015.
We recognize that the dedication and commitment of our employees
is essential to meeting your needs and creating an exceptional
customer experience. Accordingly, in 2014 we continued our
commitment to creating a healthy and positive workplace for our
employees through enhanced communications and increased
investment in leadership development.
declining revenues to deliver a bottom line of $8.1 million, down just
slightly from $8.5 million a year earlier. These results allow your credit
union to maintain a very healthy capital level of 15.9%, well above the
supervisory threshold of 10%.
Since the credit union was established 70 years ago, we have always
believed that one of the strongest measures of your credit union’s
success is our ability to give back to the communities we serve. In
2014, we invested more than $500,000 in our local communities
through grants from our charitable foundation, corporate donations
and sponsorships to create arts and active living opportunities aimed
at helping individuals and families Achieve better balance™. In addition,
we contributed $500,000 to the Westminster Savings Foundation,
bringing the foundation’s community endowment fund to $9.2 million,
which ensures an ongoing source of community funding for many
years to come.
We recognize that our achievements over the years wouldn’t
be possible without the loyalty and collaboration of you and our
employees, and we sincerely thank you for making 2014 — our 70th
year — a truly memorable one for Westminster Savings!
Bill Brown
Chair, Board of Directors
Gavin Toy
President and Chief Executive Officer
You’re
speaking
We’re
listening
In the pages that follow, we
hope you enjoy reading how
your feedback has helped
shape your credit union and
the value we aim to deliver
to you, our members.
Overall, our progress in 2014 highlights another year of relatively
strong financial performance. Assets under management grew by
6.6% to $3.2 billion, while member deposits grew by 7.2% to $2.1
billion. Although net interest and other income were down $3.5
million compared to 2013, costs were carefully managed in line with
5
You
said
Make banking and saving
money easier for me
H a n dsf ree Savin g s
Families can bank together for one low price!
Launched last June, our Unlimited Family Plan is a package of banking services and products that allows busy
families and friends to share convenient and valuable banking features – for one low price.
The Plan has four core features:
$40,000
We helped customers save
just by using their
Member Card® in 2014.
Did you know?
No worries banking
Rest easy with two email
money transfers and
three non-network ATM
withdrawals free each month,
and two overdraft fee
refunds annually.
Handsfree savings
Try saving with our automatic
change saving service. When
paying by debit, round up to
the next dollar (or a specified
amount) and transfer the
extra amount to a high
interest savings account.
Unlimited chequing
Truly unlimited, including
bill payments, withdrawals,
deposits and debits for one
low price.
$20 family pass
Share all the perks of the
plan with up to three friends
and family members for just
$20/month. The charge
drops to $15/month if the
family holds a mortgage
with Westminster Savings.
Unlimited Family Plan members
can even pool their Handsfree
savings in one account, like a virtual
piggy bank, to save up for special
gifts or family vacations. Saving
money couldn’t get any easier!
Sharing the benefits
Margaret Tarling signed up for the Unlimited Family
Plan with her two daughters, Tracey and Andrea,
and her granddaughter Kailey after learning about it
from her personal account manager, Janet Redford.
They don’t all live in the same residence, but they
do have one thing in common: they each have a lot
going on in their lives. Margaret is getting close to
retirement, her two daughters are busy mothers,
and her granddaughter is a high school student.
“We’re each managing busy schedules as it is; we
don’t need one more thing to think about, and that’s
why we appreciate how convenient the services are.
Not to mention we’re all saving money with the Plan.”
Steven Balogh, personal account manager at New
Westminster branch, presents Brian and Jocelyn Gardner
with their Smart Move gift basket.
Make the Smart Move!
When our customers
are looking to buy or sell
property, our Smart Move
program matches them
with a realtor best suited
to their specific needs.
“The entire process
was completely stress
free for us . . .
We were really
impressed with the
Smart Move program.”
Introduced in January
2014, the program makes
the process of real estate transactions as
stress free as possible. Members who use the
program also receive a gift basket and a $500
Home Depot® gift card.
