MGMT 3076 – MANAGING FINANCIAL INSTITUIONS

BARBADOS PUBLIC WORKERS CO-OPERATIVE CREDIT UNION

&
MOUNTAIN VIEW CREDIT UNION
PEARLS HISTORICALY COMPANY ANALYSIS

PREPARED BY:
NICHOLAS SHOREY - 415000279
DEMAR THORNE - 414001895
MALIK BAKER -
SHANE WELCH -

LECTURER – GREGORY HINKSON

Table of Contents
Table of Contents ...................................................................................................................................... 1
EXECUTIVE SUMMARY .......................................................................................................................... 2
MOUNTAIN VIEW - OVERVIEW ............................................................................................................. 3
P RODUCT OFFERED – M OUNTAIN VIEW ............................................................................................. 4
BARBADOS P UBLIC WORKERS CO-OPERATIVE CREDIT UNION – OVERVIEW .............................. 5
P RODUCTS OFFERED – BPWCCUL ..................................................................................................... 6
EFFECTIVE FINANCIAL STRUCTURE – 1 ........................................................................................................ 10
EFFECTIVE FINANCIAL STRUCTURE – 3 ........................................................................................................ 11
EFFECTIVE FINANCIAL STRUCTURE – 4 ........................................................................................................ 12
EFFECTIVE FINANCIAL STRUCTURE – 5 ........................................................................................................ 13

EFFECTIVE FINANCIAL STRUCTURE – 7 ........................................................................................................ 14

EFFECTIVE FINANCIAL STRUCTURE – 8 ........................................................................................................ 15
ASSET QUALITY .................................................................................................................................... 16
ASSET QUALITY – 1 ................................................................................................................................. 16
RATE OF RETURN ................................................................................................................................. 17
RATE OF RETURN - 1................................................................................................................................ 18
RATE OF RETURN - 3- 5B ......................................................................................................................... 19
RATE OF RETURN – 8 ............................................................................................................................... 21
RATE OF RETURN – 9 – 12 ..................................................................................................................... 22
LIQUIDITY ............................................................................................................................................. 23
SIGNS OF GROWTH ............................................................................................................................... 24
EXECUTIVE SUMMARY
The aim of this respite was to conduct a financial investigation on the performance of the

Barbados Public Workers Co-operative credit union Limited and Mountain View Credit Union in

Canada. To ensure that the comparison of these two companies are fair we converted the

BPWCCUL financial statements to Canadian dollars. PEARLS ratios were used to conduct the

financial investigation on the financial statements of both entities PEARLS Analysis ratios

stands for Protection, Effective Financial Structure, Asset Quality, Rates of Returns/Coat,

Liquidity and Signs of Growth. In this assessment we used ratios of each of these categories to

suggest the soundness. The findings indicate that Barbados Public workers and Mountain View

are operating within a safe and sound practice in most areas. In Effective Financial Structure, the

BPWCCUL results indicate that their membership shares are not where it needs to be in terms of

the accounting standard suggested. Any other discrepancies are over are under by an

insignificant amount but it’s important that both credit unions monitor ratios to avoid any serious

issues that can be faced. In terms of liquidity, it seems that Mountain View may have liquidity

issues due to the significantly low liquidity ratios and a few ratios in Rate of Return.
MOUNTAIN VIEW - OVERVIEW

On March 3rd, 1977, Mounting View Credit Union was established through the

combination of four small credit unions: Cremona, Olds, Sundre & Didsbury. At the time of

amalgamation, assets were totalled at $1.3 million. From its humble beginnings the credit union

reaped solid growth & managed to declare dividends for the first time in 1988. The credit union

has focused on meeting the financial needs of its members in a professional and equitable

manner whilst managing to provide community commitment & employee commitment.

Subsequently, the credit union has earned a strong status by adhering to traditional credit union

values of putting members first.

Like any other business, adapting quickly & staying in tune with members play a

significant part in the survival of the company. The MVC is no exception, since its actuality the

credit union has undergone substantial changes to facilitate its growth such as: renovations to

premises, new branches & ATMs. Today, the new Mountain View credit union serves over

17,000 members with assets over $740 million and has 125 employees in 13 branches.

The credit union continues to navigate the dynamic economic environment to this date

through responding proactively to key issues, trends & challenges. The board has sound

governance, organizational alignment and an expert management team and seeks to continue to

build a credit union that is sustainable for their owners and meaningful to the communities they

serve by providing personalized, responsive investment and credit advice that will help each of

their members achieve their financial goals.

PRODUCT OFFERED – MOUNTAIN VIEW

The credit union has grown into such a space that it can offer almost any type of financial

service a member could want. The services currently offer broadly includes, banking, borrowing,

investing & financial planning. To facilitate banking, the credit union offers a variety of accounts

such as: chequing accounts, savings accounts, mountain max kids account, starting out young

adult account, senior accounts, community accounts and U.S. accounts. As it relates to

borrowing, a member can expect a myriad of products including; mortgages, personal loans, rrsp

loans, overdraft protection & home equity line of credit. In relation to investing, a wide range of

investment products are offered to suit goals and risk tolerance of members including: term

deposits, mutual funds, tax-free savings accounts, registered education savings plans, registered

retirement savings plans, registered retirement income funds, common shares & online

brokerage. With regards to financial planning, the credit union offers services such as wealth

management, insurance planning, estate planning, farm/business succession planning, developing

tax strategies, mutual funds, investment planning, retirement savings and income & educational

planning.
BARBADOS PUBLIC WORKERS CO-OPERATIVE CREDIT UNION – OVERVIEW

The mission of Barbados Public Workers Co-operative Credit Union Limited is to render

excellence in service to our members while providing the means for enhancing their financial,

economic and social wellbeing in consonance. While the vision is to be the premier indigenous

co-operative financial service provider in the region, hand in hand with our membership. In

1968, members of the Civil Service Association Trade union were granted permission to form a

Savings Society. A savings society is basically a financial institution that specializes in accepting

savings, deposits and making loans. By 1969 the objective of the executive of this Society was to

register as a Credit Union. On May 6th, 1970 the Barbados Civil Service Association Credit

Union Limited was registered. A credit union is a non-profit financial institution owned by all

it’s members. Credit unions focus on helping their members save, borrow and receive affordable

financial services. To broaden its bond of membership in 1977, the name was changed to the

name we know now, which is Barbados Public Workers’ Co-operative Credit Union Limited

(BPWCCUL). Today, membership of the credit union is open to all Barbadians, residents and

non-resident. In 2010 the credit union acquired Capita Financial Services Inc (a mortgage and

finance company) now it operates as a wholly-owned subsidiary of the BPWCCUL with offices

in Barbados and St. Lucia.

PRODUCTS OFFERED – BPWCCUL

SAVINGS AND INVESTMENTS

1. On joining the credit union four share records are
a) Member qualifying share – all members must maintain BDS $120 in their account to
keep their membership.
b) Primary shares – savings receive interest semi-annually.
c) Call deposits – call deposits receive interest monthly.
d) Salary Lodgement – savings on salary lodgment receive interest monthly.
2. Gift vouchers – available in denominations of $25, $50, and $100 and can be used to
open an account or add credit to an existing account.
3. Investment Products
a) Term deposits
b) Starter premiere plan
c) Premiere plan
d) UCOLSA retirement plan

LOANS AND MORTGAGES

Vehicle loans – offers loans for new and used vehicles
Vehicle repair and insurance loans
Personal loans – offered for education, medical, funeral, wedding, travel,
furniture/appliance, and debt consolidation
Student loans
Mortgages

THE FINANCIAL EDUCATION UNIT

Provides one on one service to members and assists them in setting and achieving financial
goals. These financial sessions are offered free of charge, but by appointment during office
hours.
CO. OPTIMA
An electronic application which allows you to access your account at any time via an electronic
mobile device.

