gulf fraser fishermen’s credit union - … & fraser fishermen’s credit union. 2g&f...

strength from within

2007 ANNUAL REPORT

GULF & FRASERFISHERMEN’SCREDIT UNION

2 G&F Financial Group

ON OUR COVER | The recognizable Fisherman relief at Steveston’s branch

For over 65 years, G&F Financial Group

has been making dreams happen. We are

passionate about superior service and

As a people-oriented

organization, our

commitment extends

beyond our credit union

walls to helping local

communities thrive. We

show our support through

community participation and

sponsorship, and through

numerous causes and events,

spanning six regions in the

Lower Mainland.

Judy LauBranch Manager,Steveston BranchRichmond

Steveston Marina

2007 Annual Report 3

Supportingour historyand heritage

role in G&

at one of our oldest branches, the Steveston

station for the Children’s Bike Parade in the parking lot of G&

&F Financial Group

her staff are active fundraisers for Manoah Steves

as G&

Support for our local

communities can only

occur with the time and

effort of our hard working

employees, who dedicate

numerous hours and

dollars to the community

and to charity on weekends,

evenings and even holidays.

Their actions reveal a

strength that radiates

from within our credit

union — the strength

of our people.


BOARD OF DIRECTORS’REPORT

challenge and once again post substantial earnings while furthering our efforts to build

Sharing our Success

At G&

&

Vince FiamengoChair, Board of Directors


BOARD OF DIRECTORS

Joseph Boroevich,Second Vice President

Lewis Bublé,First Vice President

Vila Nova Carvalho,Director

Vince Fiamengo,Chair and President

Brian Hamaguchi, Director

Howard Normann, Director*

Aubrey Searle,Director*

John Secord,Director

Al Wagner, Director*

Gary Williamson, Director

Mercedes Wong, Director*

Floyd Yamamoto, Director

th Annual General Meeting


CHIEF EXECUTIVE OFFICER’SREPORT

&F Financial Group

&

Investing in the Future&

the

to convert to TCCUS is a cornerstone of our strategic plans for the foreseeable future and

Excellent Growth&

&

Richard Davies


MANAGEMENT’SRESPONSIBILITY FORFINANCIAL REPORTING

that all transactions are authorized and proper records are

The Board of Directors has approved the consolidated

Berris Mangan, Chartered Accountants, the independent

Richard Davies William Kiss

CONSOLIDATEDREPORT

To the Members of Gulf and FraserFishermen’s Credit Union:

opinion, these principles have been applied on a basis

CHARTERED ACCOUNTANTSVancouver, BC


CONSOLIDATEDBALANCE SHEETFor the year ended December 31, 2007 (in thousands of dollars)

ASSETS 2007 2006

Cash resources $70,084

Loans 841,629

Investments 3,115

Receivables and prepaid expenses 1,600

Premises and equipment 10,130

Future income tax asset 477

$927,035

LIABILITIES

Deposits

$301,053

324,926

173,316

Accrued interest 8,947

Share savings

840

3,674

182

Total members’ accounts 812,938

58,000

5,969

o

876,907

MEMBERS’ EQUITY

Contributed surplus 17,291

Retained earnings 32,635

49,926

Accumulated other comprehensive income 202 o

50,128

$927,035

Approved on behalf of the board,

Vince FiamengoChair, Board of Directors

Joseph Boroevich,

CONSOLIDATED STATEMENT OFCHANGES IN MEMBERS’ EQUITYFor the year ended December 31, 2007 (in thousands of dollars)

2007 2006

CONTRIBUTED SURPLUS $17,291

RETAINED EARNINGS

29,235

3,400

o

32,635

ACCUMULATED OTHER COMPREHENSIVE INCOME

(12) o

214 o

202 o

TOTAL EQUITY $50,128

CONSOLIDATED FINANCIAL STATEMENTS


CONSOLIDATED STATEMENT OF INCOME AND COMPREHENSIVE INCOMEFor the year ended December 31, 2007 (in thousands of dollars)

