2007 turned out to be a challenging year for net income. A continuing margin squeeze coupled with a large increase in loan delinquencies and write-offs resulted in a strained ROA. We experienced increased losses across all of our products and geographies. We definitely see this trend as part of a broader shift in the credit cycle that is testing our risk management assumptions and pricing strategies. The initial attention on subprime mortgages has obviously grown to a much more far-reaching strain on the economy.
Going into 2008, we are confidently sticking with our long-term strategic plan which is performing extremely well for us showing sustained growth in members, relationships and loyalty. Beyond that, we are looking to strengthen our risk management capabilities and organizational efficiency to address the challenges in the current environment and show continuous improvement through what we learn.
Volatile times like these inevitably create opportunity for those organizations strong enough to weather the storm. Credit unions in particular have the opportunity to leverage their value proposition, high trust and strong balance sheets to be positioned for growth. Several areas that we see as being especially attractive include: mortgage lending, share growth, membership growth and new branching opportunities.