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

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Elevations Credit Union Notes to Financial Statements December 31, 2008 and 2007 As noted in Note 15, the Credit Union wrote-off its entire $2,708,093 member and permanent capital in Western Corporate Federal Credit Union (WesCorp) and its $4,533,101 capital in Sun Corporate Credit Union (SunCorp) in 2008 based on the March 20, 2009 announcement that the losses at these institutions exceeded the capital in these organizations. On January 28, 2009, the NCUA Board announced the Temporary Corporate Credit Union Share Guarantee Program through September 30, 2011. The NCUSIF guarantee applies to all share amounts above $250,000, and the NCUSIF insurance coverage applies to all share amounts below $250,000. The net effect is that during the period of the guarantee the entire share account will be treated by the NCUSIF as if it was insured. Approximately $62,000,000 of the corporate credit union certificates mature before December 31, 2009 and therefore are guaranteed. Approximately $5,000,000 of the corporate credit union certificates mature after September 30, 2009 and are therefore not guaranteed. Certificates are generally non-negotiable and non-transferable, and may incur substantial penalties for withdrawal prior to maturity. Note 3. Loans to Members Loans to members consist of the following: December 31 2008 2007 Mortgage loans: Fixed rate $ 186,100,212 $ 157,217,441 Variable rate 8,763,092 34,729,744 Hybrid/Balloon 42,633,093 46,291,361 Home equity line of credit, variable rate 179,252,493 75,227,165 416,748,890 313,465,711 Vehicle loans 120,783,369 149,012,084 Credit card loans, unsecured 53,868,563 51,511,270 Commercial loans 5,293,992 2,572,149 Other consumer loans, primarily unsecured 8,845,055 10,920,513 605,539,869 527,481,727 Deferred net loan origination costs 649,491 795,588 Allowance for loan losses (6,072,114) (5,446,052) ELEVATIONS Credit Union 2008 annual report 36 $ 600,117,246 $ 522,831,263 The Credit Union offers non-traditional hybrid/balloon mortgage loans to its members. Hybrid/Balloon loans consist of loans that are fixed for an initial period of three, five or seven years. After this period, the mortgages are converted to variable rate using the fully indexed rate, which can result in significant payment shock to the borrower. Non-traditional mortgage loans may have significantly different credit risk characteristics than traditional fixed and variable rate mortgages. However, the Credit Union believes it has established prudent underwriting standards as well as adequate risk management functions to monitor these additional risks. The following is an analysis of the allowance for loan losses: Years Ended December 31 2008 2007 Balance, beginning of year $ 5,446,052 $ 6,134,728
Elevations Credit Union Notes to Financial Statements December 31, 2008 and 2007 Provision for loan losses 3,535,800 4,616,998 Recoveries 1,629,977 626,488 Loans charged off (4,539,715) (5,932,162) Balance, end of year $ 6,072,114 $ 5,446,052 Loans on which accrual of interest has been discontinued or reduced amounted to $2,147,000 and $2,570,000, respectively, at December 31, 2008 and 2007. If interest on those loans had been accrued, such income would have approximated $110,000 and $156,000 for December 31, 2008 and 2007, respectively. Note 4. Other Real Estate Owned Transfers of loans to other real estate owned for the years ended December 31, 2008 and 2007 totaled $135,879 and $1,358,184, respectively. Expenses related to other real estate owned are summarized as follows: Years Ended December 31 2008 2007 Write-downs of carrying value $ 69,439 $ 832,774 Net gains on sales of foreclosed properties (7,079) (19,535) Operating expenses 68,206 37,057 Note 5. Loan Servicing ELEVATIONS Credit Union 2008 annual report 37 $ 130,566 $ 850,296 Mortgage loans serviced for others are not included in the accompanying statements of financial condition. The unpaid principal balances of these loans at December 31, 2008 and 2007 are summarized as follows: December 31 2008 2007 Mortgage loan portfolios serviced for: FNMA $ 104,303,612 $ 97,938,112 FHLMC 66,961,784 34,517,592 $ 171,265,396 $ 132,455,704 Custodial escrow balances maintained in connection with the foregoing loan servicing, and included in deposits, were approximately $1,040,484 and $768,647 at December 31, 2008 and 2007, respectively. Note 6. Property and Equipment Property and equipment are summarized as follows: December 31 2008 2007 Land $ 3,307,797 $ 3,307,797 Building 13,919,617 13,727,883 Furniture and equipment 11,050,019 9,951,430
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 37: 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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