Alterna Savings and Credit Union Ltd. - THAN MORE · 2013. 4. 4. · your continued faith in our credit union was demonstrated by purchasing $34.5 million in our exclusive member

Bank fresh. Bank local.2012 ANNUAL REPORT

MORE THAN

NUM BERS.

Bank fresh. Bank local.2012 AnnuAl summAry

COnTEnTs

About Alterna Savings 2

Our People. Our Assets. 4

Report from the Board and Management 6

2012 Milestones 8

Accountability Summary 12

2012 Financial Highlights 16

Senior Management Team 20

Board of Directors 22

COMMuniTy RePORT

About AlternA SAvingS

Alterna Savings is a full-service, member-owned financial cooperative, serving communities through 22 branches in the Greater Toronto Area, the national Capital Region, as well as Kingston, Pembroke and north Bay. Our Quebec clientele are served through our wholly-owned subsidiary, Alterna Bank.

Power of Commitment

We offer competitive, reliable banking services that successfully empower members to build financial independence through financial planning, education, Micro Finance, and much more.

We’re proud to support local non-profit organizations and small to medium-sized businesses with a wide range of affordable financial services. We also invest in the communities we serve in various ways, including sponsorships, local employee involvement, and corporate donations.

We constantly strive to find better, more efficient ways to leverage our resources, people and capital to strengthen members’ wealth and well-being, and create positive impacts in our communities.

Alterna Savings is founded on cooperative business principles, which is why we dedicate considerable time and resources to support the success of other co-ops, community organizations, and you, our members.

2 AlTeRnA SAvinGS 2012 AnnuAl SuMMARy

visionvaluesmission

AlTeRnA SAvinGS 2012 AnnuAl SuMMARy 3

ourASSetS.

ourPeoPle.


What is success? it’s the purchase of a first home, a growing family, a local small business receiving a hand up to get off the ground. Success is your financially stable credit union enhancing services to make your banking more convenient. Success is you, our members, helping make your financial cooperative and community stronger.

2012 was a big year for Alterna Savings. Technological advancements, a successful investment shares offering, and new ways to bank with us are just a few highlights of the past year.

Services like Interac® e-Transfers and mobile banking provided more convenience that you, our members, have been asking for. Other sizeable undertakings, like the debit chip card launch, allowed us to meet compliance and industry standards. none of these projects were without their challenges, but throughout the process our project teams kept your overall experience and best interests in mind.

We look back on 2012 with pride in our people, our true assets, and the results they have achieved for you and our communities. As you explore this year’s report, we’re confident you will share our sentiments.

At Alterna Savings, you’re more than just a number – you’re our raison d’être, and where our true success lies.


AlternA iS more thAn the Sum of our ACCountS.Report from the Board and Management

This past year was characterized by continued financial and infrastructure growth for our organization.

Our vision and business strategy as a financial cooperative gained further validation from our members,

the financial services industry, and local and national media as we celebrated the international year of

Cooperatives. Our community relationships grew even stronger as we forged multi-year partnerships with

valued community organizations.

Alterna Savings remains strong and stable despite the turbulent global economic picture. We’re

committed to maintaining prudent financial practices and transparent reporting, and our approach has

translated into another year of good financial performance and strong, organic growth. We have delivered

on some significant achievements, including an overall reduction in expenses of almost $1.5 million, and

an increase in net income of almost 27% over 2011.

your continued faith in our credit union was demonstrated by purchasing $34.5 million in our exclusive

member offer of Series 3 Class A Shares, the most successful share offering in Alterna Savings’ history.

These dollars help grow our capital base to ensure the financial foundation is healthy and strong, and

allow us to make improvements where they’re most needed in our systems and processes. Together

with the deposit guarantee from the Deposit insurance Corporation of Ontario*, this strong capital base

provides peace of mind that your credit union is on very solid footing.

you often hear about our dedication to offering expert advice. When you bank with us, we seek to

understand all your financial needs, whether it’s planning for a downpayment on a house, your children’s

university fund, or your retirement. We’ll work with you to find the right path to your financial wellness.

Today’s economic uncertainty and market volatility have set a challenging course for anyone to navigate.


We hold ourselves to a very high standard, and believe in mutually-beneficial relationships, beginning

with proactive and open communication with our members. By getting to know you, our advisors are

able to anticipate your evolving needs and provide advice that is timely and relevant. More than ever,

our members depend on the right financial plan and the right financial advice. Our expanded number

of investment Advisors and partnership with Qtrade put the expertise and knowledge within reach to

help you plot your financial course.

As the uncertainty of the economy continues to dominate the world’s headlines, Alterna Savings will

keep the focus close to home. Our country has one of the best banking systems in the world, and credit

unions support local economies by investing in their communities. Alterna joins these forces together to

provide our members competitive products and services that really do make a difference.

