Mutually Beneficial Strategic Relationship Business Proposal 2013provided by:

TheAmericanPhilatelicSociety

Overview of Credit Unions

The first credit union was established in 1908 with the idea that members would pool their assets. Those same members could then borrow from the pooled assets at more favorable rates than those charged by traditional banks or savings and loan organizations. The American credit union movement began as a cooperative effort to serve the productive and provident credit needs of individuals of modest means. To promote thrift and credit extension, a meaningful affinity and bond amongst members, manifested by a commonality of a routine interaction, shared and related work experiences, interests, activities, or the maintenance of an otherwise well understood sense of cohesion or identity is essential to the fulfillment of the public mission of credit unions.

In 1934, President Roosevelt signed the Federal Credit Union Act into law authorizing the formation of federally chartered credit unions in all states. The purpose of the federal law was to make credit available and promote thrift through a nationwide system of nonprofit, cooperative credit unions.

Federally insured credit unions offer a safe place for you to save your money, with deposits insured by the NCUSIF. The National Credit Union Share Insurance Fund (NCUSIF) is the federal fund created by Congress in 1970 to insure member’s deposits in federally insured credit unions. On July 22, 2010, the Dodd-Frank Wall Street Reform and Consumer Protection Act was signed into law and it permanently established NCUA’s standard maximum share insurance amount at $250,000.00.

The National Credit Union Administration (NCUA) is the independent federal agency that regulates, charters and supervises federal credit unions. With the backing and full faith and credit of the U.S. Government, NCUA operates and manages the National Credit Union Share Insurance Fund (NCUSIF), insuring the deposits of more than 91 million accounts holders in all federal credit unions and the overwhelming majority of state-chartered credit unions.

USPSFCU extends the insured savings of our members, at no additional expense to the membership, by offering Excess Share Insurance (ESI). This program provides up to an additional $250,000 of insurance once a credit union member’s balance exceeds the coverage provided by NCUSIF, thereby increasing our members insured savings to $500,000.00.

History of USPS FCU

U.S. Postal Service Federal Credit Union was established in 1934 under the

name “Post Office Department Employees Credit Union”. USPS FCU started

with seven postal employees, $35, and a district charter that allowed postal

employees in the District of Columbia to join. In 1964, a Federal Charter

was granted and the credit union became the U.S. Postal Service Federal

Credit Union. At this time, our field of membership was expanded to include

the entire Washington Postal Region-D.C., Maryland, Virginia and West

Virginia. In 1968 USPS FCU was granted a nationwide charter, a privilege

given to few.

In 2013 USPS FCU is proudly serving over 22,000 postal employees across

the country. Our membership, while still dedicated to the employees of the

U.S. Postal Service, also includes members from several select groups. We

currently hold approximately $200 million dollars in assets and although we

have changed over the years to meet the demands of our membership, we

remain true to the “People Helping People” philosophy we were founded

upon 78 years ago.

We are a not-for-profit financial cooperative that continues to promote thrift

and savings amongst employees and family members of USPS.USPS FCU is

part of a long-standing tradition in personal financial management.

USPS FCU Products and Services

As a member of U.S. Postal Service Federal Credit Union, when you open a regular share account, the required account to maintain your membership with the Credit Union, you become an owner. This is an excellent foundation to start your relationship with a solid, established not-for-profit cooperative that has your best financial future as a priority. Once your base share/savings account is opened, all other services also become available to you.

• Savings and Investment Accounts: Regular Share Savings, Share Certificates with varying terms, Money Market Savings and Certificate Accounts, Traditional and Roth IRA’s, IRA certificates, Coverdell Educational Accounts, Club Accounts and Monthly Income Share Certificate Account. We also have Youth Accounts tailored to specific age ranges.

• Checking Accounts: USPS FCU offers three full service checking accounts to meet your needs. Required minimum balances range from $0 to $2000, depending on personal account preferences. Members have the option of electing either of USPS FCU’s interest bearing checking accounts or elect for a no minimum balance, non interest earning account.

