First Heritage Co-operative Credit Union - Annual Report 2024
NOTICE OF ANNUAL GENERAL MEETING
Notice is hereby given that the 13th Annual General Meeting of First Heritage Co-operative Credit Union Limited will be held in a hybrid format on Monday, June 16, 2025 commencing at 2:00 p.m. at the SUMMIT (Formerly Knutsford Court Hotel) 16 Chelsea Avenue, Kingston 10 and via the Zoom platform to allow members to:
1. transact the ordinary business of the society; and
2. consider, and if thought fit, to approve a Resolution submitted by the Board of Directors in respect of amendments to the Rules of First Heritage Co-operative Credit Union Limited to make changes so that a longer time is afforded to the election process, as to allow for the selection of the best individuals to fill posts to carry out the Society’s business while ending Nominations from the floor.
Instructions for Attendance
Members attending physically or virtually are invited to register using the appropriately labelled link on our website https://www.fhccu.com/index.php/agm. Remote access will be facilitated on the Zoom platform and a limited number of members will be hosted in person at the SUMMIT. Once registered, you will receive your online meeting credentials.
Registration will commence on Friday, June 6, 2025 and will close on Thursday, June 12, 2025 at 11:59 p.m.
For more information on attendance, registration and the voting process, you may email us at info@fhccu.com, call our Member Contact Centre at 876-929-5142 or WhatsApp us at 876-5518193.
A copy of the full resolution and the 2024 Annual Report will be made available on our website at https://www.fhccu.com/index.php/agm.
Dated the 2nd day of June, 2025
Carian Freckleton-Cousins Secretary, Board of Directors
AGENDA
Ascertainment of Quorum
Call to Order and Prayer
Chairman’s Opening Remarks and Tributes
Reading and Confirmation of the Minutes of the 12th Annual General Meeting held on Monday, September 9, 2024
REPORTS:
Board of Directors
Greetings from the CEO
Management
Treasurer and Auditors
Supervisory Committee
Credit Committee
Resolutions
ELECTIONS:
Nominating Committee Report
Elections to:
Board of Directors
Supervisory Committee
Credit Committee
Any Other Business
Vote of Thanks
Termination
First Heritage Co-operative Credit Union Limited (FHC) was formed on August 1, 2012, from the merger of GSB Co-operative Credit Union Limited and Churches Co-operative Credit Union Limited. On March 1, 2015, the business and operations of St. Thomas Co-operative Credit Union Limited were transferred to FHC.
FHC’s bond includes:
a. All members of any religious bodies and affiliations in Jamaica and their families/relatives;
b. All Public Sector Employees, past and present, regardless of their terms of tenure, employed to Ministries/Departments/Agencies/Statutory Bodies/Public Corporations and their families/ relatives;
c. All Professionals, their families/relatives, their employees and their families/relatives;
d. All members of Professional Associations affiliated to the Public Sector, their families/ relatives and the employees of these Professional Associations and their families/relatives;
e. All Public Sector Consultants and their families/relatives;
f. All Public Sector Contractors and their families/relatives;
g. Employees, past and present, of the Credit Union and their families/relatives;
h. All Registered Co-operative Societies and members of these Societies;
PROFILE - FIRST HERITAGE CO-OPERATIVE CREDIT UNION LIMITED
PROFILE
i. All persons of good character of the age permitted by the Co-operative Societies Act; j. All members and persons eligible to be members of the Credit Union that have merged with this Credit Union, provided that any person is being admitted to membership has attained the age of eighteen (18) years.
The Credit Union has a membership base of approximately 200,000 members across a network of eleven (11) branches strategically located across the island; offering a suite of forty-four (44) products and services. Our extensive array of products and services include a variety of loans, savings, term deposits for both personal and business purposes. In addition, we have investment and pension options from our subsidiary, FHC Investments Limited (FHCIL).
Our products and services are specifically designed to meet the needs of members at every stage of their lives.
Micro and Small Business Financing
The Micro and Small Business Loan business line reflects an ongoing commitment on the part of the Credit Union to foster the growth of entrepreneurship in Jamaica as a major driver of the economy. It also reflects the decision of FHC to widen the scope of its services and diversify its product range in a structured manner to provide more specific and targeted entrepreneurial opportunities. This will serve to increase employment, the standard of living of borrowing members and also contribute to the GDP of the country.
The Micro and Small Business Unit was created in 2006. The Unit is a member of the Caribbean Micro Finance Alliance which acts as a catalyst for the development of micro finance in the Caribbean. The Unit was recognized worldwide as a finalist in the Caribbean Micro Finance Competition in 2012 for its impact in Jamaica. Currently, we have representatives located in Kingston, May Pen, Spanish Town and Mandeville.
Jamaicans have a rich entrepreneurial spirit and FHC is the home for financing these opportunities. The Credit Union’s commitment remains to generate continual benefits to our valued members and other stakeholders.
PROFILE - FIRST HERITAGE CO-OPERATIVE CREDIT UNION LIMITED
Subsidiary - FHC Investments Limited (FHCIL)
FHC Investments Limited (FHCIL), is a limited liability company and a wholly owned subsidiary of FHC, established to provide investment opportunities for members and non-members of the Credit Union. It is located at 20 Dominica Drive, Kingston 5. The company’s products and services may also be accessed through representatives at several FHC branch locations. FHCIL offers competitive rates of return and portfolio management services to its clients by a team of industry experts with over 30 years of combined experience.
FHCIL provides a suite of products and services to meet the needs of clients. These include:
• Stock Brokerage/Equities
• Bonds (local and foreign)
• Corporate Financing Structures
• Money Market Instruments
• Portfolio Management
• Investment Advisory
• Retirement Planning
The Investment company has products and services for the conservative investors as well as those with a greater risk appetite, some of which are offered in both foreign and local currency. FHCIL is also the Investment Manager and Administrator of the Credit Union’s Retirement Scheme.
Retirement Scheme
The FHC Retirement Scheme (formally Churches Co-operative Credit Union Retirement Scheme) referred to as “the Scheme” was established by Churches Co-operative Credit Union Limited as a defined contribution plan with effect from June 1, 2004, by Trust Deed to provide pension benefits for members and their beneficiaries at retirement and ancillary benefits in the event of death or termination. The strategic objective of the Scheme is to ensure that more Jamaicans have a retirement plan to which they are consistently contributing, thus safeguarding their retirement.
THE CREDIT UNION MOVEMENT LOGO
The “hands, family and globe” symbol, represents credit unions worldwide. This trademark represents credit unions in any language. The theme is universal and conveys the image of all credit unions.
THE GLOBE - This represents the international network of credit unions.
THE FOUR SILHOUETTES - This represents the family of mankind working for the mutual benefit of all.
THE HANDS -This represents the self-help nature of credit unions.
PRODUCTS & SERVICES
MINUTES OF THE 12TH ANNUAL GENERAL MEETING
MINUTES OF THE 12TH ANNUAL GENERAL MEETING OF FIRST HERITAGE CO-OPERATIVE CREDIT UNION LIMITED HELD HYBRID ON FRIDAY, SEPTEMBER 9, 2024 AT THE JAMAICA PEGASUS HOTEL, 81 KNUTSFORD BOULEVARD, KINGSTON 5
1. ASCERTAINMENT OF QUORUM AND CALL TO ORDER
A quorum having been attained, the Chairman, Mrs. Leodis Douglas, called the meeting to order at 2:15 p.m. and welcomed all to the 12th Annual General Meeting hosted via hybrid format, which she noted afforded members a greater level of flexibility to attend and participate in the meeting. She then invited the Board Secretary, Ms. Nickeisha Walsh to read the Notice convening the meeting.
She thereafter invited all to stand for the playing of the National Anthem.
2. PRAYER:
Mr. Andre Johnson led the meeting in prayer.
3. OPENING REMARKS, APOLOGIES AND TRIBUTES
The Chairman welcomed all attendees both in person and online. She then invited all to stand for a minute of silence in observance of the members who passed during the year under review.
The Chairman then extended a warm welcome to the following specially invited guests:
Mr. Errol Gallimore
Ms. Tenesha Grant
Ms. Nicola Scott
Mrs. Georgia Morrison
Ms. Sunita Tiwari
Ms. Vera Lindo
Mr. Bornette Donaldson
Department of Co-operatives and Friendly Societies
Department of Co-operatives and Friendly Societies
Department of Co-operatives and Friendly Societies
Apologies for absence were received on behalf of the following persons:
Mr. Errol Bailey Credit Committee Member
Mr. Richard Ranger Director
The Chairman then introduced the following Directors and Acting Chief Executive Officer:
Directors
Mr. Wayne Jones First Vice-Chairman
Mr. Cranston Ewan Treasurer
Ms. Nickeisha Walsh Board Secretary
Mrs. Camelle Ricketts-Moore Director
Mr. Stefan Richards Director
Executive Leadership
Mr. Quilston Harrison Acting Chief Executive Officer
She also introduced herself as the Chairman of the Board of Directors.
4. READING & CORRECTION OF THE MINUTES OF THE 11TH AGM
The Minutes were taken as read on a motion moved by Volunteer, Ms. Clivia Green, seconded by Member, Mr. Sydney Manhertz.
The Board Secretary directed the meeting’s attention to the Minutes commencing at page 14 through to page 35 and asked for corrections. Members online were informed that if they have any queries they should contact the meeting chat administrator at the WhatsApp number provided.
MINUTES OF THE 12TH ANNUAL GENERAL MEETING
Corrections:
Page 24, item 8 – Under the ‘Auditors’ Report’ section “and abridged” should read “an abridged”.
Page 31 – Under the “nominating Committee Report” section, “Stephan Richards” should read “Stefan Richards”.
There being no further corrections, the Minutes were confirmed on a motion moved by Volunteer, Mrs. Althea Daley, seconded by member, Mr. Ian Scarlet.
5. MATTERS ARISING FROM THE MINUTES OF THE 11TH AGM
Member, Mr. Michael Burke queried what had been done in relation to his suggestions relating to a Bed & Breakfast Programme in Trench Town and the Credit Union becoming a member of the Fishermen’s Co-operative which could generate employment among the members of the Co-operative as long as they save with the Credit Union; he added that these could generate income. The Chairman assured him that it was still under consideration, but no action had been taken in relation to the suggestions.
Member, Mr. A.N. Harris, Esq. indicated that at the last meeting held in September of 2023 the meeting was assured that the 2024 AGM would be held in May and asked if they had moved away from May meetings. The Chairman informed the meeting that the delay in 2023 was due to the delay in the audit exercise and the same challenge occurred for 2024. She however pointed out that this was not unique to FHC as other credit unions and organizations were experiencing the same issue with their audits. She assured the meeting that they had spoken to the auditors and expressed the hope that the audit would be completed to have a May meeting in 2025.
Member, Mr. Floyd Ebanks asked for an update as it related to the lengthy wait time in branches, which was attributed to challenges experienced in recruiting frontline team members. The Acting CEO, Mr. Harrison, stated that the problem still existed and the organization was looking at strategies to attract and retain employees. In addition, he stated that the concept of digital transformation was being pursued, the output from which would be leveraged to enable members to access banking services online.
MINUTES
Member, Ms. Norma Blake stated that she was a retiree and whenever she went to the Portmore branch she spent hours waiting as invariably it was just a teller and a cashier working and asked that management find a solution to the problem.
Member, Ms. Geraldine Wright added that the ATM at the Eureka Branch had not been working for a while and no provision had been made for additional staff, resulting in wait time extending up to two hours; she further noted that during that wait time there was no supervisor walking the floor to alleviate the long lines, and asked that the matter be dealt with urgently. The Chairman assured her that the points made on this issue were noted and would be dealt with.
Member, Mr. Floyd Ebanks in referencing Page 22, outlining that the risk management approach remained a strong part of the Credit Union’s culture, asked for an elaboration on the strategies being employed to manage the associated risks in light of the problems persons were experiencing with long wait time which could cause them to withdraw from the Credit Union. The Chairman assured him that they continue to put measures in place to mitigate against that risk. Acting CEO, Mr. Harrison undertook to speak with him after the meeting in light of the time constraint.
6. BOARD OF DIRECTORS’ REPORT:
The report was taken as read on a motion moved by Member, Ms. Jacqueline Gordon, seconded by Member, Ms. Jacqueline Hendricks.
The Chairman, acknowledged the presence of, and extended a warm welcome to Past Chairman, Mr. Balvin Vanriel and Immediate Past CEO, Ms. Roxann Linton.
She then highlighted the following:
For the year under review the Credit Union performed exceptionally, achieving the highest surplus ever realized in its history. The Chairman expressed gratitude to the Management Team for their invaluable contribution and asked that they stand and be recognized.
She further noted that since the recovery from the Covid-19 pandemic, there had been an uptick in the demand for products and services resulting in the Credit Union realizing the highest volume of loan disbursements for three consecutive months; highlighting that a focus was placed on deposit growth to bolster the organization’s liquidity position; and members were encouraged to continually increase their savings.
Mrs. Douglas reported that membership and business from new members increased, contributing to the Credit Union’s success. She extended gratitude to the members and assured them that the Credit Union would continue its commitment to keeping them at the centre of their decision making. For the year under review, the Credit Union reported a Net Surplus of $330.66 Million, compared to $184.25 Million achieved in 2022, while total assets grew to $18.98 Billion compared to $17.19 Billion the previous year reflecting increased member support.
Despite global economic challenges in relation to liquidity, the Credit Union maintained a strategic balance between lending and deposit-taking activities to ensure long-term sustainability.
The Board, Committees and the Leadership Team in reaffirming its commitment to achieving its 2040 Vision, developed a robust plan for 2023 to 2026 having delivered on the 2021 to 2023 plan over the past three years.
Technological solutions remained a critical part of the strategy to attract and retain young members and having established the Digital Transformation Roadmap, the team commenced preparation to aggressively execute on this activity. This will assist the Credit Union in exploring expansion into the diaspora market and enable a new level of accessibility to the Credit Union.
The Chairman provided a brief overview of the Jamaican economy, which continued to be on a positive trajectory. This positive economic performance combined with the government's strong commitment to prudent fiscal policies and debt reduction led to the upgrade of country's credit rating to a 'BB' status.
Mrs. Douglas reported that FHC’s subsidiary, FHC Investments Limited (FHCIL) recorded a 19.30% decline in Net Interest Income, due in part to the continued challenging macro-economic conditions, spurred by the ongoing war between Russia and Ukraine and characterized by rising inflation, increasing interest rates and the fair value losses on local stocks. It was shared that Net Loss before taxation ended 2023 at $44.26 Million compared to $38.82 Million reported for the same period in 2022; while Funds Under Management declined by 9.74% year over year to $3.1 Billion, which was attributable to the decline in profitability.
Membership in the FHC Retirement Scheme increased by 95 members compared to 92 the prior year while members’ contribution totalled $154.12 Million, which was a 0.72% decrease over the prior year. However, Net Assets Available for Benefits grew by 7.05% ending the year at $1.57 Billion. The Chairman assured the meeting that FHC Retirement Scheme remained a trusted and secured choice for its members’ future.
She further noted that strategic investment continued to be made in team members with the goal of fostering a high-performance culture conducive to delivering excellent service to the members.
Through the FHC Foundation $1.87 Million in scholarships was awarded spanning bursaries and grants, including a new sports scholarship. Additionally, Micro and Small Business Entrepreneur Grants totalling $1.5 Million were awarded to three recipients.
