2018 Impact Report. Opportunity comes in many forms.

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1 2018 Impact Report Creating New Opportunities every day Opportunity comes in many forms. Our mission is to enable the underserved, unbanked, and no credit population to build and fulÿll dreams by taking the Peoples "Advantage". PEOPLESADVFCU.ORG (804)

2 LETTER FROM THE CEO Dear Friends, Welcome to the Peoples Advantage Federal Credit Union (PAFCU) Family! Our unique approach allows us to challenge the status quo and provide value to our members by adopting a member mentality when considering product and service development. In keeping true to our mission, to enable the underserved, unbanked, and no credit population to build and fulfill dreams by taking the Peoples Advantage, we are consistently working to offer products and services that provide benefit to our entire membership. PAFCU strongly believes the credit union exists to help people in ways that create opportunities, change lives and help members to reach their highest financial potential. We believe it can be impossible to achieve a prosperous life without opportunity. However, across the nation, millions live on society's margin because they lack basic opportunity structures. These challenges are particularly unbearable in the Tri-City region, where for generations, residents have been entrenched in deep poverty. That's why every day PAFCU works to improve conditions in opportunity deserts. This report highlights the impact of PAFCU's work in In addition to the positive outcomes on lives, we are particularly pleased with the partnerships that contributed to these results. Thank you for your support, which makes our work possible. Together, we are creating a nation where every resident in every community has the opportunity to thrive. Sincerely Patsy Smith Patsy Smith Chief Executive Officer 2

3 Table of OPPORTUNITIES Membership - 4 Home Equity - 12 The Start of Opportunity Opportunities for Improvement Auto Loans - 5 Refer A Friend - 13 The Opportunity of Approval Give the Gift of Opportunity Reliable Rides - 6 Pay Day Certiÿcate - 14 Opportunity in a New Land The Opportunity to Prepare Short-Term Small Loans - 7 Community Involvement - 15 A Healthy Opportunity The Opportunity to Lend a Hand Mortgage Loans - 8 Summary - 16 The Opportunity to Make Dreams Come True CDFI Certiÿcation - 17 Financial Counseling - 9 The Opportunity to Learn Checking Accounts - 10 Endless Opportunities Fresh Start Accounts - 11 The Opportunity for a Second Chance 3

4 Membership: The start of opportunity As a community credit union, we serve the coolest people (that's you) who live, work, worship, attend school, volunteer, and other legal entities and businesses located in: Y NT CO U CITY OF Petersburg, Colonial Heights, Chesterÿeld, & West Broad 300,000+ ATMS CITY OF RICHMOND 4 Locations CITY OF HOPEWELL CITY OF PETERSBURG Access your money everywhere with CU24 ATMs 9,256 Members Increasing in membership every day $2,692,086 in loans to the local community 4

5 AUTO LOANS: The opportunity OF APPROVAL They are awesome! They helped me with a car loan with great rates and wonderful customer service when other lenders said no! I would recommend them to anyone! -Melissa Licari Example: AMOUNT - $16,000 TERM - 60 mo. 36% 18% 2.49% Payment: $578 $407 $284 Interest Paid: $18,688 $8,396 $1,033 Total: $34,688 $22,320 $17,033 $14,625,639 Saved in Interest $17,392, Financed $315 Average Payment 58% Had Low-to-Moderate Income *Based on 36% for 60 month term from competitors to an average of 10% APR with us 5

6 RELIABLE RIDES: OPPORTUNITY IN A NEW LAND New as of July 2017 Example: AMOUNT - $16,000 TERM - 60 mo. Dealership Credit Unions RR Program Through our partnership with Enterprise, we can provide a ordable vehicles with a 14% interest rate. Reliable rides is a national award-winning program that o ers a training course to provide credit counseling and vehicle maintenance. Interest Rate: 22% 18% 14% Payment: $442 $407 $372 $104,671 Interest Paid: $10,520 $8,396 $6,350 Total: $26,520 $24,396 $22,350 Saved in Interest $144, $ % Financed Average Payment Had Low-to-Moderate Income *Based on 36% for 60 month term from competitors to an average of 14% APR with us 6

