In short, Verity Credit Union continues to be a strong and stable financial institution and we are dedicated to providing the best member service possible.

In short, Verity Credit Union continues to be a strong and stable financial institution and we are dedicated to providing the best member service possible.

Verity Credit Union ended the 2010 year financially stronger than we had expected. With a net income of $2.1 million, our bottom line was higher than it has been in several years. Much of this was due to the cost cutting measures we employed in 2010. Additionally, we saw our provision for loan loss decrease in the last half of the year.

Our reserve ratio, which most consider to be the truest barometer of financial stability, grew from 7.61% to 8.53%, well above the threshold to be considered well-capitalized.

Even with this good news, we continue to approach the future with prudence. The economy is still struggling, with unemployment figures stagnating and housing values slipping. We continue to work aggressively to ensure the credit union does all that it can to be repaid on the loans we made. We have a seasoned, talented financial counseling department that helps struggling members budget and repay their commitments.

We are watching the interchange debate closely. As it stands now, the changes congress is suggesting only affect institutions over $10 billion (far bigger than we are), however, if there is a trickle down effect and we are eventually hit by these changes, it will have tremendous impact on our ability to operate as we have historically. We will need to develop other sources of revenue.

Additionally, loan demand continues to be weak, which makes paying higher dividends on deposit accounts difficult. Although our Cartwheel Checking pays an impressive 1.55% APY for members who meet the monthly qualifications. Additionally, our Investment Services Department, can advise members on other investment options (click here for all of the disclosures).

In short, Verity Credit Union continues to be a strong and stable financial institution and we are dedicated to providing the best member service possible.

William R. Hayes

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