2016 ANNUAL REPORT

WORKINGFOR YOU

2 2016 ANNUAL REPORT

MESSAGE FROM THE CHAIR OF THE BOARD OF DIRECTORS

Dear Members, On behalf of our officers, I am pleased to present a review of the year 2016 for Caisse Desjardins du Lac-Memphrémagog. AN INSTITUTION AT THE HEART OF ITS MEMBERS’ LIVES

The year 2016 was a turning point in Desjardins

history. One of the most important events was the

election of Guy Cormier as President of Desjardins

Group. The youngest president in our history quickly

rallied employees and officers around his ambitious

ideas. The first of those ideas involves reconnecting

Desjardins with its purpose, which is to enhance

people’s lives and the communities in which they

live by making active and significant contributions to

the development of a sustainable economy.

For example, a new $100-million development fund

has been created to support projects in the regions

where we are active, in entrepreneurship, in

business development and in economic and social

innovation. This fund will complement the caisses’

Community Development Funds and Capital

régional et coopératif Desjardins shares.

In addition, so we can be better attuned to the

needs of young people, a Youth Advisory Board

with a Desjardins-wide scope has been put in place,

to be made up of Desjardins members, elected

caisse officers and employees between ages 18

and 35. We even reserved a special place for young

people during 2016 Cooperation Week focused on

academic success. On October 20, 2016,

thousands of Desjardins employees participated in

volunteer events in support of the cause.

This is a testament to the variety of actions we put

in place in order to hold the top position in the

hearts of our members.

INSPIRING MOMENTUM

In 2016, our caisse recorded operating surplus

earnings of $6.4 million. These results are an

indicator of the caisse’s sound business

management. Based on this performance, we will

be staying the course by offering you services and

solutions that continue to meet your expectations.

I would like to thank our members for these

excellent results. Your continued loyalty is the key

to our success. Increased use of the caisse’s

products and services has a direct positive impact

on its profitability. The vitality created by this loyalty

will not only benefit the caisse and its members, but

also the entire community.

In 2016, the caisse redistributed more than $354,000 in our community to support projects that stimulate local social and economic health. Of this amount, $311,000 is paid out of the Community Development Fund, a collective dividend that’s voted by caisse members at our annual general meeting. This is an initiative that enables us to have a positive impact on people’s lives and the communities in which they live. That is our purpose, and it is a source of pride for all of us. Doing business with your caisse means truly making a difference, and helping to effect change in the world. In addition to our financial implication in our

community, our Escouade D (a volunteer squad

made up of Caisse employees and officers) realized

700 hours of volunteer work in our region. Two

teams of runners, composed of fifteen employees,

also participated in the Lake Memphrémagog relay

race and raised $20,000 for the Fondation Christian

Vachon. A nice way to make a difference in the

Memphremagog RCM!

As education is central to the Caisse’s mission, we

are proud to contribute to the Desjardins Foundation

which launched the #DesjardinsFoundation Prizes

in 2016 to help support projects with elementary

and high school students. The project “Adopt a

bicycle” of De La Ruche High School won a prize of

$3,000.

At the same time, the Caisse gave out $12,500 in

scolarships, enabled the creation of 15 summer jobs

with the Desjardins-Jeunes au travail program,

supported the Student Caisse at De La Ruche High

School and the School Caisse in a dozen

CAISSE DESJARDINS DU-LAC-MEMPHRÉMAGOG 3

elementary schools in our region.

Particular attention was also paid to senior

members since the Caisse offered convenience

services in 8 senior citizen homes located in Magog

and also, thanks to its participation of the Pair

Program.

TOGETHER, WE ARE MAKING A DIFFERENCE

Your business relationship as a member of your

caisse gives you an opportunity to help improve

your community while providing you with many

advantages. Concrete examples of these

advantages: A comprehensive service offer and

practical tools, exclusive offers, individual and

collective dividends and the opportunity to

participate in the decisions of your caisse.

DESJARDINS MEMBER ADVANTAGES

Your caisse offered some exclusive advantages for

Desjardins members. Whether in the context of a

contest or at events sponsored by the Caisse, these

distinctive advantages have enabled the winners to

live a unique experience, to receive a gift or an

exclusive privilege.

