SAFECU Credit
Union and Capital City Savings announce intent to amalgamate
December 13, 2005
Mr. Al Huntley, Chair of the Board of Directors of SAFECU Credit Union, and Mr. Peter Galloway, Chair of the Board of Directors of Capital City Savings, announced that their Boards have passed resolutions recommending an amalgamation of the two credit unions.
The terms of the amalgamation agreement will be presented to the members of SAFECU Credit Union at a Special Membership Meeting on January 11, 2006. If approved by the members, SAFECU Credit Union and Capital City Savings will formally amalgamate on November 1, 2006. SAFECU will join a credit union formed by the amalgamation of Capital City Savings and Servus Credit Union that is effective the same date. Servus Credit Union will be the name of the proposed new credit union as of that date.
"SAFECU Credit Union has been studying amalgamation for some time and we concluded Capital City Savings represents the best opportunities for our members and our employees," stated Mr. Huntley of SAFECU. "As well as a larger branch network that overlaps the area where our members live and work, Capital City Savings can give our employees enhanced training and promotional opportunities."
The new credit union will operate under the name of Servus Credit Union as of November 1, 2006. All current SAFECU, Servus and Capital City Savings employees will remain part of the amalgamated credit union. The new credit union will be the largest in Alberta with nearly $3 billion in assets and 181,000 members. Approximately 800 employees will provide members with financial services through a network of 48 locations serving 26 central and northern Alberta communities.
"We are pleased to welcome the members and employees of SAFECU to our credit union family," said Mr. Galloway. "The proposed Servus Credit Union will embrace the legacies of more than 60 Alberta credit unions, each of which has loaned its strength to an organization that continues to embrace service, local ownership, integrity and community support."
"Our members are looking forward to the expanded range of products and services that a larger organization can offer," stated Mr. Rick Kapty, General Manager of SAFECU Credit Union. "SAFECU members live across Alberta, so they will benefit immensely from the large Capital City Savings branch network, plus sophisticated services like trust and estate planning."
Capital City Savings
supports agricultural education with 4-H scholarships
December 9, 2005
(Edmonton, Alberta) - Capital City Savings today announced the eight recipients of the credit union's 2005 Alberta 4-H scholarships, awarded annually to 4-H members who have demonstrated outstanding 4-H achievement, community involvement and academic standing.
Capital City Savings awarded $500 scholarships to:
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Lacey Fowler, Minburn
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Raymond Gonnet, Onoway
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Shari Hagstrom, New Norway
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Tamara Hahn, Leduc
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Joanne Kuhn, Fort Saskatchewan
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Nicole Kushnerick, Holden
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Cody Sekura, Rocky Rapids
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Ashley Tkachuk, Nestow
Capital City Savings has contributed to various 4-H club activities for a number of years, and enhanced its support in 2003 by adopting the 4-H Scholarship Program. The Capital City Savings and Credit Union 4-H Scholarship Program is administered by the 4-H Foundation of Alberta and Alberta Agriculture, Food and Rural Development.
The education and development of youth is an ongoing priority for Capital City Savings. The credit union has awarded $90,500 to students through the Suzanne Mah Scholarship and Capital City Savings Bursary Program since 1997. Other youth projects supported by Capital City Savings include Leaders of Tomorrow Awards, Partners in Education and Student Artwork Calendar. The credit union created the Capital City Savings Kids Foundation in 1997 to improve the quality of life for children in need.
December 7, 2005
(Edmonton, Alberta) – Capital City Savings gave its member-owners 8.4 million reasons to confirm their choice of financial institution as the right one.
Capital City Savings paid member-owners a record $8.4 million in dividends on December 1, 2005. The amount represents 39% of the credit union's net income before taxes and the sixteenth consecutive year of dividend sharing, for a cumulative total of $69.9 million.
"Profit sharing is a major advantage of dealing with Capital City Savings," stated Harry Buddle, President and CEO of Capital City Savings. "We believe in sharing our success, and this means an $8.4 million increase in the financial well being of our member-owners and the communities where they live and work."
During the past financial year, Capital City Savings amalgamated with Yellowhead Credit Union, Wildrose Credit Union and Clover Bar Credit Union to create an organization with 41 service locations in 20 Alberta communities. "As we have grown, so has the amount shared with the member-owners who trust us to help them with financial services and advice," said Mr. Peter Galloway, Chair of the Board of Directors. "We remain true to our cooperative roots and the values that have contributed to our success."
Servus Credit Union
and Capital City Savings announce intent to amalgamate
To be released Thursday, December 1, 2005
The Boards of Servus Credit Union and Capital City Savings and Credit Union announce that they have passed resolutions recommending an amalgamation of the two credit unions. The terms of the amalgamation agreement will be presented to the members of Servus Credit Union at a Special Membership Meeting on January 19, 2005.
