University of Iowa Community Credit Union. I m so glad I bank at the Credit Union!

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1 University of Iowa Community Credit Union 2011 Annual Report I m so glad I bank at the Credit Union!

2 UICCU is very community minded which is important to me as a lifelong resident of Johnson County. I get the best interest rates in the area how could I not refinance?!! Plus, they have a helpful and knowledgeable staff, not to mention extremely friendly. Jean Gilpin, Iowa City native (with mother, Joan Gilpin) your credit union working in your community In 2011, our staff volunteered 2,400 hours, and as an organization, the Credit Union donated $225,000 to local charities. Cedar Rapids Museum of Art Family Fun Day Iowa City Free Medical Clinic Scrabble Tournament DVIP Souper Bowl Jeans 4 JA UI Dance Marathon Bowl for Kids Sake Johnson, Linn and Poweshiek Counties Community Mental Health Center Minds Matter Trivia Iowa Children s Museum Family Free Night Vinton Home & Garden Show Adopt-a-Highway UI River Run March of Dimes Walk for America Vinton Bike Rodeo Czech Village Houby Days Iowa City Community Schools 5th & 6th grade Track and Field Days North Liberty Centre Blues & BBQ ICARE Pancake Breakfast North Liberty Fun Days Parade Hiawatha Hog Wild Days Cedar Rapids BBQ Roundup Vinton Party in the Park Parade Thanksgiving in July Food Drive Coralville Fourth of July Parade Tiffin Fest Johnson County Safe Kids Coalition Carseat Safety Check Ragbrai American Heart Association Heartwalk Summer of the Arts Sand in the City Iowa City Shelter House Guest Chef Night Iowa City Taste of Market UIHC DeGowin Center Blood Drive Corridor Goes Casual for Kids Fry Fest Coats for Kids Vinton Garage Sale Iowa Children s Museum Move it! Dig it! Do it! Cystic Fibrosis Pumpkin Fundraiser-Grinnell UIHC Ponseti Races Coralville Harvest Moon Fest Mercy Medical Center Cedar Rapids Especially For You Breast Cancer Walk/Run Grinnell High School Homecoming Parade UI Homecoming Parade Salvation Army Campaign kickoff Santa Holiday Helper Grinnell MICA Adopt a Family Coralville Luminaries Party

3 We have been very pleased with our banking experience at the UICCU for the past seven years. The staff at the North Liberty location has been top notch in service and professionalism. UICCU has been a great community partner by supporting programs that add to the quality of life. Tom Moore, Executive Director, African American Museum From the President Jeffrey A. Disterhoft From the Chairperson Laura Reed Thank you for your membership in the University of Iowa Community Credit Union was indeed a special year of accomplishments for our core constituents. In terms of our service to the membership, we enjoyed several outstanding outcomes: Our member service scores were the highest since we began tracking eight years ago. We placed 1st in the nation in total return to the member for three consecutive quarters. We garnered more deposit growth than any other financial institution in Linn County, and became a leader in real estate lending in Linn, Blackhawk and Poweshiek Counties. We had a seamless transition to a new core data processing system. We began development of your new Member Support Center in North Liberty. We were chosen as the Best Financial Institution in Johnson County by readers of the Iowa City Press-Citizen. In terms of our service to our employees, we noted several wonderful outcomes as well: We were nominated by our employees as one of the best workplaces in Iowa by the Des Moines Register. Our staff turnover remains low (12%) while our employee satisfaction results are the highest we ve enjoyed. I close by expressing my appreciation to our membership for your continued patronage. It was an extraordinary year made possible by the exemplary leadership of our volunteer Board of Directors and a diligent, hard-working staff. My thanks to both groups for their roles in making this cooperative a remarkable place for our members and the communities we serve. On behalf of the UICCU Board of Directors, I m pleased to share our 2011 Annual Report. While this report will show some impressive figures in terms of growth and stability, let s touch on a few things that typically go without mention in these financial reports, but are none-the-less important. Staff contributed hundreds of hours and thousands of dollars to support organizations in our communities. Over 50 non-profit organizations benefitted from the assistance of the UICCU in From raising a record $70,821 for the United Way to delivering dozens of holiday gifts to the children of Four Oaks, our staff went above and beyond in efforts to give back to our community. The products and services of your cooperative continue to also benefit the community. Having deposit and loan rates that are often the best in market helps the budgets of the over 90,000 members we serve. Sometimes what you don t do helps the community as well. Last year we entered the Linn County market and introduced the area to a home loan department that does NOT charge the 1% origination fee typically found on mortgages. Over the course of the year, we estimate that this put over $1,000,000 back into the pockets of the home owners who used our services. It not only helped propel us to be the #1 mortgage lender in the corridor, but it also influenced some of our competitors to eliminate the fee. We often hear from members, UICCU is a great place to bank. While we always appreciate the feedback, we will never lose sight of the fact that we are a credit union, and as such we work with our members central to all our decisions. Thank you for allowing us to serve you in 2011 and we look forward to a bright Laura Reed Chairperson, Board of Directors Jeffrey A. Disterhoft President/CEO