DEPOSITS/PAYMENTS
Accounts can be paid at any Sure Pay location.

LEGAL SERVICES
The credit union’s legal department provides legal services at the request of members.
BPWCCUL also provides will services under their legal services package.

MONEY AND MARRIAGE

a. Joint accounts
b. Mortgages
c. Insurance
d. Financial Education
e. Will preparation

CONFERENCE FACILITY
The L.V. Harcourt Lewis Training Centre, located on the outskirts of Bridgetown is available for
any event venue. Accommodates up to 150 persons.

ECONOMIC SENSITIVITY
It is predicted the BPWCCUL will remain healthy over the coming years and membership should
continue to grow. Membership is expected to increase to 3.5%, thus making for a strong balance
sheet, while the income statement may be fragile. Loans are likely to have an 8% increase with
growth in home construction and purchases of vehicles, making the economy have a faster
growth rate of 2.4% faster than the previous year. On the other hand, predictions suggest that
unemployment will rise by 4%, therefore the BPWCCUL will have difficulties hiring and
keeping employees.
PROTECTION
The ”P” which represents protection are a set of ratios, which are an intended
representation that members have a safe place for their money. This is determined by six (6) key
ratios which measure the quality of the loan portfolio, financial investments, management and
adequacy of provisions. The cover areas such as loan write offs, loan delinquency, loan
provisions and loan recoveries.
Of the six ratios, P6 was used to calculate the solvency of the Credit Union

Protection Goal
P6 SOLVENCY (Net Value of Assets/ Total >111%
Shares & Deposits)

Solvency refers to a company’s ability to meet its long term financial obligation or in other
words pay its debts. In relation to P6, This measures the worth of one dollar in member-client
savings after adjusting for known and probable losses.

After careful analysis of the companies’ ratios over the period 2013-2017, there is
absolute certainty that BPWCCUL can repay their debts even though the percentages were
declining slightly. The calculated percentages throughout the years 2013-2017 were 122%. ,
120%, 118%, 116% and 115% respectively.

On the other hand, calculation of the Mountain View’s ratios suggests that they were
lacking solvency. Throughout the years 2013-2015 the company was only 80% solvent while
over the last two years they only managed a solvency level of 90%.
EFFECTIVE FINANCIAL STRUCTURE
Effective Financial Structure helps to optimize institutional solvency, profitability and

liquidity. The six effective financial structure ratios were used to analyse the two companies

were:

Effective Financial Structure Goal

E1 – Net Loans/ Total assets 70-80%
E2- Financial Investments/Total Assets <2%
E4 – Borrowed Funds/Total assets <5%
E5 – Savings Deposits/Total Assets 70%-80%
E7 – Member Share Capital / Total Assets <20%
E8- Institutional Capital / Total Assets >10%
 EFFECTIVE FINANCIAL STRUCTURE – 1

The BPWCCUL ratios for E1 is calculated by Net Loans/Total Assets. The Ratios were

calculated to be 81%, 83%, 82% and 83% within the years 2013- 2017 respectively. For this

ratio the desirable standard is 70%-80% and over. The Barbados Public Workers are above the

reccomended standard therefore we can conclude that they are performing great in respect to this

ratio. In comparison, Mountain View ratios are also in the range suggested.

BARBADOS PUBLIC WORKERS VS.

MOUNTAIN VIEW- E1
2013 2014 2015 2016 2017
87%

85%
83.00%

84%
83%

82%
81%

81%

81%
80%

BARBADOS - E1 CANADIAN - E1
 EFFECTIVE FINANCIAL STRUCTURE – 3

This ratios measures the credit union’s percentage of assets held to it’s finaicial

investments. The ratio is calculated by Financial Investments/Total Assets. The best practice

suggest that this ratio be held below or equal to ten percent. Below the graph illustrates the ratios

of the the past five years between both the barbados and canadian credit union. In the illustration

we can observe that Barbados Public Workers ratio result remain well below 10% suggesting

that they are performing exellent with this ratio. However Mounting View credit union ratios

(based on the five-year period) have a tendency of raising a little above the ten percent marker

indicating that their financial investments could potentially pose a risk.

BPWCCUL VS. MOUNTING VIEW - E3

2013 2014 2015 2016 2017

16%
15%
11%

11%
9%
2.84%
3%

3%

3%
2%

BARBADOS - E3 CANADAIAN - E3
 EFFECTIVE FINANCIAL STRUCTURE – 4

The purpose of this ratio is to measure the percentage of total assets that are financed by

external borrowings. It is suggested that this ratio is maintained below 5% as cost of borrowings

become more of an issue with a higher ratio. The graphs below illustrate the findings of this

ratio. The Barbados Public Workers manage to keep this ratio below five percent in the years

2016 and 2017. However we can see that during the years 2013-2014 the ratio is outside of the

range that is reccomended for credit unions. On the other hand, Mountain View manages to stay

within the range suggested by best practices and not crossing the 5% marker indicating that they

are not aggressively borrowing funds.

EFFECTIVE FINANCIAL STRUCTURE -

4
Barbados Canada
8%

6%

5%

4%

2%
1%

1%

1%
0%

2013 2014 2015 2016 2017

 EFFECTIVE FINANCIAL STRUCTURE – 5

This ratio stands to measure the percentage of total assets that are financiaed by

the savings of the memebers. Best practice suhhest the ratio 70%-80% is optimal. The results

from the ratios for both credit unions are displayed below.

We can conclude that both the Barbados credit union (BPWCCUL) and Mountain View

are doing exceptionally well with this ratio. As mentioned above, best practice suggests that

credit unions should aim to keep this ratio between 70-80% or above. As depicted below, both

companies achieve this.

EFFECTIVE FINANCIAL STRUCTURE

E5 – Savings/Total Assets.
YEAR BARBADOS CANADA
2013 81% 92%
2014 82% 92%
2015 84% 92%
2016 85% 90%
2017 87% 89%
 EFFECTIVE FINANCIAL STRUCTURE – 7
This ratio measures the members share capital against assets. Best practices suggest that

this ratio should be held between ten and twenty percent.

EFFECTIVE FINANCIAL STRUCTURE

E7 – Members Share Capital
YEAR BARBADOS CANADA
2013 0.82% 4%
2014 0.83% 4%
2015 0.87% 4%
2016 0.81% 4%
2017 0.77% 3%

The Barbados Public Workers Cooperative Credit Union results for the members share

capital ratios while yes, the ratios remain under 20% as suggested they are still extremely low in

comparison to the ratios at Mountain View credit union. This could mean that Members shares at

Barbados Public Workers Credit Union are low in respect to the assets of both credit unions.
 EFFECTIVE FINANCIAL STRUCTURE – 8
This measures the percentage of total assets financed by capital. Best practice suggests

that this ratio be held below or equal to 10%.

EFFECTIVE FINANCIAL STRUCTURE

E8 – Institutional Capital/ Total Assets

YEAR BARBADOS CANADA

2013 8% 4%

2014 9% 4%

2015 10% 4%

2016 9% 5%

2017 9% 5%

As depicted above the Barbados credit union ratio results are almost always below the

suggested benchmark expect for year 2015 when they have a ratio of 10%. In comparison to the

Canadian credit their ratios are consistently below 10% which the recommendation for operating

credit unions suggesting that they are performing well.

ASSET QUALITY
ASSET QUALITY – 1

Ratios under the asset quality measure the relationship between earning and non-earning

assets. Some areas of concern under this heading include loan delinquency, asset management

and excessive non-earning assets. An excess of defaulted or delayed repayment of loans and high

percentages of other non-earning assets have negative effects on credit union earnings because

these assets are not earning income. Motivation for assessing asset quality is to steer

management and others to follow up on delinquent members.

