A Partnership Opportunity For The Members of Clearview Federal Credit Union

Transcription

1 A Partnership Opportunity For The Members of Clearview Federal Credit Union &

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3 This booklet has been prepared to help you reach a decision on the proposed spin-off of a select group of Clearview Federal Credit Union members to Piedmont Advantage Credit Union. We urge you to read all the material contained in this booklet before making your decision.

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5 Table of Contents A Message From The Chairman of the Board of Directors Clearview Federal Credit Union... Page 4 A Message From The Chairman of the Board of Directors Piedmont Advantage Credit Union... Page 5 The Spin-Off Plan Questions and Answers...Pages 6-7 Financial Reports Clearview Federal Credit Union and Piedmont Advantage Credit Union as of March 31, Page 8 Results of Operations Clearview Federal Credit Union and Piedmont Advantage Credit Union as of March 31, Page 9 Piedmont Advantage Credit Union Locations and Services...Pages Branches and ATMs...Pages Convenience... Page 14 Piedmont Advantage Services... Page 15 Electronic Services... Page 16 Checking Account Services... Page 17 Savings Account Services...Pages Loan Services...Pages Visa Credit Cards... Page 22 Special Services... Page 22 Insurance Benefits and Services... Page 23 Notice of Special Meeting of the Members of Clearview Federal Credit Union...Pages Ballot for Spin-Off Proposal... Page 27 Boards of Directors... Page 29

6 Donald S. Billings Chairman of the Board of Directors Clearview Federal Credit Union On November 13, 1953, Clearview Federal Credit Union, at that time known as Allegheny Airlines Federal Credit Union, received its federal charter. Guided by a group of farseeing volunteers and the overall support of the sponsor, a progressive growth pattern emerged. During the course of the next 60 years, we completed several successful mergers further strengthening the solid financial foundation of our Credit Union. In September 2004, we made two significant changes to continue the growth and security of our Credit Union. One of the changes was to our name. As most of you know, Clearview Federal Credit Union was formerly US Airways Federal Credit Union. In addition to changing our name, we also converted to a community charter, which allowed us to offer financial services to any individual who lives, works, worships, volunteers or attends school in the Southwestern Pennsylvania community. When our community charter was granted, federal regulation prevented us from being able to expand our membership in the Charlotte area. Over the past nine years, we have maintained our Charlotte branch, but with growth limitations placed on us by the National Credit Union Administration, we have realized we will be unable to maintain our Charlotte branch indefinitely. When Piedmont Advantage Credit Union approached us about the idea of a spin-off, we realized this solution would allow our Charlotte members much more branch access than we would be able to provide. As we continue to find ways to best serve our members, the opportunity to spin-off our Charlotte branch to Piedmont Advantage Credit Union was presented. Through this spin-off, our members will have access to a total of 10 Piedmont Advantage Credit Union branches in the Eden, Charlotte, Kenansville, Mooresville and Winston-Salem areas. These Piedmont Advantage Credit Union branches will offer very similar products and services to our members. In addition, the spin-off will provide the opportunity for our existing Charlotte branch to grow under Piedmont Advantage Credit Union and welcome even more members from surrounding communities. As a result, we recommend that you fully review this information and vote to approve the spin-off. We are sad to lose a portion of members from our Clearview family but are positive that they will be welcomed warmly into the Piedmont Advantage Credit Union family and will experience a continued high level of service. As Chairman of the Board of Directors, I encourage you to vote in favor of a partnership between Piedmont Advantage Credit Union and Clearview Federal Credit Union to be able to continue to receive the benefits of credit union membership in a branch environment. Warm regards, Donald S. Billings Chairman, Board of Directors Clearview Federal Credit Union 4