Looking ahead, the Chairman assured the meeting that despite the economic challenges envisaged to continue both locally and globally, FHC continued to position itself for sustainable growth over the long term by accelerating the build out of its Non-Interest Income streams. She noted that locally the inflationary pressures were trending down and the hike in the interest rates by the Central Bank had started to stabilize. Coupled with this, the Chairman indicated that the Board and Management Team would be working closely to chart a strategic course to drive the company forward, focusing on technological integration, heightened cyber security and member centricity.
Mrs. Douglas then advised the meeting that in April 2024, the organization experienced a system outage resulting in a loss of access to business by members for three days. The Board commended the
MINUTES OF THE 12TH ANNUAL GENERAL MEETING
swift and focused action of the Management Team and team members in restoring service. Thanks were extended to QNET and JCCUL for the assistance rendered to get the organisation back on track. The Chairman noted that steps had since been taken to identify optimal solutions to mitigate against any recurrence of this nature.
On behalf of the Board of Directors, the Chairman extended heartfelt gratitude to the Management Team for their visionary leadership which guided the organisation through the challenges of the past year. She also thanked the team members for their exceptional work in 2023, and the Board and Volunteers for their steadfast support and invaluable insights.
She informed the meeting that she, along with Directors Cranston and Francis would be retiring following the meeting and expressed gratitude for the support received during their tenure on the Board.
Comments & Questions
Member, Mr. Michael Burke extended congratulations to the Board for a good performance for the year. He shared that he had been a Credit Union member for 44 years and stated that the Credit Union Movement was too diplomatic and not as aggressive as they should be; he felt that the movement should make Jamaicans aware of its offerings through advertisements.
Member, Mr. Wilton South queried if members’ data was compromised in the recent cyber-attack and if so, how widespread it was and what measures had been put in place to minimize and prevent future attacks. The Chairman responded, indicating that no member’s account was impacted during the incident.
Member, Ms. Catherine Watson pointed out that the power point presentation speaking to the Net Assets Available For Benefits under the FHC Retirement Scheme showed $1.51 Billion while the Chairman stated in her presentation that it was $1.57 Billion and asked that this be clarified. The Chairman confirmed that correct figure was $1.57 Billion.
Member, Ms. Jacqueline Hendricks on behalf of the members of St. Thomas, thanked the Credit Union for the erection of the new branch which she noted added to the aesthetics of Morant Bay.
There being no further questions, the Board of Directors’ Report was adopted on a motion moved by Member, Ms. Latoya Anderson and seconded by Member, Mr. A.N. Harris Esq.
7. MANAGEMENT REPORT
The Management Report was taken as read on a motion moved by Member, Mr. Sydney Manhertz, seconded by Member, Ms. Suzette Grant.
The Report was presented by Mr. Quilston Harrison, Acting CEO. He extended a special welcome to the Board of Directors, Volunteers, Team Members, Members and specially invited guests. He apologised for the late hosting of the AGM and assured the meeting that all efforts would be made to host the AGM in May of 2025.
Mr. Harrison then highlighted the following achievements:
The year 2023, he noted, was an exceptional one in terms of performance where the Credit Union recorded the highest ever surplus and broke records repeatedly in respect of disbursements.
The Loan portfolio increased by 28.8% with disbursement totalling $6.7 Billion; and a surplus of $330.66 Million was recorded based on a strong revenue growth and adopting an effective cost management approach.
The Acting CEO shared that the organisation remained focused and continued to align with the strategies of the 2040 Vision placing emphasis on its ‘Member at the Centre’ mantra and despite the challenging economic environment, the Credit Union successfully strengthened its internal controls and deepened member relationships.
Mr. Harrison noted that the Credit Union made significant strides in enhancing member engagement resulting in a record loan disbursement. Several dormant members became active through a 9-month loan drive which brought in $500 Million.
MINUTES OF THE 12TH ANNUAL GENERAL MEETING
The Credit Union continued to focus on member engagement where several events were hosted to reward and support members, notably, the FHC Civil Servants of the Year Awards where three outstanding Civil Servants were awarded.
In addition to strengthening our partnership with the Jamaica Civil Service Association, partnerships were formed with private sector bodies to include Island Routes Enterprise Group, Sandals Group and Spectrum Insurance Brokers, aimed at providing service to their employees.
Credit Union Week, another staple event, was observed in October where several in-branch activities were carried out culminating with the International Credit Union Day event ‘Praise In The Park’ hosted by Jamaica Co-operative Credit Union League. Several Christmas events were hosted in December to include the ‘12 Days of Christmas’ initiative and ‘FHC Christmas Jolly Jubilee’ Lunch Hour Concert.
Mr. Harrison also noted that throughout the year several successful promotions were launched, to include the Summer and Christmas sales.
Past Due rate at the end of the year stood at 7.72% compared to 10.2% the previous year. The Acting CEO urged members facing financial challenges to talk to a representative so that a workable solution could be reached and avoid them becoming delinquent.
Mr. Harrison shared that throughout the year, team members were motivated and engaged through various programmes namely: 2-4-6 socials, E-learning activities to include Leadership and Member Service Coaching, Project Management, Sales and Lending. They also participated in workshops on Anti-Money Laundering, Counter Finance of Terrorism Compliance and Data Protection.
FHCIL performed exceptionally as it related to the Retirement Scheme, however the Credit Union’s Micro and Small Business Loan unit continued to face significant challenges; the Acting CEO indicated that strategies had been put in place to turn-around this area of the business.
The Acting CEO highlighted that FHC retained a strong risk management culture which contributed to the improvement in the Past Due Ratio. He further noted that the Credit Union was compliant with all its regulatory requirements.
In relation to the wait time in branches, Mr. Harrison informed the meeting that the Management Team had completed the Digital Transformation Roadmap and was in the process of developing a structured plan with a view that before the end of the year this would be launched. Integrating digital transformation, he noted, would facilitate increased access for members enabling them to do their business online and mitigate coming into the branch.
In closing, Mr. Harrison expressed appreciation to the Members, Team Members, Board of Directors and Volunteers for their continued support.
The floor was then opened for questions.
Member, Mr. Michael Burke congratulated the Management Team on the several achievements highlighted, but expressed disappointment that he was not made aware of the various Christmas events that were hosted by the organization. He also reminded the Management Team that not all persons, like himself who is in his 70’s, are technologically savvy so the traditional methods of advertising should also be utilized. Mr. Harrison responded stating that most of the events were advertised and assured the meeting that the Management Team would ensure that they utilize all the tools available in an effort to make members aware of the various events going forward.
In answer to a query as to why the AccessPlus Debit Mastercard was no longer issued to members at all branches, Mrs. Karlene Simpson, Assistant General Manager, Operations & Shared Services, explained that this was not the norm and up to April of 2024 cards were issued at all branches, however, since the cyber-attack, a hold was placed on the online connectivity for security purposes. She assured the meeting that by the end of September they should be reconnected to the switch where all branches would recommence issuing AccessPlus Debit Mastercards.
Member, Mr. A. N. Harris Esq. drew the meeting’s attention to Page 22 referencing that an offer was extended to members, where they could open accounts at FHC Investments Limited and benefit from a 50% reduction in both account opening and brokerage fees; he inquired whether the offer would be made available again before the end of the year. In response, Mr. Omoi Green, General Manager, FHC Investments Limited, explained that this 50% reduction was a limited time offer made available shortly after FHCIL received its stockbrokerage licence to facilitate a quicker uptick in business generated.
Member, Mr. Jevaughn Mowatt queried what was being done to encourage younger persons to become a part of the Credit Union as the lengthy wait time in branch was a deterrent, particularly when technological interventions could alleviate this challenge. Mr. Harrison responded that the digital transformation project he mentioned earlier would enable persons to conduct their business online, which would include account opening.
Member, Ms. Rubeana Prince questioned what accounted for the $44.26 Million loss reported for FHCIL. Mr. Green posited that there were a number of reasons for this, the main ones being the legacy securities purchased prior to the pandemic which had since fallen in price affecting the profitability of FHCIL and the fact that FHCIL was not earning enough income from the current lines of business. He however asked members not to confuse FHCIL’s losses with the performance of the Retirement Scheme which was excellent; the Scheme having made a return of 15% in 2023.
Member, Ms. Chesine McDonald pointed out that several younger members work online and receive foreign currency and asked if persons could receive these funds through FHC and what would be the fee. Mrs. Simpson stated that currently the Credit Union is unable to operate accounts in foreign currency but with the impending supervision of credit unions by the Bank of Jamaica, they would be able to offer accounts in foreign currency in the near future. She however pointed out that FHCIL, the investment arm of the Credit Union, offers multiple US dollar investment options and directed members who wish to save in US dollars to contact the Credit Union.
The Chairman asserted that the members over 65 years, were the bedrock of the Credit Union as they were the ones who contributed to the success of the Credit Union over the years, and advised them that for the second time a waiver of 50% had been put on the maintenance fee for the year for senior members.
There being no further questions the Management Report was approved on a motion moved by Member, Mrs. Lillian Lewis McDonald, and seconded by Member, Ms. Suzette Rowe.
8. AUDITORS’ REPORT
The Chairman invited Mr. Wilbert Spence, representing KPMG to present an abridged version of the Auditors’ Report.
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The Auditor, Mr. Wilbert Spence, presented the abridged Auditors’ Report which stated inter alia, that in their opinion proper accounting records had been maintained and that the financial statement, which accord those records, give the information required by the Co-operative Societies Act.
9. TREASURER’S REPORT
The Treasurer, Mr. Cranston Ewan, thanked Mr. Spence for taking the meeting through the Auditors’ Report.
The Treasurer’s Report having been previously circulated was taken as read on a motion moved by Volunteer, Mrs. Althea Daley, seconded by Member, Ms. Rubeana Prince.
The Treasurer highlighted the following:
Total Revenue stood at $2.45 Billion at the end of the year and a surplus of $330.66 Million was realized compared to $184.25 Million the previous year, the largest surplus ever realized by the Credit Union.
FHC Investments Limited (FHCIL) recorded a loss of $56.16 Million after taxes when compared to the prior year’s losses of $23.58 Million. He informed the meeting that a new General Manager, Mr. Omoi Green, had been appointed to lead the turnaround of FHCIL.
The Group’s Total Assets stood at $19.04 Billion at the end of 2023; while the Group’s Net Loan portfolio stood at $13.52 Billion at the end of the year.
Mr. Ewan directed the meeting’s attention to the 5-year trend in relation to Other Investments, Loans and Total Assets displayed on the screen, which he noted had consistently increased over the period.
Members’ deposits over the last 5 years, he reported, moved from $10.57 Billion in 2019 to $15.26 Billion in 2023.
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Interest Income increased by $322.26 Million or 16.65% ending the year at $2.56 Billion compared to $1.94 Billion the previous year.
Non-Interest Income increased by $39.84 Million or 25.6% ending the year at $195.02 Million compared to $155.18 Million the previous year.
Interest Expense moved from $242.03 Million in 2022 to $288.38 Million in 2023, while Operating Expenses increased by $192.42 Million or 13.23% comparative to the previous year.
Operating Expenses to Average Assets ratio ended the year at 9.15% compared to 8.69% in 2022.
Past Due loans (30 days and over) as a percentage of the Gross Loan portfolio stood at 7.72% versus 10.04% the prior year.
Provision for Loan Losses net of recoveries stood at $174.02 Million versus $198.75 Million the prior year.
Accumulated Surplus available for distribution moved to $351.32 Million up from $201.97 Million.
Revenue climbed to $2.45 Billion at the end of 2023, compared to $2.09 Billion the prior year.
Institutional Capital to Total Assets ratio stood at 10.61% as at December 31, 2023 compared to 10.77% the previous year.
The Treasurer shared that the Jamaica Co-operative Credit Union League Limited continued to monitor the Credit Union’s performance against the international credit union industry financial benchmark standards, while the BOJ continued to have oversight of the activities by reviewing the financial reports and conducting periodic audits.
The Credit Union’s performance, he stated, was commendable and the key prudential ratios such as Capital and Liquidity remained adequate and above the benchmark and that the Credit Union remained financially sound and strong.
He extended thanks to the Board of Directors, Volunteers, Leadership Team, Team Members and the Finance and Treasury department headed by Mr. Garfield Pearson and his team.
As the outgoing Treasurer, he extended special thanks to Mr. Pearson for the support given to him which made his sojourn as Treasurer extremely easy. He extended gratitude to the Auditors and the loyal members of the Credit Union.
Comments & Questions
Member, Mr. Floyd Ebanks congratulated the Credit Union for its remarkable performance where total comprehensive income for the year saw a movement of $475 Million amidst the carried forward deficit of $66 Million.
Member, Mr. Perryn Smith, while applauding the performance of the Credit Union, expressed disappointment that credit was not given to the former CEO, Ms. Roxann Linton, who had been a champion in the growth of the Credit Union. Mr. Ewan stated that she was recognized by the Chairman earlier; and commended Ms. Linton for the contribution she made during her tenure as CEO.
There being no further questions the Treasurer’s Report was approved on a motion moved Member, Mr. Derrick Coward, seconded by Member, Mr. Floyd Ebanks.
10. DISTRIBUTION OF SURPLUS
The Treasurer tabled the Distribution of Surplus as presented in the Annual Report outlining the proposed distribution of $351 Million for 2024 as follows:
Dividend on Permanent Shares
Special Donation to the FHC Foundation
$29 Million
$9.92 Million
$1.95 Million
$1.1 Million Transfer to Retained Earnings Reserve
Accumulated Surplus
$200 Million
$109 Million
This was approved on a motion moved by Member, Ms. Venecia Bennett, seconded by Volunteer, Ms. Shauna-Kaye Gordon.
11. MAXIMUM LIABILITY
In keeping with the rules of the Credit Union, it was proposed by the Treasurer that the Maximum Liability be fixed at 20 times that of its share capital.
This was approved on a motion moved by Member, Ms. Daphne Drysdale, seconded by Member, Mr. Earl White.
12. SUPERVISORY COMMITTEE REPORT
The Supervisory Committee Report which was presented by Volunteer, Mrs. Karlene Mitchell-Gordon, was taken as read on a motion moved by Member, Ms. Suzette Rowe and seconded by Member, Ms. Carol Malcolm.
Mrs. Mitchell-Gordon introduced the members of the Committee to include Ms. Shauna-Kaye Gordon, Ms. Carol Dallas, Ms. Tanisha Thompson, and Ms. Jaqueline Roberts.
She reported that, for 2023, there were four planned audits and two carried forward from 2022. The Committee completed all audits surpassing the target of 70%.
The reviews from audits carried out in relation to Branch and Operations Management, and the debit card process in relation to transaction alerts, revealed that they were not at the required level. While the review relating to cash revealed that this area required urgent attention. She noted that all three matters were addressed by the Management Team during the year.
In relation to the audits concerning Anti-Money Laundering (AML) and Counter Terrorism Financing (CFT), the review found that there was overall good AML/CFT compliance with Know Your Customer compliance being exceptional.
The review found that some standard operating procedures required clearer guidelines where ambiguity existed, and there were areas in the Bill Express payment and source of funds reporting that required strengthening. Mrs. Mitchell-Gordon noted that the Management Team gave its commitment to strengthening these areas and to review the standard operating procedures.
In relation to Loan and Security Management, it was found that there was general compliance with documentation and verification requirements as well as loan insurance, however exceptions were noted.
