Where we belong. - Entegra · At Entegra, we belong together. TOGETHER: We Create Throughout 2013,...

Wherewebelong. 2013 Annual Report

We belongtogether.We’re Entegra Credit Union. Our success is built on the success

of the people we serve and the people who work here. It’s an

idea that started 52 years ago in North Winnipeg and is the

foundation of our growth.

Our evolution continues, as we prepare to move into our

new corporate office, into a new neighbourhood, introducing

ourselves in a whole new way. It’s new and that’s exciting.

But it’s based on our tradition of meeting each member’s

unique needs.

At Entegra, we belong together.

TOGETHER: We CreateThroughout 2013, Entegra has helped many members

purchase their first home, finance their renovation project

and even manage their debt through consolidation.

It is important that each financing option suits our

member’s lifestyle and with that, in 2013, our loans

grew to $516 million or 15.65%.

St. Anne’s BranchAnticipation is building as construction has commenced and significant progress has been made on Entegra Place. This will be home to our fourth branch and new corporate office, located at 540 St. Anne’s Road. Since ground was broken a great deal of time went into pouring the foundation and positioning the conduit, which will safeguard the cables connecting the large scale network our new branch requires.

The structure of Entegra Place has also started to take shape as the elevator shaft has been constructed; the vault secure and two stories of steel have been raised, outlining this state-of-the-art 29,000 square foot building.

Scheduled to open late summer 2014, Entegra Place will include a full service Personal and Business Banking Centre, Entegra Credit Union’s Corporate Office, and 8,000 square feet of designated retail space. The Personal and Business Banking Centre will continue to offer the products and services Entegra is known for and will be equipped with a 24/hour drive thru and lobby ATM, night depository and dedicated commercial experts to help facilitate all our business members banking needs. Unique to our St. Anne’s branch will be a meeting space available for personal and business members alike to meet with clients or conduct meetings.

As each stage develops, we eagerly await the move and are excited to establish new relationships with the surrounding community.

ImplicityDecember 17, 2013 marked one full year in operation for our online division, Implicity Financial. When we first launched Implicity, we were excited about the possibilities that would come with a virtual offering. Implicity was our opportunity to provide another avenue for Entegra to receive member deposits and would allow us to communicate and develop relationships with our members in a way we never could before.

It has been a year of firsts for Implicity. We introduced new products with extended term lengths and performed service enhancements to Mobile Alerts, increasing overall member security. Implicity was awarded the title of Best GIC and Best High Interest Savings Account for 2013 by ratesupermarket.ca, a well-known financial website.

When launching Implicity, we were not sure what to expect as we were entering into a market that was entirely new to us, the online market. But Implicity has both met and exceeded our expectations, growing on a consistent monthly basis and positioning themselves as a strong, well-respected competitor within the virtual investment world.

Entegra is proud of all that our virtual offering has accomplished in this short amount of time and we are excited to see what Implicity will bring in the years to come.

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ENTEGRA CREDIT UNION | 2013 Annual Report ENTEGRA CREDIT UNION | 2013 Annual Report

TOGETHER: We ThriveEntegra continues to grow our family with the addition of

new members and employees and the expansion of our

diverse service offering. With the growth of Entegra and

the addition of Implicity Financial, we were able to achieve

overall assets of $578 million or 15.29% in 2013.

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President’s Message

Entegra has never been stronger and we continue to grow,

redefining success from year to year, but we do not measure

our success purely in financial terms. Success includes our

core values: members, employees, financial strength,

innovation and security. By keeping these values in the

forefront, Entegra continues to prosper and together, we will

share in our success.

Profitability is key to our financial strength, so emphasis was

placed on reducing and controlling expenses, allowing us to

concentrate on net income. But investing in people,

technology, and equipment will always be of high

importance, enabling Entegra to maintain the level of service

our members have come to expect. In 2013, IT significantly

enhanced our disaster recovery plan, adding an additional

layer of security, making all data stored even safer.

The Board of Directors overhauled our Corporate Governance

Policy to ensure the credit union is directed and controlled in

an effective manner.

In the uncertain global economic environment, Entegra

has managed to thrive. A dedicated workforce and continued

loyalty of our members helped us enjoy exceptional growth

and maintain steady profitability. This year, our assets finished

just shy of $579 million, an increase of $76.8 million or 15.29%

over 2012. We increased member loans by $69.9 million or

15.65%, and grew our member deposits by $83.9 million or

18.39%. Meanwhile our net income before dividends finished

the year at $2,980,754, an improvement of 11.01% over 2012

results, which far surpassed our projections.

