2010
value
relationships
2010 annual report
®
value in relat
table of
contents
6 Message from the Chairman and the President
8 Corporate Credit
10 Estate Trusts and Agencies
12 Corporate Marketing and Business Development
14 Finance and Administration
16 Client Profiles
24 Board of Directors
ationships
26 Corporate Governance
28 Native Art Awards
30 Native Art Contest
32 Corporate Directory
peace hills trust 2010 annual report 3
Financial highlights
Thousands
For the year 2010 2009
Earnings Before Operating Expenses and Taxes $17,802 $16,726
Operating Expenses $13,300 $13,506
Comprehensive Income $3,712 $2,372
Year End Position 2010 2009
Total Assets Under Administration $752,247 $769,409
Company Assets $516,566 $522,161
Estates, Trusts and Agencies $235,681 $247,248
Loans and Mortgages $405,924 $420,217
Deposits and Borrowings $440,386 $452,020
Equity $55,664 $52,452
peace hills trust will continue
growth while maintaining
and low
4 peace hills trust 2010 annual report
Total Assets Under Administration ($Million)
800
700
600
500
400
300
2003 2004 2005 2006 2007 2008 2009 2010
to strive for controlled
the current diversity
risk profile of our assets.
peace hills trust 2010 annual report 5
Message from the chairMan and the president
It was readily apparent by the end of 2010 that an
energetic recovery from what has become known as
the Great Recession did not materialize. The Bank of
Canada has been hesitant to make any but marginal expressed continuing confidence in the strategic
increases to the Bank Rate in case such increases direction of the company. After payment of a $.5
add to the slow down in an anemic recovery. million dividend to Samson the company remains
Instead of price signals as indicated through well capitalized with a risk based capital ratio in
higher interest rates our Finance Minister has tried excess of 16%. The Basel III capital rules which are
to limit household debt especially in relation to in response to the lack of capital adequacy evident
home ownership and home equity loans through in some major banks in relation to the risks they
rule changes and warnings that low rates will not were taking during the recent banking crises will not
last forever. Canadians are learning the tough affect Peace Hills Trust. In the latter part of 2010
lesson that unless you are borrowing to increase we began a process of refurbishing our regional
productivity you cannot borrow yourself rich. offices and intend to open at least one new location
In this slower economic environment and being in 2011. We continue to service our First Nation
committed to maintaining the quality of our customers and expand in their market as they
investment portfolio Peace Hills Trust did not reach become more mainstream and commercial. Peace
its growth targets for 2010. The balance sheet Hills is committed to helping First Nations unlock
declined a marginal $4 million. On the other hand the economic value of their lands and resources
comprehensive income at $3.7 million after tax as an integral component of strengthening their
exceeded expectations and returned a respectable communities. We are also letting main street know
7% on equity to our shareholder. Samson Cree we are open for business. Our dedicated staff is
Nation, our sole shareholder, remained steadfast willing and more than able to provide financial
in their support of the Board of Directors and services and lending to Canadian small business.
management throughout the year and have As we build the future with pride and tradition we
will make our Shareholder’s vision of a First Nation
owned financial institution from coast to coast
a reality.
...we build the future
6 peace hills trust 2010 annual report
peace hills trust
remains well capitalized
From Left to Right:
Gerald T.Kinsella, CA Warren W. Hannay David S.J. Boisvert
President & Chief Executive Officer Chairman of the Board Executive Vice President,
Credit
with pride and tradition
peace hills trust 2010 annual report 7
credit
Although the World market and economic downturn in 2010
has affected all Financial Institutions in Canada, Peace Hills Trust
continues to strive for controlled growth while maintaining the
current diversity and low risk profile of our assets.
In 2010, interim financing and commercial real estate
construction reduced in overall activity. This can be the fully funded long-term commercial mortgage
attributed to the combination of limited new projects portfolio increased by approximately $16 million
due to the economic down-turn and continued pay- or 14% at December 31, 2010 over the same period
down and payouts of our current book in this category. ending 2009. We have begun to observe selected price
The lending activity for interim construction loans discounting for inventory reductions on our current lot
recorded a net decrease year over year of approximately development loans and multi-unit residential projects.
$17 million or 44%. Overall the total commercial loan Any new projects must be priced accurately to
portfolio decreased by a net $22 million or 16%, while stimulate pre-sales and ensure reasonable absorption
rates can occur.
8 peace hills trust 2010 annual report
Peace Hills Trust was able to increase previously
compacted net interest margins during the last
fiscal year within the continued low interest rate
environment. Our continued concentrated effort
in applying prudent and conservative underwriting Stress testing the commercial real estate sector at
standards has maintained the overall risk profile the original underwriting stage and during the life
and performance of our assets. of the exposure has adequately identified levels of
Growth in the financial sector over the past three potential risk that may occur during a down turn in
years was significant in retail or consumer products the economy. Internal Capital Adequacy exercises
using real estate as security. have enhanced Peace Hills Trust’s ability to effectively
manage our capital through risk management,
Peace Hills Trust has not participated materially in
shareholder communication, corporate strategy and
“back filling” the reduction of commercial lending
overall dynamic capital management processes.
activity with consumer products such as home equity
loans or personal lines of credit. Consumer lending Peace Hills Trust will continue to strive for controlled
represents approximately only 5% of our total growth while maintaining the current diversity and
portfolio and we continue to exercise responsible low risk profile of our assets. The effective delivery
lending activity in this sector due to obvious risks of the right loan products and services utilizing our
of over extension that became very evident in the nimble infrastructure to our proven markets will
United States and more recently here in Canada. continue to be our focus.
