A A New Beginning... Community

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2 1 A A New Beginning... A new beginning is an appropriate way to describe 2003 at ORNL Federal Credit Union. Our transition to a community credit union became official as the new year got underway. The change was immediate as we reached out to our community, Central East Tennessee, offering all of its residents a new choice in financial services. Now, instead of turning away some of our neighbors In addition to the privilege of being a community credit union, there is the responsibility to serve a 16-county area of East Tennessee. That responsibility includes providing convenient access to our services throughout the area. It also includes continuing our tradition of offering service and value. These are things that we continue to focus on and work toward. Another responsibility that has become increasingly important because of our new community status is our responsibility to be a good corporate citizen. We plan to work harder to move our community forward to make it a better place to live, work, and play. We want to be an example of a good corporate neighbor, working to make our neighborhood all it can be. What does this change mean to long-time members? It gives us greater flexibility to grow our resources, enabling us to continue to expand and improve services. Does the change affect our core beliefs and practices? Absolutely not. We are still a not-for-profit financial cooperative s a member-owned financial organization, ORNL Federal Our second full year community-chartered credit as a union Credit Union is chosen by thousands of your fellow East Tennesseans each year as their produced another stellar performance in membership growth. Such growth is tangible evidence that we are personal financial service provider. That means they are joining together Community providing superior value to members and their families with the products with about 100,000 other members, and services we offer, and that because they could not qualify to be strengthening our financial cooperative word is spreading throughout our for the of all who belong. 16-county community about the within ourgreater field benefit of membership, we Our theme for this year s annual great benefits of membership in can welcome them into our cooperareport and annual meeting is joining together. ORNL Federal Credit Union. tive and the benefits that all members enjoyed Asideextend from describing the act of enrolling members,have it With a history spanning 57 years of continuous alsofounding. a symbolic reference to our strength in service to our members, our organization remains sinceis our numbers and the advantages that strength affords us Everyone who calls East Tennessee home can focused chooseon what makes us unique among all financial all. For instance, we join together for the cost advantages produced by our collective purchasing service companies our member-owned cooperative structure. By maintaining this focus, we have been power. We join together to produce a massive people resource that can be called upon to make our community a better place to live, work and play. able to improve and expand the financial benefits we provide to all members. Today, all of East Tennessee is learning about our credit union And, we join together to protect our hard-earned assets through active participation in the government and the thousands of residents who are joining together to produce financial rewards for entities that are entrusted with that responsibility. all who choose to participate. in which all who belong benefit from our shared goal of improving the financial well-being of BY are SPONSORING IN through HAND our WITH THE leaders, COMMUNITY. all members. We still governed AND by youparticipating and your fellowhand members elected our volunteer Board of Directors. What could be more appealing consumers everywhere than having the choice of joining DogwoodtoArts Festival, Habitat for Humanity, MEDIC Blood Drive, ORNL Federal Credit Union, a financial institution that is deeply rooted in the community, an United Way, Charity Walks, Community Shares, Junior Achievement, organization that is governed and run by friends and neighbors, a business where decisions on your own personal Christmas financial matters are made locally, not on the other side ofscholarship, the state or Angel Tree, University of Tennessee/B.A. Candler even country? Aid to Distressed of the Appalachian (ADFAC), We celebrate our new beginning, excitedfamilies about the many possibilitiescounties that lie before us. And we celebrate with a rededication of our efforts to uphold the basic principles and practices that and countless other charitable organizations. have made us who we are a credit union your credit union.

