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2016 ANNUAL REPORT
WORKINGFOR YOU
2 2016 ANNUAL REPORT
MESSAGE FROM THE CHAIR OF THE BOARD OF DIRECTORS
Dear Members, On behalf of our officers, I am pleased to present a review of the year 2016 for Caisse Desjardins du Lac-Memphrémagog. AN INSTITUTION AT THE HEART OF ITS MEMBERS’ LIVES
The year 2016 was a turning point in Desjardins
history. One of the most important events was the
election of Guy Cormier as President of Desjardins
Group. The youngest president in our history quickly
rallied employees and officers around his ambitious
ideas. The first of those ideas involves reconnecting
Desjardins with its purpose, which is to enhance
people’s lives and the communities in which they
live by making active and significant contributions to
the development of a sustainable economy.
For example, a new $100-million development fund
has been created to support projects in the regions
where we are active, in entrepreneurship, in
business development and in economic and social
innovation. This fund will complement the caisses’
Community Development Funds and Capital
régional et coopératif Desjardins shares.
In addition, so we can be better attuned to the
needs of young people, a Youth Advisory Board
with a Desjardins-wide scope has been put in place,
to be made up of Desjardins members, elected
caisse officers and employees between ages 18
and 35. We even reserved a special place for young
people during 2016 Cooperation Week focused on
academic success. On October 20, 2016,
thousands of Desjardins employees participated in
volunteer events in support of the cause.
This is a testament to the variety of actions we put
in place in order to hold the top position in the
hearts of our members.
INSPIRING MOMENTUM
In 2016, our caisse recorded operating surplus
earnings of $6.4 million. These results are an
indicator of the caisse’s sound business
management. Based on this performance, we will
be staying the course by offering you services and
solutions that continue to meet your expectations.
I would like to thank our members for these
excellent results. Your continued loyalty is the key
to our success. Increased use of the caisse’s
products and services has a direct positive impact
on its profitability. The vitality created by this loyalty
will not only benefit the caisse and its members, but
also the entire community.
In 2016, the caisse redistributed more than $354,000 in our community to support projects that stimulate local social and economic health. Of this amount, $311,000 is paid out of the Community Development Fund, a collective dividend that’s voted by caisse members at our annual general meeting. This is an initiative that enables us to have a positive impact on people’s lives and the communities in which they live. That is our purpose, and it is a source of pride for all of us. Doing business with your caisse means truly making a difference, and helping to effect change in the world. In addition to our financial implication in our
community, our Escouade D (a volunteer squad
made up of Caisse employees and officers) realized
700 hours of volunteer work in our region. Two
teams of runners, composed of fifteen employees,
also participated in the Lake Memphrémagog relay
race and raised $20,000 for the Fondation Christian
Vachon. A nice way to make a difference in the
Memphremagog RCM!
As education is central to the Caisse’s mission, we
are proud to contribute to the Desjardins Foundation
which launched the #DesjardinsFoundation Prizes
in 2016 to help support projects with elementary
and high school students. The project “Adopt a
bicycle” of De La Ruche High School won a prize of
$3,000.
At the same time, the Caisse gave out $12,500 in
scolarships, enabled the creation of 15 summer jobs
with the Desjardins-Jeunes au travail program,
supported the Student Caisse at De La Ruche High
School and the School Caisse in a dozen
CAISSE DESJARDINS DU-LAC-MEMPHRÉMAGOG 3
elementary schools in our region.
Particular attention was also paid to senior
members since the Caisse offered convenience
services in 8 senior citizen homes located in Magog
and also, thanks to its participation of the Pair
Program.
TOGETHER, WE ARE MAKING A DIFFERENCE
Your business relationship as a member of your
caisse gives you an opportunity to help improve
your community while providing you with many
advantages. Concrete examples of these
advantages: A comprehensive service offer and
practical tools, exclusive offers, individual and
collective dividends and the opportunity to
participate in the decisions of your caisse.
DESJARDINS MEMBER ADVANTAGES
Your caisse offered some exclusive advantages for
Desjardins members. Whether in the context of a
contest or at events sponsored by the Caisse, these
distinctive advantages have enabled the winners to
live a unique experience, to receive a gift or an
exclusive privilege.
