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  • pie chart to reflect Libro's profit shares

    Libro Shares

    The philosophy at Libro is simple: you own it. That also means you get a share of the profit. Here are details about Libro shares and how you'll benefit this year.

    Membership Shares

    Ownership is represented by membership shares; $50 for adult owners and $10 for youth. Holding membership shares means you get a say in Libro's direction when there are voting opportunities.

    Class A Profit Shares

    Class A Profit Shares may be earned by every owner, subject to a minimum volume of business conducted at Libro in the past year.

    The Board of Directors declares profit shares based on annual earnings, and Libro has declared these shares every year since starting the program in 1995.

    The calculation is determined annually, this year's payout is $1.75 per $1000 (see table for more details).

    Class B Investment Shares

    Class B Investment Shares have been offered for subscription twice in Libro's history, in 1995 and 2004. They were offered for a limited time by prospectus, are not deposit-insured, and form part of Libro's capital.

    Each year the Board of Directors declares dividends after year-end financial results are available. The policy states dividends are equal to the Government of Canada three to five year bond rate plus 1%, and this has been paid annually since 1995.

    The shares come with some redemption restrictions: a maximum of 10% of aggregate outstanding shares may be redeemed in any year. The dividends are treated as interest income and owners receive a T5 for earnings and income tax reporting purposes. If shares are held with an RSP, dividend earningss are sheltered until they are withdrawn. Libro has chosen to issue these shares as part of our capital plan during times of planned fast growth. It is possible they would be offered again at some point in the future, and all owners would be made aware through broad communication.

    Sharing the Profit Pie

    This chart summarizes how Libro deposited $5.8 million in various Class A and B share payments to your account. If you didn't receive any profit shares, please talk to your Coach to find out how to make the most of the business you do with your credit union! Click here to view our profit sharing calculator.

    Transaction Description Details
    Class A Profit Shares Dividend - 2011
    • Paid in December on balances held in profit shares during fiscal 2011
    • Rate = 0.77% = average 30-day term deposit rate in effect at Libro from October 1, 2010 – September 30, 2011
    Class A Profit Shares – RSP & RIF
    • Paid in December on average registered deposit balances held per account during fiscal 2011 (excluding mutual funds*)
    • Rate = $1.75 per $1,000 (min = $5 per RSP/RIF)
    • Must be declared as income on 2011 income tax, owner will receive a T4RSP/T4RIF
    Class A Profit Shares - Loans
    • Paid in December on average consolidated loan balances held during fiscal 2011
    • Rate = $1.75 per $1,000 (min = $15 per owner combined with deposits)
    • If you are claiming an income tax deduction for interest paid on borrowings that generated this portion of profit sharing, the interest claim may need to be reduced by this amount. Please consult with your accountant.
    Class A Profit Shares - Deposits
    • Paid in December on average consolidated non-registered deposit balances held during fiscal 2011 (excluding mutual funds*)
    • Rate = $1.75 per $1,000 (min = $15 per owner combined with loans)
    • Income tax payable will be included in a T5 for all deposit interest earned from Libro, if applicable
    Note: You must earn a minimum of $15 in Class A Profit Shares to receive a payout: RSP/RIF + loans + deposits (where the $5 minimum applies).
    Class B Shares Dividend - 2011
    • Paid in November
    • Rate = 3.05% = average yield on a 3-5 year Government of Canada marketable bond + 1.00%

    *Mutual Funds are offered through Credential Asset Management Inc.