3 I t is my pleasure to report that 2004 was another excellent year for your credit union. Although we were faced with a challenging economic environment with record-low interest rate conditions and increased competition, our financial performance was nonetheless exceptional. This was due to our continued effort to deliver products and services our members want and need while providing a high level of member service at the lowest possible cost. ORNL FCU posted good growth in all areas. From membership to loans to checking and savings accounts, the impact of our community charter continues to be more and more apparent as many of your friends and neighbors have realized the advantages of membership in ORNL FCU. During 2004, hundreds of new members joined each and every month, producing a 6.82% increase in total membership. Total membership at year-end was 99,720, a net increase of 6,365 members during Although interest rates remained at historic lows throughout most of the year, our deposits grew by $57.7 million, or 9.77%. At yearend 2004, our deposits totaled $647.6 million. The low interest rate environment of 2004 also produced bargains for members who borrow. Loans outstanding grew $80.6 million, or 15.45%, to finish the year at $602.1 million. Auto lending accounted for much of this growth as more and more members took advantage of our low loan rates, as well as the convenient access to auto lending provided by our On-The-Spot dealer financing program. Growth in the areas mentioned above produced a healthy improvement in your credit union s financial standing. During 2004, total assets of ORNL FCU, a key measure of size, grew by $56.5 million, or 7.88%, to a year- end total of $772.4 million. As we continue to reach out to more and more residents of Central East Tennessee, we recognize the need to build on and improve our brick and mortar facilities. Such an effort was made when we remodeled our East Knoxville Branch in the fall of To better serve the increasing number of members now visiting the branch, a teller line and additional staff were added to assist Branch Manager, LaTanya Terrell, in bringing quality service to our members in the East Knoxville area. During November 2004, the Main Branch Office of ORNL FCU in Oak Ridge underwent its first facelift since its opening in During the extensive remodeling, the lobby of the Oak Ridge Branch was closed for a period of several weeks. Although the drive-through teller windows remained open, a temporary office offering full teller and lending services was opened in the Oak Ridge Mall for the duration of the remodeling period. At the time of this publication, the main office is planned to reopen in late February. We thank our members for their patience, and we apologize for any inconvenience this construction schedule may have caused. We are sure our Oak Ridge area members will enjoy the new look of the branch for years to come. Renovations are also being completed on our recently acquired South Knoxville Branch. The building, which is located at 7325 Chapman Highway, is approximately six miles south of the Henley Street Bridge and less than 0.4 miles north of the intersection of Chapman Highway and John Sevier Highway. The new branch will serve thousands of ORNL FCU members who live in South Knoxville and South Knox County. It will feature a full-service lobby, drive-through teller windows, an ATM and safe deposit boxes. At the time of this publication, the new South Knoxville Branch is scheduled to open mid-march Your credit union continues its focus on providing members with services that offer money-saving features and convenient access. This is at the heart of our mission statement: Enabling Our Members to Achieve Their Financial Goals by Being There When, Where and How They Need Us. A prime example is convenient access to surcharge-free ATMs. Partnering with other area credit unions, we helped establish the EASY STREET surcharge-free alliance. The number of machines in this alliance continues to grow steadily. Well over 150 machines in Tennessee are now part of EASY STREET. In October of 2004, First Tennessee Bank withdrew from an agreement that allowed our members surcharge-free access to their machines located in Weigel s stores. In response to this loss of local ATM access, your credit union secured two new surcharge-free network partnerships to increase members free access to ATMs. In December 2004, ORNL FCU joined the AllPoint surcharge-free network of ATMs. The Allpoint network consists of over 32,000 ATMs