2009/2010 Annual Report - WFCU › ... › AnnualReports › AnnualReport2010.pdf · 2011-11-23 ·...

2009/2010 Annual Report

AnnualReport_Final_RevisedAugust27:Layout 1 09/14/2010 2:43 PM Page 1

VISIONWindsor Family Credit Union - Quality, Convenience, Innovation,

Open to Everyone and Yours To Own.

MISSION STATEMENTWindsor Family Credit Union will provide services and a full range of

highest quality financial products to make our community

the best place to live and work.

Windsor Family Credit Union Turner Road Retail Location 1980’s


T a b l e Of ContentsMessage to our Members 1Year In Review 3Five Year Financial History 11 Auditor’s Report on Summarized Financial Statements 12Balance Sheet and Statement of Retained Earnings 12Statement of Comprehensive Income 13Management Report and Report of the Audit Committee 14For the Future 15

Mayor Francis, Marty Komsa and Marty Gillis break ground on

Windsor Family Credit Union’s new Corporate and

Administration Offices 2006


It was 1985. The credit union system in the Windsor area wasready for a change. There were over 70 credit unions in the

area and four credit union Board ofDirectors had a vision. They wantedto come together to ensure that themembers and potential membershad a choice for their financialservices. They knew that if a creditunion could provide qualityfinancial products and services atcompetitive rates the people wholive and work in Windsor andEssex County would benefit.

It was at this time that theG.M.C. Employees (Windsor)

Credit Union, RiversideCommunity (Windsor) Credit Union, Windsor Family Credit Union(formerly Motorco Community), and C. J. Watson (Windsor)Credit Union decided to merge. They worked diligently to putone credit union in place, Windsor Family Credit Union, to servethe members.

In 1986 a new management team was put in place and theBoard of Directors was very supportive of the new philosophiesand expectations. The number one priority at all times was toestablish a credit union that would be the best in financialservices and provide top quality services to the membershipthrough the best staff. We truly wanted to be the best and toassist Windsor and Essex County to be the best place to live andwork.

Twenty-five years later, what a success:

•In 1986, WFCU had $36.5 million in managed assets. Today, WFCU administers $791 million in assets. •In 1986, WFCU served 13,000 members. Today, WFCU provides service to 27,000 members. •In 1986, WFCU had $650,000 in financial capital and reserves. Today, WFCU has $57 million in retained earnings and equity shares. •In 1986, members held $62.8 million in service totals consisting of loans and deposits. Today, members hold $1.25 billion in service totals.

All of these accomplishments were achieved while giving back

more than $4 million to our communities over the last eightyears. Have we achieved success? We think so! This wasaccomplished during good times and challenging times. It wasaccomplished because we had a plan,we focused on our members; and ourmembers and the community believedin us.

Many thanks must go out to ourpartners who believed in us - Credit Union Central of Ontario (now Central 1), CUMIS MembersInsurance (now part of The Co-operators), Co-operative Trust(now Concentra Financial), CredentialFinancial Strategies and our localpartners Blonde and Little Insurance(now PBL Insurance). They workedwith us over the last 25 years. Without them, our success wouldhave been less. With them, our success grew stronger.

To our Board members - past and present, our sincere thanks.There were many discussions and many reviews of the BusinessPlans that took place – and only now can it be appreciated.

To our staff, past and present, we thank you. We have saidmany times that it is going to be a great ride. We asked you tobelieve in us and you did. There are twenty employees who havebeen with us for the last twenty years. That experience anddedication is most appreciated.

Twenty-five years later we find ourselves serving 13,700 personal households, 900 local businesses and 1,100 community, non-profit and institutional members. We also provide insurance and investment services to 4,900 households through our insurance and investmentpartners.

Our members believe in us. They continue to bring theirfinancial services to us.

We are pleased to report that this past year was very successful.Throughout the year, we remained true to our strategic directionof being the best and implemented our planned initiatives thatbalanced the allocation of our resources to our identified threekey areas.

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Message To Our Members

Martin D. Gillis

Chair, Board of DirectorsMartin J. KomsaPresident and ChiefExecutive Officer


We supported our members by providing competitively priced products andservices, with our market leading Free Chequing accounts and competitiveservice fees as well as special pricing of mortgages and investments to buildstronger relationships. New products were introduced including BusinessOnline Banking and Email Money Transfers.

We continued to invest in a number of areas of our infrastructure through thecreation of new employee positions, proceeding with the plan to renovate ourretail locations and through our expanded focus on corporate governance.

Enhanced marketing and community investment initiatives, along with supportfor several community capital projects continue to help make our region a greatplace to live and work.

