annual report - new community credit union · 1. call to order 2. adoption of agenda 3. moment of...

2016

New Community Credit Union

Annual Report

78th ANNUAL MEETING - 2017 NEW COMMUNITY CREDIT UNION

Wednesday, March 29, 2017 St. George’s Senior Citizens Centre

6:30 P.M. REGISTRATION 7:00 P.M. MEETING MEETING AGENDA

1. Call to Order

2. Adoption of Agenda

3. Moment of Silence – Deceased Members

4. Reading and Adoption of 77th Annual Meeting Minutes – March 23, 2016

5. Reports

a) Board Chair

b) Secretary

c) Management Discussion and Analysis Report

d) Auditor’s Report

6. Discussion and Adoption of Reports

7. Board Election

8. Appointment of Auditor

9. New Business

10. Adjournment

78-ті Річні Загальні Збори

29-го березня 2017 року Середа , 7 година вечора Зал Сеньйорів Св.Юрія

1235-20-та Вулиця Захід

1. Відкриття зборів

2. Прийняття порядку денного

3. Вшанування пам’яті померлих членів нашої кредитної спілки хвилиною мовчання

4. Читання і прийняття протоколу 77-тих Річних загальгих зборів від 23-го березня 2016 року

5. Звіти:

а) Президента

б) Секретаря

в) Головного Менеджера

г) Аудитора

6. Обговорення звітів та їх прийняття

7. Вибори членів дирекції

8. Призначення аудитора

9. Пропозиції та рекомендації

10. Закриття зборів

NEW COMMUNITY CREDIT UNION 77TH ANNUAL MEETING MARCH 23 2016 – 7:00pm

St. George’s Senior’s Centre 1235-20th Street West

1. Meeting was called to order by Board Chair Cliff Arthurs. - Randy Pshebylo was nominated to chair the meeting by Julius Calyniuk and

seconded by Colleen Brown. - Colleen Brown agreed to take the minutes of the meeting.

2. Motion to adopt the agenda made by Gwen Klypak and seconded by Barry Slowski. 3. Motion to accept the minutes of the 76th Annual Meeting held April 25 2014 made by

Gordon Klimek and seconded by Barry Slowski. 4. Moment of Silence for deceased members. 5. Presentation of Reports:

A.) Cliff Arthurs presented the Chairman’s Report. B.) Colleen Brown presented the Secretary’s Report mentioning overall attendance for

the 11 regular meetings was 88% with the Audit Committee holding 2 meetings. Remuneration paid to Directors was $9725.

C.) Darren Doepker presented the General Manager’s Report. Tremendous growth at 11% with deposit growth at 12.3%. Loan demand at 8.21% and overall portfolio growth at 3.49%

D.) Kurt Wagner of MNP presented the Auditor’s Report and congratulated NCCU on another successful year. Motion to adopt the Auditor’s Report, Chair Report, Secretary Report and the GM report was made by Cliff Arthurs and seconded by Barry Slowski.

6. Election of Board Members: 3 positions were open. Cliff Arthurs and Delva Rebin agreed to stay on, each for another 3 year term. Julius Calyniuk completed 9 years on the Board of Directors. Motion made by Gwen Klypak to nominate Morris Bodnar for a 3 year term and seconded by Colleen Brown.

7. Motion by Bernie Bodnar and seconded by Delva Rebin that we appoint MNP to be our auditors for 2016.

8. New Business A.) Thank you to Randy Pshebylo for chairing tonight’s meeting. B.) Thank you to Julius Calyniuk for his 9 years of dedication to NCCU on the Board of

Directors. 9. Doug McConnell adjourned the meeting and seconded by Bernie Bodnar.

NEW COMMUNITY CREDIT UNION

INCORPORATED: January 26, 1939

CREDIT UNION CHARTER NO. 20

OFFICERS:

CHAIR – Roman Sywanyk VICE CHAIR – Cliff Arthurs

SECRETARY – Colleen Brown

DIRECTORS

Name Occupation Years of Service Cliff Arthurs – Vice Chair Retired 7 Roman Sywanyk- Chair Claims Investigator 3 Colleen Brown - Secretary Entrepreneur 6 Delva Rebin Retired 6 Barry Slowski Chief Financial Officer 6 George Zerebecky Retired 5 Angela Wojcichowsky Director International Projects 4 Morris Bodnar Lawyer 7 Gwen Klypak Artist 2

STAFF

Name Position Years of Service Darren Doepker General Manager 28 Cheryl Helmeczi Office Supervisor 17 Robert Hoesgen Manager, Retail Services 7 Kathy Hrabowy Business Development Officer 28 Bonita Ireland Member Account Manager 14 Peter Harbin Member Account Manager - Tamara Buckingham Compliance Officer/Support Analyst 5 Liuba Grynkiv-Stokalko Part time Member Service Rep 11 Natalina Wilson Member Service Rep 2 Vita Demiashova Member Service Rep 2 Terrilynn Sawitsky Part time Member Service Rep 1

Vision

To be the premier provider of personalized financial services to a growing and diverse membership.

Mission

By providing financial solutions and advice we develop meaningful lifelong relationships.

Our professional and knowledgeable people provide a positive customer experience because they care.

By building on our roots we are able to create prosperity for our members, employees and community.

Values

Co-operation and Accountability We are committed to working towards providing our members with the highest quality service. Our strength and development is enhanced by acting co-operatively as a system. We take into account the effect of our actions on each other.

Service and Product Excellence We strive for the highest quality service in the financial community. We provide all credit union members with friendly, knowledgeable and helpful service. Our continuous innovations ensure members receive added value. We provide access to a broad range of financial products tailored to meet or exceed member needs.

Communication We communicate in an open, effective and timely manner.

Employee Satisfaction We respect our employees and their contributions to our success. We encourage employee involvement and participation. We recognize and reward them for their creativity, team work and achieving objectives. We support their development by providing training and educational opportunities. We respect their need to balance personal and professional lives.

Community Impact We actively support the development of our communities locally, provincially and beyond. Our communities are stronger because of our credit union.

Financial Performance Our strong financial performance allows us to fulfill our co-operative principles. We balance our need for financial results with the needs of our members and communities. We earn the confidence of our members and ensure our continued growth and development by providing an unlimited guarantee on member deposits and adhering to sound business practices.

Professional Conduct Members’ financial affairs are conducted with integrity and in a professional manner. Our ethical principles are rooted in the concern for the individual. Confidentiality is integral to the way we do business.

Co-operative Principles

As a true co-operative financial institution, New Community Credit Union (NCCU) acts in accordance with internationally recognized principles of co-operation:

Voluntary and Open Membership

Co-operatives are voluntary organizations, open to all persons able to use their services and willing to accept the responsibilities of membership, without gender, social, racial, political or religious discrimination.

Democratic Member Control Co-operatives are democratic organizations controlled by their members, who actively participate in setting their policies and making decisions. Men and women serving as elected representatives are accountable to the membership. In primary co-operatives members have equal voting rights (one member, one vote) and co-operatives at other levels are also organized in a democratic manner.

Member Economic Participation Members contribute equitably to, and democratically control the capital of their co-operative. At least part of that capital is usually the common property of the co-operative. Members usually receive limited compensation, if any, on capital subscribed as a condition of membership.

Members allocate surpluses for any or all of the following purposes: Developing their cooperative by possibly setting up reserves, part of which at least would be indivisible; benefiting members in proportion to their transactions with the co-operative, and supporting other activities approved by the membership.

Autonomy and Independence Co-operatives are autonomous, self-help organizations controlled by their members. If they enter agreements with other organizations, including governments, or raise capital from external sources, they do so on terms that ensure democratic control by their members and maintain their co-operative autonomy.

Education, Training and Information Co-operatives provide education and training for their members, elected representatives, managers, and employees so they can contribute effectively to the development of their cooperatives. They inform the general public - particularly young people and opinion leaders about the nature and benefits of co-operation.

Co-operation among Co-operatives Co-operatives serve their members most effectively and strengthen the co-operative movement by working together through local, national, regional and international structures.

Concern for Community Co-operatives work for the sustainable development of their communities through policies approved by their members.

Credit Union Market Code

NCCU voluntarily adheres to the Credit Union Market Code. This code has been jointly developed by Saskatchewan credit unions, SaskCentral and Credit Union Deposit Guarantee to ensure the protection of credit union members. The code sets forth guidelines for the following areas:

o Complaint handling, which outlines the process for dealing with all complaints regarding the service, products, fees or charges of NCCU.

o Fair sales by outlining the roles and relationship of staff to all members and in accordance with the financial services agreement.

o Financial planning process to advise members on the risks and benefits associated with financial planning services.

o Privacy to protect the interests of those who do business with NCCU. Privacy is the practice to ensure all member information is kept confidential and used only for the purpose for which it was gathered.

o Professional standards to preserve a positive image of NCCU among our members and communities.

o Capital management to ensure our capital structure aligns with our risk philosophy. o Financial reporting to adhere to business and industry standards. o Governance practices to adhere to the intent and stipulation of our corporate bylaws,

which are approved by the membership of NCCU. o Whistleblower policy which provides individuals a mechanism or channel by which they

can report incidents of actual or potentially improper or unethical conduct, without fear of reprisal or unwarranted negative consequences.

o A Social Media policy which is intended to offer practical guidance for responsible social media use an interaction by employees or management.

o Risk management to ensure all risks are measured and managed in an acceptable fashion.

Chairperson’s Report

On behalf of our Board of Directors, I am pleased to present the New Community Credit Union

2016 Annual Financial Report.

Over the past year we have seen numerous changes on how we do our business. This change

has been driven by technology, compliance requirements set by our regulators and changes to

the standards of sound business practice. Through all of this the Credit Union as in the past has

enjoyed another successful year with growth in assets and increased net revenue.

I congratulate the management and staff of the New Community Credit Union as it is through

their dedication and hard work that enables the Credit Union to grow and be profitable.

Congratulations to the New Community Credit Union for 78 years of excellent service to our

members and community.

I am honored to have served on the Board of New Community Credit Union, both as a member

of the Board and Chairperson.

In closing, on behalf of our Board of Directors, management and staff of our credit union, we

extend our sincere thanks to our members for their continued patronage and support. In

working together, we assure our success into the future.

Roman Sywanyk

Chairperson of the Board

Secretary’s Report

The Board of Directors held 11 regular meetings this past year with an average attendance of 80%. The Audit Committee held 2 meetings, and there was a CUDGC Liquidity Consultation Meeting which was also attended by a board member. Total remuneration paid to the Directors was $10,625.

Management Discussion & Analysis Introduction NCCU is an independent member owned Saskatchewan credit union. Current legislation enables NCCU to provide financial services to members and non-members. As of December 31, 2016 NCCU had 2277 members. This amount is down slightly from the 2292 members in 2015. All members hold two $5 shares, allowing them to participate in the democratic process. NCCU has held its office in the Riversdale Community our entire 78 year history, predominately providing services to Saskatoon and bordering communities. Service channels are in-branch, the ATM network, CU Connect, internet banking and some mobile banking. Although cost restraints sometimes limit NCCU from being on the leading edge of technology we are committed to listening to the needs of our membership. In 2016 we made a commitment to implement Mobile App. This will allow more convenient access to banking needs through your mobile device. NCCU remains committed to providing a good balance between fiscal responsibility and providing the service expectations of all members.

Strategy NCCU’s Mission is “To be the premier provider of personalized financial services to a growing and diverse membership”. A strategic initiative has always been to provide our members with an elite level of personal service. Staff remained relatively stable in 2016. We did see the resignation of one Member Account Manager. This position was filled as a result of external recruitment, with limited disruption. NCCU remains committed to providing a premier level of personal service and commend our staff for continuing to embrace this member-first philosophy. We continue to be mindful of organizational expenses, while not jeopardizing our focus on the diverse needs of our membership. Maintaining relevance in the highly competitive and scrutinized financial services industry is a daily challenge; however, NCCU is committed to long term sustainability. Success and sustainability continue to have an evolving definition. Escalating attention on Compliance, Capital Adequacy, Liquidity and Enterprise Risk Management continue to place pressure on balancing growth while remaining profitable, in order to increase Retained Earnings. NCCU is pleased to report strong financial performance in 2016. Once again we have the commitment of our loyal members to thank for this success. Maintaining these financial results with the low interest environment is going to be difficult. Low commodity prices have had an impact on our local economy and will continue to have an effect on our industry as a result of this slow down.