An important aspect of the loan recovery process had ceased following the core banking system conversion, which was being addressed by the Management Team.
The existing and new controls implemented in relation to the FHC Client Account Management were found to be effective. Where exceptions were noted, these were addressed during the audit, and for those not addressed, an action plan was put in place to correct them.
The two audits concerning the interest rate risk management carried forward from 2022, revealed that though the BOJ checklist required a standalone policy on Interest Rate Management which the Credit Union did not have, there were several policies in place that covered all the items on the BOJ Readiness Checklist.
The audit for the AML and CFT Compliance Review for 2022 found that there were no prohibited accounts. The exceptions noted were in respect of team members, volunteers and connected party documents.
There were 94 special investigations for 2023, 10 carried forward from 2022 and 84 for 2023. A completion rate of 84% was achieved.
As it concerned the Bank Reconciliation, the review found that reconciliations were done in a timely manner. A solution was agreed to with the external auditors to address issues experienced with reconciling discrepancies that arose from the implementation of the new core banking system. MINUTES
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There were five team members and four connected party accounts with loans over 30 days past due which had since been addressed by the Management Team.
Mrs. Mitchell-Gordon expressed gratitude to the Nominating Committee, the members of the Credit Union, the Management Team, the Internal Audit Department and the Board of Directors for the confidence reposed in the Supervisory Committee.
Comments & Questions
Mrs. Mitchell-Gordon was asked by Member, Mr. A.N. Harris Esq. what was being done to regularize the five team members whose accounts were delinquent; in response she indicated that these accounts had since been regularized.
Further, Member, Mr. A.N. Harris Esq. asked if “over 30 days” meant that they had gone beyond 30 days and was informed by Mrs. Mitchell-Gordon that delinquency would not be allowed to go beyond 30 days. Member, Mr. A.N. Harris Esq. stated that the statement ‘over 30 days’ was misleading and suggested that going forward it be structured in a way that there was no such ambiguity.
Mrs. Mitchell-Gordon thanked the outgoing Chair of the Supervisory Committee, Ms. Shauna-Kaye Gordon for the sterling contribution she made to the Supervisory Committee.
There being no further questions, the Supervisory Committee Report was accepted on a motion moved by Member, Ms. Venecia Bennett and seconded by Member, Ms. Christine Rowe.
13. CREDIT COMMITTEE REPORT
The Report was presented by Volunteer, Mrs. Althea Daley who deputized for the Chairman, Ms. Janyce Robinson. The Report was taken as read on a motion moved by Member, Mr. Derrick Coward, seconded by Member, Mr. Kevin Forbes.
Mrs. Daley noted that the Credit Union’s Loan portfolio performed creditably. The gross portfolio increased by 21.1% year over year moving from $11.73 Billion in 2022 to $14.21 Billon at the end of 2023.
Loan disbursement grew to $6.71 Billion compared to a budget of $5.36 Billion, a positive variance of $1.35 Billion.
Past Due rate reduced to 7.72% at the end of December 2023 compared to 10.04% at the end of 2022, an improvement of 2.32 percentage points.
The performance of the Micro Loans portfolio saw disbursement increasing from $230.25 Million in 2022 to $287 Million in 2023, an increase of $56.75 Million or 24.65%.
Past Due rate for the Micro Loans Portfolio decreased to 27.89% in 2023 compared to 38.8% in 2022, a reduction of 10.91%.
The Credit Committee reviewed 765 loan files for the year.
Mrs. Daley thanked the First Heritage team, the Board of Directors, the members for their support during the year.
She commended the FHC team on the strong performance for the year 2023, and encouraged members to seek assistance when faced with challenges as the Credit Union is always willing to offer support wherever possible.
There being no questions, the Report was accepted on a motion moved by Member, Ms. Jacqueline Hendricks, seconded by Member, Mr. Jevaughn Mowatt.
14. NOMINATING COMMITTEE REPORT
The Chairman presented the Nominating Committee Report which was taken as read on a motion moved by Volunteer, Ms. Shauna-Kaye Gordon, seconded by Volunteer, Mrs. Althea Daley.
Mrs. Douglas stated that the Committee was appointed in accordance with the provisions of Article XIV, Rule 59 of the Rules of First Heritage Co-operative Credit Union Limited and comprised of herself, as Board representative; Mr. Richard Picart, Member Representative and Mrs. Karlene Simpson, Staff MINUTES
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Representative.
She noted that the Committee met to consider all retiring volunteers from the Board of Directors, and the Supervisory and Credit Committees. The vacant positions, she stated, were advertised and candidates were assessed and the following recommendations made.
The following Board Members would be retiring:
Mrs. Leodis Douglas
Mr. Noel Francis
Mrs. Camelle Ricketts-Moore
Mr. Cranston Ewan
Mr. Wayne Jones
The Committee nominated the following persons who would serve for a term of 2 years:
Mr. Wayne Jones
Mrs. Camelle Ricketts-Moore
Mrs. Carian Freckleton Cousins
Mrs. Karla Stephens-Hall
Mr. Vencot Wright
Supervisory Committee:
The Chairman stated that 5 sitting members would be retiring and the Committee had renominated 3 members and nominated 2 new members to serve for a term of 1 year:
Ms. Tanisha Thompson
Mrs. Carol Dallas-Robinson
Mrs. Karlene Mitchell-Gordon
Mr. Dwayne Tabannah
Mr. Adjaynae Billings
Retiring were Ms. Shauna-Kaye Gordon and Ms. Jacqueline Roberts.
Credit Committee:
The Committee nominated 4 members to serve for a term of 2 years:
Mrs. Keslyn Gilbert-Stoney
Mr. Earl Bailey
Ms. Janyce Robinson
Mrs. Jacqueline Lloyd-Carter
Retiring was Ms. Clivia Green.
The Committee thanked all the retiring members for their commitment, support and contribution to the success of the Credit Union over the years.
The meeting was directed to view the profiles of the new recruits to the Board of Directors, Mrs. Karla Stephens-Hall, Mrs. Carian Freckleton Cousins and Mr. Vencot Wright; and for the Committees, Mr. Dwayne Tabannah and Mr. Adjaynae Billings.
15. ELECTIONS
The Chairman invited Mrs. Sheryll Grant from the Department of Co-operatives and Friendly Societies to conduct the election.
Mrs. Grant pointed out that a total of 210 members were present both in person and online and gave the ground rules as to how the election would be conducted.
Board of Directors
She noted that the nominees were Mr. Wayne Jones, Mrs. Camelle Ricketts-Moore, Mrs. Carian Freckleton-Cousins, Mrs. Karla Stephens-Hall and Mr. Vencot Wright. She then invited nominations from the floor. Mr. Balvin Vanriel nominated Mr. Kevin Forbes for the Board of Directors and gave a brief profile of Mr. Forbes. This was seconded by Member, Ms. Geraldine Wright.
Mrs. Grant stated that there were five vacancies and six nominees and so voting would be done by ballot for those in person and the poll would be used for attendees online. She gave instructions about the voting process to both online and in-person attendees and then asked that the ballot papers be issued.
MINUTES OF THE 12TH ANNUAL GENERAL MEETING
On a motion moved by Member, Mr. Derrick Coward, seconded by Member, Ms. Delma Roberts, the meeting granted permission for the election of the Supervisory and Credit Committee to continue while the ballots were being collected.
Member, Mr. Michael Burke moved a motion that the Supervisory and Credit Committee members be elected en bloc. This was seconded by Member, Mr. Gary Powell.
Supervisory Committee:
Mrs. Grant reiterated the names of the nominees for the Supervisory Committee and asked if there were any further nominations from the floor. Hearing none on a motion moved by Member, Mr. Michael Burke, seconded by Member, Mr. Derrick Coward, she declared Ms. Tanisha Thompson, Mrs. Carol Dallas-Robinson, Mrs. Karlene Mitchell-Gordon, Mr. Dwayne Tabannah and Mr. Adjaynae Billings duly elected to the Supervisory Committee for a term of one year.
Credit Committee:
Mrs. Grant invited nominations from the floor for the Credit Committee and hearing none, on a motion moved by Member, Ms. Jacqueline Hendricks, seconded by Member, Mr. Sydney Manhertz, she declared Mrs. Keslyn Gilbert-Stoney, Mr. Earl Bailey, Ms. Janyce Robinson and Mrs. Jacqueline Lloyd-Carter duly elected to the Credit Committee for a term of two years.
On a motion moved by Member, Ms. Winsome Fearon, seconded by Member, Mr. Michael Burke, the Standing Order was suspended to accommodate Any Other Business while the ballots were being counted.
16. ANY OTHER BUSINESS
Member, Mr. A.N. Harris Esq. suggested that with respect to the Attendance Register showing the attendance of the various committee members and the Board, that a column be added indicating ‘absence’.
He stated that though an abridged version of the Supervisory Committee Report was provided, the Supervisory Committee being the watchdog for the Credit Union, going forward the full report be made available to the members as it was a very crucial report.
He further expressed disappointment that the Attendance Register was requested by him and by the time it was placed on the monitor 90% of the ballot papers were collected, and asked that the Attendance Register, going forward, form part of the full report.
Member, Mr. Perryn Smith asked what the timeline was for appointing a new CEO. The Chairman stated that with the new administration in place, the timeline set was the 31st of December, 2024. Mr. Smith suggested that the date be revised to a more realistic date since the recruitment process had not commenced.
Further he asked the Board and Management Team to look into the challenges surrounding making direct deposits from other institutions to member’s FHC accounts as it was time consuming for members to come to the Credit Union to make a deposit to their account.
The Registrar, Mr. Errol Gallimore, congratulated the Chairman, the two Directors retiring and Ms. Roxann Linton, the former CEO, for the support they had given to his office with their quick response to issues and complying with the regulatory standards and guidelines issued by his office during their tenure.
He directed the incoming Board of Directors to ensure that when they are having Zoom meetings, the members and regulators sitting in the audience are able to view the meeting to see what is happening and this not be left to the technical team as sometimes the technical teams, in some credit unions, are also members of the Credit Union and this would conflate the voting.
Additionally, Mr. Gallimore asked that going forward the full reports be provided to the meeting attendees. He thanked the meeting and the Board for the commitment and services provided to the Credit Union over the years.
Member, Ms. Charmaine McCalla congratulated the Credit Union for an excellent performance and noted that members in the audience were pleased as she did not hear the usual mumbling and quarrelling when reports were presented. MINUTES
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She thanked former CEO, Ms. Roxann Linton for her service and team member, Mrs. Jacqueline Pinque-Smith for always accommodating her; and all the team members across the branches for their assistance.
Member, Mr. Sydney Manhertz from St. Thomas thanked the Board of Directors for investing in the parish by erecting the building which houses the St. Thomas Branch. He asked that more be invested in the area of alternate energy and the installation of a couple ATM machines, and that they ramp up the recruiting process as there were a lot of self-employed persons in the parish.
He asked the Management Team to continue to give support to the staff and resources for them to carry out their mandate.
Member, Mr. Carvel Banton noted that a lot of young persons were being employed by the Government and urged the Credit Union to institute a programme targeting these young persons.
Member, Ms. Suzette Grant stated that the Credit Union needed to ramp up its online operation to attract young people as she lost four potential members because of the tedious task of signing up.
At this juncture Ms. Michelle Tracey and her team were invited to take the meeting through the prize giving exercise.
Following the prizes and giveaways segment, the Registrar, Mr. Gallimore was invited to present the results for the Board of Directors election.
He outlined that Mr. Wayne Jones received 128 votes, Mrs. Carian Freckleton-Cousins 111 votes, Mrs. Karla Stephens-Hall 127 votes, Mr. Vencot Wright 104 votes, Mrs. Camelle Ricketts-Moore 114 votes and Mr. Kevin Forbes 133 votes. He thereafter declared Mr. Jones, Mrs. Freckleton Cousins, Mrs. Stephens-Hall, Mrs. Ricketts-Moore and Mr. Forbes duly elected to the Board of Directors for a term of 2 years.
The Chairman asked the incoming Board to stand in front of the meeting and be recognized.
17. VOTE OF THANKS
The Board Secretary Ms. Nickeisha Walsh was asked to move the vote of thanks.
She extended thanks to the following persons:
The Chairman for ably leading the meeting and the three outgoing Directors to include the Chairman, Mrs. Douglas, Mr. Ewan and Mr. Francis for their sterling and invaluable contribution to the Credit Union and the Board of Directors, and their instrumental leadership in guiding the Credit Union to success.
The outgoing Committee Members Ms. Shauna-Kaye Gordon, Ms. Clivia Green and Ms. Jacqueline Roberts for their invaluable contribution to the Credit Union.
The Jamaica Co-operative Credit Union League, the Department of Co-operatives and Friendly Societies, CUNA Insurance, KPMG for their continued service.
The returning Directors for their unwavering commitment and efforts over the past year; and she welcomed the new Directors and wished for them a successful tenure.
Mr. Quilston Harrison, Acting CEO and former CEO, Ms. Roxann Linton for their service and dedication to the Credit Union. She asked the Executive Management Team and staff to stand and be recognized for their hard work and steadfast dedication which had contributed to the success of the Credit Union.
Krystal Clear Productions team for the media setup and facilities both in-house and online; the Jamaica Pegasus for their hospitality; and to the Marketing Team for executing another successful AGM.
The invaluable members for their continued trust, support and business.
In closing, she expressed confidence that the goals set for 2025 would be achieved if they all continue MINUTES
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to work with the same unity and purpose, as aptly expressed by Henry Ford that “Coming together is the beginning, keeping together is progress but working together, that is the success”
18. TERMINATION:
The Chairman terminated the meeting at 7:05 p.m.
Carian
Freckleton-
Cousins Secretary, Board of Directors
CORPORATE GOVERNANCE STATEMENT
First Heritage Co-operative Credit Union Limited (FHC) prioritizes effective corporate governance to ensure the safe growth of our co-operative and to protect the interests of our valued members. We recognize that good corporate governance is fundamental to maintaining the trust and confidence of our members, team members, and stakeholders, and for safeguarding the financial well-being of our Credit Union.
Our corporate governance framework is guided by the following principles:
1. Strong Board Oversight: Our Board of Directors is composed of highly experienced individuals who provide governance oversight using their diverse skills and expertise. The Board provides strategic direction and oversight, ensuring that FHC’s activities are in line with our vision, mission and values. Board members act in the best interests of our members and diligently exercise their fiduciary duties to safeguard our members’ financial interests. Our Board has established various committees, including a Supervisory Committee, Credit Committee, Corporate Governance Committee and an Audit and Risk Management Committee , among others, to provide specialized oversight and ensure that specific areas of governance are addressed in depth. These committees are composed of independent directors and volunteers and are responsible for providing recommendations and guidance to the Board.
2. Culture: Our Board of Directors and Management Team set the tone at the top of this organization by exemplifying the highest standards of integrity, transparency and accountability. This unwavering commitment to ethical conduct inspires our team members to uphold the principles of integrity, honesty, and professionalism in their dealings with members, colleagues, and stakeholders. Through regular communication and by leading by example, we create a corporate culture that fosters a sense of responsibility and respect for protecting our members’ resources.
3. Risk Management: We have robust risk management practices in place to identify, assess, and mitigate risks that may impact our Credit Union’s safety and soundness. These practices are regularly reviewed and updated to align with changing market conditions, technological developments, industry best practices, and regulatory requirements. We place a high emphasis on maintaining adequate capital levels, managing credit risk, liquidity risk, operational risk, and cybersecurity risk, among others.