During the year, we enhanced our financial strength by managing our financialmargin, using pricing initiatives and financial management tools. We

continued to build our regulatorycapital by following our capitalplan.

With our members’ continuedsupport, deposits grew to $638.8million and loans to $612.6million, an increase of 5.7% and10.2%, respectively. Assets underadministration grew by 10.0% to$790.6 million. Our commitmentto surpass regulatory capitallevels remained strong as totalregulatory capital reached $56.6million. Again this year, WFCUpaid better than average annual

dividends to our members on their membership and investment shares. Netincome of over $4.36 million was transferred to retained earnings, enhancingthe financial strength of the credit union.

We are extremely proud of our past and the accomplishments of this past year.We remain committed to our vision of being the best financial institution inWindsor and Essex County. Thank you to our members as we celebrate our25th anniversary and 70 years of serving the community.

Martin J. KomsaPresident and Chief Executive Officer

Martin D. GillisChair, Board of Directors

Rick Martinello,ViceChair

Nancy JammuTaylor,

Director

Robert (Bob)Nesbitt, Corporate

Secretary

Pearl Davies,Director

Federica Nazzani,Director

Kevin Hague,Director

Cary Wheeler,Director

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WFCU Board ofDirectors

Vince Marcotte,Director

The late Harold Hewitt, WFCU long term

Director, community supporter and inspiration

for the Harold Hewitt Scholarship Program


During 2009 – 2010, Windsor Family Credit Union (WFCU)remained true to our strategic direction of being the bestcredit union, implementing planned initiatives that balancedthe allocation of our resources to these key areas - ourmembers, our infrastructure, organization and communityand our financial strength.

Our members continued to support our strategic direction bylooking to us for more of their financial business, resulting ina very successful year.

Member Profile

WFCU serves four identified member segments – Personal,Commercial, Organization and Institutional. We monitor theirholdings to ensure they are being serviced professionally andefficiently with products and services designed with theirneeds in mind.

At May 31, 2010, service totals consisting of total loans anddeposits held by our members were $1.25 billion, an increaseof $97 million or 8% over the year. Most member segmentsexperienced positive growth.

Total loan holdings increased by $56 million, including $34million growth from Business members and $20 million fromPersonal members.

Total deposit holdings increased by $34 million, including $30million growth from Personal members.

Products and Services

WFCU takes pride in providing our members with the best andbroadest range of services that are accessed at theirconvenience.

Year In Review

Organization

Commercial

Personal53%

46%

1%

SERVICE HOLDINGS BY MEMBER SEGMENT - LOANSAt May 31, 2010

Institutional

Organization

Commercial

Personal60%

15%

11%

14%

SERVICE HOLDINGS BY MEMBER SEGMENT - DEPOSITSAt May 31, 2010

Windsor Family Credit Union’s “Incredible Mortgage Offer”winners are proud supporters of Windsor FamilyCredit Union products and services

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Our Free Chequing products for personal, organization and institutionalmembers are market leading and during the year, analysis commenced ondeveloping The Business 1 Free Chequing account for our businessmembers.

Special pricing incentives and member promotions such as the “IncredibleMortgage Offer” were offered during the year to encourage our membersto transfer their mortgages to us. The new, innovative Cashback GIC-RSP-RIF products were developed to encourage our members to transfer theirinvestments to us. Both programs were very well received and contributedto strong growth in mortgages and investments.

Enhancements were made to our retail online banking service including theability to perform Email Money Transfers. Work was completed on our newBusiness Online Banking service, providing enhanced features andfunctionality for our business and institutional members. A cash dispensingATM was installed at the Town of LaSalle’s Vollmer Culture and RecreationComplex, expanding the WFCU ATM network to 21 in our community.Planning is well underway to prepare for CHIP technology and its impact onour operations, including cards, systems and ATMs.

We continued to assist our members with their financial well-being throughour wealth management program. Under Credential Asset Management,members have access to mutual funds delivered through WFCU licensedrepresentatives. Through Credential Securities Inc., members have accessto complete financial planning, mutual funds and investment counselingand life insurance planning and products through licensed InvestmentAdvisors.