If approved by the members, Servus Credit Union and Capital City Savings will formally amalgamate on November 1, 2006. Servus will join a credit union formed by the recent amalgamations of Capital City Savings, Yellowhead Credit Union, Wildrose Credit Union and Clover Bar Credit Union.
"Servus Credit Union saw the opportunity to join with Capital City Savings as a means to create a new credit union with more advantages for members, employees and the communities we serve," said Mr. Denis Richer, President of the Board of Directors of Servus Credit Union. "We are shaping modern day credit unions as organizations that come together to benefit from the efficiency of size without ever losing the unique qualities that make a credit union special - local ownership, sharing our profits and serving our members with the very best products and personal service."
Servus decided to partner with Capital City Savings because of greater learning and promotional opportunities for employees, more access for member-owners who travel to other areas of Alberta and the sharing of resources, including a dedicated call centre, state of the art information technology and employee learning centre.
The new credit union will operate under the name of Servus Credit Union, with regional representation on the Board of Directors. All current Servus and Capital City Savings employees will remain part of the amalgamated credit union. As of November 1, 2006, the new credit union will be the largest in Alberta with nearly $3 billion in assets and 179,000 members. Approximately 800 employees will provide members with financial services through a network of 47 locations serving 26 central and northern Alberta communities.
"Years of careful planning and hard work at Servus and Capital City Savings have created loyalty amongst our members that is the envy of the banking community. We don't take that for granted; we intend to make the experience of dealing with us even more positive, more financially beneficial," said Mr. Peter Galloway, Chair of Capital City Savings. "In agreeing to change our name to Servus Credit Union, we will let more people know about our superior service, and that we remain a credit union with roots in the communities where we live and work."
"The cultures at Servus and Capital City Savings are similar - we both tend to make decisions by asking ourselves if the outcome is good for the members, good for the employees, good for the credit union and good for the communities we serve," stated Mr. Ray Duchesneau, CEO of Servus Credit Union. "As we reviewed this amalgamation, we answered yes in all cases. Our members will receive the best in branch location convenience and service levels while the staff can take advantage of improved career opportunities and superior training."
Significant benefits expected from the proposed amalgamation, include:
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Continued banking services in communities and neighbourhoods assured by a stronger credit union with almost $3 billion in assets
Expanded branch network of 47 locations across north central Alberta in 26 communities
Larger appeal to consumers and communities with the Servus Credit Union name
"This amalgamation is not about today - it is all about tomorrow, the future! We are about to create a new credit union, one that is strong with solid values and is 100% owned by Albertans," explained Mr. Harry Buddle, President and CEO of Capital City Savings.
Contacts:
Denis Richer
President, Board of Directors
Servus Credit Union Ltd.
Tel. (780) 645-3641 or 645-8660 Tel.
Peter Galloway
Chairman, Board of Directors
Capital City Savings and Credit Union Limited
Tel. (780) 998-3036 or 906-7138
Ray Duchesneau
Chief Executive Officer
Servus Credit Union
Tel. (780) 645-6111 or 645-0890 Tel.
Harry Buddle
President & Chief Executive Officer
Capital City Savings and Credit Union Limited
(780) 496-2002
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Capital City
Savings Celebrates Student Artwork Calendar
For release at 12:00 noon November 15, 2005
(Edmonton, Alberta) - Capital City Savings unveiled the credit union's 16th annual Capital City Savings Student Artwork Calendar, which celebrates the beauty and diversity of our communities through illustrations that depict the theme "Life in My Community".
During the ceremony Capital City Savings presented cheques totaling $11,000 to representatives of participating schools. Over the past fifteen years, Capital City Savings has donated more than $105,000 through this program to support art programs and to enrich the educational experience of students.
Capital City Savings hosted a luncheon for the student artists, their parents and other dignitaries and presented each student with a framed print of their artwork. Their drawings will appear in 30,000 calendars distributed free of charge at all Capital City Savings branches.
The works of the featured students were chosen from over 3,000 submissions. Representatives from the Edmonton Art Gallery and a team of Capital City Savings staff, management and Directors had the difficult job of selecting fourteen drawings for the calendar.
The education and development of youth is an ongoing priority for Capital City Savings. This year the credit union gave $10,500 to students through the Suzanne Mah Scholarship and Capital City Savings Bursary Program, and $4,000 in scholarships to 4-H members. Capital City Savings sponsored publication of a children's history book to mark Edmonton's Centennial, and donated a copy of the book to 500 elementary schools. Other youth projects supported by Capital City Savings include Leaders of Tomorrow Awards, Partners in Education, School Awards Programs and the Mayor's Arts Awards. The credit union also created the Capital City Savings Kids Foundation in 1997 to improve the quality of life for children in need.
