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Sunshine Coast Credit Union
Coastlines
VOLUME 16
NOVEMBER / DECEMBER 2004
OFFICIAL PUBLICATION OF S U N S H I N E
C O A S T
NUMBER 2
C R E D I T
U N I O N
Global and local economies impacted by recent economic events.
Recent economic events
make for interesting
times, far too interesting
for those who want
stability and predictability.
Crude oil over US $50
per barrel and the
Loonie over .80 US
cents are significant
developments that
Helmut Pastrick
Chief Economist, Credit Union
have negative impacts
Central of British Columbia
on the Canadian and
BC economies. The global economy has
to absorb those higher oil prices and it is
showing definite signs of slowing from its
robust pace in the first half of the year.
What does all this mean for the local housing
market and its three year long housing market
expansion and for interest rates, which are
being raised by the Bank of Canada?
The jump in energy prices acts like a tax on
the economy and shifts income away from
spending on other goods and services. In
short, it cuts into economic growth, unless
you are a net oil exporter like Alberta.
Estimates by the International Energy Agency
put economic growth lower by 0.5 percentage
points per year for every sustained US $10
increase in oil. When you consider that oil
is up over US $20 in the past year, the
negative impact will be noticeable.
The Loonie’s sharp run-up since mid-year to
over .80 US cents has a similar impact on the
Canadian economy though it takes more
time for its effects to be fully absorbed than
higher oil prices. The net effect is slower
export growth, with a possible outright
decline if volumes do not rise enough, and
slower overall economic growth.
The Bank of Canada will respond to slower
growth ahead by not raising interest rates
in the first half of 2005. In its last Monetary
Policy Report, it acknowledged these risks
to growth and lowered its growth forecast
for 2005.
Nonetheless, the bank will very likely raise
its key policy rate once again at its December
7 meeting. Why? Unless there is some
significant negative economic news before
then, the Bank estimates that the economy
is at or near full capacity and needs to raise
rates from abnormally
low levels. Also, the
Bank has a history
of erring on the
side of caution
since it can
always lower rates
later if needed.
I reckon the onequarter percentage point
increase on December 7th will be the last for
several months as slower economic growth
materializes. Since long-term rates matter
more for capital financing and investment
than short-term rates like prime, their
movements are equally important. Longterm rates are not moving much higher,
and in fact, have come down recently in
anticipation of slower growth ahead.
Low long-term rates are good for mortgage
borrowers and for the continuation of this
housing expansion.
Continued on page 2
IN THIS ISSUE: Helmut Pastrick’s ECONOMIC REPORT, p.1 - 2
Meet our newest Commercial Lender, p.3 Bursary Recipients, p.2
SunCu RRSP Conversion Notice, p.2 SHARING OUR SUCCESS, p.4
what you could do with a
PERSONAL LOAN @ PRIME
OFFER EXPIRES
DECEMBER 24, 2004.
CONDITIONS APPLY.
from
Sunshine Coast Credit Union
®
Coastlines
Global and local economies....
Continued from page 1
Housing market sales slowed in recent
months when mortgage rates went up by
one percentage point in the spring. Rates
are down from those levels, and not likely
to rise anytime soon, so housing sales
should begin to firm. In fact, September
sales firmed over August sales and this
appears to be a trend in the coming months.
Housing prices, determined by market
demand and supply, will continue to rise
but at a lesser rate than in the past year.
NOVEMBER/DECEMBER 2004
More supply from the existing housing stock
continues to arrive on the market and new
construction is also adding to available
supply. That, in combination with a price
squeeze on demand will result in less intense
market conditions and lesser price increases
going forward.
The housing market is not in a price bubble
even with prices up over 30% in the past
three years. Evidence reveals that speculation
is not rampant or a significant part of this
market. As a result, the market is driven by
the sound fundamentals of low rates, pent-
These fundamentals
will continue to play
out in the coming
months, and barring a
major geo-political shock
sending confidence plunging or oil prices
soaring even higher, housing will remain
one of the strengths of this economy.
Helmut Pastrick
Chief Economist,
Credit Union Central of British Columbia
2004 Bursary Recipients
If you’re 69 this year, it’s time to act on your RRSPs.
Amanda Civitareale -Pender Harbour Grad
An important message from Barbara Wells, CFP, Investment Advisor
SunCu Financial Services Inc., in Gibsons Tel. 604-886-8533
Amanda Civitareale moved
to Burnaby in early October.
She’s currently working full
time in a restaurant while
she completes an English
course at Vancouver
Community College.
“In the New Year I will begin my studies in
the Pathology Attendant Program at VCC for
2 to 3 years,” writes Amanda.
Karin Mjanes - Chatelech Grad
(no photo)
Karin Mjanes has entered the Faculty of
Social Sciences at the University of Victoria.
Karin writes, “As the recipient of your
generous bursary, I would like to thank
Sunshine Coast Credit Union for its generosity
and commitment to the community.”
Colin Nebocat - Elphinstone Grad
Colin Nebocat moved
to Vancouver in late
September to study
Graphic Design at the Art
Institute of Vancouver.