LOAN PORTFOLIO % OF TOTAL COMMERCIAL LOANS COMMERCIAL MORTGAGES
DECEMBER 31, 2010 (000’S) DECEMBER 31, 2010 (000’S) DECEMBER 31, 2010 (000’S)
75%
$90,949 11%
30% 10% $14,738
5% 50%
7% $65,536
$8,039 22%
$28,782
23% 18%
32% $21,056
17%
$22,524
Total Loans & Mortgages Total Commercial Loans Total Commercial Mortgages
$405,924 $120,044 $131,580
Consumer Land Banking Revenue Generating – Multi-unit Residential
Commercial Mortgages Interim Financing/ Revenue Generating Other, includes
Residential Mortgages Construction Loans completed retail, office/commercial or
mixed use
Commercial Loans Non Commercial
Real Estate Non-Commercial Real Estate
Other (INAC R/D)
Hotel/Motel
peace hills trust 2010 annual report 9
estates trusts & agencies
A significant number of settlement claims continue to
flow from Canada which provides First Nations with
the capital to invest in new opportunities for economic
development and new business partnerships.
These investments can bring economic benefits to
the First Nation and surrounding communities.
Our specialized team of experienced trust
professionals is committed to working with
First Nations to help guide them through the
complex issues involved in establishing and
administering trusts and trust agreements. Peace
Hills is dedicated to providing quality training
to Chief, Council and Trustees on the operation Patti Wolroth
of the trust, and the duties and responsibilities
of Trustees, ensuring the preservation of trust Peace Hills Trust:
assets for future generations. Peace Hills offers ▪ Performs the duties and assumes the fiduciary
a full range of trustee and administrative services obligations of a corporate trustee, as outlined
tailored to the needs of the First Nation. in the Trust Indenture;
▪ Provides the trust reporting required under
the Trust Indenture and ensures that trust
documents remain in safekeeping;
▪ Carries out its duties and obligations outlined
in the Trust Indenture and processes all
receipts to, or transfers from, the trust and
all withdrawals or distributions in accordance
with the Trust Indenture;
▪ Opens accounts relating to the trust through
its agent ensuring that trust property is not
“commingled” with the assets of Peace Hills
Trust or other clients; and
▪ Carries out the investment and administration
of trust property in accordance with the Trust
Dee-Ann Dulic and Client Indenture.
10 peace hills trust 2010 annual report
May Bearhead and Jeremy Busch
Our dedicated team maintains a close
relationship with our clients from goal setting and
forecasting through investment selection, community presentations, and
ongoing communications. During each step of the process we have developed
methods to cope with both simple and complex situations and communicate
this back to our clients in an understandable manner.
peace hills trust 2010 annual report 11
2010 was a year of optimism and Peace Hills Trust is well
positioned for growth going forward.
From Left to Right:
August (Tony) Shirt Daryl Christie Jason Conant
Vice President, Vice President, Vice President,
Corporate Marketing and Controller Information Services
Business Development
12 peace hills trust 2010 annual report
corporate Marketing
& Business developMent
The Company engaged in a process to review past
performance and plan for future growth which trust of our customers. This culture reflects First
revealed the overall strength of our existing assets and Nation values and is key to helping our customers
demonstrated that we are well positioned for growth reach their goals.
going forward. Some regions have exhibited more Our marketing strategy is to promote our brand and
positive growth patterns than others; for example, products in both existing markets and new markets.
the company has been active in Saskatchewan as More effort is being put forth to show that we are
its economic growth has seen recent surges driven open for business and seeking new business. This
primarily by strong oil and gas and potash markets. is reflected in the broader base of clientele now
We have seen increased usage of all our products with utilizing our products. However, growth is pursued
the exception of interim financing, demonstrating while maintaining an eye for preserving our core
the suite of products we offer in various market clients within our various markets. Our Corporate
niches are relevant, proved right and attractive. Our Trustee services are also seeing a strong uptake in the
portfolio and policies have been tested and have First Nations market as we have made a concerted
proven that the company is well prepared to move effort to market and sell these services.
forward in what we expect will be a slow growth Going forward we will continue to market our
market in the near future. services across Canada. These efforts will be pursued
Our historically conservative and safe nature, which through our Regional Offices which will be actively
is reflected by an asset base from which to grow, seeking new business on both the banking and the
demonstrates our intention to be around for a long trust side.
time. This business philosophy moves us forward at We have also started the process of refreshing
a pace that is manageable, profitable, is beneficial our Regional Offices starting with our Edmonton
to our customers and reflects that we are committed location. This office now sports a new look which
to their long-term goals. We have a clear sense of will carry us into the future. Along with this aesthetic
shared purpose and complementary values with refresh comes a new cash management system which
our customers. will streamline our processes and provide better
Of course none of our achievements would be services to our customers. We are also looking at
possible without the right staff. We are proud of opportunities to open new branches and 2011 will
our employees and the dedication they show to our bring a new office into our system, location to be
customers and our Company, which is confirmed on announced.
a daily basis. Our staff is committed to building and We are excited about the opportunities and
maintaining strong relationships with our clientele challenges ahead. We feel good about our growth
and working to add value to the financial services plans. Our staff is ready for the challenges and
we provide. Our employees are motivated to work motivated to provide quality financial services to our
with our customers to help them achieve their wealth valued customers. Our products are relevant and
creation goals. Peace Hills Trust staff have the right priced right. This leaves us well positioned for both
attitude and work together as a team to earn the our asset growth and our plans to refresh and grow
our business to better serve our clients.
