R o s e n o r t C r e d i t U n i o n

RCU001

R o s e n o r t C r e d i t U n i o n

RCU

2015 ANNUAL REPORT

W H AT A C R E D I T U N I O N WA S M E A N T TO B E

ROSENORT CREDIT UNION LIMITEDSummary Statement of Comprehensive Income

For the year ended September 30 2015 2014

RevenueInterest on loans to members $ 9,568,956 $ 8,680,192Investment income

Liquidity deposits 598,235 683,696Debentures and shares 312,948 312,519

10,480,139 9,676,407

Cost of FundsInterest paid to members 5,518,141 5,029,228Interest on borrowings 98,029 69,789

5,616,170 5,099,017

Gross financial margin 4,863,969 4,577,390

Operating ExpensesPersonnel 1,488,846 1,450,394Administrative 582,710 655,863Occupancy 284,740 269,936Members' security 278,100 282,231Organizational 175,964 166,211Distribution to members 24,120 21,068

Gross operating expenses 2,834,480 2,845,703

Less other income 750,599 628,927

2,083,881 2,216,776

Gross operating income 2,780,088 2,360,614

Provision for (recovery of) impaired loans (71) 1,784

Income before income taxes 2,780,159 2,358,830

Provision for Income TaxesCurrent 392,976 308,321Deferred (18,662) (17,394)

374,314 290,927

Net income for the year 2,405,845 2,067,903

Other Comprehensive Income, Net of TaxChange in unrealized gains on available-for-sale investments 16,661 110,694

Total comprehensive income for the year $ 2,422,506 $ 2,178,597

The accompanying notes are an integral part of these summary financial statements.

ROSENORT CREDIT UNION LIMITEDSummary Statement of Changes in Members' Equity

For the year ended September 30, 2015

AccumulatedOther

ComprehensiveIncome

Provision for Issue

of Surplus Shares

Provision for Issue

ofPreference

SharesMembers'

SharesRetainedEarnings Total

Balance at September 30, 2013 $ 21,301 $ 71,657 $ - $ 3,027,684 $ 10,653,129 $ 13,773,771

Net income for the year - - - - 2,067,903 2,067,903

Distributions to members - 69,327 24,873 - (64,356) 29,844

Issue of members' shares - (70,979) - 1,482,439 - 1,411,460

Redemption of members' shares - - - (164,669) - (164,669)

Change in unrealized gains on available-for-sale investments 110,694 - - - - 110,694

Transfer from liabilities - - - (489,411) - (489,411)

Balance at September 30, 2014 $ 131,995 $ 70,005 $ 24,873 $ 3,856,043 $ 12,656,676 $ 16,739,592

Net income for the year - - - - 2,405,845 2,405,845

Distributions to members - 67,324 102,163 - (127,923) 41,564

Issue of members' shares - (70,005) (24,873) 2,205,442 - 2,110,564

Redemption of members' shares - - - (220,723) - (220,723)

Change in unrealized gains onavailable-for-sale investments 16,661 - - - - 16,661

Transfer to liabilities - - - (169,748) - (169,748)

Balance at September 30, 2015 $ 148,656 $ 67,324 $ 102,163 $ 5,671,014 $ 14,934,598 $ 20,923,755

The accompanying notes are an integral part of these summary financial statements.

ROSENORT CREDIT UNION LIMITEDSummary Statement of Cash Flows

For the year ended September 30 2015 2014

Cash Flows from Operating ActivitiesNet income for the year $ 2,405,845 $ 2,067,903Adjustments for

Interest and investment revenue (10,480,139) (9,676,407)Interest expense 5,616,170 5,099,017Depreciation expense 164,891 161,730Provision for (recovery of) impaired loans (71) 1,784Gain on disposal of property, plant and equipment - (1,211)Deferred taxes (18,662) (17,394)

(2,311,966) (2,364,578)

Change in other assets and liabilities (154,783) 322,861Change in income taxes payable 286,122 245,777

131,339 568,638Changes in member activities, net

Change in loans to members (12,720,764) (48,426,159)Change in members' deposits 44,992,919 19,248,210

32,272,155 (29,177,949)Cash flows related to interest, dividends, and income taxes

Interest received on loans to members 9,625,710 8,420,760Interest received on investments 903,540 1,038,542Interest paid on members' deposits (5,087,850) (4,690,187)Interest paid on borrowings (98,029) (69,789)Income taxes paid (290,170) (192,697)

5,053,201 4,506,629

Total cash flows from operating activities 35,144,729 (26,467,260)

Cash Flows from Investing ActivitiesDisposal of property, plant and equipment - 2,105Redemption (purchase) in investments (252,955) 508,244Purchase of property, plant and equipment (59,526) (185,188)

Total cash flows from investing activities (312,481) 325,161

Cash Flows from Financing ActivitiesIssue of common and surplus shares 2,134,684 1,432,528Redemption of common and surplus shares (220,723) (164,669)

Total cash flows from financing activities 1,913,961 1,267,859

Net increase (decrease) in cash and cash equivalents 36,746,209 (24,874,240)

Cash and cash equivalents, beginning of year 12,120,807 36,995,047

Cash and cash equivalents, end of year $ 48,867,016 $ 12,120,807

Comprised of the followingFunds on hand and on deposit $ 9,867,016 $ 5,031,902Credit Union Central of Manitoba deposits 39,000,000 19,000,000Credit Union Central of Manitoba borrowings - (11,911,095)

$ 48,867,016 $ 12,120,807

The accompanying notes are an integral part of these summary financial statements.

ROSENORT CREDIT UNION LIMITEDNotes to Summary Financial Statements

For the year ended September 30, 2015

1. Basis of Presentation

Management is responsible for the preparation of summary financial statements. The summarypresented includes only the summary balance sheet and the summary statement of comprehensiveincome, summary statement of changes in members' equity and summary statement of cash flows. Itdoes not include any other schedules or the notes to the financial statements. The summary balancesheet and summary statement of comprehensive income, summary statement of changes inmembers' equity and summary statement of cash flows are presented in the same detail as theaudited financial statements except the note referencing has been removed.

Copies of the September 30, 2015 audited financial statements are available at the Credit Union'shead office at 23 Main Street, Rosenort, Manitoba.

2. Compliance with Minimum Capital and Liquidity Requirements

The Credit Union is in compliance with the capital and liquidity reserve requirements at September30, 2015 established by the Regulations to The Credit Unions and Caisses Populaires Act ofManitoba.

Readers of the summary financial statements are advised that in order to appropriately interpret theCredit Union's capital and liquidity, the reader must refer to the audited financial statements includingnotes for the year ended September 30, 2015, which contain the information detailing thecalculations.

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R o s e n o r t C r e d i t U n i o n

RCU001

R o s e n o r t C r e d i t U n i o n

RCU

2015 ANNUAL REPORT

W H AT A C R E D I T U N I O N WA S M E A N T TO B E