Annual Report

SERVICE IS OUR STRENGTH

WINNIPEG POLICECREDIT UNION

2016

Because your future matters

Annual Report 2016Annual Report 2016

C O R P O R AT E V I S I O N

“To be the financial institution of choice to employees in the law enforcement community, their families and associates.”

C O R P O R AT E M I S S I O N

“To be a leader in providing a superior and professional level of financial products and services to employees of the law enforcement community, their families and associates.”

C O R P O R AT E VA L U E S

• Honesty and integrity• Member focused• Competitive products and superior service and advice• Innovative spirit• Commitment to community – police community and credit union system• Commitment to business ethics and standards• Professional conduct in all dealings with members and suppliers• Commitment to co-operative principles

C O - O P E R AT I V E P R I N C I P L E S

• Open and voluntary membership• Democratic member control• Member economic participation• Autonomy and independence• Education, training and information• Co-operation among co-operatives• Concern for community

Annual Report 2016

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Annual Report 2016

Annual Report 2016

• Call to order by the President• Establishment of a quorum• Welcoming of guests• Tribute to deceased members• Reading of the minutes of the 66th annual meeting• Business arising out of the minutes• Directors report (President)• General Manager’s report and Auditor’s report & financial statements• Election of directors (No election incumbents elected by acclamation)• Service awards presentation• Appointment of auditors for 2017• Other business• Adjournment

Winnipeg Police Credit Union – Board of DirectorsLawrence Klippenstein, President (2016) Ron Smolik (2018)Gordon Gold, Vice Pres. (2016) Fred Thomas (2017)Maurice Sabourin, Secretary (2018) Cory Wiles (2017)Adam Cheadle (2018) Andrew Zurawsky (2017)Joe Gallagher (2016)

Dates in brackets indicate the year in which term of office expires.

Winnipeg Police Credit Union – Management and StaffMichael J. Taylor CPA, CGA, General ManagerAdeline Richardson C.I.M., P. Mgr. Manager of Lending ServicesHeather Kozubski C.I.M., P. Mgr., FCUIC, Manager of Business Development & Wealth ManagementKimberly Caetano, Manager of Member Services

BUSINESS DEVELOPMENT & WEALTH MANAGEMENT DEPARTMENTHelder Sousa, Financial AdvisorPamela Carreon, Financial AdvisorLaura Melanson, Communication & Administration OfficerEvelyne Olivier, Internal Audit & Administration OfficerGloria Smith, Wealth Management Administration AssistantJoan McGregor, Member Services Coordinator

Winnipeg Police Credit Union Annual Meeting Agenda November 23, 2016 – 6:30 P.M.

LOAN DEPARTMENTReava Ash-Gauthier, Sr. Consumer and Mortgage LenderKaren Kalynuik, ACUIC, FCUIC, Consumer and Mortgage LenderTrevor Rowe, Consumer and Mortgage LenderShaunna Asselstine, Senior Loans AdminstratorIrene Sallee, Loans AdministratorIngrid Arcand, Loans Administration Officer

MEMBER SERVICE DEPARTMENTLaurissa Mulvihill, Member Service SupervisorRachel Schellenberg, Member Service Representative Brenna Wall, Member Service RepresentativeDiane Hammerling, Member Service Representative & Co-ordinatorJill Galuszka, Member Service RepresentativeSusan Lepp, Member Service Representative

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Board of Directors Report

Gordon GoldVice President

Maurice SabourinSecretary

Adam Cheadle Director

Joe Gallagher Director

Ron SmolikDirector

Fred ThomasDirector

Cory WilesDirector

Andrew ZurawskyDirector

The 2016 fiscal year was one of change, challenge and success for the Winnipeg Police Credit Union. Our Manager of Lending Services, Phyllis Wood, retired after 23 years of service to the credit union and Adeline Richardson was welcomed as our new Manager of Lending Services. The credit union was involved in a lengthy negotiation process with the City of Winnipeg in an effort to lease space in the 2nd floor walkway of the Tower Building that is adjacent to the new Police Headquarters. We are awaiting the City’s final approval of the lease terms. Assuming the approval is received, the plan is to open a service outlet in April of 2017 to serve the financial needs of police officers and employees of the Winnipeg Police Service.

In terms of our financial performance, the credit union’s total assets increased by $7.9 million to just over $190.4 million. The credit union’s equity position, which indicates the financial strength of the credit union, increased to $11.6 million or 6.10% of total assets, which exceeds the statutory requirement of 5.0%.

Financial margins continue to decline due primarily to the highly competitive market in which the credit union operates. Through tight expense control however, the Board was pleased to declare and pay a share dividend of $115,000 to those members who retained their surplus shares with the credit union. The retention of surplus shares by members is very important to the credit union’s equity position. All members continued to benefit from the very competitive interest rates provided by the credit union on deposits, investments, loans and mortgages throughout the year.

During the year the credit union was pleased to provide over $39,000 in funding to support police-related organizations, charities and events as a sign of our commitment to the police community.