peace hills trust 2010 annual report 13
Finance & adMinistration
The global economy rebounded in 2010 with million in 2009 to $14.3 million in 2010. Peace
most major economies showing positive growth in Hills experienced this improvement as a result of an
Gross Domestic Product (GDP). This followed one increased spread on lending products and increased
of the worst recessions in decades. The recovery, investment returns.
however, was dampened by sluggish job growth in Other income of $3.0 million and a recovery of
many advanced economies and financial market credit losses of $0.5 million coupled with the $14.3
uncertainty created by sovereign debt problems in million in net interest income exceed operating
some European countries. expenses of $13.3 million resulting in income before
Canada escaped the most severe effects of the income and capital taxes of $4.5 million. From this
2009 recession and in 2010 experienced a modest we deduct $1.1 million in taxes, and the result is net
economic recovery which started with a robust GDP income before other comprehensive income of $3.4
growth rate in the first quarter that tapered off to million. By adding other comprehensive income, net
more modest gains by year’s end. The economy of future income taxes, of $0.3 million we arrive at
has been bolstered by increased global demands net income for the year of $3.7 million. Peace Hills
for commodities, strong growth in residential Trust has generated increased revenues and margins
construction and a rebound in manufacturing while holding non-interest expenses steady in order
industries. The U.S. is Canada’s largest trading to produce these positive results.
partner and therefore the slow recovery in the U.S. On the Balance Sheet, Peace Hills Trust reports
is a concern. A dampened demand from the U.S. a decrease in assets of 0.9% from $521.3 million
coupled with a strengthening Canadian dollar will in 2009 to $516.6 million at the end of 2010.
continue to challenge exporters. Nevertheless, with Mortgages, both residential and commercial,
strong growth in emerging market economies, witnessed an increase while this growth was
commodity markets are expected to remain solid more than offset by a decrease in the commercial
throughout 2011, benefiting the commodity loan portfolio.
producing regions of Canada. Interest rates
remained at historic lows through much of 2010, Interest rate risk is the risk that changes in interest
with the Bank of Canada increasing rates by ¾% in rates will have an adverse effect on an institution’s
the latter part of the year in response to signs of earnings and net asset values. Interest rate risk
economic improvement in the nation. arises when an institution’s principal and interest
cash flows have mismatched pricing dates.
Peace Hills Trust followed the Canadian trend in
2010 evidenced by a stable balance sheet and with A financial institution can be asset sensitive where
the benefits of increased revenues and net income. assets re-price before liabilities or liability sensitive
Lois Hamilton where liabilities re-price faster than assets. The
Net interest income is defined as the difference amount of risk an institution faces is a function of
between revenues earned on mortgages, loans, and its sensitivity position and the size and direction of
investments, and the interest paid on deposits and interest rate changes.
debt. Net interest margin is the ratio of net interest
income to average assets for the year. At Peace Hills Peace Hills Trust’s balance sheet has an asset
Trust net interest margin increased from 2.20% in sensitive profile which means that as interest rates
2009 to 2.61% in 2010. This was the result of a $2.1 rise, so does net interest income. Both prime-based
million increase in net interest income from $12.2 core assets and money market investments being
held for liquidity purposes will feel the impact
14 peace hills trust 2010 annual report
as rates fluctuate. For the past few years the
decreasing and low interest rate environment has
meant that Peace Hills’ interest rate margin has felt
considerable pressure. As rates rise, like they did in
the latter part of 2010, Peace Hills will benefit from
an increasing interest rate margin.
Managing interest rate risk is an integral part of
prudent management. The Board of Directors of
Peace Hills Trust has adopted formal interest rate
risk policies. Management monitors the portfolios
on a daily basis and reports to the Board of
Directors concerning adherence to policy.
Janet Shumka and Bonnie Dove
Liquidity risk is the risk that funds will not be
available to honour all cash outflow commitments Capital is the investment in a business by its
as they come due. Specifically, it is necessary for a shareholders. Shareholders rank behind depositors
financial institution to be able to fund loans and and creditors on liquidation and thus capital
return depositors’ monies on agreed dates while is available to absorb any losses incurred in
maintaining prudent amounts of cash or near cash operations. Capital provides a basis for confidence
assets. Liquidity management entails the monitoring for depositors and creditors. Capital is measured in
of cash inflows from deposit sources, revenue flows two ways; a capital to assets multiple and a capital
and convertible assets and being able to match to risk weighted assets ratio. Regulation requires
these cash inflows with outflow requirements. The that both capital tests be met continuously in
Board of Directors has adopted a formal liquidity order for a company to accept deposits from the
risk policy, and management monitors cash flows public and continue to grow. Peace Hills Trust has
and reports to the Board of Directors concerning $55.2 million of Tier 1 capital and $6.1 million of
adherence to policy. The Company’s policy is to Tier 2 capital leaving the Company well within the
maintain prudent levels of very secure and liquid parameters of both capital tests at December 31,
investments, to pursue new funding sources, and 2010 (see Note 14 to the Financial Statements).
to generate cash from internal sources, all of which Samson Cree Nation has always reinvested the
must be sufficient to support customer activity and operating profits of Peace Hills Trust and shown
overall growth. a willingness and ability to support the capital
needs of the Company. This support is integral to
our stability and our ability to grow. The Board
of Directors has adopted a formal capital policy
outlining the quantity and quality of capital
the Company must maintain, which they review
and renew on an annual basis. They also have
management prepare five year capital forecasts so
that it is possible to determine, within a range, what
activity is necessary to achieve long term goals.
