We’re here to help. Visit your local branch, call 1-800-616-8878, or go to FirstOntario.com.

Winter 2014

Carey SmithChair, Board of Directors

I would like to wish everyone a happy and healthy holiday season. Looking back on 2013, it was a successful year notwithstanding our financial performance, your Board of Directors remains passionate about being true to our credit union roots: we are all about our communities. At FirstOntario we believe in it; in fact the word community appears throughout our vision, mission and values statements. It is why we’re here and it’s what differentiates us from everyone else. When you bank with FirstOntario, you’re investing in your local community and that includes our corporate social responsibility programs. Where you put your money does matter and to us, nothing matters more than our communities.Another success last year was FirstOntario combining operations with Rochdale Credit Union. This merger is a win-

win for both organizations: it will complement our existing branches in the Haldimand/Norfolk and Oxford Counties with the addition of branches in the Brant Region and Woodstock area, and will provide superior services and products for Rochdale Members and enhanced opportunities for their employees. The combined organization will have just under $4.0 billion in funds under management serving nearly 100,000 Members through 27 branch offices.

On another note, we held our 14th Annual General Meeting (AGM) at White Oaks Conference Resort and Spa in Niagara-on-the-Lake, on December 4th, 2013. Our AGM was a well attended event and there were five seats up for election or re-election on the Board of Directors. It was great to see the response of interested candidates in filling roles and helping build a better FirstOntario. I would like to thank all the candidates that ran in the Board of Directors elections. I’ve been re-elected as Chair of the Board, and I would like to congratulate Lorie Peacock, Ron Fleet, Irene Lowell, and Evelyn Myrie on their elections.

I also want to extend my gratitude to the staff and volunteers who helped with elections and the ballot process, and who assisted in making the AGM possible. Your hard work and dedication symbolizes our commitment to our Members, and the democratic process as a whole.

You can read more about FirstOntario’s success over the past year in our annual report which has been posted online at www.FirstOntario.com. I would like to thank all our FirstOntario staff, Members, Board of Directors, and our communities for a great 2013 and look forward to continued success in 2014.

Visit From A Dragon

This past October FirstOntario celebrated small business week with a visit from a Dragons’ Den panelist. FirstOntario, in partnership with Mohawk Talks, presented entrepreneurial expert and original co-founder of Lavalife Bruce Croxon. Over 150 people gathered at the McIntyre Performing Arts Theatre at Mohawk College in Hamilton to hear Mr. Croxon talk about his experience as an entrepreneur, and also about the value Credit Unions bring to small businesses.

Snapshots from the 14th Annual General Meeting on December 4th

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We’re here to help. Visit your local branch, call 1-800-616-8878, or go to FirstOntario.com.

Guarding Against Financial FraudFirstOntario’s Chief Operating Officer, Dave Schurman is a regular on CHCH TV’s Finance Friday segment, sharing financial tips with our local communities.

I hear a lot about cyber threats and fraud, these are a concern for me when it comes to online banking. What are some of the scams and how can we protect ourselves and our bank accounts?

“One of the most circulated scams is a phishing scam. A phishing scam is a general term for e-mails, text messages and websites that are fabricated and sent by criminals. They are designed to look like they come from trusted businesses like your bank, credit union or even government agencies in a fraudulent attempt to collect personal information from you.

Typically, phishing messages will ask you to “update,” “validate,” or “confirm” some personal information or face some kind of consequence. For example, if you don’t update your account information by 5:00 p.m. today your account will be locked. Credit Unions, financial institutions or government agencies will never send you

unsolicited e-mails asking for confidential information, such as your password or PIN. Never respond to these e-mails asking for personal or financial information.”

What should someone do if they receive a phishing e-mail or aren’t sure if the e-mail is legitimate?

“If something seems suspicious to you then it likely is a scam. Don’t reply without confirming exactly who you are dealing with. Report anything suspicious to the company that the fraudsters are appearing to be representing. You can report this activity to your local police agency and the Canadian Anti Fraud Centre at www.antifraudcentre.ca.”

I’ve heard seniors are the most vulnerable, what are the most common types of scams they should avoid?

“The grandparent scam is one of the most widespread senior scams and tugs at the grandparent’s heart-strings. The victim receives a call supposedly from a grandchild in trouble abroad and needing money urgently. Usually the excuse is that the grandchild needs cash to post bail or has been in an accident and needs a money wire payment right away.

Don’t be fooled by this, give your children a call to see where your grandchild is and speak with relatives about the phone call you received and report it to authorities.”

You can follow Dave Schurman on Twitter @Finance_Friday.

Watch Finance Fridaywith Dave Schurman on CHCH TV’s Morning Live at 7:15 a.m.

The buzz at HIVEX

FirstOntario believes in its communities and helping its community partners, and this includes fostering engagement with young entrepreneurs. FirstOntario was a proud sponsor of Hive X – an annual conference held in downtown Hamilton to help promote and bring together like-minded young adults who are either small business owners, professionals or those interested in developing Hamilton’s economic landscape.

The well attended event featured guest speakers and networking opportunities and included people from Hamilton’s small business community, local post-secondary institutions, politicians, media and Hamilton Chamber of Commerce.

FirstOntario’s Money On Trees attended Hive X and also participated in the live Tweet discussions.

for young adultsFinancial literacy

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In Our CommunityReady your spoons and bowls for Soupfest!

