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AGENDA

Call to Order

Confirmation of Quorum and Notice of Meeting

Appointment of Secretary

Approval of Agenda

Minutes of 2013 Annual Membership Meeting

Annual Report

Nomination Committee Report

Audit Committee Report and Appointment of Auditors

Auditors Report and Financial Statement

New or Other Business:

Service Awards

Other / New Business

Door Prizes

Adjournment of the Business Meeting

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Our Vision and Values VISION Working together to build better communities and provide the best financial services – anywhere, anytime, anyway. MISSION Our rural based Credit Union is a financially sound member owned co-operative that earns member trust and loyalty. Membership ensures access to a full range of competitive, high-quality, financial products and services that benefit both the credit union and the members. Our professional image is based on the use of sound business practices, our sensitivity to our member’s need and our convenient and friendly service. Our service is delivered by a dedicated group of individuals who are recognized and rewarded for their contributions. VALUES Positive Image and Professionalism The credit union is a respected and caring financial institution that serves its membership with professionalism. Sensitivity to members and community needs is a priority. Leadership We are an innovative organization that strives to meet the current and future needs of its members. Our knowledgeable staff and board exhibit leadership by direct involvement in community organizations and activities. Service Excellence We provide quality service in the most cost effective fashion for the convenience of our membership, to limit risk to both parties by working co-operatively together. Community Involvement We are a member owned and operated financial institution dedicated to supporting community events and projects as well as promoting community development. Co-operative Principals The credit union is a member owned financial co-operative operating for the betterment of the people and the communities we serve. We co-operate with other organizations and the credit union system for our mutual benefit. Financial Performance and Productivity We are a member owned and operated credit union which has the responsibility to manage member’s money and resources in a way which ensures the security and stability of the credit union. Product Excellence The credit union is committed to providing a full line of competitive, high quality products & services that are beneficial to both the credit union and the members.

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Co-operative Principles As a true co-operative financial institution, Radius Credit Union acts in accordance with internationally recognized principles of co-operation:

Voluntary and Open Membership Co-operatives are voluntary organizations, open to all persons able to use their services and willing to accept the responsibilities of membership, without gender, social, racial, political or religious discrimination. Democratic Member Control Co-operatives are democratic organizations controlled by their members, who actively participate in setting their policies and making decisions. Men and women serving as elected representatives are accountable to the membership. In primary co-operatives members have equal voting rights (one member, one vote) and co-operatives at other levels are also organized in a democratic manner. Member Economic Participation Members contribute equitably to, and democratically control, the capital of their co-operative. At least part of that capital is usually the common property of the co-operative. Members usually receive limited compensation, if any, on capital subscribed as a condition of membership. Members allocate surpluses for any or all of the following purposes: developing their co-operative, possibly by setting up reserves, part of which at least would be indivisible; benefiting members in proportion to their transactions with the co-operative; and supporting other activities approved by the membership. Autonomy and Independence Co-operatives are autonomous, self-help organizations controlled by their members. If they enter to agreements with other organizations, including governments, or raise capital from external sources, they do so on terms that ensure democratic control by their members and maintain their co-operative autonomy. Education, Training and Information Co-operatives provide education and training for their members, elected representatives, managers, and employees so they can contribute effectively to the development of their co-operatives. They inform the general public - particularly young people and opinion leaders - about the nature and benefits of co-operation. Co-operation among Co-operatives Co-operatives serve their members most effectively and strengthen the co-operative movement by working together through local, national, regional and international structures. Concern for Community Co-operatives work for the sustainable development of their communities through policies approved by their members.

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RADIUS CREDIT UNION LIMITED ANNUAL MEETING

Held Tuesday April 10, 2013 at the Holy Family Parish in Radville Chairman Ray Barbarin welcomed everyone to the Seventh annual meeting of Radius Credit Union. Ray called the meeting to order at 7:20 p.m. Ted Struthers presented confirmation of Quorum with 66 members and 1 Guests in attendance. He also gave proof of notice of meeting with the meeting being advertised in the Radville Star and Deep South Star more than 20 days in advance of the meeting. Ted Struthers was appointed as Secretary of the meeting.

Motion: by Mark Mellon and Mel Nimegeers to accept the agenda as presented. Carried.

Motion: by Marline VanDeSype and Ken Bourassa to accept the minutes from the April 3rd, 2012 annual meeting. Carried.

Ray Barbarin & Ted Struthers proceeded to present the Board of Directors & CEO report to the membership. Highlights are as follows: Highlights of the reports presented were as follows:

- Vision Mission and Values were reviewed. - Strategic Initiatives were discussed - 2013 Growth, Margin and Capital were discussed. - Long Term Planning was discussed - ERM process and focus on risk areas were presented - Regulatory environment and focus were discussed - Code of Conduct, Privacy, Market Code & IFRS compliance reports were given - Board Attendance, Remuneration and Expenses reviewed - Committees of the board and who is on them was presented - All Board members are actively participating in the CUDA training - It was noted that Gordon Young continues to be Radius and Bengough CU Delegate and

also that Gordon still sits on the Sask. Central Board - List of Board members, Terms and Years of Service were reported - A listing of all the staff, positions, years of service, as well as the locations they work. - The Organization Chart was also included.