4. Internal Controls: We have instituted effective internal control mechanisms to safeguard the accuracy and integrity of our financial reporting, as well as the effectiveness and efficiency of our operations. We conduct regular internal audits and risk assessments to identify and address any control weaknesses and ensure compliance with policies and procedures.
5. Compliant Posture: We are committed to compliance with all applicable laws, regulations, and industry standards. We maintain strong relationships with regulatory authorities and proactively address any compliance or legal matters that may arise. We also have a comprehensive compliance program in place to ensure strict adherence to Anti-Money Laundering (AML) Regulations and other relevant laws.
6. Continuous Improvement: We are committed to continuous improvement and regularly review and update our corporate governance practices to ensure that they remain effective and aligned with our Credit Union’s strategic objectives, member needs and regulatory requirements. We welcome feedback from our members, employees, and stakeholders and use it as an opportunity to learn, adapt, and improve our governance practices.
7. Member-Centric Approach: Our Credit Union exists to serve our members, and their best interests are at the forefront of our decision-making processes. We believe that member engagement is critical to understanding their needs, expectations and concerns, and we strive to align our strategies and operations accordingly.
In conclusion, at FHC, we are dedicated to maintaining the highest standards of corporate governance to ensure the safe and sound growth of our Credit Union and to protect the interests of our members and all other stakeholders.
Mrs. Ricketts-Moore is the Managing Director of Sangster’s Book Stores Limited. She has over 26 years’ working experience in the field of internal auditing, accounting and business operations. Her expertise includes governance, audit, risk management and controls, strategic planning and execution.
Mrs. Ricketts-Moore is a Chartered Accountant and holds a Master’s in Business Administration from the Manchester School of Business. She is also a Certified Information System Auditor (CISA) and a Certified Internal Auditor (CIA).
At First Heritage Co-operative Credit Union Limited, she serves as Chairman of the Board of Directors and has been a Director since 2022. She previously volunteered in the capacity of Chairman of the IT Steering Committee (2023-2024), Chairman of Audit & Risk Management Committee (2023-2024) and as Chairman and Secretary of the Supervisory Committee between 2016 and 2021. Presently, Mrs. Ricketts-Moore also serves as a member of the Board of Directors of FHC Investments Limited.
PROFILE OF BOARD OF DIRECTORS
Mr. Jones currently holds the post of Deputy Financial Secretary in the Ministry of Finance and Public Service and is in charge of Strategic Human Resource Management. Mr. Jones is an accomplished Human Resource Practitioner with over thirty-five years’ of experience in the field of Industrial Relations and Employment Management. He is a graduate of the University of the West Indies, City & Guild Institute of London, and a certified Change Management Specialist.
Mr. Jones is the former President of the Jamaica Civil Service Association (JCSA) and General Secretary of the Jamaica Confederation of Trade Unions (JCTU). At the regional and international levels, he held the presidency of the Caribbean Public Services Association and sat on the Executive Board of Public Services International as representative of the InterAmericas Region. He is also the recipient of an Order of Distinction by the Jamaican Government.
Mr. Ranger is a Chartered Accountant, a member of the Association of Chartered Certified Accountants (ACCA) in the United Kingdom and a member of the Institute of Chartered Accountants of Jamaica (ICAJ). He has over fifteen years’ of experience in external and internal auditing, accounting and business operations. Mr. Ranger has worked with PricewaterhouseCoopers, Boldeck Jamaica Limited and the Neal and Massy Group, specializing in audit and assurance, accounting and income tax services.
He is presently the Principal of Ranger and Associates, a local audit and accounting firm and he previously served as a volunteer in the capacity of a member of the Credit Committee.
PROFILE OF BOARD OF DIRECTORS
Ms. Walsh is currently the Executive Director of the Students’ Loan Bureau. She is a qualified Accountant, a Fellow with the Institute of Chartered Accountants of Jamaica and a member of The Association of Chartered Certified Accountants (ACCA).
Ms. Walsh possesses over 15 years of accounting and finance experience and has performed assignments within various government sectors. Her expertise includes accounting, finance, management consulting, human resource management, strategic planning and leadership.
Mr. Forbes is currently employed to Look Beyond Limited as a Financial Controller. He previously served as Financial Manager at Cable & Wireless Limited, Financial Controller at Allied Insurance Brokers Limited, and has worked in various management capacities within the Grace Kennedy Company Limited as well as Ernst & Young Caribbean.
He holds a Masters of Business Administration in Finance from the Manchester Business School, United Kingdom, is a Fellow of the Association of Chartered Certified Accountants as well as a member of the Institute of Chartered Accountants of Jamaica.
The Honourable Mr. Justice Evan Brown, Judge of Appeal, is a highly accomplished legal professional with a distinguished career in the Jamaican legal system. In 2010 he was appointed to act as a Puisne Judge, a role he held until 2012. He rose through the ranks within the judiciary and was elevated to the post of Judge of Appeal in 2022.
With over three decades of legal experience, the Honourable Justice of Appeal has presided over numerous cases, demonstrating a commitment to the principles of justice and fairness. His extensive legal knowledge and expertise makes him a highly respected member of the Jamaican legal community and his appointment to the Court of Appeal is testament to his dedication and hard work.
PROFILE OF BOARD OF DIRECTORS
Mrs. Freckleton-Cousins is a legal practitioner with a decade of experience as an Attorney-at-Law. She previously held the position of Corporate Secretary/ Legal Counsel of First Heritage Co-operative Credit Union Limited. She is the Head of Department of Legal Counsel at Kingston Freeport Terminal Limited and possesses a wealth of knowledge in corporate and commercial law.
She is the holder of a Bachelor of Law Degree, Legal Education Certificate and a LLM in Corporate and Commercial Law.
PROFILE OF BOARD OF DIRECTORS
Mrs. Stephens-Hall possesses over 24 years of experience in Audit and Accounting that spans over multiple and jurisdiction in the Caribbean and North America. She is currently employed at RJR Gleaner Communications Group Limited as the Chief Financial Officer. She previously held the position of Chairman of the Supervisory Committee of First Heritage Co-operative Credit Union.
She previously served as Chief Financial Officer for Progressive Grocers of Jamaica Limited as well Financial Controller at Massy Technologies InfoCom Jamaica Limited where she fulfilled the function of a Board Secretary and has worked in various management capacities within the financial sector.
Mrs. Stephens-Hall also serves on the Government Audit Commission.
She holds a Bachelor of Science in Accounting and Economics, Master of Business Administration from the University of East London, is a Certified Risk Management professional, she is a Fellow of the Association of Chartered Certified Accountants as well as a member of the Institute of Certified Internal Auditors.
Mr. Nooks is an experienced Information Security and Data Protection Specialist dedicated to helping organizations safeguard their data privacy against both known and emerging cyber threats. With over 30 years in the information and communication technology industry - 18 of which have been focused on information security assurance and
PROFILE OF BOARD OF DIRECTORS
advisory, he has established himself as a thought leader in the field. His expertise spans data privacy, cybersecurity governance, web and mobile application security, and information protection.
As a Director at Symptai, a leading information security assurance and advisory firm, Mr. Nooks is responsible for driving efficiency, growth, and innovation. He also provides strategic advisory services, including staff recruitment and solution selection, to help businesses strengthen their cybersecurity posture. In addition, he is the lead instructor for Symptai’s International Association of Privacy Professionals (IAPP) training programs, which cover certifications such as Certified Information Privacy Technologist (CIPT), Certified Information Privacy Manager (CIPM), and Certified Information Privacy Professional (Europe) – CIPP/e.
BOARD OF DIRECTORS’ REPORT
First Heritage Co-operative Credit Union Limited (FHC) demonstrated resilience and excellence throughout 2024; the organization skillfully navigated macroeconomic challenges to achieve notable successes. Amid mounting challenges, the FHC team translated adversity into action and where possible acted on opportunities allowing the organization to stay true to the fundamental co-operative principle of ‘people helping people’. This principle reflects the strength of FHC’s leadership and the dedication of our team in meeting and exceeding member expectations and preserving stakeholder confidence. This has resulted in the organization closing the year with a healthy surplus, performing creditably across both our loan and deposit portfolios.
The Board of Directors recognize and acknowledge the spirit of resilience that reverberates across the organization and thank the Management Team for their prudent stewardship in achieving these results. We also recognize and acknowledge our dedicated Volunteers who continuously support us in maintaining appropriate policies and procedures guiding the Credit Union to function effectively to provide the highest level of service to you, our members.
FINANCIAL PERFORMANCE
FHC delivered a strong financial performance with a surplus of $354.34 Million in 2024 compared to the prior year’s surplus of $330.66 Million representing a 7.16% increase year over year. Total Assets have increased by 7.96% compared to the previous year, reaching a high of $20.49 Billion representing an increase of $1.51 Billion over the prior year’s $18.98 Billion. The positive outcome was underpinned by robust revenue generation, disciplined cost management, and a heightened focus on operational efficiency. Strategic efforts to grow the loan and deposit portfolios yielded strong returns, with heightened emphasis on deposit mobilization in response to macroeconomic shifts.
STRATEGIC VISION
Our organization remained unwavering in its member-centric philosophy, as outlined in our 2040 Vision. In 2024, emphasis was placed on strengthening organizational culture, enhancing product and service offerings, and driving member value through targeted engagement and innovative solutions. The foundation is being laid for scalable long-term success as strategic initiatives have been created to enable the digital transformation journey. This forward-looking agenda positions FHC to remain competitive and responsive to evolving member expectations in an increasingly digital and dynamic financial services landscape.
FHC INVESTMENTS LIMITED
2024 was a challenging year for FHC Investments Limited (FHCIL), which realized a loss of $40.94 Million after taxes, as compared to the prior year’s loss of $56.16 Million. Ongoing market challenges augmented by the disruptions faced during the 2024 cyber incident collectively impacted the organization’s performance. Looking ahead to 2025, the focus will be on improving the subsidiary’s capabilities and processes, enhancing technology, and optimizing investment strategies to gradually improve and restore its financial performance.
The FHC Retirement Scheme continued to serve as a vital vehicle for long-term financial planning, contributing positively to FHCIL’s investment income. The Scheme remains a strategic growth area for the Group, with plans underway to expand membership and product offerings. We are committed to bolstering retirement readiness among our members through improved access, education, and advisory support.
FHC FOUNDATION
Through the FHC Foundation, we are pleased to have donated a total of $ 3.6 Million to 21 recipients during 2024 through the Primary Exit Profile (PEP) Scholarship, Oswald Thorbourne and Renald Mason tertiary level scholarships and the FHC Sports Education Scholarship. This is in keeping with our annual scholarship awards programme.
Our FHC Entrepreneur Awards grants, valuing $1.5 Million, were awarded to 3 outstanding candidates with start-up businesses or business ideas. The three successful candidates, along with the additional two who were shortlisted, benefited from a three day Incubator Session and quarterly check-in, which saw them being trained in entrepreneurship principles and best practices, which will position them to maintain and progressively scale their businesses in the future.
We congratulate all our beneficiaries, members and YOUTH Savers, and encourage them to continue to demonstrate an exemplary level of work, dedication and commitment to success. BOARD OF DIRECTORS’
ORGANIZATIONAL OUTLOOK
The Board of Directors believe that the Credit Union is well-positioned for sustained growth and transformation. Our perspective remains positive that we will achieve our key strategic obligations, and that the Management team will continue to drive operational excellence and enhance financial inclusion. Collectively, we will continue to honour our promise of maintaining a solid past and creating a secure future as we strive to deliver exceptional value and build a resilient, future-ready institution.
Finally, we convey our sincere thanks to you, our valued members, for your unwavering support, trust and loyalty to your Credit Union, it is ultimately your support that enables us to be progressively successful year over year.
Camelle Ricketts-Moore Chairman
MANAGEMENT DISCUSSION & ANALYSIS
In 2024, First Heritage Co-operative Credit Union Limited (FHC) delivered a strong performance, exceeding expectations despite a dynamic environment characterized by both significant challenges and remarkable achievements. Guided by our theme “Innovate, Elevate, Celebrate”, we remained steadfast in our strategic focus, adapting with agility and purpose to emerging circumstances. This approach enabled us to not only navigate the complexities of the year but also to unlock new opportunities for growth, member engagement, and operational excellence. The results reflect our strong leadership, dedicated team, and the enduring trust of our members.
FINANCIAL PERFORMANCE
Our financial performance throughout 2024 proved to be robust, with loan disbursements totaling $6.12 Billion for the period. Our Credit Union also achieved a Net Surplus of $354.34 Million. These results are driven by strong revenue growth and effective cost management. Overall, our financial performance in 2024 was highly commendable, and remains proof of our unwavering commitment to our members and to delivering the highest standards of service along with attractive and beneficial products.
OUR STRATEGIC PRIORITIES
At the heart of our strategic direction lies a resolute commitment to our mantra of placing our members at the center of everything we do. In 2024, we remained aligned with our Vision 2040, advancing initiatives that deepen member relationships, foster a high-performance culture among our team, and elevate the overall member experience. Our focus extended across key pillars—strengthening our people and culture, refining our products, services, and promotional offerings, and enhancing member engagement through innovative and relevant solutions. These efforts were underpinned by a robust risk management framework and a continued drive for operational efficiency, ensuring that we not only meet but exceed the evolving needs of our members with confidence, resilience, and purpose.
OUR VALUED MEMBERS
Deepening Member Relationships
With ‘Innovate, Elevate, Celebrate’ as the mantra for the year the team moved to take advantage of this mantra as inspiration as they dug deep to innovate and stay relevant despite the waves of challenges which impacted the organization. Amidst the very competitive financial environment, and the occurrence
of a cyber incident, which had a months-long residual effect, the team was able to close the year strong in all core target areas, including member service ratings.
In Q1 the financial environment was turbulent for some sectors of the economy as they were reportedly still in recovery mode following a time of immense difficulties, including mounting cases of fraud encountered by the financial sector island wide, which resulted in a dip in consumer confidence. Amidst these encounters our team was able to remain resilient, practicing strong internal controls, upgrading internal practices and policies to align with the Data Protection Act and building deeper connections with our members while expanding into new partnerships.
Our engagement in several business development activities served to strengthen our existing relationships with the civil service sector, while solidifying new partnerships successfully with entities in the private sector. By mid-year several seminal moments were noted for the organization in terms of business growth and otherwise. During this time, the team demonstrated flexibility by continuing a growth path that exceeded expectations despite the difficulties being encountered at the time. This was achieved through the successful collaboration of the Retail Team with the wider organizational network, and each challenge was handled with suppleness. Armed with the guidance offered by the Management Team challenges subsequently manifested into opportunities.
The Management Team committed itself to the strategic objective of growing the organisations’ loan and deposit portfolios, with a core focus on deposits, whilst maintaining our ‘Member At The Centre’ ethos. As such, we successfully undertook a series of activities to attain this objective which contributed significantly to the Organisation’s performance in 2024 as outlined below:
• The Bank of Jamaica (BOJ) in Q2 of 2023 increased the cash reserve requirements and as such prompted the financial markets’ thrust to increase deposit taking activities. The branch team’s mindset was therefore attuned to increasing organizational liquidity and generating profitability by being more focused on deposits. The team was able to accomplish the aforesaid by garnering new business from non-borrowing members and new members resulting in significant business intake.
