First Mortgages and Refinancing Is now the right time for you?

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1 Keynotes Second Quarter 2012 First Mortgages and Refinancing Is now the right time for you? Mortgage rates are the lowest they have been in years. In June 2012, 30-year fixed mortgage rates averaged about 4.250%, versus 6.750% in June With the lower rates, now is the time for potential house buyers to consider purchasing a new home and owners to investigate the benefits of refinancing. Each one percentage point decrease in mortgage interest rates makes housing more affordable. On a typical $100,000 mortgage, a drop of 1% in the mortgage rate equates to a monthly savings close to $60. For example: The monthly payment for a typical $100,000 mortgage at a fixed 5.25% interest rate on a 30-year loan costs about $553. While the monthly payments on the above-mentioned loan at a fixed 4.25% interest rate only costs $493 a month. This means that you may be able to obtain a large increase in your net disposable income simply by refinancing your existing mortgage. You may also want to look at taking advantage of the lower rates to help you gain equity in your home more quickly. If your current mortgage payment is comfortable and fits within your budget, you may be able to refinance at a lower rate and a shorter term. For example: If you reduce your loan term on a $100,000 mortgage from a 30-year fixed rate of 4.25% to a 15-year fixed rate of 3.50%, you could cut as much as $48,456 dollars in interest charges. Now that s a real savings! So, if you are interested in purchasing a house, or find yourself locked into a higher mortgage rate, want to earn equity in your home more quickly, or save money on finance charges, call Atlanta Postal Credit Union s Real Estate Department today, at (770) or Toll-free at (800) Our mortgage experts can not only help you find an affordable mortgage program that will meet your needs, but they can also prequalify you for a mortgage, so you can start house hunting right away. Delivering exceptional service to U.S. Postal Service employees and their families since 1925.

2 Special Auto Loan Financing Sale If you re looking for a new or pre-owned car, truck, or van, we have great news for you! We ve extended our spring loan rate sale. From now until September 30, 2012, if you finance your new or pre-owned vehicle purchase with APCU, you can enjoy an excellent financing rate that is 1% less than our regular posted vehicle loan rates. This means you can finance a vehicle loan with us at a rate as low as 1.75% APR*! Shop with the confidence you deserve by pre-qualifying for your new or pre-owned vehicle loan with APCU. We can help you figure out how much money you can reasonably afford to spend and how much your payments will be. And, thanks to our auto loan financing sale, owning a new-to-you vehicle has never been more affordable. Have you already purchased a new-to-you vehicle and financed with another financial institution? No problem! You can refinance that vehicle loan with APCU and receive our special, discounted vehicle loan rate, too! Applying is easy! Just call one of our friendly and knowledgeable Loan Service Representatives, 24/7, Toll-free at (800) , or stop by and visit us at any one of our branch locations and get your application started today. Applications are also available online at by clicking on the Minute Money Loan icon. This offer ends September 30, So, if you haven t already taken advantage of our reduced auto loan financing rates, now is the time! Contact Atlanta Postal Credit Union and we ll get your vehicle loan application started right away. * APR Annual Percentage Rate. Loan rate is quoted as an Annual Percentage Rate and is subject to change without notice. Rate example quoted is for a 2008 and newer model year auto with a 48-month repayment period. Additional rates and terms are available. Ask for details. Rates shown are the lowest available for the listed term as of June 30, All loans are subject to approval of credit. Your actual rate is based upon your credit history. APCU is an Equal Opportunity Lender. Vehicle loan rate reduction offer may not be combined with any other offers made by APCU.

3 It s Report Card Bonus Time! A If there s a youngster (between kindergarten age and 18) in your family who is a member of Atlanta Postal Credit Union (APCU) and who has received a great report card from school, we have a special bonus in store for him or her. As part of APCU s Youth Program, we will reward our young members with a special bonus of $1.00, up to a maximum of $10.00, for each A (or excellent grade) he or she earns on his or her end-of-year promotion report card. It s our way of letting your child know that we believe working hard in school is very important to his or her future success. Here s how to get your child s Good Grades Bonus: The child must be the primary member of the account to qualify. Photocopy your child s end of year report card (the report card that indicates the student is being promoted to the next grade level). Write the child s member number on the report card copy. Mail the report card copy to: Marketing Department - Atlanta Postal Credit Union 400 Tradeport Blvd., Ste 401 Atlanta, GA A credit will be posted to your child s account in August for an amount equal to $1.00 for each A (or equivalent) he or she receives in core content areas of study: language arts, health, mathematics, reading (English), science, and social studies. We must receive the report card copy no later than August 15, Report card copies received after this date may not be eligible for a bonus in Please do not send your child s original report card to the credit union. If your youngster is not yet a primary member of the credit union and you want them to participate in this special incentive program, call our Member Service Department and request a New Member Packet. We ll get one in the mail to you right away. Once your child is signed up for membership, he or she will enjoy many fun benefits throughout the year just for saving regularly at Atlanta Postal Credit Union. Introducing Our New And Improved Internet Branch APCU s Internet Branch is getting a new look. We are improving the way you view your information online by providing you greater visibility and better navigation while you continue to have access to all the same financial information you are accustomed to. Visit our home page at to view a video explaining some of the new features. Here s the best part! The new and improved Internet Branch is up and ready for you to use. Just log-on as you usually do.

