MISSION VISION - Entegra · 2020-06-01 · MISSION Achieve excellence in providing quality...

2019 ANNUAL REPORT

MISSIONAchieve excellence in providing quality financial and related services in anticipation of, and in response to, the changing needs of our members, in a manner that benefits all.

VISIONTo be a vibrant organization that creates prosperity while delivering value to its stakeholders.

VALUESPEOPLEThe members who trust us with their financial success.

STRENGTHProviding growth and opportunity through exceptional services and products.

VALUESThe guiding principles that underscore our dedication to our members, making the Entegra experience comfortable, convenient and profitable.

INTEGRITYTo operate with integrity and respect resulting in attentive, solution-focused banking innovations.

At Entegra, we believe that the definition of success is multifaceted and encompasses many things. No one factor stands alone; rather, it is when they come together as a unit that they are the strongest.

Last year we worked diligently to incorporate our pillars of success into everything we do. In order to continue to evolve as an organization, we must Improve, Diversify, Develop, Progress, and Grow. We are dedicated to making positive changes within our credit union that align with these pillars while preserving the values and beliefs that are the foundation of this organization.

When it comes to success, there is not a singular finish line. With one accomplishment comes the opportunity to make the next one even better. As we move into our 60th year, we will continue to aim higher and go further for our members.

At Entegra, we belong together.

THE PILLARS OF SUCCESS

2019 can be defined as a year of transition for Entegra, one marked by change, achievement, and momentum. My first year as your CEO was rewarding in many respects; while it became apparent that much had changed since I departed in 2016, it was comforting to realize that our core strengths continued to grow even stronger over time.

Entegra’s foundation is built on the strength of our relationships with our members, and this commitment remains our number one priorityyear-over-year. Our team of passionate professionals is exceptional – they are dedicated and focused on best serving our members and helping them achieve their financial goals.

From a financial perspective, in 2019, our deposits grew by 5.56%, and loans increased by 3.66%, achieving our objective of moderate growth. When reviewing our profitability, expenses were well managed as we adapted to a decrease in revenues during the year. As a result, net income was $1.396 million, which exceeded our budget expectations but did result in a reduction from 2018 levels.

Operationally, we were able to achieve numerous initiatives guided by our commitment to creating outstanding member experiences. In July we expanded our digital footprint with the launch of our Online Account Opening services. New members can join Entegra at their convenience from our website, and existing members can open additional accounts. We also launched our first member satisfaction survey at the end of the year. We were pleased to receive an 89% satisfaction score and positive feedback on how we can enhance the member experience even more as we move forward into 2020.

Employee development was a top priority for the Executive Management team this year. We engaged consistently with our employees through satisfaction surveys, focus groups, committees, and increased investment in training and development. 88% of our employees formulated development plans in 2019 as part of our commitment to continual improvement. This momentum will carry forward into 2020 and will continue to be a high priority.

Entegra is proud to support the growth and development of our communities by helping to give back to non-profits, charitable organizations, and community groups in the neighbourhoods we serve. 93% of staff volunteered their time to support a variety of community initiatives throughout 2019. In addition to their time, our teams also made financial contributions to various local charities and causes through our Jeans for Greens initiative.

These represent just a small fraction of our many achievements in 2019. I am so proud of our employees for their passion and commitment to member service, the leadership of our Board and management, and grateful for the trust of our members. We will continue our pursuit to build lasting relationships, one member at a time, based on providing exceptional service and sound advice tailored to your financial needs.

Because it’s not just about where you bank; it’s about where you belong.

