THE POWER OF COOPERATION Investing in you

tever Wherever they go, wha ... they do, Sue and John

2005 ANNUAL REPORT

Letter from the Chairman and President

THE POWER OF COOPERATION

A difference you can see and value you can feel We know being a cooperative makes us different than a for-profit financial institution, but how does it affect you? How can you see and feel the difference being part of this credit union makes in the lives of you and your family? What do we do that makes us different? What do we do that helps us achieve our goal of being the best financial institution you’ve ever experienced? Simple. Everything we do is focused on what’s best for you, our member…now, and through the many changes and events in your life. Because we are member-owned, member-driven, and member-focused, we take our vision of wanting to be the best financial institution you’ve ever experienced very seriously. Consider a few questions. In these times when our competitors are deriving huge profits from fees, can you name a financial institution that has eliminated fees? Wright-Patt Credit Union did…10 of them in 2005. With the rapid escalation in housing costs, when was the last time you found a way to earn money back on a real-estate transaction? Wright-Patt Credit Union has a way…members earned over $43,000 in rebates in 2005.

ommel Edward T. Bl Chairman

...are powered by on . the power of cooperati

In this world of fine print and failure to follow through on commitments, how often do you receive a guarantee that your mortgage costs will be as promised? At Wright-Patt Credit Union, you will.

With credit card companies seemingly offering credit cards to just about anyone, how many of them assist their customers in working their way out of debt and credit trouble…or even better yet, help them stay out of trouble in the first place? Wright-Patt Credit Union does. With identity theft rampant in our society, how many financial institutions offer you free assistance in recovering your identity if it is stolen? Wright-Patt Credit Union will.

Douglas A. Fe cher President/CEO

How often do you see a lender increasing their commitment to home ownership in the community by offering a mortgage loan with lower income requirements, lower down payments, and below market interest rates to those who need it most? Wright-Patt Credit Union’s HLPR loan program does just that. All the above are initiatives undertaken by Wright-Patt Credit Union in 2005, illustrating that here, “the power of cooperation” is more than just a phrase. It’s the cooperative difference you can see and feel. We thank you for your membership in 2005, and look forward to bringing you additional value this year – and in the years to come – that is made possible by our philosophy and commitment as your community financial cooperative.

Edward T. Blommel Chairman

Douglas A. Fecher President & CEO

2005 ANNUAL REPORT

Investing in you

THE POWER OF COOPERATION The Power of Cooperation…

...Investing in you

Our member-owners understand that by making use of Wright-Patt’s products and services, you are making an investment in your financial cooperative…investing in each other, yourself, and your communities. The board, management, and staff of your credit union understand this too, and we make it our passion every day to create the services and conveniences you need to make your life better, and to increase the value you receive by being a member of the credit union.

As a member-owned financial cooperative, we’re committed to increasing the value you receive from your credit union by providing products and services that help you and your family through life. In that regard, 2005 can truly be considered a success.

investing in your basic financial needs

Good Faith Guarantee. As a member-owned organization, we believe in being as honest and upfront with you as possible. That’s why we introduced our Good Faith Guarantee on mortgage closing costs in 2005. This guarantee promises that the closing costs on your mortgage will not be higher than what we quote, or we’ll pay the difference.

Our primary goals will always be to help members build their personal savings and provide money-saving loans for provident and productive purposes. In 2005, member deposits exceeded $941 million and over $323 million in new loans were issued to members. We also welcomed over 22,000 new member-owners to the cooperative, and look forward to providing them the value and benefits of credit union membership that our longer-term members have been enjoying over the years. If you have a friend, co-worker, or family member who you think would benefit from the value provided by your credit union, please encourage them to join!

investing in home ownership Home ownership soared in 2005 to the tune of 561 new mortgage loans to members for a total of over $61 million, with over $14 million being issued to 156 members who were buying their first home. In addition, $77 million in home equity loans were issued to members. We also introduced several new home loans and programs in 2005, including the HLPR loan program, which is part of a nearly $1 billion nationwide initiative designed to help members of modest means buy their first home.

investing in your community Wright-Patt Credit Union teamed up with many local organizations in 2005 to help improve the communities where you live and work. Our work included conducting financial awareness classes at Fairborn High School, Centerville High School, Wright State University, Wilmington College, and YMCA Junior Leadership of Dayton to teach students about the wise use of credit, developing financial goals, personal budgeting, and sound personal financial management techniques. In addition, we donated resources to more than a dozen local organizations, including Wright-Patterson Air Force Base and Wright State University.

investing in member-owned small businesses Wright-Patt’s small business services once again won praise from the business owners we help. In our second full year of offering services to help small business owners grow and expand their businesses, business deposits grew by over $2.6 million, an increase of 117%, and money lent to businesses grew by almost $3 million, a 60% increase.