Our members’ continued support was demonstrated by the

purchase of $1.39 million in our exclusive Preferred Share

program, which helps grow our capital base. This eighth

offering exceeded our expectations and was paid a dividend

of 4% (pro-rated) on new and previously purchased shares.

Existing surplus shareholders also received a 2% cash

dividend—a return well above market average.

Implicity Financial, our new online savings division, exceeded

our expectations in its first year of operation, offering savings

based products including high interest savings accounts, term

deposits and tax free savings accounts. Implicity’s simple

approach to savings allowed us to streamline the account

opening process and expand the ways that members can do

business with Entegra.

In 2013, we refreshed the Entegra brand. Ten years ago, we

changed our name to Entegra and now we felt it was time to

update our brand image. Our new brand look and feel isn’t

meant to change who we are, it’s designed to better reflect

our core values. The brand refresh also gave us the

opportunity to upgrade our website and evaluate and

improve our service offering.

This year’s accomplishments are a direct result of an ongoing

investment in our people, systems and infrastructure to

strengthen our foundation and deliver superior service and

value back to members.

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Board of Directors

Executive Management

E D WA R D P L E Z I A P r e s i d e n t

FIER TULLEKEN Vice-President

We create shared prosperity

by helping our members

achieve their financial goals.

Moving forward, we predict 2014 to be another year of

evolution as we continue to enhance our products and

services, with an all-encompassing member experience at

the forefront. We look forward to developing relationships in

the South end of the city with the opening of our new

Corporate Office and Personal & Business Banking Centre at

540 St. Anne’s Road.

Entegra Credit Union is comprised of talented individuals with

bright minds and high ambitions, who desire to be the ideal

financial partner for all our members. The success achieved at

Entegra would not be possible without the determination

and commitment we receive from our Board of Directors,

Executive Management and our exceptional employees. We

look forward to our bold and innovative future, and would like

to thank you, our members, for being part of it.

At Entegra, we belong together.

JERZY ZIELINSKI Director

DIANE LEE SOUSA Director

RYAN WI RTH Director

ED KOLODZIEJ Director

KEN DUDECK Secretary

GORDON KIRKWOOD Chief Executive Officer

BRENT TURMAN Chief Financial Officer

BRIAN CHARLES Chief Operations Officer

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THE ACCOMPANYING NOTES FORM PART OF THE SUMMARY CONSOLIDATED FINANCIAL STATEMENTS.

TO THE MEMBERS OF ENTEGRA CREDIT UNION LIMITED:

The accompanying summary consolidated financial statements, which comprise the summary consolidated statement of financial position as at December 31, 2013 and the summary consolidated statements of comprehensive income and changes in members’ equity for the year ended December 31, 2013 are derived from the audited consolidated financial statements of Entegra Credit Union Limited for the year ended December 31, 2013. We expressed an unmodified audit opinion on those consolidated financial statements in our report dated March 27, 2014.

The summary consolidated financial statements do not contain all the disclosures required by International Financial Reporting Standards. Reading the summary consolidated financial statements, therefore, is not a substitute for reading the audited consolidated financial statements of Entegra Credit Union Limited.

MANAGEMENT’S RESPONSIBILITY FOR THE SUMMARY CONSOLIDATED FINANCIAL STATEMENTS

Management is responsible for the preparation of the summary consolidated financial statements on the basis described in Note 1 to the summary consolidated financial statements.

AUDITORS’ RESPONSIBILITY

Our responsibility is to express an opinion on the summary 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 summary consolidated financial statements derived from the audited consolidated financial statements of Entegra Credit Union Limited for the year ended December 31, 2013 are a fair summary of those consolidated financial statements, on the basis described in Note 1 to the summary consolidated financial statements.