Members Brian and Jocelyn Gardner found
out just how easy the process is when they were
looking for a new condo in White Rock in June.
From start to finish, they were matched with a
real estate agent, found a condo and signed the
mortgage papers in just under two months.
Andrea Brenner, Janet Redford, personal account manager, Tracey Tarling, Margaret Tarling, Kailey Silverson
“The entire process was completely stress free for
us,” says Brian. “The agent worked hard and kept
in touch regularly. We were really impressed with
the Smart Move program.”
6
You
said
Make banking more
convenient for me
“. . . she can meet
with me outside
of regular
business hours.”
Faster account opening
Enjoy banking on the go
This year, we also introduced some changes aimed
at making it easier and faster for members to open
accounts. Our new account opening procedure
automatically populates our member application
form. Applications can then simply be printed in
branch and signed by the member.
We expanded our free mobile banking app to Android
users this year. We know our members are busy,
and now both Android and iPhone users can enjoy
easy and convenient banking on the go. With the
Westminster Savings Mobile App, it’s simple to bank
anywhere, anytime. With our Deposit Anywhere™
feature, you can even deposit your cheques just by
taking a picture with your mobile device.
Mobile banking with Westminster Savings is quick,
intuitive and secure. It allows you to:
• Check account balances • Transfer funds between
• View recent transactions Westminster Savings
accounts
• Pay bills
• Send funds securely
• Securely deposit a
with Interac® e-Transfer
cheque using your
• Locate branches
smartphone or tablet
and ATMs with your
phone’s GPS
Crystal White-Winterton, Cherith Richardson, mobile mortgage specialist
Mobile mortgage specialists: Name the time and place, and we’ll be there!
In 2005, Crystal White-Winterton had four children,
a fifth on the way — and her husband was diagnosed
with cancer.
Determined to reduce exposure to harmful
chemicals in the household, Crystal began making
her own all-natural skin care products from locally
sourced ingredients. Today, her husband is cancer
free, and what started as a hobby is a thriving
business: she has her own skin care product line,
Sugar & Spice, with over 100 products listed in 36
Save-On-Foods® across B.C.
Managing five children and a successful business
meant that when the house mortgage came up for
renewal in November, Crystal couldn’t get away to
sign the papers.
Our solution? We sent Cherith Richardson, one of
our mobile mortgage specialists, to meet with Crystal
and her husband at their convenience.
Our team of mobile mortgage specialists will
discuss home financing options with members,
explain the paperwork involved and find the best
mortgage solution for their needs. We created this
role a few years ago specifically to offer flexibility to
our busy members.
“Cherith met my husband and I at our kiosk in the
mall – with the mortgage documents in hand!” says
Crystal. “Her service is personal, and her availability is
convenient because she can meet with me outside of
regular business hours.”
Did you know?
Free Wi-Fi is now
available at all our
branches to help
you stay connected!
Cherith also helped Crystal refinance her mortgage,
freeing up enough funds for Crystal to finish
building a new shop. She needs the additional work
space as she’s planning to start selling her products
in Alberta in 2015.
Says Crystal. “Thanks to Cherith’s help and expertise,
I can finally move operations to a larger facility and
expand my business.”
7
You
said
Help improve my
financial future
Making dreams come true
“Overall, choosing to become a
member at Westminster Savings was
one of the smartest things I’ve done in
my life,” says Anita. “And when it came
to buying real estate on my own, the
support, assistance and encouragement
I received was reassuring and
comforting. Westminster Savings is like
an extended family to me.”
Anita Ewart joined our White Rock branch in July 2010
after moving to the area from the Okanagan to enjoy
her retirement. She was introduced to Paulo Moulatlet,
financial planner, by one of our financial service representatives. After carefully examining her
situation and identifying her needs, Paulo helped Anita by recommending a much simpler approach
to her portfolio that would generate a monthly income to add to her existing pension income.
