Project Differentiation

SUNCOAST SCHOOLS FEDERAL CREDIT UNION

Mission: We build permanent financial relationships by consistently meeting members' needs with superior products and services delivered by a friendly and knowledgeable staff.

Suncoast Schools Federal Credit Union was organized as Hillsborough County Teachers Credit Union in early 1934. This not- for-profit financial cooperative was organized to assist teachers who were struggling to find reasonable credit options. The name of the Credit Union was changed to Suncoast Schools Credit Union in 1975 to better describe the broad scope of membership eligibility for school employees and family members. A change from a state charter to a federal charter added "Federal" to the name in mid-1978.

While the Credit Union has changed over the years, the focus and philosophy have not. The credit union motto, "Not for profit, not for charity, but for service," captures the essence of the credit union idea. Service to members is what distinguishes credit unions from other financial institutions.

This Statement of Commitment to Members is consistent with our philosophy of "People Helping People". This statement represents good business practices that ensure the financial strength of our Credit Union on behalf of our members.

Section 1: Service to Members

Historically, Suncoast has emphasized efficient operations. Expense ratios have continually been at least 30% below those at similar sized credit unions and more than 50% below those at for-profit financial institutions. As a result, our members have enjoyed favorable rates and minimal fees. A conservative analysis of rates and fees at Suncoast versus those at local banks showed that our members saved over $66 million in 1998.

Current Services that Help Improve the Economic and Social Well Being of Members:

Free Share Draft (checking) Account - Share draft accounts include unlimited check writing, unlimited free ATM withdrawals at Credit Union and CU Here locations, free Visa Check card, unlimited SunTel (audio-response system), unlimited SunNet (internet access), and more.
TDD line - Touch-tone telephone line for hearing impaired
24-7 Access to account information - Free access to all account and rate information and the ability to transfer/withdraw from a credit union account via telephone or Internet.
Members' Call Center - Complete deposit and loan support to members by telephone - extended hours 8 a.m. - 8 p.m. Monday through Friday, and Saturday 9 a.m. till 2 p.m.
Members Trust Company - CUSO meets the needs of those members who may not be able to afford trust services at other institutions.
Free Estate and Will Planning - Through Members Trust Company, members can receive general information regarding wills, trusts, estate planning, and referrals to attorneys for the preparation of legal documents.
403(b)7 Tax Sheltered account - Through Members Trust Company, Suncoast can offer the benefit of mutual funds to school employees to build assets - these funds historically, over the long term have better performance than fixed income investments. These accounts provide an alternative for members investing five years or longer. (Mutual funds are not federally insured, and the Credit Union can not guarantee the returns).
Car Buying Service - Assist members with hassle free new car purchases through pre-negotiated prices at dealer and invoice information. Suncoast can help members finance a vehicle with a lower payment through our Lease Option Program, which provides member flexibility at the end of the lease compared to traditional programs. The Credit Union also offers Auto Warranty Protection Insurance and GAP Insurance to members at great savings.
Used Car Match Program - Suncoast works with select used car dealers to match cars to members' needs and means. Dealers download available inventories to the Credit Union weekly which are available on our website for member inquiries.
Suncoast Scholarship Foundation - Awards scholarships to students (of all ages) to continue secondary education.
Government Insured Student Loans - Over thirty years experience providing financial assistance to college-bound members.
Bi-Lingual Communication - Through Spanish-speaking staff, audio response system and credit union literature.
Unlimited ATM Withdrawals - Suncoast is a member of CU Here network, a group of "surcharge free ATMs". Members have free unlimited withdrawals at over 300 credit union locations throughout Florida.
Mortgage Programs Low down payment options to assist low to moderate income members (some restrictions apply):