FirstOntario is a title sponsor for the 12th annual Soupfest. The event brings some of the top chefs and restaurants from Hamilton, Halton and surrounding areas to battle it out for the best soup.

Soupfest is a one-day event to raise money to support programs that help youth-at-risk living in a state of poverty improve their circumstances.

Please join us on Tuesday, January 28, 2014 at the Hamilton Convention Centre by Carmen’s, from 11:30 a.m. to 9:00 p.m. Tickets to Soupfest can be purchased at FirstOntario branches in Hamilton, Stoney Creek, Burlington or Oakville. Tickets will also be available at the door.

Advance Ticket prices:• $12 for adults • $10 for seniors • $10 for children

Help support youth in our communities.

FirstOntario’s branches in Hamilton, Stoney Creek, Burlington and Oakville are collecting donations of hygiene products such as soap, shampoo, deodorant and more to help street-involved youth. Donations are being accepted until January 28th and your donation is very much appreciated.

FirstOntario believes in helping young adults achieve their financial goals, that’s why we launched Money on Trees, a financial literacy program designed to give young adults tips to help them manage their money and make informed everyday financial decisions. Moneyontrees.ca is a financial literacy blog that takes on the unique challenges faced by young adults by providing financial resources and answers to everyday money management questions.

The blog looks at common questions faced by young adults, whether they are in college or university, getting ready to graduate, looking for their first job, or well on their way into the next stages of life. Money On Trees will cover a broad range of topics, from cutting back on spending and how to save for major life milestones, to a section devoted to issues related to consumer rights. Readers can also get access to a resource library featuring a range of third-party informational resources such as personal finance blogs, financial calculators, and other links geared to young adults.

Visit www.moneyontrees.ca or follow us on Twitter at @Money_On_Trees or Facebook at Money On Trees.

Member Appreciation DaysAt FirstOntario our Members are important to us and in October FirstOntario held two Member Appreciation events. On October 5, our branch on Barton Street in Hamilton treated Members to a barbeque and some great prizes and giveaways. Hundreds of Members attended the event and included a special appearance from Bruiser, the Hamilton Bulldogs mascot.Our Members in the Niagara area also had a celebration of their own, marking the re-location of our Linwell branch to Scott Street. Fun was had by all who attended the fall fair theme. Children were treated to pumpkin painting, the event was catered by local partners and some lucky people walked away with some great prizes.

Thanks to all who came out to enjoy our Member Appreciation Days.

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What Happens to Your Assets if You Die Without a Valid Will?

Not preparing a valid Will is the biggest estate planning mistake people make and it may result in undesired consequences. According to a recent LAWPRO survey, almost one in two Canadians has not prepared a Will. So, what happens to your assets if you die without having a valid Will in place?

Well, in such circumstances, distribution of your estate will be governed by the formula prescribed in The Ontario Succession Law Reform Act (SDA), which may NOT be what the deceased might have wished for. Below are the potential scenarios and resulting distribution scheme as set out in the law:

1. If the deceased is survived by a spouse only, the entire estate will go the surviving spouse.

2. If the deceased is survived by children only and no spouse, the entire estate will be split equally among the children.

3. If the deceased leaves a spouse and one child, • first $200,000 will go to the spouse and • the remainder will be split equally between the spouse and the child.

4. If the deceased leaves a spouse and more than one child, • first $200,000 will go to the spouse and • the remainder will be split one-third to the spouse and two-thirds between the children equally.

5. If there were no spouse or children, • the entire estate goes to parents or surviving parent of the deceased. • if parents have predeceased, siblings of the deceased will share the estate equally. • children of a deceased sibling will receive the share of their parent and split it equally among themselves. • If only nieces and nephews of the deceased survive, they share equally

6. If no lawful heirs survive, the entire estate becomes property of the Province of Ontario.

Estate planning is a critical component of a family’s financial plan. As a valued member of FirstOntario, you have access to our team of highly qualified Wealth Advisors at no cost or obligation. They are here to help you develop a plan to achieve your financial goals, dreams and objectives. Please give them a call today. You will be glad you did!

Sincerely,

Ejaz NadeemManaging DirectorFirstOntario Investments

Contact a Wealth Advisor todayC. Janine Grice, CFP Hamilton RegionInvestment Advisor905-388-7296 Carolyn Humby, CFP, FMA Niagara RegionInvestment Advisor905-988-3562 David Smith, PFP Hamilton RegionInvestment Advisor905-538-5324

Jim Trueland, CFA Halton RegionInvestment Advisor289-288-0038

Wade Dempsey, CFP, RHU Niagara RegionInsurance & Estate Planning Specialist905-685-1609

Philippe Hamon, CHS Hamilton & Halton RegionInsurance & Estate Planning Specialist905-574-5637

WealthManagement

Mutual funds are offered through Credential Asset Management Inc. and mutual funds and other securities are offered through Credential Securities Inc. and Credential Direct®, a division of Credential Securities Inc., which operates as a separate business unit. Credential Securities Inc. is a Member of the Canadian Investor Protection Fund. Credential Financial Strategies Inc. offers financial planning, life insurance and investments to members of credit unions and their communities. These companies are members of Credential Financial Inc.

Ejaz Nadeem, MA, CFP, CLUManaging Director,FirstOntario Investments