investing in your long-term goals

investing in home ownership

Home Rebate Program. By using an affiliated Home Rebate Program Realtor® to buy or sell your home, you can receive a rebate of 20% of your Realtor’s sales commissions. This savings can be used toward the down payment, applied to closing costs, or taken as cash at closing. HLPR loan. Our members of modest means sometimes struggle to afford the American dream of home ownership. To help, we began participating in the HLPR loan program, which offers mortgage loans with little to no down payment and rates 1% below the market interest rate to borrowers who are at or below the area’s median income level. We have initially pledged $7.5 million in HLPR loan funding for our members as part of a nearly $1 billion nationwide effort by credit unions to help members of modest means achieve the dream of home ownership.

investing in service Computer upgrade. The upgrade of our primary data processing system in 2005 was more than a boost to our computer system. As a result, members now enjoy faster and more accurate service, as well as greater convenience. The computer upgrade also allows the credit union to operate more efficiently and at a lower cost, allowing us to offer you higher deposit rates, lower loan rates, overall lower fees, and increased service and convenience. Easier-to-read statements. Easier-to-read statements were just one of the improvements made possible by the computer upgrade. The most useful features of the new statements are the quick overviews of account balances and more detailed account information and transaction history.

In 2005, 2,374 members looked to Wright-Patt, through CUSO Financial Services, L.P. (CFS), our broker/dealer,* for guidance in planning their financial futures. From college planning and 401(k) rollovers, to stocks and bonds, mutual funds, annuities, and more, it was another successful year for the investment team and the members they help. The average assets managed by the Financial Advisors were approximately $35,000 per member, while some members looked to the Financial Advisors to manage as little as $500.

2005 ANNUAL REPORT

Investing in you

THE POWER OF COOPERATION Home Banking and Call-24.™ With the computer upgrade, we were also able to make enhancements to our home banking and Call-24 systems. Through home banking, you are now able to view information on your Wright-Patt mortgage loan, set-up future and recurring account transfers, and have more control over viewing your account histories. Call-24 now allows you to obtain credit card information, perform cross account transfers, and change your audio code (PIN) 24 hours a day, 7 days a week, for increased security, should you lose your PIN or have it stolen.

investing in convenience New, relocated and remodeled member centers. Our member centers became more convenient and comfortable in 2005. During the fall, we opened a new member center in Englewood, and added a new member center in Greenhills thanks to our merger with the Greenhills Credit Union—welcome to our new members in Greenhills! In addition, the Wilmington Member Center was relocated to a more comfortable, free standing location with drive-thru service, and the Wright State Member Center was relocated to a more convenient location within the Student Union.

Bump Rate Share Certificates. When investing in a share certificate, you are no longer tied to the rate at the time of opening the certificate. The Bump Rate Share Certificate gives you the freedom to “bump up” your rate one time during the term of your certificate, should dividend rates rise. Identity theft recovery assistance. One of the most rapidly growing crimes of the 21st Century, identity theft can strike without warning. By teaming up with Identity Fraud, Inc., we’ve provided every Wright-Patt member with access to free identity recovery assistance should you ever need it. Consolidated credit card offering. Just in time for the holiday shopping season, our credit card program was simplified, providing you enhanced value through lower rates and no annual fees, cash advance fees, or balance transfer fees on all Wright-Patt Credit Union credit cards. And for those members borrowing for the first time, a First Time User credit card was introduced, providing the opportunity to develop a solid credit history through the responsible use of credit.

investing in knowledge Free financial guidance for members. Through our partnership with Consumer Credit Counseling Services of the Miami Valley, members are now able to receive confidential, expert credit counseling free-of-charge at any of our 18 member centers. Over 350 members benefited from one-on-one, face-to-face consultations in 2005, while another 560 members took advantage of free phone consultations.

Visa® Gift Cards. The holiday giftgiving season was a little less stressful for Wright-Patt members in 2005 thanks to the new Wright-Patt Visa Gift Cards. Accepted anywhere you see the Visa logo, WrightPatt members can now give the perfect gift every time.

Member education. Our commitment to member education continued in 2005, as we expanded our series of no-obligation financial planning seminars, available through our broker/dealer CUSO Financial Services, L.P. (CFS).* We also added free seminars on topics such as home buying, small business services, family budgeting, and “SMART” Financial Success. Throughout 2005, members enjoyed increasing their financial “smarts” by attending one or more of the over 60 seminars provided by Wright-Patt.

investing in value Elimination of 10 service fees. Fees at a not-for-profit cooperative should only apply when recovering the cost associated with providing a service or for guiding responsible use of accounts to the benefit of all members. The elimination of 10 service fees in 2005 helped exemplify that philosophy, while saving members an estimated $18,000 last year. Tax preparation discounts. Tax time is a given for all of us. In 2005, WrightPatt partnered with H&R Block, giving you the opportunity to have your taxes professionally prepared at a below-market fee. Over 2,700 members took advantage of this service, saving them over $45,000 in tax preparation expenses. Monthly dividends on share certificates. Beginning in 2005, the power of cooperation pays more often. By paying dividends monthly on share certificates, instead of quarterly, members experience higher returns over the term of their certificates through the benefit of compounding interest.