We chose to analyse the A1 – Total Loan Delinquency/Gross Portfolio. The purpose of

the ratio is to measure arears of payments. This delinquency ratio is the most important

measurement of any weaknesses. If the ratio is high, then it can affect other areas of operations.

Best practices suggest that the ratio should be held below or equal to 5%. As displayed below we

can conclude that both credit unions have produce a ratio well below 5% implying that their

Loan losses are not significant amount of the loans they expect to see in returns.

ASSET QUALITY
A1 – Total Loan Deliqeuncey/ Gross Loan Portfolio
YEAR BARBADOS CANADA
2013 0.63%
2014 0.57%
2015 0.44%
2016 0.42%
2017 0.46%
RATE OF RETURN
These indicators monitor the return earned on each type of assets and the cost of each

type of liability. On the asset side, we can determine what types of assets earn the highest

returns. While on the liability side we can determine what are the least and most expensive

sources of funds. We used eight of these ratios to analyse the credit unions.

Ratio Goal
R1 – Total Loan Income/ Average Net Entrepreneurial Rates
Loan Portfolio
R3 – Total Income/Total Assets Market Rates
R5a – Staff Cost/Total Income 15%
R5b -Expenses/ Total Income * < 70%
R8 – Gross Income Margin/Average Total ^E9=10%
Assets
Total Operating Expenses/Average Total <5%
Assets
R11 – Other Income or Expense/Average Minimized
Total Assets
R12 – Net Income/ Average Assets ˆE9=10% or greater than inflation*
 RATE OF RETURN - 1

The goal of this ratio is for loan prices to be set at entrepreneurial rates. The
entrepreneurial rate needs to cover the cost of funds, the cost of operations and administration,
cost of provisions and cost of contribution to increase capital which is to be maintain at
institutional capital (10%).

The graphs below show the trends over the last five years with the R1 ratio for both Canada and
Barbados. Barbados Public Workers ratio results all fall below 10% which indicates that the
credit union may not be earning or paying the entrepreneurial rates for this ratio.

BARBADOS VS. CANADIAN - R1

2013 2014 2015 2016 2017
6%

6%

6%

6%
5%

3%
3%

3%

3%

3%

BARBADOS - R1 CANADIAN - R1
 RATE OF RETURN - 3- 5B

The Graph illustrated below shows the ratio results for Rate of Return - 3, R5a and R5b.

Rate of Return – 3 is calculated by taking Total Income and dividing it by Total assets

(Total Income/Total Assets). This ratio measures the adequacy of earnings. The Barbados Credit

union ratios remain almost unchanged with 8% thriving for the five-year period. While Mountain

View holds a 4% in year 2013 and 3% in the remaining years. While this ratio best practice is

based on the market rates, it’s easy to assume that the higher this ratio is the more capable the

credit union can cover its operating and provisioning expenses.

Ratio Rate of Return – 5A is calculated by Staff Cost/Total Income. It measures salary

and related expenses as a percentage of total income. Best practices suggest that this should be

held to 15% or less. As can be seen below the Barbados Public Workers ratios are 15% for year

2013. While in 2014-2017 the ratios are above the range recommended with 18%. While these

are not extremely over the goal, having the ratios over can cause issues in the credit unions.

Mountain View also manage to be over the best practices recommendations but by more than

just a little, with results like 50% and over. These ratios would indicate that Mountain View’s

staff cost are half or more than half of the total income that their generating.

The next ratio analysed was Rate of Return -5B is the third ratio under ratio 5. It

measures the expenses as a percentage of total income. (Expenses/Total Income). Basically, this

ratio shows how much the credit union’s expenses are in terms of their total income. The best

practice suggests that this ratio be under or equal to 70%. BPWCCUL achieves this by keeping

their ratio in the 40% range. However, Mountain View ratio results for are extremely high

producing results between 90%-105% over the last five years. This suggest that the credit
 union’s expenses may be exceeding or very close to exceeding the amount of income they are

generating during the year. The graphs below illustrate the ratios for both Barbados Public

Workers and Mountain View.

BARBADOS PUBLIC MOUNTAIN VIEW

WORKERS RATE OF RETURN 3-5B
RATE OF RETURN 3-5B Total Income/Total Assets Staff Cost/Total Income

Total Income/Total Assets Staff Cost/Total Income Expenses/Total Income

105%
100%
Expenses/Total Income

99%
47%

96%

92%
45%
44%

44%
40%

56%
55%

55%
54%

52%
18%
18%
18%
17%
15%

4%

3%
3%

3%

3%
8%

8%
8%

8%

8%

2013 2014 2015 2016 2017

2013 2014 2015 2016 2017
 RATE OF RETURN – 8

This ratio measures the Gross Income Margin in respect to the total assets of the credit

union. The best practices suggest that credit unions should maintain their ratio below or equal to

ten percent (the same standard as Effective Financial Structure ratio 9). The ratios for both

Barbados and Canada are illustrated in the graph below. The Barbados credit union manages to

maintain this ratio below ten percent with obtaining 5% in each year analysed. Mountain View

ratios are in the recommended range obtaining 3% each year analysed. This suggest that the

company is in good standing with their gross income versus its assets.
 RATE OF RETURN – 9 – 12

Rate of Return -9 measures the cost of running the credit union against its total assets. As

depicted in the table above, this ratio should be maintained below 5%. The calculation is total

operating expenses/ average total assets. In terms of the Barbados Credit union we analyzed,

BPWCCUL managed to keep this ratio below 5% with 2% being the highest it has reached

during thefive-year period. Also, Mountain View manages to keep the ratio at a minimal with

3% being the highest in 2013 and the remaining years all scoring 2%.

Rate of Return – 11 measures other income against the total assets (Other Income/Total

Assets). This ratio is indented to produce a significantly small result and both credit unions

produce extremely low results as displayed in the graphs below or the tables in the appendix.

Rate of Return – 12 also known as the Return on Assets ratio (ROA). This indicates the

profitability of a company and is intended to measure a credit union’s efficiency in using its

assets. Strong ROA indicates that the credit union can provide a dividend to its members and

reinvest in new products. It also helps determine if a company is solvent.

BARBAODS PUBLIC
WORKER
RATE RETURN
Operating Expenses/Avg Total Assets
Other Income/Average Total Assets
Net Income/Average Total Assets
1.35%

1.21%
1.14%
1.12%

2%
2%

0.95%
2%

2%

2%
0.43%

0.43%
0.42%

0.37%
0.35%

2013 2014 2015 2016 2017

LIQUIDITY
Liquidity is significant to measuring a credit union’s ability to meet possible cash

withdrawals. The aim is to identify a level of liquid funds available to cover withdrawals or to

meet unforeseen Day-day requirements. We chose one of the three liquidity ratios from the

pearls analysis and that was L1. L1 is calculated by Liquid Investments/Savings and Deposits.

This ratio identifies the level of liquid investments available to cover and meet

unforeseen requirements. The best practices suggest that a ratio of 15-20% is desirable. Barbados

Public Workers Co-operative Credit union resulted in 15% for the years 2013-2014. While in the

latter years the ratio fell to 12% (2015-2016) and then 10% by 2017. While this is now a

significant fall it is important that the credit union note the decrease and try to improve in the

following years to avoid liquidity issues.

SIGNS OF GROWTH
These are the last ratios in the PEARLS analysis ratio. These ratios measure the growth

of important assets, liabilities and equity items of a credit union. Each ratio in this category

measure the growth of the item specified. These ratios indicated membership satisfaction, the

appropriateness of product offerings and financial strength. The advantage of the PEARLS

system is that it links growth to profitability as well as to other key areas. We chose the

following ratios to analyses.

