Meghan and Tom close on their new townhouse

Katie graduates... now it’s off to college!

The Espinosas on vacation

Bill Jr. and Mom on her 80th birthday -

Growing TogetherAs we reflect on the last 25 Years, our

focus is clear. Through our members’

eyes, we see the fulfillment of the BCU

Vision – personalize your experience,

reward your loyalty, exceed your expec-

tations and commit to your prosperity.

We have built this credit union from the

ground up – TOGETHER. And we look

forward to continuing to serve you and

your family for generations to come.

Beth shows off her new convertible

Marge and Ed enjoying their retirement

Chairperson and President’s MessageWe cannot start our report this year without taking a moment to

recognize the significance of completing our 25th Year of service

to you, our member. During this time, we have experienced solid,

continuous growth and have successfully managed through changes

in the financial services industry and in our nation’s economy.

Through it all, our focus has never changed. Stay close to our

members, provide unparalleled service and constantly evaluate how

we can improve the value, convenience and security we provide to

our diverse membership base – one person at a time.

The doors of our first employees’ credit union opened in 1981.

That small organization – established with just $500 in member

funds – has grown into an award winning organization with over

$1.16 billion in assets, serving 124,250 members throughout the

United States and Puerto Rico. We see this as testimony of our

members’ loyalty and responsiveness to the competitive products

and services provided by the credit union. The positive momentum

that began over 25 years ago has fueled our growth and improved

the lives of our extended family.

Financially, our capital ratio ended 2006 at 9.28% and we hold the

highest regulatory capital designation. While total ending 2006 assets

grew 12.1% over the 2005 year-end total, it gives us pleasure to report

that nearly $29 million was paid in dividends to our members, an in-

crease of $8.2 million, or 39.2%, over 2005. This increase reflects the

value we are giving back to our members as they earn higher rates on

their share accounts. The higher dividends were also created by mem-

ber share growth of 12.6% over 2005, which totaled $964 million at

the end of 2006. A significant portion of this growth came with the

recent revamp of our money market account, which now provides

more members the opportunity to earn higher dividends at lower

balance thresholds. Our loan portfolio grew by 13.6% and reached

$1.02 billion at year end as members turned to us for competitive

rates and flexible solutions to meet their borrowing needs.

This past year was also a time of giving back, as we sought out ways to

strengthen and support the communities we serve. BCU employees’

efforts helped raise more than $55,000 for the Multiple Myeloma Re-

search Foundation. Employees also gave generously of their time and

talents, volunteering for a variety of community causes and events.

New Member GrowthChairperson and President’s MessageThe last 25 years have allowed us to make signifi cant progress in elec-

tronic services, account access and product development, which now

provide an even stronger foundation for future growth and success in

serving you. Although change is certain, BCU’s commitment to your

prosperity will continue to be the driving force of our business.

We would like to thank our Board of Directors, sponsors, staff, and

our members who have made the last 25 years possible, and who form

the foundation of BCU’s success. If the past is any indication of the

future, the journey ahead is sure to be exciting.

May the new year bring you and your family peace and good health.

Margot F. KaplanChairperson

Michael G. ValentinePresident & CEO

We would like to recognize the corporate

sponsor groups who have played such a

critical role in our success over the last

25 years.

19972004

2005

2000

2000

(in thousands) 2006 2005

ASSETS Cash and cash equivalents $ 66,989 $ 43,751 Investment securities available-for-sale 18,992 21,470 Other investments 22,634 43,700 Mortgage loans held for sale 6,856 3,356 Loans to members, net 1,015,756 894,894 Accrued interest receivable 4,780 3,662 Property and equipment 16,703 16,145 NCUA share insurance fund deposit 7,589 7,626 Other assets 9,608 8,975

Total Assets $ 1,169,907 $ 1,043,579 LIABILITIES AND MEMBERS’ EQUITY Liabilities Members’ shares $ 963,613 $ 856,016 Borrowed funds 85,000 80,000 Accrued expenses and other liabilities 19,845 17,615

Total Liabilities 1,068,458 953,631 Members’ Equity Regular reserves 35,725 35,725 Undivided earnings 66,388 55,011 Accumulated other comprehensive loss (664) (788)

Total Members’ Equity 101,449 89,948

Total Liabilities and Members’ Equity $ 1,169,907 $ 1,043,579

Statements of Financial ConditionAs of December 31, 2006 and 2005

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Asset Growth (in millions)

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Members’ Equity (in millions)

