POLISH & SLAVIC FEDERAL CREDIT UNION’s QUARTERLY NEWSLETTER 1 800 297-2181 | www.psfcu.com

FALL 2011

Dear Friends,From the moment I

took leadership of ourCredit Union, I begananalyzing the structureand functioning of ourorganization. For thepast three months, theBoard of Directors, mycolleagues and myselfhave been developing an action plan for ourCredit Union’s immediate future. While stillworking on the plan, we already beganimplementing some of the proposed actions,which would immediately and directly helpour members in this current difficult andcomplicated economic situation. For example,thanks to the credit card promotion, ourmembers are able to reduce interest rates ontheir debt transferred from other financialinstitutions; thanks to our loan promotions,on the other hand, many have saved onapplication fees for adjustable rate mortgageloans. We have also introduced new typesof loans (e.g. fixed-rate loan for condo-miniums) and lowered interest rates onmany types of mortgages.

We have also initiated a gradual processaimed at reducing operational costs, whichhave had an adverse effect on PSFCU’s

Brief Update

Important Issues

TA B L E O F C O NT E NT S

Representatives of PSFCU managementand employees presented Ms. CarolineKowalczyk, President of the Polish Gift ofLife, Inc., with a check in the amount of$4,500 on Thursday, August 18, at the Credit Union headquarters located at 100McGuinness Blvd, Brooklyn. The amountwill be allocated to cover the cost of life-saving surgical treatment for Polish children.

Every year, PSFCU helps to support approx-imately 100 Polish organizations. Since the

Polish Gift of Life receives the donation$100 award winner at the Boro Park

PSFCU employees help children

Gift of Life to PolishChildren from ourCredit Union

continued on page 6…

September 16, 2011 marked the 15thAnniversary celebrations of PSFCU branchesin Boro Park, NY and in Clifton, NJ. Bothlocations were opened in 1996: Boro Park wasthe third PSFCU location in New York City,while Clifton was the second one in New Jersey.

On this occasion, Ms. Agnieszka Chwatkoand Ms. Marzena Fernandes, Branch Man-agers at Boro Park and Clifton respectively,offered refreshments to their clients andencouraged them to participate in ananniversary prize drawing. Prizes includedthree gift baskets filled with PSFCU

BRIEF UPDATEImportant Issues . . . . . . . . . . . . . . . . . . . . . 5

FINANCIAL PRODUCTS AND SERVICESNew Statement options . . . . . . . . . . . . . . . 7

Retail Benefits . . . . . . . . . . . . . . . . . . . . . . . 7

Easy PIN changing . . . . . . . . . . . . . . . . . . . 7

Something for Our Young Members . . . . . 7

UNITED BY THE CREDIT UNIONBoro Park & Clifton Branches celebration . . . 5

Gift of Life to Polish Children . . . . . . . . . .

from our Credit Union . . . . . . . . . . . . . . . . 5

“Go Green” Campaign . . . . . . . . . . . . . . . . . 5

OUR CREDIT UNION“Golden Mirrors” Award for PSFCU . . . . . 8

Credit Union Television Commercials . . . .8

PSFCU at Festivals . . . . . . . . . . . . . . . . . . . 8

A Slow Economy Leads to . . . . . . . . . . . . .

Low Dividend Rates . . . . . . . . . . . . . . . . . . 8

continued on page 6…

15th Anniversary of PSFCU branches

Boro Park & CliftonBranches celebration

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We are thrilled to bring eco-consciousnessto our Credit Union. We pledge to become moreconscious of our use of resources at all ourbranches and offices. We will reduce waste,conserve, recycle and, whenever feasible, userenewable resources. We will evaluate our pro-cedures and go electronic, whenever possible.

We will also offer eco-sustainable optionsto all our Members. We would like to becomeyour source of financing eco-friendly projectsand guide you to paperless solutions. Simplyput, we want to lead by example!

Specific actions, among others, includethe introduction of recycling binsthroughout our institution, reducing thecost of our supplies and focusing ontechnological improvements (replacingfaxes with scanners and reducing theamount of printouts). We will also focus onenergy preservation (new electronicswitches will allow us to save on power).We recently even purchased a brand newfuel efficient courier vehicle.

All GO GREEN ideas and suggestionsfrom our members are welcome! Pleasecontact us at marketing@psfcu.net

Eco-friendly PSFCU courier vehicle

Let's protect our environment

“Go Green” Campaign

continued on page 6…

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In an effort to assist our members duringthis slow economic and low interest ratecycle, Polish & Slavic Federal Credit Union hastried to maintain the highest possible dividendrates for all maturities of member deposits.

This was recently demonstrated by ourCertificate of Deposit incentive during Mayand June 2011, when PSFCU offered allmembers an additional 0.50% for depositswith maturities of 2-4 years, and an extra 0.75%for those member funds placed into 5 year TermShare Certificates.

