1. 20 06 ANNUAL REPORT
P.O. Box 1937 Portland, Oregon 97207-1937
503-227-5571 + 1-800-452-0900 + www.unitusccu.com
Your savings federally insured to at least $100,000 and backed
by the full faith and credit of the United States Government
National Credit Union Administration, a U.S. Government Agency
Federally Insured by NCUA

2. 1937 Oregon Telephone Employee‘s Credit Union
REPORT OF THE SUPERVISORY COMMITTEE
formed July 7,1937
1942 Real Estate Loans introduced
1968 $10 million in assets T he summarized financial statement in-
formation included in this annual report
was prepared by Unitus Community Credit
Supervisory
Also under the direction of the Committee
Moss Adams LLP managed the 2006 verifica-
tion of members’ accounts. The outcome of this
1972 Employees of Oregon’s independent telephone
Committee
Union management and compiled from the audit further substantiates the responsible fi-
companies eligible to join
Credit Union’s consolidated financial state- nancial operation of the Credit Union.
1973 Name changed to Oregon Telco Credit Union ments. My thanks is extended to Committee mem-
In preparing the financial statements, bers for their time and energy given during the
1976 Moved to the newly built Oregon Telco Building
management depends upon the Credit past year. We look forward to serving the Unitus
1982 Checking Accounts introduced Union’s system of internal accounting con- membership in 2007 .
trols in meeting its responsibility for reliable
1983 ATM Card introduced
information. The Supervisory Committee,
1984 $100 million in assets
INDEPENDENT
which consists of four volunteer members Don Foreman
appointed by the Board of Directors, moni- AUDITOR ’S REPORT
1985 Wholly owned CUSO opened, offering insurance Chairman
and travel agency services tors the accounting system on behalf of all
Unitus members. Dan Duffy
1986 Debit & Credit Cards introduced To the Board of Directors
The Committee meets periodically with Ray Anderson and Supervisory Committee
Oregon Telco spearheads “Credit Unions for
the Board of Directors, the Chief Internal
Kids” ($7.3 million raised over next 20 years for Matt Goodwin Unitus Community Credit Union
Doernbecher Children’s Hospital) Auditor, and management to discuss ac-
Portland, Oregon
counting, financial reporting, internal con-
1992 50,000th account opened trol systems and processes, and auditing We have audited, in accordance with auditing
(over 28,000 members)
matters. standards generally accepted in the United
It is the Committee’s States of America, the consolidated statements
1998 Web Site introduced As part of fulfilling its duties, the Com-
opinion that the of financial condition of Unitus Community
mittee engaged the independent account-
1999 Online Banking introduced Credit Union’s
ing firm Moss Adams LLP to conduct the Credit Union and subsidiary as of December 31,
2000 Shared Branching introduced 2006 audit of the Credit Union and provide day-by-day prac- 2006 and 2005, and the related consolidated
an opinion of the financial statements as a tices remain in statements of income, members’ equity, and
2001 Oregon Telco first credit union in state
whole. A copy of the certified audit report is compliance with cash flows (not presented herein) for the years
to be granted community charter
$500 million in assets available for review by interested members the Credit Union then ended; and in our report dated February 23,
upon request. bylaws, state 2007, we expressed an unqualified opinion on
2002 First branch opened (Mall 205) and federal
The audit substantiated the solid finan- those consolidated financial statements.
2004 Name changed to Unitus Community Credit Union cial performance of the Credit Union and regulations, In our opinion, the information set forth in
MEMBERS Financial Services introduced, affirmed the operational practices of man- and acceptable the accompanying condensed consolidated fi-
offering assistance with financial planning agement. It also offers definitive evidence accounting nancial statements is fairly stated, in all material
2006 Headquarters moved to Unitus Plaza, where
that the membership’s assets are secure. It procedures. respects, in relation to the consolidated financial
sixth branch is opened is the Committee’s opinion that the Credit
statements from which it has been derived.
