2009IMPACTREPORT

MARKINGAJOURNEYOF15YEARS

THEN

NOW

1994 19961995 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

SINCE 1994, ECD/HOPE HAS…generated over $1.4 billion in financing

and assistedmore than 75,000 people in theDelta and other economically distressed

communities across the Mid South.

Small Business• 9,704 Jobs

• 2,898 Entrepreneurs Trained• 4,047 Total Businesses Assisted

• $223 Million Financed• 900 Community Facility Slots Assisted

Homeownership & Affordable Housing• 11,849 Total Homeowners Assisted

• 80% First-Time Homeowners• 65% Low-Income Borrowers

• 238 Low-Income Housing Units Developed• $1.2 Billion in Affordable Housing

and Homeownership Financing

Individual Development Services• 26,000 HOPE Members• 3,488 Consumer Loans

• $50 Million in Consumer Loans Financed

2009:TheYear InReview

Dear Friends,

We are proud and fortunate to report to youthat during 2009, a year when more financialinstitutions failed than any since the GreatDepression, ECD/HOPE helped more peopleand made more loans than any single year in ourhistory.

While we were certainly not immune tothe financial crisis, years of experience gainedfrom providing responsible financing andrelated services in one of the nation’s mosteconomically distressed regions positionedECD/HOPE to have a very productive year.

A year of transitionIn many ways, 2009 was a year of transition

as we absorbed the growth from recent years andadapted to the ongoing turmoil in the economyand financial sector.

On the Gulf Coast, we continued ashift from hurricane recovery to positioningECD/HOPE as a primary source of developmentfinance services for low-income residents.By doing so, we are supporting residents’ongoing efforts to regain stability, whileproviding access to our full range of financialproducts and services.

Throughout the region, many traditionallenders dramatically restricted their lendingactivity, making it difficult for many to accessfinancing to support their families and theirbusinesses. For many, ECD/HOPE was able toextend a safety net by providing a recordnumber of consumer, commercial and mortgageloans in 2009. In the process we were able tohelp stabilize businesses, preserve jobs and savehomes from foreclosure. We also stepped upour efforts with developers to provide qualityrental housing as more and more people are

priced out of homeownership; and continued toprovide financial counseling, both through ourstaff and in collaboration with nonprofitpartners.

Growing, adapting and making an impactHope Community Credit Union continued

to grow, providing access to affordable,responsible financial products and services tomore than 25,000 member-owners. In additionto serving more people, HOPE intensified itsefforts to help vulnerable consumers preservetheir income by launching a payday loanalternative to high-cost predatory loans, and byoffering Volunteer Income Tax Assistance andlow-cost refund anticipation loans.

Because economic conditions remainuncertain, individuals and institutions seek asafe place to invest their hard-earned money.Not only has HOPE provided its depositors witha safe haven from the economic storm, it putstheir funds to use in a responsible manner,producing social as well as financial returns –a stark contrast to many of the stories comingfrom Wall Street and from troubled financialinstitutions.

Changing lives by changing policyFollowing Hurricane Katrina, we saw first

hand how difficult navigating the road torecovery is for those who lack assets. Seekingto apply these lessons and related solutions tothe current economic crisis, ECD/HOPEincreased its efforts to work with policymakers, advocates and others to address thedisproportionate challenges facing low-wealthpeople and communities, and to facilitate theirrecovery from the Great Recession.

Through the Mississippi Economic PolicyCenter we provided data and analysis regardingthe need for workforce supports and financialassistance for working families, and encouragedpolicies and practices that limit the type ofirresponsible lending practices that contributedto the financial crisis.

Our policy work also extended to the federallevel, as ECD/HOPE testified beforeCongressional committees, participated in aSmall Business Financing Forum hosted by theTreasury Secretary and SBA Administrator,attended the White House Jobs Summit, andjoined a dozen community bankers in a closed-door meeting with with the President. Amongthe outcomes generated by these efforts was theestablishment of the Community DevelopmentCapital Initiative, a $1 billion program toincrease access to capital in the nation’s hardesthit areas.

The responsibility continuesWhile we achieved a measure of success in

2009, much work remains ahead as financialuncertainty looms into the foreseeable future.ECD/HOPE would not have the ability torespond to the needs of those we serve withoutthe generous support entrusted to us over theyears. This allows us to reach deeper thantraditional financial institutions and make adifference in the lives of those who need itmost. Thank you for your past and continuedsupport as we strive to strengthen communities,build assets and improve lives throughout theMid South.

1994 1995 1996

Pew Charitable Trusts provideseed funding for Foundationfor the Mid South’s “DeltaPartnership,” an initiative toaddress workforce and busi-ness development needs inthe Delta regions of Arkansas,Louisiana and Mississippi.

ECD kicks off BreakingNew Ground campaignto highlight the Delta’spotential and to pro-mote collaboration.Community economicdevelopment practition-ers and funders attendECD-hosted networkingforum in Little Rock.

Pew capital challenge is metby Entergy Corporation andthe Walton Family, Ford,Kauffman, MacArthur andMott Foundations.

Enterprise Corporation of theDelta (ECD) is incorporated as afree-standing entity to under-take the business developmentobjectives of the Delta Partner-ship; ECD begins operations inJune 1994.

