Annual Report

Minutes of the 2007 Annual Meeting

The Annual Meeting for Coconino Federal Credit Union was held on February 17, 2007 at the Woodlands Village Office.

The meeting was called to order by James Muns, Chairman, at 10:00 am. Members of the Board and Supervisory Committee were introduced.

The first order of business was the ascertainment of a quorum. There was a sufficient number of members present to reach a quorum.

It was moved by Joe Brown and seconded by Barbara Brown to approve the minutes of the 2006 Annual Meeting. Motion carried.

There was one item of new business on the agenda. Ted Dwyer will be offering the members the opportunity to accomplish their financial goals. The service will begin March 2007.

The Nominating Committee presented a ballot of three names. They were Rob Cook, Carolyn Boehle, Incumbent and Bob Orrill, Incumbent. Nominations from the floor were called and none were forthcoming. Rob Cook and Bob Orrill were the successful candidates.

Door prizes were awarded by Romaine Heap, President.

It was moved by Joe Brown and seconded by Sam Grammer that we adjourn the meeting. Motion Carried. The meeting was adjourned at 10:33 am.

Carolyn Boehle, Secretary

Report from the Chairman of the Board

2007 has been a year of changes for Coconino Federal Credit Union. We have opened the Westside office with all services offered, added several new ATM’s , and have begun several new member service programs.

Two of the new services that are now available are on-line bill pay, which many members have requested, and an overdraft advance program. These programs, added to the existing Estatements, safety deposit boxes, and home equity lines of credit (HELOC), should help the members in managing their money affairs. In this time of unsettled financial climate, the Credit Union is here to continue our basic philosophy of People Helping People.

There have been staff changes in the past year. Romaine Heap, our past President/CEO, has moved on to Alaska. I am pleased to announce that Jennifer Harris is the new President/CEO of Coconino Federal Credit Union. Jennifer brings a wealth of experience and expertise to this position, and we welcome her to her new job.

Leroy Chavez is leaving the Board of Directors after more than two decades of service, and will be missed. The Board is made up of volunteers, and is open to any member of the Credit Union. Volunteer applications can be picked up at either office for interested members.

I would like to thank the entire Credit Union, volunteers on the Board and Supervisory Committee, the management and staff, and all of our membership. It is because of all of us that Coconino Federal Credit Union is successful.

Dan Smith, Chairman

President’s Report

I would like to thank the board of directors, staff and membership for welcoming me as CEO in 2007. When I started with the credit union in April of 1984, we were a small $7 million credit union that only offered shares and loans. Now look at us, a full-service operation providing a full range of products and services to our members.

In 2008 we are looking forward to providing our members more value with competitive savings rates, low loan rates and low fees. We recently added more products to make your lives a little easier such as Online Bill Pay, VISA Debit Gift Cards, and Overdraft Advance.

Experience the difference of credit union service. When you belong to Coconino Federal Credit Union, you are a member. You are the owner of a not-for-profit cooperative - an association with strong, shared commitment to the financial well-being of its members. We look forward to serving you with the most value for your time and money.

Jennifer R. Harris, President/CEO

Supervisory Committee Report

The Board of Directors appoints the members of the Supervisory Committee whose task is to monitor and evaluate the operation of the credit union following the policies and regulations of the National Credit Union Administration. This is done with the help of internal auditors and an independent accounting firm who report to the supervisory committee and the credit union.

Audits and reviews by internal auditors, as well as an independent accounting firm give a clear picture of how the credit union is doing financially. Together the committee and auditors determine if the credit union is following regulations and ensure that the credit union is actively using sound financial loan and investment programs which comply with NCUA regulations.

The supervisory committee will continue to meet in 2008 to monitor the safe and sound operation of Coconino Federal Credit Union.

Betsy Suter, Chairperson

Financials