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DECEMBER 2011

KREK Perspective Vesele Božicˇne Praznike in Srecˇno Novo Leto 2012! During the holiday season, we extend our best wishes to our valued members and take this opportunity to thank you for your business in 2011. From All of Us, may your Christmas and New Year be filled with Love, Peace and Joy!

INSIDE…

Božična misel... Modri ali kralji z vzhoda so šli na pot, da bi spoznali in počastili novorojenega Kralja. Slišali so, da se bo rodil kralj kraljev, ki mu tudi pravijo odrešenik sveta. »Če je kralj kraljev, potem ne potrebuje, da bi mu kaj dali,« si lahko mislimo. Pa vendar, so mu modri darovali zlata, kadila in mire. Z zlatom, ki so ga darovali, so pokazali, da so mu hvaležni za vse, kar so in imajo. Hvaležni za to, da smejo biti kralji, modri v svojih deželah. Upam in želim, da bi čim več ljudi dobre volje spoznalo njega, ki je kralj kraljev, luč od luči, pravi

Bog od pravega Boga. Naj bo njegovo kraljestvo miru, pravičnosti in ljubezni, tudi naše kraljestvo, kjer radi živimo. Naj tudi nas učlovečenje Boga napolnjuje s pogumom in veseljem, da bomo hvaležni za vse kar smo in imamo. In da bomo vsaj nekaj darovali v dobre namene, kar bo gotovo prejel in vsakemu nagradil kralj kraljev.

Slava Bogu na višavah in na zemlji mir ljudem, ki so dobre volje! Toni Burja, C. M.

Reflecting On Our Progress In 2011.................................... 2 Nominations For Director Candidates Notice................................ 3 Make Use of these Investment Tax Planning Tips!................................. 4 Krek Welcomes Jak Slavec to its Team!.............................................. 4 Date for Annual Meeting Confirmed...................... 4

“MY CREDIT UNION MEETS ALL MY FINANCIAL NEEDS!!”


Reflecting On Our Progress In 2011... As this year draws to a close, it seems like a fitting time to reflect on our progress in 2011. The support of our loyal membership and hard work of our talented staff has established Krek as a very successful, community-leading organization with proven financial results. Indeed, with a strengthened position in the marketplace, our credit union has allowed our members to enjoy the benefits of a full range of financial services at competitive rates over the past year. We have been actively engaged in our growth and so we anticipate the following key accomplishments for 2011: • Over $96 million in assets; • Over 120 new members; • Expected interest income payout of approximately $1.5 million to members’ accounts; • Strong ongoing leadership in our Slovenian community. 2012 promises to be an equally busy year, with some important identified goals, which include continuing to: • build on strong growth in new membership and current member deposits; • provide strong leadership through consistent community support; • ensure financial stability through diligent management of financial and operational risks; • invest in our long-term sustainability through marketing and training of people. For your credit union to continue its record of success and be equipped to provide even greater returns, we require strong support from our community. Today, we have a base of approximately 3,400 members who benefit from our unique culture and operating

What’s on Your Christmas Wish List?

philosophy. There are a number of compelling reasons to deal with us. First and foremost, our dedicated management and staff are deeply committed to continuous improvement. We have made many additions and improvements to our services over the last number of years, and by keeping you informed about them, we have helped you get the most from your membership. Today, you can get all the services that you would get from a large bank, without the costly fees. In fact, you get more. You get to share in an interest payout each year, because you own shares in your financial institution!

the ongoing uncertainty in financial markets and in particular, in the Eurozone, Krek’s portfolio remains invested in various levels of government, Canadian banks or highlyrated Canadian corporations. Our members can feel secure, as we have no exposure to the US and European banking system. Our liquidity remains sound. Given the present market conditions, we remain prudent in our lending procedures, ensuring that loans are funded through greater scrutiny. Our key focus is on reducing exposure to financial and operating risk, an approach that benefits all our members.

By offering better rates, lower fees, free online services, and a full range of competitivelypriced services, we are fulfilling the mandate of our valued membership. And while we do so, we honour our Slovenian culture by giving you the option to conduct your business in your mother tongue. Your credit union actively engages in cultural stewardship, helping to preserve our heritage through community advocacy and leadership.

One of Krek’s core values is “our service promise to deliver personalized service like no other.” The way we treat our valued membership is meant to provide each and every one of you with a truly unique and fulfilling experience. In 2012, we will continue to create a relationship that draws on the strength of our community so that we can deliver results from which we will all benefit. We encourage our members to refer more members of our community to join in our success. More members mean greater returns for all. As such, our dedicated management, staff and Board of Directors encourage you to maintain this commitment, and invite others to do so too. With your support, the coming year is expected to once again yield a strong growth in assets, membership and payouts to our depositors.

