Donald A DeCinque

March 31, 2009

Dear Valued Member:

Over the past month or so there has been press coverage about two “corporate” credit unions that were taken over by the National Credit Union Administration (NCUA).

Here are some key points we feel are important for you to know about that action:

The two credit unions (U.S. Central Federal Credit Union, Kansas and WesCorp Federal Credit Union, California) you have been hearing about are not regular, “natural person” credit unions like APCU in that they do not serve the individual financial needs of members/consumers. These corporate credit unions are among a small number (28) of institutions that only provide services, such as liquidity, investment and payments services, to regular credit unions.

Because of the nature of what they do, these corporate credit unions operate in the capital markets and invest in the highest-rated, investment grade securities. But as with so many others, accounting rules have required them to recognize the decline in the market value of their investments. In the case of these two corporate credit unions, the “unrealized” losses were significant enough that NCUA considered it necessary to install conservatorship which means the corporate credit unions are still operating normally but are now being managed by NCUA.

The current plan proposed by the NCUA to resolve these corporate credit unions’ challenges does not involve tax payer dollars or require funding from the Troubled Asset Relief Program (TARP) that banks have accessed for capital. Instead, the NCUA would finance the plan with dollars from the National Credit Union Insurance Share Fund and additional premiums or special assessments on federally insured regular credit unions.

As a federally insured credit union, Atlanta Postal Credit Union would likely see increased costs to cover these additional premiums or assessment. But, we don’t expect the increase to have any material impact on the overall stability and health of our institution because of our consistent, positive financial performance over the years and our extremely strong capital position which far exceeds regulatory guidelines.

What does all this mean for members of Atlanta Postal Credit Union? It’s business as usual. The same level of quality service you receive from our credit union will continue. Our service to you is not affected by these NCUA actions. And, of course, your funds in Atlanta Postal Credit Union continue to be safe and federally insured up to $250,000 by the National Credit Union Share Insurance Fund and backed by the full faith and credit of the U.S.

Credit unions have been serving members in the U.S. for 100 years, through good times and bad. We are well positioned to remain strong.

Sincerely,
Donald A DeCinque
President/CEO

October 6, 2008

Dear Valued Member:

With the recent events in the banking and mortgage industries, you may be wondering if your funds are safe at Atlanta Postal Credit Union (APCU). The simple answer is…YES! As of September 30, 2008 our capital ratio is over 14% (our regulator considers a credit union to be well capitalized at 7%). Our delinquencies and losses remain far below the industry norms because the credit union does not have any of the sub-prime loans that have caused the mortgage problems happening across the country.

APCU is federally insured by the National Credit Union Share Insurance Fund (NCUSIF). NCUSIF is a fund that, like the FDIC that insures banks, is backed by the full faith and credit of the U.S. government. Not one penny of insured savings has ever been lost by a member of a credit union that is federally insured by NCUSIF.

In the last issue of APCU’s member newsletter, KeyNotes, we outlined how this federal insurance covers your shares in the credit union. As you may know, legislation was passed on Friday, October 3, 2008 that increased the insurance coverage of the NCUSIF from $100,000 to $250,000 through December 31, 2013. Now even higher total insurance coverage is available if you have a combination of individual, joint, trust, payable-on-death and other types of accounts. In addition, NCUSIF provides separate insurance coverage of up to $250,000 for individual retirement accounts.

To give you an even greater sense of security, Atlanta Postal Credit Union provides additional coverage for retirement accounts in the amount of $250,000, for a total of $500,000. This coverage is provided by the Excess Share Insurance Corporation (ESI) and the premiums for the ESI insurance coverage are paid entirely by the credit union.

Atlanta Postal Credit Union has served members since 1925. Throughout the decades we have stood side-by-side with our members through economic recessions, the Great Depression, the hardship of wars; and numerous natural disasters. Thanks to our people helping people philosophy, APCU has been able to help members tackle the financial challenges they face and assist them in making choices that will allow their families to prosper.

Your Board of Directors and I want to assure you that your credit union is safe and sound. We have been and will be here to serve you and your family during the good times and the tough times ahead. We pledge to continue to provide you with a safe place to keep your money. And, we want you to know that we have funds available to lend, at the same great low rates you have come to expect from APCU, so you can still purchase the things you need and want.

We are your credit union and we are here to help you in any way we can.

Sincerely,
Donald A. DeCinque
President