At the end of 2012, we bid adieu to our President and CeO, John lahey. A longtime advocate of the

credit union system, John was well-known in the industry and in our communities as the voice and

face of Alterna. We wish him a healthy and happy retirement, and thank him for his years of guidance.

2013 promises to be another year of evolution as we welcome a new President and CeO, and continue to

deliver enhanced products and services with a holistic member experience at the forefront. We also look

forward to the grand opening of our new Place de ville branch in downtown Ottawa this summer.

Alterna Savings is comprised of talented individuals with bright minds and high ambitions, who desire

to be the ideal financial partner for all our members. We look forward to our bold and innovative future,

and thank you for being part of it.

DunCAn munnChair

joSé gAllAntInterim President & CEO

*uP TO $100,000, SOMe exCePTiOnS AnD exCluSiOnS MAy APPly.


9871

22 0 1 2 M i l e S T O n e S

20one YeAr. Coun tleSS memorieS.


12 6204

8one YeAr. Coun tleSS memorieS.


98

New reasons it’s great to be a member at Alterna Savings!

ImprOvEd TEChnOlOgy

you spoke, we listened! you told us that we needed improvements in our online services. in December 2011, a new website, online banking and telephone banking services were launched. Growth in online banking usage increased steadily in 2012 thanks to our new platform. And, since the introduction of mobile banking, iPhone banking app, smartphone locator apps and Interac® e-Transfers, momentum has steadily increased, making it much more convenient to bank with us.

no launch is without its challenges, but our various project teams and suppliers were able to resolve the majority of issues throughout 2012. The upgrade in website, online banking and telephone banking services were required in order for us to make it more convenient for our members to do business with us by meeting their demands for items like mobile banking and Interac® e-Transfers.

Also in early 2012, it became clear that we needed to improve our Contact Centre telephone system in order to serve you more efficiently. We successfully completed the update in August 2012, ensuring that all our members can reach our offices.

GOne MOBile

Alterna Savings introduced the convenience of on-the-go banking from mobile devices in the last half of 2012, kicking things off with the launch of mobile web and multi-platform locator apps in July. Interac® e-Transfers rolled out in late 2012 along with the iPhone mobile banking app. To help with the transition from our interim Funds Transfer to e-Transfer, we offered e-Transfers to members at no charge until March 4, 2013.

As the perfect complement to Interac® e-Transfers and online banking, we also partnered with Trusteer Rapport to provide the #1 online identity protection software to our members absolutely free.

dEbIT ChIp CArds

The long-awaited move to replace our magnetic stripe Alterna Access debit cards was also completed in 2012, successfully implemented before the December 31, 2012 deadline imposed by the Interac® Association. We’re pleased with the new look, and most of you activated your chip cards well before the end of December.

OnlInE nEwslETTEr

We ushered in another digital milestone at Alterna with the migration of our fresh! member newsletter to online, a move that will help us reach our environmental goals in coming years. not only that, it delivers news that’s important to you much faster than print.

AlTErnA sAvIngs sErIEs 3 ClAss A InvEsTmEnT shArEs

From October 3, 2011 until February 29, 2012, Alterna Savings offered an exclusive opportunity for members to purchase Series 3 Class A investment Shares, an equity investment in the credit union. These shares provided the ideal opportunity to earn an attractive rate of return, while strengthening the equity base, or financial foundation, of Alterna Savings. The funds from the sale of these investment shares helped us continue to exceed financial capital regulations, and have the necessary funds to invest in new technology, which we are using to offer expanded services to our membership.

QTrAdE wEAlTh mAnAgEmEnT pArTnErshIp

For the last few years, we’ve been working to reinvent wealth management services at Alterna with great results. Many of you are realizing the advantage that access to knowledgeable, qualified financial advisors provides, and in 2012 Alterna Savings increased the number of qualified investment professionals to further strengthen the Alterna Savings – Qtrade* wealth management partnership. This resulted in a tremendous year-over-year increase in Mutual Fund Dealers Association (MFDA) gross sales, of $27 million. Our focus in this area will continue well into 2013, and we invite you to speak to your branch to find out how you can take advantage of the financial expertise that is available as part of your Alterna membership.

As you can see, 2012 was a big year for Alterna Savings, our employees, and especially our members. To us, success is seeing the smiles on your faces.

