2 0 0 3 A N N U A L R E P O R T

CommunityCommitment

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In addition to the privilege of being a community credit union, there is the responsibility to serve a 16-county area of East Tennessee. That responsibility includes providing convenient access to our services throughout the area. It also includes continuing our tradition of offering service and value. These are things that we continue to focus on and work toward.

Another responsibility that has become increasingly important because of our new community status is our responsibility to be a good corporate citizen. We plan to work harder to move our community forward — to make it a better place to live, work, and play. We want to bean example of a good corporate neighbor, working to make our neighborhood all it can be.

What does this change mean to long-time members? It gives us greater flexibility to grow our resources, enabling us to continue to expand and improve services. Does the change affect ourcore beliefs and practices? Absolutely not. We are still a not-for-profit financial cooperative

2003 Annual Report

“A new beginning” is an appropriate way to describe2003 at ORNL Federal Credit Union. Our transition to acommunity credit union became official as the new year gotunderway. The change was immediate as we reached out toour community, Central East Tennessee, offering all of itsresidents a new choice in financial services.

Now, instead of turning away some of our neighbors

in which all who belong benefit from our shared goal of improving the financial well-being of all members. We are still governed by you and your fellow members through our elected leaders, our volunteer Board of Directors.

What could be more appealing to consumers everywhere than having the choice of joining ORNL Federal Credit Union, a financial institution that is deeply rooted in the community, an organization that is governed and run by friends and neighbors, a business where decisions on your own personal financial matters are made locally, not on the other side of the state or even country?

We celebrate our “new beginning,” excited about the many possibilities that lie before us. And we celebrate with a rededication of our efforts to uphold the basic principles and practices that have made us who we are…a credit union…your credit union.

because they could not qualify to be within our field ofmembership, we can welcome them into our cooperativeand extend the benefits that all members have enjoyed sinceour founding.

Everyone who calls East Tennessee home can chooseORNL Federal Credit Union and discover the difference thatmembership can make.

AA NNeeww BBeeggiinnnniinngg.... . CCoommmmuunniittyy CCoommmmiittmmeenntt.... .

hroughout our history of growth and change, we haveexperienced some remarkable

years, but few can compare to 2003.The reason behind this claim is thefact that ORNL Federal Credit Unionreinvented itself as a communitychartered credit union and began exercising its newlygranted authority to serve residents of a 16-county regionof East Tennessee.

After years of serving employees (and their families) of thousands of companies, businesses and organizationsin East Tennessee, membership became an option foralmost 1.1 million residents of the area, defined as the East Tennessee Development District. Anyone who lives, works, worships, or attends school in our newlydefined community can join our credit union and enjoythe benefits of membership. The impact of this change wasimmediate and substantial. We didn’t just set new growthrecords; we shattered the old records.

While posting respectable growth in assets (up $44 million, or 6.62%) and deposits (up $33.8 million, or 6.07%), the really impressive impact of the communitycharter was in the areas of membership (up 11,669, or 14.3%) and lending (up $72.1 million, or 16.02%).

In terms of gross membership enrollment, over 17,000 residents of East Tennessee joined our credit unionduring 2003. That’s an average of over 1,400 new members each month.

Our total loans outstanding actually grew over 20%when we discount the transfer of our credit card portfolioto Individualized BankCard Services.

Throughout the year, members took advantage of interest rates that set new lows for both consumer loansand mortgages. We marketed loans aggressively throughthe establishment of an “on-the-spot financing” operationthat focused on promoting and supporting loan under-writing at automobile dealerships. Through this program,members now enjoy the availability of convenient carfinancing at participating dealers with all the advantages ofcredit union loan rates and terms.

One of our responsibilities as a community credit unionis to reach out to the community to serve all the newly eligible residents. We took huge steps in that direction by opening three new branch locations during 2003 and a fourth location early in 2004. The new locations are Morristown, Oak Ridge National Laboratory, Halls and East Knoxville.

Morristown and the surrounding Hamblen County represent a highly populated area in our community.