Results Financial Performance

The following will provide a summary of the Financial Statements found later in this report. NCCU ended 2016 on budget in the majority of categories. With a 5.4% increase, Balance Sheet Assets ended the year at $89.1M

The growth in Assets was once again made possible by an increase in deposits. NCCU saw a 4.83% increase to $82.3M. This growth was spread out in the various different deposit accounts; both registered and non-registered.

Strong loan demand continued in 2016 resulting in a 10.37% increase in loans, to $73.3M. Loans currently make up just under, 82.2% of assets. After being slightly down last year, this ratio is back up to more traditional levels. In addition to balance sheet loans NCCU administers an additional $18.8M for strategic partners. Our total loan portfolio as at Dec 31st was $89.6M.

$0

$20,000,000

$40,000,000

$60,000,000

$80,000,000

$100,000,000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Dollars

New Community Credit Union Asset Growth

$89,106,681

0

20,000,000

40,000,000

60,000,000

80,000,000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Dollars

New Community Credit Union Loan and Deposit Growth

Loan

Deposits

0

20,000,000

40,000,000

60,000,000

80,000,000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Dollars

New Community Credit Union Loan Growth

Loans

NCCU’s Balance Sheet loan portfolio consisted of the following breakdown at year end:

**Credit Risk NCCU’s loan portfolio has traditionally been heavily weighted in residential mortgages. The last number of years the Board has assessed risk through a Risk Appetite Statement. Although comfortable with the lack of diversity in a heavily concentrated residential portfolio, they recognized the strain that is placed on Interest Margin. Over the past few years NCCU has placed considerable emphasis on a more diversified loan portfolio. Although this does expose our organization to increased risk, the expectation is it will also increase interest and non-interest revenue. This focus is the primary reason you will see a large increase in loan write-offs in 2016. Included in this amount written-off is an allowance of $20,000. Although we saw the increase in loan write-offs and our delinquency has remained higher than we have seen in prior years; we did enjoy a 16.1% increase in net income. We also saw our Return on Assets increase to .67%, after tax.

New Community Credit Union Loan Categories

Commercial 7.1%

Mortgages 75.7%

Consumer 13.7%

Line of Credit 3.5%

($5,000)

$5,000

$15,000

$25,000

$35,000

$45,000

$55,000

$65,000

$75,000

$85,000

$95,000

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

New Community Credit Union Write-offs

Writeoffs

**Liquidity Risk Liquidity is the capacity to generate or obtain sufficient cash in a timely manner at a reasonable price to meet commitments as they become due. High-quality liquid assets can be easily and immediately converted into cash at little or no loss of value. Saskatchewan credit unions are required to maintain 10% of their deposits with SaskCentral. These statutory deposits support clearing and settlement within the national credit union system and are administered by SaskCentral. Operating Liquidity is the availability of high quality liquid assets as a percentage of potential outflows. NCCU’s more managed growth of deposits in 2016 resulted in our ability to move more of these deposits in loans as has been seen in prior years. 2016 also saw our regulator, Credit Union Deposit Guarantee Corporation implement new Liquidity Standards. These new standards will be effective January 2017. Capital and Profitability Management We are very pleased to report another successful year with net profit of $601,298. This represents a 16.1% year-over-year increase. Good profitability results in a strong and healthy equity position. Increased regulatory requirements continue to place pressure on building reserves; as a result, the Board made the decision to move 100% of this year’s profit into Retained Earnings. Equity is the difference between assets and liabilities which is the measure of ownership. Equity can be measured both as a percentage of assets or as a dollar amount. We completed the 2016 year with $6,543,036. Equity or Capital is the financial strength of a credit union. The level of capital held protects against anticipated and unexpected events. Credit Union Deposit Guarantee Corporation sets standards for the Credit Unions to follow. Although CUDGC sets minimum standards, they consider it prudent to maintain Capital levels which exceed regulatory minimums. One ratio measured is the Leverage Ratio. NCCU has a Leverage Ratio of 7.2% which exceeds the 5.0% regulatory minimum. The Board is pleased with the progress towards the self-imposed target of 7.5%.

0

2,000,000

4,000,000

6,000,000

8,000,000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Dollars

New Community Credit Union Change in Equity Position

Equity

Productivity is an area of operations we continue to focus considerable attention. With increased costs and continued pressure on interest rate margin we are constantly looking for ways to become more efficient. Efficiency Ratio is another measure often used in the financial services industry. Although we are pleased with our profitability, to remain competitive we will continue to assess this ratio. Effectively, Efficiency Ratio is the amount you need to spend in order to make $1 - the lower the ratio the better. We are extremely pleased with the fact for a fourth straight year we were able to lower this ratio. At 64.44% this brings us below the system average of 71.71%.

The following will show our productivity compared to our Peer Group and the provincial average. PRODUCTIVITY

New Community Provincial Assets/Staff $8,103,667 $6,301,519 - with Assets under Admin $11,110,034 Deposits/Staff $7,428,576 $5,376,367 - with Deposits under Admin $8,730,089 Loans/Staff $6,679,545 $5,075,854 - with Loans under Admin $8,384,398 Membership/Staff 207 165 Personnel $75,140 $86,324

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

New Community Credit Union Income & Expenses

Interest Margin

Non Interest Revenue

Non Interest Expenses

Summary With a 16.1% increase in net income NCCU has maintained good profitability. Continuing to look for additional revenue streams will be important moving forward. Board and management are committed to sound financial management. Part of this will be to pay close attention to balancing capital levels and maintaining a sustainable growth rate. With escalating attention on capital, NCCU will continue to focus on building reserves for the foreseeable future. As a financial institution, the credit union is essentially in the business of taking on and managing risk on a number of fronts. The Board of Directors and Executive Management are committed to balancing and managing the various risks of the organization to ensure strength and stability well into the future. We have stabilized the staffing nicely and feel we have the expertise combined with the financial industry experience to position NCCU for the future. Management works closely with the credit union’s Board of Directors to establish policies and procedures to effectively manage the various risks that the organization is exposed to. The Financial Services Industry is highly scrutinized and regulated. Regular audits; both internal and external, combined with ongoing monitoring performed by the Credit Union Deposit Guarantee Corporation (CUDGC) provides support to the risk management function of the credit union. Risk is managed on a regular basis with monthly meetings and regular and detailed reporting presented to NCCU’s Board of Directors.

Enterprise Risk Management Each year our credit union spends significant resources measuring and assessing risks to ensure we are adequately prepared to serve our community now and in the future. This process is called Enterprise Risk Management (ERM) and is a requirement of credit unions in Saskatchewan as laid out by Credit Union Deposit Guarantee Corporation. In 2016 NCCU dedicated significant resources in completing an extensive review of our ERM, ICAAP & evaluating our 5 Year Capital Plan. Along with this we dedicated one regular board meeting to review the process. Through this the following risks along with Credit Risk and Liquidity Risk previously listed in the financial performance section have been identified - risks according to their potential impact on NCCU. The result of this process is a strategy that we continue to maintain and build capital.

Strategic Risk Strategic risk is the risk that adverse decisions, ineffective or inappropriate business plans, failure to respond to changes in the competitive environment, customer preferences, product obsolescence, or resource allocation will impact our ability to meet our objectives. This risk is a function of the compatibility of an organization’s strategic goals, the business strategies developed to achieve these goals, the resources deployed against these goals, and the quality of implementation. Strategic risks identified by NCCU in its ERM continue to include: To recognize the potential risk resulting from difficulty or an inability to implement appropriate strategies that are required to address problems or challenges.

Market Risk Market risk is the exposure to potential loss from changes in market prices or rates. Losses can occur when values of assets and liabilities or revenues are adversely affected by changes in market conditions, such as interest rate or foreign exchange movement.

Legal and Regulatory Risk Legal and regulatory risk is the risk arising from potential violation of, or nonconformance with, laws, rules, regulations, prescribed practices, or ethical standards.

Operational Risk Operational risk is the risk of loss resulting from inadequate or failed internal processes, people and systems, or external events. Exposures to this risk arise from deficiencies in internal controls, technology failures, human error, employee integrity, or natural disasters.

Credit Risks Credit risk is the risk of loss arising from a borrower or counterpart’s inability to meet its obligations. Sources of credit risks include direct lending activities, discussed earlier in this report, and holding of investment securities.

Liquidity Risk Liquidity risk is the potential inability to meet obligations, such as liability maturities, deposit withdrawals, or funding loans without incurring unacceptable losses. Liquidity risk includes the inability to manage unplanned decreases or changes in funding sources.

Reputational Risk A negative event occurs that causes the public to lose confidence in financial institutions, Credit Union Central(s), the credit union system in general, or more specifically with NCCU.

Regulatory Regulatory matters are an ongoing concern of NCCU. A number of the more active include; The Registrar of Credit Unions, The Credit Union Deposit Guarantee Corporation (CUDGC), Office of the Superintendent of Financial Institutions (OFSI), Financial Transactions & Reports Analysis Center of Canada (FINTRAC), Canada Revenue Agency (CRA), and Mutual Fund Dealers Association(MFDA). The governance of NCCU is anchored in the co-operative principles of democratic member control.

Board of Directors Mandate and Responsibilities The board is responsible for the strategic oversight, business direction and supervision of management, of NCCU. Acting in the best interests of the credit union and its members, the board’s actions adhere to the standards set out in The Credit Union Act 1998, the Standards of Sound Business Practice, and other applicable legislation. Board Composition The board composition is 9 individuals, regularly elected to hold 3 year terms. Nominations are made and if voting is required it is done by paper, with election results announced at the annual general meeting. Directors whom terms expire in 2017 include Barry Slowski, Colleen Brown and Roman Sywanyk. Although all 3 are available to allow their name to stand for an additional 3 year term; Colleen Brown has decided she will not leave her name stand and as a result will be leaving NCCU Board of Directors. We would like to thank Colleen for her commitment and dedication over the past 6 years. During the year we had Cliff Arthurs step down as Board Chair. Roman Sywanyk was placed as Chair for the remainder of the year. Our GM was placed as Delegate to SaskCentral for NCCU where he met with other credit union delegates. Board Compensation/Attendance/Training & Evaluation NCCU is fortunate to have competent guidance through the dedicated Management and Board of Directors. As in past years, the Board of Directors was busy with regular and committee meetings throughout the year. 11 regular meetings were held. Directors had an 80%

attendance rate and received a per diem for meetings attended. Out of pocket expenses such as mileage and meal costs are also reimbursed. To assess their performance the board performs an annual self-assessment. Board Committees The Board of Directors organizes itself into several committees to ensure that oversight of various aspects of our operations and governance can be dealt with most effectively. The committees of the board are as follows:

Executive Committee: acts on behalf of the board of directors between regular or special

board meetings on all board matters except those which the board may not, in compliance

with legislative requirements, delegate. The 2016 members of the committee were: Cliff

Arthurs - President, Roman Sywanyk - Vice-President, Colleen Brown - Secretary. The

executive committee is elected annually at the re-organization meeting.

Audit Committee: oversees risk management and ensures the integrity of financial

reporting, adequacy of internal controls and adherence to relevant legislation, regulations

and standards. 2016 members of this committee were: Barry Slowski - Chair, Colleen Brown,

Gwen Klypak & Cliff Arthurs. The Audit Committee is appointed annually at the re-

organization meeting.

Risk Committee: the entire Board oversees our Risk Management regime and one regularly

scheduled meeting is dedicated to Risk Management.

Conduct Review Committee: ensures related party transactions comply with legislation,

standards of sound business practice as well as credit union policies and procedures. This

committee also holds the dual role of Credit Committee, tasked with the review and/or

approval of all the General Managers credit requests. 2016 members of this committee are:

George Zerebecky, Delva Rebin, Angela Wojcichowsky & Roman Sywanyk. The conduct

review committee is appointed annually at the re-organization meeting.

Nominating Committee: oversees the nomination and election processes for the Elections

of credit union directors. In 2016 members were appointed as per required by the board of

directors. Members included: Cliff Arthurs – Chair, Delva Rebin & Gwen Klypak

Policy Review Committee: the entire Board oversees Policy Review.

