Message from the Chairman, Wasyl Kornylo and Tamara Denysenko, CEO

The Ukrainian Federal Credit Union as a financial cooperative is proud to serve over 16,000 members coast-to-coast in cities such as Rochester, Syracuse, Albany, Boston, Sacramento and Portland. As in the past 55 years, our Ukrainian Federal Credit Union will continue to be a premier cooperative financial institution owned and operated by its members. As always our purpose will be to continue providing financial advice and competitively priced services to our diverse common bond membership. We will continue to maintain a safe and sound capital base, while at the same time, fulfilling our cooperative mission of "people helping people." We will strive to play a leadership role in the common bond communities we serve by providing high quality products and personal services in a friendly environment. As part of our long-term strategic mission and vision, we look forward to serving potential Ukrainian-American communities in other geographic areas currently not being served.

Our UFCU long-term goals and objectives are to:
• Maintain solid financial ratios
• Implement and upgrade the necessary state-of-the art technology systems throughout the credit union branch network.
• Develop and acquire the necessary staff and management that will enable us to efficiently serve our long-range goals
• Enhance and expand products and services to meet the diverse needs of our members
• Develop a leadership image in all our communities by participating in community development and educational programs and events.

With the good and welfare of our membership in mind, on behalf of the Board and management, we are pleased to report that 2007 was a successful year for our credit union albeit the uncertain economic trends and issues. We steadily grew our assets to over $131 million, loans increased by 5%, and shares by almost 4%. UFCU continues to maintain a strong capital base that continues to exceed 13%. We returned to our members almost $3.5 million in dividends while maintaining gross operating expenses under 3.5% for our six branch locations coast-to-coast.

As we begin our 56th year of cooperative financial service to our members and the community, we are confident that working together with one vision, mission and voice we will continue to live up to our motto of "providing prosperity for generations."