Signs of Growth Goal

1. Growth in Loans to Members Dependent on E1 70-80%
2. Growth in Financial Investments Dependent on E3 < 16%
5. Growth in Savings Deposits Dependent on E5 70-80%
6. Growth in Member Shares Dependent on E7 <20%
8 Growth in Institutional Capital Dependent on E8>10%
11. Growth in Total Assets >Inflation + 10%

First signs of growth ratio we analysed was Growth in Loans to members. With the

Barbados credit union, in year 2013 the ratio was 3% however this still means the credit union

loans to members still increased however not at a large rate. In the following years the ratios

started to increase a little moving from 3% to 7% and finally 11% by year 2017. In comparison,

the Canadian credit union results were similar numbers but in a different pattern each year.

Mountain View start with a ratio of 8% in 2013, that decreased to 6% by following year. In 2016

the ratio reached a peak of 12% but fell significantly to 3% the following year.

Secondly, we analysed the Growth in Financial Investments. A growth in financial

investments simply indicates if the company has invested more or less over a period of time. Of

course, investing does not mean the returns of the investments are promised. However, for the
years analysed for BPWCCUL were mostly over 10% except in year 2017 when the ratio was

just 1%. In comparison, Mountain View the ratios were mostly over 10% with the highest one

being 60% in year 2017. However, the company had some negative ratios which indicate that in

year 2013 and 2015 the company invested less than they did in the previous year.

The next ratio was Growth in Savings. Growth in Savings deposits would mean that the

credit union’s member increases the amount they have deposited between the last period and the

present. Deposits are listed as a liability where savings are good for members for the credit union

their savings are just another liability due to the ability of them withdrawing their funds and

risking the liquidity increase of the company. The Barbados credit union ratio during the five-

year period stayed below 10% for the first three years. In the remaining years the ratio resulted in

13% and 10%. While these results are only over the recommended standard by a few, it is

important that the credit union takes note to avoid any issues in the near future. In contrast the

Canadian credit union, the results are similar with 2013, 2015, 2017 sitting below 10%.

However, in years 2014 and 2016 the ratios were 12%.

We also analysed the Growth in Members Share Capital. This ratio is dependent on the

ratio E7, which analyses the members share capital in respect to the total assets. For the

Barbados credit union, the ratio fluctuates beginning with 5% for year 2013 and creeping to 6%

for the two following years. Lastly the ratio resulted in 7% for the years 2017 and 2016.

However, for Mountain View members share capital decreased in both year 2013 and 2014

resulting in a negative growth ratio. The results continue to fluctuate as Mountain View obtained

a ratio of 1% growth in 2015 and it climbed to 15% in 2016. Unfortunately, the ratio again

declined in year 2017 to 4%.

 Growth in Net Institutional Capital is one of the most important growths a company can

experience. The best practice suggests the ratio should be above 10%. For the next two years the

ratio managed to remain above 10% with 15% and 11% for years 2013 and 2014. The ratio

continues to fluctuate dropping to 9% and raising again to 11% in years 2015 & 2016. The

Canadian credit union Mountain View ratios are mostly above 10% except year 2015 which has

a ratio of 6%

The Final Ratio is Growth in Total Assets. The Barbados credit union highest ratio result

for our next ratio is 14% in the years 2016 and 2017. This ratio is the growth in assets. The

growth in assets is usually the most important growth ratio given that assets are one of the most

important items in the financial statement. Unfortunately, in 2013 the ratio fell from 22% to 5%.

Continuing to fluctuate over the next three years the ratio then peaked to 11% by year 2016.

The Signs of Growth ratios are displayed in the table below.

Mountain View Barbados Public Workers

SIGNS OF GROWTH 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017
Growth in Loans to
Members Dependent on E1 8% 6% 10% 12% 3% 3% 7% 10% 11% 10%
Growth in Financial
Investments Dependent on E3 -35% 46% -38% 34% 60% 20% 18% 21% 13% 1%
Growth in Memebers
Shares -1% -0.4% 1% 15% 4% 5% 6% 6% 7% 7%
Growth in Savings
Deposits Dependent on E5 1% 12% 1% 12% 8% 5% 9% 9% 13% 10%
Growth in Net
Instituational Capital Dependent on E9 12% 10% 6% 28% 11% 11% 9% 12% 14%
Growth in Total
Assets > Inflation 1% 11% 1% 14% 9% 5% 5% 1% 14% 14%
APPENDIX
PEARLS Analysis

PEARLS Standard Mountain View's % Barbados Public Workers Co-opertive Credit Union

2013 2014 2105 2016 2017 2013 2014 2105 2016 2017
PROTECTION
Solvency (Net Value of Assets/Total
Shares & Deposits >=100%

EFFECTIVE FINANCIAL STRUCTURE

Net loans/Total Assets 70-80% 84% 80% 87% 85% 81% 81% 81% 83% 82% 83%
Financial Investments/Total Assets Max 10% 11% 15% 9% 11% 16% 2% 3% 2.84% 2.88% 3%
Savings Deposits/Total Assets 70-80% 92% 92% 92% 90% 89% 81% 82% 84% 85% 87%
Member Share Capital/Total Assets 10-20% 4% 4% 4% 4% 3% 0.82% 0.83% 0.87% 0.81% 0.77%
Institutional Captial/Total Assets Min 10% 4% 4% 4% 5% 5% 8.3% 8.9% 9.6% 9.3% 9.3%
Borrowed Funds/Total Assets Under 5% 0% 1% 1% 1% 2% 8% 6% 5% 4% 2%

ASSET QUALITY
Total Loan Delinquency/Gross Loan Portfolio < or equal to 5% 0% 0% 0% 0% 0% 0.63% 0.57% 0.44% 0.42% 0.46%

RATES OF RETURN & COSTS

Net Loan Income/Average Net Loan PortfolioEntrepreneurial Rate 3% 3% 3% 3% 3% 6% 6% 6% 5.72% 6%
Total Income/Total Assets Market Rates 4% 3% 3% 3% 3% 8% 8% 8% 8% 8%
Staff costs/Total Income Market Rates > Inflation 55% 54% 55% 56% 52% 15% 17% 18% 18% 18%
Expenses/Total Income Variable - Linked to R9, R11, R12 96% 100% 105% 99% 92% 40% 44% 47% 44% 45%
Gross income Margin/Avg Total Assets 5% 3% 3% 3% 3% 3% 5% 5% 5% 5% 5%
Total Operating Expenses/Avg Total
Assets Minimal 3% 2% 2% 2% 2% 2% 2% 2% 2% 2%
Other income/Average Total Assets Linked to E-9 1% 1% 1% 0% 0% 0.42% 0.35% 0.37% 0.43% 0.43%
Net Income/ Average Total Assets 1.35% 1.12% 0.95% 1.14% 1.21%
LIQUIDITY
Short term Investments / Total savings
& deposits Min 15% 15% 15% 12% 12% 10%

SIGNS OF GROWTH
Growth in Loans to Members Dependent on E1 8% 6% 10% 12% 3% 3% 7% 10% 11% 10%
Growth in Financial Investments Dependent on E3 -35% 46% -38% 34% 60% 20% 18% 21% 13% 1%
Growth in Memebers Shares -1% -0.4% 1% 15% 4% 5% 6% 6% 7% 7%
Growth in Savings Deposits Dependent on E5 1% 12% 1% 12% 8% 5% 9% 9% 13% 10%
Growth in Net Instituational Capital Dependent on E9 12% 10% 6% 28% 11% 11% 9% 12% 14%
Growth in Total Assets > Inflation 1% 11% 1% 14% 9% 5% 5% 1% 14% 14%
BARBADOS PUBLIC WORKERS CO-OPERATIVE CREDIT UNION - FINANCIAL STATEMENTS
¥×
Barbados Public Workers Co-
opertive Credit Union Balance FIVE YEARS FINANCIAL DATA
Sheets for the period
2013-2017
Expresed in Canadian Dollars 2017 2016 2015 2014 2013