Finance:

- Assets of Radius grew by over 9.50% in 2012 - Loans are up by just over 14.00% - Off Balance Sheet assets grew by just under 6.50% (explanation of what is included in

off balance sheet items was provided) - Patronage payment and amount discussed - Margin performance in 2012 as well as the five year financial plan highlights discussed

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- Capital status both Tier I and Risk Weighted reviewed and explained. - Capital position current and future expectations reviewed. - Loan activity report, delinquency and foreclosed property presented

Development:

- Organizational ERM process reviewed explaining the key areas of review as well as how this risk is measured and mitigated

- Further risk mitigation is implemented in the Strategic Plan and the five year financial plan

- Further update on our Technology processes, implementation of Global Payment CHIP cards, Member Direct enhancements and Mobile Banking were provided.

- Building and facility report was presented - Community sponsorship and support is still a key focus. It was reported that the staff

volunteer hours exceeded one thousand hours. - Staff and board were thanked for their dedication and commitment to the organization

and the membership. - It was reported that we remain as a strong corporate supporter in our communities and

informed the membership that there is as list attached showing some of our sponsorship and commitment made in 2012.

Auditors Report and Financial Statement - Presented by Rod Sieffert , Meyers, Norris & Penny:

- Rod reviewed the Manager’s responsibility note in the statement - Also reviewed the Auditors Report to the membership - Balance sheet and Financial Statement were presented in detail - Rod pointed out that the Financial Statement in the report was the short form; however

the full length report was available at the registration desk as well as on the Radius CU. Web site for anyone wishing to review or receive a copy.

- Closed with thanking staff, board and management for their assistance in conducting the 2012 audit.

Appointment Committee Report: Brenda Mazer Chairman of the Audit committee gave a detailed report on role and activity of the Audit Committee in 2012. Nominating Committee Report - Presented by Ken Bourassa: Ken Bourassa provided a detailed report on the composition and role of the Nomination Committee. He also spoke to the structure of the board and on the representation by district. Ken reported to the membership that we have Five / 3year terms expiring this year. We had five nomination forms, 2 for the Radville District and 2 for the Ogema/Pangman District and one from the Avonlea District. Ken reported that we had one extras board position in our bylaws so we have allocated the Avonlea nomination to that opening. No nominations this year from the Ceylon district. Ken also informed the membership we would be doing a bylaw review for next years meeting.

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Ken Bourassa reported the directors accepting 3 year terms were Gord Young, and Teresa Field for the Radville District and Brenda Mazer and Darcy Iversen Ogema/Pangman District and Tim Forer for the Avonlea District.

Motion: By Blair Kotz and Darcy Iversen to accept all the above reports as presented. Carried.

Motion: Brenda Mazer and Perry Johnson moved that we appoint Meyers, Norris, Penny to be our Auditors for 2013. Carried

New & Other Business: Service Awards: Mark Mellon & Ted Struthers were asked to present the Service Awards

Staff Service Awards were as follows: Dianna Weed – 5 years Travis Leonard - 5 years Candace Schindel – 5 years Erin Kessler – 5 years Lorna Lillejord – 25 years Gary Skjerven – 40 years Larry Lillejord – 40 years Board Service Awards were as follows: Teresa Field - 5 years Blair Kotz – 10 years Ray Barbarin – 25 years Gordon Young – 30 Years Door Prize winners were as follows: Krista Anta and Mark Mellon – Credit Union Go Cup, Kassie Robb & Linda Bolton – Water Bottle, Brian Madigan and Marlene Van De Sype – Desk Clocks, Eva Mazenc and Victor Frank – Thermos and Mary Struthers – Pen Set. Meeting was adjourned by Victor Frank @ 8:15 p.m.

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RADIUS CREDIT UNION LIMITED

8th Annual Report

Radius Credit Union has been in the community to serve you as cooperative partner for 8 years. The credit union has branches in Avonlea, Ceylon, Ogema, Pangman, and Radville. In 2014 we will add branches in Radius and Tribune as a result of the merger decision made in 2013. The Board of Directors strategically guides our credit union to fulfill the vision statement which is “Working together to build better communities and provide the best financial services – anywhere, anytime, anyway”. To remain a vibrant and viable business in the communities we serve, we strive to meet the many expectations this statement suggests such as: Cooperation Community development and leadership People development Products and Services to meet your needs Flexibility

Growth has been robust over the past year at 8.71%. Assets grew to over $200 million, which is $14 million over our budgeted target. Profitability was also strong with $916,612 in income after payment of patronage. Patronage of $213,000 was paid out to the membership as well. The remainder of the profitability was moved to our capital to ensure a strong base for future growth and opportunities. Loan demand was strong at 8.59%. Delinquency remains low at 0.37% indicating strength in our portfolio. Our loan to asset ratio is 60.34% which is comparable to 60.41% last year. Although these numbers are close the 2013 ratio is based on a higher asset base, loans grew by $9,569,784. In the business it is said that “Capital is King”, that holds true in our industry as well. We are building the capital to ensure stability and capability; this base will accommodate future development and capacity. Our capital grew by our retained profits which were $916,612. Over the past year we have worked on several ICAAP initiatives, moving our analysis of capital from a base model to a stress tested model to align with the new Basel III requirements. In this regard we have started to enhance our risk analysis process to further compliment the capital planning in order to ensure strength in our capital base. In 2014 we will mature these processes further. In late 2013 the membership approved a merger with Torquay Credit Union. This merger will provide both organizations with increased lending limits, diversification, market, expertise and ability. With any major initiative comes risks and costs, the upcoming year will focus on combining the two entities in technology, personnel and governance. Other strategic initiatives include training and development of staff. We are moving to a new performance management system that will enhance the motivation and accountability for our staff. Succession planning has also been a focus, we have a documented plan for succession and

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continue to work on cross training, coaching and mentoring to ensure its success. Technology is integral to the ability to serve our membership; we are doing an analysis of our technology risk and documenting our plan for future success in this area. CUDGC, the external auditor and the internal auditors have all acknowledged that Radius Credit Union meets or exceeds the audit results for credit unions of similar size. In addition, Radius Credit Union meets or exceeds all financial targets mandated by the Credit Union Deposit Guarantee Corporation.