ECD initiates FastTracentrepreneurial trainingprogram. Local adminis-trators include Delta StateUniversity, University ofArkansas at Pine Bluff,Northeast Louisiana Univer-sity, Mississippi CountyCommunity College andGood Faith Fund.

ECD and Foundation forthe Mid South organizethe Southern EnterpriseCommunities Forum, aconsortium of the region’senterprise communitiesand empowerment zones.

Hope Community CreditUnion is chartered byAnderson UMC toaddress the needfor non-predatoryservices in low-incomeneighborhoods inJackson, Mississippi.

Arkansas, Louisianaand Mississippi stateeconomic developmentagencies and ECD signMemorandum of Un-derstanding, under-scoring a sharedcommitment tostrengthen the Delta.

ECD makes its firstloan: TCS Caseworksin Hughes, Arkansas.

Everyone deserves a safe, comfortable placethey can call home. By providing affordable andresponsible financial products and services, andthrough innovative partnerships, ECD/HOPEmakes quality housing possible for thousands oflow- and moderate-income families each year.

Since 1994, ECD/HOPE has helped morethan 1,900 people become homeowners. Equallyimportant, ECD/HOPE continues to expand theavailability of affordable rental units to familiesfor whom homeownership is not yet an option.

People benefit from housing in ways that gofar beyond the homes themselves. Quality

housing contributes to better educationaloutcomes, safer neighborhoods, more stablefamilies and communities, and enhancedprospects for economic growth. With everyquality, affordable home it supports, ECD/HOPEhelps make someone’s life is made a little better,and makes the Mid South a little stronger.

AffordableHousing

2007 2008 2009

M

# LOANS$ LOANS

$ 18,000,000

$ 16,000,000

$ 14,000,000

$ 12,000,000

$ 10,000,000

$ 8,000,000

$ 6,000,000

$ 4,000,000

$ 2,000,000

$

138130

174

OtherHOPE had grant money

HOPE wasmost accessible

Deniedelsewhere

HOPE interest rateswere lower thanother institutions

8%

26%

6%

50%

10%

Mortgage Loan Originations

HOPE Mortgage BorrowersReason for Choosing HOPE

A Place To Call HomeWorkforce Housing Solutions for the Gulf Coast

Through partnership between ECD and Pentagon, LLC,154 families in Mississippi’s Hancock and Harrison Countiesare moving to new homes.

Gardenia Hills and Homestead were aging trailer parks onthe Mississippi Gulf Coast. Already in poor condition, bothsuffered damage during Hurricane Katrina. Despite theirstate of repair, these parks offered great potential as housingdevelopments.

With financial assistance from ECD, Pentagon purchasedthe land and began improvements. ECD secured 154Mississippi Cottages from the Mississippi EmergencyManagement Agency. These one-, two- and three-bedroomunits had been used for temporary housing after HurricaneKatrina. The cottages are being refurbished and relocated toGardenia Hills and Homestead.

On the sites of two old trailer parks, two newneighborhoods are springing to life. Both parks have beensignificantly upgraded with paved roads and attractivelandscaping. Gardenia Hills and Homestead will becomehome to dozens of low-income families who were displacedby Hurricane Katrina, providing a solid foundation fromwhich these residents can continue with the process ofrebuilding their lives and their communities.

Anne Fidell lost just about everything in Katrina. Shelived in two different FEMA trailer and desperately wantedto find another place to live, but simply didn’t have thefunds to find anything else. Then she heard about theMississippi Cottage subdivisions. She was able to moveinto one of the cottages and feels like she’s home. “Thisneighborhood gives me a sense of place and belonging,”said Anne. “I can’t wait to see how beautiful everythingis going to be with the improvements they’re making.I love this place!”

A Neighborhood TransformedThe Memphis Flea Market

Joseph Sy’s business vision was about morethan just making a profit. It was aboutmaking a lasting difference in his community.In a largely Hispanic area of Memphis,

TN, an abandoned apartment complex hadbecome a magnet for crime and drug use.Where most people simply saw a structurethat needed to be torn down, Joseph saw anopportunity to revitalize the neighborhoodand restore pride to the community.

Joseph purchased the downtroddenapartment complex, leveled the buildingsand converted the land into a lively outdoorflea market filled with vendors and artisans.“I wanted a place where everyone couldcome together and spend the weekendwithout spending a lot of money,” Josephsaid. “There’s nothing quite like the smile ona kid’s face after finding a fifty-cent fleamarket treasure.”Encouraged by the initial success of the

project, Joseph made the decision topurchase and revamp adjacent properties,including a vacant strip mall across thestreet. ECD/HOPE financed these propertiesand provided operating capital to help Josephachieve his goal of transforming the area intoa vibrant shopping destination.

“This flea market has turned the areaaround,” Joseph explained. “Neighborhoodcrime is down, property values are up andpeople are proud of their community again.That alone makes it all worthwhile.”

1997 1998 1999 2000

ECD initiatesMemorandum ofUnderstandingwith state andfederal manufac-turing extensionprograms.

