January 2009 AGM Meeting Minutes - Carpathia Credit Union

MINUTES
OF THE 70 TH ANNUAL MEETING OF CARPATHIA CREDIT UNION LIMITED HELD ON
MONDAY, JANUARY 26, 2009 AT THE CANAD INN, 2200 MCPHILLIPS STREET, WINNIPEG,
MANITOBA
1. Meeting Called to Order
The President of the Board of Directors, Dr. Mark Karpa, welcomed the members and
called the meeting to order at 7:30 p.m. Dr. Mark Karpa indicated that in December
Victoria Pestrak who was employed with Carpathia for more than 30 years passed away.
A moment of silence was observed in memory of Victoria Pestrak and for those members
who passed away this past year.
2. Opening Prayer
a) Father Eugene Maximiuk offered the opening prayer.
b) Dr. Mark Karpa introduced Mr. Roman Zubach, Vice President of the Board to
assume the chairmanship of the meeting. Mr. Roman Zubach welcomed all those
in attendance.
c) Mr. Roman Zubach introduced the special guests in attendance: Mr. Douglas
Einarson, BDO Dunwoody LLP, auditors, Mr. Andrew Ogaranko, Pitblado, Legal
Counsel, Mr. Garth Manness, CEO, Credit Union Central of Manitoba and Mrs.
Olha Zawerucha-Swuntuch, President, Council of Ukrainian Credit Unions of
Canada.
d) Mr. Roman Zubach announced the appointments of Natasha Hnydyuk (Ukrainian)
and Marion Wiebe (English) as Recording Secretaries of the meeting.
e) Mr. Roman Zubach asked Mr. Brian Petrynko to announce the total number of
members in attendance. According to the By-Laws, 50 members are required to be
present to form a quorum, and upon ascertaining there were 139 members present,
the Chair declared the meeting duly constituted.
Mr. Roman Zubach reminded Members that registration would close at 8:00 p.m.
f) Before proceeding with the meeting, the Chairperson reminded the Membership
that the Rules and Regulations governing the Annual General Meeting are
available at the at the registration tables.
The Chair reminded Members that registration would close at 8:00 p.m.
g) The Chair introduced those seated at the head table: Walter Kulyk (Director), Dr.
Taras Babick (Director), Noella Pylypowich (Director), Donna Korban (Director), Dr.
Mark Karpa, President, Board of Directors, Walter Dlugosh (CEO), Demyan
Hyworon, (Director), and Ken Bielak (Director), Marion Wiebe (English Secretary)
and Natasha Hnydyuk (Ukrainian Secretary). Mr. Bohdan Halkewycz, Director, was
unable to attend the meeting and sent his regrets.

Minutes of the 70 th Annual General Meeting of Carpathia Credit Union Limited held on January 26, 2009
3. Approval of Agenda
The Chair, Mr. Roman Zubach, indicated a revised agenda was distributed to all those
who registered and required approval of the agenda.
The Chair asked the members if there was any new business they would like to add to the
agenda. Since there was no new business to discuss the meeting will not recognize any
items not on the agenda.
MOTION by Mr. William Karabin SECONDED by Mr. Maurice Lakusta to approve the
revised agenda.
CARRIED
4. a) Minutes of the Last Annual Meeting
Mr. Roman Zubach requested a motion to approve the minutes of the January 21, 2008
Annual General Meeting be accepted as circulated.
MOTION by Mrs. Olga Michalchuk SECONDED by Mrs. Luba Huk that the minutes of the
Annual Meeting held on January 21, 2008 be accepted as circulated.
CARRIED
The full minutes of the last Annual General Meeting are available at Carpathia Credit
Union upon request.
b) Business Arising Out of Last Annual Meeting
There was no business arising from the last annual meeting held on January 21, 2008.
5. Reports
5.1 Board of Director’s Report
The Board of Director’s report was presented by Dr. Mark Karpa, President.
