CYou’ve Got Connections!

Agenda 1Year in Review 2Chairman’s Report 372nd Annual Meeting Minutes 4Treasurer’s Report 52008 Loan Committee Report 6Financial Statement 72008 Income Expense Report 8Supervisory Committee Report 92008 Yohler Scholarship 10Board Nominees 10President’s Report 11Board of Directors 12Management Team 12Bethel Staff 13Broadway and Madison Staff 14

Call to OrderJohnny Reason, Chairman

Establishment of Quorum

Introduction of Directors

Reports to Membership(All reports are available in this

Annual Report Booklet)Chairman’s Report Johnny ReasonMinutes – 72nd Annual Meeting

George McKibbenTreasurer’s Report Marilyn SmithLoan Committee Dana BakerSupervisory Committee Steve Rose

Motion to approve the above reports.

Unfinished BusinessJohnny Reason - None for this meeting.

New BusinessBoard of Directors Election ResultsJohnny Reason

William H. Yohler MemorialScholarship AwardJohnny Reason

President’s CommentsJeffery E. Sikora, President/CEO

Recognition of StaffJeffery E. Sikora

Questions and AnswersGeneral Board

AdjournmentJohnny Reason

Motion to adjourn this 73rd AnnualMeeting of WGE Federal Credit Union.

Door Prize Drawing

1

Business Meeting Agenda

FebruaryWGE launched a new Web site with enhancedsearch capabilites and a bold new design.

MarchOver 3,600 branches are added to WGE withthe joining of Shared Branching. Members maynow do their banking across the United States.

AprilChecks are now processed via electronic captureallowing quicker turn around and the ability toelectronically view checks at any time.

E-Alerts are added to the ever-growing list offree electronic services. Know when your bal-ance is low, when a check clears, when depositsare made, and when withdraws are made by re-ceiveing an e-mail or text alert.

MayThe former State Farm building, next to theBethel Branch, is purchased to become the newWGE Administrative Building.

Members began receiving a new member satis-faction survey which allows members to win $50and allows WGE to pinpoint specific areas inwhich they excel or may need work.

JuneVisa Member Rewards Program is introduced.Visa card holders can now receive up to 1%cash back when they use their Visa credit card.

JulyA new WGePay system enhances WGeNet -Online Banking. Members may now send giftchecks any where in the world, set payment re-minders, and pay from multiple accounts.

August“You’ve Got Connections!” becomes the newtagline for the credit union. The tagline reflectsthe credit unions connection to the community,members connection to experts in the creditunion field, and connections to state-of-the-artbanking products.

A fire suppression systems is installed to protectthe onsite data base that houses member infor-mation in case of fire.

A natural gas generator is placed at the BethelBranch. Now the Bethel Branch will be able tooperate during power outages, ensureing mem-bers can always access their money.

SeptemberAll employees begin a three month training ses-sion called “Reg Flag”. Red Flag teaches em-ployees how to recognize and preventfraudulent member activity.

OctoberA year-long project, Diaster Recovery and Busi-ness Continuity Plan, is complete and submittedto the NCUA. In the case of a natural diaster,WGE has a plan in place to ensure the safety ofmember assets and a plan to get back to busi-ness within 24 hours.

DecemberWGE qualifies to insure regular member sav-ings accounts up to $500,000 with Excess ShareInsurance.

The new Administrative Building renovationsare complete.

2

Year In Review

On behalf of my fellow Directors, I wouldlike to welcome you to the 73rd AnnualMeeting for WGE Federal Credit Union. AsBoard chairman, it is my distinct privilege toreport that 2008 was a progressive and suc-cessful year for your Credit Union.

The most important message I want toshare with our members tonight is thatWGE is safe and sound. While it continuesto grow, your Credit Union remains clear ofthe financial difficulties that are plaguingmany other financial institutions. Let meoffer the following examples of what I mean.

WGE is financially safe and sound. Atyear-end 2008, WGE had a capital reservelevel of over 13%. The National CreditUnion Administration (NCUA), our federalregulator, considers a credit union to be well-capitalized if their reserve level is 7%. As youcan see, WGE’s reserves are almost doublethe amount NCUA looks for.