7 SHORT-TERM SMall LOANS: A HEALTHY OPPORTUNITY STSL Short-Term Small Loans are our alternative to payday loans. Members will not be stuck paying high interest rates. Short-Term Small Loans do involve a few requirements. Example: AMOUNT - $1,000 TERM - 6 mo. Payday Lenders Short-Term Small Loan Interest Rate: 264% 28% Payment: $316 $181 Interest Paid: $896 $83 Total Repay: $1,896 $1,083 $868,964 Saved in Interest $633,550 Financed $97.16 Average Payment 49% Had Low-to-Moderate Income *Based on 400% over a 6 month term from our competitors compared to 28% APR with us 7

8 Mortgage loans: the opportunity to make dreams come true Purchase of a new home may be the biggest ÿnancial decision of a person s life. We understand this and want to help our members navigate the mortgage process. We are willing to help every step of the way to make the process as easy as possible for you. $2,692,086 worth of mortgages FUNDED in

9 FINANCIAL Coaching: THE OPPORTUNITY TO LEARN Every member is educated from the moment they start their membership. 3,178 free credit analysis sessions 20 New home buyers who attended our home buyers seminar 9

10 Checking Accounts: endless opportunities How would you like to earn free gift cards throughout the year for using your debit card? All of our Checking Accounts come with Rewards Debit Cards, but that s not all our Checking Accounts have to o er! As a local organization, we at PAFCU value the community we serve; and banking with us comes with the comfort of knowing money goes back into our local community. $71,042 saved in Overdraft fees *As compared to our competitors who, on average, charge $5 more per fee. 10

11 FRESH START Accounts: THE OPPORTUNITY FOR A SECOND CHANCE Every person deserves a fresh start, and we are excited you have chosen us! The Fresh Start Checking is designed for members who have experienced a ÿnancial hardship in the past. Our goal is to provide members the convenience of a checking account with minimal fees. 577 Accounts outstanding 11

12 Home Equity OPPORTUNITies FOR IMPROVEMENT $1.5 MILLION IN DEBT CONSOLIDATION & HOME IMPROVEMENT LOANS USING HOME EQUITY 12

13 Refer A Friend GIVE THE GIFT OF OPPORTUNITY Refer a friend to PAFCU, and get up to $100 for you and the person you send to see us! $37,300 PAID OUT TO MEMBERS AND THEIR FRIENDS 13

14 PAY DAY CERTIFICATES: THE OPPORTUNITY TO PREPARE $47,757 We want your tax money to last you all year. Members can purchase 3-, 6-, 9-, and 12-month certiÿcates. With a low $500 requirement, this is a great way to repay debt or rebuild credit. PAID IN DIVIDENDS $191 ON AVERAGE PER CERTIFICATE TAX $$$$ 14

15 COMMUNITY INVOLVEMENT THE OPPORTUNITY TO LEND A HAND At PAFCU, we value giving back to our local community in numerous ways. For instance, we were Closed for a cause on Columbus day to help our friends at the Petersburg Breakfast Rotary and FOLAR - Friends of the Lower Appomattox River, clean up Pocahontas Island HOURS COMMUNITY SERVICE ACTIVITIES 15

16 $47,594,994 LOANS OUTSTANDING $21,432,772 LOANS BOOKED 479 members increased their credit score from loans booked in 2018 alone 900 Auto loans $17,392, PERSONAL loans $4,830, MORTGAGE LOANS $2,692,086 16

17 We are now cdfi certified by the U.S. Department of the Treasury Petersburg VA, November 13, Peoples Advantage Federal Credit Union (PAFCU) announces its CDFI certiÿcation awarded by the U.S. Department of the Treasury. With this certiÿcation, PAFCU will now have access to ÿnancial grants from the CDFI Fund to fund programs and initiatives which will profoundly impact the surrounding communities. Other CDFI beneÿts include partnership opportunities with banks that are seeking Bank Enterprise Awards, access to New Market Tax Credits, and the enhanced ability to raise funds from foundations, corporations and state/local governments. CDFIs are mission-driven ÿnancial institutions. PAFCU became CDFI certiÿed by continuously providing ÿnancial services to meet the needs of economically challenged individuals within their communities. This certiÿcation a ords PAFCU the opportunity to take the next step in their mission to change lives by providing ÿnancial services and education to over one million people in the tri-cities area. For more information about our 15 CDFI certification, please visit us on the web at: 17