In 2012, Anita decided she wanted to buy a condo and turned to Paulo for help. He worked with Dave Warren,
personal account manager, to help make her dream of owning a place in White Rock come true.
Charlene Wallis, Dave, Linda
The benefits of planning ahead
Ever since our doors opened for business in 1944, our
purpose has been to help our members achieve their
most important financial goals. So you can imagine
how happy Charlene Wallis, a financial planner at
the Austin branch, was to hear that she had helped
two of her clients, Dave and Linda, to reach their
retirement savings goal in 2014, a full year early.
“We see Anita in the branch regularly and she’s come to know all of our team members by name,” says Paulo.
“We know making big decisions such as buying a home or managing retirement funds is extremely stressful. It’s
very rewarding to be able to help our members with such life-changing decisions.”
Looking to get a head start on your
financial future? Meet our investment
specialists
In 2014, we expanded wealth management services
for members by adding the new role of investment
specialist to our branch teams. As a result, we now
have five investment specialists spread across our
branch network to help support the needs of members
who are interested in making investments but don’t
feel ready to engage a financial planner just yet.
Our investment specialists focus on helping members
create wealth and offer expertise in mutual funds and
term deposits. Where they identify a member’s need
for more complex financial planning, estate and tax
planning or life insurance, they will refer the member to
our team of certified financial planners.
18 years ago, Charlene developed a retirement plan
for the couple and calculated the total savings needed
for them to retire in 2015. She has met with them
every year since to review and update their plan.
“At Westminster Savings, we look for creative
solutions to do what’s best for our members,”
says Charlene. “I worked with Dave and Linda to
explore various investment options and build their
retirement plan. They were completely dedicated to
their goal and stuck to their budget. It’s so satisfying
to be able to see our members achieve their goals
and I’m thrilled to now be helping their adult
children with their investments.”
Investment specialists: Damon Hoy, Karen Ureta, Ana-Maria
Trujillo, Michelle Law, Robby Rasoda
Did you know?
Paulo Moulatlet, Anita Ewart, Dave Warren
You’ve trusted us with $645 million
of your investments since we
started offering wealth management
services in 2000. We build financial
plans customized to your unique
needs and also offer regular
seminars aimed at helping you
navigate topics such as financial
planning, wills and estates, and
power of attorney.
8
You
said
Help me grow my business
Investing in small business
In 2014, we expanded our small business team with
the addition of three new small business relationship
managers (SBRMs) to better support the needs of
our business members across Metro Vancouver and
the Fraser Valley.
Local decisions make all the difference
“It’s great to know so many
people are working together to
help my business succeed.”
Curbside cuisine is a
busy business
When Norm Kerfoot needed a
more personal approach to his
business banking, Westminster
Savings was his first choice.
Our SBRMs are mobile small business banking experts
who serve as a single point of contact for business
owners. They provide holistic financial advice and
respond to a wide range of personal and business
banking needs including accounts, credit cards, loans,
mortgages, and term deposits at a time and place that
is convenient for our business members. SBRMs also
collaborate with other Westminster Savings experts
such as our leasing professionals to help meet clients’
needs. Having this level of personal service saves
business owners considerable time and money.
The owner of Apollo Custom
Manufacturing, Norm
customizes food trucks for
clients in North America and
around the world. While the
Dawn Adams, Norm Kerfoot
food truck industry isn’t new,
its popularity has exploded in recent years, keeping Norm extremely busy. Having a small business expert who
proactively takes care of his business banking requirements is exactly what he needs.
Jennifer Watts, manager, Small Business Markets (second from left),
with some of our small business relationship managers, Peter Wingert,
Sajad Seifian, Dawn Adams, Vikram Behla, Caillie Hayes
Dawn and Jennifer Watts, manager, Small Business Markets, then met with Norm on his company site for
an extensive tour of the operations. The visit allowed Dawn and Jennifer to determine what future growth
plans would look like, and from that, they identified opportunities to give Norm better financial flexibility for
his growing business. Dawn also put Norm in touch with James Mitchell, one of our financial planners, to
assist with his group benefits insurance needs.
