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  to Excellence
Executive Report
Commitment to Excellence
Dear Member/Owners,

In 1936, when BMI FCU was chartered, basic consumer financial services consisted        BMI FCU has also made a commitment to being a good corporate neighbor. Every
of simple saving and loan accounts. Fast forward 70 years and today consumers have      year the Credit Union supports numerous charities and service organizations. In 2006
many options for financial services. There is a cornucopia of traditional and non-      BMI FCU led Central Ohio credit unions in building a Habitat home. Funds from
traditional financial institutions, offering an amazing array of services and rates.    OSU football parking were used to support the construction. Staff members also
And to go along with this long menu of services is the fine print that may or may not   volunteered many hours to help with the construction.
explain how you may or may not get that great rate, premium or reward that was
advertised. Customer service? Maybe.                                                    BMI FCU is especially proud that the commitment to excellence by our long-time
                                                                                        director, Ben Freudenreich, received national recognition. In December 2006, Ben
What differentiates BMI FCU from other financial providers? The people who have         was recognized as the Credit Union Executive Society’s Director of the Year. This
made a Commitment to Excellence. Excellence is a complete package of services,          prestigious award was given to acknowledge Ben’s many years of service to Habitat for
rates and convenience. The Board of Directors, Management, and Staff of your Credit     Humanity, to his community, and to his Credit Union. Ben volunteered hundreds of
Union are all committed to providing premier member service. BMI FCU service            hours in building Habitat homes, including service as House Leader for the Central
starts with a friendly greeting at the teller counter or a real person answering our    Ohio Credit Union house.
phone. The outstanding service continues with knowledgeable, professional loan

officers and prompt personal service                                                                                             The commitment to excellence by the

when members need extra attention.                                                                                               Officials of BMI FCU has resulted in your
Finally we provide policies, forms               “Our employee’s Commitment to Excellence is what                                Credit Union receiving the highest overall
and disclosures that are clear, fair                                                                                             rating for safety and soundness given by the
and understandable.
                                                 differentiates BMI FCU from other financial providers.”                         National Credit Union Administration. This
                                                                                     Sharon Custer, President/CEO
                                                                                                                                 commitment to excellence was also recognized
The Officials of BMI FCU are                                                                                                     by credit union industry analyst Callahan &
committed to offering members the best possible saving and deposit rates. As a result   Associates, who ranked BMI FCU as #1 in Ohio for Total Return to Members. Total
of these great rates total deposits at BMI FCU grew $20M in 2006. Those member          Return to Members determines which financial institution returns the most back to
deposits helped fund the over $73M in loans made in 2006 for home purchases, new        members in deposit rates, loan rates and overall service.
cars, home improvements, etc. The Credit Union had a net growth of over $17M in
total loan volume.                                                                      The Officials, Management, and Staff of BMI FCU thank the members for their loyalty
                                                                                        and continued support. Throughout the year members are surveyed on their experience
The commitment to excellence also resulted in more convenient Credit Union              at BMI FCU. The overwhelmingly positive feedback that we receive gives us the
services in 2006. In September the Credit Union’s popular Bethel branch was moved       momentum to continue to pursue an even higher level of excellence.
to a new location with drive-thru teller services. Branch services will be enhanced
again with drive-thru and drive up ATM services in March 2007 when the Schrock
branch becomes the “Westerville Branch” at its new location: Main Street and
Cleveland Avenue.

                                                                                        Sharon Custer                               Denny Hockman
                                                                                        President and CEO                           Board Chair
Excellence in Leadership

Freudenreich selected as the # 1 Director in USA                                            The BMI Federal Credit Union Hall of Fame
                 In December of 2006, The Credit Union Executive Society (CUES)                        2006      Mary Pierce              2000      Hal Kain
                 selected BMI FCU Board Member, L. Ben Freudenreich as their                           2005      Battelle                 2000      Shirley Unverzagt
                 Director of the Year.                                                                 2003      Philip McRury            1999      Dorothy Phelps
                                                                                                       2002      John Gates               1998      Jack Deibert
                 The CUES Director of the Year award recognizes board members who                      2002      Jack Clayton             1998      Robert Stith
                 raise the bar of excellence in Credit Union volunteerism. Judging was                 2001      Arthur Brown             1998      Gus Serio
based on leadership positions held at the Credit Union, contributions to the Credit Union
movement, professional development, community service, and Credit Union performance
during the time the nominee has been on the board.

With more than 60,000 directors serving on the boards of 8,900 credit unions in the
                                                                                            Board Members
United States, the competition for this recognition is intense. Just being nominated for
this award is special. Being selected as the #1 Director in the Credit Union Industry
represents unsurpassed excellence in leadership.

BMI Federal Credit Union Hall of Fame Inductee
We have a long history of outstanding leaders associated with the Credit Union.
Recognizing their contributions to our excellence is why we established the BMI FCU
Hall of Fame. We would like to congratulate Mary Pierce, our 2006 inductee into the
BMI Federal Credit Union Hall of Fame.