In addition, the caisse paid out $254,700 in Member Advantages during the past year, in the form of discounts or bonuses offered on many diffrent products and services. To learn more, visit desjardins.com/advantages. CONTINUED IMPROVEMENT OF PRODUCTS

AND SERVICES

Your satisfaction remains our priority when it comes

to the quality of our products and the excellence of

our services. We will continue to adopt simple,

people-focused, modern and high-performing

approaches in order to maintain our special place in

your financial life. Thanks to our modern

approaches, including a range of virtual services,

we can be more accessible than ever. Desjardins

mobile payment solutions and Apple Pay, mobile

cheque deposit and Interac transfers are only a few

of the new features currently at your disposal.

To round out our virtual offer, certain financial

products are available exclusively on AccèsD: in

just a few clicks, you can open a high interest

savings account with no service fees, or access

market-linked guaranteed investments. It’s simple

and exclusive to Desjardins members.

As a member, you can play a role in your caisse’s

evolution to help boost its performance, especially

by sharing your ideas, impressions and constructive

comments. We can work together to share and

celebrate the deeply human and distinctive nature

of our caisse.

EXPRESSING OUR HEARTFELT THANKS

I want to extend my sincere appreciation to my

fellow officers, to the managers and to the

employees of the caisse for their unflagging

commitment. Under the dynamic management of

Mr. Jean-Luc Dasté, they draw on their skills and

great adaptability so that our cooperative can meet

your needs effectively. Thanks also to our

Desjardins subsidiary partners for supporting our

mission to serve our members. By joining forces, we

are in a position to offer you a range of

comprehensive and competitive financial products

and services.

Lastly, even greater thanks to our 31,430 members

for placing their trust in us.

Danielle Bolduc Chair, Board of directors

4 2016 ANNUAL REPORT

REPORT FROM THE CHAIR OF THE BOARD OF SUPERVISION

The board of supervision makes sure the caisse fulfills its responsibilities in terms of ethics, professional conduct and cooperation. SUPERVISION OF ETHICAL ASPECTS

Every year, caisse officers and employees renew their commitment to comply with the Desjardins Code of Professional Conduct. The Code sets out the behaviours that are expected as well as those that are not acceptable. The board of supervision ensured that the caisse, officers and employees took the values of Desjardins into account to guide their conduct. Here is a supervision report for the past year concerning three rules of professional conduct:

No conflict of interest situations were noted.

Deposits from and loans to restricted parties1 of the

caisse were granted in accordance with the caisse’s

code of ethics and applicable rules of professional

conduct. Loans granted to restricted parties totalled

$856,668.42.

The caisse and its centres did not grant any

contract for the supply of goods and services to

restricted parties subject to the Code2.

SUPERVISION OF COOPERATIVE ASPECTS

With regard to the supervision of cooperative aspects,

the board of supervision must ensure that Desjardins

values are an integral part of the caisse’s business and

management practices. It must also make sure that the

caisse contributes to the development of its community

and the economic and financial education of its

members. Lastly, it ensures that members are informed

about topics of importance to them.

1 Restricted parties: Caisse officers and general manager, officers of

the Fédération des caisses Desjardins du Québec and their associated persons.

2 Restricted parties subject to the Code: Restricted parties, caisse

employees and centre managers and their associated persons.

Over the past year, the board's activities focused on the

following topics:

Member participation in associative affairs, especially mechanisms established by the caisse to inform, listen to and consult members;

Activities and resources made available to members to assist them with financial management;

Strategies established by the caisse to improve member satisfaction and meet member needs;

Caisse support of community development, in particular through the Community Development Fund and the granting of donations and sponsorships.

The board of supervision is satisfied with the work

carried out in the past year.

I would like to thank the members of the Board for their

contribution, and the general manager for helping us

deliver on our mandate.

André Bégin Chair, Board of supervision

CAISSE DESJARDINS DU-LAC-MEMPHRÉMAGOG 5

MESSAGE FROM THE GENERAL MANAGER

Dear Members,

In 2016 your caisse continued its mission to meet all

your financial needs by offering you access to a

comprehensive range of products and services.

Offering members a first-rate business experience

remains one of our primary objectives for this year.

In addition to ensuring you are provided with

excellent service, your caisse and Desjardins Group

will continue to develop financial tools and exclusive

new benefits for members. Every effort is being

made to ensure that Desjardins is your financial

institution par excellence.

Below are the financial results of Caisse Desjardins

du Lac-Memphremagog and the share of net

income from business at Desjardins Group

subsidiaries as at December 31, 2016.

