• Canadian Credit Union Firsts
• Capital City Savings focuses on expansion in third quarter
• Wildrose Credit Union and Capital City Savings announce intent to amalgamate
• Capital City Savings post steady growth during second quarter
• Capital City Savings foundations sets fund raising record for Stollery Children's Hospital Foundations
• Capital City Savings named one of Canada's 50 Best Managed Companies
• Capital City Savings pays members $6.3 million in dividends
• Yellohead Credit Union Ltd.
• Capital City Savings gives $3500 in 4-H scholarships

Background

Wildrose Credit Union
Wildrose Credit Union is the second oldest credit union in Alberta, with origins extending to 1938. Wildrose is a full service credit union operating three branches in the Edmonton area.  Members are predominantly employees of the provincial government, federal government and the Department of National Defense. Employees of government boards, commissions and related organizations round out the total membership.
Assets: $73.4 million
Members: 6200
Staff: 26

Yellowhead Credit Union
Yellowhead Credit Union began operations in 1943. Membership in Yellowhead Credit Union is open to everyone. It has branch locations in Stony Plain, Entwistle, Wabamun, Drayton Valley, Sangudo, Hinton and Jasper. The Entwistle and Wabamun branches offer an Alberta Registries Agent in-house. As a community based financial institution Yellowhead Credit Union has maintained strong community ties throughout its sixty year history.
Assets: $197 million
Members: 15,000
Employees: 70

Capital City Savings
Capital City Savings is a member owned, community-based credit union. It was formed in 1987 through an amalgamation of eight Edmonton area credit unions. Capital City Savings is an open bond credit union (open to all citizens). It is governed by an eleven member board of directors elected by the membership.  Based in Edmonton, Capital City Savings is the largest credit union in Alberta, with 29 service locations In 2003 Capital City Savings shared more than $6.3 million with members. Since 1990, Capital City Savings has distributed $53.8 million to members. Capital City Savings was named one of Canada's 50 Best Managed Companies in 2003.
Assets: $1.9 billion
Members: 141,000
Employees: 700

Capital City Savings posts steady growth during second quarter

Background

Second quarter highlights (at April 30, 2004):

• Assets increased to $1.9 billion
• Member loans rose to more than $1.6 billion
• Member deposits grew to over $1.7 billion
• Income for the quarter was $4.2 million (before Profit$hare® dividends and income taxes)
• Member equity reached $116.1 million
• Membership climbed to 141,000

Comparison April 30, 2003 - April 30, 2004 ($ in millions)
Apr. 30, 2003 Apr. 30, 2004
Assets $1,708.5 $1,876.6
Loans $1,469.0 $1,655.7
Deposits $1,593.9 $1,740.6
Operating Expenses $12.8 $13.7
Income (before dividends and taxes) $4.4 $4.2
Member Equity $101.6 $116.1
Provision for Loan Losses $.60 $.68
Second Quarter Growth 2003 - 2004 ($ in millions)

Feb 1, 2002 - Apr. 30, 2003 Feb. 1, 2003 - Apr. 30, 2004

Capital City Savings Kids Foundation sets fundraising record for Stollery Children's Hospital Foundation

Background

A Very Special Bear Story From Our Leduc Branch

The following letter was submitted by Debra Hanson, Capital City Savings Leduc Branch Manager

Something very special happened here in Leduc with the teddy bear sales that I would like to share with you.

One of our valued members, who is known to have a huge heart as he always supports our fundraisers, purchased a bear and told the tellers to give it to a special child of their choosing.

Cathy Wagner, Member Service Supervisor, and her team got together and decided to give the bear to another member's little 5 year old daughter, who was a previous Stollery patient as a result of contracting meningitis when she was 2. This little girl is deaf as a result of the meningitis.

When the little girl and her mother came into the branch a few days later Cathy took them aside and gave them the bear, just saying that another member had bought it with instructions to give it to a special child, and that the staff had decided that her little girl was the special child. The mother cried, the staff cried, and everyone was very touched. The mother never knew who the other member was who donated the bear.