7 Jim Taylor Chairman of the Board of Directors Piedmont Advantage Credit Union On behalf of Piedmont Advantage Credit Union, I would like to personally ask you to vote in favor of Piedmont Advantage Credit Union s new partnership with Clearview Federal Credit Union. This partnership can be accomplished through a spin-off of Clearview s Charlotte branch, and we are very enthusiastic about the future of this relationship. The Boards of Directors from both organizations pursued this opportunity with the common goal of creating one financial institution benefitting both memberships by providing quality products that are built upon the lives of the member owners. Piedmont Advantage s Board of Directors is committed to the membership and has clearly defined the mission, vision and core value with the ultimate goal of enhancing the lives of our members. Piedmont Advantage Credit Union has a 64 year history serving the original charter of Piedmont Airlines plus expanding to over 100 companies serving 42,000 members in over 7,000 zip codes. Piedmont Advantage is a North Carolina-based credit union with three Charlotte locations and ten branches in the state. In addition, Piedmont Advantage members have access to 90 NC branches of the Shared Branch Service Center Network; more than 5,000 Credit Union Service Center locations; more than 30,000 Co-Op ATMs; and Call Center availability from 8:00 a.m. to 8:00 p.m. EST. Our goal is to continue to build valuable relationships and provide the type of quality financial products and services that you have come to expect. Piedmont Advantage Credit Union is well capitalized at 12.87% ensuring the safety and soundness for our member-owners. Credit union membership offers many benefits, and we at Piedmont Advantage believe that financial well-being enhances the lives of our members and adds value to our communities. In addition to the conveniences and amenities you currently enjoy, Piedmont Advantage offers its members a wide range of innovative financial products, as well as a staff dedicated to providing exemplary service and caring solutions. Results from a survey of US Airways employees show that 87% of the respondents agree that they get good overall value from Piedmont Advantage Credit Union and 70% of respondents use Piedmont Advantage as their primary financial institution. For additional information on all available member products and services, I encourage you to visit our website, or give us a call at Piedmont Advantage Credit Union deeply values your membership, and we look forward to serving you in the future. Sincerely, Jim Taylor Chairman, Board of Directors Piedmont Advantage Credit Union 5

8 Member Questions and Answers 1. What is a spin-off? A spin-off is the conversion of a select group of members of one Credit Union into the membership of another Credit Union. 2. Why is this partnership being called a spin-off? This partnership, if approved, will convert a selected group of members from Clearview Federal Credit Union into the membership of Piedmont Advantage Credit Union. 3. What is the reason for the spin-off between Clearview Federal Credit Union and Piedmont Advantage Credit Union? After much consideration, the Clearview Board of Directors felt a spin-off with Piedmont Advantage Credit Union was in the best interest of our members and employees due to growth limitations placed on our Charlotte branch by the National Credit Union Administration. With access to 10 branch locations and 12 additional ATMs, this change will allow Clearview members the opportunity to more fully utilize the services of a credit union. 4. Why did I receive this information, and why am I able to vote? You received this information because you live in an area that would benefit the most from the addition of branch locations near your address; therefore, you would be in the select group of members to be spun-off. All members in this select group have been given an opportunity to vote for a chance to join Piedmont Advantage Credit Union. 5. Why was I selected to be a part of Piedmont Advantage Credit Union? You are in a position to benefit greatly from the proposed partnership. You may have added convenience because you work at the Charlotte Airport or you may live very close to a Piedmont Advantage facility. You were chosen specifically because of the branch convenience you would receive from this new arrangement. 6. Why should I vote yes? Clearview has continued to maintain our Charlotte branch; however, due to growth limitations placed on us by the National Credit Union Administration, we have realized we will be unable to maintain our Charlotte branch indefinitely. A spin-off with Piedmont Advantage Credit Union will provide members with easy access to branches plus products and services similar to those available with Clearview. In addition, this partnership will allow Piedmont Advantage to grow the existing Charlotte branch and welcome more members from surrounding communities. As a result, we recommend that you fully review this information and vote to approve the spin-off. 7. Why is Clearview called a Federal Credit Union and Piedmont advantage called a Credit Union? Clearview is a Federally chartered Credit Union while Piedmont Advantage is a State chartered Credit Union; however, both institutions are federally insured by the NCUA and backed by the full faith and credit of the United States Government. 8. What will be the effective date? The effective date has been set for February 28,