Business Services introduced Union’s day-by-day practices remain in com-
Unitus Mortgage established pliance with the Credit Union bylaws, state Moss Adams LLP
and federal regulations, and acceptable ac- Spokane, Washington
counting procedures. February 23, 2007
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3. Consolidated Statements of Income
Years Ended December 31,
2006 2005 A MESSAGE TO OUR MEMBERS
FINANCIAL
Interest income:
S TAT E M E N T S
Loans receivable $ 30,317,996 $ 24,527,061
Unitus Community Credit Union Investment securities
Interest expense:
3,281,800
33,599,796
3,948,749
28,475,810 N early seventy years ago, on July 7
1937, seventeen employees of
Pacific Telephone and Telegraph met to
, reserves—indicate that we have con-
tinued to meet the ever changing and
diverse needs of our members. (See
Consolidated Balance Sheets Unitus Community
Dividends and interest on form the Oregon Telephone Employee’s key indicator charts on page 4.)
members’ share accounts 16,930,588 12,798,799 Credit Union
Years Ended December 31, Credit Union. The purpose of the Credit Remaining true to our founding
Borrowed funds 37,275 177,499 Board of Directors
ASSETS 2006 2005 Union was to pool its savings and cre- principle of “people helping people” is
Net interest income 16,631,933 15,499,512 Terry Gavin
Cash and cash equivalents $ 28,458,252 $ 15,000,964 ate a fund for making low cost loans to what distinguishes Unitus to this day.
Loan loss (benefit) provision (55,270) 85,818 Chairman
Investments 51,402,655 83,963,949 members. By year’s end the number of Through the decades we have treated
Net interest income after Barbara Leonard
Loans, net of allowance 551,216,390 500,925,497 members had grown to 217 and their
, members like family, making a positive
Loan loss (benefit) provision 16,687,203 15,413,694 Vice Chairman
Accrued interest receivable 2,608,062 2,141,382 pooled assets totaled just over $3,000. difference in their lives and, in due
Non-interest income 9,117,777 4,116,416
Property and equipment, net 11,173,283 9,407,055 Non-interest expense The seven original Board mem- Don Mason course, the lives of their children and
NCUSIF Deposit 4,602,195 4,499,267 bers were Isaac W. Anderson, D.O. Secretary their children’s children. For many mem-
Compensation and benefits 8,881,042 7,848,397
Federal Home Loan Bank stock 2,746,300 2,746,300 General and administrative 9,976,343 8,110,609 Denman, Jake A. Ellis, Frederick M. Gordon Akeson bers, we have been the only financial
Other Assets 8,681,065 7,990,574 18,857,385 15,959,006 Gavin, Genard D. Gleason, H.S. Hayes, Director institution willing to finance a first car,
Total Assets $660,888,202 $626,674,988 Net Income $ 6,947,595 $ 3,571,104 and E.T. Healy. Worth noting is that Stacy Augustine issue a first credit card, and help with
Frederick Gavin was the grandfather of Director other financial challenges.
LIABILITIES AND MEMBERS’ EQUITY
Terry Gavin, our current Board Chair- Today, we find ourselves serving as
Liabilities: Tom Faulkner
man and co-author of this report. This Director many as five generations of the same
Members’ share and
savings accounts $575,958,569 $549,143,312 Consolidated Statements of Members’ Equity continuity from generation to genera- family! We look forward to serving
Pete Reinecker
Accrued expenses and tion is a recurring theme as we look each new generation and remain com-
Director
other liabilities 11,219,580 11,463,795 Members’ Equity back through the years. mitted to helping every member
Balance at December 31, 2004 $ 62,785,814 From our modest beginning in 1937 , Rhonda Cramer achieve the milestones of life, from
Total liabilities 587,178,149 560,607,107
Alternate Director
Members’ equity: Net income 2005 3,571,104 your Credit Union grew to become starting a family and buying a home to
Regular Reserves 22,489,988 20,559,198 Accumulated other comprehensive income: Unitus, embracing all people from all Will Rader paying for college and saving for retire-
Undivided Earnings 51,566,823 46,550,018 Net change in unrealized loss on walks of life in the seven county region Alternate Director ment. Each generation brings a new
securities available for sale (289,037)
Accumulated we now serve. Some 60,000 of our Charlie VanRossen set of specific needs and wants, and
comprehensive loss (346,758) (1,041,335) Balance at December 31, 2005 66,067,881 Alternate Director
friends and neighbors are Unitus mem- Unitus responds with the services and
Total members’ equity 73,710,053 66,067,881 Net income for 2006 6,947,595
bers, and total assets have surpassed solutions to satisfy them.