A few days later the little girl's mother came into the branch with a thank you note to give to the bear donor, not knowing who he was. While she was in, the generous donor came into the branch at the very same time. The strange thing is these were the only two members in the branch. The tellers then told the donor that the little girl in the branch was the person who they had given the bear to. The two were introduced. The little girl, who does not talk, said thank you in sign language. This was so touching that everyone was crying by now, including the donor, the little girl's mother and all the staff who witnessed this.

The story does not end here. A few days after this took place the mother came back to the branch and said she was so touched by the generosity of this gentleman that she had to do a good turn for someone else. She then purchased a bear and asked the staff to find another special child to give it to.

The staff chose the grandson of valued members. This child is a current Stollery patient who is extremely ill with leukemia.

The other day one of our staff members delivered the bear to the grandparents' home and the little boy answered the door and graciously accepted the bear.

I have told our staff that of all the things we do each and every day as Capital City Savings employees, these are the things that are the most important. I am very proud of the environment we nurture here that allows something as special as this to happen.

Capital City Savings named one of Canada's 50 Best Managed Companies

Backgrounder

Canada's 50 Best Managed Companies 2003 announced

(from Canadas50 Best.com)

Winners of the 2003 Canada's 50 Best Managed Companies award, display a number of common business attributes which may provide insight into their ability to achieve significant growth and success.

"Through our analysis of this year's 50 Best award winners, we found a number of common characteristics of these exceptional companies who have successfully developed, articulated and executed a strategy to achieve a high performance advantage," said Tony Grnak, Deloitte Partner and National Leader, Canada's 50 Best.  "These winning companies clearly exhibit a strong propensity and ability to stay in close contact with their markets and to adapt and align their strategy accordingly. As well they demonstrate significant passion and commitment to ensuring they acquire and retain the best possible employees."

Key traits that the 2003 50 Best companies share include: a continued ability to remain alert and responsive to changes in the market and consumer demands; a passion to create the right leadership and vision; and a commitment to invest in the hiring and retaining of the most talented employees, are some the key determinants which contributed towards companies achieving recognition on this years 50 Best winners list, while requalifing companies share a remarkable commitment to stay at the leading edge of innovation and to continue growth.

"The 2003 50 Best recipients represent some of Canada's most exceptional, talented and successful companies who clearly make a significant contribution in driving our economy and expanding our workforce.  This year's 50 Best winners generated $7.2 billion in combined revenue and account for more than 29,000 employees throughout Canada in 2003 (up significantly from $6.2 billion and 21,000 respectively, in 2002).  The average revenue increase from 2001 to 2003 for the 50 Best companies is 26% which is attests to the calibre of these companies and acts as a positive indicator for our economy," continued Tony Grnak, Deloitte Partner and National Leader, Canada's 50 Best.  "We applaud and congratulate all of this year's 50 Best winners."

Established in 1993, the annual program recognizes Canada's 50 Best Managed companies who have demonstrated exceptional ability and aptitude in all areas of management and best business practices.  To be recognized as one of the 50 Best, companies must complete a comprehensive questionnaire, and an extensive, in-depth interview process which is evaluated by an independent judging panel to assess and examine its' management practices.  The panel evaluates how companies address various business challenges such as new technologies, globalization, brand, leadership, leveraging and developing core competencies and designing the right organizations and systems to facilitate growth and the new generation of people entering the labour market.

Previous 50 Best winners have an additional two years to use their 50 Best designation, providing they successfully meet the requalification criteria. This year, a total of 82 companies were awarded requalification status.

2003 winners and requalified winners of the Canada's 50 Best Managed Companies award will be honoured at the annual 50 Best gala in Toronto on 9 February, 2004. The 50 Best symposium, 9th and 10th February, will address issues relevant to today's business leaders.