Corporate Social Responsibility (CSR) NCCU has always contributed to the well-being of the community. Companies are continually finding ways to be strong and productive corporate citizens. NCCU is proud to take steps necessary to have a positive impact on our community, providing a consistent image of a respected corporate citizen. NCCU has undertaken a number of initiatives during the year in support of the community, charitable or service-based organizations, as well as provided financial support. NCCU promotes environmental standards by means of programs such as paper recycling, react promotion, reduced printing, electronic statement promotion, etc. NCCU Human Resource policies focus on the well-being of employees such as the development of a safe and respectful workplace. Volunteer hours & activities conducted during work hours are supported by NCCU. Time off in-lieu of volunteer hours is also provided.

Capital Management NCCU’s Board and Management recognize a need to sustain the credit union’s capital position in order to continue to meet regulatory and sound operational requirements. Adequate capital enables the credit union to sustain its liquidity requirements, to safely fund development initiatives, and provide leverage to effectively manage performance standards. NCCU’s objective is to hold the optimal amount of regulatory capital. Holding an inadequate amount of capital threatens the ability of the credit union to meet its obligations, or restricts its ability to grow. Holding an abundance of capital will unnecessarily reduce the return on capital. NCCU’s Capital Plan is related to its service delivery strategies and risk philosophy. The credit union has traditionally held a moderate to low appetite for risk in the loan and investment portfolio. This has been a valuable strategy in the past. The Credit Union Deposit Guarantee Corporation has set minimum standards for credit unions, regarding capital levels. The Standards of Sound Business Practice Capital Adequacy Requirements are as follows: Regulatory Limits (as a % of risk-weighted assets)

Common Equity Tier 1

Total Tier 1 Total Eligible Capital

Minimum 4.5% 6.0% 8.0%

Conservation Buffer 2.5% 2.5% 2.5%

Minimum plus conservation buffer 7.0% 8.5% 10.5%

The above stated limits are regulatory minimums. CUDGC does not consider it prudent for credit unions to rely solely on compliance with regulatory minimums when assessing its capital adequacy. CUDGC expects credit unions to maintain capital levels above regulatory minimum standards, at levels appropriate for their individual risk appetite and risk profile. CUDGC’s expectation of credit unions is to establish capital limits that:

o support prudent operations

o are appropriate for the credit union’s risk profile, risk appetite and risk tolerance

o are aligned with the credit union’s stress testing program and ICAAP; and

o are stricter than regulatory minimums

For NCCU the 1st two ratios are very similar. The minimum standard for Total Tier 1 Capital is 8.5%, this includes the 2.50% buffer. Our Tier 1 capital ratio for the year ending December 31, 2016 was 12.98%. The aggregated credit union system held 12.65%. As at December 31, 2016 NCCU had a Total Eligible Capital Ratio of 13.07 %. While the aggregated credit union system held 13.55%. Finally the Leverage ratio has a minimum standard of 5% set by CUDGC. We presently have a Leverage Ratio of 7.2%. 7.96% is the average of the provincial system. NCCU is pleased to be working closer to our target of 7.5%.

Compared to the system and CUDGC standards our capital places us in a good position. NCCU’s strategy is to manage its balance sheet growth and capital levels. NCCU currently meets ICAAP capital levels. Management and the Board is committed to staying on top of strategies to maintain sufficient profitability to ensure we remain at or above capital limits. In concluding, Capital management can be very complex and includes 6 areas. Areas include:

► Board and Management oversight - Policies are developed - i.e. desired capital levels, risk tolerance, capital expenditures

► Sound capital assessment and planning - Capital Plans are developed by management and board and reviewed ongoing

► Comprehensive assessment of risks - Risks to capital are assessed through processes such as Enterprise Risk Management (ERM) - i.e. where is the largest concentration of risk to capital (credit/loans)

► Stress Testing

- On a quarterly basis capital levels are tested for possible erosion - Stress testing programs are used to test the ability of the credit union to absorb losses - i.e. How would rising interest rates effect our capital level

► Monitoring and Reporting - Regular reports are prepared for the directors and CUDGC.

► Internal Control Review - Ongoing internal controls and functions along with scheduled internal audits and CUDGC reviews

CREDIT UNION DEPOSIT GUARANTEE CORPORATION ANNUAL REPORT MESSAGE 2016

January 2017

Deposits Fully Guaranteed Credit Union Deposit Guarantee Corporation (the Corporation) is the primary regulator and deposit guarantor for Saskatchewan credit unions. The Corporation is charged through provincial legislation, The Credit Union Act, 1998, with the main purpose of guaranteeing the full repayment of deposits held in Saskatchewan credit unions. The Corporation has successfully guaranteed the repayment of deposits held in Saskatchewan credit unions for over 60 years. By guaranteeing deposits and promoting responsible governance, the Corporation contributes to confidence in Saskatchewan credit unions. Responding to regulatory changes at the international and national levels continued to be a key focus for the Corporation in 2016. Federally, a shift in policy direction assigned regulation of the credit union centrals to the provinces. This resulted in the government of Saskatchewan creating and passing the Credit Union Central of Saskatchewan Act, 2016 assigning regulatory responsibilities for SaskCentral to the Corporation. In preparation for assuming these responsibilities in 2017, the Corporation developed regulatory policy and supervisory practices. At the provincial level, work was finalized on the development of liquidity standards and guidance that align with current international standards. As part of this development, the Standards of Sound Business Practice and Capital Standards of Sound Business Practice were reviewed and updated. These documents were provided to credit unions well in advance of coming into effect on January 1, 2017. These efforts will ensure that the Corporation is in a position to continue to protect credit union depositors which, in turn, contributes to the strength and stability of the Saskatchewan credit union system. In 2017 the Corporation will continue to monitor the potential implications of the changing regulatory environment in addition to carrying forward its preventive efforts to support credit unions as an effective first level of deposit protection. Maintaining constructive relationships with credit unions and investing in programs that reduce risk to the Deposit Guarantee Fund will continue to be a key priority. For more information about deposit protection, the Corporation’s regulatory responsibilities and its role in promoting the strength and stability of Saskatchewan credit unions, talk to a representative at the credit union or visit the Corporation’s web site at www.cudgc.sk.ca.

New Community Credit UnionFinancial Statements

December 31, 2016

New Community Credit UnionContents

For the year ended December 31, 2016

Page

Management's Responsibility

Auditors' Report

Financial Statements

Statement of Financial Position................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................1

Statement of Comprehensive Income................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................2

Statement of Changes in Members’ Equity................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................3

Statement of Cash Flows................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................4

Notes to the Financial Statements................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................5

Management's Responsibility

To the Members of New Community Credit Union:

Management is responsible for the preparation and presentation of the accompanying financial statements, including responsibility forsignificant accounting judgments and estimates in accordance with International Financial Reporting Standards and ensuring that allinformation in the annual report is consistent with the statements. This responsibility includes selecting appropriate accounting principlesand methods, and making decisions affecting the measurement of transactions in which objective judgment is required.

In discharging its responsibilities for the integrity and fairness of the financial statements, management designs and maintains thenecessary accounting systems and related internal controls to provide reasonable assurance that transactions are authorized, assetsare safeguarded and financial records are properly maintained to provide reliable information for the preparation of financial statements.

The Board of Directors and Audit Committee are composed entirely of Directors who are neither management nor employees of theCredit Union. The Board is responsible for overseeing management in the performance of its financial reporting responsibilities, and forapproving the financial information included in the annual report. The Audit Committee has the responsibility of meeting withmanagement, internal auditors, and external auditors to discuss the internal controls over the financial reporting process, auditingmatters and financial reporting issues. The Audit Committee is also responsible for recommending the appointment of the Credit Union'sexternal auditors.

MNP LLP is appointed by the members to audit the financial statements and report directly to them; their report follows. The externalauditors have full and free access to, and meet periodically and separately with, both the Audit Committee and management to discusstheir audit findings.

March 14, 2017

General Manager

Independent Auditors’ Report

To the Members of New Community Credit Union:

We have audited the accompanying financial statements of New Community Credit Union, which comprise the statement of financialposition as at December 31, 2016, and the statements of comprehensive income, changes in members' equity and cash flows for theyear then ended, and a summary of significant accounting policies and other explanatory information.

Management’s Responsibility for the Financial StatementsManagement is responsible for the preparation and fair presentation of these financial statements in accordance with InternationalFinancial Reporting Standards, and for such internal control as management determines is necessary to enable the preparation offinancial statements that are free from material misstatement, whether due to fraud or error.

Auditors' ResponsibilityOur responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance withCanadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan andperform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. Theprocedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financialstatements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to theentity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in thecircumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit alsoincludes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made bymanagement, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

OpinionIn our opinion, the financial statements present fairly, in all material respects, the financial position of New Community Credit Union as atDecember 31, 2016 and its financial performance and its cash flows for the year then ended in accordance with International FinancialReporting Standards.

Saskatoon, Saskatchewan

March 14, 2017 Chartered Professional Accountants

119 4th Ave South, Suite 800, Saskatoon, Saskatchewan, S7K 5X2, Phone: (306) 665-6766, 1 (877)500-0778

New Community Credit UnionStatement of Financial Position

As at December 31, 2016

2016 2015

AssetsCash and cash equivalents (Note 5) 8,498,958 13,279,556Investments (Note 6) 7,138,500 5,295,526Member loans receivable (Note 7) 73,263,921 65,666,734Other assets (Note 8) 108,498 119,178Property, plant and equipment (Note 9) 96,804 180,284

89,106,681 84,541,278

LiabilitiesMember deposits (Note 11) 82,289,429 78,312,952Other liabilities (Note 13) 251,027 259,095Membership shares (Note 14) 23,189 27,493

82,563,645 78,599,540

Commitment (Note 19)

Members' equityRetained earnings 6,543,036 5,941,738

89,106,681 84,541,278

Approved on behalf of the Board

Director Director

The accompanying notes are an integral part of these financial statements

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New Community Credit UnionStatement of Comprehensive Income


2016 2015

Interest incomeMember loans 2,932,975 2,731,179Investments 171,707 127,038

3,104,682 2,858,217

Interest expenseMember deposits 1,345,006 1,305,493Borrowed money 687 945

1,345,693 1,306,438

Gross financial margin 1,758,989 1,551,779Other income 561,083 583,029

2,320,072 2,134,808

Operating ExpensesPersonnel 826,544 792,738Security 84,614 72,353Organizational 42,442 38,492Occupancy 80,630 104,431General business 460,933 504,408

1,495,163 1,512,422

Income before provision for impaired loans and provision for income taxes 824,909 622,386Provision for impaired loans (Note 7) 92,210 6,032

Income before provision for income taxes 732,699 616,354

Provision for (recovery of) income taxes (Note 12)Current 140,926 122,206Deferred (9,525) (23,934)

131,401 98,272

Comprehensive income 601,298 518,082


2

New Community Credit UnionStatement of Changes in Members’ Equity


Retainedearnings Total equity

Balance December 31, 2014 5,423,656 5,423,656






3

New Community Credit UnionStatement of Cash Flows


2016 2015

Cash provided by (used for) the following activitiesOperating activities

Interest received from member loans 2,870,767 2,660,330Interest received from investments 171,707 133,728Other income 561,083 583,029Cash paid to suppliers and employees (1,391,691) (1,564,163)Interest paid on deposits (1,337,973) (1,232,862)Interest paid on borrowed money (687) (945)Income taxes paid (141,403) (108,444)

731,803 470,673

Financing activitiesNet change in member deposits 3,977,250 8,503,404Net change in membership shares (Note 14) 4,304 (98)

3,981,554 8,503,306

Investing activitiesPurchases of investments (1,842,974) (3,750,000)Net change in member loans receivable (7,650,981) (4,941,433)Purchases of property, plant and equipment (Note 9) - (3,027)

(9,493,955) (8,694,460)

Increase (decrease) in cash and cash equivalents (4,780,598) 279,519Cash and cash equivalents, beginning of year 13,279,556 13,000,037

Cash and cash equivalents, end of year 8,498,958 13,279,556


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New Community Credit UnionNotes to the Financial Statements


1. Reporting entity

New Community Credit Union (the “Credit Union”) was formed pursuant to the Credit Union Act 1998 of Saskatchewan (“theAct”) and operates one Credit Union branch.

The Credit Union serves members and non-members in Saskatoon, Saskatchewan and the surrounding community. Theaddress of the Credit Union’s registered office is 321 - 20th Street West, Saskatoon, Saskatchewan.

The Credit Union operates principally in personal and commercial banking in Saskatoon, Saskatchewan.

