TREASURER'S Report - Christina Oleksyn

The Treasurer is a board member, elected by the general membership, and appointed to the position of Treasurer by the Board of Directors.

            General responsibilities include working closely with the CEO and Chief Accountant to ensure the solvency and financial strength of UFCU, designing and implementing financial policies, strategies and procedures to meet these objectives, serving as a member of the Board of Directors and serving on the ALCO Committee (responsible for earning enough on member loans and investments to cover interest and dividends payable on member accounts leaving enough to cover credit union operating costs).

            Specific responsibilities include: reporting to the Board of Directors concerning: corporate financial status, including but not limited to the review of UFCU’s annual and quarterly balance sheets, income statements, cash flow statements and budgets; reporting to the Board and Audit Committee regarding changes in financial policies and procedures; reporting approval by the ALCO Committee of standard promissory notes and making recommendations regarding others.

            I’m pleased to report UFCU has continued making significant progress in the achievement of its long term strategic objectives. We are experiencing steady asset growth while maintaining strong financial stability. The Board of Directors delegates to UFCU management full responsibility over the daily credit union administration and operations, which includes preparation of financial statements and loan portfolio management.

            As of December 31, 2007 our assets grew to $131.7 million, increasing by approximately 5% or $6.2 million. The demand for loans to members during the year rose to almost $110 million resulting in a net increase of $6 million or 5% over 2006. The overall return on loans was $7.4 million or 6.8%.  Our investments totaled $17.9 million and earned $.7 million or 4.1%. At the end of the year our credit union membership stands at 16,705. While the U.S. economy and real estate market are weakening, we have not been affected by the sub-prime mortgages.

            We have, however, been affected by increased credit card and personal loan losses. Our delinquency rate also rose to over 3% due to the current economic conditions affecting our business loan portfolio. Management is implementing stricter procedures to address loan collections and loss control.

            Our member deposits exceeded $111 million showing an increase of $4.2 million. Noteworthy also is that our net worth to assets ratio remains solid at 13.32%. Net worth ratio being the ratio of the net worth (total retained earnings) of the credit union to the total assets of the credit union. With regard to our Income Statement, the gross income for the year 2007 amounted to $8.1 million against a budget of $8.1million, resulting in a net income after dividends and operating expenses of $.4 million. This is in comparison to 2006 when our net income was $.8 million and against a budget of $.7 million.

            In spite of ever rising costs we continue to hold expenses in check and still offer new and better services for our members. Our Ukrainian Federal Credit Union continues to offer competitive services and strives to meet the needs of each individual member. We continue to pay on average more on dividends than our local competition. The Board of Directors recognizes the efforts of the management team and entire staff for their role in serving the community.