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Winter 2013

Profit Sharing $297,412

Christian Credit Union has been blessed with another profitable year. We are thankful for your continued support and hope that you will continue to recommend us to your friends and family. Your business benefits schools, churches and other charities in our Reformed Christian community.

 

This year the Board of Directors approved Profit Sharing
and dividends of $297,412. This is how the benefits
were calculated:

  • 2.50% dividend on Common Shares
  • 3.75% rebate on interest paid by members
  • 3.75% bonus on interest paid to members

One half of the Profit Sharing was deposited to your account in November. The other half was deposited to your common share account. The amount of profits shared with Christian Credit Union members and organizations since 1990 has increased to $7.4 million.

Annual Meetings

Join us for food, fellowship, musical entertainment and a little bit of business as we celebrate the Lord’s blessings. On Monday, January 14, 2013 tickets for both banquets will be available on a
first-come, first-served basis at your branch.

 

Lethbridge
Thursday, March 7
Calvin Christian School
1 Westview Rd
Coalhurst, AB
6:30pm Banquet
8:00pm Business Meeting
Edmonton
Thursday, March 14
The King’s University College
9125 - 50 Street
Edmonton, AB
6:30pm Banquet
8:00pm Business Meeting

e-Statement
Contest Winner!

Congratulations to Rielly Appleyard, who is the winner of the Kobo Vox® e-Reader! Thank you to everyone who participated in the contest.

IN THIS ISSUE

  • Profiles: Justine Lindemulder, Teri Skepple and Peter Schalk
  • Hockey Challenge
  • Fraud Prevention: Gift Card Fraud
  • Proposed Bylaw Changes 
  • Board of Director Nominations
  • Planner’s Corner:
    Are there Estate Taxes when I pass away
Serving members of our Reformed Christian community since 1952
 

Message from the CEO

Merry Christmas and a blessed New Year to all our members! We hope and pray that your joy was renewed this holiday season as you celebrated God’s precious gift of salvation through the birth, death and resurrection of His Son, Jesus Christ.

 

At the Credit Union, we are looking forward to the continued pursuit of our vision in the year of our Lord 2013. Promoting Biblical stewardship of the financial resources in our Reformed Christian community across Canada involves growing the Credit Union so that we can benefit more individuals and organizations. In past newsletters we have shared with you some of the ways we are positioning ourselves for growth including attracting new talent and adding new products. Until all the new staff members are trained and the new products are used by more of our members, we will see decreased revenues. It was a strategic decision to incur these costs because they are necessary to make growth possible. In 2013 we will be looking to start making membership growth a reality so that we can maintain and increase our profitability.

 

Our experience has been that once people bank with us they really appreciate all that we do for them personally and for the community. However, there are many people in our community who simply don’t know that we can offer the full range of services that you would expect at any other financial organization – with great service and at competitive prices.  One member shared with me that he was convinced that by moving his banking to our Credit Union he would be paying more. Nevertheless he decided to move his banking anyways because he appreciated all of the benefits we generate for charitable organizations. What he found when he joined was that, instead of paying more for banking, he was paying less and now he was helping the Credit Union give back!

 

We are not suggesting that all of our products and services cost less than our competitors. We work hard to ensure that our interest rates and service fees are competitive but you may find a lower rate for individual products. Some mortgage brokers, real estate agents or even sales people from other banks will try to convince you that banking is merely a transaction and all banks are the same. They suggest that it does not matter what a bank does with its profits or how it treats you after the transaction is done. All that matters is that you get a low interest rate and they get their commission.

 

We believe banking is not a transaction – it is a relationship.  Our staff members are trained and our products are designed to encourage our members to be good stewards of the financial resources God has entrusted to them. In this way we have been building solid relationships for over 60 years and we know there are more people in our Reformed Christian community who would value these qualities in their financial services provider.

As mentioned previously, the problem is that many of them do not realize what we can offer. We are asking for your help to get the message out and encourage more people to join us.

 

We are thankful for our financial results for our fiscal year ended October 31, 2012. Our assets grew substantially to $217 million, a milestone for our Credit Union. This growth was mainly due to some large, short-term deposits that were withdrawn soon after our fiscal year end.  Our average assets for 2012 were approximately $187 million which still is the highest level of assets in the history of our Credit Union.