The Credit Union conducts its principal operations through one branch, offering products and services including depositbusiness, individual lending, and independent business and commercial lending. The deposit business provides a widerange of deposit and investment products and sundry financial services to all members. The lending business provides avariety of credit products and services designed specifically for each particular group of borrowers. Other businesscomprises business of a corporate nature such as investment, risk management, asset liability management, treasuryoperations and revenue and expenses not expressly attributed to the business units.

Statement of compliance

The financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) andinterpretations adopted by the International Accounting Standards Board (“IASB”).

The financial statements were approved by the Board of Directors and authorized for issue on March 14, 2017.

2. Change in accounting policies

Standards and Interpretations effective in the current period

The Credit Union adopted amendments to the following standards, effective January 1, 2016. Adoption of theseamendments had no effect on the Credit Union's financial statements.

• IFRS 11 Joint arrangements

• IAS 1 Presentation of financial statements

3. Basis of preparation

Basis of measurement

The financial statements have been prepared using the historical basis except for the revaluation of certain financialinstruments.

Functional and presentation currency

These financial statements are presented in Canadian dollars, which is the Credit Union’s functional currency.

Significant accounting judgments, estimates and assumptions

The preparation of the Credit Union’s financial statements requires management to make judgments, estimates andassumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the disclosure of contingentliabilities, at the reporting date. However, uncertainties about these assumptions and estimates could result in outcomesthat would require a material adjustment to the carrying amount of the asset or liability affected in the future.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates arerecognized in comprehensive income in the period in which the estimate is revised if revision affects only that period, or inthe period of the revision and future periods if the revision affects both current and future periods.

Key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date are discussedbelow.

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3. Basis of preparation (Continued from previous page)

Allowance for impaired loans

The Credit Union reviews its individually significant loans at each reporting date to assess whether an impairment lossshould be recognized. In particular, judgment by management is required in the estimation of the amount and timing offuture cash flows when determining the impairment loss.

In estimating these cash flows, the Credit Union makes judgments about the borrower’s financial situation and the netrealizable value of collateral. These estimates are based on assumptions about a number of factors and actual results maydiffer, resulting in future changes to the allowance.

Member loans receivable that have been assessed individually and found not to be impaired and all individually insignificantloans are assessed collectively, in groups of assets with similar risk characteristics, to determine whether provision shouldbe made due to incurred loss events for which there is objective evidence but whose effects are not yet evident. Thecollective provision assessment takes account of data from the loan portfolio such as credit quality, delinquency, historicalperformance and industry economic outlook. The impairment loss on member loans receivable is disclosed in more detail inNote 7.

Key assumptions in determining the allowance for impaired loans collective provision

The Credit Union has determined the likely impairment loss on loans which have not maintained loan repayments inaccordance with the loan contract, or where there is other evidence of potential impairment such as industrial restructuring,job losses or economic circumstances. In identifying the impairment likely from these events the Credit Union estimates thepotential impairment using loan type, industry, geographical location, type of loan security, the length of time the loans arepast due and the historical loss experience. The circumstances may vary for each loan over time, resulting in higher orlower impairment losses. The methodology and assumptions used for estimating future cash flows are reviewed regularly toreduce any differences between loss estimates and actual loss experience.

For purposes of the collective provision, loans are classified into separate groups with similar risk characteristics, based onthe type of product and type of security.

Financial instruments not traded on active markets

For financial instruments not traded in active markets, fair values are determined using valuation techniques such as thediscounted cash flow model that rely on assumptions that are based on observable active markets or rates. Certainassumptions take into consideration liquidity risk, credit risk and volatility.

Impairment of non-financial assets

At each reporting date, the Credit Union assesses whether there are any indicators of impairment for non-financial assets.Non-financial assets that have an indefinite useful life or are not subject to amortization, such as goodwill, are testedannually for impairment or more frequently if impairment indicators exist. Other non-financial assets are tested forimpairment if there are indicators that their carrying amounts may not be recoverable.

Income taxes

The Credit Union periodically assesses its liabilities and contingencies related to income taxes for all years open to auditbased on the latest information available. For matters where it is probable that an adjustment will be made, the Credit Unionrecords its best estimate of the tax liability including the related interest and penalties in the current tax provision.Management believes that they have adequately provided for the probable outcome of these matters; however, the finaloutcome may result in a materially different outcome than the amount included in the tax liabilities.

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3. Basis of preparation (Continued from previous page)

Impairment of available-for-sale financial assets

Management determines when an available-for-sale financial asset is impaired in accordance with IAS 39 FinancialInstruments: Recognition and Measurement. This determination requires significant judgment. Management evaluates theduration and extent to which the fair value of an investment is less than its cost; and the financial health of and short-termbusiness outlook for the investee, including factors such as industry and sector performance, changes in technology andoperational and financing cash flow.

When the fair value declines, management makes assumptions about the decline in value to determine if it is an impairmentto be recognized in net income.

At December 31, 2016, no impairment losses have been recognized for available-for-sale assets (2015 - $nil). The carryingamount of available-for-sale assets is $1,138,500 (2015 - $795,526).

Deferred income taxes

The calculation of deferred income tax is based on assumptions, which are subject to uncertainty as to timing and which taxrates are expected to apply when temporary differences reverse. Deferred income tax recorded is also subject touncertainty regarding the magnitude of non-capital losses available for carry forward and of the balances in various taxpools as the corporate tax returns have not been prepared as of the date of financial statement preparation. By their nature,these estimates are subject to measurement uncertainty, and the effect on the financial statements from changes in suchestimates in future years could be material. Further details are in Note 12.

Useful lives of property, plant and equipment

Estimates must be utilized in evaluating the useful lives of all property, plant and equipment for calculation of thedepreciation for each class of assets. For further discussion of the estimation of useful lives, refer to the heading property,plant and equipment contained in Note 4.

4. Summary of significant accounting policies

The principle accounting policies adopted in the preparation of the financial statements are set out below. The policies havebeen consistently applied to all the years presented, unless otherwise stated.

Regulations to the Act specify that certain items are required to be disclosed in the financial statements which arepresented at annual meetings of members. It is management's opinion that the disclosures in these financial statementsand notes comply, in all material respects, with the requirements of the Act. Where necessary, reasonable estimates andinterpretations have been made in presenting this information.

Foreign currency translation

Transactions denominated in foreign currencies are translated into the functional currency of the Credit Union at exchangerates prevailing at the transaction dates (spot exchange rates). Monetary assets and liabilities are retranslated at theexchange rates at the statement of financial position date. Exchange gains and losses on translation or settlement arerecognized in net income for the current period.

Non-monetary items that are measured at historical cost are translated using the exchange rates at the date of thetransaction and non-monetary items that are measured at fair value are translated using the exchange rates at the datewhen the items’ fair value was determined. Translation gains and losses are included in net income.

Revenue recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Credit Union and therevenue can be reliably measured. The following specific recognition criteria must also be met before revenue isrecognized:

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4. Summary of significant accounting policies (Continued from previous page)

Interest income is recognized in net income for all financial assets measured at amortized cost using the effective interestrate method. The effective interest rate is the rate that discounts estimated future cash flows through the expected life of thefinancial instrument back to the net carrying amount of the financial asset. The application of the method has the effect ofrecognizing revenue of the financial instrument evenly in proportion to the amount outstanding over the period to maturity orrepayment.

Interest penalties received as a result of loan prepayments by members are recognized as income in the year in which theprepayment is made, unless only minor modifications (based on a present value of future cash flows test) were made to theloan in which case they are deferred and amortized using the effective interest method.

Fees related to the origination or renewal of a loan are considered an integral part of the yield earned on a loan and arerecognized using the effective interest method over the estimated repayment term of the related loan.

Investment income is recognized as interest is earned on interest-bearing investments, and when dividends are declared onshares.

Investment security gains and losses are recognized in accordance with the requirements of their classification as outlinedfurther under the Financial Instruments policy note.

Loan syndication fees are recognized on completion of the syndication arrangement. Incremental direct costs for originatingor acquiring a loan are netted against origination fees.

Commission revenue is recognized net of broker commission expense as earned on the effective date of each policy.

Other revenue is recognized as services are provided to members.

Financial instruments

Classification and measurement

All financial instruments are initially recognized at fair value at acquisition. Measurement in subsequent periods depends onwhether the financial instrument has been classified as fair value through profit or loss, available-for-sale, held-to-maturity,loans and receivables, or other financial liabilities as described below. Transactions to purchase or sell these items arerecorded on the settlement date. During the year, there has been no reclassification of financial instruments.

Financial instruments classified as fair value through profit or loss are measured at fair value with unrealized gains andlosses recognized through profit or loss. The Credit Union's financial instruments classified as fair value through profit orloss include cash and cash equivalents.

Available-for-sale financial assets are measured at fair value with unrealized gains and losses recognized in othercomprehensive income. Certain equity instruments which do not trade in an open market and whose fair value cannot bereliably measured are recorded at cost. The Credit Union’s financial instruments classified as available-for-sale includeshares in SaskCentral and Concentra Financial.

Financial assets classified as held-to-maturity are subsequently measured at amortized cost using the effective interest ratemethod. The Credit Union's financial instruments classified as held-to-maturity include SaskCentral and Concentra Financialterm deposits.

Financial assets classified as loans and receivables are subsequently measured at amortized cost. The Credit Union'sfinancial instruments classified as loans and receivables include all member loans receivable and accrued interest thereon,and other receivable balances.

Financial instruments classified as other financial liabilities include all member deposits and accrued interest thereon,accounts payable, and membership shares. Other financial liabilities are subsequently carried at amortized cost.

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Derecognition of financial assets

Derecognition of a financial asset occurs when:

• The Credit Union does not have rights to receive cash flows from the asset;

• The Credit Union has transferred its rights to receive cash flows from the asset or has assumed an obligation to

pay the received cash flows in full without material delay to a third party under a “pass-through" arrangement; and

either:

• The Credit Union has transferred substantially all the risks and rewards of the asset, or

• The Credit Union has neither transferred nor retained substantially all the risks and rewards of the asset,

but has transferred control of the asset.

When the Credit Union has transferred its rights to receive cash flows from an asset or has entered into a pass-througharrangement, and has neither transferred or retained substantially all of the risks and rewards of the asset nor transferredcontrol of the asset, the asset is recognized to the extent of the Credit Union’s continuing involvement in the asset. In thatcase, the Credit Union also recognizes an associated liability. The transferred asset and the associated liability aremeasured on a basis that reflects the rights and obligations that the Credit Union has retained.

A financial liability is derecognized when the obligation under the liability is discharged, cancelled or expires. Where anexisting financial liability is replaced by another from the same lender on substantially different terms, or the terms of theexisting liability are substantially modified, such an exchange or modification is treated as a derecognition of the originalliability and the recognition of a new liability, and the difference in the respective carrying amount is recognized in netincome.

The Credit Union designates certain financial assets upon initial recognition as at fair value through profit or loss (fair valueoption). Financial instruments in this category are embedded derivatives.

Derivative financial instruments

Derivative instruments are recorded at fair value, including those derivatives that are embedded in financial or non financialcontracts that are not closely related to the host contracts. Changes in the fair values of derivative instruments are recordedin net income.

Fair value measurements

The Credit Union classifies fair value measurements recognized in the statement of financial position using a three-tier fairvalue hierarchy, which prioritizes the inputs used in measuring fair value as follows:

• Level 1: Quoted prices (unadjusted) are available in active markets for identical assets or liabilities;

• Level 2: Inputs other than quoted prices in active markets that are observable for the asset or liability, either

directly or indirectly; and

• Level 3: Unobservable inputs in which there is little or no market data, which require the Credit Union to develop its

own assumptions.

Fair value measurements are classified in the fair value hierarchy based on the lowest level input that is significant to thatfair value measurement. This assessment requires judgment, considering factors specific to an asset or a liability and mayaffect placement within the fair value hierarchy.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand, demand deposits and short-term highly liquid investments with originalmaturities of three months or less that are readily convertible into known amounts of cash and which are subject to aninsignificant risk of change in value. Cash and cash equivalents are shown net of bank overdrafts that are repayable ondemand and form an integral part of the Credit Union’s cash management system. Cash subject to restrictions that preventits use for current purposes is included in restricted cash.

9




Investments

Each investment is classified into one of the categories described under financial instruments. The classification dictatesthe accounting treatment for the carrying value and changes in that value.

SaskCentral and Concentra Financial deposits and shares

SaskCentral and Concentra Financial deposits are accounted for as held-to-maturity, adjusted to recognize other than atemporary impairment in the underlying value, or as available-for-sale, based on management’s intent. Shares areaccounted for as available-for-sale at cost, as no market exists for these investments.