FINANCIAL INCOME 2007 2006

Loan interest $48,999

3,647

52,646

FINANCIAL EXPENSES

26,786

3,214

30,000

Financial Margin 22,646

OTHER INCOME (EXPENSE)

4,625

607

Provision For Doubtful Loans (500)

4,732

OPERATING MARGIN 27,378

OPERATING EXPENSES

12,635

2,765

1,972

1,554

Data processing 1,504

894

Professional and other services 692

Other 607

539

23,162

INCOME FROM OPERATIONS 4,216

DONATION TO GFFG FOUNDATION (75)

DISTRIBUTION TO MEMBERS (Note 1(d)) (158)

INCOME BEFORE INCOME TAXES 3,983

INCOME TAXES (Note 9)

Current 536

Future 47

583

Net Income for Year 3,400

OTHER COMPREHENSIVE INCOME

214 o

Comprehensive Income $3,614

CONSOLIDATED STATEMENT OFCASH FLOWSFor the year ended December 31, 2007 (in thousands of dollars)

OPERATING ACTIVITIES 2007 2006

Net income for the year $3,400

1,554

Provision for doubtful loans 500

47

5,501

Changes in non-cash working capital

Accrued interest on loans (184)

246

Accrued interest on deposits (1,329)

2,799

7,033

INVESTING ACTIVITIES

(168)

Increase in loans (68,535)

(1,898)

o

o

(70,601)

FINANCING ACTIVITIES

64,481

3,018

(6)

(367)

67,126

INCREASE (DECREASE) IN CASH 3,558

CASH, BEGINNING OF YEAR 66,526

CASH, END OF YEAR $70,084


hedging relationship, the effective portion of the change in the fair value of the

2. LOANS2007 2006

$508,302

220,387

(4,695)

723,994

Other loans 19,572

Lines of credit 99,437

Accrued interest 2,389

845,392

(3,763)

$841,629

3. INVESTMENTS2007 2006

Credit Union Central of British Columbia $2,493

Other 622

$3,115

4. PREMISES AND EQUIPMENT20 2007 2006

CostAccumulated Amortization

Net Book Value

Net BookValue

Land $o $3,468

Buildings 2,706

Furniture and equipment 3,659

Leasehold improvements 297

$10,130

1. SIGNIFICANT ACCOUNTING POLICIESa) Principles of Consolidation

b) Loans and Revenue Recognition

An allowance is provided on loans for which collection is doubtful in

c) Amortization

d) Distribution To Members

e) Future Income Taxes

f) Use of Estimates

g) Accounting Changes — Financial Instruments

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the year ended December 31, 2007 (all tabular amounts in thousands of dollars)


5. REGISTERED SAVINGS PLANS2007 2006

$135,159

35,536

Registered Education Savings Plans 2,621

$173,316

6. SHARE SAVINGS

7. ACCOUNTS PAYABLEAND OTHER LIABILITIES

2007 2006

$5,809

Deferred revenue 160

$5,969

8. CAPITAL REQUIREMENT

9. INCOME TAXESDetails of the components of income taxes are as follows:

2007 2006

$1,426

Preferred rate deduction available to credit unions (454)

(389)

$583

2007 2006

Allowance for doubtful loans $(95)

15

(1) o

(395)

Intangible asset (1)

$(477)

