I N V E S T I N G in P E O P L E and P L A C E S

CEI

2012 ANNUAL REPORT Copyright 2013 Coastal Enterprises, Inc.

Design: annie|catherine, inc., Portland, Maine. Printing: East Shore Studio & Print, Portland, Maine. This report is printed on Domtar Cougar paper that was harvested from a well-managed sustainable wood source.

36 WATER STREET P.O. BOX 268 WISCASSET ME 04578

207.882.7552 207.882.7308 FAX

cei@ceimaine.org www.ceimaine.org

C E I 2 0 1 2 A N N U A L R E P O R T2

C U M U L A T I V E I M P A C T R E P O R T 2 0 1 2

The stories behind the statistics shown above truly motivate us to press forward with our work. Our

customers inspire us. Their stories of accomplishment and resilience show that our confidence in and

support of them is more than justified. We are thankful to the many foundations, individuals, banks,

religious groups, investors, and government funders who are assisting them to grow and expand,

helping us impact their lives and communities in a positive way.

OUR MISSION To help create economically and environmentally healthy communities in which all people, especially those with low incomes, can reach their full potential.

N0. OF STAFF 88 | NO. OF LOANS/INVESTMENTS OUTSTANDING 329 | CAPITAL UNDER MANAGEMENT/COMMITTED $898.5 million BUSINESSES FINANCED 2,251 | AMOUNT FINANCED $958 million | AMOUNT LEVERAGED $2.44 billion

BUSINESSES/PEOPLE COUNSELED 41,044 | FULL-TIME JOBS AT LOAN CLOSING 27,181 AFFORDABLE HOUSING UNITS CREATED/PRESERVED 1,483 | CHILD CARE SLOTS CREATED/PRESERVED 5,466

C E I 2 0 1 2 A N N U A L R E P O R T 3

2 0 1 2 : T H E F O U N D AT I O N F O R G R O W T H A N D C H A N G E

Welcome to CEIs 2012 annual report. We thank you for taking the time to get to know our organization, and

hope you find the information, ideas and philosophy set forth here as exciting as we do.

In our 35th year of operation and with 11 offices statewide, CEI ranks among the nations leading rural

community development corporations (CDCs) and community development financial institutions (CDFIs).

Its New Markets Tax Credit program, managed by CEI Capital Management LLC, is the largest issuer of tax credits

for private investment in rural America, and now has projects in 26 states.

With roots in the civil rights movement and Equal Opportunity Act of the 60s, CEI is part of a larger collaboration

to bring value, financial support and self-sufficiency to people and places outside of the economic mainstream. CEI

works in partnership with groups and organizations throughout the country that embrace social and environmental

justice for all people leading the way on the Triple Bottom Line of return on investment economy, equity,

environment.

We owe our success today to our customers, to the 40 board and advisory board members of CEI and its subsidiar-

ies, and to the 88 employees dedicated to our mission. Without their energy, drive and entrepreneurial spirit,

none of the work in which we are engaged would be as effective and impactful. We are indebted to their service

and their loyalty.

Please join us on our journey to make a difference in creating opportunities and spreading prosperity through

mission-focused finance, development and policy.

Ronald L. Phillips Sue Inches

President Chair, Board of Directors

C E I 2 0 1 2 A N N U A L R E P O R T4

In October, 2012, the CEI Board approved the Platform for Sustainable Lending and Investing: 2013-2017 (the Platform),

a $128 million initiative to finance over 700 enterprises, create 6,500 livable-wage jobs, and provide access to services in health

and affordable housing for thousands of individuals and families. When combined with the added capacity of CEIs Venture

Capital and New Markets Tax Credit subsidiaries, were poised for even greater mission impact.

The Platform consists of a continuum of financing products from $1 million, all of which come together to create

jobs among small, medium and micro businesses and the value-added natural resource ventures of farms, fish and forests. These,

plus the availability of affordable housing and robust community facilities, provide the working landscapes so important to

rural economies.

In this journey, we aim especially to further engage impact investors in our work, and believe we have an inviting set of prod-

ucts and options to offer. The term impact investor refers to publicly-motivated and socially-conscious individuals and institu-

tional investors who seek to do good while making a financial return. In a world increasingly challenged with access to the basic

necessities for a hopeful life, there is more demand than ever for the altruistic vision of impact investors blended with philan-

thropy, patient capital and government resources and CEI-type organizations to help realize that vision.