A credit union member for 20 years, Mrs. Pierce has served the Credit Union in many
capacities. She established the Dick Pierce Memorial Scholarship at BMI and is the
                                                                                                  Front row L to R: Gwen Von Holten, Denny Hockman,
chairperson for our scholarship selection committee. Mrs. Pierce plays a leading roll in
                                                                                                  George Dailey, Ian Mercier
the selection of our scholarship winners each year and the distribution of our $12,000 in         Back row L to R: Jack Conner, Ben Freudenreich, Anne Broad,
scholarship money.                                                                                Steve Krzykoski, Steve Phillips, Kay Cooke, Phil McRury
Excellence in Service

BMI FCU Ranked # 1 in Total Return to Member                                               Remote Access
Your Credit Union has always delivered outstanding value along with excellent service.     24/7 Internet Access, Home Banking, and Free e-Bill Pay @
And over the last five calendar quarters, your Credit Union has set the standard for       You can manage your credit union account 24/7 right from the comfort of home or
excellence in the credit union industry. BMI Federal Credit Union has been ranked as       work with Member Connect, our PC home banking service. You can even pay bills
the #1 credit union in Ohio for Total Return to Member for over a year. This level         with online convenience when you use our totally free online e-Bill Pay service!
of consistently providing unparalleled value to our member/owners, quarter after
quarter, is virtually unmatched among our Credit Union peers.
                                                                                           Shared Branching
The Total Return to Member Index is a tool industry analysts use to compare the            We are a participant in the nationwide CU Service Center shared branching
performance of credit unions from around the country. The Index calculation                network. This provides our member/owners access to almost 2,500 credit union
considers 18 financial ratios covering the three core credit union functions of lending,   branches across the country. You can conduct financial transactions at any shared
savings, and product usage. The three main components of the index are: Return to          branch location just like you were in your BMI FCU branch office.
the Savers, Return to the Borrowers and Member Service Usage.

What does this mean for you, our member/owners? The index is empirical evidence            Surcharge FREE ATMs
that your credit union consistently provides outstanding, top rated value to you. Our      Your credit union also participates in two Surcharge-Free ATM networks, Alliance
commitment to delivering excellence is your guarantee of a safe and industry leading       One and Co-Op. These two nationwide networks provide our members with
return on deposits, loans, and the delivery of outstanding service.                        Surcharge-Free access to 29,000 ATMs.

Business Partnerships
We provide the benefit of credit union membership to the employees of more than
300 progressive Central Ohio Companies and we provide business services to a
growing number of small businesses. Each year we recognize our top business partners
who excel at communicating the benefits of credit union membership to their fellow
associates. The 2006 winners include:

Best CU Penetration: CSX
Best Sponsor Group: Liebert/Emerson
Outstanding Orientation Effort: Half Price Books
Credit Union Ambassador of the Year: Kim Collins, Commercial Movers Inc.
Best Small Business Award: Joseph Cooper
Excellence in Social Responsibility

A Decade of Giving                                                                    Habitat for Humanity
Since the year 2000, BMI FCU has given over $190,000 to more than 100 charities and   Under the leadership of board member L. Ben Freudenreich and many hours of
community organizations. Throughout this decade the Board, Management, and Staff of   labor by staff volunteers from BMI FCU and other central Ohio credit unions,
BMI Federal Credit Union also contributed countless hours of their personal time to   the Columbus Chapter of Credit Unions’ Habitat House was completed in
numerous charities, civic associations, and causes that benefit our community.        October 2006.

Our commitment to excellence in our community is a natural extension of the
outstanding service you enjoy as a member/owner.


2006 Charities and Civic Associations Supported
American Cancer Society, Race for the Cure
American Heart Association
Charity Newsies
Childrens Miracle Network
Children’s Tumor Fund
Food for Homeless, St. Thomas Moore Newman Center
Habitat for Humanity
                                                                                      Scholarship Winners
Jack Diebert Memorial Scholarships
Kids N Camp                                                                           As part of our commitment to excellence in education, we have distributed
Kiwanis                                                                               almost $100,000 in scholarship money since we started our program more than
Life Care Alliance                                                                    10 years ago. This money goes to outstanding young members who represent
Linda Aplas Johnson Memorial Lung Cancer Hope Fund                                    the next generation of our future business and community leaders. This year’s
Mary Jo Meinrad Memorial Nursing Scholarship                                          winners include:
Mid Ohio Food Bank                                                                    Dick Pierce Memorial Business Scholarship winners: Ashely De Marco; Kylie Johanns
Multiple Sclerosis Association                                                        Jack Deibert Memorial Scholarship winners: Joseph Duchi; Danika Stoltz
Neighborhood Services Food Pantry                                                     Mary Jo Meinrad Memorial Scholarship winners: Christina Bensley; Crystal Vondal
Ohio Wildlife Center
St. Frances Center
Westerville Rotary
Excellence in Financial Performance

Balance Sheet                                      12/31/06                    12/31/05           Income Statement                         12/31/06       12/31/05

