CreditLines

OFFICIAL NEWSLETTER OF

AMERICA’S FIRST FEDERAL CREDIT UNION

ATM Safety Tips Pg 2

President’s Letter Pg 3

Help Create a Tax-Free Legacy Pg 4

Story Four Pg 4

Story Five Pg 5

Go DirectSwitch to Electronic Payments - Pg 4

Student Loansat America’s First Federal Credit Union - Pg 5

A $5.6 Billion Benefitto Members - Pg 8

CREDITLINES

FEDERALLY INSURED BY NCUA

Winter2013

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YEAR-END STRATEGIES FOR FINANCIAL SUCCESSYear-end is a great time to reflect on what has happened, and look to the year ahead—financially as well as personally. You should capitalize on events that occurred over the year and put your finances on firm footing for next year.

I can make sure your investment plan is up-to-date and that you are on track toward your goals.

Call today for more information or to schedule a consultation.

Not Credit Union GuaranteedNot NCUA Insured May Lose Value

MKT-06071-0410 Tracking #642108

America's First Financial Located at America's First Federal Credit Union Russell W. Jordan, CFP®, CFS® Financial Advisor, LPL Financial 1200 Fourth Avenue North Birmingham, AL 35203 (205) 320-4035 Office (205) 320-4015 Fax (205) 320-4035 Office [email protected]

Securities offered through LPL Financial, member FINRA/SIPC. Insurance products offered through LPL Financial or its licensed affiliates. America's First Federal Credit Union and America's First Financial: not registered broker/dealer(s) nor affiliate(s) of LPL Financial.

Mobile OfficeJason Fuller

1050 Montlimar DriveMobile, AL 36609

251-342-2328 Office251-342-8679 Fax

[email protected]

As 2012 comes to a close, we have weathered another year of challenges in the financial services in-dustry. However, I’m happy to report that America’s First has met those chal-lenges and returned posi-tive growth and earnings!

Continued low interest rates along with a slowly

recovering economy meant that we saw more loan demand in 2012 than the previous year. Total production across all loan products will surpass $235 mil-lion this year, a nearly 25% increase over 2011. Lending is key to the financial viability of our credit union since it drives the majority of our revenue and allows us to pay highly compet-itive rates and charge less fees for services. We hope you will con-

tinue to look to America’s First for all your loan needs, whether they be auto, boat, mortgage or credit card.

We continued to op-erate the credit union in a very efficient manner in 2012 as operating ex-penses grew less than ½ of 1% during the year. Loan losses were also

down significantly from 2011. The combination of loan growth, operational efficiency and lower loan losses allowed us to retain a very strong capital posi-tion and a healthy bottom line. You can feel confident that America’s First is safe, strong and secure.

As we move into the New Year, we hope you will continue to make Ameri-ca’s First your first choice for the financial products and services you need. Whether you are a saver, a borrower, or both, your business strengthens the credit union which, in turn, benefits all the members.

Happy Holidays and we look forward to serving you in 2013.

From the President’s Desk

Bill ConnorPresident and CEO

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.

FEDERALLY INSURED BY NCUA

Summary Financial StatementOctober 31, 2012

(unaudited)

Loans $ 694,935,376Investments 494,663,601Other Assets 58,513,559

Total Assets $1,248,112,536

Deposits $1,117,361,343Other Liabilities 4,796,053Member Equity 125,995,140

Total Liabilities $1,248,112,536

Operating Income $ 43,404,633Operating Expenses 26,933,416

Income fromOperations $ 16,471,217

Loan Losses $ 1,128,198Dividends & Interest 7,631,266

Net Income $ 7,711,753

Summary Income StatementYTD October 31, 2012

(unaudited)

Activity ReportYTD October 31, 2012

New Members 11,750Total Members 118,378

New Checking Accts. 8,162New Loans 12,023

New Benefit Partners 59Total Benefit Partners 1,310

Community Events 642

1200 Fourth Avenue NorthBirmingham, AL 35203205-320-4035 Office205-320-4015 [email protected]

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Make-A-Wish AlabamaSafeHouse of Shelby CountyGlenwoodBojangle’s RestaurantsWildlife Management & RelocationBaptist Health SystemInfinity Insurance Co.Hoover Chamber of CommerceThe Tutwiler HotelRed Mountain ParkAlabama Grocers Assoc.Industrial Health CouncilFloors To GoShelby County ReporterMauserARC Alabama, LLC280 LivingChick fil A, OxfordGreater B’ham Humane SocietyWestminster School at Oak Mtn.Tellini’s ItalianoSubwayAllstate Insurance Co.City of MidfieldCity of TarrantChildren’s Medical GoupProAssurance CorporationCity of PinsonMercedes Benz of MobileCity of AlabasterWescoSims Bait Manufacturing Co. City Auto Sales-BessemerWarren Averett LLCPleasant View Baptist Church

The U.S. Department of the Treasury requires you to switch to electronic payments by March 1, 2013.