When Norm first met with SBRM Dawn Adams, he was impressed with her initiative. “She came prepared
with various scenarios and suggestions for my business account. I was struck by the high level of proactivity
with the service and the information being offered,” says Norm.
A few years ago, Sunny Mehroke was a budding
entrepreneur with one construction company. He
needed financial resources and support to ensure he
could grow his business.
Most financial institutions base lending decisions
on a business’ lending history, but as a relatively
new business owner, Sunny needed slightly broader
lending criteria. Westminster Savings took into
account his business and existing holdings, and
subsequently approved a business loan.
“At Westminster Savings, the credit approval process is
local and, in my situation, that made all the difference. I
found my borrowing experience easy and efficient.”
Today, Sunny and his business partners Sat Baughan,
Kul Dhaliwal and Manjit Baughan own and operate
several construction companies and two trucking
companies, ELS Transport and Trans-Logic. In
addition to business and construction financing from
Westminster Savings, they now lease trucks from our
leasing division. Sunny also holds two mortgages with
us — one for his residence and one for his office.
An added benefit? “The service is more
personalized, and I deal with employees who are
approachable and available.”
It was a tremendous help, gave him good ideas and put him in a different mindset about his business banking.
Did you know?
Our full-service leasing division provides specialized vehicle and equipment
leasing solutions to help meet the needs of our customers from coast to coast.
As one of B.C.’s largest privately owned leasing companies, our leasing division
supplies fast and efficient financing options to customers on all makes and
models of automobiles, as well as providing fleet and equipment lease financing.
Janice Khunkhun, business relationship manager,
Sunny Mehroke, Sat Baughan, Kevin Tan,
business relationship manager, Kul Dhaliwal
“The credit approval process is local . . .
I found my borrowing experience easy
and efficient.”
9
You
said
Tell me more about the
things I need
Keeping you informed
Many of you said email is the best way to receive
information from us. We want to make the
information we send you as useful and relevant to
your needs as possible. As a result, we have made
it easy for you to let us know what types of updates
and financial advice you would prefer to receive from
Westminster Savings. Choices include:
• News and event notices
• Product information and offers
• Financial tips and advice
• Surveys, research and feedback
Next time you receive an email from us, click on
the link at the bottom of the email to manage your
email communication preferences.
Seminars, workshops and networking events
Giving you the information you need to make important financial decisions was another key focus for us
in 2014. We participated in more than 60 local events including financial planning seminars, small business
workshops and business networking events.
We got social!
In June 2014, we joined the exciting digital world of
Facebook, Twitter and LinkedIn to stay even more
connected to our members and share information
about product offerings, company news and
community events.
If you’re not doing so already, we invite you to
follow us to get financial tips and updates about
free family activities and business events happening
in your local community.
By the end of 2014 we had:
1,400
Facebook likes
640
400
LinkedIn followers
Twitter followers
Did you know?
We love hearing from you. Feel free to share a comment or
photo on one of our digital spaces. We often run contests
for our followers, so you may even win a prize!
10
You
said
I like how you give
back to our communities
Westminster Savings is committed to helping our
customers Achieve better balance™ in both their
finances and in life. We believe there is an important
connection between our customers’ personal and
financial well-being, and that inspires us to provide
access to arts and active living opportunities in the
communities where we live and work. We know there
are people in our communities who simply don’t have
the access or means to actively participate in arts and
active living activities, yet these activities are vital for
people to achieve a healthy, balanced way of life.
Watch our
videos
http://goo.gl/15kbwC
Free swims: Prabhasoni’s story
As part of Project Better Balance, Westminster
Savings offers a series of free swims every month
in 12 pools across Metro Vancouver. Prabhasoni
and her husband have attended free swims at the
W.C. Blair Recreation Centre on Fraser Highway
in Langley for two years.