Suncoast 97 - For first time home buyers, only 3% down plus closing costs (no PMI), can pledge shares in lieu of cash down payment. Terms and rates available with 15 or 30 year 3/1 adjustable rate program (fixed rate for first three years) or 7/30 balloon program (fixed for first seven).
Challenge Fund - An affordable housing initiative by the city to assist low income and first time homebuyers in purchasing a home in Tampa. City offers a limited guarantee for a portion of the mortgage to allow member to qualify for financing.
3/1 Adjustable Rate Mortgage - Fixed rate for first three years, annual adjustments after 3 years with maximum lifetime cap of 5% Rate is calculated using the 3 year treasury bill (averaged for the prior 3 months) plus 1% margin.
No PMI Program - 5% down plus closing costs for purchases with no private mortgage insurance or sponsorship (95% loan- to-value).
Sponsorship Mortgage - Designed to help borrowers purchase a home with minimal or no money down. Borrower has a sponsor to pledge funds or property to secure up to 20% of the purchase/appraised value.
Guaranteed Housing Loan Program (rural housing)- up to 100% financing/no PMI, cannot exceed the maximum HUD mortgage amount.

New Services Planned for the Coming Year

Performance Based Pricing (risk-based)
Set goals on penetration of membership in rural areas to educate members of programs available
Youth Program

Section 2: Member Education

Suncoast has always considered member education to be an integral part of our commitment to improve members' lives. We have consistently covered consumer issues and advice through newsletter, brochures, periodicals and our website. Employees are encouraged to play an active role in communicating with and educating members.

Current Programs that Support Member Education and Advocacy:

Annual Home Buyers Fair (with League) - all day seminars
Home Buyer Seminar - evening seminars
Financial Planning - evening seminars
Estate and Will Planning - facilitated by Members Trust Company
How to buy a Car - evening seminars - facilitated by staff and Car Match Dealers
How to buy a Computer - evening seminars - facilitated by staff and CU partner in computer sales
Articles in Credit Union newsletter i.e. Taxing Issues
Credit Union has designated a Fair Housing Specialist who coordinates seminars in the minority communities to enhance awareness about mortgage loans and the special programs offered to low and moderate income households.
Home and Family Finance - distributed quarterly to members by request - currently 10,000 receive customized publication
Home and Family Finance -online - Suncoast subscribes to monthly online publication through CUNA available to members through our website.
Consumer Credit Counseling Services - We cooperate with CCCS and encourage our members to seek assistance if needed. Suncoast also offers budget counseling for members.
Suncoast University offers many courses and certifications to educate staff so they may provide better service to our members. Suncoast also reimburses employees for undergraduate and graduate tuition.
New Employee Orientation provides introduction to employees about products and services, and credit union philosophy.
CEO meets semiannual with all employees in small groups to answer questions and discuss issues of interest to employees.
All managers meet semiannually to review Business Plan and discuss the latest issues for the Credit Union. Managers also compose advisory groups to further enhance management and staff in needed areas; Employee Relations, Member Education/Public Relations, Product Education/Cross Selling, Internet/Intranet, Trust and Alternative Investment, and Quality Service and Efficiency Committees.

New Programs Planned for the Coming Year

Additional website information links
Actively work with SEG groups to inform members of service available

Section 3: Involvement/Governance

Suncoast Schools Federal Credit Union's volunteer Board of Directors are the elected officials and represent the membership of the financial cooperative. Suncoast will endeavor to preserve credit union democratic principles, including demographic representation and volunteer participation in Credit Union activities.

Current Programs that Support Involvement/Governance:

Elected Board of Directors and Supervisory Committee - volunteer participation
CEO selected by the Board of Directors
Annual Meeting offers opportunity for members to meet Board and Managers of the Credit Union. Members are also offered the opportunity to submit nominations for the elected positions in the Credit Union; Suncoast publishes a "call for volunteers" in the member newsletter.
Fair Housing Committee meets quarterly to determine discriminating factors were not considered in credit denials and to investigate any complaints from members alleging unfair practices with mortgage lending.

New Services Planned for the coming Year:

Contact existing SEGs and request Company Profile, and company Liaison. The Profile gathers more information about the company and its employees so the Credit Union can better serve their needs. By assigning a liaison, we open two-way communication with the group and an opportunity to address needs in a timely manner.
Meet with SEGs on a regular basis to gather information about member needs; work with management team to meet the needs of the members.

Section 4: Diversity

Suncoast recognizes the value of demographic diversity in staff as well as in volunteers, and will strive to bring people of diverse backgrounds and experiences into leadership and other roles at the Credit Union.

