2018 Annual Report

Gains (or losses) resulting from differences between the assumptions used to value defined benefit pension plans and what actually occurred and the effects of changes in the assumptions.

Allowances provided at a level that management considers adequate to absorb all expected credit-related losses from its loan and debt securities portfolios. The allowance is estimated considering future macroeconomic scenarios for performing assets and net realizable value for non-performing assets.

Amount at which a financial instrument is measured at initial recognition, minus principal payments, plus or minus cumulative amortization of any difference between the initial amount recognized and the maturity amount, minus any reduction for impairment.

Total assets plus financial assets that are managed by a third party on behalf of members and clients. The credit union provides administrative services such as placing trades on behalf of members and clients.

Amount at which an asset or liability is recognized on the Consolidated Balance Sheet.

Derivatives used to hedge exposure to variability in cash flows that are attributable to a particular risk associated with a recognized asset or liability that could affect profit or loss.

The financial facility and trade association for the B.C. and Ontario credit union systems. Owned and funded by the credit unions, Central 1 provides services for over 250 financial institutions across Canada.

A component of capital,as defined by OSFI, which is primarily comprised of member’s equity (class B shares, retained earnings and accumulated other comprehensive income) less deductions for goodwill, intangible assets, and other items as prescribed by OSFI, divided by risk-weighted assets

Risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation.

Amounts of income taxes payable or recoverable in future periods as a result of temporary differences between the carrying amount of an asset or liability in the financial statements and its carrying amount for tax purposes.

Financial contracts whose value is derived from interest rates, foreign exchange rates, or other financial indices.

Rate that exactly discounts estimated future cash payments or receipts through the expected life of a financial instrument to the net carrying amount of the financial instrument.

Degree to which a fair value hedge is effective in achieving offsetting changes in fair value attributable to the hedged risk.

The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Adjusting to fair value is referred to as “mark-to-market”.

Derivatives used to hedge exposure to changes in fair value that are attributable to a particular risk associated with a recognized asset or liability that could affect profit or loss.

Designated equity instruments and debt instruments that meet the criteria that are measured at fair value with fair value adjustments recorded in othercomprehensive income within equity.

Non-derivative financial instruments that are acquired principally for the purpose of selling in the near term or for which there is evidence of a recent actual pattern of short-term profit-taking. Financial instruments may also be designated as FVTPL when the designation eliminates or significantly reduces measurement or recognition inconsistencies that would otherwise arise from measuring financial assets, or from recognizing gains and losses on them, on different bases.

Regulatory agency of the provincial Ministry of Finance responsible for regulating B.C. credit unions under the Financial Institutions Act and the Credit Union Incorporation Act.

Contracts that oblige one party to the contract to buy and the other party to sell an asset for a fixed priced at a future date.

Risk management strategy used to manage exposures to interest rate fluctuations, foreign currency risk, and other market factors as part of its asset/liability management program.

Harm that occurs when objective evidence is identified suggesting that a portion or all of an asset’s carrying value is not expected to be recovered.

A regulatory metric that measures the financial health of a financial institution, as defined by OSFI, and which reflects Tier 1 capital divided by the sum of on-balance sheet and specified off-balance sheet exposures, net of specified adjustments.

A regulatory metric, as defined by OSFI, that reflects the proportion of highly liquid assets held to ensure a financial institution’s ongoing ability to meet its short term obligations.

Difference between revenues generated by interest-bearing assets, primarily loans, and the cost of servicing interest-bearing liabilities, primarily deposits.

Net interest income expressed as a percentage of average total assets.

Operating expenses incurred by a financial institution that are not related to deposit costs or financing expenses.

Amount on which cash flows for derivative financial instruments are based.

Independent agency of the Government of Canada that supervises and regulates federally regulated financial institutions, trust and loan companies, as well as private pensionplans subject to federal oversight.

Ratio that shows the organization’s efficiency by comparing non-interest expenses to revenues, which for a financial institution is comprised of net interest income, fees and commission and other income.

Contracts in which one party grants the other party the future right to buy or to sell an exchange rate, interest rate, financial instrument or commodity at a predetermined price at or by a specified future date.

Fair value adjustments of financial instruments that in accordance with International Financial Reporting Standards are not recognized in the Consolidated Statement of Income but affect Members’ Equity directly.

Amount added to or subtracted from the allowance for credit losses in a reporting period to bring it to a level that management considers adequate to absorb all credit-related losses in its loan portfolio.

Liabilities of uncertain timing or amount that are unrelated to credit issues.

Indicator used to assess the profitability of the organization and to evaluate how efficiently it is utilizing its assets in comparison to peers in the same industry. The ratio is calculated by taking net income and dividing by average total assets.

Indicator used to assess the profitability of the organization by evaluating how much profit it generates with the funds retained in the organization by members. The ratio is calculated by taking net income and dividing by average total equity.

Total assets adjusted by applying regulatory predetermined risk-weight factors ranging from 0 per cent to 200 per cent to on- and off-balance sheet exposures. The risk-weight factors are regulated by FICOM.

Arrangement where loans are sold to unrelated third parties to raise liquidity or fund additional mortgage growth.

Contracts that involve the exchange of fixed and/or floating interest rate payment obligations and/or currencies for a specified period of time.

The most permanent and subordinated forms of capital, as defined by OSFI, consisting of Common Equity Tier 1 (CET 1) capital and Additional Tier 1 (AT 1) capital. Coast has no AT 1 capital issued at December 31, 2018. As a result, Tier 1 capital comprises CET 1 capital.

Supplementary capital instruments, as defined by OSFI, consisting of subordinated debentures and collective allowances.

Comprises both Tier 1 (primary) and Tier 2 (secondary) capital, as defined by OSFI.

Revenues earned from mutual fund managers for selling their fund(s) and providing advice to investors. The fee is applied to the market value of the assets held by investors.