WFCU Milestones

1985Merger of WFCU with G.M.C. EmployeesCredit Union, Riverside Community CreditUnion and C.J. Watson Credit Union to createone credit union operating as WindsorFamily Credit Union

Four branches, 41 employees and threeATMs

Assets of $35 million; Service totals are$53.7 million

1986 1990Strategic direction of “Putting Our House inOrder” with commitment to be the best, offercompetitively priced products and servicesand to be profitable

First financial institution in Canada toimplement the Philip Crosby QualityImprovement Process – these principlescontinue to guide WFCU today; Centralizationof duties begins

Closed 1901 Wyandotte W., formerly C.J.Watson CU branch; relocated Main Branchand Central Office to 2800 Tecumseh RoadEast with first drive-up ATM; extended branchhours of operations; ATMs linked to INTERACand PLUS networks; MasterCard GlobalPayment Card and Automated TelephoneBanking introduced

New products include MeritLine home equityline of credit; High ratio mortgages; ForeignExchange services; FAT CAT and Headstartyouth accounts; Golden Account package formembers aged 59 & better; No FeeMasterCard Credit Card; Trust Servicesthrough Co-op Trust

Three branches plus Central Office, 51employees and five ATMs

Assets of $61 million; Service totals are$106.6 million

Windsor Family Credit Union’s ATM Kiosk in the early 1980’s


At May 31, 2010, holdings in our wealth managementprograms totaled $35.4 million.

Our unique partnership with PBL Insurance continued,providing our members access to a group home and autoinsurance program, through PBL offices adjacent to two ofour retail locations since 1999.

Access Channels

Five retail locations, retail and business online banking, liveand automated telephone banking, ATM access around theworld, INTERAC Direct Payment, MasterCard services, pre-authorized debits and credits, chequing and directdeposit services, are allways our members accesstheir funds, any time of day,at their convenience.

Our five locations aredesigned with our unique retail servicedelivery structurewhereby membersvisiting our location cango to any of our MemberConsultants and beprovided with sit-down

service for almost every financial inquiry. Over the years, aconcerted effort has been made to centralize manyadministrative tasks ensuring our retail staff focus on doingwhat they do best – serving and building relationships withour members.

Work will begin early next year on our plan to revitalize and renovate each of our retail locations to facilitate theservice delivery structure and to further enhance memberservice.

Commercial Services

WFCU has long-term roots within our community and ourCommercial Services team offers local

businesses the benefit ofexperience and local decisionmaking.

Our Commercial Services team hasover 231 years of combined bankingand commercial financial servicesexperience, ensuring they supportthe financial goals of our members,providing personalized, professionaland experienced service. Businessmembers receive a customizedsolution that fits their immediate

MEMBER ACCESS CHANNELS - TRANSACTION TYPE

Payment Services18%

Retail Locations15%

ATM Network

Electronic Services

8% MemberDirect19%

40%

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In 1990, Windsor Family Credit Union introduced its firstdriveup ATM, located at the 2800 Tecumseh RoadEast retail location

$26,54380,32028,42061,990

197,273

43,579

$240,852

1,772

7,638

AmountNumber

TOTAL LENDING ACTIVITYAT MAY 31, 2010

(Amount in thousandsof dollars)

Personal LoansPersonal MortgagesCommercial LoansCommercial Mortgages

Total Approved

Total Not Approved

Total Above

Loans In Arrears In ExcessOf 90 Days

Mortgages In Arrears In ExcessOf 90 Days

1,478595143

29

2,245

1,216

3,461

76

45


needs and the services they may require well into the future for both theirbusiness and personal financial needs.

Through strong business development initiatives, the commercial portfolioincreased by $37 million or 16% to $266 million by May 31, 2010.

Commitment To Quality

WFCU has an ongoing commitment to quality and this is reflected in ourFive Star Service Program, our internal quality program which consists ofestablished and documented standards in the five areas of Service, Sales,Surroundings, Strength and Spirit. Through this program, staff isempowered to review every aspect of our daily dealings with our internaland external members to help identify performance improvements andeliminate non-conformances.

Monthly customer service articles, posted on our internal website, sharebest practices in customer service and highlight departmental andindividual success stories.

Human Resources

WFCU recognizes that staff is one of our best assets and follows an overallphilosophy to hire the best, treat them well and see them stay.

A comprehensive, multi-step, recruitingprocess is followed tohire the best. Eachemployee, new orseasoned, undergoesongoing procedural and service training.

Employees haveaccess to a programof extended health,medical and otherbenefits designed to promote aproductive andhealthy workforce,through our

“Employee AdvantageProgram”. Over the years, based on employee feedback, unique wellnessand other services have been offered, including Staff Dry Cleaning Pick-upand Delivery, WFCU Staff Scholarship Program, Flexible Work Hours andtreat days.