4 I feel like the Credit Union has grown with me as I progressed from putting a few dollars into a small savings account as a child, to getting my first check book and my first debit card to access those savings to pay for school. I am very happy to be a member here. Miranda Gehris, UI Student From the Credit Committee scott byers From the Audit Committee fred mims Loans increased $286 million over the past year as we ended the year at just under $1.242 billion in loan balances, a strong 30% increase. Given the continued volatile economic climate, we are proud to have produced these results for the membership. Home loan originations, including both in-house and secondary market loans, came in at $562 million for the year and our in-house balances grew over 43%. In addition, 2011 purchase first mortgage market share numbers were as follows: Johnson County 40%; Linn County 15%; and Poweshiek County 38%. Home equity loans continued to be a very popular option for our membership, as loan balances grew almost 19%. The commercial portfolio also experienced strong loan growth last year as balances grew just over 30%. In late 2011, we developed a new credit union service organization, UICCU Financial. UICCU Financial allows us to remain committed to serving the commercial borrowing needs of our member-owners. Automotive lending continued to be strong for the cooperative. Over-the-counter car loan production totaled $60 million and balances grew 16% while indirect car loan production totaled $115 million and balances grew 29% vehicle loan market share numbers were as follows: Johnson County 30%; Linn County 13%; and Poweshiek County 15%. Personal unsecured loan balances were relatively flat as balances increased a modest 1.5%. Credit card balances grew $6 million, a healthy increase of 15%. Loan quality improved in both terms of lower delinquency and reduced charge-offs. Our delinquency ratio finished at 0.60% (down 18 basis points). Net loans charged off decreased by over $1 million and finished the year at 0.36% (down 22 basis points). UICCU delinquency and charge-off ratios were both significantly lower than our peer group averages for Your Credit Committee is dedicated to protecting the safety and soundness of your Credit Union and looks forward to the continued opportunity to care for the borrowing needs of our members by making money available and conveniently accessible, offering excellent loan products and services, and providing exemplary service. As authorized by the Credit Union s by-laws, the Audit Committee retained the accounting firm of McGladrey & Pullen, LLP to provide external auditing services during the past year. As in years past, McGladrey & Pullen s comprehensive audit report indicated that the Credit Union s financial statements are presented in accordance with generally accepted accounting principles. Your Credit Union also conducts internal audits of all areas of the UICCU to audit compliance with internal policies and procedures, as well as adherence to state and federal rules and regulations. The Audit Committee wishes to commend the Internal Audit department for their continued good work on behalf of the Credit Union s membership. During November 2011, the Credit Union received its examination by the Iowa Credit Union Division and the NCUA, as of September 30, This exam focuses on financial risk areas and your Board of Director s and Credit Union management s oversight and operational management of these areas. The exam focuses on the UICCU s lending and investment policies, its asset liability management policies, and its ongoing performance as measured by several key financial ratios such as earnings and capital adequacy. Your Credit Union received a favorable examination report from its regulators. All Credit Union accounts are federally insured up to $250,000 by the National Credit Union Share Insurance Fund. In addition to deposit insurance, the Credit Union also maintains a multi-million dollar faithful performance bond, which provides coverage for our professional staff and volunteer directors. Respectfully submitted, Fred Mims, Chair Audit Committee Respectfully submitted, Scott Byers, Chair Credit Committee

5 unaudited Financial Statements Condensed Statement of Financial Condition December 31, 2011 and 2010 Loan Mix 2011 Assets Net Loans $1,233,796,000 $949,296,000 Cash and Cash Equivalents $6,269,000 $21,920,000 Investment securities and Federal Home Loan Bank stock $87,995,000 $93,240,000 NCUSIF Deposit $9,187,000 $7,426,000 Other Assets $57,226,000 $27,031,000 Property and equipment $27,870,000 $18,440,000 Total Assets $1,422,343,000 $1,117,353,000 Liabilities and Members Equity Members Shares and Savings Deposits $491,288,000 $387,685,000 Members Certificate and IRA Deposits $596,322,000 $493,063,000 Federal Home Loan Bank Advances $206,250,000 $135,650,000 Other Liabilities $12,615,000 $6,290,000 Members Equity $115,868,000 $94,665,000 Total Liabilities and Members Equity $1,422,343,000 $1,117,353,000 Condensed Statement of income Years Ended 2011 and Interest from Loans $64,299,000 $53,874,000 Interest from Investment Securities and Other Interest $692,000 $976,000 Total Interest Income $64,991,000 $54,850,000 Loan Mix 2010 l Commercial 12% l New Auto 5% l Used Auto 17% l Personal 3% l Credit Cards 4% l Home Equity 14% l First Mortgage 45% Interest Paid on Borrowed Funds $4,059,000 $3,849,000 Interest Paid on Member Shares and Savings Accounts $6,684,000 $5,308,000 Interest Paid on Member Certificate and IRA Accounts $13,333,000 $11,001,000 Total Interest Expenses $24,076,000 $20,158,000 Net Interest Income $40,915,000 $34,692,000 Other Operating Income $17,180,000 $16,565,000 Operating Expenses $31,392,000 $28,331,000 Provision for Loan Losses $5,532,000 $5,350,000 Net Income $21,171,000 $17,576,000 The audited financial statements including the independent auditors unqualified report is available upon request. l Commercial 12% l New Auto 5% l Used Auto 19% l Personal 4% l Credit Cards 4% l Home Equity 16% l First Mortgage 40% Assets 2007 $620,000, $774,000, $898,000, $1,117,000, $1,422,000,000 Loans 2007 $541,000, $696,000, $768,000, $949,000, $1,234,000,000 deposits 2007 $494,000, $624,000, $687,000, $881,000, $1,088,000,000 Equity 2007 $54,000, $63,000, $76,000, $95,000, $116,000,000