• ATM/Visa Check Card: We offer a Visa Check card with generous access to $1000 in cash and $1500 in Point of Sale purchases in each 24 hour period. We offer one of the largest ATM networks in the industry, with access to over 70,000 ATM’s with networks including AllPoint, Cirrus, CU 24/CU Here, Co-Op, The Exchange, Member Access, MasterCard, Visa, American Express and Diners Club. We also offer an ATM card to members without a checking account. There is a zero dollar liability for members.

• CU E-Link/Home Banking: Our home banking systems enables you to manage and view your account information, transfer funds, make a deposit, view tax information and also pay your bills online with our BillPayer service.

• 24/7 Website access: www.uspsfcu.org. Our website offers you direct access to Credit Union products, forms, services and account information.

• QUE Telephone teller: Manage your accounts using any touch-tone phone. Review account transactions, identify checks cleared, verify balances and account histories, transfer funds between sub-accounts and more, all at no cost.

USPS FCU Products and Services (continued)

• Relationship Benefits: In appreciation to those members that utilize USPS FCU for more than just a savings account, we started the Relationship Rewards program. The members qualifying for this program (see the attached sheet outlining the details of the program) receive bonus dividends and loan discounts.

• Free Access to Cash program: This program exempts members from USPS FCU fees for using other institutions’ ATM’s and entitles them to surcharge-free use of over 70,000 machines worldwide.

• Loans: New/Used Vehicles, Recreational Vehicles, First Mortgages, Home Equity loans, Home Equity Line-of-Credit, Personal loans, Education loans, Secured loans, Computer loans, loan refinancing from other institutions and both our Visa Classic and Visa Platinum Credit Cards. Credit Life and Disability Insurance is also available for most loan products. Guaranteed Auto Protection (GAP) is available for most vehicle loans.

• Visa Classic/Platinum/Secured: We will market USPS FCU credit cards in APS direct mail pieces. This card offers a highly competitive rate as low as 8.9% which features a 1.1% cash back rebate or catalog reward program, which includes choices for travel, gift cards, merchandise and more. APS will be rewarded with $25 per credit card opened.

Special Member Discounts and Services

•Medallion Signature Guarantee

•Free financial counseling

•Financial Advisor referrals

•Scholarships

•Discounted Legal Services

•CU Realty

•Group Life and Accidental Death & Dismemberment Insurance

•Free notary services if local to a branch office

APS AND USPS FCU RELATIONSHIP BENEFITS APS Benefits:

An APS and USPS FCU relationship is a win-win strategy for both organizations. This select relationship between USPS FCU and APS is envisioned as a mutual path to growth. Joining either organization by current members would be strictly voluntary. Marketing the opportunity and the rationale for joining would be jointly championed through regular, agreed upon, communication channels.

• Postal employees and members of the APS have a common interest in all things postal. The U.S. Postal Service Federal Credit Union name projects the appeal that many postal enthusiasts seek. Each organization can realize a mutual benefit through a formal relationship.

• By partnering with USPS FCU, you will be increasing the value of APS benefits by offering low cost, quality financial services to your membership.

• USPS FCU will provide an affinity card, branded with American Philatelic Society logo, at no expense to the APS.

• USPS FCU has all the convenient features that make us accessible to members regardless of location. We have an expansive ATM network offering access to over 70,000 ATM machines worldwide. We offer an online deposit capability and phone and home banking access at no charge. USPS FCU joined together with other credit unions, nationwide, in a cooperative effort to bring members financial convenience with shared branching. By using a shared branching location, members can access their account and transact business through a CU Service Centers Network.

• USPS FCU regularly attends or distributes information at numerous events throughout the country, we visit Post Offices and have links to our website, www.uspsfcu.org, on several Union websites in various states. With the permission of these venues we can include APS information along with our packets. USPS FCU has a nationwide field of membership and solicits postal employees nationally, thereby exposing the American Philatelic Society to not only our 22,000 members, but also to thousands of postal employees who may not belong to the Credit Union. We believe through our common bond of interest, we can offer APS exposure to limitless postal employees and Union members. Membership in USPS FCU is convenient and accessible to anyone belonging to the American Philatelic Society, regardless of their location. We currently have members in all 50 states and the District of Columbia and U.S. Territories.