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1991 1995“Personal Financial Services ThroughRelationship Marketing”, formalized conceptof delivering service and buildingrelationships with our members

LaSalle branch relocated in Malden VillagePlaza; Saturday branch hours of operation;Drive-up ATM installed at LaSalle andRiverside locations

New products include: Strictly Businesspackage of deposits and commercial loans;The Community 1 Free Chequing Accountfor organizations; INTERAC Direct Payment;Wealth Management services and Family ofEthical Mutual Funds

Free community rooms at each retaillocation

Proud recipient of “Company of Year”Business Excellence Award

Three branches plus Central Office, EightATMs

Assets of $106.8 million; Service Totals$188.2 million

1996 2000WFCU adopts a new vision and missionstatement which continues to guide us

New strategic direction to “Meet Members’Financial Needs, At Their Convenience”

Focus on quality with ISO 9002 Certificate ofRegistration and Five Star QualityCommitment Program

Branch in Town of Tecumseh with drive-upATM and drive-up teller window; LiveTelephone Banking Call Centre opens;alliance with Blonde & Little (now PBLInsurance) to offer group home and autoinsurance at offices adjacent to branch

Plan to build member equity throughInvestment Shares, Series 1 and 2 fullysubscribed

Over the years, Windsor Family Credit Union has been

named one of the “Best Employers In Canada” and one of

the “Best Small and Medium Companies In Canada”


Our organizational structure was enhanced with the additionof new positions in our retail and corporate areas and adedicated resource to manage identified innovation projects.

Keeping employees informed and receiving feedback fromthem is one of our priorities and a strong and comprehensivecommunications process is followed. This includes our CEOStaff Advisory Committee, weekly departmental meetings,daily retail staff meetings, full staff meetings and a well-read“Inside the Family” monthly employee newsletter. Theexisting process was further strengthened with theintroduction this year of a CEO Management AdvisoryCommittee and the President & CEO Blog.

Employee Relations

WFCU’s total compensation program has been designed toattract, retain and motivate the human resource talentrequired to lead our organization in the best interests of ourmembers over the long-term. When setting compensationlevels, WFCU reviews compensation provided to other creditunions and the broader financial services sector in Canadato ensure competitiveness in support of its totalcompensation program.

Based on recent reviews, the total compensation provided toall staff is competitive relative to the large Canadian creditunions. It is also competitive with similar roles adjusting forsize, scope and complexity among Canadian financialinstitutions.

WFCU promotes a performance culture among its employeesand manages our total compensation plan to support a pay-for-performance philosophy through salary, comprehensivebenefits and variable incentive plans. Actual compensationlevels received by WFCU employees are based on the degreeof achievement of various corporate and individualperformance goals.

Employee Development

Ongoing training and development is a primary focus.Employees are empowered to learn, grow and lead by beingprovided with the tools and information needed to succeedin their present positions and to be prepared to progress intheir career at WFCU.

All new employees are provided with a comprehensive

orientation and training program, tailored to their position.Follow-up training sessions are scheduled to ensure newemployees continue to provide high quality andknowledgeable service.

Monthly technical and risk management training continuedat the retail locations. Sales Managers delivered a scheduleof training sessions designed to refresh skills, product and risk management knowledge.

Our popular “Evening With The Experts” program alsocontinued, providing retail staff the opportunity to hear andlearn first-hand from seasoned WFCU ‘experts’ in variousfinancial topics.

To supplement the extensive training opportunities,employees have access to a resource library, consisting ofarticles, books and website references on a wide range ofbusiness and personal development topics.

Marketing & Community Investment

A comprehensive annual Marketing and CommunityInvestment plan was implemented to continue to broadenWFCU’s name recognition as a trusted and respectedcorporate citizen and to support the overall sales and growthgoals of the organization.

To encourage and reward members to transfer their mortgageto us, three member incentive campaigns were successfullyimplemented – “Live Mortgage Free For A Year”, “Enjoy TheUltimate Stay-Cation” and “The Incredible Mortgage Offer”.

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Windsor Family Credit Union Staff continue to support

local area food banks 2009


- 8 -

Each campaign was designed to generate excitement and enhance the businessdevelopment tactics underway atthe retail locations.

Product advertising included acampaign to introduce our new,innovative “Cashback GIC-RSP-RIF” investment products.

These campaigns contributed tothe strong growth in ourmortgages and investments.

A first for WFCU this year was theuse of a television campaign,featuring five professionally-executed image ads. This newmedium brought WFCU’s name intomany homes in our community and increased our visibility and namerecognition.

WFCU continued the commitment to lend expertise and support withrepresentation on various boards, committees and attendance at numerousevents. Our commitment to remain a responsible corporate citizen and to investin Windsor-Essex is reflected in our participation, donations, scholarships, multi-year giving initiatives, The Community 1 Free Chequing account, free communityrooms at each of our retail locations, goods-in-kind and more.

The Harold Hewitt Scholarship (HHS) was presented to 16 local youth who wereselected for their essay submission to the question “What would you do toimprove the community you live in?” Over the past eight years, WFCU has

awarded over $46,000 to116 youth in post-secondaryschool scholarships throughthe HHS program.