Federal Benefit Paymentsare Going Electronic

Important change: The U.S. Department of the Trea-sury will pay all federal benefit and non-tax pay-ments electronically, rather than by paper check. Anyone applying for federal benefits, must choose an electronic payment method at the time they apply for the benefit, while those already receiving paper checks must switch by March 1, 2013.

If you are applying for federal benefits, be ready to choose direct deposit at the time you apply for the ben-efit. For direct deposit, you’ll need to know your:

•Account type: checking or savings•Account number•Financial institution’s routing transit number - number for America’s First is 262083881

If you currently receive federal benefit checks, you must switch to an electronic payment option by March 1, 2013. Don’t delay – switch now to direct deposit to get your money a safer, more re-liable way immediately and avoid the last-minute rush to sign up before the deadline!

Sign Up Today – It’s Quick and Easy!

To sign up for direct deposit:

•Visit your local America’s First Branch.•Go to www.GoDirect.org.•Call the Treasury Depart- ment’s toll-free Go Direct campaign helpline at 1-800-333-1795.

Remember to have the following on hand:

•Checking or savings account number•12-digit federal benefit check number•Amount of most recent benefit check

America’s First Federal Credit Union knows that many students will need additional funding to achieve their dream of a college education. In order to best serve our commu-nity, America’s First joined with other credit unions across the country to offer the Student Choice private education financing solution. Credit Union Student Choice was founded because the nation’s leading credit unions recognized that there was a significant need for a better pri-vate student loan option. Student Choice’s networked business model give credit unions like America’s First the ability to offer private student loans that deliver real member value with minimum risk. The owners of Student Choice are 14 of the largest credit unions in the county along with Callahan & Associates.

The America’s First Student Choice program is set up with zero origination or prepayment fees, ex-tremely low interest rates, full defer-ment and flexible repayment options. It helps students achieve their dream of higher education without the high-er price tag often associated with traditional private student loans and for-profit lenders.

Recent reports of students over-burdened with loan debt have some borrowers concerned about private student lending practices. We are happy to report that America’s First and Credit Union Student Choice does not participate in any of the tox-ic or predatory lending activities. It is our philosophy to encourage students to follow the “Free Cheap Gap” rule. Students should pursue all the free and cheap money they can before

taking out a private loan. They should look for scholarships and grants first, and then exhaust all their options for federal student aid. That means fill-ing out the FAFSA early to have the best chance at financial aid. If they still have significant need, then a pri-vate student loan may be necessary to fill the funding gap, and our job is to help them evaluate their options and make an informed decision. By following this simple rule, students can graduate with the least amount of debt possible.

One of the best resources to learn more about how to finance higher education is still the high school guidance offices and the financial aid office at your college. They have a wealth of information to help. You can also check out amfirst.studen-tchoice.org for more information, helpful hints and free calculators to help research and compare their op-tions for paying for college.

Remember, America’s First Fed-eral Credit Union’s goal is not just to help you fund a college education for yourself or a family member, but to become your financial partner for life. Visit us online at amfirst.org or call 205-320-4000 or 1-800-633-8431 to find out more about our full-range of products designed to meet your fi-nancial needs.

*Available to qualifying members only. Certain restrictions apply.

Student Loans at America’s First

Bill ConnorPresident and CEO

Students should pursue all the free and cheap money they can before taking out a private loan. They should look for scholarships and grants first, and then exhaust all their options for federal student aid.

IMPORTANT NOTICE

Source: U.S. Department of the Treasury, Financial Management Service

The Go Direct® campaign is sponsored by the U.S. Department and Federal Re-serve Banks. Go Direct® is a registered service mark, and the Go DirectSM logo is a service mark, of the U.S. Department of the Treasury, Financial Management Service (used with permission).