APS AND USPS FCU RELATIONSHIP BENEFITS (continued)

• APS brochures can be prominently displayed in our branch offices.

• We can include an APS link placement on our website which will direct our members to www.stamps.org. Our website will also display a banner ad welcoming APS members.

• USPS FCU mails out a quarterly newsletter that can periodically include information about the American Philatelic Society.

• USPS FCU will offer a $1500 donation to be applied to an APS scholarship.

• USPS FCU may be able to offer our Financial Counselor or Financial Advisor to speak or hold a class at one of the APS events. Some of our USPS FCU Board members or contacts may be of interest to APS for speeches or information on postal history and other postal topics.

• We are willing to pay a $25 fee for any member of APS who opens a credit card through USPS FCU. Once a portfolio is established we can explore other income generating avenues with APS.

• USPS FCU would consider sponsoring or co-sponsoring different APS events or meetings.

• We would like to discuss the Youth section of your website and incorporate ways that USPS FCU can assist with the awareness of this program. USPS FCU is dedicated to the success of our youth and is willing to participate in a united marketing effort to increase interest in this area of education.

USPS FCU Benefits

• A partnership with APS enables us to expand our charter to include the APS members, which in turn will increase our opportunity for growth.

• USPS FCU seeks approval to advertise in your newsletter, attend APS Conventions and set up a vendor booth to further educate APS members regarding Credit Union benefits. We feel this exposure will allow us to expand our member base.

• USPS FCU would like to request a link on the American Philatelic Society website and be granted access to the APS mailing list, which in turn will increase our exposure to your membership.

USPS FCU Executives and Marketing department would like to meet with the APS Board and/or staff to identify the needs of APS and develop strategies to meet the needs of your group. We would like to engage in a dialogue regarding the goals of APS in order to offer and develop these marketing strategies to meet the needs of your group.

USPS FCU takes pride in offering personal and professional member service. APS will be an important organization to our business. We know your members are important to you and they will be important members to us as well. Callers will be acknowledged for their APS status and they will know they are from an identifiable, important organization to USPS FCU. We believe a partnership between the American Philatelic Society and U.S. Postal Service Federal Credit Union would be beneficial for both organizations. We are excited to explore ideas and plans for the future growth of the APS, as well as for USPS FCU.

Board of Directors and Supervisory (Audit) Committee

U.S. Postal Service Federal Credit Union is a member-owned and operated

financial cooperative chartered under federal law. We provide sound financial

support and education for our members through the efforts of our Board of

Directors, Supervisory Committee and professional staff. Each of these groups

perform different functions to ensure the integrity and soundness of USPS FCU.

Credit Unions, unlike many other participants in the financial services market,

are exempt from Federal and most State taxes because they are member-

owned, democratically operated, not-for-profit organizations generally

managed by volunteer Board of Directors. They have the specified mission of

meeting the credit and savings needs of their membership.

Our Board of Directors is comprised of members of the credit union who are

inspired by credit union activities, philosophies and the best interest of the

membership of USPS FCU. They establish loan and savings policies and direct

the affairs of the credit union. They serve on a volunteer basis and are elected

by the membership and Board Members are not paid for their commitment.

USPS FCU Board of Directors

Chairman: Michael E. McCartney

Vice Chairman: Richard E. Gatewood

Secretary/Treasurer/Director of Finance: Thomas Dale, Jr.

Director of Strategic Planning: Gilbert A. Ford, Jr.

Director of Marketing: Charles McCullough, II, Esq.

Director of Human Resources: Ann Trahan

Member: Timothy S. Gavagan

U.S. Postal Service Federal Credit Union’s Supervisory/Audit Committee is responsible for ensuring that the Credit Union’s Board of Directors and Management establish practices and procedures to properly safeguard

members assets. In addition, the Committee is responsible for the annual financial statement audit from a licensed, independent auditor.

In accordance with the Federal Credit Union Act, the Supervisory Committee is comprised of volunteer members and functions independently of Credit Union

management.