The Company’s capital position is monitored on
an ongoing basis and is considered adequate for
current and strategic purposes.
Ruth Semeniuk and Elliot Young
peace hills trust 2010 annual report 15
client proFiles
Hobbema
MasKWacis cultural college
Vision In 1997, the College allied with the other private and public post-
“The Maskwacis Cultural College is the Centre of Excellence for secondary institutions in the province through the Alberta Council
Academics and Cree Indigenous Knowledge. “ on Admissions and Transfers. Through ACAT, Maskwacis College
university level courses have been accepted for transfer to other
The Maskwacis Cultural College was established in 1974 by the
institutions. Students at MCC can complete two years of many
four Cree Nations of Hobbema under the leadership of Chief Frank
degree tracks and transfer directly to university. All new courses
Buffalo of the Samson Cree Nation, Chief Maurice Wolfe of the
and programs developed by the College are put through the ACAT
Ermineskin Tribe, Chief Peter Bull of the Louis Bull Tribe and Chief
process for approval. Other formal arrangements with colleges and
Marvin Buffalo of the Montana Band. In l976 MCC incorporated
government departments have brought program acceptance for
under the Corporations Act of Canada, with the four Chiefs as the
licensing and professional recognition.
first Governors. This was the beginning of this private, First Nation
owned College. Accreditation means recognition of our high standards, and
acceptance within the wider education community and has provided
Increasing demand resulted in a more formal organization of the
students from the surrounding communities who want to start
College for post-secondary studies in l986. Programs were designed
university without leaving home and who want a more intimiate
and presented in co-operation with universities and colleges from
and supportive setting to bridge from high school to the larger
the public system. Some Maskwacis Cultural College programs,
institutions.
independent of other institutions were developed. One of the most
needed was the Cree Language Instructor Training Program, which Today, the College operates as a corporation owned by the Four
has been ongoing since, and gives language teachers recognition Nations of Hobbema. It is governed under the Maskwacis Cultural
for their expertise by their communities, a framework for working College Act through By-laws duly passed at the AGM of the
effectively in the schools. This program has attracted participants Corporation. The Board of Governors provides policy direction.
from across Canada. The Executive Director, employed by and reporting to the Board is
responsible for the implementation of policy and directives set by
In 1988, the Maskwacis Cultural College Act (Bill PR 20) was passed
the Board.
by the Legislative Assembly of Alberta. Now a recognized private
post-secondary institute, the College had authority to grant one- At all levels, MCC , while being sensitive and receptive to the needs
year certificates and two-year diplomas. A burgeoning number of of the community, strives to be true to its traditional and cultural
programs came into existence under this new authority. origins, to be conscious of the natural way of learning and the values
held sacred and transmitted to us by the Keteh-ayahk (Elders).
16 peace hills trust 2010 annual report
client proFiles
edmonton
heart laKe First
nation econoMic
developMent
The Heart Lake First Nation is actively pursuing a
variety of business opportunities within Heart Lake Aramark Remote Services: Partnering with Aramark
traditional lands via joint ventures, partnerships, in camps currently with Devon and CNRL.
or memorandum of understanding, working with
Filterboxx Water and Environment: Provides water
qualified industry partners, and is currently active in
and sewage treatment facilities for camp operations.
the following companies:
Infracrete: Heart Lake has the sole distribution and
Heart Lake Construction: The largest and most
installation rights in Northeastern Alberta for a
active of the Heart Lake companies operates under an
product that is used to create a very high load bearing
MOU with Site Energy Services (formerly Timberline
soil cement.
Industries) employing approximately 85 people. Their
major clients include Cenovus at Foster Creek, CNRL SavannaEnergy: 50% partner in a drilling rig currently
at Kirby, MEG Energy, StatoilHydro and Deven. active in the Grand Prairie area.
Heart Lake Gravel: Provides gravel crushing, gravel Janvier/Heart Lake Forestry Inc.: Runs a full service
supply, and trucking services with partner Quantum/ logging operation currently working for Alpac.
JMB Crushing, under a 3 Year gravel supply contract Pimee Well Services Ltd.: 1/6 owner with 5 other
with CNRL. First Nations in a fleet of 10 service rigs active in
Heart Lake Truck Stop: Heart Lake owns and Northeastern Alberta.
operates a truck stop, gas bar, convenience store, Four Lakes Drilling Inc.: Partner in Rig #298 operated
including a Husky bulk fuel cardlock and Neufeld by Precision Drilling currently under contract with
Propane distribution centre. Encana.
Heart Lake is optimistic for the future and continues
to strive for excellence.
peace hills trust 2010 annual report 17
client proFiles
Winnipeg
WayWayseecappo First nation
Waywayseecappo First Nation is a proud and progressive
community with a vision of independence and self-sustainment.
Waywayseecappo First Nation currently owns and operates a
This is reflected in the mission statement:
variety of businesses, which include the Gas Bar Convenience
“The successful development, implementation and operations Store; Grocery Store; Post Office; VLT Gaming Center;
of profitable business ventures will provide economic Restaurant/meeting rooms; and the Wolverines Junior A
strength and opportunity for community and the surrounding Hockey Team. The First Nation also owns and operates a 1500
rural areas.” seating arena complex and a 700 seating bingo facility.