(in thousands) 2006 2005

Interest Income Interest on loans to members $ 66,999 $ 54,731Interest on investments and cash equivalents 2,971 3,523

Total Interest Income 69,970 58,254 Interest Expense Dividends on members’ shares 28,982 20,815 Interest on borrowed funds 3,200 2,368

Total Interest Expense 32,182 23,183 Net Interest Income 37,788 35,071 Provision for Loan Losses 6,530 4,825

Net Interest Income After Provision for Loan Losses 31,258 30,246 Non-Interest Income Service charges and other fees 11,163 9,777 Interchange income 8,947 8,300 Other mortgage income 1,417 1,448 Net gains on sales of loans 1,076 1,425 Net losses on sales of investments - (198) Other income 5,213 4,500

Total Non-Interest Income 27,816 25,252 Other Operating Expenses Salaries and benefits 19,699 17,839 Loan costs 8,553 8,824 Equipment and data processing 4,890 4,023 Office occupancy 2,538 2,349 Other expenses 12,017 10,546

Total Other Operating Expenses 47,697 43,581

Net Income $ 11,377 $ 11,917

Statements of Income For The Years Ended December 31, 2006 and 2005

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Share Growth (in millions)

A few special moments over the last 25 years.....

Samuel G. O’Kelly, a founder and the fi rst member of Baxter Travenol Employee Credit Union (TECU), is still with BCU today, serving as Director Emeritus.

The Credit Union begins offering personal loans and auto loans to members.

Baxter Travenol started its own employees’ credit union-TECU in 1981.

Since our founding, BCU’s hallmark has been the commitment in meeting

and exceeding the needs of members. Here are just a few examples of how

we have advanced member service over the last 25 years.

The Credit Union begins offering personal loans and auto loans to members.

1981

1982Patty Pantle started her career with TECU in 1981 and is still with BCU today. She is planning to retire in mid-2007 and her BCU family will miss her greatly.

1981

For the fi rst time, members can apply for a credit union credit card.

Baxter Travenol merges with American Hospital Supply, resulting in the formation of Baxter Credit Union (BCU). The fi rst BCU ATM is installed.

To provide easy access to account information, BCU implements B.A.R.T. (BCU’s telephone teller). In addition, the BCU Phone Center is introduced.

To help our members attain their dream of homeownership, BCU begins offer-ing fi rst mortgage loans to members.

For the fi rst time, members can apply for a credit union credit card. To provide easy access to account information, BCU implements B.A.R.T.

Baxter Travenol merges with American Hospital Supply, resulting in the formation To help our members attain their dream of homeownership, BCU begins offer-

1985

1987

1990

1991

As our members’ fi nancial needs become more complex, BCU responds by expanding its brokerage and fi nancial planning services to include a full range of trust services.

BCU launches www.BCU.org to provide 24-hour/7-day a week access, giving members a new way to apply for loans and communicate with BCU employees.

BCU unveils the Visa® Check Card.

BCU partners with the Shared Branching network, allowing BCU members to use hundreds of additional branches from participating credit unions nationwide.

BCU launches www.BCU.org to provide 24-hour/7-day a week access, giving BCU partners with the Shared Branching network, allowing BCU members to use

BCU unveils the Visa® Check Card. As our members’ fi nancial needs become more complex, BCU responds by

1995

1996

2002

2004

2006 and Beyond

During 2006, BCU opened six new service centers to serve key corporate sponsor

groups, including two e-service centers that connect directly with live personnel in

our Vernon Hills call center. In August 2006, BCU also acquired an existing service

center located in St. Paul, MN that had served the Guidant Corporation for many years

prior to its April 2006 acquisition by Boston Scientifi c Corporation.

BCU has more service center

openings planned for 2007 and

beyond to further improve service

levels to our members and provide

growth opportunities for the future.

e- service center kiosk in Marlborough, MA.