An opportunity to purchase an existing facility at mid-year led to our move into the Morristownarea in September. The branch, located on Andrew JohnsonHighway, immediately gave us highvisibility and full-service capability.

Opened in late September, our new state-of-the-artbranch on site at the Oak Ridge National Laboratory is aproving ground for new technologies that may bedeployed in existing and new branches in years to come.From our dialogue tower, personal service stations to ourcomplex, yet-to-be-proven kiosk, the office is full of features that are providing us with experience in futureservice. This exciting new branch represents a “return toour roots.” It is our first presence on-site at the Lab in over40 years. It was made possible because of the renaissanceunderway at the Laboratory. We are grateful to have thisopportunity and we look forward to our continued association with the Lab and its employees.

In early December we opened the doors on our Halls Branch. Located in the heart of Halls, from wherethousands of members had been driving miles to get service at our branches in North Knoxville, Fountain Cityand Karns, the Halls office vastly improves convenientaccess for a large and active segment of our membership.The large facility is designed to enhance convenienceinside its lobby with the use of dialogue towers and outside with its six drive-through lanes.

In another effort to improve convenience to an under-served area of Knoxville, our East Knoxville branchopened February 2nd of this year. At the invitation of theA.M.E. Zion Church Tennessee Conference of Churches,we established a branch facility in their new center at2321 East Magnolia Avenue. This non-traditional branchoffers a wide range of services including all deposit, loanand transactional services, as well as mortgage lendingand ATM service.

Although growth is important to your credit union as it allows us to continue improving our efficiency and levels of service, one of the most important initiatives ever undertaken by ORNL Federal Credit Unionis our all-out effort to provide our employees with the toolsthey need to offer a higher level of personal service.Structured programs are provided to employees toenhance their ability to meet and exceed members’expectations. Information from sources, such as, our annual membership survey, was put to use in helping us understand what members want, need and expect from their credit union. In addition, training is now a

continuing process that targets the individual needs ofdepartments and branches.

Several operational changes were made during theyear to improve efficiency, reduce expenses and enhanceexisting services. At the start of 2003, we began a plannedphase-out of our Money Belt card. A staple of our serviceofferings since the early 1980s, the Money Belt card wasour first ATM card. It served members well for many yearsuntil the evolution of the more versatile debit card (checkcard). Introduced several years ago, our Cheque Mate™

VISA Check Card duplicated and expanded the functionality of the Money Belt card. Obviously, theduplication of functions represented unnecessaryexpense. For this reason, members using the Money Beltcard were shifted over to a Cheque Matecard. The result was annual savings of hundreds of thousands of dollars for ourcredit union.

The Cheque Mate card is used byincreasing numbers of members for Internetpurchases. To help protect members againstfraud, we enrolled our debit card system inthe Verified by VISA program. This program adds anotherlayer of verification of identity when members make purchases through participating online merchants.

Another service enhancement was made for ourIndividual Retirement Accounts when we purchased supplemental deposit insurance protection. Although IRAdeposits are federally insured up to $100,000, separatefrom the federal deposit insurance on other credit unionaccounts, we purchased an additional $250,000 in coverage per member through American Share Insurance,a private corporation.

After months of development and testing, we introduced a new online mortgage application andapproval system in the fall of 2003. Accessed through ourweb site at www.ornlfcu.com, our new MortgagesOnline system offers an array of tools to assist members inthe home purchasing process. And, of course, members can apply online, track the progress of their mortgageapplication and, in many cases, get preliminary approvalfor a mortgage within minutes.

We also stepped up efforts to communicate with members online. In late summer, we published and distributed our first-ever e-newsletter. While it is an electronic version of our bi-monthly printed newsletter,Update, it enables members to communicate with us viae-mail. It also offers a variety of links to web sites that provide detailed information related to specific stories.Member response has been growing with each issue.

Still in its infancy, our Member Business ServicesDepartment added two important new services to assistbusiness owners. First, through a partnership with a third-party vendor, we began offering card-processing services to member businesses. This service enables some merchants to reduce their costs of accepting and processing debit and credit card purchases.