Current Programs that Promote Diversity:

Equal Opportunity Employer
Diversified Board of Directors
Diversified membership throughout service area
Fair Housing Committee

New Programs Planned for the Coming Year:

Member Market Segmentation - determine demographic makeup of members so products and services may be specifically targeted to meet their needs.
Add new SEGs throughout our service area, including the groups traditionally under served.

Section 5: Commitment to the Credit Union Movement

Suncoast Schools Federal Credit Union has always supported the Credit Union Movement. Through educational programs to the staff about credit union history, participation in political activity and mentoring other credit unions, Suncoast accepts its responsibility to promote the philosophy of credit unions.

Current Activities that Support the Credit Union Movement:

Credit Union requires all Managers and Supervisors to complete CCUE course, History of Credit Unions. Suncoast reimburses employees for CCUE and recognizes as equivalent of a degree for job qualifications.
The Credit Union established Suncoast University to educate staff so they may provide "knowledgeable and friendly service".
Suncoast participates in CUPAC fundraisers, as well as employees contributing personal funds to CUPAC and other campaigns supporting the Credit Union Movement.
CEO participates on several committees state and national credit union boards/committees
CFO was a charter member and founding officer of the CFO Council and works with counterparts across the country to address issues and tune in to the latest developments in the movement.
COO participates annually as a conference speaker for various credit union associations, and has published a manual on trust services for credit unions.
SVP Lending a charter and founding officer of the CUNA Lending Council, also active for several years in the local chapter of the FCUL.
SVP Human Resources was charter member of the CUNA Human Resource Council.
SVP Member Operations is an officer on our local Chapter of FCUL
Credit Union management and staff speak at various conferences, and participate in training seminars other credit unions as requested/needed.
Invest in community credit unions.
Support Credit Union Foundation with investment of one million dollars, providing approximately $30,000 annually to assist/strengthen smaller credit unions.
Suncoast contributes funds to the credit union community in time of natural disaster.
Support Filene Research Institute as a Founding/Leadership Circle Member

New Programs Planned

Participate in National Credit Union Brand Campaign
Strategic Plan for Community Outreach

Section 6: Public Service/Corporate Citizenship

Each year the Credit Union actively supports many organizations and projects that enhance the economic social being of the in the community.

Community/FOM Groups Currently Receiving Financial or Other In-Kind Support and Current Public Service Activities:

Suncoast for Kids Foundation - Foundation is funded from a portion of credit card interchange fees, fundraisers, and individual contributions. Designated recipients in 1999 were Children's Miracle Network ($100,000), Children's Cancer Center ($10,000) and Ronald McDonald House ($10,000).
Contribute to 14 county school systems and foundations - approximately $50,000
Suncoast Scholarship Foundation - five scholarships totaling $4,500
United Way - approximately $18,000 raised by employees
American Heart Association - over $5,000 raised by employees
American Cancer Society - over $7,000 raised by employees
Contributes to various projects sponsored by SEGs - estimated $5,000
Kids Christmas Project - provide a meal, gifts for all members of 4-5 low income families
Promotion of Volunteerism - all employees are encouraged to volunteer in community organizations and get involved.
Consumer Credit Counseling - partnered to teach Credit College for a United Way program in inner city schools - Day of Caring
Teach Financial Planning - with Tampa Chapter to local High School Students
Participate in Great American Teach-In - approximately 30 employees
International Academy of Finance - mentoring program in local high school to promote careers in finance
Florida Employer Advisory Council - association of private sector employees who work to enhance the community and economic benefits provided by the state
Leadership - Members of management staff serve on Board of Directors for Hillsborough and Citrus County Education Foundation, Hillsborough County SERVE, and All Children's Hospital
Provide facilities for use by several community agencies.

New Public Service Activities Planned for the Coming Year

Coordinate fundraising efforts for Scholarship Foundation

Closing

This Statement of Commitment to Members is meant to work with the Suncoast Schools Federal Credit Union Business Plan and is designed to display our philosophy in action and to keep a focus on these six key areas that differentiate our cooperative from other financial institutions.