nationwide with 180 ATMs located in convenience stores, restaurants, gas stations and large department stores throughout our Central East Tennessee community. ORNL FCU also joined the Pulse Select ATM network of surcharge-free ATMs. This network consists of more than 3,200 nationwide ATMs placed mostly in the Midwest. We joined the Pulse Select network to better serve the large number of members who travel regularly. We are committed to the continued expansion of access to surcharge-free ATMs. To better assist the rising number of members performing transactions over the telephone, we switched on our new automated telephone attendant in October of last year. With our monthly call volume regularly exceeding 50,000, we took advantage of 21 st century communications technology in order to deliver the fast service that today s members expect and deserve. Every effort was made to design our system to assist members in making the quickest connection possible to the correct person, department, or branch. In 2000, we began our Member Relationship Rewards Program to reward our active members and to encourage more members to join their ranks. Thousands of members have since reaped the benefits of the program in the form of waived service fees on checking accounts and higher returns on savings certificates. In 2004, to increase use of our timesaving Web Bill Pay service and to show greater appreciation of our Rewards members, we added free Web Bill Pay to the list of benefits. Now any member who qualifies for the Platinum, Gold, or Silver levels of our Relationship Rewards program can manage their finances and pay bills online while receiving unlimited use of Web Bill Pay at no charge. Another new service that was introduced in April 2004 was ORNL FCU s Quick-Close Home Equity Line of Credit (HELOC). With same-day closing and an interest rate equal to the prime rate, thousands of members have already taken advantage of its great money-saving and timesaving features. Last summer, we introduced our new Free Checking account for those members who cannot meet or simply don t want to meet the requirements of free checking through our Relationship Rewards program. The Free Checking account improved our competitiveness in attracting and retaining members. In 2004, the credit union founded the Affinity Title Company to handle mortgage closings for members and to provide title insurance on those mortgages. As a title company dedicated to serving ORNL FCU members, as well as the needs of other area credit unions, Affinity is able to provide prompt attention to each loan. That translates into quicker mortgage closings, something that is critical, especially for members who are on a tight schedule of selling one home and buying another. This new addition to your credit union will help to give fast, dependable and accurate loan closings for each and every member. Good, quality service is critical in your decision to choose or stay with a particular (Continued) 2 3

4 Statement of Financial Condition Statement of Income and Expense financial institution. To encourage more members to speak out about the service they receive through ORNL FCU, good or bad, we started a new quality service survey in the spring of A special, short questionnaire was developed to gather feedback from members on their experiences regarding recent transactions. Responses to the survey are analyzed to determine what, if any, weaknesses we have in our service delivery methods; where those weaknesses are; and who is the right manager to take corrective actions, if needed. The final outcome of this effort, we believe, will be an ever-improving, quality service level. In October 2004, the Check Clearing for the 21 st Century Act became federal law. Referred to as Check 21, this law recognizes a new type of payment document called a substitute check used for clearing and settlement. It allows the receiving financial institution to accept an electronic image of a check and treat it the same as the paper copy of the check itself. In addition to faster check clearing realized by Check 21, it provides for decreased check fraud, increased security, and reduced check processing costs. ORNL FCU s checking (share draft) accounts have operated since their beginning in 1977 with this truncation (non-return of cancelled checks) feature. Therefore, members using our checking accounts have noticed less of a difference than bank customers who may currently receive their cancelled checks. As previously noted, 2004 was a prosperous year for