The highly competitive environment in the financial services industry, along with the increasing costs of technology and regulatory compliance, have encouraged a number of credit unions to seek opportunities to either collaborate together or amalgamate with each other. Credit unions across Canada are working together on some national initiatives to reduce expenses in areas such as ATM acquisitions and processing electronic payments. Your Board of Directors is aware of these challenges and made the decision to become a member of a Credit Union Service Organization along with three other credit unions in an effort to gain some financial benefits. The Board is prepared to evaluate other options that will sustain our ability to serve the financial needs and demands of members over the long term and we will take advantage of any national initiatives that meet the needs of the credit union.

Our continued success reflects the high level of satisfaction that members have with the products, services and financial advice that they receive from the credit union. The loyalty of our members, along with their continued referral of family, friends and law enforcement associates to the credit union are vital to the continued success of the Winnipeg Police Credit Union.

On behalf of the Board of Directors, I want to thank the management team and staff members for their efforts over the past year in providing excellent service to the members in a competent and courteous manner. I also want to thank you, the members, for your continued confidence and support of the credit union.

Lawrence Klippenstein

President

Annual Report 2016

Annual Report 2016

General Manager’s Report

The financial highlights of our 2016 fiscal year include:

• Total assets increased by $7.9 million to $190.4 million (4.3% growth)

• Member loans increased by $2.5 million to $162.2 million (1.6% growth)

• Member deposits increased by $7.7 million to $177.3 million (4.6% growth)

• The credit union’s equity position, which is an indication of the credit union’s financial strength, increased to $11.6 million or 6.1% of total assets, which exceeds the 5.0% regulatory requirement. Risk-weighted equity increased to 20.4% of risk-weighted assets, which exceeds the current regulatory requirement of 8.0%. Regulators are proposing to increase this requirement to 10.5% in the future.

Our key priorities for 2016 included:

• Achieving asset growth in a controlled and responsible manner in order to maintain strong equity levels

• Attracting sufficient deposit growth to fund member borrowing needs while meeting statutory liquidity requirements

• Securing a lease to a location adjacent to the new police headquarters and opening a new service outlet

• Hiring a trained and experienced Manager of Lending Services

• Implementing a new marketing program and special pricing to attract W.P.S. employees as members

• Evaluating national credit union system initiatives for opportunities to reduce expenses

I am very proud of our employees and I commend them for their continued commitment and dedication to serving the financial needs of members. I also wish to thank our dedicated Board of Directors for their hard work, leadership and trust throughout the year. Through their combined efforts we were able to accomplish our key priorities and meet our equity targets for the year.

In the coming year we plan to open a second service location for the first time in our history. This important change, along with ever increasing competition, technology costs and the burden of regulatory compliance will continue to challenge our human and financial resources. We will work hard to address these challenges and to seek opportunities and options that will enable us to meet the financial products, service needs and demands of members in a manner that is sustainable over the long term.

In closing I want to thank you, our members, for your continued loyalty, support and feedback, which are very important to us. Your greatest compliment is your referral of family and friends to become members and transfer their business to the Winnipeg Police Credit Union. We will continue to work hard to earn your continued loyalty and referrals and we look forward to working together with you to meet the important challenges of the future.

Respectfully submitted,

Michael J. Taylor, CPA, CGA, General Manager

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Annual Report 2016

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Independent Auditors’ Report

A copy of the complete financial statements including significant accounting policies and other explanatory information is available from the credit union or at www.wpcu.ca

Annual Report 2016

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A copy of the complete financial statements including significant accounting policies and other explanatory information is available from the credit union or at www.wpcu.ca

Winnipeg Police Credit Union Limited

Summary Statement of Financial Position

as at September 30, 2016

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Winnipeg Police Credit Union Limited

Summary Statement of Comprehensive Income

For the Year Ended September 30, 2016

A copy of the complete financial statements including significant accounting policies and other explanatory information is available from the credit union or at www.wpcu.ca

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Winnipeg Police Credit Union Limited

Note to the Summary Financial Statements

For the Year Ended September 30, 2016

A copy of the complete financial statements including significant accounting policies and other explanatory information is available from the credit union or at www.wpcu.ca

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Notes

Annual Report 2016Annual Report 2016

Christina Bayrak

Lillian Bowman

Doris Carlton

William Coates

Robert Cook

Gail Cooke

Mary Derkach

Maureen Dow

Raymond Ducharme

Henry Eckert

Howard Elliott

Ella Felbel

Harold Fraser

Robert Gill

Arthur James

Franklin Janzen

Dennis Jason

Jack Johnson

Paul Johnston

Ann Jones

Edward Klatt

Jan Kreutzer

Ellbie Langstaff

Hazel Leishman

Mary Lucko

Gloria Jean MacDonald

Daniel Mackay

Joyce McRae

Flora Mulholland

Anne Murdoch

Walter Pawlson

Peter Peterson

Kenneth Porter

William Rautavuori

Kathryn Rea

Marie Sanderson

John Sarbiewski

Ronald Schwartz

Dennis Scott-Herridge

William Smerchanski

Agnes (Nancy) Smith

William Brian Smith

George Supeene

Jordan Vandevorst

Caldwell Varey

I N M E M O R I A M

Annual Report

SERVICE IS OUR STRENGTH

WINNIPEG POLICECREDIT UNION

2011

300 William Avenue, Winnipeg, Manitoba R3A 1P9

www.wpcu.ca

Because your future matters