alterna summary eng cra · penny mccabe carla pagliarello hugh reilly stewart robertson andrew...
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A L T E R N A S A V I N G S 2 0 0 5 A N N U A L S U M M A R Y2 >
VisionTo be the leader of co-operative financial services.
MissionDevelop and share an exceptional level of financial expertise that is:• tailored to member needs• accessible to all• supportive of local communities• and delivered by caring, professional employees.
ValuesPeople First, Excellence, Integrity
Board of DirectorsName Title Committee Attendance Other Boards that Director Serves on
Earl Campbell Chair Executive 9/9 Bloorview MacMillan School Authority, Ontario Public SchoolBoards’ Association, Consent and Capacity Board, Governmentof Ontario, Ontario Credit Union Charitable Foundation,Scarborough Training Centre International Inc.
Fred Gorbet Vice Chair Executive 7/9 Alterna Bank, Assuris, Lawyers Professional IndemnityCorporation, Credit Union Central of Ontario, North YorkHarvest Food Bank, Covenant House Toronto, Institute forResearch on Public Policy
Don Altman Director Executive 9/9 Ontario Natural Food Co-operative, Isabella Housing Resident’sCo-operative, Co-operative Resources Pool of Ontario
Richard Bertrand Director Executive 4/9 Alterna Bank
Gini Bethell Director Executive 7/9 Alterna Bank, Élisabeth Bruyère Research Institute
Penny Bethke Director Member Relations 7/7 None
Mary-Lu Brennan Director Member Relations 10/10 North York Tennis Association, Ontario Tennis Association
Ted Brown Director Member Relations 7/7 The Friends of the Merril Collection - Toronto Public Library
Bill Burleigh Director Finance and Audit 8/8 Brenyon Way Charitable Foundation, Ridgeford CharitableFoundation, Burnleigh Property Management Limited, W GBurleigh Management Services Inc.
Ken Chan Director Human Resources 7/9 None
Pierre Choquette Director Member Relations 7/7 Alterna Bank, Ottawa River Project Board of Directors,Pharmagap Advisory Committee
Gita Clarkson Director Human Resources 9/9 None
Gail Di Cintio Director Human Resources 9/9 Alterna Bank
James Frank Director Finance and Audit 9/11 Alterna Bank, Élisabeth Bruyère Research Institute,Canadian Forces Personnel Support Agency,Community Foundation of Ottawa-Carleton
David Kinsman Director Member Relations 5/7 Alterna Bank
Mel Lang Director Executive 9/9 Compass Charitable Foundation
Jeff May Director Finance and Audit 8/8 None
Richard Neville Director Finance and Audit 7/8 Alterna Bank, RCMH - MRCH Inc.,TGM Specialty Services Inc.
Richard Ranger Director Finance and Audit 8/8 Alterna Bank
John Richmond Director Member Relations 7/7 None
Peter Smith Director Human Resources 9/9 Alterna Bank
Anna Tosto Director Finance and Audit 9/9 Alterna Bank
Doug Thwaites Director Human Resources 6/8 None
Senior ManagementTeamGary SevenyPresident & ChiefExecutive Officer
Carl RamkerrysinghSenior Vice President,SME and AcquisitionStrategy & ChiefIntegration Officer
José GallantSenior Vice President,OrganizationalPerformance & ChiefFinancial Officer
Tom GregoriadesSenior Vice President,Service Delivery &Operations
Norman AyoubSenior Vice President,Marketing & BusinessDevelopment
Madeleine BrillantVice President,Corporate Affairs
Kimberley NeyVice President,Branch Operations
Jan MedlandVice President,OrganizationalEffectiveness
Credit CommitteeAlexandra WilsonChair
Johanne CharbonneauVice Chair
Bruce Hirst
Penny McCabe
Carla Pagliarello
Hugh Reilly
Stewart Robertson
Andrew Stabins
Martin Zablocki
Original photography:Helen Hiebert
Front cover images:Ryan, South Keys BranchMarva, South Keys BranchDiana, Bay Branch
A L T E R N A S A V I N G S 2 0 0 5 A N N U A L S U M M A R Y < 3
Growing Together
< 3
Dear Members,
On April 1, 2005 two strong and successful Ontario credit unions came together to create a new
co-operative force in the province—Alterna Savings and Credit Union Limited (“Alterna Savings”).