Member loans receivable

Loans are initially recognized at their fair value and subsequently measured at amortized cost. Amortized cost is calculatedas the loans’ principal amount, less any allowance for anticipated losses, plus accrued interest. Interest revenue is recordedon the accrual basis using the effective interest method. Loan administration fees are amortized over the term of the loanusing the effective interest method. The effective interest rate is the rate that exactly discounts the estimated future cashreceipts through the expected life of the financial asset to the carrying amount of the financial asset.

Allowance for loan impairment

Allowance for loan impairment represents specific and collective provisions established as a result of reviews of individualloans and groups of loans. In particular, judgment by management is required in the estimation of the amount and timing offuture cash flows when determining the impairment loss. In estimating these cash flows, the Credit Union makes judgmentsabout the credit worthiness of the borrower’s financial situation and the net realizable value of collateral. These estimatesare based on assumptions about a number of factors and actual results may differ, resulting in future changes to theallowance.

Member loans receivable that have been assessed individually and found not to be impaired are then assessed collectively,in groups of assets with similar risk characteristics, to determine whether provision should be made due to incurred lossevents for which there is objective evidence but whose effects are not yet evident. The collective provision takes account ofdata from the loan portfolio and based on analysis of historical data, such as credit quality, levels of arrears, historicalperformance and economic outlook.

Individual allowances are established by reviewing the credit worthiness of individual borrowers and the value of thecollateral underlying the loan. Collective allowances are established by reviewing specific arrears and current economicconditions.

Restructured loans are not considered impaired where reasonable assurance exists that the borrower will meet the terms ofthe modified debt agreement. Restructured loans are defined as loans greater than 90 days delinquent that have beenrestructured outside the Credit Union’s normal lending practices as it relates to extensions, amendments andconsolidations.

Loans are classified as impaired, and a provision for loss is established, when there is no longer reasonable assurance ofthe timely collection of the full amount of principal or interest. It is the Credit Union’s policy that whenever a payment is 90days past due, loans are classified as impaired unless they are fully secured or collection efforts are reasonably expected toresult in repayment of the debt.

In such cases, a specific provision is established to write down the loan to the estimated future net cash flows from the loandiscounted at the loans’ original effective interest rate. In cases where it is impractical to estimate the future cash flows, thecarrying amount of the loan is reduced to its fair value calculated based on an observable market price. Any previouslyaccrued but unpaid interest on the loan is charged to the allowance for loan impairment. Interest income after theimpairment is recognized using the rate of interest used to discount the future cash flows for the purpose of measuring theimpairment loss.

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Impairment of financial assets

For financial assets carried at amortized cost, the Credit Union first assesses individually whether objective evidence ofimpairment exists for financial assets that are significant, or collectively for financial assets that are not individuallysignificant. If the Credit Union determines that no objective evidence of impairment exists for an individually assessedfinancial asset, it includes the financial asset in a group of financial assets with similar credit risk characteristics andcollectively assesses them for impairment. Financial assets that are individually assessed for impairment and for which animpairment loss is, or continues to be, recognized are not included in a collective assessment for impairment.

If there is objective evidence that an impairment loss has occurred, the amount of the loss is measured as the differencebetween the asset’s carrying amount and the present value of estimated future cash flows. The carrying amount of thefinancial asset is reduced through the use of the provision for impaired financial assets and the amount of the impairmentloss is recognized in net income.

The present value of the estimated future cash flows is discounted at the financial assets' original effective interest rate. Thecalculation of the present value of estimated future cash flows reflects the projected cash flows including provisions forimpaired financial assets, prepayment losses, and costs to securitize and service financial assets.

If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to anevent occurring after the impairment was recognized, the previously recognized impairment loss is reversed. Anysubsequent reversal of an impairment loss is recognized in net income.

Impairment of non-financial assets

At the end of each reporting period, the Credit Union reviews the carrying amounts of its tangible assets to determinewhether there is any indication that those assets have suffered an impairment loss. If any such indication exists, therecoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is notpossible to estimate the recoverable amount of an individual asset, the Credit Union estimates the recoverable amount ofthe cash-generating units (“CGU”) to which the asset belongs. Where a reasonable and consistent basis of allocation canbe identified, corporate assets are also allocated to individual CGU’s, or otherwise they are allocated to the smallest groupof CGU’s for which a reasonable and consistent allocation basis can be identified.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimatedfuture cash flows are discounted to their present value using a pre-tax discount rate that reflects current marketassessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows havenot been adjusted.

If the recoverable amount of an asset or CGU is estimated to be less than its carrying amount, the carrying amount of theasset or CGU is reduced to its recoverable amount. An impairment loss is recognized immediately in net income.

Where an impairment loss subsequently reverses, the carrying amount of the asset or CGU is increased to the revisedestimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount thatwould have been determined had no impairment loss been recognized for the asset or CGU in prior years. A reversal of animpairment loss is recognized immediately in net income.

Syndication

The Credit Union syndicates individual assets with various other financial institutions primarily to manage credit risk, createliquidity and manage regulatory capital for the Credit Union. Syndicated loans transfer substantially all the risks and rewardsrelated to the transferred financial assets and are derecognized from the Credit Union’s statement of financial position. Allloans syndicated by the Credit Union are on a fully serviced basis. The Credit Union receives fee income for servicesprovided in the servicing of the transferred financial assets.

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Foreclosed assets

Foreclosed assets held for sale are initially recorded at the lower of cost and estimated fair value less costs to sell. Costcomprises the balance of the loan at the date on which the Credit Union obtains title to the asset plus subsequentdisbursements related to the asset, less any revenues or lease payments received. Foreclosed assets held for sale aresubsequently valued at the lower of their carrying amount and fair value less cost to sell. Foreclosed assets (if any) arerecorded in member loans receivable.

Property, plant and equipment

Property, plant and equipment are stated at cost less accumulated depreciation and impairment losses. Cost includesexpenditures that are directly attributable to the acquisition of the asset. When parts of an item of property, plant andequipment have different useful lives, they are accounted for as separate items of property, plant and equipment.

All assets having limited useful lives are depreciated using the straight-line method over their estimated useful lives. Landhas an unlimited useful life and is therefore not depreciated. Assets are depreciated from the date of acquisition. Internallyconstructed assets are depreciated from the time an asset is available for use.

The depreciation rates applicable for each class of asset during the current and comparative period are as follows:

RateBuildings 10-20 yearsCapital improvements 10-20 yearsComputer equipment 2-8 yearsFurniture and equipment 2-5 yearsParking lot 50 years

The residual value, useful life and depreciation method applied to each class of assets are reassessed at each reportingdate.

Gains or losses on the disposal of property, plant and equipment are determined as the difference between the net disposalproceeds and the carrying amount of the asset, and recognized in net income as other operating income or other operatingcosts, respectively.

Income taxes

The Credit Union accounts for income taxes using the asset and liability method. Current and deferred tax are recognized innet income except to the extent that the tax is recognized either in other comprehensive income or directly in equity, or thetax arises from a business combination. Under this method, the provision for income taxes is based on the tax rates and taxlaws that have been enacted or substantively enacted by the end of the reporting period.

Current tax assets and liabilities for the current and prior periods are measured at the amount expected to be recoveredfrom or paid to the taxation authorities.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the assets arerealized or the liabilities are settled.

Deferred tax assets and liabilities are recognized where the carrying amount of an asset or liability differs from its tax base,except for taxable temporary differences arising on the initial recognition of goodwill and temporary differences arising onthe initial recognition of an asset or liability in a transaction which is not a business combination and at the time of thetransaction affects neither accounting or taxable income.

Recognition of deferred tax assets for unused tax losses, tax credits and deductible temporary differences is restricted tothose instances where it is probable that future taxable profit will be available which allow the deferred tax asset to beutilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probablethat the related tax benefit will be realized.

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Leases

A lease that transfers substantially all of the benefits and risks of ownership is classified as a finance lease. At the inceptionof a finance lease, an asset and a payment obligation are recorded at an amount equal to the lesser of the present value ofthe minimum lease payments and the asset’s fair market value at inception of the lease. Assets under finance leases areamortized on a straight-line basis, over their estimated useful lives. All other leases are accounted for as operating leasesand rental payments are expensed as incurred.

Employee benefits

The Credit Union’s post employment benefit programs consist of a defined contribution plan.

Credit Union contributions to the defined contribution plan are expensed as incurred. Pension benefits of $48,254 (2015 –$34,495) were paid to the defined contribution retirement plan during the year.

Accounts payable

Accounts payable are initially recorded at fair value and are subsequently carried at amortized cost, which approximates fairvalue due to the short term nature of these liabilities.

Member deposits

Member deposits are initially recognized at fair value, net of transaction costs directly attributable to the issuance of theinstrument, and are subsequently measured at amortized cost using the effective interest rate method.

Membership shares

Shares are classified as liabilities or member equity in accordance with their terms. Shares redeemable at the option of themember, either on demand or on withdrawal from membership, are classified as liabilities. Shares redeemable at thediscretion of the Credit Union Board of Directors are classified as equity. Shares redeemable subject to regulatoryrestrictions are accounted for using the criteria set out in IFRIC 2 Members' Shares in Cooperative Entities and SimilarInstruments.

Standards issued but not yet effective

The Credit Union has not yet applied the following new standards, interpretations and amendments to standards that havebeen issued as at December 31, 2016 but are not yet effective. Unless otherwise stated, the Credit Union does not plan toearly adopt any of these new or amended standards and interpretations.

IFRS 9 Financial instruments

The final version of IFRS 9 (2014) was issued in July 2014 as a complete standard including the requirements forclassification and measurement of financial instruments, the new expected loss impairment model and the new hedgeaccounting model. IFRS 9 (2014) will replace IAS 39 Financial instruments: recognition and measurement. IFRS 9 (2014) iseffective for reporting periods beginning on or after January 1, 2018. The Credit Union is currently assessing the impact ofthe standard on its financial statements.

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IFRS 15 Revenue from contracts with customers

IFRS 15, issued in May 2014, will specify how and when entities recognize, measure, and disclose revenue. The standardwill supersede all current standards dealing with revenue recognition, including IAS 11 Construction contracts, IAS 18Revenue, IFRIC 13 Customer loyalty programmes, IFRIC 15 Agreements for the construction of real estate, IFRIC 18Transfers of assets from customers, and SIC 31 Revenue – barter transactions involving advertising services.

Amendments to IFRS 15, issued in April 2016, clarify some requirements and provide additional transition relief for when anentity first applies IFRS 15.

IFRS 15 and the amendments, are effective for annual periods beginning on or after January 1, 2018. The Credit Union hasnot yet determined the impact of this standard on its financial statements.

IFRS 16 Leases

IFRS 16, issued in January 2016, introduces a single lessee accounting model that requires a lessee to recognize assetsand liabilities for all leases with a term of more than 12 months, unless the underlying asset is of low value. The standardwill supersede IAS 17 Leases, IFRIC 4 Determining Whether an Arrangement Contains a Lease, SIC-15 Operating Leases -Incentives and SIC-27 Evaluating the Substance of Transactions Involving the Legal Form of a Lease.

IFRS 16 is effective for annual periods beginning on or after January 1, 2019. The Credit Union has not yet determined theimpact of this standard on its financial statements.

IAS 7 Statement of Cash Flows

Amendments to IAS 7, issued in January 2016, require entities to provide disclosures that enable users of the financialstatements to evaluate both cash flow and non-cash changes in liabilities arising from financing activities.

The amendments only affect financial disclosure and are effective for annual periods beginning on or after January 1, 2017.

IAS 12 Income Taxes

Amendments to IAS 12, issued in January 2016, provide clarification on how to account for deferred tax assets related todebt instruments measured at fair value.

IAS 12 is effective for annual periods beginning on or after January 1, 2017. The Credit Union has not yet determined theimpact of this standard on its financial statements.

5. Cash and cash equivalents

2016 2015Cash 233,690 1,650,085Cash equivalents 8,265,268 11,629,471

8,498,958 13,279,556

Total cash balance includes $212,454 (2015 - $146,089) denominated in foreign currencies.