$32mIllIOn

2012 MfdA SAleS

2011 2012

$59mIllIOn


97

482* Securities and securities related financial planning services are offered through Qtrade Advisor. Online brokerage services are provided through Qtrade investor. Qtrade Advisor and Qtrade investor are divisions of Qtrade Securities inc., Member of the Canadian investor Protection Fund. Mutual funds and securities related financial planning services are also offered through Qtrade Asset Management inc., member MFDA. insurance is offered through Qtrade insurance Solutions inc., a licensed life insurance agency and a member of Qtrade Financial Group.

retirement of john lAheY, PreSiDent & Ceo

At the end of 2012, Alterna Savings bid a fond farewell to John lahey, our President and CeO of more than five years. During his tenure with our organization, John successfully led Alterna Savings and Alterna Bank through a period of significant change, including the post-merger integration of CS CO-OP and Metro Credit union.

in the summer of 2012, John was invited to speak at the House of Commons about the status of cooperatives in Canada, and the impact credit unions have on the lives of underserved or marginalized Canadians. Also in 2012, John was recognized by the Ottawa Regional Cancer Foundation for his commitment to the Alterna Savings-sponsored ultimate Run for Men’s Cancers.

John’s many successes demonstrate that credit unions are not only a viable, competitive alternative to traditional banks, but in today’s marketplace, the only type of institution that credibly balances people, community and financial stewardship.


oPen book.oPen Door.Accountability Summary

in 2012, Alterna Savings took a long, hard look at what our Accountability reporting included in past

years, and what it actually meant to you. Based on our study, we’re pleased to share that we have

redefined our Accountability Key Performance indicators (KPi) as Community Investment, Financial

literacy, Environment, Employee Engagement, and member loyalty, which will provide you with a

much clearer picture on an annual basis of our focus areas. you will also be able to see areas where we

have made improvements based on indicators we will be measuring ourselves against.

CommunitY inveStment

Our vision is to make a positive and lasting impact in the communities we serve by providing access

to financial services to individuals who do not normally qualify through traditional financial institutions.

We will support projects or organizations that help to build healthy and strong communities. The key

performance indicator will be reported as net growth of Alterna’s Community investment loan Portfolio

and includes micro finance, social enterprise, and non-profit lines of business.

finAnCiAl literACY

We will strive to empower the communities we serve through financial education, reported as the

percentage of members who feel Alterna Savings offer relevant solutions and empowers them to make

informed decisions.

environment

We will actively reduce the overall impact of our operations through

limiting paper consumption, waste reduction and recycling activities.

This will be reported as a year-over-year comparison percentage of

paper recycled. To assist with paper reduction and environmental

sustainability efforts, in late 2012 Alterna began the implementation

of a printer consolidation program, providing multi-function, duplex

printers throughout the company.

Alterna’s e-Team, a committee of employees from across the

organization, researches and implements changes we can make to the

way we do business, small changes that help us reduce our impact on

the environment.


As you can see, as a result of redefining our Accountability reporting, target figures for 2012 for some

KPi’s are not available. Targets for 2013 are in the process of being established, and will be reported on

next year.

As is our standard practice, we have had our internal Audit Department independently verify these

numbers and provide a supporting written report to management.

rEpOrTIng ArEA FrEQuEnCy TArgET 2012 ACTuAl 2012

Community Investment

Net Growth of Community Investment Loan Portfolio (micro-finance, social enterprise and non-profit lines of business)

Annually Newly established reporting area

in 2012

+6.28%

financial literacy

% of members who feel Alterna offers relevant solutions and empowers them to make informed decisions

Annually Newly established reporting area

in 2012

69%

environment

Year-over-year % increase of paper recycled Annually Newly established reporting area

in 2012

+20.53%

employee engagement

Employee Engagement Score Annually 56.0% 60.0%

Members

Member Loyalty Index Annually 50.0% 44%

We’re accountable


emPloYee engAgement

Our annual survey of Alterna employees reflected that our engagement levels are the highest they

have been in the past 6 years. The survey pointed out areas where we are doing well and areas that

need improvement.

where we’re doing well:

• A strong social responsibility focus

• The ongoing reinforcement of strategy and goals, and favourable direct communication from the

leadership team around these efforts

• Our ongoing commitment to building a respectful workplace that recognizes individual contributions

In 2013, we are focusing on several key areas related to Employee Engagement. These include:

60%2012 EmplOyEE EngAgEmEnT sCOrE

Our ongoing employee development includes a variety of targeted learning initiatives to ensure our staff have the confidence and skills to effectively serve our members

Training and Development

2

Continuing to build the capability of our ‘people leaders’ through the ‘Lead the Experience’ development program

leadership Development

1

3

4

5

We are enhancing our product offerings and streamlining our internal processes, and have launched the implementation of refreshed service standards to ensure a positive member experience

Quality and Service

Enhancements to our Enabling Superior Performance System and competency evaluations

Performance Management

Continuing to improve our internal processes, enabling staff to perform their jobs more efficiently and productively e.g. Credit improvement process

Continued enablement


member loYAltY inDex

Alterna’s annual member survey provides insights into our membership’s opinions about our products and

services. Many members also take the opportunity to share where we’re strong, or where there may be

room for improvement.