6 We offer these services Loan Services Home Loans Auto Loans Commercial Loans Home Equity Loans Personal Loans Recreational Vehicle and Boat Loans Credit Cards Deposit Services Checking Services Savings Accounts Money Market Accounts Certificates of Deposit Individual Retirement Accounts Investment services & Insurance* Trust Services Brokerage Services 401(k) Plans Retirement Planning Asset Management Mutual Funds Pension Rollovers Auto, Home & Life Insurance *Investment and insurance services listed are through UICCU Investment Services Locations Westside Iowa City : 825 Mormon Trek Blvd. Downtown Iowa City : 500 Iowa Ave. Eastside Iowa City : 2525 Muscatine Ave. Coralville : nd St. North Liberty : 585 W. Penn St. Grinnell : 705 6th Ave. hiawatha : 405 S. Blairsferry Crossing Westdale : 2340 Edgewood Rd. SW vinton : 412 1st. Ave Cedar falls : 4728 University Avenue Suite B marion : 727 Oakbrook Dr. (Coming in 2013) Our Mission To improve the quality of life in communities we serve by promoting the financial well-being of their residents. The UI Community Credit Union serves persons living or working in 42 counties in eastern Iowa. Membership is also open to relatives of existing members and University of Iowa alumni. Toll free: Our web site: Board of directors Dean Borg : University of Iowa (retired) Scott Byers : Gibbs Lamb Drown Commercial Real Estate Advisors Karin Franklin : City of Iowa City (retired) Jean Harney : (Secretary), ACT (retired) Tom Lepic : Lepic Kroeger Realtors Charles McComas : McComas-Lacina (retired) Pat McGrath : McGrath Automotive Group Fred Mims : University of Iowa Mark Moser : (Vice-chairperson of the Board), University of Iowa Laura Reed : (Chairperson of the Board), Mercy Medical Center, Cedar Rapids advisory boards During 2011, the University of Iowa Community Credit Union held four Advisory Board meetings in both Linn and Johnson Counties. The Advisory Boards are made up of 12 community members each representing a different segment of the community. The objectives of the Boards are to make the Credit Union aware of opportunities for involvement and public relations in the community and to also act as a sounding board for new UICCU products and services. The Advisory Boards represent a diversity of skills, expertise and experience and meet with the Senior Team of the Credit Union. johnson county advisory board Don Jackson : Procter and Gamble (Retired) Joe Bolkcom : State Senator Kelby ScandretT : Product Manager, McKesson Provider Technology Dan Brown : Community Advocate Deb Dunkhase : Executive Director, Iowa Children s Museum Bill Nelson : Director, UI Office of Student Life Diana Lundell : Assistant V.P. Marketing and Communications, University of Iowa Health Care Steve Anderson : Attorney, Owner Hawkeye Settlement Services Bob Rehfuss : CPA Abdul Zubaid : Sales Professional, Stryker Spinal Device Susan Farrell : Brand Specialist, Carousel Motors Tricia Van Roekel : Realtor, Lepic Kroeger Realtors linn county advisory board Tom Hobson : Senior Manager, Rockwell Collins Diane Stefani : Vice President Mercy Foundation, Cedar Rapids Shannon Booth : Broadcast Product Director, Source Media, KCRG TV9 Brian Fagan : Attorney, Simmons Perrine Moyer Bergman Kyle Skogman : President Skogman Companies Bob Buntz : Retired, Former President/CEO of Horizons A Family Service Alliance Jeff Cannon : Senior Vice-President, Diamond V Mills Dave Wright : Owner Dave Wright Nissan Bill Jurgensen : Retired, former director of Share Holder Services for Alliant Energy Mike Long : Duane Arnold Energy Center Ben Rogers : Linn County Board of Supervisors, Dist. 3 Laurel Day : Exec. Adm. Superintendent s Office CRCSD/ Board Secretary