MERGER FAQs. Who is Your Neighbourhood Credit Union merging with? Who is Community First Credit Union?

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1 MERGER FAQs As a member and an owner of Your Neighbourhood Credit Union (YNCU), you have the right to vote on the proposed amalgamation with Community First Credit Union (CFCU). To assist you in understanding more about the proposed merger, we have compiled a list of frequently asked questions for you to become familiar with before the Special General Meeting planned for January 12, We encourage you to carefully review all of this information, and if you have additional questions or comments, please contact your branch or the CEO at TalktoKerry@yncu.com.. This is a very exciting time at Your Neighbourhood Credit Union, and we want you to be part of it. Please plan on attending the Special General Meeting planned for Tuesday January 12, 2016, at the Holiday Inn, Kitchener, 30 Fairway Road South, Kitchener, starting at 7:00 p.m. Registration begins at 6:15 p.m. Who is Your Neighbourhood Credit Union merging with? The Boards of Directors of Community First Credit Union and Your Neighbourhood Credit Union have resolved to combine the two organizations into one, through legal amalgamation, in accordance with the terms and conditions outlined in the Letter of Intent dated October 16, Who is Community First Credit Union? Community First Credit Union was formed in December 1948 when 20 people came together to provide financial opportunity to their community of fellow steel workers. More than half a century has passed since this visionary group built the company s foundation on guiding principles. These principles established the organization s culture and propelled Community First Credit Union into the forward-thinking, full-service credit union it is today. As the vision and membership base expanded, a need to change the organization s name occurred. From serving Algoma Steel workers and their families as the Algoma Steel Workers Credit Union in 1948; to serving the entire Algoma district as ASCU Community Credit Union in 1981; to serving the Province of Ontario as Community First Credit Union in 2005; to merging with Timmins Regional Credit Union and serving the Province of Ontario as Community First Credit Union Limited in 2006.

2 Community First Credit Union is deeply rooted in Sault Ste. Marie and Timmins and currently represents approximately 14,000 members, across 3 strategically located branches and offers a full range of products and services. With over $480 million in assets and 77 staff and management employees, Community First Credit Union continues to aspire to be a leader in delivering financial solutions focused on providing members and communities with opportunities for financial success. For more information on Community First Credit Union please visit Why has Your Neighbourhood entered into an agreement to amalgamate with Community First Credit Union? There is so much that aligns between our respective organizations and communities that makes this agreement a natural step. We share the principles of building relationships with members that enrich their lives and their communities. Working together as equals in pursuit of greater achievements is the expected result of this partnership. As partners, our goals are to: Provide flexible and innovative products and services to our members; Enhance career opportunities for our staff; and Increase awareness and engagement within our communities. What will be the size of the combined entity? Once merged, the new Your Neighbourhood Credit Union will: Be the 6 th largest credit union in Ontario Be the largest credit union in Northern Ontario Offer 21 locations across Ontario Employ 246 people Serve approximately 58,000 Members Hold approximately $1.5 billion in assets under administration Will branches be closed as a result of the amalgamation? There will be no branch closures as a result of the merger. In fact, members of Your Neighbourhood Credit Union will be gaining 3 strategically located branches in northern Ontario (two in Sault Ste. Marie and one in Timmins). Each branch will continue to represent the members and communities they currently represent, but now members will have additional access to branch and ATM locations wherever they live, work or go to school.

3 What will happen to my local branch staff? There will be no job loss as a direct result of the merger. In fact, as part of a larger organization our employees will have opportunities to further grow and develop. We want our members to continue to benefit from the same friendly banking and smart advice they have become accustomed to. How will this amalgamation benefit members? Community First and YNCU s values are rooted in treating members and employees with integrity and respect. We are committed to providing exceptional member service, while maintaining the safety and security of our members assets and information. The credit union believes in operating from a position of financial strength and discipline, in order to achieve controlled growth and sustained profitability for the benefit of our members. Key amalgamation benefits include but are not limited to: Similar core values and beliefs Support of the cooperative movement; ability to build our collective profile and impact Strengthened long-term viability and success Opportunity for geographic expansion More products, services and branches to better serve member needs Ability to compete with larger financial institutions while maintaining local presence Will the Credit Union s name change? Understanding the uniqueness of the communities we serve as a combined organization, it is important to us to maintain our individual identities. The new credit union will continue to operate as Your Neighbourhood Credit Union Limited (operating credit union) and Community First (a division of Your Neighbourhood), representing more than just an amalgamation but a true partnership, combining the strengths of both brands to create one united organization. Who will be the CEO of the newly amalgamated Credit Union? Your Neighbourhood Credit Union and Community First (a division of Your Neighbourhood Credit Union) will continue to be led by the existing Your Neighbourhood CEO, Kerry Hadad. Kerry is a highly energetic, passionate and committed leader with reputable business acumen. With solid roots in the Credit Union system and a strategic vision to continue the successful growth of the co-operative movement, Kerry is focused on providing exceptional member experiences, financial stability and profitability. Kerry believes in giving back through various community initiatives and organizations.