Waywayseecappo is a large rural community with a population Other facilities and programs that are in operation are a Day
of 2000 people. The Waywayseecappo First Nation is a Care Center, Health Office, Child & Family Services Office, and
member of Treaty Four and participates in negotiations and Youth Center. The Waywayseecappo First Nation, through our
economic development ventures alongside other Treaty Four currently owned business ventures, enhances all programs.
Communities. The First Nation is located in the picturesque
The Waywayseecappo First Nation is currently involved in the
Birdtail River Valley in the Parkland area of Western Manitoba,
purchase of land off reserve, which will be used to generate
250 kilometers northwest of Winnipeg. The land base of
revenue and provide employment.
the community supports agricultural farming of various
cereal grains. The political infrastructure of the community is stable as
the Chief & Council has been and continues to be visionary,
In 1987, Wawywayseecappo committed to a long-term plan for
entrepreneurial and instrumental in the development of
the development of community wealth to improve and enhance
the community’s businesses with the support of the Band
the socio-economic conditions of the First Nations people.
Memberships.
18 peace hills trust 2010 annual report
client proFiles
calgary suBWay
Marsha Graham and Donald Graham
694174 Alberta Ltd. and 867961 Alberta Ltd. are wholly
owned by Donald Graham and Marsha Graham respectively. has relocated and upgraded their food court. This location
The Graham’s began their long journey as successful franchise consistently performs in the top 2 franchises in the mall,
operators after Don’s early retirement. Donald came out of with their combined locations performing within the top 15
retirement to start his own business which he later sold. in Alberta.
In the late 90’s they were approached to partnership in The Graham’s attribute their continued success to their
a Subway franchise located in the South Centre Mall in firm belief in hands on management and operations of
southwest Calgary. They approached Peace Hills Trust for the franchises. The Graham’s possess commitment and
financial assistance to help make their dreams come true. entrepreneurial spirit, both working in each location
Approximately five years later, they bought out their partner overseeing a staff of 20 employees and ensuring the quality of
and became sole owners of their first Subway franchise. product and service.
Later that same year, they had the opportunity to purchase “From the first time we approached Peace Hills Trust, they
a second franchise location, of which Peace Hills Trust have been fully supportive of our growth and endeavors as
assisted with their endeavors. Recently, the South Centre Mall entrepreneurs. We are very satisfied with our relationship with
Peace Hills Trust and are thankful for their role as lenders for
small business.”
peace hills trust 2010 annual report 19
client proFiles
saskatoon
WanusKeWin heritage parK
Living in Harmony
Wanuskewin Heritage Park is a
National Historic Site, a Northern
Plains cultural interpretive
centre located 5 kms north
of Saskatoon, Saskatchewan,
Canada. The place to meet,
share, and learn through history,
nature and each other.
The importance of this site was
not fully appreciated until the
1980’s when Dr. Ernie Walker
further identified the area as an
archaeological marvel.
The Meewasin Valley Authority
purchased the property in 1983.
A year later it was sold to the
City of Saskatoon and Queen
Elizabeth II officially declared it
a National Heritage Site in 1987.
Wanuskewin opened to the public in 1992 through the vision
and partnerships of First Nations and non-First Nations.
Wasnuskewin is a good example of living and working
in harmony.
In 2007, Wanuskewin began an infrastructure project entitled
Phase I, with the support of the City of Saskatoon, the Province
of Saskatchewan, the Department of Canadian Heritage and
Peace Hills Trust Company. This multi-year renewal project will
culminate with a Phase II, Exhibits enhancement.
20 peace hills trust 2010 annual report
client proFiles
Fort Qu’appelle
cote First nation
Cote is an Ojibway (Saulteaux) First Nation located 16 kms
west of the Manitoba-Saskatchewan Border in Treaty 4 Mee-May Hillside Lodge a restaurant and lounge along
territory. Until recently, the primary economic resource was with 12 rooms;
agriculture. The First Nation’s economics changed in late
Cote Coffee Shop was created via on-reserve renovations
2008 with the ratification of the Cote Onakwawek Trust.
to existing property;
The Trust has provided funds for major economic growth
and related employment opportunities in and around the Cote Market Developments located on-reserve; this
First Nation’s lands. large, bright, full-service grocery store opened in 2010
and provides quality grocery items for local membership,
In conjunction with the Trust settlement, Chief and Council
neighboring First Nations and the nearby Town of
developed a “Moving Forward Economic Development
Kamsack, SK.
Strategy” which includes direction on the purchase of
a number of businesses owned by Cote First Nation and New housing, capital equipment acquisition, community
operated by Cote Band Members including: infrastructure, education and recreation programs have also
been a priority during this new period of economic growth.
Duck Mountain Lodge was purchased in 2009. Located in
Duck Mountain Provincial Park includes a hotel, condos, Currently, Chief Norman Whitehawk and the Council are
cabins, restaurant and marina; in the final stages of negotiating another specific claim,
which will provide compensation on lost lands and use.
