On behalf of the board, other volunteers, and the staff of the Bethex Federal Credit Union it gives me great pleasure to share with the membership my thoughts on our accomplishments during the last year. In the midst of an economic recession and the September 11, 2001 World Trade Center terrorist attack, our credit union remains a strong and vibrant institution. In the midst of formidable challenges, we continue to move ahead.

The strength of any organization lies in its leadership and membership. At Bethex, we are fortunate to have a board that is representative of the community we serve and features professionals with expertise in marketing, management consulting, financial operations, and grant writing. Along with a very capable and extremely dedicated staff, we remain committed to providing financial services to individuals, families, businesses, and communities that other institutions deem high risk, marginal, or unprofitable. For us, you represent our core, the reason we exist.

In the midst of a very difficult economic climate worsened by job losses associated with the 2001 World Trade Center attack, Bethex remains strong. Members now total 10,000 and our assets approach $10 million. Thanks to an array of new programs and services, we remain a credit union that is in the vanguard of financial institutions that serve low-income communities.

Bethex issued credit cards for the first time this year, offering a moderate interest rate and a highly competitive credit line and other provisions for members and other neighborhood residents. In less than nine months, 300 individuals have been issued credit cards bearing the Bethex logo.

A major indication of an economic downturn is a slow of business and homeownership loans. At Bethex, the board and staff anticipated the recession as a result of strategic planning and took steps to develop and aggressively market loan products that are of particular benefit to our membership and low-income communities in general.

Under the leadership of Ms. Joy Cousminer, our chief executive officer, Bethex introduced participation loans in 2002. Despite a tough business climate and a somewhat sluggish housing market, we increased the dollar value of our business and mortgage loans. We introduced the Cash in a Flash loan as an alternative to pay day loans for individuals or families facing unanticipated expenses or emergencies. We continued to provide a variety of consumer loans and introduced a financial counseling service for those with credit, debt, and money management problems, Balance.

Bethex recognizes that the low-income community is indeed a special population when it comes to financial services. Toward this end, we continued our long-standing tradition of offering educational services, including bank accounts for elementary and middle school aged children, workshops on financial issues for community residents, and referral assistance for individuals or institutions in need. Indeed, Joy Cousminer has emerged as a technical advisor and consultant to credit unions large and small throughout the United States. Joy has indeed added new meaning to the phrase human capital.

The credit union, however, is successful because it listens to your needs and develops solutions in response to them. This has prompted us to strengthen our internal capacity by undertaking staff development activities with the National Federation of Community Development Credit Unions and HSBC, membership in the New York Area Financial Network Action Consortium, and mentor credit unions like Kraft. Staff resources were further augmented by partnerships with Boston University and New York University that enabled Bethex to secure interns who developed a business loan directory, an employee manual, and a model for accounting procedures that could be used at our branches.

As your board chair, I am committed to keeping Bethex a strong institution. Our board will draw heavily upon its own rich resource base, as well as from a very capable and hardworking Supervisory Committee, NCUA examiner, and independent auditor.

We thank you for helping Bethex remain an institution that is in the vanguard of serving low-income communities. Our credit union will face many challenges as we look ahead to 2003 and beyond, but with your confidence and support will continue to turn obstacles into opportunities.

Thank you for giving us the honor of serving you.

Ken Small

Kenneth L. Small
Board Chair, the Bethex Federal Credit Union