50th Annual Report
2006

Given at the Annual Meeting
March 26, 2007

Board of Directors
     Milton Fredricksen, President
Norman Schaffner, Vice-President
Ernie Sanchez, Secretary
Gary Friestad, Treasurer
Rochelle Wisdom, Director

Credit Committee
     James "Eddy" Cheneweth III, Chairperson
Lorraine Villegas
Steve Grady

Supervisory Committee
    Gary Friestad, Chairperson
Roger Reyes

Office Personnel
    John G. Pressler, CEO
    Theresa Lewis, COO
    Gerald Schaffner, CFO
    Janice Pressler, CLO
    Gerly Abarro
    Arlene Subarich
    Carolina Enriguez
    Marcella Avitia
    Diana Pascua-Jones
    Cindy Layon
    Pat Fuson
    Erminda Reque
    Sinann Kinney
    Sharmella Taylor
    Richard Lewis

The Report of the Credit Committee
The Credit Committee met weekly this past year and acted on over 1,150 applications.  We made a conscientious effort to approve all loan applications, taking into careful consideration the memberˇ¦s credit history, security values and purpose for the loan.  All loans must be for a provident and productive purpose.

The members, whose money we are lending, are entitled to full protection of their investment and assurance that the loans will be repaid, guaranteeing a sound credit union operation.

To help us work effectively and efficiently, we have loan officers who answer to the Credit Committee.  We strive to process loans on a timely basis and to meet the needs of all members.

James "Eddy" Cheneweth III, Chairperson
Credit Committee

Report of the Supervisory Committee
The Supervisory Committee has the responsibility of reviewing records and financial statements, as well as the performance of credit union officials and employees.  This is to ensure that all records and internal controls are correctly maintained.

During 2006, the Committee supervised an audit by an outside firm, Richards and Associates, and worked directly with the National Credit Union Administration.  On the basis of these audits, other records, and our observation of the operations of the Credit Union, we believe the related statement of income and expenses and the balance statement present fairly the financial conditions as of December 31, 2006.  The audits and records reflect a strong, well run financial organization.

Our thanks to the members, the Credit Union staff, the Board of Directors and all other volunteers for their participation in making our credit union a successful financial institution.

Gary Friestad, Chairperson
Supervisory Committee

Report of the Board of Directors
The Board of Directors is pleased to report that in 2006 Paradise Valley Federal Credit Unionˇ¦s capital-to-asset ratio increased to 14.76%.  Assets decreased 2.98% to a total of $55.2 million.

In 2006, Paradise Valley Federal Credit Union continued to grow and enhance some of its newer services such as:

• eBr@nch - home banking
• eStatements - on-line account statements
• ePay - bill pay

HFS is an Internet-based financial service available 24 hours a day, seven days a week, and provides members with the convenience and flexibility of taking care of many of their financial transactions without requiring a visit to the Credit Union.

Looking to the future, PVFCU will begin developing a relocation plan into the new Senior Center Complex planned for the property previously occupied by San Diego Academy. 

The Credit Union is pleased to have participated in several community activities, donating over $30,000 in 2006.  Some recipients included:

•  Paradise Valley Hospital
• San Diego Academy
• San Diego County SDA Churches
• National City Schools
• Boys and Girls Clubs of National City
• Credit Union Support Activities
• National City Safety Fair

We are looking forward to the year 2007.  Our mission as a member-owned credit union is to meet the needs of you, the member, by providing financial services through sound financial management and friendly, personalized service.

On behalf of the Board of Directors of Paradise Valley Federal Credit Union, I urge you to consider Paradise Valley Federal Credit Union for all of your financial needs.

Milton Fredricksen, President
Board of Directors

Financial Statement

Assets	2005		2006
Loans to Members Less Allowance for Loan Loss	$       44,076,191 (180,056)		$       46,633,517 (187,830)
Cash	269,080		347,239
Investments	11,944,016		7,698,497
NCUIF	368,225		356,065
Building	101,490		29,461
Furn & Equip	16,531		5,360
Accrued Loan Interest	192,650		221,244
Accrued Investment Income	32,396		27,820
Other Assets	124,568		164,719
Total Assets	$       56,945,091		$       55,296,092

Liabilities & Equities

Total Liabilities	$         1,483,459		$            111,476
Shares	48,039,461		47,017,981
Regular Reserve	2,626,256		2,876,256
Other Reserves	0		0
Undivided Earnings	4,795,915		5,290,379
Total Liabilities     & Equities	$       56,945,091		$       55,296,092

Statistical Information

	2005			2006
Members	5,527			5,406
Accounts	7,982			7,785
Loans Made Year	982	$  21,809,145		1012	$  14,272,211
Loans Made Since    Organization	33,801	$238,912,451		34,775	$253,184,662
Loans Charged     Off Since     Organization		$1,428,814			$1,553,596
Recoveries		$      184,975			$      209,437

Three Year Summary

	2004		2005		2006
Total Assets