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November 3, 2005
(Edmonton, Alberta) - Capital City Savings celebrated the dedication and commitment of 86 loyal employees marking credit union service milestones of five, ten, fifteen, twenty, twenty-five and thirty years.
"Capital City Savings is a success because our employees deliver on our promise of service," said Harry Buddle, President and CEO of Capital City Savings. "The fact that Capital City Savings has repeatedly earned member satisfaction ratings of 94% conveys volumes about how well they do their work."
Receiving special mention at the ceremony were three employees who reached the thirty year mark in the past year: Dave Pollitt, former Information Manager and now retired; Sheryl Sims, Assistant Manager Member Service, 107 Avenue Branch; and Caroline Ziober, Vice President Urban Branches.
The 2005 Capital City Savings Employee Service Award recipients represent a collective 1,075 years of service, an average of 12.5 years each. Measured together, all Capital City Savings employees put 5,650 years of credit union experience to work for members each day. Approximate 25% of the staff (156 employees) have more than 15 years experience.
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October 20, 2005
(Edmonton, Alberta) - On October 20, 2005 Capital City Savings and Credit Union Limited will join 53 Alberta credit unions, and more than 43,000 credit unions in 91 countries, to celebrate International Credit Union Day.
"Capital City Savings and our predecessor credit unions have been providing financial services to Albertans since 1938," stated Harry Buddle, CEO and President of Capital City Savings. "We are very proud to maintain the cooperative principles of service, member ownership, shared success and community support."
Credit unions throughout the world give people the opportunity to belong to a financial institution guided by democratic principles, local ownership and profit sharing. International Credit Union Day, established in 1948, celebrates the history, tradition and spirit of the international credit union movement annually on the third Thursday in October.
"Unlike traditional banks, our customers are our owners," Mr. Buddle continued. "They have turned to Capital City Savings and other credit unions because we offer a different approach to banking, one that puts people first."
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Capital City Savings
announces winner of Edmonton Fall Home Show $10,000 draw
October 14, 2005
(L to R) CCS Board Chair Peter Galloway, draw winner Wayne Jensen, Gail Stepanik-Keber, VP Marketing.
(Edmonton, Alberta) - Capital City Savings presented a $10,000 cash prize to Wayne Jensen of Edmonton, who entered his name in a draw at the Edmonton Fall Home Show held September 30 to October 2, 2005 at Northlands Agricom.
"I didn't believe it when Capital City Savings called me," said Mr. Jensen. "I thought my friends were pulling my leg." His plans for the money include an extended Mexican holiday on his Harley this winter.
Capital City Savings drew Mr. Jensen's name from approximately 10,000 ballots entered at the credit union's booth during the Fall Home Show. Capital City Savings was presenting sponsor of the Edmonton Fall Home Show for the first time.
"It is incredible how friendly everyone at Capital City Savings is," Mr. Jensen declared after being presented a cheque by Peter Galloway, Chair of the Capital City Savings Board of Directors, and Gail Stepanik-Keber, Vice President Marketing. "They are not cold and hard like most banks."
"We congratulate Mr. Jensen on his win, and thank all the attendees who entered the Capital City Savings $10,000 draw," said Ms. Stepanik-Keber.
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Capital City Savings
awards post-secondary funding to 23 students
For release 5:30 p.m. October 3, 2005
(Edmonton, Alberta) - Capital City Savings and Credit Union Limited today presented $10,500 in scholarship and bursary awards to 23 students through the Suzanne Mah Scholarship and Capital City Savings Bursary Program.
Anupinder (Andie) Bains, a graduate of Harry Ainlay High School in Edmonton, received the $2,500 Suzanne Mah Scholarship. Scholarship finalists Lillian Lim, a graduate of Old Scona Academic High School and Joel Semeniuk, a graduate of Strathcona High School each received secondary scholarships of $1,000. Twenty-one other recipients won bursaries of $300 each. Capital City Savings presents awards annually to graduating high school students who show leadership in both their academic and volunteer pursuits and who have been accepted into an Alberta post-secondary institution.
Capital City Savings established the Suzanne Mah Scholarship and Capital City Savings Bursary Program in 1997 to honour the memory of Suzanne Mah, daughter of Vic Mah, Capital City Savings' first Chair of the Board of Directors. The scholarship was created to recognize Suzanne's leadership to eliminate discrimination and prejudice, and exemplary work in her law practice.