In addition, the caisse paid out $254,700 in Member Advantages during the past year, in the form of discounts or bonuses offered on many diffrent products and services. To learn more, visit desjardins.com/advantages. CONTINUED IMPROVEMENT OF PRODUCTS
AND SERVICES
Your satisfaction remains our priority when it comes
to the quality of our products and the excellence of
our services. We will continue to adopt simple,
people-focused, modern and high-performing
approaches in order to maintain our special place in
your financial life. Thanks to our modern
approaches, including a range of virtual services,
we can be more accessible than ever. Desjardins
mobile payment solutions and Apple Pay, mobile
cheque deposit and Interac transfers are only a few
of the new features currently at your disposal.
To round out our virtual offer, certain financial
products are available exclusively on AccèsD: in
just a few clicks, you can open a high interest
savings account with no service fees, or access
market-linked guaranteed investments. It’s simple
and exclusive to Desjardins members.
As a member, you can play a role in your caisse’s
evolution to help boost its performance, especially
by sharing your ideas, impressions and constructive
comments. We can work together to share and
celebrate the deeply human and distinctive nature
of our caisse.
EXPRESSING OUR HEARTFELT THANKS
I want to extend my sincere appreciation to my
fellow officers, to the managers and to the
employees of the caisse for their unflagging
commitment. Under the dynamic management of
Mr. Jean-Luc Dasté, they draw on their skills and
great adaptability so that our cooperative can meet
your needs effectively. Thanks also to our
Desjardins subsidiary partners for supporting our
mission to serve our members. By joining forces, we
are in a position to offer you a range of
comprehensive and competitive financial products
and services.
Lastly, even greater thanks to our 31,430 members
for placing their trust in us.
Danielle Bolduc Chair, Board of directors
4 2016 ANNUAL REPORT
REPORT FROM THE CHAIR OF THE BOARD OF SUPERVISION
The board of supervision makes sure the caisse fulfills its responsibilities in terms of ethics, professional conduct and cooperation. SUPERVISION OF ETHICAL ASPECTS
Every year, caisse officers and employees renew their commitment to comply with the Desjardins Code of Professional Conduct. The Code sets out the behaviours that are expected as well as those that are not acceptable. The board of supervision ensured that the caisse, officers and employees took the values of Desjardins into account to guide their conduct. Here is a supervision report for the past year concerning three rules of professional conduct:
No conflict of interest situations were noted.
Deposits from and loans to restricted parties1 of the
caisse were granted in accordance with the caisse’s
code of ethics and applicable rules of professional
conduct. Loans granted to restricted parties totalled
$856,668.42.
The caisse and its centres did not grant any
contract for the supply of goods and services to
restricted parties subject to the Code2.
SUPERVISION OF COOPERATIVE ASPECTS
With regard to the supervision of cooperative aspects,
the board of supervision must ensure that Desjardins
values are an integral part of the caisse’s business and
management practices. It must also make sure that the
caisse contributes to the development of its community
and the economic and financial education of its
members. Lastly, it ensures that members are informed
about topics of importance to them.
1 Restricted parties: Caisse officers and general manager, officers of
the Fédération des caisses Desjardins du Québec and their associated persons.
2 Restricted parties subject to the Code: Restricted parties, caisse
employees and centre managers and their associated persons.
Over the past year, the board's activities focused on the
following topics:
Member participation in associative affairs, especially mechanisms established by the caisse to inform, listen to and consult members;
Activities and resources made available to members to assist them with financial management;
Strategies established by the caisse to improve member satisfaction and meet member needs;
Caisse support of community development, in particular through the Community Development Fund and the granting of donations and sponsorships.
The board of supervision is satisfied with the work
carried out in the past year.
I would like to thank the members of the Board for their
contribution, and the general manager for helping us
deliver on our mandate.
André Bégin Chair, Board of supervision
CAISSE DESJARDINS DU-LAC-MEMPHRÉMAGOG 5
MESSAGE FROM THE GENERAL MANAGER
Dear Members,
In 2016 your caisse continued its mission to meet all
your financial needs by offering you access to a
comprehensive range of products and services.
Offering members a first-rate business experience
remains one of our primary objectives for this year.
In addition to ensuring you are provided with
excellent service, your caisse and Desjardins Group
will continue to develop financial tools and exclusive
new benefits for members. Every effort is being
made to ensure that Desjardins is your financial
institution par excellence.
Below are the financial results of Caisse Desjardins
du Lac-Memphremagog and the share of net
income from business at Desjardins Group
subsidiaries as at December 31, 2016.