 

Last year our deposits grew but our loans remained flat. When combined with some of the additional costs we incurred, the result is that our profitability is less than 2011. We still made approximately $1.1 million and our results compare favourably with our peers. Despite the reduced income, we still paid $297,412 in profit sharing and dividends, we maintained our donations to charitable organizations at $56,534 and we still offer over $30 million in discounted loans to charitable organizations. We are thankful to God for these blessings!

 

You are all invited to join us at our Lethbridge Annual Meeting and our Annual General Meeting. At these meetings you will hear about new Directors and a new Lethbridge Advisory Committee member. At the AGM you will be asked to approve some bylaw changes that clean up some sections, allow electronic voting and enable potential video conference meetings. Generally these changes should encourage greater participation from our members. Come and enjoy some fellowship and hear about how we can grow our Credit Union together!

 In Our Community

 

Calgary Free Reformed Church

The Calgary Free Reformed Church has been growing rapidly over the last few years and has outgrown its current facility. They now have 55 confessing and 35 baptized members from 29 families. The congregation recently purchased an existing church building in Calgary that suits their needs and does not require any major renovations. Through member deposits, Christian Credit Union is pleased to provide a mortgage of $635,000.

 

Staff Profiles

Edmonton

Justine Lindemulder
Justine began working as a Member Service Representative on February 16, 2012. She has a diploma in Fine Arts and previous business experience.

 

Justine attends West End Christian Reformed Church in Edmonton. In 2011 she went to Honduras with The King’s University College for the Honduras Water Project. She has also travelled to Mexico with SERVE.

 

Justine enjoys drawing, painting, ballet lessons, and spending time with her friends and family. She loves working with staff at Christian Credit Union and getting to know more people in our Reformed Christian community.

 

Teri Skepple
Teri is the newest member of our team and has been working as a Financial Advisor since June 4, 2012. Teri graduated from The King’s University College with a Bachelor of Commerce degree. She has previous accounting experience in the tourism industry.

 

Teri was recently married to Anthony Skepple. She attends church at the Salvation Army Edmonton Temple and volunteers for the praise and worship team. She plays the French horn and the piano and loves to cook and bake in her free time.

 

Teri really enjoys the sense of community she experiences between staff and members of Christian Credit Union.  It reminds her of that “small town feel” she experienced growing up in Rocky Mountain House.

Peter Schalk

Lethbridge Advisory Committee

Peter is a Master Electrician who operated his own business until 2007 when he retired. He and his wife Henny have 4 children and 16 grandchildren. They attend Trinity United Reformed Church in Lethbridge where he has served as Elder.

 

Peter has sung for many years in choirs including the Lethbridge Christian Men’s Choir and “Harmony 4” quartet. He enjoys travelling and singing in churches, senior homes and at fundraising events. He also has done various construction and electrical projects for Immanuel Christian School and the Trinity United Reformed Church over the years.

 

Peter is completing his second term and has served on the Lethbridge Advisory Committee for 6 years. He has served Christian Credit Union and the previous Dutch Canadian Credit Union for over 24 years. As a member of the Lethbridge Advisory Committee, he acts as ambassador, encouraging members of our Reformed Christian Community to bank at Christian Credit Union. The committee also makes recommendations to the Board of Christian Credit Union.

 

Peter believes that more people would join Christian Credit Union if they were aware of the benefits given to churches, school and charities in our Reformed Christian Community. There are also benefits given back to the members including Profit Sharing. He asks, “Do you think you would get that from a secular institution?” We are thankful for Peter’s support.

Staff Notables

 

Edmonton

 

Congratulations to Jeanette Vooys, Member Service Representative/Receptionist, who celebrated 5 years of service on November 13. Jeanette gives a warm welcome to all of our members and is happy to help with any questions you may have.

 

Career Opportunity

Team Leader, Support Services – Full-Time

We are looking for a dynamic, service oriented individual who will assist the Manager, Support Services in the training, motivating and guiding of Support Services staff. In addition this person will perform a variety of duties relating to administrative and operational activities of the organization. For more information, visit www.christiancu.ca.