BRENT TURMANCHIEF EXECUTIVE OFFICER

CEO’S REPORT

As your Board of Directors, it is our role to provide organizational input and guidance, ensuring the day-to-day business conducted by Entegra is in line with the corporate strategy of the Credit Union. We take on the role of providing insight and leadership to the Executive Management team with great care and sincerity. By relying on the strong governance principles that our Board has implemented, we ultimately ensure accountability to our stakeholders – our members. A significant undertaking for us last year was the hiring and acclamation of our new CEO, Brent Turman. For those who do not know, Brent served as the Chief Financial Officer for Entegra from 1998 through 2016 when he moved to a new role within the credit union system. The decision to have a familiar face back to lead Entegra into a new decade and era was made carefully, and our confidence in Brent has only grown since he rejoined Entegra last April. Another major initiative for the Board was to work alongside the Executive Management team to develop and implement a five-year Strategic Plan. While reviewing and finalizing our direction, the Board’s objective was to ensure that going forward, all organizational decisions will be made through the lens of this plan and weighed against the strategic direction of the Credit Union. Much time, attention, and detail went into the development of our five-year Strategic Plan, which focuses on the key themes of Profitability and Growth, Technology, and Organizational Culture.

Throughout 2019, the Board systematically reviewed the governance practices and framework for consistency, efficiency, and value to ensure alignment with our new Strategic Plan. Our governance policies encompass the practices through which Entegra manages our business and works to meet our financial, operational, and strategic objectives to achieve long-term sustainability. Going forward, we will continue to review and propose new governing policies to ensure that our governance framework is receptive to the evolving needs of the Credit Union. As we begin to move through 2020, the COVID-19 pandemic has provided us with a new set of challenges in serving our members and protecting their financial wellbeing. On behalf of the Board of Directors, I want to offer our sincere thanks to our dedicated employees and Executive Management team for their unwavering commitment to providing our members with the service and support needed at this unprecedented time, while prioritizing the safety and security of all. To my fellow Board members, thank you for your leadership and steadfast dedication to the success of the Credit Union. And lastly, to our members. Thank you for the trust and support you place in us by choosing Entegra as your financial partner, especially as we begin to navigate this new normal together. We will continue to work together to support your financial wellbeing and improve the overall banking experience.

APEE PANCHHIPRESIDENT

PRESIDENT’S REPORT

BOARD OF DIRECTORS

DON JOHALVICE-PRESIDENT

ED KOLODZIEJSECRETARY

ED PLEZIADIRECTOR

DIANE LEE SOUSADIRECTOR

SANJIV GARGDIRECTOR

EXECUTIVE MANAGEMENT

APEE PANCHHIPRESIDENT

KERRI ROBERTSONCHIEF OPERATIONS OFFICER

ERNIE REMILLARDCHIEF FINANCIAL OFFICER

BRENT TURMANCHIEF EXECUTIVE OFFICER

IMPROVINGThe strength of an organization lies in its ability to improve: to enhance the quality, value, and success of their offerings. It’s crucial for us to weigh every decision we make against its ability to improve the profitability of our Credit Union while continuing to provide our members with an exceptional financial experience.

To improve is to grow, learn and adjust course as necessary; to celebrate our accomplishments and then set the bar even higher. We want to improve consistently year-over-year, and 2019 was no exception. With the support of our members, the Board of Directors, and our staff, we were able to continue to grow and adapt to a changing financial market without compromising the values that got us here.

60YEARS OF SERVICE

16kMEMBERS

$778mASSETS UNDER ADMINISTRATION

3.66%LOAN GROWTH

4.98%ASSET GROWTH

5.56%DEPOSIT GROWTH

HIGHLIGHTS

DEVELOPINGWe believe in the power of our people. Our capacity to provide our members with an exceptional financial experience starts with our staff; that’s why we’re committed to giving every Entegra employee the right tools to help them succeed.

Last year we made development a priority company-wide. Our teams focused on coaching, growth and empowerment for all staff, no matter where they sit in the organization. We took the time to reflect upon what it means to be a part of the Entegra team now, what we want it to look like in the future, and how we will work together to strengthen a corporate culture attuned to the values of our Credit Union. We implemented numerous initiatives at every level of this organization to ensure that we continue to evolve and grow together, and more specifically, to better serve our members.