6. Investments

2016 2015

Available-for-saleSaskCentral and Concentra Financial shares 1,138,500 795,526

Held-to-maturitySaskCentral and Concentra Financial terms 6,000,000 4,500,000

7,138,500 5,295,526

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6. Investments (Continued from previous page)

Pursuant to Regulations, SaskCentral requires that the Credit Union maintain 10% of its total liabilities in specified liquiditydeposits. The provincial regulator for Credit Unions, Credit Union Deposit Guarantee Corporation ("CUDGC"), requires thatthe Credit Union adhere to these prescribed limits and restrictions. As of December 31, 2016 the Credit Union met therequirement.

The table below shows the credit risk exposure on investments, excluding liquidity reserves and balances on deposit withSaskCentral and Concentra Financial. Ratings are as provided by Dominion Bond Rating Services ("DBRS") unlessotherwise indicated.

2016 2015

Investment portfolio ratingUnrated 1,138,500 795,526

SaskCentral and Concentra Financial shares are included in the unrated category above.

7. Member loans receivable

Principal and allowance by loan type:

2016

Principalperforming

Principalimpaired

Allowancespecific

Net carryingvalue

Agriculture loans 145,503 - - 145,503Commercial loans 5,347,346 - - 5,347,346Consumer loans 9,748,296 561,067 18,714 10,290,649Lines of credit 2,669,478 - - 2,669,478Mortgages 54,493,661 - - 54,493,661

72,404,284 561,067 18,714 72,946,637

Accrued interest 280,018 38,552 1,286 317,284

Total 72,684,302 599,619 20,000 73,263,921

2015

Principalperforming

Principalimpaired

Allowancespecific

Net carryingvalue

Agriculture loans 43,725 - - 43,725Commercial loans 4,669,508 - - 4,669,508Consumer loans 8,790,235 - - 8,790,235Lines of credit 2,501,131 - - 2,501,131Mortgages 49,308,203 - - 49,308,203

65,312,802 - - 65,312,802

Foreclosed assets 97,570 - - 97,570Accrued interest 256,362 - - 256,362

Total 65,666,734 - - 65,666,734

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7. Member loans receivable (Continued from previous page)

The allowance for loan impairment changed as follows:

2016 2015

Balance, beginning of year - -Provision for impaired loans 92,210 6,032

92,210 6,032Less: accounts written off, net of recoveries 72,210 6,032

Balance, end of year 20,000 -

A loan is considered past due when a counterparty has not made a payment by the contractual due date. The table thatfollows presents the carrying value of loans at year-end that are past due but not classified as impaired because they areeither i) less than 90 days past due, or ii) fully secured and collection efforts are reasonably expected to result in repayment.

December 31, 2016 1-30 days 31-60 days 61-90 days 91 days andgreater

Total

Personal 2,341,987 564,288 17,883 175,526 3,099,684Commercial - - 305,900 431,000 736,900

Total 2,341,987 564,288 323,783 606,526 3,836,584

December 31, 2015 1-30 days 31-60 days 61-90 days 91 days andgreater

Total

Personal 1,554,840 12,441 17,983 613,910 2,199,174Commercial - - 305,900 - 305,900

Total 1,554,840 12,441 323,883 613,910 2,505,074

The principal collateral and other credit enhancements the Credit Union holds as security for loans include (i) insurance,mortgages over residential lots and properties, (ii) recourse to business assets such as real estate, equipment, inventoryand accounts receivable, (iii) recourse to commercial real estate properties being financed, and (iv) recourse to liquidassets, guarantees and securities. Valuations of collateral are updated periodically depending on the nature of thecollateral. The Credit Union has policies in place to monitor the existence of undesirable concentration in the collateralsupporting its credit exposure. In management's estimation, the fair value of the collateral is sufficient to offset the risk ofloss on the loans past due but not impaired.

8. Other assets

2016 2015

Accounts receivable - 7,417Deferred tax asset 58,594 49,069Prepaid expenses and deposits 49,904 62,692

108,498 119,178

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9. Property, plant and equipment

Land BuildingsComputer

equipment

Furnitureand

equipment

Capitalimprove-

mentsParking

lot Total

Cost

Balance at December 31, 2014 35,500 291,030 401,928 74,436 475,497 3,165 1,281,556

Additions - - 3,027 - - - 3,027

Disposals - - - (17,582) - - (17,582)



Accumulated depreciation

Balance at December 31, 2014 - 291,030 201,618 72,767 403,328 3,165 971,908

Depreciation - - 83,908 983 47,500 - 132,391

Disposals - - - (17,582) - - (17,582)

Balance at December 31, 2015 - 291,030 285,526 56,168 450,828 3,165 1,086,717

Depreciation - - 58,604 589 24,287 - 83,480

Balance at December 31, 2016 - 291,030 344,130 56,757 475,115 3,165 1,170,197

Net book value

At December 31, 2015 35,500 - 119,429 686 24,669 - 180,284

At December 31, 2016 35,500 - 60,825 97 382 - 96,804

10. Line of Credit

The Credit Union has an authorized line of credit due on demand, with no fixed repayment date, bearing interest at primeminus 0.5%, in the amount of $1,700,000 (2015 - $1,300,000) from SaskCentral. At December 31, 2016, the Credit Unionhad utilized $235,660 of this line of credit (2015 - $nil).

Borrowings are secured by an assignment of book debts, financial services agreement, and an operating accountagreement.

11. Member deposits

2016 2015

Chequing, savings, plan 24 26,863,569 25,113,939Registered savings plans 9,891,540 8,680,751Term deposits 44,974,086 43,957,256Accrued interest 560,234 561,006

82,289,429 78,312,952

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11. Member deposits (Continued from previous page)

Total deposits include $220,599 (2015 - $180,225) denominated in foreign currencies.

Member deposits are subject to the following terms:

Chequing, savings and plan 24 products are due on demand and bear interest at rates up to 1.60% (2015 - 1.05%).

Registered savings plans are subject to fixed and variable rates of interest up to 4.00% (2015 - 6.00%), with interestpayments due monthly, annually or on maturity.

Term deposits are subject to fixed and variable rates of interest up to 3.00% (2015 - 3.50%), with interest payments duemonthly, annually or on maturity.

12. Income tax

Income tax expense recognized in comprehensive income

The applicable tax rate is the aggregate of the federal income tax rate of 14.10% (2015 - 13.40%) and the provincial tax rateof 2% (2015 - 2%).

Deferred income tax recovery recognized in comprehensive income

The deferred income tax recovery recognized in comprehensive income for the current year is a result of the followingchanges:

2016 2015Deferred tax assetProperty, plant and equipment 58,254 49,069Allowance for impaired loans 340 -

58,594 49,069

Net deferred tax asset is reflected in the statement of financial position asfollows:Deferred tax asset 58,594 49,069

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12. Income tax (Continued from previous page)

Reconciliation between average effective tax rate and the applicable tax rate2016 2015

Applicable tax rate %27.00 %27.00Reduction for Credit Unions %(10.90) %(11.60)Non-deductible and other items %1.83 %0.54

Average effective tax rate (tax expense divided by profit before tax) %17.93 %15.94

In October 2013, the government enacted a change in the federal tax rate from 11% to 15%. This increase in tax rateimpacts the Credit Union with a phase in over the five year period from 2013 to 2018. Further, in January 2016, thegovernment enacted a reduction to the small business tax rate from 11% to 10.5% that was introduced in the April 2015budget. Federally, the result is 80% of the Credit Union’s taxable income will be taxed at a rate of 15%, with the remainingincome now being taxed at a rate of 10.5% for 2016. By 2017 100% of the Credit Union's taxable income will be taxed at arate of 15%. No changes in provincial tax rates were substantially enacted in 2016.

13. Other liabilities

2016 2015

Accounts payable 227,398 234,989Corporate income tax payable 23,629 24,106

251,027 259,095

14. Membership shares

Authorized:

Unlimited number of Common shares, at an issue price of $5Unlimited number of Surplus shares, at an issue price of $1

Issued:2016 2015

4,554 Common shares (2015 - 4,584) 22,770 22,920419 Surplus shares (2015 - 4,573) 419 4,573

23,189 27,493

All common shares are classified as liabilities.

When an individual becomes a member of the Credit Union, they are issued two common shares at $5 per share. Eachmember of the Credit Union has one vote, regardless of the number of common shares held.

Surplus shares are established as a means of returning excess earnings to the members and at the same time increasingthe Credit Union's equity base. The Articles of Incorporation for the Credit Union disclose the conditions concerning surplusshares.

During the year, the Credit Union issued 244 (2015 - 480) and redeemed 274 (2015 - 340) common shares, and alsoredeemed 4,154 (2015 - 602) surplus shares.

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15. Related party transactions

Key management compensation of the Credit Union

Key management personnel ("KMP") of the Credit Union are the General Manager, Office Supervisor, Manager, RetailServices and members of the Board of Directors.

KMP remuneration includes the following expenses:2016 2015

Salaries and short-term benefits 283,539 287,469

Transactions with key management personnel

The Credit Union, in accordance with its policy, grants credit to its directors, management and staff. The management andstaff rates are slightly below member rates. Directors pay regular member rates on loans.

Loans made to KMP are approved under the same lending criteria applicable to members, and are included in memberloans receivable on the statement of financial position. There are no loans to KMP that are impaired.

Directors, management and staff of the Credit Union hold deposit accounts. These accounts are maintained under thesame terms and conditions as accounts of other members, and are included in deposit accounts on the statement offinancial position.

There are no benefits or concessional terms and conditions applicable to the family members of KMP.

These loans and deposits were made in the normal course of operations and are measured at the exchange amount, whichis the consideration established and agreed to by the related parties.

2016 2015

Aggregate loans to KMP 1,512,908 661,425Aggregate revolving credit facilities to KMP 70,775 368,427Less: approved and undrawn lines of credit (32,822) (193,655)

1,550,861 836,197

2016 2015During the year the aggregate value of loans disbursed to KMP amounted to:

Loans 581,483 70,603

2016 2015Income and expense transactions with KMP consisted of:

Interest earned on loans and revolving credit facilities to KMP 57,284 58,652Interest paid on deposits to KMP 1,846 5,043

2016 2015The total value of member deposits from KMP as at the year-end:

Chequing and demand deposits 281,398 319,519Term deposits 462,762 -Registered plans 154,966 67,251

Total value of member deposits due to KMP 899,126 386,770

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15. Related party transactions (Continued from previous page)

Directors’ fees and expenses2016 2015

Directors' fees and committee remuneration 10,625 9,725Directors' expenses - 152

SaskCentral and Concentra Financial

The Credit Union is a member of SaskCentral, which acts as a depository for surplus funds received from and loans madeto credit unions. SaskCentral also provides other services for a fee to the Credit Union and acts in an advisory capacity.

The Credit Union is related to Concentra Financial, which is owned in part by SaskCentral. Concentra Financial providesfinancial intermediation and trust services to Canadian credit unions and associated commercial and retail customers.

Interest earned on investments during the year ended December 31, 2016 amounted to $171,107 (2015 - $127,038).

Interest paid on borrowings during the year ended December 31, 2016 amounted to $687 (2015 - $945).

Payments made for affiliation dues for the year ended December 31, 2016 amounted to $23,572 (2015 - $24,801).

16. Capital management

A capital management framework is included in policies and procedures established by the Board of Directors. The CreditUnion’s objectives when managing capital are to:

• Adhere to regulatory capital requirements as minimum benchmarks;

• Co-ordinate strategic risk management and capital management;

• Develop financial performance targets/budgets/goals;

• Administer a patronage program that is consistent with capital requirements;

• Administer an employee incentive program that is consistent with capital requirements; and

• Develop a growth strategy that is co-ordinated with capital management requirements.

CUDGC prescribes capital adequacy measures and minimum capital requirements. The capital adequacy rules issued byCUDGC have been based on the Basel III framework, consistent with the financial industry in general.

The Credit Union follows a risk-weighted asset calculation for credit and operational risk. Under this approach, credit unionsare required to measure capital adequacy in accordance with instructions for determining risk-adjusted capital and risk-weighted assets, including off-balance sheet commitments. Based on the prescribed risk of each type of asset, a weightingof 0% to 1,250% is assigned. The ratio of regulatory capital to risk-weighted assets is calculated and compared to thestandard outlined by CUDGC. Regulatory standards require credit unions to maintain a minimum total eligible capital to risk-weighted assets of 8%, a minimum tier 1 capital to risk-weighted assets of 6% and a minimum common equity tier 1 capitalto risk-weighted assets of 4.5%. In addition to the minimum capital ratios, the Credit Union is required to hold a capitalconservation buffer of 2.5%. The capital conservation buffer is designed to avoid breaches of the minimum capitalrequirement. Eligible capital consists of total tier 1 and tier 2 capital.

