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M ore than 50 years ago, the founders of Secur i ty Service

establ ished a set of conservat ive business pr inc ip les that

were endur ing enough to guide the inst i tut ion through t imes

of nat ional prosper i ty and t imes of economic downturn. At the

core of th is conservat ive phi losophy is the pr inc ip le that doing

what ’s best for the member is a lso in the best interest of the

credit union, i ts employees and the communit ies we serve.

In keeping with these values and the credit union motto of

“People Helping People,” your credit union cont inued to meet

members ’ f inancia l needs on an indiv idual bas is throughout

2010. Members responded favorably, report ing high levels of

sat isfact ion with the service they received

throughout the year. As Secur i ty Service

steadi ly grows and acquires new members ,

we cont inue to expand o u r AT M n e t w o r k and

improve our website capabi l i t ies to ensure

members in a l l markets have convenient and

eff ic ient access to their accounts .

We also continue to provide special services to

support members who serve in the mi l i tary.

Secur i ty Service was recognized by Fort Carson for providing

ongoing f inancial , educat ional and volunteer support for so ld iers

throughout 2010. Part of th is educat ional support inc luded

the credit union’s annual part ic ipat ion in the Department of

Defense’s National Military Saves campaign, which teaches military

families how to bui ld savings and achieve f inancia l health . As in

years past , Secur i ty Service enrol led more mi l i tary personnel in

the program than any other f inancia l inst i tut ion in the nat ion,

with over 3 ,860 enrol lees . In addit ion, chi ldren of mi l i tary

members in Colorado Spr ings received the opportunity to

spend a day learning basebal l sk i l l s f rom real Sky Sox basebal l

p layers and coaches at Security Service’s fourth annual Mil itary

Appreciation Sky Sox Youth Basebal l Camp.

Your credit union remains committed to providing educat ion

and educational opportunit ies for young people. Security Service

s t a f f m e m b e r s c o n d u c t e d m o re t h a n 4 7 2 f i n a n c i a l l i t e ra c y

presentat ions for students th is year in c lassrooms throughout

Texas and Colorado. Addit ional ly, the credit union once again

provided $1 ,000 scholarships to 15 deserving high school seniors

through the “Dol lars for Scholars” program, which has donated

a tota l of $210 ,000 in scholarships over the past 20 years .

Volunteerism across the organization reached record levels this

year as employees donated their t ime and money to support

nat ional and local char i table groups. The Secur i ty Service Vol-

unteer Corps of employees contr ibuted more than 6 ,000 hours

to community projects and organizations in Texas and Colorado.

Employee contr ibut ions to the U n i t e d W a y

r e a c h e d a n a l l - t i m e h i g h o f $ 2 3 5 , 5 9 3

w i t h 97 % o f e m p l oye e s d o n a t i n g . Security

Service also became a national partner for the

Leukemia and Lymphoma Society’s annual L ight

the Night walk , ra is ing more than $140,000

and providing 400 part ic ipants for the events

in Texas and Colorado.

On behalf of your Volunteer Board of Directors,

I would l ike to t h a n k o u r m e m b e r- ow n e rs fo r t h e i r co n t i n u e d

l oya l ty to Secur i ty Service. Your credit union is here to help

you dur ing th is d i f f icu l t economic t ime and beyond. And to

our employees , I extend my apprec iat ion for your hard work

and dedicat ion to our members . Even as we grow in s ize and

strength, we wi l l cont inue to focus on putt ing members ’ needs

f i rst and upholding the same conservat ive pr inc ip les that have

guided us successful ly for hal f a century.

S incerely,

Robert P. EggerChairman of the Board

“In keeping with these values and the credit union motto of ‘People Helping People,’ your credit union

continued to meet members’ financial needs on an individual

basis throughout 2010.”

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VOLUNTEER BOARD OF DIRECTORS

Robert P. EggerChairman of the Board

T imothy E . McCa l lum2nd Vice Chairman

Mary V. Ho lubDirector

Grover JacksonDirector

James Tatt in iDirector

F i l V i l la r rea lDirector

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As an inst i tut ion founded by mi l i tary members , Secur i ty Service understands that the

demands of mi l i tary service can often leave servicemembers in d i f f icu l t economic stra i ts .

We are dedicated to g iv ing our mi l i tary members and their fami l ies the f inancia l ass istance

they need, whether they’re ret i red, reservist or act ive duty, serv ing states ide or overseas .

Throughout the year, the credit union provided thousands of members in uni form with

low-rate emergency loans to help offset the f inancia l burden assoc iated with deployment . Secur i ty Service a lso worked with mi l i tary

members to restructure their ex ist ing loans at lower rates and provide the f inancia l educat ion they needed to p lan their f inancia l future.