DEVELOPMENT PLANSDevelopment plans allow our employees to take an active role in their progression and growth with the Credit Union and their careers in the long-term.

100% of leaders underwent leadership training

88%of staff created a personal development plan

EMPLOYEE DEVELOPMENT

LEADERSHIP TRAINING

THE PARKING LOT

In 2019, the Parking Lot, an employee-led initiative whose objective is to evaluate, analyze, and implement ideas brought forward by fellow employees, was introduced. The committee is made up of seven employees from varying levels of the organization, who each bring a diverse set of skills, experience, and knowledge to the table.

The Parking Lot executed two significant projects last year: the elimination of one-time-use plastic water bottles in-branch, and the implementation of Entegra’s first Shred Day event.

By replacing disposable bottles at our branches with refillable water coolers and recyclable cups, we have eliminated 7,500 bottles distributed annually.

Reduce our carbon footprint by lowering emissions from deliveries.

Ensured that 1,000 lbs of paper were securely recycled.

PAYING IT FORWARD

In May, Entegra was selected to participate in CDF Canada’s Women’s Mentorship Program. This popular training program provides female managers of overseas financial co-operatives with a unique opportunity for professional development. We had the honour of welcoming Evelyn Olunja, Head of Marketing and Customer Service at United Nations Savings and Credit Co-operative Society in Nairobi, Kenya, to our Credit Union.

While in Winnipeg, women in a variety of roles across our organization spent time with Evelyn to share ideas, experiences, and challenges. Said best by Evelyn, “Together we looked to uncover solutions and equip ourselves with the necessary knowledge to effectively and efficiently make a positive difference in individual members’ lives while growing the Co-operative Movement.”

CELEBRATING OUR TEAM

An important aspect of developing as a group is recognizing our areas of strength and celebrating our successes. In addition to our long-standing service awards, last fall, we initiated a new program, Entegrity in Action, to acknowledge staff accomplishments in relation to teamwork, initiative, and member service. Staff are nominated by their fellow employees, and the recipients are selected by Executive Management.

JESSICA APLINCOMMERCIAL CREDIT ASSISTANT

5-Year Service Award

SERVICE AWARD RECIPIENTS

JASON BENISHI.T. SYSTEMS SPECIALIST


GRIMOALDA FERREIRATEAM LEAD - LENDING ADMINISTRATION


KARL JANTZDIRECTOR, BRANCH OPERATIONS


LANA OUGHTONFINANCIAL SERVICES OFFICER


KERRIE DOBSONDIRECTOR, CORPORATE SERVICES


JANINA MISLOWEINTERNAL AUDITOR


KATHY KLASSENDEPOSIT ADMINISTRATION SUPERVISOR

Accomplishment: Teamwork

ENTEGRITY IN ACTION RECIPIENTS

LACEY BERGENSUPPORT SERVICES CLERK


DELANEY ELLISMANAGER, HUMAN RESOURCES


IMRIN PANDHERDEPOSIT SERVICES REPRESENTATIVE

Accomplishment: Member Service

PROGRESSINGAn essential part of progressing as an organization is the capacity to remain relevant in an ever-changing world. With technology changing every day, being able to continuously develop and deliver new products and services that enhance the member experience and help staff to be more efficient and productive in their jobs is crucial.

It is innovation, member-focus, and forward-thinking that have enabled us to deliver solutions that work for our employees and members. This year we introduced several technological updates, both internally and member-facing, to simplify how banking gets done, and we remain committed to enhancing our online solutions going forward.

ONLINE ACCOUNT OPENING

With the launch of Online Account Opening, members are now able to open a variety of accounts, including chequing, savings, and investment products, online. In less than 10 minutes, members can open anything they need on one application, from anywhere, and at any time. It also opens new memberships, so anyone can become an Entegra member easily, quickly, and conveniently.