These results are directly related to your trust in us, and we are very grateful for that. Thanks to the loyalty of our 31,430 members, we can all benefit from the power of cooperation and support our business development. BUSINESS UNDER MANAGEMENT

Backed by $1,711 million in business under management, up 6.7% over 2015, the caisse is very well positioned in its market. Through its membership in Desjardins Group and participation in Desjardins Group subsidiaries, the caisse has access to a wide range of financial products and services to meet the ever-growing needs of its members.

COMMENTS ON THE FINANCIAL REPORT

3

BALANCE SHEET

Your financial cooperative’s assets total $845.8

million, up 6.8% over last year.

The caisse’s liabilities total $748.4 million, representing an increase of 7.06%. As of December 31, 2016, your cooperative’s equity

posted strong growth, rising to $97.4 million, a 5%

increase. Equity comprised $5.9 million in social

capital, $6.4 million in surplus earnings to be

distributed, $2.05 million in accumulated other

comprehensive income and $83.1 million in

reserves.

Total reserves amount to $83.1 million, including the

reserve for future dividends, which represents $0.9

million. Your caisse has also accumulated

$1.3 million in the Community Development Fund.

3 These comments on the financial report constitute an overview

of the complete report, which is available upon request. Required financial disclosures are presented in the appendix to this annual report.

6 2016 ANNUAL REPORT

The caisse’s capital base is at a level that is in accordance with the standard respecting capital base adequacy established by the Federation.

December

31 2016

December

31 2015 Standard

Tier 1A capital

over its risk

assets:

17.28 % 17.84 % >= 11 %

Tier 1 capital

over its

expansion

assets :

6.98 % 8.15% >= 3,5 %

STATEMENT OF INCOME

During the last fiscal year, your caisse generated $6.4 million in operating surpluses, down of 4.6% over the previous year.

CHANGE IN INCOME STATEMENT ($M)

2015 2016 Variance

($M) ($M) (%)

Interest income 24,6 23,9 -2,8%

Interest charges 7,5 7,2 -4,0%

Net interest income 17,1 16,7 -2,3%

Provision and losses on

loans0,6 0,7 16,7%

Other income 7,1 7,1 0,0%

Other charges 16,9 16,7 -1,2%

Operating surplus

earnings*6,8 6,4 -4,6%

Member dividends** 1,8 1,45 -19,4%

*Operating surplus earnings include Community Development Fund

expenses.

** Amount recommanded at the Annual meeting, for approval by the

members.

At the close of 2016, the caisse generated $7.1 million in surplus earnings before dividends, down 31.9% over the previous year. This year, we propose distributing a dividend of $1.45 million and contributing $300,000 to the Community Development Fund in the form of a collective dividend, which enables us to contribute to the well-being of our community by supporting key projects. The selected amounts were determined based on the importance of striking a balance between the distribution of surplus earnings, growth and capitalization. By maintaining the right balance

between financial market rules and regulations and our members’ needs, we can ensure the sustainable development of our caisse.

INVESTMENT FUNDS

The investments that caisses hold in investment

funds allow the Fédération des caisses Desjardins

du Québec to coordinate investments in Desjardins

Group subsidiaries and regional investments.

The table below indicates the caisse’s interest in

each investment fund and the return on it at the end

of the fiscal year.

THE FEDERATION’S OBLIGATION TO HOLDERS

OF PERMANENT SHARES

Further to a recommendation of the Autorité des marchés financiers, the Fédération des caisses Desjardins du Québec guarantees to cover losses suffered by Quebec caisse members holding permanent shares due to misinformation in the audited Combined Financial Statements and annual Desjardins Group Management’s Discussion and Analysis available at www.sedar.com. The Federation’s obligation in this matter is subject to certain conditions. Holders of permanent shares can request more information at their caisse.

Provincial fund

Shares held as at

December 31,

2016

Average return

Caisse centrale Desjardins (CCD)

$15,539,722 9.04%

Société de Services des caisses Desjardins (SER)

$(378) 0%

Desjardins Venture Capital (INV)

$222,000 16.93%

Desjardins Financial Corporation (FIN5A)

$30,577,956 11.6%

CAISSE DESJARDINS DU-LAC-MEMPHRÉMAGOG 7

The Combined Financial Statements of the Desjardins caisses in Quebec are also made available to the public on www.desjardins.com.

