National Federation of Community Development Credit Unions

Report to the29th Annual Meeting of the Membership June 7, 2003 * Memphis,

TN

The Federation.

Opening doors. Expanding Limits. Since 1974

The Federation’s Vision Empower our communities to achieve self-

sufficiency Access to CDCUs for every low-income

community Unite CDCUs worldwide Strengthen the movement through

collaboration Enable low-income members of CDCUs to

participate equally and effectively in public life

Adopted by the Board of Directors, Sept. 23, 1995.

Highlights 2002-03

Capitalization

$3.7 million invested/committed(2002) 117 participating CDCUs * Total investments in CDCUs: $18

million * New Product: PRIDEs™ to fight

predatory lending New Product: Technology Grants

* New record *

Growth of Capitalization Program, 1990 - 2001

$0.0

$5.0

$10.0

$15.0

$20.0

'90 '95 '00 '02

Invstmts in CDCUs,millions

0

50

100

150

'90 '95 '00 '02

# of CDCUs participating

Available for ’03 – ‘04 Deposits: $3.5 million Secondary Capital: $2.29

million Equity grants: $351,000 Technology grants: as funds are

raised

Research CDFI Data Project Report Report on $1-million Citicorp

Neighborhood Banking 2000 Report on CDCU Technology to

Ford Fdn.

Education and Training

CDCU Institute™ Graduated second class (Oct. 2002) 39 current students – years 1, 2, and 3 104 students/65 credit unions since

1999 Regional Seminars

market analysis, lending, fin’l.projections 204 C.U. and other organizations – 529

people – 11 states & Puerto Rico

Financial Literacy: Each One, Teach Many

“Your Path to Financial Freedom” (NEFE/Federation workbook)

Oct. 18 ‘02: Financial Lit.Day in New York

100 trainers trained since 1/03 -- NY,Philadelphia,Colorado, Texas,

California… Funders: American Express, IBJ Mizuho,

North Fork Bank

Membership

New Record: 220 CDCUs Assets: $100k-$800

Million Totals (12/31/02):

Assets: $2.7 billion (last year: $2.3)

CDCU members: 782,641 (last year: 702,244)

Member CDCUs

50

100

150

200

250

'95 '00 May-03

Latino CU Conference April 11-13, 2002, San Diego 200+ attendees from U.S. and Latin

America HUD Sec’y. Martinez, NCUA Chair

Dollar, Cong. Napolitano, Jaime Escalante (Stand and Deliver)

Broad U.S. CU movement sponsorship

And… Technical Assistance

CDFI, organizing, crisis intervention Faith-Based CU Network

“Harlem Plugged” AmeriCorps*VISTA

EITC campaign, IDAs, financial lit. New York Community Fin’l. Network Youth CU Network

Finances, ‘01 – ‘02

2002 2001

Assets $22.6 mil. $17.8 mil.

“Net Worth” $6.3 mil. $4.6 mil.

Loan Loss Reserve

$622,000 $645,750

Revenue $2.97 mil. $2.92mil.

“Net income” $34,114 $8,501

Highlights:

What’s New for 03-04

30th Anniversary Meeting CDCU Mortgage Center™ CDCU Technology Advis.Services “Community Development

Partners” Alliance with Disability Community

30th Anniversary!

San Juan, Puerto Rico Wyndham El San Juan Hotel June 9 –12, 2004

Latino CU Conference: June 9-10 30th Annual Meeting: June 10-12

CDCU Mortgage Center™ Access to web-based, state-of-the-art

mortgage origination & processing Federation back-up for all

participating credit unions: Technical support Management assistance (ALM) Education & training

Building toward CDCU secondary mkt.

CDCU Technology Advisory Services

Help CDCUs select & implement technology

Promote partnerships with other credit unions

Technology grants

Community Development Partners

Pilot program Reach out to credit unions that

share mission of expanding services to low-income people

Expand Federation’s resources, outreach, impact on CU movement

Alliance with Disability Community

Assist people with disabilities to access credit & financial services

Establish linkages with local organizations serving people with disabilities

Jointly raise resources Financial literacy

Challenges: ’03 – ‘04 Advocacy

NCUA: secondary capital regs; PCA; examination practices; “Small CU” policies

CDFI Fund: appropriations; access for small CUs Capitalization Program

Raising more money for Technology Grants Fund Low interest rates

CDCU Institute™ Continuation beyond ’04

Fundraising: 30th Anniversary Campaign

Visit us at:www.cdcu.coop

Events Program Information &

applications New about CDCUs Publications Federal agencies

…. And more