America’s First - In the Community!

One of 6 blood drivessponsored by America’s First

Walk in Her Shoes, benefit-ting Shelby Safe House

5K Run for Cornerstone Schools

Motorcycle/classic car fund raiser for King’s Home.

Below are a few of the companies that have recently become Benefit Part-ners with America’s First. We offer our Benefit Partners and their employees im-portant services in-cluding financial ed-ucation workshops that can be sched-uled at your work-place. Becoming an America’s First Ben-efit Partner is simple and free. Call us at: 205-320-4054 or 1-800-633-8431. Join over 1,300 com-panies now enjoying the benefits of Amer-ica’s First.

BENEFIT PARTNERS

Bill ConnorPresident and CEO

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CALENDAR OF EVENTS

Birmingham’s Biggest Blood Drive December 27, 28, 29 Galleria

CLOSEDJanuary 1, 2013 forNew Year’s DayAll America’s First locations

Red Nose RunJanuary 12, 2013 - 7:00 A.M. SoHo in Homewood

Homewood Chamber LuncheonJanuary 15 - Homewood Library

CLOSEDJanuary 21, 2013 - Martin Luther King, Jr. Day All America’s First locations

CLOSEDFebruary 18, 2013 Presidents’ DayAll America’s First locations

America’s First Federal Credit Union raised more than $26,500 for diabetes research. Monies were raised through the annual golf tour-nament, participation in the annual Birmingham Walk to Cure Diabetes, as well as through the sale of paper sneakers in the branches to help raise awareness for type 1 diabetes and collect dona-tions for diabetes research. This is the first year that

America’s First Federal Credit Union has partnered with JDRF Alabama to raise funds for research to put an end to the disease that affects as many as 3 million Americans. JDRF is the leading global organization focused on type 1 diabetes (T1D) research. Driven by passionate, grass-roots volunteers connected to children, adolescents, and adults with this disease, JDRF is the largest charitable sup-

porter of T1D research. The goal of JDRF is to improve the lives of every person affected by T1D by accelerating progress on the most promising opportunities for curing, better treating, and pre-venting T1D.

“We are very grate-ful for the support that America’s First and its employees have shown to JDRF over the last couple of months,” said Executive Director, Au-brey Miller. “This is a

critical year for type 1 diabe-tes research and their dona-tion will make a significant contribution towards curing, treating, and preventing this terrible disease. We look for-ward to continuing this part-nership with them for years to come.”

Thank you to all of the employees and members who donated in our branch-es and supported our charity golf tournament.

The goal of Juvenile Diabetes Research Foundation (JDRF) is to improve the lives of every person affected by Type 1 Diabetes (T1D)

America’s First Raises MoreThan $26,500 for JDRF Alabama

(From left to right) Sara Hood, Development Manager, JDRF; Sarah Strickland, who has used the services of JDRF; Bill Connor, President and CEO, America’s First

Refer a Friend!Refer a friend to America’s First and when your friend opens a new Savings and Checking Account with eStatements and direct deposit, you’ll receive a $25 Visa® Gift Card and your friend will receive a $50 Visa Gift Card!

For qualifying members only. Certain restrictions apply.

Credit union members benefit from higher levels of service and par-ticipation in the governance of their financial cooperatives. But members also benefit financially to the tune of about $5.6 billion a year - that’s $61 a year per member or $116 a year per member household, according to data from the Credit Union National Association’s economics and statis-tics department.

That’s the sum of the additional fees, loan interest and lower savings return that credit union members would have paid and earned had they conducted all their business with banks instead of credit unions during the twelve months ending June 2012. Those numbers break down this way:

• Lower fees = $1.0 billion

• Lower interest paid on loans = $3.9 billion

• Higher earnings on shares and deposits = $721.7 million

Here’s how America’s First gave back to its members so far in 2012:

• 11,332 credit card holders re- ceived a total of $457,577.14 in cash back

• Kids Club members earned $32,448.00 in honor dollars for their good grades

• Debit card holders redeemed more than 38 million

reward points for gift cards and merchandise

Make sure you’re taking full ad-vantage of all your credit union ben-efits like credit cards that earn cash back and debit cards that earn re-ward points. Visit your local branch or amfirst.org to learn more.

A $5.6 Billion Benefit to Members!