MODERN TOOLS AND PRODUCTS

More and more of you are adopting Desjardins

mobile applications. Available 24/7, these

applications offer the possibility to pay bills, transfer

funds or invest in exclusive financial products. Your

financial autonomy goes hand in hand with the tools

we place at your disposal, and we owe our longevity

and relevance to our ability to create effective tools

that meet your needs.

Accordingly, in the coming years we will be

installing new ATMs to replace our current

machines, which have become obsolete. The new

models will offer the features needed to carry out

your transactions, while ensuring a simple and fast

experience. This will provide an opportunity for the

caisse to conduct a needs analysis of automated

services so it can position itself based on its

members’ financial habits.

A TEAM DEDICATED TO YOU

Our 95 employees are ready to help you achieve

your financial objectives and carry out your projects.

I am grateful for their commitment and their

engagement, which are central to the quality of our

services. It is also thanks to them that Desjardins

Group continues to stand out as one of the best

employers in Canada. This recognition confirms

Desjardins’s position as a leading employer that is

close and committed to its employees.

I would also like to point out the contribution of our

elected officers. Their dedication to the caisse and

the community enables us to promote our unique

cooperative character.

By working together, we can build a stronger

institution and a more dynamic society.

Jean-Luc Dasté

General manager

8 2016 ANNUAL REPORT

ADDITIONAL INFORMATION TO THE FINANCIAL REPORT

SUMMARY OF LOAN PORTFOLIO

As of December 31, 2016, the loan portfolio of the caisse continued to be of high quality. Gross loans past due

but not impaired and gross impaired loans only represented 1.9% and 0.3%, respectively, of gross loans.

The following table presents the distribution of loans by borrower category, with the proportion of gross impaired

loans past due but not impaired, gross impaired loans and the related individual and collective allowances.

(in thousands of Canadian dollars)

Gross loans

neither past due

nor impaired

Gross loans

past due but not

impaired

Gross impaired

loans Individual

allowances Collective

allowances

Net loans as at

December 31, 2016

Net loans as at

December 31, 2015

Personal Residential mortgages

$365,751

Consumer and other

150,973

$516,724 $10,416 $512 $255 $319 $516,150 $483,211

Business Commercial and industrial

$160,357 $

Agriculture, forestry and fisheries

44,057

Public administrations and institutions

6,543

$210,957 $3,655 $1,319 $389 $444 $210,124 $197,603

Total $727,681 $14,071 $1,831 $644 $763 $726,274 $680,814 Refer to Note 2 to the Combined Financial Statements of the Desjardins caisses in Quebec available on the desjardins.com website for additional information

on presentation and significant accounting policies.

SUMMARY OF DEPOSIT PORTFOLIO

As of December 31, 2016, caisse members’ deposits amounted to $638,930,000 up $34,745,000 or 5.8%, since

the end of the previous year. Please note that the caisse’s main source of financing to ensure its expansion is

deposits from individuals. They represented 76.2% of total deposits as of December 31, 2016.

The table below presents the distribution of deposits by depositor category with proportions based on type of

savings.

(in thousands of Canadian dollars)

Chequing accounts

Tiered savings

accounts

Regular savings

accounts

Term savings

Registered Savings

plan

Total as at

December 31, 2016

Total as at

December 31, 2015

Personal $73,944 $61,714 $70,190 $99,209 $181,684 $486,921 $462,140 Business 80,728 9,613 22,070 12,993 - 125,404 90,178

Public sector and other

18,542 112 4,807 3,123 21 26,605 51,867

Total $173,214 $71,439 $97,067 $115,325 $181,885 $638,930 $604,185

Refer to Note 2 to the Combined Financial Statements of the Desjardins caisses in Quebec available on the desjardins.com website for additional information on presentation and significant accounting policies.