We always welcome feedback, input and comments from our members – after all, we’re here for you, and

want to ensure we’re meeting your needs. The annual Member loyalty index is one key area we look at

closely to gauge just how well we’re doing that.

The Member loyalty index is comprised of questions related to overall member satisfaction, willingness

to recommend us to others, and whether our members intend to increase or decrease their business with

us in the coming year.

The overall satisfaction score remained unchanged from 2011 at 82%,

but is below the industry average of 87%. Alterna’s Member loyalty

index fell short of our 2012 target of 50%, coming in at 44%. This decline

can be attributed to several factors, including specific member feedback

related to the migration to new telephone and online banking services

in late 2011. in some cases, issues with the new services carried over

into early 2012. While members welcomed the new technology, it was

nonetheless a change that required time to adapt to.

We will be exploring options to increase the frequency of surveying and

staying in touch with members in 2013 to ensure we are aware of, and

are responding to, member needs in a timely manner. Additionally, other key areas we’re focusing on in

2013 to ensure member needs are met include:

• Continuing to expand and invest in online services

• A new, more streamlined complaint resolution process

As a credit union, it’s important to remember that resources and budgets are on a much smaller scale

than larger financial institutions, while, in some cases, regulatory costs are similar. At Alterna Savings,

we strive to put our limited resources to their best use, including prioritizing top areas for change that

will provide the best experience for our members.

2010 2011 2012

mEmbEr lOyAlTy IndEx

47%49%

44%

44%2012 mEmbEr lOyAlTy IndEx


Strength beYonD numberS.2012 financial Highlights

2012 was a testament to our members’ continued trust in Alterna Savings.

you invested $34.5 million in your credit union through the Series 3 Class A

shares offering – the most successful offering in Alterna history – which will

support our future growth and investment in products and services.

Once again, you increased the amount of business you do with us,

demonstrated by a growth in deposits of almost 4%, or $78 million. loans to

our members also increased by 5.5%, or $108 million.

A repeat of 2011, 2012 continued to be about carving out our piece of a highly competitive market, and

demonstrating utmost fiscal responsibility aligned with prudent business practices by closely managing

costs. Perpetually low mortgage rates continued to strain revenue generation – good news for our

members shopping for a mortgage, but an organizational challenge due to the compression of interest

margins. lower banking fees, reflective of the increasing average age of our membership who now qualify

for the no-fee Good life Banking Package, further limited revenue growth.

Staff and leadership restructuring in 2011, as well as significant investments

in iT infrastructure, were not repeated in 2012. Because of these changes,

our year-over-year overall expenses were reduced by almost $1.5 million, or

2.2%, helping to offset most of the year’s decrease in revenue.

After considering the effect of market rate fluctuations through unrealized

gains on financial instruments, as well as factoring in income taxes, the 2012

net income closed at $6.5 million, an increase of almost 27% over 2011.

This momentum of progressive financial performance is expected to carry

well into 2013, which will aid in our ongoing quest to improve member

products and services and meaningful investment in our communities.

$1.5m

ExpEnsEs rEduCEd by $1.5 mIllIOn, Or 2.2%

$78m

ThE pOrTIOn OF nEw dEpOsITs AT AlTErnA sAvIngs In 2012, COnTrIbuTIng TO AssET grOwTh OF OvEr 4%.


Consolidated Balance Sheet (in thousands of dollars)

DeCeMBeR 31, 2012

dEC 31, 2012 dEC 31, 2011AssETs

Cash and cash equivalentsInvestmentsLoans, net of allowance for impaired loansProperty and equipmentIntangible assetsDerivative financial instrumentsIncome tax receivableDeferred income tax assetOther assets

$ 59,214 226,466

2,072,842 11,246

2,714 3,883

890 1,463 7,484

$ 52,653 235,682

1,965,294 11,701 2,985 5,904

516 1,830 9,171

$2,386,202 $2,285,736

lIAbIlITIEs And mEmbErs’ EQuITy

liabilities:

DepositsBorrowingsDerivative financial instrumentsOther liabilitiesMembership shares

$2,152,673 37,873 1,671

28,301 1,513

$2,074,807 46,136

1,716 33,723

1,554

$2,222,031 $2,157,936

Members’ equity:

Special sharesContributed surplusRetained earningsAccumulated other comprehensive loss

56,716

19,282 91,173 (3,000)

24,059

19,282 86,539 (2,080)

164,171 127,800

$2,386,202 $2,285,736

dEC 31, 2012 dEC 31, 2011As at,


Consolidated Statement of Income (in thousands of dollars)