In addition to being extremely well-capi-talized, WGE is profitable; your credit unionearned a Return on Assets (ROA) of .55%,almost right on target with its Budget esti-mate of .59%. Coming that close to yourBudget is difficult under normal circum-stances; to do it in a year that was so hectic

makes it even better.As a final example of its financial

strength, WGE recently began to offer Ex-cess Share Insurance coverage on all fundsdeposited to WGE. This Excess Share In-surance means deposits at WGE are coveredup to $500,000 per member, whereas mostinstitutions only insure $250,000. Again, be-cause of our financial strength, we can offeradditional safety and convenience to ourmembers. There is no otherinstitution that is safer to keep yourmoney in than WGE!

In closing, I want to re-state WGE’scommitment to moving forward to serveour membership. Our intention is to beYOUR primary financial services provider,offering the products and services thatgive you financial benefit.Remember, WGE is safeand sound and growing…for you!

Johnny ReasonChairmanWGE Board of Directors

3

Chairman’s Report Total Shares & Deposits10510410310210110099989796959493

2004 2005 2006 2007 2008

in millions

94 93 93

99

106

The 72nd Annual Meeting was held April 26,2008 at the Horizon Convention Center.Call to Order: Chairman Johnny Reason,called the meeting to order at 7:45 p.m. Board of Directors Roll Call: Johnny Reason,Madlyn Clevenger, Marilyn Smith, GeorgeMcKibben, LaRue Cross, and Linda Mann. JimButler was absent.

Motion to accept the role call as read wasmade by McKibben and properly seconded byMann. Motion carried. McKibben recognized aquorum was present.Board Introductions: Reason introduced theBoard of Directors and Supervisory Committeeand thanked them for their service.Annual Report: Reason identified the listed ofreports within the 2007 Annual Report.• Chairman’s Report• 2007 Annual Meeting Minutes• Treasurer’s Report• Loan Committee Report• 2007 Financial Statement• Supervisory Committee Report• President’s Report

Motion to accept the reports as printed in the2007 Annual Report was made by McKibbenand properly seconded by Cross. Motion car-ried.Unfinished Business: Reason stated there is noUnfinished BusinessElection Report: Clevenger presented the Elec-tion Report. There were three nominationsfrom the nominating committee, all incumbents;Johnny Reason, Marilyn Smith, and LindaMann. There were no petitions submitted foroffice. The incumbents will maintain office dueto acclamation.

Motion to accept the Election Results by ac-clamation as read made by McKibben and prop-erly seconded from the floor. Motion carried.New Business: Reason introduced Presi-dent/CEO Jeff Sikora.

Sikora introduced the Yohler Scholarship se-lection committee: Lissa Campbell, daughter ofWilliam H. Yohler, and Dorothy McGraw.

Sikora summarized the changes to the 2008Scholarship Award. The award will be a $1,000per year reoccurring award up to $4,000. Ms.Campbell thanked the Board for continuing torecognize Bill’s volunteer efforts and commit-ment to the credit union movement.

Campbell announced Michael Wayne

Hutson as the recipient of the 2008 William H.Yohler Memorial Scholarship.

Sikora reflected on progress of the organiza-tion in 2007; particularly completion of thecomputer system conversion and the positivegrowth trends.

Sikora introduced the staff by department.Reason asked for questions from the floor.

Seeing none, asked for a motion to adjourn.Motion to Adjourn: Motionto adjourn the meetingwas made by McKibbenat 8:05 p.m. andproperly seconded bySmith. Motion carried.

George McKibbenSecretary

WGE Board of Directors

4

Meeting Minutes

Over the last half of 2008, conditions withinthe financial services markets deteriorated withamazing speed and frightening scope. The af-fects of the downturn were felt from local mar-kets to global markets; from Wall Street toMain Street. Everywhere you turned, the badnews was overwhelming as a tidal wave.

Yet against this backdrop of bank failures,Wall Street greed, and plummeting stockprices, your Credit Union sailed on; providingmembers a safe harbor for their financialneeds. As WGE grew, it did so without expe-riencing the many financial ailments thatplagued so many financial institutions! WGEis safe and sound… and growing!

The source of WGE’s financial strengthlies with its capital base, built over years ofstrong earnings. At over 13% of assets, it is al-most twice the level NCUA considers well-capitalized. Our current capital strategy is tomaintain our current levels, while reinvestingthe majority of our earnings into our opera-tions. Still, we are in the enviable position ofhaving plenty for “that rainy day”.