CAISSE DESJARDINS DU-LAC-MEMPHRÉMAGOG 9

CAISSE OFFICERS

Name Function Occupation End of

term

Number of presences

meeting/ commitees

Allocation of presence

given in 20161

BOARD OF DIRECTORS

Danielle Bolduc23

Chair Businesswoman 2017 23 $13,190

Georgianne Gagnon Vice-chair Retired 2018 12 $1,710

Maxime Langlois* Secretary Teacher 2016 18 $2,430

Christine Allard Officer Secretary 2018 9 $1,170

Jean-François Benoît* Officer Auditor (CPA, CMA) 2016 9 $1,350

Maxime Ferland Officer Engineer 2017 13 $1,680

Gaétan Giguère* Officer Clerk 2016 11 $1,470

Anne-Marie Grenier Officer Owner-Manager 2018 13 $1,680

Charles Guay Officer Lawyer 2017 10 $1,500

Michel Lafleur Officer Professor 2018 9 $1,350

Charles Métivier* Officer Academic Coordinator 2016 13 $1,860

Valérie Moreau Officer Notary 2017 5 $750

Jocelyne Pellerin Officer Honorary Notary 2017 12 $1,350

Matundu Loïc Véza4 Young Intern

Officer Student 2017 4 $210

Vacant Seat Officer 2018

BOARD OF SUPERVISION

André Bégin Chair Retired 2017 6 $1,620

Thérèse Gaulin Secretary Retired 2018 5 $750

Danielle Boulianne Advisor Semi-retired 2017 5 $750

Lucie Lessard Advisor General Management Assistant

2018 8 $840

Martin Pomerleau* Advisor Fireman 2016 5 $750

* Outgoing officers eligible for re-election 1 Allocation varies according to the implication in different commitees.

2 Chair since May 2008

3 Sits at the Council of the Eastern Township Representatives.

4 Mr. Matundu Loïc Véza has resigned from Young Intern Officer on december 1

st, 2016.

PricewaterhouseCoopers LLP1250, René-Lévesque Boulevard West, Suite 2500, Montréal, Quebec, Canada H3B 4Y1T: +1 514 205-5000, F: +1 514 876-1502, www.pwc.com/ca

“PwC” refers to PricewaterhouseCoopers LLP, an Ontario limited liability partnership.

March 29, 2017

Report on the results of applying specified auditing procedures to the financial report of Caisse Desjardins du Lac-Memphrémagog (the “Caisse”) prepared by the management of the Caisse

To the members of the Fédération des caisses Desjardins du Québec

We are the independent auditor of the separate combined financial statements of the Desjardins caisses in Quebec (the “combined financial statements of the Desjardins caisses in Quebec”), on which we expressed an unmodified opinion on February 24, 2017.

With respect to the accompanying financial report of the Caisse prepared by the management of the Caisse, we were engaged by the members of the Fédération des caisses Desjardins du Québec to agree the financial information contained in the financial report of the Caisse with the accounting records that include the Caisse’s specific accounting adjustments and were used to prepare the combined financial statements of the Desjardins caisses in Quebec for the year ended December 31, 2016 (the “procedures”).

We confirm that we agreed all financial information contained in the accompanying financial report of the Caisse for the year ended December 31, 2016 with the accounting records that include the Caisse’s specific accounting adjustments and were used to prepare the combined financial statements of the Desjardins caisses in Quebec for the year then ended, and we confirm that we found no exceptions.

In particular, as part of our procedures, we agreed the following financial information of the Caisse:

Total assets: 845,849,000 $Total equity: 97,416,000 $Net surplus earnings for the year after member dividends: 6,087,000 $

These procedures do not constitute an audit of the financial report of the Caisse as at December 31, 2016, and therefore we express no opinion on the financial report of the Caisse as at December 31, 2016.1

1 FCPA auditor, FCA, public accountancy permit No. A124829

10 2016 ANNUAL REPORT

FINANCIAL REPORT

CAISSE DESJARDINS DU LAC-MEMPHRÉMAGOG

BALANCED SHEET (unaudited)