Assets
Cash Resources $ 74,504,497 $ 81,482,827 $ 69,057,425 $ 77,854,028 $ 74,556,151
Financial Invesments $ 22,378,242 $ 22,240,110 $ 19,671,415 $ 16,306,719 $ 13,773,561
Held to maturity $ 18,117,067 $ 18,458,617 $ 16,404,323 $ 12,948,779 $ 10,398,036
Available for sale $ 1,901,698 $ 1,527,126 $ 1,290,851 $ 1,338,020 $ 1,297,945
Loans and recieveables $ 2,359,477 $ 2,254,367 $ 1,976,242 $ 2,019,919 $ 2,077,580
Loans and advances $ 697,881,206 $ 635,787,871 $ 575,239,075 $ 523,870,676 $ 491,787,211
Property and equipment $ 28,395,136 $ 20,133,424 $ 19,084,625 $ 19,052,242 $ 17,308,751
Pension plan asset $ 782,211 $ 277,936 $ 436,435 $ 3,629 $ 204,459
Corporation tax recoverable $ 276,375 $ 210,531 $ 230,528 $ 232,544 $ 241,487
Intangible assets $ 1,847,501 $ 1,847,501 $ 1,847,501 $ 1,847,501 $ 1,847,501
Other assets $ 9,032,423 $ 10,096,076 $ 6,882,396 $ 6,536,862 $ 4,232,723
Total Assets $ 835,097,589 $ 772,076,276 $ 692,449,400 $ 645,704,201 $ 603,951,885

Liabilities
Deposits $ 722,802,084 $ 658,479,870 $ 581,113,244 $ 532,697,267 $ 490,330,737
Loans payable $ 14,172,531 $ 26,037,273 $ 33,035,944 $ 40,610,826 $ 47,283,416
Reimbursable shares $ 4,999,982 $ 4,548,972 $ 4,253,836 $ 3,397,517 $ 3,635,353
Corporation tax payable $ 29,938 $ 51,670 $ 682,475 - $ 109,271
Asset tax payable $ 155,079 $ 382,793 - $ 26,043 $ 18,618
Defferred taxation $ 53,006 $ 33,128 $ 53,356 $ 51,924 $ -
Other liabilites $ 8,701,924 $ 8,073,437 $ 6,363,718 $ 7,589,393 $ 7,242,216
Total liabilities $ 750,914,544 $ 697,607,143 $ 625,502,574 $ 584,372,970 $ 548,619,612

Equity
Share capital $ 6,401,952 $ 5,972,570 $ 5,563,987 $ 5,231,589 $ 4,926,923
Statutory reserves $ 68,368,485 $ 62,001,014 $ 57,014,628 $ 51,991,084 $ 45,419,456
Other reserves $ 3,687,549 $ 2,801,270 $ 1,760,367 $ 1,210,814 $ 684,375
Retained earnings $ 5,725,059 $ 3,694,279 $ 2,607,846 $ 2,897,744 $ 4,301,519
Total equity $ 84,183,045 $ 74,469,133 $ 66,946,827 $ 61,331,231 $ 55,332,272

Total Liabilities and Equity $ 835,097,589 $ 772,076,276 $ 692,449,400 $ 645,704,201 $ 603,951,885

BPWCCUL Income Statements for the period FIVE YEARS FINANCIAL DATA
2013-2017
Expresed in thousands of Canadian Dollars 2017 2016 2015 2014 2013

Intrest income $ 60,467,367.94 $ 56,797,809.15 $ 51,380,807.29 $ 49,459,774.05 $ 46,956,842.82

intrest expense $ -21,204,691.70 $ -20,936,873.29 $ -19,793,004.28 $ -18,520,989.18 $ -18,058,660.04
$ - $ - $ - $ - $ -
Net Interest income $ 39,262,676.23 $ 35,860,935.86 $ 31,587,803.01 $ 30,938,784.87 $ 28,898,182.78
Other Income $ 3,557,795.14 $ 3,187,827.08 $ 2,368,014.15 $ 2,187,929.80 $ 2,559,895.84
$ - $ - $ - $ - $ -
Net interest and other income $ 42,820,471.38 $ 39,048,762.94 $ 33,955,817.16 $ 33,126,714.68 $ 31,458,078.62
Loan impairment expense $ -3,194,996.14 $ -2,695,949.99 $ -2,508,598.80 $ -2,983,510.00 $ -3,104,564.47
$ - $ - $ - $ - $ -
Net operating income $ 39,625,475.24 $ 36,352,812.95 $ 31,447,218.36 $ 30,143,204.68 $ 28,353,514.15
$ - $ - $ - $ - $ -
Staff Cost $ 11,737,392.89 $ 10,932,690.74 $ 9,291,411.03 $ 8,643,708.35 $ 7,642,038.50
Operating expenses $ 14,595,328.06 $ 12,822,135.52 $ 12,797,090.78 $ 12,520,392.29 $ 10,880,073.15
Depreciation $ 2,648,231.14 $ 2,580,904.65 $ 2,132,889.52 $ 1,775,057.82 $ 1,498,194.90
$ - $ - $ - $ - $ -
Total expenses $ 28,980,952.08 $ 26,335,730.91 $ 24,221,391.32 $ 22,939,158.47 $ 20,020,306.55
$ - $ - $ - $ - $ -
Income before levies and taxation $ 10,644,523.15 $ 10,017,082.04 $ 7,225,827.04 $ 7,204,046.21 $ 8,333,207.59
$ - $ - $ - $ - $ -
Tax on assets $ -462,385.64 $ -1,477,247.04 $ -1,018,423.71 $ - $ -
$ - $ - $ - $ - $ -
Income before taxation $ 10,182,137.51 $ 8,539,835.00 $ 620,459.34 $ - $ -
Taxation $ -53,971.78 $ -170,658.28 $ -86,171.63 $ -139,474.25 $ -203,847.91
$ - $ - $ - $ - $ -
Net income for the year $ 10,128,165.72 $ 8,369,176.72 $ 6,121,231.71 $ 7,064,571.97 $ 8,129,359.69
BARBADOS CREDIT UNION – WORKING
Effective Financial Structure 2013 2014 2015 2016 2017

Loans to members and accrued interest $ 491,787,211 $ 523,870,676 $ 575,239,075 $ 635,787,871 $ 697,881,206
Provision for loan impairment $ 3,104,565 $ 2,983,510 $ 2,508,599 $ 2,695,950 $ 3,194,996
Net Loans/Total Assets
Net loans $ 488,682,646 $ 520,887,166 $ 572,730,476 $ 633,091,921 $ 694,686,210
Total Assets $ 603,951,885 $ 645,704,201 $ 692,449,400 $ 772,076,276 $ 835,097,589
Net loans/Total Assets Net loans/Total Assets 81% 81% 83% 82% 83%

Held to maturity 10,398,036 $ 12,948,779 $ 16,404,323 $ 18,458,617 $ 18,117,067

Available for sale 1,297,945 $ 1,338,020 $ 1,290,851 $ 1,527,126 $ 1,901,698
Loans & recieveables 2,077,580 $ 2,019,919 $ 1,976,242 $ 2,254,367 $ 2,359,477
Financial Investments/Total Assets Total Investments 13,773,561 16,306,719 19,671,415 22,240,110 22,378,242

Total Assets $ 603,951,885 $ 645,704,201 $ 692,449,400 $ 772,076,276 $ 835,097,589