With the launch of Alterna Savings, we formed an organization that has combined the strengths of its
parts to provide members with better service, expanded products and expert financial advice, in the
Greater Toronto Area, Ottawa, North Bay, Pembroke and Kingston.
Since our launch in April, members have sometimes asked us, “What is Alterna Savings anyway?”
The answer is two-fold. In the midst of change for members and employees, Alterna Savings
is still the people and place that members trust for caring, professional service. At the same
time, Alterna Savings is growing into something more, with expanded access to accounts
and an enhanced product and service offering. Our Vision, Mission and Values Statements,
on the facing page, show where we want to take this new organization.
You might see some familiar faces throughout this summary. They are our members and
employees, now part of the new Alterna Savings family.
Alterna Savings is committed to leadership in co-operative financial services, to financial
and technological savvy, to being a valuable part of our members’ lives and communities,
and to operating according to our shared values.We hope you join us for the journey ahead.
Earl Campbell Gary M. SevenyBoard Chair (l) President & CEO (r)
Farzana,Bay Branch Jason, South Keys Branch
Pam, ElectronicCard Services Rhea, South Keys Branch
A L T E R N A S A V I N G S 2 0 0 5 A N N U A L S U M M A R Y4 >
Financial performance in 2005 shows that Alterna Savings
is putting down the roots of a solid fiscal base. Consolidated
assets closed at over $1.7 billion, with an additional
$313 million in off-balance sheet relationships, primarily
mutual funds and other investments purchased by
members. Growth in our consolidated credit portfolio
totaled $59 million since April 1, 2005. It was led by
commercial loans and mortgages as we continue to build
relationships with small and medium enterprises. Despite
competitive pressures, consolidated retail mortgages have
shown a healthy increase, bolstered by Alterna Savings’
leading mortgage rates throughout the fiscal year.
Consolidated deposit growth, coupled with off-balance
sheet mutual fund investments, has also been successful
with combined growth of over $45 million since the merger.
Consolidated net income, at $3.9 million, closed slightly
ahead of plan. Competitive pressures have kept interest
margins slim throughout the year, and other income has
decreased due to a declining market trend in ABM usage
and reduced profits on credit insurance programs, which had been unusually high in 2004. Offsetting
these challenges to revenue, loan losses continued at historically low levels, as seen in 2004, and
operating expenses were well controlled.
Theresa, Electronic Card Services
Our FinancialSnapshot
Laurie & Joan, Electronic Card Services
The integration of the two credit unions that make up
Alterna Savings—CS CO-OP and Metro Credit
Union—is also creating the roots upon which we will
grow. We often hear about take-overs and buy-outs in
the corporate world. It is less common to hear of
“mergers of equals” where parties bring together all
the aspects of their operations through a co-operative
process.
What do we mean by a merger of equals? We mean
we are building something new, guided by one all-
important question: “What is best for our members
and Alterna Savings?” We mean that we are bringing
together strengths from the past, the best available in
the marketplace and members’ feedback to create a
product and service offering that is fresh and vibrant
in the Ontario financial services marketplace.
A L T E R N A S A V I N G S 2 0 0 5 A N N U A L S U M M A R Y < 5
Combining Strengths,Putting Down
Roots
In 2005, 57 different integration initiatives were launched at Alterna Savings to undertake this exciting
task. Several initiatives have already been completed or substantially completed to benefit you, our
members. These include the delivery of seamless member service following April 1, 2005, the
formation of our Board of Directors and Committees, the creation of our Vision, Mission and Values
Statements and Strategic Plan, and the selection of new partners to provide enhanced services
to members.
Guided by a set of integration principles, we are navigating through a myriad of decisions to ensure
we travel the right path to integration. There may be bumps along the road, but we are committed
to overcoming them and emerging a stronger organization. We appreciate your support as we build
and grow.
A L T E R N A S A V I N G S 2 0 0 5 A N N U A L S U M M A R Y6 >
In 2007 we will have completed our
integration process, providing members
with one product and service offering on
one computer banking system. Together
we will move forward as Alterna Savings
to the benefit of members, employees
and communities.
South Keys Branch
A L T E R N A S A V I N G S 2 0 0 5 A N N U A L S U M M A R Y < 7
Growing Member Service
Alterna Savings is also growing in the way we provide service to our members. Member satisfaction
is the highest goal: we want members to have the best experience possible every time they contact
Alterna Savings—in person, by phone, online or by mail.