Chief and Council continue to strive to provide good
governance for all membership in a spirit of transparency
and accountability.
peace hills trust 2010 annual report 21
client proFiles
Kelowna Ki-loW-na
Friendship
society
L-R:Christina Verhagen (Treasurer of the Board), Ann Bell (Secretary of the Board),
Mike Evans (Member of the Board), Dinah Littlechief (President of the Board) and Gilly
Alook (Vice-President of the Board). Missing from the photo is our Youth Representative
The Ki-Low-Na Friendship Society is proud to announce Zachary Romano and Sharon Bond (Member of the Board).
it’s 37th Anniversary as a non-profit organization with an
open door policy to the First Nation people and the general building on Leon Avenue and the organization continues
public in Kelowna and the surrounding area, for program and to operate from this location today. Continued growth and
service delivery. further expansion is evident with the acquisition of other
Ki-Low-Na Friendship Society was founded in May of 1973 commercial properties for program services and delivery.
and incorporated under the “Society’s Act” on January 9th The Ki-Low-Na Friendship Society is commended on meeting
1974. The Ki-Low-Na Friendship Society staff provide social, and exceeding all challenges of urban program delivery
educational, healing and celebratory programs that help governed by its Board of Directors, 44 staff employees, summer
people to enhance their lifestyle as traditional teachings are students and not to mention the personal commitment of
integrated into all of the Society’s services. many volunteers of our community. Ki-Low-Na Friendship
The earlier years brought several changes in location for the Society will continue to meet the needs of the First Nations
Society. In 1981 the Society purchased the property and peoples and the general public of the Kelowna area as the City
of Kelowna grows while maintaining and supporting a healthy
active living lifestyle.
22 peace hills trust 2010 annual report
client proFiles
Fredericton
earthly enhanceMents landscaping
William (Bill) nash, owner/operator
Mr. William (Bill) Nash is a member of the St. Mary’s
First Nation in New Brunswick. Bill started working early
in with St. Mary’s Tree Service, a local business owned by what it is today. His equipment inventory has expanded
the late Lee Polchies. Mr. Polchies taught Bill that hard to include several chainsaws, trimmers, lawn mowers and
work, dedication, a keen business acumen and in depth a truck and trailer. His services have also expanded to
knowledge and understanding of your trade is required include all aspects of the landscaping industry, such as
to successfully operate your own business. The St. Mary’s tree and stump removal, hedge and tree trimming/pruning,
First Nation began to expand with the addition of a new walkway installation, creating/repairing lawns, garden
subdivision. In 2007, after consultation with his mentor, Bill tilling, tree and flower gardens and any other landscaping
began his own landscaping business because he recognized request a customer may have. He maintains four (4) full
the need for a landscaping business. He named it Earthly time employees from the community during peak summer
Enhancements because it was symbolic of the connection months. He not only employs them, but also passes on the
between First Nations People and Mother Earth. knowledge that was taught to him. Bill leads by example.
The business began as a lawn mowing business with one Bill is a firm believer in giving back to the community. He
man, a lawn mower and a trimmer. Thanks to a solid work sponsors a local softball team and volunteers his services
ethic a reputation of quality service delivered on time to maintain the community ball field. In 2010 Earthly
and at a reasonable rate, he has grown the business to Enhancements won the Ulnooweg Development Group
Business of the Year – New Brunswick Award. We would
like to congratulate Mr. Nash and look forward to continue
our long relationship with Earthly Enhancements.
peace hills trust 2010 annual report 23
Board oF
directors
Warren W. Hannay Rose Saddleback
Chairman Vice Chair
Victor S. Buffalo Florence Buffalo
Robert Swampy Chief Marvin Yellowbird Ray Ahenakew Chief Stewart Paul
24 peace hills trust 2010 annual report
Executive Committee
Victor S. Buffalo
Warren W. Hannay
Chief Robert Louie
Rose Saddleback
Chief Marvin Yellowbird
Gerald T. Kinsella
Audit Committee
Chief Robert Louie, Chairman
Boyd Robertson
Ted Fontaine
Chris Hopfner
Investment Committee
Ted Fontaine Thomas Amgwerd Boyd Robertson Thomas Amgwerd, Chairman
Rose Saddleback
Chief Marvin Yellowbird
Florence Buffalo
Conduct Review
Committee
Chief Stewart Paul, Chairman
Ted Fontaine
Florence Buffalo
Loans Committee
Boyd Robertson, Chairman
Victor S. Buffalo
Warren W. Hannay
Robert Swampy
Chris Hopfner
Chief Robert Louie Gerald T. Kinsella Chris Hopfner
peace hills trust 2010 annual report 25
corporate governance
The Directors of Peace Hills Trust have a duty, Glenda Swampy
pursuant to the Trust and Loan Companies
Act (“the Act”), to manage or supervise the
Management must formulate strategic goals, draft
management of the business and affairs of the
plans, and devise methods to attain these goals.
Company. The Board of Directors (the Board”) is
The Board provides a setting to examine and
appointed by the shareholders of Peace Hills Trust.
question the goals and strategies. The Board meets
The Board, in turn, delegates the management
on a regular basis, to receive committee reports,
of the Company to its officers and then provides
review financial statements in relation to business
competent, independent and ethical guidance in
plans and previous performance, review issues
attaining the strategic goals of Peace Hills Trust and
related to legislative and regulatory compliance and
protecting stakeholder value. Corporate governance
receive reports concerning areas of business risk.
has been an on going process at Peace Hills Trust.
The Board is expected to be aware of the strategic
Corporate governance has gained new impetus
risks faced by the Company in its environment
in the past few years due to some well publicized
and the Board is to establish risk management
national corporate disasters. The Office of the
policies to mitigate against the risks. The Board has
Superintendent of Financial Institutions and the
established policies for prudent risk management in
Canada Deposit Insurance Corporation have issued
the areas of credit, liquidity, capital, interest rates
renewed standards for sound business and financial
and portfolio investments which are reviewed and
practice and good corporate governance. The
approved annually. At each meeting of the Board,
Board of federally regulated financial institutions is
reports are accepted by the Board which provide
expected to provide the highest level of independent
proof of adherence to policy standards. The Board
oversight of management and operations. To this
has delegated certain responsibilities to its various
end, the Board has an Executive Committee, an
committees. When the committees meet they must
Audit Committee, a Conduct Review Committee,
report their activities to the Board at its next meeting
a Loans Committee and an Investment Committee.