Financial Investments/Total Assets Financial Investments/Total Assets 2% 3% 3% 3% 3%

Savings Deposits/Total Assets

Savings Deposits $ 490,330,737 $ 532,697,267 $ 581,113,244 $ 658,479,870 $ 722,802,084
Savings Deposits/Total Assets Savings Deposits/Total Assets 81% 82% 84% 85% 87%

Member Shares $ 4,926,923 $ 5,231,589 $ 5,563,987 $ 5,972,570 $ 6,401,952

Member Share Capital
Total Assets $ 603,951,885 $ 633,183,121 $ 642,317,812 $ 734,187,789 $ 835,097,589

Member Share Capital/Total Assets Member Share Capital/Total Assets 0.82% 0.83% 0.87% 0.81% 0.77%

Total Equity $ 55,332,272 $ 61,331,231 $ 66,946,827 $ 74,469,133 $ 84,183,045

Member Shares $ 4,926,923 $ 5,231,589 $ 5,563,987 $ 5,972,570 $ 6,401,952
Institutional Capital/Total Assets Institutional Capital $ 50,405,349 $ 56,099,642 $ 61,382,840 $ 68,496,563 $ 77,781,093
Total Assets $ 603,951,885 $ 633,183,121 $ 642,317,812 $ 734,187,789 $ 835,097,589

Institutional Captial/Total Assets Institutional Capital/ Total Assets 8% 9% 10% 9% 9%

Loans Payable $ 47,283,416 40,610,826 33,035,944 26,037,273 14,172,531

Tax Payable $ 109,271 682475.049 51670 29938
Borrowed Funds/Total Assets Asset tax payable $ 18,618 26043 382793 155079
Total Assets 568,681,744 633,183,121 642,317,812 734,187,789 800,933,009

Borrowed Funds/Total Assets Borrowed Funds/Total Assets 8.34% 6.42% 5.25% 3.61% 1.79%
 Asset Quality & Rate of Return
Asset Quality 2013 2014 2015 2016 2017

Total Loan Impairment $ 3,104,565 $ 2,983,510 $ 2,508,599 $ 2,695,950 $ 3,194,996

Total Loan Delinquency/Gross Loan Portfolio
Gross Loan Portfolio $ 491,787,211 $ 523,870,676 $ 575,239,075 $ 635,787,871 $ 697,881,206
Total Loan Delinquency/Gross Loan Portfolio Total Loan Delinquency/Gross Loan Portfolio 0.63% 0.57% 0.44% 0.42% 0.46%

Rate of Return 2013 2014 2015 2016 2017

Interest income on member loans $ 28,898,182.78 $ 30,938,784.87 $ 31,587,803.01 $ 35,860,935.86 $ 39,262,676.23

Net Loan Income/Average Net Loan Portfolio

Net loan income $ 28,898,183 $ 30,938,785 $ 31,587,803 $ 35,860,936 $ 39,262,676
Gross loan $ 491,787,211 506,429,745 557,708,317 626,985,983 647,494,451
Net Loan Income/Average Net Loan Portfolio Net loan income/avg loan portfolio 6% 6% 6% 5.7% 6%

Total income $ 49,516,739 $ 51,647,703.86 $ 51,617,529.28 $ 59,985,636.23 $ 64,025,163.08

Total income/Total Assets Total Assets $ 603,951,885 $ 633,183,121 $ 642,317,812 $ 734,187,789 $ 835,097,589

Total Income/Total Assets Total Income/Total Assets 8.2% 8.2% 8.0% 8.2% 7.7%

Staff costs $ 7,642,038 $ 8,643,708 $ 9,291,411 $ 10,932,691 $ 11,737,393

Staff Costs/Total Income Total income $ 49,516,739 $ 51,647,703.86 $ 51,617,529.28 $ 59,985,636.23 $ 64,025,163.08

Staff costs/Total Income Staff costs/Total Income 15% 17% 18% 18% 18%

$ 28,353,514 $ 30,143,205 $ 31,447,218 $ 36,352,813 $ 39,625,475

Gross Income Margin/Total Assets Total Assets $ 603,951,885 $ 633,183,121 $ 642,317,812 $ 734,187,789 $ 835,097,589

5% 5% 5% 5% 5%

Total Expenses $ 20,020,307 $ 22,939,158 $ 24,221,391 $ 26,335,731 $ 28,980,952.08

Expenses/ Total Income Total Income $ 49,516,739 $ 51,647,703.86 $ 51,617,529.28 $ 59,985,636.23 $ 64,025,163.08

Expenses/Total Income Total Expenses/Income 40% 44% 47% 44% 45%

Total Operating Expenses $ 10,880,073 $ 12,520,392.29 $ 12,797,090.78 $ 12,822,136 $ 14,595,328

Total Operating Expenses/ Avg Total Assets
Total Assets $ 603,951,885 $ 633,183,121 $ 642,317,812 $ 734,187,789 $ 835,097,589
Total Operating Expenses/Avg Total Assets Total Operating Expenses/Avg Total Assets 2% 2% 2% 2% 2%

Other Income 2,559,896 $ 2,187,930 2,368,014 3,187,827 $ 3,557,795.14

Other Income/ Total Assets
Total Assets $ 603,951,885 $ 633,183,121 $ 642,317,812 $ 734,187,789 $ 835,097,589
Other Income/Total Assets
0.42% 0.35% 0.37% 0.43% 0.43%

Net Income $ 8,129,360 $ 7,064,572 $ 6,121,232 $ 8,369,176.72 $ 10,128,165.72

Net Income/ Total Assets (ROA) Total Assets $ 603,951,885 $ 633,183,121 $ 642,317,812 $ 734,187,789 $ 835,097,589
Net Income/ Total Assets (ROA) 1.3% 1.12% 0.95% 1.14% 1.21%
 Liquditiy 2013 2014 2015 2016 2017

Liquid Investments $ 74,556,151 $ 77,854,028.45 $ 69,057,425.12 $ 81,482,826.67 $ 74,504,496.80

L1- LiquidInvestment/ Total Savings
Total Savings $ 490,330,737 $ 532,697,267 $ 581,113,244 $ 658,479,870 $ 722,802,084

Liquid Investment/Total Savings 15% 15% 12% 12% 10%

Signs of Growth 2012 2013 2014 2015 2016 2017

Loans to members $ 475,988,184 $ 491,787,211 $ 523,870,676 $ 575,239,075 $ 635,787,871 $ 697,881,206

Growth in Loans to Members
Growth 15,799,027 32,083,465 51,368,399 60,548,796 62,093,335

Growth in Loans to Members 3% 7% 10% 11% 10%

Financial Invesment Balances $ 11,506,346 $ 13,773,561 $ 16,306,719 $ 19,671,415 $ 22,240,110 $ 22,378,242

Growth in Financial Investments
Growth
Growth in Financial Investments 20% 18% 21% 13% 1%

Savings deposits $ 467,213,932 $ 490,330,737 $ 532,697,267 $ 581,113,244 $ 658,479,870 $ 722,802,084

Growth in Savings Deposits
Growth 23,116,806 42,366,530 48,415,977 77,366,625 64,322,215

Growth in Savings Deposits 5% 9% 9% 13% 10%

Member Share Balances $ 4,694,100 $ 4,926,923 $ 5,231,589 $ 5,563,987 $ 5,972,570 $ 6,401,952

Growth In Memebrs Shares
Growth $ 232,823 $ 304,666 $ 332,398 $ 408,583 $ 429,382
Growth In Memebrs Shares 5% 6% 6% 7% 7%

Net institutional capital $ 56,099,642 $ 50,405,349 $ 56,099,642 $ 61,382,840 $ 68,496,563 $ 77,781,093