• Our team was encouraged to pursue business development activities activated by their participation in presentations to public and private sector entities; through these efforts, they were able to generate additional income to support their performance as well as solidify very lucrative partnerships across both sectors. Coupled with this, the successful restructuring of the Member Contact Centre in previous years continues to bear fruit as the Unit is now an income generating one contributing substantially to the sales growth which has bolstered the bottom line of the organisation. These activities were supported by efficient tracking, monitoring and throughput of sales activities.
• Collaboration between the Credit Administration and Retail Teams positively contributed to the performance outcomes of 2024 as the units continuously reviewed and assessed the monthly pipeline projections in collaboration with the Disbursement Unit which aided the Retail team in tracking their processed loans to ensure their timely disbursement.
The strategies designed and implemented brought greater value to our members, thus ensuring that their needs and expectations were met or surpassed and our targets exceeded. The increased commitment of the team, with a clear understanding of the overall company objectives, goals, purpose and motivation, was the driving force of our success.
Member Engagement Activities
Throughout the year, our organization remained committed to serving our core market segments while deepening relationships built on trust between the Credit Union and its members. This dedication reinforces our position as the preferred partner for achieving financial wellness and personal goals. Several hallmark events were hosted during the period, celebrating and supporting our members through various awards and scholarship programmes. Key activities that contributed to maintaining and strengthening our member relationships included:
Civil Service Week - Civil Servants of the Year Awards
Continuing our commitment to the Civil Service as proud title sponsor of the 2024 FHC Civil Servants of The Year Awards, we had the pleasure of meeting a new and impressive group of shortlisted candidates
MANAGEMENT DISCUSSION & ANALYSIS
for the Civil Servants of the Year Awards. Following thorough interviews and interaction with each of the shortlisted nominees, we selected the following winners from the three categories:
NAME CATEGORY
DEPARTMENT
Mr. Andre Allen Management Jamaica Information Service
Mrs. Barbara Riley-Williams Middle Management Statistical Institute of Jamaica
Mr. Jeron Bonsfeather Technical Support Ministry of Health and Wellness
Credit Union Week
International Credit Union Day, which is celebrated annually on October 20, saw the Credit Unions of Jamaica hosting its second iteration of the ‘Praise in the Park’ concert. FHC Credit Union members were invited to attend this event and were also celebrated across our branches, through the provision of branded FHC tokens and refreshments in branch throughout Credit Union Week. With activities varying from branch to branch, members were treated to a mix of branded goodies, live music serenade, spot prizes and trivia amongst other celebratory activities.
FHC Christmas Jolly Jubilee Lunch Hour Concert
MANAGEMENT DISCUSSION & ANALYSIS
Following a successful first staging in 2023, our organization again feted our members with the FHC Christmas Jolly Jubilee Lunch Hour Concert to ring in the Christmas season. The event was held at the Head Office, featuring numerous mainstream and rising entertainment acts, giveaways, prizes and surprises that delighted our members. This was accompanied by member appreciation activities across our branches, wherein, each branch feted members with Christmas treats and delights, allowing our valued members to feel the joy and cheer of the season.
Products, Services and Promotions
With our Member At The Centre mantra remaining squarely in focus, we supported our members through several special offerings throughout the year, carefully curated to meet their needs. These offerings included a blend of sales, promotional and special offers as follows:
1. ‘Zest of Summer’ Sale –
Our Zest of Summer Sale featured a vibrant mix of loan and deposit offerings at specially reduced or increased interest rates respectively; all thoughtfully designed with our members in mind. Whether they were saving for something special or borrowing to
achieve milestone goals, the campaign provided an ideal opportunity to take advantage of summer-exclusive rates and benefits. Our focus was on helping our members move forward with confidence and energy toward their personal and financial goals.
2. ‘Sleigh the Season’ Christmas Sale – Our Sleigh the Season Christmas Sale Promotion brought festive cheer with a range of special loan and deposit offers tailored to help our members make the most of the holiday season. With limited-time interest rates and flexible options, the promotion was designed to ease the financial load of year-end expenses, support meaningful celebrations, and set the stage for a strong start to the new year. It was our way of helping members achieve their goals and experience joy throughout the season.
3. Access Di Access + Brawta Promotion - Our Access Di Access + Brawta Promotion, led by the Jamaica Co-operative Credit Union League and supported by all credit unions island-wide, encouraged members to use their AccessPlus Debit Mastercard for both everyday and major purchases. Members earned points based on the value and frequency of their transactions, turning their spending into exciting rewards. We were thrilled to celebrate our members' participation, three of whom were awarded sectional prizes; we were especially proud that the grand prize—a luxurious all-expense-paid trip for two to Cancun, Mexico for five days and four nights— was awarded to one of our valued, longstanding members.
4. Black Friday AccessPlus Debit MasterCard Promotion - Our members were invited to access a line of credit through the new AccessPlus Debit MasterCard to cover their Black Friday shopping needs. Similarly, our Cash In A Flash product was promoted enabling our members to access funding needed for local purchases.
5. The Member Assistance Programme – Numerous offerings were extended to our members to help to buffer the many challenges that were being experienced. These included waivers, moratoria and other options.
OUR PEOPLE AND CULTURE
A Year of Challenges, Innovation, and Success
This year was unlike any other for our team members. Faced with unprecedented challenges, we navigated through uncertainty and adapted to unexpected obstacles. Through our team members' resilience, creativity, and dedication, we turned difficulties into opportunities for growth.
Annual Blast-Off Event
Our annual team member kick-off event, Blast-Off, embraced our theme ‘Innovate, Elevate, Celebrate’. It was a truly celebratory occasion, honouring and rewarding our team members for their outstanding performance over the past year. In the Chief Executive Officer's address to the team, they were encouraged to embrace innovation to stay relevant, elevate and enhance the FHC brand, and celebrate successes.
Continuation of a Culture of Learning
We supported a culture of continuous learning and growth for our team members, ensuring ongoing training in regulatory & compliance principles, leadership, and professional development.
Regulatory & Compliance Principles
Our Team members completed the required training in the Proceeds of Crime Act, the Counter Financing of Terrorism, and Data Protection Regulations, fulfilling the requirements of our Regulators.
Leadership
As we continue to foster a culture of internal growth and career progression, we hosted a Leadership Workshop for our Supervisory Team Members to ensure smooth succession planning. This cadre is being groomed to transition into leadership roles within the organization.
Professional Development Courses
During the year, our team members completed several courses on our E-Learning Platform, which accounted for 2,223 hours of training.
Other Training Sessions
We also organized training sessions to educate and raise awareness among our team members, covering topics such as Fraud Prevention, the Sexual Harassment Act, and changes to the NHT Mortgage Financing process.
Team Welfare and Engagement Activities
Team member welfare and engagement activities are essential for maintaining a productive, motivated, and satisfied workforce. We continued our team member engagement activities such as our customary Theme Days, Sports Club Socials, and Christmas Party.
A Note of Gratitude to Our Valued Team Members
We wish to express our sincere gratitude to all team members for their unwavering dedication, hard work, and loyalty to our Credit Union. With your determination, perseverance, and collaborative efforts, we were able to overcome the odds and achieve success.
We encourage you to maintain the high momentum that kept our organization going and we commit to working together to make First Heritage Co-operative Credit Union a great institution that allows team members to feel valued and connected.
FHC INVESTMENTS LIMITED
In 2024, Jamaica's economy contracted by 0.9%, reversing the 2.6% economic recovery seen in 2023, according to the Planning Institute of Jamaica (PIOJ). This downturn was primarily driven by the impact of Hurricane Beryl, which significantly disrupted the agriculture, mining, and other sectors. The goods-producing industry shrank by 2.3%, with agriculture, forestry, and fishing down by 3.4%, and construction falling by 2.8%. The services sector also declined by 0.3%, notably in transport, storage, and communication.
The most significant contraction occurred in the July to September quarter, with the economy shrinking by 3.5% year-on-year. Despite these challenges, industries such as finance, insurance, and mining showed resilience. Looking forward, the PIOJ forecasts modest growth of 0.1% to 1.0% for the first quarter of 2025, with a projected contraction of 0.5% to 1.5% for fiscal year 2024/25. MANAGEMENT DISCUSSION & ANALYSIS
FHC Investments Limited (FHCIL) reported Net Loss of $40.94 Million after taxes, as compared to the prior year’s loss of $56.16 Million. The movement in losses recorded in 2024 was driven mainly by reduced Net Interest Income and increased Operating Expenses. Whilst Interest Income decreased by 31.65% due to a reduced portfolio size, Operating Expenses increased by 23.65% due to staff costs, regulatory and audit fees.
Funds Under Management declined by $517 Million year over year to $2.66 Billion due to a reclassification to exclude certain non-discretionary fixed income and equity portfolios. The company acts as an agent and earns fees for managing clients’ funds.
The FHC Retirement Scheme experienced moderate growth as 41 new members were enrolled in the Scheme. Members’ contributions totaled $160.57 Million which was a 4% increase over the prior year, while net assets available for benefit grew by 10% to end the year at $1.728 Billion.
Strategic adjustments will be necessary to strengthen the company’s overall financial outlook. In 2025, FHCIL will focus on recovery and growth by strengthening its sales team, enhancing operational efficiency, and capitalizing on market opportunities.
Key priorities include rebuilding the sales team and improving technology and systems to support the organization’s efficiency and controls. The company will focus on optimizing investment strategies amidst a challenging macroeconomic environment and will continue to manage costs effectively to improve profitability.
FHCIL expects modest growth in Funds Under Management and will focus on expanding the FHC Retirement Scheme. While market volatility remains, FHCIL is positioning itself for long-term success by optimizing resources and pursuing strategic growth initiatives.
OUR STRONG RISK MANAGEMENT CULTURE
Loan Risk and Credit Administration
The Gross Loan Portfolio witnessed an 11.47% increase year over year from $14.21 Billion in 2023 to
$15.83 Billion in 2024. The increase was driven by continued high demand for unsecured loans, and motor vehicle loans, together with active promotion of our real estate secured loans; therein increasing the secured loans portfolio with non-depreciating assets, to make the portfolio more resilient to economic shocks.
The Past Due Rate was reduced to 7.29% compared to 7.72% in 2023.
Enterprise Risk Management
Our risk management approach continues to be a core aspect of our organizational culture and a vital component in achieving our Vision and Mission. We remain steadfast in adhering to sound business practices that promote member value and ensure the long-term growth of our Credit Union. Our Enterprise Risk Management Framework maintains rigorous standards designed to effectively identify, manage, and mitigate potential risks. The key objectives are:
1. Oversight: To identify, manage, and monitor all critical risks using a comprehensive approach aligned with the Board-approved risk appetite.
2. Accountability: To designate responsibility for risk ownership to the Management Team , who are tasked with identifying, assessing, mitigating, and reporting risk exposures.
3. Assurance: To provide reasonable assurance to the Board, Management Team , Members, and Stakeholders that risks are being effectively managed within established parameters, ultimately delivering value to the Credit Union.
FHC continues to manage the primary risks associated with our operations—Strategic, Credit, Compliance, Operational, and Financial. Responsibility for each risk area is clearly assigned to the relevant Head of Department.
Anti-Money Laundering and Counter-Financing of Terrorism (AML/CFT)
We remain resolute in ensuring that our team has a thorough understanding of the anti-money laundering and counter financing of terrorism requirements and this is supported through ongoing training and development, to ensure member due diligence and reporting of transactions that are suspected to involve illicit assets or terrorist activities.
Business Continuity Plan
Our disaster recovery management efforts remain on-going. A Business Continuity Plan (BCP) has been established for adoption in the event of any significant interruptions to buildings, facilities, systems or employees the Credit Union has designed modalities and approaches to efficiently restore the business operations to pre-disaster levels.
Foreign Account Tax Compliance Act (FATCA)
Our subsidiary, FHC Investments Limited (FHCIL)continued to be compliant with its reporting obligations under FATCA.
Common Reporting Standard (CRS)
The Credit Union and our subsidiary, FHCIL, remained compliant with the Common Reporting Standard (CRS) in keeping with regulatory requirements.
Data Protection Act
With the Data Protection Act (DPA) 2020, now in effect, our organization maintains ongoing training and workshops to support our compliance with the changes that stem from this legislation; and ensure adherence to the relevant policies and procedures that govern our operations. Assessment and refining of our processes and procedures remain on-going as the organization adapts to the new requirements.
FOCUS ON OPERATIONAL EFFICIENCY
The team remains dedicated to upholding the high levels of efficiency achieved in the previous financial year. Our Underwriting Team successfully struck a balance between delivering exceptional service to our members and protecting the best interests of the Credit Union.
Coupled with this, the Credit Union has finalized its digital transformation roadmap, which will guide the organization in establishing the appropriate channels and mechanisms to significantly enhance member enablement. Our Management Team has commenced preparations to roll out the interventions and innovations outlined in the roadmap, with the pace of implementation expected to accelerate from 2025 onwards.
OUTLOOK
With steadfast commitment to our members, team members, and the communities we serve, we reaffirm our promise to retain our ‘Member At The Centre’ focus. As we look ahead to the upcoming financial year, I do so with a profound sense of optimism and conviction in the continued upward trajectory of our Credit Union. Grounded in the solid foundation of our strategic plan, we are well-positioned to attain meaningful milestones in innovation, operational excellence, and sustainable growth.
A central pillar of this journey is our dedication to digitization. Our ongoing investment in technological advancement will further improve the quality of our services, ensuring secure, seamless, and inclusive solutions that meet the evolving needs of our members. From increasing and continually enhancing our digital platforms to leveraging data-driven insights, we are on a path to transforming the way we connect with and empower our members—making access to financial services faster, easier, and more personalized than before. Digitization is not just a tool for efficiency; it is a catalyst for deeper engagement, smarter decision-making, and long-term resilience.
Guided by our core values, we are not only pursuing financial success but are also committed to delivering enriched, transformative experiences for every member we serve—both in-person and through robust digital channels that reflect modern expectations.
I extend deep appreciation to our esteemed Board of Directors, our selfless Volunteers, our visionary Management Team, and our dedicated team members. Your unwavering dedication, strategic insight, and resilience have been pivotal to our sustained progress and accomplishments. It is your collective effort that propels our mission forward and allows us to turn our aspirations into tangible results.
I am equally grateful to our valued members—thank you for your enduring trust and belief in the important role FHC Credit Union plays in enhancing your financial journey and overall well-being. Together, we are not just building a stronger institution; we are shaping a brighter, more inclusive, and digitally empowered future for all.
Xavier D. Allen Chief Executive Officer
TREASURER’S REPORT
OVERVIEW
It is with pleasure that we present the Treasurer’s Report to the 13th Annual General Meeting of First Heritage Co-operative Credit Union Limited (FHC) for the year ended December 31, 2024. The audited Financial Statements in this Annual Report are for the Group, which comprises the Credit Union and its wholly owned subsidiary, FHC Investments Limited (FHCIL).
SUMMARY OF FINANCIAL PERFORMANCE
Total revenues of $2.69 Billion grew by $246.64 Million or 10.05% over the prior year’s total of $2.45 Billion. Despite a challenging year, FHC realized a surplus of $354.34 Million compared to the prior year’s surplus of $330.66 Million representing a 7.96% increase year over year. The subsidiary FHCIL, realized loss of $40.94 Million after taxes, as compared to the prior year’s loss of $56.16 Million. This year’s performance resulted in Accumulated Surplus of $352.82 Million at year end for the Credit Union.
