Dear Shareholders and Friends,

2010 will be remembered as a remarkable year for Clearinghouse CDFI. We attained our eleventh consecutive year of profitability while reaching a new record-level in corporate earnings. The impact of our loans improved the lives of tens of thousands of families. Amendments to our credit agreements allowed us to raise new debt capital more efficiently and economically. We are very optimistic about the future given our sustained growth and profitability while operating in this difficult and unpredictable financial environment.

Our total loan production in 2010 exceeded any previous year, due in large part to our record level funding of New Markets Tax Credit loans. We funded a total of $137,612,490 benefiting over 65 different borrowers through our Core, New Markets Tax Credit, and Single Family loans. New Markets Tax Credit loans in 2010 exceeded $105 million, the highest level ever.

Our parent corporation pre-tax profit was over $3.8 million, representing a 7% increase over 2009. For the sixth consecutive year, we paid a dividend to all “Class A” shareholders providing a consistent and reliable return on their equity investment. Debt that was borrowed as part of our first private placement offering (PPO), was completely repaid in 2010 and $9 million in debt from our second PPO was repaid early in 2011. We continue to exceed all of our long-term projections and goals related to the on-going early retirement of capital debt borrowed from our shareholders.

A great amount of effort was expended in 2010 that ultimately resulted in Clearinghouse CDFI becoming the first non-depository CDFI ever to borrow from a Federal Home Loan Bank (FHLB). This historic accomplishment provides us an immediate source of competitively-priced capital and allows us to participate in the many FHLB affordable housing programs. We expect our groundbreaking achievement will open the doors for other CDFIs throughout the country to benefit from this new and most valuable source of liquidity.

We remain one of the strongest, well capitalized, CDFIs in the nation. We are excited about new lending opportunities within our Core and New Markets Tax Credit lending efforts, including small business lending programs and upper-tier leveraged lending. We will continue to seek loans that create jobs, provide affordable housing, and foster economic growth in the low-income and distressed communities we serve.

We wish to thank all of our shareholders and community partners for their strong support in 2010. With the ongoing support of our Board of Directors, hard-working committees, and dedicated staff, we will continue to make a meaningful difference throughout our service area - one loan at a time.

Sincerely,

	Douglas J. Bystry President/CEO		Alan Orechwa Chairman of the Board