PSFCU efforts are significant because thelast three years have been draped with astagnant housing market, a stock marketwhich has seen many downward shocksand continued unemployment of over 9%.

Consequently, the Federal Reserve Bankhas decided to maintain their current policyof interest rates close to 0%, which has

many implications. Primarily, this means thatdepositors in U.S. Banks and members ofCredit Unions will receive much lowerdividend rates for their funds than theyhave historically received in the past.

The Federal Reserve Bank Chairman, BenBernanke, has said that this policy could lastas long as mid 2013, and commented that “thepace of the U.S. recovery has proved disap-pointing.” The Federal Reserve Bank has contin-ually tried to revitalize the U.S. economy overthe last 3 years, but it has had only modest success.“The risk of a recession is somewhat higher thanit was six months ago,” added New York Fed-eral Reserve Bank President, William Dudley.

Interest rates go up and interest rates godown, but at Polish & Slavic Federal CreditUnion we strive to afford our members thehighest relative yields possible in all dividendrate products and in all dividend rate cycles.

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premiums and Polish sweets, as well as a$100 gift certificate.

The Boro Park branch currently serves5,947 members; its eleven employees provideservices at six teller stations and four MemberServices Representative desks. “Some of themembers have been with us from the verybeginning – ever since we opened the branch.Opening a branch here became a necessityfor the local Polish community and to thisday, the demand for our services remainshigh,” said Ms. Chwatko.

Members visiting the Clifton branch areserved by ten employees at three tellerstations and four Member ServicesRepresentative desks. “Currently, 7,800members have accounts at our branch. Westrive to meet their needs, as well as those

of the entire Polish community. Therefore,our branch is open longer on Wednesdaysand Fridays," Ms. Fernandes commented.

Members who visited both branchesduring the anniversary celebrations expressedhigh satisfaction with the friendly service andatmosphere, which reminded them of Polandand their own homes and traditions.

financial results. We have launched the “GoGreen Campaign”, which we immediatelyimplemented at PSFCU. Its goal is to reducethe use of paper and supplies as well as thecost of energy, and it places a strong emphasison the recycling of glass, metal and paper –thus helping to protect our naturalenvironment. In the near future, we plan onstarting a vigorous promotion of E-Statements.Taking into consideration the high amount ofpaper statements printed and mailed outmonthly, we expect the savings to be significant.

As part of the previously mentioned futurestrategy, we plan to cooperate closely withour Credit Union's seven sponsoringorganizations. Sponsoring organizations playa significant role in the structure of theAmerican credit union movement, acquiringnew members and performing manypromotional and marketing activities. I ampleased to say that our partners recognize theneed for increasingly close cooperation. Wewill be meeting with them in the nearestfuture to further discuss methods of actionthat will directly benefit our Credit Union.

According to the predictions of financialspecialists, we can expect a continuation ofthe negative trends in the financial markets,especially low interest rates implemented bythe Federal Reserve Bank. Unfortunately, thislimits our ability to offer higher interest rateson deposit accounts. In view of that fact, thereduction of our Credit Union's operationalcosts and increasing our labor productivityhave acquired paramount importance.

Despite the disadvantageous economicbackdrop, our institution continues to grow,both in terms of the number of members, aswell as the amount of assets we hold.Fortunately, this trend was not affected by theevents of recent weeks, when we experiencedthe destructive forces of nature in the form ofan earthquake, a hurricane and a flood. I amproud to inform you that our employees andmembers proved that they can cope in allsituations, including natural disasters, duringwhich we managed to avoid any significantinterruption of our branch operations.

With our strong capital position, we willcontinue to offer attractive promotions toour members, especially those involvingcredit products. I cordially invite you tofamiliarize yourselves with our offer forOctober, which, as you probably know, isPolish Heritage Month in the United States.

Oskar Mielczarek,President and Chief Executive

…continued from page 5

Boro Park & Clifton...…continued from page 5

A Slow Economy Leads to Low Dividend Rates

beginning of this year, the PSFCU Board ofDirectors has awarded grants totaling $213,000,to 98 organizations. In June, our Credit Uniongranted $300,000 in scholarships for young adults.

Ms. Agata Król, Manager at the HumanResources and Training Department, launchedthe fund raising campaign for the Polish Giftof Life among PSFCU employees in May, afterreceiving a request for help from Ms.Kowalczyk. Ms. Lori O'Toole, Vice Presidentof Human Resources, supported the idea andreported it to the Board of Directors, asking foran additional contribution. The Board memberspromised to match the amount collected bythe Human Resources Department.