 
 

Christian Credit Union Hockey Challenge

There may be no NHL games, but you can still watch hockey! Enter the Christian Credit Union Hockey and Saving Challenge and you could WIN 2 tickets to a WHL game or a gift certificate! Your name will be entered every time you make a deposit. Christian Credit Union will also pass $5 to your school for every new account opened.

 

Contest runs from Dec. 3/2012 to Jan. 20/2013.

Deposit Campaign

Do you have savings to invest? We’re reaching out to our members and asking for your business. When you deposit your money at Christian Credit Union, you benefit churches, schools and other charities in our Reformed Christian community. Your deposits and loans also qualify for year-end profit sharing.

 

In November we booked over $1,888,188 in deposits and opened 15 new accounts. Thank you to our staff for calling members in the evening and wearing orange shirts. Thank you to our members who took the time to have meaningful discussions with our staff. If you’d like to discuss your investment options, please contact your branch.

Community Donations

November 1, 2011 – October 31, 2012

The following organizations and groups benefited from cash donations or promotional items:

Back to God Ministries International
Bethel Community Church
Bethel Free Reformed Evangelism Committee
BFM Foundation
Bibles for Mission Thrift Stores
Big Brothers Big Sisters Bowl for Kids Sake
Calvin Christian School
Calgary Christian School
Coaldale Christian School
Cardus
Children of Hope
CLAC Eleventh Annual Golf Classic
Community Safety Net 
Crossroads Counselling Centre
Edmonton Inner City Children’s Program
Edmonton Society for Christian Education
Emmanuel Home
Fellowship Refugee Committee
Forum for Young Canadians
GEMS Area 8
Gibbons Cultural Dance Society
Gospel for Asia
Immanuel Christian School
Inglewood CRC
Iron Springs Christian Reformed Church
Lethbridge Pregnancy Care Centre
Mosaic Centre
Parkland Immanuel Christian School
Providence Christian School
Rehoboth Christian Ministries
Ruth Mission Guild
Schizophrenia Society of Alberta
Southern Alberta Bible Camp
The King’s University College
The Leukemia & Lymphoma Society of Alberta
Teen Challenge 2012 Marathon of Golf
Town of Beaumont
Trinity GEMS
Trinity Christian School
West End CRC Women’s Retreat
Word & Deed Ministries
Young Life Edmonton
 

Proposed Bylaw Changes

The following bylaw changes will be presented for approval by the membership at our Annual General Meeting on March 14, 2003. The changes involve the clean up of some sections to reflect changes in our operations. There are also changes that will enable us to offer electronic voting and meetings by video conference or other means of electronic communications. If you have any questions, concerns or would like more information, please contact John Veldkamp, CEO.

Current Bylaws

3.3 Transfer of Shares
Where a member holding common shares wishes to transfer shares in the Credit Union that member shall make a request to transfer in writing to the Credit Union.  On approval by a resolution of the Board and subject to section 110 of the Act and these Bylaws, the Credit Union shall, after payment of all amounts due from the member to the Credit Union, transfer the balance of the member’s shares.

 

5.3 Joint Membership Voting
Each joint membership shall have only one (1) vote.  The Credit Union shall be notified prior to the meeting which of the parties of the joint membership has been designated as the voting member.

 

5.8 In Branch Voting for Directors
(1) Voting in branch shall be conducted at all branches of the Credit Union, at a time specified by the election committee.  Branch voting shall remain open during regular Credit Union business hours for the duration of the election as specified by the election committee.

 

(2) Members shall be provided with a ballot for voting after confirmation of their voting status by the Credit Union staff.  A record will be maintained of all members who have received a ballot and this record shall be checked to ensure that members cast only one (1) ballot at each election.

 

(3) A private polling area shall be provided for members to complete ballots and each polling area shall display clear instructions for ballot completion.

 

(4) Completed ballots shall be deposited into a branch ballot box provided by the election committee.