It’s my privilege and honour to present my report as your President on behalf of the
Board of Directors for the year ending September 30th, 2008. This marks the
completion of 69 years of service by Carpathia Credit Union to the Ukrainian
community in Manitoba, its members and its associate members.
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Minutes of the 70 th Annual General Meeting of Carpathia Credit Union Limited held on January 26, 2009
I am proud to report that this fiscal year has been one of Carpathia’s most
successful ever. Here are some of the impressive results:
2007-2008
fiscal year
15-year
historical
average
Asset growth up 10.9% under 5%
Result
The highest in the history of our
credit union.
Loan growth up 13.1% 7% Our second highest growth ever.
Deposit
growth
up 11.2% under 5½ % Again, our best growth ever.
Meanwhile, our Gross Operating Income (GOI) was $1.887 million – the third
highest in the history of Carpathia Credit Union. In fact, over the last three years,
Carpathia’s GOI has been the highest ever, equating to $6.0 million. All indications
are favourable for another successful year. The 2008-09 budget projects GOI of
$2.180 million.
Carpathia Credit Union’s percentage growth rates in assets, deposits and loans are
equal to or better when compared to other multi-branch urban credit unions in
Manitoba. In other categories, our loan delinquency rate is the lowest while our
liquidity, net of borrowing, is the highest percentage of any multi-branch urban
credit union.
These exceedingly successful financial results have enabled the Board of Directors
to approve a patronage pay-out allocation consisting of $73,000 in dividends which
will be included with redeemed existing surplus shares for a total of $790,000 (a
moderate increase over last year). An additional $464,000 will be paid out to
members in future years in the form of new surplus shares.
The financial service industry continues to become more challenging each year.
Amidst mergers and rising technology costs, Carpathia Credit Union’s on-going
objective is to remain competitive.
Carpathia is committed to being a closed bond credit union serving the needs of the
Ukrainian community in Manitoba. As we head into our 70 th anniversary year – a
major milestone! – we look forward to future challenges and opportunities that will
continue to enhance the growth of our credit union and its members.
Our financial success has been possible because of the commitment of the staff at
Carpathia Credit Union. On behalf of the Board of Directors, I thank our
management and the entire team for their continued dedication and hard work to
meet the evolving financial needs of our members.
I would especially like to thank our Chief Executive Officer, Mr. Walter Dlugosh.
Under his leadership, Carpathia has continued to meet its challenges head-on
while achieving record-breaking financial results.
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Minutes of the 70 th Annual General Meeting of Carpathia Credit Union Limited held on January 26, 2009
On a personal note, I am completing my third consecutive term as a board member.
I would like to thank all of the members entrusting me to represent them to the best
of my ability and for their on-going support. I’d like to thank the Board of Directors,
too, for their support and for their time and energy in serving our members. I would
also like to thank my wife, Shelley, for encouraging me to serve on the board for the
last 9 years and for her understanding in my commitment and the time I’ve had to
spend away from home. And, to my children, Orycia, Alexander and Adrianna. I
love you and thank you for your understanding.
Finally, I thank all of our members and associate members for their business,
loyalty and support which all contributes to the success and growth of Carpathia
Credit Union.
5.2 Chief Executive Officer
Mr. Walter Dlugosh, Chief Executive Officer, presented the Chief Executive
Officer’s Report.
It is an extreme honour and a privilege that I report to the Carpathia Credit Union
membership for the year ending September 30, 2008.
The year end results of the credit union reflected total loan growth of nearly $24 million.
Residential mortgages continued to grow at a rate of nearly 17% resulting in a net
increase of $15.6 million. Consumer term loans experienced the strongest growth in
the credit union’s lending portfolio with a net increase of $4.5 million or nearly 34% for
the year.
The assets of the credit union grew by over $23 million for the year or nearly 11%.
This level of growth was the highest ever recorded by the credit union. Further to this,
as at December 31 st , 2008, Carpathia Credit Union has grown in excess of $16 million
since September 30th and has surpassed the $250 million mark.