Ms. Król and Ms. O'Toole helped spread

the initiative to raise money among the CUemployees, naming it “Hearts of Hope.” Theyoffered our employees the opportunity topurchase handmade ornate red paper heartsfor $1. The original plan was to raiseapproximately $1,000. Thanks to the generosityof our staff and Management, the collectedamount reached $2,250. The Board of Directors,on behalf of the PSFCU and in accordance withtheir earlier promise, granted an additional$2,250, raising the total sum to $4,500.

The Polish Gift of Life is an organizationwith a thirty-year history, during which ithas helped over 350 Polish children receivelife-saving medical treatment. Its employeesare volunteers who receive no financialcompensation for their efforts. Most fundsreceived by the organization are in the formof individual goodwill donations.

…continued from page 5

Gift of Life

Clifton branch staff with one of the winners

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We are pleased to announce a brand newPSFCU Member benefit design specificallyfor you. It is called Cash Back Shopping andit will allow you to earn cash back every timeyou do your on-line shopping through ourbrand new PSFCU shopping portal. And if youuse your personal PSFCU VISA® Card whenyou shop, your rewards can be even richer!

When you access your favorite stores throughour shopping portal, the merchant will give youmoney back for shopping with them. It is thateasy. The merchants have agreed to give youback between 2% and 40% of the total cost ofyour purchases! Additionally, any coupons oron-line shopping promotions you may havewith that merchant will also be honored.

And the benefits keep getting better: Ifyou shop with your PSFCU VISA® Card(Gold & Platinum only) you can also earnvaluable points in our VISA® Reward Pro-gram that can be used for future travel ormerchandise rewards.

There are currently thousands of mer-chants who are participating in this program,with more joining every day. Merchants likeBest Buy, Target, Barnes & Noble, Wal-Mart,Bloomingdales, Macy’s and Travelocity havealready signed on.

Cash Back Shopping costs you nothingto use. You can use this portal from yourhome computer or through any other internetconnection as well.

PSFCU has no connection to themerchants you choose to shop with and isnot involved in any way with any trans-action, financial or otherwise. PSFCU doesnot receive records of your shopping habits,and we do not get any type of financialincentive for this service. Once you accessyour merchant through the PSFCU RetailBenefits portal, you are shopping with themerchant, just like you would if you hadgone directly to their website.

The money you earn comes directlyfrom the merchant and gets deposited intoyour Retail Benefits Account. Earned cashback can be sent directly from RetailBenefits to your bank account or you mayreceive it by check.

You may also donate the money you aresaving to a charity of your choice. You willreceive a separate email shortly inviting youto join Retail Benefits through the PSFCUweb portal. Simply click on the linkprovided, set up your personal profile andstart shopping.

We hope you take advantage of Cash BackShopping together with the PSFCU VISA®

Card Rewards Program for a truly worthwhileshopping experience!

New convenient features for yourConsumer and Business Debit Cards

Easy PIN Changing

New Statement Options

Although the school year officially began afew weeks ago, certainly school-relatedspending is not over yet. The new school yearis an excellent opportunity to remind you thatour Credit Union offers financial products andservices for children and young adults; productsthat educate them about the importance ofsaving as well as help parents reduce costs.Listed below are the most popular opportunities:

“School Is Cool” promotion – we would liketo remind you that each new minor memberof the Credit Union may obtain a usefulbackpack or an attractive school kit! This offeris valid only until the end of October.1

“Youth Advantage Program” – A set offinancial products and services for childrenand youth in three age categories.

Electronic Account Transfers – Thoseusing our free Internet Banking can nowtransfer funds from their PSFCU accountsto their children's PSFCU accounts withoutthe need to visit a branch.

Visa® Credit Cards – With a line of credit,a young adult can build his/her credit historywhile learning financial responsibility andparents can be assured that their child has

reserve funds for unforeseen expenses.Visa® Gift Cards – Receiving this gift card,

with a specified spending limit, allows ayoung adult to learn how to spend moneyresponsibly.2

Car Loans – Our Credit Union currentlyoffers a 0% promotional interest rate for thefirst 3 months on car loans – a great opportu-nity for our young adults, who are currentlystudying in and commuting to college, tofinance a costeffective and safe vehicle.3

Attention Parents!

Something for OurYoung Members

Cash Back for Shopping

Retail Benefits

Recently, we have implemented two newenhancements to our Consumer and BusinessDebit cards, which will not only be veryconvenient, but will also save you time andsimplify the way you use them.

Card Activation by PIN: this feature allowsyou to activate your new card by performingPIN transactions at any ATM terminal.

Changing PIN at ATM Terminal: thisfeature permits you to change your PIN atone of the PSFCU ATM Terminals. Please notethat this transaction requires input of thecurrent PIN and, it will not work if you don’tremember it. In such situation, you will needto either call the Call Center to have a newPIN assigned or visit one of our branches.