FEATURES

Digital document signing

e-Transfer funding option

Online identity verification

Alphanumeric passwords for Online Banking

Incident management software for Support

Departments introduced

Online voting motion passed for 2020 Board of Directors elections

Autopay for Entegra Visa

Online Account Opening launched for Entegra

Launch of online Employee Performance

Management system

Apple Pay for Entegra Visa

Contact the CEO portal added to

website

New digital form builder for company Intranet

Approval of new websites for Entegra and Implicity

Bill payment nicknames enabled in Online Banking

NEW TECHNOLOGY AND ENHANCEMENTS

DIVERSIFYINGBanking isn’t the only thing we do. In fact, we think that it is equally important to contribute to the growth and development of our communities by reinvesting our profits into organizations and events that have a positive impact on our city.

Aligning with our co-operative roots, we recognize the value in diversifying our profits by using them to make improvements that benefit us all, instead of the bottom-line. Through our community support initiatives, our staff have the opportunity to contribute to groups they care about through volunteering, donations, and event participation. It also allows us to connect with neighbourhoods outside our trade area, by partnering with community groups and teams and continuing to support organizations that are important to our members, too.

24 Events attended

34Organizations supported

HIGHLIGHTS

362 Total volunteer hours

93% Staff volunteer rate

$35,744Donated

JEANS FOR GREENS

2019 was the first full year of our Jeans for Greens initiative, wherein staff donate $1.00 a week to wear jeans to work on Fridays, and Entegra matches the staff contribution dollar-to-dollar. Quarterly, we give all the funds to a local charity or organization selected by staff. Staff have also organized additional fundraising initiatives to add to the final amount of our donation, such as our community garage sale in support of the Children’s Wish Foundation.

ENTEGRA CREDIT UNION SCHOLARSHIP

The opportunity to obtain post-secondary education is an investment in the future of our youth. Each year, we are proud to provide $1,000 to each of the school divisions surrounding our branches: River East Transcona, Seven Oaks, and Louis Riel. In 2019, we awarded nine students the Entegra Credit Union Scholarship.

A total of $3,000 was awarded to the 2019 graduates.

We partnered with 3 high schools in our neighbourhood: J. H. Bruns, West Kildonan, and Miles Macdonell Collegiate.

9 students were recognized for their achievements.

$3,135Children’s Wish Foundation

$10,460raised through

Jeans for Greens

$3,484Arthritis Society

$1,790Lighthouse Mission

$2,051Winnipeg Pet Rescue

GROWINGTo grow as an organization can mean a multitude of things: expanding our offerings, increasing our membership, growing our assets.

While all those things are true, for us, the most important form of growth comes from watching our members reach their financial goals. Because, after all, the growth and development of our Credit Union is a direct reflection of the financial growth of our members.

MEMBER SURVEY

In December, we completed our first-ever digital member survey to help us get a better understanding of our strengths and to uncover areas of improvement. Communication avenues like this are vital to Entegra’s growth; they ensure our members are satisfied and allow us to obtain invaluable feedback we can use to guide decisions moving forward. As these results will be used as our benchmark for future surveys, we are pleased to report that we received almost 500 responses and would like to take this opportunity to thank all our members who took the time to complete our survey.

Survey Highlights

90%Product and service

offerings meet needs

86%Likely to

refer Entegra

89%Overall

satisfaction

GROWING WEALTH

With the launch of our expanded Wealth Management division last year, we are now able to offer even more in-depth guidance and advice to build personalized wealth strategies and investment plans.

HELDER SOUSA, PFPINVESTMENT SPECIALIST

Congratulations, Helder!

In September, our Investment Specialist, Helder Sousa, successfully obtained his Personal Financial Planning Designation. A lot of time, effort, and hard work are required to complete the PFP, and we are very proud of Helder for achieving this milestone.