The demand for loans declined within the financial year 2024 and this led to disbursements totaling $6.12 Billion relative to $6.70 Billion in 2023; a reduction of 13.96%.
The Credit Union’s Total Assets have increased by 7.96% compared to the previous years, reaching a high of $20.49 Billion representing an increase of $1.51 Billion over prior year’s $18.98 Billion, while the Group had Total Assets of $20.55 Billion as compared to $19.04 Billion (2023) or a 7.91% increase. The Group’s Net Loan portfolio increased by 11.47% or $1.55 Billion over the prior year (2023) moving from $13.52 Billion to $15.07 Billion. As a consequence, the Group’s Liquid Assets and Investments reduced by $112.39 Million (2.68%) to $4.07 Billion as funds were redirected into loans.
The graph below indicates the Credit Union’s Investments, Loans and Total Assets for the period 20202024.
Members’ Deposits and Voluntary Shares increased by $1.24 Million or 8.12% from $15.25 Billion (2023) to $16.49 Billion (2024). The market for our members deposits has been increasingly competitive and through our retention strategies we have been able to realize a 8.12% increase over the prior year.
The graph below indicates the Deposit trend over the period 2020-2024.
OPERATING RESULTS
The increased appetite for loans by our members and the reinvestment opportunities within our Investment portfolio created improved interest income.
The Credit Union’s key results for the year 2024 were:
• Interest Income of $2.47 Billion (2024) increased by $219.43 Million or 9.72% from $2.26 Billion (2023), this was primarily due to the increased earnings from our new loans portfolio and higher yields on re-invested funds.
• Non-Interest Income of $222.23 Million (2024) increased by $27.21 Million or 13.95% from $195.02 Million (2023).
The graph below depicts the Credit Union’s performance in Interest Income and Non-Interest Income for 2023-2024.
• Interest Expense increased to $331.09 Million (2024) from $288.38 Million (2023). This increase corresponds to the continued growth of our deposit portfolio and significant take up of the Term Deposits which are our primary source of funding. The Credit Union continues to offer some of the most competitive interest rates available to our members on savings products.
• Operating Expenses increased by $122.38 Million or 7.39%, from $1.66 Billion (2023) to $1.77 Billion (2024) however, our Operating Expenses to Average Asset ratio decreased to 9.01% from 9.16% in 2023.
• Past Due loans (30 days and over) as a percentage of our Gross Loan portfolio were 7.29% vs. 7.72% as at December 2023.
• Provision for Loan Losses for the year, net of recoveries was $226.22 Million in 2024, relative to $174.02 Million in 2023. It was necessary to maintain our provisions as the economic circumstances of some of our membership remained dire, increasing the probability of loan default. The provisioning for loan losses continued to be adequate to cover potential losses.
• Accumulated surplus available before distributions increased to $352.83 Million from $351.31 Million, an increase of $1.52 Million over 2023.
The graphs below demonstrate the Credit Union’s Revenue and Net Surplus/Deficit performance for the last five years.
REGULATORY ENVIRONMENT
FHC’s Regulatory Institutional Capital to Total Assets ratio stood at 11.32% as at December 31, 2024 (10.61% in 2023). This ratio, compared favourably to the minimum PEARLS Standard of 8.00%, and a 6.00% minimum requirement for the Bank of Jamaica.
The Jamaica Co-operative Credit Union League Limited (JCCUL) continues to monitor the Credit Union’s performance against International Credit Union Industry financial benchmark standards, for safety and soundness (PEARLS). Our performance is also compared to other prudential standards by the BOJ.
As a specified financial institution, the BOJ continues to have oversight of our activities by reviewing our financial reports and conducting periodic audits. It is anticipated that the BOJ will soon assume direct supervision of credit unions and in preparation we continue to make the requisite procedural and policy reviews.
CONCLUSION
Your Credit Union’s performance in 2024 is worthy of accolades, having had to manoeuvre and respond to economic challenges such as inflation, increase in interest rates and the global supply chain disruptions. Key prudential ratios such as the Capital and Liquidity positions remained adequate and above benchmark; ratios bolstering our ability to execute on our strategies, always with the ethos of putting our Members at the Centre. As always, the Credit Union’s success is dependent on the continued support of you, our members, our dedicated team members and our volunteers.
ACKNOWLEDGEMENTS
I would like to gratefully recognise the membership on behalf of the Board of Directors and Management Team, for their continued support of our Credit Union as we thrive. It has been an honour and privilege to serve you as Treasurer.
We acknowledge the work of our Auditors, KPMG, and their professional contribution to the audit process.
Thanks to all our valued stakeholders especially our volunteers, managers and team members who unwaveringly applied themselves contributing to the Credit Union’s success.
Nickeisha Walsh Treasurer
Financial Statements
December 31, 2024
SUPERVISORY COMMITTEE REPORT
THE COMMITTEE
The Supervisory Committee assists the Board of Directors with discharging its responsibilities by providing oversight on aspects of the internal control system through the Internal Audit Function.
All standing members were elected by the Credit Union membership at the Annual General Meeting held on the 9th of September 2024.
The standing members of the Supervisory Committee are:
• Mrs. Karlene Mitchell-Gordon
• Mr. Adjaynae Billings
• Ms. Carol Dallas-Robinson
• Mr. Dwayne Tabannah
• Ms. Tanisha Thompson
The Committee elected Mrs. Karlene Michell-Gordon and Mr. Adjaynae Billings as Chairperson and Secretary, respectively.
REPORTING PERIOD
The reporting period for this report will cover the twelve-month period January 2024 to December 2024.
ATTENDANCE RECORD
There were 12 Supervisory Committee meetings held for the reporting period. The attendance by members is as follows:
SUPERVISORY COMMITTEE REPORT
*Retired September 2024
**New September 2024
Members of the Supervisory Committee also attended the quarterly Joint Meeting of the Board of Directors, Committees and Management. The Chairperson also attended the Audit & Risk Management Committee meetings held during the period.
AUDIT AND INVESTIGATION ACTIVITIES
Audit Activities
There were eight (8) audits on the 2024 Audit Plan. All eight (8) audits were completed during the year, with a target completion rate of 70%. The actual completion rate was 100%.
The occurrence of the cyber-incident, during April 2024, led to a change in the risk environment. This change impacted the planning, timing and scope of audits on the audit plan as initially scheduled for 2024. As such, subsequent to the incident, the plan was adjusted to focus on some of the heightened risks or concerns arising from the incident that had the potential to adversely impact the Credit Union and its subsidiary FHC Investments Limited.
Of the eight (8) audits, six (6) were completed by the Internal Audit Team, while the remaining Two (2) audits were outsourced and these were also completed.
The table below lists the audits completed in 2024.
1. Loan and Security Management
2. Financial Services Commission (FSC) Regulatory review on Internal controls surrounding on and off-balance sheet clients and staff investment accounts (FHCIL)
3. Post Cyber Incident Review (Financial and Fraud Risks) Unauthorised Negative balances on Members Earner Plus Accounts
4. Post Cyber Incident Review (Operational risks)Branch and Operations review
5. Post Cyber Incident review (Compliance Risks) FHCIL
6. Anti-Money Laundering and Counter Financing of Terrorism (AML/CFT) Compliance 2024
7. Post Cyber Incident Review (IT Risks) - Backup and Recovery Process Management and IT Access Password Management surrounding Privileged Accounts
The objectives of the audit were to determine the effectiveness of the verification process for Unsecured Loans. In addition, the audit assessed whether high value Micro and Small Business Loans and high value motor vehicle loans are adequately secured and there is receipt and assignment of life insurance policies for loans greater than $8 Million as per procedure.
Also, the audit assessed whether the adding of a new company to the Salary Deduction listing was appropriately approved. It was found that there was general compliance with loan documentation, verification requirements, required loan insurance and compliance as it relates to the addition of new companies to the Salary Deduction listing.
FSC Regulatory Review on Internal Controls Surrounding on and Off-Balance Sheet Clients and Staff Investment Accounts For FHCIL
The audit objectives sought to determine the effectiveness of the internal controls surrounding the operations of all product lines for both On and Off-Balance Sheet Clients. The audit included a review of the controls in place surrounding all staff investment accounts. The audit found that the Subsidiary maintains strong governance as it relates to Board and Committee Meetings, comprehensive minutes and adhering to the submission of financial reporting requirements. However, critical governance improvements include developing a system to ensure the consistent updating of the key Policies and Procedures as the business evolves and in accordance with the established review cycle. The audit found that there were operational issues which were immediately brought to the Management Team’s attention who then implemented the necessary controls to prevent a recurrence. This control should assist in mitigating any potential risks of unauthorized access and use of client’s funds.
SUPERVISORY COMMITTEE REPORT
Post Cyber Incident Review (Financial and Fraud Risks) Unauthorised Negative Balances on Members Earner Plus Accounts
Following a system disruption on April 3, 2024, the Credit Union experienced a temporary impairment to Universa’s capability to update member's Earner Plus and Youth Account balances in real time. Therefore, the system would be considered as operating “offline”. The transactions which were affected by this were ATM withdrawals and Point of Sales (POS) purchases. The primary objective of the review was to provide assurance on the effectiveness of internal controls for monitoring and rectifying negative balances on members’ Earner Plus and Youth accounts. Management took action to strengthen its procedures and operational controls specifically when the system goes offline. Doing so will not only safeguard future financial losses but also ensure continued member trust and satisfaction.
Audit on Post Cyber Incident Review (Compliance Risks) FHCIL
The primary objective of the review was to assess the impact of the cyber incident on FHCIL's compliance with regulatory reporting requirements. Despite the challenges posed by the cyber incident, FHCIL successfully submitted all required regulatory reports to the Regulators within the approved extended filing dates.
Post Cyber Incident Review (Operational Risks) - Branch and Operations Review
The primary objective of this audit was to assess compliance with, and effectiveness of key operational controls. This included adherence to specific procedures relating to debit card applications and agreements and dormant account activities. Additionally, the audit assessed whether the Group’s cyber insurance coverage was current considering the recent incident. In addition, we determined the effectiveness of anti-fraud training and awareness programs implemented, particularly in the context of the recent operational challenges. For the three main areas of Debit Card Procedures, Dormant Accounts and AntiFraud Training which were identified for corrective actions, Management addressed the issues noted. The Credit Union’s cyber-insurance was current, however at the time of the audit, the recovery cost was not offset by insurance.
SUPERVISORY COMMITTEE REPORT
Audit on AML/CFT Compliance
The objective of the audit was to evaluate the effectiveness of Source of Funds (SOF) documentation in compliance with Anti-Money Laundering (AML) requirements. The review found that overall, there was good AML/CFT compliance; with SOF compliance being exceptional.
Post Cyber Incident Review (IT Risks) - Backup and Recovery Process Management and IT Access Password Management surrounding Privileged Accounts
The above two (2) audits were outsourced. A draft audit report was completed in December 2024. And the final report was completed in the first quarter of 2025. However, at the time of this report, it had not yet been fully reviewed by the Committee and reported to the Board of Directors.
Special Investigations Activities
Globally cybercrimes have been growing at an alarming rate and the financial sector in Jamaica, including the Credit Union, has not been spared. The number of Special Investigations reported to the Internal Audit Department increased by 25% from (84) in 2023 to (112) in 2024. During the year 2024, 100 of the 112 investigations were completed. A completion rate of 89% was achieved compared to 2023 when the completion rate attained was 84%. This is summarized in the table below:
Carried Forward from 2023 and 2022
New Cases 2024 Total
SUPERVISORY COMMITTEE REPORT
During 2024, approximately $13.7 Million was under investigation. The cost to the Credit Union was approximately $0.6 Million (2023: $0.57 million). Insurance claims have been filed for some of the matters under investigation, and the Credit Union is awaiting the outcome of those proceedings.
Unauthorized transactions on debit cards were the major source of the investigations.
GENERAL REVIEWS
Bank Reconciliations Reviews
Based on the reports received, bank reconciliations were reviewed in a timely manner. Due to resource constraints, one bank account was not reviewed. This issue is being addressed.
Staff, Volunteer and Connected Party Past Due Loan Balances
Generally, Past Due loan balances for staff, volunteers and connect parties are monitored more closely than other loans. As at December 31, 2024, there were three (3) Connected Party accounts with loans over 30 days past due. The Management Team reached out to these persons to have the past due amounts settled.
CONCLUSION
We would like to express our thanks to the Nominating Committee for their confidence in selecting us and the members of the Credit Union for appointing us to serve in this important capacity.
We would also like to express our gratitude to the Board of Directors, Management Team and team members, in particular the Internal Audit Department, for facilitating and supporting the work of the Supervisory Committee over the year.
Karlene Mitchell-Gordon Chairman
CREDIT COMMITTEE REPORT
For the Financial Year 2024, the Credit Union’s Loan Portfolio performed very creditably. The Gross Portfolio witnessed an 11.47% increase year over year from $14.21 Billion in 2023 to $15.82 Billion in 2024.
Loans disbursed for the year 2024 totaled $6,121.71 Million compared to a budget of $6,281.45 Million, a negative variance of $159.74 Million. In January 2024, the Credit Union set a record in total disbursements of $679.09 Million. The Committee wishes to congratulate the Credit Administration Department on this achievement.
The Loan Portfolio by Security as of December 31, 2024, is outlined in the table below:
The performance of the Micro & Small Business Loans Unit saw disbursement decreasing from $287 Million in 2023 to $198.63 Million in 2024. This was due primarily to a smaller staff complement, which is being reviewed. However, the Past Due rate for the Portfolio improved as there was a favorable variance of 19.14 percentage points with the rate moving to 23.41% in 2024 when compared to 27.89% in 2023.
Overall Past Due Rate
There was a slight improvement in the Past Due Rate moving to 7.29% as of December 31, 2024, compared to 7.72% as of December 31, 2023.
Review Activities
1. Number of Loans Reviewed: 1,004
2. Special Conditions Approved by the Credit Committee: 40 loans totaling $381.08 Million
3. Loans approved by the Board of Directors: 54 loans totaling $102.79 Million
Attendance Record
For the period January to December 2024, a total of forty-three (43) meetings were held.
Attendance for each member was as follows:
* Retired September 2024
**New September 2024 Conclusion
The Credit Committee commends the FHC team on its strong performance for the year 2024. We believe that the strategic partnerships developed, the close monitoring of the portfolio, the team’s timely action in implementing remedies to curtail delinquency and the attractive loan sales offered, contributed to the high-performance levels.
We continue to encourage members to seek assistance from the Credit Union when facing challenges as the Credit Union is willing to offer support where it is possible.
Althea Daley Chairman
NOMINATING COMMITTEE REPORT
In accordance with the provision of the Rules of First Heritage Co-operative Credit Union Limited in respect of Article XIV, Rule 59, a Nominating Committee was appointed which comprised of the following members:
• Mrs. Camelle Ricketts Moore - Chairperson; Board Representative
• Mr. Richard Picart - Member Representative
• Mrs. Karlene Simpson - Staff Representative
The Committee met to consider all retiring Volunteers from the Board of Directors, Supervisory Committee and Credit Committee. The Committee subsequently advertised for Volunteers to fill the vacancies. The candidates were assessed and recommendations made. The Nominating Committee now presents this report to the membership as outlined below:
BOARD OF DIRECTORS
The Directors retiring at this Annual General Meeting are:
1. Mr. Richard Ranger
2. Ms. Nickeisha Walsh
3. Hon. Mr. Justice Evan Brown
A vacancy also exists on the Board of Directors in relation to Mr. Stefan Richards who vacated office on November 15, 2024. In accordance with Article IX, Rule 28(b), Mr. Andrew Nooks was appointed by the Board of Director to temporarily fill this vacancy on January 15, 2025.
