CREDITLINES. A Better Way to Pay for College - page 7 Save Big with Sprint Discount - page 9 Increased Postage for Checks - page 11

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1 Introducing, The Member Security Center - Page 4 Birmingham Botanical Gardens Coupon - Page 6 What to Do When Retirement Sneaks Up on You- Page 9 CREDITLINES Fall 2014 Find inside: A Better Way to Pay for College - page 7 Save Big with Sprint Discount - page 9 Increased Postage for Checks - page 11 OFFICIAL NEWSLETTER OF AMERICA S FIRST FEDERAL CREDIT UNION Call Center or FEDERALLY INSURED BY NCUA

2 NEED REASSURANCE? WE OFFER IT. Has your confidence in Wall Street been shaken? Volatile markets can test your conviction and purpose. But it s important to have a thoughtful plan - and stick with it. Let us help you create a sensible, comprehensive investment plan and guide you to remain on track to reach your goals. Call today for more information or to schedule a consultation. Investing in securities involves risk, including possible loss of principal. No strategy can assure success or guarantee against loss in declining markets. America's First Financial Located at America's First Federal CU Russell W. Jordan, CFP, CFS LPL Financial Advisor 1200 Fourth Avenue North Birmingham, AL Mobile Office Jason Fuller LPL Financial Representative 1050 Montlimar Drive Mobile, AL Office Fax jason.fuller@lpl.com rusj@amfirst.org Securities offered through LPL Financial, Member FINRA/SIPC. Insurance products offered through LPL Financial or its licensed affiliates. Located at America's First Federal CU and America's First Financial are not registered brokers/dealers nor affiliates of LPL Financial. MKT MKT Tracking # Tracking #641565

3 From the President s Desk Bill Connor President and CEO Welcome to the Fall edition of Credit Lines. I hope you have had an enjoyable summer and look forward as much as I do to the cooler weather ahead. I want to share with you some exciting news about the credit union industry. Recently, credit union membership around the country topped the 100 million mark. Today, more consumers than ever are recognizing the value of credit union membership and are choosing to do business with a credit union. Consequently, credit unions are responding by providing an ever-widening array of products and services, consistently better value, and a level of personal service unmatched in the banking world. Locally, membership in Alabama credit unions has never been higher - now 1.8 million Alabamians enjoy the credit union difference. We are proud to be a part of the credit union industry and pledge to work hard every day to deliver the products, service, and value that America s First members expect and deserve. Speaking of working hard, our lending continues at a record pace - up 18% over this time last year. To date, we have approved over 12,000 loans totaling $250 million for cars, boats, homes, college tuition, and hosts of other purposes. Membership, deposits and capital continue to grow as well. The credit union is fiscally sound and well positioned for continued growth. We look forward to finishing the year strong. This time of year includes our annual fundraising drive which we are calling our Community First Campaign. As a community chartered credit union, we recognize the importance of being a good corporate citizen. The fundraising efforts surrounding this campaign are directed at local charities or non-profits that have direct impact on the communities we serve. This year, we ve chosen the March of Dimes-Alabama Chapter, the Cystic Fibrosis Foundation of Alabama and The Community Food Banks of Central Alabama and the Bay Area (Mobile) as recipients of funds collected during the campaign. As a hands-on part of the campaign, a number of America s First staff members will be using their community volunteer day to pack food boxes at the Community Food Bank. The remainder of this newsletter contains information on our 1st Class Student Program, our Member Appreciation Days and more details on the Community First campaign. We also include helpful articles on retirement, identity theft, and the benefits of using estatements. Thank you for your trust in the credit union system and for supporting America s First with your business. We re 100 million strong and growing! FEDERALLY INSURED BY NCUA Summary Financial Statement August 31, 2014 (unaudited) Loans $ 751,052,123 Investments 524,752,891 Other Assets 62,204,727 Total Assets $1,338,009,741 Deposits $1,185,119,640 Other Liabilities 13,097,678 Member Equity 139,792,423 Total Liabilities $1,338,009,741 Summary Income Statement YTD August 31, 2014 (unaudited) Operating Income $ 33,675,190 Operating Expenses 22,269,629 Income from Operations $ 11,405,561 Loan Losses $ 926,002 Dividends & Interest 4,061,210 Net Income $ 6,418,349 Activity Report YTD August 31, 2014 New Members 10,180 Total Members 128,203 New Checking Accounts 7,296 New Loans 12,317 New Benefit Partners 117 Total Benefit Partners 1,506 Community Events 503 America s First Federal Credit Union s participation with any enterprise is not an endorsement of that enterprise, but an attempt to provide a service to its members and has no responsibility for business transactions between the enterprise and members of America s First Federal Credit Union. Rates and services described herein are periodically changed or deleted. Member savings are federally insured up to $250,000 by the National Credit Union Administration, an agency of the federal government and additionally insured up to $250,000 by Excess Share Insurance. Individual Retirement Accounts are federally insured up to an additional $250,000 by the National Credit Union Administration and additionally insured up to $250,000 by Excess Share Insurance. NMLSR #