These results are directly related to your trust in us, and we are very grateful for that. Thanks to the loyalty of our 31,430 members, we can all benefit from the power of cooperation and support our business development. BUSINESS UNDER MANAGEMENT
Backed by $1,711 million in business under management, up 6.7% over 2015, the caisse is very well positioned in its market. Through its membership in Desjardins Group and participation in Desjardins Group subsidiaries, the caisse has access to a wide range of financial products and services to meet the ever-growing needs of its members.
COMMENTS ON THE FINANCIAL REPORT
3
BALANCE SHEET
Your financial cooperative’s assets total $845.8
million, up 6.8% over last year.
The caisse’s liabilities total $748.4 million, representing an increase of 7.06%. As of December 31, 2016, your cooperative’s equity
posted strong growth, rising to $97.4 million, a 5%
increase. Equity comprised $5.9 million in social
capital, $6.4 million in surplus earnings to be
distributed, $2.05 million in accumulated other
comprehensive income and $83.1 million in
reserves.
Total reserves amount to $83.1 million, including the
reserve for future dividends, which represents $0.9
million. Your caisse has also accumulated
$1.3 million in the Community Development Fund.
3 These comments on the financial report constitute an overview
of the complete report, which is available upon request. Required financial disclosures are presented in the appendix to this annual report.
6 2016 ANNUAL REPORT
The caisse’s capital base is at a level that is in accordance with the standard respecting capital base adequacy established by the Federation.
December
31 2016
December
31 2015 Standard
Tier 1A capital
over its risk
assets:
17.28 % 17.84 % >= 11 %
Tier 1 capital
over its
expansion
assets :
6.98 % 8.15% >= 3,5 %
STATEMENT OF INCOME
During the last fiscal year, your caisse generated $6.4 million in operating surpluses, down of 4.6% over the previous year.
CHANGE IN INCOME STATEMENT ($M)
2015 2016 Variance
($M) ($M) (%)
Interest income 24,6 23,9 -2,8%
Interest charges 7,5 7,2 -4,0%
Net interest income 17,1 16,7 -2,3%
Provision and losses on
loans0,6 0,7 16,7%
Other income 7,1 7,1 0,0%
Other charges 16,9 16,7 -1,2%
Operating surplus
earnings*6,8 6,4 -4,6%
Member dividends** 1,8 1,45 -19,4%
*Operating surplus earnings include Community Development Fund
expenses.
** Amount recommanded at the Annual meeting, for approval by the
members.
At the close of 2016, the caisse generated $7.1 million in surplus earnings before dividends, down 31.9% over the previous year. This year, we propose distributing a dividend of $1.45 million and contributing $300,000 to the Community Development Fund in the form of a collective dividend, which enables us to contribute to the well-being of our community by supporting key projects. The selected amounts were determined based on the importance of striking a balance between the distribution of surplus earnings, growth and capitalization. By maintaining the right balance
between financial market rules and regulations and our members’ needs, we can ensure the sustainable development of our caisse.
INVESTMENT FUNDS
The investments that caisses hold in investment
funds allow the Fédération des caisses Desjardins
du Québec to coordinate investments in Desjardins
Group subsidiaries and regional investments.
The table below indicates the caisse’s interest in
each investment fund and the return on it at the end
of the fiscal year.
THE FEDERATION’S OBLIGATION TO HOLDERS
OF PERMANENT SHARES
Further to a recommendation of the Autorité des marchés financiers, the Fédération des caisses Desjardins du Québec guarantees to cover losses suffered by Quebec caisse members holding permanent shares due to misinformation in the audited Combined Financial Statements and annual Desjardins Group Management’s Discussion and Analysis available at www.sedar.com. The Federation’s obligation in this matter is subject to certain conditions. Holders of permanent shares can request more information at their caisse.
Provincial fund
Shares held as at
December 31,
2016
Average return
Caisse centrale Desjardins (CCD)
$15,539,722 9.04%
Société de Services des caisses Desjardins (SER)
$(378) 0%
Desjardins Venture Capital (INV)
$222,000 16.93%
Desjardins Financial Corporation (FIN5A)
$30,577,956 11.6%
CAISSE DESJARDINS DU-LAC-MEMPHRÉMAGOG 7
The Combined Financial Statements of the Desjardins caisses in Quebec are also made available to the public on www.desjardins.com.