(in thousands of Canadian dollars) YYYROUND_YESAs at

December 31, 2016As at

December 31, 2015

ASSETS YYYLANGUE_ENG

Cash and deposits with financial institutions $ 10,748 $ 8,346 YYY11

Securities

Investment in liquidity fund under management 1 43,040 41,598 YYY12

Term deposits and other 2,496 833 YYY13

45,536 42,431 YYY12

Loans

Personal 516,724 483,784 YYY14

Business 210,957 198,456 YYY15

727,681 682,240

Allowance for credit losses 1,407 1,426 YYY16

726,274 680,814

Investments in the Federation 46,374 42,058 YYY17

Other assets

Derivative financial instruments 6,854 8,140 YYY19

Property, plant and equipment 3,483 3,986 YYY20

Other 6,580 6,146 YYY21

16,917 18,272

TOTAL ASSETS $ 845,849 $ 791,921

LIABILITIES AND EQUITY

LIABILITIES

Deposits

Term savings $ 255,967 $ 248,496 3YYY30

Other 382,963 355,689 3YYY31

638,930 604,185

Borrowings 96,491 79,185 YYY32

Other liabilities

Derivative financial instruments 735 209 YYY33

Net defined benefit plan liabilities 4,580 4,825 3YYY34

Other 7,697 10,671 3YYY35

13,012 15,705

TOTAL LIABILITIES 748,433 699,075

EQUITY

Capital stock 5,886 9,915 YYY36

Distributable surplus earnings 6,377 5,413 YYY37

Accumulated other comprehensive income 2,045 1,357 YYY38

Reserves 83,108 76,161 YYY39

TOTAL EQUITY 97,416 92,846

TOTAL LIABILITIES AND EQUITY $ 845,849 $ 791,921

CAISSE DESJARDINS DU-LAC-MEMPHRÉMAGOG 11

CAISSE DESJARDINS DU LAC-MEMPHRÉMAGOG

STATEMENTS OF INCOME(unaudited)

For the years ended December 31

(in thousands of Canadian dollars) 2016 2015

INTEREST INCOME $ 23,900 $ 24,573 YYY50

INTEREST EXPENSE 7,169 7,504 YYY51

NET INTEREST INCOME 16,731 17,069

OTHER INCOME 7,130 7,106 YYY52

PROVISION FOR CREDIT LOSSES 694 564 5YYY53

OTHER EXPENSESSalaries and fringe benefits 7,182 6,661 YYY54Assessments paid to Desjardins Group components 2,408 2,157 YYY55Community development expenses 311 337 YYY56Other 6,822 7,704 YYY57

16,723 16,859

OPERATING SURPLUS EARNINGS 6,444 6,752Income on investments in the Federation 4,672 4,425 YYY58Income (loss) related to fair value of derivative financial instruments (2,529) 1,544 YYY59

SURPLUS EARNINGS BEFORE TAXES AND MEMBER DIVIDENDS 8,587 12,721Income taxes on surplus earnings 1,506 2,320 YYY60

SURPLUS EARNINGS BEFORE MEMBER DIVIDENDS 7,081 10,401Member dividends 1,360 1,754 YYY61Tax recovery on member dividends (366) (472) YYY62

NET SURPLUS EARNINGS FOR THE YEAR AFTER MEMBER DIVIDENDS $ 6,087 $ 9,119

12 2016 ANNUAL REPORT

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(176)

Repurc

hase

of perm

anent sh

are

s(3

,149)

--

--

--

--

--

(3,1

49)

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er

net ch

ange in

capita

l sto

ck(1

63)

--

--

--

--

--

(163)

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stm

ent re

late

d to m

em

ber

div

idends

-(3

4)

--

--

--

--

-(3

4)

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nce a

fter

dis

trib

uti

on

2015

$9,9

15

$5,4

13

$1,3

57

$21,0

40

$3,1

71

$(3

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$49,8

60

$3,3

62

$924

$1,3

33

$76,1

61

$92,8

46

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lus

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s-

(422)

--

--

--

--

-(4

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er

from

(allo

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-(5

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--

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4,8

57

--

200

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57

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et adju

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-66

--

--

--

--

-66

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-1,3

57

21,0

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3,1

71

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54,7

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3,3

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924

1,5

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81,2

18

92,4

90

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ings

for

2016 a

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87

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-331

511

--

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842

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203

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-228

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-(2

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(228)

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quity

tra

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ther

inve

stm

ents

in the

Federa

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--

177

1,9

15

--

--

--

1,9

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2,0

92

Repurc

hase

of perm

anent sh

are

s(3

,887)

--

--

--

--

--

(3,8

87)

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er

net ch

ange in

capita

l sto

ck(1

42)

--

--

--

--

--

(142)

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stm

ent re

late

d to m

em

ber

div

idends

-(6

6)

--

--

--

--

-(6

6)

Bala

nce a

fter

dis

trib

uti

on

2016

$5,8

86

$6,3

77

$2,0

45

$24,8

51

$1,3

10

$(3

,361)