4 Protect Yourself from Cybercrime Download the latest software versions. Updates often fix security flaws. If you have outof-date software, you re vulnerable. Create strong passwords. Mix numbers, letters - upper and lower case - and special characters, and make your password at least eight characters long. Use different passwords for different sites and services, or consider using a secure password manager to help keep track of them. Question everything. An claiming you just won an ipad may grab your eye, but its intent likely is to scam you and your wallet. And don t count on all online scams containing grammar and spelling mistakes as a tipoff. Back it up - now. Some online attacks do irreparable damage. Save yourself a lot of pain with a simple and regular backup procedure. Secure your mobile device. You may have secured your PC, only to put vulnerable data on a mobile device lacking any security checks at all. Android mobile phones are targeted with an increasing amount of malicious code. Many iphone users still don t use a PIN to lock their screens. AMERICA S FIRST - Security Introducing: The Member Security Center! Each year over 8 Million people are victims of Identity Theft in the United States. Statistics even show that the odds of becoming a victim of Identity Theft are greater than having a heart attack or being involved in a car accident. That s why America s First is happy to announce our newest service which will aid in protecting our members from becoming victims of Identity Theft. The Member Security Center is a new service that provides members with Identity Theft Protection and restoration should you become a victim. The Member Security Center offers various levels of protection at very affordable prices so you are able to choose what is right for you and your family. Basic Member Protection Package $1.95 per month Basic Member Protection Plan subscribers receive the following services: Internet Surveillance Report - which monitors over 600,000 websites, chatrooms and social media sites to ensure that your personal information is not being traded on the Internet. Subscribers receive an alert if their personal information is compromised. Using this proactive approach could prevent Identity Theft in the first place. Identity Restoration assists subscribers in restoring their identity if it is compromised. Gold Member Protection Package - $3.95 per month Gold Membership Protection Plan subscribers receive the following services: Internet Surveillance Report and Identity Restoration Sex Offender Report Change of Address Report Social Security Trace Report Restoration / Lost Wallet Insurance - $1M, $0 Deductible Platinum Membership Protection Package - $12.95 per month Platinum Membership Protection Plan subscribers receive our full identity theft protection coverage. This package is all inclusive of the Basic and Gold Packages with the following additional features: Credit File Authentication (1-time for Credit products) Single Bureau Credit Report 1-Bureau Score Court/Criminal Report Pay Day Loan Report For more details about these packages and to enroll in one of these plans, please visit our website at amfirst.org and click on the Member Security Center banner. 4

