Servus to share millions
Servus Credit Union plans to share a little Christmas cheer with its members next month — nearly $46 million worth.
The member-owned financial institution announced on Thursday that it will distribute $45.8 million under its profit share program this year. The money is expected to be deposited into members’ accounts the first week of December, said Ian Glassford, Servus’s chief financial officer.
Last year, $44.3 million was paid out under the program, and in 2010 the figure was $43 million.
The amount of money each member receives is calculated on the basis of the number and size of their deposit and loan accounts, as well as other factors. Commercial and agricultural members receive a cash rebate on service charges, and dividends are paid on common shares and investment shares.
“At Servus, our 390,000 member-owners across the province share in our success and directly in our profits,” said Garth Warner, president and CEO of Servus. “Our financial performance to date has been very strong and the profit share program allows us to thank our members for their business.”
Glassford said detailed financial results for Servus’s 2012 fiscal year — which ended Oct. 31 — will not be released to the public until the end of February or early in March. But after three quarters this year, the credit union’s income before patronage allocations and income taxes was $79.7 million, more than the $76.6 million earned during all of the preceding year.
Member loans had reached $10.4 billion after nine months, up seven per cent from the $9.7 billion a year earlier; deposits were up to $10.7 billion, a five per cent improvement over $10.2 billion; and total assets had hit $11.8 billion, more than five per cent higher than the $11.2 billion to the same point in 2011.
“2012 has been a very good year for the credit union,” said Glassford, adding that this reflects the strength of Alberta’s economy.
He’s optimistic 2013 will produce good results as well.
“Maybe just a little bit slower than we saw in 2012,” said Glassford, speculating that a slower domestic housing market and reduced demand for resource commodities will be offset in part by a strengthened U.S. housing sector.
Headquartered in Edmonton, Servus was created in November 2008 by the merger of Red Deer-based Community Savings, Edmonton’s Servus Credit Union and Common Wealth Credit Union of Lloydminster. Since then, the amalgamated credit union has paid out approximately $174 million through its profit share program.
Servus’s annual general meeting is scheduled for March 11 in Edmonton. The meeting can be viewed online through Servus’s website.
Servus has operations in more than 100 locations in 62 Alberta communities.