The second major service added to our MemberBusiness Services area was Small Business AdministrationLoans (SBA). We are pleased to report that ORNL FederalCredit Union was the first credit union in the state ofTennessee to be granted authority to offer SBA loans. Weexpect many of our member businesses to take advantageof this popular lending program.

Late in the year, members who use anORNL FCU-issued credit card were notifiedthat we are transferring ownership, servicingand administration of our credit card program to Individualized BankCardServices, a leader in providing superiorcredit card service and value. This businessdecision was made on the basis of our

ability to provide competitive card features, in an area ofour business that is intensely competitive, and benefitsfrom the economies of a large card base generating highvolumes of transactions. In the end, we were able to benefit as a credit union from the sale of our credit cardportfolio. Individual members are able to benefit by getting a better card with more features at the same oreven less cost than our previous program.

One method used by credit unions throughout the country to provide non-traditional services and supplementary services to members is the creation of aCredit Union Service Corporation (CUSO). During thesummer, ORNL Federal Credit Union formed the AffinityTitle Company, a CUSO-owned entity that provides titleservices to our mortgage lending department. This allowsus to provide a basic service to our mortgage-lendingdepartment, thereby enabling them to close real estateloans quicker.

Operating as a community chartered credit unionrequires us to think and act differently, particularly as itpertains to corporate responsibilities. As we have in yearspast, we supported organizations that target improvementsin the social well-being of our community, as well asorganizations that provide recreational and educationalactivities.

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(Continued)

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“ ...2003 was a remarkable year,

a record-setting year. “

The highlight of our community involvement effortsoccurred during late summer when we were given the opportunity to become the first-ever Presenting Sponsor ofthe 2004 Dogwood Arts Festival. This annual celebrationof spring is, without a doubt, the premier community-wideevent for Central East Tennessee. Our sponsorship permitsus to visibly demonstrate our intent to help make our community a better place for members and potentialmembers to live, work, and play.

As previously stated, 2003 was a remarkable year, arecord-setting year. To recognize that fact and to share oursuccess with those who made it possible, your Board ofDirectors voted another year-end bonus dividend. Thisspecial dividend amounted to .30% of each member’saverage total daily share deposits for the year. The totalpay-out was approximately $1.6 million. This marks thesecond year in a row that your board approved and paida year-end bonus dividend.

Looking ahead to the remainder of 2004, we plan tofocus on our efforts to improve services and processes. Inaddition, we see a year in which we are likely to be presented with opportunities to better serve members. For instance, we don’t have specific plans to build or open any new branches during 2004; however, we may receive inquiries that lead to opportunities to expandour branch network for the good of the members we serve.

For the sake of service to members, we plan to expandcapabilities to efficiently serve growing numbers of members. Beginning the year with a membership rostertotaling over 93,000, we expect to eclipse the 100,000-member mark sometime around mid-year. Obviously, wedon’t want this rapid growth rate to cause a deteriorationof service levels. That’s why we are dedicating resourcesto maintain and improve service to members. Service standards are being established, reviewed and revised toensure that we are moving closer to our credit union’svision of “exceeding members’ expectations,one member at a time.”

Processes are also under constant review.We’re looking to eliminate unnecessaryprocesses where they exist and to improveexisting processes that can free employees tospend more time serving members. Oneprocess improvement already completed forthis year relates to computer processes. InFebruary of this year, we installed a newcomputer system that raises our data processing speed significantly. The result has been greatly reduced time required for overnight processing and reports. Moreimportantly, processing speeds for front

office functions have improved. This, of course, is criticalto our efforts to serve members faster.

We will continue to expand our own ATM network,which will add more machines and the accompanying convenience it affords members. Related to this effort is our planned change of ATM processors later in the year.The resulting change, we believe, will improve the abilityof employees to manage our ATMs and to provide betterand faster service to members who require help with ATM transactions.

In early March 2004, we completed the ownershiptransfer of our credit card portfolio to IndividualizedBankCard Services (IBS). We hope that those of you whocarry our newly branded credit card find it to be a betterand more versatile financial tool. Credit card competitionis intense, and it’s becoming more and more difficult toprovide a competitive service. This partnership with IBS,we believe, will allow us to offer members a richly-featured credit card to meet their changing needs.