When they first started going to the free swims,
Prabhasoni couldn’t swim and neither could her
husband. “We would each cling to a pool noodle
to stay afloat,” says Prabhasoni. Over time, she
let go of the pool noodle and taught herself
how to swim.
“I benefited from the exercise and
got a huge boost to my confidence.”
In 2014, through our community investment program, Project Better Balance, we invested
more than $500,000 in foundation grants, sponsorships and community partnerships to
create arts and active living opportunities aimed at helping individuals and families Achieve
better balance™. We also contributed $500,000 to the Westminster Savings Foundation
bringing the foundation’s community endowment fund to $9.2 million.
Evergreen Cultural Centre
Studies show that participation in arts activities helps children develop a wide range of skills that benefit them
throughout their lives.
Dedicated to bringing families together and increasing participation in the arts, the Evergreen Cultural
Centre (ECC) in Coquitlam developed the Family Days program after receiving a grant from the
Westminster Savings Foundation.
Family Days give families access to regular arts activities free of charge. The foundation grant enables the ECC to run
Family Days every month with an activity that ties in to the centre’s current exhibit. The program offers a wide range
of educational activities for young, mature and family audiences and helps make art a part of their everyday lives.
Did you know?
Free Swims and Skates
27,000+
In 2014 we provided
free admissions at local pools and
rinks through Project Better Balance.
In August 2014, several Westminster Savings employees
volunteered their time to sell tickets to the fourth annual
Meadow Ridge Rotary Duck Race to raise funds and
awareness for our community partner, KidSport. With the
promise of fun and valuable prizes, the duck race raised a total
of $83,420. Of that, $23,035 was raised by Westminster Savings
volunteers, with 100% of the proceeds going to KidSport.
11
You
said
Anticipate and respond
to my needs
Acting on your feedback
In 2014, we set out to engage with you – our members – on a deeper level with the help of our new Member Voice
program. This program helps us better understand your needs and act on your feedback. As you can see from
this year’s annual report, your feedback has resulted in some great new products and services for our members.
We love hearing your feedback and encourage you to share your ideas and concerns so we can continue to
find ways to serve you better. There are many ways you can do this:
Investing in our employees
Another key focus internally was to arm our employees with the skills and knowledge they
need to support the many new products and services we launched in 2014, such as the
Unlimited Family Plan and enhanced account opening procedure. In addition, we improved
the onboarding process for employees, helped our branch teams gain a deeper understanding
of the needs of small businesses and trained employees on our online and mobile banking
services so they are well positioned to share this knowledge with our members.
Creating inspirational leaders
Our employees have served our members for more than 70 years and in doing so, they have helped make us
one of the most respected credit unions in Canada.
We recognize that building a highly skilled and engaged workforce is key to delivering an exceptional
customer experience for our members. In 2014, we continued our commitment to employee
development and engagement through the introduction of a new leadership development program. As
a result of this program, we have armed our employees with the skills to be better leaders and inspired
them to put this new knowledge to good use in helping you — our members — on a daily basis.
12
Summarized
consolidated
financial
statements
Management’s responsibility
The accompanying summarized consolidated financial statements
are derived from the audited consolidated financial statements of
Westminster Savings Credit Union (“Westminster Savings”) for
the year ended December 31, 2014. The summarized consolidated
financial statements have been prepared by management in
accordance with the requirements of the Financial Institutions Act.
The accompanying summarized statements include amounts based
on informed judgments and estimates of the expected effects of
current events and transactions.
To meet its responsibility for preparing reliable financial information,
management maintains and relies on comprehensive internal
accounting, operating and system controls. These controls are
designed to provide reasonable assurance that the financial records
are reliable for preparing financial statements and safeguarding the
assets of the organization.
The summarized consolidated financial statements are approved by
the Board of Directors. The Audit and Risk Committee, composed
of four directors of the board, has reviewed the statements with
management and the external auditors in detail.
KPMG LLP has been appointed by the membership as independent
auditors to examine and report on the summarized consolidated
financial statements. They have had full and free access to the
internal audit staff, other management staff and the Audit and Risk
Committee of the board.
