Credit Union Members
Support
Investment Share Proposal
St. Jacobs, ON – Members of Mennonite Savings and Credit Union gathered on October 25th to vote on a proposal calling for a new class of investment shares. The (Class B) investment share proposal seeks to build on the Credit Union’s equity or capital base, to allow for continued growth, development and stability.
MSCU shareholders voted 99.5% in favour of the proposal.
During the meeting, MSCU management and directors presented year-to-date financial reporting and outlined the case for the proposed Investment Share offering. CEO Nick Driedger detailed the features of the proposed shares.
The proposed Class B Investment Shares, slated for launch in April of 2005, will offer an attractive rate of return, which is expected to exceed the Government of Canada five-year benchmark yield for bonds by one full percentage point. As the Credit Union nears the launch date, more information about the shares will become available to members and will be posted on the MSCU Website.
According to the presentation from MSCU Director Brent Zorgdrager, the need to raise share capital is being driven primarily as a result of rapid growth in all areas of member service in recent years combined with the funding requirements for Meritas Mutual Funds, a subsidiary of MSCU.
In the past three years, MSCU has recorded double-digit asset growth in the midst of an increasingly competitive marketplace. As business volumes for MSCU have increased, the rate of growth of financial margin has not kept pace with asset growth. This has resulted in a decline in the level of capital as a percentage of assets.
The loss picture for Meritas has been better than initial expectations from the original business plan. Now in its fourth year of operation, Meritas is trending towards reduced operating losses before achieving expected profitability in two to three years time. MSCU Board and Management remains committed to the vision of Meritas and to the necessary funding required in support of this mutual fund company. Minority stakeholders in Meritas include Mennonite Mutual Aid, and Mennonite Foundation of Canada.
As one of the top ten credit unions in Ontario in terms of asset size, MSCU has more than $500 million in assets under administration of which approximately $450 million is managed directly by MSCU.
-30-
For More Information Please Contact:
Frank Chisholm
Mennonite Savings and Credit Union
MSCU CEO Nick Driedger Receives
Social Responsibility Award
Kitchener, ON- One of two Gary Gillam Awards for Social Responsibility was recently presented to Mennonite Savings and Credit Union (MSCU) CEO Nick Driedger in recognition of his exemplary leadership in the area of social responsibility. The award, cosponsored by Metro Credit Union and Credit Union Central of Ontario (CUCO), honours the memory and work of Gary H. Gillam who was a leading advocate for social responsibility in the credit union system. The award was presented to Driedger during the CUCO Annual General Meeting on March 27th.
Under Driedger’s leadership, MSCU has broadened its long-time commitment to social responsibility beyond its own membership to include the local and larger communities. Four years ago, the Credit Union launched three significant “stewardship” initiatives that included the MSCU Charitable Fund, Meritas Mutual Funds, and sizeable investments in the SEED Loan fund, and the MEDA Sarona Fund. With the exception of the SEED Loan fund, which was repaid earlier in the year, the Credit Union remains active in all of the other initiatives. Meritas, which includes MMA and Mennonite Foundation of Canada as minority owners, is already proving to be success in the Canadian SRI marketplace.
The Credit Union also maintains, through its focus on biblical stewardship, active mutual aid programs that encourage members to provide financial assistance to other members in times of need. This assistance is generally offered in the form of low or no-interest loans through the Credit Union’s Member Assistance Services (MAS) program.
Driedger is also active in various committees and initiatives that promote social responsibility and mutual aid through church and community-related efforts, and within the credit union system. In his acceptance speech, Driedger thanked the efforts of the staff, volunteers, and members of MSCU who make all of these efforts possible.
As part of his award, Driedger has donated $2,500 to Christian Peacemaker Teams, an organization that, in his words, “actively promotes peace, an emphasis that is central to the faith-based member community that we serve”.
The other Gillam award was presented to Gerry Carey who has worked with credit unions and co-operatives for nearly 50 years. Alternately serving as co-founder, director, board chair and more, Carey was drawn in by a belief that credit unions and co-operatives help people help themselves. A leader in the agricultural community in his area of Eastern Ontario, he has been instrumental at developing local initiatives that encourage leadership, good governance and community investment.
Mennonite Savings and Credit Union provides a full range of financial services to more than 14,000 members of Mennonite, Amish, and Brethren in Christ churches across Southern Ontario. The Credit Union’s total assets under management now exceed $500,000.
