7 6 5 4 3 2 1 8 - Elevations Credit Union

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Elevations Credit Union Statements of Cash Flows For the Years Ended December 31, 2008 and 2007 ELEVATIONS Credit Union 2008 annual report 28 2008 2007 Operating Activities Net (loss) income $ (5,386,366) $ 3,467,859 Adjustments to reconcile net (loss) income to net cash provided by operating activities: Accretion of securities, net (83,367) (29,699) Provision for loan losses 3,535,800 4,616,998 Depreciation and amortization 1,782,607 1,840,867 Loss on corporate credit union capital 7,241,194 0 Other than temporary impairment 2,225,890 0 Gain on sale of loans (402,560) (90,824) Decrease(increase) in other real estate owned 230,892 (359,873) Net change in: Loans held for sale 2,862,518 (1,469,552) Accrued interest receivable (342,051) 626,075 Other assets (980,713) (340,979) Accrued expenses and other liabilities 592,032 1,959,839 Net cash provided by operating activities 11,275,876 10,220,711 Investing Activities Purchases of available-for-sale investments (120,880,357) (43,534,728) Proceeds from maturities of available-for-sale investments 14,881,353 4,202,100 Net change in other investments 160,951 (1,097,331) Net change in loans to members (80,419,221) (15,413,001) Increase in the National Credit Union Share Insurance Fund deposit (850,887) (342,820) Purchases of property and equipment (2,035,088) (1,212,849) Net cash used in investing activities (189,143,249) (57,398,629) Financing Activities Increase on borrowed funds 15,000,000 0 Net increase in members’ shares 123,097,324 29,140,799 Net cash provided by financing activities 138,097,324 29,140,799 (Decrease) Increase in Cash and Cash Equivalents (39,770,049) 18,037,119 Cash and Cash Equivalents at Beginning of Year 78,080,971 60,043,852 Cash and Cash Equivalents at End of Year $ 38,310,922 $ 78,080,971 Supplemental Cash Flow Information Dividends paid on members’ shares and interest paid on borrowed funds $ 18,632,946 $ 17,926,875 Other real estate acquired in settlement of loans $ 135,879 $ 1,358,184 The accompanying notes are an integral part of these statements. 6
Elevations Credit Union Notes to Financial Statements December 31, 2008 and 2007 Note 1. Significant Accounting Policies and Nature of Operations Nature of Operations: Elevations Credit Union (Credit Union) is a state chartered credit union organized under the provisions of the Colorado Credit Union Act. Participation in the Credit Union is limited to those individuals that qualify for membership. The field of membership is defined in the Credit Union’s Charter and Bylaws. Use of Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relates to the determination of the allowance for loan losses, mortgage servicing rights, and the fair value of financial instruments. Concentrations of Credit Risk: Most of the Credit Union’s business activity is with its members who are student of or are employed by the University of Colorado. The Credit Union may be exposed to credit risk from a regional economic standpoint, since a significant concentration of its borrowers resides in Boulder, Colorado. However, the loan portfolio is well diversified and the Credit Union does not have any significant concentrations of credit risk except unsecured loans, which by their nature increase the risk of loss compared to those loans that are collateralized. In addition, during the year ended December 31, 2008 and continuing into 2009, the financial deterioration resulting from the general economic conditions of the Credit Union’s market area have yielded significant loan losses and investment fluctuations for the Credit Union and those with whom it does business, including other financial institutions and corporate credit unions. Management continues to monitor the Credit Union’s operations, including the loan and investment portfolios, for potential impairment and other accounting consequences. Fair Value: In September 2006, the Financial Accounting Standards Board (“FASB”) issued Statement of Financial Accounting Standards No. 157, Fair Value Measurements (SFAS No. 157). SFAS No. 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurement. SFAS No. 157 also emphasizes that fair value is a market-based measurement, not an entity-specific measurement, and sets out a fair value hierarchy with the highest priority being quoted prices in active markets. Under SFAS No. 157, fair value measurements are disclosed by level within that hierarchy. In February 2008, the FASB issued FASB Staff Position No. 157-2, Effective Date of FASB Statement No. 157, which permits a one-year deferral for the implementation of SFAS No. 157 with regard to nonfinancial assets and liabilities that are not recognized or disclosed at fair value in the financial statements on a recurring basis. The Credit Union adopted SFAS No. 157 for the fiscal year beginning January 1, 2008, except for nonfinancial assets and nonfinancial liabilities that are recognized or disclosed at fair value in the financial statements on a nonrecurring basis for which delayed application is permitted until our fiscal year beginning January 1, 2009. The adoption did not have a material impact on the financial statement or the results of operations of the Credit Union but did require the Credit Union to include additional disclosures in the footnotes to the financial statements. Cash and Cash Equivalents: For the purpose of the statements of financial condition and the statements of cash flow, cash and cash equivalents includes cash on hand, amounts due from financial institutions, and highly liquid debt instruments classified as cash which were purchased with maturities of three months or less. Amounts due from financial institutions may, at times, exceed federally insured limits. ELEVATIONS Credit Union 2008 annual report 29 7
Page 1 and 2: safe. sound. local. 2008 Annual Rep
Page 3 and 4: table of contents Joseph Wilson Mor
Page 5 and 6: letter from the president Dear Memb
Page 7 and 8: Pictured page 4 Eric Jones Chair Er
Page 9 and 10: The Supervisory Committee ensures t
Page 11 and 12: community relations committee Pictu
Page 13 and 14: kids fair Hundreds of fun-loving ki
Page 15 and 16: mortgages Elevations side-stepped t
Page 17 and 18: community relations Broomfi eld Com
Page 19 and 20: “I am equally passionate about wo
Page 21 and 22: anch managers 5 4 2 3 1 Mary Ann Ka
Page 23 and 24: fi nancials Elevations Credit Union
Page 25 and 26: Independent Auditor’s Report Supe
Page 27 and 28: Elevations Credit Union Statements
Page 29: Elevations Credit Union Statements
Page 33 and 34: Elevations Credit Union Notes to Fi
Page 47 and 48: senior leadership team Gerry Agnes

7 6 5 4 3 2 1 8 - Elevations Credit Union

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