The education and development of youth is an ongoing priority for Capital City Savings. Earlier in this financial year the credit union gave $4,000 in scholarships to 4-H members who demonstrated outstanding 4-H achievement, community involvement and academic standing. Other youth projects supported by Capital City Savings include Leaders of Tomorrow Awards, Partners in Education and Student Artwork Calendar. The credit union also created the Capital City Savings Kids Foundation in 1997 to improve the quality of life for children in need.
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September 7, 2005
Kids urge loved ones: Be safe
(Edmonton, Alberta) - Capital City Savings hopes to improve rural safety in Lamont County by delivering 600 postcards bearing personalized safety messages from local children to family and friends.
Students who attended the Lamont County Rural Health and Safety Day on June 10, 2005 designed and addressed the postcards as part of the day's activities. Capital City Savings offered to mail the postcards during harvest, the most dangerous time of year in rural Alberta, to drive home the need to observe safe work practices.
"Some of the messages are funny, and some are very touching, but their sincerity is evident," said Joan Ostby, Manager of the Lamont Branch of Capital City Savings. "These postcards will be powerful reminders about safety to everyone who receives one."
Lamont County Rural Health and Safety Day was presented by the Capital City Savings Lamont Community Council and other community partners. The day offered fun and educational learning experiences about rural safety through hands-on demonstrations of real life situations. More than 100 volunteers helped to bring the event to life, teaching children about health and safety related to large machinery, animals, chemicals, fire, and recreation, among others.
Rural Family Safety Day was initiated and supported by the Capital City Savings Lamont Community Council. Other supporters included Lamont County, ACICR Community Injury Control Fund, Andrew Agricultural Society, East Central Health, Family and Community Support Services - Lamont County Region, Lamont County Agriculture Service Board, Lamont & District Agricultural Society, MediCare, Mundare Agricultural Society, Parkland Conservation Farm, Shell, Town of Lamont and Wilde & Company.
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Capital City Savings
improves student loan with higher ceiling, more benefits
August 29, 2005
(Edmonton, Alberta) - In time for the new school year, Capital City Savings increased the amount available to students through its Next Step student loan program, improved withdrawal and repayment options, and doubled the grace period before repayment of principal is required.
"We are very aware of the increased costs of education, and consequently, the greater needs of students," explained Gail Stepanik-Keber, Vice President Marketing at Capital City Savings. "Young adults are also very savvy consumers who seek more flexible loan terms."
Qualifying full time students can now access $7,500 per year from Capital City Savings, up from $5,500, to a maximum of $30,000 over four years. Part time students will be eligible to access $3,750, increased from $2,750, to a maximum of $15,000 over four years.
Rather than a standard term loan for the full amount, students will access their funds through a line of credit, withdrawing what they need, as they need it (up to the annual maximum). Interest is payable only on the portion withdrawn, potentially saving money on interest payments while still providing access to the full amount. Students can also make extra payments whenever they are able.
Students who qualify for a Next Step loan will be extended the maximum annual amount each year upon proof of registration, avoiding the inconvenience of re-applying for a new term loan each year. Any credit not used in previous years remains available to the student.
Capital City Savings doubled the grace period before repayment of principal is required, to 12 months after graduation. During this time students are responsible only for payments on the interest. Interest will be Prime + 1%, the same as in previous years.
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Diversity
fuels third quarter results at Capital City Savings
August 23, 2005
(Edmonton, Alberta) - Capital City Savings posted solid loan and deposit gains in the third quarter of 2005, reaping the results of an extensive product and service offering, a larger branch network and growing reputation for service excellence.
"We have worked very hard to introduce competitive new services while maintaining our high member satisfaction levels," said Harry Buddle, President and CEO of Capital City Savings. "These efforts are producing positive results on the balance sheet and in member approval ratings."
While consumer loans were a particularly active area for Capital City Savings in the past quarter, Mr. Buddle pointed to commercial banking, trusts, estate planning, insurance and investment advice as additional areas of growth for the credit union. Capital City Savings also introduced a new auto dealer program, new mortgage products and made greater inroads into home builder markets.
Key financial performance indicators for the third quarter of Capital City Savings' 2005 financial year included:
· Assets - $2.42 billion
· Member loans - $2.12 billion
· Member deposits - $2.26 billion
· Income - $14.4 million (before Profit$hare dividends and income taxes)
· Member equity - $150.9 million
"We continue to invest in our branch network and other service channels, such as Net Banking, which influenced on our earnings this quarter," explained Mr. Buddle. "We believe our excellent service gives us an undeniable edge with both members and potential members, and we will maintain that advantage."
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Capital City Savings
makes vacation property affordable with only 5% down
August 15, 2005
(Edmonton, Alberta) - Capital City Savings now gives qualified consumers the power to buy a vacation property or second home with only a 5% down payment.