Enterprise Risk Management Each year our Credit Union spends significant resources assessing risks and ensuring we are adequately prepared to serve our communities now and into the future. This process is called Enterprise Risk Management or ERM for short. The Board and Executive Management are responsible for managing risk. Based on a comprehensive review of the above we have analyzed our risks according to the impact to our credit union and the probability of occurrence. Each year we work diligently to close any gaps. The more significant risks we identified were inability to hire and retain appropriately skilled people; inability to acquire, implement, sustain effective technology solutions; management of the loan portfolio; and the risk that changes in market prices will negatively affect earnings or capital. Other risks that concern the board and management at this time are the risk of potential violations of or nonconformance with applicable laws, rules, regulations, prescribed practices or ethical standards and the improper management of excess liquidity. The following risks are discussed and analyzed and plans were made around initiatives to mitigate the risk: Credit Risk is the risk of loan portfolio management and compliance. It is also the loss arising from a borrower or counterparty’s inability to meet its obligations; this includes direct lending activities and holdings of investment securities. Credit risk arises from the counterparty’s inability or unwillingness to fully meet it’s on and off balance sheet contractual obligations. The credit risk on securities and loans relates to principal and interest amounts. Credit risk is managed by:

Restricting the concentration of credit to issues, issuer group and industry Aggregating credit exposures to a counterparty Determining appropriate levels of credit concentration commensurate with

ability to absorb credit losses while ensuring business continuity Monitoring the quality of the credit portfolio ensuring conservative

valuation, adequate provisions for impairment and timely recognition of losses through specific loss allowances and write downs

Prudent loan structuring and credit review processes Effectively managing monitored and non-productive assets

Credit Risk includes the impact of economic conditions on our loan portfolio and the ability of management to properly administer loans. This area is impacted by the number of new staff in

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the lending area, agricultural situation and impacts, economic conditions, aging population, competition, legislation and interest rate risk. We have a history of low delinquency and our recent growth has lowered the liquidity risk. Over the past year we have focused on training and development of lending staff, ongoing support, coaching and mentoring, and a review of the loan portfolio mix. In the coming year we will focus on diversifying and review the loan portfolio mix, staff training and development, succession planning, and implementing best practices recommended in audits Liquidity risk is the potential inability to meet obligations, such as liability maturities, deposit withdrawals, or funding loans without incurring unacceptable losses. Liquidity risk includes the inability to manage unplanned decreases or changes in funding sources. Liquidity Risk arises from the inability to generate or obtain necessary cash or equivalents in a timely manner, at a reasonable price, to meet on and off balance sheet commitments as they become due, without incurring unacceptable losses.

Liquidity Risk is managed through a three tiered structure including local, provincial and national tiers by:

Investing a significant portion of the investment portfolio in liquid, low risk instruments

Maintaining sufficient cash and cash equivalents to support daily liquidity needs

Maintaining a credit agreement with Concentra Financial for settlement purposes

Undertaking periodic stress testing Liquidity Risk includes the trend and stability of deposits, the adequacy of our liquidity in relation to our growth and diversification. In this area we looked at growth strategies, risk versus return, investments, rapid growth, reserves, capital management, economic conditions, demographics, our sales culture, loan syndication, diversification, competition, interest rate risk management, and product and service offerings. Over the past year we reviewed and enhanced our capital and stress testing tools and analysis as well as continued to diversify to ensure we reduce the risk in any one area. Over the coming year we will review the capital management plan and assess and review our liquidity requirements. Strategic risk refers to the potential for adverse business decisions or improper implementation of strategic decisions. This risk is a function of the compatibility of the credit union’s strategic goals, the business strategies developed to achieve these goals, the resources deployed against these goals, and the quality of implementation.

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The most important risks we assume are specific financial services risks and strategic risk arising from the general business environment.

Specific Financial Services Risks Our risk management processes distinguish among five kinds of specific financial services risks: credit, market, liquidity, regulatory and operational risk Strategic Risks Strategic or general business risk describes the risks that changes in general business conditions, such as our market environment, client behavior and technological progress, can cause. Adverse business decisions in response to such change or improper implementation of strategic decisions can affect our results.

