2009 ANNUAL REPORT

message from the president & ceo

Bruce CookMember since 1990

Dear Fellow Members,

Our credit union was founded 65 years ago on the simple principle that together we are greater than the sum of our parts. In 2009, we faced one of the toughest recessions in recent history and I am proud to say that together, as a financial co-operative, we once again rose to the challenge.

Last year, we were all reminded what corporate greed can bring. The depth to which the resulting recession affected our members has not been seen in decades. In fact, as British Columbians, we experienced the highest level of job anxiety in the country. Through these difficult times, your credit union stayed committed to providing support to those in need. We did this through several unique initiatives:

To assist members who were finding it difficult to keep up with monthly bill 1. payments, we introduced the Helpful Hands Program. To lower monthly fees and improve convenience, we announced price reductions 2. and enhanced access to over 2,300 ATMs across Canada. While the banks tightened credit, we made sure that hardworking British 3. Columbians had immediate access to low-interest loans. And, even though our financial margin decreased due to historically low interest 4. rates, we decided to increase support for local community groups and charities by raising our yearly contribution to 8% of net earnings.

we didn’t stop thereTo help ensure that all our members continue to receive an exceptional level of service, we introduced an important new initiative called Member First. The concepts and goals of this program are not new to Community Savings. We have always taken pride in our commitment to personal service. Member First is Community

Savings’ formal commitment to a high standard of service and an avenue for you to provide feedback and suggestions. After all, you are the reason that we exist. You deserve a say in how your credit union functions.

welcoming new neighbours2009 was also the year in which we welcomed Operating Engineers Credit Union (OECU) members into our family. As a result of this merger, we were able to strengthen our union foothold by an astonishing 63%. This partnership enabled us to expand geographically, improve economies of scale, and harness the financial strength of hardworking members who share the same beliefs and values. With this merger we also gained three talented new Board members: Brian Cochrane, Gary Kroeker, and Lionel Railton. These new Directors have spent a large portion of their adult life helping British Columbians receive fair compensation, benefits, and respect from their employers.

better togetherThrough such co-operative efforts, we have once again proven that together we are greater than the sum of our parts. Moreover, the collective effort of our staff enabled us to exceed our goals, grow our membership, and put the credit union in a strong position going forward.

In the coming year, rest assured we will take the necessary measures to ensure that Community Savings maintains its financial stability, viability and productivity in a responsible manner. As a financial co-operative, we are entrusted with the task of financially empowering British Columbians who have been neglected by the big banks. That is why, in 2010, we will continue to focus on improving the financial strength of our members and the communities we serve, together.

Respectfully,

Bruce CookPresident & Chief Executive OfficerCommunity Savings Credit Union

Member First is both a promise and a commitment to provide outstanding service. This commitment to excellence is designed to encourage employees to continually improve service and exceed your expectations.

Through ongoing skill development, feedback, and continuous evaluation, the goal of this program is to deliver the highest standard of service to you, our member. Under Member First, employees are committed to a set of service standards which help ensure that you always receive the utmost care, courtesy, and respect.

To make sure that Member First continues to produce a high-standard of service, a new Director of Sales and Service position was created. This position is dedicated exclusively to ensuring that your experience is positive and rewarding.

As a member, you should expect to receive undivided and individual attention that is accompanied with a “glad to help you” attitude. Advice and solutions offered should always be in your best interest. Regardless of wealth or social standing, every Community Savings member deserves this level of service.

how are we doing?As a member and owner of this credit union, your feedback is crucial to maintaining our high level of service. We encourage you to provide regular feedback regarding your interactions with our staff. Were your needs addressed in a timely and professional manner? Was our staff knowledgeable? How can we improve? Please visit comsavings.com/memberfirst to let us know how we are doing.

Sometimes unplanned events or certain situations can reek havoc on your personal finances. At Community Savings, we are committed to helping you through difficult times. Our free Helpful Hands Program is designed to offer financial relief to anyone who is finding it hard to keep up with monthly bills.

As a co-operative financial institution, there are a number of solutions that we can tailor to your needs and unique situation:*

Postponement of loan payments •Postponement of service fees •Early redemption of non-redeemable term deposits •Consolidation of debt through a low-interest loan•Provide ongoing access to funds through a secured line of credit •Optimize your accounts to minimize fees•Extend amortization on your debt•Blend and extend your mortgage•

If you are currently experiencing a period of financial hardship, visit comsavings.com/helpfulhands or simply give us a call. Remember, as a member, you are not alone. We want you to start feeling good again about your finances.

NEWIN 2009

NEWIN 2009

*Some conditions and restrictions may apply. Please contact a branch for details.

financial review

$300,000,000

$2$25050 0,00000 0,00000

$200,000,000

$150,000,000

$100,000,000

$50,000,000 0,000

$0$0 20052005 20062006 2007200 2008 2009

2009 was one of the most challenging periods that the credit union has faced. Due to the economic recession, the Prime Rate dropped 250 basis points from 4.75% at September 2008 to a historic low of 2.25% at September 2009. These record low interest rates resulted in downward pressure on the credit union’s financial margin, which decreased 9.5%. However, by adapting quickly to these changes, not only did we survive this downturn, but we actually came out of it stronger than expected.

