CFCU Community Credit Union Completes Most Successful Year Ever!

Ithaca, NY, February 14, 2008 — CFCU Community Credit Union reported its most successful year in its history, setting records in loan growth, deposit growth, asset growth, dividends paid to members and net earnings.

The Credit Union closed 2007 with over $309 million in total loans. This is up nearly $50 million or 19% over 2006. In addition, shares (or total deposits) increased by $59 million to close the year at nearly $403 million, and total assets grew to $479 million, an increase of $68 million. The Credit Union is rapidly approaching a half billion in total assets, an important milestone for the institution. It should cross that mark sometime in 2008.

With low rates, no closing cost options and increased staffing in its in-house closing department; the Credit Union closed nearly $90 million in residential mortgages during 2007. It remained the leading residential mortgage lender in Tompkins County.

Loan delinquency also remained extremely low at .23%, down again from a low .32% in 2006. The low delinquency rate is attributable to sound underwriting standards and a strong asset recovery department. CFCU has not participated in sub-prime mortgage lending. In addition, the credit union has not made any investments in sub-prime mortgage instruments such as structured investment vehicles (SIV) or collateralized debt obligations (CDO), so the credit issues that have impacted other institutions around the country have not affected it.

On the income side, CFCU had its sixth consecutive record-breaking year with net earnings of $7.5 million in 2007. The institution paid out nearly $8.5 million in dividends to members, an increase of 48% over 2006. In fact, dividends paid to members were up over 110% over the past two years. The Credit Union’s capital remained strong, as well, ending 2007 with a net worth ratio of 15.21%.

“As a not-for-profit financial cooperative, with a volunteer board of directors and committees, and lower operating costs, CFCU Community Credit Union is able to return operating income back to our members in the form of lower fees and favorable interest rates whether they borrow or save,” said Robert O. Witty, CFCU president and CEO. “In 2007, we were able to return a significant amount of money back to our members with extremely competitive loan rates and high rates of return on share savings, share certificates, interest on checking accounts and Individual Retirement Accounts.”

Early in 2007, CFCU also opened its second branch in Cortland, a 5,000 square foot, full-service facility, located on the corner of Port Watson and Franklin Streets. This gives the Credit Union a total of eight facilities in Tompkins and Cortland Counties to serve its 56,000 members. As a community-chartered credit union, CFCU has the ability to serve anyone who lives, works, goes to school or maintains a business in Tompkins or Cortland Counties.

“2007 truly was a remarkable year for the Credit Union,” Witty reported. “CFCU continues to be one of the strongest performing and well-capitalized credit unions in the nation. We will work to continue this trend by offering the most outstanding service and value to consumers in the counties we serve.”