Strategic Risk includes maintaining our key relationships and prudently planning and undertaking our operations. This area would include relationships with our members, staff, board, the provincial system, our alliance partners, our neighbors and peers as well as the ability and expertise to ensure adequate guidance and planning to meet our long term needs. The board and management focus on involvement and ongoing learning to ensure compliance. Our President sits as a delegate to SaskCentral. Over the past year we worked on the framework for updating performance management processed. Over the next year we will update our policies and procedures to reflect the new framework. Operational risk is the risk of loss resulting from inadequate or failed internal processes, people and systems or external events. Exposures to this risk arise from deficiencies in internal controls, technology failures, human error, employee integrity or natural disasters. Operational risks are understood to be the potential for losses due to unpredictable events (mainly business disruptions), inadequately defined controls or processes, and/or problems with service or product delivery. This risk is a function of internal controls, information systems, employee integrity, and operating processes. Operating Risk includes the ability to attract and retain qualified staff, afford effective technology solutions and maintain continuity in the face of a disaster. In this area we looked at the dual banking system, conversion costs, technology related products and services, maintenance, change management, IT support, alliance partners, efficiencies, commonalities, and the ability to provide products and services to meet member’s needs. We also looked at the retention and ability to hire qualified employees, compensation and benefits, HR policies, cross training, training and development, labor laws, our sales culture, organizational structure, roles and responsibilities and accountability. Over the past year we worked on implementation of an in house succession plan for technology support resources, continued to identify efficiencies, commonality between branches, worked through a registered product conversion to in house, implemented an risk assessment process that

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will determine our level of risk in the IT area, implemented and revised products as available to meet member needs and ensured all staff are prepared and trained on new products and services. Over the next year we will continue to work on training, development, support, coaching, cross training and succession for staff. We will continue to identify efficiencies, ensure commonalities between branches, re-work roles and responsibilities. We will review our products and create a risk assessment process that will determine our level of risk in the IT area. Market risk is the risk that changes in market prices will negatively affect earnings or capital. Losses can occur when values of assets and liabilities or revenues are adversely affected by changes in market conditions, such as interest rate or foreign exchange movement. Market Risk arises from three components which are first from interest rate risk which results from movement in interest rates. This risk primarily results from timing differences in the re-pricing of assets and liabilities, both on and off balance sheet, as they mature or are contractually re-priced. Second is price risk which results from changes in the market price of an asset or liability and third is foreign exchange risk which results from movements in foreign exchange rates.

Market risk is managed by:

Acquiring assets which are marketable with minimal risk of price fluctuations

Establishing market risk limits Monitoring exposure to changes in foreign exchange rates Monitoring exposure and simulating the impact of interest rate changes Using off balance sheet strategies Requiring that any action to mismatch the repricing dates of assets /

liabilities to attain higher earnings in anticipation of interest rate changes will be analyzed and reviewed to ensure compliance to policy.

Risks we looked at in this area are interest rate risk management, economic conditions, risk versus return, investments, past history, ability to respond to changes and competition. Over the past year we continued to ensure we are keeping a close watch on the situation and made adjustments as required. We have enhanced our monitoring, analyzing and reporting as well. Over the next year we will continue to monitor, report and adjust as required Legal and regulatory risk is the risk arising from potential violation of, or nonconformance with, laws, rules, regulations, prescribed practices, or ethical standards. Legal and Regulatory Risks includes compliance, risk management, operational and business planning, governance practices, organizational structure, audits and the changing environment. Regulatory risk arises from the organizations potential non-conformance with rules, regulations or prescribed practices in the jurisdiction in which the organization operates.

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Regulatory risk is managed by:

Regular monitoring of prescribed regulatory measures to ensure the organization complies with all regulatory requirements

Establishing policy parameters, when appropriate, limiting activities to a lower threshold than required for regulatory purposes.

Ensuring regulatory amendments are incorporated into policies and business processes on a timely basis

Balance sheet management decisions are made by Radius Credit Union based on an assessment of risk. Risk management activities are aimed at optimizing income and ensuring capital adequacy while maintaining acceptable levels of risk.

The Radius Credit Union balance sheet risk management objectives are:

1) To manage exposures to risk within regulatory and self-imposed limits 2) To ensure income and the capital base are stable under varying market conditions 3) To ensure adequate levels of capital

Strategies affecting balance sheet risk management are undertaken within approved policy limits and are reviewed regularly by management. Policy limits are prepared by management, reviewed by the Risk Committee and approved by the board. The organizations balance sheet management policies comply with the Credit Union Deposit Guarantee Corporation’s Standards of Sound Business Practices and the Credit Union Act, 1998. Radius Credit Union will comply with GAAP and IFRS. Specific accounting policies related to the balance sheet are outlined in the notes to the annual audited financial statements. Over the past year we implemented new regulatory standards and requirements, linked our planning documents to create efficiencies, implemented the requirements of Basel III, AML, PIPEDA, FISA and FATCA. In the coming year we will implement new regulatory standards and requirements, ensure consistency, linkage and accountability in our planning process, implement Federal legislation as proclaimed (Anti-Money Laundering amendments, PIPEDA (Personal Information Protection and Electronic Documents Act) amendments, FISA (Canadian Anti-Spam Law), FATCA (Foreign Account Tax Compliance Act)