MODERN TOOLS AND PRODUCTS
More and more of you are adopting Desjardins
mobile applications. Available 24/7, these
applications offer the possibility to pay bills, transfer
funds or invest in exclusive financial products. Your
financial autonomy goes hand in hand with the tools
we place at your disposal, and we owe our longevity
and relevance to our ability to create effective tools
that meet your needs.
Accordingly, in the coming years we will be
installing new ATMs to replace our current
machines, which have become obsolete. The new
models will offer the features needed to carry out
your transactions, while ensuring a simple and fast
experience. This will provide an opportunity for the
caisse to conduct a needs analysis of automated
services so it can position itself based on its
members’ financial habits.
A TEAM DEDICATED TO YOU
Our 95 employees are ready to help you achieve
your financial objectives and carry out your projects.
I am grateful for their commitment and their
engagement, which are central to the quality of our
services. It is also thanks to them that Desjardins
Group continues to stand out as one of the best
employers in Canada. This recognition confirms
Desjardins’s position as a leading employer that is
close and committed to its employees.
I would also like to point out the contribution of our
elected officers. Their dedication to the caisse and
the community enables us to promote our unique
cooperative character.
By working together, we can build a stronger
institution and a more dynamic society.
Jean-Luc Dasté
General manager
8 2016 ANNUAL REPORT
ADDITIONAL INFORMATION TO THE FINANCIAL REPORT
SUMMARY OF LOAN PORTFOLIO
As of December 31, 2016, the loan portfolio of the caisse continued to be of high quality. Gross loans past due
but not impaired and gross impaired loans only represented 1.9% and 0.3%, respectively, of gross loans.
The following table presents the distribution of loans by borrower category, with the proportion of gross impaired
loans past due but not impaired, gross impaired loans and the related individual and collective allowances.
(in thousands of Canadian dollars)
Gross loans
neither past due
nor impaired
Gross loans
past due but not
impaired
Gross impaired
loans Individual
allowances Collective
allowances
Net loans as at
December 31, 2016
Net loans as at
December 31, 2015
Personal Residential mortgages
$365,751
Consumer and other
150,973
$516,724 $10,416 $512 $255 $319 $516,150 $483,211
Business Commercial and industrial
$160,357 $
Agriculture, forestry and fisheries
44,057
Public administrations and institutions
6,543
$210,957 $3,655 $1,319 $389 $444 $210,124 $197,603
Total $727,681 $14,071 $1,831 $644 $763 $726,274 $680,814 Refer to Note 2 to the Combined Financial Statements of the Desjardins caisses in Quebec available on the desjardins.com website for additional information
on presentation and significant accounting policies.
SUMMARY OF DEPOSIT PORTFOLIO
As of December 31, 2016, caisse members’ deposits amounted to $638,930,000 up $34,745,000 or 5.8%, since
the end of the previous year. Please note that the caisse’s main source of financing to ensure its expansion is
deposits from individuals. They represented 76.2% of total deposits as of December 31, 2016.
The table below presents the distribution of deposits by depositor category with proportions based on type of
savings.
(in thousands of Canadian dollars)
Chequing accounts
Tiered savings
accounts
Regular savings
accounts
Term savings
Registered Savings
plan
Total as at
December 31, 2016
Total as at
December 31, 2015
Personal $73,944 $61,714 $70,190 $99,209 $181,684 $486,921 $462,140 Business 80,728 9,613 22,070 12,993 - 125,404 90,178
Public sector and other
18,542 112 4,807 3,123 21 26,605 51,867
Total $173,214 $71,439 $97,067 $115,325 $181,885 $638,930 $604,185
Refer to Note 2 to the Combined Financial Statements of the Desjardins caisses in Quebec available on the desjardins.com website for additional information on presentation and significant accounting policies.