USPS FCU Supervisory Committee

Chairman: Robert J. Pederson

Member: Amy Rose

Member: Richard Yessian

Member: Martha Williams-Brown

Member: Richard Phillips

We currently have 6 branch locations serving you:

USPS FCU Headquarters 475 L’Enfant Plaza W, SW

Suite 1507 Washington, DC 20026-3789

USPS FCU 7905Malcolm Road, Suite 311

Clinton, MD 20735

USPS FCU 9201Edgeworth Drive

Capital Heights, MD 20790

USPS FCU 10919 Sepulveda Blvd Mission Hills CA 91346

USPS FCU

1 Floretta Place PO Box 90845

Raleigh, NC 27675

USPS FCU 1001 California Avenue Pittsburgh, PA 15290

USPS FCU Serves Members Across the Nation

FINALIZE APS AND USPS FCU RELATIONSHIP

In order to formalize the relationship between the American Philatelic Society and U.S. Postal Service Federal Credit Union the following steps need to be completed:

• The attached Sponsor application needs to be filled out along with a request on APS letterhead indicating your interest in having the American Philatelic Society added to the USPS FCU field of membership.

• National Credit Union Administration (NCUA) requires a copy of APS bylaws and this need to be included with the sponsor application and letterhead.

• The formality of an approval from our Board of Directors is obtained and then the applicable forms are provided to our regulatory agency, the National Credit Union Administration (NCUA).

While waiting for a response from the NCUA, we can outline an action plan that demonstrates the mutual benefits we anticipate providing each other. We can explore marketing ideas and meet to discuss the intentions and expectations of each respective organization.

Upon NCUA approval we can begin to act upon the above agreements.

WHAT MEMBERS ARE SAYING:

“I always receive outstanding service from my branch. I appreciate that you cared enough to make sure that I was taking full advantage of everything USPS FCU had to offer and called to inform me that I could get additional benefits. Now I know that on my next auto loan I will receive a 1% discount off my interest rate, I will earn higher dividends on my savings and I get $500.00 in closing costs credits when I purchase my next home and finance it through USPS FCU.” -Esequiel Valdez

“I love that I have access to thousands and thousands of ATM’s across the country. It is nice when I travel that I can use my debit card or my USPS FCU Visa anywhere I am.” -Rita Cope

“I conduct all my business with USPS FCU. I was thrilled to learn that because I use the credit union for all my financial business that I automatically qualified for the relationship reward benefits.”- Patricia Sanchez

“The personalized service I receive at the Mission Hills branch is the reason I have been a member for twelve years. I know that I can always call and get my questions answered efficiently and accurately at this location. I walk in and everyone knows me, knows my goals and knows my preferences. It is a very welcoming place filled with wonderful people.” -Jim Cavanaugh

“ The whole program is.... easy! It’s easy to join, easy to maintain and easy to access! I appreciate the discount on loans that comes with this program as well. USPS FCU always has my best interest in mind.” -Albert Sanchez

WHAT MEMBERS ARE SAYING (continued)

“I joined the U.S. Postal Service Credit Union in 1989 and have always been thrilled with the service I receive. I have my entire account with you, my credit card and my mortgage loan with the credit union. I appreciate knowing that I don’t have to shop around for the best deal because Iknow that USPS FCU is already giving me the best deal.” -Elida Gomez

“I have been a member of USPS FCU since 1956. I used USPS FCU for my first new car a VW Beetle in 1958. Since then I have had numerous LOC and mortgages on many homes I have lived in through the years. To this day I continue to rely on USPS FCU for car loans, line of credit, credit cards, savings accounts and checking. I cannot speak high enough to praise the outstanding service I have and continue to receive from USPS FCU, they consistently exceed my expectations.” –Edward Colbert

Jennifer Audette

Branch Manager

10919 Sepulveda Blvd Mission Hills, CA 91345 (800) 877-7328 ext. 4001

Steve Cimino

Executive Vice President

7905 Malcolm Rd Clinton, Maryland 20735 (800) 877-7328 ext. 1312

William Yarborough

Chief Executive Officer

7905 Malcolm Road, Suite 311 Clinton MD 20735 800-877-7328 ext 1313

DELIVERING QUALITY SERVICE

SINCE 1934