NEWS RELEASE for
June 29, 2009
(EDMONTON, Alberta) - Steady loan and deposit growth despite a weak economy boosted the assets of Servus Credit Union Ltd. within sight of $10 billion during the second quarter of the 2009 financial year.
"$10 billion in assets will be a landmark in Alberta credit union history," said Garth Warner, President and CEO of Servus Credit Union. "It signifies the continued confidence of our members and the durable appeal of the attributes people value in credit unions – profit sharing, friendly knowledgeable staff, community support, deposit guarantee – in the Alberta marketplace."
In the first six months of the 2009 financial year loans grew by 2.8% to $8.6 billion (3.5% net of sale of mortgage pools) and deposits increased by 4.9% to $9.1 billion. Assets increased 4.3% to $9.9 billion. Income (before patronage allocation to members and income taxes) was $47.3 million, down 21.2% from the same period last year, while Net Income after patronage allocation, taxes and the extraordinary gain was down 7.7% from $40.4 million to $37.3 million.
"We forecast lower income this year due to the slowdown in Alberta and pressure on interest margin from the historically low prime rate," explained Mr. Warner. "Servus Credit Union is ahead of income projections at this point and we continue to perform well relative to other financial institutions. Our strong financial performance is enabling us to accrue for the sharing of our income through patronage payments to our members despite these challenging times. We are proud that as a credit union we are giving money back to the people and communities who do business with us when it matters most for them. However, we are looking forward with caution as we expect margins to tighten further this year. "
"A very successful deposit campaign and a 16.3% increase in commercial loans were bright spots for Servus Credit Union during this period," Mr. Warner indicated. "We are also starting to realize savings from the amalgamation as we integrate operations."
Servus Credit Union opened a second branch in Fort McMurray in March. Earlier this month a third Grande Prairie Servus branch opened its doors, as did a newly relocated branch in Sylvan Lake.
About Servus Credit Union Ltd.
Servus Credit Union is a full service member-owned financial institution serving more than 400,000 members through a network of 100 locations in 63 Alberta communities. Through the November 1, 2008 amalgamation with Common Wealth Credit Union and Community Savings, Servus has almost $10 billion in assets, making it the largest credit union in Alberta and the third largest in Canada. The amalgamation created the first province-wide credit union in the country. The credit union provides a complete line of banking services, including registered accounts, financing, investments, insurance, commercial banking, 24-hour on-line and telephone banking. Servus Credit Union member-owner deposits including accrued interest are 100% guaranteed by the Credit Union Deposit Guarantee Corporation. Operations are managed through the Edmonton head office with regional offices in Lloydminster and Red Deer. For more information, call 780.496.2000, toll free 1.877.496.2151, or visit www.servuscu.ca.
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For more information contact:
Gail Stepanik-Keber
Senior Vice President & Chief Marketing Officer
Servus Credit Union
T: 780.638.8011
C: 780.913.7629
Email: gstepanik-keber@servuscu.ca
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