I am confident that you will agree that 2009 will go down in history as a year of unprecedented financial uncertainty and instability.  Though we are not totally out of it yet, it would seem that the economic crisis has bottomed out and we are slowly on the rebound.  We have navigated through some really tough times, and face a lot of challenges going forward. 

The credit union has been able to navigate through all of this, and in the end deliver some pretty admirable results given the economic landscape of 2009.  For the year we grew in assets (7.31%), deposits (9.30%) and loans (2.13%) while keeping delinquent loans and losses under control.  In fact both areas ran at less than half the national average.  This bodes well for the future performance of the credit union.

Additionally, the credit unions operations were again profitable last year, but took significant assessments from the NCUA (our regulator and deposit insurer) and our correspondent credit union, Constitution Corporate Federal Credit Union (CCFCU) which is the credit union’s equivalent of the Federal Reserve Bank.  While your credit union deposits are insured up to $250,000 no tax payer money is used to maintain the insurance fund; credit unions fund it from their operations.  As a result of other credit unions around the country failing and financial struggles at CCFCU we were assessed a staggering $157,580 to rebuild the fund reserves.  As a result, while our net operations would have shown a positive net income of just under $17,000, we ended the year with a loss of $140,650.  It is important to note that we remain “well capitalized” at 9.01%; a full 2% above the regulatory minimum to be considered “well capitalized”.  The credit union remains in a very positive position to continue to “weather the storm”.

Please review the financial statements for the credit union when you get a chance.  Anyone on the board or management team will be happy to answer any questions you may have.

I would like to thank our outstanding staff for their dedication, perseverance, and professionalism, in what has turned out to have been one of the toughest financial times in our recent history. 

Thank you for your continued support and confidence in the credit union.  Without members like you, we would not be able to weather storms like these and still maintain our growth and financial stability through these tough times.  I am looking forward to continued growth and success as we all face the challenges this year is sure to bring.

Respectfully,

Aaron Choi

Chairman of the Board