9 Member Questions and Answers 9. Will Par Value be adjusted? Yes Piedmont Advantage Credit Union s par value is $5.00 while Clearview s par value is $ This minimum amount must be met in order to keep current accounts active. 10. Will there be any changes to insurance of member accounts? On March 1, 2014, the following changes will be made to your coverages: Credit Disability and Credit Life Piedmont Advantage Credit Union will convert Clearview s members with this insurance to Piedmont Advantage Credit Union s Credit insurance contract. This will require a new contract to be signed. Members will be contacted to make the necessary changes. Debt Protection Clearview Federal Credit Union members will be able to opt in to Piedmont Advantage Credit Union s Insurance program since Piedmont Advantage does not offer Debt Protection. Guaranteed Auto Protection (GAP) Any Clearview members with GAP coverage will continue to be insured on a phase out basis since the premium has been paid up front. Insurance claims will reference that the insurance was taken under Clearview Federal Credit Union and indicate in the comments that the loan is now with Piedmont Advantage Credit Union. Going forward on new loans, Piedmont Advantage will offer members GAP coverage through their program. 11. What changes will occur on March 1, 2014? Clearview members living in the spin-off area will become members of Piedmont Advantage Credit Union and be entitled to the use of Piedmont Advantage Credit Union s products and services. These members will no longer be members of Clearview Federal Credit Union. All current certificate and loan rates will carry over to Piedmont Advantage and not be changed until renewal or refinance. Any new loan rates and fees will match Piedmont Advantage Credit Union s rates and fees on products and services that are alike. 12. Will the current Clearview Branch be Maintained? Yes the Clearview branch currently located at 2830 Boyer Street, Charlotte, NC will continue to operate as a Piedmont Advantage Credit Union branch with new hours of operation from 8:00 a.m. until 5:00 p.m. Also, most of the employees you are used to seeing at your branch will continue to work and provide excellent member service. 13. How will products and services be affected? Piedmont Advantage Credit Union offers products and services that are very similar to the products and services that are offered by Clearview. For more information on all of the products and services offered by Piedmont Advantage Credit Union please review the information beginning on page 15 of this book. 7

10 Financial Reports Clearview Federal Credit Union and Piedmont Advantage Credit Union Statement Of Financial Condition As Of March 31, 2013 ASSETS Cash and Cash Equivalents Corporate Central Funds Certificates of Deposit Investments Held-to-Maturity Investments Available-for-Sale TOTAL CASH AND INVESTMENTS Loans, net Accrued Interest Receivable Property and Equipment, net Restricted Deposits Prepaid and Deferred Expenses Intangible Assets, net Other Assets TOTAL LIABILITIES AND MEMBERS EQUITY Notes Payable Accounts Payable Dividends Payable Accured Expenses and Other Liabilities TOTAL LIABILITIES Members Savings Regular Reserve Undivided Dividends Accumulated Other Comprehensive Income TOTAL MEMBERS EQUITY TOTAL Clearview Federal Credit Union $9,225, ,882,075 5,182,000 9,812, ,181, ,283, ,484,715 2,451,926 24,873,162 10,339,570 4,027,482 2,170,206 10,362,799 $813,993,361 $ - 802,149 11,981 5,225,343 6,039, ,093,065 12,375,199 70,572,728 1,912,896 84,860,823 $813,993,361 Piedmont Advantage Credit Union $10,801,268 14,193, ,128 2,162,986 38,670,847 66,125, ,705, ,169 6,128, ,673-6,055,597 $237,857,634 $ ,034,731 1,035, ,571,046 5,561,337 24,203, ,448 30,251,457 $237,857,634 8

11 Results of Operations Clearview Federal Credit Union and Piedmont Advantage Credit Union Statement Of Income As Of March 31, 2013 OPERATING INCOME Interest on Loans Income from Investments Miscellaneous Operating Income TOTAL OPERATING INCOME OPERATING EXPENSES Compensation Office Operations Employee Benefits Provision for Loan Losses Loan Servicing Office Occupancy Professional and Outside Services Education and Promotion Miscellaneous Operating TOTAL OPERATING EXPENSES INCOME (LOSS) FROM OPERATIONS NON-OPERATING GAINS (LOSSES) INCOME (LOSS) BEFORE INTEREST EXPENSE INTEREST EXPENSE Dividends Borrowed Funds TOTAL INTEREST EXPENSE NET INCOME (LOSS) FROM OPERATIONS Corporate Stabilization NET INCOME (LOSS) AFTER CORP STABILIZATION Clearview Federal Credit Union $5,221,835 1,629,542 2,546,131 9,397,508 3,122,175 1,649, , , , , , , ,045 8,056,151 1,341,357 54,841 1,396, , ,998 $870,200 (225,000) $645,200 Piedmont Advantage Credit Union $1,980, ,835 1,340,400 3,499,020 1,025,543 1,082, , , , ,039 78,355 96, ,225 3,335, ,934 53, , , ,018 $65,621 - $65,621 9

12 Piedmont Advantage Credit Union Main Office Liberty Branch Piedmont Advantage Credit Union s Headquarters is located at: 3810 N. Liberty Street Winston-Salem, NC Phone: (336) or Fax: (336) info@pacu.com 1 ATM The office is staffed by professional Credit Union employees whose main goal is to serve the members. The President/CEO and staff are responsible for implementing the policies established by the Board of Directors and for the daily operation of the Credit Union. Main Office Hours Monday - Friday 8:00 a.m. - 5:00 p.m. Phone Center Hours Monday - Friday 8:00 a.m. - 8:00 p.m. 10