5 AMERICA S FIRST - Scholarship Program First Class Student Scholarship Program Popular Scholarship Program Continues for ! America s First is once again partnering with ABC 33/40 to recognize thirty of the best and brightest students in Central Alabama through the First Class Student program. This program highlights students that not only make good grades but those who choose to make a positive difference in their schools and in their communities as well. These students will be featured on ABC 33/40 for 30 weeks during the school year. Additionally, America s First will award three of the thirty students a $5,000 scholarship. Students must be nominated for the program by their school principal or counselor. To learn more about the America s First First Class Student program, visit the ABC 33/40 website and search for First Class Student. Sign up for estatements and Get $5! With paperless statements, you can view your statements online, receive faster delivery and reduce the risk of mail fraud. Plus, you ll receive a $5 deposit to your share (savings) account after you sign up! estatements save paper and are a fast, safe, and easy way to retrieve your statement each month. estatements look exactly the same as your paper statement and are accessed securely through online banking. estatments save paper and eliminate waiting for the postal service. To begin receiving estatements: - Go to amfirst.org - Log in to Online Account Manager - Select the Statement and Documents tab - Select View Statement and follow the steps to enroll - Receive a $5 deposit to your share account* - Bill Pay is free with estatements** We currently offer the option to receive your statement free of charge as an estatement or paper statement. However, due to increasing costs to print and mail paper statements, it may become necessary to implement a small processing fee for paper statements in the future. So we encourage you to sign up for estatements today to receive your $5 deposit and begin enjoying all of the benefits of estatements. *$5 will be deposited to your share account the month after estatement registration is complete. **Bill Pay available to qualifying members only. Certain restrictions apply. TruStage INSURANCE PRODUCTS INSURANCE BUILT FOR CREDIT UNION MEMBERS LIKE YOU Exclusively for credit union members TruStage insurance products are only available to credit union members. Your membership means competitive rates, helpful guidance without sales pressure and quality products trusted by your credit union. Regardless of your budget, we can help make sure the protection you need makes sense. It s all part of smart planning and caring about the aspirations and achievements of those who matter most. Call us, we ll help you understand all of your options so you can choose the one that is best for you and your family. Life and AD&D Auto & Home Visit us at TruStage.com DTCG TruStage Insurance products and programs are made available through TruStage Insurance Agency, LLC. Life insurance and AD&D insurance are issued by CMFG Life Insurance Company. Auto and Home Insurance Program are issued by leading insurance companies. The insurance offered is not a deposit, and is not federally insured, sold or guaranteed by your credit union. 5

6 Join now and receive a free members-only gift. Learn more at VISIT US ONLINE. Scan the smart tag with your phone to read the full education impact statement. Get the free mobile app at / gettag.mobi OUR MISSION Friends of Birmingham Botanical Gardens promotes public knowledge and appreciation of plants, gardens and the environment and receives, raises and administers resources for these purposes. OUR VISION The vision of Birmingham Botanical Gardens is to be one of the nation s preeminent botanical gardens. Birmingham Botanical Gardens has been an America s First Benefit Partner since 2011 Last year, more than 44,500 children and adults benefited from educational programs at Birmingham Botanical Gardens. * * based on the 2013/2014 academic year. Over 11,000 were schoolchildren that experienced free hands-on science curriculum-based field trips. bbgardens.org/education looking back growing forward

7 AMERICA S FIRST - Community First Community First Campaign Fundraisers will benefit March of Dimes, Cystic Fibrosis, and Community Food Bank of Central Alabama The 2014 AFFCU Community First Campaign kicked off on August 4th. This year s campaign benefits March of Dimes, Cystic Fibrosis Foundation, and Community Food Bank of Central Alabama. Amid many individual branch and department fundraisers, the entire credit union began selling sheets, Boston butts, and boxed lunches with the proceeds to be shared between the three nonprofit organizations. Branches also asked for and received many donations from our caring members. Along with all the fundraisers, America s First hosted its annual Charity Classic Golf Tournament on September 22 at Oxmoor Valley. The proceeds from this event will be added to the money raised and donated in branches to be sent to these three charities. During August and the first half of September, over $17,000 was raised to send to these organizations. The Community First Campaign ends on September 30th. We appreciate everyone who donated to this campaign! Until next year, thank you for helping us put Community First! Box Lunches With your help, we supported these three worthy organizations: Sheet Sales Corn Hole Tournament Golf Tournament Working at Community Foodbank of Central Alabama 7