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Capital Management

The fundamental strength of a credit union is the level of capital it holds to protect against normal, anticipated, and unexpected business events. Credit Union Deposit Guarantee Corporation (CUDGC), regulator of Saskatchewan credit unions, prescribes capital adequacy measures and minimum capital requirements to ensure the strength of the system as a whole. Radius Credit Union recognizes the importance and significance of capital management and has worked to ensure strength in this area. In this regard a Capital Plan has been approved, the purpose of which is to identify optimal capital ranges for our credit union and our plans to attain the identified goal. Too much capital would indicate that the credit union is not generating sufficient return on its capital; too little capital restricts the ability to grow and generate returns, it also increases the risk of having insufficient funds to protect against unexpected losses or liquidity needs. The Credit Union relies on profitability to grow its capital position and holds its total capital in retained earnings. Both balance sheet growth and profitability affect the Credit Union’s capital ratios. The Credit Union retains a portion of its annual earnings in order to meet its capital objectives. We manage capital in accordance with our capital management plan and board approved capital policies with a goal to achieve and exceed regulatory minimums, maintain an optimal level of capital, meet operational requirements, absorb unexpected losses, implement long term strategic plans and signal financial strength. The capital plan is developed in accordance with the regulatory capital framework and is regularly reviewed and approved by the Board of Directors. Risks are assessed annually through our Risk Management process as well our portfolio is stress tested quarterly. Regular reporting to the Board of Directors and the regulator are monitored through our audit process. There are several key measures of capital which value both the amount and the quality of capital holdings. Failure to comply with the regulatory limits may result in regulatory intervention. Radius Credit Union met all regulatory requirements in 2013 and plans are in place to ensure future compliance and early detection of risks. Tier 1 Common Equity Analysis: Minimum Regulatory Requirement 6.00% Recommended Conservation Buffer 2.50% Our current ratio 10.29% Policy 7.00% This is the total Tier 1 Capital as a percentage of total risk weighted assets. The regulatory minimum on this ratio using common equity in place of total Tier 1 equity would be 8.00%. We are currently well above the minimum requirement. This is a new ratio for 2013; as a result comparative data is not available. In 2013 our Tier 1 Base Capital ratio decreased by 3bps, it would indicate that this ratio would have followed as well. Growth rates were strong which would account for the change.

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Leverage Ratio Analysis: Minimum Regulatory Requirement 5.00% Our current ratio 7.86% Policy 5.50% This is the total eligible capital as a percentage of total leveraged assets. This is a new ratio for 2013, as a result comparative data is not available. We are well above the regulatory minimum and above policy. Risk Weighted Capital (RWC) Analysis: Minimum Regulatory Requirement 10.50% Our current ratio 12.85% Policy recommendation 10.75% This is the eligible capital as a percentage of risk weighted assets. In 2013 the RWC ratio increased by 58bps, we are well above the regulatory requirement.

Market Code

Radius Credit Union voluntarily adheres to the Credit Union Market Code. This code has been jointly developed by Saskatchewan credit unions, SaskCentral and Credit Union Deposit Guarantee to ensure the protection of credit union members. The code sets forth guidelines for the following areas:

• Complaint handling, which outlines the process for dealing with all complaints regarding the service, products, fees or charges of Radius Credit Union.

• Fair sales by outlining the roles and relationship of staff to all member/clients and in accordance with the financial services agreement.

• Financial planning process to advise member/clients on the risks and benefits associated with financial planning services.

• Privacy to protect the interests of those who do business with Radius Credit Union. Privacy is the practice to ensure all member/client information is kept confidential and used only for the purpose for which it was gathered.

• Professional standards to preserve a positive image of Radius Credit Union among our members, clients and communities.

• Capital management to ensure our capital structure aligns with our risk philosophy. • Financial reporting to adhere to business and industry standards. • Governance practices to adhere to the intent and stipulation of our corporate bylaws,

which are approved by the membership of Radius Credit Union. • Risk management to ensure all risks are measured and managed in an acceptable fashion.

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Code of Conduct

Our credit union has adopted a Code of Conduct for the organization. This code reflects Radius Credit Union’s vision, mission and values, policies, practices and board resolutions and will guide the behavior of directors, key executives and staff and demonstrates the commitment of the Credit Union to ethical practices. We are committed to supporting this code by ensuring employees and directors are provided with orientation and information that ensures understanding, awareness and commitment. This code outlines expected ethical behaviors and also states that at all times and wherever it operates, the credit union will comply with the letter and spirit of all applicable laws and regulations. Standards of day to day conduct will be higher than those required by law. At a minimum, no employees, directors or delegates acting on behalf of Radius Credit Union will at any time take any action that they know or reasonably should know will violate any applicable law or regulation. Our directors have a responsibility to act ethically and to be perceived to be acting ethically by the organizations and individuals with which they are associated. The employees must play a role of trustee and servant. The Board must play a role of leader/trustee and servant.

Privacy Code

We are committed to keeping members’ personal information accurate, confidential, secure and private. We adhere to a Privacy Code based on the Credit Union Central of Canada Model Privacy Code and the Model Code for the Protection of Personal Information. Ten interrelated principles form the basis of our Code for the protection of Personal Information (“the Code”). These principals are accountability, identifying purposes, consent, limiting collection, limiting use, disclosure, retention, accuracy, safeguards, openness, individual access, and compliance.

Board of Directors

The Credit Union Act, 1998, assigns the members of the board of directors the duty to direct the management of the business affairs of the credit union. To accomplish this, the board will (both directly and through its committees and president of the board) provide direction to the CEO to pursue the best interests of the credit union. The board of directors established formal delegations of authority, defining the limits of management’s power and authority and delegating to management certain powers to manage the business of the credit union. The delegations of authority conform to legislative limitations specifying responsibilities of the board that cannot be delegated to management. Any responsibilities not delegated to management remain with the board of directors and its committees. Among the board activities that derive from these responsibilities are strategic planning, financial and capital planning, monitoring, risk review, verification of controls, credit

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delegation, succession review, ensure the integrity of senior management, ensure director independence, ethics reporting, review of financial reporting and ensuring the integrity of financial information.