DeCeMBeR 31, 2012

Interest incomeInvestment income

$ 89,395 5,062

$ 92,400 6,059

Interest expense 94,457 31,121

98,459 33,861

Net interest incomeLoan costs

63,336 902

64,598 613

Other income 62,434 10,434

63,985 11,379

Operating expenses 72,868 65,491

75,364 66,969

Operating incomeUnrealized gains/(losses) on financial instruments

7,377 584

8,395 (2,036)

Income before income taxes 7,961 6,359

Provision for income taxes:

Current Deferred

1,066

412

927 312

1,478 1,239

Net income $ 6,483 $ 5,120

dEC 31, 2012 dEC 31, 2011For the years ended,


Consolidated Statement of Changes in Members’ equity(in thousands of dollars)

DeCeMBeR 31, 2012

Consolidated Statement of Comprehensive Income(in thousands of dollars)

DeCeMBeR 31, 2012

Net income $ 6,483 $ 5,120

Other comprehensive income:

Available-for-sale financial assets:

Net gain/ (loss) on available-for-sale securities (1)

Cash flow hedges:Changes arising during the year (2)

Less: Reclassification adjustments for gain/(loss) included in the income statement (3)

Net gain/(loss) on cash flow hedges

Defined benefit plan – actuarial losses (4)

(671)

(1,767)

1,667

(100)

(149)

2,468

2,284

(40)

2,244

(3,317)

(920) 1,395

Comprehensive income $ 5,563 $ 6,515

dEC 31, 2012 dEC 31, 2011

(1) net of income tax expense of $ 264 (2011 - recovery of $390)(2) net of income tax expense of $ 369 (2011 - expense of $408)

(3) net of income tax recovery of $ 3 (2011 - recovery of $7)(4) net of income tax recovery of $ 27 (2011 - recovery of $616)

For the years ended,

Special shares:

Balance, beginning of yearNet shares issued

Balance, end of year

$ 24,059 32,657

56,716

$ 23,960 99

24,059

Contributed surplus:

Balance, beginning of year


19,282

19,282

19,282

19,282

Retained earnings:

Balance at beginning of yearNet incomeDividend on special shares


86,539 6,483

(1,849)

91,173

82,391 5,120 (972)

86,539

Accumulated other comprehensive income (loss), net of tax:

Balance at beginning of yearOther comprehensive income (loss)


(2,080)

(920)

(3,000)

(3,475) 1,395

(2,080)

Members’ equity $ 164,171 $ 127,800

dEC 31, 2012 dEC 31, 2011For the years ended,


our Senior mAnAgement teAm

joSégAllAnt

Interim President & CEO,Senior Vice President and

Chief Financial OfficerniCkDirenzo

Senior Vice PresidentPersonal Banking Services

Senior Vice President Human Resources

joSettegAuthier


our Senior mAnAgement teAm

miChAelSomerville

Senior Vice President and Chief Information Officer

AllAn

jenSen

Vice President Commercial Services

frAnkgrigg

Vice President and Chief Internal Auditor


DunCAn munnChair Committees: Governance, ChairAttendance: 30/32Remuneration: $48,578Other Boards that Director Serves On:youth Challenge international

fAren bogAChDirector Committees: Governance, nominatingAttendance: 29/34Remuneration: $23,112

iAn bennettDirector Committees: Risk Oversight,Alterna BankAttendance: 37/41*Remuneration: $29,099*Other Boards that Director Serves On:Alterna Bank

kevin linDSeYVice Chair Committees: Governance, Risk OversightAttendance: 28/34Remuneration: $22,790

eArl CAmPbellDirectorCommittees: Governance, Alterna BankAttendance: 28/28*Remuneration: $17,677*Other Boards that Director Serves On:Alterna Bank, Ontario Credit union Charitable Foundation, Ontario Consent and Capacity Board, Scarborough Walk of Fame Board

ruth bAumAnnDirector Committees: Risk Oversight, ChairBusiness OversightAttendance: 31/32Remuneration: $27,041Other Boards that Director Serves On:Wychwood Barns Community Association

mArY-lu brennAnDirector Committees: Risk Oversight, nominating, ChairAttendance: 37/37Remuneration: $24,763


our boArD

rAnDAl heiDeDirector Committees: Business Oversight,nominatingAttendance: 27/29Remuneration: $25,875

ken ChAnDirector Committees: Finance & Audit, Business OversightAttendance: 21/23Remuneration: $18,648Other Boards that Director Serves On:Sherbourne Health Centre, Toronto licensing Tribunal, City of Toronto

normAn AYoubDirector Committees: Governance, nominatingAttendance: 35/36Remuneration: $29,175Other Boards that Director Serves On:Royal Ottawa Hospital, Highview Financial, lorax Systems