Gavin Toy, President and CEO
Mary Falconer, Senior VP and CFO
February 25, 2015
13
WESTMINSTER SAVINGS CREDIT UNION
Independent auditors’ report
To the members of Westminster Savings Credit Union
The accompanying summarized consolidated financial statements, which comprise the summarized
consolidated balance sheet as at December 31, 2014, and the summarized consolidated statements
of income and comprehensive income and changes in members’ equity for the year then ended, are
derived from the audited consolidated financial statements of Westminster Savings Credit Union
(“Westminster Savings”) for the year ended December 31, 2014.
We expressed an unmodified audit opinion on those consolidated financial statements in our report
dated February 25, 2015. Those consolidated financial statements, and the summarized consolidated
financial statements, do not reflect the effects of events that occurred subsequent to the date of our
report on those consolidated financial statements.
The summarized consolidated financial statements do not contain all the disclosures required
by International Financial Reporting Standards. Reading the summarized consolidated financial
statements, therefore, is not a substitute for reading the audited consolidated financial statements of
Westminster Savings.
Management’s responsibility for the summarized consolidated financial statements
Management is responsible for the preparation of a summary of the audited consolidated financial
statements on the basis described in note 1.
Auditors’ responsibility
Our responsibility is to express an opinion on the summarized consolidated financial statements
based on our procedures, which were conducted in accordance with Canadian Auditing Standard
(CAS) 810, Engagements to Report on Summary Financial Statements.
Opinion
In our opinion, the summarized consolidated financial statements derived from the audited
consolidated financial statements of Westminster Savings for the year ended December 31, 2014
are a fair summary of those consolidated financial statements, on the basis described in note 1.
Summarized Consolidated Balance Sheet
Summarized
consolidated
(Expressed in thousands
of dollars) balance sheet
(Expressed in thousands of dollars)
December31,
31,
2014,
comparative
information
for 2013
December
2014,
withwith
comparative
information
for 2013
2014
2013
Assets
Cash and cash equivalents
Investments
Loans
Leases receivable
Premises and equipment
Intangible assets
Current taxes receivable
Deferred tax asset
Retirement benefit assets
Other assets
$
207,333
154,541
1,844,099
277,004
9,194
2,419
2,871
6,677
2,289
$
64,632
204,155
1,814,413
263,651
9,911
2,602
775
4,269
2,820
4,559
$ 2,506,427
$ 2,371,787
$
$
Liabilities and Members’ Equity
Borrowings
Members’ deposits
Accounts payable and accrued liabilities
Securitization debt obligations
Current taxes payable
Deferred tax liability
Retirement benefit obligations
Members’ equity:
Retained earnings
Available-for-sale fair value reserve
764
2,140,393
11,261
172,837
11,637
858
2,337,750
8,764
1,996,417
11,812
181,744
409
8,759
2,207,905
162,045
6,632
168,677
158,380
5,502
163,882
$ 2,506,427
$ 2,371,787
See accompanying note to the summarized consolidated financial statements.
See accompanying note to the summarized consolidated financial statements.