Finally, as part of Krek’s desire to be accountable to its members, the Board provides an opportunity for members to comment and provide feedback. It is important for our members to engage in our future planning strategies. The bank’s focus is its profits, whereas your credit union cares about both its people as individuals and their ongoing financial health. Loyalty, indeed, offers a multitude of rich rewards. Over the past three years, we have seen significant strategic and regulatory-driven industry consolidations within the credit union system, and with this, a reduced number of credit unions. Based on continuing global economic uncertainty, consumer anxiety relating to employment, investments and major purchases is expected to persist in 2012, while interest rates remain flat. In the latter part of the year, we may see a very slow increase in interest rates, signalling the beginning of economic recovery. Despite

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We want to thank you for your business and your ongoing support. We wish everyone a Merry Christmas and safe holidays. Thank you and kind regards,

Joseph Cestnik Chief Executive Officer

Mark Zizek Chair of the Board of Directors

Financial security when I retire? Education savings for my child? Purchase my dream home? A new set of wheels?

At Krek, we can make your Christmas wishes come true!!

“ M Y C R E D I T U N I O N G I V E S M E S O U N D A D V I C E .”


NOMINATIONS FOR DIRECTOR CANDIDATES NOTICE As a member of Krek Slovenian Credit Union Ltd., you have the right to nominate, stand for election and vote for directors of the Board of Directors. The Nominating Committee is currently accepting nominations for directors. Members in good standing, aged 18 years of age or over, who meet the criteria set out in the Credit Unions and Caisses Populaires Act, By-Law No. 1 of the credit union and the Director Qualifications document, found on our website, will be considered by the Nominating Committee. Candidates must be nominated by two other members of the credit union in the form available below. Required documents are to be submitted to the Nominating Committee by January 31, 2012. Director elections will be held at the 59th Annual General Meeting on March 11, 2012. This year, three 3-year term positions and one 1-year term position are available on the Board of Directors. The Nominating Committee will consider candidates who possess qualities which include the following : • Dedicated interest in serving as a director up to 3 years and willingness to attend monthly board and committee meetings and other special functions; • Good references indicating a capacity for making a contribution and willingness to work hard; • Experience in financial services or a related industry; • Background in any of the following areas: accounting, finance, human resources, investments, marketing, information technology and law;

KREK SLOVENIAN CREDIT UNION LTD. INTEREST RATES December 15, 2011 *Rates Subject To Change Without Notice

SHORT-TERM DEPOSITS (min. deposit $5,000) Non-redeemable : 30 – 89............................................. 0.40 % 90 – 179........................................... 0.40 % 180 – 364........................................ 0.40 %

• Academic, business or professional degrees, designations, licenses, etc. Members of the Board of Directors are expected to take director courses and training to meet director qualifications within the time frames required by the credit union and prescribed by the Deposit Insurance Corporation of Ontario. We are particularly interested in candidates with experience in marketing and information technology. Additional information and required forms are available at the two locations of the credit union and on the credit union website, www.krek.ca. Interested members may mail or deliver the required documents addressed to the “Nominating Committee” in a sealed envelope marked “Private and Confidential”, or e-mail the documents to Susana Lourenco at slourenco@krek.ca.

NOMINATION FORM FOR DIRECTOR of KREK SLOVENIAN CREDIT UNION LTD. I, ___________________________________________________________________ (print name) of __________________________________________________________________ (print address)

(HIGHER RATES for deposits over $50,000)

LONGER-TERM DEPOSITS (min. deposit $1,000) Non-redeemable : 1 Year..................................................1.25% 2 Year................................................. 1.60% 3 Year................................................. 2.00%. 4 Year................................................. 2.25% 5 Year................................................. 2.50% (HIGHER RATES for deposits over $50,000)

SAVINGS ACCOUNTS Savings............................................ 0.75 % Maximizer Daily Interest : Balance $0 – $2,999.................... 0.25 % Balance $3,000 – $4,999 ........... 0.25 % Balance $5,000 – $9,999............ 0.50 % Balance $10,000 – $24,999....... 0.75 % Balance over $25,000................. 0.75 %

1st MORTGAGE LOANS Residential owner-occupied homes: 6 month open............................... 5.25 %

nominate____________________________________________________________ (print name)

1 year open.................................... 5.25 %

of________________________________________________________________________________

1 year closed................................. 3.25 %

_________________________________________________________________________________

2 year closed................................. 3.50 % 3 year closed................................. 3.70 %

_________________________________________________ (print address and telephone number)

4 year closed................................. 3.75 %

as a candidate for director of the Board of Directors of Krek Slovenian Credit Union Ltd. in 2012.