Peter oStAPChukDirector Committees: Finance & Audit, ChairAlterna BankAttendance: 38/39*Remuneration: $25,088*Other Boards that Director Serves On:icorp.ca inc., Royal Ottawa Hospital Foundation investment Committee, Alterna Bank

rAj kAPoorDirector Committees: Finance & Audit,Business Oversight, ChairAttendance: 33/35Remuneration: $26,513Other Boards that Director Serves On:The Whitestone Group, Whitestone Properties, Carleton Condominium Corporation 204

johAnne ChArbonneAuDirectorCommittees: Finance & AuditAttendance: 26/30Remuneration: $35,873Other Boards that Director Serves On:Central 1 Credit union, Certified General Accountants of Ontario

* COMBineD ATTenDAnCe AnD ReMuneRATiOn FOR AlTeRnA SAvinGS AnD AlTeRnA BAnK


EMPOWERING COMMUNITIES

INDIVIDUALS LOANS ASSET INNOVATE TO

BRIGHT MINDS MENTORING

CHILD YOUTHPOWER LEARN

BOYS GIRLS

COMMUNITY INVESTMENTS

Recognizing community is important to our organization and our members, in 2012 we

identified the need for a new level of focus and commitment to the community investments

we make. Like any investment Alterna makes, we are only able to contribute because

of business you, our members, have with us. It’s important that we invest wisely and

strategically with the long-term health of our organization in mind. When we started this

journey, we knew Alterna needed to stand for something and, over the past couple of years

with the help of our members and our employees we found that “something”.

Through comprehensive research, including employee surveys and member focus groups, it became apparent that

employees and members alike prefer a truly local focus for our investments and support, and believe that as a local

financial institution we should be focusing on supporting educational programs and poverty alleviation. We couldn’t

have agreed more, and the Power of Learning program was created.

The Power of Learning will provide funding to support educational programs by working with local community partners

like the recent Boys and Girls Clubs of Canada, Powerplay Strategies and Aqeta relationships. Our community efforts

and funding will focus on local programs that help develop essential life skills, including financial and personal skills,

career readiness, literacy, entrepreneurship and formal education for individuals who need a little help to reach their

full potential. And, you’ll be supporting causes you’ve told us are important to you.

BOYS AND GIRLS CLUBS OF CANADA

Alterna Savings

recognizes a brighter

future for Canada

depends on higher

education opportunities for all children and youth.

Canadians understand that when we invest in post-

secondary education and skills training today, we

build jobs and prosperity for tomorrow. Late in 2012,

we formed a new alliance with Boys and Girls Clubs

of Canada.

ACADEMIC SCHOLARSHIPS

During Alterna’s Power of Learning Community

Fundraising Campaign, local Alterna branches and

company employees raised $58,199 to provide post-

secondary scholarships for Boys and Girls Clubs

youth in their communities. This means we’ll be

providing 19 youth with scholarships!

YOUTH ABILITY TO BRING CHANGE (ABC’S) PROGRAM SPONSORSHIP

As part our partnership, Alterna will provide a corporate

donation of $150,000 over 3 years to support the Youth

ABCs (Ability to Bring Change!) program. This youth

mentorship program engages and equips participants

with the knowledge, skills and inspiration to make

positive changes in their own lives and become more

actively engaged in their Clubs, neighbourhoods and

communities. Program participants become better

informed about key issues, develop valuable training

and facilitation skills, and learn how to become positive

change agents – building stronger communities that we

can all be proud of.

COMMUNITY REPORT

At Alterna Savings, we’ve been investing in communities in one way or another for over a century.

As always, supporting, strengthening and helping build the communities we serve was a priority

in 2012. Providing community support is in our DNA, and forged in our everyday activities and

operations. Going far beyond numbers, the contributions to our communities are incalculable.

INCALCULABLE CONTRIBUTIONS

$40,000FOR CANDLELIGHTERS CHILDHOOD CANCER SUPPORT PROGRAM $108,199

FOR BOYS AND GIRLS CLUBS OF CANADA

Alterna communities are refreshed by these and other community investments.



















Alterna Savings


future for Canada

depends on higher






of Canada.





















COMMUNITY REPORT



























Alterna Savings


future for Canada

depends on higher






of Canada.





















COMMUNITY REPORT









Our commitment to community is stronger now than ever before – and we have the numbers to prove it. In 2012, our community investments including grants equaled 2.97% of our pre-tax profits. In any given year, the big five banks contribute approximately 1%.

In addition to Alterna’s corporate investments, our employees and members supported our communities through employee fundraising events and the Spare Change Program. The combined value to the community of Alterna Savings’ investments and the dollars raised by our employees and members totaled $382,357 in 2012.