Winnipeg, Manitoba March 27, 2014

Independent Auditors’ Report

MNP LLPChartered Accountants

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Summary Consolidated Statement of Financial Position

AS AT DECEMBER 31, 2013

ENTEGRA CREDIT UNION LIMITED

2013 2012

As sets

Funds on hand and on deposit 6,007,808 2,758,407

Investments 42,103,624 40,767,476

Members’ loans 516,786,538 446,837,829

Other assets 488,271 383,801

Property and equipment 13,310,407 11,183,272

578,696,648 501,930,785

Liabilities

Members’ savings and deposits 540,171,586 456,262,732

Accounts payable and other liabilities 5,507,630 5,558,505

Income taxes payable 126,361 64,620

Loan payable - 11,191,538

Deferred taxes 240,000 250,000

546,045,577 473,327,395

Members’ equity

Members’ shares 8,896,244 7,549,735

Retained surplus 23,754,827 21,053,655

32,651,071 28,603,390

578,696,648 501,930,785

Approved on behalf of the Board

signed “Edward Plezia” , DIRECTOR

signed “Ed Kolodziej” , DIRECTOR

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Summary Consolidated Statement of Comprehensive IncomeFOR THE YEAR ENDED DECEMBER 31, 2013


2013 2012

Financial income

Interest from members’ loans 19,369,316 17,737,148

Investment income 790,485 718,533

20,159,801 18,455,681

Cost of funds

Members’ savings and deposits 10,695,451 10,238,298

Corporate borrowings 252,781 174,723

10,948,232 10,413,021

Financial margin 9,211,569 8,042,660

Operating expenses

Administration 2,561,605 2,249,550

Member security 521,404 439,902

Occupancy 1,279,946 1,135,738

Organizational 322,056 251,701

Personnel 4,380,352 3,797,005

Gross operating expenses 9,065,363 7,873,896

Other income (3,395,440) (2,890,646)

Net operating expenses 5,669,923 4,983,250

Income from operations before provision for loan losses 3,541,646 3,059,410

Provision for loan losses 94,392 36,945

Income before provision for (recovery of) income taxes 3,447,254 3,022,465

Current 476,500 365,400

Deferred (10,000) (28,000)

Provision for income taxes 466,500 337,400

Income and comprehensive income for the year 2,980,754 2,685,065

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Summary Consolidated Statement of Changes in Members’ Equity

FOR THE YEAR ENDED DECEMBER 31, 2013


Members’ shares Retained surplus TotalBalance, December 31, 2011 5,080,949 18,581,893 23,662,842

Income and comprehensive income - 2,685,065 2,685,065

Dividends declared, net of tax recovery of $26,400 - (213,303) (213,303)

Issuance of member shares 2,825,063 - 2,825,063

Redemption of member shares (356,277) - (356,277)

Balance, December 31, 2012 7,549,735 21,053,655 28,603,390

Income and comprehensive income - 2,980,754 2,980,754

Dividends declared, net of tax recovery of $36,800 - (279,582) (279,582)

Issuance of member shares 3,813,849 - 3,813,849

Redemption of member shares (2,467,340) - (2,467,340)

Balance, December 31, 2013 8,896,244 23,754,827 32,651,071

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Notes to the Summary Consolidated Financial Statements FOR THE YEAR ENDED DECEMBER 31, 2013


1. Basis of the summary consolidated financial statements Management has prepared the summary consolidated financial statements from the Credit Union’s December 31, 2013 audited consolidated financial statements which can be obtained at the Credit Union. The detailed notes included in the audited consolidated financial statements are not included in these summary consolidated financial statements.

2. Compliance with minimum capital and liquidity requirements

The Credit Union is in compliance with the capital and liquidity reserve requirements at December 31, 2013 established by the Regulations to The Credit Unions and Caisses Populaires Act of Manitoba. Readers of the summary consolidated financial statements are advised that in order to appropriately interpret the Credit Union’s capital and liquidity, the reader must refer to the audited consolidated financial statements and notes for the year ended December 31, 2013, which contain the information detailing the calculation.

TOGETHER: We SucceedAt Entegra, we strive to help our members understand

all of their deposit options so they can feel confident and

secure that the financial decisions they make are in their

best interest. In 2013, through the overall success of

Implicity Financial and our family of savings products,

Entegra was able to reach $540 million or 18.39% in

overall deposit growth.

Disraeli Branch121 Disraeli Freeway

Winnipeg, MB

Canada R3B 2Z5

P 204.949.7744

F 204.924.5639

Gateway Branch1105 Gateway Road

Winnipeg, MB

Canada R2G 0A5

P 204.949.7744

F 204.949.5866

Jefferson Branch1335 Jefferson Avenue

Winnipeg, MB

Canada R2P 1S7

P 204.949.7744

F 204.949.5865

St. Anne’s Branch540 St. Anne’s Road

Winnipeg, MB

Canada R2M 5R7

P 204.949.7744

F 204.594.2640

Where we belong. - Entegra · At Entegra, we belong together. TOGETHER: We Create Throughout 2013,...

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