If we help our customers attain their success goals, well be fulfilling our own mission and creating ways for impact investors to

achieve the social value they seek with the resources they have. We welcome the participation of private and public entities and

resources to help us meet the goals of this important initiative.

L O O K I N G A H E A D TO S U S TA I N A B L E G R O W T H

CUMULATIVE VALUE OF CEI FINANCING AND LEVERAGE

C E I 2 0 1 2 A N N U A L R E P O R T 5

INTEREST & DIVIDENDS FEE INCOME RENTAL INCOME FEDERAL & STATE PRIVATE OTHER

SALARIES & FRINGE PROVISIONS FOR LOAN LOSS OCCUPANCY & COMMUNICATIONS INTEREST EXPENSE

CONSULTANTS & CONTRACTOR SERVICES OTHER

SOURCES OF REVENUE

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

$3,500

$3,000

$2,500

$2,000

$1,500

$1,000

$500

$0

CEI 28%

LEVERAGE 72%

CEI SHARE OF FINANCING AND LEVERAGE

$1.00 CEI Financing Leverages$2.89 From Other Sources

28%

72%

EXPENDITURES

CUMULATIVE VALUE OF CEI FINANCING AND LEVERAGE

29%

32%

23%

6%

5% 5%

51%

18%

5%

9%

9%

7%

NMTC SBA 504 HOUSING VENTURE ENTERPRISE DEVELOPMENT

MILLIONS

C E I 2 0 1 2 A N N U A L R E P O R T6

Sea to Table was established in 2001 by the Dimin Family to provide a connection between sustainably managed fisheries and the restaurant industry. By working directly with the fishermen, they are able to connect the fisherman producer with the end user, ensuring that restaurant seafood is fresh, unique, cost neutral and harvested in a sustainable manner. Removing the middleman not only creates a positive partnership with fishing communities, but provides greater profitability for all involved.

The capital recently invested by Partners for the Common Good and CEI allowed Sea to Table to expand their operations to offer frozen salmon in addition to fresh seafood. These resources will enable the company to continue to purchase, process and distribute 60,000 lbs. of Sockeye salmon from Bristol Bay, Alaska.

Returning value to the fishing communities has always been a priority for Sean Dimin. The Kitchen Community from Colorado is a model for all of us to follow. They purchased Maine pollock and made a deal directly with the help of Sea to Table. We helped them to negotiate with the ships captain to purchase, process, portion and truck the wild sustainable fish from the Gulf of Maine to restau-rants in Colorado. To date, we have returned $3.6 million in purchased fish, labor and supplies directly back to fishing communities.

CEI INVESTMENT $125,000 EMPLOYEES 15 CEI CONNECTION Loan Department, Fisheries PARTNER Partners for the Common Good BENEFITS Health insurance, education and waterfront job training, free fresh seafood WEBSITE sea2table.com

SEA TO TABLE LLC BROOKLYN, NEW YORK

F I S H E R I E S

To date, we have returned $3.6 million in purchased fish, labor and supplies directly back to fishing communities.

C E I 2 0 1 2 A N N U A L R E P O R T 7

CEI INVESTMENT $125,000 EMPLOYEES 15 CEI CONNECTION Loan Department, Fisheries PARTNER Partners for the Common Good BENEFITS Health insurance, education and waterfront job training, free fresh seafood WEBSITE sea2table.com

Burgess BioPower Plant in rural Berlin, N.H. is a prime example of next generation forestry management. Developed by Cate Street Capital, Inc., the goal of the plant is to bring jobs and economic development to an area that has been negatively impacted with the closure of surrounding pulp and paper mills. The plant, being constructed on the site of a defunct paper mill, will convert some 750 thousand tons of biomass, a by-product of sustainable wood harvesting, to 75 megawatts of power. The project is on track to sustain 40 direct jobs in management and plant operations, plus several hundred jobs related to the harvest-ing and transportation of biomass.

CEI Capital Management allocated $20.7 million in New Mar-kets Tax Credits for the plant, an important incentive to attract-