An additional $92,000 inother scholarship programshas been awarded, for agrand total of $138,000provided in youthscholarships over the pasteight years.

Our community investmentwas significant and the ‘rightthing to do’. Partnerships

were developed with key community organizations, such as the Art Gallery of Windsor, Windsor/Essex County Humane Society Shelter Expansion Fund,Assumption College, St. Clair College Health Plex Facilities Capital Campaign

New products include MemberDirectINTERNET home banking; Headstart studentaccount offers free unlimited ATMwithdrawals; pay utility bills using telephonebanking; WFCU staff licensed to sell mutualfunds

Community Investment Program formallybrands our donations, sponsorships, TheCommunity 1 Free Chequing Account, freecommunity rooms at our retail locations,multi-year giving initiatives and CommunityDonations Fund; Designated “CaringCompany” through Imagine Program;Corporate Award for Outstanding CharitableAchievement

Long term board member, Harold Hewittpasses away

Upgraded to new banking system; Y2K ready

Four branches plus Central Office; NineATMs

Assets under administration of $231 million;Service totals of $361 million

2001 2005“Plan For Success to 2005” continuescommitment to build best credit union tomeet members’ needs

South Windsor branch opens with drive-upATM and drive-up teller window; Cashdispensing ATMs for business andinstitutional members; Connected toEXCHANGE network of surcharge-free ATMs across Canada; re-launch of winds -orfamily.com web site

Investment Shares Series 3 for $4 millionfully subscribed

New products include mortgage insurances;RESPs; risk based pricing on loans andmortgages; Credit Life Insurance throughCUMIS Insurance; Tax Preparation Servicesat South Windsor branch

Windsor Family Credit Union is a long timesupporter and sponsor of numerous local

community sports teams

Windsor Family Credit Union delivered its

message to area homes with the launch

of five professionaly executed

television image ads


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and John McGivney Children’s Centre. Another successful initiative “The Joyof Giving” annual campaign, included a donation of 4,500 food items to the‘Cans For A Cause’ annual food drive, Adopt-a-Family Programs providingChristmas presents to children and their families in need, $2,500 in toypurchases for the Moose Lodge Annual Toy Drive and monetary donationsto local food banks. Over $12,500 was contributed to assist those in needin our community during the holiday season.

WFCU is proud to display the Imagine Canada “Caring Company” logo andover the past eight years has given back over $4.0 million to the communityto provide support and help maintain economic viability for our community.

At the 20th Annual Business Excellence Awards sponsored by the Windsor-Essex Regional Chamber of Commerce, WFCU was honored twice with the2010 Believe Windsor-Essex Award and Marty Komsa, our President & CEOwas named Business Professional of the Year. The Believe Windsor-EssexAward recognizes individuals or organizations that have demonstrated asignificant commitment to positive business development in spite of globalmarket trends. WFCU was extremely proud to receive this prestigious awardas it is a true reflection of the values and direction that WFCU strives toachieve everyday.

Our Naming Rights of the WFCU Centre continued to provide tremendousexposure as we joined in the enthusiasm and excitement as the WindsorSpitfires won their second consecutive Memorial Cup. Through thispartnership, WFCU sponsored Community Skates after Windsor Spitfiregames.

Windsor Family Credit Union proudly accepted the WindsorEssex Regional

Chamber of Commerce 2010 Believe WindsorEssex Award and Marty Komsa

was named Business Professional of the Year

AIDS Committee of WindsorAlzheimer Society of Windsor-Essex County

APPD Art & Soul Music and Wine Festival

Art Gallery of WindsorATHENA

Autism Ontario Windsor Essex Chapter BANA

Big Brothers Big Sisters of WindsorBrentwood Recovery Home

Canadian Mental Health Association Windsor-EssexCare for a CauseCAW Local 444

Centre for Seniors WindsorChildren’s Safety Village

Ciociaro Windsor U9 Select Girls SoccerCops Care for Kids

Do Good DivasEaster Seals

Family Services Windsor Essex CountyGlengarda and Child Family Services

Harmony in Action Hotel Dieu Grace Foundation

House of SophrosyneIn Honour of the Ones We Love

Iris HouseItalian Canadian HandiCapable Association

John McGivney Children’s Centre LaSalle Business Association

LaSalle Minor Hockey Association LaSalle Stompers Soccer Club

Leadership Windsor Essex Multicultural Council of Windsor-Essex County

Riverside Minor Hockey AssociationRotary Club of Windsor (1918)

