The Weyburn Credit Union is looking optimistically to the coming year after they weathered a couple of tough economic years, those attending their annual meeting heard on Thursday evening.
“2017 was an exciting year full of change,” said CEO Don Shumlich, recalling the impact to the community when the price of oil plummeted in 2014-15. The Credit Union began a market research plan and set out a three-year plan to change how they operated and related to their customers. The plan began in 2016 and will finish at the end of 2018.
“Everything was due for a refresh. Now at the beginning of 2018, I’m excited about the future, as indications are that the plan is working,” said Shumlich, pointing out that the Credit Union won three national marketing awards, the first time they had ever won these.
He pointed out that members of the management team as well as board members have received training and obtained designations, showing they all have a high level of commitment, in addition to a very low turn-over rate of staff members. “We have a team in place that I have so much confidence in,” he said.
In going over the financial report for the past year, chief financial officer Krista Hayward said the total assets under administration by the credit union is $735 million, which is up from $719 million the year before, a growth of 2.14 per cent.
This includes the off balance sheet portion of funds, made up of wealth management assets, totaling $233 million, up 8.63 per cent from the prior year, and on-book assets of $501 million, a decline of 0.63 per cent.
A factor for the decline was a decrease in deposit growth, as members have been using their savings accounts, or are investing in off-balance sheet wealth management offerings while interest rates are remaining low.
While deposits were down by 1.15 per cent, Hayward noted the first three months of 2018 are showing a strong recovery so far.
Loans showed a strong increase at $413 million, which is up by 5.69 per cent over 2016, when loans totaled $391 million. The loans portfolio makes up 82.6 per cent of total assets as of the end of 2017.
Consumer mortgages make up a large portion of the loan portfolio, about 35 per cent or $144 million, and of these, about 40 per cent are insured residential mortgages, and the balance are uninsured. Loan delinquency was down in the past year, as delinquency greater than 90 days was 0.06 per cent, down from 0.36 per cent the year before. The credit union held one foreclosed property at year-end worth $548,818, and no repossessed properties.
The total interest revenue for 2017 was $16.5 million, up from $16.1 million the year before, with low interest rates contributing to the lower revenue, and total operating expenses for 2017 increased $282,216 or 2.5 per cent from 2016. Personnel was the largest expense at $7.75 million and general business expenses totaled $2.5 million.
The low interest rate combined with the slowdown in the local economy led to a decrease in total comprehensive income, with the income totaling $2.29 million, down from $2.65 million in 2016.
The Weyburn Credit Union did not make rebate and bonus payments for the 2017 fiscal year to allow the institution to maintain capital requirements. According to the annual report, the lack of rebates and bonus payment is temporary, and the patronage program is expected to resume once the board determines it is prudent to do so.
Longtime board member Rob Ror retired from the board, and former board member Harry Plemel received the Order of Merit from the Saskatchewan Credit Union, for his significant contribution to the Saskatchewan Credit Union system.
In board elections for 2018, incumbents Gary Beck of Lang and Kelly Linnell were elected to new terms, and Larry Heggs and Duane Walkeden were elected as new first-time board members for the Credit Union.