"The 2003 50 Best winners are an outstanding group of Canadian owned and managed companies who have proven their remarkable ability and commitment to apply best practices to all areas of their business operations," said James McSherry, Executive Vice President and Managing Director, CIBC Commercial Banking, a national sponsor of the program.  "These companies clearly demonstrate innovation, leadership and a focus on their customers and employees.  Their example illustrates that focusing on the fundamentals while pursuing a clearly defined strategy is key to achieving exceptional results."

About Canada's 50 Best Managed Companies ( www.canadas50best.com )

Canada's 50 Best Managed Companies (50 Best) is a national awards program that recognizes the 50 Best businesses from a wide range of industries that have implemented world-class best business practices. The program, established in 1993 and entering its 11th year, annually recognizes 50 well-managed Canadian companies that must complete an extensive and in-depth interview process 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. Information about Canada's 50 Best Managed Companies 2003 is available online at www.canadas50best.com .

Capital City Savings pays members $6.3 million in dividends

Capital City Savings paid $6.3 million in dividends to members in December 2003 and $53.9 million since 1990. The total member dividend payment for 2003 is comprised of:

• Profit$hare Dividends $3,825,000
• Investment Share Dividends $1,625,000
• Common Share Dividends $815,000Total $6,265,000
• Types of Dividends paid by Capital City Savings

Profit$hare® Dividends are based on the combined amount of business done with Capital City Savings. For 2003, Capital City Savings paid a Profit$hare dividend equal to .125% on average balances of all loans, term deposits, chequing and savings accounts, and RRSP term deposits during the year. Profit$hare Dividends are paid as additional Common Shares, which also earn dividends.

Common Share Dividends are based on the Common Share balance. Each adult member must have a minimum of $50 in common shares. The Common Share Dividend for 2003 is equivalent to 2.5% of the average of the common share balance over the minimum for each member. Common Share Dividends are paid in additional Common Shares, which are RRSP eligible.

Investment Share Dividends are based on the number of Capital City Savings Investment Shares owned. The Series A Investment Share dividend in 2003 gave investors a 5.404% return. The Series B Investment Share dividend in 2003 gave investors a 6.0% return. These are paid in the form of additional Investment Shares.

Capital City Savings gives $3500 in 4-H scholarships

Backgrounder

Lindsay Barton was a member of the Belvedere 4-H Multi Club for five years where she completed cooking, crafts and goat projects. As well she held executive positions of Vice-President, Treasurer and Secretary. "4-H has taught me a great deal of life skills," comments Barton. "The program taught me about parliamentary procedures, public speaking and what it means to be a volunteer in your community. Barton is enrolled in the Bachelor of Science in Agriculture Program at the University of Alberta. Upon completion of her degree, she hopes to transfer to the University of Saskatchewan to study Veterinary Medicine.

Hannah Davis was an eight-year member of the Central Ponoka and East Ponoka Beef Clubs where she completed steer, cow/calf, heifer, and senior opportunities projects. "4‑H was one of the most positive experiences of my lifetime," comments Davis. "It provided me with the opportunity and understanding to develop myself and to use my abilities to their full capacity." Davis has received numerous awards for her leadership and community involvement including the University of Alberta Leadership Award, Knights of Columbus and Rutherford Scholarships, and the University of Alberta Academic Excellence Award. Davis is currently enrolled in her final year of the Bachelor of Science in Agriculture at the University of Alberta. When finished, she hopes to study Veterinary Medicine at the University of Saskatchewan.

Connie Johnson is enrolled in the Ag Business at Olds College and hopes to work in marketing. She has been a member of the Camp Creek Multi 4-H Club for nine years where she has completed beef, judging and senior opportunities projects. Connie has had numerous executive positions in her club and organized activities such as public speaking, judging, achievement days and fundraisers. She is also very involved in her community and has spent many years taking piano, guitar, dance and swimming lessons.

Kris Kremp has been a member of the Meadowview Multi 4-H Club for the past eight years. During that time he has completed horsemanship, veterinary science and small engines projects. Kris considers his top accomplishments through the 4-H program to be winning trips to the Denver National Western Roundup and the Montana 4-H Congress. This year Kremp begins the Advanced Farrier Science diploma at Olds College. He would like to run his own farrier service in the years to come and continue to be a part of the 4‑H program as a club leader.