We expect 2004 to be another year of very low interestrates. Low interest rates are a strain on members who relyon interest income as a major source of revenue whilethey are a boon to those who want or need to borrow. Yourcredit union is also critically affected when interest rates are as low as we have experienced the past coupleof years. In this economic environment, total revenues for us are reduced greatly, increasing pressure to tightlycontrol expenses. This, of course, makes it more challenging to expand and improve service to members.The good news is that we have met these challenges in thepast and have prevailed.

On behalf of the Board of Directors and the staff of your credit union, ORNL Federal Credit Union, I want to thank you for placing your trust in us during 2003. I alsowant to assure you that, during 2004 and beyond, we arededicated to providing you and your family with a wide

selection of financial services that offer valueand convenience.

While we have just completed a year ofremarkable growth and progress, let me assureyou that we never lose sight of the reason for our past and current success. You, ourmember-owners, have been and continue tobe the focal point of all our plans, discussionsand decisions.

2 0 0 3 C h a i r m a n ’ s R e p o r t

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Balance Sheet

Assets 2003 2002

Cash and cash equivalents $32,894,023 $33,835,175Investments $133,056,482 $163,309,723Loans to members, net of the $513,819,993 $443,949,342

allowance for loan losses Loans held for sale $5,719,561 $3,644,844 Accrued interest receivable $2,590,102 $2,741,383Property and equipment $18,912,472 $15,971,884National Credit Union Share $5,507,317 $5,059,085

Insurance Fund depositOther Assets $3,936,473 $2,968,360

TOTAL ASSETS $716,436,423 $671,479,796

Liabilities & Equity

Liabilities

Members’ shares $590,233,161 $556,458,526Accrued expenses and $9,293,641 $8,557,542

other liabilitiesFederal Home Loan Bank

advances $34,831,908 $31,609,708

Total liabilities $634,358,710 $596,625,776

Equity

Retained earnings $82,077,713 $74,854,020

TOTAL LIABILITIES & EQUITY $716,436,423 $671,479,796

Statement of Income and Expense

Income 2003 2002

Interest Income

Interest on loans to members $32,028,454 $31,337,980Interest on investments $4,212,138 $6,571,836

and cash equivalents

Total interest income $36,240,592 $37,909,816

Interest Expense

Dividends on members’ shares $10,706,775 $13,760,451Interest paid on borrowed funds $1,409,874 $1,021,974

Total Interest Expense $12,116,649 $14,782,425

Net Interest Income $24,123,943 $23,127,391

Provision for Loan Losses $2,829,524 $2,236,715

Net Interest Income After $21,294,419 $20,890,676Provision for Loan Losses

Non-Interest Income $13,230,254 $5,898,758

TOTAL INCOME $34,524,673 $26,789,434

Expenses

Salaries and benefits $13,210,958 $11,095,308Operations $8,586,666 $7,194,861Occupancy $1,511,936 $1,476,268Other $2,038,984 $1,713,488

TOTAL EXPENSES $25,348,544 $21,479,925

NET INCOME $9,176,129 $5,309,509

2 0 0 3T r e a s u r e r ’ s R e p o r t

NOTES TO FINANCIAL STATEMENTS

1. Cash and Cash Equivalents - Cash and cash equivalents consist of cash on hand, demand deposits, money markets funds and non-term share deposits in Volunteer Corporate Credit Union.

2. Investments - Investments consist primarily of government agenciessecurities,mortgage backed securities and term deposits at other insuredfinancial institutions.

3. Loans to Members

12/31/03 12/31/02First Mortgage Real Estate $209,176,263 $179,892,258Other Real Estate $45,827,058 $48,937,944Member Business $23,293,072 $19,116,861Automobile $194,329,567 $133,862,299Credit Card $418,667 $23,147,304Other Unsecured $23,705,440 $25,095,090Other Loans $25,226,686 $19,834,812

$521,976,753 $449,886,568Allowance for Loan Losses $(2,336,257) $(2,093,378)

$519,640,496 $447,793,190

The Credit Card portfolio was sold to MBNA on September 30, 2003. The final settlement will be on March 9 ,2004. There was a premium earned by the credit union on the sale amounting to $4,394,187. The premium is included in Non-Interest Income on the Statement of Income

4. Loan Servicing - Mortgage loans sold to FNMA are not included in the accompanying statements of financial condition. The unpaid principal balances at December 31, 2003 and 2002 were $98,711,801 and$63,434,527, respectively.