"We are responding to increased interest in vacation homes by making it easier for people to buy the property they dream of," said Gail Stepanik-Keber, Vice President Marketing at Capital City Savings. "Capital City Savings is one of the first financial institutions in Alberta to make this offer."
In the past, recreational properties and second homes did not qualify for high ratio mortgages as these were not a primary residence. Through a partnership with Genworth Financial Canada, Capital City Savings is able to reduce the down payment required. Capital City Savings hopes to capture a larger share of the growing vacation home market, and assist members who may be considering a second home, such as a residence for a child attending university.
"Capital City Savings takes great pride in anticipating the needs of our member-owners and helping them build a better quality of life," stated Ms. Stepanik-Keber. "An innovative service like this is one example of how we accomplish this."
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Capital City
Savings announced $10,000 Debt Payoff winner
July 20, 2005
(Edmonton, Alberta) - The "Debt Scale" tipped much closer to zero when Delores Smith accepted a cheque for $10,000 from Capital City Savings as winner of the $10,000 Debt Payoff.
Capital City Savings presented a $10,000 cheque to Mrs. Smith as she stepped on a large "Debt Scale". The scale immediately "lost" $10,000 of debt, to the delight of Mrs. Smith and her husband Frank. "I'm just amazed, Capital City Savings has made my day, my month, my year." The credit union is just excellent and I've always enjoyed dealing with them," said Delores Smith.
"Capital City Savings created the Debt Payoff campaign to show consumers how they could save money by consolidating higher interest loans at a lower rate," said Ian Glassford, Capital City Savings Chief Financial Officer. "We want to help our member-owners improve their financial position, and showing them how to trim their debt is a powerful way of doing that."
Everyone who took out a new loan or mortgage at Capital City Savings between January 3, 2005 and June 30, 2005 was automatically entered in the $10,000 Debt Payoff. Delores Smith's name was drawn from all eligible entries on July 12.
Debt Reduction Tips
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Develop a budget with realistic wants, not just your needs. It's easier to stick with a plan that gives you some rewards and incentives.
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Leave room in your budget for the odd big surprise.
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Reduce your number of credit cards to make it easier to track your spending.
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Set up a loan with regular monthly payments to reduce revolving debt.
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Pay down the debt with the highest rate first and consolidate at a lower rate.
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Use money from a debt you've paid down to start a savings program.
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Don't fall into the temptation to start another debt after you consolidate. It could leave you in worse shape than when you started.
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Capital City
Savings Kids Foundation raises $24,000 for Stollery Children's Hospital Foundation
August 16, 2005
(Edmonton, Alberta) - The Capital City Savings Kids Foundation today presented a cheque for $24,000, and 100 moose, to the Stollery Children's Hospital Foundation, representing proceeds from a fundraising campaign by the employees of Capital City Savings and Credit Union Limited.
"I want to thank all the staff of Capital City Savings for their hard work and commitment to this year's campaign," said Kid's Foundation Chair Karen Anderson. "Once again they stepped up to the plate, and with the generous support of our members, we are able to help improve the quality of life for children in Alberta."
The employees of Capital City Savings raised the funds for the Capital City Savings Kids Foundation by selling stuffed moose and sunbursts to members, and by purchasing their own Kids Foundation T-shirts and paying to wear them on 'jean days' during April and May. All proceeds from these efforts were donated by the Capital City Savings Kids Foundation to the Stollery Children's Hospital Foundation.
"We appreciate the support of the Capital City Savings Kids Foundation," said Dianne Young, President and CEO, Stollery Children's Hospital Foundation. "Organizations like Capital City Savings are helping us improve health care for children in Alberta."
The Capital City Savings Kids Foundation was created in 1996 to raise funds for the purpose of improving the quality of life for children today. Since then, the Kid's Foundation has donated almost $200,000 to community projects such as school breakfast programs, literacy programs, family support programs and social organizations focusing on children.
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June 6, 2005
(Edmonton, Alberta) - Capital City Savings and Credit Union Limited completed integration of operations with two merger partners to augment its presence in the Edmonton financial services market during the second quarter of 2005. At the same time, Capital City Savings achieved earnings of $9.3 million (before ProfitShare dividends and income taxes).
"Our latest member survey shows an overall satisfaction rate of 96%, primarily because of our personal service," stated Harry Buddle, President and CEO of Capital City Savings. "With the convenience of more branches, a growing product line and competitive rates, we expect to sustain that figure and introduce more Albertans to Capital City Savings."