13 Piedmont Advantage Credit Union Branch Locations In addition to the branch and main office on Liberty Street in Winston-Salem, NC., Piedmont Advantage Credit Union currently maintains 9 branches in North Carolina. They are located in: CHARLOTTE ATRIUM Phone: (704) * Fax: (704) Charlotte-Douglas International Airport Lobby Hours Main Terminal, Second Floor Monday - Friday 8:00 a.m. - 5:00 p.m. Charlotte, NC CHARLOTTE YORKMONT 4700 Yorkmont Road Charlotte, NC Phone: (704) Fax: (704) ATM Lobby Hours Monday - Friday 8:00 a.m. - 5:00 p.m. If a spin-off is approved, this branch will close and be relocated to Clearview Federal Credit Union s current branch located at 2830 Boyer Street, Charlotte, NC, where operations will continue. EDEN BRANCH 212 E. Kings Highway Eden, NC Phone: (336) Fax: (336) ATM Lobby Hours Monday - Friday 8:00 a.m. - 5:00 p.m. GREENSBORO BRANCH Phone: (336) Fax: (336) A Battleground Avenue Greensboro, NC Monday - Friday Lobby Hours 8:00 a.m. - 5:00 p.m. 11

14 Piedmont Advantage Credit Union KENANSVILLE BRANCH 174 Liberty Square Crossing Kenansville, NC Phone: (910) Fax: (910) Monday - Friday Lobby Hours 8:00 a.m. - 5:00 p.m. MOORESVILLE BRANCH 139 S. Cardigan Way Mooresville, NC Phone: (704) Fax: (704) ATM Lobby Hours Monday - Friday 8:00 a.m. - 5:00 p.m. PAVILIONS BRANCH 676 Hanes Mall Boulevard Winston-Salem, NC Phone: (336) Fax: (336) ATM Lobby Hours Monday - Friday 8:00 a.m. - 5:00 p.m. UNIVERSITY BRANCH 4997 Home Road Winston-Salem, NC Phone: (336) Fax: (336) ATM Lobby Hours Monday - Friday 8:00 a.m. - 5:00 p.m. WILMINGTON BRANCH 3815 Park Avenue Wilmington, NC Phone: (910) * Fax: (910) ATM Lobby Hours Monday - Friday 8:00 a.m. - 5:00 p.m. *The phone number listed for this branch is a direct line to the branch manager or lead teller. 12

15 Piedmont Advantage Credit Union ATM Locations Piedmont Advantage offers convenient access to ATMs located throughout the region and across the nation. Find a Piedmont Advantage ATM near you, or search for a surcharge-free ATM nationwide in the CO-OP Network. Main Office - Liberty Branch 3810 N. Liberty Street Winston-Salem, NC Eden Branch 212 E. Kings Highway Eden, NC Mooresville Branch 139 S. Cardigan Way Mooresville, NC Charlotte - Yorkmont Branch 4700 Yorkmont Road Charlotte, NC Lake Norman Regional Medical Center 171 Fairview Road Mooresville, NC Pavilions Branch 676 Hanes Mall Boulevard Winston-Salem, NC University Branch 4997 Home Road Winston-Salem, NC Limited Access ATMs Available only to Authorized Employees Guilford Mills 1754 N. NC Highway Kenansville, NC US Airways Reservations 799 Hanes Mall Boulevard Winston-Salem, NC Unifi 1032 Unifi Industrial Boulevard Yadkinville, NC US Airways Training Center 4800 Hangar Road Charlotte, NC Miller-Coors 863 E. Meadow Road Eden, NC Surcharge-free ATM locations are also available nationwide and can be located by visiting the Credit Union CO-OP Network website, 13