5. Property and Equipment - The increase in Property and Equipment includes new branch locations at Morristown, Halls and ORNL.

6. National Credit Union Share - The deposit in the NCUSIF is in accordancewith the National Credit Union Administration regulations, which requiresInsurance Fund (NCUSIF) Deposit a deposit by each federally insured creditunion in an amount equal to 1% of its insured members shares.

7. Federal Home Loan Bank Advances - FHLB advances are payable in monthly installments of principal and interest. The average cost in 2003 was 3.98%. Interest paid is included in interest expense on the Statement ofIncome. Advances are used to fund members fixed rate first mortgage loans.

8. Members’ Shares

12/31/03 12/31/02Regular Share Accounts $139,424,445 $115,636,038Share Draft Accounts $83,316,585 $75,423,600Money Market Accounts $154,231,247 $149,271,452IRA’s $54,025,189 $53,183,516Certificates $159,235,695 $162,943,920

$590,233,161 $556,458,526

9. Consolidated Statements - The credit union wholly owns Affinity Financial Group, LLC, a credit union service organization. The credit union’sfinancial statements are consolidated with Affinity’s as required by generallyaccepted accounting principles.

YEAR ENDING DECEMBER 31, 2003

(Continued)

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ASSETS SHARES LOANS MEMBERS

Continuing

Our Tradition

Of Service

And Value.

1999 2000 2001 2002 2003 1999 2000 2001 2002 2003 1999 2000 2001 2002 2003 1999 2000 2001 2002 2003

2 0 0 3 T r e a s u r e r ’ s R e p o r t

Reaching OutTo Our NewExtendedCommunity.

Offering A Better Choice In FinancialSer vices.

Keeping In Touch,With ConvenientAccess Anytime -Anywhere.

Discovering The DifferenceThat Membership Can Make.

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(in thousands)(in millions)(in millions)(in millions)

716.4

590.2

519.5

93

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he ORNL FCU Nominating Committeereviewed the qualifications of members

who submitted their names for consideration as candidates for the Board of Directors. Wehereby nominate the following seven individuals (listed in alphabetical order) to compete for the three positions to be filled bythe election at our credit union’s 56th AnnualMeeting on March 25, 2004.

Marcella Chinn Catron, James E. DrewryMike Golden, J. Robert Hightower, Jr.

William Jackson, Ben B. SmithJewel A. Stallions

Respectfully submitted,ORNL FCU Nominating CommitteeJoseph A. Setaro, Chairman Charlie Kuykendall; Mary Lockhart; Rose Wood.

1. Call to ordera. Welcomeb. Quorum

determination

2. Minutes of 55th Annual Meeting

3. Electiona. Report of Nominating

Committeeb. Election of officials

4. Reportsa. Chairmanb. Treasurerc. Supervisory Committee

5. Old Business

6. New Business

7. Drawing for Door Prizes

8. Adjournment

56th Annual Meeting Agenda2003 Nominating Committee report

he Supervisory Committee, appointedby the ORNL Federal Credit UnionBoard of Directors, is responsible for

ensuring that the credit union’s financialrecords are in order and that internal controlsare in place to protect the assets of the creditunion for its members. The committee doesthis by conducting financial audits and byregular testing of internal controls.

In order to assist us in carrying out theseresponsibilities this past year, the committeeengaged the firm of McGladrey and Pullen,CPAs, to perform an independent audit and provide an opinion on the financial

condition of your credit union for the periodending 12/31/2003. The goals of this auditare to determine the reliability and integrityof the financial and operating informationand to determine compliance with generallyaccepted accounting principles (GAAP).Independent audit findings are helpful in ouroversight of credit union activities.