 

5.9 Voting by Mail for Directors
(1) Members wishing to vote by mail to elect directors may request, in writing, that a ballot be sent to them.  Written requests must contain a member’s name, signature and account number and must be submitted no later than twenty (20) calendar days prior to the election deadline.

 

(2) Subject to section 5.9(1), ballots mailed to members shall be mailed sufficiently in advance of the election deadline to permit not less than fifteen (15) calendar days for completion by the member and return by mail.

 

(3) Mail ballots shall include all the instructions necessary
for completion.

 

(4) All mail ballots shall be returned directly to the election committee for verification and counting.

Proposed Bylaws

3.3 Transfer of Shares
Where a member holding common shares wishes to transfer shares in the Credit Union that member shall make a request to transfer in writing to the Credit Union.  On approval by the Board or its delegate and subject to section 110 of the Act and these Bylaws, the Credit Union shall, after payment of all amounts due from the member to the Credit Union, transfer the balance of the member’s shares.

 

5.3 Joint Membership Voting
This section has been deleted.

 

5.7 Voting for Directors
The Directors, or its designate, shall determine the procedures to be followed in the election of qualified nominees to the Board of Directors.

 

The Directors may determine that elections be conducted by any one or any combination of the following methods:
(1) balloting at all branches of the Credit Union;
(2) mail-ballot; or
(3) any secure electronic means.

 

5.9 Voting by Mail for Directors
This section has been replaced by the new section 5.7.

Fraud Prevention

Gift Card Fraud

A new scam has emerged in London, ON. Chronic skimmers and their associates have found a new way to increase their profits. They use skimmed card data to obtain various gift cards/pre-paid credit cards and then advertise these cards for sale on Kijiji. The purchasers verify the card balances and then pay cash for the cards at 75 to 80 cents on the dollar.

The fraudsters have already duplicated the magnetic stripes of these gift cards and begin converting the duplicate cards into different gift cards/pre-paid cards immediately following the sale. By the time the card purchasers attempt to use the cards, the accounts have been emptied and the fraudsters are able to “sell” these new cards.

 

Current Bylaws

8.3 Credit Committee
The credit committee may delegate any of its powers, duties and functions to approved officers or employees of the Credit Union who shall report directly to the credit committee on a regular basis.  Any such delegation does not relieve the credit committee of its responsibilities under the Act.

 

9.2 Meetings by Telephone
A Board of Directors meeting or committee meeting may be held by means of telephone or other communication facilities which permit all persons participating in the meeting to hear each other, and, for the purposes of the Act, the directors participating by those means are deemed, subject to the requirements of the Act as to the Board meetings, to be present at the meeting.

 

9.3 Notice of Board or Committee Meetings
Notice of the Board or committee meetings including the date, time, place, and agenda shall be communicated by announcements at the preceding meeting, or by telephone or by mail to each director or committee member not less than four (4) calendar days prior to the meeting.  In the event the meeting by telephone conference call of the Board or committee is required, notice shall be given in person or by telephone to each participant, not less than two (2) hours in advance of the conference call.

Proposed Bylaws

8.3 Credit Committee
The Board may delegate any of the powers, duties and functions of the Credit Committee to approved officers or employees of the Credit Union who shall report directly to the Board on a regular basis.  Any such delegation does not relieve the Board of its responsibilities under the Act.

 

9.2 Meetings by Electronic Communications
A Board of Directors meeting or committee meeting may be held by means of electronic communications which permit all persons participating in the meeting to hear each other, and, for the purposes of the Act, the directors participating by those means are deemed, subject to the requirements of the Act as to the Board meetings, to be present at the meeting.

 

9.3 Notice of Board or Committee Meetings
Notice of the Board or committee meetings including the date, time, place, and agenda shall be communicated by announcements at the preceding meeting, or by electronic communications or by mail to each director or committee member not less than four (4) calendar days prior to the meeting.  In the event the meeting by electronic communications of the Board or committee is required, notice shall be given by electronic communications to each participant, not less than two (2) hours in advance of the meeting.
 

Board of Director Nominees

As mentioned in our Fall Newsletter, the Board only submitted two names for the two upcoming vacancies on the Board. Since there were no nominations from the membership, there will not be an election and the Board nominees will be declared elected by acclamation at our AGM on March 14, 2013.