HOPE expands itsfield of membershipto include Fellowshipof Hope Ministries,Amos Network, 100Concerned Clergyand ECD.

HOPE opens itsfirst full-timebranch in theJackson MedicalMall.

ECD and Bain & Company analysis ofbusiness development in the Delta doc-uments: $2.5 billion capital gap, geo-graphical disparities, and potential forjob growth and broadened ownership inthe service sector.

ECD hosts Clarksdale visit byPresident Clinton to kick off“New Markets Initiative” topromote private investment ineconomically distressed areas.

Entergy and ECDorganize theDelta BusinessLINC mentor-protégé programto assist fledgingbusinesses.

Entergy makes $5 millioninvestment in ECD – thelargest non-foundation in-vestment in a communitydevelopment financial in-stitution.

ECD is designated byTreasury Departmentas one of the nation’sfirst CommunityDevelopment FinancialInstitutions.

ECDI is established.

Winthrop Rockefeller Founda-tion, Walton Family Founda-tion and Pew CharitableTrusts provide initial fundingfor “Matching Opportunitywith Capital” campaign toexpand ECD’s impact.

Most lenders view commercial loans strictlyfrom a business perspective. Given its mission ofimproving lives throughout the Mid South,ECD/HOPE sees commercial lending from a verydifferent point of view.

ECD/HOPE places a priority on supportingbusinesses that benefit the community and makelife better for its citizens. Toward this end,ECD/HOPE has developed substantial expertisein providing financing for nonprofits, health careand child care facilities, affordable housingdevelopers and other vital infrastructure thatmakes a community a better place to live andconduct business.

In 2009 – at a time when many traditionallenders have cut back on business financing –ECD/HOPE provided loans to 94 small- tomedium-sized businesses, generating more than$18 million in financing, providing criticalresources that help stabilize communities andsupport hundreds of workers.

CommercialLending

2007 2008 2009

C

# LOANS$ LOANS

$ 30,000,000

$ 25,000,000

$ 20,000,000

$ 15,000,000

$ 10,000,000

$ 5,000,000

$

106

59

94

Nonprofit

Other

Minority- andWomen-OwnedBusinesses

2

41%

43%

16%

Commercial Loan Originations

Commercial Loans ToUnder-Served Populations

2001 2002 2003

ECD receives MississippiGovernor’s Small BusinessAchievement Award. ECD receives $2 million in

Mississippi HOME Funds tosupport homeownership.

More than 25 EmergingMarkets Partnership jointventures underway; Activi-ties through 12/03 havesupported approximately3,000 people, 320 busi-nesses and 300 housingunits in the Delta.

ECD becomes theprimary sponsor ofHope CommunityCredit Union.

ECD and the Kellogg Foundationlaunch the “Emerging MarketsPartnership,” a five-year effortto stimulate investment andfoster networking in the Delta,focusing on key areas includingenterprise development, hous-ing and health care; SupportingMemorandum of Cooperationsigned by Entergy, Fannie Mae,and governors of Arkansas,Louisiana and Mississippi.

ECD receives nationalCDFI Excellence Award forCommunity Impact.

ECD is among the first inthe nation to receive afederal New MarketsTax Credit allocation −awarded $15 million tosupport ECD/HOPEexpansion.

HOPE Mortgage programis initiated with 22 banksand mortgage originators.

In the Mid South there is no shortage of need.Recent years have been particularly difficult.

Thousands lost homes and businesses as a result ofhurricanes and flooding. The current economiccrisis has exacerbated problems in a region that forgenerations has lagged behind the rest of thenation on most indicators of economic and socialwell-being. Solving this myriad of challengesrequires a comprehensive and collaborativeapproach.

Fortunately, there are a number of entities,both public and private, with the capacity andthe willingness to help. By functioning as acommunity development intermediary,ECD/HOPE helps connect those in need ofassistance with those who can provide theresources to tackle the development challengesfacing our region.

In 2009, ECD worked with the State ofLouisiana to provide 142 grants and loans totaling$7.4 million to businesses in areas recovering fromhurricanes Katrina and Rita. In Mississippi, wecollaborated with the Gulf Coast Renaissance

Corporation to underwrite over 4,000 applicationsfor “MyHome MyCoast”, a state-supportedinitiative that helps hurricane-affected familiespurchase homes.

By attracting resources, structuringprograms, and otherwiseacting as a “financialmatchmaker”, ECD/HOPEhelps families and businessesnavigate the obstacles intheir path, continuallyworking toward the goal ofmaking the days ahead betterand brighter than the daysbehind us.

CommunityDevelopmentIntermediary

A Lesson In DeterminationDupont Building and the Louisiana Business Grant& Loan Program

Located near Lake Charles, Louisiana, Dupont Building is aleadingmanufacturer of water-resistant fiberglass shelters for thecommunications and aviation industries. In 2005, the companyhad a client list that included Verizon and the Federal AviationAdministration, giving Dupont a steady stream of orders and brightprospects for the future.

Then cameHurricane Rita. The 22-foot tidal surge destroyedDupont’s entire facility. Completed shelters, ready for delivery, werescattered across the parish. Even worse news came when theirinsurance company denied coverage.

