AGM 2019 Highlights3

Stock Trading Ideas 2

Staff Awards3

Win a Trip to Bangkok!4

Holiday Hours4

Staff Notes4

PASS IT ONNEWS & MORE FROM YOUR CREDIT UNION

Taking care of our own

Summer 2019

MANAGING YOUR MORTGAGE Tips to Make Informed Home Financing Decisions

2. Evaluate the impact of an increasing interest rate on your monthly payments.Over the past few years, interest rates have been at historical lows. While this helps to make homeownership affordable today, an increase in interest rates could have a significant impact on your future monthly housing costs. For instance, homeowners renewing a mortgage of $250,000 with a 5% interest rate could see an increase in payments of $300 per month if rates were to increase by 2%. Evaluating the impact of increasing interest rates on your monthly payment today may help you avoid financial difficulties in the future.

3. Plan to be mortgage free faster and create a “cushion” in case of unforeseen financial difficulties.There are a several ways to pay your mortgage down sooner, save money, and create some breathing room should you face unforeseen financial difficulties. These include making accelerated weekly or biweekly payments, taking advantage of pre-payment privileges such as making lump sum payments to your mortgage principal, and increasing your regular payment amount. For example, for a $250,000 mortgage (5% interest rate and 25-year amortization) choosing an accelerated bi-weekly payment over a bi-weekly regular payment ($727 vs. $670) allows you to pay down your mortgage more quickly. You could pay off the mortgage in just over 21 years and reduce your interest costs by almost $30,000!

4. Ask for help if you have trouble making payments.When unforeseen financial circumstances impact your ability to make regular mortgage payments, it’s important for you to take quick action. With early intervention, you can work together with your Financial Services Officer to find a solution to your financial difficulties. Your Financial Services Officer wants to establish and maintain a positive relationship with you over the long term and is fully trained and equipped with the tools to help you deal with the temporary financial setbacks that you may be facing.

Whether you are buying a new home or refinancing an existing home, it’s important to make an informed decision about what you can comfortably afford over the long term. Take the time to plan and review your mortgage options, terms and conditions and prepare yourself for managing your mortgage now and into the future.

When financing a home, the following considerations can help you save money and provide for greater economic stability in the event of financial challenges down the road such as lower income levels, increased monthly expenses and/or higher interest rates.

1. Consider a lesser mortgage amount than the maximum you can afford.Mortgage Professionals use two simple calculations to determine the maximum mortgage that you can afford. The first calculation, your Gross Debt Service Ratio, assumes that your monthly housing costs (mortgage principal and interest, taxes and heating expenses and half of the monthly condo fee if you are purchasing a condominium) should not be more than 35% of your gross monthly income. The second calculation requires that your entire monthly debt load (including housing costs and other debts such as car loans and credit card payments) not exceed more than 42% of your gross monthly income. This figure is your Total Debt Service ratio.

While these ratios help to determine the maximum mortgage and payment that you can afford, obtaining home financing at these levels may not leave you with much room to comfortably deal with any unexpected changes in your monthly budget. Taking a smaller mortgage can help to ensure that your monthly housing costs remain within your means.

According to a recent report released by the Canadian Credit Union Association there are just over 3.1 million Home Equity Lines of Credit (HELOCs) in Canada, two-thirds of which have an outstanding debt with an average balance of $97,000. What the report identified was that the understanding of HELOCs, even among borrowers, is limited and that most holders aren’t actually using them correctly.

Younger Canadian HELOC borrowers are more likely to make interest-only payments, use HELOCs to meet payments on other debts, and would struggle if their payment increased by $100 per month.

In December 2018, Statistics Canada reported that what Canadians owe compared to their income inched higher. For every dollar of household disposable income, Canadians owed nearly $1.78 in credit market debt, including consumer credit, mortgages, and non-mortgage loans. More data revealed in the report indicated that nearly half of HELOCs (49 percent) were used for home renovations, while debt consolidation was only 22 percent.

While we don’t want to discourage our members from acquiring a home equity line of credit, we do want to ensure you are well educated on the conditions, risks and smart borrowing strategies you can and should be putting in place if you choose to use one.