Our Board also deserves praise this year as they have worked diligently to ensure the long-term viability of our credit union. For 2013 our Board consisted of the following individuals and their attendance is also recorded as:

Director and Occupation

Representing District

Years on

Board

Meeting

Attendance

Committee Attendance

CUDA Levels

Obtained Keith Bacon, Occupation 1 15 10 /10 5 B, C

Ray Barbarin, Occupation 2 25 10 /10 11 A, C Ken Bourassa, Occupation 2 23 10/10 6 A, B

Teresa Field, Occupation 2 6 9/10 5 A Tim Forer, Occupation 1 1 7/10 3

Darcy Iversen, Occupation 1 25 3/10 3 A, B, C Perry Johnson, Occupation 1 23 7/10 3 A, B, C

Blair Kotz, Occupation 2 11 10/10 13 C Brenda Mazur, Occupation 1 7 10/10 11 A Mark Mellon, Occupation 1 16 8/10 4 A, B, C

Gordon Young, Occupation 2 31 3/10 1 C

District 1 is Ogema, Avonlea and Pangman. District 2 is Radville and Ceylon. The board carries out its responsibilities with the support of the following committees. Board are remunerated a per diem for board meetings, committee meetings and planning sessions, in 2013, the board was remunerated $17,300.00, travel paid to the board was $3,553.70, officials insurance was $3,549.00 and development and other expenses were $37,709.21. Total cost of the Board of Directors was $62,111.91. The committee members listed below were in effect for 2013, members of the committees may change at the Board Restructure Meeting held annually after the annual general meeting. The Executive Committee acts on behalf of the board of directors between regular or special board meetings on most board matters. The 2013 members of this committee were: Ray Barbarin – President Ken Bourassa - Director Keith Bacon - Vice President Gord Young - Director Ted Struthers – Secretary/Treasurer The Conduct Review Committee ensures related party transactions comply with legislation, standards of sound business practice and with credit union or committee policies and procedures. The 2013 members of this committee were: Keith Bacon Terri Field Perry Johnson

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The Building & Property Committee works with management to develop policies and plans relevant to credit union service facilities. The 2013 members of this committee were: Mark Mellon Gord Young Ray Barbarin Tim Forer The Nominating Committee oversees the nomination and election processes for elections of credit union directors. The 2013 members of this committee were: Terri Field Darcy Iversen Gord Young Tim Forer Member Relations Committee: this committee is the eyes and ears for the board of directors in the communities as to member’s product and service satisfaction. 2013 members of this committee were: Tim Forer Darcy Iversen Blair Kotz Perry Johnson Audit & Risk Committee: oversees risk management and ensures the integrity of financial reporting, adequacy of internal controls and adherence to relevant legislation, regulations and standards. Audit Committee also sets direction for and reviews the results of both Internal and External Audit. The 2012 members of this committee were: Brenda Mazer Ray Barbarin Blair Kotz The full board participates in annual strategic planning. Our policy states that the credit union will pay related tuition costs, expenses and remuneration for training and development opportunities, as outlined in the director remuneration1 policy of the credit union. It is acknowledged that the Credit Union Director Achievement (CUDA) program is the starting point for all director development. All new directors will be enrolled in this program. Individual attendance at the various modules of this program will be in accordance with the annual director development plan and budget. Attendance at credit union system meetings, conferences, conventions, and seminars provide opportunities to support director development. Due to the changes in our environment and the considerable increase of expectations in governance the board acknowledges that it would be prudent for them to retake their CUDA modules. The board gives of their time most willingly, and I want to thank all of them for their achievement and their dedication and loyalty. Gordon Young remains as the Delegate for Radius Credit Union to SaskCentral.

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Staff Senior management is made up of four positions including the CEO, Manager of Retail Operations, and the Loans Manager. The Chief Executive Officer (CEO) is the employee with ultimate responsibility for carrying out the wishes of the members and the board of directors. The CEO will report monthly to the board of directors and annually to the members at the Annual General Meeting. Ted Struthers fills this position with 34 years of experience. The Manager of Retail Services is the employee with the overall responsibility for managing the deposit portfolio, wealth management, compliance and fraud awareness. James McGregor fills this position with 25 years of experience. The Loans Manager has oversight over the loan portfolio and lending functions for the credit union. This includes all aspects of lending, collection and risk management as well as audit support. Gary Skjerven fills this position with 41 years of cooperative experience. Annually all staff receive training related to their positions, as well annual training is provided to all staff on Money Laundering, Privacy and Robbery preparedness.