10. COMMITMENT

$858

806

758

598

1,975

$4,995

11. OTHER INFORMATION

12. CREDIT FACILITIES

13. CONCENTRATIONS OF CREDIT RISK

14. LIQUIDITY RISK



15. INTEREST RATE SENSITIVITY

ASSETS

WEIGHTEDAVERAGE

RATEWITHIN1 YEAR

1 TO 2YEARS

2 TO 3 YEARS

3 TO 4 YEARS

OVER 4 YEARS

NOTINTEREST

SENSITIVE TOTAL

Cash resources 4.03% $13,426 $5,900 $5,066

Loans 5.95% 91,623 99,102 (1,375)

and othero o o o o 5,192

o o o o o 10,130

105,049 105,002 19,013

LIABILITIESAND MEMBERS’ EQUITY

Deposits 3.58% 167,880 7,860 140,827

Other 4.63% o o o o 5,970

o o o o o 50,128

167,880 7,860 196,925

Interest

Position $(62,831) $97,142 $(177,912) o

16. FAIR VALUES OFFINANCIAL INSTRUMENTS

ASSETS BOOK VALUE FAIR VALUE

FAIR VALUEOVER (UNDER)

BOOK VALUE

Cash

Loans

o

LIABILITIES ANDMEMBERS’ EQUITY

Deposits

Other

17. OFF BALANCE SHEETFunds Under Administration

2007 2006

$4,695

76,716

$81,411

Letters of Credit

18. DERIVATIVE FINANCIAL INSTRUMENTS

19. NOTE TO THE STATEMENTOF CASH FLOWS

2007 2006

$409

Dividends paid $531

Interest paid $31,415

20. WIND UP OFGULF AND FRASER HOLDINGS LTD.



FIVE YEAR FINANCIAL REVIEWFor the year ended December 31, 2007 (in thousands of dollars)

CONSOLIDATED BALANCE SHEET (UNAUDITED) 2007 2006 2005 2004 2003

$73,199

Loans 841,629

Other Assets 12,207

Total Assets $927,035

$812,937

Other Liabilities 63,970

50,128

$927,035

CONSOLIDATED STATEMENT OF INCOME (UNAUDITED) 2007 2006 2005 2004 2003

$52,646

30,000

4,732

23,162

$4,216

SELECTED STATISTICAL DATA (UNAUDITED)(AS A PERCENTAGE OF AVERAGE ASSETS) 2007 2006 2005 2004 2003

Financial Margin 2.50

0.52

2.56

0.47

ALLOWANCE FOR LOSSES ON LOANS 2007 2006 2005 2004 2003

Closing Balance $3,763


change for the areas surrounding the Hastings

Strathcona Business Improvement Association

City of Vancouver Police Department.

of Strathcona. To date, the branch has helped

working with the SBIA to restore Hastings Street as

Building Opportunities for Business

Downtown East Side

2010 Olympics

Clothing Drive

Food Bank

Wayne KennedyBranch Manager,Hastings Street BranchVancouver

Mural at RayCamCommunity Centre,Strathcona

Inspiring changefor a stronger community


A strong, positive relationship with our neighbours

with Sir Charles Tupper Secondary and Florence Nightingale Elementary to raise funds for the purchase of interactive learning tools and to

participated in the Vaisakhi Parade on Main Street st Avenue and Nordel branches, and

worked with the St. Patrick Secondary School and Seniors’ Group to raise funds at various events

Main Street, the branch supports the efforts of local artists, donating funds for The Main Art Drift Society’s

REAL WHEELS,

the Building & Construction Trades Council and the Vancouver City Employees, both of which are an

Ruby DhillonBranch Manager,Main Street BranchVancouver

Telus World of Scienceon Main Street

for our neighbours


st Avenue branch is one

Manager Steven Hui and his staff participate in a

Events such as the Vancouver City Workers Family Day and RoadeoCollingwood Neighbourhood Housefor the Third Annual JT Charity Draft TournamentCollingwood Day; and Avalon Day

of the activities Steven and his staff support

partnerships, Steven also works to develop and

Killarney Secondary School students and the Junior General Brock Elementary

st

Canadian Cancer Society, the Greater Vancouver Food Bank, the Fijian community, the Chinese community, and the BC Centre for Abilities.