We thank Hon. Mr. Justice Brown and Mr. Ranger for their service to the Credit Union and wish them the best in their future endeavours.
The Committee nominates the following persons who have all indicated their willingness to serve:
1. Mr. Richard Ranger
2. Ms. Nickeisha Walsh
3. Mr. Stefan Richards
Mr. Richard Ranger 2
Ms. Nickeisha Walsh 2
Mr. Andrew Nooks 2
New Recruits
1. Ms. Nicole Adamson Ms. Nicole Adamson 2
The following Directors will continue to serve for one year:
1. Mrs. Camelle Ricketts-Moore
2. Mr. Wayne Jones
3. Mr. Kevin Forbes
4. Mrs. Carian Freckleton-Cousins
5. Mrs. Karla Stephens-Hall
SUPERVISORY COMMITTEE
The members of the Supervisory Committee all of whom retire at this Annual General Meeting are:
1. Mrs. Karlene Mitchell-Gordon
2. Ms. Tanisha Thompson
3. Mrs. Carol Dallas-Robinson
4. Mr. Dwayne Tabannah
5. Mr. Adjaynae Billings
The Committee nominates the following persons who have all indicated their willingness to serve: Retiring
1. Mrs. Karlene Mitchell-Gordon
2. Ms. Tanisha Thompson
3. Mrs. Carol Dallas-Robinson
4. Mr. Dwayne Tabannah
5. Mr. Adjaynae Billings
Mrs. Karlene Mitchell-Gordon 1
Ms. Tanisha Thompson 1
Mrs. Carol Dallas-Robinson 1
Mr. Dwayne Tabannah 1
Mr. Adjaynae Billings 1
CREDIT COMMITTEE
NOMINATING COMMITTEE REPORT
The member of the Credit Committee retiring at this Annual General Meeting is:
1. Ms. Althea Daley
A vacancy also exists on the Credit Committee in relation to the late Ms. Janyce Robinson who vacated office on December 9, 2024, due to ill health and subsequently passed. The Credit Union is grateful for her distinguished and dedicated service.
In accordance with Article IX, Rule 28(b), Mr. Stennett McLean was appointed by the Board of Director to temporarily fill the vacancy on February 18, 2025.
The Committee nominates the following person who has indicated her willingness to serve:
1. Mrs. Althea Daley
2. Ms. Janyce Robinson
Mrs. Althea Daley 2
Mr. Stennett McLean 1
The following persons will continue to serve for one year:
1. Mrs. Keslyn Gilbert-Stoney
2. Mr. Earl Bailey
3. Mrs. Jacqueline Lloyd Carter
Profiles of Candidates
1. BOARD OF DIRECTORS
Mr. Richard Ranger, RPA, ACCA, CA
Mr. Ranger is a Chartered Accountant, a member of the Association of Chartered Certified Accountants (ACCA) in the United Kingdom and a member of the Institute of Chartered Accountants of Jamaica (ICAJ). He has over fifteen years of experience in external and internal auditing, accounting and business operations. Mr. Ranger has worked with PricewaterhouseCoopers, Boldeck Jamaica Limited and the Neal and Massy Group, specializing in audit and assurance, accounting and income tax services.
NOMINATING COMMITTEE REPORT
He is presently the Principal of Ranger and Associates, a local audit and accounting firm and he previously served as a volunteer in the capacity of a member of the Credit Committee.
Ms. Nickeisha Walsh, ACCA
Ms. Walsh is currently the Executive Director of the Students’ Loan Bureau. She is a qualified Accountant, a Fellow with the Institute of Chartered Accountants of Jamaica and a member of The Association of Chartered Certified Accountants (ACCA).
Ms. Walsh possesses over 15 years of accounting and finance experience and has performed assignments within various government sectors. Her expertise includes accounting, finance, management consulting, human resource management, strategic planning and leadership.
Mr. Andrew Nooks
Mr. Nooks is a technology strategist with over 30 years of experience in governance-focused leadership across cybersecurity, digital forensics, and data privacy. He has played a pivotal role in strengthening Jamaica’s information security landscape, advising organizations in the financial, manufacturing, telecommunications, and public sectors. His expertise spans system security architecture, risk management, and regulatory compliance, underpinned by formal governance training and industry certifications.
Throughout his career, Mr. Nooks has led independent security practices and contributed to national cybersecurity and data protection initiatives. He served on the boards of eGov Jamaica Limited and the Jamaica Data Protection Oversight Committee. His ability to align complex technical strategies with business priorities makes him well-suited for leadership roles driving digital transformation.
Ms. Nicole D. Adamson MSc, CFA, FRM, CSM
Ms. Adamson is a strategic finance leader with over 20 years of experience in the financial services sector. She served the VM Group in an investment research capacity, later expanding her role to encompass stockbroking and asset management across multiple asset classes including equities, bonds, real estate, and unit trusts. She also managed the trading of equities and has extensive experience developing and implementing strategy and business plans in the financial services sector.
In addition to her investment management expertise, Ms. Adamson performs economic analysis and has published articles in daily newspapers on economic matters, demonstrating her ability to communicate
NOMINATING COMMITTEE REPORT
complex financial concepts to broader audiences. She served as a staff member trustee in a pension fund for 4 years, where she gained valuable experience in fiduciary responsibilities and fund governance.
Ms. Adamson combines deep financial expertise with proven leadership abilities across multiple committees. She holds both the CFA designation and a Sustainable Investing Certificate, reflecting her comprehensive approach to investment analysis and modern portfolio management.
Her strong educational foundation includes a Master of Science in Finance, Economics & Econometrics from Bayes Business School, City St. George's University of London, complemented by professional certifications in financial analysis, risk management, and project management methodologies.
Through her diverse experience spanning investment research, asset management, trading, economic analysis, and governance roles, Ms. Adamson brings a well-rounded perspective to financial oversight and strategic vision, positioning her well for senior financial and board-level responsibilities.
2. THE SUPERVISORY COMMITTEE
Mrs. Karlene Mitchell-Gordon, BSc. LLB, MSc.
Mrs. Mitchell-Gordon is currently a Senior Tax Counsel with Tax Administration Jamaica. She is also a practicing Attorney-at-Law, who is well rounded in areas such as accounts, economics and tax reform.
She has held positions such as Legal Counsel & Corporate Secretary, Economist, Accountant and Lecturer and possesses over 20 years of work experience in accounting and tax reform.
Ms. Tanisha Thompson, BA, CIA, CISA
Ms. Thompson is an IT Audit/Consulting Professional with over fourteen years of combined expertise in the areas of Information Technology, Operational, Compliance Audits and Business Process Reviews for clients within the manufacturing, banking, insurance, retail and government sectors.
She has served both in external and internal audit conducting Information Technology and Security Audits. Ms. Thompson is currently a Director at the Auditor General’s Department, with primary focus on IT Security Audits.
She is a member of the Information Systems Audit and Control Association and the Institute of Internal Auditors.
Mrs. Carol R. Dallas-Robinson, CA, ACCA
Mrs. Dallas-Robinson is currently an Audit Manager with ABTAX Limited and an Accountant at Caribbean Broilers. She is qualified as a Chartered Accountant and possesses over 20 years of accounting and auditing experience.
In her capacity, she has performed several assignments within various sectors in the island.
Mr. Dwayne Tabannah
Mr. Tabannah currently occupies the position of Fraud and Risk management Lead at Digicel. He has held several managerial positions in the Finance and Risk Management sector. He possesses a decade of experience in Financial and Operational Risk Management.
Mr. Tabannah spearheaded many financial projects including compliance audit and risk assessment. He is the holder of a Bachelor of Science – Management Studies (Accounting), Master of Science Enterprise Risk Management and Master of Law – Corporate and Commercial Law.
Mr. Adjaynae Billings
Mr. Billings, a data analyst, has a wealth of knowledge in Data and Risk Analysis coupled with operational management. His work experience includes Business Risk Analysis and Commercial Risk Analysis.
Mr. Billings was educated at the University of the West Indies and the University of Waterloo (Canada). He was a recipient of the First Heritage Co-operative Credit Union Limited GSAT Grant.
3. THE CREDIT COMMITTEE
Ms. Althea Daley
Mrs. Althea Daley currently serves as a Consultant with the Jamaica Central Securities Depository. She is an innovative financial service manager with two decades of experience and has successfully managed the merger process of three credit unions. Mrs. Daley has served the credit union movement extensively as she was also a consultant with the Jamaica Co-operative Credit Union League Limited, the Petroleum NOMINATING COMMITTEE REPORT
Industry Employees Co-operative Credit Union, and Deputy General Manager for the Montego Cooperative Union Limited and served in the capacity of Manager for both Shell Employees Co-operative Credit Union Limited and Grace Co-operative Credit Union Limited.
Mrs. Daley holds a Postgraduate Diploma in Financial Services Management from the Jamaica Stock Exchange E-Campus and a Bachelor of Science in Management Studies from the University of the West Indies. She has been serving the Credit Union as a volunteer on the Credit Committee since 2014.
Mr. Stennett McLean
Mr. McLean currently serves as the Chief Photogrammerist of the Survey and Mapping Division at the National Land Agency (NLA), where he leads crucial mapping and surveying initiatives. His journey in cartography and geospatial sciences has been marked by progressive leadership roles, including his previous position as supervisor in the Topological Data Management Division. Throughout his tenure with the NLA, Mr. McLean has represented the Jamaican government at numerous international conferences and served as a delegate to the United Nations, contributing to global discussions on cartography and land management.
In addition to his primary roles, Mr. McLean demonstrated his commitment to national development through his service on First Heritage Co-operative Credit Union’s Credit Committee from 2017 to 2022. His leadership style is characterized by a strong sense of responsibility and urgency, balanced with exceptional team collaboration skills.
Beyond his professional achievements, Mr. McLean maintains an active interest in sports, particularly football and cricket.
A huge congratulations was extended to Tamika Benjamin, a loyal member of First Heritage Co-operative Credit Union for 22 years, on winning the Access the Access +Brawta grand prize. Benjamin received an all-expense paid trip to Mexico. Prior to the grand prize draw, she had also won an iPhone 15 in the competition's weekly prize giveaway. The Access Di Access promotion, designed by the Credit Union League, focused on encouraging the use of our AccessPlus Debit Mastercard for purchases.
LABOUR DAY 2024
We proudly partnered with the 2023 FHC Civil Servants of the Year Awardees on Labour Day to support the completion of their impactful community project at Reddie’s Place of Safety. Together, we contributed to the renovation efforts, enhancing the facility for its residents and demonstrating our shared commitment to community upliftment. This collaboration not only highlights the dedication of these civil servants but also reflects our continuous support for initiatives that bring positive change.
FHC CREDIT UNION TREATS MEMBERS ON INTERNATIONAL CREDIT UNION DAY
FHC Credit Union proudly participated in International Credit Union Day on Thursday, October 17, joining cooperatives around the globe to celebrate under the 2024 theme, “One World Through Cooperative Finance.” The festivities underscored the Credit Union's commitment to enhancing its members' lives by providing meaningful support throughout their financial journeys. Members were treated to tokens of appreciation, health check-ups, refreshments, and a variety of engaging activities, all designed to promote financial well-being and foster a strong sense of community.
2024 COURTESY CALL WITH THE GOVERNOR-GENERAL OF JAMAICA
The 2023 FHC Civil Servants of the Year, along with team members of FHC Credit Union and representatives from the Ministry of Finance & Public Service's Civil Service Steering Committee, had the honour of visiting King's House for a courtesy call with His Excellency, The Most Honourable Sir Patrick Allen, Governor-General of Jamaica.
During the visit, they discussed the vital role civil servants play in shaping our nation and their ongoing positive impact. Each year, the three awardees are tasked with undertaking a special community project, funded by FHC Credit Union, aimed at improving lives across Jamaica. For the 2023 awardees, their focus was on the renovation of Reddie’s Place of Safety, a home for children under state care. This impactful project significantly upgraded the facility, creating a more supportive and nurturing environment for the children, positively influencing their growth and development.
JCCUL’S DELEGATES REPORT
JAMAICA
CO-OPERATIVE CREDIT UNION LEAGUE LTD.
2024 CONVENTION & 83rd ANNUAL GENERAL MEETING
HIGHLIGHTS
The Annual General Meeting and Convention concluded successfully, taking place from Thursday, May 30 to Sunday, June 2, 2024 at the Ocean Coral Springs Resort in Trelawny. More than 180 attendees gathered at the all-inclusive hotel for four days of productive discussions and networking opportunities. "Credit Unions: Change with Intent…The Change Continues" served as the guiding principle for discussions on identifying new workflows and effective innovations to propel credit unions forward. This focus aimed to enhance members' financial well-being and streamline their banking experience.
The event offered a variety of learning and networking opportunities, including a trade show, workshops, roundtables, an annual general meeting (AGM), a youth congress in NeXGen and culminated in an Awards Gala.
Youth Summit – NeXGen Change makers
Seventy-four young credit union professionals, all under the age of 40, arrived by the bus loads to the Ocean Coral Spring Resort & Spa in Trelawny on Thursday, May 30, 2024 at 9am. Filled with anticipation and curiosity, they registered their names with members of the NeXGen Executive and took their seats, eagerly awaiting the start of the second staging of the Credit Unions of Jamaica NeXGen Change Makers Youth Congress.
The attendees were not given a traditional schedule, but rather were encouraged to "trust the process" and fully engage with the ideals and concepts presented. They, like the cohorts before them, took a deeper look into the co-operative model, the role of financial co-operatives in society and how each individual may commit to using their knowledge and influence to positively shape the lives of others. Moreover, each individual would be supported in their endeavours by their fellow NeXGeners and the Worldwide Credit Union Movement.
Cleon Cadogan, President of the NeXGen Change Makers, rallied the attendees to make a commitment to change. He emphasized that the NeXGen Change Makers have the capacity to effect change by being actively involved in the process. Nicole Haughton Johnson, 1st Vice President, presented the driving force behind the NeXGen program, its goals, missions, and objectives for the upcoming year. She also shared her personal journey within the co-operative movement, highlighting her experiences meeting co-operators from various regions, including Europe, Africa, the Eastern Caribbean, and North America. Johnson reiterated that the Co-operative Movement provides the opportunity for staff to grow personally and professionally.
Leaders of the Jamaica Co-operative Credit Union League, Andrea Messam, President and Robin Levy, CEO shared their high expectations of the NeXGeners. Messam relayed her elation at seeing so many young professionals take an interest in investing in the Co-operative Movement. She stated that credit unions face the issue of an aging membership with the average age being 55 years, and tasked young professionals who have been exposed to the benefits of the Credit Union Movement to entice their friends, colleagues and relatives to join a credit union. She also highlighted the grave fact that credit union members experience crisis all around the world and as part of a global Movement, it is our responsibility to make a positive impact where we can.
Robin Levy stressed the historical importance of the credit union movement in Jamaica and the unwavering focus on serving people. This core principle, he said, remains essential regardless of time or circumstances. Levy then presented a thought-provoking exercise. He asked the audience to raise their hands to shoulder level and reach behind their backs as far as possible. He then challenged them to imagine pushing their limits and retrying the exercise. Everyone found they could reach farther than initially thought. This exercise, Levy explained, demonstrates that seemingly impossible goals can be achieved with determination.
