ANNUAL REPORT OF SUPERVISORY COMMITTEE
DECEMBER 31, 2006

The Supervisory Committee continued its practice of weekly meetings throughout the past calendar year in order to perform oversight responsibilities of Credit Union operations as well as to organize and run GCU's first contested election.

The Committee again decided to retain Root & Associates, CPAs, to perform the annual audit of the Credit Union for the calendar year ending December 31, 2006. The financial information included in this brochure is based on their 2006 Annual Audit. The RI DBR and NCUA in their 2006 audits found GCU in excellent financial condition. Net income was a healthy $1.5 million. For our Share & Deposit accounts, we continued to pay higher interest to our members than other credit unions or banks in R.I. Our capital to asset ratio increased to over 9.1% and $22.2 million. This is well in excess of the 7% which is necessary to be deemed "well capitalized" under NCUA rules and regulations. Our loan portfolio continues to increase. GCU had another outstanding year due to the excellent management and employees at GCU. Management continues to diversify the loan and investment portfolios in an effort to reduce any concentration risk and they are implementing new products and services that will benefit our members and further strengthen the credit union.

The Committee also supported the annual on-site visits of the National Credit Union Administration (NCUA), our insurer, and the Rhode Island State Banking Examiners.

The Internal Audit functions were performed in accordance with a formalized Annual Plan. The Committee along with the External Auditors executed the Annual Audit Plan.

The Committee has kept the Board of Directors and Credit Union Management apprised of all the ongoing examinations and any related recommendations that we may have.

New loans were continuously reviewed, through a random sampling basis to assure that only valid loans are recorded in the Credit Union records and that they were documented in accordance with Credit Union policy.

Periodic reviews, through a random sampling of the open accounts and the accounts that have been closed, were made to insure that GCU database for those accounts was accurate.

The cooperation of the Credit Union's members, directors, officers and employees is appreciated. Your Supervisory Committee shall continue to perform its oversight responsibilities in the best interest of the Credit Union members.

Respectfully Submitted,
Arnold "Nick" Butziger
Chairperson

Greenwood Credit Union
Comparative Statement of
Financial Condition
December 31, 2006

Assets	12/31/06	12/31/05
Cash & Cash Equivalents	$5,322,627	$5,322,627
Investments:
Interest Bearing Deposits	1,710,000	21,467,224
Investments Available for Sale at fair market value	0	0
Accrued Interest Receivable	905,760	728,628
Loans to Members:
First Mortgages	12,819,783	12,762,298
Equity Mortgages	43,325,577	32,665,132
Auto Loans	167,285,162	159,769,577
Other Installment Loans	1,723,698	1,595,527
VISA Loans	2,091,053	2,119,658
Total Loans to Members	227,245,273	208,912,192
Less Allowance for Loan Losses	3,158,507	3,382,963
Net Loans to Members	224,086,766	205,529,229
Property and Equipment (net)	1,563,838	1,433,027
Interest-only strips on indirect automobile loans participated to third parties, at fair market value	2,452,394	2,876,619
Other Assets	2,457,977	2,577,580
TOTAL ASSETS	$242,557,463	$239,934,934
LIABILITIES & RESERVES
Member Savings:
Shares	$62,838,805	$76,758,758
Deposits	1,447,132	1,595,928
Clubs	97,202	108,121
Demand Deposits	23,059,271	23,740,741
IRAs	19,924,600	16,751,876
Certificates of Deposit	110,887,317	97,265,361
Total Member Savings	218,254,327	216,220,785
Recource liability on indirect loans participated	$571,103	$1,043,855
Other Liabilities	1,477,320	1,916,195
Undivided Earnings & Reserves	22,254,713	20,754,099
TOTAL ASSETS	$242,557,463	$239,934,934
LIABILITIES & RESERVES
COMPARATIVE INCOME STATEMENT
INCOME	12/31/06	12/31/05
Interest on Loans & Mortgages	$14,545,374	$12,805,381
Investment Income	480,790	811,172
Interest on interest-only strips, net of amortization	1,338,302	1,001,717
Service Income	1,330,367	1,878,544
Gain on sale of indirect automobile loans to third parties	86,140	316,007
Gain on sale of indirect automobile loans to third parties	326,253	92,963
TOTAL INCOME	$18,107,226	$16,905,784
EXPENSES
Interest & Dividends	$6,828,295	$4,498,916
Operating Expenses	7,004,149	6,530,203
Subtotal	$13,832,444	$11,029,119
Income before Provisions For Loan Losses	$4,274,782	$5,969,825
Provision for Loan Losses	3,246,920	2,784,509
Provision for Recourse Liability on indirect automobile loans participated to third parties	(472,752)	(93,231)
NET INCOME (LOSS)	$1,500,614	$1,699,999