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9 AMERICA S FIRST - Preparing for Retirement What to Do When Retirement Sneaks Up on You. Suddenly you may find yourself scrambling to get everything done. There are many details that need to be attended to before you can retire comfortably. Tips to Keep You On Track: Retirement: How Much Do You Need to Save? Do you know how much you can expect from Social Security in retirement or from a pension plan you may have? Do you know how much you need to save to make up the shortfall in your desired retirement income? Gather information about any traditional pension and other retirement plans you have. Request a benefit summary plan, including when and how you ll receive your payments. The Social Security Administration suspended mailing out their annual statements in For an estimate of your future Social Security benefit, visit ssa.gov/myaccount/ to set up your account. Then estimate your retirement expenses. In general, you ll need about 70% to 80% of preretirement income. But these traditional formulas may leave you short - due to longer life expectancies, active retirement lifestyles, higher medical expenses, long-term-care costs, and higher property taxes. If anything, overestimate for unexpected spending and factor in annual cost-of-living increases between now and the time you retire, as well as throughout retirement. Give Yourself Time - For instance, to sign up for Medicare, part B takes a minimum of five weeks for enrollment, and if you don t sign up in time you could end up paying as much as $800 for a month of COBRA until Medicare kicks in. Consider the Intangibles - There are personal and family characteristics that contribute to or impede successful planning. As to roles, note how the process works if it s a single individual or a couple. If a couple, who s in charge? Are there other family considerations - children, blended family, extended family responsibilities? Identify your strengths and weaknesses, and make the process work with what each person brings to it. Get the Right Advisor - Get to know the values and style that a particular advisor offers, and see how well they mesh with your needs. Are your risk tolerances seriously different? A good financial advisor is a third party that helps you make rational, practical decisions. Choosing a financial advisor that you and your spouse both relate to will liberate you to enjoy your retirement time in other ways. Credit Card Do s and Don ts - Don t spend time worrying about credit card debt. Credit cards have become an expensive solution to the challenges of a fixed income, lagging investments, and rising medical and living expenses.to help stay clear of credit card debt, here are some tips: DO pay off your credit card debt before you retire and no longer have a steady paycheck. DO pay for essentials such as rent or mortgage, food, utilities, transportation, and prescriptions before sending money to credit card companies. DON T pay off a big credit card bill by pulling money out of a tax-deferred retirement account. You may have to pay taxes on the withdrawal, which could turn a $15,000 debt into a $20,000 expense. DON T buy big-ticket gifts for the kids and grandkids until you re debt-free. DON T wait until your finances are out of control before you seek help. Desperation makes you vulnerable to home-equity scams and predatory lending practices. Copyright Credit Union National Association Inc. Information subject to change without notice. 9

10 AMERICA S FIRST - Mortgage News What New Home Buyers Need to Know Buying a house is an exciting time for you. A little scary, as well, but your allies at America s First have your back. We can help you minimize anxiety by being prepared. Here are some of the things you should consider: Know your credit report Go to and get your credit report from all three of the reporting agencies; you get one free report every 12 months from each. Here s how much difference your credit score makes, if you qualify: EXAMPLE - On a $150, year fixedrate (3.85% annual percentage rate) mortgage, with an excellent score of 760 or higher, your monthly payment would be $703 and you d pay $103,033 in total interest. But a credit score of 620 would cost $846 a month (5.4% APR) and add up $154,407 in total interest payments.* Know what other documents will be needed Knowing in advance what will be necessary to verify the information on your application will help the process move smoothly. Under new federal laws, all lenders are required to verify your employment or other sources of income, other assets you may have and your total debts. The most common documents requested will be copies of your W-2 forms, federal tax returns, paystubs, bank or brokerage account statements, and statements with current balances of any outstanding debts such as car loans, credit cards, mortgage loans or student loans. Before you apply, make sure that you have these documents in your possession or in a safe place where they can be easily retrieved. Know what you can afford To find out what you can afford, lenders will review your income, job stability, down payment amount and source, and your existing debt levels. Also when considering a potential house payment, don t forget to include calculations for escrow accounts for your property taxes, homeowners insurance or other mortgage related obligations that will increase the monthly payment. Once your new mortgage payment is calculated, your total monthly debt ratio which is the amount of your total monthly obligations including the new mortgage loan divided by your monthly income should not exceed 43% of your monthly gross income. Although lenders will allow you to have a monthly debt ratio of up to 43% of your monthly gross income, think in terms of the amount per month that you can really afford and maintain your current lifestyle. In addition to your monthly mortgage payment, make sure that you have enough each month for savings, childcare, utilities, vacations, entertainment and other monthly obligations that are important to you. Know your savings status Depending on the mortgage product, your down payment may be 5% to 20% down on a conventional home loan - or $7,500 to $30,000 on a $150,000 house. In addition to a down payment, be prepared for these expenses: Closing costs for title search, appraisal fee, loan origination fee, and more Utility hook-up charges Prepayment of taxes, interest, and property insurance Moving expenses Don t forget to plan for moving expenses and also whether you will need new paint, window coverings, appliances, and other basics to make your new place move-in ready. An America s First lender can help you calculate what you need and how much you should keep on hand for extra expenses that might arise after you buy a house. Call or visit our Mortgage Center at amfirst.org to learn more. 10 *Rates used are for illustrative purposes only and do not necessarily reflect current rates.