Despite losing almost everything, owners Ricky andMichelleGuidry still had contracts to fill and fifty employees who neededpaychecks more than ever. Determined tomove forward, they

converted hay barns intomakeshift manufacturing facilities.They rented a plane to locate their shelters in themarsh, thenretrieved them and converted them into temporary offices.They did, asMichelle Guidry put it, “Whatever it took.”

Dupont got by with an SBA loan, but struggled due toinsufficient operating capital. In 2009, their road to recovery ledto ECD.Working as administrator of the Louisiana Business Grantand Loan Program, ECDhelped Dupont secure a $20,000 grantand a $230,000 low-interest loan. “This loan is helping us getback to full speed,” saidMichelle Guidry. “It’s made all thedifference in the world.”

Because of the operating capital provided by the state funds,the plant is now being expanded, and plans are underway toconstruct permanent offices. TheGuidrys also have plans to takegood care of their employees. They recently purchased eight acresto provide home sites for employees who lost their homes duringthe hurricane.

One Step at a TimeHelping Ray White bring his goals within reach

At the young age of 23, Ray White already hasa goal for his family’s future. “I want to buy a homeof our own,” he explained. “I want a nice, safeplace where our kids can play as they grow up.”

Ray recognized that attaining his goal wouldrequire improving his credit. “When I was younger,I didn’t realize how important good credit is,” Raysaid. “I made mistakes, and I wanted to fix themso I could improve my rating.”

Ray came to HOPE through Life AbundantMinistries of Sherwood Arkansas, a partner in theHOPE Affinity Network. After a discussion withRay about his goals and financial situation, aHOPE program officer provided financialcounseling, including training on how to read acredit report and prepare a budget.

To improve his credit score, Ray took advantageof a HOPE StretchPay loan. Designed as analternative to predatory payday loans, StretchPayoffers low interest rates and automatic approvalafter 60 days of credit union membership. TheStretchPay loan has an added benefit: it can beused to establish or improve credit.

Ray repaid his initial StretchPay loan within30 days. He has since borrowed and repaidadditional loans, improving his credit score byseveral points. Ray has also completed his creditcounseling program and is well on the way towardhis goal of owning a home.

“I feel in my heart that this is making adifference. I can see the improvement,” Ray stated.He added that his friends at HOPE seem to be ashappy with his progress as he is. “They are there forme no matter what,” he said. “They want me to besuccessful in life, and I appreciate that.”

2004 2005 2006

Service areaexpanded to includetri-state area.

ECD secures NMTCguaranty from Stateof Mississippi. Memphis office

opened.

ECD closes initialNMTC investments.

Terry Roadbranch andBiloxi officesopened.

ECD/HOPE assetsexceed $100 million.Hurricanes Katrina & Rita

devastate Gulf Region.ECD/HOPE responseincludes: Katrina ReliefFund, recovery loans/accounts, Power of HOPEand policy advocacy.

ECD leads effort topass MississippiNMTC Program. Home Again created in

collaboration withNeighborWorks Amer-ica and EnterpriseCommunity Partners.

HOPE leads nationin member growthas a result ofKatrina services.

New Orleans branch opened.HOPE leads nationin deposit growth.

ECD/HOPE receivesWachovia’s NationalCDFI ExcellenceAward for Policy &Advocacy and theBuilding EconomicAlternatives Awardfrom Co-op Amer-ica/Social Invest-ment Forum.

HOPE Affinity Networkstrategy initiated.

It doesn’t always take dramatic actions tochange lives in remarkable ways. Sometimes, allit takes is a willingness to listen and an eagernessto help.

Hope Community Credit Union providesaffordable and responsible financial services inunderserved areas of the Mid South. HOPEfocuses on communities that many traditionalfinancial institutions avoid, thereby providingresidents of these areas with access to the toolsrequired to address a range of essential financialservice needs.

HOPE members can take advantage ofaffordable and responsible banking options, frombasic checking and savings accounts to onlinebanking to consumer and business loans. HOPEalso plays a vital role in financial education,helping members improve their credit ratings,protect themselves from unscrupulous lendersand save for tomorrow.

Combined, these services give credit unionmembers just what the organization’s nameimplies: HOPE. And for many people, thatmakes all the difference inthe world.

RetailFinancialServices

Previously Unbanked withOnly a HOPE Account

Previously Banked withOnly a HOPE Account

Previously Banked

PreviouslyUnbanked

N

21%

4

20%14%

45%

4

2004 2005 2006 2007 2008 2009

H

30,000

25,000

20,000

15,000

10,000

5,000

-

HOPE Membership

Prior Banking Status Of Members

2007 2008 2009

ECD/HOPE beginsoffering microloansacross the region.

ECD/HOPE honoredwith Annie E. CaseyFoundation’s FamiliesCount Honors Awardand the NationalRural Congress’ RuralHeroes Award.

NATIONAL CRISIS HITS HOME:ADDRESSING MISSISSIPPI’SMORTGAGE FORECLOSURES

Mississippi EconomicPolicy Center launched.

Mid Delta Community &Individual InvestmentCorp. subsidiary created.

ECD selected by State ofMississippi to providefinancial counseling to10,000 homeownerswho suffered Katrinadamage.