BUILDING RELATIONSHIPS

Businesses and organizations based in Manitoba help to make our communities thrive. That is why the relationships we build with our Commercial members are so important to us. It is these local businesses that are making our communities a better place, and when an organization supports us, we want to support them too!

Our relationship with Ringette Manitoba started back in 2015 when they first became a business member of ours. Fast forward to today, and we have sponsored several initiatives that Ringette Manitoba was able to pass on to its members.

$650Contributed toward ringette registration fees

11Ringette events attended

380Ringette sticks donated

LOOKING FORWARDThere have been many chapters in the Entegra story. Our humble beginning, operating out of a single office in a church basement on Selkirk Avenue, expanding to two, three, and then four branches, a name change, rebrand, and the launch of our online division, Implicity Financial. Throughout our journey, the one constant has always been our dedication to building a lasting relationship with every single member.

We’ve grown a lot over the years, and we learned a lot more. Through all the changes and improvements made, our vision was to create a thriving organization that provides exceptional services and products that are accessible to everyone. We are excited to celebrate 60 years of Entegra Credit Union in 2020 and to continue to introduce new and innovative ways to improve the financial experience.

Investment in Financial Planning Software

Online Voting for Board of Director Elections

New Websites for Entegra and Implicity

COMING IN 2020

REPORT OF THE INDEPENDENT AUDITOR ON THE SUMMARY CONSOLIDATED FINANCIAL STATEMENTS

To the Members of Entegra Credit Union Limited:

The summary consolidated financial statements, which comprise the summary consolidated statement of financial position as at December 31, 2019, and the summary consolidated statements of net income and comprehensive income and changes in members’ equity for the year then ended, and related notes, are derived from the audited consolidated financial statements of Entegra Credit Union Limited (the “Credit Union”) for the year ended December 31, 2019.

In our opinion, the accompanying summary consolidated financial statements are a fair summary of the audited consolidated financial statements, on the basis described in Note 1 to the summary consolidated financial statements.

Summary Consolidated Financial StatementsThe summary consolidated financial statements do not contain all the disclosures required by International Financial Reporting Standards. Reading the summary consolidated financial statements and the auditor’s report thereon, therefore, is not a substitute for reading the audited consolidated financial statements and the auditor’s report thereon.

The Audited Consolidated Financial Statements and Our Report ThereonWe expressed an unmodified audit opinion on the audited consolidated financial statements in our report dated March 23, 2020.

Management’s Responsibility for the Summary Consolidated Financial StatementsManagement is responsible for the preparation of the summary consolidated financial statements on the basis described in Note 1 to the summary consolidated financial statements.

Auditor’s ResponsibilityOur responsibility is to express an opinion on whether the summary consolidated financial statements are a fair summary of the audited consolidated financial statements based on our procedures, which were conducted in accordance with Canadian Auditing Standards (CAS) 810, Engagements to Report on Summary Financial Statements.

Winnipeg, ManitobaMarch 23, 2020 Chartered Professional Accountants

FINANCIAL REPORTFOR THE YEAR ENDED DECEMBER 2019

A FULL SET OF AUDITED FINANCIAL STATEMENTS IS AVAILABLE FROM THE CREDIT UNION

ENTEGRA CREDIT UNION

Summary Consolidated Statement of Financial PositionAS AT DECEMBER 31, 2019


2019 2018

ASSETS

Funds on hand and on deposit 9,428,757 8,542,943

Investments 64,492,303 54,875,553

Members’ loans 610,800,446 589,243,833

Other assets 1,828,224 1,145,322

Property, equipment and intangible assets 17,224,866 16,595,090

703,774,596 670,402,741

LIABILITIES

Members’ savings and deposits 605,328,413 573,443,054

Accounts payable and other liabilities 7,960,478 5,903,815

Securitization liabilities 48,799,790 50,092,704

Income tax payable 4,165 112,610

Deferred income tax liability 477,000 450,000

662,569,846 630,002,183

MEMBERS’ EQUITY

Members’ shares 9,545,976 9,878,280

Retained surplus 31,658,774 30,522,278

41,204,750 40,400,558

703,774,596 670,402,741

Approved on behalf of the Board of Directors

Director Director

signed “Apee Panchhi” signed “Ed Kolodziej”