The committees, except for the Executive
Committee and Loans Committee, are comprised ExECuTIVE CommITTEE
of a majority of unaffiliated directors as defined The Board has delegated to the Executive
in the Act. The committee mandates are reviewed Committee all powers of the Board except those
annually and ratified by the Board as a whole. The prohibited by the Act. The Executive Committee
Board has also drafted a code of conduct for the is involved in succession planning, executive hiring
Company, which reviews the code annually and and compensation decisions aided by outside
ensures that it is complied with throughout the consultants.
Company. To fulfill its mandate, the Board must
ensure that there is clear, effective and timely AuDIT CommITTEE
communication between itself and management. The Audit Committee is comprised of directors
who are not affiliated with the Company or the
Shareholder.
26 peace hills trust 2010 annual report
The Audit Committee:
▪ reviews the annual statement of the Company
before the annual statement is approved by the ▪ reviews all proposed transactions with
directors; related parties;
▪ reviews such returns of the Company as the ▪ reviews the practices of the Company to ensure
Superintendent of Financial Institutions Canada that any related party transactions that may have
may specify; a material effect on the stability or solvency of the
▪ requires management of the Company to Company are identified; and
implement and maintain appropriate internal ▪ reports to the Superintendent of Financial
control procedures; Institutions, Canada on its mandate,
▪ reviews, evaluates and approves those procedures; responsibilities and proceedings.
▪ reviews such investments and transactions
that could adversely affect the well being of INVESTmENT CommITTEE
the Company as the auditor or any officer of No committee member is an officer or employee of
the Company may bring to the attention of the the Company. The Investment Committee monitors
committee; and the investment practices of the Company to ensure
they are prudent and adhered to.
▪ meets with the external auditor to discuss the
annual statements
LoANS CommITTEE
▪ meets with the internal auditor of the Company The Board has delegated to the Loans Committee
and with management of the Company to the power and authority to:
discuss the effectiveness of the internal control
procedures established for the Company. ▪ establish credit limits;
▪ adjudicate loans that exceed the limits delegated
CoNDuCT REVIEW to management;
CommITTEE ▪ determine portfolio mix including diversity,
The Conduct Review Committee is comprised of maturity profile, liquidity and yield;
directors who are not affiliated with the Company. ▪ review problem loans, impaired loans and loss
No committee member is an officer or employee of provisioning; and
the Company.
▪ ensure that the lending practices of Peace Hills
Trust are sound and prudent.
The Conduct Review Committee:
▪ establishes and reviews annually the guidelines
for related party transactions; The Board, comprised of shareholders and
▪ sets and reviews annually the amounts for independent members from across Canada, bring
nominal value transactions; financial, legal, political and business experience
to the business affairs of the Company. Through
▪ establishes procedures for the review of an annual review of a five year strategic plan and
transactions with related parties; an analysis of current business events, the Board is
able to move Peace Hills Trust forward in its mission
of operating a full service trust Company on a
national basis with an emphasis on First Nations
communities.
peace hills trust 2010 annual report 27
native art awards
cereMony & shoW 2010, KeloWna, Bc
1st Place, Keith Nolan, Legal, Alberta 2nd Place, Gail Duiker, Red Pheasent, Saskatchewan
3rd Place, Brad Henry and Christina Moore, Ottawa, Ontario
Honourable mention, Lee Adele Deranger, Calgary, Alberta
28 peace hills trust 2010 annual report
The 2010 Peace Hills Trust Our branch in Kelowna and the Westbank First Nation
welcomed over 300 guests including Chief Robert Louie,
Native Art Awards Ceremony Westbank First Nation, Mayor of the District of West
Kelowna, Doug Findlater and the Mayor of Kelowna, Sharon
& Show was hosted at the Sheperd, plus many other special guests from the British
Coast Capri Hotel in Kelowna, Columbia area.
Keith Nolan of Legal, Alberta was our 1st Place Winner, Gail
BC on November 10, 2010. Duiker, of the Red Pheasant Cree Nation, Saskatchewan
won 2nd Place and Brad Henry and Christina Moore of
Ottawa, Ontario won 3rd Place. Honourable mention went
to Lee Adele Deranger of Calgary, Alberta. Cassandra Louie
was presented with her 1st Place award for winning in the
Youth 14-17 age category.
We would like to thank all of the artists for submitting their
wonderful work and look forward to next year’s show.
peace hills trust 2010 annual report 29
peace hills trust
invites suBMissions For the
native art contest
30 peace hills trust 2010 annual report
Cash Prizes
Adult Categories 1st $2,500 2nd $1,500 3rd $1,000
Youth Categories 1st $150 2nd $100 3rd $75
Entry deadline: SEPTEmBER 16, 2011
Winning adult piece will be used on the Peace Hills Wall Calendar.
Submitted art will be made available for sale at the Peace Hills Trust
Art Show.