Itta Bena office opened.

VITA Site locationsbegin offering al-ternative, afford-able tax refundanticipation loans.

HOPE opensfull-serviceMemphisbranch.

Mississippi Coastbranch opens.

American SavingsCredit Unionmerges with HOPE.

HOPE Mortgage introducesaffordable housing product toaddress mortgage crisis.

HOPE membershipgrows to morethan 25,000.

HOPE receives Credit UnionTimes’ Trailblazer Award andEpiscopal Network forEconomic Justice's GloriaBrown Award.

ECD/HOPE workswith the ObamaAdministrationand Congressto address jobsand economicrecovery.

College Station CommunityFederal Credit Union mergeswith HOPE.

Why is it that people who are often the mostfinancially vulnerable in our society – low-income, elderly, the disabled, women, rural,minorities – on average pay the most for financialservices? It’s a good question, to which there isno good answer.

Every day, ECD/HOPE assists people ofmodest means who have been hurt by predatorylenders. The interest rates and fees extracted bypayday lenders can be staggering, often exceedingan APR of 500 percent.

Drawing on over 15 years of experience inlending to financially underserved people andcommunities, ECD/HOPE engages in rigorouspolicy analysis and advocacy to take its lessonslearned to scale. In conjunction with nonprofits,banks, churches and universities, ECD/HOPEuses data and experience to undertake, informand advocate for responsible lending policies andpractices that will reduce the high cost offinancial services for economically vulnerablepeople.

This is but one of the ways that ECD/HOPEuses data and analysis to change lives. Throughits Mississippi Economic Policy Center, ECDprovides information and support to nonprofits,the media, lawmakers, grassroots advocates andothers to build capacity, raise awareness andultimately influence policies that createopportunities for working families and low-income individuals.

By working with others to shape policies andpractices that improve thequality of life inthe Mid South,ECD/HOPEmultiplies itsimpact farbeyond thatachieved throughits developmentfinance programs.

Policy

HOPEStretchPay

$160

$1,135

0 300 600 900 1200 1500

PaydayLoan

PayDay Loan ComparisonAnnual Cost

A Policy of FairnessCreating a brighter future for people like David Bowles

When David Bowles came to EDC/HOPE, he wasstruggling with credit issues, high interest rates andhigh monthly payments. Like many people in theregion today, David had fallen victim to predatorylending and deceptive credit practices. Living on afixed disability income, he had little left over at theend of the month.

In most states, there are few laws to protect peoplelike David. Through its policy and advocacy efforts,ECD/HOPE strives to enact laws that will curbpredatory lending and give all low-wealth peopleaccess to affordable financial products that keep moneyin the pockets of working families to pay for gas, foodand housing.

David heard about ECD/HOPE and decided to lookinto the services available to him. “My brother is anofficer with a credit union in California. He checkedHOPE out before I opened my account and was veryimpressed with their mission and their management.”

HOPE refinanced David’s car loan at a significantlylower rate, reducing his monthly payment. Since thatfirst loan, HOPE has helped David with two otherloans that enabled him to pay off high-interest creditcards and further reduce his monthly notes. In additionto providing David with a resource for responsiblelending, HOPE provided credit counseling to help himimprove his credit rating. Today his credit rating is upinto the 700s.

By saving money on monthly payments, David isnow able to actually set money aside each month in asavings account. “I go to HOPE and think about whata difference they have made in my life,” David said.“I am proud to be a member of an organization that isdriven by a mission to change people’s lives.”

ECD/HOPEGovernance

ECD Board of Directors

Bill BynumECD/HOPE

Hodding CarterUniversity of North Carolina

Elgin ClemonsCelebrity Brands International

Ronnie CrudupNew Horizon Church International

Mike EspyMike Espy, PLLC

Robert GibbsBrunini, Grantham, Grower & Hewes

Kim LeeDryades Savings Bank

Ed LupbergerNesher Investments

Ivory LylesLyles Consulting, Inc.

Fred MillerBank of Anguilla

Martha MurphyCoastal Land & Development, LLC

Martie NorthBank of the Ozarks

Billy PercyGreenville Compress

William WinterWatkins, Ludlam, Winter & Stennis,P.A.

Bonnie Bolton*JPMorgan Chase

David Johnson*BankPlus

*ECDI Management Committee Only

HOPE Board of Directors

Regina AustinMississippi Minority Capital Fund

James BrooksMississippi Department of Education

Carol BurnettMississippi Low-Income Child-CareInitiative

Bill BynumECD/HOPE

Richard CampbellECD/HOPE

Phyllis CassidyGood Work Network

Elgin ClemonsCelebrity Brands International

Robert GibbsBrunini, Grantham, Grower & Hewes

Gwen HarmonNational Civil Rights Museum

George PenickSt. Andrew’s Episcopal School

Maura PhillipsMortgage Guaranty InsuranceCorporation

Carol Borne SpencerEpiscopal Diocese of Mississippi

Austin PorterPorter Law Firm

Troy StovallHoward University

Herman TaylorUniversity of MississippiMedical Center

Neddie WintersMission Mississippi

West Memphis

Memphis

Jackson, TN

Robinsonville

Itta Bena

Greenville

Camden

Jackson, MS

Biloxi

Gulfport

HEADQUARTERSPROGRAM OFFICE / BRANCH

Little Rock

College Station

Baton Rouge

New Orleans

ECD/HOPEServiceArea

STRENGTHENING COMMUNITIES.BUILDINGASSETS. IMPROVINGLIVES.

