AGM and financial highlights
Results from our recent Annual General Meeting, information on our Directors, and financial achievements from the past year.
Board of Directors’ update
As announced at the AGM on April 17, 2019, Allan Achtemichuk, Julie McGill, and Victoria Withers have been elected by acclamation to the BlueShore Financial Board of Directors, each for three-year terms.
The Board of Directors is a key link between our members and our organization. The Board provides direction on long-range objectives, determines policy and monitors progress of the Credit Union. They hire and guide the Chief Executive Officer, and help establish and evaluate strategic objectives.
Special Resolution Vote
This year, BlueShore’s Board of Directors proposed to update the Credit Union Rules, requiring a Special Resolution Vote of the membership which was held March 8 to April 5, 2019. We are pleased to announce that the vote passed with 88.5% of respondents voting in favour.
Updates to BlueShore Financial’s Credit Union Rules will come into effect once approved by the Financial Institutions Commission of BC (FICOM), which we anticipate will occur in May. The only operational change after this time is the adoption of a common membership share of $25 for all new members only, which is effective May 1. Other enhancements to the governance of BlueShore Financial become effective immediately upon approval of the Rules by FICOM.
This year, members were also invited to vote online for the first time which was widely embraced by voters. Thank you to everyone who took the time to participate in our Special Resolution Vote.
2018 Financial performance
BlueShore Financial’s Assets Under Administration, including wealth management assets, grew $474 million (an increase of 9.1%) to end the year at $5.7 billion (2017, $5.2 billion). Balance Sheet Assets increased by $459 million to $4.5 billion (2017, $4.0 billion). Total Loans grew $370 million (an increase of 10.7%) and Total Deposits rose by $484 million (an increase of 13.9%).
Net Operating Income (NOI) was $22.0 million (2017, $23.8 million1) making 2018 our highest grossing profitable year from core operations after normalizing for one-time property gains. Return on Retained Earnings (RORE) was 12.6% (2017, 15.6%) and Return on Average Assets (ROAA) was 51 basis points (bps) (2017, 62 bps).
Net Interest Margin exceeded the prior year’s performance by another impressive year of double-digit loan growth. The pace of loan growth and deposit growth slowed considerably in the second half of the year as the housing market finally succumbed to the cumulative effect of government and regulatory cooling measures to address consumer debt and improve housing affordability.
Non-Interest Income was above the previous year after normalizing for property gains. In addition, BlueShore achieved impressive industry-leading wealth management and insurance results in spite of the decline and volatility in the equity markets in the second half of the year.
Non-Interest Expenses were well managed but exceeded the prior year, mainly due to the planned opening of the new Kerrisdale Financial Spa® branch in Vancouver in August 2018, conversion of our credit card provider to Collabria (Mastercard), growth in regulatory costs in line with deposits and rate increases, and budgeted additional staff to advance strategy and support client services.
Additionally, DBRS Limited assigned BlueShore Financial Credit Union a Long-Term Issuer Rating of BBB (high) and a Short-Term Issuer Rating of R-1 (low). The trend on all ratings is Stable. The rating is further affirmation of BlueShore’s financial stability and strong business strategy.
2018 Annual Report now available
Our 2018 Annual Report and downloadable PDF version are now available. The report highlights our accomplishments, advancements and financial performance in 2018 and how BlueShore helps clients financially prepare for what’s next.
The BlueShore Financial Board of Directors has declared the 2nd Quarter 2019 Equity Share dividend rate of 1.55% for Class A and B and 5.00% for Class C. If you require additional information on the dividend, please contact us or visit any branch.