16 Convenience Shared Branching... Credit Unions have collaborated and created CU Service Centers around the country. CU Service Centers allow members to conduct business as if they were at their local Credit Union branch. By this sharing of facilities, Credit Unions can offer greater convenience for members to access their accounts nationwide. In alignment with Piedmont Advantage Credit Union s Easy wherever you are pledge to our members, we intend to maintain two branch facilities within a five mile radius of the Charlotte Airport. In addition, we offer affiliated branch network locations through the Credit Union Service Center network so that our members can make deposits or withdrawals, cash checks, and make loan payments at various locations nationwide, including over 90 locations in the state of North Carolina. Our call center is open five days a week from 8:00 A.M. to 8:00 P.M. and provides toll-free access for all members. As an additional convenience, we offer the CO-OP ATM Network with 32,000+ nonsurcharge ATMs free of charge for our members. Please note: Not all CU Service Centers have ATMs. Those that do are not necessarily surcharge-free. You could be charged a fee to use their ATM. Please check with each individual CU Service Center to verify whether or not their ATM is surcharge-free. 14

17 Piedmont Advantage Services Membership... Membership in Piedmont Advantage Credit Union is open to people who live, work, worship, or attend school in Bladen, Brunswick, Columbus, Duplin, Forsyth, Guilford, Iredell, Mecklenburg, New Hanover, Pender, or Rockingham Counties. Membership is also open to the employees (and their family members) of Sponsor and Select Employee Groups including US Airways. You may also join Piedmont Advantage Credit Union with a $10.00 donation to the USO of North Carolina. Family members are defined as spouses, children, grandchildren, parents, brothers and sisters and their spouses, and anyone who lives in the same household and is related by blood, adoption or marriage. Retirees and their families from eligible groups also qualify for membership. Those eligible for membership are encouraged to use all the services available at Piedmont Advantage Credit Union, which operates as a full service financial institution. Lifetime Membership... If you relocate, terminate or retire from employment in the described field of membership, you and your family can retain your membership at Piedmont Advantage Credit Union and continue to take advantage of all financial services. Direct Deposit... With Direct Deposit, payments are automatically deposited to your account, even if you are traveling or on vacation. Payroll, Social Security or other recurring checks can be electronically deposited into your account. All members are eligible to participate in Direct Deposit, provided their employer participates in the Automated Clearing House (ACH). Pre-Authorized Debit/Transfer... Pre-Authorized Debit/Transfers are available to members interested in making loan payments or systematic deposits to a Piedmont Advantage Credit Union savings account from another financial institution. Once initiated, Piedmont Advantage Credit Union will debit member accounts at other financial institutions and transfer funds as requested. 15

18 Electronic Services Online Banking... Piedmont Advantage Credit Union s online banking is a free online service that allows you to effectively manage your accounts and services 24 hours a day, 7 days a week from any computer with internet access. E-Statements... E-statements are available to all Piedmont Advantage Credit Union members and allow access to monthly statements online in lieu of a paper statement. PACUTEL... PACUTEL is Piedmont Advantage Credit Union s automated response system. Members can dial directly into Piedmont Advantage Credit Union s computer system 24 hours a day, 7 days a week to access information or transact business on your accounts at no charge using a toll-free number. A variety of information can be accessed by using PACUTEL, including: financial transactions, rate inquiries, balance inquires and much more. Website... Visit for detailed information on all of Piedmont Advantage Credit Union s products and services, branch and ATM locations, online banking transactions, current loan and savings rates and much more. 16

19 Checking Account Services Checking Accounts... Piedmont Advantage Credit Union offers a variety of checking accounts designed to meet member needs. From basic checking to interest checking, all checking account options feature little or no fees, time-saving services and many other convenient features. Debit Card... A debit card is the perfect companion to any checking account because it looks like a credit card but works like a check. Purchases made with your Piedmont Advantage Credit Union debit card do not carry a fee, nor are you limited to a certain number of purchases per month. Purchases are deducted from your checking account. The Piedmont Advantage Credit Union debit card allows access to your checking account 24 hours a day, 7 days a week at any STAR or PLUS system ATMs worldwide. You can also use your card at national and international ATMs displaying the VISA logo. Surcharge-Free ATM Network... As a member of Piedmont Advantage Credit Union, you benefit from thousands of surcharge-free ATMs nationwide. You can avoid paying ATM fees by using machines that are part of our surcharge-free ATM network. 17