After graduating, Colin
plans to attend Langara
College for further studies toward his goal of
becoming a professional photographer.
“I am very pleased to have been chosen for
this award and am appreciative of your
support,” writes Colin.
If you turn 69 this year and have Registered Retirement Savings Plans
(RRSPs), there is action that must be taken prior to the year end. There are
three options available to you and depending on an individual‘s
financial situation, a combination of the three options could be selected.
1) Cash in the RRSP – usually not recommended as the total dollar value
of the RRSP will be added to the individual’s taxable income for the year
2004 and will most likely create a large tax liability.
2) Convert the RRSP to an annuity – with the current low interest rate
environment many people are discounting this option.
3) Convert the RRSP to a Registered Retirement Income Fund (RRIF) – this option
allows a person to bring all of their RRSPs into one RRIF. There are 2 main types of RRIFs: an
individual plan where only one company‘s products are purchased and a self-directed plan that
can hold products of many companies including bonds & securities.
In selecting the right asset mix for a RRIF, consideration is given to whether the RRIF is an
individual plan or a self directed plan, and to each person‘s current asset mix of other financial
assets (i.e. term deposits, mutual funds, bonds, stocks, etc.).
Once the RRSP is converted you are required to withdraw an annual minimum payment from
the RRIF in the year after the conversion and each subsequent year. This payment is added to
your total income for the tax year in which it is taken. A person can elect to take a dollar amount
higher than the annual minimum payment; however caution is recommended on taking too
much money out of the RRIF as you may outlive the RRIF.
This article was prepared by Barbara Wells, CFP, who is a registered Investment Advisor with Dundee
Securities Corporation, a Dundee Wealth Management company. This is not an official publication of Dundee
Securities and the views (including any recommendations) expressed in this article are those of the author
alone, and have not been approved by, and are not necessarily those of Dundee Securities Corporation.
Insurance products provided as a life agent via multiple insurance carriers.
Securities sold through:
Our three grads were awarded $750 each
toward their post secondary educations.
WE WISH THEM EVERY SUCCESS!
2
up demand, and
consumer confidence.
CONSULTATION BY APPOINTMENT
SunCu
LIFE INSURANCE
ANNUITIES
Financial Services Inc. INVESTMENTS
A wholly-owned subsidiary of Sunshine Coast Credit Union
Coastlines
NOVEMBER/DECEMBER 2004
STAFF NEWS
WELCOME
the power
to realize
your
dreams
Mary-Ann Thiessen
ACUIC
Direct: 604-886-4397
Sunshine Coast Credit
Union's newest
Commercial / Small Business Lender
joined the Gibsons Branch staff in July
2004. Mary-Ann Thiessen grew up in
Winnipeg‘s Fort Garry area and obtained
her Business Administration diploma
from Red River Community College.
Her last 6 years in Manitoba were spent
working at South Interlake Credit Union
in Pine Falls. While there, she completed
many courses including financial
management, marketing management
and commercial lending, resulting in her
obtaining her Associates Designation
through the Credit Union Institute of
Canada. She also completed the
Canadian Securities course in 2000.
“My move to the Sunshine Coast has
been a dream come true,” says MaryAnn.
...renovate your
kitchen...get a
new car...buy a
vacation home
...go travelling...
pay for your
child’s tuition...
consolidate your
bill payments...
invest...live your
dreams
One mortgage, so many options
!
a mortgage that
takes you there...
$
“I have always enjoyed the financial
analysis of statements, looking at
business plans and talking with people
about their entrepreneurial endeavours.
I look forward to helping our commercial
members with their financial and
borrowing needs."
Mary-Ann, her husband and their three
children, currently reside in Gibsons.
– options that adapt to your family’s
changing needs. To learn how the
CreditMaster® mortgage can work
for you, come in and talk to one
of our mortgage specialists.
Sunshine Coast Credit Union
Gibsons
604-886-8121
Pender Harbour 604-883-9531
Sechelt
604-885-3255
www.sunshineccu.com
Special Fall Term Campaign a Success!
Gibsons Branch Staff celebrated the spirit of our
SPECIAL FALL TERM DEPOSIT campaign, by decorating
the branch with baskets of freshly picked fruits and
vegetables that complimented our colourful
autumn leaves theme so well.
During the campaign, which ran from October
1st through November 15th, our 3 branches
recorded a total of over $28.5 million invested into the
specially featured one and three year term products.
3
Coastlines
The Credit Union Deposit
Insurance Corporation,
a government corporation,
guarantees deposits up to
$100,000 per “separate deposit.*”
NOVEMBER/DECEMBER 2004
SHARING OUR SUCCESS with Members and Community
Sunshine Coast Credit Union marks another year of commitment to both
its members and the community.
* As defined by regulation
Sunshine Coast Credit Union
Gibsons Branch
Dale Eichar, C.E.O.