ORNL FCU. To recognize that fact, your Board of Directors declared a special bonus dividend totaling $1.5 million paid on members average total deposits during the year The dividend earned on each member s total deposit relationship was posted 12/31/04. The dividend was paid to all members of record as of year-end. It amounted to.25% of total shares. In declaring the bonus dividend, the Board noted that 2004 was an exceptional year and this was one way of sharing our success with all the members who made it possible is the third year in a row that ORNL Federal Credit Union has paid a special year-end dividend to members. Social responsibility and financial education are concepts that go hand in hand with the spirit of the credit union Movement and its core philosophy of People Helping People. We believe the role of the credit union extends beyond the basic provision of financial services and encompasses the opportunity to enhance the well-being of its membership and community. One example of this effort is our continued sponsorship of the Dogwood Arts Festival was our first year as Presenting Sponsor of this premier community-wide event for Central East Tennessee. This ongoing sponsorship allows us to visibly demonstrate our commitment to help make our community a better place for members and potential members to live, work and play. From our partners-in-education school programs and UT/B.A. Candler Scholarship to a variety of charities and community-wide programs, such as, Habitat for Humanity and Community Shares, your credit union works to support these and other worthy causes as a good corporate citizen. It s our way of saying thanks and giving back to the communities we serve. ORNL Federal Credit Union employees also donated their time and talents to their communities over the past year. Credit union employees raised more than $20,000 for the United Way during 2004, worked to make Christmas brighter for local children through our Angel Tree program, and much, much more. We are very proud of our employees willingness to work on improving life for all those who call Central East Tennessee home. As we grow and expand in our newly embraced 16-county community, we will always remember the reason for our past, present and future successes you, our member owners. On behalf of the Board of Directors and staff of your credit union, thank you for placing your continued trust in us as we move forward to embrace another prosperous year. Assets Cash and cash equivalents $38,913,523 $32,894,023 Investments $99,553,550 $133,056,482 Loans to members, net of the $591,608,204 $513,819,993 allowance for loan losses Loans held for sale $6,888,043 $5,719,561 Accrued interest receivable $2,544,029 $2,590,102 Property and equipment $18,823,356 $18,912,472 National Credit Union Share $5,807,568 $5,507,317 Insurance Fund deposit Other assets $8,292,045 $3,936,473 TOTAL ASSETS $772,430,318 $716,436,423 Liabilities & Members Equity Liabilities Members shares $647,666,185 $590,233,161 Accrued expenses and $10,264,371 $9,293,641 other liabilities Federal Home Loan Bank advances $28,094,483 $34,831,908 Total Liabilities $686,025,039 $634,358,710 Members Equity Retained Earnings $86,405,279 $82,077,713 TOTAL LIABILITIES & EQUITY $772,430,318 $716,436,423 NOTES TO FINANCIAL STATEMENTS 1. Cash and Cash Equivalents - Cash and cash equivalents consist of cash on hand, demand deposits, money markets funds and non-term share deposits in Volunteer Corporate Credit Union. 2. Investments - Investments consist primarily of government agency securities, mortgage-backed securities and term deposits at other insured financial institutions. 3. Loans to Members 12/31/04 12/31/03 First Mortgage Real Estate $226,657,856 $209,176,263 Other Real Estate $62,577,484 $45,827,058 Member Business $31,701,846 $23,293,072 Automobile $231,010,901 $194,329,567 Unsecured $22,936,028 $23,705,440 Other Loans $26,377,482 $25,645,353 $601,261,597 $521,976,753 Allowance for Loan Losses $(2,765,350) $(2,336,257) $598,496,247 $519,640, Loan Servicing - Mortgage loans sold to FNMA are not included in the accompanying statements of financial condition. The unpaid principal balances at December 31, 2004, and 2003, were $120,324,572 and $98,711,801 respectively. 