In April, Community Savings’ merger with Operating Engineers Credit Union helped increase cash resources by a staggering 68.3%. The strong liquidity position was used to accelerate our residential mortgage portfolio in the last half of the year. As a result, by the end of the fiscal year our total loans increased 14.2% which brought our liquidity ratio down to 21.4%. This loan portfolio expansion also helped ensure that Community Savings members were able to access low-interest loans to purchase a home, renovate, or simply get through these difficult times.

Our cost reduction initiatives and a prolonged drive to reduce extraordinary high liquidity, coupled with a quicker than expected housing turn-around, paid great dividends in the latter half of the year. The credit union’s net earnings came in at $745,775, which far exceeded our forecast.

We accomplished all of this without having to resort to branch closures or reduced staff levels. This is particularly impressive when you contrast our results with other financial institutions who divested entire divisions and laid off staff to reach their year-end results.

As we build our momentum with continued loan and deposit growth, this rebound in our financial performance is expected to continue well into 2010.

total loans

Expressed as a percentage over the previous year.

FIN. EXPENSE 22%

17%

10%

14%

22%

NET EARNINGS

FIN. MARGIN

TOTAL LOANS

5%RET. EARNINGS

9%EQUITY SHARES

TOTAL ASSETS

0

– +

24%TOTAL DEPOSITS

Community Savings Credit Union

The accompanying summarized balance sheet and statements of earnings and retained earnings and cash flows are derived from the complete financial statements of Community Savings Credit Union as at September 30, 2009 and for the year then ended on which we expressed an opinion without reservation in our report dated November 27, 2009. The fair summarization of the complete financial statements is the responsibility of management. Our responsibility, in accordance with the applicable Assurance Guideline of The Canadian Institute of Chartered Accountants, is to report on the summarized financial statements.

In our opinion, the accompanying financial statements fairly summarize, in all material respects, the related complete financial statements in accordance with the criteria described in the Guideline referred to above.

These summarized financial statements do not contain all the disclosures required by Canadian generally accepted accounting principles. Readers are cautioned that these statements may not be appropriate for their purposes. For more information on the credit union’s financial position, results of operations and cash flows, reference should be made to the related complete financial statements.

Vancouver, Canada GRANT THORNTON LLPNovember 27, 2009 Chartered Accountants

to the members of

Auditors’ Report on Summarized Financial Statements

summarized balance sheet

AssetsCash resourcesLoansInvestments and otherPremises and equipment

Liabilities and equityDepositsBorrowingsPayables and accruals

Members’equityEquity sharesContributed surplusRetained earnings

On Behalf of the Board

September 30th

$ 72,950,863284,833,819

2,104,028 1,962,675

$ 361,851,385

$ 340,830,341 -

1,944,685 342,775,026

1,680,527 2,851,000

14,544,83219,076,359

$ 361,851,385

2009

Colleen JordanBoard Chair

Phillip LeggDirector and Audit Committee Chair

2008

Community Savings Credit Union

$ 43,352,831249,514,613

1,633,074 2,086,190

$ 296,586,708

$ 274,852,679 5,000,530

1,398,537 281,251,746

1,535,905-

13,799,05715,334,962

$ 296,586,708

A full set of financial statements is available from Community Savings Credit Union

summarized statement of cash flows

Cash flows provided by (used in) Operating activitiesFinancing activitiesInvesting activities

Net increase (decrease) in cash resources Cash resources, beginning of year Cash resources, end of year

Year Ended September 30 2009 2008

Community Savings Credit Union

$ 1,140,69612,731,613

(38,753,007)

(24,880,698)

68,233,529

$ 43,352,831

$ 2,150,71360,520,264

(33,072,945)

29,598,032

43,352,831

$ 72,950,863

summarized statement of earnings and retained earnings

Financial incomeFinancial expenseFinancial marginRecovery (provision) for loan lossesOther incomeOperating marginOperating expensesEarnings before income taxesIncome taxesNet earningsRetained earnings, beginning of yearRetained earnings, end of year

Year Ended September 30

$ 12,809,8615,646,6537,163,208

279,537 2,419,356 9,862,101 8,981,274

880,827 135,052

745,775 13,799,057

$ 14,544,832

2009 2008

Community Savings Credit Union

$ 15,201,1367,283,1837,917,953

(207,739)2,118,4699,828,6838,700,9341,127,749

229,723 898,026

12,901,031$ 13,799,057

fond farewell to joy langan

Joy Langan1943 – 2009

This annual report is dedicated in loving memory of Joy Langan, a six-year board member who spent her life fighting for women’s rights and hardworking people. After a long battle with breast cancer she passed away on July 30th at the age of 66.

Joy served on Community Savings Board from 1994 to 2000. During the last two years of her term she served as Vice Chair. Although tiny in stature, Langan had a big spirit. She was full of energy and had a strong commitment to her principles.

In 1988, she was elected as an NDP MP for Mission-Coquitlam. She served as the NDP’s federal labour critic until 1993. As the first woman on the B.C. Federation of Labour’s executive council she paved the way for other women to follow in her footsteps. After leaving politics, Langan worked as a national representative for the Canadian Energy and Paperworkers’ Union — where she shifted her fight to helping seniors and retired union members. She also spent ten productive years as Director of Labour Participation for the United Way of the Lower Mainland.

Joy’s guidance, passion, and most of all friendship will be greatly missed. Her commitment to this credit union and civil equality will always be admired.

COMMUNITY BRANCHESBURNABY, NEW WESTMINSTER, PORT COQUITLAM

SURREY, VANCOUVER, VICTORIA

comsavings.com • 604-654-2000 • 1-888-963-2000