/Alabama%20value%20of%20membership

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Source: Datatrac, NCUA, and CUNA. (1)Assumes 1.9 credit union members per household.


Recent Comparative Interest Rates for Loan Products Credit Unions vs. Banking Institutions 16.00 13.54

14.00 11.92

12.00

11.24

10.88

10.46 9.90

Rates

10.00 7.76

8.00 6.00

6.93

4.89

4.97

4.57

5.28

4.95 4.42

4.00 1.88

2.00

1.94

2.19

2.19

0.00 Unsecured 60-month new 48-month car (A paper) used car (A loan (A paper) paper)

15-year fixed 30-year fixed Home equity / Credit card - Credit card 5-year classic gold 2nd mtg, 80% rate 1st rate 1st adjustable LTV 0 pts mortgage, 0 mortgage, 0 rate 1st pts pts mortgage, 0 pts Type of Loan Product Credit Unions

Banking Institutions


Recent Comparative Interest Rates for Credit Unions Saving Products Credit Unions vs Banking Institutions 0.98 Retirement (IRA) accounts

1.17 Type of Saving Products

1 Year certificate $10,000 balance

0.79 Money market accounts

0.22

Share draft checking, $5,000 balance

0.30 Regular savings, $1,000 balance

0.00

0.20

0.40

0.60

0.80

1.00

Rates Banking Institutions

Credit Unions

1.20

1.40

1.60


Selected Third Quarter 2010 Credit Union Fees compared to Banking Institutions $2,500

$2,309.00

$2,280.00

$2,000

Dollar Amount

$1,500

$1,000

$500

$25.00

$20.00

$30.00

$35.00

$0

Alabama

Types of Fee Income

Share draft checking, NSF fee

Credit cards, late fee

Area Banks Mortgages, closing costs


Estimated Credit Union Loan Rate Benefits vs. Banking Institutions $60,000,000

$54,803,847 $50,000,000

$40,000,000

$4,671,004 Dollar Amount

$30,000,000

$23,928,075

$20,000,000

$4,200,392

$8,085,337

Types of Loan Products

$10,000,000

$5,457,599 $0 $0

New car loans

Used car loans

Personal unsecured loans

5-year adjustable rate 1st mortgage

15-year fixed 30-year fixed Home equity / Credit cards $604,632 2nd mortgage rate 1st rate 1st loans mortgage mortgage


Alabama Credit Union and Banking Instituion Third Quarter 2010 Average Interest Rates and Fees Loan Products 60-month new car (A paper) 48-month used car (A paper) Unsecured loan (A paper) 5-year adjustable rate 1st mortgage, 0 pts 15-year fixed rate 1st mortgage, 0 pts 30-year fixed rate 1st mortgage, 0 pts Home equity / 2nd mtg, 80% LTV 0 pts Credit card - classic Credit card - gold

Average Rate at Credit Unions (%)

Average Rate at Banks (%)

Rate Difference vs. Banks (%)

4.89 4.97 10.88 4.57 1.88 2.19 4.42 11.24 9.90

6.93 7.76 11.92 4.95 1.94 2.19 5.28 13.54 10.46

-2.05 -2.79 -1.04 -0.38 -0.06 0.00 -0.86 -2.30 -0.56

0.71 0.42 1.37 1.51 1.44

0.30 0.22 0.79 1.17 0.98

0.41 0.21 0.59 0.35 0.47

$25.00 $20.00 $2,280.00

$30.00 $35.00 $2,309.00

-$5.00 -$15.00 -$29.00

Savings Products Regular savings, $1,000 balance Share draft checking, $5,000 balance Money market accounts 1 Year certificate $10,000 balance Retirement (IRA) accounts

Fee Income Share draft checking, NSF fee Credit cards, late fee Mortgages, closing costs Source: Datatrac


Estimated Credit Union Savings Dividend Benefits vs. Banking Institutions $20,000,000

$18,603,782 $18,000,000

$16,000,000

$14,000,000

$12,375,301 Dollar amount

$12,000,000

$10,568,401

$10,000,000

$8,000,000

$6,000,000

$7,099,424

$4,000,000

$2,522,545 $2,000,000

$0 Regular shares

Share draft checking

Money market accounts Types of Saving Products

Certificate accounts

Retirement (IRA) accounts


Estimated Alabama Credit Unions Financial Benefits Third Quarter 2010

Loans

Avg. Balance at

Rate Difference vs. Alabama

Total Financial Benefit to Your

Credit Unions (1)

Banks (%) (2)

Members

New car loans 1,170,077,021 Used car loans 1,967,822,149 Personal unsecured loans 449,135,024 5-year adjustable rate 1st mortgage 1,105,366,299 15-year fixed rate 1st mortgage 930,202,956 30-year fixed rate 1st mortgage 489,742,566 Home equity / 2nd mortgage loans 634,604,497 Credit cards 433,820,915 Interest rebates in period Total CU member benefits arising from lower interest rates on loan products:

-2.05 -2.79 -1.04 -0.38 -0.06 0.00 -0.86 -2.30

$23,928,075 $54,803,847 $4,671,004 $4,200,392 $604,632 $0 $5,457,599 $8,085,337 $99,863 $101,850,749

0.41 0.21 0.59 0.35 0.47

$18,603,782 $2,522,545 $10,568,401 $12,375,301 $7,099,424

Savings Regular shares Share draft checking Money market accounts Certificate accounts Retirement (IRA) accounts

4,537,507,926 1,230,509,706 1,806,564,223 3,587,043,648 1,526,757,897

Bonus dividends in period Total CU member benefit arising from higher interest rates on saving products:

$0 $51,169,453

Fee Income Total CU member benefit arising from fewer/lower fees:

$36,562,724

Total CU member benefit arising from interest rates on loan and savings products and lower fees:

$189,582,926

Total CU member benefit / member: Total CU member benefit / member household:

Source: Datatrac, NCUA, and CUNA (1) Average balance as of September 2010 and September 2009, according to the NCUA call report.; (2) Source for rates and fees: Datatrac;

$108 $206


Alabama Performance Profile Demographic Information Number of branches Total assets ($ mil) Total loans ($ mil) Total surplus funds ($ mil) Total savings ($ mil) Total members (thousands)

Sep-10 414 15,239 7,667 6,905 13,350 1,751

Sep-09 400 14,276 7,747 5,892 12,434 1,788

Growth Rates (Year-to-date) Total assets Total loans Total surplus funds Total savings Total members

5.6 -0.7 13.7 5.7 -0.9

Earnings - Basis Pts. Yield on total assets Dividend/interest cost of assets Fee & other income * Operating expense Loss Provisions Net Income (ROA) after stabilization exp *

423 132 153 319 50 57

469 182 214 333 62 106

Capital adequancy Net worth / assets

11.1

11.3

1.3 0.8 51 3.8

1.3 1.0 55 4.2

57.4 50.3 27.3 45.8

62.3 54.3 29.6 44.1

7.7 46.8 405 7,626 9,353 52,318

8.1 46.9 411 6,954 9,243 50,484

Asset quality Delinquencies / loans Net chargeoffs / average loans Total borrower-bankruptcies Bankruptcies per 1000 members Asset/Liability Management Loans / savings Loans / assets Long-term assets / assets Core deposits/shares & borrowings Productivity Members/potentional members Borrowers/members Members/FTE Average shares/members ($) Average loan balances ($) Salary & Benefits/FTE

% % % % %

9.7 5.5 16.2 10.4 4.2

% % % % %


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