5 year closed................................. 3.95 %

Dated this ____________ day of _________________________________, 2012.

LOANS Krek Prime rate............................. 3.50 %

_____________________________________________ (Signature)

Home equity line of credit....... 3.50 % Car loans (new vehicles)........... 4.25 %.

“ M Y C R E D I T U N I O N L I S T E N S TO M Y N E E D S .”


Investment Tax Planning Tips! 4 Take advantage of income-splitting opportunities. Attribution rules do not apply on capital gains for children under age 18;

4 Consider investing in a mutual fund corporation which provides you with the ability to defer taxable income and capital gains to a future date when your are in a lower tax bracket;

4 Invest for your child’s education which gives your beneficiary a 20% grant (max. $500/year) and shelters income until used for education by your child;

4 Donate stock instead of cash to a charity because capital gains triggered by a donation of securities to a charity is exempt from tax;

4 Book your losses on securities this year to offset

can be applied against any capital gains in the preceding three years;

4 Place your investment trades on or before Dec. 23, 2011 to ensure settlement in 2011;

4 Defer the sale of investments at a profit by waiting until 2012 to postpone the payment of any tax on capital tax gains until early 2013, when you file your 2012 tax return;

4 Defer the purchase of mutual funds* until 2012 in order to avoid taxation on the taxable income realized in the fund in 2011;

4 Consider taking eligible dividends in 2011 instead of 2012 because the personal tax rate on eligible dividends will increase in 2012.

this year’s capital gains and any remaining losses

Krek Welcomes Jak Slavec to its Team! Krek Slovenian Credit Union is pleased to announce the appointment of Jak Slavec to the position of Financial Services/Mutual Fund Representative*. Mr. Slavec’s job will be to provide a full range of financial products and services to our members with a specific focus on mutual funds. As head of our Wealth Management area, Mr. Slavec will continue to provide our members with a high level of service and be there

in assisting them to achieve their financial goals and objectives. He has over 23 years of experience in retail sales and residential mortgages within the banking/financial industry. He has held positions with CIBC, PFSL Investment Corporation and a number of mortgage companies. In the coming weeks, he will be contacting you to arrange an appointment to introduce himself. We are very excited about the quality and level of expertise that he will bring to the organization.

CHRISTMAS HOURS

Browns Line Manning Ave.

Saturday, Dec. 24 9:00 am - 1:00 pm Sunday, Dec. 25 CLOSED Monday, Dec. 26 CLOSED Tuesday, Dec. 27 CLOSED Wednesday, Dec. 28 9:30 am – 4:00 pm Thursday, Dec. 29 9:30 am - 7:00 pm Friday, Dec. 30 9:30 am - 7:00 pm Saturday, Dec. 31 9:00 am - 1:00 pm Sunday, Jan. 1 CLOSED Monday, Jan. 2 CLOSED Tuesday, Jan. 3 9:30 am – 4:00 pm

CLOSED CLOSED CLOSED CLOSED 11:00 am – 3:00 pm closed closed CLOSED CLOSED CLOSED CLOSED

We would like to encourage members who come in regularly to obtain either a MemberCard for cash withdrawals or online access to your accounts.

*Mutual funds are offered through Qtrade Asset Management Inc., member of MFDA. Mutual funds and other securities are offered through Qtrade Advisor, a division of Qtrade Securities Inc., member of IIROC and the Canadian Investor Protection Fund.

DATE FOR ANNUAL MEETING CONFIRMED Our annual meeting will be held on Sunday, March 11, 2012 at Our Lady of the Miraculous Medal church hall, 739 Browns Line (2:30 pm)

Head Office

Branch Office

747 Browns Line, Etobicoke, Ontario M8W 3V7 Tel.: (416) 252-6527 Fax: (416) 252-2092

611 Manning Avenue, Suite 100, Toronto, Ontario M6G 2W1 Tel.: (416) 532-4746 Fax: (416) 532-5134

“ M Y C R E D I T U N I O N I S I N V E S T I N G I N M Y CO M M U N I T Y.”

Website: www.krek.ca Email: main@krek.ca lending@krek.ca


Christmas Newsletter 2011