An Internal Audit Program, under thedirection of the Supervisory Committee,provides an ongoing review of compliancewith policies and procedures. This programincludes an annual inspection of internalcontrols, cash, member loans and other

assets of your credit union. Theaudit program for the year, wascompleted as planned with nounresolved issues.

The committee followed and offeredguidance to our internal auditing functionduring the year. The committee approvedthe annual internal audit plan; encouragedbranch managers to assume more responsibility for quality control of servicesdelivered to members; concluded aVolunteer Achievement Program whereineach Supervisory Committee memberdigested a chapter of the CUNA Supervisory

Committee Ready Referenceand “trained” the committeeat subsequent meetings as apart of the business agenda;

solicited various credit union officers tomeet with the committee to provide detailedoperational information; formalized the2003 external financial audit under anagreement from last year’s auditor; andapproved a list of tellers to assist with the2004 board election. The committee ispleased to report your credit union continues a tradition of excellent financialmanagement and compliance.

2 0 0 3S u p e rv i s o ry C o m m i t t e e R e p o r t

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T

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11.. CCaallll ttoo OOrrddeerra. Welcome. The 55th Annual Meeting of the ORNL FCU

was called to order at 7:30PM by Mason Oakes, Chairman of the Board of Directors. Members of Boy ScoutTroop No. 328 displayed colors and led the pledge of allegiance under the leadership of Senior Patrol LeaderAdam Cade, assisted by scouts Brian Doll, John Mills,Drew Mullins, Brett Ray and Dylan Ripley. Second-gradestudents from Woodland Elementary School, our partner-in-education, sang the national anthem and a few othersongs. The group was under the direction of music teacher,Susie Carden.

Oakes introduced President/CEO John D. McKittrick,current board members and members of the SupervisoryCommittee. He thanked members of other committees andvolunteers as listed in the printed report.

b. Quorum Determination. There were 549 memberspresent, more than enough to constitute a quorum.

22.. MMiinnuutteess ooff tthhee 5544tthh AAnnnnuuaall MMeeeettiinnggA motion passed to approve the minutes as written.

33.. EElleeccttiioonnssa. Report of the Nominating Committee. Members of the

committee were Mary Beth Blair, Charlie Kuykendall andRoy F. Pruett, Chairman. In Pruett’s absence, Kuykendallintroduced the three candidates, Jama Hill, Bettie D. Kurtzand Joseph A. Setaro. He referred to the committee’s reportas shown in the 2002 Annual Report.

b. Election of Officers. Chairman Oakes called for a motion to elect three candidates to three available board positons. Motion was made and seconded, andJama Hill, Bettie D. Kurtz and Joseph A. Setaro wereelected by voice vote.

44.. RReeppoorrttssA 12-minute audio-visual presentation on the ORNL FCU’sactivities during 2002 was shown. Chairman Oakesthanked Marketing Department members Larry Jones,Nancy Ballard, Christian Hammond and Tom Wright forproducing the audio-visual report.

a. Chairman. Mason Oakes referred to the printed report and to the audio-visual presentation. He called for questions, but there were none.

b. Treasurer. Vice-Chairman Joseph A. Setaro gave the report in Treasurer Marcella Sissom’s absence. He calledattention to the printed report and to the four graphsshown in the report and in the audio-visual presentation. He stated that ourregulator, NCUA, conducts audits ofour credit union, and that we cameaway with the highest rating that theygive. He called for questions.

A member asked why the expenseitem on Travel, Conference &Training had nearly doubled sincelast year, and why Miscellaneousexpenses had increased so much.President John McKittrick answered,regarding the first item, that we have doubled our effort to train ourstaff this year. We have been really serious about getting up to speed on our training. McKittrick stated that expenseitems that don’t fit anywhere else are put in Miscellaneous.He said that we had a lot of activity this year, whichinvolved expense. We financed and re-financed a lot ofloans, had ATM fees and debit card fees. The membernoted that everything went up except his dividends.McKittrick said that it is because of the drop in interestrates. Member Charlie Kuykendall commented that he would be concerned if ORNL-FCU were the only