Tier 1 capital is defined as a credit union’s primary capital and comprises the highest quality of capital elements while tier 2is secondary capital and falls short of meeting tier 1 requirements for permanence or freedom from mandatory charges. Tier1 capital consists of two components: common equity tier 1 capital and additional tier 1 capital. Common equity tier 1capital includes retained earnings, contributed surplus and accumulated other comprehensive income ("AOCI").Deductions from common equity tier 1 capital include goodwill, intangible assets, deferred tax assets (except those arisingfrom temporary differences), increases in equity capital resulting from securitization transactions, unconsolidated substantialinvestments and fair value gains/losses on own-use property. Additional tier 1 capital consists of qualifying membershipshares and other investment shares issued by the Credit Union that meet the criteria for inclusion in additional tier 1 capital.

Tier 2 capital includes a collective allowance for credit losses to a maximum of 1.25% of risk-weighted assets, subordinatedindebtedness, and qualifying membership shares or other investment shares issued by the Credit Union that meet thecriteria for inclusion in tier 2 capital and are not included in tier 1 capital.

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16. Capital management (Continued from previous page)

Regulatory standards also require the Credit Union to maintain a minimum leverage ratio of 5%. This ratio is calculated bydividing eligible capital by total assets less deductions from capital plus specified off-balance sheet exposures. Based onthe type of off-balance sheet exposure, a conversion factor is applied to the leverage ratio.

The following table compares CUDGC regulatory standards to the Credit Union’s board policy for 2016:

Regulatorystandards

Boardstandards

Total eligible capital to risk-weighted assets %10.50 %11.00Tier 1 capital to risk-weighted assets %8.50 %9.00Common equity tier 1 capital to risk-weighted assets %7.00 %7.50Leverage ratio %5.00 %6.00

The Credit Union's target for common equity tier 1, total tier 1 equity, total eligible capital and leverage ratio for 2016 are11.50% - 16%, 11.50% - 16%, 11.50% - 16% and 7.5%, respectively.

During the year, the Credit Union complied with all internal and external capital requirements.

The following table summarizes key capital information:

2016 2015Eligible capitalTotal tier 1 capital 6,492,864 5,840,196Total tier 2 capital 23,189 27,493

Total eligible capital 6,516,053 5,867,689

Risk-weighted assetsTotal eligible capital to risk-weighted assets %13.15 %14.31Total tier 1 capital to risk-weighted assets %13.11 %14.25Common equity tier 1 capital to risk-weighted assets %13.11 %14.25Leverage ratio %7.20 %6.82

17. Financial instruments

The Credit Union as part of its operations carries a number of financial instruments. It is management's opinion that theCredit Union is not exposed to significant interest, currency or credit risks arising from these financial instruments except asotherwise disclosed.

Risk management policy

The Credit Union carries a number of financial instruments which result in exposure to the following risks: credit risk, marketrisk, and liquidity risk.

The Credit Union, as part of operations, has established avoidance of undue concentrations of risk, hedging of riskexposures, and requirements for collateral to mitigate credit risk as risk management objectives. In seeking to meet theseobjectives, the Credit Union follows risk management policies approved by its Board of Directors.

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17. Financial instruments (Continued from previous page)

The Credit Union's risk management policies and procedures include the following:

• Ensure all activities are consistent with the mission, vision and values of the Credit Union;

• Balance risk and return;

• Manage credit, market and liquidity risk through preventative and detective controls;

• Ensure credit quality is maintained;

• Ensure credit, market, and liquidity risk is maintained at acceptable levels;

• Diversify risk in transactions, member relationships and loan portfolios;

• Price according to risk taken; and

• Use consistent credit risk exposure tools.

Various Board of Directors committees are involved in risk management oversight, including the Audit Committee and LoanCommittee.

There have been no significant changes from the previous year in the exposure to risk, policies, procedures or methodsused to measure risk.

Credit risk

Credit risk is the risk of loss resulting from the failure of a borrower or counterparty to honour its financial or contractualobligations to the Credit Union. Credit risk primarily arises from member loans receivable. Management and the Board ofDirectors review and update the credit risk policy annually. The Credit Union's maximum credit risk exposure before takinginto account any collateral held is the carrying amount of loans as disclosed on the statement of financial position withadditional detail reported in Note 7. For investment securities and derivative instruments, the Credit Union is exposed to therisk of default by the counterparty for instruments reported in Note 6.

Concentration of credit risk exists if a number of borrowers are engaged in similar economic activities or are located in thesame geographical region, and indicate the relative sensitivity of the Credit Union's performance to developments affectinga particular segment of borrowers or geographical region. Geographical risk exists for the Credit Union due to its primaryservice area being Saskatoon, Saskatchewan and surrounding area.

Credit risk management for loan portfolio

The Credit Union employs a risk management process for its loan portfolio which is designed to assess and quantify thelevel of risk inherent in credit granting activities. Risk is measured by reviewing qualitative and quantitative factors thatimpact the loan portfolio and starts at the time of a member credit application and continues until the loan is fully repaid.

Management of credit risk is established in policies and procedures by the Board of Directors.

The primary credit risk management policies and procedures include the following:

• Loan security (collateral) requirements;

• Security valuation processes, including method used to determine the value of real property and personal

property when that property is subject to a mortgage or other charge; and

• Maximum loan to value ratios where a mortgage or other charge on real or personal property is taken as

security.

• Borrowing member capacity (repayment ability) requirements;

• Borrowing member character requirements;

• Limits on aggregate credit exposure per individual and/or related parties;

• Limits on concentration to credit risk by loan type, industry and economic sector;

• Limits on types of credit facilities and services offered;

• Internal loan approval processes and loan documentation standards;

• Loan re-negotiation, extension and renewal processes;

• Processes that identify adverse situations and trends, including risks associated with economic, geographic and

industry sectors;

• Control and monitoring processes including portfolio risk identification and delinquency tolerances;

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• Timely loan analysis processes to identify, assess and manage delinquent and impaired loans;

• Collection processes that include action plans for deteriorating loans;

• Overdraft control and administration processes; and

• Loan syndication processes.

Credit risk management for investments and derivative instruments

Management of risk in relation to investments and derivatives is performed as per Board approved policies which set outeligible investment securities and limits on exposure to single entities, issuer groups and maximum terms of investment.Eligible derivatives are defined in policy which includes limits on approval for purchase and disposal of investments andderivatives. Credit risk within these portfolios is monitored and measured by reviewing exposure to individual counterpartiesand ensuring the Credit Union remains within policy limits by issuer weightings and by dollar amount. The quality of thecounterparty is assessed through published credit ratings which is outlined in Note 6.

Credit commitments

To meet the needs of its members and manage its own exposure to fluctuations in interest rates, the Credit Unionparticipates in various commitments and contingent liability contracts. The primary purpose of these contracts is to makefunds available for the financing needs of members. These are subject to normal credit standards, financial controls, riskmanagement and monitoring procedures. The contractual amounts of these credit instruments represent the maximumcredit risk exposure without taking into account the fair value of any collateral, in the event other parties fail to perform theirobligations under these instruments.

The Credit Union makes the following instruments available to its members:

(a) guarantees and standby letters of credit representing irrevocable assurances that the Credit Union will pay if amember cannot meet their obligations to a third party; and

(b) commitments to extend credit representing unused portions of authorizations to extend credit in the form of loans,(including lines of credit and credit cards), guarantees or letters of credit.

The amounts shown on the table below do not necessarily represent future cash requirements since many commitments willexpire or terminate without being funded.

As at year-end, the Credit Union had the following outstanding financial instruments subject to credit risk:

2016 2015

Unadvanced lines of credit 2,969,809 2,367,414Commitments to extend credit 1,396,000 1,536,811

4,365,809 3,904,225

Market risk

Market risk is the risk of loss in value of financial instruments that may arise from changes in market factors such as interestrates, equity prices and credit spreads. The Credit Union's exposure changes depending on market conditions. Market risksthat have a significant impact on the Credit Union include fair value risk and interest rate risk.

Market risk arises from changes in interest rates that affect the Credit Union's net interest income. Exposure to this riskdirectly impacts the Credit Union's income from its loan and deposit portfolios. The Credit Union's objective is to earn anacceptable net return on these portfolios, without taking unreasonable risk, while meeting member owner needs.

Risk measurement

The Credit Union's risk position is measured and monitored each month to ensure compliance with policy. Managementprovides monthly reports on these matters to the Credit Union's Board of Directors.

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Objectives, policies and processes

Management is responsible for managing the Credit Union's interest rate risk, monitoring approved limits and compliancewith policies. The Credit Union manages market risk by developing and implementing asset and liability managementpolicies, which are approved and periodically reviewed by the Board.

The Credit Union's goal is to achieve adequate levels of profitability, liquidity and safety. The Board of Directors reviews theCredit Union's investment and asset liability management policies periodically to ensure they remain relevant and effectivein managing and controlling risk.

Interest rate risk

Interest rate risk is the sensitivity of the Credit Union’s financial condition to movements in interest rates. Cash flow interestrate risk is the risk that the future cash flows of the Credit Union’s financial instruments will fluctuate due to changes inmarket interest rates. Fair value interest rate risk is the risk that the value of a financial instrument will fluctuate because ofchanges in prevailing market interest rates. Interest margins reported in comprehensive income may increase or decreasein response to changes in market interest rates. The Credit Union incurs interest rate risk on its loans and other interestbearing financial instruments.

In managing interest rate risk, the Credit Union relies primarily upon use of asset - liability and interest rate sensitivitysimulation models, which is monitored by the Credit Union and reported to the Audit Committee.

Sensitivity analysis is used to assess the change in value of the Credit Union’s financial instruments against a range ofincremental basis point changes in interest rates over a twelve month period. Interest rate shock analysis is calculated in asimilar manner to sensitivity analysis but involves a more significant change of 100 basis points or greater in interest rates.Sensitivity analysis and interest rate shock analysis are calculated on a quarterly basis and are reported to the AuditCommittee. Based on current differences between financial assets and financial liabilities as at year-end, the Credit Unionestimates that an immediate and sustained 100 basis point increase in interest rates would increase net interest income by$96,950 over the next 12 months while an immediate and sustained 100 basis point decrease in interest rates woulddecrease net interest income by $96,950 over the next 12 months.

Other types of interest rate risk are basis risk (the risk of loss arising from changes in the relationship of interest rates whichhave similar but not identical characteristic; for example, the difference between prime rates and the Canadian DepositOffering Rate) and prepayment risk (the risk of loss of interest income arising from the early repayment of fixed ratemortgages and loans), both of which are monitored on a regular basis and are reported to the Audit Committee.

The Credit Union's major source of income is financial margin which is the difference between interest earned oninvestments and loans to members and interest paid to members on their deposits. The objective of managing the financialmargin is to match re-pricing or maturity dates of loans and investments and member deposits within policy limits. Theselimits are intended to limit the Credit Union's exposure to changing interest rates and to wide fluctuations of income duringperiods of changing interest rates. The differential represents the net mismatch between loans and investments andmember deposits for those particular maturity dates. Certain items on the statement of financial position, such as non-interest bearing member deposits and equity do not provide interest rate exposure to the Credit Union. These items arereported as non-interest rate sensitive in the table below.

Amounts with variable interest rates, or due on demand, are classified as on demand.

A significant amount of member loans receivable and member deposits can be settled before maturity on payment of apenalty. No adjustment has been made for repayments that may occur prior to maturity.

Interest rate sensitivity

In the table below, the carrying amounts of financial instruments are presented in the periods in which they next re-price tomarket rates or mature and are summed to show the net interest rate sensitivity gap.

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Contractual repricing and maturity

All financial instruments are reported in the schedule below based on the earlier of their contractual re-pricing date ormaturity date. The schedule below does not identify management's expectations of future events where re-pricing andmaturity dates differ from contractual dates.