Presented next is a financial snapshot ofWGE. It reflects robust financial perform-ance as well as steady growth. Consider thefollowing statistics from year-end 2008:

Assets grew to $126,022,152, an increaseof 9.51% from the previous year.Total deposits advanced to $105,516,735,up 6.35% from year-end 2007.Loans Outstanding also grew, advancing4.84% to $75,423,683.WGE achieved a strong ROA of .55%,earning $662,163 over the year.WGE closed $31,421,161 in loans ofall types during the year. Dividends paid on member depositstotaled $2,348,068.WGE’s membership exceeded20,000 members and offeredmembership opportunities tomore than 300 Muncie-areaemployee groups.

In closing, I would like tore-state that WGE isfinancially safe andsound, and offersmembers a solidchoice forfinancialproducts andservices.

Marilyn SmithTreasurer

WGE Board of Directors

5

Number of New Employees Groups

2004 2005 2006 2007 2008

21181512

9630

2 68

11

17

Total Assets126124122120118116114112110108106104102

2004 2005 2006 2007 2008

in millions

107108

109

115

125

Treasurer’s Report

WGE’s Loan Officers and Loan Committeewere very busy during 2008! For the year,WGE made 3,354 member loans totaling$31,421,160. That dollar figure represents a12.8% increase from the previous year’s totalof $27,848,979. A breakdown of the year’sactivity is below:

As a result of the 2008 loan activity,WGE’s loan portfolio totaled $75,761,973,or up 5.04% from 2007 year-end total of$72,125,567 (totals before Allowance forLoan Loss). The breakdown of the portfoliois as follows:

In summary, WGE continues to be yourbest source for loans, and can tailor loans tomeet your budget. There is no“credit crunch” at WGE!

Dana BakerSenior Vice Presidentof Operations

Type Number AmountConsumer 2,960 $25,801,260Mortgage 47 $3,575,350

VISA 347 $2,044,550TOTAL 3,354 $31,421,160

Member Loans

Type AmountConsumer $40,522,953Mortgage $27,350,191

VISA $7,888,829TOTAL $75,761,973

Loan Portfolio

6

Yield on Average Loans

2004 2005 2006 2007 2008

6.056.12

6.23

6.77

6.91

7.06.96.86.76.66.56.46.36.26.16.05.95.8

From NCUA December Financial Performance Report - Ratio Analysis

Net Loans Outstanding75747372717069686766656463

2004 2005 2006 2007 2008

in millions

95

70

69

72

76

percent

Loan Committee Report

Home Equity Loans ______$5,653,716.74Real Estate Loans ________27,350,190.96Share Secured Loans ________757,739.90All Other Loans _________34,111,496.12Visa Gold _______________3,799,886.32Visa Classic ______________1,415,480.13Visa Platinum ____________2,673,462.66Total Loans_____________75,761,972.83Allowance for Loan Losses __(338,290.25)Net Loans Outstanding____75,423,682.58

Cash ___________________3,830,732.26Corporate Investments ____18,537,983.20Bank CDs ______________22,139,750.74NCUSIF ________________1,009,557.07All Other Investments _______820,990.00Total Investments ________42,508,281.01

Land & Buildings _________2,815,844.48Furniture & Fixtures_________807,517.83All Other Assets____________636,093.95TOTAL ASSETS _________$126,022,152.11

Accounts Payable __________$124,772.28Dividends Payable ___________88,368.31Unapplied DP Exceptions ___3,018,263.68All Other Liabilities _________361,584.96

Share Accounts______________________Share Certificates _________32,944,541.76Share Draft Accounts______13,902,403.57Regular Shares ___________30,998,891.23Money Market Shares _____17,441,497.43IRA Accounts ___________10,229,400.92Total Shares____________105,516,734.91

Regular Reserves __________3,147,530.33Undivided Earnings _______13,662,655.78Current Income ____________102,241.86Gain/Loss on Investments __________0.00Total Equity _____________16,912,427.97

TOTAL LIABILITIES& EQUITY________________$126,022,152.11

Assets Liabilities

Net Loans Outstanding75747372717069686766656463

2004 2005 2006 2007 2008

in millions

7

95

70

69

72

76

Financial Statement

INCOMEInterest Income on Loans $5,109,132.81 $4,779,879.83Investment Income 1,521,365.72 1,713,077.33Fee Income 2,494,681.38 2,181,120.87Other Operating IncomeTotal Income 9,125,179.91 8,674,078.03OPERATING EXPENSESEmployee Compensation 1,967,761.57 1,875,569.93Employee Benefits 463,300.03 430,696.45Travel & Conference 39,402.17 18,693.81Association Dues 16,514.30 15,945.00Office Occupancy 418,303.46 356,621.13Office Operations 1,851,408.99 1,889,897.91Loan Servicing 270,899.12 287,445.13Professional & Outside Services 152,271.62 135,644.95Member Insurance 46,219.42 48,438.63Supervisory Fees 25,658.85 22,151.80Interest on Borrowed Funds 0.00 0.00Miscellaneous Expenses 339,196.88 255,209.90Total Operating Expenses 5,590,936.41 5,336,314.64