5. National Credit Union Share Insurance Fund (NCUSIF) Deposit - The deposit in the NCUSIF is in accordance with the National Credit Union Administration regulations, which requires a deposit by each federally insured credit union in an amount equal to 1% of its insured members shares. Income Interest Income Interest on loans to members $32,711,946 $32,028,454 Interest on investments $3,133,675 $4,212,138 and cash equivalents Total Interest Income $35,845,621 $36,240,592 Interest Expense Dividends on members shares $9,819,442 $10,706,775 Interest paid on borrowed funds $1,207,491 $1,409,874 Total Interest Expense $11,026,933 $12,116,649 Net Interest Income $24,818,688 $24,123,943 Provision for Loan Losses $2,765,538 $2,829,524 Net Interest Income After Provision for Loan Losses $22,053,150 $21,294,419 Non-Interest Income $9,270,718 $13,230,254 TOTAL INCOME $31,323,868 $34,524,673 General and Administrative Expenses Salaries and benefits $13,910,588 $13,210,958 Operations $8,983,904 $8,928,488 Occupancy $1,836,342 $1,511,936 Other $1,654,897 $1,697,162 TOTAL EXPENSES $26,385,731 $25,348,544 NET INCOME $4,938,137 $9,176, Federal Home Loan Bank Advances - FHLB advances are payable in monthly installments of principal and interest. The average cost in 2004 was 3.78%. Interest paid is included in interest expense on the Statement of Income. Advances are used to fund members fixed rate first mortgage loans. 7. Members Shares 12/31/04 12/31/03 Regular Share Accounts $159,334,165 $139,424,445 Share Draft Accounts $94,547,319 $83,316,585 Money Market Accounts $157,144,356 $154,231,247 IRAs $56,421,647 $54,025,189 Certificates $180,218,698 $159,235,695 $647,666,185 $590,233, Consolidated Statements - The credit union wholly owns Affinity Financial Group, LLC, a credit union service organization. The credit union s financial statements are consolidated with Affinity s as required by generally accepted accounting principles. YEAR ENDING DECEMBER 31,

5 (in millions) (in millions) $900 $800 $700 $600 $500 $400 $300 $200 $ $900 $800 $700 $600 $500 $400 $300 $200 $ (in millions) $900 $800 $700 $600 $500 $400 $300 $200 $ (in thousands) 99,

6 T he Supervisory Committee is appointed by the ORNL FCU Board of Directors and is responsible for ensuring that the credit union s financial records are in order and that internal controls are in place to protect the assets of the credit union for its members. The committee does this by conducting financial audits and by regular testing of internal controls. In order to assist us in carrying out these responsibilities this past year, the committee engaged the firm of McGladrey and Pullen, CPAs, to perform an independent audit and provide an opinion on the financial condition of your credit union for the period ending 12/31/2004. The goals of this audit are to determine the reliability and integrity of the financial and operating information and to determine compliance with generally accepted accounting principles (GAAP). Independent audit findings are helpful in our oversight of credit union activities. An Internal Audit Program, under the direction of the Supervisory Committee, provides an ongoing review of compliance with policies and procedures. This program includes an annual inspection of internal controls, cash, member loans, and other assets of your credit union. The audit program for the year 2004 was completed as planned with no unresolved issues. The committee followed and offered guidance to our internal auditing function during the year. The committee approved the annual internal audit plan; concluded a Volunteer Achievement Program wherein each Supervisory Committee member studied a chapter of the CUNA Supervisory Committee Ready Reference and trained the committee at subsequent meetings as a part of the business agenda; visited each of the branches to meet the credit union employees and explain the role of the Supervisory Committee; solicited various credit union officers to meet with the committee to provide detailed operational information; and formalized the 2004 external financial audit under an agreement from last year s auditor. The committee is pleased to report your credit union continues a tradition of excellent financial management and compliance. T he ORNL Federal Credit Union Nominating Committee reviewed the qualifications of the members who submitted their names for consideration as candidates for the Board of Directors. We hereby nominate the following five individuals for the three positions to be filled by electronic election, from February 21 through March 3, prior to our credit union s 57 th Annual Meeting. Wanda McCrosky Mason Oakes Herb Debban Alan Proctor Mike Golden Respectfully submitted, ORNL FCU Nominating Committee Jama Hill, Chairman Mary Beth Blair and Frank Kolski 1/ CALL TO ORDER a. Welcome b. Quorum determination 2/ MINUTES OF 56TH ANNUAL MEETING 3/ REPORTS a. Chairman b. Treasurer c. Supervisory Committee 4/ ANNOUNCEMENT OF ELECTION RESULTS a. Introduction of newly elected Board Members 5/ OLD BUSINESS 6/ NEW BUSINESS 7/ DRAWING FOR DOOR PRIZES 8/ ADJOURNMENT 8 9