CAISSE DESJARDINS DU-LAC-MEMPHRÉMAGOG 9
CAISSE OFFICERS
Name Function Occupation End of
term
Number of presences
meeting/ commitees
Allocation of presence
given in 20161
BOARD OF DIRECTORS
Danielle Bolduc23
Chair Businesswoman 2017 23 $13,190
Georgianne Gagnon Vice-chair Retired 2018 12 $1,710
Maxime Langlois* Secretary Teacher 2016 18 $2,430
Christine Allard Officer Secretary 2018 9 $1,170
Jean-François Benoît* Officer Auditor (CPA, CMA) 2016 9 $1,350
Maxime Ferland Officer Engineer 2017 13 $1,680
Gaétan Giguère* Officer Clerk 2016 11 $1,470
Anne-Marie Grenier Officer Owner-Manager 2018 13 $1,680
Charles Guay Officer Lawyer 2017 10 $1,500
Michel Lafleur Officer Professor 2018 9 $1,350
Charles Métivier* Officer Academic Coordinator 2016 13 $1,860
Valérie Moreau Officer Notary 2017 5 $750
Jocelyne Pellerin Officer Honorary Notary 2017 12 $1,350
Matundu Loïc Véza4 Young Intern
Officer Student 2017 4 $210
Vacant Seat Officer 2018
BOARD OF SUPERVISION
André Bégin Chair Retired 2017 6 $1,620
Thérèse Gaulin Secretary Retired 2018 5 $750
Danielle Boulianne Advisor Semi-retired 2017 5 $750
Lucie Lessard Advisor General Management Assistant
2018 8 $840
Martin Pomerleau* Advisor Fireman 2016 5 $750
* Outgoing officers eligible for re-election 1 Allocation varies according to the implication in different commitees.
2 Chair since May 2008
3 Sits at the Council of the Eastern Township Representatives.
4 Mr. Matundu Loïc Véza has resigned from Young Intern Officer on december 1
st, 2016.
PricewaterhouseCoopers LLP1250, René-Lévesque Boulevard West, Suite 2500, Montréal, Quebec, Canada H3B 4Y1T: +1 514 205-5000, F: +1 514 876-1502, www.pwc.com/ca
“PwC” refers to PricewaterhouseCoopers LLP, an Ontario limited liability partnership.
March 29, 2017
Report on the results of applying specified auditing procedures to the financial report of Caisse Desjardins du Lac-Memphrémagog (the “Caisse”) prepared by the management of the Caisse
To the members of the Fédération des caisses Desjardins du Québec
We are the independent auditor of the separate combined financial statements of the Desjardins caisses in Quebec (the “combined financial statements of the Desjardins caisses in Quebec”), on which we expressed an unmodified opinion on February 24, 2017.
With respect to the accompanying financial report of the Caisse prepared by the management of the Caisse, we were engaged by the members of the Fédération des caisses Desjardins du Québec to agree the financial information contained in the financial report of the Caisse with the accounting records that include the Caisse’s specific accounting adjustments and were used to prepare the combined financial statements of the Desjardins caisses in Quebec for the year ended December 31, 2016 (the “procedures”).
We confirm that we agreed all financial information contained in the accompanying financial report of the Caisse for the year ended December 31, 2016 with the accounting records that include the Caisse’s specific accounting adjustments and were used to prepare the combined financial statements of the Desjardins caisses in Quebec for the year then ended, and we confirm that we found no exceptions.
In particular, as part of our procedures, we agreed the following financial information of the Caisse:
Total assets: 845,849,000 $Total equity: 97,416,000 $Net surplus earnings for the year after member dividends: 6,087,000 $
These procedures do not constitute an audit of the financial report of the Caisse as at December 31, 2016, and therefore we express no opinion on the financial report of the Caisse as at December 31, 2016.1
1 FCPA auditor, FCA, public accountancy permit No. A124829
10 2016 ANNUAL REPORT
FINANCIAL REPORT
CAISSE DESJARDINS DU LAC-MEMPHRÉMAGOG
BALANCED SHEET (unaudited)
(in thousands of Canadian dollars) YYYROUND_YESAs at
December 31, 2016As at
December 31, 2015
ASSETS YYYLANGUE_ENG
Cash and deposits with financial institutions $ 10,748 $ 8,346 YYY11
Securities