Growth in Net Institutional Capital
Growth -5,694,293 5,694,293 5,283,198 7,113,723 9,284,530

Growth in Net Instituational Capital -10% 11% 9% 12% 14%

Total Assets $ 575,319,332.76 $ 603,951,885 $ 633,183,121 $ 642,317,812 $ 734,187,789 $ 835,097,589

Growth 28,632,552 29,231,236 9,134,691 91,869,977 100,909,800

Growth In Total Assets
Growth in Total Assets 5% 5% 1% 14% 14%
MOUNTAIN VIEW – FINANCIAL STATEMENTS
Mountain View Balance Sheets for the
period FIVE YEARS FINANCIAL DATA
2013-2017
Expresed in Canadian Dollars 2013 2014 2015 2016 2017

Assets
Cash $ 2,789,801 $ 5,882,653 $ 3,394,120 $ 4,103,700 $ 5,075,749
Income tax receivable $ 140,093 - $ 7,774 $ 298,629 -
Investments and accrued interest $ 64,737,037 $ 94,654,788 $ 58,877,997 $ 78,696,417 $ 125,594,335
Investment in joint venture $ 10 $ 10 $ 110 $ 110 $ 110
Loans to members and accrued interest $ 475,733,940 $ 504,764,782 $ 556,369,344 $625,496,921 $ 645,999,658
Other assets $ 444,057 $ 680,821 $ 294,508 $ 246,222 $ 245,080
Derivative asset - $ 74,297 - $ 82,024 $ 189,304
Deferred tax asset $ 22,603 $ 184,337 $ 138,861 $ 41,638 -
Assets held for sale $ 869,996 $ 2,372,353 $ 1,664,629 $ 1,592,102 $ 1,348,786
Property and equipment $ 23,473,520 $ 24,179,549 $ 23,214,336 $ 23,366,875 $ 22,215,137
Intangibles $ 470,693 $ 389,531 $ 356,133 $ 263,151 $ 264,850
Total assets $ 568,681,744 $ 633,183,121 $ 642,317,812 $734,187,789 $ 800,933,009

Liabilities & Members' Equity

Income taxes payable - $ 78,264 - - $ 776,128
Securitization debt - - - $ 7,020,044 $ 6,644,639
Member deposits and accrued interest $ 520,506,613 $ 581,595,392 $ 588,761,974 $662,266,322 $ 715,497,125
Accounts payable and accrued liabilities $ 2,495,207 $ 3,584,370 $ 3,435,300 $ 3,715,346 $ 12,435,371
Derivative liabilities $ 37,837 $ 11,780 $ 447,094 $ 470,328 $ 34,133
Deferred tax liability - - - - $ 63,810
$ 523,039,657 $ 585,269,806 $ 592,633,368 $673,472,040 $ 735,451,206

Members' Equity
Allocation distributable $ 723,640 $ 774,500 $ 612,900 $ 652,000 $ 762,436
Member shares $ 22,686,923 $ 22,595,854 $ 22,917,174 $ 26,414,235 $ 27,543,964
Retained earnings $ 22,231,524 $ 24,542,961 $ 26,143,370 $ 33,649,514 $ 37,175,403
$ 45,642,087 $ 47,913,315 $ 49,673,444 $ 60,715,749 $ 65,481,803
Total Liabilities & Members' Equity $ 568,681,744 $ 633,183,121 $ 642,317,812 $734,187,789 $ 800,933,009
Mountain ViewIncome Statements for the
period FIVE YEARS FINANCIAL DATA
2013-2017
Expresed in thousands of Canadian Dollars 2013 2014 2015 2016 2017

Financial income
Interest on member loans $ 19,398,938 $ 20,135,622 $ 20,945,085 $ 21,989,296 $ 23,300,618
Interest on invesments $ 1,194,639 $ 744,416 $ 903,901 $ 644,698 $ 778,231
Net unrealized gain on derivatives - $ 71,475 - - -
Special patronage distribution $ 1,274,090 $ 274,888 $ 200,320 $ 225,569 $ 473,383
$ 21,867,667 $ 21,226,401 $ 22,049,306 $ 22,859,563 $ 24,552,232
Financial expense
Interest on member deposits $ 6,611,678 $ 6,632,393 $ 6,694,213 $ 6,068,659 $ 6,630,482
Interest on borrowings $ 7,558 $ 12,055 $ 4,031 $ 51,134 $ 109,918
Net unrealized expense on derivatives - - $ 598,677 $ 91,416 $ -414,463
Net expense on derivaties $ 3,222 - - - -
$ 6,622,458 $ 6,644,448 $ 7,296,921 $ 6,211,209 $ 6,325,937
Net interest income $ 15,245,209 $ 14,581,953 $ 14,752,385 $ 16,648,354 $ 18,226,295

(Provision for) recovery on loan impairment $ 135,404 $ -261,675 $ -125,278 $ -106,594 $ -205,816
Recovery (impairment) on held for sale assets $ -414,013 $ 251,868 - - -
(Loss) recovery on held for sale assets - - $ -352,916 $ -562 $ 2,194
Loss on disposal of property and equipment $ -321 $ -111,626 - - -
Service charges and other income $ 3,231,145 $ 3,458,201 $ 3,484,014 $ 3,629,965 $ 3,784,576
$ 18,197,424 $ 17,918,721 $ 18,464,035 $ 20,170,263 $ 21,802,861
Operating expenses
Employee salaries & benefits $ 8,043,108 $ 7,594,606 $ 8,004,017 $ 8,676,380 $ 8,473,862
Occupancy $ 487,244 $ 626,272 $ 759,009 $ 735,541 $ 797,355
Member security $ 828,390 $ 852,766 $ 1,026,168 $ 1,083,138 $ 708,108
Depreciation and amortization $ 757,537 $ 1,243,079 $ 1,446,282 $ 1,493,208 $ 1,584,413
Other operating and administrative $ 3,877,242 $ 3,857,996 $ 4,085,784 $ 4,127,217 $ 4,205,341
Organization $ 398,607 $ 335,615 $ 432,727 $ 352,315 $ 429,657
$ 14,392,128 $ 14,510,334 $ 15,753,987 $ 16,467,799 $ 16,198,736
Income before income taxes $ 3,805,296 $ 3,408,387 $ 2,710,048 $ 3,702,464 $ 5,604,125

Provision for income taxes

Current tax $ 477,398 $ 484,185 - - -
Deferred tax $ 171,157 $ -161,735 - - -
Provision for income taxes - - $ 496,739 $ 762,430 $ 1,315,800
$ 648,555 $ 322,450 $ 496,739 $ 762,430 $ 4,288,325
Total comprehensive income for the year $ 3,156,741 $ 3,085,937 $ 2,213,309 $ 2,940,034 $ 2,940,034
MOUNTAIN VIEW - WORKING
Protection Total assets 568,681,744 633,183,121 642,317,812 734,187,789 800,933,009

Total Liabilities 523,039,657 585,269,806 592,633,368 673,472,040 735,451,206

Net asset Value 45,642,087 47,913,315 49,684,444 60,715,749 65,481,803

Member shares 22,686,923 22,595,854 22,917,174 26,414,235 27,543,964

Solvency (Net Value of Assets/Total Shares and Deposits)
Member deposits and accrued interest 520,506,613 581,595,392 588,761,974 662,266,322 715,497,125
Total Shares & Deposits 543,193,536 604,191,246 611,679,148 688,680,557 743,041,089

2013 2014 2015 2016 2017

Solvency (Net Value of Assets/Total Shares & Deposits 8% 8% 8% 9% 9%

Effective Financial Structure 2013 2014 2015 2016 2017

Loans to members and accrued interest 475,733,940 504,764,782 556,369,344 625,496,921 645,999,658
Net Loans/Total Assets
Provision for loan impairment 135,404 -261,675 -125,278 -106,594 -205,816