The participants were welcomed with messages from credit union colleagues worldwide, highlighting the global support available within the Movement. These messages aimed to convey the enthusiasm with which the global movement is committed to the enlightenment and upliftment of young professionals, emphasizing the collective effort to empower the next generation. Messages were received from Michelle Tracey (Jamaica), director of the NeXGen Change Makers and the Assistant General Manager, Marketing,
Communications & Member Experience at First Heritage Co-operative Credit Union Limited, Victor Saab (Brazil), director of the Youth Board Secredi Parana, Kimani Eaton (Jamaica), NeXGen member and Marketing Representative at the Manchester Co-operative Credit Union, Saravasti Maharajh (Canada), WYCUP Scholar 2021 and Co-operative Strategist and Kerry-Ann McCollin (Barbados), WYCUP scholar 2023 and General Manager of United Enterprise Credit Union Limited.
Empowered by knowledge of global cooperatives, credit union programs, UN sustainability goals, and ESG principles, participants tackled real-world scenarios through dramatization. Afterward, the attendees were adorned in ‘NeXGen Leader’ golden pins to declare themselves NeXGen Change Makers.
The NeXGen Change Makers didn't just collect pins and gifts; they took a powerful pledge. They vowed to TRANSFORM: how they viewed credit union challenges, how credit unions operated, and most importantly, how they were perceived by younger generations. The energy in the room was electric.
Following their induction, the energized NeXGen Change Makers, now 120 strong, are ready to revolutionize the credit union movement, one innovative idea at a time.
OPENING CEREMONY & WORKSHOPS
Friday, May 31 marked the official opening of the Annual Convention and 83rd Annual General Meeting. Credit Union board of directors, senior managers and JCCUL staff filled the room, sharply dressed in their varying credit union or league branded attire. Specially invited guest speaker, His Worship The Mayor Councillor Richard Vernon of Montego Bay, his secretary Sonia Simpson and invited exhibitors were praised for their contribution to the convention.
Attendees were witnesses to the Convention’s first flag ceremony facilitated by Alvin Reid, Manager of Postal and Partners Co-operative Credit Union, Melaine Campbell Member Services Officer at JCCUL, Cleon Cadogan President of NeXGen Change Makers and Sarnia Lewis-Raymond, Assistant Manager of Marketing, Sales & Strategy at Cuna Caribbean Insurance Jamaica who carried the Credit Unions of Jamaica, JCCUL, NEXGEN and CUNA flags respectively.
Greetings were brought by Andrea Messam, JCCUL President, Robin Levy, JCCUL Group CEO and Cleon Cadogan, NeXGen Change Makers President.
JCCUL’S DELEGATES REPORT
Nicole Haughton Johnson, NeXGen Change Makers 1st Vice President introduced guest Speaker, His Worship The Mayor Councillor Richard Vernon of Montego Bay. The Mayor spoke about the importance of effecting meaningful change and the critical element needed to the drive and sustain change, especially given the shifting members needs and the rapid evolution in technology in business processes and service delivery expectations.
Following the opening ceremony, the Children of the Drums delivered a vibrant performance that energized the attendees before they explored the exhibition area.
Tradeshow Participants
The trade show participants were as follows:
• Cuna Caribbean Insurance Jamaica Limited
• Cumax Wealth Management
• Quality Network Co-operative Limited
• Jamaica Co-operative Insurance Agency (JCIA)
• Symptai Consulting Limited
• Credit Union Brand Engineering (CUBE)
• Caribbean Assurance Brokers Limited
• CRIF Information Technology Solutions
• Shift Interactive, a subsidiary of CGR Communications
• P&S Events & Vacations
After a brief break, the convention continued with a series of thought-provoking presentations. These sessions challenged traditional business practices and explored innovative regulatory approaches for the future. The speakers engaged are as follows:
• Presenter: Krystal Tomlinson, Master Public Speaking Coach and Strategist
Topic: “Driving Change”
• Presenter: Rory Ebanks, Director of Cyber Security, Symptai Consulting Ltd
Topic: “Cyber Security Risk and Response”
JCCUL’S DELEGATES REPORT
• Presenter: Tom Hewlett, CEO of Credit Union Brand Engineering (CUBE)
Topic: “Innovative Branding Strategies: Enhancing Competiveness for Credit Unions in a Changing Financial Landscape”
• Round Table
Presenters: Robert Gordon, Chief Operations Officer at CRIF Information Bureau Jamaica Ltd
Andrew Rousseau, Managing Director of CGR Communications and Co-founder of Shift Interactive
Jamie Ranston, Director at CGR Communications and Co-founder if Shift Interactive
Topic: “Change is the only Constant”
2024 JCCUL Annual General Meeting
Over 180 delegates and alternate delegates from credit unions across the island attended the JCCUL’s 83rd annual convention on Saturday, June 1 at the Ocean Coral Springs Resort & Spa.
The meeting was chaired by Andrea Messam who welcomed the delegates. She began the meeting by orating a summary of the Board Report for the year 2023. All other reports including that from the Treasurer, the Supervisory and Nominating Committees, as well as the audited financial statements were presented.
Distribution of Surplus
The Delegates agreed to the distribution of the surplus of three hundred and six million, seven hundred and seventy thousand dollars ($306,770,000).
The Delegates also voted for the maximum liability of the League to be set at $5 billion.
Election of Officers
JCCUL’S DELEGATES REPORT
The Delegates elected the following Directors of the JCCUL Board for 2024:
Peer Group Elections
The following persons were elected by their peer groups:
At Large Category
The Committee nominates the following persons to fill the vacancies in the 'At Large' category:
The Delegates elected the following members to serve on the Supervisory Committee:
JCCUL’S
DELEGATES REPORT
Resolutions
Four (4) resolutions were passed at the meeting as follows:
Anniversary congratulatory resolutions
• Jamaica Defence Force Co-op Credit Union – 60th anniversary resolution
Congratulatory resolutions
• Jamaica Police Co-op Credit Union – Dr Anthony McLaughlin, national award honouree
• Jamaica Defence Force Co-op Credit Union - Lieutenant Colonel Michael Anglin’s retirement from the Board of Directors
• Jamaica Defence Force Co-op Credit Union - Mrs. Patricia Tomlinson’s years of service and contribution to the credit union.
Credit Union Awards Banquet
The Credit Union Awards Banquet was held on June 1, 2024 with Guest Speaker Darien Henry, JP, Principal of Montego Bay Community College and Journalist.
The following persons and credit unions received awards:
BRANCH & UNIT MANAGERS
BRANCHES ADDRESS
Kingston & 8-10 Eureka Road
BRANCH MANAGERS
Melissa Miller-Benjamin
St. Andrew Kingston 5 Senior Branch Manager
Lawrence Tavern
Lawrence Tavern P.O.
St. Andrew 20 Dominica Drive
10 East Avenue
Kingston 4
St. Catherine
Lot 57 West Trade Way
Portmore Town Centre
Unit 13
Oasis Shopping Centre
6 March Pen Road
Spanish Town
Shops 8 & 9, East Side Plaza
35 East Street
Old Harbour
St. Thomas 2 Debtor’s Lane
Clarendon
Racquel Walker
Trudian Stewart Gordon
Norman Williams
Sheldon Christian
Aljay Cole Morant Bay
Shops 5 & 6
Bargain Village Plaza
May Pen
Manchester 2 Perth Road
Mandeville
Tania Oglesby
Sharna Hutchinson-Scott
St. James 21 Union Street
Montego Bay
Vacant
Senior Manager - Accounting & Treasury
Sophia Harvey Manager - Human Resource Development
Vacant
Manager - Training and Development
Eugene Williams Interim Manager - Micro & Small Business Loans Unit
Alleesa Matherson Manager - Centralized Loans Unit
BRANCH & UNIT MANAGERS
Marcia Bailey
1. ORDER OF BUSINESS
PARLIAMENTARY RULES
An agenda shall be prepared by the Chairman and Secretary, and all items. Thereon shall take precedence over all other business. Any member desirous of introducing business for the consideration of the meeting may do so after the business on the agenda has completed, or may give notice of motion to be discussed at a further meeting.
2. SUSPENSION OF STANDING ORDER
In the event of any matter of urgency, however, the Chairman may accept a suspension of the Standing Orders. The member moving such suspension must clearly state the nature and urgency of his business, the numbers of the standing orders affected, and the length of time he desires such suspension to last. At the option of the meeting, a further extension may be allowed, but no suspension shall take place except by majority vote of the members present.
3. MINUTES
No motion or discussion shall be allowed on the Minutes except in regard to their accuracy. After the confirmation of the Minutes, they shall be signed by the Chairman, and the members shall then be at liberty to ask any questions in regard to matters arising out of them. Such questions shall be allowed for purposes of information only, and no debate on the policy outlined in the Minutes shall take place.
4. All persons desiring the floor shall rise and address themselves to the Chair. They shall state their name and the Credit Union which they represent, if recognized by the Chair, they shall have the privilege of the floor and all the rights thereof.
5. All speakers are to make use of the Desk and Floor Microphones when addressing the Meeting in order that it be recorded and made a permanent record in the Meeting Proceedings.
6. Should two or more persons rise at the same time, the Chair shall decide, without debate, who is entitled to the floor.
7. SPEECHES
No member shall be allowed to speak more than once upon on any motion before the meeting, unless in Committee, or on a point of order, or explanation, except the mover of the Original Motion. But on an amendment being moved, any member even though he has spoken on a Original Motion, may speak again on the amendment. No member shall speak for more than five minutes at a time. Members wishing to raise points of order or explanation must first obtain the permission of the Chairman and must raise immediately the alleged breach that has occurred. Any member may formally second any motion or amendment and reserve his speech until a later period in the debate.
8. No person shall interrupt another who is speaking except on a point of order, a parliamentary inquiry, or a point of information.
9. If it should come to pass that a speaker is called to order while speaking, the speaker should take his seat until the question of order is determined.
10. CHAIRMAN’S RULING
The ruling of the Chairman on any question under the Standing Orders, or on points of order or explanation, shall be final, unless challenged by not less than four members, and unless two-thirds of the members present vote to the contrary.
11. INTERRUPTION
If any member interrupts another while addressing the meeting, or uses abusive or profane language or causes disturbance at any of the meetings, and refuses to obey the Chairman when called to order, he shall be named by the Chairman. He shall thereupon be expelled from the room and shall not be allowed to enter again until an apology satisfactory to the meeting be given.
12 A question shall not be subject to debate until it has been duly moved and seconded and is stated from the Chair.
13. MOTIONS AND AMENDMENTS
The first proposition on any particular subject shall be known as the Original Motion, and all succeeding propositions on that subject shall be called amendments. Every motion or amendment must be moved and seconded by members actually present at the meeting before they can be discussed, and, wherever possible, should be set forth in writing. It is permissible for a member to make his speech first and conclude with a motion. When an amendment is moved to an Original Motion, no further amendment shall be discussed until the first amendment is disposed of (Notice of any further amendment must be given before the first amendment is put to the vote).
14. SUBSTANTIVE MOTIONS
If an amendment be carried, it displaces the Original Motion and itself becomes the substantive motion, whereupon any further amendment relating to any portion of the substantive motion may be moved, provided it is consistent with the business and has not been covered by an amendment or motion which has been previously rejected. After the vote on each succeeding amendment has been taken, the surviving proposition shall be put to the vote as the main question, and if carried shall then become a resolution of the meeting.
15. RIGHT OF REPLY
RULES
The mover of the Original Motion shall if no amendment be moved, have the right of reply at the close of the debate upon such motion. When an amendment is moved he shall be entitled to speak thereon in accordance with Standing Order No. 8 and at the close of the debate on such amendment shall reply to the discussion, but shall introduce no new matter. The question shall then be put to the vote immediately, and under no circumstances shall any further discussion be allowed once the question has been put from the Chair. The mover of an amendment shall not be entitled to reply.
16. WITHDRAWALS OR ADDITIONS
No motion or amendment which has been accepted by the Chair shall be withdrawn without the majority vote of the meeting. Neither shall any addendum or rider be added to a motion which has once been accepted by the Chair without majority vote. Should any member dissent, the addendum must be proposed and seconded, and treated as an ordinary amendment.
17. CLOSING DEBATE
The motions for the previous question, next business, or the closure, may be moved and seconded only by members who have not previously spoken at any time during the debate. No speeches shall be allowed on such motions. In the event of the closure being carried, the mover of the Original Motion shall have the right to reply in accordance with Standing Order No.16 before the question is put. Should any one of the motions mentioned in this Standing Order be defeated, thirty minutes shall elapse before it can be accepted again by the Chairman, unless he is of the opinion that the circumstances have materially altered in the meantime.
18. ADJOURNMENT
Any member who has not already spoken during the debate may move the adjournment of the question under discussion, or of the meeting, but must confine his remarks to that question and must not discuss any other matter. The mover of the motion upon which the adjournment has been moved, shall be allowed the right to reply on the question of the adjournment, but such reply shall not prejudice his right of reply on his own motion. In the event of such motion being lost, it shall not be moved again, except in accordance with Standing Order 18.
19. Any member may call for a division of the House (that is, for a roll call vote) when there appears to be a reasonable doubt as to the accuracy of the vote as announced by the Chair.
20. A motion to lay on the table shall be put without debate.
21. Whispering, loud talking, or other disturbances calculated to disturb anyone while speaking will not be tolerated. PARLIAMENTARY
REGISTER OF DEATHS
Aaron Smith
Ajay Bromfield
Angela Patterson
Angela Nelson
Anthony Jones
Basford McGregor
Bevon Stephens
Charlane Wilson-Bennett
Christiana Walker
Clive Taylor
Colita Beckford
Colton Kerr
Condell Cousell
Daniel Pryce
Dezrene Kelly
Donna Dreckett
Donovan Wint
Doreen Palmer
Edgar Buchanan
Edward Ramsay
Felmin James
Garfield Houslin
Gasmell James
Georgge Napier
Jean Wilson-Gordon
Joyce Williams
Keitha Osborne
Khalid Little
Lilian Muir-Bennett
Lloyd Duncan
Lloyd West
Lucille Meade
Marcia Christian
Marcia Johnson-Burgess
Maurine Collins-Smith
Maxine Hamilton
Mortimer Parkinson
Nettie Cameron
Nicole Jennings
Orett Campbell
Owen Smith
Pamela Bryan
Patricia Thompson
Paula Henry
Phyllis Douglas
Quinland Lewis
Reuel Dodd
Samuel Gayle
Sarah Duffus
Sean Clarke
Selene Graham
Shanna Barrett
Simone Peart
Steve Thompson
Sylvester Rumble
Sylvia Little
Tensang Bryan
Terry-Ann Brown
Thelma Davis
Valrie Brown
Wilhel Malcolm
Winston Williams
Yvonne Porter
PRAYER OF ST. FRANCIS OF ASSISI
Lord, make me an instrument of thy peace.
Where there is hatred, let me sow love;
Where there is injury, pardon;
Where there is doubt, faith;
Where there is despair, hope;
Where there is darkness, light; and
Where there is sadness, joy.
O Divine Master, grant that I may not
So much seek to be consoled as to console;
To be understood as to understand;
To be loved as to love.
For it is in giving that we receive;
It is in pardoning that we are pardoned; And it is in dying that we are born to eternal life.