Investment in liquidity fund under management 1 43,040 41,598 YYY12
Term deposits and other 2,496 833 YYY13
45,536 42,431 YYY12
Loans
Personal 516,724 483,784 YYY14
Business 210,957 198,456 YYY15
727,681 682,240
Allowance for credit losses 1,407 1,426 YYY16
726,274 680,814
Investments in the Federation 46,374 42,058 YYY17
Other assets
Derivative financial instruments 6,854 8,140 YYY19
Property, plant and equipment 3,483 3,986 YYY20
Other 6,580 6,146 YYY21
16,917 18,272
TOTAL ASSETS $ 845,849 $ 791,921
LIABILITIES AND EQUITY
LIABILITIES
Deposits
Term savings $ 255,967 $ 248,496 3YYY30
Other 382,963 355,689 3YYY31
638,930 604,185
Borrowings 96,491 79,185 YYY32
Other liabilities
Derivative financial instruments 735 209 YYY33
Net defined benefit plan liabilities 4,580 4,825 3YYY34
Other 7,697 10,671 3YYY35
13,012 15,705
TOTAL LIABILITIES 748,433 699,075
EQUITY
Capital stock 5,886 9,915 YYY36
Distributable surplus earnings 6,377 5,413 YYY37
Accumulated other comprehensive income 2,045 1,357 YYY38
Reserves 83,108 76,161 YYY39
TOTAL EQUITY 97,416 92,846
TOTAL LIABILITIES AND EQUITY $ 845,849 $ 791,921
CAISSE DESJARDINS DU-LAC-MEMPHRÉMAGOG 11
CAISSE DESJARDINS DU LAC-MEMPHRÉMAGOG
STATEMENTS OF INCOME(unaudited)
For the years ended December 31
(in thousands of Canadian dollars) 2016 2015
INTEREST INCOME $ 23,900 $ 24,573 YYY50
INTEREST EXPENSE 7,169 7,504 YYY51
NET INTEREST INCOME 16,731 17,069
OTHER INCOME 7,130 7,106 YYY52
PROVISION FOR CREDIT LOSSES 694 564 5YYY53
OTHER EXPENSESSalaries and fringe benefits 7,182 6,661 YYY54Assessments paid to Desjardins Group components 2,408 2,157 YYY55Community development expenses 311 337 YYY56Other 6,822 7,704 YYY57
16,723 16,859
OPERATING SURPLUS EARNINGS 6,444 6,752Income on investments in the Federation 4,672 4,425 YYY58Income (loss) related to fair value of derivative financial instruments (2,529) 1,544 YYY59
SURPLUS EARNINGS BEFORE TAXES AND MEMBER DIVIDENDS 8,587 12,721Income taxes on surplus earnings 1,506 2,320 YYY60
SURPLUS EARNINGS BEFORE MEMBER DIVIDENDS 7,081 10,401Member dividends 1,360 1,754 YYY61Tax recovery on member dividends (366) (472) YYY62
NET SURPLUS EARNINGS FOR THE YEAR AFTER MEMBER DIVIDENDS $ 6,087 $ 9,119
12 2016 ANNUAL REPORT
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Capital stock
Distributable surplus earning
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Appreciation reserve(investments in the
Federation's investmentfunds)
Appreciation reserve(derivative financial
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Appreciation reserve(employee benefit plans)
General reserve
Stabilization reserve
Reserve for futuremember dividends
Community developmentfund
Total reserves
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$13,2
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$46,4
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$3,3
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$1,6
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$1,3
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--
-(1
76)
--
--
--
(176)
(176)
Repurc
hase
of perm
anent sh
are
s(3
,149)
--
--
--
--
--
(3,1
49)
Oth
er
net ch
ange in
capita
l sto
ck(1
63)
--
--
--
--
--
(163)
Net adju
stm
ent re
late
d to m
em
ber
div
idends
-(3
4)
--
--
--
--
-(3
4)
Bala
nce a
fter
dis
trib
uti
on
2015
$9,9
15
$5,4
13
$1,3
57
$21,0
40
$3,1
71
$(3
,529)
$49,8
60
$3,3
62
$924
$1,3
33
$76,1
61
$92,8
46
Dis
trib
utio
n b
y m
em
bers
at th
e 2
016 g
enera
l meetin
gIn
tere
st o
n p
erm
anent sh
are
s and o
n s
urp
lus
share
s-
(422)
--
--
--
--
-(4
22)
Tra
nsf
er
from
(allo
catio
n to)
rese
rves
-(5
,057)
--
--
4,8
57
--
200
5,0
57
-N
et adju
stm
ent re
late
d to m
em
ber
div
idends
-66
--
--
--
--
-66
Bala
nce
after
dis
trib
utio
n9,9
15
-1,3
57
21,0
40
3,1
71
(3,5
29)
54,7
17
3,3
62
924
1,5
33
81,2
18
92,4
90
Net su
rplu
s earn
ings
for
2016 a
fter
mem
ber
div
idends
-6,0
87
--
--
--
--
-6,0
87
Oth
er
com
pre
hensi
ve in
com
e for
the y
ear
-331
511
--
--
--
--
842
Sta
tuto
ry tra
nsf
er
-(2
03)
-1,8
96