The year just completed also resulted in the highest ever deposit growth. Deposits
grew by over $22 million or 11%. All deposit categories experienced growth as
members were assured that the credit union would be competitive in the interest rates
that were being offered.
Total equity grew by 5% and is at $13.8 million. The credit union’s capital and liquidity
remain well in excess of regulatory guidelines.
Carpathia credit union welcomed nearly 500 new members and 144 associates in the
year. In terms of the associate status, which was introduced in 2003, Carpathia Credit
Union had 320 associates as at September 30, 2008. Associate loans outstanding as
at September 30, 2008 comprised over 9% of total loans outstanding, while associate
deposits were 1.65% of total deposits. Income earned from associates to the credit
union was equal to 7.1% of the total income earned by the credit union in 2008.
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Minutes of the 70 th Annual General Meeting of Carpathia Credit Union Limited held on January 26, 2009
The financial results for the year indicate that the financial margin remained unchanged
even after achieving 13% loan growth and 11% deposit growth. This was reflective of
the decreasing interest rate environment. Total Operating Expenses in 2008 increased
by 6.6% and were confined to 2 areas. Administrative expense increases were
centered on Advertising, Promotions, Sponsorships, and donations. More funds were
allocated towards a branding initiative to make the credit union better known in the
Winnipeg community as well as a strong promoter of Ukrainian events. Personnel
expense increases were the result of staff training & education along with salary
increases. The increase experienced in Other Income was primarily due to increases
in foreign exchange gains as a result of the membership’s activity in purchasing US
currency along with increases to commission revenue.
I would like to personally thank you our members who continue to support and remain
loyal to our credit union. I would also like to thank our Board of Directors for their efforts
and guidance. In particular I would like to thank Dr. Mark Karpa who will be retiring
from the Board of Directors this evening after serving Carpathia Credit Union and its
members for the last nine years.
Finally, I would like to thank the staff of Carpathia Credit Union for their commitment
and dedication in serving our members.
5.3 Auditors
The Chair, Mr. Roman Zubach, introduced Mr. Douglas Einarson the representative
of BDO Dunwoody, LLP. Mr. Douglas Einarson reported that the financial
statements of Carpathia Credit Union Limited present fairly, in all material respects,
the financial position of the Credit Union as at September 30, 2008. It was noted
that Mr. Douglas Einarson was available to answer any questions.
MOTION by Mr. Maurice Lakusta, SECONDED by Mr. Peter Kuryk that the reports
be accepted as circulated and presented.
CARRIED
6. Appointment of External Auditors
The Chair requested that Mrs. Donna Korban on behalf of Mr. Bohdan Halkewycz, Chair
of the Audit & Finance Committee, present a formal motion in regard to external auditors.
“BDO Dunwoody has been our auditor for the last two years. It is my pleasure to move
that BDO Dunwoody continue as our external auditors for the year ending September 30,
2009”.
MOTION by Mrs. Donna Korban to reappoint the firm of BDO Dunwoody LLP as external
auditors for the year ending September 30, 2009, SECONDED by Mr. Ron Moroz.
CARRIED
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Minutes of the 70 th Annual General Meeting of Carpathia Credit Union Limited held on January 26, 2009
7. Patronage Refund Announcement
Mr. Roman Zubach called upon the President, Dr. Mark Karpa and the CEO, Mr. Walter
Dlugosh to present a ceremonial cheque in the amount of $843,000 to the membership of
Carpathia Credit Union.
“It is with great pleasure that the Board of Directors of Carpathia Credit Union provides its
members the opportunity of participating in the success of our credit union.
Over the next few weeks Carpathia Credit Union members receiving $50 or more in
dividends and patronage refunds will be getting their annual cheques sent to them in the
mail. Members receiving less than $50 will have the funds deposited into their accounts.”
A symbolic cheque in the amount of $843,000 was presented by Dr. Mark Karpa and Mr.