To further our community support and contribution, in 2012 we introduced an Employee Volunteer Benefit program for all staff, providing 1 paid day per year to volunteer in an Alterna-sponsored charity of their choice.

COMMUNITY GRANTS

CHILD AND YOUTH FRIENDLY OTTAWA

Since 1997, Child and Youth Friendly Ottawa (CAYFO)

has served youth ages 10-24 in the greater Ottawa area,

regardless of economic status, race, and gender. CAYFO

reaches a vast number of youth from downtown Ottawa

to the city’s outskirts through established organizational

relationships, providing participants with the opportunity

to learn life skills they would otherwise not have access

to, through mentorship, engagement and education.

For more information about CAYFO, visit youthottawa.ca.

RIVERDALE IMMIGRANT WOMEN’S CENTRE (RWIC)

The Riverdale Immigrant Women’s Centre (RIWC)

supports marginalized women and helps them take

greater control over their lives. RIWC provides a broad

range of services to underserved groups such as youth and

seniors, and other vulnerable women who are isolated or

marginalized. Visit riwc.ca for more information.

In 2012, Alterna Savings was also pleased to support several organizations through our Community Grants program.

For a complete listing of the 2012 grant recipients, please visit alterna.ca. Here’s a small snapshot of the types of

organizations our Community Grants supported in 2012.

ALTERNA SAVINGS’ MICRO FINANCE

In 2012, Alterna Savings was proud to forge new relationships and strengthen existing ones with our

community partners. These organizations help Alterna fulfill dreams and improve lives one recipient at a

time by providing much needed financing for small businesses and entrepreneurs. More than just granting

loans for startup entrepreneurs, Alterna’s Micro Finance Program stresses the importance of financial

literacy among its members, and offers micro-lenders the advantages of complementary integrated

services such as financial planning, business development and networking opportunities, and promotional

assistance. To date, Alterna’s Micro-Finance programs have granted more than 400 loans totaling almost

$2 million.

In recognition of our pioneering efforts in Micro Finance, Alterna Savings was presented with the 2012

National Credit Union Community Economic Development Award from Credit Union Central of Canada.

The award honours the outstanding contribution credit unions make to the economic development of the

communities they serve, and focuses national attention on the leadership role they take on in inspiring

others to shape promising futures within their local communities.

Additionally, Alterna Savings was presented with the 2012 MicroSkills Corporate Spirit Award from the

Community MicroSkills Development Centre. This award recognizes an organization in the Greater Toronto

Area (GTA) which demonstrates a commitment to good corporate citizenship by creating innovative

opportunities for immigrants, visible minorities, low income women and/or youth.

Already established in the Greater Toronto Area and well-known throughout the served communities

through partnerships with organizations such as the ACCESS Community Capital Fund, our micro finance

program welcomed a new opportunity supporting Rise Asset Development. A collaborative effort between

the Rotman School of Management and the Centre for Addiction and Mental Health (CAMH), the Rise

program provides mentoring and development training through community partners, and assists in

achieving stronger, healthier communities through job creation and sustainable business growth, as well as

reducing the stigma of mental health through education and outreach.

As always, Alterna Savings is indebted to the Carleton Centre for Community Innovation (3ci) for their

research and contributions in evaluating our micro loan program in Toronto, whose borrowers include high

percentages of new Canadians and of women. Our organizations are currently collaborating on a new

sub-project as part of the Social Business for Marginalized Groups Project,

managed by the OISE/UT Social Economy Centre, and funded by the

Community-University Research Alliance (CURA) Program of the

Social Sciences and Humanities Research Council (SSHRC) of

Canada.

POWER OF LEARNING Recognizing community involvement at Alterna is important to our organization and our

members, we identified the need for a new level of focus and commitment be brought to

the community investments we make. Like any investment Alterna makes, we are only able

to contribute because of business you, our members, have with us. It’s important that we

invest wisely and strategically with the long-term health of our organization in mind. When

we started this journey, we knew Alterna needed to stand for something and, over the past couple of years


Through comprehensive research, including employee surveys and member focus groups, it became

apparent that employees and members alike prefer a truly local focus for our investments and support, and

believe that as a local financial institution we should be focusing on supporting educational programs and

reducing poverty. We couldn’t have agreed more, and the Power of Learning program was created.

The Power of Learning will provide funding to support educational programs by working with local

community partners like the recent Boys and Girls Clubs of Canada, Powerplay Strategies and Aqeta

relationships. Our community efforts and funding will focus on local programs that help develop essential

life skills, including financial and personal skills, career readiness, literacy, entrepreneurship and formal

education for individuals who need a little help to reach their full potential. And, you’ll be supporting

causes that are important to you.