Investment products and services offered through CUSO Financial Services, L.P. (CFS) are not NCUA/NCUSIF insured, not Credit Union guaranteed and may lose value. Advisors are employed by Wright-Patt Credit Union (WPCU), and registered through CFS. WPCU is in partnership with CFS. (Member NASD/SIPC)

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2005 ANNUAL REPORT

Investing in you

THE POWER OF COOPERATION 2005 Board of Directors

WPCU Mem ber for 22 years Board Mem be plus 2 year r for 3 years, s as Asso ciate Director

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WPCU Member for 27 years

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Board Member for 23 years

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WPCU Member for 14 year s Board Member for 7 year s • Favorite credit unio n products or services are online ban king and bill pay •

Favorite cr edit union products or services are online se rvices

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Member Center visited most often is One Dayton Centre

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WPCU Member for 31 years

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Board Member for 25 years

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Enjoys boating

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Howard E. Mark s Vice Cha irman

Blommel Edward T. Chairman

Favorite credit union product or service is online banking

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Enjoys ra cque reading an tball, d golf

Thadd is R . Ca Directo tes r

Member Center visited most often is Area B

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WPCU Member for 23 years Board Member for 8 years

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Favorite credit union product or service is a home equity line of credit

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WPCU Member for over 30 yrs

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Board Member for 21 years

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Favorite credit union product or service is surcharge-free ATMs through Alliance One and other partner-networks • Enjoys reading

Joseph H. Mucci Treasurer

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WPCU Member for 10 years

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Board Member for 9 years

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Favorite credit union products or services are direct deposit and Call-24

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Member Center visited most often is Area B

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Enjoys golf

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WPCU Member for more than 20 years

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Board Member for more than 20 years

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Member Center vis ited most often is Gantt

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Enjoys gardening

Member Center visited most often is Troy

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Enjoys photography

Joseph L. Linsenme yer Director

Enjoys golf

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WPCU Member for 40 years

• Board Member for 39 years • Enjoys dancing the polka

Enjoys foxhunting and quilting

Carolyn O. Uecker Director

-Pinkerton Frieda L. Legienza Director Emeritus ars ber for 11 ye WPCU Mem ars ctor for 5 ye re Di te cia • Asso n io un it ed cr • Favorite rvice is a product or se t account ke ar m ey mon echanics m to au • Enjoys and detailing

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Larry L. Smith Secretary

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Associate Director from November 2000 through June 2001

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Board Member from June 2001 through April 2005

rto William E. Ba ctor Associate Dire

for 40 years WPCU Member ars mber for 24 ye • Board Me st mo d ite vis r Cente • Member ints often is Five Po Enjoys fishing

Phyllis L. Lo we Former Dire ctor

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cG rath Michael D. M surer Assistant Trea

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WPCU Member for 8 years

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Associate Director for 3 years

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Member Center visited most often is Cross Pointe

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Enjoys scrapbooking

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Robert D. Wiener Assistant Secretary

Leah C. Hanseman Associate Director

from Associate Director ough November 2001 thr March 2002 m Board Member fro h March 2002 throug March 2005

Gary R. Uremovic h Former Director

2005 ANNUAL REPORT

Investing in you

THE POWER OF COOPERATION Members’ Share Accounts Composition

Statements of Financial Condition

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DEC 31, 2005 & 2004 ASSETS Cash and Equivalents Investments Loans to Members Less Allowance for Doubtful Loans Other Assets Total Assets

2005 $102,336,451 277,584,198 657,392,757 (6,025,306) 48,023,275 $1,079,311,375

2004 $92,356,834 296,105,456 613,787,282 (5,497,719) 43,099,602 $1,039,851,455

$941,837,522 5,733,227

$912,994,684 4,786,977

22,877,312 2,809,443 108,567,436 (2,513,565) 131,740,626 $1,079,311,375

22,877,312 2,859,864 95,941,131 391,487 122,069,794 $1,039,851,455

2005 $40,808,420 12,601,749 53,410,169 17,636,235 35,773,934

2004 $37,926,040 10,804,031 48,730,071 14,198,938 34,531,133

4,571,672 20,553,850 39,180,228

4,113,897 17,640,725 36,527,035

$12,575,884

$11,530,926

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Loan Portfolio Composition

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LIABILITIES AND MEMBERS’ EQUITY Members’ Share Accounts Other Liabilities Members’ Equity: Statutory Reserve Specific Reserves Retained Earnings Net Unrealized Gain on Investments Total Members’ Equity Total Liabilities And Members’ Equity

Statements of Income YEARS ENDED DEC 31, 2005 & 2004 Interest on Loans Interest on Investments Total Interest Dividends Net Interest Income Provision for Loan Losses Non-Interest Income Non-Interest Expenses

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Net Income

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2005 ANNUAL REPORT

2455 Executive Park Blvd. P.O. Box 286 Fairborn, Ohio 45324 937-912-7000 n 1-800-762-0047 (TDD) 937-912-7001 www.wright-pattcu.com

3/06