The Police Credit Union’s Meritline is a great low cost lending option our members can take advantage of to help them finance their goals. Understanding how to use this product so that it is balanced within your complete financial picture is where we come in.

Our knowledgeable Financial Service Officers are here to help guide you every step of the way. Talk to us today!

MAKING SENSE OF HELOCs

The Police Credit Union offers you a wealth of housing information and tools to assist you in making informed homeownership and financing decisions. Visit our website for calculators or contact your Financial Services Officer – they can help you compare financing and assess what you can comfortably afford.

In 2018 your Board set four strategic goals to be achieved by the end of the year:1. Invest in opportunities to grow the business.2. Increase the number of members who use the servicesoffered by the Credit Union.3. Provide staff with the resources to achieve our goals.4. For the Credit Union to be seen and recognized as an activeand effective partner in the communities we serve.

Success for each goal was measured through the following key performance indicators:Return on average assets • Loan growth • Net income• Gross membership growth • Recruit REWARDS membership• Efficiency ratio • Employee engagement matrix• Strategic initiatives

The board is pleased to report that in 2018 our Credit Union successfully met all of these strategic goals.

Assets grew by 10 percent. Loans increased by 10.4 percent. The Credit Union achieved net income of $672,000.

What this means for our members is that these earnings will be used to continue to build our Credit Union, better our services and improve our overall banking environment.

While other financial institutions continue to charge many fees for their services, The Police Credit Union provides free everyday banking for its REWARDS Members.

In addition, thanks to the excellent work by the entire staff, our Credit Union recorded a gross increase in membership in 2018.

Chair Rod Fraser (re-elected)

Vice-Chair Gary Leitch

Secretary Bob Spafford

Director Stan Colley

Director Mike Sharp

Director George Tucker

Director Geri James (re-elected)

2019 ANNUAL GENERAL MEETING HIGHLIGHTS

BOARD OF DIRECTORS

Outstanding Sales AchievementKatarina Rakic Financial Services Officer (Peel Branch)

Outstanding Sales DevelopmentJeanette WoodMember Services Representative (York Branch)

STA

FF A

WA

RDS 10 YEARS OF SERVICE

Sandra Costanza Accounting Clerk (Corporate Office)

Tamara Pitter Call Centre Representative (Corporate Office)

15 YEARS OF SERVICE

Donna Aleksovski Peel & Halton Branch Manager

Bess Kominos-Estrela Manager of Retail Services (Corporate Office)

30 YEARS OF SERVICE

Susan Van Winckle Financial Services Officer (York Branch)

AN

NIV

ERSA

RY

AWA

RDS

• Total mortgages held by membersincreased by $23 million (10.7%)

• Total mortgages held by membersincreased by $26.2 million (10.7%)

• Overall loans to membersdecreased slightly by$2.9 million or 18.2%

• Deposit balances increasedby $7.9 million or 2.9%

• Tax-Free Savings Accountsclosed the year at $21.4 million

• Term Deposit balances increasedby $2.9 million or 3.1%

• Assets under administrationclosed at $23.4 million

• Total assets increased by8.8% growing to $346.6 million

FINANCIAL HIGHLIGHTS MORE HIGHLIGHTS FROM LAST YEAR

• Last year, 597 new members joined our Credit Union. Seventy-three percent of the new members became REWARDS members.

• The Police Credit Union was once again very active in the policecommunity. We continued to build on our strong relationshipswith our core Police Associations and Police Services, byparticipating in their various sporting and charitable events.

• We focused on new relationships with the various Policing Servicesand Police Associations located in the Golden Horseshoe.

• We opened the doors to our newest branch in Halton Region inJanuary, which provides us with a gateway to additional policing markets in Halton, Hamilton, Niagara, Guelph and Waterloo.

• We introduced a new investment opportunity to our memberswith the launch of our Class B Share Series. We achieved ourmaximum goal by selling $5 million worth of shares in 2018.

• In 2018, 291 new recruits joined The Police Credit Union and214 (73.5%) recruits became REWARDS members.