20 Savings Account Services Piedmont Advantage Credit Union offers a variety of savings and investment options, including: Regular Share Accounts Personal Select Accounts IRAs Money Market Accounts Certificates including Save to Win Christmas Club Savings account statements are issued quarterly unless ATM transactions are made during the month. If ATM transactions are made during the month, you will receive a monthly statement. Deposits can be made in person, by mail, wire transfer or through convenient payroll deduction or direct deposit. Regular Share Account... This account requires an initial $5.00 opening deposit. A minimum balance of $100 must be maintained in order to earn interest. Money Market Account... A Money Market Account is designed for members looking for a higher yield account, while maintaining convenience and flexibility. This account requires a minimum deposit of $1,000. The interest rate is determined in advance, earned daily and paid monthly. This account has no fees and is included in your quarterly statement. Payments can be made via payroll deduction or direct deposit. Personal Select Account... The Personal Select Account is designed with a variety of flexible savings options in mind and can be named to suit a specific purpose; for example Education, Taxes, Medical, Vacation or Emergencies. A $5.00 minimum deposit is required to open this account, and a minimum balance of $100 must be maintained in order to earn interest. Deposits to this account can be made in person, by mail, wire transfer, payroll deduction or direct deposit. 18

21 Christmas Club... Piedmont Advantage Credit Union s Christmas Club account helps members save year-round for holiday expenses. This account requires an initial $5.00 opening deposit, and by saving just $10 per week, participating members can accumulate over $520 for holiday expenses. Deposits can be made via payroll deduction or direct deposit, by mail, wire transfer or in person at any Piedmont Advantage Credit Union branch. The entire Christmas Club account balance is transferred into each participating member s checking or savings account, including dividends, by October 15th of each year. This account s interest rate is determined annually and set at the beginning of each year. Share Certificates... A Piedmont Advantage Credit Union Certificate is designed to provide flexibility and high rates for investments and is ideal for the member who is more comfortable with a fixed rate of return for a specified period of time. A minimum deposit of $500 is required to open a Certificate and terms range from three months to five years. Save to Win Certificates can be opened with $25. Interest is compounded daily and paid monthly or at maturity by crediting the Certificate to ensure a higher annual yield or to the account of the participating member s choice. Notification is sent when the Certificate reaches maturity. The Certificate will be renewed automatically unless the credit union is advised otherwise within seven days following maturity. Individual Retirement Account (IRA)... Individual retirement accounts provide the opportunity to prepare for retirement and plan for financial security. A Piedmont Advantage Credit Union IRA pays a high rate of return that is earned daily and compounded quarterly to ensure you receive the highest yield possible. Every wage earner, even if they participate in a company pension or profit sharing plan, is allowed to contribute to a Piedmont Advantage Credit Union IRA. For many people, all or a portion of their IRA contributions are tax deferred until withdrawn at retirement. Retired individuals may want to consider rolling over money from a qualified savings plan into an IRA. Deposits are insured up to $250,000 by the National Credit Union Administration separate and apart from other deposits. 19

22 Loan Services Piedmont Advantage Credit Union offers members a better way to borrow by offering a variety of loan types. Borrowing from your credit union offers the advantages of a quick and easy application process with no loan application fees, competitive rates, simple interest, no prepayment penalties and options for payment via payroll deduction or direct deposit. How To Apply For A Loan... Loan applications can be completed at any Piedmont Advantage Credit Union branch, online at or by contacting a Customer Service representative at Types of Loans Mortgage Services... Piedmont Advantage Credit Union offers a comprehensive list of innovative mortgage products and services including land loans, home equity lines, 1st mortgages and fixedrate 2nd mortgages. Home Equity Loans... Piedmont Advantage Credit Union s home equity loan EquityLine lets you access the equity in your home as a powerful cash reserve. An EquityLine gives you a fast, practical and easy way to access money you need for things like remodeling your home, buying a vehicle or paying for college tuition. Members are able to borrow up to 90% of their appraised home value, less any first mortgage balance. Interest rates are usually lower than conventional consumer financing. Piedmont Advantage Credit Union offers our members home owner s insurance options through MEMBERS Financial Network s insurance and investment services. Liberty Mortgage Loan... Piedmont Advantage Credit Union s Liberty Loan offers members the opportunity to pay off their mortgage in 10 years or less with a 3.50% APR non-variable rate. This loan closes in half the time of conventional loans and offers terms of up to 120 months. There are no closing costs or prepayment fees. 20