INCOME FROM OPERATIONS 3,534,243.50 3,337,763.39Dividend Expenses 2,348,070.42 2,305,241.21Provision for Loan Losses 665,369.54 221,554.01Gain/Loss on Sale of Investments 141,359.19 0.00Gain/Loss on Fixed Assets 0.00 0.00NET INCOME/LOSS $662,162.73 $810,968.17

2008 2007

Total Income9.08.58.07.57.06.56.05.55.04.54.03.53.0

2004 2005 2006 2007 2008

in millions

8

6.4

7.0

7.8

8.88.3

Income and Expenses

The role of the Supervisory Committee withinthe Credit Union is to insure the financialrecords of the organization are in order andcomply with Federal Regulations.

In addition to the Supervisory Committee’soperational insight, it also employs the account-ing firm of Whitinger & Company LLC to per-form the annual audit as required by theNational Credit Union Administration(NCUA), our federal regulator.

In 2008, Whitinger’s Annual Audit andtheir quarterly reviews found that all of WGE’saccounts and records were in order and certi-fied that the financial statement s accurately re-flected the Credit Union’s financial position.

The Supervisory Committee also overseesthe results of NCUA’s Annual Examination.Because of WGE’s strong financial position,there was no comprehensive NCUA Exam per-formed during the calendar year of 2008. How-ever, in a scaled-down examination performedin the fourth quarter, it was determined thatWGE met operating expectations and qualifiedfor federal share insurance coverage.

Wayne WilsonSteve Rose

Jason WebberWGE Supervisory Committee

9

Results from 2008 Member Satisfaction Survey over 1,000 surveys collected

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SupervisoryCommittee Report

The growth and success of WGE can be attributed to the many ded-icated volunteers that have served over the years. WGE’s longestserving volunteer was William (Bill) H. Yohler. Bill became a volun-teer in 1944 and served for 57 years. In addition to Bill’s dedicationto the credit union, he was also active as a civic and social volunteer.

After Bill’s death in September 2001, WGE established a schol-arship in his name. The goal of the scholarship is to recognize a stu-dent who shows concern for others through their own volunteerefforts. In 2008, the scholarship was increased to $4,000 payable in$1,000 increments over four years.

WGE Federal Credit Union has awarded the 2008 William H.Yohler Memorial Scholarship to Kristi Kay Murray.

Kristi attends Cowan High School. She is the daughter of Adamand Teresa Murray. Kristi is planning on attending Ball State Uni-versity. She wants to pursue a degree in Graphic Arts Management.

Kristi’s list of accomplishmentsincludes membership in the NationalHonor Society, Key Club, SpanishClub, Varsity and JV Basketball, andCampus Life/Youth for Christ.

Kristi Kay MurrayCowan High School

Board Nominees

George McKibben - SecretaryGeorge is finishing his first term on theboard of directors for WGE. He hasbeen employed at Borg Warner for 26years, and is serving as vice president ofthe union, alternate committeeman,chair of the steward body, and steward.He completed his first semester at IvyTech in December. He is working to-wards an associates degree in BusinessAdminstration.

Jim Butler - DirectorJim is finishing his first term on the board.He retired from Borg Warner after 33years. He was an EAP rep for 19 years.Jim has a bachelor’s degree in SocialWork and a master’s degree in ExecutiveDevelopment. He is currently employedat Eastern Engineering.

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William H. YohlerMemorial Scholarship

“Steady as She Goes…”Many of you are familiar with the phrase

“Steady as she goes…” It means stay thecourse, and continue what you’ve beendoing because it’s working well. It’s good ad-vice for WGE FCU; our current approachto business is working well. We’re financiallysafe and sound, and at the same time, grow-ing. Let me share some examples.