2006 Board of Directors, Committees and Offi cersBoard of DirectorsMichael J. BaughmanRobert A. BenzigerDavid DrohanThomas W. HodsonMargot F. KaplanRon K. LabrumJames C. LuthinDouglas D. ShumaJames H. Taylor, Jr.Charles W. ThurmanMichael G. ValentineMichael J. Curran

Executive CommitteeMargot F. Kaplan Chairperson

Robert A. BenzigerThomas W. HodsonDouglas D. ShumaCharles W. Thurman

Supervisory CommitteeMichael J. BaughmanChairperson

John M. BirdSebastian BufalinoAnne IrelandScott Kilgren

Finance CommitteeCharles W. ThurmanChairperson

Todd A. GustafsonThomas W. HodsonMargot F. KaplanJames C. Luthin

Compensation CommitteeMargot F. KaplanChairperson

Douglas D. Shuma

Offi cers Michael G. ValentinePresident / CEO

Margot F. KaplanChairperson

Douglas D. ShumaVice Chairperson

Robert A. BenzigerSecretary/Assistant Treasurer

Todd A. GustafsonSenior Vice President/CFO/Treasurer/Assistant Secretary

Robert McKaySenior Vice President/COO

Lisa A. WilsonSenior Vice President/Human Resources

Michelle BloedornVice President/Marketing

Patti DixonVice President/Service Centers

Jeffrey M. JohnsonVice President/Information Systems

John R. RidgeVice President/ Wealth Management

Herbert BehrensVice President/ Lending

John S. SahagianVice President/ Collections

Director EmeritusSamuel G. O’Kelly

Our fi rst stand alone BCU Headquarters on Lake Cook Road in Deerfi eld, Illinois.

The new BCU Head-quarters and Service Center in Vernon Hills, Illinois open their doors.

Future site for BCU Headquarters in Vernon Hills, Illinois. Move tentatively planned for November, 2007. 2007

1999

1982

Service CentersArkansas

Mountain Home1900 North Highway 201Mountain Home, AR 72653

California

Glendale4501 Colorado BoulevardLos Angeles, CA 90039

Fremont47900 Bayside ParkwayFreemont, CA 94538

Irvine*

1212 Alton ParkwayIrvine, CA 92606

Westlake Village1 Baxter WayWestlake Village, CA 91362

Florida

Miami8600 N. W. 41st StreetDoral, FL 33166

Tampa/Largo7511 114th AvenueLargo, FL 33773

Illinois

Crystal Lake*

415 South Main StreetCrystal Lake, IL 60014

Deerfield1 Baxter ParkwayDeerfield, IL 60015

Lake ForestTrustmark400 North Field DriveLake Forest, IL 60045

McGaw Park1485 Waukegan RoadMcGaw Park, IL 60085

Round LakeRoute 120 & Wilson RoadRound Lake, IL 60073

Vernon Hills*

400 N. Lakeview ParkwayVernon Hills, IL 60061

Massachusetts

NatickBoston ScientificCorporationOne Boston Scientific PlaceNatick, MA 01760-1534

MarlboroughBoston Scientific100 Boston Scientific WayMarlborough, MA 01752

Minnesota

Maple GroveBoston Scientific Corporation2 Scimed PlaceMaple Grove, MN 55311

St. Paul4100 Hamline Avenue NorthSt. Paul, MN 55112

Mississippi

Cleveland911 N. Davis AvenueCleveland, MS 38732

New York

Glens Falls8 Glens Falls Tech ParkGlens Falls, NY 12801

North Carolina

North Cove67 Pitts Station RoadMarion, NC 28752

Ohio

Dublin7000 Cardinal PlaceDublin, OH 43017

Puerto Rico

AibonitoRoad 721 KM 0.3Aibonito, PR 00705

AnascoRoad 402, North KM 1.4Anasco, PR 00610

Bianca*

Salon de Actividades BiancaCarretera #2 KM 143.0Anasco, PR 00610

CarolinaRoad 109 KM 0.7Carolina, PR 00987

Coopervision/Ponce500 Carr., 584Lote 7Amuelas Industrial ParkJuana Diaz, PR 00795

JayuyaRoad 144 KM 20.6Jayuya, PR 00664

MaricaoRoad 357 KM 0.8Mariacao, PR 00606

San GermanRoad 122 KM 0.5San German, PR 00683

BCU Main OfficeP.O. Box 8133400 North Lakeview ParkwayVernon Hills, IL 60061

Member Relations800-388-7000847-522-8600847-522-8749 fax

BART – BCU’s 24-Hour Telephone Teller800-944-8143

Internet Service Center & Online Bankingwww.BCU.org

E-mail AddressaskBCU@BCU.org

Servicios En Español800-214-5098www.tuBCU.orgpreguntaBCU@BCU.org

To serve members who do not live near a BCU location, your credit union is affiliated with a shared branching network with over 2,400 locations in 43 states and 5 countries. Visit the Branch and ATM Locator at www.BCU.org to search for the shared location nearest you.

Contact

* Public Access