ECD/HOPEConsolidatedandCombinedFinancialHighlights

Revenues and Expenses Total Assets and Net Worth

Loans and Investments Outstanding Loans and Investments Closed

($M

illio

ns)

($M

illio

ns)

($M

illio

ns)

25.0

18.75

12.5

6.25

02004 2005 2006 2007 2008 2009 2004 2005 2006 2007 2008 2009

200

150

100

50

0

60

45

30

15

0

30.0

22.5

15.0

7.5

02004 2005 2006 2007 2008 2009 2004 2005 2006 2007 2008 2009

($M

illio

ns)

Years Ended December 312009 2008

Results of OperationsEarned Revenues $ 15,021,679 $ 17,711,951Operating Expenses 21,340,566 21,057,531Loan Loss Reserve Expense 2,868,113 1,102,502Change in Net Assets (Net Income/(Loss)) (5,863,598) (4,802,979)

Financial PositionTotal Assets $ 177,996,484 $ 129,215,687Total Net Assets (NetWorth) 46,412,055 47,114,439Loans and Investments 120,726,229 83,799,433Total Debt 32,320,954 35,623,297Total Deposits 99,263,475 46,477,950

Results of ActivitiesTotal Loans Closed 50,205,442 41,857,889

As of December 31, 2009 and 2008Combined

ECD Consolidated HOPE Eliminations 2009 2008AssetsCash and cash equivalents $ 8,278,173 $ 14,748,480 $ (28,984) $ 22,997,669 $ 14,136,507Debt and other securities 16,908,398 18,730,155 (13,116,431) 22,522,123 16,747,572Cash restricted for loans to be made by subsidiary 2,740,090 2,740,090 2,737,729Grants and other receivables (Note 3) 3,719,420 2,903,867 (4,409,897) 2,213,391 8,053,657Prepaid expenses 169,584 66,131 235,715 193,436Other assets 759,109 1,850,273 2,609,382 635,581Interest receivable 177,177 358,283 535,460 295,766Consumer loans 32,285,567 32,285,567 12,833,764Commercial loans (Note 4) 31,175,395 20,082,077 51,257,472 42,455,578Residential mortgage loans 6,196,757 28,439,307 34,636,064 24,725,002Allowance for loan losses (Note 5) (2,228,186) (3,262,940) (5,491,126) (3,146,208)Loans, net 35,143,966 77,544,011 112,687,977 76,868,136Foreclosed property 2,547,126 2,547,126 3,785,089

Goodwill 244,472 244,472Property and equipment, net 2,302,522 6,360,556 8,663,078 5,762,213

Total assets $ 72,745,567 $ 122,806,228 $ (17,555,311) $ 177,996,484 $ 129,215,687

LiabilitiesAccounts payable $ 3,635,248 $192,327 $ (2,523,058) $ 1,304,517 $2,521,388Dividends payable 117,439 117,439Member deposits 99,292,459 (28,984) 99,263,475 46,477,950Other liabilities 3,187,715 2,471,746 (1,886,838) 3,772,622 8,953,873Long-term loans (Note 9) 21,840,200 18,402,606 (13,116,431) 27,126,375 24,148,036Total liabilities 28,663,163 120,476,577 (17,555,311) 131,584,429 82,101,248

Net Assets and EquityUninsured capital and reserves 2,329,651 2,329,651 2,060,717Unrestricted net assets 18,417,632 18,417,632 23,556,674Minority interest 22,209,995 22,209,995 17,709,319Total unrestricted 40,627,626 2,329,651 42,957,277 43,326,710Temporarily restricted 2,762,266 2,762,266 3,095,217Permanently restricted 692,512 692,512 692,512

Total net assets 44,082,404 2,329,651 46,412,055 47,114,439

Total liabilities and net assets $ 72,745,567 $ 122,806,228 $ (17,555,311) $ 177,996,484 $ 129,215,687

ECD/HOPECombinedStatementofFinancialCondition

Temporarily PermanentlyUnrestricted Restricted Restricted 2009 Total 2008 Total

Revenues and Gains:Grants and contributions $ 3,794,103 $ 1,201,024 $ 4,995,127 $ 893,217Program income 12,838,465 12,838,465 14,979,896Investment income 2,183,215 2,183,215 2,732,055

18,815,782 1,201,024 20,016,806 18,605,168

Net Assets Released from Restrictions:Satisfaction of program restrictions 1,543,975 (1,533,975) 10,000Expiration of time restrictions

Total Revenues and Gains 20,359,757 (332,951) 20,026,806 18,605,168

Expenses:Program expenses:

Commercial lending and assistance 5,956,077 5,956,077 5,035,351Mortgage lending and housing 2,029,109 2,029,109 6,069,365HOPE and consumer lending 7,715,839 7,715,839 (822,435)Other programs 5,639,541 5,639,541 10,598,749

