On March 31, 2020, the following letter was sent to all DUCA Members:
DUCA Announces 2019 Financial Results
Dear DUCA Members,
We would like to begin this letter thanking, on behalf of DUCA, all front-line essential service providers – health care workers and others, who are doing such important work during the challenging circumstances posed by the COVID-19 pandemic. We also wish to thank DUCA’s Employees, Leadership Team, Board of Directors, and our Branch and Member-Connect (call centre) Employees for their commitment in protecting the health and safety of Members, Employees, and Communities while continuing to provide service to our Members. We extend our well wishes to you, your families, and our fellow citizens for health and well-being during these unprecedented times and beyond.
DUCA's results for 2019 reflect the financial and operational strength of your Credit Union, and points to DUCA’s ability to effectively manage the current impacts of the COVID-19 pandemic and the ability to continue growth into the future. As such, we are pleased to announce the release of our audited financial statements for the year ended December 31, 2019 and the declaration of dividends.
Here are a few important highlights:
During the February 2020 meeting of the Board, your Board of Directors approved DUCA's audited financial statements for the year ended December 31, 2019. We reported comprehensive income for the year, net of income taxes of $12.03 million – an increase of $1.03 million or 9% over 2018.
Total assets increased by 20% to $4.1 billion, driven primarily by an increase in loan balances of nearly $500 million or 17% over the prior year, and deposits reached $3.0 billion – a 17% increase. These growth rates compare very favourably to results posted by Credit Unions and Caisse Populaires across Canada. In addition, in 2019, DUCA grew its Membership to nearly 75,000 Members.
In August of 2019, we launched our Class B Series 4 Investment Share campaign. As a result of the tremendous response from our Members, during 2019 DUCA raised $109 million of Class B, Series 4 Investment Shares. (The final tally at the close of the offering in February 2020 is $162.3 million!) Including the 2019 portion of the Investment Share raise, DUCA’s net income, dividends paid, and share redemptions, DUCA’s total Member’s equity increased to $292.2 million as of December 31, 2019 compared to 2018 of $175.4 million.
We are delighted by the results of the Investment Share Campaign and for our 2019 financial results. On behalf of the Board and all Employees, we thank you for your ongoing strong support and for being valued Members of DUCA.
DUCA’s Financial Statements for 2019 are posted here for your review.
Declaration of Dividends
The Board of Directors is pleased to declare a dividend of 3.50% on Class B Series 1 shares. This is an increase of 50 basis points over the minimum dividend rate specified at the time of the Series 1 Investment Share Offering. Payment of the dividends was made on March 1, 2020 based on a Member's Class B Series 1 share balance as of December 31, 2019.
Class A shares dividend of 2.00% was paid on March 1, 2020. Class A shares are accumulated by our Members based on the amount of interest earned or paid during the year.
We are delighted to report that over DUCA's history and including the current year's declaration, a total of $80 million of patronage, Class A and Class B dividends have been returned and/or paid to our Members.
As we look forward, your Credit Union has a strong capital and financial base, a focused strategy, a strong team of Employees and Board of Directors and a wonderful, growing Membership. These strengths will serve DUCA well in managing the unprecedented times posed by the COVID-19 pandemic in 2020 and will support our continued growth and development well into the future.
We are profoundly grateful for the continued support of our Members, proud of what your Credit Union achieved in 2019, and look forward with energy and optimism to our continued journey, pursuing our mighty purpose of helping People and Businesses Do more, Be more, and Achieve more!
Tom Vandeloo, Chair of the Board of Directors and Doug Conick, President and CEO
DUCA Financial Services Credit Union Ltd.