P.O. Box 715, 985 Gibsons Way
Gibsons, B.C. V0N 1V0
Telephone: 604-886-8121 Fax: 604-886-4831
Toll free 1-800-734-6204
Branch Manager: Diane Wright
[email protected]
He reports that this year Sunshine Coast Credit Union’s assets grew by $26
million in the first three quarters alone. Loans grew by $20 million during the
same period, and deposits grew by $25 million. “A large portion of our loan
growth can be attributed to the housing market on the Sunshine Coast,
which has been extremely active during the year,” says Eichar. Continued
growth saw the credit union’s assets at $228 million as of September 30th.
Pender Harbour Branch
P.O. Box 28, 12887 Madeira Park Road
Madeira Park, B.C. V0N 2H0
Telephone: 604-883-9531 Fax: 604-883-9475
Toll free 1-866-883-9531
Branch Manager: Bonnie Rivers
[email protected]
Rick Cooney, Manager
Operations and Development
Sechelt Branch
P.O. Box 375, 5710 Teredo Street
Sechelt, B.C. V0N 3A0
Telephone: 604-885-3255 Fax: 604-885-3278
Toll free 1-800-320-4588
Branch Manager: Mark Hussey
[email protected]
BRANCH HOURS
Tuesday to Thursday: 10 am - 5 pm
Friday: 10 am - 6 pm Saturday: 10 am - 2 pm
Diane Wright, Manager
Gibsons Branch
ABM available at all branches 24 hours a day.
MemberLink TELEBANKING
(604) 740-0999
WEBSITE / INTERNET BANKING
www.sunshineccu.com
Administration Office
P.O. Box 799, 985 Gibsons Way
Gibsons, B.C. V0N 1V0
Telephone: 604-886-2122 Fax: 604-886-0797
Toll free 1-866-886-2132
[email protected]
Bonnie Rivers, Manager
Pender Harbour Branch
OFFICE HOURS
Monday to Friday: 8:30 am - 5:00 pm
C.E.O.
Dale Eichar
Manager, Operations and Development
Rick Cooney
2004 BOARD OF DIRECTORS
Tim Anderson, Chairperson
Brian Beecham, 1st Vice Chairperson
Karen Archer, 2nd Vice Chairperson
Stan Anderson
Bernard Bennett
Harris Cole
Rick Gamache
Elfie Hofmann
Margaret Penney
Mark Hussey, Manager
Sechelt Branch
Barbara Wells, C.F.P.
SunCu Financial Services Inc.
Sunshine Coast Credit Union
®
® Registered trademarks, used under license.
MemberDirect® is owned by Credit Union Central of Canada
4
Serving the Coast for over 60 years, Sunshine Coast Credit has proven to be
the financial institution of choice for individuals and businesses – committed
to leadership, development, and social initiatives, as well as giving back to
both credit union members and the community. “This is directly related to
the credit union’s success,” says Dale Eichar, Chief Executive Officer.
Successful growth has meant giving some of our profits back to members.
The credit union gave back $417,000 in patronage dividends and interest
bonuses last year. The Board of Directors also authorized the issue of
another $1 million in Class D Voluntary Equity Shares early in 2004 with
over $500,000 having been purchased to date by members. Sunshine
Coast Credit Union’s Class D Equity Share dividends, in recent years,
have paid well above prevailing interest rates. “This product has allowed
members to share even further in the credit union’s success,” says Eichar.
Also sharing in our success are the Coast’s organizations and charities.
The credit union is a sponsor of Success by Six, a partnership between the
Savings and Credit Unions of British Columbia, the United Way and the
Ministry of Children and Family Development, which identifies the gaps in
early childhood development; the Community Foundation Endowment
which aids groups, individuals, or businesses; a main sponsor of the Pender
Harbour Jazz Festival; and a major supporter of the Sunshine Coast
Salmonid Enhancement Society as well as many other non-profit and
charitable causes. We were also one of the main sponsors of the recent
Sunshine Coast Opportunity Summit Conference where over 250 people
turned out to hear Premier Gordon Campbell and John Furlong, CEO of the
Olympic Committee, speak. Eichar says “The credit union has donated over
$63,000 in charitable donations so far this year, ranging from arts and
culture, to sports and community events.”
Sunshine Coast Credit Union is a major employer on the Coast with
approximately 100 employees. “Management, staff and directors are
involved in numerous economic development activities and organizations
locally,” says Eichar. Our membership now stands at over 13,700. Province
wide, Credit Union Central of British Columbia has reported that credit
unions employ more than 7,000 British Columbians in 342 branches in 135
communities. B.C.’s credit unions have more than $30 billion in assets
overall and nearly 1.5 million members.
Looking to the future, Sunshine Coast Credit Union will continue its integral
financial role in the community, and will continue to enhance its financial
services. ”We are working on plans to update our facilities, expand our
commercial lending services and we are upgrading our technology to give
members a more robust on-line banking service and expanded ATM
functionality, as well as improved merchant card services and point of sale,“
says Eichar. ”There‘s a bright future ahead for residents on the Coast, and
we will continue to do everything we can to help it grow while standing
behind the credit union umbrella of People Before Profits®.”