$54,7

17

$3,3

62

$924

$1,3

05

$83,1

08

$97,4

16

YY

Y100

YY

Y101

YY

Y102

YY

Y103

YY

Y104

YY

Y105

YY

Y106

YY

Y107

YY

Y108

YY

Y109

YY

Y110

YY

Y111

CAISSE DESJARDINS DU-LAC-MEMPHRÉMAGOG 13

CAISSE DESJARDINS DU LAC-MEMPHRÉMAGOG

NOTE TO THE FINANCIAL REPORT(unaudited)

NOTE 1 – TYPES OF OPERATIONS AND BASIS OF ACCOUNTING

The Caisse is a cooperative whose purpose is to receive the savings of their members in order to invest them profitably as well as to extend credit andsupply other financial products and services to their members. Its mission also includes fostering cooperation and promoting economic, social andcooperative education. It is governed by the Act Respecting Financial Services Cooperatives (the Act).

The Caisse is registered with the Autorité des marchés financiers (AMF) in Quebec. It is also a member of the Fonds de sécurité Desjardins, whose mainpurpose is to establish and administer a security, liquidity or mutual benefit fund for the benefit of the Desjardins caisses in Quebec.

The Caisses are members of the Fédération des caisses Desjardins du Québec (the Federation), which controls other components that form DesjardinsGroup.

This financial report has been prepared in accordance with the requirements set out in the Act. The Caisse applies accounting policies similar to thoseused for the preparation of the combined financial statements of the caisses Desjardins du Québec, which are prepared in accordance with International

Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board. Some figures from the prior year were reclassified to be

consistent with the presentation of the financial statements of the current year. This reclassification did not affect the Caisse’s surplus earnings or totalassets and liabilities.

14 2016 ANNUAL REPORT

CAISSE DESJARDINS DU-LAC-MEMPHRÉMAGOG 15

SUGGESTED ALLOCATION OF SURPLUS EARNINGS

DISTRIBUTION RECOMMANDATION

Interest on permanent shares (3.5%) $234,899

Interest on surplus shares (3.5%) $16,331

Stabilization reserve $0

General reserve $5,825,771

Appreciation reserve $1,583,389

Use of the reserve for future member dividends $0

MEMBER DIVIDENDS $1,750,000

Collective member dividends – Community Development fund

$300,000

Individual member dividends $1,450,000

Member dividends on loans $695,588

Member dividends on savings $703,771

Member dividends on service charges (2.12%) $50,482

Examples of member dividends

Mortgage for $125,000 Rate of 4.74% = $5,925 paid in interests

Rate: 2.80%

$166

Savings held $50,000 Rate of 1.50% = $750 paid in interests

Rate: 11.2% $84

12 2016 ANNUAL REPORT

APPROVAL OF THE ANNUAL REPORT We certify that the 16

th annual report of Caisse Desjardins du Lac-Memphrémagog meets the requirements of the

Act respecting financial services cooperatives and has been duly approved by the caisse’s board of directors. Danielle Bolduc Chair of the Board of Directors

Maxime Langlois Secretary

CONTACT INFORMATION ACCESS YOUR CAISSES’S SERVICES 24/7

SERVICES ACCESSIBLE THROUGHOUT THE TERRITORY

Telephone : 819 843-3328 Toll Free : 1 866 400-3328

desjardins.com/caissedulacmemphremagog desjardins.com/advantages

facebook.com/caisselacmemphremagog SPEAK TO EN ADVISOR (INCLUDING HOLIDAYS)

Du lundi au vendredi, de 6 h à 22 h Le samedi et le dimanche, de 8 h 30 à 16 h HEAD OFFICE

230, rue Principale Ouest, Magog J1X 2A5

MAGOG SERVICE CENTRE

1860, rue Sherbrooke, Magog J1X 2T3 EASTMAN SERVICE CENTRE

12, rue Lapointe, C.P. 240, Eastman J0E 1P0 STANSTEAD SERVICE CENTRE

12, chemin de Fairfax, Stanstead J0B 3E0 MANSONVILLE AUTOMATED SERVICE CENTRE

342, rue Principale, C.P. 9, Mansonville J0E 1X0 DESJARDINS BUSINESS – ESTRIE

1815, rue King Ouest, bureau 300, Sherbrooke J1J 2E3 Téléphone : 819 821-2201 Sans frais : 1 866 821-2201

Caisse Desjardins du Lac-Memphrémagog is proud to present with an Annual Report that is printed entirely on 100% recycled paper.

EXTENDED HOURS l OPEN ON SATURDAY