Approved on behalf of the Board:
Chartered Accountants
February 25, 2015
Vancouver, Canada
Bill Brown, Chair
Director
Darlene Hyde, Vice-Chair
Director
14
WESTMINSTER SAVINGS CREDIT UNION
Summarized Consolidated Statement of Income and Comprehensive Income
(Expressed in thousands
of dollars) statement of income and comprehensive income
Summarized
consolidated
(Expressed in thousands of dollars)
Year ended December 31, 2014, with comparative information for 2013
Year ended December 31, 2014, with comparative information for 2013
2014
Financial income:
Interest income from loans, leases and investments
Interest expense on deposits, borrowings and debts
96,122
(36,080)
$
97,461
(35,088)
Othercomprehensive
comprehensiveincome
income (loss)
Total
1,130-
(4,428)
-
(3,298)
4,795
544
(1,008)
2,550
(1,193)
Total comprehensive
income
Total
members’ equity,
end of 2014
$
6,632-
$
162,045-
$
4,795
168,677
65,612
69,105
Total members’ equity, end of 2014
$
6,632
$
162,045
$
168,677
32,627
8,044
13,224
53,895
32,628
8,129
15,025
55,782
11,717
13,323
$
Retained
earnings
Retained
earnings
140,868
$
Total
equity
Total
equity
144,218
$
140,868
8,529
$
144,218
8,529
12,377
(3,163)
12,182
(3,147)
Net fee and commission income
9,214
Net gains on financial instruments
Impairment losses on other assets
Net interest and other income
Contribution to Westminster Savings Foundation
Community investment
(500)
(251)
(500)
(173)
10,966
12,650
1,045
1,828
2,873
3,205
916
4,121
8,093
8,529
Total members’ equity, beginning of 2013
1,130
2,152
(4,428)
8,983
(3,298)
11,135
4,795
See accompanying
note tonote
the summarized
consolidated financial
statements.
See
accompanying
to the summarized
consolidated
financial statements.
$
19,664
-
8,093
8,093
1,130
-
1,130
Available-for-sale
fair value reserve
Available-for-sale
fair value
reserve
$
3,350
Totalincome
members’
equity,
Net
for the
yearbeginning of 2013
$
Net
for the
Fair income
value gains
onyear
available-for-sale
financial assets - net of tax
Fair value gains on available-for-sale
financialgains
assets
net of tax
Actuarial
on -defined
benefit pension plans net of tax
Actuarial gains on defined benefit pension plans net of
tax
Other
comprehensive
income
Othercomprehensive
comprehensiveincome
income
Total
$
163,882
8,093
9,035
Fee and commission income
Fee and commission expenses
Other comprehensive (loss) income
$
(4,428)
(3,298)
58,713
Items that will never be reclassified to net income:
Net actuarial (losses) gains on defined benefit pension plans,
net of tax
158,380
8,093
(4,428)
(4,428)
56,862
Other comprehensive income (loss):
Items that will be reclassified to net income:
Net unrealized gains on available-for-sale financial assets,
net of tax
$
1,130-
Net interest income after impairment charges
Net income for the year
5,502-
1,130
(4,428)
(3,660)
Provision for income taxes:
Current
Deferred
$
$
Total
equity
Total
equity
163,882
(4,428)
(3,180)
Income before income taxes
Total
members’
equity,
Net income
for the
yearbeginning of 2014
$
earnings
Retained
earnings
158,380
1,130
-
Impairment losses on loans and leases receivable
Income before the following:
fair value reserve
Available-for-sale
fair value
reserve
$
5,502
Net
for the
Fair income
value gains
onyear
available-for-sale
financial assets - net of tax
Fair value gains on available-for-sale
financiallosses
assetson- net
of tax
Actuarial
defined
benefit pension plans net of tax
Actuarial losses on defined benefit pension plans net of
tax
Other
comprehensive
income (loss)
62,373
Operating expense:
Salary and employee benefits
Occupancy and equipment
General and administrative expenses
members’ equity
(Expressed in thousands of dollars)
Year ended December 31, 2014, with comparative information for 2013
Available-for-sale
Retained
Year ended December 31, 2014, with comparative information
for 2013
Total members’ equity, beginning of 2014
$
60,042
2
WESTMINSTER SAVINGS CREDIT UNION
2013
Net interest income
Total comprehensive income for the year
Summarized Consolidated Statement of Changes in Members’ Equity
(Expressed in thousands of dollars)
Summarized Consolidated Statement of Changes in Members’ Equity
(Expressed
thousands
dollars)
Year
ended in
December
31,of2014,
with statement
comparative information
for 2013
Summarized
consolidated
of changes
in
Total comprehensive
income
Total
members’ equity,
end of 2013
3,350-
8,529
8,529
2,152
-
2,152
2,152
-
8,983
2,152
8,983
2,152-
8,983
8,983
8,983
11,135
2,152-
8,983-
11,135
19,664
158,380-
$
19,664
163,882
Total members’ equity, end of 2013
$
5,502
$
158,380
See accompanying note to the summarized consolidated financial statements.