23 Auto Loans... Piedmont Advantage Credit Union offers competitive rates on loans for new and used vehicles. The amount available to borrow, the length of the loan and the interest rate charged depends on the value and age of the vehicle. Piedmont Advantage Credit Union offers members Automotive Insurance through MEMBERS Financial Network s insurance and investment services. Recreational Vehicle Loans... A Piedmont Advantage Credit Union Recreational Vehicle Loan is secured by a boat, travel trailer, motor home, motorcycle, conversion van, jet ski, snowmobile or ATV that is used for recreational purposes. All other recreational vehicles in the NADA guide qualify as well. General Purpose Loans... General Purpose Loans may be used to purchase items such as major appliances and farm/garden equipment. Piedmont Advantage Credit Union will loan up to 80% of the purchase price and funds can be borrowed for any worthwhile purpose, when secured by a vehicle and/or shares on deposit. Second Chance Loans... Piedmont Advantage Credit Union s Second Chance Loans help members with blemished, limited or no credit history, borrow money and rebuild their credit score. As this loan is repaid with low monthly installment payments, positive payment history will be reported to the credit bureau. Essential Transportation Loan... Piedmont Advantage Credit Union s Essential Transportation Loan helps members with blemished, limited or no credit purchase dependable transportation as a means to get to and from work. Members must put a minimum of $500 cash down and have 6 months of insurance pre-paid or financed with the loan. There is a maximum loan amount of $10,000 with low monthly installment payments and a term of up to 60 months. The vehicle model must be less than 11 years old and have less than 75,000 miles. Payroll deduction, direct deposit or automatic payment options are available for convenient repayment. Credit Builder Loan... The Credit Builder Loan enables members with a less than perfect credit score to establish or reestablish a positive credit rating. Upon approval, the Piedmont Advantage Credit Union places the borrowed funds on hold in the participating member s Regular Share Account while the loan is in repayment. Payment history is reported to the credit bureau to build credit during this time. Once the loan is repaid in full, funds can be withdrawn from the account as needed. Loan amounts of up to $5,000 are available and the interest rate is fixed. Payroll deduction, direct deposit or automatic payment options are available for convenient repayment. 21

24 Visa Credit Cards Visa Cards... Piedmont Advantage Credit Union s VISA program is built around the features of convenience and low cost. Piedmont Advantage s VISA Credit Cards are accepted almost everywhere you shop and travel or when you need extra cash or extra purchasing power. We offer attractive rates, fees, and terms and have a VISA product to fit a variety of needs. Visa Platinum Cards... Piedmont Advantage Credit Union s VISA Platinum card includes low, non-variable rates as low as 6.90% APR, no annual fee and no charge for balance transfers. Our VISA Platinum Rewards Card offers great reward benefits and rates as low as 8.90% non-variable APR. Special Services Visa Prepaid Debit Cards VISA prepaid debit cards can be used wherever VISA debit cards are accepted. VISA prepaid debit cards also offer members the ability to save money instead of paying check-cashing fees, buying money orders or paying for money transfer services. This product is beneficial to travelers, as it is safer to carry than cash. There is no risk of overdraft, and text alerts are available for spending and balance notification purposes. 22

25 Insurance Benefits and Services Piedmont Advantage Credit Union offers a variety of affordable insurance options to help protect you and your family, including: Credit Life and Disability Life insurance Accidental Death and Dismemberment insurance (AD&D) Guaranteed Auto Protection (GAP) Mechanical repair coverage for auto loans Home Warranty plan Piedmont Advantage Credit Union offers members a discount through our relationship with Liberty Mutual Group, including: Homeowners insurance Auto insurance Piedmont Advantage Credit Union s Home Warranty plan is administered by American Home Shield and provides flexible coverage options, 24/7 support and local service providers. Coverage is also fully transferable if you ever decide to sell your home. 23

26 Notice of Special Meeting of the Members of Clearview Federal Credit Union on Proposal to spin-off a portion of members to Piedmont Advantage Credit Union On January 27, 2011, the Board of Directors of your Credit Union approved a proposition to spin-off a portion of Clearview Federal Credit Union members. We invite you to attend a Special Meeting of Clearview Federal Credit Union at the Sheraton Charlotte Airport Hotel, 3315 Scott Futrell Drive, Charlotte, NC 28208, on September 10, 2013, from 6:30 p.m. - 8:00 p.m. Please RSVP to Clearview FCU at (704) or rsvp@clearviewfcu.org. The meeting has two purposes: 1. To consider and act upon a proposal to spin-off a portion of our Credit Union members to Piedmont Advantage Credit Union. 2. To approve the action of the Board of Directors of our Credit Union in authorizing the officers of the Credit Union to carry out the proposed spin-off, subject to member approval. If this spin-off is approved, our Credit Union will transfer all of its impacted assets and liabilities to Piedmont Advantage Credit Union. As a member of our Credit Union, you would become a member of Piedmont Advantage Credit Union. On the effective date of the spin-off, you would receive shares in Piedmont Advantage Credit Union for the shares you own now in Clearview Federal Credit Union. The directors of the participating Credit Unions carefully analyzed the assets and liabilities of the participating Credit Unions and appraised each Credit Union s share values. The appraisal of the share values appears on page 8 of the attached individual and consolidated financial statements of the participating Credit Unions. 24

