Board of Directors Report ' 2008 '

The most significant event in 2008 was and continues to be the worldwide economic crisis. We are facing challenges not seen since the Great Depression and the current economic Slowdown most likely will last through 2009 and potentially into 2010. The crisis is in large part due to the subprime lending practices in the United States and the sale of complex financial instruments. A number of financial institutions throughout the world have failed and indications are that there may be more to come. Fortunately the Canadian banking system, due to conservative business practices and regulations, is one of the strongest in the world.

While the 3M Employees Ontario Credit Union will no doubt be negatively impacted by lost jobs and diminishing property values in our community, we continue to serve our members, meet our obligations, and set some money aside for the darker days to come. Our credit union is well positioned to withstand a medium term recessionary period. We remain well managed and well capatilized.

Unfortunately many people will be losing their jobs or facing early retirement. If due to a lay-off or another financial setback you need assistance come in and talk to Marg Dempsey our loan officer. Our professional team understands the issues and will be able to offer valuable insight and advice. We want you to know during tough times that we're here to help.

It's not all doom and gloom. The good news is that our liquidity is high at a time when liquidity is at a premium for most financial institutions.

We are reminded by today's economic conditions of the very beginning of credit unions throughout Canada and the United States. People needing help and some financial assistance to carry them through the tough curve of their Financial crisis.

The Credit Union mission is to foster the safety and soundness that our member have come to expect from their Credit Union.

I would hereby like to congratulate the volunteers who presently make up the various committees and serve our members as volunteers to the Board of Directors. Their professionalism and progressive attitude is and will always be the driving force of our successful Credit Union.

On behalf of the Board of Directors, I would like to express our gratitude to Marg Dempsey, who works tirelessly to meet the needs of our members and who in conjunction with Kevin Stewart our treasurer have done a remarkable job in a most difficult year. We are also grateful for the Audit and Credit Committees who have responded well to the extra work load and for their dedication to the credit union.

Sincerely, Sam Cornelisse
President: 3M Employees' (Ontario) Credit Union Ltd.