7 1/Call to Order A. Welcome. The 56th Annual Meeting of the ORNL FCU was called to order at 7:30PM by Mason Oakes, Chairman of the Board of Directors. Members of Boy Scout Troop No. 328, under the leadership of Mark Cade, displayed colors and led the pledge of allegiance. Scouts were Senior Patrol Leader Jim Johnston, Adam Cade, Hunter Ripley, Ben Luther, Alex Sharp, Jared Williams, Alex Gass and Grant Yoder. Second-grade students from our partner-in-education, Woodland Elementary School, sang the national anthem and a few other songs. The group was under the direction of music teacher, Susie Carden. Mason Oakes introduced John D. McKittrick, President/CEO; current board members; and members of the Supervisory Committee. He thanked members of other committees and volunteers, as listed in the printed report. He stated that the purposes of the meeting were to elect board members, report to the membership and award prizes. B. Quorum Determination. There were 715 members present, more than enough to constitute a quorum. 2/Minutes of the 55th Annual Meeting A motion by Roy Pruett, seconded by Don Miller, passed to approve the minutes as written. 3/Elections A. Report of the Nominating Committee. Members of the committee were Chairman Joseph A. Setaro, Charlie Kuykendall, Mary Lockhart and Rose Wood. Setaro introduced the seven candidates, and referred to the committee s report as shown in the 2003 Annual Report. B. Election of Officers. Oakes asked all members to mark their ballots and pass them to the center aisle for pickup, so that the votes could be counted by the Supervisory Committee. He later announced the election of Smith, Catron, and Hightower to the board. Votes were: 4/Reports Ben B. Smith 295 Marcella Catron 276 Bob Hightower 269 Jewel Stallions 232 James Drewry 216 Mike Golden 138 William Jackson 106 A 14-minute audio-visual presentation on the credit union s activities during 2003 was shown. Oakes thanked Larry Jones and members of the Marketing Department for producing the audio-visual report. A. Chairman. Mason Oakes referred to the printed report and to the audio-visual presentation. He called for questions, but there were none. B. Treasurer. Marcella Catron stated that this has been an exceptional year for the credit union and referred to statements in the annual report. She called for questions, but there were none. C. Supervisory Committee. Chairman Don Miller referred to the printed report. He stated that McGladrey and Pullen did our audit again this year (last year was their first time). It was a fantastic in-depth audit, and the auditors did not come back with any questions. Miller called for questions, but there were none. Chairman Oakes presented Miller with a gift, and expressed appreciation for his years of service on the committee and as Chairman (he is now leaving the Committee). 5/Old Business None. 6/New Business None. 7/Drawing of Door Prizes Frank Kolski conducted the drawing, assisted by Marcella Catron and Joseph A. Setaro. Thirty prizes totaling $1,600 were awarded by drawing names of attending members from a barrel. Also awarded: a $75 gift basket, courtesy of Member Financial Services; and a $1,500 travel gift certificate from American Express World Travel. Kolski read the rules, which state that members must be present to win. He acknowledged that he made a mistake last year, which resulted in a prize being awarded to someone not present. To compensate for that error, an extra $100 prize has been added this year. He vowed to be more careful in following the rules this year. The first name was drawn from the barrel by our MEMBERS Financial Services Representative, Brian Mullins. Donald R. Wright won the gift basket. Names were drawn from the barrel by Kevin Carter. The winners were: $100 Maureen P. Gambrel $50 Amie King $100 Reeta A. Fletcher $50 Gerald B. Young $100 David M. Howard $50 Sheldon C. Jacobs $100 Ronald W. Grizzle $25 Bradley R. Clagg $100 Loretta R. Smith $25 Katherine G. Cunningham $100 Douglas R. Smelcer $25 Mary Elizabeth Glenn $100 Mary Connelly $25 Samantha A. Jones $100 Cindy Spence $25 Lindsey M. Morrow $50 Patricia J. Cornett $25 B. J. Copeland $50 Bill F. Brummett $25 John C. Moyers $50 Matthew C. Walker $25 Sharon Cowen $50 Hazel Dean Long $25 Crystal B. Mullins $50 Mary R. Ogle $25 Fay M. Martin $50 Alice R. Noggle $25 Velvia A. Liafsha $50 W. Dewey Todd $25 Mary E. Byck All names were then returned to the barrel before the drawing for the grand prize, which was a $1,500 travel gift certificate from American Express World Travel of Knoxville. Ruby A. Carter was the winner of the grand prize. 8/Adjournment The meeting was adjourned at 8:20PM, after which a reception, catered by Judy Dodd, was held for members in the High School Cafeteria