Key financial performance indicators for the second quarter of Capital City Savings' 2005 financial year included:
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Assets - $2.34 billion
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Member loans - $2.02 billion
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Member deposits - $2.18 billion
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Income - $9.34 million (before Profit$hare dividends and income taxes)
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Member equity - $146.8 million
Earnings for the first six months were up 2.7% over the same period last year, despite higher expenses associated with amalgamation activities. Capital City Savings consolidated operations with both Wildrose Credit Union and Clover Bar Credit Union, expanding the Capital City Savings service network to 40 locations.
"Our amalgamations put our branch network on an equal footing with competing financial institutions in our trade area," said Mr. Buddle. "Combined with our great service and other advantages, we are in a good position to build on our exceptional member loyalty and expand our market share."
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Capital City Savings
meets business needs with new web banking platform
May 19, 2005
(Edmonton, Alberta) - Capital City Savings has launched a new Commercial Net Banking service, making online banking even more powerful and convenient for businesses.
Commercial Net Banking is a comprehensive online banking system which gives commercial members more control over their accounting and finances. An expansion of Capital City Savings' current Business Net Banking platform, it enables businesses to do almost all of their banking 24 hours a day in a highly secure, automated and efficient online environment.
"Our Commercial Net Banking platform incorporates functions and controls that will save members time and money," states Craig King, Assistant Vice President Business Banking. "After almost two years of development time we are confident we have created a service that gives businesses the tools to better manage their banking."
Capital City Savings jointly developed the Commercial Net Banking system with Cambrian Credit Union in Winnipeg and St. Willibrord Credit Union in Ontario. It is designed to meet the needs of commercial members and is one of the first of its kind in Canada for credit unions.
"This new service reflects our increased capacity to meet the complex needs of big businesses," explained Mr. King. "Capital City Savings is winning more large commercial members, who are attracted by the same excellent service, regional market knowledge and local decision making that have always appealed to small and medium sized businesses."
"I think the new system is terrific," says Cathy Luke, President of Tokyo Express and new Commercial Net Banking user. "It is a very good system - easy to use and efficient. It saves me a lot of time."
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Capital City
Savings announces FY 2004 and Q1 2005 results
March 4, 2005
Capital City Savings strengthens regional prominence through growth, amalgamations
(Edmonton, Alberta) - Capital City Savings and Credit Union Limited topped $2 billion in assets during 2004 and expanded its market with two amalgamations, adding ten branches and 21,000 members. Alberta's largest credit union will celebrate these achievements at its Annual General Meeting on March 8, 2005 at the Francis Winspear Centre for Music.
"In 2004 we completed a three year strategic business plan that advanced our credit union to an entirely new level and strengthened our position in the market," said Capital City Savings President and CEO Harry Buddle. "We accomplished this by growing our business and by attracting other successful organizations to join us."
At the Annual General Meeting Capital City Savings will announce key performance figures (for the fiscal year ended October 31, 2004, prior to amalgamation with Yellowhead Credit Union and Wildrose Credit Union):
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assets - $2.03 billion
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deposits - $1.84 billion
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loans - $1.75 billion
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earnings - $18.6 million (before Profit$hare® dividends and taxes)
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member equity - $124.4 million
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member dividends - $7.2 million
Earnings growth stabilized in 2004 after several exceptional years due to the low interest rate environment and very aggressive competition within the financial industry. Operating expenses rose in 2004 as Capital City Savings opened three new full service branches, a new Business Banking Centre in south Edmonton and tripled the size of the Fort McMurray branch. Preparation for amalgamation with Yellowhead Credit Union and Wildrose Credit Union also increased costs.
Capital City Savings paid $7.2 million in dividends to member-owners in 2004, equal to 39% of the credit union's income. Management bolstered the credit union's capital base by 13%, positioning Capital City Savings to take advantage of opportunities offered by a rapidly changing financial marketplace, including mergers with other credit unions and new growth opportunities.
"The 2004 financial year capped a very successful three year business cycle for our credit union," stated Mr. Buddle. "We are confident that our strategy, which is based on superior personal service, innovative financial solutions, the unique benefits of credit union membership and community involvement, will continue to serve us, and our members, well in the future."
2005 First Quarter Highlights
Capital City Savings' plans for geographic expansion and association continued during the first quarter of the 2005 financial year with announcement of a new amalgamation, a unique affiliation agreement and the opening of new branches.
Capital City Savings began the year on November 1, 2004 by officially amalgamating with Yellowhead Credit Union and Wildrose Credit Union. Capital City Savings and Yellowhead fully integrated operations on that date, and Wildrose operations will be completely merged on May 7, 2005.
In January the Board of Directors of Clover Bar Credit Union passed a resolution to amalgamate with Capital City Savings. Clover Bar Credit Union members voted to approve the amalgamation on March 2, 2005. The merger will be effective May 1, 2005.