4 Don DeCinque President/CEO s Message Who Is Your PFI? Three Scholarships Awarded in 2012 Competition We are delighted to announce that the Scholarship Review Panel has selected three members of our Youth Membership Development Program as winners of Atlanta Postal Credit Union s annual Youth Membership Development Scholarship Award. Each of the three winners will receive $1,000 to be used to purchase school supplies, dormitory or housing needs, or to spend in any other manner they desire. Congratulations to our winners! We thank all of our Scholarship applicants for participating in APCU s Scholarship Program. We extend best wishes to one and all as they pursue their college education. Watch the fourth quarter 2012 edition of APCU s newsletter, KeyNotes, and our Web site at for information on the 2013 Youth Membership Development Scholarship competition. The winners are: Tabitha Banks - Lilburn, GA Victoria James - Fayetteville, GA Courtney Knight - Dallas, GA A National Member Survey Report released by the Credit Union National Association research department states that members who choose a credit union as their primary financial institution (PFI) are noticeably more satisfied with virtually every aspect of the servicequality, service charges, and interest rates they receive from their credit union than bank-pfi customers are with their bank. What is a PFI, you might ask. Your PFI is the financial institution you use for just about all of your financial needs. For example, if APCU is your PFI, you have your savings accounts, checking accounts, debit cards, credit cards, auto loans, mortgage loans, certificates, etc. with APCU. You would most likely consider APCU first when you needed a new financial service. And, you might promote the benefits of credit union membership among your family members and your qualified co-workers. As your PFI, APCU saves you money by charging lower interest rates on loans and paying higher interest or dividends on deposit accounts and investments. The credit union also charges you fewer and lower fees, and in the case of some services, no fees at all. So the more you use the credit union, the more you save. The main reason APCU can offer you such great value is that we re a member-owned, not-for-profit cooperative. In fact, credit unions have outshined other financial institutions in every American Banker customer satisfaction survey since We exist to meet members needs, not to make a profit and maximize the wealth of outside shareholders, as banks do. Is APCU your PFI? If not, we invite you to take advantage of all the services the credit union has to offer. From savings accounts to checking accounts, car loans to mortgage loans, and everything in between, APCU has the services you need to help make managing your money easier and more economical. Call our Member Service Department. We d be happy to speak with you about transferring any of your financial services from other providers to APCU.

5 Loan Application Please Print Name: Member #: D.O.B. S.S. # Address: City: County: State: Zip: Home Phone: ( ) Work Phone: ( ) Purpose of Loan: Approx. Term: Amount Requested: Security Offered: You elect the following single credit disability Yes No insurance coverage(s): single credit life Yes No joint credit life Yes No Employer: Address: City: State: Zip: Position: Length of Employment: Income (current): Additional Income: Source: Total Current Annual Income: Debts Lender Balance Payment Mortgage/Rent 2nd Mortgage Auto Auto Total Payment Options (check one): Deduct monthly from Savings Checking Payment date requested: Deduct biweekly from Savings Checking Pay direct by mail or in person Branch Listing MAIN OFFICE 3900 Crown Road Atlanta, GA (404) FAX DECATUR BRANCH 520 W. Ponce DeLeon Avenue PO Box 803 Decatur, GA (404) FAX NORTH METRO BRANCH Real Estate Department Business Lending Department 1605 Boggs Road Duluth, GA (770) FAX NETWORK DISTRIBUTION CENTER BRANCH 1800 James Jackson Pkwy, NW Atlanta, GA (404) FAX IBEW BRANCH 501 Pulliam Street, Suite 350 Atlanta, GA (404) FAX MACON BRANCH VISA Department 515 Mulberry Street, Suite 100 Macon, GA (478) FAX Drive-Up Window Service (this location only) SOUTH DEKALB MALL BRANCH 2801 Candler Road, Suite 81 Decatur, GA Hours of Lobby Operation (this location only) Monday-Friday 9:00 AM - 7:00 PM CONTACT US (404) (800) Hours of Lobby Operation - Monday-Friday 9:00 AM - 4:30 PM Telephone Service - Monday-Friday 8:30 AM - 5:00 PM 24-HOUR LENDING CENTER (800) VISA CARD SERVICES (800) Member Services (800) Lost or stolen card assistance only Web Site: General [email protected] I understand that the credit union will retain this application whether or not it is approved. The credit union is authorized to check my employment history and credit report. Signature: For a mortgage application, call (770) or Toll-free (800)