Total Liabilities and Accumulated other comprehensive income:
$660 million. These measures of suc- Unitus also makes a difference
Members’ Equity $660,888,202 $626,674,988 Net change in unrealized loss on
securities available for sale 694,577 cess—along with strong growth in in the community. In 2006, the gener-
Balance at December 31, 2006 $ 73,710,053 loans, member savings, and capital ous contributions of members and
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4. countless hours of volunteer work by without all the tricks and gimmicks of
our staff aided these local charities: typical credit cards.
K E Y I N D I C AT O R S
Doernbecher Children’s Hospital, • Unitus members now have free
675 550 60 600 75
SnowCap, Helping Hands, American access to over 25,000 ATMs coast-
Heart Association, Easter Seals, Relay to-coast, including more than 5,500 650 500 55 575 70
for Life, Schoolhouse Supplies, Make- ATMs in 7-Eleven stores. This is many
A-Wish Foundation, Oregon Mentor, thousands more free ATMs than any 625 450 50 550 65
Salvation Army, Clackamas Women’s other financial institution can offer! 600 400 45 525 60
Services, Good Neighbor Center, The Unitus members also have free access
Terry J. Gavin
Links, Habitat for Humanity, and a to more than 2,000 branch locations 575 350 40 500 55
Chairman ASSETS LOANS MEMBERSHIP SAVINGS CAPITAL RESERVES
number of other worthwhile programs through participating credit unions MILLIONS OF DOLLARS MILLIONS OF DOLLARS THOUSANDS MILLIONS OF DOLLARS MILLIONS OF DOLLARS
550 300 35 475 50
and community events. nationwide. 2002 ‘03 ‘04 ’05 ’06 2002 ‘03 ‘04 ’05 ’06 2002 ‘03 ‘04 ’05 ’06 2002 ‘03 ‘04 ’05 ’06 2002 ‘03 ‘04 ’05 ’06
Also during 2006 we introduced • OnLine BillPay is now included
new services and expanded others in free of charge with all Unitus checking
our continuing quest to better serve accounts, saving members both time In 2007 we are extending our mem- Unitus the opportunity to make a differ-
our members. Highlights included: and money. bership area to include Clark County, ence for you and your family. With our
• Our real estate department be- • Member Advantage CDs were Washington. Our free online banking deep local roots, we are also pleased
came a division of Unitus, gained its Patricia E. Smith introduced at above market rates to service, uOnline, is taking on a new to help generate jobs, dollars, and vol-
own name as Unitus Mortgage, and President/CEO reward members who have a Unitus look and many new features that will unteer resources that benefit the com-
Anyone who
introduced Home Value Packages that checking account, debit card, and direct benefit members. We will continue to munities where we all work and live.
lives or works in
save hundreds or thousands of dollars deposit. expand on the financial seminars and Multnomah, We have seen great success in our first
in closing costs for members who use Through the • Once again Unitus staff toured expert financial assistance we make Washington, seventy years, but we firmly believe
other Unitus services. decades we have area colleges in late summer and early available to members, as well as offer Clackamas, the best is yet to come!
• We opened our Beaverton Branch treated members fall, introducing students to low cost new ways for members to save money Marion,
in March, closely followed by the like family, checking, auto loans, and other ser- by making good use of Unitus services. Polk,
making a Yamhill or
Unitus Plaza in downtown Portland in vices geared to their needs. Watch for further announcements as
positive Clark County
April. The Unitus Plaza is home to our difference
• Unitus awarded 13 scholarships the year progresses. is eligible to Terry J. Gavin
second downtown Portland branch, as in their lives totaling $13,000 to members or chil- As a member-owned, not-for-profit join Unitus Chairman
well as our administrative offices and dren of members. Four high school financial cooperative, Unitus continues
Unitus Mortgage. seniors, four college undergraduates, to depend on the support of its mem-
• Our innovative Platinum Rewards and two college graduates earned bers today, just as it did in 1937 Your
. Patricia E. Smith
Visa Card debuted, featuring very com- scholarships, as did two outstanding fellow members who serve on the President/CEO
petitive rates, a low fee structure, and Latino students and one individual rec- Board, along with our management
an extensive array of reward choices— ognized for service to the community. team and staff, thank you for giving
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