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Elevations Credit Union Notes to Financial Statements December 31, 2008 and 2007 Property and Equipment: Land is carried at cost. Building, leasehold improvements, and furniture and equipment are carried at cost, less accumulated depreciation and amortization. Buildings and furniture and equipment are depreciated using the straight-line method over the estimated useful lives of the assets. The cost of leasehold improvements is amortized using the straight-line method over the terms of the related leases. Transfers of Financial Assets: Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Credit Union, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Credit Union does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or the ability to unilaterally cause the holder to return specific assets. National Credit Union Share Insurance Fund Deposit: The deposit in the National Credit Union Share Insurance Fund (NCUSIF) is in accordance with National Credit Union Administration (NCUA) regulations, which require the maintenance of a deposit by each federally insured Credit Union in an amount equal to 1 percent of its insured members shares. The deposit would be refunded to the Credit Union if its insurance coverage is terminated, if it converts its insurance coverage to another source, or if management of the fund is transferred from the NCUA Board. See Note 15 regarding the impairment of NCUSIF. NCUSIF Insurance Premium: The Credit Union is required to pay an annual insurance premium equal to onetwelfth of one percent of total insured shares, unless the payment is waived or reduced by the NCUA Board. The NCUA Board waived the 2008 and 2007 insurance premiums. See Note 15 regarding the stabilization of NCUSIF. Members’ Shares: Members’ shares are the savings deposit accounts of the owners of the Credit Union. Share ownership entitles the members to vote in the annual elections of the Board of Directors and on other corporate matters. Irrespective of the amount of shares owned, no member has more than one vote. Members’ shares are subordinated to all other liabilities of the Credit Union upon liquidation. Dividends on members’ shares are based on available earnings at the end of a dividend period and are not guaranteed by the Credit Union. Dividend rates are set by the Credit Union’s Board of Directors. Income Taxes: The Credit Union is exempt, by statute, from federal and state income taxes. However, the Credit Union is subject to unrelated business income tax as further discussed in Note 10. Comprehensive Income: Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Certain changes in assets and liabilities, such as unrealized gains and losses on available-for-sale securities, are reported as a separate component of the members’ equity section of the statements of financial condition. For 2008 and 2007, other comprehensive income includes no reclassification adjustments. Reclassifications: Certain account reclassifications have been made to the 2007 financial statements in order to conform to classifications used in the current year. Recent Accounting Pronouncements: In July 2006, the Financial Accounting Standards Board (“FASB”) issued Interpretation No. 48, Accounting for Uncertainty in Income Taxes – an interpretation of FASB Statement 109 (“FIN 48”). FIN 48 clarifies the accounting for uncertainty in income taxes recognized in an enterprise's financial statements in accordance with Statement of Financial Accounting Standards (SFAS) No. 109, Accounting for Income Taxes. FIN 48 prescribes a comprehensive model for recognizing, measuring, presenting and disclosing in the financial statements tax positions taken or expected to be taken on a tax return. The cumulative effect of applying the provisions of FIN 48, if any, will be reported as an adjustment to the opening balance of retained earnings for the fiscal year of adoption. FIN 48 is to be effective for fiscal years beginning after December 15, 2007. However, at its October 15, 2008 meeting, the FASB reconsidered the scope of its proposed one-year deferral of the effective date ELEVATIONS Credit Union 2008 annual report 32
Elevations Credit Union Notes to Financial Statements December 31, 2008 and 2007 of FIN 48 for all private enterprises, including credit unions. Under the expanded proposal, FIN 48 will be effective for private entities for annual periods beginning after December 15, 2008 if they have not yet issued a full set of U.S. GAAP annual financial statements incorporating the recognition, measurement and disclosure requirements of FIN 48. Early adoption is still permitted. The adoption of FIN 48 is not expected to have a material impact on the Credit Union’s financial position, results of operations or cash flows. In December 2007, the FASB issued SFAS No. 141R, Business Combinations. This new standard significantly changes the accounting for business combination transactions as the pooling-of-interests accounting method will no longer be an acceptable accounting method. This change is effective for fiscal years beginning on or after December 15, 2008, with early adoption prohibited. The Credit Union is currently evaluating the future impact of SFAS No. 141R on the Credit Union’s financial condition. In May 2008, the FASB issued SFAS No. 162, The Hierarchy of Generally Accepted Accounting Principles. The new standard is intended to improve financial reporting by identifying a consistent framework, or hierarchy, for selecting accounting principles to be used in preparing financial statements that are presented in conformity with GAAP for nongovernmental entities. The statement is effective 60 days following the Securities and Exchange Commission's approval of the Public Credit Union Accounting Oversight Board Auditing amendments to AU Section 411, The Meaning of Present Fairly in Conformity with Generally Accepted Accounting Principles. SFAS No. 162 is not expected to have a material impact on the Credit Union’s financial position, results of operations or cash flows. On April 9, 2009, FASB issued three final FASB Staff Positions (FSPs) intended to provide additional application guidance and enhance disclosures regarding fair value measurements and impairments of securities. FSP FAS 157- 4, Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly, provides guidelines for making fair value measurements more consistent with the principles presented in SFAS No. 157, Fair Value Measurements. FSP FAS 107-1 and APB 28-1, Interim Disclosures about Fair Value of Financial Instruments, enhances consistency in financial reporting by increasing the frequency of fair value disclosures. FSP FAS 115-2 and FAS 124-2, Recognition and Presentation of Other-Than-Temporary Impairments, provides additional guidance designed to create greater clarity and consistency in accounting for and presenting impairment losses on securities. The FSPs are effective for interim and annual periods ending after June 15, 2009, but entities may early adopt the FSPs for the interim and annual periods ending after March 15, 2009. ELEVATIONS Credit Union 2008 annual report 33
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 and 30: Elevations Credit Union Statements
Page 31 and 32: Elevations Credit Union Notes to Fi
Page 33: 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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