(In thousands)

2016 2015

On demandWithin 3months

Over 3months to 1

year Over 1 yearNon-Interest

Sensitive Total Total

AssetsCash and cashequivalents 8,266 - - - 233 8,499 13,280

Average yield % 0.66 - - - - 0.64 0.43Investments 6,000 - 888 250 - 7,138 5,296

Average yield % 1.15 - 0.58 1.51 - 1.09 1.02Member loansreceivable 16,345 6,218 20,496 29,887 318 73,264 65,667

Average yield % 3.41 3.63 3.50 4.10 - 3.72 4.19Accountsreceivable - - - - - - 7

30,611 6,218 21,384 30,137 551 88,901 84,250

LiabilitiesMember deposits 18,982 7,853 16,443 29,938 9,073 82,289 78,313Average yield % 0.85 1.82 1.84 2.27 - 1.56 1.65Membershipshares - - - - 23 23 27Accounts payable - - - - 227 227 235

18,982 7,853 16,443 29,938 9,323 82,539 78,575

Net sensitivity 11,629 (1,635) 4,941 199 (8,772) 6,362 5,675

Fair value risk

Fair value risk is the potential for loss from an adverse movement in the value of a financial instrument. The Credit Unionincurs fair value risk on its loans, certain deposit accounts and investments held. The Credit Union does not hedge its fairvalue risk. See Note 18 for further information on fair value of financial instruments.

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Liquidity risk

Liquidity risk is the risk that the Credit Union cannot meet a demand for cash or fund its obligations as they come due. TheCredit Union's management oversees the Credit Union's liquidity risk to ensure the Credit Union has access to enoughreadily available funds to cover its financial obligations as they come due. The Credit Union's business requires suchliquidity for operating and regulatory purposes. Refer to Note 6 for further information about the Credit Union's regulatoryrequirements.

Liquidity risk is managed through a three tiered structure consisting of the local Credit Union level, the provincial CreditUnion level and the national Credit Union level.

Locally, the Credit Union manages its liquidity position from three perspectives:

• Structural liquidity risk, which addresses the risk due to mismatches in effective maturities between assets and

liabilities, more specifically the risk of over reliance on short-term liabilities to fund long-term illiquid assets;

• Tactical liquidity risk, which addresses the day-to-day funding requirements that are managed by imposing

prudential limits on net fund outflows; and

• Contingent liquidity risk, which assess the impact of sudden stressful events and the Credit Union’s responses

thereto.

The primary liquidity risk policies and procedures include the following:

• Liquidity risk management framework to measure and control liquidity risk exposure;

• Measurement of cashflows;

• Maintain a line of credit and borrowing facility with SaskCentral;

• Maintenance of a pool of high quality liquid assets;

• Monitoring of single deposits and sources of deposits; and

• Monitoring of term deposits.

Provincially, SaskCentral manages a statutory liquidity pool of marketable investment securities on behalf of SaskatchewanCredit Unions to facilitate clearing and settlement, daily cash flow management and emergency liquidity support. Nationally,credit union centrals are represented by one central which acts as the Group Clearer, Central 1 Credit Union. The GroupClearer is a member of the Canadian Payments Association and pools provincial cash flows to settle with the Bank ofCanada.

The following table details contractual maturities of financial liabilities:

As at December 31, 2016:

< 1 year 1-2 years > 3 years Total

Member deposits 52,351,202 12,693,933 17,244,294 82,289,429Accounts payable 227,398 - - 227,398Membership shares - - 23,189 23,189

Total 52,578,600 12,693,933 17,267,483 82,540,016



Member deposits 50,387,357 9,784,258 18,141,337 78,312,952Accounts payable 234,989 - - 234,989Membership shares - - 27,493 27,493

Total 50,622,346 9,784,258 18,168,830 78,575,434

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The Credit Union manages liquidity risk on a net asset and liability basis. The following tables explain the contractualmaturities of financial assets held for the purpose of managing liquidity risk.



Cash and cash equivalents 8,498,958 - - 8,498,958Investments 6,888,500 - 250,000 7,138,500Member loans receivable 43,376,369 13,766,453 16,121,099 73,263,921

Total 58,763,827 13,766,453 16,371,099 88,901,379



Cash and cash equivalents 13,279,556 - - 13,279,556Investments 5,045,526 - 250,000 5,295,526Member loans receivable 36,138,181 15,960,008 13,568,545 65,666,734Accounts receivable 7,417 - - 7,417

Total 54,470,680 15,960,008 13,818,545 84,249,233

The above tables were prepared using undiscounted contractual maturities of financial assets and liabilities includinginterest that will be earned or paid on these amounts.

Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because ofchanges in foreign exchange rates. In seeking to manage the risks from foreign exchange rate fluctuations, the CreditUnion maintains foreign cash balances to approximately offset deposits held in foreign funds.

Foreign currency risk is not considered significant at this time as the Credit Union does not engage in any active trading offoreign currency positions or hold significant excess foreign currency denominated financial investments for an extendedperiod.

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18. Fair value measurements

Recurring fair value measurements

The Credit Union’s assets and liabilities measured at fair value on a recurring basis have been categorized into the fairvalue hierarchy as follows:

2016(In thousands) Fair Value Level 1 Level 2 Level 3

AssetsFinancial assets at fair value through profit or lossCash and cash equivalents 8,499 8,499 - -

Total recurring fair value measurements 8,499 8,499 - -


AssetsFinancial assets at fair value through profit or lossCash and cash equivalents 13,280 13,280 - -

Total recurring fair value measurements 13,280 13,280 - -

As outlined in Note 4 to the financial statements, the Credit Union's SaskCentral and Concentra Financial shares areclassified as available-for-sale and measured at cost, therefore are not included in the above table. Amortized cost of theseitems totalled $1,138,500 (2015 - $795,526).

Asset and liabilities for which fair value is only disclosed

The following table analyses within the fair value hierarchy the Credit Union’s assets and liabilities (by class) not measuredat fair value at December 31, 2016 but for which fair value is disclosed:


AssetsInvestments 6,000 - 6,000 -Member loans receivable 73,618 - 73,618 -

Total assets 79,618 - 79,618 -

LiabilitiesMember deposits 83,364 - 83,364 -Accounts payable 227 - 227 -Membership shares 23 - - 23

Total liabilities 83,614 - 83,591 23

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18. Fair value measurements (Continued from previous page)


AssetsInvestments 4,500 - 4,500 -Member loans receivable 66,039 - 66,039 -

Total assets 70,539 - 70,539 -

LiabilitiesMember deposits 79,486 - 79,486 -Accounts payable 235 - 235 -Membership shares 27 - - 27

Total liabilities 79,748 - 79,721 27

All fair values disclosed and categorized within Level 2 of the hierarchy use a net present value valuation technique andinputs consisting of actual balances, actual rates, market rates (for similar instruments) and payment frequency.

As there is no observable market data for all fair values disclosed and categorized within Level 3 of the hierarchy, the CreditUnion has assumed that the fair value of the amounts is comparable to their amortized cost.

19. Commitment

In 2015, the Credit Union entered into a six year commitment for the provision of retail banking services provided by CGI.The annual operating fee is calculated based on the level of equipment and services utilized as well as the number of CreditUnion members. The annual operating fees to December 31, 2016 were $102,822 (2015 - $95,973) and recorded as anexpense (2017 estimate to approximate 2016).

20. Other legal and regulatory risk

Legal and regulatory risk is the risk that the Credit Union has not complied with requirements set out in terms of compliancesuch as standards of sound business practice, anti-money laundering legislation or their code of conduct/conflict of interestrequirements. In seeking to manage these risks, the Credit Union has established policies and procedures and monitors toensure ongoing compliance.

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P. Suknacky 1939-1946 M. Mudryk 1939-1940 S. Huk 1939-1940 1952 J. Nasalsky 1939-1942 J. Horodysky 1939-1952 O. Hryhorowich 1939 T. Oginsky 1939-1947 J. Waschuk 1939 N. Bukowsky 1939-1952

1956-1964 1971-1976 1979-1984

J. Bayrak 1939-1941 P. Bozok 1939-1942 W. Topolnicky 1939 S. Romanow 1940-1941 N. Makohon 1940-1943 M. Babij 1940-1941 D. Lotosky 1941 J. Antonik 1941-1942 S. Wowk 1941-1953 W. Budz 1942

1944-1953 N. Laschuk 1942-1946 O. Waschuk 1942-1943 P. Kashuba 1943-1945 A. Walko 1943-1944 J. Teslek 1943-1951 A. Mysyk 1944 G. Bibyk 1944-1951

1953-1956 F. Rawlyk 1945-1951 P. Tkachuk 1946-1966 A. Kowbel 1946-1951

1953-1954 P. Perchyshyn 1946-1951 B. Sawka 1948-1951 Dr. M. Woytowich 1952-1957 J. Bedzyk 1952

1959-1963 D. Romanow 1952-1953 J. Rawlyk 1953-1960 J. Galon 1953-1955 J. Basarab 1953-1957 O. Hnatiuk 1953-1956 L. Kuleba 1953 G. Seniuk 1953-1958 M. Korpan 1953-1956 T. Baran 1953-1956 Dr. S. Dershko 1955-1957

1966-1968 1976-1979

Fr. V. Iwaszko 1957-1962 1967-1969 1971-1977

Dr. D. Sokulsky 1957-1958

N. Wiwchar 1957-1960 A. Chelak 1957-1959 O. Waschuk 1957-1958

1961-1966 W. Sharko 1958-1979 P. Kostyshyn 1958-1962 P. Kolysher 1959-1969 M. Seniuk 1959-1960 M. Cherneskey 1959-1973 M. Pawlyk 1960-1962 Dr. M. Stadnyk 1961-1963 C. Kostiw 1961 Prof. A. Michalenko 1962-1965

1972-1974 J. Sywanyk 1963-1974

1981-1986 J. Chorney 1963-1965

1977-1982 1984-1989

S. Kuzma 1963-1974 1979-1984

Prof. V. Buyniak 1964-1965 V. Maik 1965-1967 J. Fernetz 1965-1970 Dr. B. Rozdilsky 1966-1969 P. Kyba 1966-1971 S. Franko 1967-1972

1976-1978 1990-1992 1998-2002

J. Olynyk 1968-1970 A.W. Prociuk 1969-1971 Dr. M. Nebeliuk 1970-1972 S. Woytowich 1970-1975 Dr. B. Klymenko 1971-1975 A. Hawrish 1973-1977 P. Krawchuk 1973-1978

1980-1982 M. Berezowsky 1973 P. Worobetz 1973-1978

1980-1982 O. Lazarowich 1974-1975 S. Kays 1974-1979 W. Michayliuk 1975-1977 T. Pasichniak 1975-1980 A. Korolewich 1975-1978 P. Kaminsky 1976-1981 H. Oleniuk 1978-1983

1985-1990 J. Hrytzak 1978-1979 N. Hawrysh 1979-1983 W. Korol 1979-1983 M. Boychuk 1980-1985

1987-1992 Dr. D. Cipywnyk 1980-1982 T. Huchkowsky 1982-1984 R. Kaminsky 1983-1988

P. Yuzwa 1983-1988 M. Sorochka 1983-1989

1991-1993 A. Stachniak 1984-1989 W. Wasylciw 1984-1988 S. Duch 1985-1990 M. Baniak 1985-1990

1996-1998 W. Hnatiuk 1985-1986 M. Luczka 1986-1991

1993-1997 J. Kornylo 1987-1990

1995-2000 N. Penry 1989-1994 N. Budzak 1989-1994 B. Bodnar 1989-1994 E. Gabruch 1990-1992 Dr. R. Papish 1990-1995

1997-2003 Z. Dershko 1991-1996 J. Matweyko 1991-1993 M. Rygajlo 1991-1993 R. Luczka 1992 M. Pasichniak 1993-1998 J. Chrusch 1993-1998 W. Pillipow 1993-1995 P. Tymchatyn 1995-1997 R. Maluk 1995-2000 2003-2012 M. Gregory 1996-2005 A. Kalist 1998-2003 D. Luczka 1999-2003 B. Baran 1999-2005 R. Gabruch 2001-2006 A. Pshebylo 2001-2010 G. Trischuk 2002-2011 E. May 2003-2010 E. Koshman 2003-2012 S. Hawryliw 2005-2011 D. Lalach 2005-2012 G. Klimek 2005-2014 J. Calyniuk 2007-2016 D. Demeria 2010-2011 C. Arthurs 2010-Present B. Slowski 2011-Present D. Rebin 2011-Present C. Brown 2011-2017 L. Hosaluk 2012-2015

G. Zerebecky 2012-Present A. Wojcichowsky 2012-Present R. Sywanyk 2014-Present

G. Klypak 2015- Present

M. Bodnar 1999-2005 2016- Present

Has served as Chair

during term of office

annual report - new community credit union · 1. call to order 2. adoption of agenda 3. moment of...

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