Robert Lawrence was a member of the Double Diamond 4-H Multi Club for six years where he completed numerous horse projects. "My experience in 4-H is unique and unparalleled," comments Lawrence. "Through the program, I have enhanced my public speaking and financial management skills." Lawrence is a third year student at the University of Alberta enrolled in the Bachelor of Science in Agriculture program. Upon completing his degree, he hopes to transfer to the University of Saskatchewan to take Veterinary Medicine.

Nancy Perrin was a four-year member of 4-H and completed horse, veterinary science, rodeo and senior opportunities projects.  She held all executive positions, organized many fundraisers and events, and attended numerous provincial 4-H functions. "Through 4-H, I have developed my self-confidence, leadership, interpersonal and communication skills," comments Perrin.  "These skills will certainly be of help to me throughout the rest of my life." Perrin is enrolled in the Bachelor of Science in Agriculture Degree Program at the University of Alberta. She hopes to further advance her education by studying Veterinary Medicine at the University of Saskatchewan.

Dustin Welch has been a member of The Gladstone Achievers and the Rosalind Beef 4‑H clubs for nine years. "4-H has given me the leadership and drive needed to continue doing what I love, knowing that one day I will succeed," states Dustin. Welch is beginning his first year of an Agriculture Mechanics diploma. He would like to be able to return to work on the family farm.

The Capital City Savings and Credit Union Scholarship is awarded to 4-H members who have been involved with 4-H for the preceding three years. It is based on outstanding 4-H achievement, community involvement and academic standing. Alberta Agriculture, Food and Rural Development and the 4-H Foundation of Alberta administer the program. For more information on the 4-H Program, visit their website at www.4h.ab.ca or contact the Provincial 4-H Office at (780) 422-4444 or toll-free by first dialing 310-000.

Yellowhead Credit Union Ltd.

Facts and Figures

Background

Yellowhead Credit Union began operations in 1943 as Stony Plain and District Savings & Credit Union Ltd.  Membership in Yellowhead Credit Union is open to everyone.  Its members (customers) are also owners.  As a community based financial institution Yellowhead Credit Union has maintained strong community ties throughout its sixty year history.  Yellowhead Credit Union is governed by a ten member board of directors elected by the membership.

Operations

Yellowhead Credit Union provides financial services to nearly 15,000 members.  It has branch locations in Stony Plain, Entwistle, Wabamun, Drayton Valley, Sangudo, Hinton and Jasper and employs over 70 employees.  It has more than $197 million in assets.
Each branch of Yellowhead Credit Union provides a complete line of financial services including deposits, loans, investments, agricultural and business services, telephone and internet banking, ATMs, debit and credit cards, financial planning and insurance.  In addition, the Entwistle and Wabamun branch locations offer an Alberta Registries Agent in-house.

Member Benefits

Ownership – members of Yellowhead Credit Union can participate in the operation of the credit union through electing the Board of Directors and attending the Annual General Meeting.

Profit sharing – members earn patronage dividends based on their use of services including service fees paid, deposits, investments, and loans during the year and the company's financial performance.  In 2002 Yellowhead Credit Union returned more than $250,000 to its members, bringing total dividends paid since 1993 to over $1.8 million.

100% deposit guarantee – all deposits, including interest, are 100% guaranteed by the Credit Union Deposit Guarantee Corporation.

Financial Planning – members have access to the services of a Certified Financial Planner through MemberCARE Financial Services free of charge.

E-Banking services – in addition to ATM, Internet and Telephone banking services, members have access to a number of other on-line services including: financial calculators, investment trading, life insurance and loan applications.

Community Involvement

Yellowhead Credit Union, its staff and members contribute daily to the well being of their communities.  Through donations of time and money we have supported and will continue to support local groups and organizations in such areas as education, health, environment, arts and culture, recreation and sports, economic development and social causes.