2014 was another successful year for Cornerstone Credit Union, with a continued growth of the balance sheet, increased member benefits, and improved profitability despite the continued challenges of the current financial environment.
Kevin Lukey, CEO of Cornerstone Credit Union comments “Cornerstone’s initiatives in 2014 were all tied to our new vision of Creating an amazing experience and tailoring financial solutions at every point along life’s journey. Like a bank we have customers; we call them members. We also have shareholders; we call them members. Unlike a bank, our customer-members and shareholder members are always one and the same. We are a member-centric organization, with a focus on providing the best value and service to our members and owners.” Cornerstone continues to enhance their service to ensure the best service at every member interaction whether on the phone, in branch, or at the kitchen table.
Cornerstone also focuses on providing the best value to their members. Cornerstone is the first full service financial institution to offer No-Fee accounts to their members in our marketplace. The FreeStyle No-Fee personal chequing account is a no-fee, no minimum balance, no strings attached account that has been widely accepted by members.
Cornerstone partnered with Conexus, Innovation and Synergy credit unions to establish a formal collaboration agreement. The four credit unions already collaborate on several fronts and are excited to continue working together for the benefit of all stakeholders – members, communities and employees. Collaboration will open up many benefits to members including enhanced products and services, more efficient use of resources and a better understanding of member needs. This is not a merger; it is a bold and innovative model of collaboration.
Cornerstone Credit Union not only wants what’s best for its members, but also their communities. Being a member-owned institution, all profits are invested locally. In 2014, Cornerstone contributed approximately $200,000 to hundreds of local community events, groups and organizations. Cornerstone recognizes community leadership is about more than just financial support; it’s about leading the way and making a difference for the benefit of the community. The staff of Cornerstone demonstrated leadership by investing over 5,300 hours of personal volunteer time back into worthwhile local community initiatives in the past year.
News Release April 21, 2015
2014 was an excellent year financially for Cornerstone Credit Union, as reported at its annual meeting on March 24th. Cornerstone’s balance sheet grew by 6.5 per cent in 2014, with year over year loan growth of 6 per cent and deposit growth of 7 per cent. Profitability was better than expected with total earnings of $7.4 million. Return on average assets was also stronger than expected and prior year at .91 per cent of assets. Net interest margin and operating efficiency were contributing factors for improved profitability.
Midway through 2013, regulators introduced new capital standards for credit unions. Cornerstone’s capital position in relation to the new standards continues to exceed both current and proposed future regulatory standards for capital requirements. However, during 2014 Cornerstone refined its internal capital adequacy process called (ICAAP) which is a new regulatory requirement and, as a result, believes it’s prudent to further increase capital levels.
With these changes to the regulatory environment and the results of the ICAAP process, there is a need to further grow Cornerstone’s capital position. For this reason, no member patronage will be paid from 2014 as 100 per cent of current year profits will be directed to retained earnings to increase the required capital position for the credit union.
“We are extremely proud of our accomplishments and successes over this past year. This would not be possible without the loyalty and support of our many stakeholders that includes our staff, board of directors, and to our members and owners,” says Kevin Lukey. Cornerstone Credit Union is the fifth largest credit union in Saskatchewan, with over $1 billion in total assets, employing over 200 people, serving approximately 25,000 members with branches in 13 Saskatchewan communities.