(1,8
61)
168
--
--
203
-N
et am
ounts
use
d d
uring the y
ear
-228
--
--
--
-(2
28)
(228)
-E
quity
tra
nsa
ctio
ns
rela
ted to o
ther
inve
stm
ents
in the
Federa
tion
--
177
1,9
15
--
--
--
1,9
15
2,0
92
Repurc
hase
of perm
anent sh
are
s(3
,887)
--
--
--
--
--
(3,8
87)
Oth
er
net ch
ange in
capita
l sto
ck(1
42)
--
--
--
--
--
(142)
Net adju
stm
ent re
late
d to m
em
ber
div
idends
-(6
6)
--
--
--
--
-(6
6)
Bala
nce a
fter
dis
trib
uti
on
2016
$5,8
86
$6,3
77
$2,0
45
$24,8
51
$1,3
10
$(3
,361)
$54,7
17
$3,3
62
$924
$1,3
05
$83,1
08
$97,4
16
YY
Y100
YY
Y101
YY
Y102
YY
Y103
YY
Y104
YY
Y105
YY
Y106
YY
Y107
YY
Y108
YY
Y109
YY
Y110
YY
Y111
CAISSE DESJARDINS DU-LAC-MEMPHRÉMAGOG 13
CAISSE DESJARDINS DU LAC-MEMPHRÉMAGOG
NOTE TO THE FINANCIAL REPORT(unaudited)
NOTE 1 – TYPES OF OPERATIONS AND BASIS OF ACCOUNTING
The Caisse is a cooperative whose purpose is to receive the savings of their members in order to invest them profitably as well as to extend credit andsupply other financial products and services to their members. Its mission also includes fostering cooperation and promoting economic, social andcooperative education. It is governed by the Act Respecting Financial Services Cooperatives (the Act).
The Caisse is registered with the Autorité des marchés financiers (AMF) in Quebec. It is also a member of the Fonds de sécurité Desjardins, whose mainpurpose is to establish and administer a security, liquidity or mutual benefit fund for the benefit of the Desjardins caisses in Quebec.
The Caisses are members of the Fédération des caisses Desjardins du Québec (the Federation), which controls other components that form DesjardinsGroup.
This financial report has been prepared in accordance with the requirements set out in the Act. The Caisse applies accounting policies similar to thoseused for the preparation of the combined financial statements of the caisses Desjardins du Québec, which are prepared in accordance with International
Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board. Some figures from the prior year were reclassified to be
consistent with the presentation of the financial statements of the current year. This reclassification did not affect the Caisse’s surplus earnings or totalassets and liabilities.
14 2016 ANNUAL REPORT
CAISSE DESJARDINS DU-LAC-MEMPHRÉMAGOG 15
SUGGESTED ALLOCATION OF SURPLUS EARNINGS
DISTRIBUTION RECOMMANDATION
Interest on permanent shares (3.5%) $234,899
Interest on surplus shares (3.5%) $16,331
Stabilization reserve $0
General reserve $5,825,771
Appreciation reserve $1,583,389
Use of the reserve for future member dividends $0
MEMBER DIVIDENDS $1,750,000
Collective member dividends – Community Development fund
$300,000
Individual member dividends $1,450,000
Member dividends on loans $695,588
Member dividends on savings $703,771
Member dividends on service charges (2.12%) $50,482
Examples of member dividends
Mortgage for $125,000 Rate of 4.74% = $5,925 paid in interests
Rate: 2.80%
$166
Savings held $50,000 Rate of 1.50% = $750 paid in interests
Rate: 11.2% $84
12 2016 ANNUAL REPORT
APPROVAL OF THE ANNUAL REPORT We certify that the 16
th annual report of Caisse Desjardins du Lac-Memphrémagog meets the requirements of the
Act respecting financial services cooperatives and has been duly approved by the caisse’s board of directors. Danielle Bolduc Chair of the Board of Directors
Maxime Langlois Secretary
CONTACT INFORMATION ACCESS YOUR CAISSES’S SERVICES 24/7
SERVICES ACCESSIBLE THROUGHOUT THE TERRITORY
Telephone : 819 843-3328 Toll Free : 1 866 400-3328
desjardins.com/caissedulacmemphremagog desjardins.com/advantages
facebook.com/caisselacmemphremagog SPEAK TO EN ADVISOR (INCLUDING HOLIDAYS)
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MAGOG SERVICE CENTRE
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Caisse Desjardins du Lac-Memphrémagog is proud to present with an Annual Report that is printed entirely on 100% recycled paper.
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