21,340,566 21,340,566 20,881,030Development and communications 176,501General administration 4,549,839 4,549,839 2,350,616

Total Expenses 25,890,404 25,890,404 23,408,147

Change in net assets before minority interests (5,530,647) (332,951) (5,863,598) (4,802,979)Change in other comprehensive gains/losses 172,213 172,213 46,733Minority interests in subsidiaries losses 488,326 488,326 (316,903)

Change in Net Assets Attributable to Controlling Interest (4,870,108) (332,951) (5,203,059) (5,073,149)

Net Assets Attributable to Controlling Interest:At beginning of year 25,617,391 3,095,217 692,512 29,405,120 34,478,269At end of year 20,747,283 2,762,266 692,512 24,202,061 29,405,120

Net Assets of Minority Interests 22,209,995 22,209,995 17,709,319

Net Assets and Equity at End of Year $ 42,957,278 $ 2,762,266 $ 692,512 $ 46,412,056 $ 47,114,439

ECD/HOPECombinedStatementofActivity

For the years endingDecember 31, 2009 and 2008

1. Basis of Presentation

The accompanying combined and consolidated financialstatements include the consolidated financial statements of theEnterprise Corporation of the Delta (ECD) and the financialstatements of Hope Community Credit Union (HOPE). ECDhas received a ruling from the Internal Revenue Service forexemption from income taxes as a public charity under InternalRevenue Code Sections 501(c)(3) and 509(a)(2). HOPE is acredit union under Section 501(c)(14) of the Internal RevenueCode. All significant intercompany accounts and transactionshave been eliminated in the combination and consolidation.The purpose of this presentation is to report ECD and HOPE asoperating together to fulfill their mission. ECD is the primarysponsor of HOPE and encompasses the field of membership ofHOPE. ECD and HOPE share staff and resources in operatingterms. Separate audited financial statements of ECD and HOPEare available at www.ecd.org and www.hopecu.org.

Subsidiaries of ECD include ECD Investments, LLC (ECDI);ECD Investments BIDCO Corporation (BIDCO); ECDAssociates, LLC (ECDA); ECD New Markets, LLC (ECDNM);Home Again, Inc. (Home Again); Mid-Delta Community andIndividual Investment Corporation (MDCIIC); ECD FirstCommercial, LLC (ECD First); ECD Plus, LLC (ECD Plus); andECD Central City, LLC. ECDI, a Mississippi Limited LiabilityCompany, was formed in 1997 as a for-profit subsidiary of ECD.ECD holds the controlling interest in ECDI through itsownership of all of ECDI’s outstanding Class B units. Class Aand C units of ECDI are available for investment by qualifiedinstitutional and individual investors. Investments made byqualified institutional and individual investors less accumulatedlosses are shown as minority interest in subsidiary. BIDCO is awholly-owned subsidiary of ECDI. ECDI and BIDCO werecreated to extend ECD’s commercial lending activities. ECDA,a Mississippi Limited Liability Company, was formed in 2004 toraise capital to invest in ECDNM, a Mississippi Limited LiabilityCompany formed in 2003. ECD is the managing member ofECDA and ECDNM. Units of ECDA are available for

investment by qualified institutional and individual investors.Capital invested by ECDA in ECDNM is used to invest inHOPE. In return, ECDA receives New Markets Tax Credits andcash over the investment periods which are distributed toinvestors in ECDA. Home Again began operation in 2006 withthe Company as primary sponsor. Home Again providesmortgage financing and recovery consultation services to eligiblepersons in the coastal region of Mississippi in the aftermath ofHurricane Katrina. MDCIIC was acquired by ECD in 2007 andis a Mississippi corporation that provides loans and technicalassistance to small businesses in a six-county service area in thedelta region of Mississippi. ECD First and ECD Plus beganoperations in 2007 and are commercial loan funds in partnershipwith local banks. ECD Central City began operations in 2009and is a commercial loan fund in partnership with a local bank.On January 1, 2009, HOPE acquired all the assets and liabilitiesof American Savings Credit Union (ASCU) in a NCUA-directed merger accounted for as a purchase. This mergerresulted in an excess of fair value of liabilities assumed over fairvalue of assets acquired of approximately $244,000.

Management has elected to omit substantially all of thedisclosures required by accounting principles generally acceptedin the United States of America. If the omitted disclosures wereincluded in the financial statements, they might influence theuser’s conclusions about ECD/HOPE’s financial position, resultsof operations and cash flows. Accordingly, these financialstatements are not designed for those who are not informedabout such matters.