For full contest details, visit www.peacehills.com
peace hills trust 2010 annual report 31
HEAD oFFICE
Samson Mall
Samson Cree Nation Reserve
P.O. Box 60
Hobbema, Alberta T0C 1N0
Telephone: (780) 585-3013
corporate
Fax: (780) 585-2216
CoRPoRATE oFFICE
Peace Hills Trust Tower
10th Floor, 10011 – 109 Street
Edmonton, Alberta T5J 3S8 directory
Telephone: (780) 421-1606
Fax: (780) 426-6568
E-mail: pht@peacehills.com
www.peacehills.com
REGIoNAL oFFICES
Calgary Fort Qu’Appelle Kelowna
Stephen Buffalo Sharon Winch Scott Baldwin
Regional Manager Regional Manager Assistant Vice President
8408 – Elbow Drive S.W. 298 Broadway Street West BC Region
Calgary, Alberta T2V 1K7 Fort Qu’Appelle, Saskatchewan S0G IS0 Suite 100, 515 Highway 97 South
Telephone: (403) 299-9730 Telephone: (306) 332-2230 Kelowna, British Columbia VIZ 3J2
Fax: (403) 299-9749 Fax: (306) 332-1886 Telephone: (250) 769-9081
E-mail: calgary@peacehills.com E-mail: fortq@peacehills.com Fax: (250) 769-9082
E-mail: kelowna@peacehills.com
Calgary Sub Office Fredericton
Tsuu Tina First Nation Todd Ebbett Saskatoon
9911 Chiila Blvd. Regional Manager Kelly Bitternose
Tsuu Tina First Nation, AB T2W 6H6 150 Cliffe Street Regional Manager
Fredericton, New Brunswick E3A 0A1 103C Packham Avenue
Calgary Trust Office Telephone: (506) 455-3430 Saskatoon, Saskatchewan S7N 4K4
Georgina Villeneuve Fax: (506) 455-3405 Telephone: (306) 955-8600
Senior Trust Manager E-mail: fredericton@peacehills.com Fax: (306) 955-0344
Trusts & Agencies Calgary Sub Office E-mail: saskatoon@peacehills.com
Box 350, 9911 Chiila Blvd, Hobbema
Tsuu T’ina Nation Leslie Calhoun Winnipeg
(Sarcee), AB T2W 6H6 Regional Manager Carol Borse
Telephone: (403) 238-8244 Samson Cree Nation Reserve Regional Manager
Fax: (780) 426-6568 P.O. Box 60 244 Portage Avenue
E-mail: georgina.villeneuve@peacehills.com Hobbema, Alberta T0C 1N0 Winnipeg, Manitoba R3C 0B1
Telephone: (780) 585-3013 Telephone: (204) 943-8093
Edmonton Fax: (780) 585-2216 Fax: (204) 943-8251
Harold Baram E-mail: hobbema@peacehills.com E-mail: winnipeg@peacehills.com
Assistant Vice President
Northern Alberta Region Winnipeg Sub Office
Peace Hills Trust Tower Brayden Nichols
Main Floor, 10011 – 109 Street Assistant V.P., Operations
Edmonton, Alberta T5J 3S8 Telephone: (204) 889-4327
Telephone: (780) 421-1229 Swan Lake First Nation
Fax: (780) 425-1005 Unit #2 Rm #5
E-mail: edmonton@peacehills.com 4820 Portage Ave.
Headingley, MB R4H 1C8
32 peace hills trust 2010 annual report
Board of Directors Conduct Review Committee Legal Status
Federally incorporated under the Trust Companies
Warren W. Hannay, Chairman Chief Stewart Paul, Chairman
Act of Canada, November 19, 1980
Rose Saddleback, Vice Chair Ted Fontaine
Victor S. Buffalo Florence Buffalo Registered in the following jurisdictions:
Florence Buffalo British Columbia, Alberta, Saskatchewan, Manitoba, Ontario,
New Brunswick, The Yukon, Northwest Territories
Robert Swampy Loans Committee
Chief Marvin Yellowbird Boyd Robertson, Chairman
Approved Lender
Ray Ahenakew Victor S. Buffalo Canada Mortgage & Housing Corporation (CMHC)
Chief Stewart Paul Warren W. Hannay Small Business Loans Act
Ted Fontaine Robert Swampy First Nation Market Housing Fund
Thomas Amgwerd Chris Hopfner
Boyd Robertson Registered Administrator
Chief Robert Louie Indian Affairs & Northern Development Canada Indian Pension
Officers Plan Funding
Gerald T. Kinsella
Gerald T. Kinsella, C.A. National Aboriginal Capital Corporations Association
President & Chief Executive Officer
Executive Committee David S.J. Boisvert member of
Victor S. Buffalo Executive Vice President, Credit Canada Deposit Insurance Corporation (CDIC)
Warren W. Hannay Daryl Christie Canadian Payments Association
Vice President, Controller Interac Association
Chief Robert Louie
Rose Saddleback Jason Conant MasterCard
Vice President, Information Services Risk Management Association
Chief Marvin Yellowbird
Gerald T. Kinsella Tony Shirt
Vice President, Corporate Marketing
& Business Development
Audit Committee
Chief Robert Louie, Chairman
Boyd Robertson
Ted Fontaine
Chris Hopfner
Investment Committee
Thomas Amgwerd, Chairman
Rose Saddleback
Chief Marvin Yellowbird
Florence Buffalo
For further reference the financial statements of Peace Hills Trust may be found at www.peacehills.com
peace hills trust 2010 annual report 33
credits
Annual Report Coordinator
Erin Buffalo, Corporate Marketing Representative
Peace Hills Trust Company
Photography
Redhaus Photography
Edmonton, Alberta
Kelly Redinger,
Sherwood Park, Alberta
Canora Photography and Framing, Craig Popoff
Canora, Saskatchewan
Design and Print Production
Direct Focus Marketing Communications Inc.
Winnipeg, Manitoba
®
34 peace hills trust 2010 annual report
value
relationships
®