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A new approach to management at the Crossroads Credit Union was explained at the annual meeting held April 20 at the Rainbow Hall.
Called 鈥渕anagement by committee,鈥� it is an innovative management model that was approved by the board, explained Linda Osachoff, chief executive officer.
It became an opportune time to implement this model when merger talks with Churchbridge Credit Union ended in May, said George Stinka, board chairman. Before that decision was made, the two credit unions shared the CEO services of Perry Wishlow, but when merger talks ended, Wishlow decided to return to Churchbridge. Combined with the fact that Rick Kozanuik, the chief financial officer, had announced his retirement, the Crossroads board ceased upon the opportunity to try the new approach.
Osachoff, who had previously served as the interim CEO, was hired as the CEO and charged with the task of introducing management by committee, Stinka said. With Osachoff, the management team includes: Cindy Balaberda, manager of Corporate Services; Jeff Bisschop, manager of lending; Rhonda Fullawka, manager of finance; and Wendy Peterson, manager of deposits.
Under this new model, decisions are made with input from all areas of the organization, he said. 鈥淥ur board is extremely pleased with the success of this innovative approach.鈥�
鈥淚鈥檓 extremely proud of the way our management team rolled up their sleeves to make management by committee work so well for our credit union,鈥� Osachoff said. 鈥淭his new approach means that important decisions have input from all areas of the organization, while our managers gain valuable experience to prepare them for potential leadership roles in the future.
听听听听听听听听听听听 鈥淥ur collaborative approach extended to Crossroads鈥� strategic planning in 2015. For the first time, we involved staff in the process. They provided feedback on the strategic plans of the board and helped develop a three-year operational plan that focuses our work on the credit union鈥檚 strategic priorities. Staff now sit on strategic advisory committees and are participating in the revision of Crossroads鈥� mission, vision and values.鈥�
Industry evolving
听听听听听听听听听听听 The financial services industry is still evolving as a result of the worldwide financial crisis back in 2008, said Stinka. Regulators have introduced stricter standards in areas such as liquidity and capital adequacy.
听听听听听听听听听听听 Asset growth has always been a priority for Crossroads, but if not managed carefully, growth can negatively affect our ability to maintain appropriate levels of capital and liquidity
鈥淲e were successful with the delicate balancing act in 2015, exceeding all regulatory requirements, growing our capital reserves and maintaining liquidity at our target level,鈥� said Stinka. 鈥淲e were also able to strengthen our profitability by controlling costs and generating non-interest revenue.鈥�
It is because of this financial strength that allows Crossroads to give back to the communities served and the members, he said. 鈥淢ember support is the root of our success and the board rewarded members for their patronage by allocating $300,000 to member equity accounts.
鈥淲e also made significant investments in the communities we serve with $57,500 in sponsorships and donations throughout our region. To support the organizations that keep our communities strong, we forgave $22,740 in service charges for charitable groups and non-profits, and volunteered countless hours at community events,鈥� Stinka said.
Solid financial results
听听听听听听听听听听听 Osachoff said growth remained moderate in 2015, but Crossroads met all regulatory standards and strengthened its profitability.
听听听听听听听听听听听 Crossroads earned $1.4 million in income and posted a return on assets of 0.83 per cent, 鈥渨hich was well above our target. This result was supported by strong non-interest revenue and a concerted effort at lost control.
听听听听听听听听听听听 鈥淥ur assets grew just 2.9 per cent to $239.5 million in 2015,鈥� Osachoff said. 鈥淢ore moderate growth is likely to be the trend in coming years as we carefully manage our balance sheet to ensue we continue to meet regulatory standards and maintain profitability.鈥�
The credit union difference
听听听听听听听听听听听 At Crossroads, the term 鈥渢he credit union difference鈥� is often used to explain the commitment to community which make credit unions different from banks, Osachoff said. In 2015, Crossroads donated $14,000 to causes and organizations and also provided $2,500 in post-secondary scholarships; as well as forgiving $22,740 in service charges on accounts for charitable groups and non-profits.
听听听听听听听听听听听 鈥淲e invested an additional $43,500 through our Community Investment Fund 鈥� including two special $10,000 donations to support health care in our region,鈥� she said.
Service awards
Canora office
听听听听听听听听听听听 Five service awards were awarded to employees working out of Canora.
听听听听听听听听听听听 Gina Rakochy received a 25-year award.
听听听听听听听听听听听 Cathy Deighton and Jeff Bisschop received 15-year awards.
Cindy Balaberda received a $10-year award.
Director elections
The results of the board of director elections in the Canora district were announced at the annual meeting.
Terms expired for three directors in 2016: George Stinka and Rodney Petrychyn in the Canora district and Janet Cameron in the Sturgis district. Of the three, only Stinka was nominated for re-election. There were four persons running for the three positions.
The three successful candidates were: Arlette Bogucky, Betty Tomilin and Allan Wonsiak.
At the conclusion of the annual meeting, Stinka was recognized for all his contributions in various capacities at the credit union for the past 45 years.