Contributing tomeaningful partnerships

Steven HuiBranch Manager,st Avenue Branch

Vancouver

Avalon Dairy Farm


For Cloverdale Branch Manager Nelson Sandhu, the

Cloverdale Ice Skating Club Championships, the Peewee Provincial Hockey Championships, andthe Cloverdale Minor Softball Association Opening Day

In addition to providing support for various sports, these events help the credit union gain greater

Surrey Canada Dayhelped seal G&F Financial Group’s reputation as

Nelson SandhuBranch Manager,Cloverdale Branch

Cloverdale Fairgrounds

Dedicated tominor sports in the community


children about the power of cooperation and sound

Parent Advisory Council

&F Financial Group at

school events and causes, such as volunteering for the school’s Sports Day

and her staff dedicate their efforts and contribute

Fleetwood Park and Enver Creek Secondary, Surrey Memorial Hospital,the SPCA, and the Shriners

Shelley CampbellBranch Manager,Fleetwood Branch

Fleetwood Library

Nurturinga new generation


South Asian

Indo Canadian Business Association, sitting on the organizing

branches in planning and organizing a Business Appreciation Dinner

In addition, the Nordel branch is involved in

South Asian radio station RED FMst

Avenue and Main Street branches to participate in the Vaisakhi Parade

On top of these activities, Victor is involved with the Surrey Board of Trade, the Board of Directors at Kwantlen University College Foundation, the Child Development Centre North Delta Skating Club,

Victor LallBranch Manager,Nordel Branch

KwantlenUniversity College

Focusing oncultural diversity


Gill Sherwood, Branch Manager for the South

in support of the Stride Avenue Elementary School,the Stride Avenue Food Bank, the new Burnaby Moresports Program, and Byrne Creek Secondary School.fundraisers, scholarships, and participation and

In addition, staff also volunteered and participated South Burnaby

Neigbhourhood House (SBNH) Diamond Ball and Car Rally. A large part of the funds raised

to build leadership skills and provide positive,

Gill SherwoodBranch Manager,

Metrotown

Focusing on youth


Suburban Rush Adventure Racethe Eagle Ridge Hospital Foundation’s Evening of Caring, Pancake Breakfast, Golf Tournament and Ball Drop Sale; Port Coquitlam Creek’s Classic Duathalon and Triathlon; the Crossroads Hospice Society’s Treasures of Christmas; and the Terry Fox Hometown Run

branch worked in partnership with Douglas College&F Financial

bearing the G&

new Health Sciences

Peter KobayashiBranch Manager,

G&F Financial Group Computer Lab,Douglas College

Encouraging health and wellness


Valuingeducation

Royal City Education Foundation, Douglas College, Miss New West Ambassador Program, New Westminster Senior Secondary, Connaught Elementary, Sands Secondary, and Armstrong Elementary School this

and entrepreneurship, Louise also

students through the Junior Achievement Program at Lord Kelvin Schoolrecipient of the Community Spirit Awards,

Chamber, Rotary, and New Westminster

As diverse as the people, neighbourhoods,

credit union, the staff at G&F Financial

vision, where members belong.

Through volunteering, sponsorships

and fundraising, we are all dedicated

to making our neighbourhoods and

communities a better place to live, work

and enjoy. We rally for our neighbours,

support health and wellness, inspire

change, and strive to provide educational

and employment opportunities.


Louise PerryBranch Manager,

New Westminster Quay

Our combined efforts culminate in

strong recognition, awareness and

accolades from our diverse communities.

Through it all, our purpose grows, to

provide and give back to our community

in the true spirit of the credit union.

Your community. Our people.

The strength that surrounds us

and the strength from within. The

strength that is G&F Financial Group.

MISSION STATEMENT

G&F Financial Group is a progressive

organization that creates opportunities

by investing in our people, our members

and our communities.

Together we make dreams happen.

VISIT GFFG.COM

gulf fraser fishermen’s credit union - … & fraser fishermen’s credit union. 2g&f...

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