M I N U T E SOF THE 55th ANNUAL MEETING

February 13, 2003

institution where dividends went down, which is by nomeans the case.

c. Supervisory Committee. Chairman Don Miller referred to the printed report. He stated that the committee is appointed by the Board of Directors and is responsiblefor oversight of the credit union’s financial recordsmanagement and internal quality controls to protect theassets of the members. The committee meets regularly toguide and analyze the internal audit function. Most significant is the external audit report provided byMcGladrey and Pullen for the 2002 operating year. Theyare CPAs headquartered in Brisbane, California, and in Boston, Massachusetts. We hired them to provide an independent opinion of our financial health. The

oral report has been presented to us and the written report is in process. Nomaterial weakness or error was found bythe auditor.

The committee has observed that theinternal audit function continues tomature and expand its effectiveness. TheSupervisory Committee itself has addednew members who bring auditing experience from their professional duties.Also, we have initiated an aggressive self-training program using the CreditUnion National Association’s ReadyReference book as a basis. Miller called

for questions, but there were none.

55.. OOlldd BBuussiinneessssNone.

66 .. NNeeww BBuussiinneessss Chairman Oakes noted that Jenny Keller is leaving theboard after serving nine years, during which we saw

almost every function double. He thanked Jenny andpresented her with a gift of a clock.

77.. DDrraawwiinngg ooff DDoooorr PPrriizzeessTwenty-nine prizes totaling $1,500 were awarded by drawing names of attending members. Names weredrawn from the barrel by 10-year-old Aislin Anderson,Frank Kolski conducted the drawing and was assisted byBettie D. Kurtz and Joseph A. Setaro.

The winners were:

$100 John W. Jill $50 William Wren$100 Michael Dustin Reed $50 Ashley King$100 Betty C. Osborn $25 Billie Jean Crowe$100 Margaret E. Donaldson $25 Janet Martin$100 Hanh Quach $25 Martha Ann Metcalf$100 Ruth Ann Mabry $25 Kathy A. Christopher$100 Brenda S. Quinn $25 H. Lloyd Wattenbarger$50 Roger B. Quincy, Jr. $25 Velma G. Hendrix$50 Jared C. Grant $25 James H. Freels$50 Suman P. Singh $25 Martha Story$50 George A. Dailey $25 Marvin A. Neese$50 Zachary Howard $25 Jo Anne Roberts$50 Stanly Sosnowski $25 Mary Elizabeth Glenn$50 Christopher Gallaher $25 Bradley R. Clagg$50 Ronald Grizzle

All names were then returned to the barrel before the drawing for the grand prize, which was a $1,500travel gift certificate from American Express World Travelof Knoxville. Edward VonHalle was the winner of thegrand prize.

88.. AAddjjoouurrnnmmeennttThe meeting was adjourned at 8:15PM, after which areception, catered by Judy Dodd, was held for members inthe High School Cafeteria.

12 13

BOARD OF DIRECTORSMason Oakes, ChairmanJoseph A. Setaro, Vice-ChairmanMarcella Catron, TreasurerWanda McCrosky, SecretaryHerb DebbanJames E. DrewryJama HillBettie D. KurtzBen B. Smith

Mary Helen Rose, Recording Secretary

SUPERVISORY COMMITTEEDon R. Miller, ChairmanRandy W. GormanJoel LayCindy SpenceDavid A. Watkins

NOMINATING COMMITTEEJoseph A. Setaro, ChairmanCharlie KuykendallMary LockhartRose Wood

INTERNAL POLICY COMMITTEEJoseph A. Setaro, ChairmanHerb DebbanJama HillBettie D. KurtzBen B. Smith

POLICY COMMITTEEWanda McCrosky, ChairmanEvelyn AngelJames E. DrewryJama HillJohn MoyersBen B. Smith

MEMBER APPEALS COMMITTEEBettie D. Kurtz, ChairmanMary Beth BlairMario FontanaWanda McCroskyDiane Ridge