Net loans 475,598,536 505,026,457 556,494,622 625,603,515 646,205,474

Net loans/Total Assets Net loans/Total Assets 84% 80% 87% 85% 81%

Savings Deposits/Total Assets Savings Deposits 520,506,613 581,595,392 588,761,974 662,266,322 715,497,125
Savings Deposits/Total Assets Savings Deposits/Total Assets 92% 92% 92% 90% 89%

Investments and accrued interes 99599704 64,737,037 94,654,788 58,877,997 78,696,417 125,594,335
Investment in joint venture 10 10 10 110 110 110
Financial Investments/Total Assets
Total Investments 99,599,714 64,737,047 94,654,798 58,878,107 78,696,527 125,594,445
Total Assets 568,681,744 633,183,121 642,317,812 734,187,789 800,933,009
Financial Investments/Total Assets Financial Investments/Total Assets 11% 15% 9% 11% 16%

Member Shares 22,686,923 22,595,854 22,917,174 26,414,235 27,543,964

Member Share Capital Total Assets 568,681,744 633,183,121 642,317,812 734,187,789 800,933,009

Member Share Capital/Total Assets Member Share Capital/Total Assets 4% 4% 4% 4% 3%

Total Equity 43,372,652 45,642,087 47,913,315 49,673,444 60,715,749 65,481,803

Member Shares 22,891,161 22,686,923 22,595,854 22,917,174 26,414,235 27,543,964
Institutional Capital/Total Assets Institutional Capital 20,481,491 22,955,164 25,317,461 26,756,270 34,301,514 37,937,839

Total Assets 568,681,744 633,183,121 642,317,812 734,187,789 800,933,009

Institutional Captial/Total Assets Institutional Capital/ Total Assets 4% 4% 4% 5% 5%

Accounts payable 2,495,207 3,584,370 3,435,300 3,715,346 12,435,371

Borrowed Funds/Total Assets
Total Assets 568,681,744 633,183,121 642,317,812 734,187,789 800,933,009

Borrowed Funds/Total Assets 0.44% 1% 1% 1% 2%

 Asset Quality 2013 2014 2015 2016 2017

Total Loan Impairment 135,404 2,015,111 1,399,334 478,879 401,620

Total Loan Delinquency/Gross Loan Portfolio
Gross Loan Portfolio 478,010,989 506,429,745 557,708,317 626,985,983 647,494,451

Total Loan Delinquency/Gross Loan Portfolio Total Loan Delinquency/Gross Loan Portfolio 0.03% 0.40% 0.25% 0.08% 0.06%

Rate of Return 2013 2014 2015 2016 2017

Interest income on member loans 19,398,938 20,135,622 20,945,085 21,989,296 23,300,618

Interest expense on member deposits 6,611,678 6,632,393 6,694,213 6,068,659 6,630,482
Net Loan Income/Average Net Loan Portfolio
Net loan income 12,787,260 13,503,229 14,250,872 15,920,637 16,670,136
Gross loan 478,010,989 506,429,745 557,708,317 626,985,983 647,494,451
Net Loan Income/Average Net Loan Portfolio Net loan income/avg loan portfolio 3% 3% 3% 3% 3%

Total income 21,867,667 21,226,401 22,049,306 22,859,563 24,552,232

Total income/Total Assets
Total Assets 568,681,744 633,183,121 642,317,812 734,187,789 800,933,009

Total Income/Total Assets Total Income/Total Assets 4% 3% 3% 3% 3%

Employee Benefits + Salaries 8,043,108 7,594,606 8,004,017 8,676,380 8,473,862

Operating + Administrative 3,877,242 3,857,996 4,085,784 4,127,217 4,205,341
Staff costs 11,920,350 11,452,602 12,089,801 12,803,597 12,679,203
Staff costs/Total Income

Total income 21,867,667 21,226,401 22,049,306 22,859,563 24,552,232

Staff costs/Total Income Staff Cost/Total Income 55% 54% 55% 56% 52%

Expenses $ 14,392,128 $ 14,510,334 $ 15,753,987 $ 16,467,799 $ 16,198,736

$ 6,622,458 $ 6,644,448 $ 7,296,921 $ 6,211,209 $ 6,325,937
Expenses/ Total Income Total Expenses $ 21,014,586 $ 21,154,782 $ 23,050,908 $ 22,679,008 $ 22,524,673

Total Income $ 21,867,667 $ 21,226,401 $ 22,049,306 $ 22,859,563 $ 24,552,232

Expenses/Total Income Total Expenses/Income 96% 100% 105% 99% 92%

Total Operating Expenses 14,392,128 14,510,334 15,753,987 16,467,799 16,198,736

Total Operating Expenses/ Avg Total Assets
Total Assets 568,681,744 633,183,121 642,317,812 734,187,789 800,933,009

Total Operating Expenses/ Avg Total Assets Total Operating Expenses/Avg Total Assets 3% 2% 2% 2% 2%

Other Income 3,231,145 3,458,201 3,484,014 3,629,965 3,784,576

Other Income/ Total Assets Total Assets 568,681,744 633,183,121 642,317,812 734,187,789 800,933,009

Other Income/Total Assets Other income/Total Assets 1% 1% 1% 0.5% 0.5%

Liquidity 2013 2014 2015 2016 2017

Liquid Investments 3659797 8255006 5058749 5695802 6424535

L1- LiquidInvestment/ Total Savings
Total Savings 520,506,613 581,595,392 588,761,974 662,266,322 715,497,125
Liquid Investments/ Total Savings 1% 1% 1% 1% 1%

Signs of Growth 2012 2013 2014 2015 2016 2017

Loans to members $ 441,882,739 $ 475,733,940 $ 504,764,782 $ 556,369,344 $ 625,496,921 $ 645,999,658

Growth $ 33,851,201 $ 29,030,842 $ 51,604,562 $ 69,127,577 $ 20,502,737

Growth in Loans to Members
Growth in Loans to Members 8% 6% 10% 12% 3%

$ 99,599,714.0 $ 64,737,047.0 $ 94,654,798.0 $ 58,878,107.0 $ 78,696,527.0 $ 125,594,445.0

Growth In Financial Investments
-35% 46% -38% 34% 60%
Growth in Financial Investments

Savings deposits $ 516,147,397 $ 520,506,613 $ 581,595,392 $ 588,761,974 $ 662,266,322 $ 715,497,125

Growth $ 4,359,216 $ 61,088,779 $ 7,166,582 $ 73,504,348 $ 53,230,803

Growth in Savings Deposits
Growth in Savings Deposits 1% 12% 1% 12% 8%

Member Shares Balance $ 22,891,161 $ 22,686,923 $ 22,595,854 $ 22,917,174 $ 26,414,235 $ 27,543,964

Growth In Member Shares
Growth $ -204,238 $ -91,069 $ 321,320 $ 3,497,061 $ 1,129,729
Growth In Member Shares -1% -0.4% 1% 15% 4%

Net institutional capital $ 20,481,491 $ 22,955,164 $ 25,317,461 $ 26,756,270 $ 34,301,514 $ 37,937,839

Growth $ 2,473,673 $ 2,362,297 $ 1,438,809 $ 7,545,244 $ 3,636,325

Growth in Net Instituational Capital
Growth in Net Instituational Capital 12% 10% 6% 28% 11%

Total Assets $ 563,604,562 $ 568,681,744 $ 633,183,121 $ 642,317,812 $ 734,187,789 $ 800,933,009

Growth $ 5,077,182 $ 64,501,377 $ 9,134,691 $ 91,869,977 $ 66,745,220

Growth in Total Assets
Growth in Total Assets 1% 11% 1% 14% 9%