6 Dividend News APCU paid a quarterly share dividend of.746% with an Annual Percentage Yield of.75% for the second quarter. Dividends are compounded and credited to your account quarterly. Dividends will be computed by applying a periodic rate to the balance in the account for each day of the dividend period. Deposits begin earning dividends on the day of deposit. If you close your share account before dividends are paid, you will not receive the accrued dividends. No dividends are paid on balances below $50.00 except on youth accounts. Board of Directors Moses M. Spence, Chairman Royce L. Jackson, Secretary Katherine S. Brown Donald A. DeCinque David Disharoon Roy L. Matthews J.T. Middlebrooks H. Preston Mulkey Bud Wilkinson Sam B. Dowdy - Director Emeritus Supervisory Committee H. Preston Mulkey, Chairman Robert L. Harris, CPA Herbert W. MacNabb Roy L. Matthews Jabo Patterson Credit Committee Katherine S. Brown, Chairman George Lamar Pat Little J.T. Middlebrooks Roy G. Rainwater Holiday Closing Dates Independence Day Wednesday, July 4, 2012 Labor Day Monday, September 3, 2012 Columbus Day Monday, October 8, 2012 Veterans Day Monday, November 12, 2012 Thanksgiving Day Thursday, November 22, 2012 Christmas Eve Monday, December 24, 2012 Christmas Day Tuesday, December 25, 2012 APCU Statistics (as of May 31, 2012) Assets: $1,999,410,210 Members: 100,399 APCU Loan Rates This information is accurate as of the effective date listed below. The terms may change after that date. Please call us at (800) or (404) for additional information. New and Used Auto Loans 2008 and newer $25,000 and over 2007 and older Other Collateral Loans* $35,000 and over Personal Loans Share or Certificate Secured** 100% of balance on deposit Partially Share Secured*** 75% of balance on deposit 50% of balance on deposit 25% of balance on deposit 75% of balance on deposit 50% of balance on deposit 25% of balance on deposit Rates are current as of May 31, 2012 % Above Term Discount Index 36 mos. 60 mos. 72 mos. 60 mos. 60 mos. 120 mos. 36 mos. 36 mos. 2.00% 36 mos. 1.50% 36 mos. 1.00% 2.00% 1.50% 1.00% * Other Collateral: Motorcycles, Personal Watercraft, Recreational Vehicles, Campers, Boats, Motor-homes, Travel Trailers, and Farm Equipment. ** Share Secured: The APR will be the dividend rate paid on regular shares the previous quarter (Index) plus the percentage shown in the % Above Index column above. If there is an existing balance on the date of the new advance, the existing balance will be added to the new advance and the entire amount will be at the new APR. The rates are subject to change quarterly on the 1st day of January, April, July, and October to reflect any change in the Index. Any increase in the APR will result in more payments of the same amount until what you owe is repaid. ** Certificate Secured: The APR will be the dividend rate being paid on the Certificate offered as security (Index) plus the percentage shown 2.00% Annual Percentage Rate (APR) 2.75%-11.25% 2.75%-11.25% 3.00%-11.50% 3.75%-12.25% 5.00%-13.50% 5.50%-14.00% 6.50%-13.50% 7.00%-14.00% 7.75%-14.75% 8.40%-15.40% 8.90%-16.90% in the % Above Index column above. The Certificate must either be renewed until the advance is completely paid or be rolled over into a share account, at which point the advance will become a Share Secured advance and be subject to those terms. Failure to renew the Certificate or roll it over to a share account will result in default under the Plan. When the Certificate is renewed, the APR will change to reflect the new dividend rate. Any increase in the APR will result in more payments of the same amount until what you owe is repaid. The present APR and daily periodic rate for certificate secured advances will be disclosed on the voucher at the time of the advance. *** Partially Share Secured: The Annual Percentage Rate will be the Personal Loan rate for which the applicant qualifies minus the discount percentage shown under the Discount above. Payment example: Estimated monthly payment on a 36-month loan at 3.99%=$30.00 per $1, borrowed.