8 BOARD OF DIRECTORS Mason Oakes, Chairman Joseph A. Setaro, Vice-Chairman Marcella Catron, Treasurer Wanda McCrosky, Secretary Herb Debban Bob Hightower Jama Hill Bettie D. Kurtz Ben B. Smith Mary Helen Rose, Recording Secretary SUPERVISORY COMMITTEE Randy Gorman, Chairman Joel Lay Joel Pearman Cindy Spence David Watkins NOMINATING COMMITTEE Jama Hill, Chairman Mary Beth Blair Frank Kolski POLICY COMMITTEE Wanda McCrosky, Chairman Evelyn Angel Tony Bryant Bob Hightower Jama Hill Ben B. Smith MEMBER APPEALS COMMITTEE Bettie D. Kurtz, Chairman Herb Debban John Moyers Diane Ridge BUILDING AND PLANNING COMMITTEE Herb Debban, Chairman Mario Fontana Bob Hightower Jama Hill Frank Kolski Wanda McCrosky PENSION PLANNING COMMITTEE Mason Oakes, Chairman Bettie D. Kurtz Ben B. Smith Mary Yoder Sally Jaunsen Freels, Trustee Mason Oakes, Trustee John McKittrick, Trustee LEGISLATIVE AND GOVERNMENTAL AFFAIRS COMMITTEE Ben B. Smith, Chairman Bob Hightower Joseph A. Setaro John D. McKittrick, President Dennis Bowker, Senior Vice-President, Finance Robert A. Glenn, Senior Vice-President R. Taylor Scott, Senior Vice-President Maxine W. Allen, Vice-President, Mortgage Lending David R. Farmer, Vice-President, Branch Operations Larry A. Jones, Vice-President, Marketing and e-branch Operations Clay Kearley, Vice-President, Consumer Lending Brenda Owensby, Vice-President, Human Resources C. Ed Samsel, Vice-President, Member Business Services Carol Dockham, Assistant Vice-President, Training Andrea Griffitts, Assistant Vice-President, Internal Auditor Linda Morris, Assistant Vice-President, Controller Melissa McMahan, Assistant Vice-President, Information Systems Manager Linda Trotterchaud, Assistant Vice-President, Loan Servicing and Collections Jean Eiler, Administrative Assistant, Security, Bonds Trish Seiber, Servicing Manager Susan Johnson, Accounting Manager Vicki Kitts, Collections Manager Janet Martin, Contact Center Manager Renee Pemberton, Electronic Services Manager Melanie Walsh, Staffing Manager Jeremy Wiggs, Dealer Relations Manager Tom Wright, Marketing Manager Debra Brown, Clinton Branch Manager Amy Chesney, Fountain City Branch Manager Janita Clausell, Oak Ridge & Wal-Mart Branch Manager Cindy Condry, Karns Branch Manager Linda Evans, Maryville Branch Manager Ann Fawver, Morristown Branch Manager John Hassell, Madisonville Branch Manager Susan Jones, Branch Manager/Floater Michelle Leach, North Branch Manager Matt Lewis, West Branch Manager Cissi Reagan, Halls Branch Manager INTERNAL POLICY COMMITTEE Joseph A. Setaro, Chairman Jama Hill Bettie D. Kurtz Wanda McCrosky Ben B. Smith Dawn Brummett, Sales Manager Dan Carmichael, Jr., Facilities Manager Vicki Cox, Consumer Loan Quality Assurance Manager Stacey Foster, Operations Manager Catherine Haughton, Mortgage Department Manager Angel Scott, Farragut Branch Manager Leigha Stewart, Laboratory Branch Manager LaTanya Terrell, East Branch Manager Don Thaler, Lenoir City Branch Manager Harriet Walker, Kingston Branch Manager 12 13

9 EQUAL HOUSING OPPORTUNITY ANDERSON COUNTY BRANCHES KNOX COUNTY BRANCHES Oak Ridge Main Office 221 S. Rutgers Avenue Oak Ridge Wal-Mart 373 S. Illinois Avenue Clinton 1117 N. Charles Seivers Blvd. North Knoxville 808 Victor Drive West Knoxville 8721 Kingston Pike East Knoxville 2321 East Magnolia South Knoxville 7325 Chapman Highway ROANE COUNTY BRANCHES LOUDON COUNTY BRANCH BLOUNT COUNTY BRANCH MONROE COUNTY BRANCH HAMBLEN COUNTY BRANCH Kingston 1204 N. Kentucky Street Oak Ridge National Lab P.O. Box 365 Lenoir City 895 Highway 321 North Maryville 1743 West Broadway Madisonville 111 Kefauver Lane Morristown 1730 West Andrew Johnson Hwy Farragut Municipal Center Drive Fountain City Northgate Plaza Shopping Center 4330 N. Broadway Karns 7228 Oak Ridge Highway Halls 4510 Emory Road Telephone: * Or toll-free: *All locations except Madisonville and Morristown CyberBranch TM Your savings insured to 100,000 NCUA National Credit Union Administration, a U.S. Government Agency. Printed On Recyclable Paper