-30-
For More Information Please Contact:
Frank Chisholm
Mennonite Savings and Credit Union
MSCU Annual Meeting – Celebrating 40 Years of Service
Kitchener, ON – On Tuesday March 30th over 350 members and guests of Mennonite Savings and Credit Union (MSCU) gathered at St. Jacobs Mennonite Church for the Credit Union’s 40th Annual Meeting focusing on the theme of Celebrating 40 Years of Service. MSCU Board Chair, Kaye Rempel, facilitated the meeting and welcomed everyone to this year of celebration. Glenn Zehr, pastor of St. Jacobs Mennonite church, provided an invocation with reflection on Acts 2 as a foundation on which to build a credit union.
The Inter-Mennonite Children’s Choir – consisting of children ages 8-15 representing 27 different congregations throughout Waterloo Region - treated members to a variety of lively choral pieces.
MSCU member Rufus Jutzi described world and local events in 1964, the year MSCU opened for business. He highlighted the founding vision of J. Winfield Fretz and the support form the local church community that led to the formation of Waterloo County Mennonite Credit Union, as it was originally named.
Leamington Branch founding member Alf Willms shared about times of growth and challenge for the Credit Union from 1965-1989. “The swift growth of the early 1980s brought certain growing pains. One concern that was unique for this credit union was that the rapid pace of growth might displace some of the founding assumptions about core values and purpose,” reflected Willms. “A careful look at motivations and intentions confirmed the Credit Union’s original commitment to live out biblical stewardship and mutual aid.”
In the last of three retrospectives, newly elected Board member, Julie Konrad, related recent stories of growth in facilities, products and services. “Today, as Mennonite Savings and Credit Union continues its rise amongst the ranks of larger credit unions in Ontario and across Canada, we remain focused on the promotion and practice of those core values that keep us distinct, unique, and relevant to the faith-based member community that we serve,” noted Konrad.
Dr. Henry Paetkau, President of Conrad Grebel University College, presented the keynote address. Grebel was in its first academic year in 1964, the same year that MSCU was founded. The organization of both institutions was strongly influenced by the presence of J. Winfield Fretz, president of Grebel at the time. Paetkau congratulated the Credit Union on 40 years of success. “Most important for the success and growth of this unique financial institution is its faithfulness to a vision and a mission rooted in the Christian faith, and expressed through the Anabaptist faith tradition. That base line is the true measure of success or accomplishment - before any other calculations are made. Whatever happens above the base line must be consistent with and faithful to those values, or the bottom line won’t be worth it.”
During the business portion of the meeting, representatives from MSCU Management, Audit Committee, and Credit Committee each presented reports, emphasizing MSCU's record loan and investment growth in 2003, and affirming the efforts of MSCU staff and volunteers. Credit Union members were thanked for their loyal support of MSCU throughout its history.
During the MSCU Management Report, members were invited to help with the goal of increasing MSCU membership by 1,000 new members in 2004. Members were encouraged to invite friends and family to join and share in the benefits of being a part of the growing MSCU community. In 2003, MSCU membership grew by 5% to 14,537 members.
MSCU Financial highlights from 2003 include asset growth of 15% to reach $429.4 million at year end. The 2003 patronage distribution of $1.2 million offered an opportunity for each member to share in the financial growth of the Credit Union.
Management also highlighted the challenge associated with a decrease in capital reserves. The Credit Union ended the year with capital reserves of 5.49% of Assets, still well above the required level of 5% as stipulated by provincial regulatory bodies. MSCU CEO Nick Driedger outlined steps that the Credit Union is taking to build its capital level including a special investment share offering that will be discussed more fully with MSCU members at a special membership meeting scheduled for October 25, 2004.
Anne Brubacher, chair of the MSCU Council of Members, and Nick Driedger, CEO together recognized three MSCU members who have completed their terms as MSCU volunteers. The Credit Union recognized Cheryl Nafziger-Leis and Harry Enns for service on the Board of Directors, and Gary Boshart for service on the Council of Members. Harry Enns encouraged members to be proud of their Credit Union and continue to keep it strong.
The Credit Union welcomed Julie Konrad to the Board of Directors and re-elected Glenn Fretz, Wanda Wagler-Martin and Mildred Roth to the Board. Dorene Rudy-Snyder and Bob Shantz were re-elected to the Credit Committee.
The meeting was closed by Rempel thanking all who participated in the meeting as well as the staff of the Credit Union. The meeting was followed by a celebratory time of refreshments and fellowship.
-30-
For More Information Please Contact:
Frank Chisholm
Mennonite Savings and Credit Union