Rotary Club of Windsor Roseland Royal Canadian Legion #255

Royal Canadian Naval AssociationSouthwest Wildcats

Special Olympics St. Mary’s Food Cupboard

Tecumseh B.I.A. - Art of EatingTecumseh Minor Baseball Association

Teen Health Centre.Theatre Alive

Transition to Betterness Turtle Club Little LeagueUnemployed Help Centre

United Way Windsor Essex CountyW.E. Care for Kids

Well-Come Centre for Human PotentialWellness Program for Extended Psychosis

Windsor and District Labour CouncilWindsor Central Little League

Windsor Chamber of CommerceWindsor East Little League

Windsor Essex Cardiac WellnessWindsor Essex Community Foundation Windsor Essex County Crime Stoppers Windsor Essex County Human Society

Windsor Essex Regional Chamber of Commerce Windsor Fire & Rescue Services

Windsor Historical SocietyWindsor Homes Coalition

Windsor Light Music TheatreWindsor Minor Hockey Association

Windsor Pride FestivalWindsor Regional Hospital

Windsor South Canadians Little LeagueWindsor South Little League

Windsor Stars BaseballWindsor Symphony Orchestra

Windsor Wildcats Fastball

Plus numerous other organizations and events.

WFCU Helping TheCommunity


Financial Performance

By many measures, WFCU had one of its most successful years.

Total Assets Under Administration increased 10.0% to $790.6 million atMay 31, 2010 and Retained Earnings and Equity Shares increased 10.5%to $56.6 million. Members’ deposits increased 5.7% and at fiscal year-endamounted to $638.8 million.

Total loans to members continued to increase with strong growth of $56.5million to $612.6 million. Residential mortgages remain the largestcomponent in the category and finished the year at $293.5 million, anincrease of 11.0%.Commercial loansand mortgagesincreased 16.1% to$266.3 million.

Operating revenuesremained strong at$35.2 million whilefinancial expensesdecreased by $3.0million compared tolast year. Thisresulted in financialmargin of $18.0million, increasing by $3.9 million compared to last year.

Members earned $15.9 million in interest on deposits. In addition, $1.1 million was paid to members as dividends on Membership Shares andon Investment Shares Series 1, 2, 3 and 4 held by members.

This generated strong Net Income of $4.4 million all of which wastransferred to Retained Earnings.

The credit union has remained in compliance with all legal requirements for Regulatory Capital. Regulatory Capital totals $57.2 millionand represents 8.01% of total assets and 13.98% of total risk weightedassets. These ratios exceed legislated regulatory capital levels of 4% of totalassets and 8% of total risk weighted assets.

By year-end, total holdings in investments and syndicated loans amountedto $76.6 million, an increase of $15.2 million compared to last year.

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Year one of Harold Hewitt Scholarships(HHS) in 2002 for youth post-secondaryschooling; Multi-Year Giving Programintroduced and $10,000 donated in YearOne

AIME Award for Marketing Excellence

Five Branches plus Central Office and 27 ATMs; number of employees exceeds100

Assets under administration of $501 million;Service Totals of $801 million

2006 2010New strategic direction, with new corporateidentity, new products developed andrevised retail service delivery structure; Bondof association expanded to Essex County

Relocated to new Corporate andAdministration offices; relocated Town ofTecumseh branch to Manning Road

Investment Shares Series 4 of $6 millionfully subscribed

New services introduced are The Personal 1Free Chequing, High Interest Savings,cashback mortgages, 7 year mortgages, TaxFree Savings Account, Mobile banking,Business online banking and Email MoneyTransfer

WFCU awarded Naming Rights to WindsorFamily Credit Union (WFCU) Centre

“Like a Bank, Only Better” marketing sloganand campaign wins marketing award; ‘BestSmall and Medium Sized Employer inCanada’ List in 2006 and 2008; ‘BestPlaces to Work’ List in 2007

Five retail locations and Corporate andAdministration Office and 21 ATMs

Assets Under Administration of $791 million;Service Totals of $1.25 billion

In 1999, Windsor Family Credit Union celebrated

the launch of Series 2 Investment Shares

Credential Financial Strategies Inc. is a member company under Credential Financial Inc., offeringfinancial planning, life insurance and investments to members of credit unions and theircommunities. ®Credential is a registered mark owned by Credential Financial Inc. and is usedunder licence. ‘MasterCard®’, ‘INTERAC’, ‘Member Card’, ‘Concentra Trust’, and ‘ConcentraFinancial’ are all registered trade or certification marks belonging to various organizations. WindsorFamily Credit Union is a registered user of these marks.