Surveys show that members have always valued our high quality and personal service. Going forward,
we want to ensure that our professional employees are assisting members with all their financial
needs, from basic transactions to loans and mortgages to complex investment advice and planning.
In fact, the most significant result of the merger has been the opportunity to better serve members,
and the benefits are already showing. In 2005 members have enjoyed:
• Increased access to accounts through an expanded network of 81 ABMs and 24 branches across central and eastern Ontario, as well as access through multiple remote channels: call centre, and online and automated telephone banking.
• Availability of bilingual (French/English) service to all members.
• Low rates and excellent service through our new Alterna MasterCard® credit card.
• Savings on home, auto and travel insurance through the selection of Canadian InsuranceAlliance as Alterna Savings’ provider of these insurance products.
• More mortgage and deposit optionsethrough the introduction of mortgage and deposit brokerages.p
• Opportunity for members’ voices to be heard through direct email access to their President & CEO, Member Town Hall meetings and other feedback mechanisms.
• Access to a federally-chartered bank. Alterna Bank is owned by Alterna Savings and operated by co-operative principles. Members can access the Bank’s unique financial solutions whether they live in Ontario or outside the province.
The year 2005 also saw the introduction of a new computer banking system to members of former
CS CO-OP. This state-of-the-art technology will serve Alterna Savings well into the future (former Metro
will convert to the new system in 2007). As with most major system conversions we are experiencing
a period of adjustment. We thank members for their patience as we work diligently to address
outstanding issues and look forward to bringing the benefits of the new technology to them.
On-going investment in the people, infrastructure and technology of Alterna Savings means that our
membership will continue to see the positive results. Watch as we move forward!
Shirley, Bay Branch
Shawn, South Keys Branch
Living by our values is nothing new for Alterna
Savings. Our co-operative roots go back to 1908,
when the Civil Service Savings and Loan Society,
the first Ontario credit union, was formed in
Ottawa. A strong commitment to democracy,
community support and social responsibility
continues to this day.
Our members guide us, and our focus on
democracy has only grown stronger in 2005.
Member Town Hall meetings were held in many
Alterna Savings’ locations—these are a great way
for the credit union to find out what is important
to members. And the first Alterna Savings Annual
General Meeting was held on April 11, 2006, in Ottawa and linked to Toronto by simultaneous
video conference.
Year one of Alterna Savings also saw a reconfirmation of our
commitment to community support and the Imagine Canada Program.
We have pledged to contribute 2% of our pre-tax profits annually to the
communities we serve through donations, events like the Do It for Dad! Run and Family Walk
benefiting prostate cancer care and research in Ottawa and more.
Community Economic Development has always been a credit union cornerstone and that commitment
also continues—through, for example, the Toronto-based Community Micro Loan Program, providing
micro entrepreneurs with small loans to help them build their businesses. And through the on-going
investment Alterna Savings makes in the economic prosperity of our members and by extension
local economies.
Finally, they say that what gets measured matters, and to that end Alterna Savings will be monitoring
our social and environmental performance through a social auditing and accountability reporting
process. With the spotlight firmly on our operations and activities we will be able to work on
continuous improvement in these areas.
A L T E R N A S A V I N G S 2 0 0 5 A N N U A L S U M M A R Y8 >
Susan Henry, Community Economic Development Specialist andCommunity Micro Loan Program member Panagiotis Tsiriotakis ofAcropolis Organics at the Bay Branch of Alterna Savings in Toronto.
Our Values Are Where We Live
What’s ahead in 2006? In 2006 we have two key focuses: the integration of Alterna Savings
and growth.
Throughout the year we will continue to move towards our goal of
providing all members with an integrated product and service line on
the same computer banking system. This task will be completed in
2007 and will mean exceptional, competitive and consistent products
and services for members. Other service improvements like the
expansion and consolidation of our call centre, or Member Service
Centre, in Toronto are in the works in 2006.
Growth will be achieved through reaching out and introducing the
new Alterna Savings to potential members. And we
will grow by reaching out to our current members,
showing them how we can be their full-service
financial institution. We are also focusing on new
profit-generating activities, but never at the expense
of member service.
Finally, we will also continue to highlight social
responsibility, integrating our programs and
communicating them to our membership and
the communities we serve.
So thank you very much for your on-going support.
And take a closer look—your new Alterna Savings is
here for you!
