2007 Annual Report

Working together to improve the economic well being and quality of life for all members through excellent service. It has been our mission from the start. And today, we continue on with that tradition. For more than 72 years, DHCU Community Credit Union has continued to grow and evolve to better serve your needs. Our growth has been built on the foundation of our cooperative principles:

People Helping People | Commitment to Service | Respect for the Individual
Fiscal Responsibility | Integrity, Ethics, Cooperation | Operate in Best Interest of Members
Responsive to Members | Positive & Supportive Work Environment

These guiding values help us to focus on our members each and every day, providing exceptional member service and an ever growing list of products to help you reach your financial goals.

Financially, DHCU had a very strong year, increasing assets by nearly 10% to more than $318 million dollars. DHCUs profitability index remained strong at .78% and our Net Worth Ratio ended the year at 10.06%.

Loan demand remained strong in 2007 as members looked to DHCU to help them achieve their goals. Our loan portfolio grew to more than $227million, an 11% increase over year-end 2006. This growth came from all lending divisions including a 21% increase in Indirect Autos, 13% in Real Estate loans, 4% in VISA credit cards and our newest division, Business Lending, grew to $1.6 million dollars. Loan delinquency ended the year at one-half of one percent, which, in these frequent bankruptcy times, is a remarkable achievement.

Deposits grew to nearly $274 million. A new program was created to reward members who look to DHCU for their financial services. Build A Rate offers members the opportunity to add to their interest rate based on the products a member uses. The more services used - the better rate a member receives.

QuickCash Loans were introduced as an alternative to Payday Lenders. QuickCash loans have helped members who might have otherwise used a payday lender and spent thousands of dollars in fees. In fact, DHCU helped one member stop their vicious payday lending cycle by eliminating a 500% interest rate loan at a Quad City payday lender.

DHCU.org also received an upgrade. Introduced in January 2008, a year-long re-design of our Web site was unveiled much to the satisfaction of our members. Fewer clicks will now get you the information you need. HomeBranch, our online account access program, introduced its new state of the art online security enhancement known as Multi-factor Authentication. Multifactor provides improved safety and security for personal and confidential account information while using our internet-based HomeBranch account access program. These changes were necessary due to the Federal Financial Institutions Examination Council (FFEIC) guidelines that were issued to all U.S. financial institutions to improve online safety to members.

"Where it's all about Community" is more than just a slogan. We know that without the support of our members and the Quad City community, DHCU would not exist. We believe in supporting the communities we serve and in 2007, Members of DHCU helped to clothe more than 500 area children through the Shoes That Fit organization. Our staff helped to contribute to United Way and more than 100 area events, schools and non-profit organizations with human and monetary aid. It is this kind of dedication and community mindedness that sets DHCU apart from other area financial institutions. So to our staff, I say thank you.

DHCU accomplished many things in 2007 and we look forward to an even better 2008. For starters, mid-year we will open a new office at 1101 13th Avenue, East Moline. Located directly adjacent to our existing branch, a new member service center is under construction with plans to open this summer. Additional property has been purchased at SouthPark Mall . . . finally. We have told you, for at least a few years that we would relocate along the perimeter of SouthPark Mall. Well finally, just before year-end 2007, the property agreement was finalized. We have purchased land and plan to build where the former Montgomery Wards Tire Store sits, just west of Gordmans and east of IHOP at SouthPark Mall. Plans are underway to construct and open this Member Service Center in 2009.

For more than 72 years, DHCU has been helping our members. We have grown to meet the changing needs and demands of todays busy lifestyles. And this will continue. We are pleased with the ongoing support our members give us - but we know to not take that for granted. You have many financial choices today, so we thank you for your support yesterday, today and tomorrow.

And last, but certainly not least, to the Board who give countless hours to represent you, volunteering to serve you - representing our members on each and every decision - I also say thank you for helping DHCU Community Credit Union to become the very best it can be.

Robert Jecks, Chairman
Terry R. Brahm, President/C.E.O.

2008 Board of Directors
Robert Gomez, Chairman of the Board
Steve Kratzberg, Vice Chair | Teri VanDyke, Secretary
Helen Brandt | Julie Germeraad | Robert Jecks | William Lauper
Floyd Mitton | Vince Papish, Jr. | W. Ron Trice