BUILDING AND PLANNINGCOMMITTEEHerb Debban, ChairmanJames E. DrewryJama HillFrank J. KolskiMario FontanaWanda McCrosky

PENSION PLANNING COMMITTEEMason Oakes, Chairman and

TrusteeSally Jaunsen Freels, TrusteeBettie D. KurtzBen B. SmithMary YoderJohn D. McKittrick, Trustee

LEGISLATIVE AND GOVERNMENTALAFFAIRS COMMITTEEJames E. Drewry, ChairmanJoseph A. SetaroBen B. Smith

John D. McKittrick, PresidentDennis Bowker, Senior Vice-President, FinanceRobert A. Glenn, Senior Vice-PresidentR. Taylor Scott, Senior Vice-PresidentMaxine W. Allen, Vice-President, Mortgage LendingDavid R. Farmer, Vice-President, Branch OperationsLarry A. Jones, Vice-President,

Marketing and e-Branch OperationsClay Kearley, Vice-President, Consumer LendingBrenda Owensby, Vice-President,

Human ResourcesC. Ed Samsel, Vice-President,

Member Business ServicesCarol Dockham, Assistant Vice-President, TrainingAndrea Griffitts, Assistant Vice-President,

Internal AuditorLinda Morris, Assistant Vice-President, ControllerScott Turner, Assistant Vice-President, Information Services ManagerLinda Trotterchaud, Assistant Vice-President,

Loan Servicing and CollectionsBlake Whitaker, Assistant Vice-President,

Member Business Services ManagerJean Eiler, Administrative Assistant, Security, BondsCynthia Barreira, Servicing ManagerDawn Brummett, Sales ManagerDan Carmichael, Jr., Facilities ManagerVicki Cox, Consumer Loan Quality Assurance ManagerBrent Edwards, Chief Technology Officer

Stacey Foster, Operations ManagerCatherine Haughton, Mortgage Department ManagerSusan Johnson, Accounting ManagerVicki Kitts, Collections ManagerMelissa McMahan, e-Branch ManagerMelanie Walsh, Staffing ManagerJeremy Wiggs, Indirect Lending ManagerTom Wright, Marketing ManagerDebra Brown, Clinton Branch ManagerJanita Clausell, Oak Ridge & Wal-Mart

Branch ManagerCindy Condry, Karns Branch ManagerLinda Evans, Maryville Branch ManagerAnn Gibson, Morristown Branch ManagerJohn Hassell, Madisonville Branch ManagerSusan Jones, Branch Manager/FloaterMichelle Leach, Fountain City Branch ManagerMatt Lewis, West Branch ManagerCissi Reagan, Halls Branch ManagerAngel Scott, Farragut Branch ManagerLeigha Stewart, Laboratory Branch ManagerMartha Story, North Branch ManagerLaTanya Terrell, East Branch ManagerDon Thaler, Lenoir City Branch ManagerHarriet Walker, Kingston Branch Manager

M a n a g e m e n t

2 0 0 3

Your new Community Credit Union

O f f i c i a l s

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Oak Ridge Main Office221 S. Rutgers Avenue

Oak Ridge National LabP.O. Box 365

Oak Ridge Wal-Mart373 S. Illinois Avenue

Clinton 1117 N. Charles Seivers Blvd.

North Knoxville 808 Victor Drive

West Knoxville8721 Kingston Pike

East Knoxville 2321 East Magnolia

Farragut 11405 Municipal Center Drive

Fountain CityNorthgate Plaza Shopping Center

4330 N. Broadway

Karns7228 Oak Ridge Highway

Halls 4510 Emory Road

Kingston1204 N. Kentucky Street

Lenoir City895 Highway 321 North

Maryville 1743 West Broadway

Madisonville111 Kefauver Lane

423-442-6061

Morristown1730 West Andrew Johnson Hwy.

423-581-9800

TELEPHONE: 865-688-9555*Or toll-free: 1-800-676-5328

*All locations except Madisonville and Morristown

CyberBranchTM

http://www.ornlfcu.com

Printed On Recyclable PaperNCUA

National Credit Union Administration, a U.S. Government Agency.

Your savings insured to 100,000