Saving paper saves theenvironment... Join our “Go-ing Green!” campaign! Youcan choose either of thefollowing two options to

reduce paper consumption:Option One: Electronic Statements. This

option will allow you to receive an electronicversion of a paper statement. The statementcan be viewed immediately after it isprepared, without waiting for delivery bymail! This option is available to all users ofour Internet Banking – if you do not yet haveaccess to PSFCU Internet Banking, callMember Services at 1-800-297-2181.

Log into your account on www.psfcu.com,select "E-Statements" under "ElectronicServices" and click on “Activate Service.”

Option Two: “One Address – One Envelope.”You can reduce the number of mail pieces sentto you from our Credit Union if the personsliving in one household inform our CreditUnion that they would like to receive all theiraccount statements in one envelope. Thisoption allows us to save paper and all monthlystatements are delivered at the same time.

To use this service, contact MemberServices (1-800-297-2181) or visit one ofour branches. If necessary, this option canbe easily cancelled, either by changing it backto separate mail pieces or by activatingelectronic statements.

1. One gift per person. Membership restrictions apply. 2. Offered to students 16-23 years of age. Parent's signature as guarantor may be required. Maximum limit is$2,000.00. 3. Applicant must be 18 or older. All loans are subject to credit approvaland verifications. To be eligible for 0% automatic payment from the PSFCU checkingaccount is required. If the checking account is closed or the automatic payment is cancelledthe rate will increase to the regular APR effective as of the date the loan is established.Promotion valid from October 1 to December 31, 2011.

Membership requirements apply. Other requirements may apply.

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PSFCU has won a prestigious Golden MirrorsAward in a nationwide annual marketing con-test organized by CUES (Credit Union Exec-utives Society). All leading US credit unionsparticipated in the competition – winningentries can be viewed at www.cuesgma.org.

PSFCU won its award in the “MembershipKits” category. Our winning entry was thePSFCU Welcome Brochure. Currently, thebrochure is given to every new Member ataccount opening.

PSFCU has won 3 other marketing awards,all from CUANY (Credit Union Associationof NY): two for PSFCU Calendars and onefor an Annual Report.

Marketing would like to thank all whoassisted us with this project: Joanna Adamska,Małgorzata Dymkowska, Ewa Grzymkowski,Dorota Jankowska, Agnieszka Laurowska,Krzysztof Lubas, Anna Murdzoski and manyothers who offered their insight.

Special thanks to Edyta Martula andAgnieszka Poslednik who contributed the most,making this publication an award-winner.

Credit Union Television CommercialsFor several months, our Credit Union has

been broadcasting a series of television

advertisements based on the use of Polishidioms. These ads contain amusing animationsand customer service outtakes, which werefilmed at our branches. The first ad uses “don'tget squeezed into a tight space” to promotecredit cards, the second, based on “don't letanyone cheat you blind” promoting mortgageloans and the third, built around the idiom“don't be taken for a ride,” promoting auto-mobile loans. The success of the advertise-ments is already visible as viewers have calledour Credit Union with extremely flattering(and often humorous) comments.

PSFCU at Festivals

This year, PSFCU has participated in numer-ous Polish events in the Chicago metropolitanarea: the 57th “Bukowina Tatrzańska” CirclePicnic, the 34th “Zakopane” Circle Picnic, the83rd “Podczerwone” Circle Picnic, the Podha-lanski Picnic as well as the Radio 1030 Festival.For the first time, our Credit Union also partici-pated in the largest Polish festival in Chicago,the popular “Taste of Polonia,” which was heldfor four days at the Copernicus Center, at 5216West Lawrence Avenue.

During the first weekend of September, ourCredit Union also took part in the biggest EastCoast festival at American Częstochowa inDoylestown, PA.

As one of the main sponsors of theseevents, PSFCU prepared stands filled withnumerous premiums and gifts for our cur-rent and potential customers. At the events,guests were able to take advantage of PSFCUoffers, thanks to the presence of our employ-ees and our Mobile Branch.

In each case, our Credit Union sought toattract new members by offering specialrewards for those who decided to openaccounts during the event. Current PSFCUmembers had an Opportunity to participatein special prize drawings.

Facts you should know…

“Golden Mirrors” Award for PSFCU

Radio 1030 Festival

Marketing awards won by PSFCU

A scene from the credit cards commercial

Kredyty dla osób, które ukończyły 18 rok życia. Podstawą zatwierdzenia kredytu jest ocena historii kredytowej i zdolności do spłaty kredytu. Oprocento-wanie 0% jest uzależnione od automatycznej płatności pożyczki z konta czekowego w Unii Kredytowej. Zamknięcie konta czekowego lub anulowanieautomatycznej płatności spowoduje powrót do oprocentowania standardowego z dnia wydania pożyczki. Promocja jest ważna od 1 października do 31 grudnia br. Zasady członkostwa obowiązują. Inne ograniczenia mogą obowiązywać.

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