Also in January 2005 Capital City Savings and Edson Savings and Credit Union announced an Affiliation and Business Services Agreement, a first in the Alberta credit union system. Edson Savings will continue to operate independently under their own name, with a member-elected Board of Directors. They will adopt the Capital City Savings banking platform, obtain access to specialty departments and have the option of using other organizational expertise. Capital City Savings will obtain an additional source of revenue immediately and the opportunity to earn future revenues.
Capital City Savings officially opened new branches in Stony Plain and Mundare in January. The Stony Plain branch, with 15 employees, serves more than 4,000 members and offers Stony Plain's first drive thru ATM. Capital City Savings was pleased to offer services to Mundare after citizens and businesses from the community approached the credit union when the local bank branch closed.
Capital City Savings' financial performance showed steady growth during the first quarter. Key indicators included:
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Assets - $2.26 billion
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Member loans - $1.98 billion
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Member deposits - $2.11 billion
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Income - $4.35 million (before dividends and income taxes)
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Member equity - $143.0 million
Capital City Savings requalified as one of the 50 Best Managed Companies in Canada. The 50 Best program recognizes companies that have demonstrated exceptional ability and aptitude in all areas of management and business practices.
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Clover Bar
Credit Union and Capital City Savings announce intent to amalgamate
March 3, 2005
Reg Jerome, President of the Board of Directors of Clover Bar Credit Union Ltd., and Peter Galloway, Chairman of the Board of Directors of Capital City Savings and Credit Union Limited, announced that their Boards have passed resolutions recommending an amalgamation. The amalgamation was approved by the members of Clover Bar Credit Union at their Annual Membership Meeting on March 2, 2005.
"We were very happy with the proposal we received from Capital City Savings," said Mr. Jerome. "Given the changing circumstances at the Celanese site, we were seeking a credit union partner that would continue to provide our members the best possible service at one convenient location. Capital City Savings' branch in Fort McMurray was also a factor, as many of our members may be relocating or commuting to work there."
"We are pleased to provide the members and employees of Clover Bar a new 'home' within our credit union family," said Mr. Galloway. "This is a great match as it strengthens our presence in the market and expands options for their members within a credit union service setting."
The amalgamation will become effective May 1, 2005. To serve the Clover Bar members, Capital City Savings will open a new branch in North East Edmonton.
"Amalgamation with Capital City Savings gives our members access to more products and services than we could offer previously," stated Laurene Sparrow, General Manager of Clover Bar Credit Union. "Our members will benefit from services such as wealth management, plus 56 ATM locations."
"Our team has built a strong product and service foundation here at Capital City Savings," explained Harry Buddle, President and CEO of Capital City Savings. "Our staff can take a great deal of pride in the fact that other credit unions are recognizing the advantages an association with us can offer."
Clover Bar Credit Union has assets of $5 million, approximately 500 members and four employees. It has operated from the same location at Celanese Canada since 1953 as a closed bond credit union. Capital City Savings serves 163,000 retail and business members through a network of 40 service locations in 20 central and northern Alberta communities. It has $2.3 billion in assets and 700 employees.
Contacts:
Laurene Sparrow
Clover Bar Credit Union Ltd.
Tel. (780) 471-0417
Harry Buddle
General Manager President & Chief Executive Officer
Capital City Savings and Credit Union Limited
Tel. (780) 496-2002
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Capital City
Savings officially opens new Mundare branch
January 28, 2005
(Edmonton, Alberta) – Capital City Savings today celebrated the official opening of its new Mundare branch, the eastern anchor of a network serving the Yellowhead Highway corridor all the way to its western Alberta terminus in Jasper.
Capital City Savings expanded into Mundare when CIBC announced plans to close their branch, leaving only an ATB agency with limited service hours in the town. After conducting a feasibility study and hosting a town hall meeting, Capital City Savings opened a temporary location last July, and then moved into the vacated CIBC building in November 2004.
"People and businesses from Mundare approached Capital City Savings for financial services in May 2004," Harry Buddle, President and CEO of Capital City Savings, explained. "We have proven that the features of a credit union, supported by sound management, can sustain a viable financial institution in smaller communities."
The Honourable Ed Stelmach, Minister of International and Intergovernmental Relations and MLA for Fort Saskatchewan – Vegreville, and Michael Saric, Mayor of Mundare, joined Mr. Buddle and Board Chairman Peter Galloway of Fort Saskatchewan in cutting the opening ribbon of the new facility.
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Capital City
Savings requalifies as one of Canada's 50 Best Managed Companies
January 18, 2005
(Edmonton, Alberta) - Capital City Savings and Credit Union Limited maintained its distinction as one of Canada's 50 Best Managed Companies, requalifying for one of the national business community's most prestigious awards for 2004.