Walter Dlugosh to the membership of Carpathia Credit Union Limited. The following
members were invited to the front Mrs. Yolanda Graham and Mr. Wayne Kochie.
8. Election of Officers
8.1 Board of Directors Election Results
The Chair of the Nominating Committee, Mr. Demyan Hyworon, informed the
members that after a diligent process of recruiting qualified candidates was
conducted and the following qualified candidates were selected:
1. Dr. George Chuchman
2. Noella Pylypowich
3. Bohdan Halkewycz (Unable to attend).
MOTION by Mr. Demyan Hyworon to accept the slate of Dr. George Chuchman,
Noella Pylypowich and Bohdan Halkewycz as presented SECONDED by Mr.
Richard Stefanec.
CARRIED
The Chair of the Nominating Committee presented the Nominating Committee
report.
“Тhe role of the Nominating Committee is an exteremely important one. The
Commitee reports to the Board of Directors and is responsible for the recruitment
of prospective candidates to the Board of Directors, ensuring that all candidates are
qualified and to present the slate of these candidates to the Board of Directors for
approval. Over the coming year, the Nominating Committee will meet on several
ocassions to recruit nominees for Board of Directors positions using various
methods of recruitment. The Nominating Committee for 2009 consists of Board
Members as well as: Mr. Don Cilinsky, Ms. Katrusia Basarab and Mr. Ihor
Michalchyshyn”.
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Minutes of the 70 th Annual General Meeting of Carpathia Credit Union Limited held on January 26, 2009
9. New Business
Resolution of Members for By-Law Amendments
The Chair introduced Dr. Taras Babick to present the resolution of members for By-law
amendments. Dr. Taras Babick indicated that Carpathia Credit Union is governed by
provincial By-Laws which must be consistent with the Act. The two By-Laws are: 1)
allows members to make amendments to the By-Laws and 2) that patronage refunds must
be equal to or greater than the rate fixed for Associates.
MOTION by Dr. Taras Babick SECONDED by Mrs. Halia Korban to accept the resolution
of members as presented in the registration package.
CARRIED
The motion was carried with two-thirds of a majority.
10. Greetings From Special Guests
The Chair introduced Mr. Garth Manness, Chief Executive Officer of Credit Union Central
of Manitoba and invited Mr. Manness to the podium. On behalf of Credit Union Central of
Manitoba, Mr. Garth Manness congratulated Carpathia Credit Union on their tremendous
success.
The Chair introduced Mrs. Olha Zawerucha-Swuntuch, President of the Council of
Ukrainian Credit Unions of Canada who extended sincere best wishes on the occasion of
Carpathia’s 70 th anniversary. The Ukrainian credit unions are working on creating a
stabilization fund and acknowledged the support of Mr. Bohdan Halkewycz in this
initiative. Mrs. Olha Zawerucha-Swuntuch also acknowledged the support of Mr. Demyan
Hyworon, Treasurer and Mr. Bohdan Halkewycz, representing the Council of Taras
Shevchenko.
11. Adjournment
The Annual Meeting was adjourned at 8:45 p.m. and was followed by a reception.
MOTION by Mrs. Luba Huk SECONDED by Mr. Maurice Lakusta to adjourn the 70th
Annual Meeting.
CARRIED
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Minutes of the 70 th Annual General Meeting of Carpathia Credit Union Limited held on January 26, 2009
Draw for ten $70 Door Prizes
1. Helen Krawchuk-Suchy 6. Joan Sikorsky
2. Patricia Babick 7. Joe Sobko
3. Hannya Klimenko 8. Mike Lepki
4. Taras Matwyczuk 9. Nadia Leskiw
5. Francis Semeniuk 10. Paul Ruta
The $250 cash grand prize was won by Mr. Wayne Kochie.
_______________________________
Roman Zubach
Chairman
_____________________________
Marion Wiebe
Recording Secretary (English)
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