Five Year Financial History2008

$ 67,821256,492207,756

$ 532,069

$ 212,265333,516

$ 545,781

$ 612,9949.7%

$ 75,70017.5%

$ 688,69410.5%

$ 13,1275,009

$ 18,136

$ 16,053

$ 2,083

$ 50,276

2010

$ 52,806293,480266,260

$ 612,546

$ 247,880387,349

$ 635,229

$ 714,0348.6%

$ 76,60024.8%

$ 790,634 10.0%

$ 19,1054,169

$ 23,274

$ 17,791

$ 5,483

$ 56,567

May 31 Year-End Balances (000’s)

Balance SheetPersonal Loans Mortgage Loans Commercial Loans

Total Loans*

Variable Rate Deposits Fixed Rate Deposits

Total Deposits**

AssetsAnnual % Increase

Other Services Under AdministrationAnnual % Increase (Decrease)

Total Assets And Other ServicesUnder Administration

Annual % Increase

Statement Of Income Net Interest IncomeOther Income

Operating Margin

Operating Expenses

Income Before DistributionTo Members

Retained Earning And Equity Shares

2006

$ 45,219215,173161,988

$ 422,380

$ 144,699305,797

$ 450,496

$ 500,84812.1%

$ 51,800(4.6)%

$ 552,64810.3%

$ 12,6004,762

$ 17,362

$ 13,510

$ 3,852

$ 45,266

2007

$ 63,302242,139175,318

$ 480,759

$ 180,731323,630

$ 504,361

$ 559,04611.6%

$ 64,40024.3%

$ 623,44612.8%

$ 13,2704,952

$ 18,222

$ 15,166

$ 3,056

$ 48,259

2009

$ 62,439264,404229,426

$ 556,269

$ 234,794365,101

$ 599,895

$ 657,6447.3%

$ 61,400(18.9)%

$ 719,044 4.4%

$ 15,1024,005

$ 19,107

$ 18,090

$ 1,017

$ 51,215

*Excludes accrued interest receivable and allowance for impaired loans. ** Excludes accrued interest payable.

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Assets

Cash and Short-Term Deposits Investments Loans to Members Property and Equipment Other Assets Future Income Taxes

Liabilities and Retained Earnings

Members’ Deposits Loans Payable Other Liabilities Equity Shares

Retained Earnings

On behalf of the Board:

Martin D. Gillis Chair

May 31, 2010

$ 24,99457,381

612,613

16,8742,127

45

$ 714,034

May 31, 2009

$ 29,30553,342

556,159

17,5271,217

94

$ 657,644

$ 604,503-

1,92626,776

633,205

24,439

$ 657,644

To the Members:

The accompanying summarized balancesheet and statements of retainedearnings and comprehensive income arederived from the complete financialstatements of Windsor Family CreditUnion Limited as at May 31, 2010 and forthe year then ended on which weexpressed an opinion without reservationin our report dated June 25, 2010. Thefair summarization of the completefinancial statements is the responsibilityof management. Our responsibility, inaccordance with the applicable AssuranceGuideline of The Canadian Institute ofChartered Accountants, is to report on the summarized financial statements.

In our opinion, the accompanying financialstatements fairly summarize, in allmaterial respects, the related completefinancial statements in accordance withthe criteria described in the Guidelinereferred to above.

These summarized financial statementsdo not contain all the disclosures requiredby Canadian generally acceptedaccounting principles. Readers arecautioned that these statements may notbe appropriate for their purposes. Formore information on the credit union’sfinancial position, results of operationsand cash flows, reference should bemade to the related complete financialstatements.

Chartered AccountantsWindsor, CanadaJune 25, 2010

Auditor’s ReportOn Summarized

FinancialStatements

Robert Nesbitt Corporate Secretary

As at(In thousands of dollars)

Balance Sheet

$ 638,81015,000

3,65727,765

685,232

28,802

$ 714,034

Statement OfRetained Earnings

May 31, 2010

$ 24,4394,363

$ 28,802

Year-Ended(In thousands of dollars)

Retained Earnings:

Balance, beginning of year Add: Net income for the year

May 31, 2009

$ 24,41722

$ 24,439

- 12 -


Operating revenues:Interest on member loansInvestment income

Financial expenses:Interest on members’ depositsBorrowing CostsDistributions to members

Financial margin

Other income

Provision for losses on loans

Operating expenses:Employee salaries and benefitsAdministrativeOccupancyData processingMember deposit insuranceDirector and committee

Operating income

Other Items:Write up (down) of investments

Income before taxes

Provision for income taxes:CurrentFuture

Net income

May 31, 2009

$ 32,4941,778

34,272

19,14723

995

20,165

14,107

4,005

(2,122)

15,990

7,5054,1791,5871,010

324107

14,712

1,278

(1,196)

82

528

60

$ 22

May 31, 2010

$ 33,8801,278

35,158

15,917136

1,120

17,173

17,985

4,169

(1,753)

20,401

8,2634,3951,6061,011

383112

15,770

4,631

610

5,241

82949

878

$ 4,363

Year-Ended(In thousands of dollars)

Statement Of Comprehensive Income

- 13 -


Windsor Family Credit Union has maintained an AuditCommittee pursuant to Section 125 of the Credit Unions andCaisses Populaires Act, 1994. The Audit Committee whichconsists of five directors meets at least quarterly and hasadopted a mandate which covers all of the duties in theRegulations to the Act which are specified to be performed byAudit Committees.