From a financial perspective, WGE isin excellent financial shape. Our capital levelis over 13% of Total Assets; almost twice thelevel NCUA has defined as being “well-capi-talized”. In addition, our earnings for 2008were strong, achieving a Return on Assets(ROA) of .55%. In addition, we paid morethan $2.3 million dollars in dividends onmember deposits. So financially, we’re verysound.

When you talk about safe, there isn’t aninstitution in town that offers more safetythan WGE. In addition to the federal shareinsurance of $250,000 provided throughNCUA, we have met the qualifications tooffer an additional $250,000 in Excess ShareInsurance. That means our members de-posits are insured for a total of $500,000 per

account! Providing this extra coverage isonly possible because of our superior finan-cial well-being.

In addition to being safe and sound,WGE is growing! This is important becausethe organization that does not grow will notsurvive. Our Total Assets grew 9.51% to$126,022,152; Deposits grew 6.35% to$105,516,735; and Loans Outstanding grew4.84% to $75,423,683. We made more than$31,400,000in loans to members in 2008. Thismeans our members are countingon WGE more and more.

So, “steady as she goes” foryour Credit Union! We’re safe,sound and growing! Be sure to bepart of the excitement!

Jeffrey E. SikoraPresident and CEO

11

President’s Report

Boar

d of

Dir

ecto

rs

Lead

ersh

ipTe

am

Supe

rvis

ory

Com

mitte

eJohnny Reason

ChairmanMadlyn Clevenger

Vice ChairmanMarilyn Smith

TreasurerGeorge McKibben

Secretary

Jim ButlerDirector

LaRue CrossDirector

Linda MannDirector

Steve RoseCommittee Member

Wayne WilsonCommittee Member

Jason WebberCommittee Member

Jeff SikoraPresident/CEO

2 years

Dana BakerSr VP of Operations

21 years

Keith MylerVP of Lending &Retail Services

1 year

Pam QualkinbushBethel Branch

Manager17 years

Susan KeeslingBroadway Branch

Manager25 years

Leslie TimmonsMadison Branch

Manager24 years

Kim RattrayDirector of HR &

Training2008 Hire

Carol BradshawMarketing Director

1 year

Jackie EskewElectronic Services

Manager22 years

Matt KearInformation Systems& Facilities Manager

19 years

Nicole TerrellAccountingManager9 years

12

Amanda HankinsElectronic Services

4 years

Chrissy RigneyMSR

1 year

Barbara PearsonCall Center

16 years

Celia BreedingMSR

2 years

Deanna HelmsCall Center

19 years

Haley FullhartMSR

7 years

Denise RossMSR

9 years

Diane HartmanLoan Officer

21 years

Joannie DeckerMSR

2 years

Julie DobbsMSR

2 years

Jodie HatcherMSR

11 years

Judy PorterCollections

1 year

Kara DevineTeller

2 years

Michelle BassHead Teller

1 year

Lindsey BeatyReceptionist

1 year

Mary DennyElectronic Services

5 years

Michelle TurnerMtg. Loan Officer

16 years

Shelia KerrCall Center

10 years

Sharon BakerLoan Officer

17 years

Sharon JacksonTeller1 year

Sherri MillerCall Center

11 years

Tami PowellMtg. Loan Officer

16 years

Tara McBroomTeller

2008 Hire

Tiffany SeeTeller

2008 Hire

Tracy DavisTrainer

23 years

Tony SorrellElectronic Services

9 years

Cassie MinchAccounting

9 years

Trina BowlingAccounting

9 years

13

Broa

dway

Mad

ison

Laurie CroseTeller1 year

Lori WoodTeller

2008 Hire

Elizabeth SheetsTeller

2008 Hire

Chris ClevengerMSR

10 years

Janice FerrellHead Teller

12 years

Cathy CreekLoan Officer

20 years

Dana RuddrickTeller

7 years

Carolyn Reagan-MundyTeller

6 years

Vickie CopleyMSR

7 years

Marlene CrabtreeTeller

2 years

Tracy McCowanTeller

8 years

Paula TerrellTeller

3 years

Rhonda OgleMSR

12 years

Lisa AmbrosettiTeller

19 years

Joyce SniderMSR

16 years

Mary NixonTeller

2 years

Joyce PierceTeller

5 years

Karen DelaneyTeller

10 years

Bonnie LoranceHead Teller

8 years

Maria HoytMSR

25 years

Shellee ElliottTeller

7 years

14

CYou’ve Got Connections!

The holes are patched. The mast i s upr ight . The wind i s b lowing. Let ’ s s tar t sa i l ing . . .