A L T E R N A S A V I N G S 2 0 0 5 A N N U A L S U M M A R Y < 9
Looking Forwardand Upward
Sapana, MemberService Centre
Julie,South Keys Branch
Vianney,South Keys Branch
Members,Bay Branch
Dave, Member Service Centre
Janet & Kristine, Bay Branch
Finan
Alterna SavingsConsolidated Balance Sheet (in thousands of dollars)
As at December 31
2005 2004
ASSETS
Cash and cash equivalents $ 180,472 $ 79,777
Investments 116,011 246,508
Loans, net of allowance for impaired loans 1,405,716 863,712
Property and equipment 31,298 23,544
Other assets 10,353 11,789
$ 1,743,850 $ 1,225,330
LIABILITIES AND MEMBERS’ EQUITY
Liabilities:
Deposits $ 1,597,208 $ 1,120,391
Future tax liability 1,810 1,645
Other liabilities 18,496 12,982
Membership shares 2,625 2,067
1,620,139 1,137,085
Members’ Equity:
Special shares 29,025 15,358
Contributed surplus 19,053 -
Reserves 75,633 72,887
123,711 88,245
$ 1,743,850 $ 1,225,330
A L T E R N A S A V I N G S 2 0 0 5 A N N U A L S U M M A R Y1 0 >
ncials
Alterna SavingsConsolidated Statement of Income and Reserves (in thousands of dollars)
Year ended December 31
2005 2004
Interest income $ 71,154 $ 53,358
Investment income 9,475 9,046
80,629 62,404
Interest expense 32,994 28,545
Net interest income 47,635 33,859
Loan costs 966 104
46,669 33,755
Other income 14,120 11,267
60,789 45,022
Operating expenses 54,726 39,016
Net income before integration costs and income taxes 6,063 6,006
Integration costs 1,314 -
Net income before income taxes 4,749 6,006
Provision for income taxes
Current 732 106
Future 165 1,010
897 1,116
Net income $ 3,852 $ 4,890
Reserves, beginning of year 72,887 68,637
Dividend on special shares (net of tax) 1,106 640
Reserves, end of year $ 75,633 $ 72,887
A L T E R N A S A V I N G S 2 0 0 5 A N N U A L S U M M A R Y < 1 1
The complete 2005 audited Financial Statements of Alterna Savings are available at www.alterna.ca.
Member images, Bay Branch
MembershipMembership is open to any person who resides or works in Ontario.
For more information, to request additional copies of this annual summary or to request the completefinancial statements of Alterna Savings or its subsidiaries: Alterna Bank, Alterna Realty Corporation or Alterna Holdings Inc., please contact:
Alterna Savings or Alterna Savings400 Albert Street 165 Attwell DriveOttawa, ON K1R 5B2 Toronto, ON M9W 5Y5
Telephone: 613.560.0100, 416.252.5621 or 1.877.560.0100 Email: [email protected]: www.alterna.ca
Alterna Savings Branches
Ottawa AreaAlbert: 400 Albert St.Bells Corners: 90K Robertson Rd.Billings Bridge Shopping Centre: 2269 Riverside Dr.Merivale: 1715 Merivale Rd.Orléans: 210 Centrum Blvd.St. Laurent Shopping Centre: 1200 St. Laurent Blvd.South Keys: 2300 Bank St.Sparks: 61 Sparks St.Tunney’s Pasture: R.H. Coats Building
Ottawa400 Albert St.
Alterna Bank Branches
Greater Toronto AreaBay: 800 Bay St.Bolton: Shopper’s Plaza, 1 Queensgate Blvd.Bramalea: Howden Plaza, 1-375 Howden Blvd.Brimley: 1173 Brimley Rd.Danforth: 1577 Danforth Ave.Malton: 2829 Derry Rd. EastLakeshore: 3001 Lakeshore Blvd. WestRyerson Campus: Room POD 158, Podium - 350 Victoria St.Scarborough: 200 Town Centre Ct.Shepard: 4900 Yonge St.Streetsville: Campus Plaza, 113 Queen St. SouthYork Campus: York Lanes Mall, 4700 Keele St.
North Bay107 Shirreff Ave.
KingstonCANEX Mall: CFB Kingston
PembrokeRosewood Plaza, 680 Pembroke St. East
GatineauGatineau Sector: 160 Boulevard de l’HôpitalHull Sector: Place du Portage – Phase IV