ECD/HOPENotes toCombined&ConsolidatedFinancialStatements

2. Cash and Marketable SecuritiesCash and marketable securities are comprised of cash and cashequivalents and other securities held by ECD/HOPE in theordinary course of business:

2009 2008Cash and cash equivalents $ 11,018,263 $ 16,874,236Debt and other securities 16,908,398 16,747,572

$ 27,926,663 $ 33,621,808

3. Grants and Other ReceivablesUnconditional grants are recognized as revenue in the period thecommitment is received. Unconditional grants to be receivedover a period of time in excess of one year are recorded at fairvalue at the date of the grant based upon the present value ofpayments to be received. ECD/HOPE’s management anticipatesgrants receivable at December 31, 2009 will be received andavailable for support of ECD/HOPE’s programs as follows:

Annie E. Casey Foundation $ 200,000The Ford Foundation 75,000State of MS HOME Grant 20,960MEMA 775,000LA Disaster Relief Foundation 25,870Kellogg Foundation 300,000NeighborWorks America 175,000Mott Foundation 50,000Contracts and Other Receivables 622,150

Total Grants $ 2,243,980

Less adjustment to reflect grants receivableat fair value at the date of grant(discounted cash flows based on4 percent discount rate) (30,589)Net Grants Receivable $ 2,213,391

4. LoansThe composition of the loan portfolio is as follows:

2009 2008Consumer loans outstanding 32,285,567 12,833,764Commercial loans outstanding 51,257,772 42,455,578Residential mortgage loansoutstanding 34,636,064 24,725,002

$ 118,179,103 $ 80,014,344

Consumer loans are either uncollateralized or secured by vehiclesor deposits.

Commercial loans are typically collateralized by property,equipment, inventories and/or receivables with loan-to-valueratios from 50% to 100%. Commercial loans are typicallyguaranteed by the principals of the borrower.

Commercial loan commitments are made to accommodate thefinancial needs of ECD/HOPE’s customers. These arrangementshave a credit risk essentially the same as that involved inextending loans to customers of commercial banks and aresubject to ECD/HOPE’s normal credit practices.

ECD/HOPE also originates and purchases residential mortgageloans. These loans are typically collateralized by residential realestate with a loan to value ratio of 97% or less. The majority ofthese loans are typically sold within three months of originationor purchase.

5. Allowance for Loan LossesThe allowance for loan losses is maintained at a level consideredadequate by management to provide for probable loan lossesrelated to specifically identified loans and for losses inherent inthe loan portfolio that has been estimated as of the balance sheetdate. Management’s determination of the adequacy of theallowance is based on an evaluation of the portfolio, growth andcomposition of the loan portfolios, economic conditions andother relevant factors. The allowance is increased by provisionsfor loan losses charged to expense.

Transactions in the allowance for loan losses are summarized asfollows:

2009 2008Balance at beginning of year $ 3,146,208 $ 2,413,351Provision charged tooperating expenses 2,089,085 1,102,502

Provision acquired withASCU merger 3,123,946

Loans and investmentscharged off and foreclosed (2,868,113) (3,69,645)

Balance at end of period $ 5,491,126 $ 3,146,208

6. Investments in Privately Held CompaniesECD/HOPE made its first investments in privately heldcompanies in 1998. These investments have generally been inthe form of preferred stock or subordinated debt. Investments inprivately held companies are carried at the lower of cost or netrealizable value. The Company regularly evaluates whether, inmanagement’s opinion, events or circumstances have occurredwhich may indicate that the carrying amount of the Company’sinvestments in privately held companies may not be recoverablebased upon estimated future discounted cash flows from the

investment. If some or all of the investment is determined to beunrecoverable, the asset is written down to the estimated netrealizable value. The Company recognized an impairment losson privately held company investments of $25,000.

7. Foreclosed PropertyForeclosed property consists of properties repossessed by theCompany on foreclosed loans. These assets are stated at thelower of the outstanding loan amount (including accruedinterest, if any) or fair value at the date acquired less estimatedcosts to sell. Losses arising from the acquisition of such propertyare charged against the allowance for loan losses. Declines invalue resulting from disposition of such property are expensed asimpairment loss on foreclosed property or loss on disposition offoreclosed property, as applicable.

8. Dividends Payable on Shares and Share CertificatesDividends payable are dividends earned on share draft accounts,share accounts and share certificates by members of HOPE andnot yet paid by HOPE. Share draft accounts are the credit unionequivalent of bank checking accounts. Interest is earned onHOPE money market share draft accounts. Share accounts arethe credit union equivalent of bank savings accounts, and sharecertificates are the credit union equivalent of bank certificates ofdeposit. All share draft accounts, share accounts and sharecertificates are insured by the National Credit UnionAdministration up to $250,000 per member.

9. Long-Term DebtThe maturities of long-term debt at December 31, 2009, are asfollows:

2010 $ 5,613,2382011 1,818,6922012 1,914,2222013 1,403,5082014 1,591,776Thereafter 14,784,939

$ 27,126,375

10. Uninsured Capital and ReservesThe uninsured capital and reserves include accumulated reservesand undivided earnings of HOPE.

1994 19961995 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

STRENGTHENING COMMUNITIES.BUILDINGASSETS. IMPROVINGLIVES.

Enterprise Corporation of the Deltawww.ecd.org

Hope Community Credit Unionwww.hopecu.org

Main OfficeP.O. Box 22886Jackson, MS 392251-866-843-3358

Branch OfficesArkansas: College Station, Little Rock, West MemphisLouisiana: Baton Rouge, New OrleansMississippi: Biloxi, Camden, Greenville, Gulfport,

Itta Bena, Jackson, RobinsonvilleTennessee: Jackson, Memphis