ADMINISTRATION: NAME: POSITION YEARS OF CU SERVICE Ted Struthers CEO/General Manager 34 James McGregor Manager of Retail Operations 17 Gary Skjerven Manager of Lending Services 41 Janet Murray Admin Assistant 35 Lorna Lillejord Admin Assistant 25 Michelle Leonard HR/Marketing (ML) 1

WEALTH SERVICES: Sandra Scott Manager Wealth & Investment Services 34 Travis Leonard Wealth & Investment Services Officer 6

AVONLEA BRANCH: Tara Field Business Development Manager 15 Trina Holland Lending Service Rep (ML) 4 Dianna Weed Member Service Rep 6 Heather Broughton Member Service Rep 3 CEYLON BRANCH: Larry Lillejord Business Development Manager 41 Cheryl Rowland Lending Service Rep 20 Mary Jayne Pflanzner Member Service Rep 18

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Svitlana Lagun Member Service Rep 2

OGEMA BRANCH: Krista Klemenz Lending Service Rep 9 Cheryl Dixon Lending Service Rep 3 Randi McKerricher Team Leader/MSR Sup 7 Bev Mead Member Service Rep 35 Meagan Nagy Member Service Rep 3 Kathy Nagy Statement Services 12

PANGMAN BRANCH: Krista Antal Member Service Rep 3 Edna Petersen Member Service Rep 4 Donna Lillejord Member Service Rep

RADVILLE BRANCH Emile Mazenc Lending Service Rep 37 Roxanne Wiles Lending Service Rep 25 Carri Henheffer Loan Clerk 8 Denise Kaufmann Loan Clerk 3 Barb Verhelst Team Leader/MSR Sup. (LTD) 34 Erin Kessler Team Leader/MSR Sup. 6 Candace Schindel Member Service Rep 6 Norenne Sawyer Member Service Rep 2 Brenda Hofmeister Member Service Rep 2 Taylor Kaufmann Member Service Rep (ML = Maternity Leave, LTD = Long Term Disability)

Corporate Social Responsibility

As part of our mandate of working together to build better communities the credit union has maintained a local presence, engaged in environmentally friendly initiatives, contributed to various organizations and been involved in various events as listed below. Local presence: The credit union has physical branches located in Avonlea, Ceylon, Ogema, Pangman

and Radville. We have employed 37 local people; this contributed $1,851,418.93 in payroll income to

our local communities. Our staff and our board commit many hours of their own time to local government,

service clubs, sports teams, churches and committees; many are in executive positions

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with these organizations. The staff alone have contributed over 1,500 hours of volunteer time into our communities.

Environmental Initiatives:

We recycled our cans and bottles and donated the proceeds to Minor Ball and Minor

Hockey We have implemented a paperless retention system and work towards reducing our

footprint on the environment. Energy efficient lighting and heating are being utilized where possible.

Donations and Contributions: Over the past year Radius Credit Union made cash and prize donations totaling over

$70,000.00

The following is a list of the clubs, organizations and events that have benefited over the past year:

o High School Scholarships o Curling Bonspiels o Radville and Pangman/Ogema 4-H Clubs o Community Calendars o Ogema Museum o Kinsmen Club o Ogema School Landscaping o Minor Hockey Associations o Regional Parks o Radville Rodeo o Avonlea Museum o Lions Club o Ogema Railway Station o Minor Ball o Golf Courses and Tournaments o Dance Clubs o Ogema Fair o High School Yearbooks o St. Olivier School o Radville Swimming Pool o High School Athletics o Avonlea Senior Hockey o Pangman Genealogy o Agribition o Dirt Hills Wildlife Club

o Deep South Pioneer Museum o Terry Fox Run o Radville Chamber o Avonlea Museum o Local Regional Libraries o Ogema Rink Board o Deep South Personal Care Home o Radville EDC o Ogema Heritage Hall Project o Senior Sports Teams o Radville Senior Nats o Bengough Rec Centre o Juvenile Diabetes o Legions o Senior Clubs o Avonlea Figure Skating Club o Ogema Playschool o Crop Production Show o PFRA o Claybank Brick Plant o Co-op Youth Council o National Camp for the Blind o Deep South Super League o Pangman Health Centre o Local School Boards

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o Church Boards o Fishing Derbies o Skidoo Derbies o Radville Health Centre o Ogema Second Hand Store o Borderland Music Festival o Youth Councils o Meals on Wheels o Centennial / Homecoming Celebrations o High School Athletics o Gap Rec Centre o Ride for MS o Telemiracle o Radville Wild Life Federation o Town Councils

o Various School Community Councils o Pangman School Breakfast Program o Pangman Rec Centre o Ogema Ag Society o Radville – Laurier Regional Park o Communities in Bloom o Coaching and Managing Minor Sports o Avonlea Community Hall o Local Area Food Banks o Ceylon Rink o Ceylon Demolition Derby o Pangman EMS o Breast Cancer Society

Community Involvement: Our first Member’s Golf Tournament was held in mid-June with over 144 golfers

attending the Long Creek Golf Course. They enjoyed the beautiful course, a wide selection of prizes and finished the day off with a delicious steak supper.

Over the past year we have provided education to our membership by facilitating an

informational session with Rochelle Dobni speaking on Private Health Services Plans; Kathy Lloyd speaking on Insurance and Phil spoke on Farm/Business Succession Planning

Fat Cat hosted his birthday party in June to the delight of some young members. They celebrated with games and cake!

Each branch contributed to selling Helping Hands for Telemiracle 37, raising a total of

$1,484.98!! The annual Meals in the Field contest was held in each of our five communities, assisting

our hungry farming patrons in a successful 2013 harvest. Radius Credit Union participated in the Children’s Wish Foundation colouring contest in

2013, with one of our lucky little Avonlea members winning 1 of only a few gift baskets drawn provincially!