$
163,882
$
5,502-
$
See accompanying note to the summarized consolidated financial statements.
See accompanying note to the summarized consolidated financial statements.
Note to summarized consolidated financial statements
Year ended December 31, 2014
1. Basis of presentation:
These summarized consolidated financial statements have been prepared in accordance with section 128(4) of the
Financial Institutions Act and are derived from the audited consolidated financial statements, prepared in accordance
with International Financial Reporting Standards, as at and for the year ended December 31, 2014. Those audited
consolidated financial statements were approved by the credit union’s Board of Directors on February 25, 2015 and can
be obtained online.
3
3
15
Contact information
Personal and Small Business Banking
Austin Branch
1101 Austin Avenue
Coquitlam, BC V3K 3P4
New Westminster Branch
601 Sixth Street, Unit 100
New Westminster, BC V3L 3C1
Cloverdale Branch
18722 Fraser Hwy
Surrey, BC V3S 7Y4
Newton Branch
7488 King George Blvd, Unit 500
Surrey, BC V3W 0H9
Commercial Services
Board of Directors
Executive Leadership Team
Commercial Services Branch
Bill Brown, Chair
Real Estate and Commercial Financing
Michael Edwards
960 Quayside Drive, Unit 103
New Westminster, BC V3M 6G2
Darlene Hyde, Vice Chair
Gavin Toy
President and
Chief Executive Officer
Kathleen Kennedy-Strath
Douglas J. King
Leasing
Emmet McGrath
WS Leasing Ltd.
960 Quayside Drive, Unit 403
New Westminster, BC V3M 6G2
Robert G. Shirra
Patty Sahota
Hastings Heights Branch
4106 Hastings Street
Burnaby, BC V5C 2J4
Shaughnessy Station Branch
2850 Shaughnessy St, Unit 6108
Port Coquitlam, BC V3C 6K5
Landmark Branch
20201 Lougheed Hwy, Unit 200
Maple Ridge, BC V2X 2P6
Sunwood Square Branch
3025 Lougheed Hwy, Unit 290
Coquitlam, BC V3B 6S2
Mercado Capital Corporation
Blackfoot Corporate Centre
4411 6 Street SE, Unit 180
Calgary, AB T2G 4E8
Langley Branch
20831 Fraser Hwy, Unit 1
Langley, BC V3A 4G7
White Rock Branch
1608 152nd Street
Surrey, BC V4A 4N2
Wealth Management
Auditors
Westminster Savings Financial
Planning Ltd.
960 Quayside Drive, Unit 108
New Westminster, BC V3M 6G2
KPMG LLP
Vancouver, BC
Maple Ridge Branch
22415 Lougheed Hwy
Maple Ridge, BC V2X 2T8
Metrotown Branch
4705 Kingsway
Burnaby, BC V5H 2C4
Member Service Centre
601 Sixth Street, Unit 210
New Westminster, BC V3L 3C1
604 517 0100
1 877 506 0100
wscu.com
Art Van Pelt
Corporate counsel
Dentons Canada LLP
Vancouver, BC
Mark Carter
Senior Vice President, Commercial
Operations and Chief Credit Officer
Diana Chan
Senior Vice President, Human Resources
and Corporate Secretary
Mary Falconer
Senior Vice President and Chief
Financial Officer
Maury Kask
Senior Vice President, Consumer
Operations and Chief Customer
Experience Officer
Corporate Head Office
960 Quayside Drive, Unit 108
New Westminster, BC V3M 6G2
As an Imagine Caring Company, Westminster Savings dedicates a minimum of 1% of our pre-tax
profits to charitable causes. The Imagine program is an initiative established by the Canadian Centre
for Philanthropy, and focuses on increasing corporate support to voluntary associations and networks.
16