ASSETS                                                                                            INTEREST INCOME
Cash & Due From Others                          $5,938,132                  $2,822,311            Loans, Including Fees                  $13,149,080    $11,031,814
Interest Bearing Deposits                       27,667,728                  14,405,047            Time Deposits, Securities &
   Cash & Cash Equivalents                      33,605,860                  17,227,358               Negotiable Certificates
Time Deposits                                    9,249,000                  11,788,000               of Deposit                              970,944      1,038,033
Securities Available for Sale                    9,812,948                  19,738,958            Interest Bearing Deposits &
Securities Held to Maturity                              -                           -               Federal Funds Sold                      551,603        304,964
Loans to Members                               209,114,695                 191,830,788               TOTAL INTEREST INCOME               $14,671,627    $12,374,811
Allowance for Loan Losses                         -724,016                    -748,239
   Net Loans                                   208,390,679                 191,082,549            INTEREST EXPENSE
Net Premises & Equipment                         5,084,961                   2,441,048            Members' Share Accounts                 $6,180,858     $4,175,543
Accrued Interest Receivable                      1,135,413                     910,629
Capital Participation Certificates                 900,000                     900,000            NET INTEREST INCOME                     $8,490,769     $8,199,268
NCUSIF Deposit                                   1,898,849                   1,827,136            Provision For Loan Losses                 -553,257      -1,197,268
Other Assets                                       483,038                     714,108
   TOTAL ASSETS                               $270,560,748                $246,629,786            NET INTEREST INCOME
                                                                                                  AFTER PROVISION                         $7,937,512     $7,002,000

LIABILITIES                                                                                       OTHER INCOME
Members' Shares                                226,120,161                  207,545,184           Fees & Commissions                      $2,024,759     $1,944,273
Other Liabilities                              $18,187,971                  $15,236,817           Gain (Loss) On Investments                   83,109        22,628
  TOTAL LIABILITIES                           $244,308,132                 $222,782,001           Gain (Loss) On Disposition of Assets        -21,428            40
                                                                                                  Other Income                             1,523,753      1,365,075
                                                                                                     TOTAL OTHER INCOME                   $3,610,193     $3,332,216
Statutory Reserve                                $6,463,145                   $6,463,145          OTHER EXPENSE
Retained Earnings                                19,943,613                   17,736,741          Salaries & Employee Benefits            $4,471,845     $4,070,172
Other Comprehensive Income                         -154,142                     -352,101          Occupancy & Equipment                    1,001,290        835,874
   Total Members' Equity                         26,252,616                   23,847,785          Advertising & Marketing                    209,982        227,701
   TOTAL LIABILITIES &                                                                            Data Processing                            248,112        196,147
   MEMBERS' EQUITY                            $270,560,748                $246,629,786            Other Expenses                           3,409,604      3,274,694
                                                                                                     TOTAL OTHER EXPENSE                  $9,340,833     $8,604,589
                                                                                                  NET INCOME                              $2,206,872     $1,729,627

These financial statements are as presented by Management for 2005 and 2006 fiscal years, not
audited financial statements. Complete audited financial statements are available upon request.
Excellence in Growth

                       $ in millions
               280 –                                                          270.5
               260 –
                                                              237.0   246.6
               240 –
               220 –
Asset Growth                                          199.4
               200 –                          181.6
               180 –
               160 –
               140 – 134.2
               120 –
                       2000            2001   2002    2003    2004     2005    2006

                       $ in millions
               220 –                                                          209.1
               200 –                                                  191.8
               180 –
               160 –
Loan Growth                                           135.1
               140 –
               120 –                          111.9
               100 – 91.4
                80 –
                60 –
                       2000            2001   2002    2003    2004     2005    2006
                                     Excellence in Management

                 Board Members                          Management
                 Denny Hockman, Chair                   Sharon Custer, President/CEO
                 George Dailey, Vice Chair              Bill Allender, Vice President Finance
                 Ian Mercier, Treasurer                 Connie Capuano, Vice President Business Development / Communications
                 Steve Phillips, Secretary              Mike Clark, Vice President Lending
                 Anne Broad                             John Freundner, Vice President Technology
                 Jack Conner                            Jennifer Erb, Human Resources Manager
                 L. Ben Freudenreich                    Cindy LeBrun, Director of Member Service
                 Steve Krzykoski                        Ray Porter, Controller
                 Gwen Von Holten                        Michael Spiellman, Communications Manager
                 Phil McRury, Director Emeritus
                 Kay Cooke, Associate Director

                 Supervisory Committee
                 John Black, Chair
                 David Arnold
                 Brad Ashbrook
                 Jodi Beekman
                 Joseph Wray

                                            Excellence in Access
                 Branch Locations                       South Columbus Branch
                 Kinnear Road Branch                    3865 S. High Street
                 Corporate office
                 760 Kinnear Road                       Employer Based Branches
                                                        Battelle, Main Campus
                 Bethel Road Branch                     Schottensteins/Retail Ventures, Corporate Office
                 750 Bethel Road                        Worthington Industries, Corporate Office and Main
                                                        Production Facility
                 Dublin Branch
                 6680 Perimeter Loop Road               Electronic Branch
                 Westerville Branch                     Free Online Bill Pay
                 12 S. Cleveland Avenue                 24/7 Online Home Banking
                                                        24/7 Online Loan Applications
(800) 233-6880

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