North Shore Credit Union Posts Strong Financial Results in Tumultuous Year

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In a year characterized by severe financial, housing and stock market disruption, both globally and domestically, North Shore Credit Union experienced healthy growth and achieved excellent results.

We have managed very well in this situation because we have now, and have always had, very prudent lending practices. And unlike banks, we have not been driven to risky investments. We're locally owned and controlled and don't participate in speculative investments like Asset-Backed Commercial Paper.

North Vancouver, BC -- In a year characterized by severe financial, housing and stock market disruption, both globally and domestically, North Shore Credit Union experienced healthy growth and achieved excellent results.

Net Operating Income for the year was $8.97 million, compared with $7.34 million for 2007. This represents a Return on Average Assets (ROAA) of 66 basis points, an excellent performance in the current market, and a Return on Retained Earnings (RORE) of 12.86%. The RORE represents a return well in excess of inflation and more than three times current term deposit rates.

The 68-year-old organization's assets grew to $1.41 billion on balance sheet, from $1.31 billion in 2007. Financial margin was relatively unchanged, but was adversely affected by rapidly falling interest rates as prime-related mortgage yields dropped in advance of funding costs.

The recently legislated 100% deposit guarantee for BC credit unions is expected to position NSCU well for retaining and growing its deposit base. Member equity continued to grow and now stands at $85.1 million. Regulatory capital, at 11.7%, significantly exceeds the required level of 8%.

Chris Catliff, NSCU's president and CEO, acknowledges that financial institutions have been operating in an environment of credit crisis and general uncertainty for the past year.

"We have managed very well in this situation because we have now, and have always had, very prudent lending practices. And unlike banks, we have not been driven to risky investments. We're locally owned and controlled and don't participate in speculative investments like Asset-Backed Commercial Paper."

Asset Backed Commercial Paper, which can include sub-prime mortgages, caused significant losses and write-downs in the financial services industry world-wide over the last two years.

Adding his support for the Government's move to introduce 100% deposit insurance for all BC credit unions, Catliff explained, "It was a well-considered response, given people's worries at the time. While we know that no B.C. credit union member has ever lost deposit money, moving to unlimited coverage has helped to ease uncertainties about member deposits, and will definitely give a boost to B.C.'s economy as credit unions continue to lend locally."

In addition to financial accomplishments, NSCU strengthened its ties to the communities it serves through major financial sponsorship of several popular events, including the North Shore Credit Union Test of Metal in Squamish, Coho Festival in West Vancouver, and the 11th annual NSCU Charitable Golf Tournament in support of North Shore Rescue.

About North Shore Credit Union
With 12 branches in communities from Burnaby and downtown Vancouver to Whistler, Squamish and Pemberton, North Shore Credit Union provides expert advice on banking, loans, investments and insurance. North Shore Credit Union has $1.9 billion in assets under administration, nearly 300 employees and 40,000 members. Its subsidiaries include United Mortgage Group, North Shore Capital Corporation, North Shore Leasing Ltd. and Pacific Spirit Properties Ltd. NSCU is designated a Caring Company by the Canadian Centre for Philanthropy and is a proud member of Canada's IMAGINE program. The Credit Union has also been honoured numerous times as one of the most technologically innovative financial institutions in North America.

For more information, please contact:

Kristin Abraham
Employee & Corporate Communications Manager
North Shore Credit Union
604.983.4584
https://www.nscu.com

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Kristin Abraham