27 The Board of Directors of the participating Credit Union has concluded that the proposed spin-off is desirable for the following reasons: The Clearview Board of Directors and Management have been approached by the management of Piedmont Advantage Credit Union with the idea of a possible spin-off. A spin-off, if approved by the membership, would ultimately result in our members being absorbed into Piedmont Advantage Credit Union. We have thoroughly investigated Piedmont Advantage Credit Union and have found that their management structure and vision, as well as their products and services, are very similar to ours. Piedmont Advantage Credit Union would provide additional access in North Carolina with 12 ATMs and 10 branch locations. Additionally, they have committed to retaining the branch and employees at our Boyer Street location. We are confident that by making these additional locations available, you would have the opportunity to more fully utilize the services of a credit union and reap the benefits accordingly. We have been experiencing minimal growth in our Charlotte location for a number of years due to federal regulations that limit who is eligible to open an account at Clearview. We have come to the conclusion that we would eventually have to close this location as growth continues to decline. We would prefer to give you the opportunity to vote on a spin-off at this time, rather than one day be faced with a branch closure which would result in you no longer having the ability to transact business in a Clearview Federal Credit Union branch. The main office of the continuing Credit Union for these members will be as follows: Piedmont Advantage Credit Union 3810 North Liberty Street Winston-Salem, NC

28 The branches of the continuing Credit Union for these members will be as follows: (See pages for branch locations.) Piedmont Advantage Credit Union s branches located at the following addresses will continue to operate business as usual: 676 Hanes Mall Boulevard Winston-Salem, NC Charlotte-Douglas International Airport Main Terminal, Second Floor Charlotte, NC Home Road Winston-Salem, NC E. Kings Highway Eden, NC Liberty Square PO Box 554 Kenansville, NC N. Liberty Street Winston-Salem, NC S. Cardigan Way Mooresville, NC A Battleground Avenue Greensboro, NC Park Avenue Wilmington, NC Piedmont Advantage Credit Union s Charlotte-Yorkmont branch located at 4700 Yorkmont Road, Charlotte, NC, will close and be relocated to Clearview Federal Credit Union s current branch located at 2830 Boyer St., Charlotte, NC, where operations will continue. The spin-off must have the approval of a majority of members of Clearview Federal Credit Union who vote on the proposal. Enclosed with this Notice of Special Meeting is a Ballot for Spin-Off Proposal. If you cannot attend the meeting, please complete the ballot and return it to the auditing firm no later than September 10, 2013, using the enclosed postage paid envelope: S.R. Snodgrass, A.C Corporate Drive Suite 400 Wexford, PA To be counted, your ballot must reach us by the date and time announced for the meeting. BY ORDER OF THE BOARD OF DIRECTORS Donald S. Billings, Board Presiding Officer August 8, 2013 Date 26

29 Ballot for Spin-Off Proposal Name of Member: Print Name Account Number: Clearview Federal Credit Union has hired an outside auditing firm to collect all spin-off ballots. In order for your vote to be counted, your ballot must be received by: September 10, If you cannot attend the meeting, please complete this ballot and return it to the auditing firm using the enclosed postage paid envelope and mail to: S.R. Snodgrass, A.C Corporate Drive Suite 400 Wexford, PA I have read the Notice of Special Meeting for the members of Clearview Federal Credit Union. The Meeting will be held on the above date to consider and act upon the spin-off proposal described in the notice. I vote on the proposal as follows (check one box): Approve the proposed spin-off and authorize the Board of Directors to take all necessary action to accomplish the spin-off. Do not approve the proposed spin-off. Signed: Member s Signature Date: 27

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31 BOARD OF DIRECTORS Clearview Federal Credit Union Donald Billings Chairman Mark Palastro Treasurer Robert Farrell Director Brian Notman, Jr. Vice Chairman James Frazier Secretary Doug Montanari Director Victoria Mell Director BOARD OF DIRECTORS Piedmont Advantage Credit Union Jim Taylor Chairman Tom Mekis Secretary Howard Henry Director David Reynolds Director George Price Vice Chairman John Reece Treasurer Ramon Hoots Director Gene Sharp Director 29

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