• We raised our four-year total donation to $33,000 for the OntarioPolice Memorial Foundation based on revenue received throughour Mastercard credit card.

To view the 2018 Annual Report, go to www.tpcu.on.caand click on About Us > Media Centre > Corporate Reports.

Thousands of companies list their shares on North American stock exchanges. The question is, how can you narrow the playing field and identify the ones best suited to your objectives? In thisarticle, we’ll review a few places where you can start hunting for broad investment themes, then take a look at a few of the key tools and resources to help you identify, monitor and evaluate specific stocks.

WHERE TO LOOK FOR BROAD INVESTMENT THEMESEconomics and politics: economic and political trends can have a powerful influence on a company’s performance. Every country’s economy moves through different cycles, from expansion and growth to contraction and recession. Some companies do better at different stages of that cycle. At the same time, major opportunities or challenges for companies can result from government decisions around taxation, interest rates, privatization, minimum wage laws, and so on.

Demographic and social themes and trends: From the rise of China as a major global economy to thewave of retiring and aging baby boomers in Western countries, big picture themes are creating new markets and new demand for goods and services. In energy, healthcare, technology, and other areas, there are major shifts that could drive growth for companies that provide solutions.

Company announcement and industry trends: Financial results, mergers and product launches –these kind of company announcements can drive share prices in the short term and sometimes over the longer term as well. Bad news can push prices down as investors shed their shares, but good news can boost a company’s stock price. As a stock investor, you’ll want to keep tabs on the financial media and watch for developments in the industries and sectors that interest you. You may even want to directly monitor specific companies in order to get news as soon as it’s released.

Analyst picks: Financial analysts continuously update their lists of stars and dogs – stocks they think are agood buy and others they recommend selling. Their reports provide specific insights and opinions into what companies are doing right, what they’re doing wrong, and how that may or may not translate into gains and losses. Analysts aren’t always right, but over time you may find some that trust more than others.

TOOLS AND RESOURCES TO IDENTIFY SPECIFIC COMPANIESQtrade Investor helps you sort through stocks (as well as exchange-traded funds, mutual funds and other securities) to find the ones that are suited to your goals and objectives.

Here are some of the most useful tools and resources:• Screeners allow you to filter stocks using prebuilt screens (such as undervalued stocks or high

dividend yield stocks) or using customized criteria such as sector or market capitalization.• Model portfolios allow you to study the stock picks of professional portfolio managers. You can

replicate the holdings in your own portfolio, or simply use the models to get investment ideas.• Analysts’ recommendations provide well-researched, expert reviews of Canadian and U.S.

investments, including top picks for growth, value and income stocks.• The Morning News Call gives you the day’s top headlines on the latest company, market, business

and economic news. (under Quotes & Market Info, select Market Commentary)• News feeds keep you up-to-date with company earnings and developments, along with market

and industry news from around the world.• The New Issues Centre give you access to IPOs (initial public offerings), so you can be one of the

first to invest in new securities when they start trading. Sign up to receive email notifications.

MONITORING STOCKSTools that allow you to monitor companies you’re considering include:• Real time quotes that allow you to follow companies and market indices.• Watchlists that allow you to create a portfolio of stocks you would like to monitor.• Ability to set alerts to be notified when market events or stock price changes occur.

DUE DILIGENCEWhen it comes time to do your due diligence, Qtrade Investor provides extensive fundamental research data. For any company, you can delve into key performance metrics from its most recent financial statements, along with data on its performance history, ratings, and more – everything you need to evaluate the company and compare it to its peer group.

Online brokerage services are offered through Qtrade Investor, a division of Credential Qtrade Securities Inc., Member of the Canadian Investor Protection Fund.

For more information on Qtrade and how you can get started, contact us at 1.800.561.2557 or visit us online at www.tpcu.on.ca.