In addit ion, your credit union led the industry in new enrol lments for the Department of Defense’s Nat ional Mi l i tary Saves program, which

teaches mi l i tary members smart savings behaviors .

DEDICATION

Joseph A . Co leman1st Vice Chairman

James A . O ’Farre l lTreasurer

Peter J . McNameeDirector

Robert JohnsonSecretary

Donald L . M i l le rDirector

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David E . ReynoldsPresident & CEO

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“Security Service remained strong, steadily growing and

focused on meeting members’ increased financial needs

throughout the year.”

T he National Bureau of Economic Research has stated that

the recession plaguing the United States off ic ial ly ended

in June 2009, a statist ic that should signify a posit ive change

in the f inancial industry’s economic outlook. Unfortunately,

f inancial institutions took a signif icant hit when new government

regulations made recovery from the recession even more

challenging.

These tumultuous external conditions could test an institution’s

fortitude and the strength of its business planning. However,

your credit union – supported by the soundness of its member-

centric mission, the dedication of its caring employees and the

counsel of its Volunteer Board of Directors – once again met

these challenges. Security Service remained

strong, steadily growing and focused on

meeting members’ increased f inancial

needs throughout the year.

In a year when layoffs were widespread

at other companies, your credit union

maintained job growth for employees, with

no personnel layoffs. Our capital grew from

$423 mil l ion in 2009 to $491 mil l ion as a result of responsible

expense control and operational eff ic iency. Deposits grew from

$4.6 bi l l ion to $5.2 bi l l ion. The credit union’s loan portfol io also

expanded, from $5.0 bi l l ion to $5.6 bi l l ion, as the credit union

remained focused on providing loans to members throughout

these diff icult t imes.

Membership grew from 740,000 to 810,000, in part due to the

acquisit ion of two credit unions – Norbel Credit Union in northern

Colorado and Beehive Credit Union in Utah. These acquisit ions

brought with them 14 new service centers, expanding members’

access to personal service and convenient account access. The

credit union further expanded and improved member service

points by engaging in a Shared Branching partnership, which

al lows Security Service members to make transactions at 4 ,000

service centers of other credit unions nationwide. In return,

we al low those credit unions’ members to conduct transactions

at our service centers, s ignif icantly expanding account access

throughout the United States. Additionally, we joined the CO-OP

ATM Network, giving members access to $1 transactions at 28,000

ATMs across the country.

In November, the credit union improved online service by

launching a redesigned website with detai led product charts

for easier comparison shopping among our f inancial products

and services. The site now also offers a streamlined application

process, an interactive ATM and branch locator and other features

geared toward making the member’s online experience as simple

and eff ic ient as possible.

I am grateful to our Volunteer Board of

Directors for their continued support and

unwavering dedication to our member-

centric philosophy and conservative business

principles. I also want to congratulate our

employees on another year of exemplary

service to members and to their communities.

As the people of this country rebuild their

f inancial futures, I encourage our members

to turn to their credit union for personal f inancial advice and

assistance. Above al l , we value your membership and remain f irm

in our commitment to help you and your family achieve f inancial

health and sustained well-being in 2011 and beyond.

Sincerely,

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Boys & Girls Clubs

For the third year in a row, Security Service presented a donation to the Boys & Girls Clubs of San Antonio and hosted a holiday drawing contest. The winning drawings were used as the credit union’s corporate holiday cards, and the winning children received a bag of prizes that included a $50 gift card to Wal-Mart, a portable DVD player and more.

United Way

Over 97% of Security Service employees participated in the credit union’s annual United Way campaign in October and November. Employees donated $235,593, as well as their time and energy, to support the United Way in its mission of improving lives throughout the communities it serves.

Leukemia and Lymphoma Society Light the Night

More than 400 employees in Texas and Colorado helped the credit union raise over $140,000 for lifesaving research and patient assistance programs. This was the credit union’s ninth year to participate and its first year to serve as a national partner.

Security Service reached 810,000 members this year and is the eighth-largest credit union in the country, serving new markets in Colorado and Utah. But we have always defined

industry leadership by more than just size and market share. Our internal measures of success extend to corporate responsibility, volunteerism and participation in the communities we serve. This culture of service starts at the top of our ranks and extends down through our Volunteer Corps of hundreds of employees in each of our service areas.

Here are a few highlights from the credit union’s community activities in 2010:

Junior Achievement

Junior Achievement is dedicated to educating students about financial literacy. Security Service employees taught more than 472 in-class financial literacy presentations for students. In addition, local branches pitched in to raise more than $3,000 for the organization’s annual Bowl-a-thons.