Summary Consolidated Statement of Net Income and Comprehensive IncomeFOR THE YEAR ENDED DECEMBER 31, 2019


2019 2018

INTEREST

Interest from members’ loans 22,153,324 20,672,517

Investment income 2,228,552 1,666,366

24,381,876 22,338,883

COST OF FUNDS

Interest paid on members’ savings and deposits 13,860,688 11,785,307

Other interest expense 1,251,918 790,188

15,112,606 12,575,495

FINANCIAL MARGIN 9,269,270 9,763,388

OPERATING EXPENSES

Administration 2,555,045 2,476,062

Member security 518,408 507,986

Occupancy 1,576,119 1,593,158

Organizational 325,725 353,515

Personnel 5,486,752 5,317,721

GROSS OPERATING EXPENSES 10,462,049 10,248,442

Other income (3,121,676) (3,229,769)

NET OPERATING EXPENSES 7,340,373 7,018,673

INCOME FROM OPERATIONS BEFORE PROVISION FOR LOAN LOSSES AND INCOME TAXES 1,928,897 2,744,715

Provision for loan losses (159,901) (403,127)

INCOME BEFORE PROVISION FOR INCOME TAXES 1,768,996 2,341,588

Current 346,000 377,000

Deferred 27,000 147,000

PROVISION FOR INCOME TAXES 373,000 524,000

NET INCOME AND COMPREHENSIVE INCOME FOR THE YEAR 1,395,996 1,817,588


Summary Consolidated Statement of Changes in Members’ EquityFOR THE YEAR ENDED DECEMBER 31, 2019

MEMBERS’ SHARES

RETAINED SURPLUS

TOTAL EQUITY

BALANCE, DECEMBER 31, 2017 10,216,925 29,024,092 39,241,017

Net income and comprehensive income for the year

-- 1,817,588 1,817,588

Dividends declared, net of tax recovery of $55,000 -- (319,402) (319,402)

Issuance of member shares 782,726 -- 782,726

Redemption of member shares (1,121,371) -- (1,121,371)


Net income and comprehensive income for the year

-- 1,395,996 1,395,996

Dividends declared, net of tax recovery of $55,000 -- (295,500) (295,500)

Issuance of member shares 146,746 -- 146,746

Redemption of member shares (479,050) -- (479,050)




NOTES TO THE SUMMARY CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2019

1. Basis of the summary consolidated financial statements Management has prepared the summary consolidated financial statements from the Credit Union’s December 31, 2019, audited consolidated financial statements which can be obtained at the Credit Union. The cash flow statement and detailed notes included in the audited consolidated financial statements are not included in these summary consolidated financial statements.

2. Compliance with minimum capital and liquidity requirements The Credit Union is in compliance with the capital and liquidity reserve requirements at December 31, 2019, established by the Regulations to The Credit Unions and Caisses Populaires Act of Manitoba.

Readers of the summary consolidated financial statements are advised that in order to appropriately interpret the Credit Union’s capital and liquidity, the reader must refer to the audited consolidated financial statements and notes for the year ended December 31, 2019, which contain the information detailing the calculation.


Disraeli Branch121 Disraeli FreewayWinnipeg, MBCanada R3B 2Z5

Gateway Branch1105 Gateway Road Winnipeg, MBCanada R2G 0A5

Jefferson Branch1335 Jefferson AvenueWinnipeg, MBCanada R2P 1S7

St. Anne’s Branch540 St. Anne’s RoadWinnipeg, MBCanada R2M 5R7

204.949.7744 entegra.ca

MISSION VISION - Entegra · 2020-06-01 · MISSION Achieve excellence in providing quality...

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