Canada's 50 Best Managed Companies is a national awards program that recognizes the 50 Best Managed businesses from a wide range of industries that have implemented world-class best business practices. The program, established in 1993 and entering its 12th year, annually recognizes 50 well-managed Canadian companies based on a rigorous and wide-ranging interview process designed to assess and examine its management practices. National sponsors of the program are Deloitte, CIBC Commercial Banking, National Post, and Queen's School of Business.
"Continued recognition as one of Canada's 50 Best Managed Companies is a tribute to our Board of Directors, the management and staff of our credit union," said Harry Buddle, President and CEO of Capital City Savings. "Through their efforts we have developed and implemented strategies that have served our members well in the past and positioned us for success in the future."
During the past year Capital City Savings has solidified its reputation as a leader in the Alberta financial services industry. Capital City Savings concluded amalgamations with two other successful Alberta credit unions and a unique affiliation agreement with another. Capital City Savings expanded and built new service locations, and added new products and services. The credit union maintained member satisfaction at 94% and paid members $7.2 million in dividends.
"The strength of the 50 Best Managed program is in the rigour of the qualifying process," said James McSherry, Executive Vice President and Managing Director of CIBC Commercial Banking. "Capital City Savings was selected only after after participating in an extensive and rigorous due diligence process to identify and assess each company's management practices. It is absolutely the 50 Best Managed who make it onto the final list."
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Capital City
Savings offers chance to win $10,000 Debt Payoff
January 10, 2005
(Edmonton, Alberta) - Capital City Savings will give a lucky individual $10,000 to slash their debt in a new promotion aimed at consumers seeking mortgages and personal loans.
The $10,000 Capital City Savings Debt Payoff is open to anyone who takes out a new loan or mortgage at Capital City Savings between January 3, 2005 and June 30, 2005. The winner will be drawn July 15, 2005 and Capital City Savings will deposit $10,000 into the winner's account.
"The $10,000 Debt Payoff can slash a huge amount off someone's financial obligations," said Gail Stepanik-Keber, Capital City Savings Vice President of Marketing. "With this contest, consumers get the benefit of our competitive loan and mortgage rates and the chance to reduce their debts."
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Edson
Credit Union and Capital City Savings Announce Affiliation Agreement
January 6, 2005
Jack Lawrence, Chairman of the Board of Directors of Edson Savings and Credit Union, and Peter Galloway, Chairman of the Board of Directors of Capital City Savings and Credit Union Limited, announce the signing of an Affiliation and Business Services Agreement between the two credit unions.
"We consider this agreement to be a significant milestone in Canadian credit union history," said Mr. Lawrence. "In today's financial service environment, change is swift and credit unions must have the ability to quickly adapt. The sophistication and infrastructure required to be market leaders are becoming overwhelming for many credit unions. Up until now, the only alternative for medium sized credit unions has been to merge. We have gained the strength of a two billion dollar credit union while preserving our credit union's autonomy."
"This agreement has been under development for several months and is unique in the credit union industry," stated Mr. Galloway. "Capital City Savings has developed a means to strengthen the credit union system and ensure there is a viable financial alternative for Albertans while preserving local autonomy."
The Affiliation and Business Services Agreement has been ratified by the Boards of both credit unions. The transition is well underway and will be finalized with the banking system conversion on November 1, 2005. Edson Savings and Credit Union will adopt the Capital City Savings banking platform, obtain access to specialty departments and also have the option of using other organizational expertise.
"Operationally, Edson Savings and Credit Union will become more efficient with a greater level of specialization. In addition, we have eliminated or mitigated several strategic challenges that, aside from a merger, would have been impossible to contemplate," explained Kelly Marshall, Edson Savings and Credit Union General Manager. "Most importantly, our members will now have access to a wider range of financial products and services. This agreement will also enable them to do their banking through all 40 Capital City Savings' locations."
"Capital City Savings gains a strong ally along the Yellowhead Highway, and potential for additional revenue while providing Edson Savings and Credit Union with efficient, cost-effective and modern banking services," said Harry Buddle, President and CEO of Capital City Savings. "Both credit unions gain through this contractual affiliation."
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Capital City
Savings collects funds for tsunami disaster relief
January 5, 2005
(Edmonton, Alberta) - All branches of Capital City Savings and Credit Union Limited are accepting donations from the public to assist the victims of the December 26, 2004 tsunami in Southeast Asia.
Capital City Savings will forward all donations to the Canadian Red Cross. Cheques should be made payable to the Canadian Red Cross and designated for the Southeast Asia Relief Fund. Tax receipts will be issued by the Canadian Red Cross.
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