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Nomination Committee Report

The Nomination Committee for 2013 was Tim Forer, Terri Field, Darcy Iversen and Gord Young. The purpose of the Nomination Committee is to oversee the annual nomination and election of directors for the Radius Credit Union. The Committees role is to ensure there are sufficient qualified nominees to fill each vacancy on the board. No election was required for 2014. In December 2013 a membership meeting was called for the purpose of approving a merger between Radius Credit Union and Torquay Credit Union. Subject to approval given at that meeting by both amalgamating credit unions the first directors of the amalgamated credit union and their terms of office are as follows: Name in Full Place of Residence Expiry of Term

Tim Forer Avonlea, Sask. (D1) 2017

Brenda Mazer Ogema, Sask. (D1) 2017

Darcy Iversen Weyburn, Sask. (D1) 2016

Perry Johnson Ogema, Sask. (D1) 2016

Mark Mellon Ogema, Sask. (D1) 2015

Keith Bacon Ogema, Sask. (D1) 2015

Ken Bourassa Radville, Sask. (D2) 2017

Blair Kotz Radville, Sask. (D2) 2017

Raymond Barbarin Radville, Sask. (D2) 2016

Gordon Young Radville, Sask. (D2) 2016

Teresa Field Radville, Sask. (D2) 2015

Steven Berg Bromhead, Sask (D3) 2016

Rick Williams Tribune, Sask (D3) 2017

.

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Audit Committee Report

The Audit Committee for 2013 was Brenda Mazer, Ray Barbarin, and Blair Kotz. The Audit Committee’s purpose is to ensure an independent review of the credit union’s operation in the areas deemed necessary to maintain the integrity of financial data, adequacy of internal controls and adherence to The Credit Union Act, 1998 and our policies. The committee directs, reviews and approves the letter of engagement for the external auditor (Meyers Norris Penny) and internal audit (SaskCentral), annual audit fees, audit plans and scope of the audits before the auditors commence work for the current year. The committee reviews the performance of the internal and external auditors and makes a recommendation to the Board of Directors and the membership at the Annual General Meeting on the appointment of the external auditor for the ensuing year. Credit Union Deposit Guarantee (Regulatory Audit), Meyers Norris Penny (External Audit), and SaskCentral (Internal Audit) have all acknowledged that Radius Credit Union meets or exceeds the audit results for credit unions of similar size. In addition, Radius Credit Union meets or exceeds all financial targets mandated by the Credit Union Deposit Guarantee Corporation. The audit committee was pleased with the reporting provided by Meyer Norris Penny for the 2013 year. The committee would recommend to the membership that we appoint Meyer Norris Penny as our auditors for the 2014 fiscal year.

Blair Kotz, Chairman Audit Committee

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CREDIT UNION DEPOSIT GUARANTEE

CORPORATION ANNUAL REPORT MESSAGE 2013

January 2014

Deposits Fully Guaranteed Credit Union Deposit Guarantee Corporation is the primary regulator for Saskatchewan credit unions. The Corporation is given its mandate through provincial legislation, The Credit Union Act, 1998, for the main purpose of guaranteeing the full repayment of deposits held in Saskatchewan credit unions. The Corporation has successfully guaranteed the repayment of deposits held in Saskatchewan credit unions for 60 years – since 1953. By guaranteeing deposits and promoting responsible governance, the Corporation contributes to confidence in Saskatchewan credit unions. Keeping with the Corporation’s approach of continually monitoring changes in the broader regulatory environment, the Standards of Sound Business Practice were redeveloped to further align with federal and international regulatory approaches. In addition to redeveloping the Standards in 2013, the Corporation implemented a revised capital framework and a new financial monitoring system. By monitoring risk in credit unions, the Corporation can identify potential issues early and credit unions can take corrective action. The Corporation acknowledges that Saskatchewan credit unions have a long history of holding themselves to high standards, and have demonstrated their willingness to adopt credible, industry-based standards. This helps to ensure Saskatchewan credit unions can successfully meet the challenges of a rapidly changing financial services industry and increasing regulatory requirements. For more information about deposit protection, the Corporation’s regulatory responsibilities and its role in promoting the strength and stability of Saskatchewan credit unions, talk to a representative at the credit union or visit the Corporation’s web site at www.cudgc.sk.ca.

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The Credit Union Difference… Local ownership and control Each credit union is an autonomous, separate entity, owned and controlled by local people. By purchasing a share in the credit union for a minimal cost, customers of the credit union become members. Each member owns one share and has one vote. Members elect Board Members to control the direction of the credit union. Members vote on major decisions being made by the credit union. The local board hires the General Manager/CEO of the credit union. Community investment Credit union earnings stay in the community. Credit unions sponsor local interests and initiatives. Credit unions remain in the community, because that’s where their customers and their member-owners are. Credit unions contribute to the local economy by providing employment and by having a presence in that community. Almost 3,500 knowledgeable and professional people work in credit unions across the province. Credit union employees are active participants in the community. Strength through partnerships Each credit union is part of a network of credit unions and related organizations providing all the financial products and services required by today’s diverse members. Credit unions have access to trust services, leasing, small to medium-sized business financial services, card products, wealth management, financial planning, investment and insurance services through this network. Provincially regulated Credit unions are provincially regulated. The Credit Union Act, 1998 provides the overall framework for the incorporation and regulation of credit unions in Saskatchewan. The Act describes the responsibilities, obligations and powers of credit unions, the Registrar of Credit Unions and the Credit Union Deposit Guarantee Corporation. Credit Union Deposit Guarantee Corporation is given responsibility by the provincial government to guarantee the full amount of funds on deposit with Saskatchewan credit unions and to provide preventive services that support the financial strength of credit unions.