As delegated by the Board, the Audit Committee has primaryresponsibility for review of audited financial statements,internal controls, accounting policies and reportingprocedures and it has primary contact with external andinternal auditors.

For the year ended May 31, 2010, the Audit Committee metfour times.

One of the Audit Committee’s significant activities this pastyear was with the credit union’s plan and preparedness toadopt International Financial Reporting Standards (IFRS) andreport its financial results by the May 31, 2011 deadline. Thecredit union has a comprehensive and robust plan in place.The credit union is using additional expert resources from theco-operative system and its external auditors to ensure itssuccess. The Audit Committee is confident the credit union is

in excellent shape to meet its obligations in a timely manner. The Audit Committee is effectively conducting its affairs inaccordance with the Act and the Regulations and hasreceived and continues to receive full co-operation frommanagement. There were no significant recommendationsmade by the Audit Committee or a previous Audit Committeethat have not been implemented or are in the process of beingimplemented.

As part of an overall plan for enhanced training anddevelopment adopted by the Board of the credit union in early2010, the Audit Committee’s members have participated insuch training and development as the committee considersappropriate.

The Audit Committee is not aware of any other matters thatare required to be disclosed pursuant to the Act or theRegulations.

Respectfully submitted by the Audit Committee.

Robert NesbittChair, Audit Committee

Management is responsible for the preparation, presentationand consistency of the accompanying financial statementsand other information contained in this Annual Report.

The financial statements have been prepared in accordancewith Canadian generally accepted accounting principles andhave been audited by KPMG LLP Chartered Accountants.

Management maintains the necessary system of internal controls to provide reasonable assurance that transactionsare authorized, assets safeguarded and proper recordsmaintained. This system of internal controls provides

reasonable assurance that financial records are reliable andare a proper basis for preparation of the financial statements.

The Audit Committee and the Board of Directors, in carryingout their responsibility, have reviewed and approved thefinancial statements.

Peter WasylykVice President, Finance

Management Report

Report Of The Audit Committee

- 14 -


Martin J. KomsaPresident and Chief Executive Officer

There is no doubt that Windsor and Essex County has comethrough challenging times, however, our entire region isresilient and has always come out of any adversity, strongerand better positioned.

WFCU continues to have tremendousoptimism in Windsorand Essex County.WFCU wants to bepart of the positivechanges that areshaping our region.

We believe the key toour success is toremain on the pathwe began more than25 years ago. Whatwill continue to guideus is our belief thatour number onepriority is to be thebest credit union,providing top qualityservices to ourmembers through thebest staff and to give back to thecommunity.

One of the keys to our success has and will continue to be,serving our members through quality service, offeringcompetitively priced products and services, providing acomplete range of financial, investment, insurance and trustservices, delivered through highly trained and motivatedstaff.

Our Board of Directors is committed to a strong governancemodel. Initiatives are under development to strengthen thisfocus.

We remain committed to serving our four market segments – personal, commercial, organization andinstitutional – ensuring that we respond with financialsolutions for their unique needs.

Our focal point for the future will include maintaining astrong brand identity through our innovative product andservice offerings. We will continue to provide the bestfinancial tools for our members. Following our corephilosophies and values will allow us to be a market

leader and serve ourmembers with thesame core principlesand values that haveguided us for over 70years.

We will continue to look forward tod e v e l o p i n ge n h a n c e m e n t srequired to meet thegrowing needs of ourmembers. Plans willbe announced in thefuture to ensure allour members haveaccess to all of ourservices throughoutWindsor and EssexCounty.

We are confidentthat our members

and our community will respond positively as we emergethrough the current economic transition. Windsor and EssexCounty will continue to change and grow in many ways. Theresult will be a strong Windsor and Essex County, morediversified and more cohesive. As in the past, WFCU will beready.

Martin D. GillisChair, Board of Directors

For The Future

- 15 -

Windsor Family Credit Union is financially strong with sound business

practices ensuring superior member service and positive future growth


WFCU Over The Years


Like a bank, only better!

FINANCIAL SERVICES•INVESTMENT SERVICES•INSURANCE SERVICES•TRUST SERVICES

519-974-3100 wfcu.ca


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