FROM THE DESK OF HORST SCHIEBELT...HOW TO DISCOVER STOCK TRADING IDEAS

Best Support Staff (Voted by employees)

Carmencita “Menchie” Canivel-SibugClearing Clerk (Corporate Office)

Roya Ghahremani Payroll Clerk (Corporate Office)

Pictures left to right, with Andy Doak: Katarina Rakic, Top Sales 2018; Jeanette Wood, Sales Development; Roya Ghahremani, Best Support Staff

HOLIDAY HOURS

SEPTEMBERLabour Day | Monday, September 2

OCTOBERThanksgiving | Monday, October 14

JULYCanada Day | Monday, July 1

AUGUSTCivic Holiday | Monday, August 5

TORONTO103 – 105 Gordon Baker RoadToronto, Ontario M2H 3P8

TORONTO COLLEGE101 – 40 College StreetToronto, Ontario M5G 2J3

HALTON2 – 4671 Palladium WayBurlington, Ontario L7M 0W9

DURHAM101B – 3000 Garden StreetWhitby, ON L1R 2G6

PEEL1 – 7725 Kennedy Road SouthBrampton, ON L6W 0B9

YORK7 – 18025 Yonge StreetNewmarket, ON L3Y 8C9 tpcu.on.ca

CORPORATE OFFICE222 – 105 Gordon Baker RoadToronto, Ontario M2H 3P8

general inquiries 416.226.3353toll-free 1.800.561.2557phone banking toll-free 1.888.434.3511

Staff NotesRETIREMENT ANNOUNCEMENTS Sandie Loder, Loan Administration Clerkas of July 31, 2019

Sandie Loder began her career on November 21, 2005 as a part-time Teller at our Pickering Branch location. In 2010, she took on a full-time position as Teller and moved to our Toronto branch to serve our members.

On March 7, 2016 she moved into her present position as our Loan Administration Clerk in the newly created Centralized Lending Department. She also provided support to the Administration department during her early years, covering vacations, and lending her expertise and experience as needed.

Sandie has been a vital part of our credit union and a person who we can always rely on. Her dedication to our organization, even in times of personal hardship, is to be admired.

Congratulations on this wonderful milestone, Sandie! We wish you health and happiness as you move into this well-deserved stage of your life.

NEW HIRES

Lancim MascarenhasFinancial Services Officer,York Branch

Nazleen NawazMember Service Representative, Halton Branch

Being a REWARDS member just got better. NOW you can send 4 FREE e-transfers monthly! And, as always,receive FREE transfers into youraccount using Interac e-transfer®.

To learn more about these exclusive savings and the perks of being a REWARDS Member, visit your local branch or call us at 1.800.561.2557 today.

FREE INTERAC E-TRANSFERS® FOR REWARDS MEMBERS!

YOU COULD WIN* A PRICELESS BANGKOK EXPERIENCE WITH MASTERCARD®

ALL BRANCHES & CALL CENTRE CLOSED ON THESE DATES

The Police Credit Union and Collabria Mastercard are teaming up to give you a chance to win an incredible weeklong trip for two to Bangkok, Thailand!

Every time you use your Collabria Mastercard to make everyday purchases of $5 or more between now and August 15th, you’ll automatically be entered for a chance to win. The more you use your Police Credit Union Mastercard, the more chances you’ll have to win!

The grand prize consists of:• Business class travel and luxury

accommodations• Exciting tour of Thailand’s shrines

and street life• Private Thai cooking class• Traditional Thai massage • Extraordinary dining experiences

In addition to the grand prize trip to Thailand, Collabria will also be giving away $500 Mastercard Gift Cards to five lucky winners each and every month of the contest.

Here’s the breakdown of draw dates:July 5, 2019 for entries received May 15 – June 15, 2019August 2, 2019 for entries received June 16 – July 15, 2019September 3, 2019 for entries received July 1 – August 15, 2019

The winner of the Priceless Bangkok Experience will also be announced on September 3rd. The grand prize is valued at $29,275 CAD.

Start swiping today for your chance to win! To apply for a Police Credit Union Mastercard, visit our website. Make sure to use your card and for as many purchases as possible. Good luck to all our members!

*Cash advances and balance transfers are not eligible purchases. For automatic entry, accounts must be in good standing and not become delinquent.Business cards are not eligible.

®Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Inc.