11 CALENDAR OF EVENTS Employees Work in the Community Ben Teske was named to the Board of Directors of the March of Dimes. Jimese Harkley was named to the Board of Directors of Safe House, Shelby County. Employees of America s First have completed over 200 hours of volunteer service with The Community Food Bank of Central Alabama. America s First Employee News Retired America s First employees recently gathered for lunch at The Club and to swap stories and catch up on happenings with each other. It was an enjoyable time for all. Southern Womens Show - Oct. 2-5, 2014 At the BJCC Moody October Fest - Oct. 4, 2014 At the Park Uncorked on the Green - Oct. 11, 2014 Ross Bridge Kevin Morris - Lending a Hand in His Community Kevin Morris, Vice President of Consumer Lending at America s First Federal Credit Union, was recently appointed to the Shelby County School Board of Education. Kevin, a product of Shelby County Schools, has a vested interest in Shelby County with three children currently attending schools in the Shelby County System. Kevin will bring equal parts of talent and passion to his new position. It is my goal to ensure that the children of our community have the best educational foundation available, says Morris. At America s First, it is our goal to not only be a financial institution in our community, but also a partner in progress. This is an exciting opportunity for Kevin and certainly speaks to one of his other passions, besides lending, which is his commitment to education and serving his community, says Bill Connor, President and CEO of America s First. We continue to look for opportunities to plug into service in our local communities. Please join America s First in congratulating and encouraging Kevin Morris on this new endeavor. Calhoun Co. Chamber Member Appreciation Day - Oct. 17, 2014 Calhoun Co. Chamber Office Out of Darkness Walk - Suicide Prevention Nov. 2, Heardmont Park Greater Shelby Co. Chamber of Commerce Clay Shoot - Nov. 6, 2014 Selwood Farms CLOSED Nov. 11, 2014 Veterans Day All America s First locations Blow Away 5K - Benefitting Cystic Fibrosis Nov. 15, 2014 Trussville Mall CLOSED Nov. 27 & 28, 2014 Thanksgiving Holidays All America s First locations CLOSED Dec. 25, 2014 Christmas All America s First locations 11

12 America s First Federal Credit Union contact us at or Oxford Member Appreciation Days This past summer, members of the America s First staff visited each of our 18 branches for Member Appreciation Days. At each branch, members could register for a $50 gift card given away that day, plus they received special promotional items and a treat of their choice. We want to thank Dreamcakes, Bluebell Ice Cream and Repicci s Italian Ice and Gelato for making our Member Appreciation Days really sweet! Be sure to look for the schedule next year and visit your branch during Member Appreciation Days. Members registered to win $50 gift card. America s First debit and ATM card holders now have free access to ATMs in any Alabama location of Walgreens. 41CL Leeds Gardendale Talladega