4 Community First s President and CEO, Brent Lamming, will assume the role of Senior Vice President, Strategy, of the amalgamated organization, and President of the Community First division. Why did you choose to merge with Community First Credit Union? YNCU Board and Senior Management have a great deal of respect for Community First Credit Union. They have a strong balance sheet and have developed a market presence within their communities that we will be able to build on together. Their management and staff are very professional and they are located in a market area that is poised for growth and expansion. What about other mergers or expansions? We remain committed to seeking out like-minded organizations that will help us to grow and provide even better service to even more Ontarians. It is not our plan to get larger simply for the sake of being big. Our goal is to be the best in any region where we do business, while remaining true to our credit union histories and philosophies. The merged credit union will not be bank-like, but simply a larger, better-run, still member-focused credit union. What happens to the Board of Directors after the merger? The newly merged Credit Union will have its own Board, consisting of six of the existing Community First Credit Union members, and seven members of the Your Neighbourhood Credit Union Board of Directors. As terms expire, individual directors may choose to run again for the Credit Union Board, just as any Credit Union member is entitled to run today. How will the needs of members be represented? Both Credit Unions are committed to quality member service and believe in local decisionmaking. The bylaws of the new credit union will provide for representation from all geographic regions it represents. The voices of all credit union members will be heard before, during and after this proposed amalgamation. When will the amalgamation take place? Membership meetings of both credit unions will be held, in accordance with the required legislation, to provide an opportunity for members to vote in support of the amalgamation. Now that we have the required approvals from our regulators, the YNCU membership meeting will be held January 12, 2016, and the CFCU meeting will be held January 25, If approved by both memberships, the amalgamation will take effect on April 1, How do I provide my support for the amalgamation? There are two groups of YNCU shareholders: (1) all YNCU Members who hold membership shares, and (2) Class B Investment Shareholders.

5 For the proposed merger to pass, each group of Your Neighbourhood Credit Union shareholders must approve the amalgamation resolution at the Special General Meeting (SGM) by at least two-thirds of those casting votes. Thirty (30) members must attend, in person, to achieve quorum. There are no proxies allowed for membership shares. At least two (2) Class B Investment Shareholders must attend, in person, representing at least 20% of shares outstanding, to achieve quorum. Proxies are allowed for Class B Investment Shares. Members who hold Class B Investment Shares will receive a package in the mail. This will include information about additional voting privileges and a Form of Proxy. Class B Investment Shareholders who are unable to attend the Special General Meeting may cast their vote by way of proxy. The completed Form of Proxy must be returned by 5:00 p.m. on Monday January 11, For members who are Corporations, Associations and Partnerships: Pursuant to section 35 of the Credit Unions and Caisses Populaires Act, 1994, corporations, unincorporated associations, or partnerships registered under the Business Names Act or a predecessor thereof, shall vote by proxy. The delegate must provide at registration a letter duly executed by the signing authorities of the corporation, unincorporated association or partnership, stating that the delegate has been appointed by the authorized officers to vote by proxy on any matter at the membership meeting. What happens to the member shares I currently have at Your Neighbourhood Credit Union? What about my investment shares? Very little will change. The share requirement for each member aged 18 years and older will be one (1) share at $5.00 each, to reflect the current share price of Community First Credit Union. This means each YNCU shareholder with a $10.00 share will be refunded $5.00. If you are a holder of Your Neighbourhood Credit Union Class B Investment Shares, this investment continues and all commitments will be honoured. What will change as a result of the Amalgamation? Economies of scale mean that products and rates will continue to be very competitively priced. A larger membership base means that our costs are spread over a greater number of people. This increases efficiency and effectiveness - which means more value for our members. After the merger, you will have access to 21 retail branches and thousands of ATMs across Northern and Southwestern Ontario, and across Canada. As both organizations are already members of the Exchange Network, CFCU /YNCU

6 members can use each other s ATMs as if they were using their home branch s machine. As both credit unions operate on the same banking system, there will be no major conversion as you may have experienced in the past. However, at a point in the future, we will need to harmonize our separate systems into one. With the integration of the banking systems, we ll do a full review of the products and services of both credit unions. We will take the best of both to provide the optimal product offering for all members. This may mean some changes and improvements, or the introduction of new products. Training and member service will be deepened, not just maintained. High quality financial advice will be available in every branch, and employees will continue to receive ongoing training to capably manage your banking relationship. What won t change? Our branches will remain. The people you see every day in our branches will still be there to greet you and serve you. Your existing deposit or lending contracts will be honoured as is. Any Class B Investment Shares you own will remain in place. Local autonomy and accountability will remain branches will continue to make decisions that are best for their members in their markets. You ll still use Interac, Plus, Acculink and Exchange Network banking machine networks and debit card services. 24-hour online, mobile and telephone banking will continue. Members will continue to receive timely and relevant information on their accounts, new products and our role in the community. Who should I contact if I have any questions? Should you have any further questions please feel free to contact your Branch Manager, or you may the CEO of YNCU at TalktoKerry@yncu.com.