PHOTO/ CALL OUT

PHOTO/ CALL OUT

ALTERNA SAVINGS’

MICRO FINANCE PROGRAMIn 2012, Alterna Savings was proud to forge new relationships and strengthen existing ones with our

community partners. These organizations help Alterna fulfill dreams and improve lives one recipient

at a time by providing much needed financing for small businesses and entrepreneurs. More than

just granting loans for startup entrepreneurs, Alterna’s Micro Finance Program stresses the

importance of financial literacy among its members, and offers borrowers the advantages of

complementary integrated services such as financial planning, business development and

networking opportunities, and promotional assistance. To date, Alterna’s Micro Finance

programs have granted more than 400 loans totaling almost $2 million.

In recognition of our pioneering efforts in Micro Finance, Alterna Savings was presented with

the 2012 National Credit Union Community Economic Development Award from Credit Union

Central of Canada. The award honours the outstanding contribution credit unions make to the

economic development of the communities they serve, and focuses national attention on the

leadership role they take on in inspiring others to shape promising futures within their local communities.


Community MicroSkills Development Centre. This award recognizes an organization in

the Greater Toronto Area (GTA) which demonstrates a commitment to good corporate

citizenship by creating innovative opportunities for immigrants, visible minorities, low

income women and/or youth.

Already established in the Greater Toronto Area and well-known throughout

the served communities through partnerships with organizations such as the

ACCESS Community Capital Fund, our Micro

Finance Program welcomed a new

opportunity supporting RISE ASSET DEVELOPMENT.

A collaborative effort between the Rotman

School of Management and the Centre for

Addiction and Mental Health (CAMH), the

Rise program provides mentoring and

development training through community

partners, and assists in achieving stronger,

healthier communities through job creation

and sustainable business growth, as well as

reducing the stigma of mental health through

education and outreach.

CO-OPERATIVE YOUNG LEADERS (CYL) CAMP

In partnership with On Co-op and the

Ontario Credit Union Charitable Foundation

For over 5 years, Alterna Savings has sponsored young

people for the Cooperative Young Leaders Camp

(CYL). This program, led by the Ontario Co-operative

Association, is designed to unite young people aged

14-18 from across Ontario, providing the opportunity

to learn about cooperatives, the guiding principles, and

practice communication and cooperative leadership

through activities.

We were pleased to once again support the ALTERNA

ULTIMATE RUN FOR MEN’S CANCERS in support of

the Ottawa Regional Cancer Foundation (ORCF) – a

longstanding tradition in the Ottawa region on Father’s

Day since 1999. Together with your generosity, we

donated $30,000, including member donations of

$23,256.34. In 2012, the ORCF recognized Alterna Savings

for our many years of support, presenting us with the

Survivorship Award .

TOTAL VALUE TO THE COMMUNITY:

$382,357

“I want to thank

you for the wonderful opportunity you provided me with

your sponsorship. The CYL camp was wonderful. I got to meet a great bunch of

kids and learned a lot about different types of cooperatives. I also learned a lot about Alterna and the services you offer through my research for my presentation. It is great to know that we are part of a cooperative

that believes in giving back to the community and its members.”

– MIRANDA W.

Employee Fundraising

Spare Change Program


Community Grants

$135,668

$186,689

$10,000

$50,000

As always, Alterna Savings is indebted to the

Carleton Centre for Community Innovation (3ci) for their research and contributions in evaluating our micro loan

program in Toronto, whose borrowers include high percentages of new Canadians and of women. Our organizations are currently collaborating on

a new sub-project as part of the Social Business for Marginalized Groups Project, managed by the OISE/UT Social Economy Centre, and funded by

the Community-University Research Alliance (CURA) Program of the Social Sciences and Humanities Research Council

(SSHRC) of Canada.

Empowering communities and individuals




COMMUNITY GRANTS





























$2 million.
























Canada.


















PHOTO/ CALL OUT

PHOTO/ CALL OUT

ALTERNA SAVINGS’












































through activities.











$382,357

“I want to thank





– MIRANDA W.




Community Grants

$135,668

$186,689

$10,000

$50,000






(SSHRC) of Canada.





COMMUNITY GRANTS





























$2 million.
























Canada.


















PHOTO/ CALL OUT

PHOTO/ CALL OUT

ALTERNA SAVINGS’












































through activities.











$382,357

“I want to thank





– MIRANDA W.




Community Grants

$135,668

$186,689

$10,000

$50,000






(SSHRC) of Canada.


2012 AnnuAl summAry

Call us1.877.560.0100

visit usalterna.ca

Email [email protected]

MIXPaper from

responsible sourcesFSC® C001844

Documents

Alterna Savings and Credit Union Ltd. - THAN MORE · 2013. 4. 4. · your continued faith in our credit union was demonstrated by purchasing $34.5 million in our exclusive member