Peter Van Bostelen

Peter has a PHD in chemistry and worked for 30 years as a Quality Control and Safety and Loss Control Manager.  He is now enjoying retirement with his wife Sonja. They have 5 married children and attend the St. Albert Canadian Reformed Church. He has served in church as an Elder and Chairman of Council.  

 

Peter has also served the community as chairman of the Canadian Reformed School Society of Edmonton, member of the St. Albert Community Health Council, member of the Sturgeon Community Hospital Bioethics Committee, and canvasser for Salvation Army and Heart and Stroke Foundation.

 

Peter has been a member of Christian Credit Union since 1980. He just completed his final term on the Credit Committee where he has served since 1990. He is the current Chairman of the Board and has agreed to let his name stand for another 3 year term.

Henrietta Wildeman

Henrietta is a Chartered Accountant who has been employed with BDO Canada LLP since 1989 and has been a partner since 2007. She has a husband named Andy and one teenaged son. They attend Immanuel Canadian Reformed Church in Edmonton. She has been a member of Christian Credit  Union since 2007.

 

Henrietta has volunteered as Treasurer for Manna Canadian Reformed Society for World Relief since 1996. She served on the Board of Directors for Parkland Immanuel Christian School and volunteered for several roles at the Institute of Chartered Accountants of Alberta (ICAA). She also did internal audit work for Edmonton ProLife.

 

Henrietta has a wealth of financial knowledge and experience in both accounting and audit standards. Some of her training is specific to application in the Credit Union system. She is very excited to serve on the Board and looks forward to further involvement with Christian Credit Union.

 

Planner’s Corner

Are there Estate Taxes when I pass away?

 
This question was posed by one of our members recently.  The short answer is No, not in Canada.  Despite the snow and cold, we have a lot to be thankful for living in Canada! But there’s more to the answer: probate fees and taxes due on the final tax return.

 

Probate is a process where the Court declares that the Will is valid and enforceable. Probate establishes that the Executor(s) also known as Personal Representative(s) can settle the estate.  The estate is what the deceased owned less what is owed at the time of death. If the deceased owned real estate, probate is required. Most financial institutions also require probate.

 

The maximum probate fee for residents of Alberta is $400 regardless of the size of the estate. Most Executors use a lawyer to complete and submit forms to the Court and subsequently charge a fee between 1-2.5% of the estate size (e.g. estate size $500,000 x 2.50% = $12,500). Some lawyers charge a flat fee or work on an hourly basis. Please note that most articles in newspapers and magazines on estates originate out of Ontario where probate fees are considerably higher @ 1.50% for estates over $50,000 followed closely by British Columbia @ 1.4%

 

All assets of the estate are deemed disposed of at the time of death. As a result, balances in RRSP/RRIF and capital gains on

rental properties, cabins, shares that have appreciated in value, etc. are claimed on the final tax return of the deceased which is likely to cause a tax liability. One way to reduce or eliminate the taxes is to contribute to charities in your Will.* Note that any gains on primary residences are tax-free. 

 

The good news is that inheritances received by the beneficiaries are tax-free.

 

Thank you for your support of Christian Credit Union. We appreciate you and your business. Have a Blessed New Year.

 

*Kindly refer “Leaving a Legacy, Transforming this World” found at
www.christiancu.ca/financial-planning/estate-planning/

 

2012 RRSP Deadline
Friday, March 1, 2013
Check out the different RRSP options available through Christian Credit Union. Don’t have the money to contribute to an RRSP? We have the solution…you are automatically pre-approved for a $5,000 RRSP CreditLine to purchase an RRSP.  Some terms and conditions apply. Larger RRSP CreditLines are available subject to approval.

 

2013 TFSA Limit Increase
For 2013, Tax Free Savings Accounts annual limit has increased from $5,000 to $5,500. TFSAs are designed to save for anything and the income earned is tax free. Note that unused TFSA room is carried forward indefinitely. We have options for your TFSA which suit most investor’s objectives and tolerance for risk. Check it out today.

 


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